Document:

EXHIBIT 10.5 TO INSIGNIA SYSTEMS, INC. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2010

 

Exhibit 10.5

 

AMENDED CHANGE IN
CONTROL SEVERANCE

AGREEMENT

 

AGREEMENT made as of May 26, 2010 by
and between Insignia Systems, Inc., a Minnesota corporation (the “Company”),
and A. Thomas Lucas (the “Executive”).

 

WHEREAS, the
Company, as a publicly held corporation, recognizes the possibility of a change
in control of the Company, and that such possibility and the uncertainty and
questions which it may raise could result in Executive leaving the Company or
in distraction of Executive in the performance of Executive’s duties to the
detriment of the Company and its shareholders; and

 

WHEREAS, it is in the best interests of the Company
and its shareholders to encourage the availability of Executive’s services to
parties who may in the future acquire control of the Company and to provide an
incentive for Executive to remain with the Company during any period of
uncertainty leading up to a change in control;

 

WHEREAS, based
on the foregoing, the Company wishes to provide that, in the event of a change
in control of the Company, Executive will receive certain benefits if Executive’s
employment by the Company ceases for certain reasons within a specified period
following the change in control;

 

NOW, THEREFORE, in consideration of
the foregoing and the provisions of this Agreement, the parties hereto agree as
follows:

 

1.                  
General Provisions. This Company shall pay Executive a
lump sum severance payment if Executive ceases to be employed by the Company
within two years following a Change in Control (as defined below) for certain
reasons specified in this Agreement. Nothing in this Agreement alters the “at
will” nature of Executive’s employment by the Company. This means that either
before or after a Change in Control, either the Company or the Executive may
terminate Executive’s employment by the Company, either with or without cause,
for any reason or no reason. This Agreement relates only to whether Executive
shall be entitled to certain severance payments following cessation of
employment. No right to severance payments shall arise under this Agreement
unless and until there occurs a Change in Control.

 

2.                  
Definition of Change in Control. For purposes of this
Agreement, a “Change in Control” shall be considered to occur if any of the
following occurs after the date of this Agreement:

 

	
  (a)           

  	
  the closing of the sale of all
  or substantially all of the assets of the Company;

  
	
   

  	
   

  
	
  (b)

  	
  the closing of a merger,
  consolidation or corporate reorganization of the Company which results in the
  stockholders of the Company immediately prior to such event owning less than
  50% of the combined voting power of the Company’s capital stock immediately
  following such event;

  
	
   

  	
   

  
	
  (c)

  	
  the acquisition by any person
  (or persons who would be considered a group under the federal securities
  laws) who as of the date of this Agreement own less than 25% of the voting
  power of the Company’s outstanding voting securities, of beneficial ownership
  of securities representing 40% or more of the combined voting power or the
  Company’s then outstanding securities; or

  
	
   

  	
   

  
	
  (d)

  	
  the election to the Company’s
  board of directors of persons who constitute a majority of the board of
  directors and who were not nominated for election by the board of directors
  as part of a management slate.

  

 

 

 

 

3.                  
Amount of Severance Payment. If a Change in Control occurs
after the date of this Agreement and Executive subsequently ceases to be
employed by the Company prior to the second anniversary of the Change in
Control, then the Company shall pay Executive a lump sum severance payment equal
to twenty-four (24) months of Executive’s base salary which was in effect
immediately prior to the Change in Control. The Company shall be entitled to
deduct from the lump sum severance payment any amounts which the Company is
required by law to withhold from such a payment.

 

                Payment
due under this Agreement shall be made on the 60th day after
Executive’s termination of employment, except that if Executive is then a “key
employee” of the Company, as defined in Section 409A of the Internal Revenue
Code, payment shall be made on the date which is six months after termination
of employment, or to his heirs upon his death if earlier; provided, however,
that no payment shall be made unless Executive has first delivered to the
Company the Release described in Section 11, and the Release has not been
rescinded during any applicable rescission period.

 

4.                  
Circumstances in Which Severance Shall Not Be Paid.
Notwithstanding the provisions of Section 3 above, the Company shall not be
obligated to make any lump sum severance payment under this Agreement if,
following a Change in Control, Executive ceased to be employed by the Company
due to:

 

	
  (a)           

  	
  Executive’s death or
  disability;

  
	
   

  	
   

  
	
  (b)

  	
  termination of Executive by the
  Company for Cause (as defined below); or

  
	
   

  	
   

  
	
  (c)

  	
  resignation by Executive for
  any reason other than a Good Reason (as defined below), including retirement.

  

 

For purposes of this Section 4, the following defined terms
have the meanings indicated:

 

“Cause” means termination by the
Company of Executive’s employment due to:

 

(1)                
conviction of a felony;

 

(2)                
the willful and continued failure of Executive to perform his essential
duties; or

 

(3)                
gross misconduct which is materially injurious to the Company;

 

provided, however, that
the matters referred to in clause (2) or (3) shall not be deemed to constitute “Cause”
unless the Company has first given Executive written notice specifying the
conduct by Executive that constitutes such failure or gross misconduct and
Executive has failed to remedy the same to the reasonable satisfaction of the
Company’s Board of Directors.

 

 

2

 

 

 

“Good Reason” shall mean any of the following, unless
Executive gives his or her prior written consent:

 

	
  (1)           

  	
  the assignment to Executive of any duties inconsistent
  with Executive’s status or position with the Company, or a substantial
  reduction in the nature or status of Executive’s responsibilities from those
  in effect immediately prior to the Change in Control;

  
	
   

  	
   

  
	
  (2)

  	
  a reduction by the Company in Executive’s annual base
  salary in effect immediately prior to the Change in Control;

  
	
   

  	
   

  
	
  (3)

  	
  the relocation of the Company’s principal executive
  offices to a location more than fifty miles from Minneapolis, Minnesota or
  the Company requiring Executive to be based anywhere other than the Company’s
  principal executive offices, except for required travel on the Company’s
  business to an extent substantially consistent with Executive’s prior
  business travel obligations;

  
	
   

  	
   

  
	
  (4)

  	
  the failure by the Company to continue to provide
  Executive with benefits at least as favorable to those enjoyed by Executive
  under any of the Company’s pension, life insurance, medical, health and
  accident, disability, deferred compensation, incentive awards, incentive
  stock options, or savings plans in which Executive was participating at the
  time of the Change in Control, the taking of any action by the Company which
  would directly or indirectly materially reduce any of such benefits or
  deprive Executive of any material fringe benefit enjoyed at the time of the
  Change in Control, or the failure by the Company to provide Executive with
  the number of paid vacation days to which Executive is entitled at the time
  of the Change in Control, provided, however, that the Company may amend any
  such plan or programs as long as such amendments do not reduce any benefits
  to which Executive would be entitled upon termination; or

  
	
   

  	
   

  
	
  (5)

  	
  any termination of Executive’s employment which is not
  made pursuant to a Notice of Termination satisfying the requirements in
  Section 5 below.

  

 

5.                  
Notice of Termination. Any termination of Executive’s
employment by the Company or by Executive shall be communicated by written
Notice of Termination to the other party hereto in accordance with the notice
provisions of Section 6. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which indicates the specific facts and
circumstances claimed to provide the basis for termination.

 

6.                  
Method of Giving Notice. All notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered or certified mail, return receipt requested, postage pre-paid,
addressed to the last known residence address of the Executive, or in the case
of the Company, to its principal office to the attention of each of the then
directors of the Company with a copy to its Secretary, or to such other address
as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

 

7.                  
Miscellaneous. No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by the parties. No waiver by either party
thereto at any time of any breach by the other party to this Agreement, or of
compliance with any condition or provision of this Agreement to be performed by
such other party, shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or similar time. No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement. This Agreement shall be governed by the laws of
the State of Minnesota. This Agreement supersedes all prior agreements on this
subject matter.

 

3

 

 

 

8.                   Arbitration of Disputes. Any and all disputes between the parties relating to this Agreement or any alleged breach of this Agreement shall be resolved by binding arbitration held in the City of Minneapolis pursuant to the Commercial Arbitration Rules of the American Arbitration Association before a single arbitrator. In the event that Executive is determined by the arbitrator to be the prevailing party in such an arbitration, the arbitrator shall award Executive, as an additional element of damages, his or her attorneys’ fees and legal expenses actually incurred in the enforcement of this Agreement and in the arbitration proceeding. Judgment on the arbitration award may be entered by any court having jurisdiction.

 

9.                   Successors. This Agreement shall be binding upon and inure to the benefit of the respective heirs, personal representatives, successors and assigns of the parties hereto.

 

10.                Exclusive Benefits. The benefits provided by this Agreement are in lieu of all other severance, change in control, or similar benefits payable to Executive due to termination following a Change in Control.

 

11.                Release. As a condition to receiving any benefits under this Agreement, Executive shall be required to deliver a standard release to the Company releasing the Company and its shareholders, directors, officers, employees, agents and affiliates from any and all claims relating to Executive’s employment and termination of employment.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	
EXECUTIVE:

	
 

	
INSIGNIA SYSTEMS, INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
/s/ A. Thomas Lucas

	
 

	
By 

	
/ s/ Scott Drill

	
A. Thomas Lucas

	
 

	
 

	
 

	
 

	
 

	
Its 

	
CEO

 

 

 

 

 

 

4EXHIBIT 10.1 TO IMAGE SENSING SYSTEMS, INC. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2010

Exhibit 10.1

DATED 1 February 2010

	
  

 	
  

 
	
 (1)

 	
 NORTRUST
 NOMINEES LIMITED

 
	
  

 	
  

 
	
 (2)

 	
 CITYSYNC
 LIMITED

 
	
  

 	
  

 
	
  

 
	
  

 	
  

 
	
 LEASE

 
	
  

 	
  

 
	
 of Falcon
 House Unit J City Park Watchmead Welwyn Garden City Hertfordshire

 
	
  

 

	
  

 	
  

 
	
   From:

 	
 2010  

 
	
  

 	
  

 
	
   Term:

 	
 10 years   

 
	
  

 	
  

 
	
   Expires:

 	
 2020   

 
	
  

 	
  

 
	
   Initial
 rent:

 	
 £50,000 per annum   

 

	
  

 	
  

 	
  

 
	
  

 	
 B O O D L E

 	
  

 
	
  

 	
 H A T F I E L D

 	
  

 

89 New Bond Street • London W1S 1DA

Telephone: 020 7629 7411 • Fax: 020 7629 2621

DX 53 Chancery Lane

LAND REGISTRY PRESCRIBED CLAUSES

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR1. Date of lease

 	
  

 	
 1 February 2010

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR2. Title number(s)

 	
  

 	
 LR2.1 Landlord’s title number(s) 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 HD243902 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 LR2.2 Other title numbers 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR3. Parties to this lease

 	
  

 	
 Landlord: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 NORTRUST NOMINEES LIMITED (Company Registration Number 955951) whose
 registered office is at 50 Bank Street Canary Wharf London E14 5NT 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Tenant: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 CITYSYNC LIMITED (Company Registration Number 3791347) whose
 registered office is at 124a Great North Road Hatfield Hertfordshire AL9 5JN 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Other parties: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR4. Property

 	
  

 	
 As defined as the “Premises” in Schedule 1 to this lease. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 In the case of a conflict between this
 clause and the remainder of this lease then, for the purposes of
 registration, this clause shall prevail. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR5. Prescribed statements etc.

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR6. Term for which the Property is leased

 	
  

 	
 The term as
 specified in this lease at Clause 2. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR7. Premium

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR8. Prohibitions or restrictions on disposing of this lease

 	
  

 	
 This lease
 contains a provision that prohibits or restricts dispositions. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 

L3218071:4 015000.0715 / YLK

Updated: 08 January 2010

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR9. Rights of acquisition etc.

 	
  

 	
 LR9.1 Tenant’s contractual rights to renew
 this lease, to acquire the reversion or another lease of the Property, or to
 acquire an interest in other land. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 None. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 None. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR10. Restrictive covenants given in this lease by the Landlord in
 respect of land other than the Property

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR11. Easements

 	
  

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

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 The
 easements described in Schedule 2 to this lease. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

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

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 The
 easements described in Schedule 3 to this lease. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR12. Estate rentcharge burdening the Property

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR13. Application for standard form of restriction

 	
  

 	
 None. 

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LR14. Declaration of trust where there is more than one person
 comprising the Tenant

 	
  

 	
 Not
 applicable. 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	

 	

 	

 	

 	

 

L3218071:4 015000.0715 / YLK

Updated: 08/01/2010

THIS
LEASE made the 1st
day of February 2010

BETWEEN:

	
  

 	
  

 
	
 (1)

 	
 NORTRUST NOMINEES LIMITED (Company Number 955951) whose registered
 office is at 50 Bank Street Canary Wharf London E14 5NT (“the Landlord”) and

 
	
  

 	
  

 
	
 (2)

 	
 CITYSYNC LIMITED (Company Registration Number 3791347)
 whose registered office is at Turpin Court 124a Great North Road Hatfield
 Hertfordshire AL9 5JN (“the Tenant”)

 

WITNESSES as follows:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 INTERPRETATION

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 In This Lease the headings
 and table of contents shall be ignored in its construction and unless the
 context otherwise requires:

 
	
  

 	
  

 
	
  

 	
 Defined terms

 
	
  

 	
  

 
	
  

 	
 1.1

 	
 The following expressions
 have the meanings set against them:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Basic Rent”

 	
 the rent payable under
 Clause 2.1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Common Parts”

 	
 those parts of the Estate
 which are not from time to time let or intended to be let to any occupational
 tenants and any other areas or facilities used in common or in connection
 with or serving the occupiers of the Estate

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Conduits”

 	
 pipes sewers drains
 cisterns ducts gutters watercourses wires cables channels flues and other
 conducting media and any other ancillary apparatus

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Contractual Expiry Date”

 	
 the date on which the
 contractual term created by Clause 2 will expire if the Term does not end
 earlier

 

L3218071:4 015000.0715 / YLK
Updated: 08 January 2010

1

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Estate”

 	
 the whole and each part of
the land and premises edged green on the attached plan being the land
registered at H M Land Registry under title number HD243902 TOGETHER WITH
(where the context so admits) any additional property in which during the
Term the Landlord has a freehold or leasehold interest and which has been
constructed or acquired to form part of the Estate 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Full Cost of
Reinstatement”

 	
 such amount as the
 Landlord from time to time determines as the cost of rebuilding the relevant
 part or parts of the Estate after destruction, by an Insured Risk (including
 the cost of shoring-up demolition site clearance any works that may be
 required by statute fees payable on any applications for planning permission
 or other consents professional fees and other incidental expenses) when the
 rebuilding occurs including any increases in building costs up to the time of
 completion

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Insurance Rent”

 	
 such sums as shall be a
 fair proportion (as determined from time to time by the Landlord save in the
 case of Loss of Rent when the proportion shall be 100%) of the amount which
 the Landlord pays by way of gross premium (or if the Premises or the Estate
 are insured with other property where applicable a fair proportion of such
 sums payable under the relevant insurance policy determined from time to time
 by the Landlord):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 for effecting insurance
 under Clause 5.1 and

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

2

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 in respect of the
 Landlord’s Liability Insurance 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 TOGETHER WITH the said proportion of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 all expenses incurred by the
 Landlord in connection with assessing the Full Cost of Reinstatement of the
 Estate and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 any excesses under any
 policy of insurance effected by the Landlord under Clause 5.1 in respect of
 any Insured Damage that occurs

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Insured Damage”

 	
 damage or destruction to
 any part of the Estate which is caused by a risk against which and to the
 extent that at the time of the damage or destruction the Landlord has or
 should have effected insurance of that part of the Estate under Clause 5.1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Insured Risks”

 	
 fire lightning storm
 explosion impact aircraft and other aerial devices and articles dropped
 therefrom riot malicious damage civil commotion earthquake (fire and shock)
 bursting or overflowing of water tanks apparatus or pipes (including any of
 the foregoing where caused by acts of terrorism) for so long as each such
 risk either:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 remains insurable with
 insurers of repute at reasonable commercial rates or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 is actually insured by the
 Landlord in its discretion for the purposes of this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 such other risks of damage
 or destruction against which the Landlord from time to time decides to effect
 insurance for the purposes of

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

3

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 this Lease (if any)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Landlord’s Liability

 Insurance”

 	
 insurance against all liability
 of the Landlord to third parties arising out of or in connection with the
 Estate or any matter relating to the Estate on such terms and in such amount
 as the Landlord from time to time determines

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Loss of Rent”

 	
 the amount of the Basic
 Rent and Service Charge for the time being payable during a period of three
 years (or for so long as the Landlord so elects during such longer period as
 the Landlord from time to time determines necessary in order to rebuild the
 Estate) including:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (1)

 	
 any increase in the Basic
 Rent during such period which the Landlord estimates will occur as a result
 of any review due under Clause 8 and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (2)

 	
 in respect any part of the
 period after Contractual Expiry Date the Landlord’s estimate of the open market
 rent for the Premises (as defined in Clause 8) as at the Contractual Expiry
 Date

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Order”

 	
 the Regulatory Reform
 (Business Tenancies) (England and Wales) Order 2003

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Outgoings”

 	
 (in relation to the Estate
 the Common Parts the Premises or other property as the context requires) all
 present and future rates charges taxes assessments impositions and outgoings
 of any kind (including without limiting the foregoing any which are of a
 capital or non-

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

4

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 recurring nature or wholly
 novel) assessed charged imposed or payable by or on any owner or occupier of
 or on or in respect of the Estate the Common Parts the Premises or other
 property respectively excluding (save for Value Added Tax) any payable by the
 Landlord or any superior landlord occasioned by receipt of the Rents or the
 rents payable under a superior lease or by any dealing with any interest in
 the Premises of the Landlord or any superior landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “the Phase”

 	
 that part of the Estate
 for the purposes of identification only shown edged brown on the plan

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Planning Acts”

 	
 the Town and Country
 Planning Act 1990 the Planning (Listed Buildings and Conservation Areas) Act
 1990 and the Planning (Hazardous Substances) Act 1990 and any other statutes
 relating to town and country planning

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Plant”

 	
 all plant and machinery
 now or hereafter in or serving the Estate including (but without limiting the
 foregoing) any lifts and lift machinery boilers public address system
 internal telephones air conditioning heating and ventilation plant and
 machinery sprinklers and associated Conduits electrical systems fire
 detection and fire prevention systems central or monitoring systems and
 installations and any plant and machinery from time to time installed to
 replace any of the foregoing

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Premises”

 	
 the whole and each part of
 the part of the Estate

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

5

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 known as Unit J more
 particularly described in Schedule 1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Prescribed Rate”

 	
 4 per cent per annum above
 the base rate of HSBC Bank plc or above such other rate of interest as the
 Landlord from time to time reasonably determines

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Quarter Days”

 	
 25 March 24 June 29
 September and 25 December in each year

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Rents”

 	
 the Basic Rent the
 Insurance Rent and the Service Charge

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ‘‘Service Charge”

 	
 the sums payable by the
 Tenant at the times and in the manner set out in Schedule 5

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Services”

 	
 the services set out in
 Part 3 of Schedule 5

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Term”

 	
 the term of years granted
 by Clause 2 with any period of holding-over extension or continuance by statute
 or common law

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “Visitor”

 	
 the Tenant any undertenant
 (however remote) of the whole or any part of the Premises and any person at
 or near the Estate expressly or by implication with the authority of the
 Tenant or any such undertenant

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 “1954 Act”

 	
 the Landlord and Tenant
 Act 1954

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 End of the Term

 
	
  

 	
  

 
	
  

 	
 1.2

 	
 “The last
 year of the Term” and “the end of the Term” mean the last twelve months of
 and the end of the Term however it ends (including by expiry notice
 forfeiture or surrender)

 

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6

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Landlord and Tenant (Covenants) Act

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.3

 	
 The expressions
 “excluded assignment” “authorised guarantee agreement” and “collateral
 agreement” have in relation to this Lease the meanings specified in Sections
 11(1) 16 and 28(1) of the Landlord and Tenant (Covenants) Act 1995

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Construction of obligations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.4

 	
 Obligations by the Tenant:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.4.1

 	
 not to do or omit to do
 anything in relation to the Premises or the Estate include an obligation to
 ensure that it is not done or omitted by (in relation to the Premises) any
 other person and (in relation to other parts of the Estate) any Visitor

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.4.2

 	
 to do anything in
 relation to the Premises or the Estate include an obligation to ensure that
 (in the case of the Premises) all other persons and (in the case of other
 parts of the Estate) all Visitors comply with them

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.5

 	
 References to
 obligations of the Tenant in this Lease include obligations of the Tenant in
 any document entered into pursuant to this Lease and in any collateral
 agreement

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Statutes

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.6

 	
 References to a statute
 or a statutory instrument include any extension amendment or re-enactment for
 the time being in force and any regulations instruments permissions
 directions orders or notices for the time being made or issued under them

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Value Added Tax

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.7

 	
 References to Value
 Added Tax include any similar tax substituted for or levied in addition to it

 

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7

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Indemnities

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.8

 	
 Obligations
 to indemnify the Landlord against a matter are obligations to indemnify the
 Landlord against liabilities actions proceedings damages penalties costs
 expenses claims and demands of whatsoever nature and any fees and expenditure
 incurred arising directly or indirectly from or in connection with that
 matter

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Superior interests

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.9

 	
 References
 to the Landlord include any superior landlord and any chargee of the Landlord
 or of any superior landlord where:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.9.1

 	
 the
 relevant superior lease or charge requires the approval of the superior
 landlord or chargee to a matter and the Landlord’s approval to that matter is
 required under this Lease (although nothing in this Lease shall prevent the
 superior landlord or chargee from withholding its approval if it is entitled
 to do so under the relevant superior lease or charge)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.9.2

 	
 there
 is provision for repayment to the Landlord of any expenses incurred and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.9.3

 	
 there
 is an indemnity in favour of the Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Approvals

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.10

 	
 References
 to the approval or consent of or to a matter being approved by a person are
 to its prior written approval or consent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Vitiation of insurance

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.11

 	
 References
 to insurance being vitiated are to the insurance effected under Clause 5.1
 (and if relevant any other insurance effected by the Landlord against damage
 or destruction to neighbouring property or Landlord’s Liability Insurance or
 other similar insurance) being vitiated and/or payment of the insurance
 monies under such insurance being refused in whole or part by reason of any
 act or omission by any Visitor (whether or not also resulting from an act or
 omission by any other person)

 

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8

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Parties and joint and several obligations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.12

 	
 References to “the
 Landlord” and “the Tenant” include the immediate landlord and tenant for the
 time being under this Lease and (if respectively more than one person) their
 obligations are joint and several

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Cross-references

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.13

 	
 Without further designation references to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.13.1

 	
 numbered Clauses and
 Schedules are to clauses of and schedules to this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.13.2

 	
 a numbered paragraph is
 to that paragraph of the Schedule (or Part of the Schedule) in which the
 reference appears and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.13.3

 	
 a numbered Part is to
 that Part of the Schedule in which the reference appears

 
	
  

 	
  

 	
  

 	
  

 
	
 2.

 	
 TERM RIGHTS & RENTS

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Landlord LEASES the Premises to the
 Tenant

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TOGETHER WITH
 (in common with the Landlord those authorised by it and others with similar
 rights) the rights specified in Schedule 2

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 RESERVING
 to the Landlord and those authorised by it the rights specified in Schedule 3

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SUBJECT
 to all rights and obligations affecting the Premises including (insofar as
 they are subsisting and affect the Premises) the matters specified in
 Schedule 4

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TO HOLD
 to the Tenant from and including the 1st day of February 2010 for a term of ten years 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PAYING to the Landlord:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
 Yearly during the Term (and proportionately for any
 shorter period):

 

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9

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.1.1

 	
 from
 and including the 1 May 2010 up to and including 31 January 2011 the annual
 rent of £50,000 (Fifty thousand pounds) per annum plus VAT

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.1.2

 	
 from
 and including 1 February 2011 to and including 31 January 2012 the annual rent of £75,000 (Seventy-five thousand
 pounds) per annum

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.1.3

 	
 from
 and including 1 February 2012 to
 and including 31 January 2013 the annual rent of £90,000 (Ninety thousand pounds) per annum

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.1.4

 	
 from
 and including 1 February 2013 to and including 31 January 2014 the annual
 rent of £105,000 (One hundred and five thousand pounds) per annum

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.1.5

 	
 from
 and including 1 February 2014 for the remainder of the Term the annual rent
 of £120,000 (One hundred and twenty thousand pounds) plus VAT (subject to
 increase in accordance with Clause 8)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 by
 equal quarterly payments in advance on the Quarter Days the first payment
 (being a proportionate sum) to be made on the date three months from the date
 hereof in respect of the period commencing 1 May 2010 and continuing up to
 and including 24 June 2010.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
 By way of further rent the
 Insurance Rent within 14 days of demand

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.3

 	
 By way of further rent the
 Service Charge

 
	
  

 	
  

 	
  

 	
  

 
	
 3.

 	
 TENANT’S COVENANTS

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The
 Tenant COVENANTS with the Landlord during the Term and thereafter as
 specified as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Rent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
 To pay the Rents:

 

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10

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.1.1

 	
 in accordance with
 Clause 2 without any deduction and not to exercise any right or claim to
 withhold rent or legal or equitable set-off

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.1.2

 	
 (if so requested by the
 Landlord in writing) by banker’s standing order or credit transfer to a bank
 account in the United Kingdom nominated by the Landlord and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.1.3

 	
 (together with the
 other sums due under this Lease) from an account in the name of the Tenant
 maintained with an institution falling within Regulation 8(4) of the Money
 Laundering Regulations 1993 (no longer in force) which means an account held
 with:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 3.1.3.1

 	
 an institution which is
 for the time being authorised by the Bank of England under the Banking Act
 1987 or by the Building Societies Commission under the Building Societies Act
 1986

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 3.1.3.2

 	
 a European authorised
 institution within the meaning of the Banking Coordination (Second Council
 Directive) Regulations 1992 or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 3.1.3.3

 	
 any other institution
 when it is an authorised credit institution (as defined in the said Money
 Laundering Regulations)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Interest on arrears

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
 To pay the Landlord
 interest at the Prescribed Rate from when the rent or other sum was due or
 incurred until actual payment or reimbursement (whether formally demanded or
 not and before and after judgment) on:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.2.1

 	
 any part of the Rents unpaid 14 days after the due
 date

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.2.2

 	
 any other sum due under
 this Lease unpaid 14 days after it is due and

 

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11

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.2.3

 	
 any
 sum reasonably incurred by the Landlord as a result of a failure by the
 Tenant to comply with its obligations in this Lease and not paid within 14
 days of demand

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 PROVIDED
 THAT this
 sub-clause is without prejudice to any other right of the Landlord and Rents
 and other sums shall be deemed unpaid if the Landlord has refused to accept a
 payment so as not to waive a right to forfeit this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Outgoings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
 To pay and indemnify the
 Landlord against:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.3.1

 	
 all
 Outgoings which relate to the Premises and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.3.2

 	
 the
 costs incurred by the Landlord in maintaining repairing and renewing all
 Conduits and Plant which solely serve and are outside the Premises

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Common outgoings

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.4

 	
 To
 pay to the Landlord on demand a fair proportion (to be determined from time
 to time by the Landlord) of any Outgoings which relate to the Estate as a
 whole on its own or with other property or the Premises and other property

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Value Added Tax

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.5

 	
 To
 pay the Landlord as additional rent any Value Added Tax chargeable on any
 payments or other consideration (including the Rents) made or given by the
 Tenant under or in connection with this Lease such Value Added Tax to be
 payable in addition to such payments or other consideration

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.6

 	
 Where
 under this Lease the Tenant agrees to pay the Landlord or any other person
 (including without limitation by way of service charge indemnity or
 reimbursement) a sum calculated by reference to an amount expended by the
 Landlord or another person to pay in addition a sum equal to any Value Added
 Tax on such amount save to the extent (if any) that it will be recoverable by
 the Landlord or other person respectively without (if respectively it has not
 done so) exercising any election to waive exemption from Value Added Tax

 

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12

	
  

 	
  

 	
  

 
	
  

 	
 Gas electricity and other services

 
	
  

 	
  

 	
  

 
	
  

 	
 3.7

 	
 To pay to the suppliers
 all charges for gas electricity and other services consumed or used at or in
 connection with the Premises and all charges for meters and telephones and to
 comply with all regulations and requirements of the supplying authorities
 insofar as they relate to the Premises

 
	
  

 	
  

 	
  

 
	
  

 	
 Repair

 
	
  

 	
  

 	
  

 
	
  

 	
 3.8

 	
 To keep the Premises
 (including the tiles carpeting and other furnishing of the floors) in good and
 substantial repair and condition (including decorative condition) and (when
 necessary) to renew and rebuild the Premises except (subject to the first
 proviso to Clause 5.3) Insured Damage save where the insurance against such
 Insured Damage is vitiated and excepting damage or destruction caused by
 inherent defects PROVIDED THAT the Tenant shall not be required to
 keep the Premises in any better state and condition than they are in (save
 for fair wear and tear) at the commencement of the Term as evidenced by the
 Schedule of Condition annexed hereto

 
	
  

 	
  

 	
  

 
	
  

 	
 3.9

 	
 To carry out as soon as
 possible and complete as soon as practicable any works requested by the
 Landlord under that proviso

 
	
  

 	
  

 	
  

 
	
  

 	
 3.10

 	
 To keep the Premises in
 a clean and tidy condition and clear of all rubbish

 
	
  

 	
  

 	
  

 
	
  

 	
 3.11

 	
 To replace any
 landlord’s fixtures in the Premises which are or become beyond repair with
 other good quality fixtures

 
	
  

 	
  

 	
  

 
	
  

 	
 3.12

 	
 To give written notice
 to the Landlord of any defect or item requiring repair in the Premises or the
 Estate which might give rise to a common law or statutory duty on the
 Landlord in favour of the Tenant or any other person as soon as it comes to
 the attention of the Tenant or those deriving title under it

 
	
  

 	
  

 	
  

 
	
  

 	
 3.13

 	
 To indemnify the
 Landlord against any breach of any such duty

 
	
  

 	
  

 	
  

 
	
  

 	
 To clean windows

 
	
  

 	
  

 	
  

 
	
  

 	
 3.14

 	
 To clean all windows of
 the Premises as often as necessary and at least once in every two months

 

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13

	
  

 	
  

 	
  

 
	
  

 	
 Internal decoration

 
	
  

 	
  

 	
  

 
	
  

 	
 3.15

 	
 In the fifth year of the Term
 and in the last six months of the last year of the Term (but not so that these works are required
 twice in any one period of twelve
 consecutive months) to prepare and paint with at least two coats of high quality paint all parts of the inside of the
 Premises as shall have been previously
 painted

 
	
  

 	
  

 	
  

 
	
  

 	
 External decoration

 
	
  

 	
  

 	
  

 
	
  

 	
 3.16

 	
 In the fifth year of the Term
 and in the last six months of the last year of the Term (but not so that these works are required
 twice in any one period of twelve
 consecutive months) to prepare and paint with at least two coats of high quality paint all parts of the exterior of the
 Premises as shall have been previously painted and as often as is in
 the opinion of the Landlord necessary to
 clean and re-point the external brickwork plasterwork and stonework of the Premises PROVIDED THAT the Tenant shall
 not paint the whole or any part of
 any external brickwork or stonework of the Premises unless such has usually
 been painted before the date of this Lease

 
	
  

 	
  

 	
  

 
	
  

 	
 3.17

 	
 As often as is in the opinion of
 the Landlord necessary to clean and treat in a proper manner and in
 accordance with any instructions issued by the Landlord all other surfaces and fixtures in the Premises
 not required to be painted

 
	
  

 	
  

 	
  

 
	
  

 	
 No change to colours

 
	
  

 	
  

 	
  

 
	
  

 	
 3.18

 	
 Not to change any colours and patterns of the
 decorations of the Premises

 
	
  

 	
  

 	
  

 
	
  

 	
 Standard of works

 
	
  

 	
  

 	
  

 
	
  

 	
 3.19

 	
 To carry out the repairs
 decorations and other works required under this Lease in a good and workmanlike manner and to the
 reasonable satisfaction of the Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 Reinstatement and delivery at end of Term

 
	
  

 	
  

 	
  

 
	
  

 	
 3.20

 	
 Before the end of the Term:

 

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 3.20.1

 	
 (save to the extent that the
 Landlord otherwise directs in writing) to remove any additions or alterations made to the Premises during the Term

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.20.2

 	
 to remove any advertisements or
 signs erected on or near the Premises

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.20.3

 	
 to make good any damage caused
 by such removal and the removal of tenant’s fixtures and chattels

 
	
  

 	
  

 	
  

 
	
  

 	
 3.21

 	
 At the end of the Term to deliver the Premises up in
 repair and in accordance with the Tenant’s
 obligations in this Lease and promptly to apply to the Land Registry to remove any notice of this Lease from
 the Landlord’s title

 
	
  

 	
  

 	
  

 
	
  

 	
 Alienation

 
	
  

 	
  

 	
  

 
	
  

 	
 3.22

 	
 Not to assign charge underlet
 hold on trust for another or otherwise part with or share possession or
 occupation of or suffer any other person to occupy or have an interest in the whole or any part of the
 Premises save by way of an assignment
 charge or underletting of the whole of the Premises satisfying the relevant
 requirements of Schedule 6

 
	
  

 	
  

 	
  

 
	
  

 	
 Enforcement of underlease terms

 
	
  

 	
  

 	
  

 
	
  

 	
 3.23

 	
 In relation to any underlease
 however remote of the whole or any part of the Premises:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.23.1

 	
 not to waive or vary its terms

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.23.2

 	
 to procure that the tenant for
 the time being complies with the covenants given or which it should have
 given to the Landlord pursuant to
 Part 2 of Schedule 6 and in any document entered into by the Tenant
 pursuant to this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.23.3

 	
 to operate properly any
 provisions for the review of rent thereby reserved so as to increase such rent to the maximum extent in accordance
 with its terms

 

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15

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.23.4

 	
 not without the approval of the
 Landlord (such approval not to be unreasonably
 withheld) to agree the yearly rent payable under it at any rent review or renewal nor to agree upon the
 appointment of a person to act as a
 third party determining the rent in default of agreement

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.23.5

 	
 to submit to any court expert
 or arbitrator determining such rent any representations that the Landlord requests and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.23.6

 	
 within 14 days to give notice
 to the Landlord of the details of the determination of every rent review

 
	
  

 	
  

 	
  

 
	
  

 	
 Registration of dealings

 
	
  

 	
  

 	
  

 
	
  

 	
 3.24

 	
 Within 21 days after any
 assignment charge underlease or transmission or other disposition or devolution relating to the
 whole or any part of the Premises or
 any derivative interest in them to give notice of such to the Landlord and to produce to the Landlord a
 certified copy of the relevant document
 (and in the case of an underlease in respect of which the provisions of
 Sections 24 to 28 (inclusive) of the 1954 Act have been excluded a certified
 copy of both the notice served by
 the landlord thereunder and the tenant’s declaration or statutory
 declaration in response pursuant to Section 38A of that Act) and to pay the Landlord’s solicitors’
 reasonable and proper charges for the registration of every such
 document 

 
	
  

 	
  

 	
  

 
	
  

 	
 Alterations

 
	
  

 	
  

 	
  

 
	
  

 	
 3.25

 	
 Not to erect any new buildings
 on the Premises nor to annex the Premises to other premises nor to make any alterations or additions which will
 alter the height elevation or
 architectural appearance of the Premises and not to make any other external or any structural
 alterations or additions to the Premises

 
	
  

 	
  

 	
  

 
	
  

 	
 3.26

 	
 Subject to Clause 3.25 not to make any other alterations or
additions to the Premises without
the Landlord’s approval (such approval not to be unreasonably withheld) nor without having
entered into such obligations as the Landlord
shall require as to their execution and reinstatement PROVIDED THAT no approval shall be required for the
erection of internal demountable 

 

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16

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 partitioning but the Tenant
 shall submit full details to the Landlord before doing so

 
	
  

 	
  

 	
  

 
	
  

 	
 3.27

 	
 Before starting any works of a
 substantial nature to provide if the Landlord so requests adequate security
 in the form of a deposit of money or the provision of a bond as assurance to the Landlord that they
 will be fully and properly completed
 and that any covenants entered into by the Tenant with the Landlord pursuant to Clause 3.26 will be
 complied with

 
	
  

 	
  

 	
  

 
	
  

 	
 Permitted user

 
	
  

 	
  

 	
  

 
	
  

 	
 3.28

 	
 To use the Premises only for a
 use within Class B1 and/or B2 and/or B8 of the Schedule to the Town
 and Country Planning (Use Classes) Order 1987

 
	
  

 	
  

 	
  

 
	
  

 	
 No nuisance

 
	
  

 	
  

 	
  

 
	
  

 	
 3.29

 	
 Not to do on the Premises or
 the Estate anything which in the opinion of the Landlord may become or cause a nuisance
 disturbance damage annoyance or inconvenience
 to the Landlord or its lessees or to the owners or occupiers of neighbouring property

 
	
  

 	
  

 	
  

 
	
  

 	
 No overloading

 
	
  

 	
  

 	
  

 
	
  

 	
 3.30

 	
 Not to do or bring in or on the
 Premises or the Estate anything which may put any weight or impose a strain in excess of that which the Premises or
 the Estate are designed to bear with
 due margin for safety and not to fix any machinery to the walls
 ceilings or roof of the Premises or the Estate

 
	
  

 	
  

 	
  

 
	
  

 	
 Other restrictions

 
	
  

 	
  

 	
  

 
	
  

 	
 3.31

 	
 Not to change the name of the Premises without the
 approval of the Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 3.32

 	
 To keep the entrance ways of and exits from the
 Premises and the buildings on the Premises clear and unobstructed at all
 times and not to park load or unload save in those parts of the Estate from
 time to time designated for such purpose by
 the Landlord and not to cause an obstruction in any part of the Estate

 
	
  

 	
  

 	
  

 
	
  

 	
 3.33

 	
 Not to hold any sale by
 auction on the Premises

 

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17

	
  

 	
  

 	
  

 
	
  

 	
 3.34

 	
 Not to permit any person to
 sleep in the Premises nor to use the Premises or the Estate for any
 residential illegal or immoral purpose

 
	
  

 	
  

 	
  

 
	
  

 	
 3.35

 	
 Not to allow to pass into the
 sewers drains or watercourses serving the Premises or the Estate any noxious or deleterious effluent or other
 substance which may obstruct or damage them and to make good any such
 obstruction or damage caused thereto by any Visitor

 
	
  

 	
  

 	
  

 
	
  

 	
 Contamination

 
	
  

 	
  

 	
  

 
	
  

 	
 3.36

 	
 Not to allow any noxious or
 deleterious effluent or any form of contaminant or pollutant or other substance to seep into or
 otherwise enter the buildings or other structures on the Premises or
 the ground below them

 
	
  

 	
  

 	
  

 
	
  

 	
 Skips

 
	
  

 	
  

 	
  

 
	
  

 	
 3.37

 	
 Not to bring any skips onto
 the Premises or the Estate except with the approval of the Landlord
 and to screen from view to the satisfaction of the Landlord any skips to which the Landlord gives approval and
 not to allow rubbish to be blown
 out of the skips

 
	
  

 	
  

 	
  

 
	
  

 	
 Waste and refuse

 
	
  

 	
  

 	
  

 
	
  

 	
 3.38

 	
 Not to discharge trade effluent
 or waste without the approval of the Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 3.39

 	
 To make proper and adequate
 arrangements for the frequent removal from the Premises of all trade and other waste in accordance with the
 requirements of any competent
 authority and any regulations from time to time made by the Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 Plant and machinery

 
	
  

 	
  

 	
  

 
	
  

 	
 3.40

 	
 Not without the approval of the
 Landlord to erect or install in the Premises or the Estate any engine or machinery or other
 appliance or apparatus of any description
 (other than usual office machinery in the Premises which is not a fixture
 nor audible outside the Premises) and to ensure that any such erected or installed is properly installed and safely
 maintained and not liable to leak or cause
 a fire or explosion

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

18

	
  

 	
  

 	
  

 
	
  

 	
 3.41

 	
 Not to overload the electrical
 wiring or drainage installations and apparatus in or serving the
 Premises or the Estate and to ensure that any in or solely serving the
 Premises comply with the terms conditions and regulations of the relevant authorities

 
	
  

 	
  

 	
  

 
	
  

 	
 3.42

 	
 Not without the approval of the
 Landlord to dismantle adjust alter or otherwise interfere with the
 Plant in the Premises or the Estate other than (in the case of Plant in the Premises only) to operate the
 external switches or controls intended
 for the personal use of the occupant which it serves and not to do anything in the Premises or the Estate whereby
 the working of any part of the Plant
 may be impaired or adversely affected

 
	
  

 	
  

 	
  

 
	
  

 	
 3.43

 	
 To keep all Plant within and exclusively serving the
 Premises in working order and to enter into and maintain comprehensive
 maintenance contracts in forms and with reputable contractors approved by the
 Landlord (such approval not to be
 unreasonably withheld) for the maintenance and repair of all Plant within and
 exclusively serving the Premises and to produce on demand to the Landlord
 the receipt for the current year’s premium and a copy of the relevant contract and of any reports made by the
 contractors and to comply with the recommendations of the contractors

 
	
  

 	
  

 	
  

 
	
  

 	
 Aerials

 
	
  

 	
  

 	
  

 
	
  

 	
 3.44

 	
 Not without the Landlord’s
 consent (not to be unreasonably withheld or delayed) to erect on the exterior of the Premises or the Estate any
 mast wire or aerial radio or
 television mast aerial or dish or any CCTV equipment or any erection
 of any kind whatsoever

 
	
  

 	
  

 	
  

 
	
  

 	
 Signs

 
	
  

 	
  

 	
  

 
	
  

 	
 3.45

 	
 Not to fix or exhibit on the
 exterior of or (if visible from the exterior) the interior of the Premises nor anywhere on the
 Estate any sign placard notice fascia
 board or advertisement other than with the approval of the Landlord (such
 approval not to be unreasonably withheld) signs on the Premises giving the name of the Tenant and occupiers of the
 Premises

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

19

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Preservation of rights and
 boundaries

 
	
  

 	
  

 	
  

 
	
  

 	
 3.46

 	
 Not to obstruct any window or
 light enjoyed by the Premises and to use best endeavours to prevent
 the loss of any right belonging to the Premises

 
	
  

 	
  

 	
  

 
	
  

 	
 3.47

 	
 To prevent any encroachment on
 the Premises and the acquisition of any right over the Premises and to notify the Landlord immediately if an
 encroachment or the acquisition of
 a right is attempted or made

 
	
  

 	
  

 	
  

 
	
  

 	
 Reletting and for sale notices

 
	
  

 	
  

 	
  

 
	
  

 	
 3.48

 	
 To permit the Landlord at any
 time after the date six months before the Contractual Expiry Date in
 the case of re-letting and at any time in the case of sale to fix and retain on any suitable part of the Premises a notice
 for re-letting the Premises or stating that the Premises or the Estate
 are for sale and not to remove or obscure
 such notice and to permit all persons with the authority of the Landlord to view the Premises at reasonable
 hours on prior appointment

 
	
  

 	
  

 	
  

 
	
  

 	
 Rights of entry

 
	
  

 	
  

 	
  

 
	
  

 	
 3.49

 	
 To permit the Landlord and those
 authorised by it to enter the Premises to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.1

 	
 ascertain whether the Tenant
 has complied with its obligations in this
 Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.2

 	
 assess the Full Cost of
 Reinstatement

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.3

 	
 take schedules of fixtures and chattels to be yielded
 up at the end of the Term

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.4

 	
 provide the Services and carry
 out the other matters referred to in Schedule
 6

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.5

 	
 carry out repairs decorations
 alterations or other works to neighbouring property

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.6

 	
 inspect repair renew connect to
 cleanse move relay or construct existing
 or new Conduits or Plant in over or under the Premises serving or to
 serve any neighbouring property

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

20

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.7

 	
 comply with the obligations in any superior lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.8

 	
 comply with its obligations (if
 any) under any statute affecting the Premises
 or the Estate

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.9

 	
 do anything else reasonable
 which cannot otherwise be conveniently done

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 AND anyone exercising the right of entry shall:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.10

 	
 (except in an emergency) do so
 only at reasonable times and on reasonable
 notice

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.11

 	
 cause as little damage and
 inconvenience as reasonably practicable and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.49.12

 	
 make good any resulting damage
 to the Premises

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 To permit Landlord to remedy breach

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.50

 	
 To permit the Landlord and all
 those authorised by it to enter the Premises without liability to the Tenant for any damage or inconvenience thereby
 created to remedy any breach of the
 Tenant’s obligations in this Lease specified by the Landlord by notice
 to the Tenant if:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.50.1

 	
 one month thereafter the Tenant has not started or
 is not continuing diligently to remedy the breach

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.50.2

 	
 two months thereafter the
 Tenant has not completed remedying the breach or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.50.3

 	
 in the Landlord’s opinion the
 Tenant is unlikely to have completed remedying
 the breach within two months thereafter or such shorter period as the Landlord reasonably considers
 necessary in the circumstances

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 AND the costs so incurred by the Landlord (including
 solicitors’ and surveyors’ fees)
 shall be a liquidated debt and paid by the Tenant to the Landlord on
 demand

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

21

	
  

 	
  

 	
  

 
	
  

 	
 Statutory
 obligations

 
	
  

 	
  

 	
  

 
	
  

 	
 3.51

 	
 To
 comply with the present and future requirements of any statute government department local or
 other public or competent authority or court relating to the Premises or their use
 whether imposed on any owner or occupier of them

 
	
  

 	
  

 	
  

 
	
  

 	
 3.52

 	
 To
 execute all works and provide and maintain all arrangements on or in respect of the Premises
 or their use that are thereby required

 
	
  

 	
  

 	
  

 
	
  

 	
 3.53

 	
 Not to
 do or omit to do in the Premises or the Estate anything as a result of which
 the Landlord may under any statute have imposed upon it or become liable to pay any
 penalty damages compensation costs charges or expenses

 
	
  

 	
  

 	
  

 
	
  

 	
 Copies
 of notices

 
	
  

 	
  

 	
  

 
	
  

 	
 3.54

 	
 Immediately
 after receipt to give to the Landlord full particulars of any notice order proposal or
 recommendation given to or served on the Tenant or any owner or occupier of
 the Premises affecting the Premises or neighbouring property whether
 advertised or served directly on the Tenant or any such owner or occupier or
 the original (or a copy) is received by any of them from any other person

 
	
  

 	
  

 	
  

 
	
  

 	
 3.55

 	
 If so
 requested by the Landlord to produce any such notice order proposal or recommendation and at
 the request of the Landlord to make or join in making such objections or
 representations in respect of it as the Landlord requests

 
	
  

 	
  

 	
  

 
	
  

 	
 To pay charges under
 Planning Acts

 
	
  

 	
  

 	
  

 
	
  

 	
 3.56

 	
 To pay
 any charge or levy imposed under the Planning Acts during or after the Term in respect of
 the carrying out or maintenance of any operations at the Premises or the
 commencement or continuance of any use of the Premises during the Term

 
	
  

 	
  

 	
  

 
	
  

 	
 No
 planning applications etc without consent

 
	
  

 	
  

 	
  

 
	
  

 	
 3.57

 	
 Not
 to serve any notice on nor to enter into any agreement with the planning authority nor without
 the approval of the Landlord make any application for permission under the
 Planning Acts

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

22

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Copies of permissions

 
	
  

 	
  

 	
  

 
	
  

 	
 3.58

 	
 Immediately on receipt to give
 to the Landlord a copy of the grant refusal or modification of any
 permission or other decision under the Planning Acts

 
	
  

 	
  

 	
  

 
	
  

 	
 To obtain approval of permissions

 
	
  

 	
  

 	
  

 
	
  

 	
 3.59

 	
 Notwithstanding any consent or approval granted by
the Landlord not to make any alteration or
addition to the Premises or any change of use until the Landlord has approved every necessary permission
such approval not to be unreasonably
withheld PROVIDED THAT the Landlord may refuse approval inter alia on the grounds that any condition
contained in it or anything omitted from
it or any other thing referred to in it would in the opinion of the Landlord be (or be likely to be) prejudicial to the
Landlord’s interest in the Premises during
or after the end of the Term 

 
	
  

 	
  

 	
  

 
	
  

 	
 To complete works before end
 of Term

 
	
  

 	
  

 	
  

 
	
  

 	
 3.60

 	
 To carry out and complete
 before the end of the Term:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.60.1

 	
 any works to be carried out to the Premises by a
 date after the end of the Term by a
 condition of any planning permission granted for any development begun
 before the end of the Term and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.60.2

 	
 any development begun upon the
 Premises in respect of which the Landlord
 shall or may be liable for any charge or levy under the Planning Acts

 
	
  

 	
  

 	
  

 
	
  

 	
 Landlord’s costs

 
	
  

 	
  

 	
  

 
	
  

 	
 3.61

 	
 To pay to the Landlord on demand
 and indemnify the Landlord against all reasonable costs fees damages charges and expenses (including without
 limitation those of agents bailiffs and professional advisers) incurred by
 the Landlord in connection with or
 incidental to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.61.1

 	
 any application by the Tenant or
 any person deriving title under the Tenant
 in connection with the Premises or any term of this Lease whether it proceeds
 or is granted refused or granted subject to conditions including (without limitation) of any advisers instructed

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

23

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 by the
 Landlord to consider whether an assignee satisfies the requirements of Part 1
 of Schedule 6 and in connection with making representations to any independent expert
 appointed under that Part and the costs of such expert and his appointment

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.61.2

 	
 the
 preparation and service of a notice under Section 146 of the Law of Property Act 1925 or
 any steps taken in or in contemplation of proceedings under Section 146 or 147 of that Act
 or otherwise requiring the Tenant to remedy any breach of the Tenant’s obligations in this
 Lease (notwithstanding that forfeiture is avoided otherwise than by
 relief granted by the court and whether or not any right of forfeiture is
 waived by the Landlord or a notice served under the said Section 146 is
 complied with by the Tenant)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.61.3

 	
 any
 steps taken in or towards preparing or serving a schedule of dilapidations whether
 during or after the end of the Term and the negotiation and agreement of the amount payable
 by the Tenant in respect of any items of disrepair or other breaches of covenant which it has not remedied at
 the end of the Term

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.61.4

 	
 the
 recovery or attempted recovery of arrears of the Rents or other sums due from
 the Tenant under this Lease or any other breach by the Tenant of its
 obligations in this Lease

 
	
  

 	
  

 	
  

 
	
  

 	
 Indemnities

 
	
  

 	
  

 	
  

 
	
  

 	
 3.62

 	
 To
 indemnify the Landlord against any act omission or negligence of any Visitor and any breach
 of the Tenant’s obligations in this Lease by any Visitor

 
	
  

 	
  

 	
  

 
	
  

 	
 Regulations

 
	
  

 	
  

 	
  

 
	
  

 	
 3.63

 	
 To
 comply with any written regulations from time to time made by the Landlord relating to
 the management security or occupation of the Estate

 
	
  

 	
  

 	
  

 
	
  

 	
 Registration

 
	
  

 	
  

 	
  

 
	
  

 	
 3.64

 	
 To apply to the Land Registry to register this Lease

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

24

	
  

 	
  

 	
  

 	
  

 
	
 4.

 	
 LANDLORD’S COVENANTS

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Landlord COVENANTS
 with the Tenant as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Quiet enjoyment

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
 That
 the Tenant shall peaceably hold and enjoy the Premises during the Term without interruption or disturbance from or by
 the Landlord or any person lawfully
 claiming under or in trust for the Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Services

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.2

 	
 (Subject
 to payment by the Tenant of the Service Charge) throughout the Term to use its reasonable endeavours to carry
 out the Services in accordance with
 the principles of good estate management PROVIDED THAT:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 4.2.1

 	
 notwithstanding
 any implied or express obligation the Landlord shall not be liable to the Tenant for any failure or
 interruption in any of the Services
 by reason of any breakdown maintenance or repair works renewals or any cause beyond its control

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 4.2.2

 	
 the
 Landlord may from time to time add to vary or discontinue the Services so long as the addition variation or
 discontinuation complies with the
 principles of good estate management

 
	
  

 	
  

 	
  

 	
  

 
	
 5.

 	
 INSURANCE OBLIGATIONS

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Landlord and the Tenant AGREE
 with each other as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Landlord to effect insurance

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.1

 	
 (Unless
 the insurance is vitiated and subject to such reasonable or usual exclusions qualifications and excesses as the
 insurers require or as the Landlord
 may reasonably agree) the Landlord shall insure and keep insured the Estate (including all additions and
 alterations thereto) (excluding tenant’s fixtures and any items which the Tenant covenants to insure) against
 risk of loss or damage by the
 Insured Risks in the Full Cost of Reinstatement and for Loss of Rent

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

25

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Landlord to obtain
 consents for rebuilding

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.2

 	
 If the Estate suffers Insured Damage the Landlord shall
 use its reasonable endeavours to obtain all planning permissions or other
 permits and consents required under the Planning Acts or other statutes (if
 any) (“the Permissions”) to enable it to rebuild the parts of the Estate which
 have suffered the Insured Damage
 so as to make good the Insured Damage PROVIDED THAT:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.2.1

 	
 if the insurance against any Insured Damage (or any
 damage or destruction which would be Insured Damage but for such vitiation) is vitiated the
 Landlord’s obligations in Clauses 5.2 and 5.3 shall not apply in relation to
 that damage or destruction unless and until the Tenant has within six
 months of the occurrence of the damage or destruction paid to the Landlord in full any sums
 due under Clause 5.5.2 as a
 result of the vitiation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.2.2

 	
 all sums received in respect
 of such insurance shall belong beneficially solely to the Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Landlord to reinstate
 (other than minor damage)

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.3

 	
 If the Estate suffers Insured Damage the Landlord shall
 as soon as reasonably practicable (or where required as soon as reasonably
 practicable after the Permissions have been obtained) rebuild the parts of the
 Estate which have suffered the Insured Damage so as to make good the Insured
 Damage PROVIDED
 THAT
 if in the opinion of the Landlord only minor damage has been so caused to the
 Premises the Landlord may by notice to the Tenant require the Tenant to
 attend to the rebuilding of the Premises and after receipt of the notice the
 Tenant shall proceed with and complete the rebuilding of the Premises as soon as
 reasonably practicable and the Landlord shall direct all insurance monies
 received for such Insured Damage (except sums for Loss of Rent) to be paid to the
 Tenant towards carrying out such work and PROVIDED FURTHER that the Landlord
 shall not be liable to rebuild under this sub-clause if and for so long as such
 rebuilding is prevented because:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.3.1

 	
 the
 Landlord has failed despite using its reasonable endeavours to obtain all the Permissions

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

26

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.3.2

 	
 any
 of the Permissions is granted subject to a lawful condition which it is
 unreasonable to expect or impossible for the Landlord to comply with

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.3.3

 	
 some
 defect or deficiency in the site on which it is to take place makes rebuilding impossible or incapable of
 being undertaken at a reasonable
 cost

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.3.4

 	
 the
 Landlord is unable to obtain access to or is prevented from rebuilding the Estate by other private rights

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.3.5

 	
 of war act of God governmental
 action strike lockout or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.3.6

 	
 of any other circumstances
 beyond the control of the Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Cesser of rent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.4

 	
 If
 the Premises (which expression in Clause 5.4 includes any essential means of access thereto across the Estate) suffer
 Insured Damage so as to render the whole
 or any part of the Premises unfit for occupation or use and the insurance against
 such Insured Damage has not been vitiated THEN the whole or (according to the nature and extent of the
 Insured Damage) a fair proportion of the
 Basic Rent and Service Charge shall be immediately suspended until:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.4.1

 	
 the
 parts of the Premises which have suffered the Insured Damage have been
 rebuilt so that they are no longer unfit for occupation or use as a result of the Insured Damage or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.4.2

 	
 the
 end of three years (or if longer of the period for which insurance for Loss of Rent against the Insured Damage has
 been effected under Clause 5.1) from the Insured Damage

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 whichever is the earlier

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

27

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Tenant’s insurance obligations 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.5

 	
 The Tenant shall:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Notice of damage

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.1

 	
 give
 notice to the Landlord immediately if the Premises are destroyed or
 damaged by any of the Insured Risks or if any event occurs which might affect any insurance policy relating to the Premises

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Payment after vitiation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.2

 	
 pay
 to the Landlord on demand the insurance monies (other than for Loss of Rent) which would have been payable but
 for such insurance being vitiated
 if Landlord’s Liability Insurance or similar insurance for neighbouring property of the Landlord is
 vitiated or if the Premises or the
 Estate or any neighbouring property of the Landlord are damaged or destroyed by any of the Insured
 Risks and the insurance against
 such damage or destruction is vitiated

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tenant’s insurance monies

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.3

 	
 apply
 all monies to which the Tenant is entitled by virtue of any insurance of the
 Premises in making good the loss or damage in respect of which they are payable

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 No dangerous substances

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.4

 	
 not
 without the consent of the Landlord bring or do on the Premises or the Estate anything of a dangerous
 combustible inflammable or explosive
 nature

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Not to vitiate

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.5

 	
 not
 do or omit to do on the Premises or the Estate anything which may result in an increase in the premium for the
 insurance of the Premises or the
 Estate or any neighbouring property of the Landlord (unless the Tenant (with
 the approval of the Landlord such approval not to be unreasonably withheld) has paid such increased premium)

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

28

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 or
 which may vitiate any insurance of the Premises the Estate or any neighbouring property of the Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Insurer’s
 requirements

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.6

 	
 comply with the requirements and recommendations from
 time to time of the
 insurers of the Premises and the Estate

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Insurance of Plant

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.7

 	
 effect and maintain such insurance policies as the
 Landlord from time to
 time requests for the Plant within and exclusively serving the Premises in respect of breakdown bursting and
 third party claims

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Plate
 glass

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.8

 	
 insure and keep insured the plate glass in the Premises
 against breakage and third party risks and such other risks as the Landlord from time to time
 reasonably requests in its full value and replace any such plate glass which is broken or
 damaged with all practicable speed

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tenant’s
 third party liabilities

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.9

 	
 insure
 and keep insured the Premises against the Tenant’s third party public and occupiers’ liability risks in a sum
 approved by the Landlord such approval not to be unreasonably withheld

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Terms
 etc of Tenant’s insurance

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.5.10

 	
 effect all such insurances through the agency
nominated by and in an office previously approved (such approval not to be
unreasonably withheld) by the Landlord in the joint names of the Tenant and the Landlord and of other parties notified to
the Tenant by the Landlord and on demand
produce to them particulars of any such policy or policies and the receipt for every premium for
the then current year PROVIDED THAT if the Tenant fails to comply with
its obligations to effect and maintain
insurance the Landlord may do so and the Tenant shall repay all monies paid by the Landlord for that purpose on demand 

 

L3218071:4 015000.0715 / YLK
Updated: 08/01/2010

29

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Payment
 of monies to Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.6

 	
 The Tenant hereby irrevocably authorises the insurers
 of the Estate and the Premises
 to pay any insurance monies in respect of the Estate and the Premises to the
 Landlord without the necessity of consent of the Tenant who shall issue such further separate authorities of this nature
 to the insurers whenever so requested by the Landlord

 
	
  

 	
  

 	
  

 
	
 6.

 	
 PROVISOS

 
	
  

 	
  

 
	
  

 	
 IT
 IS FURTHER AGREED as follows:

 
	
  

 	
  

 
	
  

 	
 Forfeiture

 
	
  

 	
  

 
	
  

 	
 6.1

 	
 Whenever:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.1

 	
 the Rents are in whole or part unpaid 21 days after
 becoming payable
 whether formally demanded or not

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.2

 	
 there
 is a breach of any of the Tenant’s obligations in this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.3

 	
 the Tenant (which expression includes in Clauses 6.1.3
 to 6.1.7 any person in whom this Lease is then vested) becomes bankrupt or is the subject of an interim order under the
 Insolvency Act 1986

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.4

 	
 the Tenant goes into voluntary or compulsory liquidation
 (except solely for the purpose of a bona fide solvent amalgamation or reconstruction) or is
 the subject of a winding- up order or a petition for an administration
 order or is otherwise dissolved wound up or ceases to exist

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.5

 	
 a receiver or a receiver and manager or an
 administrative receiver is appointed in respect of the whole or any part of
 the Tenant’s undertaking or
 assets

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.6

 	
 the Tenant enters into any arrangement or composition
 for the benefit of or
 with its creditors or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.1.7

 	
 the
 Tenant has any distress or execution levied on its goods

 

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30

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.1.7.1

 	
 THEN the Landlord may re-enter the Premises or any part of them in the name of the whole and the
 Term will determine absolutely but
 without prejudice to the rights of
 the Landlord in respect of any prior breach of the Tenant’s obligations in
 this Lease or any guarantor for them PROVIDED THAT in the event that
 the Landlord can exercise its right
 re-entry under this Clause then the Landlord hereby agrees that any mortgagee or chargee of this Lease will have 28
 days (from the date the Landlord
 can re-enter the Premises) to serve
 notice on the Landlord (in respect of which time shall be of the essence) confirming unreservedly that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (a)

 	
 it
 will take a new lease (“the New Lease”) of the Premises for the residue of the Term (for the avoidance of doubt
 the New Lease to be on the same terms as
 this Lease including the Rents payable
 and the Review Date); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b)

 	
 it will execute and deliver a
 counterpart of the New Lease to the
 Landlord within 14 days of the Landlord providing the same and further
 that it will pay all reasonable costs
 incurred by the Landlord in
 relation to the New Lease; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (c)

 	
 it
 will pay the arrears of all rent due and owed by the Tenant under this Lease up to and including
 the date the New Lease is completed

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If
 the Landlord has not received the above-mentioned notice from any mortgagee or chargee within 28
 days of the date it would have been
 entitled to re-enter the

 

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31

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Premises
 then the Landlord is entitled to exercise its rights of re-entry absolutely

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 No implied rights

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.2

 	
 Save
 for the rights expressly set out in Schedule 2 the Tenant is not and shall not be entitled by implication of law or
 otherwise to any right or privilege over or against the remainder of the Estate or any neighbouring property
 which belongs to the Landlord now
 or in the future

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 No restrictions on adjoining
 property

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.3

 	
 Nothing
 contained or implied in this Lease shall impose or be deemed to impose any restriction on the use of any land or
 building (other than the Premises)
 or give the Tenant the benefit of or prevent the release or modification of any obligation entered into by
 any purchaser lessee or occupier of
 any neighbouring property

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Exclusion of liability

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.4

 	
 Except
 insofar as liability may be covered by insurance effected by the Landlord in force when the liability is incurred
 the Landlord shall not be responsible to the Tenant or anyone at the Premises
 or the Estate for any accident
 happening or injury suffered or for any damage to or loss of any chattel sustained in the Premises or the Estate
 whether caused by negligence or otherwise

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Release of Landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.5

 	
 Each
 of the Tenant and its successors in title hereby releases each person now or hereafter included in or comprising the
 Landlord from liability for any breach of the landlord’s obligations
 in this Lease or any collateral agreement occurring
 while that person is not the Tenant’s immediate landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Compensation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.6

 	
 Save
 to the extent prohibited by any rule of law neither the Tenant nor any undertenant
 shall be entitled on quitting the whole or any part of the Premises to claim any compensation from the Landlord
 under the 1954 Act or any other

 

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32

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 present or future
 statute and the Tenant shall indemnify the Landlord against any claim for
 such compensation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Service of notices

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.7

 	
 Any notice served under
 this Lease:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.7.1

 	
 shall be in writing

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.7.2

 	
 may be addressed to
 “the Landlord” or “the Tenant” by that designation without naming the person
 who is the Landlord or the Tenant

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.7.3

 	
 shall be validly served
 if left at the addressee’s last known place of abode or business in the
 United Kingdom

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.7.4

 	
 shall (in the case of
 the Tenant) be validly served if attached to or left at the Premises and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.7.5

 	
 shall be validly served
 on the third day (excluding Saturdays Sundays and statutory bank holidays)
 after being posted if it is posted to the addressee’s last known place of
 abode or business in the United Kingdom in a registered letter or by recorded
 delivery service unless returned through the post office undelivered

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Representations

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.8

 	
 The Tenant acknowledges
 that it has not entered into this Lease in reliance wholly or partly on any
 written oral or implied representation by or on behalf of the Landlord other
 than the Landlord’s solicitor’s replies to the Tenant’s solicitor’s written
 enquiries and all liability of the Landlord and remedies of the Tenant for
 any other non-fraudulent misrepresentation are excluded

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.9

 	
 Clause 6.8 only
 excludes or restricts any liability or remedy for misrepresentation to the
 extent that (notwithstanding the exclusion or restriction) it would be a fair
 and reasonable term to include in this Lease having regard to the
 circumstances which at the date of this Lease were or ought reasonably to
 have been known to or in the contemplation of the parties hereto

 

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33

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Disputes

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.10

 	
 All cases of dispute
 between the Tenant or any undertenant of the Premises and the occupiers of
 any neighbouring property or the tenants or occupiers of any other part of
 the Estate in connection with the use or occupation of the Premises shall be
 submitted to the decision of a surveyor appointed by the Landlord acting as
 expert and not arbitrator whose decision shall be final and binding on
 matters of fact on all the parties to the dispute

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Exclusion of third
 party rights

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.11

 	
 It is not intended that
 any term of this Lease is enforceable by a third party under Section 1 of the
 Contracts (Rights of Third Parties) Act 1999

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Sums due to Landlord
 treated as rent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.12

 	
 Any sum due from the
 Tenant to the Landlord under this Lease shall be additional rent hereby
 reserved and paid by the Tenant (save where otherwise provided) on demand and
 shall be recoverable by action or distress and the word “Rents” shall be
 construed accordingly

 
	
  

 	
  

 	
  

 	
  

 
	
 7.

 	
 TENANT’S
 OPTION TO DETERMINE

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 In this Clause
“Termination Date” means 31st January 2015 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
 Subject to the
 pre-conditions in Clause 7.2 being satisfied on the Termination Date and
 subject to Clause7.3 the Tenant may determine the Term on the Termination
 Date by giving the Landlord not less than six month’s written notice The Term
 will then determine on the Termination Date but without prejudice to any
 rights of either party against the other for any antecedent breach of its
 obligations under this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
 The pre-conditions are
 that:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 7.2.1

 	
 vacant possession of
 the whole of the Premises is given to the Landlord and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 7.2.2

 	
 the Basic Rent and the
 Insurance Rent due under this Lease up to the Termination Date have been paid
 in full

 

L3218071:4 015000.0715 / YLK
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34

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
 The Landlord may waive any of the pre-conditions set
 out in Clause 7.2 at any time before the Termination Date by written notice
 to the Tenant

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.4

 	
 The Tenant will cancel any registration it has made
 in connection with this Clause within five Working Days of the Termination
 Date

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.5

 	
 Time will be of the essence for the purposes of this
 Clause

 
	
  

 	
  

 	
  

 	
  

 
	
 8.

 	
 RENT REVIEW

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Basic Rent for the time being payable under this
 Lease shall be reviewed as follows:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Frequency of review

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
 For the purposes of this Clause “the Review Date”
 means

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Upwards only reviews

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.2

 	
 From and including the Review Date the Basic Rent
 shall be whichever is the greater of the amount of the Basic Rent payable
 during the twelve months immediately preceding the Review Date (ignoring for
 this purpose but without prejudice to any suspension under Clause 5) and the
 open market rent for the Premises at the Review Date

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Basis of valuation

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.3

 	
 (Subject to Clause 8.4) the open market rent for the
 Premises at the Review Date shall be the amount agreed by the Landlord and
 the Tenant (or if they fail to agree determined in accordance with Clause
 8.5) to be the best rent per year at which the Premises might reasonably be
 expected to be let in the open market on the Review Date:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.1

 	
 as a whole

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.2

 	
 by a willing lessor to a willing lessee

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.3

 	
 with vacant possession

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.4

 	
 without taking any fine or premium

 

L3218071:4 015000.0715 / YLK
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35

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.5

 	
 for a term of ten years
 starting on the Review Date

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.6

 	
 on the terms of this Lease
 including this Clause other than as to the amount of the Basic Rent and the
 rent-free period (if any) applicable at the start of the Term

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ON THE ASSUMPTIONS
 that at the Review Date:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.7

 	
 the Landlord and the
 Tenant have fully complied with their obligations in this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.8

 	
 the Premises and the
 Estate and all other necessary services and facilities are in good and
 substantial repair and condition and fit and available for immediate
 beneficial occupation and use

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.9

 	
 no work has been
 carried out and nothing has occurred on or directly relating to the Premises
 or the Estate which has diminished the rental value of the Premises

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.10

 	
 if the Premises or the
 Estate have been damaged or destroyed they have been fully rebuilt

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.11

 	
 the Premises may be
 lawfully used for any of the purposes permitted by this Lease as varied or
 extended by any licence pursuant to this Lease

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 BUT DISREGARDING:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.12

 	
 the fact that the
 Tenant any undertenants or their respective predecessors in title shall have
 been in occupation of the Premises

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.13

 	
 any goodwill that shall
 have become attached to the Premises from the carrying on of the business of
 the Tenant or any undertenants or their respective predecessors in such
 business

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.14

 	
 any effect on rent of
 the Premises attributable to the existence at such Review Date of any
 alterations additions or improvement to the Premises lawfully carried out by
 the Tenant any undertenants or

 

L3218071:4 015000.0715 / YLK
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36

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 their respective
 predecessors in title with the consent of the Landlord (where necessary)
 under the terms of this Lease otherwise than in pursuance of any obligation
 to the Landlord and/or their immediate landlord

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.3.15

 	
 the fact that the
 Premises or the Estate or any necessary facilities or services shall be
 defective in any way

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Treatment of rent free
 periods

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.4

 	
 The open market rent
 for the Premises shall be ascertained without making any discount reduction
 or allowance to reflect (or compensate the Tenant or the hypothetical tenant
 for the absence of) any rent-free period or concessionary rent period during
 which fitting-out works would be carried out which it might then be the
 practice in open market lettings for a landlord to make so that the open
 market rent for the Premises shall be that which would be payable after the
 expiry of any such rent-free or concessionary rent period

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Method of determination

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.5

 	
 If the Landlord and the
 Tenant fail to agree the open market rent for the Premises by a date three
 months before any Review Date then:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.1

 	
 the determination of
 the open market rent for the Premises at that Review Date may be referred to
 an independent chartered surveyor (“the Surveyor”) with experience in the
 letting of commercial premises in Greater London and the home counties

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.2

 	
 the Surveyor shall be
 appointed by the Landlord and the Tenant jointly and (if they fail to agree)
 shall be nominated at the request of the Landlord or the Tenant by or on
 behalf of the President (or Senior Officer) (“the President”) for the time
 being of The Royal Institution of Chartered Surveyors

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.3

 	
 if the Surveyor dies
 delays or becomes unwilling unfit or incapable of acting or if for any other
 reason the President thinks fit he may on the application of the Landlord or
 the Tenant by writing discharge the Surveyor and appoint another in his place

 

L3218071:4 015000.0715 / YLK
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37

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.4

 	
 the
 costs and expenses of the Surveyor (including the costs of his appointment)
 shall be borne as he shall direct or in default of direction by the Tenant

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.5

 	
 the
 Surveyor shall act as an arbitrator or (at the option of the Landlord)
 independent expert

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.6

 	
 if
 the Surveyor is an arbitrator (subject to Clause 8.5.3) the arbitration shall
 be conducted in accordance with the Arbitration Act 1996

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.5.7

 	
 if
 the Surveyor is an independent expert:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 8.5.7.1

 	
 his
 decision shall be final and binding and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 8.5.7.2

 	
 he
 shall afford the Landlord and the Tenant an opportunity to make
 representations to him and to comment to him on the other’s representations

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Interim
 arrangements

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.6

 	
 If
 the open market rent for the Premises payable from any Review Date has not
 been ascertained in accordance with this Clause before that Review Date then:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.6.1

 	
 the
 Tenant shall until the first Quarter Day after the date on which it is
 ascertained continue to pay the Basic Rent at the rate applicable but for the
 review due at that Review Date

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.6.2

 	
 within
 seven days after the date on which it is ascertained the Tenant shall pay to
 the Landlord as additional Basic Rent:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 8.6.2.1

 	
 the
 amount (if any) of the shortfall between (a) the amount of the Basic Rent so
 payable by the Tenant down to such Quarter Day and (b) the amount which would
 have been payable if it had been ascertained before that Review Date and

 

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38

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 8.6.2.2

 	
 interest at 4% below
 the Prescribed Rate on each further payment of Basic Rent which would have
 been payable if it had been ascertained before that Review Date for the
 period from when such payment would have been payable until due for payment
 under this sub-clause

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Time not of the essence

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.7

 	
 In respect of the time
 limits mentioned in this Clause time shall not be or be deemed to be of the
 essence

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Statutory restrictions

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.8

 	
 If at any Review Date
 there is in force a statute or other instrument which prevents restricts or
 modifies the Landlord’s rights to review the Basic Rent in accordance with
 this Lease and/or to recover any increase in the Basic Rent then (if such
 prevention restriction or modification is removed relaxed or modified but
 without prejudice to its rights (if any) to recover any Basic Rent the
 payment of which has only been deferred by law) the Landlord may by giving
 not less than one month’s nor more than three months’ notice in writing to
 the Tenant at any time within six months of it being removed relaxed or
 modified proceed with any review of the Basic Rent which was prevented or further
 review the Basic Rent in respect of any review where the Landlord’s right was
 restricted or modified and the date of expiry of such notice shall be deemed
 to be a Review Date (provided that nothing in this sub-clause shall vary any
 subsequent Review Dates) and to recover any increase in Basic Rent thereby
 resulting with effect from the earliest date permitted by law

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Memoranda

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.9

 	
 Whenever the Basic Rent
 has been agreed or determined in accordance with this Clause memoranda of it
 shall be signed by or on behalf of the Landlord and the Tenant and attached
 to this Lease and its counterpart and the Tenant shall bear the costs
 relating to the memoranda

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 IN WITNESS
 whereof this Lease has been duly executed by the parties hereto and is delivered
 as a Deed the day and year first before written

 

L3218071:4 015000.0715 / YLK
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39

SCHEDULE 1 

(Definition of the
Premises)

The
whole and each part of the building on the Estate edged red on the attached
plan and known as Unit J City Park
Watchmead Welwyn Garden City Hertfordshire INCLUDING all
structural and external parts and any Conduits and Plant within the Premises
which does exclusively serve the Premises and subject thereto including:

	
  

 	
  

 
	
 1.

 	
 All additions and
 alterations to the Premises

 
	
  

 	
  

 
	
 2.

 	
 All fixtures from time
 to time annexed to the Premises

 
	
  

 	
  

 
	
 3.

 	
 Any
 interior screeding plaster work wall and ceiling finishes (including any
 false ceilings and the airspace
 above the false ceilings) and all ornamental or architectural features

 
	
  

 	
  

 
	
 4.

 	
 All
 internal staircases non-structural walls and partitioning and where such
 walls and or partitioning abut any
 other part of the Estate which is suitable for letting by the Landlord for independent occupation one half
 (severed vertically) of each of such walls
 or partitioning

 
	
  

 	
  

 
	
 5.

 	
 The boards and screeds
 of floors and any floor coverings in the Premises now or in the future
 provided by or at the cost of the Landlord

 
	
  

 	
  

 
	
 6.

 	
 All windows window
 frames doors and door frames

 
	
  

 	
  

 
	
 7.

 	
 All Conduits within and
 exclusively serving the Premises

 
	
  

 	
  

 
	
 8.

 	
 All Plant within and
 exclusively serving the Premises

 

SCHEDULE 2

(Rights granted)

	
  

 	
  

 
	
 Conduits

 
	
  

 	
  

 
	
 1.

 	
 (So far as the Landlord
 can grant them and subject to temporary interruption for repair alteration or replacement) the passage of water
 soil gas electricity and other services 

 

L3218071:4 015000.0715 / YLK
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40

	
  

 	
  

 
	
  

 	
 to and from the Premises in and through the Conduits
 which now serve the Premises and are in or over other parts of the Estate

 
	
  

 	
  

 
	
 Common Parts

 
	
  

 	
  

 
	
 2.

 	
 (Subject to any regulations from time to time made by
 the Landlord) to use the Common
 Parts for all proper purposes in connection with the use and enjoyment of the Premises

 
	
  

 	
  

 
	
 Car parking

 
	
  

 	
  

 
	
 3.

 	
 (Subject to compliance with any security arrangements
 made from time to time by the Landlord) to park up to 42 private motor cars within the spaces
 coloured orange the attached plan or
 within such alternative spaces as the Landlord from time to time determines with all necessary rights of access
 to and egress from them

 
	
  

 	
  

 
	
 Support

 
	
  

 	
  

 
	
 4.

 	
 Support
 shelter and protection for the Premises from other parts of the buildings on the Estate

 
	
  

 	
  

 
	
 Roads

 
	
  

 	
  

 
	
 5.

 	
 To pass to and from the Premises at all times for all
 purposes connected with the proper use and enjoyment of the Premises with or
 without vehicles along the roads within
 the Estate and (but on foot only) the footpaths and corridors giving access
 to the Premises from the public highway

 
	
  

 	
  

 
	
 Access

 
	
  

 	
  

 
	
 6.

 	
 (After giving reasonable notice at reasonable times) to
 enter other parts of the Estate or any adjoining property belonging to the
 Landlord so far as may be necessary for the purposes of carrying out any repairs and
 decorations for which the Tenant is responsible under this Lease SUBJECT TO
 the Tenant making good immediately all damage occasioned thereby to the satisfaction of
 the Landlord and its tenants and complying with the reasonable requirements of and
 causing the minimum of inconvenience
 (whether by week-end working or otherwise) to the occupiers of the adjoining property

 

L3218071:4 015000.0715 / YLK
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41

	
  

 	
  

 
	
 Loading

 
	
  

 	
  

 
	
 7.

 	
 The
 right to load and unload vehicles on any part of the Phase to the extent that
 the use of the Phase shall be necessary
 for such purposes PROVIDED THAT any loading or unloading of vehicles shall at all times be
 carried out in a proper manner and without
 avoidable inconvenience or disturbance to any other tenants occupiers or users of any adjoining or neighbouring land

 
	
  

 	
  

 
	
 Skips

 
	
  

 	
  

 
	
 8.

 	
 The right to install (subject to the Tenant complying
 with its covenants in relation thereto) one skip in a position near the
 Premises first approved by the Landlord and of a colour first approved by the Landlord

 
	
  

 	
  

 
	
 SCHEDULE 3

 
	
  

 	
  

 
	
 (Exceptions and reservations)

 
	
  

 	
  

 
	
 Conduits

 
	
  

 	
  

 
	
 1.

 	
 The passage of water soil gas electricity and other
 services to and from all neighbouring
 property whether belonging to the Landlord or not in and through the Conduits which are now or hereafter in or over
 the Premises

 
	
  

 	
  

 
	
 Easements

 
	
  

 	
  

 
	
 2.

 	
 All other easements or other rights in the nature of
 easements or quasi-easements now enjoyed by any neighbouring property of the
 Landlord over the Premises

 
	
  

 	
  

 
	
 Support

 
	
  

 	
  

 
	
 3.

 	
 Support shelter and protection from the Premises for
 adjoining buildings or structures now or hereafter erected against or over the
 Premises

 
	
  

 	
  

 
	
 Emergency access

 
	
  

 	
  

 
	
 4.

 	
 In case of emergency to pass through the Premises in
 accordance with the requirements of any competent authority

 
	
  

 	
  

 
	
 Entry

 
	
  

 	
  

 
	
 5.

 	
 To enter the Premises for the purposes mentioned in
 this Lease

 

L3218071:4 015000.0715 / YLK
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42

	
  

 	
  

 
	
 To build

 
	
  

 	
  

 
	
 6.

 	
 To build or rebuild or alter any buildings on any
 neighbouring land in any manner whatsoever notwithstanding that as a result there is a diminution in
 the present or future access of light or
 air to the Premises which it is hereby agreed is and shall be enjoyed with
 the consent of the Landlord or other the owner or occupier of such land and
 not as of right

 

SCHEDULE 4

(Documents which affect or relate to the
Premises)

All those documents referred to in the title to HD243902

SCHEDULE 5

(the Service Charge)

PART 1

(Definitions)

In this Schedule the following expressions have the
meanings set against them:

	
  

 	
  

 	
  

 
	
 “Accountant”

 	
 any person or firm appointed by or acting for the
 Landlord (including an
 employee of the Landlord or a company which is a member of the same group of companies as the Landlord

 
	
  

 	
  

 
	
 “Account
 Day”

 	
 the
 31st day of December in each year of the Term (or such other day as the Landlord from time to time
 determines)

 
	
  

 	
  

 
	
 “Accounting
 Period”

 	
 the periods:

 
	
  

 	
  

 
	
  

 	
 (1)

 	
 from and including the start of the Term (or if earlier
 the date
 when the Tenant first had or was entitled to have access to the Premises) to and including
 the first Account Day

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 from
 and including the day after each Account Day in the Term (except the last one) until and including the next 

 

L3218071:4 015000.0715 / YLK
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43

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account
 Day

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 from but excluding the last Account Day in the Term to
 the end
 of the Term

 
	
  

 	
  

 	
  

 
	
 “the
 Retained Parts”

 	
 means in Part 3 of this Schedule the parts of the Phase
 consisting of buildings which for the time being are neither let to nor
 intended to be let to occupational tenants and in Part 4 of this Schedule the parts of the Estate
 not consisting of such buildings

 
	
  

 	
  

 
	
 “the
 Service Charge

 Expenditure”

 	
 means the total cost of provision of the Services and of
 the expenses set out in Part 3 and Part 4 respectively of this Schedule as calculated in Part
 2 of this Schedule

 
	
  

 	
  

 
	
 “the
 Service Charge

 Percentage”

 	
 means the proportion from time to time determined by the
 Accountant
 as a fair proportion for the Premises to bear of the Service Charge
 Expenditure and in making such determination the Accountant shall be
 entitled to have regard to the extent of the Estate from time to time developed and
 benefitting from the Services and matters mentioned in Part 4 of this
 Schedule and the extent of the Estate in respect of which the Landlord is providing such services and may also take into
 account the extent to which any particular
 Services or matters mentioned in Part 4 of this Schedule benefit or are used by particular
 tenants of the Estate

 
	
  

 	
  

 
	
 “the
 Service Charge”

 	
 means the sum from time to time calculated by the
 Accountant and payable by the Tenant in the manner set out in Part 2
 of this Schedule

 

PART 2

(Calculation and Payment of Service Charge)

	
  

 	
  

 
	
 1.

 	
 The
 Service Charge shall in relation to any Accounting Period during the Term be
 the Service Charge Percentage of the
 Service Charge Expenditure in respect of such Accounting Period

 

L3218071:4 015000.0715 / YLK
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44

	
  

 	
  

 
	
 2.

 	
 Save in respect of the first Accounting Period the
 Accountant shall before or as soon as is practicable after each Account Day prepare a certificate
 estimating the Service Charge Expenditure for the Accounting Period
 commencing immediately after such Account
 Day and stating the sum which shall be the provisional service Charge payable by the Tenant for that Accounting Period

 
	
  

 	
  

 
	
 3.

 	
 The Tenant shall pay the provisional Service Charge sum
 pursuant to paragraph 2 above by equal quarterly payments in advance on the
 usual quarter days

 
	
  

 	
  

 
	
 4.

 	
 The Tenant shall pay on the date hereof and on each of
 the following quarter days within the first Accounting Period such amount as
 the Landlord shall reasonably require
 which amount shall be the provisional Service Charge sum in respect of that Accounting Period

 
	
  

 	
  

 
	
 5.

 	
 If the Tenant shall not have been given notice of the
 Accountant’s estimate of the provisional Service Charge for an Accounting
 Period the Tenant shall on the relevant quarter days pay an amount equal to the last quarterly payment of
 Service Charge in the preceding Accounting Period and any requisite
 adjustment shall be made to the first
 quarterly payment after such notice is given

 
	
  

 	
  

 
	
 6.

 	
 As soon as practicable after each Accounting Period the
 Landlord will furnish the Tenant with a statement certified by the Accountant
 (which save for the correction of any manifest error therein shall be conclusive
 and binding on the Tenant) of the Service Charge Expenditure and the Service
 Charge payable by the Tenant for the preceding Accounting Period

 
	
  

 	
  

 
	
  7.

 	
 If the Service Charge for any Accounting Period shall
 exceed the provisional sum estimated pursuant to paragraph 2 or paid under paragraph 4 for that
 Accounting Period the excess shall be due to the Landlord on demand or if it
 shall be less than such provisional sum
 the overpayment shall be credited to the Tenant against the next quarterly
 payment of the Service Charge

 
	
  

 	
  

 
	
 8.

 	
 The provisions of this
 Schedule shall continue to apply notwithstanding the expiration of the Term but only in respect of the period to
 such expiration and any overpayment made by the Tenant in relation to
 the last Accounting Period shall be repaid to the

 

L3218071:4 015000.0715 / YLK
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45

	
  

 	
  

 
	
  

 	
 Tenant within 21 days
 of the Accountant sending a certificate of the Service Charge and Service
 Charge Expenditure in respect of the final Accounting Period

 

PART 3

(The Services)

	
  

 	
  

 
	
 1.

 	
 Maintaining cleansing
 repairing resurfacing renewing (insofar as consistent with the Landlord’s
 obligation to repair) and insuring the Retained Parts

 
	
  

 	
  

 
	
 2.

 	
 Inspecting servicing
 maintaining repairing amending overhauling replacing and insuring all
 apparatus plant machinery and equipment within the Retained Parts from time
 to time

 
	
  

 	
  

 
	
 3.

 	
  

 
	
  

 	
  

 
	
 3.1

 	
 Maintaining repairing
 cleansing emptying and draining all tanks gas pipes sewers drains ducts
 conduits telephone cables electricity wires flues flexes and other conducting
 media in or serving the Phase except those that are within and solely serve
 the Premises or any other part of the Phase other than the Retained Parts

 
	
  

 	
  

 
	
 3.2

 	
 Maintaining repairing
 and renewing (where reasonably necessary) all tanks gas pipes telephone
 cables electricity wires flexes and other conducting media and boundary walls
 and fences in or serving the Phase except those that are within and solely
 serve the Premises or any other part of the Phase other than the Retained
 Parts

 
	
  

 	
  

 
	
 4.

 	
 Providing and
 maintaining any plants shrubs trees or garden or grassed areas in the
 Retained Parts and keeping the same planted and free from weeds and the grass
 cut

 

PART 4

(Expenditure)

	
  

 	
  

 
	
 1.

 	
 The costs of the
 provision of services of the kind referred to in Part 3 of this Schedule but
 in relation to the Estate other than the Phase with references to “the
 Retained Parts” being treated as a reference to that expression as defined
 for the purposes of this Part

 

L3218071:4 015000.0715 / YLK
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46

	
  

 	
  

 	
  

 
	
 2.

 	
 The
 cost of supplying providing purchasing hiring maintaining renewing replacing
 repairing servicing overhauling and keeping in good and serviceable order and
 condition all appurtenances fixtures fittings bins receptacles tools
 appliances materials equipment and other things which are necessary for the
 maintenance appearance upkeep or cleanliness of the Estate or any part of it

 
	
  

 	
  

 
	
 3.

 	
 The
 cost of collection compaction and disposal of refuse from the Estate insofar
 as the same is not carried out by the local authority and the maintenance of
 such other services as would normally be maintained by statutory undertakers
 insofar as the same are
 not maintained by the appropriate authority

 
	
  

 	
  

 
	
 4.

 	
 The
 cost of provision for notice boards for the purpose of showing the names of
 the tenants and other occupiers occupying the Estate and the updating of such
 notice boards as appropriate

 
	
  

 	
  

 
	
 5.

 	
 The
 cost of controlling traffic on the roads on the Estate and providing safety
 controls and security
 on the Estate

 
	
  

 	
  

 
	
 6.

 	
 The
 fees and disbursements of the Accountant and any other individual firm or
 company properly employed by the Landlord or by the Accountant for or in
 connection with the provision of the Services and the collection of the rents
 (other than the rent first hereinbefore reserved and the Insurance Rent)
 hereby reserved

 
	
  

 	
  

 
	
 7.

 	
 The
 cost of employing such staff as are necessary for the performance of the
 Services and the Services referred to in this Part including but without
 prejudice to the generality of the foregoing:

 
	
  

 	
  

 
	
  

 	
 7.1

 	
 insurance pension and
 welfare contributions

 
	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
 transport facilities and
 benefits in kind

 
	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
 the provision of uniforms
 and working clothing

 
	
  

 	
  

 	
  

 
	
  

 	
 7.4

 	
 the
 provision of vehicles tools appliances cleaning and other materials fixtures
 fittings and other equipment for the performance of their duties and

 
	
  

 	
  

 	
  

 
	
  

 	
 7.5

 	
 the cost of entering into
 contracts for the carrying out of all or any of such services

 

L3218071:4 015000.0715 / YLK
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47

	
  

 	
  

 
	
 8.

 	
 All existing and future
 rates water rates charges duties assessments impositions and other like
 outgoings payable by the Landlord in respect of the Estate or any part of it
 (excluding the Premises and any other part of the Estate other than the
 Retained Parts other than those payable or levied in respect of the trade or
 other activities or profits of the Landlord and any superior landlord or in
 respect of any disposal or deemed disposal (in either case whether a part
 disposal or not) of all or any part of any interest or estate in the Demised
 Premises or any part thereof by any person other than the Tenant or any
 person deriving title or interest through or under the Tenant

 
	
  

 	
  

 
	
 9.

 	
 The cost of the supply
 of electricity gas oil or other fuel for the provisions of the Services and
 the Services mentioned in this Part and for all purposes in connection with
 the Retained Parts

 
	
  

 	
  

 
	
 10.

 	
 The costs charges and
 expenses of preparing and supplying to the Tenant copies of any Regulations
 made by the Landlord relating to the Estate or the use of it

 
	
  

 	
  

 
	
 11.

 	
 The cost of complying
 with the provisions of any regulation bye-law notice legislation order or
 statutory requirements concerning town planning public health highways
 streets drainage or other matters relating or alleged to relate to the
 Retained Parts

 
	
  

 	
  

 
	
 12.

 	
 The costs to the
 Landlord of abating a nuisance in respect of the Estate or any part of it
 insofar as the same is not the liability of any individual tenant

 
	
  

 	
  

 
	
 13.

 	
 The costs of leasing
 any item required for the purpose of providing any of the services referred
 to in this Schedule

 
	
  

 	
  

 
	
 14.

 	
 Any interest and fees in respect of money borrowed
 to finance the provision of any of the services referred to in this Schedule

 
	
  

 	
  

 
	
 15.

 	
 Such provision (if any)
 that the Landlord shall determine for a sinking fund and reserve fund with a
 view to meeting future costs and to secure so far as is reasonably possible
 that the Service Charge shall be progressive and cumulative

 
	
  

 	
  

 
	
 16.

 	
 Value Added Tax payable
 by the Landlord in respect of the supply to by or on behalf of the Landlord
 of any of the services referred to in this Schedule

 

L3218071:4 015000.0715 / YLK
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48

	
  

 	
  

 
	
 17.

 	
 Any
 other costs reasonably and properly incurred by the Landlord in providing the
 services referred to in this
 Schedule

 
	
  

 	
  

 
	
 18.

 	
 Any
 other services relating to the Estate or any part of it reasonably provided
 by the Landlord from time to time during the Term in the interests of good
 estate management in the interest and not expressly referred to in this
 Schedule

 

SCHEDULE 6

(Alienation conditions)

PART 1

(Requirements for an assignment)

Application

	
  

 	
  

 
	
 1.

 	
 This Part applies for the
 purposes of Section 19(1A) of the Landlord and Tenant Act 1927

 

Principal
test

	
  

 	
  

 	
  

 
	
 2.

 	
 The
 Tenant shall not assign the Premises other than to a person who has audited
 accounts (and to the extent to which the assignee has or ought to have
 prepared such accounts for such period audited consolidated accounts for
 itself and its subsidiaries) copies of which have been produced to the
 Landlord for each of the three consecutive years before a date not earlier than nine
 months before the date of the assignment showing annual profits (before tax and extraordinary and exceptional
 profits or income and
 excluding profits from operations discontinued before the date of the assignment):

 
	
  

 	
  

 
	
  

 	
 2.1

 	
 higher (other than in the
 first year) than the amount thereof in the immediately preceding year and

 
	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
 of
 an amount equal to (in the case of profits) three times one year’s Basic Rent
 at the rate payable in respect of the date of the assignment (including the
 Landlord’s reasonable estimate of any increase therein then due under Clause
 7 but not finally ascertained) and the Insurance Rent and Service

 

L3218071:4 015000.0715 / YLK
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49

	
  

 	
  

 
	
  

 	
 Charge
 payable in the year immediately before the date of the assignment (ignoring
 any suspension thereof under Clause 5)

 

Authorised
guarantee agreement

	
  

 	
  

 	
  

 
	
 3.

 	
 Before
 any assignment of the Premises the assignor shall give a guarantee to the
 Landlord of the performance by that Assignee of the Tenant’s obligations in
 this Lease in such form as the Landlord reasonably requires but in any event
 containing provisions preventing the guarantee from being vitiated by:

 
	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
 any neglect or forbearance
 of the Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
 any time or indulgence
 given by the Landlord

 
	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
 any
 variation of this Lease or the variation of or entry into any other contract
 by the Landlord and the Tenant and

 
	
  

 	
  

 	
  

 
	
  

 	
 3.4

 	
 the release of any
 security or guarantee held in relation to such obligations

 
	
  

 	
  

 	
  

 
	
 Parallel guarantees

 
	
  

 
	
 4.

 	
 Before
 any assignment of the Premises the Tenant shall procure that any person who
 is then a guarantor of the Tenant’s obligations in this Lease (other than a
 person who shall have previously been the Tenant and its guarantor) gives a
 guarantee to the Landlord of the assignor’s obligations in the guarantee
 given in relation to that assignment pursuant to paragraph 3 on the same
 terms as that guarantee with such amendments as the Landlord reasonably
 requires to adapt them to use as a guarantee of the assignor’s obligations as
 guarantor

 
	
  

 	
  

 	
  

 
	
 Further guarantors

 
	
  

 
	
 5.

 	
 Paragraphs
 3 and 4 are without prejudice to the Landlord’s right (if acting reasonably)
 to require such other persons as are acceptable to the Landlord in its
 reasonable discretion to give a guarantee of the performance by the assignee
 of the Tenant’s obligation in this Lease on the terms set out in paragraph 3

 
	
  

 	
  

 	
  

 
	
 No arrears

 
	
  

 
	
 6.

 	
 The
 Tenant shall not assign the Premises unless it has paid all Rents and other
 sums which have fallen due under this Lease before the date of the assignment

 

L3218071:4 015000.0715 / YLK
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50

PART 2

(General requirements)

Prior
approval to permitted dealings

	
  

 	
  

 	
  

 
	
 1.

 	
 (Subject
 to the other provisions of this Schedule and Clause 3.22) the Tenant shall
 not without the approval of the Landlord (such approval not to be
 unreasonably withheld) assign charge or underlet the whole of the Premises

 
	
  

 	
  

 	
  

 
	
 Group sharing

 
	
  

 
	
 2.

 	
 (Notwithstanding
 the foregoing or any covenant entered into by an undertenant pursuant to this
 Lease) the Tenant or any undertenant may share occupation of the whole or any
 part of the Premises with a person who is a member of the same group as the
 Tenant or the undertenant as the case may be (within the meaning of Section
 42 of the 1954 Act) for so long as both the Tenant or undertenant and the
 other person remain members of that group subject to:

 
	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
 no
 landlord and tenant relationship or other interest in the Premises at law or
 in equity being thereby created and

 
	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
 the Tenant notifying the
 Landlord immediately of the identity of the other person

 
	
  

 	
  

 	
  

 
	
 No underlettings of part

 
	
  

 
	
 3.

 	
 There shall be no
 underletting of any part of the Premises (as distinct from the whole)

 
	
  

 	
  

 	
  

 
	
 No premiums for
 underleases

 
	
  

 
	
 4.

 	
 No
 underlease shall be granted at a fine or premium nor other than at the then
 full open market rent for the premises underlet or (if higher) the Basic Rent
 then payable under this Lease such rent to be payable and to be subject to
 review on the same days and in the same manner as under this Lease

 
	
  

 	
  

 	
  

 
	
 Undertenants’ direct
 covenants

 
	
  

 
	
 5.

 	
 Before
 the grant or assignment of any underlease the undertenant or assignee shall
 covenant with the Landlord:

 

L3218071:4 015000.0715 / YLK
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51

	
  

 	
  

 	
  

 
	
  

 	
 5.1

 	
 to comply with the
 Tenant’s obligations in this Lease (save as to payment of rent) until the
 underlease is assigned by an assignment which is not an excluded assignment
 and

 
	
  

 	
  

 	
  

 
	
  

 	
 5.2

 	
 not to assign charge
 underlet hold on trust for another or otherwise part with or share possession
 or occupation of or suffer any other person to occupy the whole or any part
 of the premises underlet save with the approval of the Landlord (such
 approval not to be unreasonably withheld) by way of an assignment or an
 underletting of the whole thereof complying with the provisions of this
 Schedule mutatis mutandis to a person who has entered into the covenants
 required by this paragraph 5

 
	
  

 	
  

 	
  

 
	
 Terms of underleases

 
	
  

 
	
 6.

 	
 Any underlease of the
 Premises shall be granted on the same terms as this Lease (including the
 reservation of rents equivalent to the Insurance Rent and Service Charge)
 modified to the same effect as the alienation covenants to be given to the
 Landlord pursuant to paragraph 5

 
	
  

 	
  

 	
  

 
	
 Exclusion of security of tenure

 
	
  

 
	
 7.

 	
 Before completion of
 any underlease (or if earlier before the undertenant becomes contractually
 bound to take any such underlease) of the Premises and before the occupation
 by any proposed undertenant of the premises to be demised thereby any such
 underlease shall be validly excluded from the operation of Sections 24 to 28
 (inclusive) of the 1954 Act in accordance with the provisions of Section 38A
 of that Act and the relevant Schedules to the Order and the Tenant shall
 produce to the Landlord adequate evidence of such valid exclusion as referred
 to in Clause 3.24

 

	
  

 	
  

 	
  

 
	
 

 	
 (THE COMMON SEAL of NORTRUST

 
	
  (NOMINEES LIMITED was hereunto

 
	
 (affixed in the presence of:

 
	
  

 	
 

 
	
  

 	
 (Sealing Officer duly authorised

 
	
  

 	
 (by the Board of Directors

 

L3218071:4 015000.0715 / YLK
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52

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