Document:

Exhibit 10.53

 

DATED 15 October 2003

 

(1) PRIME
HOLDINGS LIMITED

 

(2) MELBOURNE
BUSINESS COURT MANAGEMENT COMPANY LIMITED

 

(3) a.p.solve Limited

 

 

LEASE

 

relating to

Unit 1 Melbourne Business Court Millennium Way Pride Park Derby

 

 

Edwards Geldard

Number One Pride Place

Pride Park

Derby

DE24 8QR

DX 11509 Derby 1

Tel: -1332 331631

Fax: 01332 850 4499

Ref ABH/22.135.213

 

 

[SEAL]

 

[SEAL]

 

LEASE:
DATED 15th October 2003

 

BETWEEN:

 

	
  (1)                                  the Landlord

  	
  PRIME
  HOLDINGS LIMITED (Company Number: 1358636) whose
  registered office is at 81 Burton Road Derby DE1 1TJ

  
	
   

  	
   

  
	
  (2)                                  the Management Company

  	
  MELBOURNE
  BUSINESS COURT MANAGEMENT COMPANY LIMITED (Company
  Number: 4685867) whose registered office is at 81 Burton Road Derby DE1 1TJ

  
	
   

  	
   

  
	
  (3)                                  the Tenant

  	
  a.p.solve
  LIMITED (Company Number: 4069823) whose registered
  office is at Sirius House, Adastral Park, Martlesham, Ipswich, IP5 3RE

  

 

Recitals

 

(1)                                  The
Landlord is the registered proprietor of the Estate with Title Absolute and is
in the course of developing the Estate

 

(2)                                  The
Landlord has agreed to grant to the Tenant a lease of the Demised Premises for
the consideration at the rent and on the terms and conditions set out below and
the Management Company has agreed to join in this Lease

 

(3)                                  The
Management Company has been incorporated for the purposes of managing and
maintaining the Estate and upon completion of the final letting at the Estate
the Landlord intends to transfer the freehold of the Estate to the Management
Company

 

Operative
Provisions

 

I                                            Definitions
Interpretation and Construction

 

1.1                                 In
this Lease the terms defined by Paragraph 1.1 have the meanings specified
unless the context otherwise requires:-

 

the Access Ways                                                 means
all those areas surfaces and paving at the Estate including the roadways
footways loading bays and other accessways laid out and available for passage
and access

 

	
  Annual
  Expenditure

  	
   

  	
  means in relation to any Financial Year the aggregate of:

  

 

(i)                                     all
reasonable and proper costs expenses and outgoings whatever reasonably and
properly incurred

 

 

by the
Management Company during the Financial Year in or incidentally to carrying out
its obligations set out in the Fifth Schedule including (but not limited to)
the costs and expenditure set out in Part 1 of the Sixth Schedule and any VAT
payable (provided that a VAT invoice is provided to the Tenant one calendar
month before such VAT is due)

 

(ii)                                  such
sums (if any) as the Management Company shall acting reasonably considers
appropriate to charge in any future Financial Year by way of provision for anticipated
expenditure in any future Financial Year in respect of any of the Services

 

Commencement Date                                the
date hereof

 

the Common Parts                                               all
parts of the Estate not intended to be demised including but not limited to the
Access Ways Conducting Media boundaries pedestrian ways forecourts car parks
landscaped areas bin stores boundary walls fences signboards and any other
parts of the Estate which are intended for common use by some or all of the
occupiers of the Estate from time to time.

 

Computing Date                                                         means
1 September 2003 and 1 September in every subsequent year (or such date as the
Management Company may on reasonable grounds from time to time notify in
writing to the Tenant) and “Computing Dates” shall be construed accordingly

 

the Conducting Media                      means
all cable wires pipes mains flues shafts ducts sewers drains watercourses
channels gutters and any media and apparatus of a like nature (including any
such media and apparatus for and connecting with computing or similar
equipment)

 

Contamination                                                                the
presence in on under or over the Premises of any Hazardous Material at any time
whether before on or after the date of this Lease and/or the migration or other
escape of any such Hazardous Materials from the Premises at any time whether
before on or after the date of this Lease save where such Contamination arises
from the acts or omissions of the Tenant

 

Contractual Term                                                    the
term of 5 years from and including the Commencement Date

 

 

Defect                                                                                                             means
any defect in the Demised Premises or anything installed in or on the Demised Premises
which is attributable to (a) defective design (b) defective workmanship or
materials (c) defective supervision of the construction of or the installation
of anything in or on the Demised Premises or (d) defective preparation of the
site upon which the Demised Premises is constructed

 

the Demised Premises                            Unit
1 situated at the Estate shown edged red on the Plan

 

the Designed Car Parks                    means
the land shown coloured blue on the Plan

 

Estate                                                                                                             freehold
property known as Melbourne Business Court Millennium Way Pride Park Derby as
is registered at H M Land Registry with Title Absolute (along with other land)
under Title Number DY330312 as at 16 October 2002 and as is shown edged green
on the Plan

 

Financial Year                                                                     means
the period between two consecutive Computing Dates and “Financial Years” shall
be construed accordingly

 

the Forecourts                                                                  means
the land shown coloured yellow on the Plan (if any)

 

Group Company                                                         means
a company that is a member of the same group as the Landlord within the meaning
of Section 42 of the 1954 Act

 

Guarantor’s Covenants                    means
the Covenants set out in the Ninth Schedule hereto

 

Hazardous Material                                        any
substance whether in solid liquid or gaseous form which is capable of causing
farm to human health or to the environment (that is to say, air water and land
and any living organism or eco-system supported by any of them) whether on its
own or in combination with any other substance

 

the Initial

Provisional

Service Charge                                                                £365.00
(three hundred and sixty five pounds) per year

 

Initial Rent                                                                                      £16,500
(Sixteen thousand five hundred pounds) per year exclusive of VAT

 

Insurance Rent                                                               means
the sums that the Landlord shall from time to time pay by way of premium for
insuring the Demised Premises

 

 

in accordance
with the Tenth Schedule or (where such insurance includes other premises) the
fair and proper proportion attributable to the Demised Premises of the sums the
Landlord shall from time to time pay by way of premium for insuring the Demised
Premises and the other premises (to be determined from time to time by the
Surveyor acting reasonably) and all of any increased premium payable by any act
or omission of the Tenant

 

Insured Risk                                                                             means
fire lightning explosion aircraft (including articles dropped from aircraft)
riot civil commotion malicious persons earthquake storm tempest flood bursting
and overflowing of water pipes tanks and other apparatus and impact by road
vehicles and such other risks whether or not in the nature of the foregoing
against which a reasonably prudent landlord would normally insure

 

Landscaped Areas                                            means
all those soft and hard landscaped areas of the Estate provided for the benefit
of the tenants at the Estate

 

Permitted User                                                                means
any purpose within Class B1(a); B1(b); B1(c); or B8 of the Town and Country
Planning (Use Classes) Order 1987 or medical and/or training purposes
(excluding preschool and schoolage children)

 

Perpetuity Period                                                    means
the period of eighty years from the Commencement Date

 

the Plan                                                                                                     means
the plan attached hereto

 

the Properties                                                                      the
units at the Estate demised or intended to be demised excepting the Demised Premises

 

the Regulations                                                            any
future written rule or regulation made by the Management Company acting
reasonably from time to time for the benefit of use and enjoyment of the Estate
and in the interests of good estate management

 

the Rent                                                                                                 means
the Initial Rent

 

the Rent

Commencement Date                                the
date hereof

 

the Retained Land                                             means
the land as is registered at H M Land Registry under title number DY330312
except for the Demised Premises

 

 

the Service Charge                                          means
the Service Charge Share of the Annual Expenditure for the relevant Financial
Year

 

the Service Charge Share           One
Twentyfourth subject to the provision for variation contained in Part 2 of the
Sixth Schedule

 

the Services                                                                             means
the services described in the Fifth Schedule and such other services as the
Management Company may be special resolution reasonably resolve to provide for
the general benefit of the Estate and/or the Demised Premises and the owners
and occupiers of the time being of the same

 

Surveyor                                                                                             means
any person or film who is or are members of the RICS appointed by the Landlord
to perform any of the functions of the Surveyor under this Lease (including an
employee of the Landlord or a Group Company and including also the person or
firm appointed by the Landlord to collect the rents)

 

the Term                                                                                                 the
Contractual Term and any period of holding over or extension or continuance of
the Contractual Term whether by statute or common law

 

the Utilities                                                                                   means
water gas electricity drainage electrical impulses and other services supplied
or transmitted via the Conducting Media

 

VAT                                                                                                                      means
Value Added Tax or any tax of a similar nature that may be substituted for it
or levied in addition to it

 

the 1954 Act                                                                             means
the Landlord and Tenant Act 1954

 

1.2                                 The
expression “the Landlord” includes the person for the time being entitled to
the Term and all successors in title and where the Landlord is more than one
person all covenants and agreements on the part of the Landlord shall be deemed
to have been made jointly and severally by all such persons constituting the
Landlord and any reference to a superior landlord includes the Landlord’s
immediate reversioner (if any) and any superior landlord at any time;

 

1.3                                 The
expression “the Tenant” includes the person for the time being entitled to the
reversion immediately expectant upon the Term;

 

1.4                                 Words
importing the neuter gender only shall include the masculine or feminine gender
(as the case may be) and words importing the masculine gender only shall
include the feminine gender and vice versa;

 

 

1.5                                 Words
importing persons shall include firms companies and corporations and vice
versa;

 

1.6                                 Words
importing the singular shall be construed as importing the plural and vice
versa;

 

1.7                                 Where
any party comprises more than one person the obligations and liabilities of
that party under this agreement shall be joint and several obligations and
liabilities of those persons;

 

1.8                                 The
expression “the Guarantor” includes not only the third party hereto (if any)
but also any person who enters the Guarantor’s Covenants with the Landlord
pursuant to the provisions of this Lease

 

1.9                                 References
to “the Demised Premises” in the absence of any provision to the contrary
include any part of the Demised Premises

 

1.10                           References
to “the last year of the Term” include the last year of the Term if the Term
shall determine otherwise than by effluxion of time and references to the
expiration of the Term include such other determination of the Term

 

1.11                           References
to any right of the Landlord to have access to the Demised Premises shall be
construed as extending to any superior landlord and any mortgagee of the
Demised Premises and to all persons authorised by the Landlord and any superior
landlord or mortgagee (including agents professional advisers contractors
workmen and others)

 

1.12                           References
to any rights exercisable by the Tenant shall be construed as being exercisable
by the Tenant, any subtenant or subtenants and all persons properly authorised
by them

 

1.13                           Any
covenant by the Tenant not to do an act or thing shall be deemed to include an
obligation not to permit or suffer such act or thing to be done by another
person and any covenant by the Landlord shall bind only the person who is for
the time being entitled to the reversion immediately expectant on the
determination of the Term

 

1.14                           Any
provisions in this lease referring to the consent or approval of the Landlord
shall be construed as also requiring the consent or approval of any mortgagee
of any Demised Premises and any superior landlord where such consent shall be
required but nothing in this lease shall be construed as implying that any
obligation is imposed upon any mortgagee or any superior landlord not
unreasonably to refuse any such consent or approval

 

1.15                           References
to “consent of the Landlord” or words to similar effect mean a consent in
writing signed by or on behalf of the Landlord and to “approved” and

 

 

“authorised”
or words to similar effect mean (as the case may be) approved or authorised in
writing by or on behalf of the Landlord

 

1.16                           The
terms “the parties” or “party” mean the Landlord and/or the Tenant but except
where there is an express indication to the contrary exclude the Guarantor

 

1.17                           “Development”
has the meaning given by Section 55 of the Town and Country Planning Act 1990

 

1.18                           Save
for any reference contained in the definition of Permitted User any references
to a specific statute include any statutory extension or modification amendment
or re-enactment of such statute and any regulations or orders made under such
statute and any general reference to “statute” or “statutes” includes any
regulations or orders made under such statute or statutes

 

1.19                           Save
where otherwise stated any reference to a numbered clause or schedule means the
clause or schedule in this agreement which is so numbered;

 

1.20                           Unless
otherwise specified any reference to an Act of Parliament includes a reference
to that Act as amended or replaced whether before or after the date of this
Agreement and to subordinate legislation or by-laws made under it an any
general reference to statute or legislation includes subordinate legislation
and by-laws;

 

1.21                           The
headings appearing in this Lease are for ease of reference only and shall not
affect construction;

 

1.22                           The
Schedules to this Lease shall be incorporated within and form part of this
Lease

 

1.23                           References
to the preconditions to assignment are references to the provisions of part of
the proviso to clause insofar as they apply to any assignment or application
for consent to assign

 

2.                                       Demise

 

2.1                                 The
Landlord demises to the Tenant with full title guarantee the Demised Premises TOGETHER with (in common with the Landlord and all others
entitled to the like right) the rights specified in the First Schedule to the
exclusion of any implied rights pursuant to Section 62 of the Law of Property
Act 1925 and subject however to the Tenant’s covenants and all other provisions
of this Lease but EXCEPTING AND RESERVING to
the Landlord the rights specified in the Second Schedule TO HOLD the
Demised Premises to the Tenant for the Contractual Term SUBJECT to
all rights easements privileges restrictions covenants and stipulations
contained or referred to in the Seventh Schedule

 

 

YIELDING AND PAYING

 

(a)                                  to
the Landlord the Rent payable without any deduction or set-off arising at
common law or in equity (except where lawfully made pursuant to statute) by
equal quarterly payments in advance on the usual quarter days in every year and
proportionately for any period of less than a year the first such payment being
a proportionate sum in respect of the period from and including the Rent
Commencement Date to and including the day before the quarter day next after
the Rent Commencement Date to be paid on the date of this lease and

 

(b)                                 to
the Management Company by way further rent the Initial Provisional Service
Charge (together with VAT) and/or the Service Charge (together with VAT) at the
times and in the manner described in Part 2 of the Sixth Schedule and provided
that a VAT invoice has been provided to the Tenant one calendar month prior to
the payment due date

 

(c)                                  to
the Landlord by way of further rent the Insurance Rent within 21 days of demand

 

3.                                       Tenant’s
Covenants

 

The Tenant for
the mutual protection of the Landlord and of the Management Company and of the
tenants of the Properties covenants throughout the Term:-

 

3.1                                 with
the Landlord to observe and perform the obligations on the part of the Tenant
set out in Parts 1 and 2 of the Third Schedule and also to observe and perform
all covenants and stipulations contained or referred to in the Property and
Charges Register of the Title above save for financial charges and any
documents referred to in such title so far as they relate to or affect the
Demised Premises and to indemnity the Landlord against all actions proceedings
costs claims and demands in respect of any breach no-observance or
non-performed by the Tenant

 

3.2                                 with
the Management Company to observe and perform the obligations on the part of
the Tenant set out in Parts 1 and 2 of the Third Schedule and the Regulations

 

3.3                                 with
the tenants of the Properties to observe and perform the obligations on the
part of the Tenant set out in Part 2 of the Third Schedule

 

4.                                       Landlord’s
Covenants

 

4.1                                 The
Landlord covenants with the Tenant to observe and perform the obligations on
the part of the Landlord set out in the Fourth Schedule

 

 

4.2                                 The
Landlord covenants with the Tenant to use its reasonable endeavours to procure
that the Management Company observes and performs the obligations set out in
the Fourth Schedule

 

5.                                       Management
Company’s Covenants

 

The Management Company in consideration of and relying on the covenants
on the part of the Tenant contained in this Lease covenants with the Landlord
and as a separate covenant with the Tenant:

 

5.1                                 to
use all reasonable endeavours to carry out provide or procure the Services set
out in the Fifth Schedule PROVIDED THAT the Management Company may at its
reasonable discretion at any time withhold or vary any of the Services but only
if such withholding or variation shall not materially impair the use and
enjoyment of the Estate and/or the Demised Premises and subject to prior
written notice to the Tenant where possible FURTHER PROVIDED ALWAYS that the
Management Company’s obligation shall cease and be extinguished in respect of
matters which are declared by the appropriate Local Authority as repairable or
maintainable at the public expense

 

5.2                                 to
observe and perform the obligations set out in the Fourth Schedule

 

6.                                       Re-entry

 

If and
whenever during the Term:

 

6.1                                 the
rents (or any of them) under this lease are outstanding for fourteen days after
becoming due whether formally demanded or not or

 

6.2                                 there
is a material breach by the Tenant of any covenant or other term of this Lease
or any document supplement to this lease or

 

6.3                                 the
Tenant or Guarantor being a company:-

 

(a)                                  is
unable or admits its inability to pay its debts when they become due (whether
within the circumstances specified in Section 123 of the Insolvency Act 1986 or
otherwise) or

 

(b)                                 a
proposal is made to its creditors for a voluntary arrangement under Part I of
the Insolvency Act 1986 or it enters into a voluntary arrangement or it enters
into another scheme of arrangement with its creditors in satisfaction or composition
of its debts or

 

 

(c)                                  a
petition is presented for an Administration Order under Part II of the
Insolvency Act 1986 or an Administration Order is made or

 

(d)                                 a
receiver or administrative receiver is appointed over any of its assets or
undertaking or

 

(e)                                  a
resolution to wind up is passed or a provisional liquidator is appointed or a
petition is presented for winding up or a winding up order is made under Part
IV of the Insolvency Act 1986 (save in the case of a voluntary winding up
solely for the purpose of amalgamation or reconstruction if the Tenant can
first demonstrate to the satisfaction of the Landlord that the covenant of the
company will be as strong after as it was before the reconstruction or
amalgamation) or

 

(f)                                    a
proposal is made for a scheme of arrangement under Section 425 of the Companies
Act 1985 or

 

(g)                                 a
provisional liquidator is appointed under Section 135 of the Insolvency Act
1986

 

6.4                                 the
Tenant or Guarantor being an individual

 

(a)                                  is
the subject of an application made for an interim order or a proposal is made
for a voluntary arrangement under Part VIII of the Insolvency Act 1986 or

 

(b)                                 a
bankruptcy petition is presented to the court or the circumstances of the
individual are such that a bankruptcy petition could be presented under Part IX
of the Insolvency Act 1986 or

 

(c)                                  the
individual enters into a deed of arrangement or composition with its creditors
or

 

(d)                                 a
receiver is appointed under the Mental Health Act 1983 or the individual
becomes incapable or managing his affairs or

 

(e)                                  the
individual dies or

 

(f)                                  a
receiver or receiver and manager is appointed over any of the assets of the
individual

 

6.5                                 the
Tenant or Guarantor being a partnership:-

 

(a)                                  proposes
to enter into a voluntary arrangement under Part II of the Insolvent
Partnerships Order 1994 (“the 1994 Order”) or

 

 

(b)                               a
petition is presented for an administration order under Part III of the 1994
Order or an Administration Order is made or

 

(c)                                  a
petition is presented for winding up as an unregistered company under Part IV
or V or the Insolvency Order or

 

(d)                                 any
events or circumstances applicable to individuals under clause 6.5 hereof occur
in respect of an individual member of a partnership or the partnership assets

 

6.6                                 the
Tenant has any distress or execution levied on its goods at the Demised Premises
which is not discharged in full within 21 days after the levy has been made

 

the Landlord
may re-enter the Demised Premises (or any part of them in the name of the
whole) at any time (and even if any previous right of re-entry has been waived)
and then the Term will absolutely cease but without prejudice to any rights or
remedies which may have accrued to the Landlord against the Tenant or any
Guarantor in respect of any breach of covenant or other term of this lease
(including the breach in respect of which the re-entry is made)

 

7.                                       Agreement
and Declarations

 

It is agreed
and declared as follows:-

 

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

 

7.2                                 If
any dispute arises between the Tenant and the tenants or occupiers of other
parts of the Estate as to any easement right or privilege in connection with
the use of the Demised Premises and any other part of the Estate or as to the
boundary structures separating the Demised Premises from any other property it
shall be decided by the Landlord or in such other manner as the Landlord shall
reasonably direct

 

7.3                                 Each
of the Tenant’s covenants shall remain in full force both at law and in equity
notwithstanding that the Landlord shall have waived or released temporarily any
such covenant or waived or released temporarily or permanently revocably or
irrevocably a similar covenant or similar covenants affecting any other part of
the Estate

 

7.4                                 As
soon as Prime Holdings Limited has parted with all estate and interest in the
revision immediately expectant on the determination of the Term it shall cease
to have any further rights entitlements under the terms of this Lease but
without prejudice to the rights of Prime Holdings Limited or the Tenant in
respect of any

 

 

antecedent
breach of any of the covenants contained in this Lease

 

7.5                                 The
Management Company acting reasonably shall have power to make and at any time
vary such Regulations as it may think fit for the preservation of the amenities
of the Estate for the general safety or convenience of the occupiers of the
buildings at the Estate and in the interests of good estate management provided
that where possible prior notice of such variations or changes shall be given
to the Tenant and if any consistency might arise between the Regulations or
this Lease the terms of this Lease shall prevail

 

7.6                                 Section
196 of the Law of Property Act 1925 (as amended by the Recorded Delivery
Service Act 1962) shall apply to any notice demand or instrument authorised to
be served under this Lease and any notice served by the Landlord shall be
sufficiently served if served by any agent of the Landlord

 

7.7                                 The
rights granted and reserved by this Lease shall only take effect insofar as
they ascertained within the Perpetuity Period

 

7.8                               The
Tenant shall not be entitled to any right of access of light or air to the
Demised Premises (except those expressly granted) which would restrict or
interfere with the free use of the adjoining or neighbouring land of the
Landlord for building or any other purpose

 

7.9                                 The
Landlord will take reasonable precautions during building works carried out by
it to minimise disturbance noise and nuisance to the Tenant’s use enjoyment and
access to the Demised Premises

 

7.10                           The
walls separating the Demised Premises from the adjoining parts of the Estate
shall be deemed to be party walls and shall be maintained accordingly

 

7.11                           Neither
the Landlord nor the Management Company shall be liable to the Tenant in
respect of any inconvenience suffered by reason of any interruption of any
Services to be provided under the terms of this Lease by reason of:-

 

(a)                                  necessary
repair or maintenance of any installation or apparatus; or

 

(b)                                 damage
to or destruction of any installations or apparatus by any cause beyond the
reasonable control of the Landlord of the Management Company; or

 

(c)                                  mechanical
or other defect or breakdown or frost or other inclement conditions or
unavoidable shortage or fuel material water or labour industrial action or
otherwise; or

 

 

providing and
to the extent of that:

 

(i)                                     any
such failure or interruption could not reasonably have been prevented or
shortened by the exercise of proper care, attention, diligence and skill by the
Landlord/Management Company or those undertaking the Services on behalf of the
Landlord/Management Company and

 

(ii)                                  the
Landlord/Management Company uses and continues to use its best endeavours to
restore the Services in question

 

7.12                           Nothing
in this lease or in any consent granted by the Landlord under this lease shall
imply or warrant that the Demised Premises may lawfully be used under the
Planning Acts for the purpose authorised in this lease (or any purpose
subsequently authorised)

 

7.13                           This
lease embodies the entire understanding of the parties relating to the Demised
Premises and to all the matters dealt with by any of the provisions of this
lease

 

7.14                           The
Tenant acknowledges that this lease has not been entered into in reliance
wholly or partly on any statement or representation made by or on behalf of the
Landlord except any such statement or representation that is expressly set out
in this lease

 

7.15                           Whilst
the Landlord is a limited company or other corporation all license consents
approvals and notices required to be given by the Landlord shall be
sufficiently given if given under the hand of a director the secretary or other
duly authorised officer of the Landlord

 

7.16                           If
after the Tenant has vacated the Demised Premises on the expiry of the Term any
property of the Tenant remains in or on the Demised Premises and the Tenant fails
to remove it within 21 days after being requested in writing by the Landlord to
do so or if after using its best endeavours the Landlord is unable to make such
a request to the Tenant within 21 days after the expiry of the Term:

 

(a)                                  in
so far as such property is annexed to the Demised Premises the Landlord may
treat it as having reverted to the Landlord or

 

(b)                                 the
Landlord may as the agent of the Tenant sell such property and the Tenant will
indemnify the Landlord against any liability incurred by it to any third party
whose property shall have been sold by the Landlord in the mistaken belief held
in good faith (which shall be presumed unless the contrary is proved) that such
property belonged to the Tenant and

 

(c)                                  if
the Landlord having made reasonable efforts is unable to locate the Tenant the
Landlord shall be entitled to retain the net proceeds of sale of such property
absolutely unless the Tenant shall claim them within six months of the date
upon which the Tenant vacated the Demised Premises

 

 

and

 

7.17                           The
Tenant may determine this Lease on 16 April 2006 being 30 months from the date
hereof by giving the Landlord not less than six months prior written notice

 

7.18                           Unless
expressly stated nothing in this Lease creates or will create rights pursuant
to the Contracts (Rights of Third Parties) Act 1999 in favour of any one other
than the parties hereto

 

7.19                           This
Lease is governed by and interpreted in accordance with the Laws of England and
(except where there is a valid submission to arbitration under English Law and
in accordance with this Lease) the parties submit to the non-exclusive
jurisdiction of the High Court of Justices in England

 

THIS LEASE has been executed as
a deed and delivered on the date stated at the beginning of this Lease

 

 

THE FIRST SCHEDULE

 

(Rights Granted)

 

The following rights are hereby
granted (in common with the Landlord and the Management Company and all others
having like rights):-

 

1.             The
right of full free and uninterrupted passage and running of Utilities from and
to the Demised Premises through the Conducting Media (if any) now serving the
Demised Premises and now laid or constructed in or under the Estate or the
Retained Land

 

2.             The
rights of support and protection and all other easements and rights for the benefit
of the Demised Premises at the date of this Lease which are enjoyed or belong
to the Landlord, Management Company and other tenants of the Estate

 

3.             The
right for the eaves gutters spouts downpipes chimney cappings balances flues
foundations and other similar structures incidental to the user of the Demised Premises
to overhang or protrude beneath the adjoining parts of the Estate

 

4.             The
right for the Tenant of the Demised Premises his or their employees and
visitors to enter pass and repass at all times with or without vehicles over
and along the Common Parts Access Ways and the Forecourts (if any) for the
purposes of access to and egress from the Demised Premises the Forecourts (if
any) and the Designated Car Parks

 

5.             The
right to use the bin store and any other facilities intended by the Landlord to
be used in common on the Estate for the reasonable purpose intended together
with a right of access to and egress from those facilities

 

6.             The
exclusive right to park motor vehicles on the Designated Car Parks and the
Forecourts (if any)

 

7.             The
right at all reasonable times and upon reasonable prior notice to the Landlord
or the Management Company (except in emergency when no notice is required) for
the Tenant and all persons authorized by it with or without tools materials
plant and equipment to enter on adjoining parts of the Estate to carry out any
works to the Demised Premises the person exercising such right making good all
damage to the adjoining parts of the Estate so caused

 

8.             The
right to display signs or plaques at the head of each parking bay

 

 

THE SECOND SCHEDULE

 

(Rights Excepted and Reserved)

 

The following rights are hereby
excepted and reserved to the Landlord:

 

1.             The
right of full free and uninterrupted passage and running of Utilities from and
to the other parts of the Estate and/or the Retained Land through the
Conducting Media (if any) now serving the other parts of the Estate and/or the
Retained Land and now laid or constructed in or under the Demised Premises
together with the right to inspect maintain cleanse repair renew or relay the
same after giving (save in case of emergency) reasonable prior written notice
of at least 48 Hours to enter the Demised Premises for such purpose or purposes
the party so entering causing as little damage and inconvenience as is
reasonably practicable so not to materially affect the Tenant’s use enjoyment
or access and making good promptly any physical damage caused to the Demised Premises

 

2.             The
rights of light air support and shelter and all other easements and rights now
or within the Perpetuity Period belonging to or enjoyed by any other building
constructed on the Estate or the Retained Land provided that such rights and
easements shall not adversely or materially affect the Demised Premises

 

3.             The
right for the eaves gutters spouts downpipes chimney cappings flues foundations
and other similar structures incidental to the user of the other buildings on
the Estate or the Retained Land to overhang or protrude onto or beneath the
Demised Premises

 

4.             The
right at reasonable times and upon reasonable written notice of not less than
48 hours except in case of emergency to enter (or in case of emergency to break
into and enter) the Demised Premises

 

(a)           to
inspect cleanse repair the Conducting Media referred to in paragraph 1 of this
Schedule

 

(b)           to
view the state and condition of and repair and maintain any other parts of the
Estate or the Retained Land where such viewing or work would not otherwise be
reasonably practicable

 

(c)           to
carry out work or do anything whatever comprised within the Landlord’s obligations
in this Lease

 

(d)           take
schedules or inventories of fixtures and other items to be yielded up on the
expiry of the Term and

 

(e)           to
exercise any of the rights granted to the Landlord by this Lease

 

 

THE THIRD SCHEDULE

 

(Covenants by the Tenant)

 

Part 1

Covenants Enforceable by the Landlord and the Management Company

 

1.             To
pay the rents reserved by this Lease on the days and in the manner provided in
this Lease and not to exercise any right or claim to withhold rent or any right
or claim to legal or equitable set-off and if so required in writing by the
Landlord to make such payments by banker’s order or credit transfer to any bank
and account in the United Kingdom that the Landlord may from time to time nominate

 

2.             If
any sums payable by the Tenant pursuant to this Lease are not paid within 14
days of the due date whether formally demanded or not to pay interest at the
rate of four per cent (4%) above National Westminster Bank PLC Base Rate from
time to time from the due date until the date of actual payment and such
interest shall be deemed to be rent due to the Landlord

 

3.             To
yield up at the termination of the Term the Demised Premises together with any
additions or improvements save the Tenant’s fixtures and fittings (which
include for the avoidance of doubt any air conditioning plant or related
equipment) if the Tenant so requires in such good repair order and condition as
shall be consistent in all respects with the due performance and observance of
the covenants on the part of the Tenant and the conditions in this Lease and to
give up all keys of the Demised Premises to the Landlord and to remove all
signs if reasonably requested to do so in writing by the Landlord erected by
the Tenant in upon or near the Demised Premises and to make good any physical
damage caused to the Demised Premises by such removal as soon as is reasonably
practicable

 

4.             To
pay on an indemnity basis all costs charges and expenses (including legal and
surveyors costs and fees) incurred by the Landlord

 

(a)           in
or in contemplation of any proceedings or service of any notice under Sections
146 and 147 of the Law of Property Act 1925 including the reasonable costs
charges and expenses of and incidental to the inspection of the Demised Premises
the drawing up of schedules of dilapidations and notices and any inspection to
ascertain whether any notice has been complied with and such costs charges and
expenses shall be paid whether or not forfeiture for any breach shall be avoided
otherwise than by relief granted by the Court

 

(b)           in
relation to or incidental to every application made by the Tenant for a consent
or licence required by the provisions of this lease whether such

 

 

consent or licence is granted or refused or
proffered subject to any qualification or condition of whether the application
is withdrawn

 

(c)           the
recovery or attempted recovery of arrears of rent or other sums due from the
Tenant

 

5.             To
pay and discharge and indemnify the Landlord against all rates taxes
assessments charges duties and other outgoings whatsoever save those of a
capital nature whether parliamentary parochial or of any other kind which are
now or during the Term assessed or charged on the occupier of the Demised Premises
and where any are assessed on the Demised Premises together with other property
then to pay a fair and reasonable proportion attributable to the Premises which
is to be fairly and reasonably determined by the Landlord except that the
Tenant is not responsible for anything properly payable by the Landlord in
respect of:

 

(1)           dealing
or deemed dealing of its reversionary interest in the Demised Premises

 

(2)           the
rent and other payments payable under this Lease

 

(3)           the
granting of this Lease

 

(4)           profits
or amenities of the Landlord

 

6.             To
pay and indemnify the Landlord against VAT chargeable in respect of any payment
made by the Tenant under any of the terms of or in connection with this lease
or in respect of any payment made by the Landlord where the tenant agrees in
this lease to reimburse the Landlord for such payment provided that the
Landlord shall have previously delivered to the Tenant a valid VAT invoice
addressed to the Tenant for the full amount at least one calendar month before
the payment is due

 

7.             To
pay to the suppliers and indemnify the Landlord against all charges for
electricity gas and other services consumed or used at or in relation to the
Demised Premises (including meter rents)

 

8.             To
keep the Management Company and the Landlord indemnified in respect of charges
for services payable in respect of the Demised Premises which the Landlord or
the Management Company are from time to time during the Term called upon to pay
such sums to be repaid to the Landlord or Management Company on demand

 

9.             To
keep the Demised Premises in good repair at all times during the Term excepting
damage caused by an Insured Risk (other than where the insurance money is
irrecoverable in consequence or any act or default of the Tenant or anyone at
the Demised Premises expressly with the Tenant’s authority) or damage

 

 

caused by a Defect provided further that
nothing in this Lease shall be construed as obliging the Tenant to remedy any
Defect of which existence the Tenant has during the term notified to the
Landlord or any want of repair which is attributable to such Defect which
manifests itself at any time during the Term

 

10.           As
often as may be necessary and in the year preceding the termination of the Term
to redecorate with materials of good quality and in a proper and workmanlike
manner all appropriate internal and external surfaces of the Demised Premises
to the reasonable satisfaction of the Surveyor insofar as they may have
deteriorated through the Tenant’s use and occupation of the Demises Premises
and not normal wear and tear

 

11.           To
clean the Demised Premises and keep them in clean condition and to clean all
the internal and external surfaces of all windows of the Demised Premises as
often as reasonably necessary

 

12            To
permit the Landlord or the Management Company or their respective agents with
or without workmen and other at any convenient hours in the day-time provided
they give the Tenant prior written notice to enter the Demised Premises to take
inventories of the Landlord’s fixtures fittings and appliances and to view the
condition and upon written notice being given to the Tenant specifying any
repair or works necessary to be done for which the Tenant is liable as soon as
is reasonably practicable to comply with the notice and if the Tenant shall not
within thirty days after the service of such notice proceed diligently with the
execution of such repairs or works then to permit the Landlord or the
Management Company or their respective agents with or without workmen materials
and appliances to enter the Demised Premises and cause such repairs or works to
be executed and the proper and reasonable cost shall be payable by the Tenant
with 21 days of written demand

 

13.           To
make good any damage to any part of the Demised Premises caused by any act or
omission or negligence of any occupant of or person using the Demised Premises
and (without prejudice to the generality of the foregoing) not to damage or
interfere with the Conducting Media or any fire-fighting appliances (if any)

 

14.           Not
to bring into the Demised Premises any article which will impose undue
stress or strain to any part of the floor surface or structure or any
article which is or may become dangerous to the building or the occupants
or visitors

 

15.           Not
to do or permit or suffer to be done any act matter or thing on or in respect
of the Demised Premises which contravenes the provisions of the Town and
Country Planning Act 1990 the Planning (Listed Buildings and Conservation
Areas) Act 1990 or any enactment amending or replacing such Acts and to keep
the Landlord and the Management Company indemnified against all claims demands
and liabilities in respect of any such contravention and at the expense of the
Tenant to the extent that this is the responsibility of the Tenant to obtain
all planning

 

 

permissions and to serve all such notices as
may be required for the carrying out of any operations or user on the Demised Premises
which may constitute Development provided that no application for planning
permission shall be made without the previous consent of the Landlord such
consent not being unreasonably withheld or delayed

 

16.           To
comply with and make all reasonable endeavours to ensure that all persons
occupying or visiting the Demised Premises or any part of the Estate shall
comply with the Regulations

 

17.           To
deliver to the Landlord as soon as reasonably practicable a copy of every
notice or other documents of whatever description affecting or likely to affect
the Demised Premises or any part received by the Tenant from any authority or
person whatsoever and at the cost and request of the Landlord to make or join
with the Landlord on making such objections or representations against or in
respect of any notice or other document as the Landlord shall deem expedient

 

18.           To
comply in all respects at the Tenant’s own costs with provisions of any statute
statutory instrument order rule or regulation and of any order direction
or requirement made or given by any planning authority or the appropriate
Minister or Court so far as they affect the Demised Premises and their use and
(so far as they are not the obligations of the Landlord or the Management
Company) so far as the Tenant is liable and as soon as is reasonably
practicable to give notice in writing to the Landlord of the making or giving
of such order direction or requirement

 

19.           As
soon as reasonably practicable after becoming aware of the same to give notice
to the Landlord of any defect in the Demised Premises of which the Tenant is
actually aware which might give rise to an obligation on the Landlord to do or
refrain from doing any act or thing in order to comply with the provisions of
this lease or the duty of care imposed on the Landlord pursuant to the
Defective Premises Act 1972 or otherwise and at all times display and maintain
any reasonable notices which the Landlord may from time to time reasonably
require to be displayed at the Demised Premises

 

20.           Not
to cease carrying on business in the Demised Premises or leave the Demised Premises
continuously unoccupied for more than one month without:

 

(a)           notifying
the Landlord and

 

(b)           providing
such caretaking or security arrangements as the Landlord shall reasonably
require and the insurers shall require in order to protect the Demised Premises
from vandalism theft damage or unlawful occupation

 

21.           Not
to cut maim injure or make any breach in any part of the structure of the
Demised Premises nor in any case to commit or allow any waste or spoil on or

 

 

about the
Demised Premises

 

22.           Not
to make any alteration whatsoever to the Demised Premises save as permitted by
the provisions of paragraphs 23, 24, and 25 hereafter

 

23.           Subject
to the provisions of paragraph 23 not to make any internal non-structural
alterations to the Demised Premises without the previous consent in writing of
the Management Company such consent not to be unreasonably withheld or delayed

 

24.           On
making application for consent under paragraph 23 to submit to the Management
Company such plans block plans elevations and specifications as the Management
Company shall require and to pay the proper and reasonable legal and surveyors
fees of the Management Company in connection with any such application and to
carry out any work authorised only in accordance with such plans block plans
elevations and specifications as the Management Company (acting reasonably)
shall approve in writing in a good and workmanlike manner and with sound and
suitable materials all of which shall be subject to inspection and reasonable
approval by the Management Company

 

25.           Not
to hold on trust for another or (save pursuant to a transaction permitted by
and effected in accordance with the provisions of this lease) part with the
possession of the whole or any part of the Demised Premises or permit another
to occupy the whole or any part of the Demised Premises

 

26.           Not
to assign or charge part only of the Demised Premises and not to underlet the
whole of the Demised Premises

 

27.           Not
to assign the whole of the Demised Premises without the prior consent of the
Landlord such consent not to be unreasonably withheld delayed PROVIDED THAT without prejudice to the generality of the
foregoing:

 

(a)           it
shall be lawful for the Landlord to impose upon the giving of such consent a
condition that the Tenant enters into an agreement with the Landlord in the
form annexed at the Eighth Schedule; and

 

(b)           for
the purpose of s19(1A) of the Landlord & Tenant Act 1927 (as inserted
by s22 of the Landlord & Tenant (Covenants) Act 1995) it is agreed
between the Landlord and the Tenant both that such consent shall not be
regarded as being unreasonably withheld because of the existence at the time of
the application for consent of all or any of the circumstances set out below
paragraphs (i) to (v) and that such consent shall not be given
subject to unreasonable conditions if it contains a condition that it shall
lapse if all or any of the circumstances set out below in paragraphs
(i) to (v) are in existence at any time after the giving of such
consent and before the completion of the transaction to which such consent has
been given

 

 

(i)            the
assignee will not furnish the Landlord with a guarantee in the form of the
Guarantor’s Covenants from a guarantor acceptable to the Landlord PROVIDED THAT
if the Tenant shall disagree with the Landlord’s determination of whether or
not a proposed guarantor is acceptable for these purposes the Tenant shall
subject to the provisions of paragraph 29 below be entitled to have the
determination reviewed by an independent expert appointed and acting reasonably
in accordance with the provisions of paragraph 29 below (“the Expert”)

 

(ii)           the
assignee will not deposit with the Landlord an amount equal to three months’
rent due under this Lease at the time of the assignment

 

(iii)          the
Demised Premises are not in the state and condition required by full compliance
with the terms of the covenants on the part of the Tenant contained in this
Lease

 

(iv)          there
is a subsisting breach of any of the other covenants on the part of the Tenant
contained in this Lease

 

28.           If the Tenant is
entitled to have any determination of the Landlord reviewed by the Expert and
wishes there to be such review then:

 

(a)           the Tenant shall send
the Landlord written notice of his wish stating the name and address of the
person the Tenant would wish to be appointed as the Expert

 

(b)           the Expert shall be a
Chartered Surveyor and a member of the Royal Institution of Chartered Surveyors

 

(c)           If the Landlord does
not forthwith on receipt of the Tenant’s said notice agree to the appointment
of the person proposed by the Landlord the Expert may be appointed by the
President for the time being of the Royal Institution of Chartered Surveyors
(or such other person as is delegated by him to make such appointments) on the
application of either the Landlord or the Tenant provided that nothing herein
shall prevent the appointment or replacement of the Expert by agreement between
the Landlord and the Tenant at any time

 

(d)           the Expert shall act as
an expert not as an arbitrator

 

(e)           the Expert shall be
entitled to make his own determination of the matter in dispute between the
Landlord and the Tenant and this determination shall

 

 

be substituted
for the original determination of the Landlord and shall (if contrary) be
binding on the Landlord and the Tenant

 

29.           On a permitted
assignment to a limited company and if the Landlord shall reasonably so require
to procure that at least two directors of the company or some other guarantor
or guarantors acceptable to the Landlord enter into direct covenants with the
Landlord in the form of the Guarantor’s Covenants contained in this lease with
the Assignee substituted for ‘the Tenant’

 

30.           Within twenty-eight
days of any assignment or charge or any transmission or other devolution
relating to the Demised Premises to produce for registration with the Landlord’s
solicitor such deed or document or a certified copy of it and to pay the
Landlord’s solicitor’s reasonable charges for the registration of every such
document such charges not being less than £30 (thirty pounds)

 

31.           Notwithstanding the
provisions of the preceding paragraphs the Tenant may share the occupation of
the whole or any part of the Demised Premises with a company which is a member
of the same group as the Tenant (within the meaning of Section 42 of the 1954
Act) for so long as both companies shall remain members of that group or and
for so long as such share ownership remains and otherwise than in a manner that
transfers or creates a legal estate

 

32.           Not to interfere with
or obstruct in the performance of the duties from time to time imposed upon him
by the Management Company by any employee or servant of the Management Company

 

33            Not to use or occupy
nor permit the Demised Premises to be used or occupied for any purpose
whatsoever other than the Permitted User

 

34.           If called upon to do so
to produce or furnish to the Landlord or the Surveyor:

 

(a)                                  all
plans documents and other evidence as the Landlord may require in order to
satisfy itself that the provisions of this lease have been complied with

 

(b)                                 such
information as may reasonable be requested in writing in relation to any
pending or intended step under the 1954 Act

 

35.           To permit the Landlord
at any time during the last six months of the Contractual Term and at any time
thereafter or sooner if the rents or any part of them shall be in arrear and
unpaid for longer than twenty-eight days to enter upon the Demised Premises and
affix and retain anywhere upon the Demised Premises a notice for reletting the
Demised Premises and during such period to permit persons with the written
authority of the Landlord or its agents at reasonable times of the day to view
the Demised Premises so long as reasonable prior written notice of not less

 

 

than 48 hours is given to
the Tenant

 

36.           Not to stop up darken or obstruct any windows
or light belonging to the Demised Premises

 

37.           To take all reasonable steps at the cost and
expense of the Landlord to prevent any new window light opening doorway path
passage pipe or other encroachment or easement being made or acquired in
against out of or upon the Demised Premises and to notify the Landlord as soon
as practicable if any such encroachment or easement shall be made or acquired
(or attempted to be made or acquired) and at the reasonable request of the
Landlord to adopt such means as shall be required to prevent such encroachment
or the acquisition of any such easement

 

38.           To ensure that at all times the Landlord has
and the local Police force has written notice of the name home address and home
telephone number of at least two keyholders of the Demised Premises

 

39.           To permit upon reasonable prior written
notice at any time during the Term prospective purchasers of or agents
instructed in connection with the sale of the Landlord’s reversion or of any
other interest superior to the Term to view the Demised Premises without
interruption provided they are authorised in writing by the Landlord or its
agents

 

40.           To permit the Landlord at any time during the
Term to enter upon the Demised Premises and affix and retain anywhere upon the
Demised Premises a notice for selling the Landlord’s reversion or of any other
interest superior to the Term and during such period to permit persons with the
written authority of the Landlord or its agent at reasonable times of the day
to view the Demised Premises so long as prior written notice is given to the
Tenant of not less than 48 hours provided that any such notice does not obscure
the windows doors or any fascia or trading sign of the Tenant and clearly
indicates the interest being disposed of

 

41.           Within 21 days of the death during the Term
of any Guarantor or of such person becoming bankrupt having a receiving order
made against him having an interim receiver appointed in respect of his
property or having a receiver appointed under the Mental Health Act 1983 or
being a company passing a resolution to wind up or entering into liquidation
having a receiver appointed having an administration order made or upon any
person becoming entitled to exercise in respect of it the powers of an
administrative receiver to give notice of this fact to the Landlord and if so
reasonably required by the Landlord at the expense of the Tenant within
twenty-eight days to procure some other person acceptable to the Landlord to
execute a guarantee in respect of the Tenant’s obligations contained in the
lease in the form of the Guarantor’s covenants contained in this lease

 

 

THE
THIRD SCHEDULE

 

(Covenants
by the Tenant)

 

Part 2

Covenants
enforceable by the Landlord the Management

Company
and tenants of the Properties

 

 

1.             Not to obstruct at any time any part of the Access Ways so far as is reasonably practicable

 

2.             Not to park or permit the parking of motor vehicles upon the Estate other than the Designated
Car Parks or the Forecourts (if any)

 

3.             Not to use or permit
or suffer the Demised Premises to be used for any illegal immoral or improper
purpose and not to knowingly do permit or suffer on the Demised Premises any
act or thing which is or may become a nuisance damage annoyance or
inconvenience to the Landlord and to pay all reasonable and proper (or a fair
proportion) costs charges and expenses of abating a nuisance and executing all
such work as may be necessary for abating a nuisance or for carrying out works
in obedience to a notice served by a local authority insofar as they are the
liability of or wholly or partially attributable to the default of the Tenant

 

4.             Not to exhibit any
notice advertisement name place notice for sale or placard of any kind upon the
Demised Premises or upon the other parts of the Estate save for a sign on the
Demised Premises stating the Tenant’s name and business and save clause 9 of
the First Schedule

 

5.             Not to bring keep
stack layout store or deposit any goods materials refuse or other objects
outside the Demised Premises whatsoever on the Estate except in those areas as
notified for such use by the Management Company

 

6.             Not to keep or suffer
to remain on the Demised Premises any animals or birds nor to use any part of
the Demised Premises for the purposes of breeding or boarding of animals or
birds

 

7.             Not to knowingly
permit to be discharged into any Conducting Media any oil or grease or any
deleterious objectionable dangerous poisonous or explosive matter

 

 

THE FOURTH SCHEDULE

 

(Covenant on the Part of the Landlord and the Management Company)

 

1.             Quiet
Enjoyment

 

That the
Tenant shall peaceably hold and enjoy the Demised Premises and the rights
granted by this Lease during the Term without any lawful interruption from or
by the Landlord any superior landlord or any person lawfully claiming under or
in trust for it or by title paramount

 

2.             Defects

 

2.1           Not
to charge or seek to charge the Tenant through the service charge payable by
the Tenant otherwise the cost of rectification of any inherent or latent defect
or Defect in the construction of the Demised Premises the Estate or Estate
facilities which manifests itself

 

3.             To
manage the Estate in the interests of good estate management and at the
Tenant’s reasonable request to enforce covenants on the part of other persons
in the Estate for the benefit of the Estate and to maintain the same as a high
class development

 

4.             The
Landlord covenants that it will as soon as reasonably practicable and at its
own cost and expense undertake any works in relation to the Demised Premises in
respect of the Defects and to comply with any environmental regulation
condition or legislation provided always that no such cost or expenditure be
recharged to the tenants of the Estate via the Service Charge or otherwise

 

5.             In
this clause:

 

“Contamination”
means the presence in, on, under over the Demised Premises of any Hazardous
Material at any time whether before, on or after the date of this Lease and/or
the migration or other escape of any such Hazardous Materials from the Demised
Premises at any time whether before, on or after the date of this Lease save
where such Contamination arises from the acts or omissions of the Tenant

 

“Hazardous
Material” means any substance, whether in solid, liquid or gaseous form, which
is capable of causing harm to human health or to the environment (that is to
say, air, water and land and any living organism or eco-system supported by any
of them) whether on its own in combination with any other substance

 

 

5.1           Notwithstanding any
other provision of this Lease it is acknowledged and agreed between the
Landlord and the Tenant as follows:

 

5.1.1        The Tenant shall have no
liability under the terms of this Lease or otherwise howsoever arising in
respect of Contamination;

 

5.1.2        The Tenant shall not be
required by this Lease to make good rectify remove treat or make harmless any
Contamination or to pay the costs of doing so;

 

5.1.3        This acknowledgement is
made in accordance with the relevant statutory guidance to exclude the Tenant
(and all persons deriving title through or under the Tenant) from liability as
an appropriate person to bear responsibility for any costs and liability
whatsoever arising from any Contamination

 

5.2           The Landlord shall
indemnify the Tenant (and those claiming title through or under it) against any
costs claims losses and liabilities suffered or incurred by the Tenant arising
directly or indirectly from Contamination

 

5.3           If and whenever the
Landlord during the Term requires to carry out any works in respect of the
Contamination so that the Tenant’s use or access to enjoyment of the Demised
Premises is affected the Tenant may terminate this Lease forthwith or elect to
not pay the rents set out in clause 2.1 of the Lease until such remediation
work is carried out to the Tenant’s reasonable satisfaction

 

5.4           For the avoidance of
doubt the Tenant shall remain liable for any Contamination which results to the
Demised Premises or the Estate for any Hazardous Material brought on to the
Demised Premises or the Estate by the Tenant its employees visitors and licensees

 

 

THE FIFTH SCHEDULE

 

(The Services)

 

1.             To maintain in good
and substantial repair and condition and to repair replace where beyond
economic repair resurface cleanse and keep open and free from obstructions and
detritus the Access Ways the Forecourts (if any) and the Designated Car Parks

 

2.             To keep the Landscaped
Areas in a proper state of repair and condition and suitably landscaped and
planted

 

3.             To clean maintain
renew and repair such of the Conducting Media now or during the Perpetuity
Period laid or constructed in or under the Estate and used by the Demised
Premises in common with any other buildings or part thereof at the Estate but
for the avoidance of doubt not those Conducting Media which exclusively serve
and lie in on or under the Demised Premises or those for which some other
authority company or person has responsibility

 

4.             Following
construction forever thereafter to maintain any boundary walls and fences of
the Estate but for the avoidance of doubt not those which are the
responsibility of owners or occupiers of the buildings

 

5.             Where appropriate to
take all necessary steps to clean redecorate repaint and otherwise treat and
maintain on a regular basis the Estate

 

6.             To provide and
operate a means of collection storage and disposal of refuse and rubbish
(including litter and pest control) arising or occurring on the Estate
including the provision of a storage area (within such other suitable area
allocated and notified by the Management Company within the Estate) for the
storage of a waste bin by the tenants

 

7.             To provide suitable
hard and soft landscaping and planting and trees and/or shrubs and to keep such
parts of the Landscaped Areas or the Estate as in the reasonable opinion of the
Management Company appropriate therefor laid out with hard and soft landscaping
and planting and trees and/or shrubs in good order and condition and properly
tended maintained cultivated and planted including where appropriate or
necessary reconstruction or replanting

 

8.             To effect maintain
and renew such insurances for the Estate where necessary on commercial terms
and in amounts to be reasonably determined by the Management Company against
loss or damage by fire lightning explosion aircraft (other than hostile
aircraft) and other aerial devices or articles dropped therefrom earthquake
riot civil commotion and malicious damage storm or tempest flood

 

 

bursting or overflowing
or water tanks apparatus or pipes impact by road vehicles and against public
liability and damage to property and injury or death of persons and all such
other risks as the Management Company may from time to time reasonably consider
desirable in such sum (including professional fees and cost of demolition) as
the Management Company may reasonably consider appropriate

 

9.             To effect maintain
and renew such insurances on adequate and commercial terms and in amounts to be
reasonably determined by the Management Company against any appropriate
liabilities to third parties or any occupier of properties within the buildings
on account of the condition of the Estate or any part thereof and against such
other perils as the Management Company shall reasonably deem appropriate

 

10.           If the Estate shall be
destroyed or damaged by an Insured Risk then subject to obtaining all necessary
planning consents or permissions with all convenient speed to lay out all
insurance moneys received in rebuilding or reinstating the Estate in
substantially the same form or with such variations as the Management Company
may reasonably require and if the insurance moneys shall be insufficient to
make good any deficiency out of its own monies save to the extent that such
deficiency is due to the act or default of the Tenant or other occupants of the
buildings or any of their servants agents or licensees

 

11.           To provide any water
fuel oil gas electricity and other energy and supply services as may be
properly and reasonably required for use in running or operating any of the
services to the Estate

 

12.           To light to an adequate
and sufficient standard throughout such periods of the day and night as may be
requisite all parts of the Estate to which access is available in fact or by
right

 

13.           To erect place maintain
renew and replace and where relevant operate upon the Estate as often as may be
necessary direction signs and notices seats and other fixtures fittings and
chattels as the Management Company acting reasonably shall deem appropriate for
the Estate in the interests of good estate management

 

14.           To administer and
manage the Estate (including the employment of all such managers professional
and other advisers in connection therewith as it may acting reasonably deem
necessary) provided that if the Management Company shall fulfil any such
functions itself it shall be entitled to charge to reasonable fee therefor
(together with Value Added Tax provided that the Management Company provides
the Tenant with a VAT invoice one calendar month before the payment due date)

 

15.           Carrying out all other
work or providing goods and services of any kind whatsoever which from time to
time may reasonably be considered necessary or

 

 

desirable in
connection with the provision of the Services

 

16.           Carrying out any works
to the Estate comply with any statute (other than works for which any owner or
occupier of the buildings is responsible) and to take any reasonable steps
deemed desirable or expedient by the Management Company for complying with
making representations against or otherwise contesting the incidence of the
provisions of any statute including those concerning town planning public
health fire precautions highways streets drainage or other matters which may
affect the Estate (other than such matters which relate only to owners or
occupiers of any adjoining or neighbouring property)

 

17.           The payment of all
existing and future rates (including water rates) taxes assessments charges and
outgoings whether parliamentary local or otherwise whether of the nature of
capital revenue and even though of a wholly novel character which now be rated
taxed assessed charged or imposed upon the Estate

 

 

THE SIXTH
SCHEDULE

 

(Provisions
governing the Service Charge)

 

Part 1

(Costs and
expenses included in the Service Charge)

 

The aggregate of all costs
charges commissions premiums fees expenses interest taxes and other outgoings
whatsoever reasonably and properly incurred paid or provided for by the
Management Company in or in connection with the following:-

 

1.             The
provision of the Services

 

2.             The
provision supplying and running of water gas electricity telephone
telecommunications and all other services whatsoever required in respect of the
Estate and which are not the sole responsibility of any one occupier

 

3.             Providing
operating inspecting testing servicing overhauling repairing maintaining and
cleaning and when requisite modifying renewing or replacing any security
surveillance or monitoring apparatus which the Management Company acting
reasonably may from time to time supply for the general benefit of the Estate

 

4.             The
provision of a security service or other security arrangements for the general
benefit of the Estate as the Management Company may acting reasonably deem
appropriate from time to time

 

5.             Employing
or obtaining the services (whether on a full or part time basis) of such
persons as the Management Company reasonably considers necessary or desirable
in the interests of good estate management for the provision of the Services

 

6.             Making
representations in respect of or otherwise contesting or dealing with any
notice regulation or order of any competent local or other authority in
relation to the Estate and also consulting with any such authority in relation
to any planning applications or other planning matters relating to the Estate
in order to ensure that the Management Company is adequately informed in
relation to such applications or other matters

 

7.             The
payment of the rentcharges imposed by the Transfer dated 17th October 2000 made
between (1) Derby City Council and (2) the Landlord

 

8.             The
administration and management of the Estate and the performance of the
Management Company’s obligations in respect thereof pursuant to the provisions
of this deed including the proper and reasonable fees charges costs expenses
and disbursements of any solicitors accountants surveyors valuers architects or
other

 

 

professional advisers whom the Management
Company may from time to time reasonably employ in connection therewith and in
the preparation of statements or certificates and the auditing of the Service
Charge

 

9.             The
carrying out of all other works or the doing of any other act or thing or
providing services of any kind which the Management Company may from time to
time reasonably consider necessary or desirable for the purpose of the
maintenance or the good overall management of the Estate or its amenities or
otherwise for the general benefit of the Estate and Buildings or their occupiers
Provided that in respect of any item which (i) has not been incurred as a
material sum in any previous Financial Year and is not within any category of
expenditure previously mentioned in this Schedule and (ii) constitutes
a material sum in the reasonable opinion of the Management Company it shall be
a condition precedent to the ability of the Management Company to enforce
payment by the Tenant of the Service Charge in respect of such item that it
shall be approved by a special resolution of the Management Company

 

10.           Such
sum (if any) by way of reasonable provision for anticipated future expenditure
in respect of any costs mentioned in this Schedule as the Management
Company shall reasonably decide should be reserved in a sinking fund against
such expenditure as being prudent and reasonable in the circumstances which sum
shall (so far as actually paid) from time to time be deposited by the
Management Company with such bank or building society as the Management Company
may select in a prudent and reasonable way (provided that the Management
Company shall not be responsible to the Tenant for obtaining the best rate of
interest upon such sums) and all interest earned thereon in any Financial Year
shall be deducted in calculating the Service Charge for the next Financial Year
subject however to the deduction of any tax which may be payable in respect of
such interest

 

Provided always that the costs incurred in providing the following
services shall not be taken into account in calculating the Service Charge:

 

(a)           the
remedying of any Defect in the Estate or the Demised Premises

 

(b)           the
cost of any works where the said cost is recoverable by any third party for any
reason whatsoever

 

(c)           the
initial capital cost of the construction in connection with the buildings on
the Estate or the Demised Premises or any plant or equipment serving the same

 

 

THE SIXTH
SCHEDULE

 

(Provisions
governing the Service Charge)

 

Part 2

(Payment
of the Service Charge)

 

1.             The
Management Company shall as soon as convenient but not later than six months
after the Computing Date prepare an account showing the Annual Expenditure for
the Financial Year ending on that Computing Date and containing a fair full and
accurate summary of the expenditure referred to in it and upon such account being
certified by an independent auditor it shall be conclusive evidence for the
purposes of this Lease of all matters of fact referred to in the account save
where there is a manifest error

 

2.             The
Tenant shall pay for the period from the [16 October 2003] to the
Computing Date next following the Initial Provisional Service Charge the first
payment to be paid on [demand] and the subsequent payments to be made in
advance on the Computing Date in each year (or by such other instalments as the
Management Company may reasonably require)

 

3.             The
Tenant shall pay for the next and each subsequent Financial Year after the
first Computing Date a provisional sum calculated upon an reasonable and proper
estimate by the Management Company what the Annual Expenditure is likely to be
for that Financial Year as notified in writing to the Tenant prior to the
commencement of each Financial Year by four equal instalments (or such other
instalments as the Management Company may reasonably require) in advance on the
usual quarter days in each year

 

4.             If
the provisional sum in respect of any Financial Year is not notified to the
Tenant before the commencement of such Financial Year the Tenant shall continue
to pay quarterly instalments for such Financial Year at the rate last payable
by it until such notification is made and thereupon the Tenant shall pay to the
Management Company the difference between the amount already paid by the Tenant
for that Financial Year and the amount which would have been payable if such
notification had been made

 

5.             If
the Service Charge for any Financial Year shall:-

 

(a)           exceed
the provisional sum for that Financial Year the excess shall be due to the
Management Company within 14 days of written demand or

 

(b)           be
less that such provisional sum the overpayment shall be credited to the Tenant
against the next quarterly payment of the Service Charge

 

 

6.             The
audited statement above referred to shall (save in the case of manifest error)
be final and binding on the parties and Tenant shall not be entitled to object
to any item comprised in the Annual Expenditure by reason that the materials
work or service in question might have been provided or performed at a lower
cost or by reason that the item in question was not included in the estimate
above referred to but the Tenant shall be entitled to inspect vouchers in
respect of costs incurred by the Management Company and take copies of them

 

7.             The
Management Company may withhold add to extend vary or make any alteration in
the rendering of the Services or any of them from time to time provided that
the same complies with the principles of good estate management and is
reasonable in all the circumstances

 

8.             If
at any time during the Perpetuity Period the total property enjoying or capable
of enjoying the benefit of any Services is increased or decreased on a
permanent basis or the benefit of any of the Services is extended on a like
basis to any adjoining or neighbouring property or if some other event occurs a
result of which is that the Service Charge Share is no longer appropriate to the
Demised Premises the Service Charge Share shall be varied by the Management
Company acting reasonably with effect from the Computing Date following such
event by agreement between the parties or in default of agreement within 3
months of the first proposal for variation made by the Management Company
acting reasonably in such manner as shall be fair and reasonable in the light
of the event in question

 

 

THE
SEVENTH SCHEDULE

 

(Matters
to which the Demised Premises are subject)

 

All rights easements quasi-easements restrictions covenants and
liabilities affecting the Demised Premises mentioned in Title Number DY330312
dated 16 October 2002

 

 

THE EIGHTH
SCHEDULE

 

(Authorised
Guarantee Agreement)

 

This Guarantee Agreement is
made the
            day of
               19        

 

Between:

 

(1)           [                                                  ]
of
[                              ]

(hereinafter called “the Landlord”) which
expression where the context admits includes successors and assigns) and

 

(2)           [                                                  ]
of
[                              ]

(hereinafter called “the Tenant”)

 

Whereas:

 

(1)           The
reversion immediately expectant on the determination of the term created by the
tenancy specified in the Schedule hereto (hereinafter called “the Lease”)
is now/remains vested in the Landlord

 

(2)           The
term created by the Lease is now/remains vested in the Tenant

 

(3)           The
Tenant wishes to assign the residue of the said term to 5.9 (hereinafter called
“the Assignee”) but is required by of the Lease to obtain the consent of the
Landlord hereto

 

(4)           The
Landlord has consented to the said assignment upon the condition that the
Tenant enters into this guarantee agreement

 

IT IS HEREBY AGREED
as follows:

 

1.             In
pursuance of the condition mentioned in recital (4) above the Tenant as
principal debtor guarantees that the Assignee will duly observe and perform the
covenants of the Tenant under the Lease from the date of the assignment of the
term created by the Lease to the Assignee until such time as the Assignee is
released from those covenants by virtue of the provisions of the Landlord and
Tenant (Covenants) Act 1995 and that during such time if the Assignee shall
make any default in the payment of rents or in observing or performing any of
the covenants or other terms of the Lease the Tenant will pay the rents and 

 

 

observe or
perform the covenants or terms in respect of which the Assignee shall be in
default and make good to the Landlord on demand and indemnify costs and
expenses arising or incurred by the Landlord as a result of such non-payment
non-performance or non-observance notwithstanding:

 

(a)           any
time or indulgence granted by the Landlord to the Assignee or any neglector
forbearance of the Landlord in enforcing the payment or the rents or the
observance or performance of the covenants or other terms of the Lease or any
refusal by the Landlord to accept rents tendered by or on behalf of the
Assignee at a time when the Landlord was entitled (or would, after service of a
notice under the Law of Property Act 1925 Section 146 have been entitled)
to re-enter the premises demised by the Lease

 

(b)           that
the terms of the Lease may have been varied by agreement between the parties

 

(c)           that
the Assignee shall have surrendered part of the premises demised by the Lease
in which event the liability of the Tenant under this Deed shall (so far as the
law allows) continue in respect of the part of the premises not so surrendered
after making any necessary apportionments under the Law of Property Act 1925 Section 140,
and

 

(d)           any
other act or thing by which but for this provision the Tenant would have been
released

 

2.             The
Tenant covenants with the Landlord that in the event of the tenancy assigned by
it being disclaimed it will enter into a new tenancy of the property demised by
the Lease for a term commencing on the date of disclaimer and ending on the
term date of the Lease and upon the terms and conditions of the Lease so far as
may be but so that in any event the Tenant’s covenants are no more onerous than
those contained in the Lease

 

SCHEDULE

Particulars
of lease or other tenancy

 

IN WITNESS whereof
this deed has been executed but remains undelivered until the day and year
first above written

 

EXECUTED as a Deed
on behalf of

[                                                                               ]

by:-

 

 

Director

 

Director/Secretary

 

 

EXECUTED as a Deed
on behalf of

[                                                                               ]

by:-

 

 

Director

 

Director/Secretary

 

 

THE NINTH
SCHEDULE

 

(the
Guarantor’s Covenants)

 

The Guarantor covenants with the person first named in this lease and
without the need for any express assignment with all its successors in title
that:

 

1.             To pay observe and perform

 

During the Term the Tenant shall punctually
pay the rents and observe and perform the covenants and other terms in this
lease and if at any time during the Term the Tenant shall make any default in
payment of the rents or in observing or performing any of the covenants or
other terms of this lease the Guarantor will pay the rents and observe or
perform the covenants or terms in respect of which the Tenant shall be in
default and make good to the Landlord on demand and indemnify the Landlord
against all losses damages costs and expenses arising or incurred by the
Landlord as a result of such non-payment non-performance or non-observance
notwithstanding:

 

(a)           any
time or indulgence granted by the Landlord to the Tenant or any neglect or
forbearance of the Landlord in enforcing the payment of the rents or the
observance or performance of the covenants or other terms of this lease or any
refusal by the Landlord to accept rents tendered by or on behalf of the Tenant
at a time when the Landlord was entitled for would after service of a notice
under the Law of Property Act 1925 Section 146 have been entitled) to
re-enter the Demised Premises

 

(b)           that
the terms of this lease may have been varied by agreement between the parties

 

(c)           that
the Tenant shall have surrendered part of the Demised Premises in which event
the liability of the Guarantor under this lease shall continue in respect of
the part of the Demised Premises not so surrendered after making any necessary
apportionments under the Law of Property Act 1925 Section 140 and

 

(d)           any
other act or thing by which but for this provision the Guarantor would have
been released

 

2.             To take a lease
following disclaimer

 

If at any time during the Term the Tenant
(being an individual) shall become bankrupt or (being a company) shall enter
into liquidation and the trustee in bankruptcy or liquidator shall disclaim
this lease the Guarantor shall if the Landlord shall by notice within sixty
days after such disclaimer so require take

 

 

from the Landlord a lease of the Demised
Premises for the residue of the Term which would have remained had there been
no disclaimer at the Rent then being paid under this lease and subject to the
same covenants and terms as in this lease (except that the Guarantor shall not
be required to procure that any other person is made a party to that lease as
guarantor) such new lease to take effect from the date of such disclaimer and
in such case the Guarantor shall pay the costs of such new lease and execute
and deliver to the Landlord a counterpart of it

 

3.             To make payments following disclaimer

 

If this lease shall be disclaimed and for any
reason the Landlord does not require the Guarantor to accept a new lease of the
Demised Premises the Guarantor shall pay to the Landlord on demand an amount
equal to the rents for the period commencing with the date of such disclaimer
and ending on whichever is the earlier of the following dates:

 

(a)           the
date six months after such disclaimer and

 

(b)           the
date (if any) upon which the Demised Premises are relet

 

 

THE TENTH
SCHEDULE

 

(the
Insurance Covenants)

 

1              Warranty re
Convictions

 

The Tenant warrants that prior to the
execution of this lease it has disclosed to the Landlord in writing any
conviction judgement or finding of any court or tribunal of which it is aware
relating to the Tenant (or any director other officer or major shareholder of
the Tenant) of such a nature as to be likely to affect the decision of any
insurer or underwriter to grant or to continue insurance of any of the Insured
Risks

 

2              Landlord to
insure

 

The Landlord covenants with the Tenant to
insure the Demised Premises in the joint names of the Landlord and Tenant where
possible unless such insurance shall be vitiated by any act of the Tenant or by
anyone at the Demised Premises expressly or by implication with the Tenant’s
authority

 

3              Details of the
Insurance

 

Insurance shall be effected:

 

(a)           in
such insurance office or with such reputable and substantial underwriters and
through such agency as the Landlord (acting reasonably) may from time to time
decide

 

(b)           for
the following sums:

 

(i)            such
reasonable and proper sum as the Landlord shall from time to time be advised as
being the full cost of rebuilding and reinstatement including architects’
surveyors’ and other professional fees payable upon any applications for
planning permission or other permits or consents that may be required in
relation to the rebuilding or reinstatement of the Demised Premises the cost of
debris removal demolition site clearance accommodation works any works that may
be required by statute and incidental expenses and

 

(ii)           the
loss of Rent payable under this lease from time to time (having regard to any
review of rent which may become due under this lease) for three years or such
longer periods (not exceeding four years) the Landlord may from time to time
reasonably deem to be necessary for the purposes of the planning and carrying
out the rebuilding or reinstatement

 

 

(c)           against
damage or destruction by the Insured Risks to the extent that such insurance
may ordinarily be arranged for properties such as the Demised Premises with an
insurer of repute and subject to such excesses exclusions or limitations as the
insurer reasonably requires and are accepted as common practice in the
insurance market.

 

4              Payment of
Insurance Rent

 

The Tenant shall pay the Insurance Rent on
the date of this lease for the period from and including the Rent Commencement
Date to the day before the next policy renewal date following the date of this
lease and subsequently the Tenant shall pay the Insurance Rent within twenty
one days of demand and (if so demanded) in advance of the policy renewal date.

 

5              Suspension of
Rent

 

(a)           If
and whenever during the Term:

 

(i)            the
Demised Premises or any part of them or any accessway or services are damaged
or destroyed by any of the Insured Risks (except one against which insurance
may not ordinarily be arranged with an insurer of repute for properties such as
the Demised Premises unless the Landlord has in fact insured against the risk)
so that the Demised Premises or any part of them are unfit for occupation or
use or any of the Estate Roads or the Conducting Media in on under or over the
Adjoining Property that serve the Demised Premises are damaged or destroyed so
that the Demised Premises or any part of them are unfit for immediate
occupation or use and

 

(ii)           payment
of the insurance money is not refused in whole or in part by reason of any act
or default of the Tenant or anyone at the Demised Premises expressly or by
implication with the Tenant’s authority

 

the provisions of paragraph 5(b) shall
have effect

 

(b)           When
the circumstances contemplated in paragraph 5(a) arise the Rents and the
Service Charge or a fair and proper proportion of the Rents and the Service
Charge according to the nature and the extent of the damage sustained shall
cease to be payable until the Demised Premises or the affected parts or the
Estate Roads or Conducting Media shall have been rebuilt or reinstated so that
the Demised Premises or the affected part are made fit for immediate occupation
or use by the Tenant or until the expiration of three years from the
destruction or damage whichever period

 

 

is the shorter (the amount of such proportion
and the period during which the Rents and Service Charge shall cease to be
payable to be determined by the Surveyor acting as an expert and not as an
arbitrator)

 

6              Reinstatement and
Termination if prevented

 

(a)           If
and whenever during the Term:

 

(i)            the
Demised Premises or any part of them are damaged or destroyed by any of the
Insured Risks (except one against which insurance may not ordinarily be
arranged with an insurer of repute for properties such as the Demised Premises
unless the Landlord has in fact insured against that risk) or any of the Estate
Roads or the Conducting Media in on under or over the Adjoining Property that
serve the Demised Premises are damaged or destroyed so that the Demised Premises
or any part of them are unfit for immediate occupation or use by the Tenant and

 

(ii)           the
payment of the insurance money is not refused in whole or in part by reason of
any act or default of the Tenant or anyone at the Demised Premises expressly or
by implication with the Tenant’s authority

 

the Landlord shall use its best endeavours to
obtain all planning permissions or other permits and consents that may be
required under the Planning Acts or other statutes (if any) to enable the
Landlord to rebuild and reinstate (‘Permissions’)

 

(b)           Subject
to the provisions of paragraphs 6(c) and 6(d) the Landlord shall as
soon as the Permissions have been obtained or immediately where no Permissions
are required apply all money received in respect of such insurance (except sums
in respect of loss of Rent) and make up any deficiency out of its own monies in
rebuilding or reinstating the Demised Premises the Common Parts or Conducting
Media so destroyed or damaged PROVIDED that in the event of substantial damage
to or destruction of the Demised Premises by an Insured Risk the above
provisions shall have effect as if they obliged the Landlord (subject as
provided above) to rebuild and reinstate the Demised Premises the Common Parts
or Conducting Media either in the form in which they were immediately before
the occurrence of the destruction or damage or with such modifications as

 

(i)            may
be required by any competent authority as a condition of the grant of any of
the Permissions and/or

 

 

(ii)           the
Landlord may make to reflect then current good building practice and/or

 

(iii)          the
Landlord may otherwise reasonably require

 

but so that the Landlord shall in any event
provide in the Demised Premises as rebuilt and reinstated accommodation for the
Tenant no less convenient and commodious than those which existed immediately
before the occurrence of the destruction or damage

 

(c)           For
the purpose of this paragraph the expression “Supervening Events” means:

 

(i)            the
Landlord has failed despite using its best endeavours to obtain the Permissions

 

(ii)           any
of the Permissions have been granted subject to a lawful condition with which
in all the circumstances it would be unreasonable to expect the Landlord to
comply

 

(iii)          some
defect or deficiency in the site upon which the rebuilding or reinstatement is
to take place would mean that the same could only be undertaken at a cost that
would be unreasonable in all the circumstances

 

(iv)          the
Landlord is unable to obtain access to the site for the purposes of rebuilding
or reinstating

 

(v)           the
cost of rebuilding or reinstating would exceed the amount received in respect
of the insurance effected by the Landlord pursuant to this paragraph (expect
sums in respect of loss of Rent)

 

(vi)          the
rebuilding or reinstating is prevented by war act of God Government action
strike lock-out or

 

(vii)         any
other circumstances beyond the control of the Landlord

 

(d)           the
Landlord shall not be liable to rebuild or reinstate the Demised Premises or
the Common Parts or Conducting Media if and for so long as such rebuilding or
reinstating is prevented by Supervening Events

 

(e)           If
upon the expiry of a period of twelve months commencing on the date of the
damage or destruction the Demised Premises or the Common Parts or Conducting Media
have not been rebuilt or reinstated so as to be fit for the Tenant’s immediate occupation
and use either party may by notice

 

 

served at any time after the expiry of such
period invoke the provisions of paragraph 6(f) and to terminate the Lease
forthwith

 

(f)            Upon
service of a notice in accordance with paragraph 6(e):

 

(i)            without
prejudice to any rights or remedies that may have accrued to either party
against the other and

 

(ii)           all
money received in respect of the insurance effected by the Landlord pursuant to
this paragraph shall belong to the Landlord

 

7              Tenant’s
Insurance Covenants

 

The Tenant covenants with the Landlord

 

(a)           to
comply with all the reasonable requirements and recommendations of the insurers

 

(b)           not
to do or omit anything that could cause any policy of insurance on or in
relation to the Demised Premises to become void or voidable wholly or in part
nor (unless the Tenant shall have previously notified the Landlord and have
agreed to pay the increased premium) anything by which additional insurance
premiums may become payable

 

(c)           to
keep the Demised Premises supplied with such fire fighting equipment as the
insurers and the fire authority may require and as the Landlord may reasonably
require and to maintain such equipment to their satisfaction and in efficient
working order and as often as necessary to cause any sprinkler system and other
fire fighting equipment to be inspected by a competent person

 

(d)           not
to store or bring onto the Demised Premises any article substance or
liquid of a specially combustible inflammable or explosive nature and to comply
with the requirements and recommendations of the fire authority and the
reasonable requirements of the Landlord as to fire precautions relating to the
Demised Premises

 

(e)           not
to obstruct the access to any fire equipment or the means of escape from the
Demised Premises nor to lock any fire door while the Demised Premises are
occupied

 

(f)            as
soon as reasonably practicable after becoming aware to give notice to the
Landlord upon the happening of any event which might affect any insurance
policy on or relating to the Demised Premises or upon the happening of any event
against which the Landlord may have reasonably insured under this lease

 

 

(g)           as
soon as reasonably practicable to inform the Landlord in writing of any
conviction judgement or finding of any court or tribunal relating to the Tenant
(or any director other officer of the Tenant) of such a nature as to be likely
to materially affect the decision of any insurer or underwriter to grant or to
continue any such insurance of the Demised Premises

 

(h)           if
at any time the Tenant shall be entitled to the benefit of any insurance on the
Demised Premises (which is not effected or maintained in pursuance of any
obligation contained in this lease) to apply all money received by virtue of
such insurance in making good the loss or damage in respect of which such money
shall have been received

 

(i)            if
and whenever during the Term the Demised Premises or any part of them are
damaged or destroyed by an Insured Risk and the insurance money under the
policy of insurance effected by the Landlord pursuant to its obligations
contained in this lease is by reason of any act or default of the Tenant or
anyone at the Demised Premises expressly or by implication with the Tenant’s
authority wholly or partially irrecoverable immediately in every such case (as
the option of the Landlord acting reasonably) either:

 

(i)            to
rebuild and reinstate at its own expense the Demised Premises or the part
destroyed or damaged to the reasonable satisfaction and under the supervision
of the Surveyor the Tenant being allowed towards the expenses of so doing upon
such rebuilding and reinstatement being completed the amount (if any) actually
received in respect of such destruction or damage under any such insurance
policy or

 

(ii)           to
pay to the Landlord on demand with Interest the amount of such insurance money
so irrecoverable in which event the provisions of paragraph 5 and 6 shall apply

 

8              Landlord’s
Insurance Convenants

 

The Landlord convenants with the Tenant in
relation to the policy of insurance effected by the Landlord pursuant to its
obligations contained in this lease to produce to the Tenant on demand
reasonable evidence of the terms of the policy and the fact that the last
premium has been paid

 

 

EXECUTED AS A
DEED by

PRIME
HOLDINGS LIMITED

acting by:

 

 

	
  Director

  	
  /s/
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Director/Secretary

  	
  /s/
  [ILLEGIBLE]

  	
   

  

 

 

 

EXECUTED AS A
DEED by

MELBOURNE
COURT

MANAGEMENT

COMPANY
LIMITED

acting by:

 

 

	
  Director

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Director/Secretary

  	
   

  

 

 

EXECUTED AS A DEED by

a.p.solve LIMITED

acting by:

 

 

	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Director/SecretaryExhibit
10.54

 

	
  DATED

  	
   

  	
  9 December

  	
   

  	
  2004

  

 

 

FELAW MALTINGS IPSWICH (NO. 1) LIMITED

FELAW MALTINGS IPSWICH (NO.2) LIMITED

 

- and -

 

VIDUS LIMITED

 

- and -

 

MARS PENSION TRUSTEES LIMITED

 

 

LEASE

 

- OF -

 

THIRD FLOOR, THE NORTH MALTING FELAW STREET
IPSWICH SUFFOLK IP2 8HE

 

Lovells

 

P1/JCP/DBDM/1389608.02

21552/83900

 

 

CONTENTS

 

	
   

  	
  PAGE NO.

  
	
  CLAUSE

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  DEMISE AND
  RENT

  	
  3

  
	
   

  	
   

  	
   

  
	
  3.

  	
  LESSEE’S
  COVENANTS

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Pay Rent

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Pay outgoings

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  Repair
  and decorate

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.4

  	
  Observe
  legislation

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.5

  	
  Yield up

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.6

  	
  Entry by
  Lessor

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.7

  	
  Entry
  by adjoining owners

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.8

  	
  Costs of
  default

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.9

  	
  User

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.10

  	
  Alterations

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.11

  	
  Signage

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.12

  	
  Aerials, etc

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.13

  	
  Planning
  Acts

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.14

  	
  Statutory
  Notices

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.15

  	
  Insurer’s
  requirements

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.16

  	
  To Let board

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.17

  	
  Prohibited
  alienation

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.18

  	
  Assignment

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.19

  	
  Subletting

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.20

  	
  Registration
  of dealings

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.21

  	
  Encroachments

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.22

  	
  To
  comply with regulations

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.23

  	
  Not
  to park or obstruct

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.24

  	
  Works
  to Parking Spaces

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.25

  	
  Costs
  of applications

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.26

  	
  Observe
  documents

  	
  12

  
	
   

  	
   

  	
   

  
	
  4.

  	
  LESSOR’S COVENANTS

  	
  13

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Insure

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Quiet
  enjoyment

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  Provide
  services

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.4

  	
  Structure

  	
  14

  

 

 

	
  5.

  	
  PROVISOS

  	
  14

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Interest
  on late payments

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Re-entry

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  Rent
  cesser

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  Statutory
  compensation

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
  Data Protection Act
  1998

  	
  16

  
	
   

  	
   

  	
   

  
	
  6.

  	
  RENT
  REVIEW

  	
  17

  
	
   

  	
   

  	
   

  
	
  7.

  	
  LESSEE’S
  OPTION TO DETERMINE

  	
  19

  
	
   

  	
   

  	
   

  
	
  8.

  	
  NOTICES

  	
  19

  
	
   

  	
   

  	
   

  
	
  9.

  	
  VAT

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.

  	
  SURETY’S COVENANTS

  	
  20

  
	
   

  	
   

  	
   

  
	
  11.

  	
  LANDLORD
  AND TENANT (COVENANTS) ACT 1995

  	
  20

  
	
   

  	
   

  	
   

  
	
  12.

  	
  DELIVERY AS A DEED

  	
  20

  
	
   

  	
   

  	
   

  
	
  13.

  	
  RIGHTS OF THIRD
  PARTIES

  	
  20

  
	
   

  	
   

  	
   

  
	
  14.

  	
  RIGHTS
  GRANTED BY THE ADJOINING OWNER

  	
  20

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  RIGHTS
  GRANTED

  	
  21

  
	
   

  	
   

  	
   

  
	
  2.

  	
  RIGHTS
  RESERVED

  	
  22

  
	
   

  	
   

  	
   

  
	
  3.

  	
  DOCUMENTS TO BE OBSERVED

  	
  24

  
	
   

  	
   

  	
   

  
	
  4.

  	
  SERVICE
  CHARGE

  	
  25

  
	
   

  	
   

  	
   

  
	
  5.

  	
  COVENANTS BY THE SURETY

  	
  31

  
	
   

  	
   

  	
   

  
	
  6.

  	
  AUTHORISED
  GUARANTEE AGREEMENT

  	
  33

  

 

 

LEASE

 

	
  THIS LEASE is made

  	
   

  	
  9 December

  	
   

  	
  2004

  

 

BETWEEN:

 

(1)                                  Felaw Maltings Ipswich (No. 1) Limited (Registered
Number 4330837) and Felaw Maltings Ipswich (No. 2)
Limited (Registered Number 4330719) whose registered offices are
both at 21 Holborn Viaduct London EC1A 2DY (together the “Lessor”);
and

 

(2)                                  Vidus Limited (Registered Number 4069823) Whose registered
office is at North Felaw Mailings, 48 Felaw Street, Ipswich, Suffolk (the “Lessee”); and

 

(3)                                  Mars Pension Trustees Limited (Registered Number 449733) of
3D Dundee Road Slough Berkshire SL1 4LG (the “Adjoining
Owner”).

 

WITNESSES:

 

1.             INTERPRETATION

 

1.1           In
this Lease the following words and expressions have the meanings set opposite
them:

 

“adjoining
or neighbouring premises” includes any part of the
Development other than the Premises;

 

“Adjoining
Owner’s Land” means that part of the Development comprised in
HM Land Registry title number SK161294 of which the Adjoining Owner is the
registered proprietor;

 

“associated
company” means a company in the same group of companies as
the Lessee as defined by section 42 Landlord and Tenant Act 1954;

 

“Authorised
Guarantee Agreement” means an agreement between the Lessor
and the Lessee entered into by the Lessee as covenantor in the circumstances
set out in clause 3.18 hereof and containing the provisions set out in Schedule 6
hereto;

 

“Building”
means the building known as The North Malting, Felaw Street, Ipswich shown edged
red on Plan 1;

 

“Common
Areas” means those parts of the Development together with any
areas not forming part of the Development which the Lessee is authorised to use
designated and allocated by the Lessor from time to time for the common use and
benefit of or the provision of services to the lessees of premises forming part
of the Development (whether or not including the Lessee) and persons using or
visiting the Development and (without prejudice to the generality of the
foregoing) includes any roads footpaths car parks parking spaces and landscaped
areas of the Development as well as any estate signs and boards gates walls and
fences lighting apparatus surveillance devices services kiosks security guards’
accommodation Conducting Media and other things which may at any time be in on
or over under or about the Development and which are designated and allocated
by the Lessor as aforesaid;

 

“Common
Parts” means any entrances, entrance halls, lifts (including
lift shafts), stairs, escalators, passageways, landings, lavatory
accommodation, Conducting Media and other parts of the Building available or
intended to be available for use in common by two or more of the Lessor’s
lessees of the Building;

 

 

“Conducting
Media” means tanks, pipes, cables, wires, meters, drains,
sewers, gutters and other things of a like nature for the passage of electricity,
gas, water, soil and other services;

 

“Development”
means the land in the County of Suffolk and the offices and other buildings
erected thereon known as The Maltings Development Felaw Street Ipswich and
shown with a heavy blue line on Plan 1 (including for the avoidance of doubt,
the Building) together with any alteration addition or extension thereto that
is either agreed between the parties or is the result of a minor adjustment to
the boundaries of the Lessor’s ownership not material to the Development as a
whole;

 

“Insurance
Rent” means the rent reserved by clause 2.2 hereof;

 

“Insured
Risks” means fire and such other usual commercial risks or
perils (if any) and as shall be available in the market at reasonably
commercial rates as the Lessor (acting reasonably) may from time to time deem
it prudent to insure and have insured the Development (with or without the
boilers, lifts and other plant and machinery in the Building) against;

 

“Lessee”
includes the successors in title and assigns of the Lessee;

 

“Lessor”
includes the person or persons for the time being entitled to the reversion
immediately expectant on the Term;

 

“Other
Buildings” means the buildings Known as The South Malting The
North kiln and the South Kiln Felaw Street Ipswich shown edged brown on Plan 1;

 

“Other
Lettable Units” means the parts of the Development let or
designed to be let to a lessee excluding:

 

(a)           the Common Areas;

 

(b)           the Premises; and

 

(c)           the Common Parts;

 

“Parking
Spaces” means those parking spaces forming part of the Common
Areas shown coloured yellow on Plan 1;

 

“Party
Structures” unless the context otherwise requires means the
walls separating and dividing the Premises from any Other Lettable Unit;

 

“Planning
Acts” means and includes the “Planning Acts” as defined in section 117
Planning and Compulsory Purchase Act 2004 together with that Act and all other
legislation from time to time imposing controls on the development or use of
land (so far as the same does not form part of Structure) or the Common Parts;

 

“Premises”
means all those premises (shown edged red on the Plan 2 annexed hereto) on the
third floor of the Building (so far as such floor does not form part of the
Structure or the Common Parts) together with all glass, false ceilings, plaster
and other internal finishes of walls and ceilings and all floorboards and floor
coverings as well as any landlord’s fixtures and fittings from time to time
therein and each and every part thereof (so far as the same does not form part
of the Structure) or the Common Parts;

 

2

 

 

 

 

 

 

 

“Rent”
means the rent reserved by clause 2.1 hereof at the rate from time to time
payable hereunder as therein and in clause 6 hereof provided;

 

“Service Charge” means the rent
reserved by clause 2.3 hereof;

 

“Structure”
means the exterior and main structure of the Building including the
foundations, roofs, main walls, ceilings and floors thereof (but excluding any
glass, false ceilings, all internal plaster and other finishes of walls or
ceilings save where internal to any Common Parts and any floorboards and floor
coverings);

 

“Term”
means a term of years commencing on 29 September 2004 expiring on 28 September 2014
together with any statutory continuation thereof; and

 

“VAT”
means Value Added Tax and any other tax of a like nature.

 

1.2           In this Lease unless there be
something in the context inconsistent therewith:

 

(a)                                  words
importing the masculine gender shall include the feminine gender and vice versa
and words importing the singular shall include the plural and vice versa and words
importing persons and all references to persons shall include companies, corporations
and firms and vice versa;

 

(b)                                 if
at any time two or more persons are included in the expression the “Lessee” then
covenants herein contained or implied by or on the part of the Lessee shall be
deemed to be and shall be construed as covenants entered into by and binding on
such persons jointly and severally;

 

(c)                                  where
the Lessee is placed under a restriction by this Lease it includes an obligation
not to permit or allow the restriction to be infringed;

 

(d)                                 references
to “lease” shall include “underlease” and vice versa.

 

2.             DEMISE AND RENT

 

The Lessor HEREBY DEMISES
unto the Lessee ALL THOSE the Premises TOGETHER with the particular rights set
out in Schedule 1 hereto BUT EXCEPT AND RESERVED AND SUBJECT to the
particular rights and matters set out in Schedule 2 hereto AND SUBJECT
ALSO to such other rights, easements, quasi-easements and privileges as are
enjoyed by any Other Lettable Unit in any manner affecting the Premises AND
SUBJECT ALSO to the matters contained or referred to in the documents brief
particulars whereof are set out in Schedule 3 hereto TO HOLD the Premises
unto the Lessee (together with but except and reserved and subject as
aforesaid) for the Term YIELDING AND PAYING therefor unto the Lessor during the
Term and so in proportion for any less time than a year without any deductions
therefrom whatsoever the following rents namely:

 

2.1           until
and including 28 September 2009 the yearly rent of £62,140 and during the remainder
of the Term the said yearly rent or such higher yearly rent as may become payable
pursuant to review under clause 6 hereof by equal quarterly payments in advance
on the four usual quarter days in each year of which the first payment (being
the due proportion for the period commencing on 29 September 2004 and
ending on the usual quarter day thereafter) shall be paid on or before the date
hereof;

 

2.2           throughout
the Term sums equal to a just proportion fairly attributable to the Premises of
the total amounts which the Lessor shall from time to time expend by way of
premium and proper incidental costs (including the cost of periodic valuations
and the whole of any

 

3

 

increase in any premium
from time to time as a result of or arising out of the manner or the purposes
in or for which the Premises are kept used and occupied by the Tenant) in effecting
and maintaining the several insurances referred to in clause 4.1 hereof
each such sum to be paid on the usual quarter day immediately following demand
therefor the first such payment in respect of amounts already so expended by
the Lessor (being the due proportion thereof commencing on 29 September 2004
to the next renewal date or dates for such insurances) to be paid on or before
the date hereof and in the event of any dispute as to any such sum the same
shall be determined by the Lessor’s Surveyor (acting as an independent expert
and not as an arbitrator) whose determination shall be final and binding on the
parties (save in the case of manifest error);

 

2.3                                 throughout
the Term sums equal to the Service Charge defined in Schedule 4 hereto at
the times and in manner therein specified;

 

2.4                                 By
way of additional rent VAT on any of the foregoing rents if applicable thereto.

 

3.             LESSEE’S COVENANTS

 

The Lessee to the intent
that the obligations hereby created shall continue throughout the whole of the
Term HEREBY COVENANTS with the Lessor as follows:

 

3.1           Pay Rent

 

(a)                                  To
pay the Rent, the Insurance Rent and the Service Charge at the times and in the
manner aforesaid without deduction or set off and to pay the Rent by bankers standing
order or similar form of bank transfer if so required by the Lessor.

 

(b)                                 To
pay all rents and other sums when they first fall due under this Lease whilst
the Term is vested in the Lessee whether or not such rents or other sums relate
to a period before the Term became vested in such Lessee.

 

3.2           Pay outgoings

 

To pay and keep the
Lessor fully indemnified from and against all liability for all general and
other rates of whatever nature or kind and all taxes, charges, duties, levies,
assessments, impositions and outgoings whatever (whether parliamentary,
parochial, local or of any other description) which are now or may become rated
taxed charged levied assessed or imposed upon the Premises or the owner,
landlord, tenant or occupier thereof and whether or not required to be paid by
the Lessee himself PROVIDED THAT the Lessee shall not be liable for the payment
of any Income or Corporation Tax chargeable in respect of the rents herein
referred or for any tax chargeable in respect of any dealing by the Lessee with
its reversionary interest.

 

3.3           Repair and decorate

 

(Damage by the Insured
Risks always excepted unless the policy or policies of insurance effected by
the Lessor against them shall be rendered void or payment of the insurance moneys
thereunder be refused in whole or in part by reason of or arising out of any
act, omission, neglect or default by the Lessee or any subtenant or other
person under the control of the Lessee or any subtenant) to keep the Premises
including all means of escape therefrom in case of fire or other emergency and
Conducting Media forming part of and serving the Premises in good and
substantial repair and well and substantially amended, renewed and maintained
and in good decorative and clean condition with the glass therein cleaned both
inside and (unless the cost of the same is being met by the

 

4

 

Lessee as part of the Service Charge) outside at least
once every two months and (without prejudice to the generality of the foregoing
obligations of the Lessee):

 

(a)                                  in
a good and workmanlike manner and to the reasonable satisfaction of the Lessor
in the fifth year of the Term and also in the last three months of the Term (however
and whenever it may terminate) to paint with two coats of good quality paint
all interior parts of the Premises which have previously been or ought to be painted
and grain varnish paper or otherwise suitably decorate or treat with good quality
materials as circumstances may require all parts of the interior of the Premises
which have previously been or ought to be so dealt with and in the case of
painting in the last three months of the Term the Lessor shall have the right
to insist on a particular colour scheme being used; and

 

(b)                                 to
enter into contracts for the periodic and regular inspection servicing and maintenance
of any lifts central heating air conditioning ventilation and hot water boilers
apparatus and installations and sanitary and water apparatus situated within
and exclusively serving the Premises by contractors first approved in writing
by the Lessor (such approval not to be unreasonably withheld) and thereafter to
observe and perform the Lessee’s obligations thereunder and produce to the
Lessor on demand from time to time (but not more than once in any period of 12
months) such contracts and evidence that any payments due from the Lessee
thereunder are fully up to date.

 

3.4          Observe legislation

 

To observe and perform
all requirements of any Act of Parliament, local Act or bylaw and notices
issued thereunder or by any public, local or other competent authority (whether
or not required of the Lessee himself) in any way affecting the Premises or any
thing in or any activity carried on persons resorting to or working or employed
at the Premises or the use and occupation thereof within the time limited by
law or the notice requiring the same (or if no time is so limited then within a
reasonable time) to the reasonable satisfaction of the Lessor and to indemnify
and keep the Lessor fully indemnified against all such requirements and all
actions, proceedings, costs, claims, demands, expenses and liability whatever
arising out of or in connection with non-observance or non-performance thereof.

 

3.5          Yield up

 

Quietly to surrender and yield up the Premises to the
Lessor or as the Lessor may direct at the end or sooner determination of the
Term in a state and condition in all respects in accordance with the covenants
on the part of the Lessee herein contained and at the same time to hand over to
the Lessor all keys relating to the Premises and the original or a true copy of
the Fire Certificate.

 

3.6           Entry by Lessor

 

(a)                                  To
permit the Lessor and others authorised by the Lessor after at least three days’
prior written notice (except in an emergency when as much notice as reasonably practicable
shall be given) to enter upon the Premises to view and inspect the Premises and
ascertain how the same are being used and occupied and the state and condition
thereof and to take schedules of all landlord’s fixtures and fittings and to
estimate the current value of the Premises for insurance, mortgage or other
purposes.

 

5

 

(b)                                 Whenever
on any such inspection anything is found which constitutes a breach,
non-performance or non-observance of the covenants on the part of the Lessee herein
contained and of which the Lessor gives notice to the Lessee to commence to
remedy and make good the same within one month of the date of such notice (or
sooner if necessary) and thereafter proceed diligently with the requisite works
but if the Lessee shall fail so to do to permit the Lessor if it so desires
(although the Lessor shall be under no obligation so to do) without prejudice
to the Lessor’s right of re-entry hereinafter contained or any other right or
remedy of the Lessor to enter upon the Premises with contractors, workmen and
others and all necessary equipment, tools and materials and to execute or
complete such works and to pay to the Lessor on written demand either during or
on completion of such works as the Lessor may require the costs and expenses
thereby properly incurred by the Lessor together with all solicitors’,
surveyors’ and other professional fees and expenses properly incurred by the
Lessor in relation to such works.

 

3.7          Entry by adjoining owners

 

To permit the Lessor and
others authorised by the Lessor and the tenants, owners or occupiers from time
to time of any Other Lettable Unit and their respective agents and contractors
to enter upon the Premises with workmen and others and all reasonably necessary
equipment, tools and materials after at least three days’ prior notice (except
in an emergency when as much notice as reasonably practicable shall be given)
in order to carry out repairs, alterations, additions, decorations or any other
works to or of any Other Lettable Unit which cannot reasonably be carried out
without entry on to the Premises PROVIDED ALWAYS that the persons so entering
shall cause thereby as little inconvenience as possible to the Lessee or other
occupiers of the Premises and shall forthwith make good all damage thereby
caused to the Premises to the reasonable satisfaction of the Tenant.

 

3.8          Costs of default

 

To pay all proper costs,
charges and expenses (including solicitors’ costs and bailiffs’, architects’
and surveyors’ fees) reasonably payable by the Lessor for the purposes of and
incidental to the preparation, service and enforcement (whether by proceedings
or otherwise) of:

 

(a)                                  any
notice under section 146 or 147 Law of Property Act 1925 requiring the Lessee
to remedy a breach of any of the Lessee’s obligations hereunder notwithstanding
forfeiture for any such breach shall be avoided otherwise than by relief
granted by the Court;

 

(b)                                 any
notice to repair or schedule of dilapidations accrued at or prior to the
end or sooner determination of the Term served during the Term or within six
months after the end or sooner determination of the Term;

 

(c)                                  the
payment of any arrears in the rents hereby reserved;

 

and in default of
payment all such sums shall be recoverable as rent in arrears.

 

3.9           User

 

(a)                                  The
Premises shall be kept used and occupied only as high-class business commercial
or professional offices (but not as diplomatic offices or as a betting office
or bookmaker’s office) and not in any other manner or for any other purpose or
for any immoral or unlawful purpose or for any sale by auction PROVIDED

 

6

 

ALWAYS and it is hereby
agreed and acknowledged by the Lessee that notwithstanding the foregoing provisions
as to user the Lessor does not thereby make or give and has not at any time
made or given to the Lessee or to any person on behalf of the Lessee any
representation or warranty that such use or any other use of the Premises is or
may become or remain the permitted use thereof under the Planning Acts and that
notwithstanding such use may not now or at any time hereafter be such permitted
use as aforesaid the Lessee shall not be entitled to any relief or compensation
whatsoever in respect thereof from the Lessor.

 

(b)                                 Neither
the Lessee nor any subtenant nor any person under the control of the Lessee or
any subtenant shall knowingly overload any floor of or lift in or serving the
Premises or pass or leave anything of a harmful nature through or in the basins
or water-closets of or any Conducting Media in or serving the Premises (whether
exclusively or jointly with other premises) or do anything at the Premises
which shall be or may become a nuisance (whether indictable or not) or which
shall cause any damage or disturbance to the Lessor or the owners, tenants or
occupiers from time to time of any Other Lettable Unit.

 

3.10         Alterations

 

(a)                                  Save
and except in order to comply with any of the Lessee’s obligations hereunder
there shall be no reconstruction or rebuilding or carrying out of any structural
alterations, additions or other works of or to the Premises nor any cutting,
maiming or injuring of the main walls, joists, beams or timbers of or to the Premises
nor any erecting of any new buildings or erections thereon.

 

(b)                                 Save
and except as aforesaid any non-structural alteration, addition or other works
of or to the Premises shall be carried out only after there has first been obtained
the written consent thereto of the Lessor (such consent not to be unreasonably
withheld or delayed) and all necessary approvals, consents, licences, permits
or permissions of any competent authority, body or person therefor and then
only strictly in accordance with the terms and conditions thereof and such
drawings and specifications of the relevant alteration, addition or other works
as the Lessor shall reasonably require and previously have approved in writing
save that the Lessee may without the consent of the Lessor erect remove or
alter non-structural demountable partitioning having previously given details
to the Lessor.

 

(c)                                  To
permit the Lessor and others authorised by the Lessor to enter upon the Premises
at reasonable hours during the daytime and on reasonable prior notice for the
purpose of seeing that all alterations, additions or other works thereto are being
or have been carried out in all respects in conformity with this clause and immediately
upon being required to do so to remove any alteration, addition or other works
of or to the Premises which do not so conform or in respect of which any such
approvals, consents, licences, permits or permissions of the competent authority,
body or person has been withdrawn or has lapsed and thereupon make good all
damage thereby caused to the premises and restore and reinstate all parts of
the Premises affected thereby to the reasonable satisfaction of the Lessor.

 

7

 

3.11         Signage

 

No fascia, sign, name
plate, bill, notice, placard, advertisement or similar device shall be affixed
to or displayed in or on any part of the Premises so as to be visible from the
exterior thereof save such as indicate the name of any occupier for the time
being and his business and as have (with the size and positioning thereof) been
previously approved by the Lessor in writing (such approval not to be
unreasonably withheld or delayed).

 

3.12         Aerials, etc

 

No television or wireless
or other form of mast or aerial nor any flagpole shall be affixed to any part
of the exterior of the Premises save such as have (with the positioning
thereof) been previously approved by the Lessor in writing.

 

3.13         Planning Acts

 

(a)                                  Without
prejudice to the generality of clause 3.4 hereof to fully observe and perform
all the requirements of the Planning Acts in respect of the Premises or the use
thereof and all the requirements of any approval, consent, licence, permit or permission
granted thereunder which remain lawfully enforceable and affect the Premises
and to Indemnify and keep the Lessor fully indemnified from and against all
actions, proceedings, costs, claims, demands, expenses and liability whatsoever
arising out of or in connection with any non-observance or non- performance
thereof by the Tenant.

 

(b)                                 No
application shall be made for any approval, consent, licence, permit, permission,
certificate or determination under the Planning Acts in respect of the Premises
without the prior written consent of the Lessor.

 

(c)                                  Unless
the Lessor shall otherwise direct in writing to carry out to the reasonable satisfaction
of the Lessor during the Term (however and whenever it may terminate) all works
to the Premises which as a condition of any such approval, consent, licence,
permit or permission obtained by or on behalf of the Lessee or any subtenant
are required to be carried out at the Premises by a date after the Term
(however and whenever it may terminate).

 

3.14         Statutory Notices

 

To give the Lessor a copy
of every notice of whatsoever nature affecting or likely to affect the Premises
made given or issued by or on behalf of the local planning authority or any
other authority, body or person having lawful jurisdiction within seven days of
Its receipt by the Lessee or any subtenant and to produce the original thereof
to the Lessor on written request and to take all reasonable and necessary steps
to comply with every such notice And if reasonably required in writing by or oh
behalf of the Lessor to make or join with the Lessor and any other persons for
the time being interested in the Premises or any adjoining or neighbouring premises
affected thereby in making such objections or representations against or in
respect of any such notice as aforesaid as the Lessor may reasonably require.

 

3.15         Insurer’s requirements

 

(a)                                  Nothing
of a noxious, dangerous, explosive or inflammable nature shall knowingly be
stored, placed or kept or remain on the Premises nor shall any other thing be
done in or about the Premises which does or may invalidate or render void or
voidable or cause any increased premium to be payable for any policy of insurance
maintained by the Lessor in respect of the Premises or any adjoining or

 

8

 

neighbouring premises
(provided always that the contents of such policy of insurance have been
disclosed to the Lessee).

 

(b)                                 To
repay to the Lessor upon written demand as part of the Insurance Rent an amount
equal to any such increased premium as may become so payable.

 

(c)                                  If
the Premises or any other premises shall be destroyed or damaged as a result of
any matter referred to in subclause (a) hereof or as a result of any act,
omission, neglect or default by or on the part of the Lessee or any subtenant
or any person under the control of the Lessee or any subtenant whereby any
policy of insurance maintained by the Lessor is rendered void or payment of the
insurance money thereunder is refused in whole or in part to pay to the Lessor
on written demand or otherwise make good to the Lessor all loss, damage and
expense thereby incurred and to indemnify the Lessor against all actions, proceedings,
costs, claims, demands and liability whatsoever resulting therefrom or arising
thereout including the cost of rebuilding, reinstating, replacing and making
good.

 

3.16        To Let board

 

To permit the Lessor
during the period of six months immediately preceding the end or sooner
determination of the Term (and at any time during the Term in the event of any
proposed disposal by the Lessor of its interest in the Premises) to affix and
retain on any part of the Premises (but not so as thereby materially to interfere
with any trade or business carried on thereat or with reasonable access of
light and air thereto) notices and boards of reasonable dimensions relating to
any proposed disposal by the Lessor of its interest in the Premises or for relating
or otherwise dealing with the same and to permit all persons with written
authority from the Lessor or the Lessor’s agents to inspect and view the
Premises at reasonable times of the day by previous appointment.

 

3.17         Prohibited alienation

 

The Lessee shall not
assign, transfer, underlet, part with or share possession or occupation,
mortgage or charge any part (as opposed to the whole) of the Premises nor
(without prejudice to clauses 3.18 and 3.19) part with or share possession or
occupation of the whole of the Premises (which is hereby expressly prohibited)
and the Lessee shall not permit or suffer any such dealing as aforesaid.

 

3.18         Assignment

 

(a)                                  Not
to assign the whole of the Premises without the prior written consent of the Lessor
(such consent not to be unreasonably withheld or delayed) provided that the
Lessor shall be entitled:

 

(i)            to withhold its consent in any of
the circumstances set out in subclause (c);

 

(ii)           to impose all or any of the matters
set out in subclause (d) as a condition of its consent.

 

(b)                                 The
provisos to subclause (a) shall operate without prejudice to the right of
the Lessor to withhold such consent on any other ground or grounds where such withholding
of consent would be reasonable or to impose any further condition or conditions
upon the grant of consent where the imposition of such condition or conditions
would be reasonable.

 

9

 

(c)                                  The
circumstances referred to in subclause (a)(i) are as follows:

 

(i)                                     where
in the reasonable opinion of the Lessor the value of the Lessor's reversion to
the Premises would be diminished or otherwise adversely affected by the
proposed assignment on the assumption (whether or not a fact) that the Landlord
wished to sell its reversion the day following completion of the assignment of
this Lease to the proposed assignee;

 

(ii)                                  where
the assignee is an associated company of the Lessee;

 

(iii)                               where
in the reasonable opinion of the Lessor the assignee is not of sufficient
financial standing to enable it to comply with the tenant's covenants in the
Lease;

 

(iv)                              where
the assignee enjoys diplomatic or state immunity;

 

(v)                                 where
the assignee is not resident in England and Wales.

 

(d)                                 The
conditions referred to in subclause (a)(ii) are as follows:

 

(i)                                     the
execution and delivery to the Lessor prior to the assignment in question of a
deed of guarantee (being an Authorised Guarantee Agreement);

 

(ii)                                  the
payment to the Lessor of all rents and other sums which have fallen due under
the Lease prior to the date of assignment;

 

(iii)                               the
giving of any requisite consent of any superior landlord or mortgagee and the
fulfilment of any lawful condition of such consent;

 

(iv)                              if
reasonably required by the Lessor the execution and delivery to the Lessor
prior to the assignment of a rent deposit deed in such form as the Lessor shall
reasonably require together with the payment by way of cleared funds of the sum
specified in the rent deposit deed;

 

(v)                                 the
execution and delivery to the Lessor of a deed of guarantee entered into by one
or more third party guarantors reasonably acceptable to the Lessor
incorporating the provisions of Schedule 5.

 

3.19        Subletting

 

(a)                                  The
Lessee may subject as provided in subclauses (b), (c) and (e) hereof
sublet the whole of the Premises.

 

(b)                                 The
Lessee shall not sublet the Premises or agree to sublet the Premises otherwise
than at the rent then reasonably obtainable therefor with vacant possession on
the open market without fine or premium with provision for upwards only review
of such rent as at each Review Date (as defined in clause 6.1(a) hereof) which
shall occur during the term of the relevant underlease in like manner (mutatis
mutandis) as provided in clause 6 hereof PROVIDED THAT AND IT IS HEREBY AGREED that
every permitted underlease (whether mediate or immediate) of the whole of the
Premises shall (so far as applicable) contain covenants by the sublessee in the
same form as those contained in clauses 3.17, 3.18 and 3.19.

 

(c)                                  Before
or at the same time as any underletting of the whole of the Premises shall be
effected the proposed underlessee thereof shall enter into direct covenants

 

10

 

with the Lessor in such
form as the Lessor shall require to observe and perform all the covenants and
agreements on the part of the Lessee and the stipulations and conditions herein
contained (other than the payment of the Rent, Insurance Rent and the Service
Charge) during the term of the underlease.

 

(d)                                 The
Premises shall not at any time be in the occupation of more than two persons (of
which the Lessee whilst in occupation shall count as one).

 

(e)                                  Subject
and without prejudice to the foregoing provisions of this clause there shall be
no underletting of the whole of the Premises without the prior written consent
of the Lessor thereto (such consent not to be unreasonably withheld or
delayed).

 

3.20        Registration of dealings

 

Within 21 days of every
assignment or transfer (whether by deed, will or otherwise) and every mortgage
or charge and every permitted underletting of the Premises and upon every other
disposition or transmission or devolution of the Premises (including all Orders
of Court, Probates and Letters of Administration) notice thereof shall be given
to the Lessor’s solicitors stating the date and short particulars thereof and
the names and addresses of every party thereto and at the same time the deed,
document or instrument creating or evidencing the same shall be produced to the
Lessor’s solicitors for registration (with a certified copy thereof for
retention by the Lessor) and such solicitors’ fee of £30 for such registration
shall be paid by the Lessee.

 

3.21         Encroachments

 

(a)                                  Neither
the Lessee nor any subtenant shall knowingly effect, authorise or permit any
encroachment upon or acquisition of any right, easement, quasi-right,
quasi-easement or privilege adversely affecting the Premises or any closing or obstruction
of the access of light or air to any windows or openings of the Premises nor
shall the Lessee or any subtenant give any acknowledgement to any third party
that the enjoyment of access of light or air thereto is by the consent of such
third party or give any consideration to any third party or enter into any agreement
with any third party for the purpose of inducing or binding such third party to
abstain from obstructing the access of light or air thereto.

 

(b)                                 If
any such encroachment or acquisition or closing or obstruction shall be threatened
or attempted to give notice thereof to the Lessor as soon as reasonably
practicable after the same comes to the knowledge of the Lessee or of any
subtenant and upon request by and at the cost of the Lessor to take immediate
steps (in conjunction with the Lessor and other interested persons if the
Lessor shall so require) and to adopt all such lawful means and do all such lawful
things as the Lessor may reasonably deem appropriate for preventing any such
encroachment or acquisition.

 

3.22         To comply with regulations

 

(a)                                  To
observe and cause to be observed at all times all such lawful and reasonable
regulations and directions imposed by the Lessor for the general running
orderliness and management of the Common Areas and any extension thereto and
the services thereof and for the regulation of vehicular traffic into from and
within the same as already or from time to time hereafter notified in writing
by the Lessor to the Lessee AND THIS SUB-CLAUSE shall

 

11

 

be without prejudice to
the generality of any other provision contained in this Lease.

 

(b)                           Not to
cause or to permit any undue noise in or about the Common Areas or the Parking
Spaces whether by the running of engines sounding of horns hooters or other
such warning devices, or otherwise and not to carry out or permit to be carried
out any repairs to any vehicle whilst it is on the Common Areas or the Parking
Spaces.

 

(c)                            Except
for the reasonable and orderly parking of vehicles (but not lorry trailers trailers
caravans or unroadworthy vehicles) on the Parking Spaces the Lessee shall not
deposit or leave or permit to be deposited or left on any part of the exterior
of the Premises or in the vicinity thereof or (so far as may be within the
control of the Lessee or any subtenant) or on any part of the Common Areas any
rubbish refuse cases cartons pallets by-products or other chattels or effects
of any kind whatsoever and in the event of anything being deposited or left in
breach of this covenant the Lessee shall pay to the Lessor on demand all
expenses properly and reasonably incurred by the Lessor in connection with or
arising out of such breach including the expense of removing storing and/or
disposing of anything so deposited or left (which the Lessor is hereby
authorised to do) and shall Indemnify the Lessor against any claims which may
be made by any third parties and against all other claims costs expenses and
liability whatsoever which the Lessor may incur in connection with such removal
storage and/or disposal.

 

3.23       Not to park or obstruct

 

Not to park or permit to
be parked any vehicle in or otherwise to obstruct or permit to be obstructed
the Common Areas (other than areas on which the Lessee is permitted to park
under the provisions of this Lease).

 

3.24         Works to Parking Spaces

 

If and so often as the
Lessor or its agents or contractors shall give not less than one week’s notice
(save in emergency when as much notice as reasonably practicable shall be
given) to the Lessee of its or their Intention to repair resurface cleanse or
amend the Parking Spaces to remove all vehicles and other things therefrom and
to permit the Lessor or its agents or contractors to carry out any of the said
operations without hindrance or obstruction Provided that the Lessor shall not
be entitled (save in emergencies) to require such removal during normal working
hours without first using all reasonable endeavours to provide suitable alternative
car parking facilities.

 

3.25         Costs of applications

 

To pay all proper costs
and expenses (including surveyors’ fees and solicitors’ charges and all
disbursements) reasonably incurred or payable by the Lessor in respect of every
application to the Lessor for any consent or approval hereunder whether or not
such consent or approval is granted or refused or the application for same is
withdrawn.

 

3.26         Observe documents

 

To observe and perform
the agreements and covenants contained in the documents brief particulars of
which are set out in Schedule 3 hereto in so far as the same relate to the

 

12

 

Premises and are still
subsisting and capable of being enforced against the Premises or the owner,
landlord, tenant or occupier thereof and to keep the Lessor throughout the Term
fully indemnified against all actions, proceedings, costs, claims, demands,
expenses and liability in any way relating thereto.

 

4.             LESSOR’S COVENANTS

 

The Lessor HEREBY
COVENANTS with the Lessee as follows:

 

4.1           Insure

 

(a)                                  To
insure with an insurance office of repute and on reasonable commercial terms
and (unless such insurance shall become void or payment of the insurance moneys
shall be refused in whole or in part by reason of any act, omission, neglect or
default by or on the part of the Lessee or any subtenant or other person under
the control of the Lessee or any subtenant) to keep insured and to pay all
premiums for insuring and keeping insured the Development in the full
rebuilding cost from time to time (whether or not with other premises) against
loss or damage by the Insured Risks together with insurance against:

 

(i)                                     architects’,
surveyors’ and other professional advisers’ fees at the usual scales current
for the time being and the cost of demolition and site clearance consequent
upon rebuilding or reinstatement; and

 

(ii)                                  three
years’ loss of the Rent and the Service Charge or loss of the Rent and the
Service Charge for such period as the Lessor shall in its absolute discretion
deem necessary for the rebuilding or reinstatement of the Development taking
into account any likely increases in such rents during such period.

 

(b)                                 (Unless
as aforesaid) to apply all such moneys (except moneys received in respect of
loss or damage of or to any Other Lettable Unit or fixtures and fittings
therein or thereon liability to third parties or loss of rent) as the Lessor
may receive under or by virtue of such insurance in rebuilding or reinstating
the Development or such parts thereof as may have been damaged or destroyed as
expeditiously as possible (subject always to the Lessor being able to obtain
all such approvals, consents, licences, permits and permissions from competent
authorities and all such materials and labour as may be necessary for such
rebuilding and reinstatement).

 

4.2           Quiet enjoyment

 

That the Lessee paying
the Rent, the Insurance Rent, the Service Charge and all other moneys which may
become payable hereunder by the Lessee and observing and performing the several
covenants and agreements on the Lessee’s part and the conditions and
stipulations herein contained shall and may (except and reserved and subject
nevertheless as is herein mentioned) peaceably hold and enjoy the Premises
during the Term according to these presents without any lawful interruption by
the Lessor or any person lawfully claiming under or in trust for the Lessor or
by title paramount.

 

4.3           Provide services

 

Unless prevented by
strikes, lockouts, unavailability of materials or labour or by any other matter
outside the control of the Lessor and so long as the Lessee shall pay the
Service

 

13

 

Charge the Lessor shall
use its best endeavours to carry out the works and to provide the services
referred to in Schedule 4 Part B and Schedule 4 Part C hereto.

 

4.4         Structure

 

(a)                                  To
keep in good and substantial repair and well and substantially renewed (in so
far as is necessary to effect the repair) and maintained and in good decorative
and clean condition the Structure and all external means of escape from the
Building in case of fire or other emergency.

 

(b)                                 In
a good and workmanlike manner as and when required but not less frequently than
every five years of the Term to redecorate or otherwise treat all external
parts of the Building which have previously been or ought to have been
decorated or treated with good quality materials.

 

5.             PROVISOS

 

PROVIDED ALWAYS
AND IT IS HEREBY EXPRESSLY AGREED as follows:

 

5.1           Interest on late payments

 

(a)                                  Whenever
the Rent or the Insurance Rent or the Service Charge (whether formally or
legally demanded or not) or any other moneys which may become payable hereunder
by the Lessee to the Lessor or any part thereof shall remain unpaid after
becoming due and payable then the amount thereof or the balance for the time
being unpaid shall (without prejudice to the Lessor’s right of re-entry
hereinafter contained or any other right or remedy of the Lessor) as from the
due date for payment thereof and until the same is duly paid bear and carry
interest thereon (as well after as before any judgment) at the rate of four per
cent per annum above the base rate for the time being of Barclays Bank PLC or
(in the event of such rate ceasing to be published) at such equivalent rate as
the Lessor shall notify to the Lessee.

 

(b)                                 In
the event of there being any breach by the Lessee of the covenants on its part
herein contained and the Lessor having notified the Lessee in writing that by
reason thereof the Rent or Insurance Rent or the Service Charge will not be
accepted for the time being then the amount thereof or the balance for the time
being outstanding shall (without prejudice as aforesaid) as from the date of
the notice served by the Lessor in respect of such breach or (if later) from
the due date for payment thereof until the date on which payment thereof is
tendered by the Lessee following the remedying of the said breach bear and
carry interest thereon (as well after as before any judgment) at the aforesaid
rate;

 

and the Lessee
accordingly HEREBY COVENANTS with the Lessor that in every such case the Lessee
will pay such interest thereon to the Lessor in addition to the Rent and
Insurance Rent and Service Charge and other moneys as aforesaid (as well after
as before any judgment) at the aforesaid rate and in default of payment such
interest shall be recoverable as rent in arrears.

 

5.2           Re-entry

 

Without prejudice to any
other provisions contained in this Lease, if:

 

(a)                                  the
rents reserved by this Lease are unpaid for 21 days after becoming payable (whether
formally demanded or not);

 

14

 

(b)                                 the
Lessee is in material breach of any of its obligations in this Lease;

 

(c)                                  the
Lessee (being a company) enters into liquidation whether compulsory or
voluntary (other than for the purpose of reconstruction or amalgamation not
involving a realisation of assets) or a resolution is passed or a petition is
presented for such liquidation;

 

(d)                                 an
administrator is appointed in respect of the Lessee pursuant to the Insolvency
Act 1986 or the Insolvent Partnerships Order or application is made for such
administration or notice is given under paragraph 15 or 26 of Schedule B1
to the Insolvency Act 1986 (as amended);

 

(e)                                  a
receiver is appointed in respect of the Lessee or any assets of the Lessee;

 

(f)                                    (where
the Lessee comprises or includes one or more individuals) a bankruptcy order is
made against any such individual or a petition is presented for such bankruptcy
order;

 

(g)                                 the
Lessee becomes insolvent or unable to pay its debts within the meaning of
section 123 Insolvency Act 1986 or makes a proposal for or enters into any
composition with its or his creditors or makes a proposal for or enters into a
voluntary arrangement (within the meaning of section 1 or section 253
Insolvency Act 1986);

 

(h)                                 distress,
sequestration or execution is levied on the Lessee’s goods;

 

(i)                                     any
of the above events occurs in relation to any Surety (excluding for this
purpose any person whose liability at the time of such event derives from an
Authorised Guarantee Agreement); or

 

(j)                                     any
event analogous to any of the above events occurs in any jurisdiction other
than England and Wales

 

then the Lessor may at
any time re-enter the Premises or any part of the Premises in the name of the
whole and immediately this Lease shall terminate absolutely but without
prejudice to any rights of the Lessor in respect of any breach of any of the
obligations on the Lessee’s part in this Lease.

 

5.3          Rent cesser

 

(a)                                  If
the Premises or any material part thereof or the access thereto shall at any
time or times be destroyed or damaged by any of the Insured Risks so as to be
unfit for occupation and use by the Lessee then and in every such case (unless
as provided in clause 4.1(a) hereof) the Rent, Service Charge or a fair
and just proportion thereof according to the nature and extent of the damage
sustained (as agreed between the Lessor and the Lessee in writing within one
month of such destruction or damage) shall for a period of three years (or for
such other period as the Lessor shall have insured under clause 4.1(a) hereof)
from the date of such damage or destruction or (if earlier) until the 

 

15

 

Premises have been rebuilt or reinstated and made fit
for occupation and use by the Tenant be suspended and cease to be payable and
failing such agreement or in case any dispute shall arise as to the amount of
such suspension and/or such period the same shall be determined by an
independent surveyor who shall:

 

(i)            be
a chartered surveyor with at least ten years experience in the assessment of
rent for premises of a similar nature in the locality of the Premises;

 

(ii)           be
appointed by the President or Vice President for the time being of the Royal
Institution of Chartered Surveyors on the application of whichever of the
Lessor and the Lessee shall first so apply;

 

(iii)          act
as an expert and not as an arbitrator;

 

(iv)          on
his appointment serve written notice thereof on the Lessor and the Lessee;

 

(v)           consider
any written representations by or on behalf of the Lessor or the Lessee
concerning such matter which are received by him within 28 days of such service
but otherwise have an unfettered discretion to determine such matter;

 

(vi)          serve
notice of such determination on the Lessor and the Lessee as soon as he has
made it;

 

(vii)         be
paid his proper fee and expenses in connection with such determination by the
Lessor and the Lessee in equal shares or any such shares as he may determine;

 

and any such
determination shall be final and binding on the parties Provided
that if and whenever any person so appointed shall die, be adjudged bankrupt or
become of unsound mind or if both the Lessor and the Lessee shall serve upon
such person written notice that in their opinion he has unreasonably delayed
making such determination such person shall ipso facto be discharged and be
entitled only to his reasonable expenses prior to such discharge and another
such independent surveyor shall be appointed to act in his place as aforesaid.

 

(b)           If
the Premises have not been rebuilt or reinstated within three years of the date
of such damage or destruction either party shall be entitled to determine this
Lease by serving notice on the other in that regard following which this Lease
shall immediately determine but without prejudice to either party’s rights in
respect of any previous breach of its obligations hereunder.

 

5.4           Statutory compensation

 

The Lessee shall not be
entitled on quitting the Premises to any compensation under section 37
Landlord and Tenant Act 1954 (as amended).

 

5.5           Data Protection Act 1998

 

For the purposes of the
Data Protection Act 1998 or otherwise the Lessee and the Surety (if any)
acknowledge that information relating to this tenancy will be held on computer
and other filing systems by the Lessor or the Lessor’s managing agent (if any)
for the purposes of general administration and/or enforcement of this Lease and
agree to such information being used for such purposes and being disclosed to
third parties so far only as is necessary in connection with the management of
the Lessor’s interest in, the insurance and/or maintenance of the Premises,
checking the credit-worthiness of the Lessee and the Surety, or the disposal or
sub-letting of the Premises or the Development

 

16

 

of which the Premises
form part, or is necessary to conform with recognised industry practice in the
management and letting of property.

 

6.             RENT REVIEW

 

IT IS ALSO HEREBY
EXPRESSLY AGREED AND DECLARED between the parties hereto as follows:

 

6.1           In
this clause:

 

(a)           the
“Review Date” means and includes 29 September 2009;

 

(b)           the
“Market Rack Rent” means the full annual rack rent exclusive of all outgoings
at which the Premises might reasonably be expected to be let as a whole as
between a willing lessor and a willing lessee in the open market for a term
equal to the residue of the Term at the Review Date without payment of any fine
or premium upon the terms and subject to covenants, agreements, stipulations
and conditions similar to those herein contained (except as to the Term and the
amount of the Rent but including similar provisions for review thereof) but
upon the assumption that:

 

(i)            the
Lessee has complied with all of the covenants on the part of the Lessee in this
Lease contained;

 

(ii)           the
Premises are available to be let with vacant possession (but such assumption
shall not give rise to any discount or abatement of the Market Rack Rent to
allow for any discount or rent free period which a willing lessor would or
might grant or allow a willing lessee upon or as a term of the grant and
acceptance of such letting);

 

(iii)          the
Premises are fit and ready for immediate occupation and for any use permitted
by this Lease and by any licence or consent granted by the Lessor prior to the
relevant Review Date at the request of the Lessee or any permitted undertenant
or any predecessor in title of them or either of them respectively;

 

(iv)          In
case the Premises have been destroyed or damaged they have been fully restored;

 

(v)           all
Value Added Tax payable by the Lessee under the provisions of this Lease is
recoverable by the Lessee in full;

 

and disregarding
(if appropriate):

 

(1)           any
effect on rent of the fact that the Lessee or any permitted undertenant or
their respective predecessors in title or any other permitted occupier has been
or is in occupation of the whole or any part of the Premises;

 

(2)           any
goodwill attached to the Premises by reason of the carrying on at the Premises
of the business of the Lessee or any permitted undertenant or other permitted
occupier;

 

(3)           any
permitted improvement to the Premises carried out by and at the expense of the
Lessee or any permitted undertenant or any predecessor in title of them or
either of them respectively otherwise

 

17

 

than in pursuance of an
obligation to the Lessor and being such an improvement completed after the date
hereof but not more than 21 years before the relevant Review Date;

 

(4)           any
works of demolition, construction, alteration or additional carried out or
being carried out on the Premises (otherwise than by and at the instance of the
Lessor or in pursuance of an obligation to the Lessor) which diminish the
rental value of the Premises at the relevant Review Date;

 

(5)           any
restraint or restriction on the right to recover or increase rent imposed by or
by virtue of any Act of Parliament;

 

(6)           any
effect on the rental value of the Premises due to the fact (if such be a fact)
that as at the Review Date the other tenants in occupation of the remainder of
the Development or any part thereof comprise any two or more of the following:

 

(A)          Ipswich
Borough Council;

 

(B)           Suffolk
College or a successor university;

 

(C)           Ipsenta;

 

(D)          Suffolk
Tec;

 

(E)           Suffolk
Chamber of Commerce;

 

(F)           Business
Link;

 

(7)           the
rent on a permitted Subletting if less than the best rent reasonably
obtainable.

 

6.2         As
at each Review Date there shall be a review of the Rent and the Lessor and the Lessee
shall seek to agree the Market Rack Rent but failing written agreement between the
parties the Lessor or the Lessee may at any time not more than two months prior
to the relevant Review Date refer the determination of the Market Rack Rent to
an independent surveyor (being such a person as is mentioned in clause 5.3(a)(i) hereof
and who shall be appointed as mentioned in clause 5.3(a)(i) hereof) acting
as an arbitrator (in which case the Arbitration Act 1996 shall apply) or (if
the Lessor and the Lessee shall so agree) such independent surveyor shall act
as an expert and not as an arbitrator.

 

6.3         If
the determination of the Market Rack Rent shall be referred to an expert in
accordance with the previous clause then clause 5.3(a)(iii), 5.3(a)(iv), 5.3(a)(v) and
5.3(a)(vi) shall also apply and such expert shall give notice in writing
of his decision within two months of his appointment or within such extended
period as the parties may agree.

 

6.4         The
Rent payable hereunder as from such Review Date (the “Reviewed
Rent”) until next increased on a subsequent Review Date or the end or
sooner determination of the Term (as the case may be) shall be the greater of
the Rent payable hereunder immediately and the prior to the relevant Review
Date (the “Current Rent”) and the Market Rack
Rent agreed or determined in accordance with clause 6.2 hereof.

 

6.5         If
the Reviewed Rent shall not be ascertained by the Review Date then until it has
been ascertained the Lessee shall continue to pay on account Rent at the rate
of the Current Rent until the quarter day after it has been ascertained on
which quarter day the Lessee

 

18

 

shall pay the Lessor an additional sum equal to the
excess (if any) of Rent at the rate of the Reviewed Rent over Rent at the rate
of the Current Rent for the period from the Review Date to such quarter day
plus interest on such additional sum from the date on which each instalment
thereof would have been due during the said period if the Reviewed Rent had
then been ascertained such interest being chargeable at the base rate for the
time being of Barclays Bank PLC or (in the event of such rate ceasing to be
published) at such equivalent rate as the Lessor shall notify to the Lessee.

 

6.6         A
Memorandum of the Market Rack Rent shall be entered into between the parties in
such terms as the Lessor shall reasonably require.

 

7.           LESSEE’S OPTION TO DETERMINE

 

7.1         The
Lessee may end this Lease on 29 September 2009 by giving at least six months’
written notice expiring on that day provided that at the time of expiry of such
notice:

 

(a)          there
are no arrears of any rents reserved by or any other sums payable under this
Lease (save as to any Service Charge Arrears which are already the subject of a
dispute prior to the date of service of the notice to terminate); and;

 

(b)         there
is no other material outstanding breach of any Lessee’s covenant; and

 

(c)          vacant
possession of the Premises is given.

 

7.2         If
any of the conditions referred to in (a), (b) or (c) above are not satisfied at
the date of expiry of such notice the notice is deemed to be of no effect and
this Lease shall continue as before, provided that the Lessor may waive all or
any of the said conditions by giving notice to the Lessee at any time.

 

7.3         The
ending of this Lease shall not affect either party’s rights in respect of any
earlier breach of any provision of this Lease.

 

7.4         On
the date on which this Lease ends pursuant to this clause, the Lessee shall
hand over to the Lessor the original Lease and all other title deeds and
documents relating to the Premises, and shall execute such document as the
Lessor shall reasonably require in order to cancel any entry or title at the
Land Registry.

 

7.5         The
provisions contained in this clause are personal to and exercisable only by
Vidus Limited.  They are not capable of
being assigned or otherwise dealt with by Vidus Limited and shall cease to have
effect upon the date of the first transfer or deed of assignment of this Lease
between Vidus Limited and its assignee irrespective of whether such transfer or
assignment is notified to the Lessor or submitted for registration at the Land
Registry.

 

7.6         Nothing
in this clause shall have the effect of making time of the essence for the
purposes of the review of rent under this Lease.

 

8.           NOTICES

 

This Lease shall
incorporate the provisions as to notices contained in section 196 Law of
Property Act 1925 as amended by the Recorded Delivery Service Act 1962 and
every notice required to be given hereunder shall be in writing.

 

19

 

9.           VAT

 

9.1         All
rents and other sums payable by the Lessee hereunder which are for the time
being subject to VAT shall be considered to be tax exclusive sums and the VAT
at the appropriate rate for the time being shall be payable by the Lessee in
addition thereto.

 

9.2         The
Lessee shall indemnify and keep indemnified the Lessor against any VAT paid or
payable by the Lessor in respect of any costs, fees, disbursements, expenses or
other sums which the Lessor in entitled to recover under the terms of this
Lease.

 

10.         SURETY,S COVENANTS

 

The Surety (if any)
hereby covenants with the Lessor in the terms of Schedule 5.

 

11.         LANDLORD AND TENANT (COVENANTS) ACT 1995

 

This Lease is a new
tenancy within the meaning of section 1 Landlord and Tenant (Covenants) Act
1995.

 

12.         DELIVERY AS A DEED

 

This document shall be
treated as having been executed as a deed only upon being dated.

 

13.           RIGHTS OF THIRD PARTIES

 

No person other than a
contracting party may enforce any provision of this Lease by virtue of the
Contracts (Rights of Third Parties) Act 1999.

 

14.           RIGHTS GRANTED BY THE ADJOINING OWNER

 

The Adjoining Owner
hereby grants to the Lessee for the benefit of the Premises during the Term the
rights set out in Schedule 1 hereto insofar as such rights affect the Adjoining
Owner’s Land.

 

IN WITNESS whereof the parties
hereto have executed this deed the day and year first before written.

 

20

 

SCHEDULE 1

 

Rights
granted

 

1.             Support

 

The
right of support and protection by such parts of the Premises as require the
same from any other part of the Development capable of providing such support
and protection.

 

2.             Passage of Conducting Media

 

The
right to the free and uninterrupted passage of services through the Conducting
Media (in common with the Lessor and tenants of the Other Lettable Units and all
other persons entitled thereto) through the appropriate conduits laid in or
over under or through any other parts of the Development or other contiguous or
adjacent land and premises of the Lessor.

 

3.             Use of the Common Areas

 

Subject
to the rights reserved in paragraph 7 of Schedule 2 the right for the
Lessee and all persons authorised by it (in common with the Lessor and tenants
of Other Lettable Units and all other persons similarly entitled or authorised)
during the Term or until the same or any part or parts thereof shall hereafter
be dedicated as public highways to pass and re-pass with or without vehicles
where appropriate over and use the Common Parts and the Common Areas (with the
exception of any car parking spaces over which exclusive rights have been
granted to any other lessee) and any other areas which the lessees of the
Development are entitled to use for the purpose for which each part is
designated by the Lessor from time to time.

 

4.             Fire escapes

 

The
right (in common as aforesaid) in case of emergency only to use or pass along
such means of escape across fire escapes (if any) provided over the Other
Lettable Units or otherwise within the Development.

 

5.             Car Parking Spaces

 

The
exclusive right to park roadworthy vehicles (other than lorry trailers or
caravans) on the Parking Spaces for all purposes connected with the Lessee’s or
any subtenant’s lawful user of the Premises.

 

21

 

SCHEDULE 2

 

Rights reserved

 

1.             Support

 

The
right of support and protection by such parts of the Premises capable of
providing the same for such other parts of the Development or any adjoining
premises as require such support and protection. 

 

2.             Passage of Conducting Media

 

The
right to the uninterrupted passage of services through the Conducting Media
through the conduits for the time being belonging to or running in over under
or through the Premises or any land and premises over which the Lessee is
hereby granted any access rights.

 

3.             Right to alter the Conducting Media

 

The
right upon reasonable prior notice (save in emergency
when as much notice as reasonably practicable shall be given) to make
connections with any or all of the Conducting Media and to enter upon the
Premises or any land and premises over which the Lessee is hereby granted any
access rights at all reasonable times for the purpose of making connections
with maintaining repairing cleansing and inspecting the Conducting Media
causing as little disturbance as possible and promptly making good any damage
thereby occasioned to the Premises to the reasonable satisfaction of the
Lessee.

 

4.             Right to alter Development

 

The right at any time upon
reasonable prior notice to build on alter add to extend or re-develop any other part of the Development
of any adjoining premises of the Lessor in such manner as it shall think fit notwithstanding any interference
with the access of light or air to the Premises and the right to undermine
underpin and shore up the Premises or any part thereof the Lessor causing as
little disturbance as possible and promptly making good (to the reasonable
satisfaction of the Lessee) any damage caused to the Premises by such
undermining underpinning or shoring up Provided Always that the Lessee’s use
and enjoyment of the Premises shall not be materially affected by such works).

 

5.            Right to build into Party
Structures

 

The
right at all times upon reasonable notice (or in emergency with as much notice
as is reasonably practicable) for the Lessor to enter upon the Premises in
order to build on or into alter remove or replace any Party Structure causing
as little disturbance as possible and promptly making good all damage caused to
the Premises in the exercise of this right.

 

6.             Fire escapes

 

Rights
(in cases of emergency) to use or pass along fire escapes (if any) crossing adjoining
or forming part of the Premises.

 

22

 

7.             Control
of Common Areas

 

The right to regulate and
control the use of the Common Areas and in particular (but without prejudice to
the generality of the foregoing) to: 

 

 

(a)           make reasonable
regulations for the control regulation and limitation of traffic thereon or on
any part thereof and to erect such signs as may be appropriate;

 

(b)           vary alter change the
use of close or control access to the whole or any part thereof (provided that
the Lessor shall where appropriate provide reasonable alternative access and/or
facilities); and

 

(c)           upon not less than
seven days’ prior notice (save in emergency) close temporarily for works of
repair or any other reasonable purpose any part or parts of the Common Areas
such works to be carried out in such manner as to cause as little inconvenience
as reasonably may be to the Tenant.

 

PROVIDED THAT the Lessee’s use and enjoyment of the
Premises and the Common Lovells Areas shall not be materially affected thereby.

 

8.             The rights and
liberties of entry upon the Premises mentioned in the covenants by the Lessee herein
contained.

 

9.             The right on
reasonable notice (except in emergency when as much notice as reasonably practicable
shall be given) to enter into and upon the Premises with or without workmen and
equipment for the purposes of carrying out the maintenance repair repainting cleansing
and renewal of any adjoining or neighboring premises causing as little disturbance
as possible and promptly making good all damage caused to the Premises in the
exercise of this right.

 

23

 

SCHEDULE 3

Documents to be observed

 

Covenants not to carry on malting or operations associated with malting
contained in two conveyances both dated 6 August 1982 and made between
Paul & Sanders Ltd (1) Paul & Whites Plc (2) The
Franciscan Investment Trust Ltd (3) and the other made between Paul &
Sanders Ltd (1) Paul & Whites Plc (2) The Carthusian Trust
Ltd (3).

 

24

 

SCHEDULE 4

 

Service Charge 

 

Part A

 

1.             The
service charge hereinafter referred to a sum (the “Service
Charge”) equal to a just proportion fairly attributable to the
Premises as conclusively determined (save in the case of manifest error) by the
Lessor’s Surveyor of the costs, expenses and outgoings from time to time
properly incurred or to be properly incurred by the Lessor in respect of the
works, matters and things specified in Part B of this Schedule (the “Estate Charge”) and in Part C of this Schedule (the
“Building Change”) as to each year (the “Accounting Period”) commencing on 28 September failing
wholly or partly within the Term PROVIDED THAT the Lessor may vary the
Accounting Period at its sole discretion at any time during the Term.

 

2.             Subject
to paragraph 4 of this Part of this Schedule:

 

2.1           the
Lessor’s auditors, accountants or surveyors (as the Lessor shall from time to
time nominate) acting as experts and not as arbitrator shall prior to each
Accounting Period prepare and supply the Lessee with a copy of an estimate (the
“Interim  Charge”)
of the Service Charge payable for that Accounting Period;

 

2.2           the
Lessee shall pay the Interim Charge by equal quarterly payments in advance on
the usual quarter days in that Accounting Period and so in proportion for any
broken period;

 

2.3           as
soon after the expiry of that Accounting Period as is reasonably practicable
the Lessor’s auditors or accountants or surveyors (as so nominated) acting as
experts and not as arbitrators shall ascertain and certify by a signed
certificate (the “Certificate”) the Service Charge in respect of that
Accounting Period and a copy of the Certificate shall be served by the Lessor
on the Lessee.

 

2.4           if
the Service Charge as so certified exceeds or falls short of the Interim Charge
then immediately upon service of such copy the excess shall become due
(together with any arrears of the Interim Charge) and shall be paid within
seven days to the Lessor by the Lessee or the shortfall shall be credited to
the Lessee by the Lessor for the succeeding Accounting Period (as the case may
require) Provided Always that at the end of the Term (howsoever determined),
such shortfall shall be refunded to the Lessee.

 

3.             The
Certificate shall contain a summary of the said costs, expenses and outgoings
actually incurred by the Lessor during the Accounting Period together with the
provision referred to in paragraph 9 of Part B of and paragraph 9 of Part C
this Schedule and shall be conclusive evidence for the purposes hereof of
the matters which it purports to certify and shall be binding upon the Lessor
and the Lessee (save in the case of manifest error) who shall not be entitled
to dispute or question the amount of the said costs expenses and outgoings
whether or not such costs, expenses and outgoings could have been incurred more
cheaply than actually incurred by the Lessor.

 

4.             Notwithstanding the
foregoing provisions of this Part of this Schedule:

 

4.1           the
first payment of the Interim Charge in respect of the Accounting Period
commencing on 29 September 2004 shall be at the rate of £13,360 per annum
of which the first proportion from 29 September 2004 to the next quarter
day hereafter shall be paid on or before the date hereof;

 

25

 

4.2           if
and whenever Interim Charge shall not be prepared and a copy thereof supplied
to the Lessee as required by paragraph 2.1 of this Part of this Schedule the
Interim Charge may be so prepared and a copy thereof so supplied at any time
after the commencement of the relevant Accounting Period whereupon the Lessee
shall pay to the Lessor a sum equal to the sum or sums which would have been so
payable had the Interim Charge been prepared and a copy thereof supplied as
required by the said paragraph.

 

5.             Any
determination by an expert referred to in this Part of this Schedule shall
be final and binding on the parties (save in the case of manifest error).

 

6.             The
Lessor shall not be concerned in the administration and collection of or
accounting for the Service Charge on an assignment of this Lease and accordingly
the Lessor shall:

 

6.1           not
be required to make any apportionment relative to the assignment; and

 

6.2           be
entitled to deal exclusively with the Lessee in whom this Lease is for the time
being vested (and for this purpose in disregard of any assignment which has not
been registered in accordance with clause 3.20).

 

7.             Any
costs incurred by the Lessor in complying with
its obligations in clauses 4.1 and 4.4 of this Lease shall be excluded from the
Service Charge together with any costs incurred by the Lessor in complying with
similar obligations in respect of the Other Buildings.

 

8.             The Lessor shall use all reasonable
endeavours to consult with the Lessee and other lessees of the Development in
relation to any significant expenditure with regard to the provision of the
services referred to in Part B of this Schedule and with the Lessee
and other lessees of the Building in relation to any significant expenditure
with regard to the provision of the services referred to in Part C of this
Schedule or in relation to any proposed material change in the nature or
extent of the services to be provided.

 

9.             In calculating the Service Charge the Lessor
must itself pay or otherwise accept responsibility for the proportion of costs
and expenses attributable to any Other Lettable Units that are not let or that
are occupied by the Lessor for so long as they are unlet or so occupied or that
are let on terms that do not provide for the Lessee to pay the appropriate proportion
attributable to such Other Lettable Unit.

 

10.           Notwithstanding the provisions of paragraph 3 above the Lessor shall upon
reasonable request provide the Lessee and its agents access to and the facility
to make copies of the books records and other documents relating to the
calculation of the Service Charge the reasonable and proper cost of affording
such access and copies to be borne by the Lessee unless material errors are
discovered in the computation of the Service Charge in which case the
reasonable and proper costs will be borne by the Lessor.

 

Part B

Estate Charge

 

1.             All reasonable and proper costs and expenses
in respect of the following matters:

 

1.1           maintaining repairing resurfacing cleansing and marking out the Parking
Spaces and other parts of the Common Areas designated as car parking spaces including
without

 

26

 

prejudice
to the generality of the foregoing all costs and expenses incurred in providing suitable alternative car parking facilities whilst such works
are being carried out;

 

1.2           provision maintenance repair decoration and renewal of any refuse huts
bins and paladins and compactors for refuse disposal; and disposing of and
arranging for refuse disposal from the Common Areas;

 

1.3           inspecting maintaining repairing and whenever necessary renewing the
Conducting Media lying in under or over the Development so far as the same are
not exclusively within and do not exclusively serve the Premises or any Other
Lettable Unit;

 

1.4           inspecting maintaining cleaning repairing and whenever necessary
resurfacing the roads and footpaths within the Development;

 

1.5           repairing and resurfacing the Parking Spaces and other parts of the
Common Areas designated as car parking spaces and the associated lighting
system including without prejudice to the foregoing all costs and expenses incurred
in providing suitable alternative car parking facilities while such works are
being carried out;

 

1.6           inspecting maintaining repairing and whenever necessary renewing the
lighting system serving the roads footpaths and parking areas within the
Development and all electricity costs associated therewith;

 

1.7           inspecting maintaining repairing and whenever necessary renewing the
security gates and/or intercom and/or entry phone system between the security
gates and the Premises and any Other Lettable Unit and all electricity costs
associated therewith;

 

1.8           maintaining cultivating planting and whenever necessary replacing any
landscaped areas and/or planters within the Development;

 

1.9           inspecting maintaining repairing and whenever necessary renewing the
boundary walls and fences belonging to the Development;

 

1.10         general water and other rates of whatever nature or kind payable in
respect of the Development (other than the Premises and the Other Lettable
Units but for the avoidance of doubt including any management office as
referred to in paragraph (14) below);

 

1.11         providing maintaining and renewing name boards directional signs fire
regulation and security notices;

 

1.12         maintaining supporting repairing cleansing and amending all roads
footpaths walls and fences Conducting Media and other things the use of which
is common to the Development or any part thereof and to any premises neighboring
the Development;

 

1.13         providing security services within the Development including the
provision of security patrols to the extent reasonably necessary;

 

1.14         maintaining repairing cleansing decorating and renewing any part of the
Development designated by the Lessor for use as a management office for the
Development (including a notional rent for the same and any fixtures or
fittings in such office).

 

27

 

2.             All reasonable and proper costs and expenses
in respect of:

 

2.1           effecting
and maintaining such insurances as the Lessor may reasonably deem appropriate
in connection with the Common Areas including insurance against damage by any
of the Insured Risks property owners’ or third party liability risks;

 

2.2           all
valuations carried out from time to time for the purposes of such insurances.

 

3.             All
reasonable and proper costs and expenses incurred by the Lessor or its
surveyors in employing staff for the purposes of or in any way connected with
any of the matters mentioned in this Part of this Schedule or for
security or building maintenance purposes or otherwise in the interests of good
estate management or for the proper enjoyment and benefit of the Development.

 

4.             All
reasonable and proper fees and costs incurred in respect of or in connection
with the preparation of the demands statements Certificates and other charges
mentioned in Part A of this Schedule and of accounts kept for the purpose
thereof.

 

5.             The
reasonable and proper fees of any managing agents employed for the general
management of the Development (including if required by the Lessor the
collection of the rents and/or service charge payments) and if no managing
agents are employed for such purposes a management fee payable to the Lessor
provided that such management fee shall not exceed that which would have been
reasonably payable to independent managing agents.

 

6.             The
reasonable and proper cost of carrying out works or services of any kind
whatsoever which the Lessor may reasonably deem desirable or necessary for the
purpose of maintaining or improving the services in the Development.

 

7.             The
reasonable and proper cost of taking all steps reasonably deemed desirable or
expedient by the Lessor for complying with making representations against or
otherwise contesting the incidence of the provisions of any legislation or
orders or statutory requirements or agreements entered into thereunder
concerning town planning means of escape or other fire precautions public
health highways streets drainage or other matters relating or alleged to relate
to the Development for which the Lessee is not liable hereunder.

 

8.             Such
sum or sums by way of reasonable provision for anticipated future expenditure
in respect of any of the said matters as the Lessor’s auditors accountants or
surveyors (as the Lessor shall from time to time nominate) acting as experts
and not as arbitrators shall decide should be allocated to the Accounting
Period in question as being prudent and reasonable in the circumstances (such
decision to be final and binding on the parties).

 

9.             All
VAT which may be applicable to any of the foregoing services or items save to
the extent that the Lessor can recover the same.

 

28

 

Part C

 

Building
Charge

 

1.             The reasonable and proper costs and expenses
of maintaining repairing cleansing decorating and renewing:

 

1.1           any
central heating air conditioning ventilation and hot water boilers apparatus and installations and Conducting Media
in under or upon the Building and available for enjoyment or use by more than
one lessee of the Building in common with the Lessor and the tenants of other
parts of the Building or in or serving the Common Parts;

 

1.2           the Common Parts and carpets and other fixtures and fittings therein;

 

1.3           any fire alarm system and fire-fighting equipment in the Building;

 

1.4           the window cleaning equipment serving the Building (and the cleaning of
the external windows if the Lessor so determines).

 

2.             The
reasonable and proper cost of lighting the Common Parts.

 

3.             The reasonable and proper cost of fuel and
other running costs relating to the central heating air conditioning
ventilation and hot water boilers apparatus and installations and Conducting
Media.

 

4.             All general and other rates of whatever
nature or kind and all taxes duties levies assessments impositions and outgoings
whatsoever (whether parliamentary parochial local or of any other description)
payable by the Lessor in respect of the Common Parts.

 

5.             All reasonable and proper costs and expenses
incurred by the Lessor or its surveyors in respect of:

 

5.1           the general management of the Building;

 

5.2           maintenance contracts for any lifts and any such central heating air
conditioning ventilation and hot water boilers apparatus and installations;

 

5.3           employing staff for the purposes of or in any way connected with any of
the matters mentioned in this Part of this Schedule or for security
or building maintenance purposes or otherwise in the interests of good estate
management or for the proper enjoyment and benefit of the Building in so far as
this is not covered by the costs and expenses specified in paragraph 3 of Part B
of this Schedule.

 

6.             The reasonable and proper cost of taking all steps
reasonably deemed desirable or expedient by the Lessor for complying with
making representations against or otherwise contesting the incidence of the
provisions of any legislation or orders or statutory requirements thereunder
concerning town planning public health highways streets drainage or other
matters relating or alleged to relate to the Building for which the Lessee is
not liable hereunder in so far as this is not covered by the costs specified in
paragraph 7 of Part B of this Schedule.

 

7.             All reasonable and proper fees and costs
incurred in respect of or in connection with Interim Charges and Certificates
mentioned in Part A of this Schedule in so far as

 

29

 

they
relate to the Building Charge and of account kept and audits made for the purpose
thereof.

 

8.             The reasonable and proper fees of any
managing agents employed by the Lessor for the general management of the
Building in so far as this is not covered by the fees specified in paragraph 5
of Part B of this Schedule.

 

9.             Such sum or sums by way of reasonable
provision for anticipated future expenditure during the Term in respect of any
of the said matters as the Lessor’s auditors accountants or Surveyors (as so
nominated) acting as Experts and not as arbitrators shall decide should be
allocated to the Accounting Period in question as being prudent and reasonable
in the circumstances (such decision to be final and binding on the parties).

 

10.           The
reasonable and proper cost of carrying out works or services of any kind
whatsoever which the Lessor may reasonably deem desirable or necessary for the
purpose of maintaining or improving the services in the Building and the cost
of any other services reasonably provided by the Lessor from time to time for
the benefit of lessees in the Building or in the interests of good estate
management in so far as this is not covered by the costs specified in paragraph
6 of Part B of this Schedule.

 

11.           All VAT which may be applicable to any of the foregoing services or
items save to the extent that the Lessor can recover the same.

 

30

 

SCHEDULE 5

 

Covenants
by the Surety

 

1.             The
Surety (if any) in consideration of the grant of this Lease (or the agreement
to the assignment of this Lease as appropriate)
COVENANTS AND GUARANTEES with and to the Lessor that:

 

1.1           The
Lessee shall punctually pay the rents and perform and observe the covenants and
other terms of this Lease.

 

1.2           If
the Lessee shall make any default in payment of the rents or in performing or
observing any of the covenants or other terms of this Lease the Surety will pay
the rents and perform or observe the covenants or terms in respect of which the
Lessee shall be in default and make good to the Lessor on demand and indemnify
the Lessor against all losses, damages, costs and expenses arising or incurred by the Lessor as a result of such
non-payment, non-performance or non-observance notwithstanding:

 

(a)           any
time or indulgence granted by the Lessor to the Lessee or any neglect or forbearance
of the Lessor in enforcing the payment of the rents or the observance or
performance of the covenants or other terms of this Lease;

 

(b)           that
the terms of this Lease may have been varied by agreement between the parties;

 

(c)           any
other act or thing by which but for this provision the Surety would have been released.

 

1.3           These
provisions are to take effect immediately on the grant (or the assignment as appropriate)
of the Lease to the Lessee and are to remain in force so long and to the extent
that the Lessee is not released by law from liability for any of the covenants
and other terms of this Lease.

 

2.             The
Surety FURTHER COVENANTS with the Lessor that if this Lease is disclaimed or
forfeited prior to any lawful assignment by the Lessee of this Lease the Lessor
may within six months after the disclaimer or forfeiture by notice in writing
require the Surety to accept a new lease of the Premises for a term equivalent
to the residue which if there had been no disclaimer or forfeiture would have
remained of the Term at the same rent and subject to the like covenants and
conditions as are payable under and applicable to the tenancy immediately
before the date of such disclaimer or forfeiture (the said new lease and the
rights and liabilities thereunder to take effect as from the date of such
disclaimer or forfeiture) arid in such case the Surety shall pay the Lessor’s
costs incurred by the Lessor in connection with such new lease and the Surety
shall accept such new lease accordingly and will execute and deliver to the
Lessor a Counterpart thereof.

 

3.             If
this Lease is disclaimed or forfeited and for any reason the Lessor does not
require the Surety to accept a new lease of the Premises in accordance with
paragraph 2 hereof the Surety shall pay to the Lessor on demand an amount equal
to the difference between any money received by the Lessor for the use or
occupation of the Premises less any expenditure incurred by the Lessor in
connection with the Premises and the rents which would have been payable under
the Lease but for such disclaimer or forfeiture in both cases for the period
commencing with the date of such disclaimer or forfeiture and ending on
whichever is the earlier of the following dates:

 

(a)           the
date six months after such disclaimer or forfeiture; and

 

(b)           the
date (if any) upon which the Premises are relet.

 

31

 

4.             The
Surety FURTHER COVENANTS and guarantees the obligations of the Lessee under any
Authorised Guarantee Agreement entered into by the Lessee pursuant to the terms
of this Lease.

 

5.             For
the purposes of these provisions references to the Lessee are to the Lessee in
relation to whom the Surety’s covenant is given but not any lawful assignee of
such Lessee.

 

32

 

SCHEDULE 6

 

Authorised Guarantee Agreement

 

1.             The
Lessee in consideration of the agreement to the assignment of the Lease COVENANTS
AND GUARANTEES with and to the Lessor that:

 

1.1           The
Assignee shall punctually pay the rents and perform and observe the covenants
and other terms of the Lease.

 

1.2           If
the Assignee shall make any default in payment of the rents or in performing or
observing any of the covenants or other terms of the Lease the Lessee will pay
the rents and perform and observe the covenants or terms in respect of which
the Assignee shall be in default and make good to the Lessor on demand and
indemnify the Lessor against all losses, damages, costs and expenses arising or
incurred by the Lessor as a result of such non-payment, non-performance or
non-observance notwithstanding:

 

(a)           any
time or indulgence granted by the Lessor to the Assignee or any neglect or forbearance
of the Lessor in enforcing the payment of the rents or the observance or
performance of the covenants or other terms of the Lease; 

 

(b)           that
the terms of the Lease may have been varied by agreement between the parties
(but subject always to section 18 Landlord and Tenant (Covenants) Act 1995);

 

(c)           any
other act or thing by which but for this provision the Lessee would have been
released.

 

2.             The
Lessee FURTHER COVENANTS with the Lessor that if the Lease is disclaimed prior
to any lawful assignment by the Assignee of the Lease the Lessor may within six
months after the disclaimer require the Lessee to accept a new lease of the
Premises for a term equivalent to the residue which if there had been no
disclaimer would have remained of the Term at the same rent and subject to the
like covenants and conditions as are payable under and applicable to the
tenancy immediately before the date of such disclaimer (the said new lease and
the rights and liabilities thereunder to take effect as from the date of such
disclaimer) and in such case the Lessee shall pay the Lessor’s costs incurred
by the Lessor in connection with such new lease and the Lessee shall accept
such new lease accordingly and will execute and deliver to the Lessor a Counterpart
thereof.

 

3.             If
the Lease is disclaimed and for any reason the Lessor does not require the
Lessee to accept a new lease of the Premises in accordance with paragraph 2 the
Lessee shall pay to the Lessor on demand an amount equal to the difference between
any money received by the Lessor for the use or occupation of the Premises less
any expenditure incurred by the Lessor in connection with the Premises and the
rents which would have been payable under the Lease but for such disclaimer in
both cases for the period commencing with the date of such disclaimer and
ending on whichever is the earlier of the following dates:

 

(a)           the
date six months after such disclaimer;

 

(b)           the
end or sooner determination of the Term. 

 

33

 

4.             Notwithstanding
any of the foregoing provisions the Lessee:

 

(a)           shall
not be required to guarantee in any way the liability for the covenants and other
terms of the Lease of any person other than the Assignee; and

 

(b)           shall
not be subject to any liability, restriction or other requirement (of whatever
nature) in relation to any time after the Assignee is by law released from the
covenants and other terms of the Lease.

 

5.            No
person other than a contracting party may enforce any provision of this Deed by
virtue of the Contracts (Rights of Third Parties) Act 1999.

 

6.             Words
and expressions used herein shall have the same meaning as in the Lease.

 

34

 

	
  SIGNED as a deed
  by [ILLEGIBLE] Moody

  	
  )

  	
   

  	
   

  
	
  and J.A. Newstead

  	
  )

  	
  /s/ [ILLEGIBLE] Moody

  	
   

  
	
  as attorneys for Felaw Maltings Ipswich

  	
  )

  	
   

  	
   

  
	
  (No. 1) Limited in the presence of:

  	
  )

  	
  /s/ J.A. Newstead

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Jeremy Pickles

  	
   

  	
  )

  	
  /s/ Jeremy Pickles

  	
   

  
	
  Name of Witness and
  Signature

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Atlantic House Holborn Viaduct London ECIA 2FA

  	
  )

  	
   

  	
   

  
	
  Address

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED as a deed by [ILLEGIBLE]

  	
  )

  	
  /s/ [ILLEGIBLE] Moody

  	
   

  
	
  and J.A. Newstead

  	
  )

  	
   

  	
   

  
	
  as attorneys for Felaw Maltings Ipswich

  	
  )

  	
  /s/ J.A. Newstead

  	
   

  
	
  (No. 2) Limited in the presence of:

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Jeremy Pickles

  	
   

  	
  )

  	
  /s/ Jeremy Pickles

  	
   

  
	
  Name of Witness and
  Signature

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Atlantic House Holborn Viaduct London ECIA 2FG

  	
  )

  	
   

  	
   

  
	
  Address

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SIGNED as a deed by [ILLEGIBLE] Moody

  	
  )

  	
  /s/ [ILLEGIBLE] Moody

  	
   

  
	
  and J.A. Newstead

  	
  )

  	
   

  	
   

  
	
  as attorneys for Mars Pension Trustees

  	
  )

  	
  /s/ J.A. Newstead

  	
   

  
	
  Limited in the presence of:

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Jeremy Pickles

  	
   

  	
  )

  	
  /s/ Jeremy Pickles

  	
   

  
	
  Name of Witness and
  Signature

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Atlantic House Holborn Viaduct London ECIA 2FG

  	
  )

  	
   

  	
   

  
	
  Address

  	
  )

  	
   

  	
   

  
						

 

35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]