Document:

Exhibit 4.19

 

 

 

	Dated	26th
    June 2014	 

 

		(1)	BRIXTON
                                         PROPERTIES LIMITED

 

		(2)	RRSAT
                                         EUROPE LIMITED

 

	 
	Lease
	 

 

relating
to premises known as Unit 3, Victoria Industrial Estate, Victoria Road, Acton, London W3 6UU

 

	Eversheds LLP	Tel 0845 497 9797
	One Wood Street	Fax 0845 497 4919
	London	Int +44 207 919 4500
	EC2V 7WS	DX 154280 Cheapside 8
	 	www.eversheds.com

 

    	 

    	 

    

 

CONTENTS

	 	 	 	 
	Lease Particulars	 
	 	 	 	 
	Clause	 	 	Page
	1	DEFINITIONS	1
	2	INTERPRETATION	6
	3	DEMISE	7
	 	3.1	Rent	7
	 	3.2	Additional rent	8
	4	TENANT’S CONVENANTS	8
	 	4.1	Payment of rents	8
	 	4.2	Interest on late payments	8
	 	4.3	Payment of outgoings	8
	 	4.4	Exterior maintenance	9
	 	4.5	Interior painting	9
	 	4.6	Repair	9
	 	4.7	Yielding up	 10
	 	4.8	Reinstatement of alterations	10
	 	4.9	Landlord’s access	 11
	 	4.10	Default remedies of the Landlord	 11
	 	4.11	Signage, aerials and masts etc.	12
	 	4.12	Use	 12
	 	4.13	Nuisance	 12
	 	4.14	Estate regulations	 13
	 	4.15	Interim Charge and Service Charge	 13
	 	4.16	Acts prejudicial to insurance	 13
	 	4.17	Safeguarding the Premises	 13
	 	4.18	Planning applications and community infrastructure levy	 14
	 	4.19	Alterations	 15
	 	4.20	Statutory obligation	 15
	 	4.21	Alienation	 16
	 	4.22	Registration of dealings	21
	 	4.23	Re-letting and sale boards	 22
	 	4.24	Costs of licences and notices as to breach of covenant	22
	 	4.25	Indemnity	23
	 	4.26	Value added tax	23
	 	4.27	Defects	23
	 	4.28	Documents affecting title	23
	 	4.29	EPC Information	24
	5	LANDLORD’S CONVENANTS	24
	 	5.1	Quiet enjoyment	 24
	 	5.2	To carry out services	 24
	6	INSURANCE	25
	 	6.1	Landlord to insure the Premises	25
	 	6.2	Landlord to reinstate damage caused by Insured Risks	 25

 

    	 

    	 

    

 

	 	6.3	Landlord to provide details of insurance policy	25
	 	6.4	Benefits of insurance	 25
	 	6.5	Abatement of rent	25
	 	6.6	Tenant’s insurance obligations	26
	 	6.7	Landlord’s option to determine where substantial reconstruction is required following damage by an Insured Risk	27
	 	6.8	Mutual option to determine following failure to reinstate within six months of damage caused by an Insured Risk	27
	 	6.9	Landlord to notify the Tenant of any Insured Risk becoming an Uninsured Risk	 27
	 	6.10	Landlord’s option following damage by an Uninsured Risk	28
	7	CONDITIONS	28
	 	7.1	Re-possession on Tenant’s default	28
	 	7.2	Common Parts	29
	 	7.3	Works to adjoining property	29
	 	7.4	Liability of Landlord	30
	 	7.5	No acquisition of easements	30
	 	7.6	Removal of goods after end of Term	 30
	 	7.7	Notices	31
	 	7.8	Contracts (Rights of Third Parties) Act 1999	31
	8	RENT REVIEW	31
	 	8.1	Definitions	31
	 	8.2	Determination of the revised Rent	34
	 	8.3	General	35
	9	SUSTAINABILITY	35
	 	9.1	Co-operation	35
	 	9.2	Data sharing	35
	10	OPTION TO DETERMINE	 36
	Schedules	 
	1	Description of the Premises	38
	2	Rights, exceptions and reservations	44
	 	PART 1: THE RIGHTS	44
	 	PART 2: THE EXCEPTIONS AND RESERVATIONS	44
	3	Obligations of the Surety	46
	4	Rent review memorandum	49
	5	Documents and matters affecting title	50
	6	Estate Costs, Interim Charge and Service Charge	51
	 	PART 1 - ESTATE COSTS	51
	 	PART 2 - PROVISIONS RELATING TO THE PAYMENT OF THE INTERIM CHARGE AND THE SERVICE CHARGE	53

 

    	 

    	 

    
 

PARTICULARS

	 	 	 
	PART 1:	LAND REGISTRY PARTICULARS	 
	 	 	 
	LR1.	Date of lease	26th June 2014
	 	 	 
	LR2.	Title number(s)	 
	 	 	 
	LR2.1	Landlord’s title number(s)	NGL308194.
	 	 	 
	LR2.2	Other title numbers	NGL430432.
	 	 	 
	LR3.	Parties to this lease	 
	 	 	 
	 	Landlord	BRIXTON
                                    PROPERTIES LIMITED (incorporated and registered in England and Wales under company registration number 05140315), the
                                    registered office of which is at Cunard House, 15 Regent Street, London SW1Y 4LR. 

	 	 	 
	 	Tenant	RRSAT
                                    EUROPE LIMITED (incorporated and registered in England and Wales under company registration number 2220246), the
                                    registered office of which is at 6th Floor, 25 Farringdon Street, London EC4A 4AB.

	 	 	 
	LR4	Property	In
                                    the case of a conflict between this clause and the remainder of this lease then, for the purposes
                                    of registration, this clause shall prevail.

         

        

        Unit
        3, Victoria Industrial Estate, Victoria Road, Acton, London W3 6UU and more particularly described in Schedule 1
        to the Lease and shown edged red on the Plan.

        

	 	 	 
	LR5.	Prescribed statements etc	 
	 	 	 
	LR5.1	Statements prescribed under rules
179 (dispositions in favour of a charity), 180
(dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban Development Act 1993) of
the Land Registration Rules 2003	None.

 

    	 

    	 

    

 

 

 

    	 

    	 

    

 

	LR5.2	This lease is made under, or by reference to, provisions of:	None.
	 	 	 
	LR6.	Term for which the Property is leased	
        From and including the date of this Lease.

         

        To and including

        25th June 2029

	 	 	 
	LR7.	Premium	None.
	 	 	 
	LR8.	Prohibitions or restrictions on disposing of this lease	This Lease contains a provision that prohibits or restricts dispositions.
	 	 	 
	LR9.	Rights of acquisition etc	 
	 	 	 
	LR9.1	Tenant’s contractual rights to renew this lease, to acquire the reversion or another lease of the Property, or to acquire an interest in other land	None.
	 	 	 
	LR9.2	Tenant’s covenant to (or offer to) surrender this lease	None.
	 	 	 
	LR9.3	Landlord’s contractual rights to acquire this lease	None.
	 	 	 
	LR10.	Restrictive covenants given in this lease by the Landlord in respect of land other than the Property	None.
	 	 	 
	LR11.	Easements	 
	 	 	 
	LR11.1	Easements granted by this lease for the benefit of the Property	The easements granted for the benefit of the Property as specified in this lease at Part 1 of Schedule 2.

 

    	 

    	 

    

 

	LR11.2	Easements granted or reserved by this lease over the Property for the benefit of other property	The easements granted or reserved by this lease over the
    Property as specified in this lease at Part 2 of Schedule 2.
	 	 	 
	LR12.	Estate rentcharge burdening the Property	None.
	 	 	 
	LR13.	Application for standard form of restriction	None.
	 	 	 
	LR14.	Declaration of trust where there is more than one person comprising the Tenant	Not applicable.

 

PART 2: FURTHER PARTICULARS

 

	Estate	The area from time to time comprising the Landlord’s estate known as Victoria Industrial Estate, Victoria Road, Acton, London W3 6UU of which the Premises form part as currently shown edged blue on the Plan or on such other land of a greater or lesser extent as the Landlord may determine and notify to the Tenant in writing from time to time.
	 	 
	Premises	The land and building described in Schedule 1 and known as Unit 3, Victoria Industrial Estate, Victoria Road, Acton, London W3 6UU as shown edged red on the Plan.
	 	 
	Commencement Date	The date of this Lease.
	 	 
	Term	Fifteen years together with the period of any continuation or extension of the tenancy granted by this lease.
	 	 
	Rent Commencement Date	26th December 2014
	 	 
	Service Charge Commencement Date	The date of this Lease.
	 	 
	Rent	From and including the Rent Commencement Date until and including 25th June 2016, fifty eight thousand five hundred pounds (£58,500) per annum; and

 

    	 

    	 

    

 

	 	from and including 26th June 2016 until the expiry of the Term, one hundred and seventeen thousand pounds (£117,000) per annum,

 

subject to review as provided in this lease.
	 	 
	Review Dates	26th June 2019 and 26 June 2024
	 	 
	Break Date	25th June 2024
	 	 
	Permitted Use	
        Use for electronic communications services including
playout / channel transmission or such other purpose within Class B1(c), B2 or B8 of the Schedule to the Town and Country Planning
(Use Classes) Order 1987 as the Landlord may first approve in writing (such approval not to be unreasonably withheld). 

 

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

 

    	 

    	 

    

 

THIS LEASE is made on the date stated in LR1.

 

BETWEEN 

	 	 	 
	(1)	the Landlord named in LR3 (the “Landlord”); and
	 	 
	(2)	the Tenant named in LR3 (the “Tenant”).
	 	 
	OPERATIVE PROVISIONS
	 
	1.	DEFINITIONS	 
	 	 	 
	 	In this Lease, the following words and expressions have the following meanings:
	 	 	 
	 	“Accounting Period”	means a period commencing on the first day of January and ending on the thirty-first day of December in any year or such other period as the Landlord shall notify to the Tenant in writing
	 	 	 
	 	“Act”	means the Landlord and Tenant (Covenants) Act 1995
	 	 	 
	 	“Authorised Guarantee Agreement”	has the meaning defined in and for the purposes of section 16 of the Act in the form of the agreement set out in Schedule 7 subject to such amendments as may be required to keep the agreement within the definition
	 	 	 
	 	“Common Parts”	means all parts of the Estate not from time to time let or intended to be let including all walls (including retaining walls), fences, car parks, service areas, footpaths, unadopted roads, circulation areas, forecourts, landscaped areas and structures, refuse areas and structures, estate office, security guards’ office, closed circuit television monitoring office, landscaping compound, Conducting Media and other amenities from time to time within or appurtenant to the Estate the use or enjoyment of which is common to some or all of the tenants or occupiers of the Estate
	 	 	 
	 	“Conducting Media”	means all sewers, drains, pipes, wires, watercourses, subways, cables, apparatus, conduits and any other media or works for the conduct or transmission of any service matter or material

  

    	1 

     

    

  

	 	 	 	 
	 	“Electronic Communications Apparatus”	has the meaning given to it by the Communications Act 2003
	 	 	 	 
	 	“Environmental Performance”	means all or any of the following arising from the operation or use of the Premises:
	 	 	 
	 	 	(a)	energy consumption;
	 	 	 	 
	 	 	(b)	water consumption and discharge;
	 	 	 	 
	 	 	(c)	waste generation and management;
	 	 	 	 
	 	 	(d)	generation and/or emission of greenhouse gases;
	 	 	 	 
	 	 	(e)	other adverse environmental Impacts
	 	 	 	 
	 	“Environmental Performance Data”	means data in respect of energy consumption, water use and discharge, waste production and recycling relating to the Premises and/or the Common Parts
	 	 	 	 
	 	“EPC”	means both an energy performance certificate and a recommendation report (as each term is defined in The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007)
	 	 	 	 
	 	“Estate Costs”	has the meaning given in Part 1 of Schedule 6
	 	 	 	 
	 	“Full Reinstatement Value”	means the costs (including demolition professional fees and any value added tax payable) which would be likely to be incurred in carrying out repair or reinstatement in accordance with the requirements of this lease at the time when such repair or reinstatement is likely to take place having regard to current building techniques and materials
	 	 	 	 
	 	“Group”	means a group of companies within the meaning of section 42 of the Landlord and Tenant Act 1954

  

    	2 

     

    

  

	 	 	 	 	 
	 	“Guarantor”	means a Surety or any person who has entered into an authorised guarantee agreement pursuant to this lease
	 	 	 	 	 
	 	“Insurance Rent”	means:	 	 
	 	 	 	 	 
	 	 	(a)	a sum or sums of money equal to the reasonable expense incurred by the Landlord (before any commission) and including any insurance premium tax:
	 	 	 	 	 
	 	 	 	(i)	in effecting or maintaining insurance in accordance with clause 6.1 (including any increased premium payable in respect of the Premises or any neighbouring property by reason of any act or omission by (or permitted by) the Tenant or an undertenant);
	 	 	 	 	 
	 	 	 	(ii)	in effecting or maintaining insurance against Loss of Rent; and
	 	 	 	 	 
	 	 	 	(iii)	in effecting or maintaining Insurance against public liability of the Landlord in connection with any matter relating to the Premises, their occupation or use; and
	 	 	 	 	 
	 	 	(b)	a fair and reasonable proportion (as certified conclusively by the landlord’s surveyor to be proper) of the reasonable expense incurred by the Landlord (before any commission) and including any insurance premium tax in effecting or maintaining insurance against public liability of the Landlord in connection with any matter relating to the Estate, its occupation or use

  

    	3 

     

    

  

	 	 	 	 
	 	“Insured Risks”	means:
	 	 	 	 
	 	 	(a)	fire, lightning, earthquake, subsidence, heave, landslip, explosion, terrorism, aircraft, riot, storm, flood, burst pipes, malicious damage and impact damage; and
	 	 	 	 
	 	 	(b)	such other insurable risks and on such terms as the Landlord may from time to time reasonably consider necessary, 
	 	 	 	 
	 	 	except to the extent that any such risk is for the time being an Uninsured Risk
	 	 	 	 
	 	“Interim Charge”	means such reasonable sum to be paid on account of the Service Charge in respect of each Accounting Period as the Landlord shall specify based upon the anticipated Estate Costs for the relevant Accounting Period
	 	 	 	 
	 	‘‘Landlord’s Energy Management Costs”	means the costs to the Landlord of:
	 	 	 	 
	 	 	(a)	acquiring allowances of any nature and paying all present and future taxes, duties, or assessments of any nature relating to the supply or consumption of energy, or relating to emissions consequential upon that supply or consumption (and whether those emissions are direct or indirect);
	 	 	 	 
	 	 	(b)	monitoring the supply and consumption of energy and such emissions; and
	 	 	 	 
	 	 	(c)	gathering and processing information relating to the supply and consumption of energy and to such emissions,
	 	 	 	 
	 	 	and in this definition “Landlord” means the group of undertakings of which the Landlord is a member for the purposes of such allowances or taxes

  

    	4 

     

    

  

	 	 	 	 
	 	“Loss of Rent”	means the loss of the rent reserved by this lease under clauses 3.1 and 3.2.1 for such period (being not less than three years) as may reasonably be required by the Landlord from time to time having regard to the likely period required for reinstatement in the event of both partial and total destruction and in an amount which takes into account:
	 	 	 	 
	 	 	(a)	(in any case where the Rent comprises one or more fixed sums) the highest annual sum referred to in the definition of “Rent”; and
	 	 	 	 
	 	 	(b)	potential increases of Rent in accordance with clause 8
	 	 	 	 
	 	“Neighbouring Unit”	means the premises known as;
	 	 	 	 
	 	 	(a)	Unit 2, Victoria Industrial Estate, Victoria Road, Acton, London W3 6UU; or
	 	 	 	 
	 	 	(a)	Unit 4, Victoria Industrial Estate, Victoria Road, Acton, London W3 6UU;
	 	 	 	 
	 	“Particulars”	means the particulars set out at the front of this lease
	 	 	 	 
	 	“Plan”	means the plan annexed to this lease
	 	 	 	 
	 	“Planning Acts”	Includes the Town and Country Planning Act 1990, the Planning (Listed Buildings and Conservation Areas) Act 1990, the Planning (Hazardous Substances) Act 1990 and the Planning (Consequential Provisions) Act 1990
	 	 	 	 
	 	“Prescribed Rate”	means four per cent above the base rate of National Westminster Bank Plc from time to time (or such other clearing bank as the Landlord shall nominate) or (if such rate shall cease to be published) such other reasonable or comparable rate as the Landlord shall from time to time designate
	 	 	 	 
	 	“Service Charge”	means such sum of money as shall be equal to a fair and proper proportion attributable to the Premises (as determined by the Landlord acting reasonably) of the Estate Costs

  

    	5 

     

    

  

	 	 	 
	 	“Surety”	means any person who has entered into a guarantee (on the terms set out in Schedule 3 or otherwise)
	 	 	 
	 	“Tenant Covenants”	means “tenant covenants” as defined in section 28 of the Act
	 	 	 
	 	“Termination Date”	means the date of expiration or sooner determination of the Term (however arising)
	 	 	 
	 	“Uninsured Risk”	means any risk listed in paragraph (a) or referred to in paragraph (b) of the definition of Insured Risks against which the Landlord does not insure (or in respect of which there is a partial exclusion to the extent that the partial exclusion applies) because insurance cover for that risk is either unavailable in the London insurance market, or is available there only at a premium or subject to conditions which in the Landlord’s reasonable discretion are unacceptable

  

	2.	INTERPRETATION
	 	 
	2.1	The expressions the “Landlord” and the “Tenant” shall wherever the context so admits include their respective successors in title.
	 	 
	2.2	Where the Tenant or the Surety (if any) for the time being are two or more persons the terms the “Tenant” or the “Surety” (if any) include the plural number and obligations expressed or implied to be made by such party are deemed to be made by such persons jointly and each of them severally.
	 	 
	2.3	Words importing one gender include all other genders and words importing the singular include the plural and vice versa.
	 	 
	2.4	References to this “lease” means this deed as varied or supplemented by any document which is supplemental to it.
	 	 
	2.5	References in this lease to any statute or legislation (whether specific or general) include any other statute or legislation replacing amending or supplementing the same and any orders, regulations, bye-laws, notices, permissions, approvals or consents under them.

 

    	6 

     

    

 

	 	 	 
	2.6	The Particulars and the details
    and expressions contained in it shall be included in and form part of this lease.
	 	 	 
	2.7	An obligation of the Tenant
    not to do something includes an obligation not to cause, permit, suffer or allow that thing to be done and a reference to
    any act, or to any act or omission, of the Tenant includes any act, or any act or omission, of any other person at the
    Premises with the Tenant’s express or implied authority.
	 	 	 
	2.8	The words “include”
and “including” are deemed to be followed by the words “without limitation” and general words introduced
by the word “other do not have a restrictive meaning by reason of being preceded by words indicating a particular class
of acts, things or matters.
	 	 	 
	2.9	References to the Premises
    include any part of the Premises.
	 	 	 
	2.10	The rights granted in Part
    1 of Schedule 2 are granted only to the extent that the Landlord has power to grant them and are not granted to the Tenant
    exclusively unless specifically stated to the contrary, but are to be used in common with the Landlord and any other persons
    authorised.
	 	 	 
	2.11	The rights reserved and excepted
    in Part 2 of Schedule 2 may be exercised by the Landlord and those authorised by the Landlord.
	 	 	 
	3.	DEMISE
	 	 	 
	 	The Landlord demises to
    the Tenant the Premises together with the rights referred to in Part 1 of Schedule 2 but subject to the exceptions
    and reservations referred to in Part 2 of Schedule 2 and to any documents and matters referred to in Schedule
    5 to hold to the Tenant for the Term starting on the Commencement Date yielding and paying during the Term:
	 	 
	3.1	Rent
	 	 	 
	 	Yearly the Rent (together
    with any value added tax) and all increases arising from any review pursuant to the provisions in this lease for the review
    of rent to be paid by equal quarterly payments in advance on 25 March, 24 June, 29 September and 25 December in every year
    the first payment for the period from and including the Rent Commencement Date up to and including the day immediately preceding
    the quarter day next after the Rent Commencement Date to be made on the Rent Commencement Date.

 

    	7

    	 

    

	 	 	 
	3.2	Additional
    rent
	 	 	 
	 	As additional rent:
	 	 	 
	 	3.2.1	such amounts (if any) as are referred
    to in clause 4.15 to be paid as there stated; and
	 	 	 
	 	3.2.2	the Insurance Rent to be paid within fourteen
    days of demand,
	 	 	 
	 	and in each case such amounts
    shall be recoverable by distress in the same way as rent in arrear.
	 	 	 
	4.	TENANT’S COVENANTS
	 	 	 
	 	The Tenant covenants with
    the Landlord as follows:
	 	 	 
	4.1	Payment
    of rents
	 	 	 
	 	To pay the respective rents
    and sums of money reserved and made payable at the times and in the manner in which the same are set out or referred to in
    clause 3 without any deduction (save as required by law) or legal or equitable set-off and to make all such payments
    to the Landlord on the due date through the Tenant’s bankers by the direct debit system.
	 	 	 
	4.2	Interest
    on late payments
	 	 	 
	 	If the Tenant fails to
    pay any rents or any other sum payable under this lease when the same are due (in the case of Rent whether formally demanded
    or not) to pay to the Landlord as additional rent (but without prejudice to any other rights of the Landlord including those
    under clause 7.1) interest on all such rents or other sums from the due date for payment until the date actually paid
    at the Prescribed Rate current at such due date and any such interest shall be recoverable by the Landlord as rent in arrear.
	 	 	 
	4.3	Payment
    of outgoings
	 	 	 
	 	4.3.1	To pay and indemnify the Landlord against
    all existing and future rates, duties, taxes, assessments and other outgoings whatsoever imposed or charged upon the Premises
    (or in respect or by reason of any works carried out by or on behalf of the Tenant at the Premises) or upon the owner or occupier
    attributable to or in respect of the Premises other than any taxes payable by the Landlord in connection with any dealing
    with or disposition of the reversion to this lease or any taxes (other than value added tax and insurance premium tax or similar
    taxes) payable by the Landlord by reason of the receipt of any of the rents due under this lease.
	 	 	 
	 	4.3.2	To pay all charges relating to the supply
    and consumption of electricity, gas, water, telecommunications and other services to or at the Premises, including connection
    and hire charges.

 

    	8

    	 

    

	 	 	 
	 	4.3.3	Where any of the charges payable under
    clauses 4.3.1 or 4.3.2 relate to other property as well as the Premises and are not recoverable as Estate Costs,
    the amount to be paid by the Tenant will be a fair proportion of the whole of the amount charged or payable.
	 	 	 
	4.4	Exterior
    maintenance
	 	 	 
	 	In every fifth year and in
    the last year of the Term to prepare and paint the outside of the building erected on the Premises where usually or previously
    so painted in a good and workmanlike manner and otherwise properly to clean, treat and decorate other parts of the outside
    of the building as the same ought to be cleaned, treated and decorated (such painting and decorating to be carried out in
    colours and patterns first approved in writing by the Landlord) and whenever necessary to renew or replace all seals and mastics.
	 	 	 
	4.5	Interior
    painting
	 	 	 
	 	In every fifth year and in
    the last year of the Term to prepare and paint all the interior of the building erected on the Premises where usually or previously
    so painted in a good and workmanlike manner (all such painting to be carried out in colours and patterns first approved in
    writing by the Landlord and except in the last year of the Term such approval not to be unreasonably withheld or delayed).
	 	 	 
	4.6	Repair
	 	 	 
	 	4.6.1	Well and substantially to repair and maintain
    the Premises (and the walls, fences, roads and Conducting Media in, on or under the Premises) and at all times keep them in
    good and substantial repair and condition.
	 	 
	 	4.6.2	Damage by any of the Insured Risks shall
    be excepted from the Tenant’s obligation in clause 4.6.1, unless the insurance moneys are withheld in whole or
    in part or the policy avoided by reason of any act or omission (including any failure by the Tenant to notify the Landlord
    of the relevant damage or destruction) on the part of the Tenant or any undertenant or any employee, contractor or invitee
    of either of them.
	 	 
	 	4.6.3	To keep the Premises clean and tidy and
    free from rubbish and waste materials.
	 	 
	 	4.6.4	Subject to clause 4.6.5 to keep
    such part of the Premises (if any) as well-maintained landscaped areas and in accordance with any general scheme for the Estate
    from time to time implemented by the Landlord.

 

    	9

    	 

    

	 	 	 
	 	4.6.5	If the Landlord so requires at any time
    or from time to time not to do the things referred to in clause 4.6.4 (or such of them as may be notified to the Tenant)
    but instead to pay to the Landlord within seven days of demand the reasonable costs incurred by the Landlord In doing so.
	 	 
	 	4.6.6	To use reasonable endeavours to minimise
    the extent of any damage or disrepair caused by any of the Insured Risks or an Uninsured Risk.
	 	 	 
	4.7	Yielding up 
	 	 	 
	 	At the Termination Date:
	 	 	 
	 	4.7.1	to yield up the Premises in such state
    of repair and condition as is consistent with the full and due compliance by the Tenant with its obligations under this lease;
	 	 	 
	 	4.7.2	to remove all tenant’s trade fixtures,
    fittings, furniture and effects and any signs erected by or at the instance of the Tenant or any other occupier;
	 	 	 
	 	4.7.3	to replace any landlord’s fixtures
    and fittings which shall be missing, broken, damaged or destroyed with others of equivalent quality and value; and
	 	 	 
	 	4.7.4	to replace all the carpeting within the
    Premises with new carpeting of a quality, design and colour similar to the quality, design and colour of the carpeting supplied
    by the Landlord at the beginning of the Term (the quality, design and colour of such new carpeting to be approved by the Landlord
    whose approval shall not be unreasonably withheld or delayed), 
	 	 	 
	 	making good any damage
    caused by the performance of such obligations to the reasonable satisfaction of the Landlord.
	 	 	 
	4.8	Reinstatement
    of alterations
	 	 	 
	 	4.8.1	At the Termination Date (unless or
    to the extent otherwise required in writing by the Landlord) to carry out such works as shall be necessary or desirable in
    order to remove any and all alterations and additions made to the Premises either during or prior to the Term and to ensure
    that the Premises conform with the description in Schedule 1,
	 	 
	 	4.8.2.	All such works shall be carried out to
    the reasonable satisfaction of the Landlord and the Tenant shall apply for any necessary planning permission or approval which
    may be required under the Planning Acts or other legislation.

 

    	10

    	 

    

	 	 	 
	4.9	Landlord’s
    access
	 	 	 
	 	To permit the Landlord or
    its agents at all times during the Term during reasonable hours in the day by appointment or on 72 hours written notice (including
    without limitation notice by e-mail) (or, in the case of emergency, at any time without notice) with or without workmen and
    others to enter the Premises for the purpose of:
	 	 	 
	 	4.9.1	ascertaining that the covenants and conditions
    of this lease have been performed and observed by the Tenant;
	 	 	 
	 	4.9.2	examining (including opening up floors,
    walls and cellings where necessary to examine) the state of repair and condition of the Premises;
	 	 	 
	 	4.9.3	taking Inventories of the Landlord’s
    fixtures;
	 	 	 
	 	4.9.4	carrying out works on the adjoining property
    of the Landlord;
	 	 	 
	 	4.9.5	any intrusive testing for environmental
    purposes; and/or
	 	 
	 	4.9.6	exercising any of the exceptions and
    reservations referred to in Part 2 of Schedule 2,
	 	 	 
	 	provided that the Landlord
    shall make good any damage caused to the Premises by such entry and the exercise of such rights to the reasonable satisfaction
    of the Tenant and in the exercise of such rights the Landlord shall cause as little disturbance or disruption to the Tenant
    as reasonably practicable.
	 	 	 
	4.10	Default
    remedies of the Landlord
	 	 
	 	If the Tenant fails to comply
    with any of its obligations In this Lease, the Landlord may give the Tenant written notice of that failure, and the Tenant
    shall remedy the failure within three months (or earlier in case of emergency) of service of that notice. If the Tenant fails
    to do this, the Landlord may enter the Premises and carry out any works or do anything else which may be needed to remedy
    the Tenant’s failure to comply with its obligations under this lease, and any reasonable costs and expenses properly
    incurred by the Landlord (including the Landlord’s surveyors and other professional fees) together with interest thereon
    at the Prescribed Rate current at the date one month after service of such notice for the period from that date to the date
    of payment will be a debt due from the Tenant payable on demand and may be recovered by the Landlord as if it were additional
    rent.
	 	 	 

    	11

    	 

    

 

	 	 	 
	4.11	Signage, aerials and masts etc
	 	 	 
	 	4.11.1	Not to erect any pole, mast, aerial or satellite dish or to install any Electronic Communications Apparatus save as permitted by clause 4.11.4 on the Premises.
	 	 	 
	 	4.11.2	Not to erect or display any sign, noticeboard or advertisement on the Premises save in
    accordance with clauses 4.11.3.
	 	 	 
	 	4.11.3	The Tenant may without the consent of the Landlord erect a sign showing the Tenant’s corporate logo on the signage board provided for such purpose at the Premises by the Landlord.
	 	 	 
	 	4.11.4	The Tenant may with the prior written approval of the Landlord (such approval not to be unreasonably withheld) install Electronic Communications Apparatus for the purposes of operating and running its business from the Premises only and not for any other purposes or for use by any third party.
	 	 	 
	4.12	Use
	 	 	 
	 	4.12.1	Not to use the Premises otherwise than for the Permitted Use.
	 	 	 
	 	4.12.2	Not at any time to store anything outside the building erected on the Premises.
	 	 	 
	 	4.12.3	To use only for the parking of vehicles those parts of the Premises designated for such purpose.
	 	 	 
	 	4.12.4	Not to use or carry out from the Premises any electroplating panel beating or spray painting.
	 	 	 
	4.13	Nuisance
	 	 	 
	 	4.13.1	Not to use the Premises for any illegal purpose nor to carry out on or from the Premises any noisy, noxious, dangerous or offensive act activity or business nor anything which may be or become a nuisance, damage, annoyance or inconvenience to the Landlord or any of its tenants or the occupiers of any premises in the neighbourhood and in particular not to do or permit to be done anything which might cause electronic or radio interference with any adjoining or neighbouring premises.
	 	 	 
	 	4.13.2	Not to do anything which would or might lead to any contamination of the Premises or pollution of the environment or lead to the pollution, obstruction, damaging or overloading of the Conducting Media and to carry out (or at the Landlord’s election to pay to the Landlord the reasonable and proper costs and fees of carrying out) all works necessary to remedy the contamination or pollution or to remove the source of the contamination or pollution.

 

    	12

    	 

    

	 	 	 
	 	4.13.3	Not to discharge or allow to enter into any underground or other waters any poisonous noxious or harmful effluent liquid or substance.
	 	 	 
	 	4.13.4	Where the Tenant has failed to observe any of the obligations in this clause 4.13 to pay to the Landlord the reasonable and proper costs incurred by It in obtaining such reports as the Landlord may reasonably require to establish what damage or harm may have been caused to the Premises or other property of the Landlord and the remedial cleaning or other works necessary.
	 	 
	4.14	Estate regulations
	 	 	 
	 	To observe such reasonable regulations as may from time to time be made by the Landlord for the purposes of good estate management which have been notified to the Tenant and if such regulations conflict with the terms of this lease then the terms of this lease shall prevail.
	 	 	 
	4.15	Interim Charge and Service Charge
	 	 	 
	 	To pay to the Landlord the Interim Charge and the Service Charge in accordance
    with the provisions contained in Part 2 of Schedule 6.
	 	 	 
	4.16	Acts prejudicial to insurance
	 	 	 
	 	4.16.1	Not to do anything as a result of which any policy of insurance against damage to the Premises or to any neighbouring premises may be prejudiced or payment of the policy moneys may be withheld in whole or in part or whereby the rate of premium in respect of any such insurance may be increased and to promptly give notice to the Landlord upon the happening of any event which might affect any insurance policy relating to the Premises.
	 	 	 
	 	4.16.2	In relation to the insurance effected by the Landlord in respect of the Premises to pay to the Landlord any excess required by the insurers or by the Landlord within seven days of demand by the Landlord following any damage or destruction by any Insured Risks where such excess would be applicable to any claim in respect of such damage or destruction.
	 	 	 
	4.17	Safeguarding the Premises
	 	 	 
	 	4.17.1	With respect to fire precautions and safeguarding the Premises against damage by any of the Insured Risks or otherwise to comply with all requirements and recommendations of the insurers of the Premises or the relevant insurance brokers or of the fire brigade or local authority and the reasonable requirements of the Landlord.

 

    	13

    	 

    

 

	 	4.17.2	Not to store or bring on to or allow to remain on the Premises any article, substance or liquid of a specially combustible, inflammable or explosive nature or which may be a source of contamination.
	 	 	 
	 	4.17.3	To give written notice to the Landlord upon the occurrence of any contamination of the Premises and also upon the occurrence of any pollution of the environment in breach of any legislative provision caused by any use of or action or activity on the Premises.

	 	 	 	 	 
	4.18	Planning applications and community infrastructure levy
	 	 	 	 	 
	 	4.18.1	Not without the prior written consent of the Landlord to make any application for any consent under the Planning Acts but If such application is for consent to do anything which the Tenant is permitted to do under this lease (or where the approval of the Landlord is first required and the Landlord has approved the doing of such thing) such consent shall not be unreasonably withheld or delayed.
	 	 	 	 	 
	 	4.18.2	The Tenant shall:
	 	 	 	 	 
	 	 	4.18.2.1	pay any charge imposed under the Planning Acts In respect of the use of the Premises, or any works carried out at the Premises;
	 	 	 	 	 
	 	 	4.18.2.2	in relation to any community infrastructure levy (or any similar or replacement charge or levy):
	 	 	 	 	 
	 	 	 	a)	pay any community infrastructure levy (or any similar or replacement charge or levy);
	 	 	 	 	 
	 	 	 	b)	serve a notice assuming liability (and provide a copy of such notice to the Landlord) and not to withdraw it (or carry out such equivalent or similar steps as may be required or permitted in relation to any similar or replacement charge or levy); and
	 	 	 	 	 
	 	 	 	c)	indemnify the Landlord against all liabilities arising out of community infrastructure levy (or any similar or replacement charge or levy),
	 	 	 	 	 
	 	 	 	in each case respect or by reason of any works carried out at the Premises; and
	 	 	 	 	 
	 	 	4.18.2.3	on the Termination Date pay the Landlord a fair proportion of any compensation which the Tenant has received or which is receivable by the Tenant because of any restriction placed on the use of the Premises under any legislation.

 

    	14

    	 

    

	 	 	 	 
	4.19	Alterations
	 	 	 	 
	 	4.19.1	Not to make any alteration or addition to the Premises unless permitted by this
    clause 4.19.
	 	 	 	 
	 	4.19.2	Not to erect or place any new building or structure on the Premises (Including any temporary or moveable building or structure).
	 	 	 	 
	 	4.19.3	Not to make any external or structural alterations to the Premises.
	 	 	 	 
	 	4.19.4	Not without the Landlord’s written consent (such consent not to be unreasonably withheld or delayed) to carry out any alterations to the Premises or to the plant, equipment or Conducting Media within and serving the Premises which will adversely affect the Environmental Performance of and/or any EPC rating of the Premises.
	 	 	 	 
	 	4.19.5	Subject to clause 4.19.4, the Tenant may without the Landlord’s consent
    make internal non-structural alterations to the Premises subject to:
	 	 	 	 
	 	 	4.19.5.1	such alterations not affecting the Conducting Media or any of the Landlord’s services at the Premises; and
	 	 	 	 
	 	 	4.19.5.2	the Tenant providing the Landlord with an adequate specification (including drawings) of such alterations and taking into account any Landlord’s recommendations prior to commencing work.
	 	 	 	 
	 	4.19.6	The Tenant may make any other alterations to the Premises not referred to in clause 4.19.2, 4.19.3, 4.19.4 or 4.19.5 (including the erection or installation of any mezzanine floor) with the Landlord’s written consent (such consent not to be unreasonably withheld or delayed).
	 	 	 	 
	4.20	Statutory obligations
	 	 	 	 
	 	4.20.1	At the Tenant’s expense to comply in all respects with the provisions of all statutes and legislation (whether now or subsequently in force) affecting or applicable to the Premises or their use and to promptly give notice to the Landlord of any notice, direction or order made by any local or competent authority.

 

    	15

    	 

    

	 	 	 	 
	 	4.20.2	The Tenant shall:
	 	 	 	 
	 	 	4.20.2.1	prepare, update and maintain a health and safety file for any works carried out to the Premises;
	 	 	 	 
	 	 	4.20.2.2	comply with the Construction (Design and Management) Regulations 2007;
	 	 	 	 
	 	 	4.20.2.3	provide to the Landlord upon reasonable request a copy of such file;
	 	 	 	 
	 	 	4.20.2.4	upon any assignment or underlease permitted by this lease to supply to the assignee or sub-tenant any health and safety files and/or operating manuals; and
	 	 	 	 
	 	 	4.20.2.5	upon the Termination Date return the updated health and safety file to the Landlord.
	 	 	 	 
	4.21	Alienation
	 	 	 	 
	 	4.21.1	General
	 	 	 	 
	 	 	4.21.1.1	Not to charge or mortgage the Premises nor to assign, underlet, share or part with the possession
    or occupation of any part of the Premises nor to permit any such dealing under a permitted underlease, except as permitted
    by the remainder of this clause 4.21.
	 	 	 	 
	 	 	4.21.1.2	Not to hold or occupy the Premises as nominee, trustee or agent or otherwise for the benefit of any other person.
	 	 	 	 
	 	4.21.2	Assignments
	 	 	 	 
	 	 	4.21.2.1	The Tenant shall not assign any part (as opposed to the whole) of this lease.
	 	 	 	 
	 	 	4.21.2.2	The Tenant shall not assign the whole of this lease without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

 

    	16

    	 

    

	 	 	 	 	 
	 	 	4.21.2.3	The Landlord and the Tenant agree that, for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may give its consent to an assignment of the whole of this lease subject to any of the following conditions:
	 	 	 	 	 
	 	 	(a)	if the assignee (taking into account its covenant strength and the strength of any guarantee or other arrangement as provided for in clause 4.21.2.3(b) and (c)) is of lower financial standing than the original Tenant as at the date of this lease and/or the assignee is registered overseas the Tenant will enter into an Authorised Guarantee Agreement which will be in such form as the Landlord may reasonably request and be prepared by or on behalf of the Landlord and at the cost of the Tenant and under which the assignor will agree (amongst other matters) with the Landlord:
	 	 	 	 	 
	 	 	 	(i)	that it is liable as sole or principal debtor in respect of all obligations to be owed by the assignee under the Tenant Covenants in this lease;
	 	 	 	 	 
	 	 	 	(ii)	to be liable as guarantor in respect of the assignee’s performance of the Tenant Covenants in this lease (provided that such liability shall be no more onerous than the liability to which the assignor would be subject in the event of Its being liable as sole or principal debtor in respect of the obligations owed by the assignee under the Tenant Covenants); and
	 	 	 	 	 
	 	 	 	(iii)	in the event of this lease being disclaimed to enter into a new lease of the Premises the term of which shall expire simultaneously with the date upon which (but for any disclaimer) this lease would have expired by effluxion of time (and not by any other means) and the Tenant Covenants shall be identical to (amended as appropriate but in any event no more onerous than) the Tenant Covenants in this lease;
	 	 	 	 	 
	 	 	(b)	if the Landlord reasonably so requires the proposed assignee shall obtain acceptable
    and legally valid guarantors for any person to whom this lease is to be assigned who will covenant with the Landlord on the
    terms (amended as appropriate) set out in Schedule 3;
	 	 	 	 	 
	 	 	(c)	if the Landlord reasonably so requires the proposed assignee will prior to the assignment enter into such reasonable rent deposit arrangement and/or provide such additional security for performance by the proposed assignee of its obligations under this lease as the Landlord may reasonably require;
	 	 	 	 	 
	 	 	(d)	the proposed assignee shall enter into a covenant with the Landlord to pay the rents reserved by and perform and observe the covenants on the part of the Tenant contained in this lease.

 

    	17

    	 

    

	 	 	 
	 	4.21.2.4	the Landlord and the Tenant agree that, for the purposes of section 19(1A) of the Landlord and Tenant Act 1927, the Landlord may refuse its consent to an assignment of the whole of this lease if:
	 	 	 
	 	(a)	the assignee or its proposed surety is a surety of the assignor; or
	 	 	 
	 	4.21.2.5	the assignee is in the same Group as the assignor and, in the reasonable opinion of the Landlord
    the financial standing of the assignee (taking into account its covenant strength and the strength of any guarantee or other
    arrangement proposed to be provided for in clause 4.21.2.3(b) and (c)) is lower than the financial standing
    of original Tenant; and
	 	 	 
	 	4.21.2.6	Clause 4.21.2.3 shall operate without prejudice to the right of the Landlord to impose any further conditions upon a grant of consent where such Imposition is reasonable.
	 	 	 
	4.21.3	Underletting
	 	 	 
	 	4.21.3.1	The Tenant shall not underlet or agree to underlet any part of the Premises (as distinct from the whole).
	 	 	 
	 	4.21.3.2	The Tenant shall not underlet the whole of the Premises, except in accordance with the remainder of this clause 4.21.3 and then only with the consent of the Landlord, such consent not to be unreasonably withheld or delayed.
	 	 	 
	 	4.21.3.3	The Tenant shall not underlet the whole of the Premises otherwise than:
	 	 	 
	 	(a)	at a rent which is not less than the open market rental value of the Premises;
	 	 	 
	 	(b)	without a fine or premium; and
	 	 	 
	 	(c)	with provision for upwards only rent reviews coinciding with the reviews under this lease.

 

    	18

    	 

    

 

	 	 	 	 
	 	4.21.3.4	Any underlease shall be in a form approved by the Landlord (such approval not to be unreasonably withheld or delayed) and shall contain;
	 	 	 	 
	 	(a)	materially the same covenants and conditions as are contained in this lease;
	 	 	 	 
	 	(b)	provisions prohibiting further sub-underletting by the undertenant; and
	 	 	 	 
	 	(c)	the following terms:
	 	 	 	 
	 	 	(i)	a statement by the Tenant and undertenant referring to the notice and statutory declaration
    mentioned in clause 4.21.3.6, and where the statutory declaration was made by a person other than the undertenant,
    a statement by the undertenant confirming that such person was duly authorised by the undertenant to make the statutory declaration;
    and
	 	 	 	 
	 	 	(ii)	an agreement between the Tenant and the undertenant that the provisions of sections 24-28 of the Landlord and Tenant Act 1954 shall be excluded in relation to the tenancy created by the underlease.
	 	 	 	 
	 	4.21.3.5	The Tenant shall not vary the terms of any underlease permitted under this clause 4.21.3 without the Landlord’s written consent (not to be unreasonably withheld or delayed provided the provisions and covenants of the underlease required by this clause 4.21 are not varied) and throughout the term of any underlease to require the undertenant at all times to perform and observe the Tenant’s covenants (except as to the payment of rent) and the conditions contained in this lease.
	 	 	 	 
	 	4.21.3.6	The Tenant shall not grant an underlease unless;
	 	 	 	 
	 	(a)	before the earlier of the undertenant entering into the underlease and the undertenant becoming contractually bound to do so, the Tenant has served a notice on the undertenant and the undertenant (or a person duly authorised by the undertenant) has made a statutory declaration, such notice and statutory declaration to relate to the tenancy to be created by the underlease and to comply with section 38A of the Landlord and Tenant Act 1954 and the relevant schedules of the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003; and

  

    	19 

     

    

  

	 	 	 	 
	 		(b)	the Tenant has supplied the Landlord with a copy (certified by solicitors to be a true copy
    of the original) of the notice and statutory declaration referred to in clause 4.21.3.6(a).
	 	 	 	 
	 	 	4.21.3.7	The Landlord may as a condition for giving its consent for  any permitted underletting require the proposed undertenant to enter into a direct covenant with the Landlord:
	 	 	 	 
	 	 	(a)	to observe and perform the undertenant’s covenants and the conditions contained in the underlease;
	 	 	 	 
	 	 	(b)	not to assign (or agree to do so) any part of the underlet premises (as distinct from the whole) and not to charge or share or (save by way of an assignment of the whole) part with possession of or permit any person to occupy the underlet premises; and
	 	 	 	 
	 	 	(c)	not to assign (or agree to do so) the whole of the underlet premises without the prior consent in writing of the Landlord (such consent not to be unreasonably withheld or delayed).
	 	 	 	 
	 	 	4.21.3.8	To notify the Landlord in writing with relevant details within 14 days of any rent payable under an underlease being reviewed.
	 	 	 	 
	 	4.21.4	Expert determination
	 	 	 	 
	 	 	If any circumstances or conditions specified in clause 4.21.2 are framed by reference to any matter falling to be determined by the Landlord (or by any other person) and the Tenant disputes such determination then either the Landlord or the Tenant shall be entitled to require the matter or matters in question to be referred to an independent expert who in the absence of agreement between the parties shall be appointed on the application of either party by the President of the Royal Institution of Chartered Surveyors. The determination of such independent expert shall be conclusive as to the matter or matters in question and shall be final and binding on the parties and the independent expert’s costs shall be met by the parties in such proportions as the independent expert shall determine.

  

    	20 

     

    

  

	 	 	 	 
	 	4.21.5	Group sharing
	 	 	 	 
	 	 	Nothing in this clause 4.21 will prevent the Tenant or any permitted undertenant
    from sharing occupation of the Premises with another member of the same Group as the Tenant if and so long as that other member
    remains a member of that Group and no relationship of landlord and tenant subsists between the Tenant or permitted undertenant
    and that other member. The Tenant shall keep the Landlord informed of the identity of all occupiers and of the basis of their
    occupation of the Premises.
	 	 	 	 
	4.22	Registration of dealings
	 	 	 	 
	 	4.22.1	Within one month after the date of any assignment, transfer or underlease permitted under this lease or any assignment of such underlease or after any devolution of the Term or after any other dealing with this lease to supply a certified copy of the deed or instrument effecting the same to the Landlord and to pay such reasonable fee as the Landlord may require for registration.
	 	 	 	 
	 	4.22.2	If this lease and/or rights granted or reserved by this lease are or should be registered at the Land Registry under the Land Registration Act 2002 then the Tenant shall:
	 	 	 	 
	 		4.22.2.1	register this lease and any transfer or other registrable disposition of this lease at the
    Land Registry within one month of the date of the grant of this lease or the date of the instrument of transfer or other disposition
    requiring registration (as the case may be);
	 	 	 	 
	 	 	4.22.2.2	procure that all rights granted or reserved by this lease are properly noted against the affected titles; and
	 	 	 	 
	 	 	4.22.2.3	within two weeks of notification of the registration of the grant, transfer, other registrable disposition of this lease or notice against the affected titles (as the case may be) deliver to the Landlord official copies of the registered titles.
	 	 	 	 
	 	4.22.3	Promptly after the Termination Date (and notwithstanding that the Term has ended) the Tenant shall make an application to close the registered title of this lease and shall ensure that any requisitions raised by the Land Registry in connection with that application are dealt with promptly and properly and the Tenant shall keep the Landlord informed of the progress and completion of its application.

  

    	21 

     

    

  

	 	 	 	 
	4.23	Re-letting and sale boards
	 	 	 	 
	 	To permit the Landlord or its agents at any time during the Term to enter upon the Premises and to affix upon any suitable part a notice board advertising the sale of the Landlord’s interest (or any superior interest) in the Premises and during the last six months of the Term for the reletting of the Premises (but the notice board must not obstruct the Tenant’s access to the Premises nor materially affect its use and enjoyment of the Premises for the Permitted Use) and not to remove or obscure the same and to permit all persons authorised by the Landlord or its agents to view the Premises during business hours by prior appointment or on 72 hours’ prior written notice (including without limitation notice by e-mail).
	 	 	 	 
	4.24	Costs of licences and notices as to breach of covenant
	 	 	 	 
	 	To pay within seven days of demand and indemnify the Landlord against:
	 	 	 	 
	 	4.24.1	all reasonable costs, charges and expenses (including professional fees) properly incurred by the Landlord arising out of or incidental to any application made by the Tenant for any consent or approval of the Landlord; and
	 	 	 	 
	 	4.24.2	all costs, charges and expenses (including professional fees (and for the avoidance of doubt the costs of any environmental reports or audits)) properly incurred by the Landlord arising out of or incidental to:
	 	 	 	 
	 	 	4.24.2.1	any breach of the Tenant’s covenants;
	 	 	 	 
	 	 	4.24.2.2	the preparation and service of a schedule or interim schedule of dilapidations;
	 	 	 	 
	 	 	4.24.2.3	any notice which the Landlord may serve on the Tenant whether served before or after the determination of this lease (including a notice under section 146 of the Law of Property Act 1925) requiring the Tenant to remedy any breach of any of its covenants; or
	 	 	 	 
	 	 	4.24.2.4	arising out of or in connection with any proceedings referred to in section 146 or 147 of that Act notwithstanding that forfeiture may be avoided otherwise than by relief granted by the court.

  

    	22 

     

    

  

	 	 	 
	4.25	Indemnity
	 	 	 
	 	To be responsible for and to indemnify the landlord against:
	 	 	 
	 	4.25.1	all damage, loss or injury occasioned to the Premises or any adjoining premises or to any Conducting Media or to any person or chattel (whether or not upon the Premises) caused by any act, default or negligence of the Tenant or any undertenant or the servants, agents, licensees or invitees of either of them or by reason of any defect in the Premises; and
	 	 	 
	 	4.25.2	all losses, damages, costs, expenses, claims and proceedings incurred by or made against the Landlord arising out of any breach by the Tenant of any of its obligations in this lease.
	 	 	 
	4.26	Value added tax
	 	 	 
	 	To pay to the Landlord within seven days of demand any value added tax chargeable upon:
	 	 	 
	 	4.26.1	any supply made by the Landlord to the Tenant pursuant to this lease so that all consideration for any such supply is exclusive of value added tax and the Landlord will provide the Tenant with a valid value added tax invoice addressed to the Tenant; and
	 	 	 
	 	4.26.2	any supply (whether made to the Landlord or to a third person) where pursuant to this lease the Tenant is required to pay to the Landlord any sum in respect of any costs, fees, expenses or other expenditure or liability (of whatever nature) in connection with that supply except to the extent that any such value added tax may be recoverable by the Landlord from HM Revenue & Customs.
	 	 	 
	4.27	Defects
	 	 	 
	 	To inform the Landlord as soon as practicable in writing of any defect in the Premises which might give rise to a duty imposed by common law or statute on the Landlord and to indemnify the Landlord against all actions, costs, claims and liabilities suffered or incurred by or made against the Landlord in respect of the Premises under the Defective Premises Act 1972.
	 	 	 
	4.28	Documents affecting title
	 	 	 
	 	To perform and observe the provisions of the documents or the other matters referred
    to in Schedule 5 so far as they affect or relate to the Premises and are capable of being enforced.

  

    	23 

     

    

  

	 	 	 	 
	4.29	EPC information
	 	 	 	 
	 	4.29.1	To allow the Landlord and all others authorised by the Landlord to have access to all documentation, data and information in the Tenant’s possession or under its control that is reasonably required in order for the Landlord to:
	 	 	 	 
	 	 	4.29.1.1	prepare an EPC in respect of the Premises; and
	 	 	 	 
	 	 	4.29.1.2	comply with any duty imposed upon the Landlord under The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007, 
	 	 	 	 
	 	 	and the Tenant shall co-operate with the Landlord and any person so authorised so far as is reasonably necessary to enable them to carry out such functions.
	 	 	 	 
	 	4.29.2	The Tenant shall provide free of charge to the Landlord a copy of any EPC that the Tenant obtains in respect of the Premises.
	 	 	 
	5.	LANDLORD’S COVENANTS
	 	 	 	 
	 	The Landlord covenants with the Tenant: 
	 	 	 	 
	5.1	Quiet enjoyment
	 	 	 	 
	 	That the Tenant performing and observing the covenants, conditions and agreements contained in this lease shall and may peaceably and quietly hold and enjoy the Premises during the Term without (except as authorised by this lease) any interruption or disturbance by the Landlord or any person rightfully claiming through or under it.
	 	 	 	 
	5.2	To carry out services
	 	 	 	 
	 	5.2.1	Subject to the payment by the Tenant of the Interim Charge and the Service Charge
    to use reasonable endeavours to carry out (or at the Landlord’s discretion to procure the carrying out of) such of the
    services referred to in Part 1 of Schedule 6 as the Landlord considers are appropriate to the Estate.
	 	 	 	 
	 	5.2.2	The Landlord will not be in breach of the covenant in clause 5.2.1 if the failure to carry out (or to procure the carrying out of) any of such services is attributable to matters outside the Landlord’s control or results from building works being carried out to the buildings on the Estate.

  

    	24 

     

    

 

	 	 	 	 
	6.	INSURANCE
	 	 	 
	6.1	Landlord to insure the
    Premises
	 	 	 
	 	The Landlord covenants
    with     the Tenant at all times during the Term to keep the Premises insured with an insurance company of repute in the Full
    Reinstatement     Value against the Insured Risks.
	 	 	 
	6.2	Landlord to reinstate
    damage caused by Insured Risks
	 	 	 
	 	If the Premises are damaged
    or destroyed by any of the Insured Risks then:
	 	 	 
	 	6.2.1	unless the insurance has
    been rendered void or voidable or the policy moneys withheld in whole or in part by reason of any act or default of the Tenant
    or any undertenant or any of their respective employees, contractors, licensees or invitees and the Tenant has failed to comply
    with clause 6.6.2; and
	 	 	 
	 	6.2.2	subject to all necessary
    consents and licences being obtained,
	 	 	 
	 	the Landlord shall with
    all convenient and practicable speed repair or reinstate the Premises using such materials and specification as are then appropriate.
	 	 	 
	6.3	Landlord to provide
    details of insurance policy
	 	 	 
	 	The Landlord covenants
    with the Tenant to provide upon written request from the Tenant but not more than once in any 12 month period details of the
    policy under which the Premises are insured.
	 	 	 
	6.4	Benefit of insurance
	 	 	 
	 	The benefit of all Insurance
    effected by the Landlord under this lease or otherwise in respect of the Premises shall belong solely to the Landlord.
	 	 	 
	6.5	Abatement of rent
	 	 	 
	 	6.5.1	If the Premises shall at
    any time be destroyed or damaged by any of the Insured Risks so as to be unfit for occupation or use then and in every such
    case (unless the Landlord’s policy of insurance in relation to the Premises shall have been rendered void or voidable
    or the policy moneys withheld in whole or in part by reason of the act, default or omission of the Tenant or any undertenant
    or any of their respective employees, contractors, licensees or invitees) the rent reserved by this lease under clauses
    3.1 and 3.2.1 (or a fair and just proportion of them according to the nature and extent of the damage sustained)
    shall be suspended and cease to be payable until the Premises shall have been repaired or reinstated and made fit for occupation
    or use in accordance with clause 6.2 or until the expiration of three years (or such longer period as may be provided
    for in the policy of insurance for Loss of Rent) from the destruction or damage whichever first occurs.

 

    	25

    	 

    

	 	 	 	 
	 	6.5.2	 	 
	 	 	 	 
	 	 	6.5.2.1	In this clause 6.5.2 “Additional
    Rent Free Period” means a period equal in length to the period between (i) the date of the destruction or damage
    giving rise to the application of clause 6.5.1 and (ii) the earlier of the Rent Commencement Date or the date upon
    which the Premises are again rendered fit for occupation and use.
	 	 	 	 
	 	 	6.5.2.2	If the provisions of clause 6.5.1
    apply before the Rent Commencement Date then the date upon which the rent reserved by this lease under clauses 3.1
    shall begin to be payable shall be postponed for the Additional Rent Free Period.
	 	 	 	 
	 	6.5.3	No account shall be taken
of damage in relation to any alteration, addition or improvement to the Premises carried out otherwise than by the Landlord unless
such alteration, addition or improvement has in fact been taken into account in effecting both the insurance of the Premises and
the insurance in respect of the Loss of Rent.
	 	 	 	 
	 	6.5.4	Any dispute between the
    Landlord and the Tenant concerning the proportion or duration of the suspension or cesser shall be determined by an arbitrator
    appointed in default of agreement between the Landlord and the Tenant on the application of either of them by the President
    of the Royal Institution of Chartered Surveyors and any such reference shall be a submission to arbitration within the Arbitration
    Act 1996.
	 	 	 
	6.6	Tenant’s insurance
    obligations
	 	 	 
	 	The Tenant covenants with
    the Landlord to:
	 	 	 
	 	6.6.1	give the Landlord immediate
    written notice of any damage to or destruction of the Premises by an Insured Risk;
	 	 	 
	 	6.6.2	pay the Landlord on demand
    an amount equal to any amount which the insurers refuse to pay, following damage or destruction by an Insured Risk to the
    Premises or any adjoining property of the Landlord, because of any act or omission of the Tenant; and

 

    	26

    	 

    

	 	 	 
	 	6.6.3	pay the Landlord on demand the amount
    of any excess required by the insurers in connection with any damage to or destruction of the Premises by an Insured Risk.
	 	 	 
	6.7	Landlord’s option
    to determine where substantial reconstruction is required following damage by an Insured Risk
	 	 	 
	 	If the Premises are destroyed
    or so seriously damaged by any Insured Risk as to require (in the opinion of the Landlord’s surveyor whose decision
    shall be final and binding upon the parties) substantial reconstruction which is likely to take more than six months then
    the Landlord may at any time within six months from the date of such damage or destruction give notice in writing to determine
    this lease. Immediately upon the service of that notice this demise shall determine but without prejudice to the rights and
    remedies of any party against any other in respect of any antecedent claim or breach of covenant and all insurance money shall
    be the absolute property of the Landlord.
	 	 	 
	6.8	Mutual option to determine
    following failure to reinstate within six months of damage caused by an Insured Risk
	 	 	 
	 	If following any destruction
    or damage by an Insured Risk (unless the insurance has been rendered void or voidable or the policy moneys withheld in whole
    or in part by reason of any act or default of the Tenant or any undertenant or any of their respective employees, contractors,
    licensees or invitees and the Tenant has failed to comply with clause 6.6.2) the Premises shall not have been repaired,
    reinstated or replaced in accordance with the preceding provisions of this clause 6 so that the Premises are fit for
    occupation or use within a period of six months from the date of destruction or damage then either party may by giving one
    month’s notice in writing to the other determine this lease (provided the Premises have not been repaired, reinstated
    or replaced prior to the expiry of the notice) but without prejudice to the rights of either party in respect of any antecedent
    claim or breach of covenant and all insurance money shall be the absolute property of the Landlord.
	 	 	 
	6.9	Landlord to notify the
    Tenant of any Insured Risk becoming an Uninsured Risk
	 	 	 
	 	The Landlord covenants
    with the Tenant to give at least 14 days’ prior notice in writing to the Tenant of any Insured Risk becoming an Uninsured
    Risk.

 

    	27

    	 

    

	 	 	 	 
	6.10	Landlord’s option
    following damage by an Uninsured Risk
	 	 	 	 
	 	Save where the same has
    been caused by the act or default of the Tenant if the Premises are damaged or destroyed by an Uninsured Risk so that the
    Premises are incapable of occupation:
	 	 	 	 
	 	6.10.1	the Landlord may by service
    of notice in writing (an “Election Notice”) to the Tenant given within the period of six months following the
    date of such damage or destruction (the “Election Period”) either:
	 	 	 	 
	 	 	6.10.1.1	elect to rebuild or reinstate the Premises;
    or
	 	 	 	 
	 	 	6.10.1.2	immediately determine this tease;
	 	 	 	 
	 	6.10.2	If the Landlord serves
    an Election Notice electing to rebuild or reinstate the Premises:
	 	 	 	 
	 		6.10.2.1	the Landlord’s obligation to reinstate contained in clause 6.2
shall apply as if the Premises were damaged by an Insured Risk; and
	 	 	 	 
	 	 	6.10.2.2	clause 6.5 shall apply as if
    the Premises were unfit for occupation and use because of damage or destruction by an Insured Risk but substituting in clause
    6.5 the three years from the date of the Election Notice in place of the three years from the date of such damage or destruction;
	 	 	 	 
	 	6.10.3	if the Landlord does not
    serve an Election Notice the Landlord or the Tenant may serve written notice upon the other within the period of three months
    following the expiration of the Election Period to immediately determine this lease;
	 	 	 	 
	 	6.10.4	if the Landlord serves
    an Election Notice and the Premises are not repaired and reinstated within a period of two years and 11 months from the date
    of the Election Notice then either party may by giving one month’s notice in writing to the other determine this lease;
	 	 	 	 
	 	6.10.5	if the Landlord serves
    an Election Notice electing to determine this lease or if notice to determine this lease is served pursuant to clauses
    6.10.3 or 6.10.4 this lease shall immediately determine but the determination shall be without prejudice to any
    right of action of either party in respect of any previous breach of this lease by the other and all moneys (if any) payable
    under the insured policies shall be paid to and belong to the Landlord absolutely.
	 	 	 	 
	7.	CONDITIONS
	 	 	 	 
	 	It is agreed as follows:
	 	 	 	 
	7.1	Re-possession on Tenant’s
    default
	 	 	 	 
	 	If at any time during the
    Term:
	 	 	 	 
	 	7.1.1	the rents reserved by this
    lease or any of them or any part of them shall be in arrear for 21 days after the same shall have become due (whether legally
    demanded or not); or

 

    	28

    	 

    

	 	 	 
	 	7.1.2	the Tenant or (as the case
    may be) any Guarantor shall at any time fall or neglect to perform or observe any of the covenants, conditions or agreements
    on its part to be performed and observed contained in this lease or in any licence, approval or consent given by the Landlord
    to the Tenant in relation to the Premises or in any other deed supplemental to this lease or by which this lease may be varied;
    or
	 	 	 
	 	7.1.3	the Tenant or (as the case may be)
    any Guarantor shall either (being a corporation) have an application made for an administration order (whether or not at its
    instance) or enter into liquidation whether compulsory or voluntary (not being a voluntary liquidation for the purpose of
    reconstruction only) or (being an individual) become bankrupt; or
	 	 	 
	 	7.1.4	the Tenant or (as the case may be)
    any Guarantor shall make any arrangement or composition with creditors or suffer any distress or execution to be levied on
    property of the Tenant or (as the case may be) any Guarantor or have an encumbrancer take possession or a receiver appointed
    in respect of the same,
	 	 	 
	 	then and in any such case
    it shall be lawful for the Landlord (or any person or persons duly authorised by it in that behalf) to re-enter the Premises
    and thereupon the Term shall absolutely cease and determine but without prejudice to the rights and remedies of the Landlord
    in respect of any antecedent breach by the Tenant of any of the covenants, conditions or agreements contained in this lease.
	 	 	 
	7.2	Common Parts
	 	 	 
	 	The Landlord acting reasonably
    may from time to time change the location, area or arrangements for use by the Tenant of any part of the Common Parts or Conducting
    Media or alter the rights contained in Part 1 of Schedule 2 so long as there remains available for the benefit of the
    Premises rights reasonably commensurate (albeit temporary) with those granted by this lease.
	 	 	 
	7.3	Works to adjoining property
	 	 	 
	 	Nothing in or consequent
    upon this lease shall prevent the Landlord from being wholly at liberty to deal, or to authorise others to deal, entirely
    as it thinks fit with the Estate and/or any neighbouring or nearby land, whether or not owned by the Landlord, including constructing
    and/or demolishing, altering or redeveloping any building on it notwithstanding any Interference to the Premises including
    (without limitation) to the flow of light and air. All such works are to be carried out with all due regard to modern standards
    of construction and workmanship, all reasonable steps are to be taken to abate any interference to the Premises by noise,
    dust, vibration or otherwise, and all actual damage to the Premises is to be made good with all due regard to the Permitted
    Use by the Tenant and the Tenant shall raise no objection whatsoever to the carrying out of any such works and shall allow
    the same to continue without interference.

 

    	29

    	 

    

	 	 	 
	7.4	Liability of Landlord
	 	 	 
	 	To the extent that the
    obligations on the Landlord contained or implied in this lease relate to any time after a person has parted with the whole
    of its interest in the reversion immediately expectant on the end of the Term, they shall not be binding on or enforceable
    against that person after that person has parted with the whole of that interest.
	 	 	 
	7.5	No acquisition of easements
	 	 	 
	 	Section 62 of the Law of
    Property Act 1925 will not apply to this lease. In particular, but without limitation:
	 	 	 
	 	7.5.1	the Tenant shall not be entitled to
    any rights (save as expressly granted by this lease) which would restrict the free user for building or otherwise of the Estate
    or any adjoining or neighbouring land whether or not owned by the Landlord; and
	 	 	 
	 	7.5.2	access of light and air to the Premises
    is and shall be enjoyed with the consent of the Landlord or other the owner or occupier of such adjoining property and not
    as of right.
	 	 	 
	7.6	Removal of goods after
    end of Term
	 	 	 
	 	7.6.1	The Tenant irrevocably appoints the
    Landlord as its agent to store or dispose of any items left by the Tenant at the Premises more than 10 working days after
    the Termination Date.
	 	 	 
	 	7.6.2	The Landlord may store or dispose of
    such items after that time as it thinks fit and without any liability to the Tenant, other than to account to the Tenant for
    the proceeds of sale, after deducting any costs of sale or storage incurred by the Landlord.
	 	 	 
	 	7.6.3	The Tenant agrees to indemnify the
    Landlord against any liability incurred by the Landlord by reason of the Landlord disposing of any Items left at the Premises
    which do not belong to the Tenant, but which the Landlord believed did belong to the Tenant, which will be presumed unless
    the contrary is proved.

 

    	30

    	 

    

	 	 
	7.7	Notices
	 	 
	 	The provisions of section 196 of the Law of Property Act 1925 (as amended) shall apply to the giving and service of all notices and documents under or in connection with this lease.
	 	 
	7.8	Contracts (Rights of Third Parties) Act 1999
	 	 
	 	Unless expressly stated nothing in this lease will create any rights in favour of any person pursuant to the Contracts (Rights of Third Parties) Act 1999.
	 	 
	8. 	RENT REVIEW
	 	 
	8.1	Definitions
	 	 
	 	In this clause 8:

	 	 	 	 
	 	“Assumptions”	means the assumptions that:
	 	 	 
	 	 	(a)	the Premises are available to be let with vacant possession;
	 	 	 	 
	 	 	(b)	the Premises and any land or Conducting Media over which the Tenant may exercise any rights by virtue of this lease are in good and substantial repair and condition;
	 	 	 	 
	 	 	(c)	the Landlord, the Tenant and any sub-tenant have complied with all their respective covenants and obligations imposed by this lease on each of them;
	 	 	 	 
	 	 	(d)	all parts of the Premises are fit and ready and available for use for the Permitted Use;
	 	 	 	 
	 	 	(e)	any consents or licences current or required from any competent authority at the relevant
    Review Date for the willing tenant’s use of the Premises are held by or available to the willing tenant; and

 

    	31

    	 

    

	 	 	 	 
	 	 	(f)	no work has been carried out on the Premises by the Tenant or any sub-tenant or their predecessors in title before or during the Term which has diminished the rental value of the Premises;
	 	 	 	 
	 	 	(g)	the Tenant is registered for VAT; and
	 	 	 	 
	 	 	(h)	any damage to or destruction of the Premises and any land or Conducting Media over which the Tenant may exercise any rights by virtue of this lease have been fully reinstated;
	 	 	 	 
	 	“Current Rent”	means the Rent reserved by this lease immediately before the relevant Review Date (disregarding any suspension of rent under any other provision of this lease);
	 	 	 	 
	 	“Matters to be Disregarded”	means each of the following matters so far as they may affect rental value:
	 	 	 	 
	 	 	(a)	the fact that the Tenant or any sub-tenant has previously been in occupation of the Premises;
	 	 	 	 
	 	 	(b)	any goodwill attaching to the Premises by reason of the carrying on of the business of the Tenant or any sub-tenant at the Premises;
	 	 	 	 
	 	 	(c)	any improvement to the Premises carried out before or during the Term by the Tenant or any sub-tenant with the prior written approval (if required) of the Landlord (but excluding improvements effected at the expense of the Landlord or pursuant to any obligation to the Landlord whether under the provisions of this lease or any other deed or document); and
	 	 	 	 
	 	 	(d)	any requirement and costs applicable to the removal and reinstatement relating to any improvements;

 

    	32

    	 

    

	 	 	 	 
	 	“Open Market Rent”	means the yearly open market rack rental value at which the Premises might reasonably be expected to be let as a whole at the relevant Review Date:
	 	 	 	 
	 	 	(a)	with vacant possession in the open market;
	 	 	 	 
	 	 	(b)	by a willing landlord to a willing tenant;
	 	 	 	 
	 	 	(c)	which could reasonably be expected to be payable after the expiry of any rent-free or after the receipt of such other rent concession or inducement (in each case by way of allowance in respect of the fitting out of the Premises) as may be negotiated in the open market between the willing landlord and willing tenant upon a letting of the Premises;
	 	 	 	 
	 	 	(d)	for a term of five years commencing on and including the relevant Review Date;
	 	 	 	 
	 	 	(e)	on the terms and conditions of a lease which are otherwise the same as this lease except as to the actual amount of the Current Rent; and
	 	 	 	 
	 	 	(f)	making the Assumptions but taking no account of the Matters to be Disregarded;
	 	 	 	 
	 	“President”	means the President for the time being of the Royal Institution of Chartered Surveyors or any other body reasonably specified by the Landlord;
	 	 	 
	 	“Valuer”	means a chartered surveyor who has experience of practice in property of the nature and type of the Premises and who is acquainted with the market in the area in which the Premises are located.

 

    	33

    	 

    

	 	 	 	 
	8.2	Determination of the revised Rent
	 	 	 	 
	 	8.2.1	The Rent will be reviewed at each Review Date, and from and including each Review Date the Rent will be the higher of:
	 	 	 	 
	 	 	8.2.1.1	the Current Rent; and
	 	 	 	 
	 	 	8.2.1.2	the Open Market Rent.
	 	 	 	 
	 	8.2.2	In no event shall the Rent payable by the Tenant to the Landlord after the relevant Review Date be less than the Rent payable by the Tenant to the Landlord immediately before such relevant Review Date.
	 	 	 
	 	8.2.3	If the Landlord and the Tenant have not agreed the Open Market Rent at least three months before the relevant Review Date either the Landlord or the Tenant may require the Open Market Rent to be determined by a Valuer.
	 	 	 
	 	8.2.4	Either the Landlord or the Tenant may require the Open Market Rent to be determined by a Valuer even if no attempt has been made to agree the Open Market Rent.
	 	 	 
	 	8.2.5	The Landlord and the Tenant may agree the level of the Open Market Rent at any time before the Valuer has determined it.
	 	 	 
	 	8.2.6	Where the Open Market Rent is to be determined by a Valuer and the Landlord and the Tenant do not agree as to his appointment within seven days of either of them putting forward a nomination to the other such Valuer shall be appointed at the request of either party by the President.
	 	 	 
	 	8.2.7	The Valuer shall act as an expert and not as an arbitrator and his decision (including any decision as to the costs of such determination) shall be final and binding on the parties. The costs of application to the President and fees of the Valuer shall be paid in such proportion as the Valuer determines or if no determination is made then equally by the Landlord and the Tenant.
	 	 	 
	 	8.2.8	The Valuer shall upon appointment either by the parties or the President be required upon his determination to provide a reasoned determination to the Landlord and the Tenant if required by one or both parties.
	 	 	 
	 	8.2.9	Notwithstanding that the Valuer shall act as an expert the Landlord and the Tenant shall each be entitled to make representations and counter-representations to such Valuer a copy of which shall be supplied by the Valuer to the other of them and in making an award as to costs the Valuer shall have regard to the representations and counter-representations made to him.

 

    	34

    	 

    

	 	 	 
	8.3	General	 
	 	 	 
	 	8.3.1	If by the relevant Review Date the revised Rent has not been agreed or determined (whether or not negotiations have commenced) the Tenant shall continue to pay the Current Rent on each day appointed by this lease for payment of Rent until the revised Rent has been ascertained and upon such ascertainment of the revised Rent the Tenant will pay to the Landlord as arrears of rent an amount equal to the difference between the revised Rent and the Current Rent actually paid for the period since the relevant Review Date together with interest on the difference at four per cent below the Prescribed Rate.
	 	 	 
	 	8.3.2	A memorandum in the form set out in Schedule 4 of any Rent agreed or determined pursuant
    to this clause 8 shall as soon as reasonably practicable after such determination be prepared in duplicate and signed
    by or on behalf of the Landlord and the Tenant.
	 	 	 
	 	8.3.3	Time is not to be of the essence in relation to this clause 8.
	 	 	 
	9.	SUSTAINABILITY
	 	 
	9.1	Co-operation
	 	 
	 	The Landlord and the Tenant:
	 	 	 
	 	9.1.1	confirm that wherever reasonably practicable they wish to promote and improve the Environmental Performance of the Premises and the Common Parts; and
	 	 	 
	 	9.1.2	agree, in good faith but without legal obligation, to cooperate with each other to identify opportunities for the improvement of the Environmental Performance of the Premises and the Common Parts.
	 	 	 
	9.2	Data sharing
	 	 	 
	 	9.2.1	The Landlord and the Tenant will on a regular basis share the Environmental Performance Data they hold relating to the Premises and/or the Common Parts.

 

    	35

    	 

    

	 	 	 	 
	 	9.2.2	Save where they are under a statutory obligation of disclosure, the Landlord and the Tenant will keep confidential the Environmental Performance Data shared under this clause, and will only use such data for the purposes of:
	 	 	 	 
	 	 	9.2.2.1	monitoring and improving the Environmental Performance of the Premises and/or the Common Parts; and/or
	 	 	 	 
	 	 	9.2.2.2	measuring the Environmental Performance of the Premises and/or the Common Parts against any agreed targets.
	 	 	 	 
	 	9.2.3	Where the Landlord or the Tenant discloses any shared data to a third party, they will procure that that third party is placed under a similar obligation to that set out in clause 9.2.2 to keep any shared data confidential and to use it only for the purposes listed in that clause.
	 	 	 	 
	10.	OPTION TO DETERMINE
	 	 	 	 
	10.1	The Tenant may determine this lease on the Break Date by giving to the Landlord
    not less than six months’ prior notice in writing expiring on the Break Date and subject to the satisfaction of the
    pre-conditions in clause 10.2 upon the expiry of such notice the Term shall immediately end but without prejudice to
    the rights of either party in respect of any antecedent claim or breach of covenant.
	 	 	 	 
	10.2	The pre-conditions are that the Tenant shall:
	 	 	 	 
	 	10.2.1	on or prior to the Break Date give up occupation of the Premises;
	 	 	 	 
	 	10.2.2	prior to the Break Date have previously determined all underleases or other occupational rights of whatsoever nature;
	 	 	 	 
	 	10.2.3	have paid the Rent reserved by and due under this lease prior to the Break Date; and
	 	 	 	 
	 	10.2.4	on or prior to the Break Date pay to the Landlord a sum equivalent to 3 months of the Rent reserved immediately prior to such date such sum together with any value added tax to be paid in addition to and not in substitution for any other sum payable under this lease.
	 	 	 	 
	10.3	The Landlord may waive any of the pre-conditions set out in clause 10.2
    at any time before the Break Date by written notice to the Tenant.

 

    	36

    	 

    

	 	 
	11.	PRE-EMPTION
	 	 
	11.1	In the event that either of the Neighbouring Units become vacant and available to let by the
    Landlord during the Term and the current Tenant of the Premises is either RRSat Europe Limited (co. no. 2220246) or a member
    of the same Group as RRSat Europe Limited (co. no. 2220246), the Landlord shall not let the relevant Neighbouring Unit without
    first offering the premises to the Tenant by written notice which shall specify the Landlord’s reasonable market rental
    proposal and if the Tenant agrees in writing to such proposal within 28 days of the date of the Landlord’s notice the
    Landlord and the Tenant shall within 32 days of the Tenant’s written acceptance of the Landlord’s proposal enter
    into a lease of the relevant Neighbouring Unit which shall incorporate all covenants, rights, reservations and provisos that
    are contained in this lease (other than the principal rent which shall be as specified under this clause 11.1) such
    lease to be in a form acceptable to the Landlord (acting reasonably) and contracted-out of the provisions of sections 24-28
    (inclusive) of the Landlord and Tenant Act 1954.
	 	 
	11.2	For the avoidance of doubt, if the Tenant does not agree to the Landlord’s reasonable market rental proposal within 28 days of the date of the Landlord’s notice or a new lease is not completed within 32 days of the Tenant’s written acceptance the Landlord may relet the relevant Neighbouring Unit without further reference to the Tenant.
	 	 
	11.3	Time is of the essence for the Tenant’s written acceptance of the Landlord’s proposal
    pursuant to clause 11.1.
	 	 
	In witness of which this lease has been executed and is delivered as a deed on the date appearing as the date of this lease.

 

    	37

    	 

    

 

SCHEDULE
1

 

Description of the Premises

 

UNIT 3,

VICTORIA INDUSTRIAL ESTATE, 

VICTORIA ROAD, 

NORTH ACTON

W3 6UU

 

DESCRIPTION

 

Unit 3 is a mid-terrace, industrial warehouse property incorporating
two-storey ancillary office accommodation, toilet facilities and an external forecourt. The unit provides for the following gross
external floor areas:

 

	Warehouse /Industrial	845.41 m2	(9,099.99 sq.ft.)
	Ancillary Accommodation	152.38 m2	(1,640.22 sq.ft)
	Total	997.79 m2	(10,740.21 sq.ft.)

 

FRAME

 

The warehouse is constructed by way of a steel portal frame
structure, which has received a paint coating. The structural frame incorporates diagonal cross-bracing at roof level, whilst a
separate steel goal-post structure is set into the warehouse at the front elevation to create a loading bay. This structure also
incorporates the secondary steelwork supporting the sectional overhead doors.

 

ROOFS

 

The roof of the warehouse comprises an external skin of profiled
metal sheeting with cranked over eaves, Internally the roof lining comprises painted plasterboard panels fitted within a metal
grid support, and the roof covering as a whole is bolted onto galvanised steel Z-purlins, These are in-turn carried by the main
portal beams. The roof covering incorporates 24nr single-skin GRP roof light panels.

 

Rainwater from the warehouse roof discharges into metal profiled
box gutters located to the foot of the wall cladding to the front and rear elevations. These in turn are connected to the underground
drainage system via wall mounted PVCu downpipes.

 

EXTERNAL WALLS

 

The external walls of the building are predominately formed
in cavity masonry  construction, with an outer-leaf of fair-faced brickwork, and inner-leaf of blockwork. To the front elevation,
the brickwork extends from ground level to the head of the first floor office windows and loading bay area. To the rear elevation,
the brickwork finishes at a height of approximately 2.3m above ground level, Above this to roof level, the walls are constructed
in profiled metal cladding externally, with plasterboard lining panels Internally.

 

    	38

    	 

    

 

WINDOWS AND DOORS

 

The main entrance is situated to the
front elevation of the building and comprises of a single leaf aluminium door unit with double-glazed panelling, set within
an integral aluminium framework. The door and framework has been provided with a factory applied PPC finish.

 

A total of 2nr fire doors serve the warehouse area, providing
a means of escape to the front and rear elevations. All fire doors comprise of single leaf, polyester powder coated metal doors
within painted steel frames. The fire exit doors are fitted with push bar exit ironmongery.

 

2nr electrically operated, composite panelled overhead sectional
loading bay doors are situated to the front elevation, set back within the warehouse to create a loading bay. The doors are set
within integral galvanised steel supporting framework.

 

1nr single leaf timber door with louvered ventilation provision
allows access to the service cupboard found to the front elevation of the building (immediately adjacent to the front entrance
door). This is finished with gloss paintwork and has a Yale lock.

 

Windows to the front and left flank elevation serving the ground
and first floor level offices take the form of single-glazed, top hung, painted timber casements with non- lockable, leaver handles.

 

To the left flank wall a single-glazed (obscure glazing) painted
timber casement window provides natural light and ventilation to the ground floor male WC. This window has security bars fixed
internally.

 

Externally a projection of feature brickwork forms the window
cill detailing. Internally the window boards comprise of painted timber.

 

EXTERNAL
AREAS

 

To the front left elevation, set back from the main
entrance of the unit a concrete hardstanding is provided, with a shallow ramped access up to the shutter door threshold. The
shutters doors are set back from the front elevation creating an external undercroft. 4nr concrete bollards have been
constructed, one to either side of the loading bay openings, finished in gloss paint.

 

To the front elevation of the building a pathway of pre-cast
concrete slab paving is provided, with pre-cast concrete kerb stones. To the rear elevation an in-situ cast concrete path runs
the entire length of the unit, to the base of a concrete retaining wall. Gravel margins are provided between the perimeter of the
building and paths. A raised step is provided in front of the door into the unit. Ceramic floor tiles have been used to finish
the step, matching those provided to the internal circulation areas.

 

To the immediate front of the office accommodation
a small parking bay is formed with Tarmacadam finish. 1nr Island planter with semi-mature trees is located to the left
of the parking area, forming a boundary with the adjacent hard-standing. This is bordered with pre-cast concrete kerbstones.

 

    	39

    	 

    

 

INTERNAL

 

FLOORS

 

The warehouse floor slab and ground floor of the ancillary
accommodation is formed by way of an in-situ cast concrete slab. The first floor ancillary accommodation is of
solid construction i.e. suspended concrete slab or beams.

 

The warehouse floor slab has been treated with an epoxy paint
finish. In respect of the ancillary block, both office areas, as well and the stairwell, entrance lobby and warehouse access
corridor are finished in carpet tile. Aluminium nosings are installed on each riser of the staircase with plastic anti-slip
black inserts. Circulation space has painted timber skirting boards, whereas the ground and first floor office is provided
with 3-compartment skirting trunking.

 

All WCs have been provided with a sheet vinyl floor Finish,
with painted timber skirting

 

CEILINGS

 

A suspended ceiling system, comprising of a proprietary 600
x 600mm exposed grid, with fibre infill tiles is provided throughout the first floor office, Ceiling soffits to the first floor
landing and toilet areas are solid soffit (presumed plasterboard), which have received an emulsion paint decoration.

 

Ceilings to the ground floor office, circulation areas, lobbies
and all toilet facilities are solid soffit (presumed plaster), which have received an emulsion paint decoration.

 

Walls

 

The party walls within the warehouse are constructed in full
height emulsion decorated blockwork.

 

The enclosure and dividing walls forming the ancillary office
accommodation are constructed in blockwork. This blockwork has a painted finish to the warehouse side, whilst painted plaster is
presented to the ancillary accommodation space.

 

The majority of the dividing walls within the ancillary accommodation
are solid construction, with a panted plaster finish.

 

Full height glazed ceramic tiling is provided to the walls of
the toilet facilities which has received a pint finish.

 

DOORS

 

Internal doors take the form of single-leaf, flush faced timber
units set within softwood frames, linings and architraves Finishes throughout comprise of gloss paintwork. Where present, vision
panels and top-lights are provided by way of Georgian wired glazing. Additional fixed glazing in timber framework is provided to
either side of the first floor office door.

 

Ironmongery,
overhead self-closers and kick plates are anodised aluminium throughout.

 

    	40

    	 

    

 

STAIRCASE

 

The staircase serving the first floor
ancillary accommodation is constructed in concrete and comprises 2nr flights with intermediate half landing. The stairs are finished
as described in Internal - Floors above. A metal handrail with balustrades is provided, which is finished in gloss paintwork.

 

SANITARY ACCOMODATION

	 	 	 	 
	Male WC	 	-	2nr laminated faced proprielary WC cubicle systems
	(Ground floor)	 	-	2nr ceramic WCs with high-level cisterns
	 	 	-	2nr ceramic urinals with 1nr high-level cistern
	 	-	2nr ceramic wash hand basins with hot and cold taps
	 	-	2nr wall mounted mirrors
	 	 	 
	Female WC	 	-	2nr laminated faced proprietary WC cubicle systems
	(Ground floor)	 	-	2nr ceramic WCs with low-level cisterns
	 	 	-	2nr ceramic wash hand basins with hot and cold taps
	 	-	2nr wall mounted mirrors
	 	 	 	 
	Male WC	 	-	1nr laminated faced proprietary WC cubicle system
	(First Floor Office)	 	-	1nr ceramic WC with low-level cistern
	 	 	-	1nr ceramic wash hand basin with hot and cold taps
	 	 	-	1nr wall mounted mirror
	 	 	 	 
	Female WC	 	-	1nr ceramic WC with low-level cistern
	(First Floor Office)	 	-	1nr ceramic wash hand basin with hot and cold taps
	 	-	1nr wall mounted mirror

 

All sanitary ware is connected to the
domestic hot and cold water services and foul drainage. A Worcester Bosch Greenstar 24i Junior combination boiler is located
in the ground floor male toilet and provides the hot water to all WCs as well as heating to the ancillary areas.

 

ELECTRICAL INSTALLATION

 

A public utility 3-phase electrical supply serves the building,
supplying the main switch gear and distribution board. The service head and meter are located within the main warehouse area, to
the rear wall of the ancillary block.

 

Artificial lighting Is provided as follows:

 

	Ground Floor	 	 
	 	 	 
	Entrance Lobby	1 nr	600mm x 600mm surface mounted modular fluorescent fitting
	 	 	 
	Office	4 nr	600mm x 600mm surface mounted modular fluorescent fittings
	 	 	 
	Corridor	1 nr	Circular surface mounted 2D fluorescent light fitting
	 	 	 
	Female Warehouse WC (inc. Lobby)	5 nr	Circular surface mounted 2D fluorescent light fittings on PIR control 
	 	 	 
	Male Warehouse WC (inc. Lobby)	5 nr	Circular surface mounted 2D fluorescent light fittings on PIR control

 

    	41

    	 

    

 

First Floor

 

	Office	12nr	600mm x 600mm recessed modular fluorescent fittings
	 	 	 
	Stairwell	3 nr	Circular surface mounted 2D fluorescent light fittings
	 	 	 
	Male WC	2 nr	Circular surface mounted 2D fluorescent light fittings on PIR control
	 	 	 
	Female WC	2 nr	Circular surface mounted 2D fluorescent light fittings on PIR control

 

Externally

 

	Entrance porch	1 nr	Circular compact fluorescent light fitting
	 	 	 
	Office accommodation	1 nr	Halogen flood light above ground floor office windows
	 	 	 
	Loading bay area	1 nr	Halogen flood light between loading bay doors

 

Small power throughout the circulation areas is predominantly
by way of recessed socket outlets. The offices are provided with twin-socket power outlets installed within 3-compartment perimeter
skirting trunking.

 

HEATING

 

There is no heating provision within the warehouse. Heating
is provided to the ancillary accommodation via the above mentioned Worcester Bosch Greenstar 24i Junior combination gas
fired boiler located within the ground floor male toilet. The boiler serves pressed steel radiators which have been fitted with
local thermostatic control valves. The control panel for the heating system is a Worcester Digistat digital timer control located
in the entrance lobby.

 

Heating provision is as follows:

 

Ground Floor

 

	Entrance Lobby	1 nr	Pressed steel radiator
	 	 	 
	Office	1 nr	Pressed steel radiator
	 	 	 
	Female WC (inc. Lobby)	1 nr	Pressed steel radiator
	 	 	 
	Male WC (Inc. Lobby)	1 nr	Pressed steel radiator
	 	 	 
	First Floor	 	 
	 	 	 
	Office	3 nr	Pressed steel radiators

 

    	42

    	 

    

 

VENTILATION

 

Natural ventilation is afforded by way of an opening casement
to the ground and first floor offices and ground floor male toilet accommodation. Mechanical extract ventilation is provided to
all toilet facilities via a ducted system; being ducted through the ceilings to an outside wall and activated via local light switching.

 

GAS SUPPLY

 

A metered gas supply enters the building within the service
riser cupboard accessed externally to the front elevation (adjacent main entrance).

 

WATER SUPPLY

 

A metered water supply enters the building within the service
riser cupboard accessed externally to the front elevation (adjacent main entrance).

 

TELECOMMUNICATIONS

 

A telecommunication service enters the building within the above
mentioned riser cupboard.

 

    	43

    	 

    

 

SCHEDULE
2

 

Rights, exceptions and reservations

 

PART 1: THE RIGHTS

 

Subject to clause 7.2:

 

		1.	The right of access to and egress from the Premises at all times of the day and night through and
along the Common Parts.

 

		2.	The free and uninterrupted passage and running of water, soil, gas, electricity and telephone or
any other service or supply through the Conducting Media now or which during the Term serve the Premises and which run through
under or over the Estate.

 

		3.	The exclusive right to park validly taxed private motor vehicles on the area shown for the time
being shaded yellow on the Plan or in such other position as the Landlord may from time to time designate.

 

		4.	The right of support for the Premises from the remainder of the Estate.

 

		5.	The right to install a generator and fuel tanks on part of the area shown shaded yellow on the
Plan subject to the Landlord’s written approval of the position and construction of such generator and fuel tanks.

 

PART 2: THE EXCEPTIONS AND RESERVATIONS

 

		1.	The right to the free and uninterrupted passage and running of water, soil, gas, electricity and
telephone or any other service or supply from the other buildings and land of the Landlord and its tenants adjoining or near the
Premises and from the land and premises of others so authorised through the Conducting Media which are now or may during the Term
be in, through, under or over the Premises.

 

		2.	The right at all times to enter the Premises at all reasonable times by prior appointment or
                                                          on 72 hours’ prior written notice (including without limitation notice by e-mail) (except without notice and at any
                                                          time in the case of an emergency) with all necessary equipment for the purposes of:

 

		2.1	laying, constructing, installing, replacing,
                                         repairing, maintaining or altering any Conducting Media now or hereafter in through under
                                         or over the Premises or any adjoining property or making connections to any such Conducting
                                         Media;

 

		2.2	carrying out inspections of or tests to any such Conducting Media;

 

		2.3	carrying out any intrusive testing for environmental purposes; and

 

    	44

    	 

    

 

		2.4	exercising any of the rights of the Landlord contained in this lease or for any other reasonable
purpose connected with this lease or with the Landlord’s interest in the Premises or any adjoining property of the Landlord,

 

the Landlord making good any
damage caused to the Premises by the exercise of this right to the reasonable satisfaction of the Tenant and the Landlord shall
cause as little disturbance or disruption to the Tenant as reasonably practicable.

 

		3.	The right from time to time to execute works and erections upon or to alter or rebuild any of the
buildings erected on any neighbouring property (as mentioned in clause 7.3) and to use such property and each part of it
in such manner as the Landlord may think fit notwithstanding that the access of light and air to the Premises may thereby be interfered
with.

 

		4.	The right of support for the remainder of the Estate from the Premises.

 

    	45

    	 

    

 

SCHEDULE
3

 

Obligations
of the Surety

 

		1.	In this Schedule the following expressions shall have
the meanings indicated:

 

	“Forfeiture or Disclaimer”	means:

 

	 	(a)	the forfeiture of this lease; or
	 	 	 
	 	(b)	the disclaimer of this lease by a liquidator or trustee in bankruptcy of the Tenant;
	 	 	 
	“Relevant Date”	means the date on which any one of the following events occurs:
	 	 	 
	 	(a)	Forfeiture or Disclaimer; and/or
	 	 	 
	 	(b)	the Tenant Ceasing To Exist;
	 	 	 
	“Tenant Ceasing To Exist”	means that the Tenant shall cease to exist or shall die.

  

		2.	If at any time during the Term the Tenant shall not pay any of the rents or other sums payable
under this lease or perform and observe any of the covenants, conditions or other terms of this lease the Surety covenants to pay
such rents or other sums or observe or perform such covenants, conditions or other terms.

 

		3.	By way of separate and additional liability and notwithstanding that the guarantee in paragraph
2 may be unenforceable or invalid for any reason the Surety Indemnifies the Landlord against all losses, damages, reasonable
and proper costs and expenses suffered or incurred by the Landlord arising out of or in connection with any failure by the Tenant
to pay any of the rents and sums or to perform and observe any of the covenants, conditions or other terms referred to in paragraph
2.

 

		4.	The Landlord may within 3 months of:

 

		4.1	Forfeiture or Disclaimer; or

 

		4.2	receiving actual notice of the Tenant Ceasing To Exist (the Surety being obliged to notify the
Landlord upon that happening),

 

by notice in writing require
the Surety to accept a lease of the Premises for a term commencing on the Relevant Date and continuing for the residue then remaining
of the Term at the same rents and with the same covenants and conditions as are reserved by and are contained in this lease and
in such case the Surety shall take such lease accordingly and execute a counterpart of it and pay all proper costs and duties in
relation to it. The new lease will take effect subject to this lease, if and to the extent that it is still subsisting, and subject
to any underlease(s) or other interests created or permitted by the Tenant.

 

    	46

    	 

    

 

		5.	The Surety undertakes with the Landlord that;

 

		5.1	its obligations to the Landlord are primary obligations and it is jointly and severally liable
with the Tenant (both before or after any disclaimer by a liquidator or trustee in bankruptcy) for the fulfilment of all the Tenant’s
covenants and obligations;

 

		5.2	the Surety shall not claim in any liquidation, bankruptcy, administration, receivership, composition
or arrangement of the Tenant in competition with the Landlord and that the Surety shall remit to the Landlord the proceeds of all
judgements and all distributions which the Surety may receive from any liquidator; trustee in bankruptcy, administrator, receiver,
administrative receiver or supervisor of the Tenant and shall hold for the benefit of the Landlord all security and rights the
Surety may have over assets of the Tenant while any liabilities of the Tenant or the Surety to the Landlord remain outstanding;
and

 

		5.3	if the Landlord shall not require the Surety to take a new lease of the Premises the Surety shall
nevertheless within seven days of demand pay to the Landlord a sum equal to the rent first reserved under this lease and all other
sums that would have been payable under this lease in respect of the period from and including the Relevant Date until the expiry
of 9 months after such date or until the Landlord shall have granted a lease of the Premises to a third party (whichever shall
first occur) in addition and without prejudice to the Surety’s other obligations to the Landlord.

 

		6.	The Surety waives any right to require the Landlord to proceed against the Tenant or to pursue
any other remedy of any kind which may be available to the Landlord before proceeding against the Surety.

 

		7.	The liabilities of the Surety under this Schedule shall not be affected by:

 

		7.1	the granting of time or any other indulgence or concession to the Tenant or any compromise or compounding
of the Landlord’s rights;

 

		7.2	the Tenant being in liquidation or (as the case may be) declared bankrupt;

 

		7.3	any variation in the terms and conditions of this lease;

 

		7.4	any delay in exercising or failure to exercise or other exercise (including re-entry under clause
7.1) of any of the Landlord’s rights against the Tenant;

 

    	47

    	 

    

 

		7.5	any refusal by the Landlord to accept rent tendered by or on behalf of the Tenant following a breach
by the Tenant of its obligations under this lease;

 

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

 

		7.7	any other thing (including the occurrence of the Termination Date or any such disclaimer or the
death of the Surety (or any of the persons comprising the Surety) or (in relation to one or more of such persons) the discharge
of the other person or persons) whereby (but for this provision) the Surety or any of them would be exonerated either wholly or
in part from any of the Surety obligations hereunder.

 

    	48

    	 

    

  

SCHEDULE
4

 

Rent review memorandum

 

[                                                     ] [Premises]

 

Lease dated [                                                       ] between (1) [                                                                    ] and (2) [                                              ].

 

Pursuant to the above Lease
[                                                                                                          
] as Landlord and [                                    ] as Tenant record that the yearly rent has been increased to the sum of [
                                                   
] pounds
(£[                                                     
]) with effect from [relevant Review Date].

 

	Dated:	 	 
	 	 	 
	Signed:	 	 
	 	 	 
	 	[Landlord] [Tenant]	 

 

    	49

    	 

    

 

SCHEDULE
5

 

Documents and matters affecting title

 

The covenants, matters and stipulations
set out or referred to in or contained or referred to in the matters and documents referred to in the Property and Charges Registers
of the Landlord’s title numbers NGL308194 and NGL430432.

 

    	50

    	 

    

 

SCHEDULE
6

 

Estate Costs, Interim Charge and Service
Charge

 

PART 1 - ESTATE COSTS

 

In this lease “Estate Costs”
means the costs (as certified conclusively by the Landlord’s surveyor to be proper) properly and reasonably incurred in any Accounting
Period in connection with the provision of the following services:

 

		1.	insuring, cleaning (including the costs
                                         of removing litter and fly-tipping), lighting, repairing, renewing, maintaining and
                                         decorating the Common Parts;

 

		2.	providing, maintaining and renewing refuse receptacles including hire charges, electricity and
other running costs together with the costs of refuse collection and storage of refuse;

 

		3.	providing and maintaining estate signage, directional signs and other signs and notices;

 

		4.	inspecting, maintaining, servicing, cleaning, repairing, improving and renewing all plant and equipment
in or serving the Estate (including closed circuit television, lighting, signage, pumps, electrical equipment and switchgear, meters,
monitoring equipment and fire detection, prevention and fighting equipment);

 

		5.	effecting insurance and/or maintenance
                                         contracts in respect of the plant and equipment mentioned in paragraph 4 above;

 

		6.	caretaking, site supervisory and commissionaire
                                         services (if provided) including the salaries paid to and any other costs to the Landlord
                                         arising out of the employment of any caretakers and commissionaires including without
                                         prejudice to the generality of the foregoing the cost of providing and cleaning uniforms
                                         for such caretakers and commissionaires;

 

		7.	all present and future rates, taxes,
                                         duties and assessments of whatever nature charged on, or payable in respect of the Common
                                         Parts or any other parts of the Estate used for the purposes of providing any of the
                                         services set out in this Schedule and any charges payable for any fuel, electricity,
                                         gas, water, foul water and surface drainage, telecommunications, satellite and data communications
                                         and all other utilities used or supplied in connection with such services together with
                                         that part of the Landlord’s Energy Management Costs which the Landlord reasonably
                                         attributes to the provision of those matters;

 

		8.	inspecting, maintaining, repairing, renewing and decorating the exterior the roofs and any structural
parts of the Estate and any boundary gates, walls and fences (including any party walls, ceilings, floors, foundations, gutters,
drainpipes, sewers, drains, roads and pavements) not demised or intended to be demised to any tenant on the Estate;

 

    	51

    	 

    

 

		9.	cleaning, tidying, maintaining, planting, re-planting, seeding and re-seeding any landscaped or
grassed areas;

 

		10.	employing or retaining any solicitor, accountant, surveyor, valuer, architect, engineer, managing
agent or management company or other professional consultant or adviser in connection with the management, administration, repair
and maintenance of the Estate, including the preparation of any account giving any certificate and calculating the Service Charge
(and if the Landlord fulfils the duties normally carried out by a managing agent payment of a reasonable management fee to the
Landlord);

 

		11.	repairing, renewing, resurfacing, maintaining, cleaning, marking, signing and lighting any unadopted
roadways, forecourts, parking areas and pavements;

 

		12.	the proper fees of any accountant or surveyor employed to determine the Estate Costs and the amount
payable in respect thereof by the Tenant;

 

		13.	providing monitoring, repairing, maintaining and renewing closed circuit television and other surveillance
equipment on the Estate and such other security services to the Estate as the Landlord deems appropriate including employing or
retaining any security staff or company in connection with the provision of such services and the provision of alarms, barriers,
vehicles and other equipment, and security guards and patrols (whether employed by the Landlord or engaged as contractors);

 

		14.	the proper control of vehicle parking within the Estate (including the costs of clamping or removing
vehicles);

 

		15.	complying with all statutes and legislation (whether now or subsequently in force) affecting the
Estate (including the costs of carrying out any works required by such legislation);

 

		16.	providing such other services and carrying out such other works as the Landlord in its absolute
discretion may deem desirable or necessary for the benefit of the Estate or any part thereof or the tenants or occupiers thereof
or for securing or enhancing any amenity of or within the Estate or in the interests of good estate management and the generality
of this paragraph shall not be restricted by any other provision of this Schedule.

 

    	52

    	 

    

 

PART
2 - PROVISIONS RELATING TO THE PAYMENT OF THE INTERIM CHARGE AND THE SERVICE
CHARGE

 

		1.	The Tenant shall pay to the Landlord on account of the Service Charge the Interim Charge on demand
by equal quarterly payments in advance on 1 April, 1 July, 1 October and 1 January (or on such other dates as the Landlord shall
notify to the Tenant in writing) and for the period from the Service Charge Commencement Date to the end of the current quarter
payment shall be made on the date of this lease.

 

		2.	As soon as practicable after the expiration of each Accounting Period the Landlord shall serve
on the Tenant a certificate containing the following information in respect of that Accounting Period:

 

		2.1	the amount of the Estate Costs;

 

		2.2	the amount of the Interim Charge paid by the Tenant;

 

		2.3	the amount of the Service Charge; and

 

		2.4	the amount of any excess due to the Landlord or to be credited to the account of the Tenant as
the case may be.

 

		3.	The said certificate shall be final
                                         and binding on the Tenant other than in the case of manifest error but the Tenant shall
                                         be entitled at its own expense at any time within one month after service of such certificate
                                         to inspect (or at the Tenant’s expense to be supplied with copies of) the receipts and
                                         vouchers relating to payment of the Estate Costs.

 

		4.	If the Interim Charge paid by the Tenant
                                         in respect of any Accounting Period exceeds the Service Charge for that period such excess
                                         shall be carried forward by the Landlord and credited to the account of the Tenant
                                         or following a Termination Date refunded by the Landlord to the Tenant as soon as reasonably
                                         practicable.

 

		5.	If the Service Charge in respect of
                                         any Accounting Period exceeds the Interim Charge paid by the Tenant in respect of that
                                         Accounting Period then the Tenant shall pay such excess to the Landlord within fourteen
                                         days of service upon the Tenant of the certificate referred to in paragraph 2
                                         above and in case of default the same shall be recoverable from the Tenant as rent in
                                         arrear.

 

    	53

    	 

    

  

SCHEDULE
7

 

Form
of Authorised Guarantee Agreement

 

		1.	The
                                         Tenant will procure the punctual payment of the rents and the observance and performance
                                         of all the obligations of the assignee as lessee and in the case of any default the Tenant
                                         will on demand pay such rents and observe and perform such obligations as if the Tenant
                                         instead of the assignee were liable therefor as a principal obligor and not merely as
                                         a surety

 

		2.	The
                                         Tenant agrees with the Landlord as a primary obligation to keep the Landlord indemnified
                                         on demand against all actions proceedings claims demands losses costs expenses damages
                                         and liability arising directly or indirectly from any failure by the assignee to pay
                                         the rents and/or observe and perform such obligations or as a result of any obligation
                                         of the assignee as lessee being or becoming unenforceable

 

		3.	If
                                         the liability of the assignee is disclaimed by or on behalf of the assignee or this Lease
                                         is forfeited or the assignee is wound up or ceases to exist the Tenant will (if so required
                                         by the Landlord by written notice to the Tenant within six months after such disclaimer
                                         or forfeiture or winding up or cessation of existence) take from the Landlord and execute
                                         and deliver to the Landlord a counterpart of a new lease of the Premises for the residue
                                         of the Term unexpired at the date of such disclaimer or forfeiture or winding up or cessation
                                         of existence at the same rents as are reserved from time to time by and subject to the
                                         same covenants and provisions as are contained in this Lease (mutatis mutandis) and the
                                         Tenant will on demand pay the Landlord’s proper legal costs in connection with such new
                                         lease

 

		4.	If
                                         on the commencement date of the new lease of the Premises granted pursuant to paragraph
                                         3 of this part of this schedule a Review Date has occurred but the revised Rent (in accordance
                                         with clause 8) has not been agreed or determined then the rent first reserved by such
                                         new lease will initially be equal to the Rent payable under this Lease immediately prior
                                         to such Review Date but the second day of the term of such new lease will be an additional
                                         Review Date

 

		5.	If
                                         the Landlord does not require the Tenant to take a new lease of the Premises pursuant
                                         to paragraph 3 of this part of this schedule the Tenant will nevertheless on demand pay
                                         to the Landlord a sum equal to the rents that would have been payable but for the disclaimer
                                         or forfeiture or winding up or cessation of existence during the period of twelve months
                                         from and including the date of the disclaimer or forfeiture or winding up or cessation
                                         of existence less any rents received by the Landlord during such period from reletting
                                         the Premises and the Tenant will on demand pay the Landlord’s proper legal costs and
                                         agents’ fees in connection with such reletting

 

    	54

    	 

    

 

		6.	The
                                         Insolvency of the assignee will not affect the liability of the Tenant under this guarantee
                                         and any money received or recovered by the Landlord from the Tenant may be placed in
                                         a separate or suspense account by the Landlord without any obligation on the Landlord
                                         to apply it in or towards the discharge of the assignee’s obligations under this Lease
                                         so as to preserve the Landlord’s right to prove in any insolvency of the assignee in
                                         respect of the whole of the assignee’s indebtedness to the Landlord under this Lease

 

		7.	The
                                         Tenant will at the request of the Landlord execute any document supplemental to or entered
                                         into pursuant to this Lease to acknowledge that the Tenant is bound and that the rights
                                         of the Landlord are not affected and the obligations of the Tenant under this guarantee
                                         are not released by such document

 

		8.	The
                                         obligations of the Tenant under this guarantee are in addition to any other right or
                                         remedy of the Landlord and will not be discharged diminished or in any way affected by:

 

		8.1	any
                                         time or indulgence granted by the Landlord to the assignee or any neglect or forbearance
                                         of the Landlord in obtaining payment of the rents or enforcing the obligations of the
                                         assignee as lessee or

 

		8.2	any
                                         refusal by the Landlord to accept rents tendered at a time when the Landlord was entitled
                                         (or would after service of the appropriate statutory notice have been entitled) to re-enter
                                         the Premises or

 

		8.3	any
                                         surrender by the assignee of part of the Premises in which event the liability of the
                                         Tenant will continue in respect of the part of the Premises not so surrendered after
                                         making any necessary apportionments under section 140 of the Law of Property Act 1925
                                         or

 

		8.4	any
                                         variation of this Lease or other act omission matter or thing (other than a release by
                                         deed given by the Landlord and subject always to the provisions of section 18 of the
                                         Landlord and Tenant Act 1995) by which but for this provision the obligations of the
                                         Tenant would have been so discharged diminished or affected

 

		9.	Any
                                         provision of this part of this schedule rendered void or unenforceable by the Landlord
                                         and Tenant Act 1995 is to be severed from all remaining provisions which are to be preserved

 

    	55

    	 

    

  

	EXECUTED as a deed by	)	
	BRIXTON PROPERTIES LIMITED	)
	acting by	)
	a director in the presence of:	)

 

	 	Director	 
	 	 	 
	Signature of witness	 	 
	 	 	 
	Name (in BLOCK CAPITALS)	 MARTIN KIDD	 

 

	Address	 C/O
    Segro Plc, 258 Bath Road, SLOUGH SL1 4DXexhibit_4-20.htm

Exhibit 4.20

 

SALE AND PURCHASE AGREEMENT

 

______________________________________________________

 

 

by and between

 

RR Media Ltd.

 

(as Buyer)

 

and

 

Mr. Popa Cristinel Pompiliu

 

Mrs. Popa Mihaela Tatiana

 

(as Sellers)

____________________________________________________

 

April 7 2015

 

  

Page 1 of 48 pages

  

 

This sale and purchase agreement (the “Agreement” or “SPA”) is entered into on April 7, 2015, in Bucharest, by and between:

 

	
(1)

	
RR Media Ltd a company incorporated and existing under the laws of Israel, with its registered headquarters at Hnegev St, POB 1056, Airport City, Israel, identified by company number 51-089629-3 ("RR Media"), duly represented by Shmuel Koren CFO and Avi Cohen CEO who shall execute this Agreement on the date written below,

 

hereinafter referred to as the "Buyer", on one hand,

 

	
  

	
and

 

	
(2)

	
Mr. Popa Cristinel Pompiliu, Romanian citizen, born in Pirscov on 08.06.1959, identified with identity card series RD, no. 617438, issued by SPCEP S1, office 1 and valid until 08.06.2019, domiciled at 48 Calea Floreasca, district 1, Bucharest, personal identification number (in Romanian CNP) 1590608400511 and

 

	
(3)

	
Mrs. Popa Mihaela Tatiana, Romanian citizen, born in Galati on 16.03.1960, identified with identity card series RT, no. 491934, issued by SPCEP S1, office 1 and valid until 16.03.2017, domiciled at 48 Calea Floreasca, district 1, Bucharest, personal identification number (in Romanian CNP) 2600316400425,

 

hereinafter individually referred to as "Seller 1" or, sometimes, “Cristinel”, in case of Mr. Popa Cristinel Pompiliu and "Seller 2" or, sometimes, “Mihaela” in case of Mrs. Popa Mihaela Tatiana and collectively, Seller 1 and Seller 2, referred to as the "Sellers", on the other hand,

 

The Sellers and the Buyer being each hereinafter referred to as a "Party" and collectively referred to as the “Parties”,

 

WHEREAS:

 

	
(A)

	
The Sellers are the valid owners of all the shares of the Company (as defined below, in Clause 1.1), representing 100% of all subscribed and paid in share capital of the Company;

 

	
(B)

	
The Sellers wish to sell and the Buyer wishes to purchase the aforesaid 100% shares (“actiuni” in Romanian) free and clear of any Encumbrances (as defined hereinbelow) immediately after the Company having transformed its legal form from a limited liability company (“societate cu raspundere limitata” in Romanian), as currently incorporated, to a joint stock company (“societate pe actiuni” in Romanian) subject to the terms and conditions provided by this Agreement;

 

	
(C)

	
Title over the Initial Shares (as defined hereinbelow) shall pass from the Sellers to the Buyer at the Closing Date (as defined hereinbelow), following the fulfilment of the specific conditions precedent provided in this Agreement;

 

	
(D)

	
Title over the Subsequent Shares and Final Shares (as defined hereinbelow) shall pass from Seller 1 to Buyer subject to the conditions and terms provided hereunder;

 

  

Page 2 of 48 pages

  

 

Have agreed to conclude this shares sale and purchase agreement, under the following terms and conditions:

 

	
1.

	
DEFINITIONS. INTERPRETATION

 

	
1.1.

	
Definitions:

 

	
“Affiliate”

	
means a company/person which directly, or indirectly through one or more intermediates, controls, or is controlled by, or is under common control with the Company or any of the Parties.

 

	
“Agreement” or “SPA”

	
means this sale and purchase agreement and all appendices and schedules related thereto;

 

	
“Aggrieved Party”

	
means the definition provided in Clause 12.2 hereto;

 

	
"Applicable Law"

	
shall mean the Romanian Constitution, laws, Government Ordinances and Government Emergency Ordinances, Government Decisions, orders, norms, regulations, instructions issued by the National Bank of Romania or other Governmental Authority or public authorities and any other instruments having the force of law in Romania, as they may be enacted and in force from time to time;

 

	
"Arbitrator’s Free

	 

 

	
Appointment Rule"

	
means the arbitrator's free appointment rule defined in Clause 19.2 hereto;

 

	
"Business Day"

	
means Monday to Thursday during usual business schedule from 9 am to 17 pm, except any day which is officially recognised as a public holiday in Romania and/or Israel.

 

	
"Cap Price"

	
means the amount of USD 3,700,000 million (three million and seven hundred thousand USD) as defined in Clause 3.2 hereto

 

	
 “Closing”

	
means the satisfactory performance of any and all formalities and procedures mentioned in Clause 4 hereto and the consummation of the sale and delivery of the Initial Shares by the Sellers to the Buyer. Closing will be attested by the Parties through the signing of a Closing Certificate, in a form substantially similar to that provided in Appendix 6 hereto, confirming that the Closing has occurred;

 

	
“Closing Date”

	
means the date when the Closing shall occur, as evidentiated in the Closing Certificate to be executed by the Parties pursuant to Clause 4.3.3 hereto;

 

	
“Company”

	
means EASTERN SPACE SYSTEMS S.R.L., currently a limited liability company organized and functioning in accordance with the laws of Romania, registered with the Trade Registry under no. J40/1783/1997, sole registration code 9482094, with headquarters in Bucureşti, 4th District, No. 35 - 37 OLTENITEI Street, 10th floor, having a share capital of RON 10,000 (ten thousand) divided into 1,000 (one thousand) shares with a nominal value of RON 10 (ten) each, held by Cristinel - 90 % of the Company’s share capital - and by Mihaela - 10% of the Company’s share capital and which, for the purposes of consummation of the Closing and further the consummation of the Transaction, will be transformed into a joint stock company, maintaining the same participation of the shareholders in the new share capital of the joint stock company, as follows: (i) Cristinel holding a number of nominative shares (“actiuni nominative” in Romanian) issued in dematerialized form, representing 90 % of the Company’s share capital - and Mihaela holding a number of nominative shares (“actiuni nominative” in Romanian) issued in dematerialized form, representing 10% of the Company’s share capital;

 

  

Page 3 of 48 pages

  

 

	
"Constitutive Act"

	
means the articles of incorporation of the Company (in Romanian: “act constitutiv") as in force at the Signing Date and which will be amended in the form and substance as reflected in Appendix 7 hereto and valid as of the Closing Date of this Agreement;

 

	
“Debts”

	
means the debts of the Company towards its suppliers as of the Last Accounting Date, amounting to approximately USD 250,000;

 

	
"Management Agreement"

	
means the management agreement of Cristinel or any of his Affiliates (designated in this respect by Cristinel) defined in Clause 4.1.16 hereto;

 

	
“Encumbrance”

	
means collectively, any type of third party rights, interest or security interest of any kind, any pledge, lien, restriction, adverse claim in court of ownership or use, put or call option, right to acquire, pre-emption right, assignment by way of security, right of first refusal or similar rights and obligations, including any retention agreements and any agreement constituting any of the foregoing;

 

	
"Escrow Agreement"

	
means the escrow agreement substantially in the form and substance provided in the Appendix 12 hereto;

 

	
“EURO” or "EUR"

	
means the single currency of the majority member states of the European Union;

 

	
"Final Shares"

	
means a number of nominative shares (“actiuni nominative” in Romanian) issued in dematerialized form, owned by Cristinel and which shall represent 10% of the Company's subscribed and paid-in share capital (i.e. after the Company will be transformed from the existing legal form as limited liability company into a joint stock company prior to Closing);

 

	
“Financial Statements”

	
means the Company’s financial statements as of December 31st 2014 together with monthly financial statements/balance sheets until the Signing Date, plus a true, accurate and complete statement endorsed by the Sellers reflecting all accounting registrations and Company operations between Signing Date and Closing Date;

 

	
"First Additional Payment"

	
means the first additional payment made by the Buyer to the Seller 1 in respect of the transfer of ownership over the Subsequent Shares, in accordance with Appendix 1 and the other provisions of this Agreement;

 

	
"First Additional Period"

	
means the period of four (4) fiscal quarters commencing on the first date a fiscal quarter starts after the Closing Date corresponding to the First Additional Payment;

 

  

Page 4 of 48 pages

  

 

	
"GMS"

	
means the General Meeting of Shareholders of the Company, the supreme corporate body empowered to make decisions pursuant to the Romanian Company Law;

 

	
"Governmental Authority"

	
means any national, regional or municipal government, any subdivision, court, administrative agency or commission or other authority thereof, or any governmental or private body or entity exercising any regulatory, taxing, importing or other governmental authority, in each case having jurisdiction over the Parties, the Company or the subject matter of this Agreement;

 

	
"Initial Purchase Price"

	
means the initial purchase price as defined in the Clause 3.1.1 hereto;

 

	
"Initial Shares"

	
means a number of nominative shares (“actiuni nominative” in Romanian) issued in dematerialized form owned by Cristinel and Mihaela and which shall represent 80% of the Company's subscribed and paid-in share capital (i.e. after the Company will be transformed from the existing legal form as limited liability company into a joint stock company prior to Closing);

 

	
"Intelsat"

	
means an entity duly organized and validly existing under the laws of England and Wales, headquartered in Chiswick Park 566, Chiswick High Road Building 5, London, W4 5YF UK;

 

	
"Intelsat Debt"

	
means the debt of the Company towards Intelsat, in an amount equal to approximately USD 3,300,000 (three millions three hundred thousand USD), in respect of which Intelsat has issued its consent to partially cancel and extinguish, as detailed in Appendix 3 hereto;

 

	
“Last Accounting Date”

	
means the balance sheet and the financial status of the Company as of 31st March 2015 as reflected in Appendix 11 attached hereto;

 

	
“Losses”

	
means the losses defined in Clause 12.2 hereto;

 

	
“Material Agreements”

	
means any agreements concluded by the Company with third parties (except for customers) exceeding EURO 35,000;

 

	
“Material Adverse Effect”

	
means any damage resulting in the Company’s bankruptcy and/or damage created by any person to the Company and/or one or several changes after the Signing Date, that are, adverse to the condition (financial or otherwise), assets, liabilities, or results of operations or prospects of the Company, in excess of EURO 50,000;

 

	
“Notice of Claim”

	
means the definition provided in Clause 12.3 hereto;

 

	
“Party in breach”

	
means the definition provided in Clause 12.2 hereto;

 

	
“Purchase Price”

	
means the purchase price referred to in Clause 3.1 hereto, to be paid by the Buyer to the Sellers as consideration for the transfer by the Sellers of all Shares to the Buyer;

 

  

Page 5 of 48 pages

  

 

	
"Romanian Company Law"

	
means the Law no. 31/1990 regarding companies as republished within the Official Gazette of Romania and amended to date;

 

	
“RON”

	
means the official currency of Romania;

 

	
"Second Additional Payment"

	
means the second additional payment made by the Buyer to the Seller 1 in respect of the transfer of ownership over the Final Shares, in accordance with Appendix 2 and the other relevant provisions of this Agreement;

 

	
"Second Additional Period"

	
means the period of four (4) fiscal quarters commencing immediately following the end of the First Additional Period corresponding to the Second Additional Payment;

 

	
"Second Execution"

	
means the signing of a Short-Form SPA transferring the ownership over the Subsequent Shares to Buyer against the First Additional Payment, by no later than the lapse of the First Additional Period, as further provided in this Agreement;

 

	
"Second Execution Date"

	
means the date of the Second Execution;

 

	
“Shares”

	
means all nominative shares (“actiuni nominative” in Romanian) of the Company having the legal form of a joint stock company, issued in dematerialized form and representing 100% of the Company's subscribed and paid-in share capital and being held by Cristinel - 90 % of the Company’s share capital - and by Mihaela - 10% of the Company’s share capital, and “Share” shall mean any of the Shares;

 

	
"Shareholders’ Registry"

	
means the shareholders’ registry of the Company having the legal form of a joint stock company in accordance with the provisions of the Romanian Company Law evidencing: (i) the transfer of the Initial Shares from Sellers to Buyer under the signatures thereof and the signature of the Company's directors and (ii) the Company's shareholding structure as of the Closing Date;

 

	
"Short-Form SPAs"

	
means an abridged version of this SPA, executed by the Parties in a form substantially similar to that attached hereto as Appendix 5, to be signed by the Parties on Closing Date, on the Second Execution Date and on the Third Execution Date respectively, as per the provisions of this Agreement, in order to be submitted to the Bucharest Trade Registry for registration therewith of the transfer of ownership over the Shares from the Sellers to the Buyer;

 

	
“Signing Date”

	
means the date shown on the front page, when all Parties signed this Agreement and related appendices;

 

	
"Staff"

	
means the personnel of the Company, to include employees, free-lance professionals (Romanian: "persoane fizice autorizate") and officers, including managers/directors/administrators performing their duties based on an employment/services agreement concluded with the Company;

 

  

Page 6 of 48 pages

  

 

	
"Subsequent Shares"

	
means the number of nominative shares (“actiuni nominative” in Romanian) issued in dematerialized form, owned by Cristinel and which shall represent 10% of the Company's subscribed and paid-in share capital (i.e. after the Company will be transformed from the existing legal form as limited liability company into a joint stock company prior to Closing), after Cristinel having previously duly sold and transferred 70% of the Company’s Shares, as part of the Initial Shares, to the Buyer;

 

	
"Subsidiaries"

	
means the subsidiaries of the Company: (i) Eastern Space Systems Bulgaria EOOD, registered in the Commercial Register at the Registry Agency of the Republic of Bulgaria under registration number (EIK) 12180821, in which the Company holds 100% of the shareholding; and (ii) I.M. Focus-Sat Moldova S.RL., a company incorporated and existing under the laws of the Republic of Moldova, having its headquarters at No. 7 Alexandru cel Bun St., Chişinău, Rep. of Moldova, registered with the relevant Trade Registry under no. 0207149, VAT No. 1007600042389 in which the Company holds 5% of the shareholding;

 

	
“Taxation” or “tax”

	
means all forms of taxation, whether direct or indirect and whether levied by reference to income, profits, gains, net wealth, asset values, turnover, added value or other reference and statutory, governmental, state, local, governmental or municipal impositions, duties, contributions, rates and levies in the nature of taxation (including social security contributions and any other payroll taxes), whenever and wherever imposed (whether imposed by way of a withholding or deduction for or on account of tax or otherwise) and in respect of any person and all penalties, charges, costs and interest relating thereto, and including one off taxes on certain expenses;

 

	
"Tax Authority"

	
means any tax or other State / central or county / municipal / communal authority or body competent to impose, administer, collect or assess or perform controls related to, any tax pursuant to the applicable laws of Romania;

 

	
"Tax on Capital Gains"

	
means the capital gains tax to be calculated and withheld from the Purchase Price and to be also paid by the Buyer to the relevant Tax Authority pursuant to Article 67 of the Law no. 571/2003 regarding the Fiscal Code. The computation of the Tax on Capital Gains shall be made by reference to the National Bank of Romania exchange rate valid on the Closing Date;

 

	
"Third Execution"

	
means the signing of a Short-Form SPA transferring the ownership over the Final Shares to Buyer against the Second Additional Payment, by no later than the lapse of Second Additional Period, as further detailed in this Agreement;

 

	
"Third Execution Date"

	
means the date of the Third Execution;

 

  

Page 7 of 48 pages

  

 

	
“Transaction”

	
means the entire process of sale and purchase of all the Shares held by the Sellers in the Company, as described in this Agreement;

 

	
“Transfer Instruments”

	
means (i) the amendment of the Company’s statutory documents executed in accordance with the applicable laws, containing the necessary references to the Transaction, as required by this Agreement, (ii) the GMS decision pertaining to the approval of the transfer of the Shares in favour of the Buyer, as well as of the amendment above, (iii) the Short-Form SPAs and (iv) other documents to be issued by the Buyer or Sellers as required by the Romanian laws for the registration with the Trade Registry of the transfer of Shares or any other documents which may be necessary in this respect.

 

	
"USD" or “$”

	
means the official currency of the United States of America.

 

	
1.2.

	
In this Agreement, dates and terms expressed in days shall be read as calendar days, unless otherwise specified herein.

 

	
1.3.

	
The words "include" or "including" shall be construed without limitation to the generality of the preceding word.

 

	
1.4.

	
The division of this Agreement into sections and clauses, as well as the headings hereof are for convenience only and shall not affect the interpretation or construction of this Agreement.

 

	
1.5.

	
Any Appendix or other enclosure or attachment to this Agreement will be deemed to form an integral part of this Agreement if attached hereto and marked by the signature of both Parties.

 

	
1.6.

	
All references in this Agreement to a “Clause”, “Schedule” or “Appendix” refer to the corresponding Clause, Schedule or Appendix hereto.

 

	
1.7.

	
Any reference to an agreement, document or other instrument means that agreement, document or instrument as it may have been, and may from time to time be, amended, supplemented or replaced by a document having a similar effect.

 

	
1.8.

	
Any reference to a legislative act or administrative act (in any jurisdiction) means that legislative or administrative act as amended, re-enacted or consolidated (and includes a reference to any regulation, order, instrument or other subordinated legislation under the relevant legislative or administrative act).

 

	
1.9.

	
Any dispute as to the interpretation of this Agreement or the construction of the Parties intentions hereto, shall be interpreted under the assumption of the Parties’ good faith.

 

	
1.10.

	
Whenever a statement is qualified as being made “to the best of knowledge of the Seller" or equivalent words have been used, the respective statement has been so qualified considering that best of knowledge refers to the knowledge resulted after careful and due inquiry by the Sellers of the respective matter and of the relevant consultants (technical, legal, financial, etc) or officers and representatives of the Company, taking into account the standard of a prudent and diligent businessman. The Sellers have used their best endeavours to ensure that all information given, referred to or reflected in that statement is complete, accurate and not misleading in all material respects. However, for the avoidance of any doubt, such statements shall not be deemed to refer to documents/information/other such elements that have not yet been communicated in writing to the Company or the Sellers, in the manner foreseen by the Applicable Law (e.g. subpoenas, notice of summons (judicial or otherwise), etc.)

 

  

Page 8 of 48 pages

  

 

	
1.11.

	
This Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

 

	
2.

	
THE TRANSACTION

 

	
2.1.

	
Sale and Purchase

 

The Sellers hereby agree to sell all the Shares and the Buyer agrees to purchase all the Shares, free and clear from any Encumbrances, together with all rights, benefits and obligations in accordance to the Applicable Law attached thereto, including the right to distributions, dividends and interest paid or payable with respect to the Shares, in 3 (three) steps, as follows:

 

	
  

	
2.1.1.

	
80% of the Company's Shares (the Initial Shares) to be sold and transferred by:

 

	
  

	
2.1.1.1.

	
The Seller 1 – a corresponding number of the Company’s Shares, which will represent 70% of the Company's share capital after the transformation thereof into a joint-stock company; and

 

	
  

	
2.1.1.2.

	
The Seller 2 – a corresponding number of the Company’s Shares, which will represent 10% of the Company's share capital after the transformation thereof into a joint-stock company;

 

 to the Buyer, by executing any and all Transfer Instruments and/or completing all other formalities as necessary to operate and make effective as soon as practicable, as per the Applicable Law provisions, the transfer of the Initial Shares to Buyer;

 

	
  

	
2.1.2.

	
10% of the Company's Shares (the Subsequent Shares) to be sold and transferred by Seller 1 to Buyer, by performing the Second Execution and by executing any and all Transfer Instruments and/or completing all other formalities as necessary to operate and make effective the transfer of the Subsequent Shares to Buyer by no later than 20 (twenty) Business Days from the lapse of the First Additional Period;

 

	
  

	
2.1.3.

	
10% of the Company's Shares (the Final Shares) to be sold and transferred by Seller 1 to Buyer, by performing the Third Execution and by executing any and all Transfer Instruments and/or completing all other formalities as necessary to operate and make effective the transfer of the Final Shares to Buyer by no later than 20 (twenty) Business Days from the lapse of the Second Additional Period.

 

	
2.2.

	
Title over the Initial Shares shall pass on Closing Date from Sellers to the Buyer, in the proportions described under Clause 2.1.1 above, and the Initial Shares shall be purchased, free and clear of any Encumbrances, together with all rights, benefits and obligations attached thereto or accruing to them under the conditions of the Applicable Law, at the Closing Date.

 

	
2.3.

	
Title over the Subsequent Shares shall pass on Second Execution Date from Seller 1 to the Buyer, and the Subsequent Shares shall be purchased, free and clear of any Encumbrances, together with all rights, benefits and obligations attached thereto or accruing to them under the conditions of the Applicable Law, at Second Execution Date.

 

  

Page 9 of 48 pages

  

 

	
2.4.

	
Title to the Final Shares shall pass on Third Execution Date from Seller 1 to the Buyer, and the Final Shares shall be purchased, free and clear of any Encumbrances, together with all rights, benefits and obligations attached thereto or accruing to them under the conditions of the Applicable Law, at Third Execution Date.

 

	
2.5.

	
For the avoidance of any doubt, the Parties hereby expressly agree that the transfer of the Shares from Sellers to Buyer as contemplated in the Clause 2.1 hereto refers to Shares (actiuni in Romanian) which shall be held by the Sellers in the Company in the same percentage as the current one (i.e. Seller 1 - 90% of the Company's share capital and Seller 2 - 10% of the Company's share capital) after the transformation thereof from the existing limited liability company into a joint stock company as presented in the condition precedent to Closing provided in Clause 4.1.7 hereunder.

 

	
2.6.

	
As part of the Transaction, the Parties undertake to execute or cause to be executed or performed all required acts, documents and operations, as set forth herein or as required for achieving a successful transfer of all the Shares to the Buyer, pursuant to the terms and conditions set forth in this Agreement.

 

	
2.7.

	
The Sellers and the Buyer acknowledge that the Buyer (in respect of purchasing the Shares) and the Sellers (in respect of selling the Shares), each rely on the representations and warranties of the other, as provided in this Agreement, and on the other terms and conditions of this Agreement.

 

	
3.

	
THE PURCHASE PRICE AND PAYMENT OF THE PURCHASE PRICE

 

	
3.1.

	
The purchase price ("Purchase Price") to be paid to the Sellers by the Buyer shall consist of the Initial Purchase Price and the First Additional Payment and Second Additional Payment, as follows:

 

	
  

	
3.1.1.

	
The amount of USD 2,600,000 million (two millions and six hundred thousand USD), payable on the Closing Date by the Buyer to the Sellers, as consideration for the ownership right transfer over the Initial Shares ("Initial Purchase Price"), as follows:

 

	
  

	
3.1.1.1.

	
The amount of USD 2,056,250 (two millions fifty six thousand and two hundred and fifty USD), to be paid on the Closing Date to the Seller 1;

 

	
  

	
3.1.1.2.

	
The amount of USD 293,750 (two hundred ninety three thousand and seven hundred and fifty USD), to be paid on the Closing Date to the Seller 2;

 

	
  

	
3.1.1.3.

	
Subject to Clause 4.1.18. the Debts amounting up to USD 250,000 (two hundred and fifty thousand USD) to be paid and transferred by the Buyer and deposited in an escrow account following to be released by the Escrow Agent (as defined in the Escrow Agreement attached hereto as Appendix 12) to the Sellers (in respect of each of the Sellers a pro rataamount corresponding with the number of Initial Shares transferred), upon the Parties written notice under the terms and conditions provided in the Escrow Agreement attached as Appendix 12 hereto. If no Escrow Agreement will be necessary as per Clause 4.1.18, the Debts shall  be paid by the Buyer at Closing in respect of each of the Sellers a pro rata amount corresponding with the number of Initial Shares transferred.

 

  

Page 10 of 48 pages

  

 

	
  

	
3.1.2.

	
An amount equal to the First Additional Payment to be paid by the Buyer to the Seller 1 on the Second Execution Date or other date, which cannot occur later than the Payment Date provided in Appendix 1 hereto, as consideration for the ownership right transfer over the Subsequent Shares, as defined in Appendix 1 and mentioned in the relevant Short-Form SPA; for the avoidance of doubt, the Parties expressly agree that the First Additional Payment may be "0" (zero) based on the calculation mechanism set in Appendix 1, in which case the First Additional Payment will be equal to the nominal value of the Subsequent Shares, which will then be deducted from the Second Additional Payment, except, for avoidance of any doubt, the case in which the Second Additional Payment is also “0” (zero), in which case no such deduction shall be made. In such case, the Parties hereby agree to reach a solution for repayment of the nominal value of the Subsequent Shares;

 

	
  

	
3.1.3.

	
An amount equal to the Second Additional Payment to be paid by the Buyer to the Seller 1 on the Third Execution Date or other date, which cannot occur later than the Payment Date provided in Appendix 2 hereto, as consideration for the ownership right transfer over the Final Shares, as defined in Appendix 2 and mentioned in the relevant Short-Form SPA; for the avoidance of doubt, the Parties expressly agree that the Second Additional Payment may be "0" (zero) based on the calculation mechanism set in Appendix 2, in which case the Second Additional Payment will be equal to the nominal value of the Final Shares.

 

	
3.2.

	
The Parties agree that the First Additional Payment and the Second Additional Payment, calculated as per Appendix 1 and 2 hereto are capped, so that the total Purchase Price paid by the Buyer to the Sellers for all the Shares will not exceed USD 3,700,000 million (three million and seven hundred thousand USD) (the "Cap Price"). The Parties expressly agree that the Purchase Price, as calculated based on the provisions of this Agreement, is sufficient consideration for each and all of the Shares subject to transfer.

 

	
3.3.

	
The Parties agree that the Initial Purchase Price shall be adjusted at the Closing Date by the amount representing the difference between the actual cash balance of the Company as reflected in the balance sheet of the Company and in its bank accounts as of the Closing Date and the amount of USD 500,000 (five hundred thousand). The respective difference shall be either added to the Initial Purchase Price (in case the difference is a positive number) or decreased from the Initial Purchase Price (in case the difference is a negative number), as the case may be. For the avoidance of any doubt, negative cash balance shall mean any amount less than USD 500,000 (five hundred thousand) to be registered in the balance sheet of the Company and in the bank accounts of the Company as at the Closing Date and positive cash balance shall mean any amount in excess of USD 500,000 (five hundred thousand) to be registered in the balance sheet of the Company and in the bank accounts of the Company as at the Closing Date.

 

	
3.4.

	
The Parties hereby expressly agree that the Initial Purchase Price shall be also further adjusted at the Closing Date in case the Company incurs, until the Closing Date, any outstanding debt other than: (i) the Intelsat Debt; (ii) the current day to day operating debt (i.e. towards usual suppliers) which may be or become outstanding at the Closing Date and (iii) short or medium term credit facility or facilities for operating the cash flow, the outstanding value of which shall be up to EURO 50,000. The Sellers hereby agree that this adjustment mechanism shall mean that the Buyer may deduct from the Initial Purchase Price the above amounts, if such case may be, prior to actually performing the payment of the Initial Purchase Price as mentioned in Clauses 3.1.1.1 and 3.1.1.2 as at Closing Date.

 

	
3.5.

	
The Purchase Price and Cap Price (if such case may be) are inclusive of all Taxes that might be due in relation to the sale-purchase of the Shares and any other fees related to the payment of the Purchase Price, unless the Parties expressly agreed otherwise within this Agreement. For the avoidance of any doubt, the Parties shall bear their own bank commission expenses in relation to the Purchase Price.

 

  

Page 11 of 48 pages

  

 

	
3.6.

	
The Purchase Price and Cap price agreed under Clauses 3.1 and 3.2 do not bear VAT and they shall be paid as such (less the Tax on Capital Gains related thereto) into the Sellers’ bank accounts, such as specified hereunder.

 

	
3.7.

	
In case of the aforementioned amounts to be paid by the Buyer as Purchase Price or Cap Price or parts thereof, all such amounts are regarded to include at all times the Tax on Capital Gains tax due by the Sellers, which, if so required under the Applicable Law, shall be withheld and paid by the Buyer (on behalf of the Sellers) to the relevant Tax Authorities, according to the relevant legal provisions, within no more than 3 (three) Business Days as from actual payment of the Purchase Price or Cap Price or parts thereof as per the Agreement (for the avoidance of any doubts, the Parties agree that within the above-mentioned term, the Buyer shall provide to the Sellers: (i) a certified copy of the payment order of the respective amounts representing the Tax on Capital Gains; along with (ii) a bank account excerpt certified by the bank).

 

	
3.8.

	
The Purchase Price, less the Tax on Capital Gains related thereto, shall be transferred by the Buyer, on the dates and under the conditions mentioned in this Agreement, into the Sellers’ bank accounts to be provided in writing by the Sellers at Closing.

 

	
4.

	
CLOSING

 

	
4.1.

	
Unless expressly waived in writing by the benefiting Parties, the Closing shall be conditional upon the fulfilment of the following conditions precedent, which are material to and of the essence to this Agreement:

 

	
  

	
4.1.1.

	
Merger Control. To the extent this is required under the relevant regulations, the Buyer has obtained a favourable and unconditional decision issued by the Romanian Competition Council declaring that the economic concentration created under this Agreement is compatible with the relevant competition regulations.

 

	
  

	
4.1.2.

	
Clearance. To the extent this is required under the relevant telecom and media regulations, the Transaction contemplated hereunder and the transfer of the Initial Shares from Sellers to Buyer being priory approved by any competent Governmental Authority;

 

	
  

	
4.1.3.

	
Due Diligence. Following completion of the financial, legal, technical and tax Due Diligence review, the Buyer has reached satisfactory results, having been provided by the Sellers with all the information requested for such purpose.

 

	
  

	
4.1.4.

	
Licenses/authorizations. The Company has in place all the licenses and/or authorizations needed as per the Romanian legislation to carry out its core activity, which remain valid and usable, as they were issued by the relevant authorities, after the consummation of the Transaction as provided herein.

 

	
  

	
4.1.5.

	
Sellers' Approvals. The Sellers having produced all documents and approvals required under the relevant legislation, including the execution of the Company’s updated Constitutive Act, and the GMS resolution approving the execution of this Agreement, the execution of the Short-Form SPA regarding the Initial Shares, the changes in the shareholding structure, the Company’s updated Constitutive Act in a form and substance satisfactory to Buyer and the amendments to the structure and powers of the directors, such GMS resolution to be approved in a form substantially similar to that comprised in Appendix 7 hereto.

 

  

Page 12 of 48 pages

  

 

	
  

	
4.1.6.

	
Banks' Prior Approvals. The Sellers having obtained bank written approvals from Credit Europe Bank for : (i) changing the legal form of the company from limited liability to joint stock company and (ii) consummation of the Transaction;

 

	
  

	
4.1.7.

	
Corporate change. The Sellers having procured that the Company will have changed its corporate status from, currently, a limited liability to a joint stock company by keeping the existing percentages of Shares of the Sellers held in the Company.

 

	
  

	
4.1.8.

	
Shareholders’ Registry. The Sellers and the Buyer shall have registered the transfer of the ownership right over the Initial Shares into the Shareholders’ Registry and duly signed along with the Company's directors to acknowledge the transfer of the Initial Shares.

 

	
  

	
4.1.9.

	
No tax debt. The Sellers shall obtain an up-to-date certificate issued by the relevant Tax Authority (i.e. fiscal certificate or, in Romanian: “certificat fiscal”) ascertaining that all taxation for which the Company is liable under the applicable laws have been paid prior to the Closing Date and there are no such Encumbrances with respect to Taxation upon any of the assets or properties of the Company at the closest possible date to Closing but, nevertheless, before Closing.

 

	
  

	
4.1.10.

	
No outstanding debt. Without prejudice of Clause 3.4. hereto, the Company shall have no outstanding debt other than: (i) the Intelsat Debt, as restructured and partially cancelled and extinguished by Intelsat in accordance with Appendix 3 attached hereto and (ii) the current day-to-day operating debt (i.e. towards usual suppliers) which may be or become outstanding at the Closing Date and (iii) short or medium-term credit facility(ies) for operating cash flow, the outstanding value of which shall be up to EUR 50,000 (fifty thousand).

 

	
  

	
4.1.11.

	
Intelsat Debt restructuring. The Sellers procuring that Intelsat shall have agreed to the restructuring of the Intelsat Debt, by Intelsat executing the document in the form and substance as set forth in Appendix 3 hereto and Intelsat shall not, up to the Closing Date, make any other claims or request any additional payments on account of the Intelsat Debt, other than as agreed in the document set forth in Appendix 3 hereto.

 

	
  

	
4.1.12.

	
Working capital. The Company shall have a normalized level of working capital, as apparent in the Financial Statements of the Company and on the Last Accounting Date, which have been presented to the Buyer.

 

	
  

	
4.1.13.

	
No contrary ruling. To the best of each of the Parties’ knowledge, no preliminary or permanent injunction or other order, decree or ruling issued by a Governmental Authority or court or competent jurisdiction, nor any law promulgated or enacted, shall be in effect that would impose material limitations on the legal capacity of any Party to consummate the Transaction or any parts thereof.

 

	
  

	
4.1.14.

	
Accuracy of representations and warranties. Each Party's representations and warranties shall be true and correct in all respects.

 

	
  

	
4.1.15.

	
No Material Adverse Effect. No Material Adverse Effect shall have occurred in relation to the Company and any of the assets thereof until Closing Date.

 

  

Page 13 of 48 pages

  

 

	
  

	
4.1.16.

	
New Management Agreements. Cristinel having entered into a management agreement with the Company and each other key employees of the Company (as listed in Appendix 10) kept the existing ones including terms and conditions which are mutually satisfactory to such individuals and Buyer. For the avoidance of any doubt the form and substance of the management agreement of Cristinel or any of his Affiliates is provided in the Appendix 8 attached hereto (the “Management Agreement”), which shall include, inter alia, customary non-competition and non-solicitation provisions and a compensation package.

 

	
  

	
4.1.17.

	
Buyer's Approval. The Buyer having obtained the written approval of its Board of Directors to continue and consummate the Transaction.

 

	
  

	
4.1.18.

	
Waiver letters or Escrow Agreement. The Sellers presenting to the Buyer waiver letters issued by the Company’s creditors satisfactory to the Buyer concerning the writing off of the Debts or part thereof. Alternatively, if no such waivers letters shall be presented or the Debts are not entirely written off, the Parties and the Escrow Agent shall enter into an Escrow Agreement substantially in the form and content as provided in the Appendix 12 hereto.

 

	
4.2.

	
Upon fulfilment of any of the above conditions preceding the Closing, the respective Party shall promptly notify the other Party, in order to allow such Party to assess and confirm, as soon as practically possible, the fulfilment of the respective condition precedent.

 

	
4.3.

	
When all the conditions precedent mentioned above are fulfilled, the following actions shall be undertaken by the Parties at Closing Date, in the following order:

 

	
  

	
4.3.1.

	
The Parties have provided each other with proper documents/evidence that the conditions precedent mentioned above have been duly met;

 

	
  

	
4.3.2.

	
The Buyer shall instruct its bank to irrevocably transfer the Initial Purchase Price mentioned in Clause 3.1.1. above to each of the Seller’s Bank Account less the Tax on Capital Gains; and

 

	
  

	
4.3.3.

	
The Parties shall duly execute the Closing Certificate in a form substantially similar to that mentioned in Appendix 6.

 

	
4.4.

	
The Second Execution and the Third Execution shall be conditional upon the Sellers' representations and warranties mentioned in Clause 8 hereunder referring to the period up to the Closing Date remaining valid and accurate throughout the First Additional Period and Second Additional Period. Once the Second Execution and the Third Execution have respectively occurred, the aforementioned representations and warranties will be considered to have been restated and confirmed, as applicable, by each relevant Party with respect to each of the Second Execution and Third Execution.

 

	
5.

	
REGISTRATION

 

	
5.1.

	
The Parties shall cooperate to ensure the registration of the Initial Shares transfer with the relevant Trade Registry as soon as practically possible after the Closing Date.

 

	
5.2.

	
The actual registration of the ownership transfer of the Initial Shares with the relevant Trade Registry shall be performed by the Buyer and is conditional upon the Buyer and the Sellers having produced the documents required by the relevant Trade Registry, evidencing that all legal requirements are met under the Romanian law so that the Buyer may be registered as shareholder of the Company. The registration of the transfer of the Subsequent Shares and of the Final Shares with the relevant Trade Registry shall be performed by the Buyer and is conditional upon the Buyer and the Sellers having produced the documents required by the relevant Trade Registry, evidencing that all legal requirements are met under the Romanian law so that the Buyer may be registered as shareholder of the Company.

 

  

Page 14 of 48 pages

  

 

	
6.

	
SIMPLIFIED AGREEMENT FOR REGISTRATION WITH TRADE REGISTRY

 

	
6.1.

	
For the purpose of Closing the Transaction, the Parties will execute a simplified assignment agreements - the Short-Form SPAs - for the sole purpose of registration of the transfer of the Shares with the relevant Trade Register, as attached hereto in Appendix 5. The Parties specifically mention and agree that the relationships between the Parties shall be governed exclusively by this Agreement in all matters and regards thereof. The Parties expressly agree that this Agreement will not be considered to be amended, altered or supplemented in any way by the Short-Form SPAs, and the Parties agree not to use the Short-Form SPAs for any other purposes than registration of the transfer of Shares with the relevant Trade Registry and other authorities.

 

	
7.

	
PRE-CLOSING RESTRICTIONS

 

	
7.1.

	
The Sellers each undertake that, within the period between the Signing Date and the Closing Date shall, and shall procure that the Company shall:

 

	
  

	
7.1.1.

	
conduct the business activities in the ordinary course only and in such a way that it is consistent with the manner it had conducted activities up to the Signing Date;

 

	
  

	
7.1.2.

	
give access to all the premises, books and records of the Company and provide the Buyer with the requested documents and information;

 

	
  

	
7.1.3.

	
obtain the prior written approval of the Buyer for every decision which is may have Material Adverse Effect for the performance of the Company’s activity, in particular with regard to relationships with Intelsat, banks, suppliers and customers;

 

	
  

	
7.1.4.

	
generally, submit all documents and applications, meet the respective deadlines and perform such activities and sign such acts, as are required for the proper continuation of the businesses of the Company, renewal or issuance of its authorizations, permits and licenses;

 

	
  

	
7.1.5.

	
without prejudice to the potential liability of the Sellers, promptly notify the Buyer in writing in respect to any event or circumstance of which the Sellers become aware which is likely to be a breach of the Warranties provided in Clause 8, as well as in respect to any Material Adverse Effect and upon the commencement of, or the imminent or threatened commencement of, or upon obtaining knowledge of any facts that would give rise to any legal proceedings brought to hinder the consummation of the Transaction or any part thereof, or against or relating to the Sellers or the Company, which could materially adversely affect the Transaction or any part thereof, or the capacity of the Sellers to perform the obligations thereof hereunder;

 

	
  

	
7.1.6.

	
the Company shall use its best endeavours to preserve, on an arm's length terms, its present contractual relationships and the terms and conditions thereof, including by not making them more onerous for the Company;

 

	
  

	
7.1.7.

	
the Company does not enter into any contract which restricts the Company's ability to choose its suppliers and customers at any time;

 

  

Page 15 of 48 pages

  

 

	
  

	
7.1.8.

	
the Company shall not make any sales at an undervalue and any purchases at an overvalue which may trigger the annulment of the respective operations;

 

	
  

	
7.1.9.

	
the Company duly and timely pays all wages to the Staff and uses its best endeavours to procure that the contractual relationship of the Staff with the Company is in force on the Closing Date;

 

	
  

	
7.1.10.

	
the Company does not modify the terms and conditions of its contractual arrangements with the Staff (including salaries and bonuses);

 

	
  

	
7.1.11.

	
there will be no management fee or other extraordinary compensation (including bonuses) paid or payable to the Sellers or their Affiliates or the Staff and there are no other such extraordinary payments made or payable, other than: (i) customary salary payments and/or (ii) payments/compensations of the nature mentioned in this Clause 7.1.11 but that derive from arrangements/contracts executed before the Signing Date;

 

	
  

	
7.1.12.

	
the Company shall maintain in full force and effect the existing insurance policies or, if replaced, the new insurance policies shall provide for at least the same terms for the Company as the replaced ones, unless otherwise indicated herein;

 

	
  

	
7.1.13.

	
the Sellers undertake: (i) to comply in all material respects with all laws and regulations applicable to the Sellers and the Company and maintain valid all the then existing authorizations and permits of the Company, (ii) to timely make and file with Tax Authorities all Tax returns, reports and other documents due to be filed by the Company and timely pay all Tax shown to be due thereon or otherwise due and payable by the Company.

 

	
  

	
7.1.14.

	
without limiting the generality of the foregoing, during the period between the Signing Date and the Closing Date, the Sellers have not and shall not, except with the Buyer’s prior and express written consent, cause the Company to:

 

	
  

	
7.1.14.1.

	
enter into any operation (excluding payments already assumed/mandatory to the Company or other payments executed in the ordinary course of business, if any) in excess of EUR 10,000 or which may cause to the Company a Material Adverse Effect;

 

	
  

	
7.1.14.2.

	
declare or pay any dividend or other distribution in respect of the Shares, or make any redemption, purchase or other acquisition of any shares or any securities;

 

	
  

	
7.1.14.3.

	
fail to keep proper accounting records of the Company or fail to perform true and complete entries of all its dealings and transactions;

 

	
  

	
7.1.14.4.

	
authorize, issue, sell, offer to sell and transfer, dispose of or impose any Encumbrance on any of their Shares or on any shares of the Company’s Subsidiaries;

 

	
  

	
7.1.14.5.

	
sell, transfer, license or otherwise dispose of, or impose any Encumbrance on, in whole or in part on, the Company’s assets, properties or intellectual property which are connected to the Company; the Company shall maintain all its material assets in their current condition (ordinary wear and tear excepted);

 

	
  

	
7.1.14.6.

	
amend the Constitutive Act of the Company, save for the amendments strictly required for changing the legal form of the Company from limited liability into a joint stock company;

 

  

Page 16 of 48 pages

  

 

	
  

	
7.1.14.7.

	
adopt any plan of or resolutions providing for (or otherwise engage in any) complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of the Company or file an application for bankruptcy;

 

	
  

	
7.1.14.8.

	
enter into, substantially amend or terminate any Material Agreement of the Company or a Seller’s Affiliates;

 

	
  

	
7.1.14.9.

	
undertake or to incur any capital investments;

 

	
  

	
7.1.14.10.

	
borrow any money and/or make any payments out of or drawings on its bank account(s) except routine payments and related payments to be undertaken for the fulfilment of obligations provided herein or existing obligations undertaken by the Company prior to the Closing Date;

 

	
  

	
7.1.14.11.

	
enter into any joint venture, association and/or any other similar agreements or acquire shares in any company;

 

	
  

	
7.1.14.12.

	
settle or complete any litigation which has or may have a Material Adverse Effect on the Company and Transaction contemplated hereunder;

 

	
  

	
7.1.14.13.

	
do, permit or procure any act or omission which would constitute a breach of any of the Sellers’ Warranties.

 

	
7.2.

	
Each Seller hereby further undertakes not to and shall cause the Company not to perform any activity and/or sign any document on or after the Signing Date and before the Closing Date that will or could negatively affect, impede or hinder the Transaction contemplated in this SPA or any part thereof.

 

	
7.3.

	
For avoidance of any doubt, it is the Buyer’s intent to acquire the participations in the share capital of the Company in the form of a joint stock company and neither: (i) the Company’s share capital increase operation to be undertaken by the Sellers prior to Closing; (ii) nor the change of the incorporation form to a joint stock company and the appointment of a financial auditor shall represent or be construed of the default of the Seller’s and/or the Company in respect of the provisions of this Agreement.

 

	
8.

	
SELLER’S REPRESENTATIONS AND WARRANTIES

 

Each Seller hereby undertakes, represents and warrants to the Buyer that the following statements are true, accurate and not misleading as at the Signing Date and shall remain, in respect of the period for such statements are referring to, fully applicable and true throughout the Transaction until the Closing Date or the termination of this Agreement (whichever occurs first) if not expressly mentioned otherwise under this Clause 8:

 

	
8.1.

	
General

 

	
  

	
8.1.1.

	
Authority. The Sellers have the requisite power to execute, deliver and perform its obligations under this Agreement and no other consent or approval by, or notice to any third party or authority is required in connection with the signing of this Agreement and the transfer of the Shares.

 

  

Page 17 of 48 pages

  

 

	
  

	
8.1.2.

	
Enforceability. This Agreement and each document executed by the Sellers at or before Closing Date shall, when executed, be legally binding documents, enforceable against the Sellers and/or their successors, bringing about legal and firm commitments, in accordance with the terms of this Agreement.

 

	
  

	
8.1.3.

	
No Default. The execution of this Agreement, in compliance with the terms herein, will not:

 

	
  

	
(i)

	
breach any contractual provision or require any additional consent or trigger the creations of any Encumbrance over the Company’s assets or over the Shares or over the assets of or shares in the Subsidiaries, on the basis of any agreement or undertaking that may produce negative effects over the Sellers or the Company;

 

	
  

	
(ii)

	
constitute a default or an event which, with the service of notice, the passage of time or the making of any determination, would constitute a default under any agreement or commitment which may produce negative effects over the Sellers or the Company or the Subsidiaries;

 

	
  

	
(iii)

	
result in the Company and/or a Subsidiary losing the benefit of, or adversely affect, any asset, grant, subsidy, right, permit, authorization, license or privilege which it enjoys at the date of this Agreement;

 

	
  

	
(iv)

	
conflict with, result in a breach of, give rise to an event of default under, require the consent of a person under, enable a person to terminate, or relieve a person from an obligation under any agreement or arrangement to which the Company or a Subsidiary is a party or any legal or administrative requirement by which the Company or a Subsidiary is bound.

 

	
  

	
8.1.4.

	
Information. All information and documents provided or caused to be provided to the Buyer or to individuals and/or legal entities acting on their behalf, by the Sellers and/or the Company, for the purpose of and in the course of negotiations leading to execution of this Agreement are true, sincere, complete and accurate in all material respects. All information relating to the Company, which is known to Sellers and which would materially affect the Buyer has been disclosed to the Buyer in writing prior to the Closing Date.

 

	
  

	
8.1.5.

	
Statements. All statements given by the Sellers under or pursuant to this Agreement are true, complete and accurate in all respects.

 

	
  

	
8.1.6.

	
Approvals: For the purposes of entering into new agreements or amending the existing ones, The Company has obtained all the required approvals from the Credit Europe Bank and as such are provided in the facility agreements and all the addenda connected thereto concluded by the Company with the latter bank.

 

	
8.2.

	
Corporate

 

	
  

	
8.2.1.

	
The Company has been incorporated in accordance with the laws of Romania and has all necessary licenses, permits and authorizations to carry out all of its current business activities; the Constitutive Act of the Company has been duly registered, is valid and shall remain unchanged until the conclusion of the amended Constitutive Act, pursuant to the provisions of this Agreement;

 

	
  

	
8.2.2.

	
The Company’s share capital as such will result from transformation of the limited liability into joint stock company shall be held by Cristinel - 90 % of the Company’s share capital - and by Mihaela - 10% of the Company’s share capital;

 

  

Page 18 of 48 pages

  

 

	
  

	
8.2.3.

	
The Sellers are the sole owners of the Shares (in the percentages mentioned above) and are entitled to sell and transfer to the Buyer the full and exclusive ownership over the Shares upon the terms of this Agreement, without the consent and/or approval of any third party;

 

	
  

	
8.2.4.

	
There are no resolutions of the Company’s GMS that could hinder the sale of the Shares, nor any resolutions to approve or envisage the merger with a corporate body or any other person, increase in the share capital of the Company or to declare and/or approve distribution of dividends.

 

	
  

	
8.2.5.

	
The Shares have been properly allotted, duly subscribed, are fully paid up and, for purposes of Applicable Law, have been duly registered and issued to the Sellers;

 

	
  

	
8.2.6.

	
There is no Encumbrance, and there is no agreement or obligation to create or give an Encumbrance, in relation to any of the Shares. To the best knowledge of the Sellers, no person has claimed to be entitled to an Encumbrance in relation to any of the Shares and there are no promises over the transfer of Shares made by the Sellers towards third parties;

 

	
  

	
8.2.7.

	
Other than this Agreement, there is no agreement or obligation requiring the creation, allotment, issue, transfer, redemption or repayment of, or the grant to a person of the right (conditional or not) to require the allotment, issue, transfer, redemption or repayment of, a Share in the capital of the Company (including, without limitation, an option or right of pre-emption or conversion);

 

	
  

	
8.2.8.

	
There are no rights of third parties to the annual earnings, assets and/or proceeds of the Company, including those that may result out of liquidation/windup procedures;

 

	
  

	
8.2.9.

	
The Company is the legal owner of the shares in the Subsidiaries, as follows: (i) Eastern Space Systems Bulgaria EOOD, registered in the Commercial Register at the Registry Agency of the Republic of Bulgaria under registration number (EIK) 12180821, in which the Company holds 100% of the shareholding; and (ii) I.M. Focus-Sat Moldova S.RL., a company incorporated and existing under the laws of the Republic of Moldova, having its headquarters at No. 7 Alexandru cel Bun St., Chişinău, Rep. of Moldova, registered with the relevant Trade Registry under no. 0207149, VAT No. 1007600042389, in which the Company holds 5% of the shareholding; the Company has no participation in other legal entities nor has it concluded any agreements regarding such participation in other legal entities;

 

	
  

	
8.2.10.

	
The Company has not entered into any security agreement, guaranty, joint liability, assumption of debt, accession to debt or debt guaranty to the benefit of third parties, including the Sellers; the same is applicable for the Subsidiaries;

 

	
  

	
8.2.11.

	
The Company has not granted a power of attorney or other authority by which a person may enter into an agreement, arrangement or obligation on the Company’s behalf (other than the authority for a director, other officer or employee to enter into an agreement in the usual course of that person’s duties);

 

	
  

	
8.2.12.

	
The Company does not have any branch or agency or other commercial establishment other than the Subsidiaries.

 

  

Page 19 of 48 pages

  

 

	
  

	
8.2.13.

	
The latest version of the Constitutive Act executed by the Sellers and duly registered with the Trade Registry is the one dated 25 January 2011.

 

	
  

	
8.2.14.

	
The Company has distributed the dividends to its shareholders in compliance with the provisions of the facility agreements concluded with Credit Europe Bank.

 

	
8.3.

	
Financial matters - general issues

 

	
  

	
8.3.1.

	
The Financial Statements of the Company have been prepared in accordance with the relevant regulations and have been duly approved by the shareholders of the Company in general meetings pursuant to the Constitutive Act of the Company and the applicable laws and fully and properly describe all taxes and other tax related requirements;

 

	
  

	
8.3.2.

	
The Financial Statements are a true and fair view of the Company’s status of business, and of the Company’s assets, liabilities and profit. The Company has set up sufficient internal controls to ensure that any transactions have been and are properly recorded and valued in the accounts in accordance with legal provisions in force;

 

	
  

	
8.3.3.

	
The results shown by the audited profit and loss accounts of the Company in accordance with the Financial Statements have not (except as disclosed in those accounts) been affected by an extraordinary, exceptional or non-recurring item or by another fact or circumstance making the profit or loss for a period covered by any of those accounts unusually high or low.

 

	
  

	
8.3.4.

	
There are no outstanding claims, interest or penalties in respect of Taxation or any unpaid Taxation other than those provided for in the Financial Statements;

 

	
  

	
8.3.5.

	
All returns, computations, claims, contributions, elections and notices which are or have been required to be made or given by the Company for any Taxation purposes have been made on a proper basis and are up to date and correct and the Company has received no notice that any of them is subject of any dispute with any Tax Authority.

 

	
  

	
8.3.6.

	
All Taxation and contributions for which the Company has been liable to pay, deduct, withhold or collect for payment, have, insofar as such Taxation ought to have been paid on or before the Closing Date in accordance with the relevant legal provisions, been paid to the relevant Tax Authority and there are no Encumbrances with respect to Taxation upon any of the assets or properties of the Company;

 

	
  

	
8.3.7.

	
All the books of account and other material records of the Company are in the Company’s possession and have been at all times properly kept and maintained as required by law;

 

	
  

	
8.3.8.

	
There are no off-balance sheet commitments, actual or contingent, made, given, entered into or incurred by or on behalf of the Company;

 

	
  

	
8.3.9.

	
The Company has not received from any Tax Authority any payment to which it was not entitled and, to the best of knowledge of the Sellers, has not received any tax assessment in which its Tax liability was understated;

 

	
  

	
8.3.10.

	
In the 5 (five) years prior to the Signing Date and currently, the Company is and has not been a party to or otherwise involved in any transaction, agreement or arrangement which, regarded as a stand-alone operation, is not at arm’s length, or any transaction, agreement or arrangement (whether or not at arm’s length) under which it has been or is or may be required to make any payment for any goods, services or facilities provided to it which is in excess of the market value of such goods, services or facilities or under which it has been, or is or may be required to provide goods, services or facilities for a consideration which is less than the market value of such goods, services or facilities and/or in consequence of which it is or will be liable to Tax in respect of an amount deemed for Tax purposes to be income or gains of the Company.

 

  

Page 20 of 48 pages

  

 

	
8.4.

	
Changes after the date of the Last Accounting Date

 

	
  

	
8.4.1.

	
Since the Last Accounting Date (a) the Company's business has been operated in the usual way (b) there has been no Material Adverse Effect in the financial or trading position or prospects of the Company; and (c) no material change has occurred in the assets and liabilities shown in the Financial Statements and there has been no reduction outside the normal market fluctuation in the value of the net tangible assets of the Company on the basis of the valuations used in the Financial Statements.

 

	
  

	
8.4.2.

	
Since the Last Accounting Date:

 

	
  

	
(i)

	
the Company has not, other than in the usual course of its business: (a) acquired or disposed of, or agreed to acquire or dispose of, an asset; or (b) assumed or incurred, or agreed to assume or incur, a liability, obligation or expense (actual or contingent);

 

	
  

	
(ii)

	
the Company has not, other than in the usual course of its business factored, sold or agreed to sell a debt;

 

	
  

	
(iii)

	
the Company has not, other than in the usual course of its business made, or agreed to make, any capital expenditures or incurred, or agreed to incur, a commitment or commitments involving any capital expenditures not disclosed to the Buyer;

 

	
  

	
(iv)

	
the Company's businesses have not been, otherwise than in the normal course, materially and adversely affected by the termination of, or a change in the terms of, an agreement or by the loss of a customer or supplier or by an abnormal factor not affecting similar businesses and to the best of the Seller's knowledge, information and belief, no fact or circumstance exists which might have a material and adverse effect on the Company's business;

 

	
  

	
(v)

	
the Company has not declared, paid or made a dividend or distribution except as provided in the Financial Statements;

 

	
  

	
(vi)

	
the Company has not changed its accounting reference period;

 

	
  

	
(vii)

	
the Company has not created, allotted, issued, acquired, repaid or redeemed share or loan capital or made an agreement or arrangement or undertaken an obligation to do any of those things.

 

	
8.5.

	
Immovable Assets

 

	
  

	
8.5.1.

	
The Company does not own, hold or have any other legal title over immovable assets, other than the lease agreement for the Company’s headquarters.

 

  

Page 21 of 48 pages

  

 

	
  

	
8.5.2.

	
The Company has a valid title to use the locations from which it operates pursuant to valid and binding legal title. The Company is compliant with the terms thereof and no written claim of any default thereunder has been received by the Company which has not been cured and consummation of the Transaction will not give rise to any right of termination or loss of any rights of use currently enjoyed under such lease agreements. All rent and other sums and charges payable and which, from time-to-time, were due, under such legal titles, have been paid accordingly by the Company.

 

	
  

	
8.5.3.

	
There are no notices received by the Company, negotiations or proceedings pending concerning rent increases in relation to the locations from which the Company operates.

 

	
  

	
8.5.4.

	
The use by the Company of the headquarters is the permitted or lawful use for the purpose of the applicable planning laws. The necessary planning permission has been granted in respect of the developments carried out by the Company in relation to the locations and all necessary consents have been obtained for such developments.

 

	
8.6.

	
Movable Assets

 

	
  

	
8.6.1.

	
Each asset included in the accounts and each asset used by the Company or which is in the reputed ownership of the Company is (a) legally and solely owned by the Company free of any Encumbrance except for the pledges constituted over the Company’s movable assets in favour of Credit Europe Bank Romania S.A. and (ii) where capable of possession, in the possession or under the control of the Company.

 

	
  

	
8.6.2.

	
All assets owned, possessed or used by the Company are in good condition and normal wear and tear as per the working order and have been regularly checked and properly maintained by the Company and used in accordance with the destination thereof.

 

	
  

	
8.6.3.

	
The electronic equipments used by the Company for the activity thereof are adequately installed and functioning in good operating condition and the maintenance and repair thereof have been performed so that the business of the Company will not be materially affected or there will be major disruptions of the Company’s activity.

 

	
  

	
8.6.4.

	
The assets owned by the Company are sufficient to enable the Company to perform its telecommunication business in the ordinary course of business as performed prior to the Signing Date and observe the legal requirements and standards applicable to the provisions enacted and standards imposed in the telecommunication field.

 

	
8.7.

	
Agreements

 

	
  

	
8.7.1.

	
The obligations that derive from any of the agreements entered into by the Company have been fulfilled by the Company in such a manner that there are no circumstances or grounds that could lead to justified notices of default or claims under these agreements.

 

	
  

	
8.7.2.

	
Up until the Closing Date, the Sellers shall procure that Intelsat shall not make any other claims or request any additional payments towards the Company and/or Buyer on account of the Intelsat Debt, other than as agreed in the document set forth in Appendix 3 hereto.

 

  

Page 22 of 48 pages

  

 

	
  

	
8.7.3.

	
Neither the Company nor the Sellers have any legal obligation, nor are the Company or the Sellers currently negotiating with any person other than the Buyer to sell or promise to sell any of the Shares or any portion thereof, to effect any merger, consolidation or other reorganization of the Company, or to enter into any agreement with respect thereto.

 

	
  

	
8.7.4.

	
To the best of the Sellers’ knowledge, information and belief, no fact or circumstance exists which might invalidate or give rise to a ground for termination, avoidance or repudiation of an agreement, arrangement or obligation to which the Company is a party. No party with whom the Company has entered into an agreement, arrangement or obligation has given notice of its intention to terminate, or has sought to repudiate or disclaim, the agreement, arrangement or obligation.

 

	
  

	
8.7.5.

	
The Company is not in material breach of the agreement, arrangement or obligation. To the best of the Seller's knowledge, information and belief, no fact or circumstance exists which might give rise to a breach of this type.

 

	
  

	
8.7.6.

	
The Company is not a party to, and is not liable under, a long-term (i.e. greater than 3 (three) years), onerous or unusual agreement, arrangement or obligation including, without limitation:

 

	
  

	
(i)

	
an agreement, arrangement or obligation entered into other than in the usual course of its business;

 

	
  

	
(ii)

	
an agreement, arrangement or obligation entered into other than at arm's length;

 

	
  

	
(iii)

	
an agreement, arrangement or obligation restricting the Company's freedom to operate the whole or part of its business or to use or exploit any of its assets (excluding any restrictions which may have been imposed in this respect by any entity or entities financing the Company);

 

	
  

	
(iv)

	
a sale or purchase, option or similar agreement, arrangement or obligation affecting an asset owned, occupied, possessed or used by the Company or by which the Company is bound; or

 

	
  

	
(v)

	
a material agreement, arrangement or obligation with which the Company cannot comply on time or without undue or unusual expenditure of money or effort.

 

	
  

	
8.7.7.

	
The Company is not a member of a joint venture, consortium, partnership or association (other than a bona fide trade association) or a party to a distributorship, agency, franchise or management agreement or arrangement.

 

	
  

	
8.7.8.

	
There is, and respectively there has been, in the period of 3 (three) year prior to the Signing Date, no (i) agreement or arrangement (legally enforceable or not) to which the Company is or was a party and in which the Sellers, a member of the board of directors of the Company or a family member of such a person were interested or (ii) any other related-party agreements (including, without limitation – loan agreements, etc), in both cases save for those disclosed to the Buyer prior to Closing Date which should have been terminated prior to Closing Date, if not otherwise agreed by the Parties.

 

  

Page 23 of 48 pages

  

 

	
  

	
8.7.9.

	
No person is entitled to receive from the Company a finder's fee, brokerage or commission in connection with this Agreement or anything contained in it.

 

	
  

	
8.7.10.

	
The Company’s commercial contracts which are pending at the Signing Date are those listed in Appendix 9.

 

	
8.8.

	
Employment

 

	
  

	
8.8.1.

	
The Company has kept the Labor Books (carnetele de munca), Employee Evidence Register (registrul de evidenta al salariatilor) and the other required records and registration regarding its employees in accordance with the Applicable Law, including registration with the labour authorities. The Company has in place all the regulations required by the Applicable Law and has initiated negotiations with the Employees for conclusion of collective employment agreements or any other similar agreements at the Company's level, if required by the Applicable Law;

 

	
  

	
8.8.2.

	
The Company has no pre-existing obligation, which is due upon or after Closing Date, to make either severance or compensation or any other kind of payments to former employee and/or director with whom the employment/mandate relation will be terminated before the Closing Date.

 

	
  

	
8.8.3.

	
The Company has fully and timely complied with all duties and obligations arising under the applicable regulations regarding the payment of taxes, charges and contributions to be charged in consideration of or in connection to the employment relationships. All due salary-related duties have been fully paid to the employees and the Company has fully paid any social security contributions, pension payments or other sums payable with respect to the employees.

 

	
  

	
8.8.4.

	
All arrangements providing retirement, death, disability or life assurance benefits within the Company are and have been established, approved (if applicable), registered (if applicable) and qualified (if applicable) in all material aspects in accordance with the laws applicable to these arrangements, and no Tax, penalties or fees other than in the ordinary course of business are owing or payable in respect of any of the arrangements.

 

	
  

	
8.8.5.

	
All the agreements with the individual collaborators and/or partners thereof in the form of management services have been concluded in compliance with Applicable Law.

 

	
  

	
8.8.6.

	
The Company has concluded fixed term agreements with its employees in full observance of the labor law provisions.

 

	
  

	
8.8.7.

	
The labor agreements used by the Company in connection with its employees, irrespective whether such are on fixed or undetermined period of time, are drafted and used in compliance with the labor provisions and they contain all the clauses mandatory to be included therein, including the working schedule of the respective employees.

 

	
  

	
8.8.8.

	
The Company has communicated to the all its employees the internal regulation (and all further amendments related thereto) under the signature of receipt given by the employees. The Company has drafted the internal regulation in consistence with the law provisions in force.

 

  

Page 24 of 48 pages

  

 

	
  

	
8.8.9.

	
To the Sellers’ best knowledge, there are no pending litigations or disputes with the Company of any of the current or former employees and no judge rule or decision has been issued against the Company to oblige the latter to reintegrate the employee/employees and pay the corresponding proceeds related thereto.

 

	
8.9.

	
Compliance with laws, regulations and permits

 

To the Sellers’ best knowledge:

 

	
  

	
8.9.1.

	
The Company has, at all relevant times, conducted and is conducting its business, and is dealing and has dealt with its assets, in all material respects, in accordance with all Applicable Law and best practices in Romania.

 

	
  

	
8.9.2.

	
The Company is not in default of any order, decree or judgment of any court or authority and no sanction has been imposed by any institution of the Romanian State, Governmental Authority or Tax Authority (including the Ministry of Public Finance, etc) or by the institutions of another jurisdiction.

 

	
  

	
8.9.3.

	
Neither the Company nor any person for whose acts or defaults it may be vicariously liable (a) induced a person to enter into an agreement or arrangement with the Company by means of an unlawful or immoral payment, contribution, gift or other inducement; (b) offered or made an unlawful or immoral payment, contribution, gift or other inducement to a government official or employee; or (c) directly or indirectly made an unlawful contribution to a political activity.

 

	
  

	
8.9.4.

	
The Company has all necessary licenses, authorizations, certificates, permits and other evidences of any authority required by Applicable Law to conduct its core telecommunication business which should have been obtained and these are valid and in full force and effect. No such licenses, approvals or authorizations have been revoked, suspended, cancelled, modified, varied, supplemented, restricted or not renewed or are subject to any special condition (in whole or in part); and there are no circumstances which indicate that any such licenses, approvals or authorizations may be revoked, suspended, cancelled, modified, varied, supplemented, restricted or not renewed or made subject to any special condition (in whole or in part).

 

	
  

	
8.9.5.

	
No special condition in relation to any business undertaken by the Company has been imposed by any competent public authority. No direction, order, notice or other communication requiring any action to be taken or matter dealt with by the Company has been received by the Company from or issued in its respect by any competent public authority or body which remains outstanding.

 

	
  

	
8.9.6.

	
Neither the Company nor any Staff, directors, officers, employees, consultants, agents or representatives of the Company have, since incorporation of the Company, been the subject of any censure, warning, prosecution, dispute, disciplinary or enforcement proceedings, investigation, exercise of own-initiative powers or powers of intervention or order of any competent public authority or body, including criminal prosecution, no such action is current, pending or has been threatened by any competent public authority or body and there are no circumstances which indicate that any such action is likely to occur.

 

	
  

	
8.9.7.

	
Until the Closing Date, the Company has promptly filed all statements and applications and effected all registrations required by the relevant regulations to which it is subject and all such statements and reports complied with the regulations applicable thereto. The Company has not been summoned or otherwise become aware of any proceeding for the revocation or suspension of the authorizations, permits or licenses of the Company, nor, to the best of knowledge of the Sellers, has any event happened which could have that effect;

 

  

Page 25 of 48 pages

  

 

	
  

	
8.9.8.

	
Until the Closing Date, there are no proceedings or investigations by any court, prosecuting body or authority relating to (i) any use by the Company or representative/employee of the Company of any corporate or other funds for unlawful payments, (ii) the acceptance or receipt of any unlawful contributions or payments (iii) any breaches of the laws regarding money laundering, fraud, tax evasion.

 

	
8.10.

	
Litigations

 

	
  

	
8.10.1.

	
The Company is not summoned, has not been otherwise informed or become aware or is engaged in any capacity in any litigation, arbitration, prosecution or other legal proceedings or in any proceedings or hearings before any statutory or governmental body, court, department, board, agency or arbitral tribunal, either against a public or a private body or entity which may result in a Material Adverse Effect in relation to the Company. For the avoidance of any doubt, any insolvency/bankruptcy procedures in which the Company is involved, as a creditor, at the Signing Date shall not be considered as having a Material Adverse Effect on the Company.

 

	
  

	
8.10.2.

	
There is no outstanding judgment, order, decree, arbitral award or decision of any court, tribunal, arbitrator or governmental agency against the Company or any person for whose acts the Company could be held liable issued within proceedings the Company has been summoned for or otherwise been informed or become aware of.

 

	
8.11.

	
Insurance

 

	
  

	
8.11.1.

	
The Company and, in connection with its telecommunication business, its Staff hold all insurance policies required by the Applicable Law or any Governmental Authority. The Company is in compliance with all terms and conditions contained in all such insurance policies and nothing has been done or omitted to be done which would make any policy or insurance void or voidable, or which may involve any reduction or mitigation of any insurance proceeds under any policy or insurance. All premiums in relation to the insurance policies have been duly paid when they were due.

 

	
  

	
8.11.2.

	
All of the aforementioned insurance policies are valid for at least 3 (three) months after the Signing Date.

 

	
  

	
8.11.3.

	
The Company does not have any outstanding insurance claims.

 

	
  

	
8.11.4.

	
To the best of Sellers’ knowledge, no insurer has ever cancelled or refused to accept or continue any insurance in relation to the Company.

 

	
  

	
8.11.5.

	
There are no circumstances which are reasonably likely to result in the renewal of any of the material insurance policies being refused or to an increase in premium.

 

	
8.12.

	
Environment

 

	
  

	
8.12.1.

	
The Company holds the requisite authorizations and approvals related to environmental matters provided by the relevant regulations and legal provisions. The Company has complied with the terms and conditions of each environmental permit, authorization and/or approval and all environmental provisions in force. No expenditure or work is or will be necessary to comply with or obtain an environmental permit, authorization and/or approval for duly carrying out the Company’s business activities.

 

  

Page 26 of 48 pages

  

 

	
  

	
8.12.2.

	
The Company is in full compliance with all environmental legal provisions and has no liability (actual or contingent) to re-instate or clean up any land or other asset on or before the Closing Date. No fact or circumstance exists which might give rise to this type of liability.

 

	
  

	
8.12.3.

	
There are no environmental liabilities nor circumstances or grounds which could give rise to a current or future claim for an environmental liability.

 

	
  

	
8.12.4.

	
Neither the Company, nor a person for whose acts or defaults the Company may be liable, is involved or has, during the two years prior to and ending on the date of this Agreement, been involved in an environmental proceeding. No environmental proceeding is pending or threatened by or against the Company or a person for whose acts or defaults the Company may be liable. There is no outstanding notice, judgment, order, decree, arbitration award or decision of a court, tribunal, arbitrator or governmental agency involving the Company or any such person relating to any such matters as are mentioned in this warranty.

 

	
  

	
8.12.5.

	
There is no and has been no environmental investigation concerning the Company and none is pending or threatened.

 

	
8.13.

	
Intellectual Property, Data Protection And Information Technology

 

	
  

	
8.13.1.

	
The Company holds the right, title and unrestricted interest, without any payment obligation or other security interest, in all intellectual property rights which are used or proposed to be used in, or necessary for, its business.

 

	
  

	
8.13.2.

	
The Company has not infringed the intellectual property rights of any Person.

 

	
  

	
8.13.3.

	
The Company is fully compliant with the requirements of the data protection legislation.

 

	
  

	
8.13.4.

	
The information technology owned by the Company or which the Company has the right to use under the terms of an agreement constitutes in all material respects the information technology necessary for the carrying on of its business in the manner and to the extent to which it is conducted as at the Signing Date.

 

	
8.14.

	
Sellers' other covenants

 

	
  

	
8.14.1.

	
Further, the Sellers hereby covenant the Buyer that the Transaction or any stage thereof will not cause any business interruption or dysfunction for the Company.

 

	
9.

	
BUYER’S REPRESENTATIONS AND WARRANTIES

 

	
9.1.

	
The Buyer warrants to the Sellers that:

 

	
  

	
9.1.1.

	
it is a company organised and existing under the laws of the jurisdiction of its incorporation;

 

	
  

	
9.1.2.

	
it has the legal right and full power and authority to enter into and perform its obligations under this Agreement which, when concluded, shall constitute valid, firm and binding obligations of the Buyer, in accordance with its terms;

 

  

Page 27 of 48 pages

  

 

	
  

	
9.1.3.

	
the execution and delivery of and the performance by it of its obligations under this Agreement shall not violate any provision of law, rule or regulation, order, judgment, statute or decree applicable to it, and it does not conflict with any contract, agreement or other arrangement to which any of them is a party or by which it is bound.

 

	
  

	
9.1.4.

	
save for the Board approval of the Buyer, no filing, consent or approval is required for the execution hereof or of any other Transaction document by the Buyer or for the consummation of the Transaction contemplated herein;

 

	
  

	
9.1.5.

	
the Buyer has and shall continue to have all necessary financial resources in order to execute its obligation to pay the Purchase Price (up to the Cap Price, as adjusted, if the case may be), as contemplated herein.

 

	
10.

	
TERMINATION

 

	
10.1.

	
This Agreement may be terminated:

 

	
  

	
10.1.1.

	
by the Buyer, by serving a written notice to the Seller, if the conditions precedent listed in Clause 4.1 hereto which are to be accomplished by the Sellers or other conditions precedent listed in Clause 4.1 hereto are not fulfilled to the satisfaction of the Buyer and the Closing does not occur. Once the termination notice has been served by the Buyer to the Sellers, the Agreement shall be de jure terminated without any other formalities, grace period or intervention of the Court being required for such termination and without payment of any damages and/or expenses between the Parties;

 

	
  

	
10.1.2.

	
by mutual agreement of all Parties in writing;

 

	
  

	
10.1.3.

	
by any non-defaulting Party as provided in Clauses 12.3 – 12.5 hereunder.

 

	
10.2.

	
This Agreement may be terminated by the Sellers (acting jointly) or any of the Sellers, if the conditions precedent contained in Clause 4.1.17 hereof is not fulfilled to the satisfaction of the Sellers and the Closing does not occur due to reasons non-attributable to the Sellers or any of the Sellers. Once the termination notice has been served by the Seller(s), the Agreement shall be de jure terminated without any other formalities, grace period or intervention of the Court being required for such termination and without payment of any damages and/or expenses between the Parties.

 

	
11.

	
NON-COMPETITION & NON-SOLICITATION

 

	
11.1.

	
The Sellers hereby undertake that for the entire period until consummation of the Transaction and commencing with the Third Execution Date and for a period of 1 (one) year thereafter they shall not (either directly or indirectly) compete with the Company or the business of the Buyer on the specific telecommunication market where the acquired Company is active.

 

	
11.2.

	
The Sellers hereby undertake that during a 3 (three) year period from Closing Date they will not, directly or indirectly, for themselves, or through, on behalf of, in conjunction with any person or legal entity, or any of their Affiliates, actively solicit or entice away (or try to solicit or entice away) or encourage a person who is (at the date of this Agreement) a key employee/consultant of the Company necessary for the operation of the business of the Company (as listed in Appendix 10 attached hereto).

 

  

Page 28 of 48 pages

  

 

	
11.3.

	
The Buyer hereby undertakes that, in case the Closing does not occur (for any reason), it will not and it will determine all its shareholders, directors, managers, employees, its advisers, and, in general, any person or entity acting on its behalf, not to solicit or entice away (or try to solicit or entice away) or encourage a person who is (at the date of this Agreement) a key employee/consultant of the Company, to alter in any way or terminate such person’s relationship with the Company unless such potential actions are not based on confidential information transmitted by the Sellers in the context of the Transaction and in relation to such persons. For avoidance of any doubt, the provisions of this Clause 11.3 shall survive the termination of this Agreement (irrespective of the reason for such termination).

 

	
12.

	
CLAIMS AND INDEMNIFICATION

 

	
12.1.

	
Except for those foreseen under Clause 10.1.1, each of the Parties will be fully liable for the performance of the covenants, obligations and/or duties arising under this Agreement, as well as for the representations and warranties given under this Agreement and for the performance of their respective obligations and covenants undertaken hereunder. It is agreed that the indemnification will be determined so that the Aggrieved Party and/or the Company could regain the position it would have enjoyed had the respective warranties been true, accurate and complete or the respective covenants, duties and/or obligations being duly and entirely fulfilled.

 

	
12.2.

	
The Party breaching this Agreement (the “Party in breach”) shall fully indemnify and hold harmless the other Party (the “Aggrieved Party”) in order to cover all claims, losses, liabilities, obligations, damages, costs and expenses, including reasonable court and advisers’ fees (the “Losses”) within the limit of the Purchase Price, in relation to:

 

	
  

	
 (i)

	
any breach or inaccuracy of any representation or warranty undertaken in this Agreement;

 

	
  

	
 (ii)

	
any breach of any covenant or obligation undertaken in this Agreement:

 

For the avoidance of any doubt, the Parties agree, as example, that the following may constitute Losses: (a) for the Sellers: the Buyer’s failure to pay the Price under the conditions of this Agreement; and Losses caused to the Sellers (and/or to the Company before/after Closing Date) in case of failure to observe the representations and warranties or any other obligation or covenant of the Buyer provided in this Agreement; (b) for the Buyer: the Sellers’ failure to transfer the ownership over the Shares as per the conditions of this Agreement, Losses caused to the Buyer (and/or to the Company before/after Closing Date) in case of failure to observe the representations and warranties or any other obligation or covenant provided in this Agreement under Clause 8 hereto;

 

	
12.3.

	
In the event a Party considers that the other Party has breached any of the representations/warranties given or any covenant and/or obligation undertaken in this Agreement, then the Aggrieved Party shall send a request for indemnification in writing to the Party in breach (“Notice of Claim”). The Notice of Claim shall: (a) refer to the respective breach; (b) specify the estimated size of the claim (including the estimated Losses suffered or likely to be suffered by the Aggrieved Party); and (c) provide any available and relevant details in relation to the respective breach. The documentation relating to the claim shall be attached to the Notice of Claim.

 

	
12.4.

	
In the event that any or both of the Sellers are considered to be a Party/Parties in breach and if, within 30 (thirty) Business Days from the date of transmission of a Notice of Claim by the Buyer to the Sellers, the latter have not resolved to the satisfaction of the Buyer the Notice of Claim, then the Buyer will be entitled, without prejudice to any other remedy it may have under this Agreement or law, to set-off the Losses connected to the Notice of Claim from the First Additional Payment and/or from the Second Additional Payment.

 

  

Page 29 of 48 pages

  

 

	
12.5.

	
In the event that, within 30 (thirty) Business Days from the date of transmission/receipt of the Notice of Claim, the Parties have not reached an amicable settlement of the matter, each of the Parties may use any available legal means. It is expressly confirmed by the Parties that in case of urgent actions/matters, legal actions may be taken without any prior lapse /passage of time (including the prior time/formalities required for attempts of amicable settlement).

 

	
12.6.

	
The Parties' right or ability to claim damages, compensation or other relief in respect of any breach under this Agreement shall not be in any way reduced/affected on the grounds that the respective Party may, before Closing Date, have had actual knowledge of the matter giving rise to the claim.

 

	
12.7.

	
The Sellers will be held jointly liable towards the Buyer for any liability, Loss or claim arising hereunder.

 

	
13.

	
FORCE MAJEURE

 

Non-performance of either Party shall be excused to the extent that performance is rendered impossible or delayed by events which, being beyond and outside the control of a Party, are cumulatively: unforeseeable, unavoidable and insurmountable, including, for instance: earthquakes, acts of war, revolution, insurrection, military take-overs, natural disasters, nuclear shock, other acts or events complying with the above-mentioned criteria (the “Force Majeure”), provided that the non-performing party gives prompt notice of such Force Majeure conditions to the other party, and makes all reasonable efforts to perform the Agreement. The non-performing party shall provide the other party within the shortest possible delay with a certificate of Force Majeure or a similar document issued by the relevant authority certifying the occurrence and duration of Force Majeure event.

 

	
14.

	
AMENDMENTS. WHOLE AGREEMENT

 

	
14.1.

	
No amendment or change hereof or addition hereto shall be effective or binding on either Party unless agreed in writing and executed by duly authorized representatives of each Party.

 

	
14.2.

	
This Agreement contains the whole agreement between the Parties relating to the subject matter of this Agreement at the date hereof to the exclusion of any terms, which having been agreed by the Parties beforehand, have been amended through this Agreement.

 

	
15.

	
CONFIDENTIALITY. PUBLIC ANNOUNCEMENTS

 

	
15.1.

	
The Parties undertake to treat as private and confidential this Agreement and all data and information relating thereto and arising therefrom, as well as any documents and information exchanged in the course of their previous negotiations and contacts.

 

	
15.2.

	
All information and documents provided by or on behalf of the Sellers to the Buyer (or its representatives or advisers) or provided by or on behalf of the Buyer to the Sellers (or their representatives and advisers) in relation to the Transaction shall be kept confidential and shall not be directly or indirectly used for any competitive or other commercial purpose or for any purpose whatsoever; nevertheless, the Closing having occurred, the Buyer may use such information for exercising its rights and obligations under this Agreement and its shareholder quality in the Company. The terms of this Agreement and of any related Transaction documents and the negotiations leading to this Agreement shall be kept confidential by the Parties. Each Party will cause its advisers, employees, and representatives having access to such information to keep the confidentiality thereof and to comply with the obligations restricting the use of such information.

 

  

Page 30 of 48 pages

  

 

	
15.3.

	
The obligation of the Parties and their representatives, employees, advisers to keep confidential the above mentioned information shall not apply to any information which:

 

	
  

	
(i)

	
was then generally known to the public;

 

	
  

	
(ii)

	
became known to the public through no fault of the Party who received the information from a third party not bound by an obligation of confidentiality;

 

	
  

	
(iii)

	
represents disclosures in accordance with an order of a court of competent jurisdiction or regulatory authority or in accordance with the applicable laws and regulations or rules of any recognized stock exchange or necessary disclosure to a bank or financial institution, which the Party receiving the information must comply with;

 

	
  

	
(iv)

	
represents disclosure which is made to professional advisers of the Buyer, shareholders of the Buyer or other entities in the Buyer group or the Sellers' on terms that such professional advisers, shareholders or third parties, undertake in writing to comply with the confidentiality provisions set out in this Agreement, in respect of such information, as if they were a party to this Agreement;

 

	
  

	
(v)

	
could be used by the Party receiving it on the basis of the other’s Party prior written approval regarding the disclosure or use of the information;

 

provided that prior to disclosure or use of any information pursuant to this Clause 15.3, the Party concerned shall promptly notify the other Party of such requirement with a view to providing the other Party with the opportunity to contest such disclosure or use or otherwise to agree the timing and content of such disclosure or use.

 

	
15.4.

	
In furtherance of the above-principle, any public statement, press release or announcement issued by one of the Parties regarding the Transaction or any subject matter of this SPA shall require the other Party’s prior consent.

 

	
15.5.

	
Each of the Parties undertakes not to make or publish in verbal, written or any other form, any disparaging remarks or negative comments to any third party regarding or alluding to any of the other Parties or any of their Affiliates and/or representatives.

 

	
15.6.

	
The provisions of this Clause 15 shall survive the termination (irrespective of the cause) of this Agreement.

 

	
16.

	
NOTICES

 

	
16.1.

	
A notice or other communication given under this Agreement shall be made in writing in English and shall be served (only personally or by mail services with confirmation of receipt) by delivering it to the Party due to receive it at the address set out below.

 

	
16.2.

	
A notice so addressed shall be deemed to have been received:

 

	
  

	
  (i)

	
if personally delivered, at the time of delivery, save that if such notice or communication is received after the end of normal working hours (from 9.30 to 17.00, local time), such notice or communication shall be deemed to have been received on the next business day;

 

	
  

	
  (ii)

	
if sent by pre-paid recorded delivery or registered mail, at the date provided in the document evidencing  receipt of correspondence.

 

  

Page 31 of 48 pages

  

 

	
16.3.

	
The Parties’ addresses for the purposes of communications under this Agreement are:

 

	
  

	
  (i)

	
For the Buyer: Hnegev St, POB 1056, Airport City, Israel – Mr. Shmuel Koren

 

	
  

	
  (ii)

	
For the Sellers: 48 Calea Floreasca, 1st District, Bucharest – Mr. Cristinel Popa.

 

	
17.

	
TRANSFER OF RIGHTS AND OBLIGATIONS

 

	
17.1.

	
This Agreement cannot be assigned or otherwise transferred to any third party unless the transferor receives in writing the prior consent of the other Parties to such end.

 

	
17.2.

	
Notwithstanding the above, the Buyer shall have the right to freely transfer and assign the benefit of this Agreement or any part thereof, together with all liabilities, undertakings and obligations attached thereto, to any Affiliate, without any formality to be performed to this effect, other than the signing of an addendum to this Agreement for acknowledging such transfer, whereas the Sellers shall have no right to oppose thereto. In such a case, the Buyer shall continue to remain liable to the Sellers, alongside the transferee (i.e. Affiliate of the Buyer), for all liabilities, undertakings and obligations arisen from this Agreement and so transferred.

 

	
18.

	
COSTS

 

Each Party shall pay its own costs and expenses incurred in connection with entering into this Agreement and the preparation and negotiation of the Transaction documents, including, inter alia, the cost of the consultants, taxes to be paid to the relevant authorities.

 

	
19.

	
GOVERNING LAW. ARBITRATION

 

	
19.1.

	
This Agreement shall be governed by and construed in accordance with the Romanian laws.

 

	
19.2.

	
The Parties shall attempt to resolve amicably and informally any claim or dispute between them relating to this Agreement. Any dispute which cannot be amicably settled within 30 (thirty) days after receipt by the relevant other Party of a Party’s request to do so shall be submitted for settlement by arbitration by the International Court of Arbitration of the Bucharest Chamber of Industry and Commerce, in accordance with its Arbitration Rules as in force, to the extent that such Arbitration Rules in force allow the Parties to freely appoint the arbitrators forming the Arbitration Tribunal, which shall be composed of 3 (three) arbitrators, 1 (one) appointed by each Party and the super arbiter appointed jointly by the Parties (the “Arbitrator’s Free Appointment Rule”). If the Free Arbitrator’s Appointment Rule is met at the time of dispute, the Parties hereby agree upon the following supplementary rules (i) the seat and place of arbitration shall be Bucharest and the English language shall be used throughout the arbitral proceedings; (ii) any arbitration procedure in connection with this Agreement shall always be carried out within the shortest period permitted under the Arbitration Rules in force at the time of the arbitration, without being necessary for the Parties to grant such consent or fulfil any further formalities at the time of the arbitration; (iii) where the rules do not provide for a particular situation, the arbitrators shall in their absolute discretion determine what course of action should be followed and such decision shall be final.

 

  

Page 32 of 48 pages

  

 

	
19.3.

	
By agreeing to arbitration pursuant to this Clause 19, always subject to the fulfilment of the Arbitrator’s Free Appointment Rule, the Parties waive irrevocably their right to any form of appeal, review or recourse to any state court or other judicial authority, in so far as such waiver may be validly made and also, recognize that the arbitrators’ award shall be final and binding on the Parties to the dispute.

 

	
19.4.

	
If the Arbitration Rules in force at the time of the dispute do not allow the observance of the Arbitrator’s Free Appointment Rule, the dispute shall be resolved through ad-hoc arbitration, with the observance of the supplementary rules set forth by Clause 19.2. above. The arbitrators’ award shall be final and binding on the Parties to the dispute. Nevertheless, if the ad-hoc arbitration cannot be commenced within 60 (sixty) days after receipt by the relevant other Party of a Party’s request to amicable settle the respective dispute, the ordinary courts of law situated in Romania shall be competent to resolve the dispute.

 

	
20.

	
WAIVERS

 

	
20.1.

	
Any waiver of any right under this Agreement is only effective if it is in writing and it applies only to the Party to whom the waiver is addressed and to the circumstances for which it is given and shall not prevent the Party who has given the waiver from subsequently relying on the provision it has waived.

 

	
20.2.

	
A Party that waives a right in relation to one Party, or takes or fails to take any action against that Party shall not have its rights affected in relation to any other Party.

 

	
20.3.

	
No failure to exercise or delay in exercising any right or remedy provided under this Agreement or by law constitutes a waiver of such right or remedy or shall prevent any future exercise in whole or in part thereof. No single or partial exercise of any right or remedy under this Agreement shall preclude or restrict the further exercise of any such right or remedy.

 

	
20.4.

	
Unless specifically provided otherwise, rights and/or remedies arising under this Agreement are cumulative and do not exclude rights and/or remedies provided by law.

 

	
21.

	
SPECIFIC UNDERTAKINGS

 

Each Party shall immediately notify the other Party of any change in its address or other details specified in Clause 16. Such notification shall only be effective on the date specified in such notice or in 5 (five) business days after the notice is given, whichever is later. If a Party does not notify the other of any such changes, notices or other communications directed to the address in Clause 16 shall be deemed valid.

 

	
22.

	
SEVERABILITY

 

In the event that any of the provisions of this Agreement is or becomes thereafter illegal, invalid or unenforceable under the applicable law, the legality, validity and enforceability of the other provisions of this Agreement shall not be affected or prejudiced by it. The Parties will discuss in good faith in order to replace the illegal, invalid or unenforceable provision with a legal, valid and enforceable provision which fulfils, to the extent possible, the initial commercial purpose of the invalid provision.

 

  

Page 33 of 48 pages

  

 

	
23.

	
ENTIRE AGREEMENT

 

This Agreement and its Appendices hereto contains the entire agreement and understanding of the Parties and supersedes any prior agreement or understanding regarding the subject matter contained herein, including the Memorandum of Agreement dated March 10, 2015. No Party hereto shall be entitled to rely on any prior agreement, understanding or arrangement which is not expressly set forth in this Agreement.

 

	
24.

	
RELATIONSHIP OF THE PARTIES

 

Except as expressly provided otherwise in this Agreement, nothing herein shall authorize a Party to act for, represent or bind any other Party by entering into any contract or assuming any obligations or making any warranty or representation on behalf of the other Parties or in any other way.

 

	
25.

	
HARDSHIP

 

Each Party hereby declares it understands and assumes the risk of the occurrence of a change (irrespective of the nature or importance of such changes) in the circumstances that led to the respective Party’s intention to enter into and/or execute this Agreement. The Parties therefore waive any right they may have, under the Applicable Law, to invoke such a change in circumstances in order to delay or cancel, in whole or in part, the execution of any or all obligations and liabilities under this Agreement.

 

	
26.

	
COUNSELING

 

Each Party hereby declares that, in drafting and negotiating of this Agreement, it had due and proper legal and technical counseling and was assisted by such. The Parties therefore declare that they fully understand each and every provision of this Agreement and they enter into this Agreement wanting to benefit from each right and assume each obligation contemplated hereunder.

 

IN WITNESS WHEREOF, this Agreement has been signed today, April 7, 2015, in 2 in (two) copies, one copy for each of the Parties (one for each Seller, one for the Buyer), in English language.

 

LIST OF APPENDICES (any annexes, appendices, schedules or attachments hereto are an integral part of this Agreement)

 

	
Appendix 1   - First Additional Payment

 

	
Appendix 2 - Second Additional Payment

 

	
Appendix 3 - Intelsat debt

 

	
Appendix 4 - Company’s financial statements

 

Appendix 5 – Short Form SPA

 

Appendix 6 - Closing Certificate

 

Appendix 7 - GMS approving the transfer of shares and Updated Constitutive Act

 

  

Page 34 of 48 pages

  

 

Appendix 8 – Management Agreement of Mr. Cristinel Popa

 

Appendix 9 – List of commercial contracts

 

Appendix 10 – List of relevant personnel

 

Appendix 11 - The balance sheet and the financial status of the Company as of 31st March 2015

 

Appendix 12 - Escrow Agreement

 

SIGNATURES:

 

BUYER

 

For and on behalf of RR Media Ltd.

 

Shmuel Koren CFO

 

________________

 

Avi Cohen CEO signed on ___________ in ____________

 

________________

 

SELLERS

 

Mr. Popa Cristinel Pompiliu

 

________________________

 

Mrs. Popa Mihaela Tatiana

 

________________________

 

  

Page 35 of 48 pages

  

 

	
Appendix 1   - First Additional Payment

 

	
Additional Period:

	
Four fiscal quarters commencing on the first date a fiscal quarter starts after the Closing Date (the “First Additional Period”).

 

	
Minimum Contribution:

	
$2.0 million

 

	
First Additional Payment:

	
$1.375 (one point three hundred and seventy-five USD) for each Contribution dollar generated in the First Additional Period in excess of $2.0 million (up to a cap of $2.4 million). Therefore, for avoidance of any doubt, the first Additional Payment may amount up to a maximum of $ 550,000 (five hundred fifty thousand USD) and minimum to “0” (zero).

 

	
Contribution:

	
means (a) the consolidated revenue of the Company generated during the First Additional Period from Company contracts and commitments in effect as of the Closing Date less (b) all satellite and fiber capacity costs, connected directly to the contracts specified in (a). For the avoidance of doubt, Contribution shall not include any revenue generated from any contracts concluded with New Customers (as defined below) originated after the Closing Date or from any contracts of RR Media and/or its Affiliates which were transferred and/or assigned to the Company by RR Media and/or its Affiliates. For avoidance of any doubt:

 

	
  

	
(i)

	
“New Customers” shall mean customers of the Company entering into a business relationship with the Company on or after the Closing Date exclusively as a result of RR Media’s undertakings and shall not include customers that renew or extend – be it in respect of duration their existing contracts or customers that enter into a business relationship with the Company as a result of any the Sellers’ undertakings; and

 

	
  

	
(ii)

	
subject to the Due Diligence, RR Media shall not, during the First Additional Period, terminate, other than for material breach (including nonpayment) or cause the termination of any contracts and/or commitments of the Company in effect as of the Closing Date or, if such termination occurs as per the initiative of RR Media or the Company as directed by RR Media, then such contracts and/or commitments shall, for the purposes of calculation of the Contribution, be considered to have been executed in full and to term and all benefits of the Company derived or that would have been derived from such contracts and/or commitments, shall be considered to be gained by the Company.

 

	
Payment Date:

	
Subject to achievement of the Minimum Contribution during the First Additional Period, the First Additional Payment shall be paid in cash within ten (10) business days following the public release of RR Media’s financial results for the last fiscal quarter of the First Additional Period.

  

Page 36 of 48 pages

  

 

	
Appendix 2 - Second Additional Payment

 

	
Additional  Period:

	
Four fiscal quarters commencing immediately following the end of the First Additional  Period (the “Second Additional  Period”).

 

	
Minimum Contribution:

	
$2.0 million

 

	
Second  Additional  

Payment:

	
$1.375 (one point three hundred and seventy-five USD) for each Contribution dollar generated in the Second Additional Period in excess of $2.0 million (up to a cap of $2.4 million). Therefore, for avoidance of any doubt, the first Additional Payment may amount up to a maximum of $ 550,000 (five hundred fifty thousand USD) and minimum to “0” (zero).

	
Contribution:

	
means (a) the consolidated revenue of the Company generated during the Second Additional Period from Company contracts and commitments in effect as of the Closing Date less (b) all satellite and fiber capacity costs connected directly to the contracts specified in (a),. For the avoidance of doubt, Contribution shall not include any revenue generated from any contracts concluded with concluded with New Customers (as defined above) originated after the Closing Date or from any contracts of RR Media and/or its Affiliates which were transferred and/or assigned to the Company by RR Media and/or its Affiliates. For avoidance of any doubt and subject to the Due Diligence, RR Media shall not, during the Second Additional Period, terminate, other than for material breach (including nonpayment obligation) or cause the termination of any contracts and/or commitments of the Company in effect as of the Closing Date or, if such termination occurs as per the initiative of RR Media or the Company as directed by RR Media, then such contracts and/or commitments shall, for the purposes of calculation of the Contribution, be considered to have been executed in full and to term and all benefits of the Company derived or that would have been derived from such contracts and/or commitments, shall be considered to be gained by the Company.

 

	
Payment Date:

	
Subject to achievement of the Minimum Contribution during the Second Additional Period, the Second Additional Payment shall be paid in cash within ten (10) business days following the public release of RR Media’s financial results for the last fiscal quarter of the Second Additional Period.

  

Page 37 of 48 pages

  

	
Appendix 3 - Intelsat Debt

 

  

Page 38 of 48 pages

  

 

	
Appendix 4 - Company’s financial statements

 

	
To be provided and appended at Closing Date to the Closing Certificate

 

  

Page 39 of 48 pages

  

 

	
Appendix 5 – Short Form SPA

 

	
(to be adapted accordingly, in each case, in respect of the transfer of the Initial Shares and the Subsequent and Final Shares)

 

	
Shares Sale Purchase Agreement

 

	
This Shares Sale Purchase Agreement ("Agreement") has been concluded today, [•], by and between:

	  
	
RR Media Ltd a company incorporated and existing under the laws of Israel, with its registered headquarters at Hnegev St, POB 1056, Airport City, Israel, identified by company number 51-089629-3 ("RR Media"), duly represented by Shmuel Koren and Avi Cohen, acting in his capacity of Chief Executive Officer (hereinafter referred to as the "Buyer")

	
And

	
 

Mr. Popa Cristinel Pompiliu, Romanian citizen, born on [•] in [•], identified with identity card series [•], no. [•], issued by [•] and valid until [•], domiciled at [•], personal identification number (in Romanian CNP) [•] (hereinafter referred to as "Seller 1")

 

or, alternatively (as the case may be)

 

Mrs. Popa Mihaela Tatiana, Romanian citizen, born on [•] in [•], identified with identity card series [•], no. [•], issued by [•] and valid until [•], domiciled at [•], personal identification number (in Romanian CNP) [•], (hereinafter referred to as "Seller 2")

 

	
The Buyer and Seller 1/Seller 2 are hereinafter collectively referred to as “Parties”.

 

	
(1)              Seller 1/Seller 2 hereby sells, and the Buyer hereby purchases from the Seller 1/Seller 2 the full ownership right, free of any encumbrances or liens, over an aggregate number of [•] ([•]) shares, having each a nominal value of RON [•] ([•]), and a total value of RON [•] ([•]), representing 80% of (the “Shares”)/ a number of [•] ([•]) shares, having each a nominal value of RON [•] ([•]), and a total value of RON [•] ([•]), representing 10% of with a nominal value of RON [•] each, which represent 80%/10% (the “Shares”) of the share capital of EASTERN SPACE SYSTEMS SA., a joint stock company company organized and functioning in accordance with the laws of Romania, registered with the Trade Registry under no. J40/1783/1997, sole registration code 9482094, with headquarters in Bucureşti, 4th District, No. 35 - 37 OLTENITEI Street, 10th floor, (hereinafter referred to as the “Company”).

 

	
(2)             The total gross purchase price for the transfer of Shares from Seller to Buyer is of USD [•] meaning the equivalent of RON at the date of payment considering the official exchange rate published by National Bank of Romania for the payment day.

 

	
(3)             The transfer of title for the full and beneficial ownership of the Shares from the Seller 1/Seller 2 to the Buyer takes place today, [•] the signing date hereof.

 

	
(4)             This Agreement does not in any way cancel, interfere, amend or prevent any agreements between the Parties and in connection with the Shares’ transfer.

 

	
This Shares Sale Purchase Agreement was concluded in Romanian and English language on the date hereinabove stated, in 3 (three) originals, one for each party and one for submission to the Trade Registry. In case of discrepancies between the English and Romanian version hereof, the English version hereof will prevail.

 

SIGNATURES:

 

BUYER

 

For and on behalf of RR Media Ltd.

 

[•]________________

 

SELLER 1/ SELLER 2

 

Mr. Popa Cristinel Pompiliu/Mrs. Popa Mihaela Tatiana

_______________________

 

  

Page 40 of 48 pages

  

 

	
Appendix 6 - Closing Certificate

 

Closing Certificate

Concluded on this day of [•], by and between:

 

	
(1)

	
RR Media Ltd a company incorporated and existing under the laws of Israel, with its registered headquarters at Hnegev St, POB 1056, Airport City, Israel, identified by company number 51-089629-3 ("RR Media"), duly represented by Avi Cohen [TO BE CONFIRMED], acting in his capacity of Chief Executive Officer,

 

hereinafter referred to as the "Buyer", on one hand,

 

	
  

	
and

 

	
(2)

	
Mr. Popa Cristinel Pompiliu, Romanian citizen, born on [•] in [•], identified with identity card series [•], no. [•], issued by [•] and valid until [•], domiciled at [•], personal identification number (in Romanian CNP) [•] and

 

	
(3)

	
Mrs. Popa Mihaela Tatiana, Romanian citizen, born on [•] in [•], identified with identity card series [•], no. [•], issued by [•] and valid until [•], domiciled at [•], personal identification number (in Romanian CNP) [•],

 

hereinafter individually referred to as "Seller 1" in case of Mr. Popa Cristinel Pompiliu and "Seller 2" in case of Mrs. Popa Mihaela Tatiana and collectively referred to as the "Sellers" and, on the other hand,

 

The Sellers and the Buyer being each referred to as a "Party" and collectively referred to as the “Parties”,

 

The Parties have met today, this day of [•] at the headquarters of EASTERN SPACE SYSTEMS SA other location, a joint stock company setup and functioning in accordance with the laws of Romania, registered with the Trade Registry under no. J40/1783/1997, sole registration code 9482094, with headquarters in Bucureşti, 4th District, No. 35 - 37 OLTENITEI Street, 10th floor, Bucharest, with a view to conclude this Closing Certificate pursuant to Clause 4 of the Share Sale-Purchase Agreement entered into between the Parties (the “Agreement”).

 

Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement.

 

	
(1)

	
The Parties acknowledge that on the date hereof, all the activities and all actions set forth under Clause 4.1 of the Agreement, have been duly fulfilled and all agreements, documents and instruments have been duly executed, delivered or exchanged between Parties, being effective simultaneously, therefore the transfer of the ownership right over the Initial Shares has duly occurred in accordance with Clause 2.2 of the Agreement.

 

	
(2)

	
Without prejudice to the provisions of the Agreement, the Sellers hereby certify that the Seller's Representations and Warranties made pursuant to the Agreement are true, accurate, complete and not misleading upon the Closing Date, as foreseen in the Agreement.

 

  

Page 41 of 48 pages

  

 

	
(3)

	
Without prejudice to the provisions of the Agreement, the Buyer hereby certifies that the Buyer's Representations and Warranties made pursuant to the Agreement are true, accurate, complete and not misleading upon the Closing Date.

 

	
(4)

	
According to Clause 3.1.1.1, 3.1.1.2, 3.8 and 4.3.2 of the Agreement, the Buyer shall transfer pro rata the amount of USD [•] million ([•] USD), less the Tax on Capital Gains related thereto which is withheld and paid by the Buyer (on behalf) the Sellers in exchange for the ownership title over the Initial Shares. The Parties agree that the Tax on Capital Gains has been computed by the Buyer by taking into account the National Bank of Romania official exchange rate of RON/USD at the date when the amount of USD [•] ([•]) less the Tax on Capital Gains related thereto is wired by the Buyer in the account of the Seller 1 respectively Seller 2.

 

	
(5)

	
The Parties agree that Closing shall be deemed to have occurred on this day of [•] (the “Closing Date”).

 

IN WITNESS WHEREOF, this Closing Certificate has been executed in 2 (two) originals in Romanian and English language with legal and binding effect on the date first written above. In case of discrepancies between the English and Romanian version hereof, the English version hereof will prevail.

 

	
Sellers

	
Buyer

	
Mr. Popa Cristinel Pompiliu

 

Mrs. Popa Mihaela Tatiana

 

	
 

 

_____________________

RR Media by [•]

 

  

Page 42 of 48 pages

  

 

	
Appendix 7 - GMS approving the transfer of shares and Updated Constitutive Act

 

  

Page 43 of 48 pages

  

	
Appendix 8 - Management Agreement of Mr. Cristinel Popa

 

  

Page 44 of 48 pages

  

	
Appendix 9 – List of commercial contracts

 

	
To be provided and appended at Closing Date to the Closing Certificate

 

  

Page 45 of 48 pages

  

 

	
Appendix 10 – List of relevant personnel

 

	
To be provided and appended at Closing Date to the Closing Certificate

 

  

Page 46 of 48 pages

  

 

	
Appendix 11

 

	
The balance sheet and the financial status of the Company as of 31st March 2015

 

	
To be provided and appended at Closing Date to the Closing Certificate

 

  

Page 47 of 48 pages

  

 

	
Appendix 12

 

	
Escrow Agreement

 

	
To be provided and appended at Closing Date to the Closing Certificate

 

Page 48 of 48 pages

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]