Document:

Exhibit
10.27

 

·      LANDLORD:  SEAMUS GEANEY

 

·      TENANT:

·      TORNIER
ORTHOPEDICS IRELAND LIMITED

 

·      GUARANTOR:

 

·      LEASE

 

·      of -

·      Industrial
Building at Hartnett’s Cross

·      Macroom, Co.
Cork     -

 

·      Term:                      20 years from 1st day of December 2008

·      Rent Reviews:       Every 5 Years

·      Initial Rent:            €330,000.00 p.a. exclusive (subject to review)

 

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·      Ahern Roberts O’Rourke
Williams & Partners

·      Solicitors

·      The Old Rectory

·      Carrigaline

·      Co. Cork

·      Ref: GR/90496

 

1

 

·      CONTENTS

·      PARTIES

1.             Definitions

2.             Interpretation

3.             Demise and
Rents

4.             Tenant’s
Covenants

·      4.1           Rents

·      4.2           Interest on arrears

·      4.3           Outgoings

·      4.4           Repairs

·      4.5           Decorations

·      4.6           Cleaning and maintenance

·      4.7           Yielding Up

·      4.8           Tenant’s fixtures and
effects

·      4.9           Rights of entry by Landlord

·      4.10         Compliance with Notices

·      4.11         Operation of the Demised
Premises

·      4.12         User

·      4.13         Alterations

·      4.14         Alienation

·      4.15         Registration of dispositions

·      4.16         Landlord’s expenses

·      4.17         Statutory requirements

·      4.18         Encroachments and easements

·      4.19         Reletting and planning
application notices

·      4.20         Indemnity

·      4.21         Landlord’s regulations

·      4.22         Stamp duty and Value Added
Tax

·      4.23         Insurance

4.24         Electro Magnetic
Compatibility

4.25         Fire & Safety

4.26         Compliance with Head Leases

4.27         Registration of Company

5              Landlord’s Covenants

·      5.1           Quiet enjoyment

·      5.2           Exercise of rights

·      5.3           Provision of services

·      5.4           Insurance

1.     Guarantor’s Covenants

·      6.1           Covenant and indemnity

·      6.2           Joint and several liability

·      6.3           Waiver

·      6.4           Postponement of claims

·      6.5           Postponement of
participation

·      6.6           Release

·      6.7           Disclaimer or forfeiture

·      6.8           Benefit of guarantee

·      6.9           Jurisdiction

·      6.10         Registration of company

7              Provisos

·      7.1           Forfeiture

·      7.2           No implied easements

·      7.3           Exclusion of warranty

·      7.4           Representations

·      7.5           Not in use

·      7.6           Failure by Landlord to
provide services

·      7.7           Exclusion of Landlord’s
liability

 

2

 

·      7.8           Covenants relating to
Adjoining Property

·      7.9           Effect of waiver

·      7.10         Applicable law

·      7.11         Notices

·      7.12         Termination by Tenant

8.          Service Charge

9.          Revenue Certificates

10.        Section 29 Companies
Act, 1990

 

·      First Schedule
(Estate)

·      Second Schedule
(Demised Premises)

·      Third Schedule
(Ancillary Rights)

·      Fourth Schedule
(Exceptions and Reservations)

·      Fifth Schedule
(Rent Reviews)

·      Sixth Schedule
(Service Charge Expenditure)

·      Seventh
Schedule (Schedule of Condition)

·      Execution
Clauses

 

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·      THIS LEASE made
the    day of                      2008

·

·      BETWEEN

·

 

LANDLORD:

 

SEAMUS GEANEY

of Terrysland Carrigtwohill in the County of Cork

 

·      TENANT:

·

 

TORNIER ORTHOPEDICS LIMITED

having
its registered office at 90 South Mall, Cork

 

GUARANTOR:

 

having
its registered office at

 

·      WITNESSETH as follows:

 

1.     DEFINITIONS

 

In
this Lease, unless the context otherwise requires,

 

1,1           “Adjoining Property” means any land
and buildings adjoining or neighbouring the Demised Premises;

 

1.2           “Best Endeavours” means with
respect to a given goal, the best endeavours a competent person in the position
of the Covenantor would use so as to achieve that goal as expeditiously as
possible”.

 

1.3           “Buildings” means the Buildings now
constructed or to be constructed within the Perpetuity Period in the Estate
which the Landlord intends to let or otherwise dispose of in whole or in part
provided that for the purposes of Clause 5.4 herein, reference to the Building
in so far as it includes the Demised Premises shall exclude (unless otherwise
agreed in writing by the Landlord and the Tenant) all additions, alterations
and improvements made to the Demised Premises by the Tenant;

 

1.4           “Building Control Act” means the
Building Control Act 1990;

 

1.5           “Common Parts” means those parts of the
Estate not let or occupied and which are not intended by the Landlord or
designed to be let or occupied other than the Buildings.

 

1.6           “Conduits” means all sewers, drains,
soakaways, pipes, gullies, gutters, ducts, mains, watercourses, channels, subways,
wires, cables, shafts, flues and other transmission or conducting media and
installations (including all fixings, covers, cowls, louvres and other
ancillary apparatus) of whatsoever nature or kind or any of them;

 

1.7           “Decorate” means paint (with at least
two coats of good quality paint), polish, repaper or otherwise treat as
appropriate all surfaces usually or requiring to be so treated and includes
preparation of such surfaces by stripping off, stopping, priming or otherwise,
as necessary, washing down washable surfaces, treatment with suitable
preservative and restoration, 

 

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pointing
and making good stonework, brickwork, stucco, concrete and other surfaces;

 

1.8           “Decoration Years” means the year
ending 30th September 2010 and thereafter in every subsequent 3rd year of
the Term;

 

1.9           “Demised Premises” means, save as
provided in clause 5.4.7, the premises demised by this Lease and more
particularly described in the Second Schedule;

 

1.10         “The
Estate” means the property edged in blue on the Plan and any future extension
thereto and more particularly described in the First Schedule.

 

1.11         “Guarantor” means the party or parties
named as “Guarantor” at the commencement of this Lease and includes the successors
in title of the Guarantor and, in the case of an individual, includes his
personal representatives;

 

1.12         “Head Leases” means the various leases under which the
Landlord holds part of the Demised Premises as listed in the Eighth Schedule
hereto.

 

1.13         “Initial Rent” means Three Hundred and
thirty Thousand Euro per annum;

 

1.14         “Insured Risks” means, subject
always to such insurance as may ordinarily and reasonably be available to the
Landlord and to such exclusions, excesses and limitations as may be imposed by
the Landlord’s insurers for the time being in respect of any or all of the
following risks:

 

1.     fire (including
subterranean fire), storm, tempest, flood, earthquake, lightning, explosion,
impact by any road vehicle, aircraft and other aerial devices and articles
dropped therefrom, 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 absolute discretion acting reasonably and in the interest
of good estate management from time to time determine;

 

1.15         “Landlord” means the party or parties
named as “Landlord” at the commencement of this Lease and includes the person
for the time being entitled to the reversion immediately expectant on the
determination of the Term;

 

1.16         “this Lease” includes the Schedules and
any document which is made supplemental hereto or which is entered into
pursuant to or in accordance with the terms hereof;

 

1.17         “Lettable Areas” means those
parts of the Estate (including the Demised Premises) leased or intended to be
leased to occupational tenants;

 

1.18         “Outgoings” means all rates, taxes and
charges (including emergency service charges) of any description (whether or
not of a capital or non-recurring nature) which may at any time during the Term
be payable in respect of the Demised Premises and the Utilities enjoyed in
connection therewith INCLUDING any insurance excesses or other sums not
recoverable by the Landlord (unless due to its neglect or default) but 

 

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EXCLUDING
any tax payable by the Landlord upon the rents herein reserved or occasioned by
any disposition of or dealing with the reversion on this Lease;

 

1.19         “Permitted User” means
Industrial and manufacturing.

 

1.20         “the Perpetuity Period” means the
period of 21 years from the date of this Lease;

 

1.21         “Plan” means the plan(s) and
drawing(s) numbered Ce07-216-03-LM-001 Rev. 1 annexed to this Lease;

 

1.22         “Planning Acts” means the
Planning and Development Acts 2000 - 2006;

 

1.23         “Plant” means any lifts, lift
machinery, central heating and air conditioning systems, sprinkler system,
boilers and other electrical and mechanical machinery, equipment and apparatus
of whatsoever nature or kind and wherever installed in the Building;

 

1.24         “Prescribed Rate” means the rate
per centum per month which exceeds by one half per centum per month the monthly
rate of interest for the time being chargeable under Section 550 of the
Income Tax Act 1967 (or such other monthly rate of interest as may from time to
time be chargeable upon arrears of income tax) or, as the Landlord may from
time to time elect, the rate of 18 per centum per annum;

 

1.25         “Quarterly Gale Days” means the
first day of January, first day of April, first day of July and first day
of October in every year of the Term.

 

1.26         “Rent Commencement Date” means the 1st
day of December 2008

 

1.27         “Retained Parts” means all
parts of the Estate which do not comprise Lettable Areas, including, but not
limited to:

 

1.27.1      the Common Parts;

 

1.27.2      office and
residential or other accommodation which may from time to time be reserved in
the Estate for staff;

 

1.27.3      any parts of
the Estate reserved by the Landlord for the housing of plant or otherwise in
connection with or required for the provision of services;

 

1.27.4      all Conduits
in, upon, over, under or within and exclusively serving the Estate except any
that form part of the Lettable Areas;

 

1.27.5      the main
structure of the Buildings and, in particular, but not by way of limitation, the
roof, foundations, external walls, internal load bearing walls and the
structural parts of the roof ceilings and floors, all party structures,
boundary walls, railings and fences and all exterior parts of the Buildings and
all roads, pavements, pavement lights and car parking areas (if any) within the
curtilage of the Building;

 

1.28         “Service Charge” means the
proportion of the Expenditure as defined in Clause 8 attributable to the
Demised premises being that portion which the footprint area of the Demised
Premises bears to the aggregate 

 

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footprint
area of the Demised Premises and other Lettable buildings constructed in the
Estate;

 

1.28         “Service Charge Commencement Date” means 1st day
of December 2008;

 

1.29         “Surveyor” means any person appointed
by the Landlord (including an employee of the Landlord and the person appointed
by the Landlord to collect the rents and manage the Building) to perform the
function of a surveyor for any purpose of this Lease and who shall act in a
professional and independent manner;

 

1.30         “Tenant” means the party or parties
named as “Tenant” at the commencement of this Lease and includes the person
entitled for the time being to the Tenant’s interest created by this Lease;

 

·

 

1.31         “Term” means 20
Years;

 

·

 

1.32         “Term Commencement Date” means the 1st
day of December 2008.

 

1.33         “Utilities” means water, soil, steam,
air, gas, electricity; radio, television, telegraphic, telephonic and other
communications, and other services of whatsoever nature;

 

1.34         “VAT Act”
means Finance Act 2003 – 2007 and all amending legislation.

 

1.35         “the 1860 Act” and “the 1881 Act” mean
respectively the Landlord and Tenant Law Amendment Act, Ireland, 1860 and
the Conveyancing Act, 1881.

 

2.             INTERPRETATION

 

2.1           Where two or more persons are included in the
expression “the Landlord”, “the Tenant” or “the Guarantor”, such expressions
include all or either or any of such persons and the covenants which are
expressed to be made by the Landlord, the Tenant or the Guarantor shall be
deemed to be made by or with such persons jointly and severally.

 

2.2           Unless the context otherwise
requires-

 

2.2.1        words importing a person include any unincorporated
association or corporate body and vice versa;

 

2.2.2        any reference to the masculine gender includes
reference to the feminine gender and any reference to the neuter gender
includes the masculine and feminine genders;

 

2.2.3        any reference to the
singular includes reference to the plural.

 

2.3           Any covenant by the Tenant not to do any act or
thing includes an obligation not to permit or suffer such act or thing to be
done and to use best endeavours to prevent such act or thing being done by
another person.

 

2.4           References to any right of the Landlord to have
access to or entry upon the Demised Premises shall be construed as extending to
all persons 

 

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authorised
by the Landlord, including agents, professional advisers, prospective
purchasers of any interest of the Landlord in the Demised Premises or in the
Adjoining Property, contractors, workmen and others.

 

2.5           Any reference to a statute (whether specifically
named or not) or to any sections or sub-sections therein includes any
amendments or re-enactments thereof for the time being in force and all
statutory instruments, orders, notices, regulations, directions, bye-laws,
certificates, permissions and plans for the time being made, issued or given
thereunder or deriving validity therefrom.

 

2.6           Headings are inserted for convenience only and do
not affect the construction or interpretation of this Lease.

 

2.7           Any reference to a clause, sub-clause or schedule
means a clause, sub-clause or schedule of this Lease.

 

2.8           Wherever in this Lease either party is granted a
future interest in property there shall be deemed to be included in respect of
every such grant a provision requiring that future interest to vest within the
Perpetuity Period.

 

2.9           If any term or provision in this Lease is held to be
illegal or unenforceable in whole or in part, such term shall be deemed not to
form part of this Lease but the enforceability of the remainder of this Lease
is not affected.

 

3      DEMISE
AND RENTS

 

THE
Landlord in consideration of the rents herein reserved (including the increases
thereof which may arise as hereinafter provided) and the covenants on the part
of the Tenant hereinafter contained HEREBY DEMISES
unto the Tenant the Demised Premises TOGETHER WITH
the ancillary rights and easements specified in the Third Schedule but EXCEPTING AND RESERVING the rights and easements specified
in the Fourth Schedule TO HOLD the
Demised Premises unto the Tenant from and including the Term Commencement Date
for the Term SUBJECT TO all rights, easements,
privileges, covenants, restrictions and stipulations of whatsoever nature
affecting the Demised Premises YIELDING AND PAYING
unto the Landlord during the Term:

 

3.1           Yearly and proportionately for any fraction of a
year the Initial Rent and, from and including each Review Date (as defined in
the Fifth Schedule), such yearly rent as becomes payable under the Fifth
Schedule, and in every case the same is to be paid in the manner notified from
time to time by the Landlord by equal quarterly payments in advance on the
Quarterly Gale Days;

 

3.2           a percentage or due proportion (equivalent to the
same percentage or due proportion of the Expenditure which is used to determine
the Service Charge) of all sums (including the cost of periodic valuations for
insurances purposes which shall be carried out no more than once every two
years) which the Landlord may from time to time pay for insuring the Estate
against the Insured Risks and other matters referred to in Clause 5.4 all such
sums to be paid on demand;

 

3.3           the Service Charge to be paid within 14 days of
demand in accordance with Clause 8.

 

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3.4           Any other sum recoverable by the Landlord as costs
or expenses under this Lease, the same to be paid on demand.

 

4      TENANT’S
COVENANTS

 

The
Tenant throughout the Term HEREBY COVENANTS
with the Landlord as follows:

 

4.1           Rents.

 

To
pay the rents in the manner specified in clause 3 (save for the first payments
which shall be made on the execution of this Lease) and without any deduction,
set-off or counterclaim whatsoever.

 

4.2           Interest on arrears

 

Without
prejudice to any other right, remedy or power herein contained or otherwise
available to the Landlord, if any of the rents (whether formally demanded or
not) or other sums specified in clause 3 remain unpaid for more than fourteen
days after the date when payment was due, to pay interest thereon at the
Prescribed Rate from and including the date on which payment was due to the
date of payment to the Landlord (both before and after any judgment).

 

4.3           Outgoings

 

To
pay and indemnify the Landlord against all Outgoings.

 

4.4           Repairs

 

4.4.1        To keep in good and substantial repair and condition
the Demised Premises given the current state and condition of the Demised
Premises as evidenced by the Schedule of Condition annexed hereto, and as often
as may be necessary, to rebuild, reinstate or replace the Demised Premises;

 

PROVIDED
HOWEVER THAT

 

(i)            The Tenant shall not be liable under this Lease to
repair or keep the Demised Premises in a better state of repair and condition
than is evidenced by the Schedule of Condition annexed to this Lease;

 

(ii)           The Tenant shall not be liable under this Lease in
respect of any repair or disrepair occasioned by fair wear and tear to the
Demised Premises or any Landlord fixtures or fittings;

 

(iii)          The Tenants liability does not extend to damage in
respect of which the Landlord is indemnified under a policy of insurance
effected under clause 5.4.1.1 or to damage in respect of which the Landlord has
no entitlement through his own default and, if the damage caused by any of the
Insured Risks would otherwise give rise to a right to surrender this Lease
under the provisions of Section 40 of the 1860 Act or otherwise, the
Tenant hereby absolutely abandons such right ;

 

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(iv)_        The Tenant shall not be liable to repair or remedy
damage in respect of which the Landlord is obliged to make good and/or remedy
in accordance with any of the provisions of this Lease; including Clause 5.4;

 

(v)           Nothing in this Lease shall oblige the Tenant to
remedy a latent defect or any want of repair attributable to such latent defect
or inherent defect.  WHERE “latent defect”
or “inherent defect” means: any defect in the demised premises or in anything
installed in or on the Demised Premises attributable to defective design,
defective workmanship or materials, defective supervision, of the construction
of or the installation of anything in or on the Demised Premises, or defective
preparation of the site on which the Demised Premises is constructed but
(without prejudice to the provisions of paragraph (i) of this proviso)
does not include any defect that might reasonably be expected to have been
apparent to an appropriate competent professional person on a visual inspection
of the Demised Premises carried out before the grant of this Lease.

 

4.5           Decorations

 

In
every Decoration Year as necessary and also during the last six months of the
Term (whether determined by effluxion of time or otherwise) to Decorate in a
good and workmanlike manner, using good quality materials, all parts of the
Demised Premises requiring decoration in colours to be approved in writing by
the Landlord (such approval not to be unreasonably withheld).

 

4.6           Cleaning and maintenance

 

4.6.1        To keep all parts of the Demised
Premises clean and tidy;

 

4.6.2        To clean properly at least once in every quarter all
windows and window frames and all other glass forming part of the Demised
Premises;

 

4.6.1        To keep those parts that are not built upon properly
surfaced and free from weeds;

 

4.6.2        To keep all landscaped areas within the Demised
Premises properly cultivated and maintained to their current high standard,
preserving any trees or shrubs in those areas.

 

4.7          Yielding
up

 

At
the expiration or sooner determination of the Term to yield up the Demised
Premises having-

 

4.7.1        complied with all the Tenant’s
covenants contained in this Lease, and

 

4.7.1        removed any moulding, sign, writing or painting of
the name or business of the Tenant or occupiers, and

 

4.7.2        if so required by the Landlord, but not otherwise,
removed all alterations or additions made to the Demised Premises by the
Tenant, together with any Tenant’s fixtures, fittings, furniture and effects,
and restored the Demised Premises to their original prevailing condition.

 

PROVIDED THAT the Tenant shall not be obliged to remove
floor screeds wall and ceiling finishes.

 

10

 

4.8          Tenant’s fixtures and effects

 

4.8.1        The Tenant irrevocably appoints the Landlord to be
the Tenant’s agent to store or dispose of (subject to any conditions which the
Landlord thinks fit) any fixtures, fittings, furniture and effects left by the
Tenant on the Demised Premises for more than seven days after the expiry or
sooner determination of the Term;

 

4.8.2        In acting under clause 4.8.1 the Landlord is not
liable to the Tenant save having to account for the net proceeds of sale less
the cost of storage (if any) and any other expenses reasonably incurred by the
Landlord.

 

4.9          Rights of entry by Landlord

 

To
permit the Landlord with all necessary materials and appliances at all
reasonable times upon reasonable prior notice (except in cases of emergency) to
enter and remain upon the Demised Premises for any of the following purposes:

 

4.9.1        to view and examine the state and condition of the
Demised Premises and to take schedules or inventories of the Landlord’s
fixtures and fittings;

 

4.9.2        to exercise any of the rights excepted and reserved
by, and to carry out any obligations arising under, this Lease;

 

4.9.3        for any other purpose connected with the interest of
the Landlord in the Demised Premises, including, but not limited to, valuing or
disposing of the said interest.

 

4.10        Compliance with notices

 

Upon
written notice being given by the Landlord to the Tenant of any breach of
covenant, and provided such breach is not minor or trivial in nature,-

 

4.10.1      to make good and remedy within sixty days of such
notice, or sooner if required in the notice, the breach to the reasonable
satisfaction of the Landlord;

 

4.10.2      if the Tenant fails within twenty-one days of such
notice, or as soon as reasonably possible in the case of an emergency, to
commence and then diligently and expeditiously to continue to comply with such
notice, to permit the Landlord to enter the Demised Premises and carry out all
or any of the works or other steps necessary for compliance with the notice;

 

4.10.3      to pay all reasonable and vouched costs and expenses
thereby incurred to the Landlord on demand.

 

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4.11        Operation of the Demised Premises

 

4.11.1      Not to engage in any activity in or on the Demised
Premises which may result in-

 

4.11.1.1           a material
increase in the risk of one or more of the Insured Risks happening or of
contamination, pollution, or overloading in, on or to the Buildings, the Estate
or the Demised Premises;

 

4.11.1.2           the creation of
any actionable nuisance, annoyance or disturbance affecting the enjoyment of
the Buildings, the Estate or the Adjoining Property or the value or character
of the Demised Premises;

 

4.11.1.3           the obstruction
of or interference with the ancillary rights specified in the Third Schedule or
with the rights of owners and occupiers of the Estate or of the Adjoining
Property;

 

4.11.1.4           the
interference with or malfunctioning of any fire and safety equipment or
appliances installed in the Estate or the Demised Premises;

 

4.11.1.5           the Landlord
incurring liability or expense under any statutory provision;

 

4.11.1.6           Not to erect,
place or display on the exterior or on the windows of the Demised Premises any
sign or other item whatsoever without obtaining the prior written consent of
the Landlord, which consent shall not be unreasonably withheld.

 

4.12        User

 

4.12.1      Not without the
prior written consent of the Landlord (which consent shall not be unreasonably
withheld) to use the Demised Premises except for the Permitted User nor to make
any application for planning permission or a fire and safety certificate in
regard to any change of user or other development relating to the Demised
Premises without first giving notice in writing to the Landlord of the
intention to make such application;

 

4.12.2      Not to leave
the Demised Premises continuously unoccupied (other than for normal holiday
periods) without notifying the Landlord;

 

4.12.3      To provide the
Landlord with the name, address and home telephone number of at least two
authorised key holders for the time being of the Demised Premises and to notify
the Landlord of any changes in the persons so authorised as keyholders of the
Demised Premises;

 

4.12.4      Not to use the
Demised Premises for any public or political meeting, public exhibition or
public entertainment, show or spectacle of any kind, nor for any dangerous,
noisy, noxious or offensive trade, business or occupation whatsoever, nor for
any illegal or immoral purpose, nor for residential or sleeping purposes;

 

4.12.5      Not to use the
Demised Premises or any part thereof for gambling, betting, gaming or wagering,
or as a betting office, or as a club, or for the sale of beer, wines and
spirits, nor to hold any auction on the Demised Premises.

 

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4.13        Alterations

 

4.13.1      Not to erect
any new building or structure or to engage in any works on, or to make any
addition or alteration to, the Demised Premises of such a kind that the Demised
Premises lose their original identity;

 

4.13.2      Not to make any
other addition or alteration to the Demised Premises without the prior written
consent of the Landlord (which consent shall not be unreasonably withheld or
delayed) save non structural internal alterations;

 

4.13.3      The Landlord
may, as a condition of giving consent under the immediately preceding
sub-clause, require the Tenant to enter into covenants or undertakings as to
the carrying out and insurance of the additions or alterations to the Demised
Premises and as to their reinstatement to their original state at the expiration
or sooner determination of the Term;

 

4.13.4      In respect of
such additions or alterations, to comply in all respects with the provisions,
as appropriate, of the Planning Acts and the Building Control Act and to carry
out any related works in a good and workmanlike manner to the satisfaction of
the Landlord;

 

4.13.5      In the case of
any such works requiring a planning permission or a Fire Safety Certificate the
Tenant shall furnish an Opinion on Compliance with planning permissions or
Building Regulations (as appropriate) in respect of such works from an
architect or engineer together with copies of the Fire Safety Certificate,
Commencement Notice and ‘as built’ drawings following completion of the works

 

4.14        Alienation

 

4.14.1      Not to assign,
sub-let, part with or share the possession of the entirety of the Demised
Premises without the prior written consent of the Landlord (which consent shall
not be unreasonably withheld or delayed);

 

4.14.2      Not under any
circumstances to assign, sub-let, part with or share the possession of or
otherwise alienate a part of the Demised Premises;

 

4.14.3      The Tenant in
seeking consent to any proposed alienation shall apply in writing to the
Landlord and shall provide all information concerning the alienation as the
Landlord may reasonably require;

 

4.14.4      In granting
consent to any such proposed alienation the Landlord may impose such conditions
as are reasonable in all the circumstances.

 

4.14.5     It shall be
reasonable for the Landlord to withhold consent if the proposed assignment,
transfer, charge, underletting or parting with or sharing the possession of the
Premises or the sufferance of any person to occupy the Premises or any part
thereof as a licensee or concessionaire will or could give rise to a VAT
liability for the Landlord, provided that it shall not be reasonable for the
Landlord soley on that basis to withhold consent to such proposed assignment,
transfer, charge, underletting or parting with or sharing the possession of the
Premises or the sufferance of any person to 

 

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occupy
the Premises or any part thereof as a licensee or concessionaire, where;

 

4.14.5.1            The Tenant pays
to the Landlord the full amount of any irrecoverable VAT which will be incurred
by the Landlord as a result thereof, and

 

4.14.5.2            The Tenant or some other party satisfactory to the
Landlord indemnifies the Landlord in a form satisfactory to the Landlord
(acting reasonably) against:-

 

4.14.5.2.1                all future VAT
which the Landlord will or may incur as a result of such assignment, transfer,
subletting or partying with possession of the Premises or the sufferance of any
person to occupy the Premises or any part thereof as a licensee or
concessionaire.

 

4.14.5.2.2                all future VAT
which the Landlord will or may incur as a result of any use to which the
Premises may be put during the Term; and/or

 

4.14.5.2.3                all future VAT
which the Landlord will or may incur as a result of the business activities of
the assignee or other person driving title from the Tenant insofar as they
affect directly or indirectly the Landlord’s liability to recover VAT in
respect of the Premises.

 

4.15        Registration
of dispositions

 

To
furnish to the Landlord or its solicitors within twenty-one days of the
alienation a certified copy of the deed or other instrument evidencing or
effecting any alienation of or relating to the Demised Premises.

 

4.16        Landlord’s
expenses

 

To
pay and indemnify the Landlord against all reasonable costs and expenses
properly incurred by the Landlord in relation to:

 

4.16.1      the preparation
and service of any notice and of any proceedings under the 1860 Act or the 1881
Act;

 

4.16.2      the preparation
and service of any notice and schedule relating to disrepair;

 

4.16.3      the recovery or
attempted recovery of arrears of rent or other sums payable under this Lease;

 

4.16.4      procuring the
remedying of any material breach of covenant by the Tenant;

 

4.16.5      any application
for consent required under the terms of this Lease (whether such consent is
granted or not);

 

4.16.6      any other
action taken at the request of the Tenant.

 

14

 

4.17        Statutory requirements

 

4.17.1    At the Tenant’s own
expense, to comply in all respects in relation to the Demised Premises with-

 

4.17.1.1           all obligations
and requirements arising from or under any statutory provision or imposed under
powers conferred on any authority or court of competent jurisdiction;

 

4.17.1.2           any reasonable
demand by the Landlord for production of plans, documents and other evidence
which the Landlord may require in order to satisfy itself that the provisions
of this clause have been or will be complied with.

 

4.17.2    Upon receipt of any
notice or order relating to the Demised Premises or the occupier thereof or of
any proposal for the same served or given under the Planning Acts, the Building
Control Act or any other statutory provisions, forthwith-

 

4.17.2.1           to furnish the
Landlord with a true copy thereof and any further particulars required by the
Landlord;

 

4.17.2.2           to take all
necessary steps to comply with the notice or order in compliance with the
Tenants obligations under this Lease only and for the avoidance of doubt the
tenant shall not be obliged to rectify any breach of the Planning Acts or
Building Regulations which occurred as a result of works to the Demised
Premises prior to the commencement of the Term;

 

4.17.2.3           at the written
request of the Landlord but at no cost to the Tenant, to make or join with the
Landlord in making such objection or representation against or in respect of
any such notice, order or proposal as the Landlord may reasonably require.

 

4.18        Encroachments and easements

 

4.18.1    Not to stop up, darken
or obstruct any window, rights of light or rights of ways belonging to the
Demised Premises, save as may be consequent on permitted signage or
alterations;

 

4.18.2    Not to permit any new
easement, encroachment, or any other third party rights to be made or enjoyed
over or in respect of the Demised Premises or to acknowledge their existence or
to grant any such rights;

 

4.18.3    As soon as the Tenant
is aware of any attempt to claim or exercise such third party rights, forthwith
to give written notice thereof to the Landlord and, at the request of the
Landlord, to take such steps as may be reasonably required by the Landlord to
prevent their acquisition or otherwise deal with them.

 

4.19        Reletting and planning
application notices

 

To
permit the Landlord at all reasonable times during the last six months of the
Term to enter upon the Demised Premises and affix and retain without
interference upon any suitable parts of the Demised Premises (but not so as
materially to affect the access of light and air to the Demised Premises)
notices of reletting the same and, as appropriate, any site notice relating to
a planning application and to permit all persons 

 

15

 

with
the written authority of the Landlord or its agent to view the Demised Premises
at all reasonable hours in the daytime, upon prior notice having been given.

 

4.20          Indemnity

 

4.20.1     To keep the
Landlord fully indemnified from and against all actions, proceedings, claims,
demands, losses, costs, expenses, damages and liability arising directly or
indirectly from-

 

4.20.1.1        breach by the
Tenant of any of the provisions of this Lease;

 

4.20.1.2        the use of or
works carried out on or to the Demised Premises during the Term;

 

4.20.1.3        any act,
neglect or default by the Tenant or any person on the Demised Premises with its
actual or implied authority.

 

4.20.2     To effect and
keep in force such public liability, employer’s liability and other policies of
insurance (to the extent that such insurance cover is available) as may be
necessary to cover the Tenant against any claim arising under the preceding
sub-clause and to extend such policy or policies so that the Landlord is
indemnified by the insurers in the same manner as the Tenant.

 

4.20.3     Whenever
required to do so by the Landlord, to produce to the Landlord the said policy
or policies together with satisfactory evidence that the same is/are valid and
subsisting and that all premiums due thereon have been paid.

 

4.21          Landlord’s regulations

 

To
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 Estate and any other areas used or to be used in common with others.

 

4.22          Stamp Duty and Value Added Tax

 

To
pay to the Landlord-

 

4.22.1     any stamp duty
payable on this Lease and its counterpart together with registration fees;

 

4.22.2     any Value Added
Tax arising from the grant of this Lease or on the rents reserved by it.

 

4.22.3     The Landlord
hereby notifies the Tenant that he is opting to tax the Lease within the
meaning of Section 7A of the VAT Act and that the premises is a Capital
Good under Section 12 E of the VAT Act but has the right, upon written
notification to the Tenant, from time to time, to cancel such option.

 

4.22.3.1        In the event
that the Landlord has exercised the option to tax this Lease for VAT purposes,
the Tenant hereby undertakes;-

 

16

 

4.22.3.2        to furnish to the Landlord in a timely manner
all information available to the Tenant in respect of the Premises which the Landlord
reasonably requires and requests in order to enable the Landlord to comply with
any VAT obligations of the Landlord relating to the Premises and to indemnify
and keep the Landlord indemnified against any loss arising to the Landlord
should the Tenant supply to the Landlord any such information which may be
untrue or incorrect in any particular or fail to supply the appropriate
information in a timely manner.

 

4.22.3.3        To pay to the Landlord on demand all
reasonable costs to the Landlord on demand all reasonable costs to the Landlord
in complying with the Landlord’s VAT obligations arising from any actual or
possible deductibility or adjustment for VAT in respect of the Premises.

 

4.22.3.4        to indemnify and keep the Landlord fully
indemnified from and against all actions, costs, claims, proceedings, expenses
and demands arising from and against all actions, costs, claims proceedings,
expenses and demands arsing from or consequent on the carrying out of any works
to the Premises which would or might require a deductibility payment under the
Capital Goods Scheme.

 

4.23        Insurance

 

4.23.1      Not to do or
omit to do anything which might cause any policy of insurance relating to the
Demised Premises or the Building or any Adjoining Property owned by the
Landlord to become void or voidable wholly or in part nor (unless the Tenant
has previously notified the Landlord and agreed to pay the increased premium)
to do anything whereby any abnormal or loaded premium may become payable.

 

4.23.2      Subject to the
Landlord furnishing the Tenant with a copy of any policy of insurance effected
under clause 5.4, to comply, at the Tenant’s own expense, with all the
requirements under that policy and the recommendations of the insurers relating
to the Demised Premises.

 

4.23.3.1           If so requested
by the Landlord, to insure and keep insured in the joint names of the Landlord
and the Tenant any glass forming part of the Demised Premises against breakage
(other than as a result of the Insured Risks) for a sum which is not less than
the full replacement value thereof for the time being with such insurance
company as may from time to time be approved by the Landlord;

 

4.23.3.2           To pay within
fourteen days of their becoming payable all premiums relating to any such
insurance and, whenever reasonably required by the Landlord, to produce the
policy of insurance and the receipt for the current year’s premium.

 

4.24         Electro-Magnetic
compatibility

 

To
ensure that all electrical and electronic equipment located placed or installed
in the Demised Premises is, in so far as it is reasonably practicable and
foreseeable to do so, located, placed or installed and kept and 

 

17

 

maintained
in such place and in such manner as to avoid or minimize electro-magnetic
interference, including malfunction in it’s own or in other electronic
equipment in the Estate including in particular (but without prejudice to the
generality of the foregoing) data transmission systems.

 

4.25         Fire
and Safety Precautions

 

To
comply with the requirements and recommendations of the appropriate Local
Authority, the insurers of the Estate and the Landlord in relation to fire and
health & safety precautions affecting the Demised Premises and to
comply at all times with the provisions of any Act in respect of fire and
health & safety PROVIDED such requirements and recommendations in
respect of the Demised Premises do not result in the Tenant incurring excessive
costs, and unless the requirements and recommendations arise out of the Tenants
specific user of the Demised Premises since the commencement of the Term.

 

4.26         To
Comply with Head Leases

 

4.26.1    to comply in every
respect with all the covenants and conditions on the part of the Tenant under
the Head Leases insofar as they relate to the Demised Premises, other than the
covenant for payment of rent.

 

4.26.2     to indemnify and
keep indemnified the Landlord from and against all losses arising from any
breach non-observance or non-performance by the Tenant of any covenants,
conditions, or terms of the Head Leases insofar as they relate to the Demised
Premises and on the part of the Tenant thereunder to be performed and observed.

 

4.27        Registration
of Company

 

4.27.1    To comply with all
statutory requirements necessary to ensure that the Tenant remains on the
register of companies.

 

5            LANDLORD’S
COVENANTS

 

The
Landlord HEREBY COVENANTS with the Tenant as follows:

 

5.1          Quiet enjoyment

 

To permit the Tenant, provided he pays the rent reserved by and
otherwise complies with the provisions of this Lease, peaceably to hold and
enjoy the Demised Premises during the Term without any interruption by the
Landlord or any person lawfully claiming through, under or in trust for it.

 

5.2          Exercise of rights

 

In
exercising any of the Landlord’s rights of entry or other rights in relation to
the Demised Premises-

 

5.2.1        to take all
necessary steps to ensure that as little damage is done to the Demised Premises
and as little inconvenience is caused to their occupiers as is reasonably
commercially practicable;

 

5.2.2        to make good
without delay any damage which may be caused by such exercise.

 

18

 

5.3          Provision of services

 

Subject
to reimbursement by the Tenant of the Service Charge, to use all reasonable
commercial endeavours to provide the following services in accordance with the
principles of good estate management:-

 

5.3.1        To keep the
Retained Parts in good repair and condition;

 

5.3.2        To keep clean
and maintained in a proper manner, the Common Parts;

 

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

 

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

 

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

 

5.3.6        Any other
services which in the reasonable opinion of the Landlord are commercially
necessary or desirable from time to time for the comfort convenience and
security of the tenants, occupiers and users of the Estate or any part or parts
thereof.

 

5.4          Insurance

 

5.4.1        Subject to
reimbursement by the Tenant of the premiums payable by the Landlord, to insure
and keep insured with an insurer of repute located in Ireland in the name of
the Landlord-

 

5.4.1.1     the Demised
Premises against loss or damage by the Insured Risks in the full reinstatement
costs thereof (to be determined from time to time by the Landlord or his
professional adviser) including:

 

(i)    Architects,
Surveyors, Consultants and other professional fees (including Value Added Tax
thereon);

 

(ii)   the costs of
shoring up, demolishing, site clearing and similar expense;

 

(iii)  all stamp duty
and other taxes or duties exigible on any building or like contract as may be
entered into and all incidental expenses (including planning and building
regulation fees) relative to the reconstruction, reinstatement or repair of the
Demised premises;

 

(iv)  such provision
for inflation as the Landlord in its absolute discretion acting reasonably
shall deem appropriate;

 

19

 

5.4.1.2           the loss of
rent and the Service Charge from time to time payable, or reasonably estimated
to be payable, under this Lease (taking account of any review of the rent which
may become due under this Lease) following loss or damage to the Demised
Premises by the Insured Risks, for three years or such longer period as the
Landlord may, from time to time, reasonably deem to be necessary, having regard
to the likely period required for rebuilding and for obtaining planning
permission and any other consents, certificates and approvals in connection
with the reinstatement of the Demised Premises;

 

5.4.1.3           the property
owner’s, public, employer’s and other liability of the Landlord arising out of
or in relation to the Estate;

 

5.4.1.4           such other
insurances as the Landlord may, in its discretion, from time to time deem
necessary to effect.

 

5.4.2        At the request
of the Tenant, the Landlord shall produce to the Tenant a copy or extract duly
certified by the Landlord of such insurance policy or policies and a copy of
the receipt for the last premium or (at the Landlord’s option) reasonable
evidence from the insurers of the terms of the insurance policy or policies and
the fact that it is or they are subsisting and in effect;

 

5.4.3        If the Demised
Premises is destroyed or damaged by any of the Insured Risks then:

 

5.4.3.1        unless payment
of any of the insurance moneys is refused by reason of any act or default of
the Tenant, any under-tenant or any person under its or their control; and

 

5.4.3.2     subject to the
Landlord being able to obtain any necessary planning permission and other
necessary licences, certificates, approvals and consents (which the Landlord
shall use its reasonable endeavours to obtain); and

 

5.4.3.3   subject to the necessary
labour and materials being and remaining available (which the Landlord shall
use its reasonable endeavours to obtain as soon as practicable); and

 

5.4.3.4     subject to
exercise of the right to terminate the Lease under this clause;

 

the
Landlord shall as soon as possible lay out the proceeds of insurance effected
under clause 5.4.1.1 in rebuilding and reinstating the Demised Premises as
necessary to make it substantially the same as it was prior to the destruction
or damage (but not so as to provide accommodation identical in layout and
manner or method of construction if it would not be reasonably practical to do
so);

 

5.4.4        If the Landlord
is prevented (for any reason other than its act or default) from compliance
with the previous provisions of this clause the following provisions apply:

 

5.4.4.1              the Landlord is
relieved of its obligations and is solely entitled to all insurance moneys;

 

5.4.4.2              if the
prevention continues for three years and the Lease is not otherwise terminated,
the Landlord or the Tenant may at any time

 

20

 

after
expiry of that period by not less than three months’ written notice given to
the other party determine this Lease, but without prejudice to any claim by
either party against the other in respect of any antecedent breach of its
terms;

 

5.4.5         If the destruction or damage to the Demised Premises
renders the Demised Premises unfit for use and occupation and provided the
insurance has not been vitiated nor payment of any insurance moneys refused by
reason of any act or default of the Tenant, any undertenant or any person under
its or their control, the rent and the Service Charge payable under clause 3 of
this Lease shall be suspended in accordance with the following provisions:

 

5.4.5.1      the rent and the Service Charge suspended shall be
the whole rent or Service Charge or such proportion as is fair according to the
nature and extent of the damage to the Demised Premises;

 

5.4.5.2      the suspension shall last until either the Demised
Premises are again rendered fit for use and occupation or the expiration of three
years (or such longer period as the Landlord may have insured against) from the
date of destruction or damage, whichever is the earlier;

 

5.4.5.3      where the destruction or damage occurs during a
quarter in respect of which rent or the Service Charge has been paid in
advance, the Landlord shall refund to the Tenant the proportion of that rent or
that Service Charge (apportioned on a daily basis) which is attributable to the
period following the date of destruction or damage;

 

5.4.5.4      any dispute regarding suspension of rent or Service
Charge shall be determined by a single arbitrator to be appointed, in default
of agreement, upon the application of either party, by or on behalf of the
President or acting President for the time being of the Society of Chartered
Surveyors in accordance with the provisions of the Arbitration Acts, 1954–1980.

 

5.4.6        As and when requested from time to time by the
Tenant, the Landlord shall use its reasonable endeavours:

 

5.4.6.1              to obtain from the Landlord’s insurers a waiver of
its subrogation rights (if any) against the Tenant in respect of the Demised
Premises so long as such a waiver is available in the insurance market from a
reputable insurer located in Ireland and any costs reasonably incurred thereby
are discharged by the Tenant;

 

5.4.6.2              to ensure that the insurance policy or policies in
respect of the Insured Risks contain a provision that the insurance is not
invalidated by any change of occupancy or increase or risk taking place in or
on the Demised Premises without the knowledge of the Landlord provided that the
Landlord shall immediately upon the same coming to its knowledge give notice to
the insurers and the Tenant shall pay any additional premiums as may be
required from the date of such increase of risk.

 

5.4.7        For the purposes of this clause “Demised Premises”
do not include (unless otherwise specified by the Landlord) any additions,
alterations or improvements carried out or being carried out by the Tenant.

 

21

 

6.            [GUARANTOR’S
COVENANTS]

 

The
Guarantor HEREBY COVENANTS with the Landlord, as a primary obligation, as
follows:

 

6.1       Covenant and indemnity

 

That the Tenant [or the Guarantor] shall at all
times during the Term (including any continuation or renewal of this Lease)
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 herein specified and all sums
which may be lawfully and properly due to the Landlord for mesne rates or as
payment for the use and occupation of the Demised Premises [the Guarantor
hereby indemnifies the Landlord against all claims, demands, losses, damages,
liability, costs, fees and expenses whatsoever sustained by the Landlord by
reason of or arising in any way directly or indirectly out of any default by
the Tenant in the performance and observance of any of its obligations or the
payment of any rent and other sums arising before or after the expiration or
termination of this Lease .

 

6.2       Joint and several liability

 

That the Guarantor is jointly and severally liable
with the Tenant (whether before or after any disclaimer by a liquidator or the
Official Assignee) for the fulfillment of all the obligations of the Tenant
under this Lease and agrees that the Landlord, in the enforcement of its rights
hereunder, may proceed against the Guarantor as if the Guarantor was named as
the Tenant in this Lease.

 

6.3           Waiver

 

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

 

6.4           Postponement of claims

 

That
the Guarantor will not claim in any liquidation, bankruptcy, composition or
arrangement of the Tenant in competition with the Landlord and will remit to
the Landlord the proceeds of all judgments and all distributions it may receive
from any liquidator or Official Assignee of the Tenant and will hold for the
benefit of the Landlord all security and rights the Guarantor may have over
assets of the Tenant whilst any liabilities of the Tenant or the Guarantor to
the Landlord remain outstanding.

 

6.5           Postponement of participation

 

That
the Guarantor is not 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 Tenant or the Guarantor to the Landlord under
this Lease have been performed or discharged.

 

22

 

6.6           Release

 

That
none of the following, or any combination thereof, releases, determines,
discharges or in any way lessens or affects the liability of the Guarantor as
principal debtor under this Lease or otherwise prejudices or affects the right
of the Landlord to recover from the Guarantor to the full extent of this
guarantee:

 

6.6.1        any neglect, delay or forbearance of the Landlord in
endeavouring to obtain payment of any part of the rents or the other 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;

 

6.6.2        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 14 of the 1881 Act have
been entitled) to re-enter the Demised Premises;

 

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

 

6.6.4        any variation of the terms of this Lease (including
any reviews of the rent payable under this Lease) or the transfer of the
Landlord’s reversion or the assignment of this Lease;

 

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

 

6.6.6        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;

 

6.6.7        any other act, omission, matter or thing whatsoever
whereby, but for this provision, the Guarantor would be exonerated either
wholly or in part (other than a release under seal given by the Landlord)

 

6.7           Disclaimer or forfeiture

 

That:

 

6.7.1        if

(i)            a liquidator or Official Assignee shall disclaim or
surrender this Lease; or

 

(ii)           this Lease shall be forfeited; or

 

(iii)          the Tenant shall cease to exist

 

THEN
the Guarantor shall, if the Landlord by notice in writing given to the
Guarantor within twelve months after such disclaimer or other event so
requires, accept from and execute and deliver to the Landlord a new lease of
the Demised Premises subject to and with the benefit of this Lease (if the same
shall still be deemed to be extant at such time) 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 cost of the
Guarantor and to be at the same rents and subject to the same covenants,
conditions and provisions (other than clause 6) as are contained in this Lease;

 

23

 

6.7.2        if the Landlord does not require the Guarantor to
take a new lease, the Guarantor shall nevertheless upon 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, forfeiture or other event in respect
of the period from and including the date of such disclaimer, forfeiture or
other event until the expiration of twelve months therefrom or until the
Landlord has granted a lease of the Demised Premises to a third party
(whichever shall first occur).

 

6.8           Benefit of guarantee

 

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

 

6.9           Jurisdiction

 

That
the Guarantor will submit to the jurisdiction of the Irish courts in relation
to any proceedings taken against the Guarantor or in relation to any new lease
granted as aforesaid.

 

6.10         Registration of company

 

That
the Guarantor will comply  with all
statutory requirements necessary to ensure that the Guarantor remains on the
register of companies.

 

PROVISOS

PROVIDED
ALWAYS as follows:

 

7.1           Forfeiture

 

Without
prejudice to any other right, remedy or power herein contained or otherwise
available to the Landlord if:

 

7.1.1        the whole or any part of the rents or other sums
reserved by this Lease is unpaid for twenty one days after becoming payable
(whether formally demanded or not); or

 

7.1.2        there is a breach of any of
the Tenant’s covenants; or

 

7.1.3        if the Tenant or the Guarantor (either or both being
a body corporate) has a winding-up petition presented against it or passes a
winding-up resolution (other than in connection with a members’ voluntary
winding-up for the purposes of amalgamation or reconstruction which has the
prior written approval of the Landlord) or resolves to present its own
winding-up petition or is wound-up (whether in Ireland or elsewhere) or a
Receiver and Manager is appointed in respect of the Demised Premises or of the
Tenant or of the Guarantor; or

 

7.1.4        if the Tenant or the [Guarantor] (either or both
being an individual, or if more than one individual, then any one of them) has
a bankruptcy petition presented against him or is adjudged bankrupt (whether in
Ireland or elsewhere) or suffers any distress or execution to be levied on the
Demised Premises or enters into composition with his creditors or has a
receiving order made against him;

 

24

 

THEN,
and in any such case, the Landlord may at any time thereafter re-enter the
Demised Premises and thereupon the Term absolutely ceases and determines, but
without prejudice to any rights or remedies which may then have accrued to the
Landlord against the Tenant in respect of any antecedent breach of any of the
covenants or conditions contained in this Lease.

 

7.2                               No
implied easements

 

Nothing
in this Lease shall impliedly confer upon or grant to the Tenant any easement,
right or privilege other than those expressly granted (if any) by it.

 

7.3                               Exclusion
of warranty as to user

 

Nothing
contained in this Lease or in any consent granted or approval given by the
Landlord under it implies or warrants that the Demised Premises may be used
under the Planning Acts or the Building Control Act for the purpose herein
authorised or any purpose subsequently authorised and the Tenant hereby
acknowledges that the Landlord has not given or made at any time any
representation or warranty that any such use is or will be or will remain a
permitted use under those Acts.

 

7.4                               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.

 

7.5                               Failure
by the 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 Lease, whether
express or implied, unless and until the Tenant has notified the Landlord of
such failure and the Landlord has failed within a reasonable time to remedy the
same and then in such case the Landlord shall (subject to the provisions of
Clause 7.7 below) be liable to compensate the Tenant only for actual (but not
consequential) loss or damage sustained by the Tenant after such reasonable
time has elapsed.

 

7.6                               Exclusion
of Landlord’s liability

 

The
Landlord shall not, in any circumstances, incur any liability for any failure
or interruption in any of the services provided by the Landlord or for any
inconvenience or injury to person or property arising from such failure or
interruption due to mechanical breakdown, failure or malfunction, overhauling,
maintenance, repair or replacement, strikes, labour disputes shortages of
labour or materials, inclement weather or any cause or circumstance beyond the
control of the Landlord but the Landlord shall use its reasonable commercial
endeavours to cause the service in question to be reinstated with the minimum
of delay.

 

7.7                                Covenants
relating to Adjoining Property

 

Nothing
contained in or implied by this Lease shall give to the Tenant the benefit of
or the right to enforce or to prevent the release or modification 

 

25

 

of
any covenant, agreement or condition entered into by any tenant of the Landlord
in respect of the Adjoining Property other than as provided for in the within
Lease.

 

7.8                               Effect
of waiver

 

7.9.1        Each of the
Tenant’s covenants shall remain in full force both at law and in equity
notwithstanding that the Landlord may have appeared to have waived or released
temporarily any such covenant, or waived or released temporarily or
permanently, revocably or irrevocably a similar covenant affecting other
property belonging to the Landlord.

 

7.9.2        Waiver by the
Landlord of the requirement for a Guarantor under this Lease is personal to
Tornier Orthopedics Ireland Limited  and it shall
not be deemed unreasonable for the Landlord to withhold consent to any proposed
assignment of the Lease in the absence of acceptable Guarantors.

 

7.10                        Applicable
Law

 

This
Lease and all relationships created thereby shall in all respects be governed
by and construed and interpreted in accordance with Irish Law.

 

7.11                        Notices

 

7.11.1                 Any demand or
notice required to be made, given to, or served on the Tenant under this Lease
is duly and validly made, given or served if addressed to the Tenant (or, if
the Tenant comprises more than one person, then to any of them) and delivered
personally, or sent by prepaid registered or recorded delivery mail, or sent by
telex or telegraphic facsimile transmission addressed (in the case of a
company) to its registered office or (whether a company or individual) to its
last known address, or to the Demised Premises;

 

7.11.2                 Any notice
required to be given or served on the Landlord is duly and validly given or
served if sent by pre-paid registered or recorded delivery mail, or sent by
telex or telegraphic facsimile transmission addressed to the Landlord at its
registered office.

 

7.12        Termination
by Tenant

 

The
Tenant may terminate this Lease as of the expiration of the tenth and fifteenth
year of the Term (“the Option Date”) subject strictly to the following terms
and conditions:

 

7.12.1               The Tenant shall serve on the Landlord a
notice in writing exercising the said right (“the Notice”) at least six months
prior to the expiry of the Option Date (but in any event not prior to the
expiry of the ninth or fourteenth year of the Term) and in this regard time
shall be of the essence.

 

7.12.2               The Tenant shall on or prior to the Option
Date deliver to the Landlord the original of this Lease, together with all
related title documentation (including a release or discharge of all mortgages,
charges and other incumbrances, whether registered or not), and shall as
beneficial    owner deliver duly executed
and stamped a transfer or surrender of 

 

26

 

this
lease and (if applicable) shall procure the cancellation of its registration in
the Land Registry.

 

7.12.3               Any such termination shall be without
prejudice to any antecedent breach by either the Landlord or Tenant of any of
their respective covenants herein contained.

 

7.12.4               In the event of the Tenant who first entered
into this Lease assigning it with the Landlord’s consent to a third party the
provisions contained in this clause shall not apply to such third party or any
subsequent successors in title thereto.

 

8.             SERVICE
CHARGE

 

8.1           For the purpose of this Lease, the following
expressions have the following meanings:

 

8.1.1                                                                        “Expenditure” means:

8.1.1.1                     the aggregate of all costs,
fees, expenses and outgoings whatsoever incurred by the Landlord in complying
with its obligations in Clause 5.3 and in respect of the items set out in the
Seventh Schedule (whether or not the Landlord is obliged by this Lease to incur
the same);

 

8.1.1.2                     such sums as the Landlord
shall, in its discretion, acting reasonably and with due regard to the tenants
concerns, 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;

 

8.1.1.3                     such provision for
anticipated expenditure in respect of any of the services to be provided by the
Landlord or any of the items referred to in the Seventh Schedule as the
Landlord shall, in its absolute discretion, consider fair and commercially
reasonable in the circumstances;

 

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

 

8.1.3                        “Estimated Expenditure”
means, for any Financial Year during the Term, such sum as the Landlord shall,
from time to time, specify as being, in its absolute discretion, a fair and
reasonable estimate of the Expenditure for the current Financial Year based
upon a budget prepared by the Landlord and submitted to the Tenant; Provided
that the Landlord may from time to time during any Financial Year, as
appropriate, submit to the Tenant revised budgets with respect to its estimate
of the Expenditure for that Financial Year whereupon appropriate adjustments
shall be made to such sum to reflect the revised budget(s);

 

8.1.4                        “Accountant” means any
person appointed by the Landlord to perform the function of an accountant in
relation to the Expenditure;

 

27

 

8.2           The Landlord shall, as soon as convenient 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, upon such account being certified by the Surveyor or Accountant
(a copy of which shall be supplied to the Tenant), the same shall be conclusive
evidence, for the purposes of this Lease, of all matters of fact referred to in
the account;

 

8.3           The Tenant shall pay to the Landlord on account of
the Service Charge for the period commencing on the Service Charge Commencement
Date down to the end of the following Financial Year and thereafter during each
subsequent Financial Year during the Term the same percentage of the Estimated
Expenditure (“the Advance Payment”) as that upon which the Service Charge is
calculated and such payments shall be made by equal quarterly payments in
advance on the Quarterly Gale Days (subject to adjustment if the Estimated
Expenditure is revised as contemplated by the definition thereof); Provided
Always that the first portion of the Advance Payment shall be a proportionate
part of the first quarterly payment of the Advance Payment as notified to the
Tenant prior to delivery of this Lease and shall be payable on the execution
hereof in respect of the period from and including the Service Charge
Commencement date to the day before the Quarterly Gale Day following the
Service Charge Commencement Date;

 

8.4           If the Service Charge for
any Financial Year shall:

 

8.4.1        exceed the Advance Payment for that Financial year,
the excess, shall be paid by the Tenant to the Landlord on demand; or

 

8.4.2        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.

 

8.5        Any omission by the Landlord to include in any
Financial Year a sum expended or a liability incurred in that Financial Year
shall not preclude the Landlord from including such sum of the amount of such
liability in the  subsequent Financial Year
only.

 

8.5           In performing its obligations contained in Clause
5.3, the Landlord shall be entitled, at its discretion, to employ agents,
contractors and such other persons as it may think fit and to delegate its
duties and powers to them and their fees and expenses (including VAT) shall
form part of the Expenditure.

 

8.6           The Landlord may, at its discretion, withhold, add
to, extend, vary or make any alterations to any of the services from time to
time if the Landlord shall reasonably deem it desirable to do so, paying due
regard to the concerns of the tenant, for the more efficient management,
security and operation of the Building, or for the comfort of the tenants in
the Building.

 

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

 

28

 

9.             REVENUE
CERTIFICATES

 

9.1           It is hereby further certified that the
consideration (other than rent) for the lease is wholly attributable to
property which is not residential property and that the transaction effected by
this instrument does not form part of a larger transaction or of a series of
transactions in respect of which the amount or value, or the aggregate amount
or value, of the consideration (other than rent) which is attributable to
property which is not residential property exceeds €10,000;

 

9.2           It is hereby further certified that section 53
(lease combined with building agreement for dwelling house/apartment) of the
Stamp Duties Consolidation Act, 1999, does not apply to this instrument.

 

10.           SECTION 29
COMPANIES ACT, 1990

 

It
is hereby certified for the purposes of Section 29 of the Companies Act
1990 that the Landlord and the Tenant are not bodies corporate connected with
one another in a manner which would require this transaction to be ratified by
resolution of either.

 

IN
WITNESS whereof the parties hereto have executed this Lease in the manner
following and on the day and year first above WRITTEN.

 

29

 

FIRST
SCHEDULE  

(The Estate)

 

ALL
THAT the entire of the lands and premises together with the buildings erected
thereon shown for the purposes of identification only outlined in blue on the
Plan and each and every part thereof and all the appurtenances belonging
thereto and known as Hartnett’s Cross Business Park and situate at Hartnett’s
Cross, Macroom in the County of Cork.

 

SECOND
SCHEDULE 

(Demised Premises)

 

ALL
THAT part of the Estate being ALL THAT AND THOSE the lands and premises
together with the buildings erected thereon 
shown outlined in red on the Plan annexed hereto being part of the
property comprised in Folios 91286F County Cork, CK13025L, CK 13023L and
CK13026L and including without prejudice to the generality of the foregoing:

 

all
the conduits and plant in, upon, over or under and exclusively serving same;

all
Landlord’s fixtures and fittings now or hereafter in or upon the same;

all
additions, alterations and improvements thereto

all
car park spaces serving the demised premises.

 

THIRD
SCHEDULE 

(Ancillary Rights)

 

The
following rights and easements are demised (to the extent only that the
Landlord is entitled to make such a grant) to the Tenant to be enjoyed in
common with the Landlord and the other tenants and occupiers of the Building
and tenants and occupiers of the Estate and Adjoining Property and all other
persons authorised by the Landlord or having the like rights and easements:

 

1.      The free and
uninterrupted passage and running of the Utilities to and from the Demised
Premises through the Conduits which are now, or may at any time during the Term
be, in, on, under or passing through or over the Estate and the Adjoining
Property;

 

2       The right for
the tenant and all persons authorised by him or coming onto or leaving the
Demised Premises to at all times pass and repass  over and along for the purpose only of continuous
and uninterrupted access to and egress from the Demised Premises the roadways
and footpaths indicated by a green line on the Plan and the right of access to
and egress from the rear yard space by the way in width measuring 10 metres  indicated by a broken yellow line on the Plan
attached hereto subject to the right of the Landlord to alter the course of the
right of way from time to time.

 

3.     The Landlord
shall be responsible for the maintenance, repair and insurance of the right of
way indicated by a broken green line on the Plan attached hereto in its current
state and condition.

 

4.     The rights of
air, support, protection and shelter and all other easements and rights now or
hereafter belonging to or enjoyed by the Demised Property.

 

30

 

5.     The right to
enter the airspace above the roof of the Demised Premises, for the sole purpose
of carrying out any works for which the Tenant may be liable under this Lease.

 

FOURTH
SCHEDULE]

(Exceptions and Reservations)

 

The
following rights and easements are excepted and reserved out of the Demised
Premises to the Landlord and the tenants and occupiers of the Building and all
other persons authorised by the Landlord or having the like rights and
easements:

 

1.      The free and
uninterrupted passage and running of the Utilities through the Conduits which
are now, or may at any time during the Term be in, on, under, or passing
through or over the Demised Premises;

 

2.             The right, at
all reasonable times upon reasonable prior notice, except in cases of
emergency, to enter (or, in cases of emergency or after the giving of
reasonable notice during the Tenant’s absence, to break and enter) the Demised
Premises in order to:

 

2.1           inspect, cleanse, maintain, repair, connect, remove,
lay, renew, relay, replace with others, alter or execute any works whatever to
or in connection with the Conduits and any other services;

 

2.2           execute repairs, decorations, alterations and any
other works and to make installations to the Demised Premises, the Estate or
the Adjoining Property or to do such works which are necessary for the  landlord to comply with the terms of the
lease;

 

2.3           see that no unauthorised erections additions or
alterations have been made and that authorised erections additions and
alterations are being carried out in accordance with any consent given herein
and any permission or approval granted by the relevant local authority,

 

PROVIDED
THAT the Landlord or the person exercising the foregoing rights shall cause
as little inconvenience as possible to the Demised Premises and shall make
good, without delay, any damage thereby caused to the Demised Premises;

 

3.      The right to
erect scaffolding for the purpose of repairing or cleaning   any building now or hereafter erected on the
Adjoining Property or in connection with the exercise of any of the rights
mentioned in this Schedule notwithstanding that such scaffolding may
temporarily interfere with the proper access to or the enjoyment and use of the
Demised Premises, the Landlord to pay due regard to the tenants observations;

 

4.     The right to
erect and maintain signs on the Demised Premises and any premises abutting the
same advertising the sale or letting of any premises or for the purposes of a
planning or other application in respect of any premises.

 

5.     The rights of
light, air, support, protection and shelter and all other easements and rights
now or hereafter belonging to or enjoyed by other parts of the Estate or by the
Adjoining Property;

 

6.             The air space over and the
ground below the Demised Premises;

 

31

 

7.     Full right and
liberty at any time hereafter to raise the height of, or make any alterations
or additions or execute any other works 
to any buildings on the Adjoining Property, or to erect any new
buildings of any height on the Adjoining Property in such a manner as the
Landlord or the person exercising the right shall think fit notwithstanding the
fact that the same may obstruct, affect or interfere with the amenity of, or
access to, the Demised Premises or the passage of light and air to the Demised Premises
but not so that the Tenant’s use and occupation thereof is materially affected;

 

8.     The right,
subject to recompensing the Tenant for any damage caused thereby, to build on
or into any boundary or party wall of the Demised Premises and, after giving
not less than seven days prior written notice, to enter the Demised Premises to
place and lay in, under or upon the same such footings for any intended party
wall or party structure with the foundations therefore as the Landlord shall
reasonably think necessary and for such purpose to excavate the Demised
Premises along the line of the junction between the Demised Premises and the
other parts of the Estate or the Adjoining Property and also to keep and
maintain the said footings and foundations;

 

9.     The right to
enter the Demised Premises (in times of emergency or during fire-drills) for
the purpose of obtaining access to, or using, any of the fire escapes or routes
of escape in the Demised Premises whether or not in existence at the date
hereof.

 

8      FIFTH
SCHEDULE 

(Rent Reviews)

 

1.             Definition

 

In
this Schedule, the following expressions shall have the following meanings:

 

“Base
Rate” means the annual rate of interest for the time being chargeable under
section 22 of the Courts Act, 1981.

 

“the
Institute” means the Irish Auctioneers and Valuers Institute;

 

“the
Law Society” means the Law Society of Ireland;

 

“Review
Date” means each of the first day of the sixth, the eleventh, the
sixteenth,[the twenty-first, the twenty-sixth and the thirty-first] year of the
Term and any additional date notified under clause 7 of this Fifth Schedule and
“Relevant Review Date” shall be construed accordingly;

 

“the
Reviewed Rent” means the rent agreed or determined in accordance with the
provisions of this Schedule;

 

“the
Society” means the Society of Chartered Surveyors;

 

2.             Upwards
only rent review

 

The
rent first reserved by this Lease shall be reviewed at each Review Date in
accordance with the provisions of this Schedule and, from and including each
Review Date, the rent shall equal the higher of either the rent contractually
payable immediately before the Relevant Review Date 

 

32

 

or
the open market rent on the Relevant Review Date, as agreed or determined
pursuant to the provisions of this Schedule.

 

3.             Agreement
or determination of the reviewed rent

 

3.1           The Reviewed Rent may be agreed at any time between
the Landlord and the Tenant or, in the absence of agreement, be determined not
earlier than the Relevant Review Date by an Arbitrator or Independent  Valuer to be nominated, in the absence of
agreement between the parties, upon the application (made not more than two
calendar months before or at any time after the Review Date) of the Landlord
(or if the Landlord fails to make such application within twenty-eight days of
being requested in writing so to do by the Tenant, then on the application of
the Tenant) by either the President of the Law Society, or the President of the
Institute or the President of the Society at the discretion of the party
entitled to make the application;

 

3.2           The Landlord may direct whether the nominee is to
act as an Arbitrator or Independent Valuer

 

3.2           In the event of the President or other Officer
endowed with the functions of the said President of the Law Society or the
Institute or the Society, being unable or unwilling to make the nomination
therein mentioned the same may be made by the next senior Officer of the Law
Society or the Institute or the Society who shall be so able and willing.

 

4.             The
Arbitrator

 

4.1           All arbitrations hereunder shall be conducted in
accordance with the provisions set forth in the Arbitration Act, 1954–1980.

 

4.2           If the Arbitrator relinquishes his appointment or
dies or if it becomes apparent that for any reason he is unable or has become
unfit or unsuited (whether because of bias or otherwise) to complete his duties
or if he is removed from office by Court Order, a substitute may be nominated
in his place and in relation to any such nomination the procedures hereinbefore
set forth apply as though the substitution were a nomination de novo, which
said procedures may be repeated as many times as may be necessary.

 

5.             The
Procedure where Independent Valuer appointed

 

5.1           Any independent valuer appointed pursuant to Clause
3.1 in relation to any matter so to be determined by him shall:

 

5.1.1        Give notice of his
nomination to the Landlord and the Tenant.

 

5.1.2        Afford to each of the parties concerned a reasonable
opportunity of stating (whether in writing or otherwise as may be decided by
him and within such time as he may stipulate in that behalf) reasons in support
of such contentions as each party may wish to make relative to the matter or
matters under consideration.

 

5.1.3        Act as an expert and not as an arbitrator and so
that his determination or determinations shall be final and conclusive between
the parties.

 

33

 

5.1.4        Be entitled to seek and pay for advice on any matter
which he reasonably considers pertinent to the reference or to his
determination thereof.

 

5.1.5        Be empowered to fix his reasonable fees in relation
to any such reference and determination and matters incidental thereto, which
said fees and any reasonable expenses incurred by the independent valuer in or
about the said reference and determination shall be shared equally between the
Landlord and the Tenant.

 

5.1.6        Give notice in writing of his determination to the
Landlord and the Tenant within such time as may be stipulated by the terms of
his appointment or in the event of there being no such stipulation within six
calendar months of the acceptance by him of the nomination to act in the matter
PROVIDED ALWAYS that the independent valuer may defer the giving of such notice
until such time as his fees and expenses as aforesaid shall have been
discharged.

 

5.2           Either party shall be at liberty to pay the entire
of the fees and expenses as aforesaid of the independent valuer in which event
the parties so paying shall be entitled to be reimbursed by and to recover from
the other on demand any proportion so paid on behalf of such other.

 

5.3           If an independent valuer in relation to any matter
for determination by him shall fail to complete such determination and give
notice thereof within such time as may be relevant or if he shall relinquish
his appointment or die or if it shall become apparent that for any reason he
shall be unable or shall have become unfit or unsuited (whether because of bias
or otherwise) to complete the duties of his nomination a substitute may be
nominated in his place and in relation to any such nomination the procedures
hereinbefore set forth shall be deemed to apply as though the substitution were
a nomination de novo which said procedures may be repeated as many times as may
be necessary.

 

6.             Determination
by Arbitrator or Independent Valuer

 

The
Reviewed Rent to be determined, by the Arbitrator or Independent Valuer shall
be such as in his opinion represents at the Review Date the full open market
yearly rent for the Demised Premises let as a whole without fine or premium:

 

A.            ON THE BASIS of
a letting with vacant possession thereof by a willing landlord to a willing
tenant for a term (commencing on the Review Date) equal to the greater of
fifteen years or the residue then unexpired of the Term and subject to the
provisions of this lease (other than as to the amount of the Initial Rent but
including such of said provisions as pertain to the review of rent);

 

B.            ON THE ASSUMPTIONS that

 

(i)            at and until the Review Date all the covenants on
the part of the Tenant and the conditions contained in this Lease have been
fully performed and observed;

 

(ii)           in the event of the Demised Premises having been
damaged or destroyed  and not having been
fully repaired, reinstated or rebuilt (as the case may be) such damage or
destruction had not occurred; And

 

34

 

C.            HAVING REGARD
to other open market rental values current at the Review Date in so far as the
Arbitrator Independent Valuer may deem same to be pertinent to the
determination;

 

D.            BUT DISREGARDING any effect
on letting value of:-

 

(a)           the fact that the Tenant is or has been in
occupation of the Demised Premises or any part thereof;

 

(b)           the goodwill which has attached to the Demised
Premises by reason of the business carried on thereat;

 

(c)           The area known as the service/utilities building as
marked on the map attached hereto is excluded for the purposes of rent review.

 

(d)           Any effect the break option period may have on the
value of the property.

 

(e)           Any effect the absence of a Guarantee may have on
the value of the property;

 

(f)            Any works executed by and at the expense of the
Tenant in, on, to or in respect of the Demised Premises other than required
works PROVIDED that in the interpretation of this sub-paragraph (c):-

 

the
expression “the Tenant” shall extend to and include the Tenant  or any
predecessor in title of the Tenant or any party lawfully occupying the Demised
Premises or any part thereof under the Tenant 

and

the
expression “required works” mean works executed by the Tenant in pursuance of
an obligation imposed on the Tenant (i) by this Lease or by any Lease of
which this Lease is a renewal (other than works which may be required pursuant
to clause 4.17) OR (ii) by an Agreement for the granting of this Lease or
of any Lease of which this Lease is a renewal or by virtue of any licence or
deed of variation relating to the Demised Premises.

 

7.             Interim
payments pending determination

 

7.1           If the reviewed rent in respect of any period (“the
Current Period”) is not ascertained on or before the Review Date referable
thereto, rent shall continue to be payable up to the Quarterly Gale Day next
succeeding the ascertainment of the reviewed rent at the rate payable during
the preceding period AND within seven days of such ascertainment the Tenant
shall pay to the Landlord the appropriate installment of the reviewed rent
together with any shortfall between (i) the aggregate of rents actually
paid for any part of the Current Period and (ii) rent at the rate of the
reviewed rent attributable to the interval between that Review Date and such
Quarterly Gale Day and together also with interest at the Base Rate on said
shortfall, such interest to be computed on a day to day basis.

 

7.2           For the purpose of this paragraph the reviewed rent
shall be deemed to have been ascertained on the date when the same shall have
been agreed between the parties or, as the case may be, on the date of the
notification to the Tenant of the determination of the Arbitrator or Independent
Valuer.

 

35

 

8.             Rent Restrictions

 

If
at a Review Date the Landlord’s right to collect, review or increase the rent
as from that Review Date in accordance with this Lease is restricted or
modified by law, then when such restriction or modification is removed, relaxed
or modified, the Landlord may, by giving not less than seven days’ notice in
writing to the Tenant, prescribe as an additional Review Date the date of
expiration of such notice and the rent payable from such additional Review Date
shall be ascertained in accordance with this Schedule.

 

9.             Memoranda
of reviewed rent

 

As
soon as the amount of any reviewed rent has been agreed or determined,
memoranda thereof shall be prepared by the Landlord or its solicitors and
thereupon shall be signed by or on behalf of the Tenant and the Landlord and
the Tenant shall be responsible for and shall pay to the Landlord the stamp
duty (if any) payable on such memoranda and any counterparts thereof, but the parties
shall each bear their own costs in respect thereof.

 

10.           Time not of the essence

 

For
the purpose of this Schedule, time is not of the essence

 

SIXTH
SCHEDULE 

(Service
Charge Expenditure)

 

1.             Repairs
and maintenance

 

Repairing,
maintaining, decorating and (where appropriate) cleaning, washing down,
lighting, servicing and (as and when necessary) altering, replacing, renewing
(where beyond economic repair), rebuilding and reinstating the Common Parts;

 

2.             Plant

 

Providing,
maintaining, repairing, operating, inspecting, servicing, overhauling,
cleaning, lighting and (as and when necessary) renewing or replacing all plant
within the Retained Parts from time to time 
and all fuel and electricity for the same and any necessary maintenance
contracts and insurance in respect thereof.

 

3.             Security
and emergency systems

 

Providing,
maintaining, repairing, operating, inspecting, servicing, overhauling, cleaning
and (as and when necessary) renewing or replacing all security and emergency
systems for the Estate, including, but not limited to, alarm systems, closed
circuit television systems, generators, emergency lighting, fire detection and
prevention systems, any fire escapes for the Buildings and all fire fighting
and fire prevention equipment and appliances (other than those for which a
tenant is responsible)and any traffic barriers, car park and traffic control
and security systems.

 

36

 

4.             Staff

 

The
provision of staff (including such direct or indirect labour as the Landlord
deems appropriate) for the day-to-day running of the installations and plant
and the provision of the other services to the Estate and for the general
management, operation and security of the Estate and all other incidental
expenditure, including, but not limited to:

 

4.1           insurance, health, pension, welfare, severance and
other payments, contributions and premiums

 

4.2           the provision of 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, including any residential
accommodation for staff employed in the Estate and all rates, gas and electricity
charges in respect thereof and any actual or notional rent for such
accommodation.

 

5.             Signs
etc

 

Providing,
maintaining and renewing name boards and signs at the main entrance   and any other parts of the Estate and all
directional signs and fire regulation notices and any flags, flag poles and
television and radio aerials.

 

6.             Refuse

 

Providing
and maintaining any dustbins or other receptacles for refuse for the Retained
Parts and the cost of collecting, storing and disposing of refuse.

 

7.             Landscaping

 

Providing
and maintaining floodlighting (if any) 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;

 

8.2           interest, commission and fees in respect of any
moneys borrowed to finance the provision of services and any of the items
referred to in this Schedule;

 

8.3           enforcing the covenants in any of the other leases
of the Estate for the general benefit of the tenants thereof as determined by
the Landlord.

 

9.             Insurance

 

9.1           periodic valuations of the
Estate for insurance purposes;

 

9.2           works required to the Estate in order to satisfy the
requirements and/or recommendations of the insurers of the Estate;

 

37

 

9.3           property owner’s liability, third party liability
and employer’s liability and such other insurances as the Landlord may, in its
absolute discretion from time to time, determine;

 

9.4           any amount which may be deducted or disallowed by
the insurers pursuant to any excess provision in the insurance policy upon
settlement of any claim by the Landlord.

 

10.           Common facilities

 

Making,
laying, repairing, maintaining, rebuilding, decorating, cleansing and lighting,
as the case may be, 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
Estate in common with any Adjoining Property.

 

11.           Outgoings

 

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

 

12.           Statutory requirements

 

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

 

13.           Representations

 

Taking
any steps deemed desirable or expedient by the Landlord for complying with,
making representations against, or otherwise contesting the incidence of the
provisions of any statute concerning planning, public health, highways,
streets, drainage and all other matters relating or alleged to relate to the
Estate or any part of it for which any tenant is not directly responsible.

 

14.           Management

 

14.1         The proper and
reasonable fees, costs, charges, expenses and disbursements (including any VAT
payable thereon) of the Landlord, the Surveyor and/or the Accountant and any
other person employed or retained by the Landlord for or in connection with
surveying and accounting functions, the collection of the rents,(including all
costs and expenses incurred in the enforcement of same), the performance of the
services and any other duties in and about the Estate or any part of it
relating to the general management, administration, security, maintenance,
protection and cleanliness of the Estate;

 

14.2         The proper and
reasonable fees and expense (including any VAT payable thereon) of the Landlord
in connection with the management of the Estate and any of the functions and
duties referred to in paragraph 14.1 that may be undertaken by or on behalf of
the Landlord, such fees and expenses to 

 

38

 

include
overheads and profits commensurate with the current market practice of property
companies providing management services.

 

15.           Value Added Tax

 

Value
Added Tax at the rate for the time being in force chargeable in respect of any
item of expenditure referred to in this Schedule to the extent not otherwise
recoverable by the Landlord.

 

16.           Generally

 

Any
vouched costs and expenses (not referred to above) which the Landlord may incur
in providing such other services for the commercial benefit of the Estate and
in carrying out such other works as the Landlord, in its absolute discretion,
may deem desirable or necessary for the commercial benefit of the Estate or any
part of it or the tenants or occupiers thereof, or for securing or enhancing
any amenity of or within the Estate, or in the interests of good estate
management.

 

SEVENTH SCHEDULE

(Schedule of Condition)

 

39

 

	
   

  	
  EIGHTH
  SCHEDULE

  	
   

  
	
   

  	
  (Head
  Leases)

  	
   

  

 

1.     Lease dated 13th November, 1991 between Industrial Development
Authority of the One Part and General Semiconductor Ireland Limited.

 

2.     Lease dated 6th August, 1991 between Industrial Development
Authority of the One Part and General Semiconductor Ireland Limited.

 

3.     Lease dated 30th April, 2002 between Industrial Development
Authority of the One Part and General Semiconductor Ireland Limited  

 

40

 

	
  Signed
  Sealed and Delivered

  	
   

  	
   

  
	
  By
  the LANDLORD

  	
   

  	
   

  
	
  in
  the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Grattan Roberts

  	
   

  	
  /s/
  Seamus Geaney

  
	
  Solicitor

  	
   

  	
   

  
	
  Cork.

  	
   

  	
   

  

 

 

PRESENT
when the Common Seal

of
the TENANT

was
affixed hereto:

 

	
  /s/
  Siolan Lynch

  	
   

  	
  /s/
  Michael J. Doty

  
	
  Solicitor

  	
   

  	
  Director

  
	
  Cork.

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Eileen Coughlam

  
	
   

  	
   

  	
  Director/

  
	
   

  	
   

  	
  Secretary

  

 

41

 

LANDLORD:  SEAMUS GEANEY

 

TENANT:

TORNIER ORTHOPEDICS IRELAND LIMITED

 

GUARANTOR:

 

 

LEASE

 

of -

Industrial Building at Hartnett’s Cross

Macroom, Co. Cork     -

 

 

Ahern Roberts O’Rourke Williams & Partners

Solicitors

The Old Rectory

Carrigaline

Co. Cork

Ref: GR/90496

 

42Promissory Note, w/o interest

Exhibit 10.3

DEMAND PROMISSORY NOTE

FOR VALUE RECEIVED TEXADA VENTURES INC. unconditionally promises to pay to or to the order of IFG SERVICES INC. on demand at Spokane Valley, WA the sum of $140,000.00 (One Hundred and Forty Thousand Dollars) in US Funds, bearing 5% interest.

The principal of this Promissory Note shall be paid in US dollars without set-off or counterclaim.

Texada Ventures Inc. waives presentment, protest and notice of any kind in the enforcement of this Promissory Note.

Made at Spokane Valley, WA this 27th day of October, 2008.

Texada Ventures Inc.

11616 East Montgomery Dr, Suite #54

Spokane Valley, WA  99206

Per: ____________________________ 

(Authorized Signing Officer)

IFG Services Inc.

Per: _____________________________

(Authorized Signing Officer)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]