Document:

<PAGE>
                                                                   EXHIBIT 10.10
                               DATED 5th May 2004

                            PRINTS (UK) QRS 16-1 INC

                                       to

                             POLESTAR PETTY LIMITED

                                      and

                         POLESTAR PETTY BINDERY LIMITED
                     POLESTAR MAGAZINES & CATALOGUES LIMITED
                          WATMOUGHS (HOLDINGS) LIMITED
                             POLESTAR GROUP LIMITED

             -------------------------------------------------------
                                      LEASE
                                       of

              Premises at Whitehall Road and Coleman Street, Leeds

             -------------------------------------------------------

                                Nabarro Nathanson
                                   Lacon House
                                84 Theobalds Road
                                 London WCIX 8RW

<PAGE>

<TABLE>
<CAPTION>
                                    CONTENTS

CLAUSE         SUBJECT MATTER                                                                          PAGE
<S>                                                                                                    <C>
LAND AT WHITEHALL ROAD AND COLEMAN STREET, LEEDS .................................................       1
1.    DEFINITIONS ................................................................................       1
2.    INTERPRETATION .............................................................................       9
3.    DEMISE......................................................................................      10
4.    INSURANCE BY THE LANDLORD ..................................................................      11
5.    INSURANCE BY THE TENANT.....................................................................      14
6.    TENANT'S OBLIGATIONS........................................................................      19
      Rents.......................................................................................      19
      Repair......................................................................................      19
      Decoration .................................................................................      19
      Alterations and additions...................................................................      20
      Signs and reletting notices ................................................................      21
      User........................................................................................      21
      Alienation..................................................................................      22
      Assignment .................................................................................      23
      Underletting ...............................................................................      24
      Entry ......................................................................................      25
      Planning Acts and Acts generally............................................................      26
      The Construction (Design and Management) Regulations 1994...................................      27
      Outgoings, costs and fees...................................................................      28
      VAT.........................................................................................      29
      Output tax..................................................................................      29
      Input tax...................................................................................      29
      General requirements concerning use ........................................................      29
      Surety......................................................................................      30
      Superior interests..........................................................................      30
      Development.................................................................................      31
      Indemnity...................................................................................      31
      Covenants in freehold title.................................................................      31
      Corporate and Financial Covenants...........................................................      31
      Registration at HM Land Registry............................................................      31
      Environmental requirements..................................................................      32
      Not to overload ............................................................................      33
      Machinery ..................................................................................      33
      Support ............................................ .......................................      33
      Capital Allowances/Industrial Building Allowances...........................................      33
7.    LANDLORD'S OBLIGATIONS .....................................................................      33
8.    GENERAL PROVISIONS..........................................................................      33
      Re-entry....................................................................................      33
      Service of notices..........................................................................      35
      Adjoining land..............................................................................      36
      No liability in damages.....................................................................      36
      Failure to perform obligations..............................................................      36
      Statutory compensation......................................................................      36
      Rights easements etc. ......................................................................      36
      Waiver of right to forfeit..................................................................      37
      No warranty as to planning .................................................................      37
</TABLE>

                                        i
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<TABLE>
<S>                                                                                                     <C>
      Tenant's goods left in Premises.............................................................      37
      Covenants relating to adjoining premises....................................................      37
      Entire understanding .......................................................................      37
      Landlord and Tenant (Covenants) Act 1995....................................................      37
      Severance...................................................................................      38
      Governing law and jurisdiction .............................................................      38
      Requests for information....................................................................      38
      Non-recourse................................................................................      38
9.    SURETY COVENANTS............................................................................      39
10.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999................................................      39
11.   LAND REGISTRATION ACT 2002..................................................................      39
12.   CERTIFICATE.................................................................................      39
      FIRST SCHEDULE Premises.....................................................................      40
      SECOND SCHEDULE Rights and Easements excepted...............................................      41
      THIRD SCHEDULE Provisions for rent review...................................................      42
      FOURTH SCHEDULE Form of Surety covenant.....................................................      44
      FIFTH SCHEDULE Matters to which the demise is subject.......................................      48
      SIXTH SCHEDULE PART 1 Landlord's Fixtures and Fittings, Plant and Machinery.................      49
      SIXTH SCHEDULE PART 2 Tenant's Fixtures and Fittings, Plant and Machinery...................      51
4.    POLESTAR GROUP FINANCIAL COVENANTS..........................................................      56
      EIGHTH SCHEDULE Authorised Guarantee Agreement..............................................      58
1.    DEFINITIONS.................................................................................      58
7.    INTERPRETATION..............................................................................      59
8.    GUARANTEE ..................................................................................      60
9.    PRINCIPAL DEBTOR ...........................................................................      60
10.   TENANT AND GUARANTOR TO TAKE A NEW LEASE....................................................      60
11.   SUPPLEMENTARY PROVISIONS....................................................................      61
12.   SCOPE OF THIS DEED..........................................................................      64
      NINTH SCHEDULE Form of Rent Deposit Deed....................................................      63
2.    DEFINITIONS AND INTERPRETATION..............................................................      64
3.    SUPPLEMENTAL DEED...........................................................................      66
4.    DEPOSIT.....................................................................................      66
5.    WITHDRAWALS.................................................................................      66
6.    INTEREST....................................................................................      66
7.    TRANSFER OF REVERSION.......................................................................      67
8.    RELEASE OF RENT DEPOSIT.....................................................................      67
9.    CHARGE......................................................................................      67
10.   GENERAL PROVISIONS..........................................................................      67
11.   GUARANTOR...................................................................................      68
12.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999................................................      68
13.   EXECUTION...................................................................................      68
PURSUANT TO A POWER OF ATTORNEY DATED)............................................................      69
NAME  ............................................................................................      69
      Form of Deed of Substitution of Surety......................................................      71
14.   RELEASE BY THE LANDLORD.....................................................................      73
13.   ACCEPTANCE OF LIABILITY BY THE NEW SURETY COMPANY...........................................      73
14.   ACCEPTANCE BY THE LANDLORD..................................................................      73
15.   LEASE IN FORCE..............................................................................      73
</TABLE>

                                       ii
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<TABLE>
<S>                                                                                                     <C>
16.  CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999..................................................     73
PURSUANT TO A POWER OF ATTORNEY DATED )............................................................     74
NAME  ................... . .......................... ............................................     74
</TABLE>

                                       iii

<PAGE>
                                   PARTICULARS

   LANDLORD AND TENANT                        New Tenancy.
   (COVENANTS) ACT 1995

1. DATE OF THIS DEED                          5th May 2004

2. LEASE OR UNDERLEASE                        Lease

3. LANDLORD                                   PRINTS (UK)
                                              QRS 16-1 INC c/o
                                              Colliers CRE Aquis House,
                                              12 Greek Street,
                                              Leeds LS1 5RV
                                              (attention: Charlotte Hicks)
   Company Registration Number

4. TENANT                                     POLESTAR PETTY LIMITED whose
                                              registered office is at
                                              Marlborough Court,
                                              Sunrise Parkway,
                                              Linford Wood, Milton
                                              Keynes Buckinghamshire
                                              MK14 6DY

   Company Registration Number                2317911

5. SURETY                                     POLESTAR PETTY BINDERY LIMITED,
                                              POLESTAR MAGAZINES & CATALOGUES
                                              LIMITED, WATMOUGHS (HOLDINGS)
                                              LIMITED and POLESTAR GROUP LIMITED
                                              whose registered office is at
                                              Marlborough Court, Sunrise
                                              Parkway, Linford Wood, Milton
                                              Keynes Buckinghamshire MK14 6DY

   Company Registration Numbers               2647729, 2349434, 49840 and
                                              3489002 respectively.

6. PREMISES as shown edged red on the         Land at Whitehall Road and
   Plan described in the First schedule       Coleman Street, Leeds.

7. DATE OF COMMENCEMENT OF TERM               The date hereof.

8. TERM                                       From and including the date of
                                              this Lease until and including
                                              4th May 2029.

9. EXPIRY DATE OF TERM                        4th May 2029.

10.RENT as it may be reviewed under the       One million one hundred and
   Third schedule                             seventy nine thousand four
                                              hundred and ninety six pounds
                                              ((pound)1,179,496).

                                        1

<PAGE>

11. RENT COMMENCEMENT DATE                    The date hereof.

12. ANCILLARY RENT                            The date hereof.
    COMMENCEMENT DATE

13. RENT REVIEW DATE(S)                       As set out in the Third Schedule.

14. INTEREST RATE                             Four per cent above Lloyds Bank
                                              from Plc's base rate time to time.

15. FIRST REDECORATING YEAR                   The year commencing on the third
                                              anniversary of date hereof.

16. PERMITTED USER                            Any use falling within Use Classes
                                              Bl, B2 and B8 of the Town and
                                              Country Planning (Use Classes)
                                              Order 1987.

                                        2

<PAGE>

                                      LEASE

                                 LAND REGISTRY

                        LAND REGISTRATION ACTS 1925-2002

County and District               :

Title Number                      :

Property                          :   Land at Whitehall Road and Coleman Street,
                                      Leeds.

DATE                                  5th May 2004

PARTIES

(1)   The Landlord specified in the Particulars (the "LANDLORD");

(2)   The Tenant specified in the Particulars (the "TENANT"); and

(3)   The Surety specified in the Particulars (the "SURETY").

IT IS AGREED AS FOLLOWS:

1.    DEFINITIONS

      In this Lease the following expressions have the following meanings:

      "ACT"

                  means every Act of Parliament (whether or not specifically
                  named in this Lease) which may be relevant to the Premises its
                  user or anything on the Premises the persons employed or
                  having recourse to the Premises whether or not in force at the
                  date of this Lease and includes any statutory re-enactment or
                  modification of such Acts of Parliament and any order
                  regulation directive bye-law rule consent or licence granted
                  or required under such Acts of Parliament or by any public or
                  local authority or by any court of competent jurisdiction save
                  that all references to the Town and Country Planning (Use
                  Classes) Order 1987 means such order as in force at the date
                  of this Lease;

                                        1

<PAGE>

      "ACT OF TERRORISM"

                  means an act designed to influence the government or
                  intimidate the public or a section of the public and which is
                  made for the purpose of advancing a political, religious or
                  ideological cause;

      "ASSETS"

                  of any Person means all or any part of its business,
                  undertaking, property, assets, revenues (including any right
                  to receive revenues) and uncalled capital, wherever situated;

      "COMPETENT AUTHORITY"

                  means any national or local governmental agency, body or other
                  entity having enforcement or regulatory powers under
                  Environmental Law;

      "CONDUIT"

                  means any conducting medium or other thing within the Premises
                  and/or any adjoining or neighbouring premises serving the
                  Premises and by means of which any facility service or matter
                  may pass;

      "CONTROL"

                  means in relation to a company the ability or right to
                  exercise, or the right to acquire, direct or indirect control
                  over a company's affairs, through the possession of or right
                  to acquire a majority of the voting rights in that company or
                  the right to appoint or remove a majority of its board
                  directors or, in the case of a company whose shares are
                  publicly traded on any investment exchange, the acquisition by
                  a third party, acting alone or in concert, of 30 per cent of
                  more of the voting rights in that company or any action which
                  has similar effect operating by merger or sale of assets;

      "DANGEROUS SUBSTANCES"

                  means any substance (whether in the form of a solid liquid gas
                  or vapour) the generation, keeping, transportation, storage,
                  treatment, use or disposal of which gives rise to a risk of
                  causing harm to man or to any other living organism or causing
                  damage to the Environment and includes (but without
                  limitation) any controlled special, hazardous, toxic,
                  radioactive or dangerous waste;

      "DEBT TEST"

                  means the Financial Indebtedness of the Tenant during the 12
                  month period expiring on the Test Date is no more than two
                  times the Ebitda of the Tenant during such 12 month period.

      "EBITDA"

                  means profit on ordinary activities before exceptional items
                  interest and taxation adjusted for the adding back of any
                  depreciation or amortisation according to the

                                        2

<PAGE>

                  annual audited accounts supplied in accordance with paragraph
                  2.3 of the Seventh Schedule;

      "EBITDA TEST"

                  means that the Landlord is satisfied on each Test Date that
                  the Tenant has an Ebitda during the 12 month period expiring
                  on the Test Date of at least two times the aggregate of the
                  Rents reserved and payable under this Lease together with all
                  rents payable on all other premises held by the Tenant in
                  respect of the 12 month period which commences on the Test
                  Date;

      "ENVIRONMENT"

                  means the environment as defined in section 1(2) of the
                  Environmental Protection Act 1990;

      "ENVIRONMENTAL LAW"

                  means any and all laws or regulations existing, adopted, made,
                  commenced, introduced or otherwise brought into force prior to
                  or after the date of this Lease including, without limitation
                  all European Community regulations, directives and decisions,
                  statutes and subordinate legislation, regulations, orders,
                  ordinances, codes of practice, circulars, guidance notes and
                  the like in so far as they have the force of law, common law,
                  administrative, civil, criminal and local laws and byelaws,
                  judgments, notices, orders, directions, instructions or awards
                  of any Competent Authority and which have as purpose or effect
                  the protection of the Environment and/or the prevention of
                  harm or damage to the Environment, to human health or to the
                  health of any other living organism or to property and laws or
                  from Dangerous Substances and regulations governing the
                  management and control of asbestos containing materials in the
                  workplace;

      "ENVIRONMENTAL PERMITS"

                  means any and all consents, permits or authorisations required
                  under Environmental Law in connection with the Tenant's use
                  and occupation of the Premises;

      "FINANCIAL COVENANT TESTS"

                  means that the Landlord is satisfied on each Test Date that
                  the Tenant has satisfied the Ebitda Test, the Debt Test and
                  the Minimum Tangible Worth Test;

      "FINANCIAL INDEBTEDNESS"

                  means any indebtedness for or in respect of:

            (a)   moneys borrowed;

            (b)   any amount raised by acceptance under any acceptance credit
                  facility;

            (c)   any amount raised pursuant to any note purchase facility or
                  the issue of bonds, notes, debentures, loan stock or any
                  similar instrument;

                                                3

<PAGE>

            (d)   the amount of any liability in respect of any lease or hire
                  purchase contract other than that to the Tenant for use in the
                  Tenant's business which would, in accordance with generally
                  accepted accounting procedures, standards and practices in the
                  United Kingdom consistently applied to be treated as a finance
                  or capital lease;

            (e)   receivables sold or discounted (other than any receivables to
                  the extent they are sold on a non-recourse basis);

            (f)   any amount raised under any other transaction (including any
                  forward sale or purchase agreement) having the commercial
                  effect of a borrowing;

            (g)   any derivative transaction entered into in connection with
                  protection against or benefit from fluctuation in any rate or
                  price (and, when calculating the value of any derivative
                  transaction, only the mark to market value shall be taken into
                  account);

            (h)   any counter-indemnity obligation in respect of a guarantee,
                  indemnity, bond, standby or documentary letter of credit or
                  any other instrument issued by a bank or financial
                  institution; and

            (i)   the amount of any liability in respect of any guarantee or
                  indemnity for any of the items referred to in paragraphs (1)
                  to (h) of this definition;

      "HAZARDOUS SUBSTANCES"

                  means any substance (whether in the form of a solid, liquid,
                  gas or vapour) the generation, keeping, transportation,
                  storage, treatment, use or disposal of which gives rise to a
                  risk of causing harm to human health or to the health of any
                  other living organism or causing harm to the Environment or
                  damage to property including (without limitation) any
                  electricity, heat, vibration, noise or other radiation and all
                  waste;

      "HOLDING COMPANY"

                  has the meaning given to it in sections 736 and 736A of the
                  Companies Act 1985 (as amended);

      "INSURANCE ELECTION NOTICE"

                  means a written notice of at least one months duration from
                  the Landlord to the Tenant electing that upon expiration of
                  such notice, the Tenant shall insure the Premises in
                  accordance with clause 5;

      "INSURANCE RENT"

                  means all sums payable by the Tenant pursuant to clause 4.2;

      "INSURED RISKS"

                  means the risks insured against under clause 4.1;

      "INTEREST"

                  means interest at the Interest Rate payable from the date of
                  demand by the Landlord (or if earlier the date at which monies
                  become due or at which the Landlord expends monies in respect
                  of which interest is required under this Lease)

                                                4

<PAGE>

                  until the date of payment to the Landlord compounded with
                  quarterly rests on the usual quarter days;

      "INVESTMENT GRADE"

                  means, in relation to a company, that it has a publicly traded
                  unsecured senior debt rating of BBBI or better from S&P or Baa
                  or better from Moody's, or in the event of both of such rating
                  agencies ceasing to furnish such ratings, a comparable rating
                  by any rating agency reasonably acceptable to the Landlord;

      "LANDLORD"

                  includes the person entitled for the time being to the
                  reversion to this Lease;

      "LANDLORD'S FIXTURES AND FITTINGS"

                  means all those fixtures and fittings including without
                  limitation those referred to in Part 1 of the Sixth Schedule.

      "THIS LEASE"

                  means the Lease granted by this Deed and includes any
                  Supplemental Document;

      "MINIMUM TANGIBLE WORTH"

                  means the minimum tangible worth of a company based on share
                  capital plus reserves less intangibles, as independently
                  verified and signed off by a nationally recognised firm of
                  independent suitably professionally qualified accountants;

      "MINIMUM TANGIBLE WORTH TEST"

                  means that the Landlord is satisfied that the Tenant has a
                  Minimum Tangible Worth at all times of not less than Ten
                  Million Pounds ((pound)10,000,000);

      "MOODY'S"

                  means Moody's Investor Services, Inc;

      "MORTGAGEE"

                  means the mortgagee or chargee of the Landlord;

      "NET WORTH TEST"

                  means that the Landlord is satisfied that any proposed
                  assignees of the Lease has a Minimum Tangible Worth of at
                  least ten times the Rent then reserved and payable under this
                  Lease at the time of any proposed assignment as shown by
                  audited accounts of such proposed assignee for the accounting
                  period (not to be shorter than one year) immediately preceding
                  the date of the application to the Landlord for any proposed
                  assignment;

                                               5

<PAGE>

      "NEW CONTROLLER"

                  means any party who takes Control of Polestar Petty Limited
                  under the terms of paragraph 1.3 of the Seventh Schedule;

      "NEW SURETY COMPANY"

                  means a new surety company or companies substituted for one or
                  more of the Original Surety Companies;

      "ORIGINAL SURETY COMPANIES"

                  means each of those companies listed in point 5 of the
                  Particulars;

      "PARTICULARS"

                  means the details on the preceding pages headed "Particulars";

      "PERSON"

                  means an individual, partnership, association, corporation,
                  limited liability company or other entity;

      "PLAN"

                  means the plan or plans specified in the Particulars;

      "PLANNING ACTS"

                  means the Town and Country Planning Act 1990 the Planning
                  (Listed Buildings and Conservation Areas) Act 1990 the
                  Planning (Hazardous Substances) Act 1990 the Planning
                  (Consequential Provisions) Act 1990 and the Planning and
                  Compensation Act 1991;

      "PLANT"

                  means all plant and machinery now in or serving the Premises
                  including (but without limitation) any listed in Part 1 of the
                  Sixth Schedule and all window cleaning plant and machinery all
                  electrical systems all fire detection and fire prevention
                  systems and all control or monitoring systems and
                  installations [and dock loading bays] (including in each case
                  all associated Conduits) and together also with all plant and
                  machinery which may from time to time be installed to replace
                  any item of the foregoing and provided that all items
                  comprising tenants fixtures, fittings, plant and machinery
                  (including, but without limitation those listed in Part 2 of
                  the Sixth Schedule) shall not be included in this definition
                  of "Plant";

      "POLESTAR GROUP"

                  means Polestar Group Limited and all its subsidiaries;

      "PROFITS TEST"

                  means that the Landlord is satisfied that any proposed
                  assignee of this Lease has net profits (before tax) of at
                  least three times the Rents then reserved and payable

                                                6

<PAGE>

                  under this Lease at the time of any proposed assignment as
                  shown by audited accounts of such proposed assignee during
                  each of the three accounting periods (none of which is to be a
                  period of more than one year) immediately preceding the date
                  of application to the Landlord for consent to any proposed
                  assignment;

      "QUARTER DAYS"

                  means 25 March, 24 June, 29 September and 25 December;

      "RENT DEPOSIT"

                  (a)   In the event that the Landlord becomes aware that
                        Polestar Petty Limited has a Minimum Tangible Worth of
                        less than Ten Million Pounds ((pound)10,000,000), it can
                        require Polestar Petty Limited by notice in writing to
                        pay the Rent Deposit and enter into the Rent Deposit
                        Deed in an amount equal to the shortfall in the Minimum
                        Tangible Worth from Ten Million Pounds
                        ((pound)10,000,000) up to a maximum Rent Deposit of Five
                        Million Pounds ((pound)5,000,000) PROVIDED THAT if this
                        shortfall is solely due to a decline in the profit &
                        loss reserve of Polestar Petty Limited arising solely
                        from a decline in profits arising from trading in the
                        ordinary course of business of Polestar Petty Limited
                        then the amount of the Rent Deposit shall be limited to
                        six months' Rents payable under this Lease for the six
                        month period commencing on the Test Date at which the
                        Minimum Tangible Worth Test has been determined not to
                        have been satisfied; and

                  (b)   in a case where the Ebitda Test or Debt Test is not
                        satisfied means an amount equal to the Rents payable
                        under this Lease for the six month period commencing on
                        the Test Date at which the Ebitda Test or Debt Test has
                        been determined not to have been satisfied;

      "RENT DEPOSIT DEED"

                  means a rent deposit deed in the form attached in the Ninth
                  schedule to this Lease;

      "RENTS"

                  means the aggregate of the Rent first reserved and the
                  Insurance Rent (unless the provisions of clause 5 are in
                  effect) and all other sums whatsoever as become payable by the
                  Tenant to the Landlord under the provisions of this Lease;

      "THE REPORT"

                  means the report carried out by Environ Limited in respect of
                  the Property dated April 2004;

      "REQUISITE NOTICE"

            means a notice in writing to the Tenant 48 hours before any entry is
            made on the Premises PROVIDED THAT in the case of an emergency no
            notice will be required;

                                               7

<PAGE>

      "SUBSIDIARY"

                  has the meaning given to it in sections 736 and 736A of the
                  Companies Act 1985 (as amended);

      "SUPPLEMENTAL DOCUMENT"

                  means any deed agreement licence memorandum letter or other
                  document which in any way varies this Lease or which is or
                  becomes supplemental to this Lease whether or not expressed to
                  be so;

      "S&P"

                  means Standard & Poor's Ratings Services, a Division of the
                  McGraw Hill, Companies, Inc;

      "SUPPLIER"

                  means a supplier to the Tenant of plant, equipment or
                  apparatus now in or serving the Premises (including without
                  limitation any listed in Part 2 of the Sixth Schedule);

      "SURETY"

                  means the Original Surety Companies or any other company or
                  companies substituted for or added to the Original Surety
                  Companies pursuant to the provisions of the Seventh Schedule
                  of this Lease and includes (in respect of any person who has
                  guaranteed to the Landlord the Tenant's obligations contained
                  in this Lease) if it is an individual his personal
                  representatives and provided that if any of the Original
                  Surety Companies are replaced by any other company or
                  companies as Surety pursuant to this Lease, then the company
                  so replaced shall cease to be a Surety for the purposes of
                  this Lease;

      "TENANT"

                  includes the Tenant's successors in title and if it is an
                  individual his personal representatives;

      "TENANT'S GROUP"

                  means the Tenant and all its subsidiaries any Holding Company
                  of the Tenant and all subsidiaries of any such Holding
                  Company;

      "TERM"

                  means the term mentioned in the Particulars and includes any
                  extension or continuation whether by statute or at common law;

      "TERMINATION DATE"

                  means the date of expiration or sooner determination of the
                  Term;

                                                8

<PAGE>

      "TEST DATE"

                  means 30 September in each year of this Lease;

      "VAT"

                  means Value Added Tax or any similar tax from time to time in
                  addition to it replacing it or performing a similar fiscal
                  function;

      "VAT ACT"

                  means the Value Added Tax Act 1994 and any other statutes
                  concerned with VAT and any directives and regulations adopted
                  by the Council of the European Communities which relate to
                  VAT;

      "VAT ELECTION"

                  means an election made by any person under paragraph 2 of
                  schedule 10 to the VAT Act which has the effect of a waiver of
                  exemption on any VAT Supply made by the Landlord or by the
                  representative member of any VAT Group of which the Landlord
                  is a member in relation to the Premises;

      "VAT GROUP"

                  means a group of companies within the meaning of section 43 of
                  the VAT Act;

      "VAT SUPPLY"

                  has the meaning which "supply" has for the purpose of the VAT
                  Act and any reference to a VAT Supply by or to any person
                  shall include a reference to a supply by or to the
                  representative member of any VAT Group of which the person is
                  a member.

2.    INTERPRETATION

      In this Lease:

2.1   The details and descriptions appearing in the Particulars are included and
      form part of this Lease.

2.2   If there is more than one person included in the expression "Tenant" or
      "Surety" the covenants by them will be joint and several.

2.3   Where any act is prohibited the Tenant will not allow or suffer such act
      to be done.

2.4   Where the Landlord or any other person exercises any rights to enter the
      Premises under this Lease unless specifically provided by this Lease to
      the contrary the person exercising such right will make good any damage
      caused to the Premises and to any Tenant's fixtures, fittings, and any
      goods or items on the Premises but (provided such right of entry is
      exercised in accordance with the relevant provisions of this Lease)
      neither such person nor the Landlord will be liable for any other
      compensation.

                                        9

<PAGE>

2.5   The clause headings (except for the definitions) are for ease of reference
      and are not to be used for the purposes of construing this Lease.

2.6   References to clause numbers or schedules or paragraphs in schedules mean
      the clauses of or schedules to or paragraphs in schedules to this Lease.

2.7   Words importing persons include firms companies and corporations and vice
      versa.

2.8   Words importing one gender will be construed as importing any other
      gender.

2.9   Words importing the singular will be construed as importing the plural and
      vice versa.

3.    DEMISE

      The Landlord DEMISES to the Tenant (at the request of the Surety) ALL
      THOSE the Premises EXCEPTING AND RESERVING to the Landlord the rights and
      easements specified in the Second schedule TO HOLD the Premises to the
      Tenant from and including the Date of Commencement of Term for the Term
      SUBJECT to all rights easements privileges restrictions and stipulations
      of whatever nature affecting the Premises and FURTHER SUBJECT to the
      covenants and other matters referred to in the Fifth schedule YIELDING AND
      PAYING:

3.1   Yearly and proportionately for any fraction of a year

3.1.1 from and including the Rent Commencement Date the Rent; and

3.1.2 from and including the Rent Review Date such other Rent as may become
      payable under the provisions of the Third Schedule

      in each case to be paid by equal quarterly payments in advance on the
      Quarter days in every year the first such payment to be made on the Rent
      Commencement Date and to be in respect of the period from and including
      the Rent Commencement Date to and including the day immediately preceding
      the next following quarter day.

3.2   From and including the Ancillary Rent Commencement Date:

3.2.1 the Insurance Rent;

3.2.2 all interest and VAT and other sums whatsoever as become payable by the
      Tenant to the Landlord under the provisions of this Lease.

      which are all reserved as rent.

3.3   If required by the Landlord the Tenant shall pay the rent reserved by
      clause 3.1 and any VAT on it by banker's standing order to a bank account
      in the United Kingdom which the Landlord has notified in writing to the
      Tenant.

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4.    INSURANCE BY THE LANDLORD

      The Landlord and the Tenant COVENANT one with the other as follows:

4.1   Subject to the Tenant paying the premium in accordance with the provisions
      of this clause the Landlord covenants to insure the Premises (including
      tenant's and trade fixtures and fittings if agreed pursuant to the proviso
      to this clause 4.1) subject to such excesses exclusions or limitations as
      the Landlord or its insurers may reasonably require (and as are reasonable
      having regard to the prevailing practice at the relevant time in the
      London insurance market) in such reputable insurance office or with such
      underwriters and through such agency as the Landlord may from time to time
      decide in the full reinstatement value of the Premises including
      architects' and surveyors' and other professional fees and incidental
      expenses including if the Landlord in its sole discretion from time to
      time sees fit VAT on the rebuilding costs and such fees against:

4.1.1 loss or damage by fire explosion storm tempest (including lightning) flood
      earthquake burst pipes impact heave subsidence and (in peacetime) aircraft
      and articles dropped therefrom riot terrorism civil commotion and
      malicious damage impact by road vehicles and such other risks against
      which the Landlord may from time to time deem necessary to insure or in
      respect of which the Tenant (acting reasonably having regard to the
      availability of such other risks in the London insurance market at the
      time of such request) requires insurance against;

4.1.2 the loss of rent payable under this Lease from time to time (having regard
      to any review of rent which may become due under this Lease) for three
      years or such longer period as the Landlord may from time to time
      reasonably consider to be sufficient or as the Tenant may request and the
      Landlord may approve (acting reasonably) for the purposes of planning and
      carrying out any such reinstatement;

4.1.3 public liability of the Landlord arising out of or in connection with any
      matters involving or relating to the Premises

      PROVIDED THAT the Landlord is not under any obligation to insure or
      reinstate any fixtures or fittings installed by the Tenant which have
      become part of the Premises unless the Tenant has notified the Landlord in
      writing both of such installation and the reinstatement value of such
      fixtures and fittings for insurance purposes and also the Landlord shall
      have agreed in writing with the Tenant to effect the insurance of such
      fixtures and fittings at the cost of the Tenant ("Tenant's Fixtures and
      Fittings Insurance").

4.2   The Tenant will pay to the Landlord on demand the amount of the premium
      for insuring the Premises against the Insured Risks from the Ancillary
      Rent Commencement Date.

4.3   If any part of the Premises is damaged by any of the Insured Risks and
      becomes unfit for occupation or use and the policy or policies of
      insurance shall not have been vitiated or payment refused in whole or in
      part as a result of some act or default of the Tenant or anyone under its
      control then a fair proportion of the Rent will be suspended until the
      Premises are fit for occupation or use or if earlier until the monies
      received by the Landlord in respect of loss of rent insurance have been
      exhausted. In calculating the fair proportion (if the Tenant has paid the
      Rent due for the quarter then current) a refund will be made in respect of
      the proportion of the Rent from the date of damage or destruction until
      the day immediately

                                       11

<PAGE>

      preceding the next usual quarter day and any dispute regarding the cesser
      of rent will be referred to a single arbitrator to be appointed in default
      of agreement upon the application of either party by the President for the
      time being of the Royal Institution of Chartered Surveyors under the
      Arbitration Act 1996.

4.3.1 If the Premises are damaged by any of the Insured Risks then subject to:

      (a)   clauses 4.4.3, 4.5 and 4.6; and

      (b)   the Landlord being able to obtain all necessary consents (the
            "CONSENTS") which the Landlord shall use reasonable endeavours to
            obtain

      the Landlord will lay out all applicable proceeds of such insurance in
      reinstating (so far as practicable) the Premises and the Tenant will pay
      to the Landlord within 14 days of demand the amount equivalent to any
      policy excess as referred to in clause 4.1 which may be applicable to such
      insurance PROVIDED THAT the Landlord's obligation under this clause 4.3.1
      will be satisfied if (subject to the Consents) the Landlord provides in
      the premises so reinstated accommodation at least as convenient and
      commodious as is reasonably practicable but such premises need not
      necessarily be identical to the Premises as they existed prior to such
      damage or destruction.

4.3.2 If the payment of any insurance monies is refused as referred to in clause
      4.3.3 the Tenant will pay to the Landlord within 14 days of demand the
      amount so refused.

4.3.3 The Landlord will not be obliged to comply with the obligations under
      clause 4.3.1 if payment of the insurance monies has been refused in whole
      or in part by reason of any act or default of the Tenant or anyone under
      its control and the Tenant has not complied with its obligations in
      clauses 4.3.1 and 4.3.2.

4.4   For the purposes of clause 4.5 the expression "SUPERVENING EVENTS" means:

4.4.1 the Landlord has failed (despite using its reasonable endeavours) to
      obtain the Consents;

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

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

4.4.4 the Landlord is unable to obtain access to such site for the purposes of
      rebuilding or reinstating;

4.4.5 the rebuilding or reinstating is prevented by war act of God government
      action strike or lockout; or

4.4.6 any other circumstance beyond the reasonable control of the Landlord.

4.5   The Landlord will not be liable to rebuild or reinstate the Premises if
      and for so long as such rebuilding or reinstating is prevented by
      Supervening Events and if rebuilding or reinstatement shall be impossible
      impracticable or frustrated by a Supervening Event all relevant insurance
      monies (so far as not laid out in rebuilding or reinstating and save any
      sums in respect of Tenant's Fixtures and Fittings Insurance which shall
      belong to and shall be paid to the Tenant) shall as between the Landlord
      and the Tenant be receivable by the

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<PAGE>

       Landlord for its own use and benefit absolutely and the obligation on the
       part of the Landlord to rebuild or reinstate will thereupon be deemed to
       have been discharged.

4.6    The Tenant will not do anything which may prejudice any policy of
       insurance for the time being in force in respect of any part of the
       Premises or any nearby premises or which may result in such insurance
       becoming void or voidable or the rate of premium under such insurance
       being increased and the Tenant will at all times comply with all
       reasonable requirements and recommendations of the insurers of the
       Premises notified in writing to the Tenant save that notification shall
       not be required if such requests or recommendations are of a nature
       generally found in the London insurance market.

4.7    To notify the Landlord immediately the Tenant undertenant or any other
       lawful occupier vacates the Premises.

4.8    The Tenant will keep the Premises supplied with such fire fighting
       equipment as the insurers of the Premises or the competent fire authority
       may require or as the Landlord may reasonably require and maintain such
       equipment to the satisfaction of all such persons.

4.9    The Tenant will not store explosive or unusually inflammable substances
       or goods at the Premises or obstruct the access to any fire fighting
       equipment or the means of escape from or over the Premises or lock any
       fire door and if anything happens which might affect any insurance policy
       relating to the Premises of which the Tenant is or should be aware the
       Tenant will immediately give notice to the Landlord.

4.10.1 At the reasonable written request of the Tenant the Landlord will produce
       evidence of such insurance and of the payment of the last premium.

4.10.2 The Landlord will use reasonable endeavours to procure that the interest
       of the Tenant is noted on the insurance policy either by specific noting
       or a general noting clause.

4.10.3 The Landlord will notify the Tenant of any material changes in the risks
       covered and the terms of the insurance policy from time to time, save
       where any such change reflects prevailing practice at the relevant time
       in the London insurance market.

4.10.4 The Landlord will use reasonable endeavours to procure that the insurers
       waive all rights of subrogation against the Tenant.

4.11   The Tenant will reimburse the Landlord within 14 days of demand the
       reasonable cost of valuations of the Premises for insurance purposes
       which the Landlord may cause to be made from time to time but not more
       frequently than once in every three years.

4.12   The Tenant warrants that prior to the execution of this Lease it has
       disclosed to the Landlord in writing any conviction judgment or finding
       of any court or tribunal relating to the Tenant (or any director other
       officer or major shareholder of the Tenant) of such a nature as to be
       likely to affect the decision of any insurer or underwriter to grant or
       to continue insurance of the Premises.

4.13   In the event of damage to the Premises as referred to in clause 4.3 and
       if the reinstatement of the Premises has not commenced within two years
       of such damage and is not thereafter diligently proceeded with the Tenant
       shall be entitled to terminate this Lease on giving three months' written
       notice to the Landlord and such termination shall thereafter take effect
       if

                                       13

<PAGE>

       such reinstatement has not so commenced and is not diligently proceeded
       with within such three month period and such termination shall be without
       prejudice to either party's rights against the other for any preceding
       breach of this Lease.

4.14   ACT OF TERRORISM

4.14.1 If the Premises or any part thereof or the access thereto shall be
       destroyed or damaged by an Act of Terrorism so as to render the Premises
       unfit for occupation and use then only to the extent an Act of Terrorism
       is not an Insured Risk under the terms of clause 4.1 then the Landlord
       shall within 12 months of such Act of Terrorism give written notice to
       the Tenant indicating whether or not the Landlord intends to reinstate
       the Premises.

4.14.2 If the Landlord intends to reinstate the Premises then, subject to:

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

       (b)   the necessary labour and materials being and remaining available
             (which the Landlord shall use its reasonable endeavours to obtain
             as soon as reasonably practicable),

       the Landlord shall use reasonable endeavours to reinstate the Premises as
       quickly as may reasonably be practicable at its own expense in accordance
       with the foregoing provisions.

4.14.3 If the Landlord serves written notice upon the Tenant pursuant to clause
       4.14.1 indicating that the Landlord does not intend to reinstate as
       aforesaid, this Lease shall forthwith determine without prejudice to any
       claim by either party against the other in respect of any antecedent
       breach of covenant.

4.14.4 If the Landlord shall fail to give notice to the Tenant in accordance
       with clause 4.14.1 above, the Tenant may at any time after the expiry of
       a period of 12 months following the Act of Terrorism forthwith determine
       this Lease by written notice to the Landlord but without prejudice to any
       claim by either party against the other in respect of any antecedent
       breach of covenant.

4.14.5 All insurance monies payable will belong to the Landlord.

5.     INSURANCE BY THE TENANT

5.1    The Landlord may, at any time during the continuance of this Lease, serve
       an Insurance Election Notice on the Tenant whereupon the following
       provisions of this clause shall have effect upon the expiration of the
       Insurance Election Notice and clause 4 shall cease to operate.

5.2    The obligation on the part of the Tenant to pay Insurance Rent pursuant
       to clauses 3.2.1 and 4.2 shall cease.

5.3    The Tenant shall:

5.3.1  insure the Premises and maintain such insurance in the joint names of the
       Landlord and the Tenant and if requested by the Landlord with cover also
       being in the joint names of

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<PAGE>

      any Mortgagee or with the interest of any Mortgagee being noted on the
      policy (and with the Landlord being first loss payee), for their full
      reinstatement value, including the costs of demolition and site clearance,
      temporary works, compliance with local authority requirements in
      connection with any works of repair or reinstatement, architects',
      surveyors' and other professional fees and other incidental expenses, and
      in each case with due allowance for inflation and VAT, against;

      (a)   those risks set out at clause 4.1.1 above and such other risks as
            the Landlord may from time to time reasonably require insurance
            against (the "TENANT'S INSURED RISKS"); and

      (b)   the loss of rent payable under this Lease from time to time (having
            regard to any review of rent which may become due under this Lease)
            for three years or such longer period as the Landlord or the Tenant
            may from time to time reasonably consider to be sufficient for the
            purposes of planning and carrying out any such reinstatement;

      (c)   public liability of the Landlord arising out of or in connection
            with any matter involving or relating to the Premises;

5.3.2 such insurance to be approved in advance by the Landlord in accordance
      with clause 5.3.3 below;

5.3.3 within 14 days of receiving the Insurance Election Notice, and in any
      event prior to taking out the said insurance, provide the Landlord with
      full details of the proposed insurance for the Landlord's approval (such
      approval not to be unreasonably withheld or delayed) including, but not
      limited to, details of the insurer or underwriter, the form of policy, any
      excesses exclusions and limitations under the policy, details of the full
      reinstatement value including all professional fees, and details of all
      other amounts insured under the policy;

5.3.4 at least two months prior to the renewal or replacement of any existing
      policy produce details of any proposed renewal or replacement policy
      together with evidence of payment of the premium to the Landlord and also
      at any other time at the request of the Landlord, produce details of the
      terms of the current insurance policy and evidence of the payment of the
      current premium to the Landlord;

5.3.5 notify the Landlord of any material changes in the risks covered and the
      terms of the insurance policy from time to time;

5.3.6 pay within 14 days of demand any increase in the insurance premium for any
      adjoining property of the Landlord which is attributable to the use of the
      Premises, or anything done or omitted to be done on the Premises by the
      Tenant or any other occupier of the Premises;

5.3.7 pay within 14 days of demand the reasonable costs incurred or payable by
      the Landlord in connection with the Landlord obtaining any valuation of
      the Premises for insurance purposes, as long as such valuation is made at
      least three years after any previous such valuation;

5.3.8 comply with the requirements of the insurers relating to the Premises;

                                       15

<PAGE>
 5.3.9 not do or omit to do anything which may make the insurance of the
       Premises or of any adjoining property of the Landlord, taken out by the
       Landlord or any superior landlord, void or voidable;

5.3.10 give the Landlord immediate written notice of any damage to or
       destruction of the Premises by a Tenant's Insured Risk;

5.3.11 pay the Landlord within 14 days of demand the reasonable costs incurred
       by the Landlord in connection with any insurance claim relating to the
       Premises arising from any insurance taken out by the Landlord;

5.3.12 notify the Landlord immediately the Tenant, undertenant, or any other
       lawful occupier vacates the Premises;

5.3.13 keep the Premises supplied with such fire fighting equipment as the
       insurers of the Premises or the competent fire authority may require or
       as the Landlord may reasonably require and maintain such equipment to the
       satisfaction of all such persons; and

5.3.14 not store explosive or unusually inflammable substances or goods at the
       Premises or obstruct the access to any fire fighting equipment or the
       means of escape from or over the Premises or lock any fire door and if
       anything happens which might affect any insurance policy relating to the
       Premises of which the Tenant is or should be aware the Tenant will
       immediately give notice to the Landlord.

5.4    REINSTATEMENT

5.4.1  If the Premises are damaged by any of the Tenant's Insured Risks then
       subject to:

       (a)   clauses 5.4.3, 5.5 and 5.6;

       (b)   the Landlord being able to obtain all necessary consents (the
            "CONSENTS") which the Landlord shall use reasonable endeavours to
            obtain;

       (c)   the Landlord receiving the insurance monies; and

       (d) the Tenant making good any shortfall in the insurance monies;

       the Landlord will lay out all applicable proceeds of such insurance
       (except those relating to fees and loss of rent) in reinstating (so far
       as practicable) the Premises and the Tenant will pay to the Landlord
       within 14 days of demand the amount equivalent to any policy excess which
       may be applicable to such insurance PROVIDED THAT the Landlord's
       obligation under this clause 5.4.1 will be satisfied if (subject to the
       Consents) the Landlord provides in the premises so reinstated
       accommodation at least as convenient and commodious as is reasonably
       practicable but such premises need not necessarily be identical to the
       Premises as they existed prior to such damage or destruction.

5.4.2  If the payment of any insurance monies is refused as referred to in
       clause 5.4.3 the Tenant will pay to the Landlord within 14 days of demand
       the amount so refused.

5.4.3  The Landlord will not be obliged to comply with the obligations under
       clause 5.4.1 if payment of the insurance monies has been refused in whole
       or in part by reason of any act or default of the Tenant or anyone under
       its control and the Tenant has not complied with its obligations in
       clauses 5.4.1 and 5.4.2.

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<PAGE>

5.5   For the purposes of clause 5.6 the expression "SUPERVENING EVENTS" means:

5.5.1 the Landlord has failed (despite using its reasonable endeavours) to
      obtain the Consents;

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

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

5.5.4 the Landlord is unable to obtain access to such site for the purposes of
      rebuilding or reinstating;

5.5.5 the rebuilding or reinstating is prevented by war act of God government
      action strike or lockout; or

5.5.6 any other circumstance beyond the reasonable control of the Landlord.

5.6   The Landlord will not be liable to rebuild or reinstate the Premises if
      and for so long as such rebuilding or reinstating is prevented by
      Supervening Events and if rebuilding or reinstatement shall be impossible
      impracticable or frustrated by a Supervening Event all relevant insurance
      monies (so far as not laid out in rebuilding or reinstating and save in
      respect of any sums insured in respect of Tenant's fixtures and fittings
      and other goods or items on the Premises which shall belong and be paid to
      the Tenant) shall as between the Landlord and the Tenant be receivable by
      the Landlord for its own use and benefit absolutely and the obligation on
      the part of the Landlord to rebuild or reinstate will thereupon be deemed
      to have been discharged.

5.7   In the event of damage to the Premises as referred to in clause 5.4 and if
      the reinstatement of the Premises has not commenced within two years of
      such damage and is not thereafter diligently proceeded with the Tenant
      shall be entitled to terminate this Lease on giving three months' written
      notice to the Landlord and such termination shall thereafter take effect
      if such reinstatement has not so commenced and is not diligently proceeded
      with within such three month period and such termination shall be without
      prejudice to either party's rights against the other for any preceding
      breach of this Lease.

5.8   LANDLORD'S INSURANCE

5.8.1 If the Tenant fails to produce satisfactory evidence that it is
      complying with this clause, or the Landlord otherwise has reasonable
      grounds for believing that the Tenant is or may be in breach of its
      obligations in this clause, then the Landlord may effect and maintain
      insurance of the Premises against any of the Insured Risks at its
      discretion and the Tenant shall pay to the Landlord within 14 days of
      demand the cost to the Landlord of effecting such insurance.

5.8.2 Immediately upon the Landlord giving notice to the Tenant that the
      Landlord has insured the Premises against any of the Insured Risks, the
      Tenant shall not maintain or take out any insurance of the Premises for
      such risks in its own name.

5.8.3 Save as provided for above all insurance moneys payable under any
      insurance taken out by the Landlord shall belong to the Landlord.

                                       17

<PAGE>
 5.9   If any part of the Premises is damaged by any of the Insured Risks and
       becomes unfit for occupation or use and the policy or policies of
       insurance shall not have been vitiated or payment refused in whole or in
       part as a result of some act or default of the Tenant or anyone under its
       control and the Landlord has received the monies in respect of loss of
       rent referred to in clause 5.3.1(b) from the insurers then a fair
       proportion of the Rent will be suspended until the Premises are fit for
       occupation or use or if earlier until the monies received by the Landlord
       in respect of loss of rent insurance have been exhausted. In calculating
       the fair proportion (if the Tenant has paid the Rent due for the quarter
       then current) a refund will be made in respect of the proportion of the
       Rent from the date of damage or destruction until the day immediately
       preceding the next usual quarter day and any dispute regarding the cesser
       of rent will be referred to a single arbitrator to be appointed in
       default of agreement upon the application of either party by the
       President for the time being of the Royal Institution of Chartered
       Surveyors under the Arbitration Act 1996.

5.10   ACT OF TERRORISM

5.10.1 If the Premises or any part thereof or the access thereto shall be
       destroyed or damaged by an Act of Terrorism so as to render the Premises
       unfit for occupation and use then only to the extent an Act of Terrorism
       is not an Insured Risk under the terms of clause 4.1 then the Landlord
       shall within 12 months of such Act of Terrorism give written notice to
       the Tenant indicating whether or not the Landlord intends to reinstate
       the Premises.

5.10.2 If the Landlord intends to reinstate the Premises then, subject to:

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

        (b)   the necessary labour and materials being and remaining available
              (which the Landlord shall use its reasonable endeavours to obtain
              as soon as reasonably practicable),

       the Landlord shall use reasonable endeavours to reinstate the Premises as
       quickly as may reasonably be practicable at its own expense in accordance
       with the foregoing provisions.

5.10.3 If the Landlord serves written notice upon the Tenant pursuant to clause
       5.10.1 indicating that the Landlord does not intend to reinstate as
       aforesaid, this Lease shall forthwith determine without prejudice to any
       claim by either party against the other in respect of any antecedent
       breach of covenant.

5.10.4 If the Landlord shall fail to give notice to the Tenant in accordance
       with clause 5.10.1 above, the Tenant may at any time after the expiry of
       a period of 12 months following the Act of Terrorism forthwith determine
       this Lease by written notice to the Landlord but without prejudice to any
       claim by either party against the other in respect of any antecedent
       breach of covenant.

5.10.5 All insurance monies payable will belong to the Landlord.

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<PAGE>

6.    TENANT'S OBLIGATIONS

      THE Tenant COVENANTS with the Landlord:

6.1   RENTS

      To pay the rents reserved by this Lease without deduction or set-off
      whether legal or equitable in accordance with its terms and if the Rent
      first reserved under this Lease is not paid on the due date or the
      remainder of the Rents under this Lease are not paid within 14 days of the
      due date (whether formally demanded or not) or any other sums due under
      this Lease are unpaid for more than 14 days after the due date (whether
      formally demanded or not) or if any sums due under this Lease are refused
      as a result of any breach or any anticipated breach of covenant by the
      Tenant to pay Interest.

6.2   REPAIR

6.2.1 At all times to repair and to keep the Premises (including any part
      unbuilt upon) in good and substantial repair and condition and to yield up
      the same at the Termination Date in accordance with the covenants by the
      Tenant contained in this Lease, damage by any of the Insured Risks or by
      Act of Terrorism (to the extent that an Act of Terrorism is not an Insured
      Risk) excepted save to the extent that payment of the insurance monies is
      withheld in whole or in part by reason solely or in part of any act or
      default of the Tenant undertenant or anyone under their control and such
      repairing obligation shall include an obligation on the part of the Tenant
      to:-

      (a)   maintain the garden border on Whitehall Road and the east wall of
            the Reel Store and the brick wall between the Reel Store and Kidd
            House; and

      (b)   ensure that a regular monitoring programme is implemented (at a
            minimum of six monthly intervals) in relation to any cracking which
            may exist within Petty House (defined in clause 6.6.1 (c)) and that
            any such cracking is repaired forthwith.

6.2.2 To keep the Premises and all Conduits serving the Premises in a clean and
      tidy condition and properly cleansed and free from obstruction and in
      particular to clean all the windows (both inside and out) and all other
      glass in the Premises monthly.

6.2.3 To comply with the terms of all warranties guarantees or similar documents
      which apply to all or any part of the Premises.

6.2.4 DECORATION

      Without prejudice to the generality of the foregoing

      (a)   During the First Redecorating Year and every succeeding fifth year
            and in the last six months before the Termination Date but not twice
            in consecutive years to paint and otherwise treat as the case may be
            all the inside wood and metal work of the Premises usually painted
            or otherwise treated in a workmanlike manner to the reasonable
            satisfaction of the Landlord and also to clean all other inside
            parts of the Premises and to paint or paper in a workmanlike manner
            all walls and ceilings of the Premises usually painted or papered as
            the case may be such work in the last six months before the
            Termination Date to be executed in such colours patterns and
            materials as the Landlord may reasonably require.

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<PAGE>

      (b)   During the First Redecorating Year and every succeeding third year
            and in the last six months before the Termination Date but not twice
            in consecutive years to clean paint redecorate repaint and otherwise
            treat all the outside wood metal brick and cement work and other
            external surfaces of the Premises in a workmanlike manner and in
            colours approved by the Landlord (such approval not to be
            unreasonably withheld or delayed).

      (c)   Where painting is required under the preceding clauses 6.2.4(a) and
            6.2.4(b) it will consist of two coats of good quality paint and in
            every case materials of good quality only will be used.

6.2.5 To repair or replace forthwith by articles of similar kind and quality any
      fixtures fittings or plant or equipment (other than tenant's or trade
      fixtures and fittings) in the Premises which shall become in need of
      repair or replacement.

6.2.6 To keep any part of the Premises which may not be built upon adequately
      surfaced in good condition swept clean and all landscaped areas properly
      cultivated and free from weeds and to ensure all grassed areas are mown as
      and when necessary so that the same shall have a neat and tidy appearance
      at all times.

6.2.7 REPAIR OF NEIGHBOURING STREETS

      (a)   To keep the roadway known as Sutton Street in good and substantial
            repair and condition and free from obstructions.

      (b)   To reimburse the Landlord any costs or expenses which the Landlord
            may be required to incur in connection with the repair or
            maintenance of Lord Terrace or Lord Street.

6.3   ALTERATIONS AND ADDITIONS

6.3.1 Not to demolish any building or do anything which would mean the Premises
      are not a commercial building or structure within the terms of Section
      271(1)(b) of the Capital Allowances Act 2001.

6.3.2 Subject to the preceding sub-clause not to make any alterations or
      additions to any part of the Premises or erect any new building or make
      any additions or alterations to the Plant and not to cut maim or remove
      any parts of the Premises and not to make any change in the existing
      design or appearance of the Premises or to carry out any electrical work
      in the Premises or make any alteration in or extension to the electrical
      installations in the Premises without (in all cases) obtaining the written
      prior consent of the Landlord such consent not to be unreasonably withheld
      or delayed and the Landlord and the Tenant agree that if reasonable the
      Landlord may require the security or guarantee referred to in clause 6.3.5
      in respect of reinstatement PROVIDED ALWAYS THAT the Tenant may:

      (a)   make minor or routine alterations to the electrical installations
            or carry out maintenance work to these without the consent of the
            Landlord subject to supplying to the Landlord within one month of
            such alterations or maintenance work a set of drawings and
            sufficient detail outlining the nature of such alterations or
            maintenance work; and

      (b)   without the written consent of the Landlord install and move at the
            Premises and remove from the Premises internal demountable
            partitions which are not in any

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            way attached to or otherwise affect the structure of the Premises or
            the Plant in or upon the Premises subject to supplying to the
            Landlord within one month of their being installed moved or removed
            (as the case may be) two complete sets of drawings showing such
            internal demountable partitions.

      (c)   make any non-structural alterations required to divide the Premises
            into any Permitted Part, provided that the Landlord's consent is
            obtained as provided for above in respect of any such alterations

6.3.3 Without prejudice to clause 6.3.2 any alteration or addition to the
      electrical installations in the Premises shall comply with the Regulations
      from time to time issued by the Institute of Electrical Engineers.

6.3.4 If the Tenant makes any alterations or additions to the Premises in breach
      of this clause 6.3 then in addition to any other remedies and powers
      available to the Landlord (and without prejudice to them) the Landlord may
      remove and reinstate such additions or alterations and the proper cost of
      carrying out such work will be repaid to the Landlord by the Tenant within
      14 days of demand.

6.3.5 Unless the Landlord directs the Tenant in writing to the contrary to
      remove prior to the Termination Date any alterations additions or
      improvements made to the Premises remove any plant and machinery installed
      at the Premises by the Tenant or any other occupier and forthwith make
      good any damage caused by such removal to the Landlord's reasonable
      satisfaction PROVIDED THAT:

      (a)   The Tenant shall irrespective of the foregoing provisions be
            entitled to remove all tenant's fixtures and fittings and all plant
            and machinery at any time during the Term PROVIDED THAT the Tenant
            makes good forthwith all damage caused to the Premises by such
            removal to the Landlord's reasonable satisfaction.

      (b)   If the Landlord requires the Tenant shall provide adequate
            security or guarantees to fully secure the liability to reinstate
            any alterations additions or improvements in accordance with the
            terms of this clause such security or guarantee to be provided at
            the time of obtaining the Landlord's consent in accordance with
            clause 6.3.2.

6.4   SIGNS AND RELETTING NOTICES

6.4.1 Not to display any signs or notices at the Premises which can be seen from
      outside the Premises without the Landlord's approval, not to be
      unreasonably withheld or delayed.

6.4.2 At the end of the Term to remove any signs at the Premises and make good
      any damage caused by that removal to the reasonable satisfaction of the
      Landlord.

6.5   USER

6.5.1 Subject to the following sub-clause not to use the Premises except for any
      use falling within the Permitted User as the Landlord may first approve in
      writing (such approval not to be unreasonably withheld).

6.5.2 Notwithstanding the previous sub-clause the Tenant shall procure that at
      all times throughout the Term the Premises shall be a commercial building
      or structure within the terms of Section 217(1)(b) of the Capital
      Allowances Act 2001.

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6.6   ALIENATION

6.6.1 In this clause 6.6 the following expressions have the following meanings:

      (a)   "AUTHORISED GUARANTEE AGREEMENT"

            has the meaning defined in and for the purposes of section 16 of the
            Landlord and Tenant (Covenants) Act 1995 which shall be made by
            separate deed in the form set out in the Eighth Schedule;

      (b)   "PERMITTED OCCUPIER"

            means a company which is a member of the Tenant's Group; and

      (c)   "PERMITTED PART"

            means part of:-

            (i)   that part of the Premises known as Reel Store (as shown edged
                  green on Plan 2 attached to this Lease ("REEL STORE"); and

            (ii)  that part of the Premises known as Petty House (as shown edged
                  pink on Plan 2 attached to this Lease ("PETTY HOUSE"); and

            (iii) that part of the Premises known as Press Hall No. 1 (as shown
                  edged orange on Plan 2 attached to this Lease ("PRESS HALL No
                  1"); and

            (iv)  that part of the Premises known as Press Hall No 2 (as shown
                  edged yellow on Plan 2 attached to this Lease ("PRESS HALL NO
                  2").

6.6.2 Not to hold on trust for another or assign charge or underlet part with or
      share possession or occupation of the whole of the Premises or any part or
      agree so to do or permit any person to occupy the same save (subject to
      this clause 6.6) by way of:

      (a)   an assignment charge or underlease of the whole; or

      (b)   an underlease of a Permitted Part

      Provided Always that there shall at no time be subject to more than three
      separate occupations (the occupation of the Tenant and a Permitted
      Occupier or either of them counting as one) for each of the parts of the
      Premises known as Reel Store, Petty House, Press Hall No 1 or Press Hall
      No 2.

6.6.3 Not to assign or charge or underlet the whole of the Premises or underlet
      a Permitted Part except as provided in this clause 6.6 and then only with
      the prior written consent of the Landlord (such consent not to be
      unreasonably withheld or delayed and subject in the case of an assignment
      to clauses 6.6.6 to 6.6.8 and in the case of an underletting to clauses
      6.6.9 to 6.6.13 (inclusive)).

6.6.4 Not to sub-underlet the whole of the Premises or to sub-underlet a
      Permitted Part.

6.6.5 Not to charge the Tenants fixtures fittings plant and machinery
      (including, without limitation, the items referred to in Part 2 of the
      Second Schedule) without the prior written consent of the Landlord (such
      consent not to be unreasonably withheld or delayed) and the terms of such
      Landlord's consent may require that if the Tenant is in default or in
      breach of all or any of its obligations contained in this Lease then the
      Tenant shall, immediately upon the Landlord's request, procure the
      Supplier within 6 months of

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                         [POLESTAR PETTY PREMISES PLAN]

<PAGE>

                         [POLESTAR PETTY PREMISES PLAN]

<PAGE>

                         [POLESTAR PETTY PREMISES PLAN]

<PAGE>

                         [POLESTAR PETTY PREMISES PLAN]

<PAGE>

                         [POLESTAR PETTY PREMISES PLAN]

<PAGE>

      receipt of such request to remove any equipment supplied to the Tenant
      within or exclusively serving the Premises.

6.6.6 ASSIGNMENT

      For the purpose of section 19(1A) of the Landlord and Tenant Act 1927 it
      is agreed that the Landlord shall not be regarded as unreasonably
      withholding consent to any proposed assignment of the whole of the
      Premises if it is withheld on the ground (and it is the case) that any one
      or more of the circumstances mentioned below exist (whether or not such
      withholding is solely on such ground or on that ground together with other
      grounds):

      (a)   in the Landlord's reasonable opinion the proposed assignee is not or
            will not be able to pay the Rents reserved by this Lease as and when
            they fall due and/or to observe and perform the obligations of the
            Tenant under this Lease and any Supplemental Document;

      (b)   there are arrears of the Rents reserved hereunder at the date of the
            application for the assignment to the proposed assignee and/or the
            proposed date for completion of the licence giving the Landlord's
            consent;

      (c)   the proposed assignee is a member of the Tenant's Group;

      (d)   the Net Worth Test and the Profits Test have not been satisfied;

      (e)   the Surety has not entered or will not enter into a deed, no later
            than the date of the instrument of the proposed assignment, which
            deed is to provide for a guarantee of all the obligations of the
            Tenant contained in any Authorised Guarantee Agreement entered into
            pursuant to clause 6.6.7(a) below

      PROVIDED that if the proposed assignee satisfies the Net Worth Test and
      the Profits Test the Landlord shall not be entitled to withhold consent on
      the grounds set out in clause 6.6.6(a) above

6.6.7 On any assignment:

      (a)   the Tenant shall no later than the date of the instrument of the
            proposed assignment, enter into an Authorised Guarantee Agreement in
            the form set out in the Eighth Schedule;

      (b)   if the Landlord reasonably so requires the Tenant will obtain one or
            more acceptable sureties for the proposed assignee who will covenant
            with the Landlord in the terms (mutatis mutandis) set out in the
            Fourth schedule;

      (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 reasonable security for
            performance by the proposed assignee of its obligations under this
            Lease as the Landlord may reasonably require; and

6.6.8 Clauses 6.6.6 and 6.6.7 shall operate without prejudice to the right of
      the Landlord to refuse such consent on any other ground or grounds where
      such refusal would be reasonable or to impose further reasonable
      conditions upon the grant of consent where such imposition would be
      reasonable, but without prejudice to the proviso in clause 6.6.6.

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6.6.9  UNDERLETTING

       Not to underlet the whole of the Premises or a Permitted Part at a fine
       or a premium or at a rent less than the open market rent of the Premises
       or the Permitted Part (as the case may be) in each case at the time of
       such underlease.

6.6.10 Upon the Landlord consenting to an underletting of the Premises or of a
       Permitted Part to procure that the underlease contains:

       (a)   an unqualified covenant on the part of the undertenant with the
             Tenant that the undertenant will not assign or charge (or agree so
             to do) any part or parts of the premises (as distinct from the
             whole) demised by such underlease ("THE UNDERLET PREMISES");

       (b)   an unqualified covenant on the part of the undertenant with the
             Tenant that the undertenant will not assign or charge (or agree so
             to do) the whole of the Underlet Premises without the previous
             consent in writing of the Landlord such consent not to be
             unreasonably withheld or delayed;

       (c)   an unqualified covenant on the part of the undertenant with the
             Tenant that the undertenant will not part with or agree so to do or
             share possession of or permit any person to occupy the whole or any
             part of the Underlet Premises (save in the case of any informal
             sharing of occupation by the undertenant with a company in the same
             group of companies (as defined under sections 736 and 736A of the
             Companies Act 1985 (as amended)) in a manner that does not create a
             landlord and tenant relationship between the parties);

       (d)   an unqualified covenant on the part of the undertenant with the
             Tenant that the undertenant will not underlet the whole or any part
             of the Underlet Premises;

       (e)   an unqualified covenant by the undertenant (which the Tenant
             undertakes to use all reasonable endeavours to enforce) to prohibit
             the undertenant from doing or suffering any act or thing upon or in
             relation to the Underlet Premises which will contravene any of the
             Tenant's obligations in this Lease PROVIDED THAT

             (i)   any undertenant shall not be obliged to comply with the terms
                   of the Seventh Schedule; and

             (ii)  in the case of any underletting of Petty House it may be used
                   for office purposes and in the course of any underletting of
                   the Reel Store it may be used for warehouse purposes
                   notwithstanding clause 6.5.2.

       (f)   provision for review of the rent (in an upwards direction only)
             reserved by the underlease on open market terms;

       (g)   a condition for re-entry on breach of any covenant on the part of
             the undertenant or any other ground in respect of the undertenant
             specified in clause 8.1;

       (h)   in the case of a Permitted Part a provision authorised by a court
             of competent jurisdiction excluding the provisions of sections 24
             to 28 (inclusive) of the Landlord and Tenant Act 1954 from the
             tenancy thereby created; and

       (i)   any underlease shall be granted at a rent which is not less than
             the full open market rental value of the Premises (or in the case
             of an underletting of a permitted part of the Permitted Part;

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       (j)   The Tenant shall not enter into any collateral deed nor give any
             side letter varying or relieving the undertenant from any terms
             required by clause 6.6.9 to be contained in the underlease

       (k)   in the case of an underletting of a Permitted Part such underlease
             shall be for a term not exceeding five years.

6.6.11 To procure in any underletting of the Premises or of a Permitted Part
       that the rent under such underletting is reviewed in accordance with the
       terms of such review and to procure that the Landlord's representations
       as to the rent payable thereunder are made to any independent person
       appointed to determine such review.

6.6.12 Not to vary the terms of or accept any surrender of any underlease
       permitted under this clause 6.6 (or agree so to do) without the
       Landlord's prior written consent (such consent not to be unreasonably
       withheld or delayed) and not to commute or waive any rents payable by any
       such underlease.

6.6.13 Notwithstanding anything contained in this clause 6.6 the Tenant may
       share occupation of the Premises with a Permitted Occupier PROVIDED THAT:

       (a)   no tenancy is created by such occupation;

       (b)   the rights of the Permitted Occupier immediately determine on it
             ceasing to fall within the definition of a Permitted Occupier;

       (c)   the Tenant will give notice to the Landlord within 14 days of the
             commencement and termination of each sharing of occupation of the
             Premises.

6.6.14 From time to time during the Term to furnish to the Landlord on demand
       full particulars of all derivative interests of or in the Premises
       however remote or inferior and within one month after the transmission or
       charging of any interest under this Lease or derivative of it or the
       execution of any document dealing with such interest to leave with the
       Landlord two certified copies of the deed instrument or other document
       evidencing or effecting such dealing or transmission and to pay a
       reasonable registration fee and to procure that every document creating
       an underletting of the Premises or of a Permitted Part contains a similar
       covenant by the undertenant with the Tenant and the Landlord PROVIDED
       THAT registration of any such deed instrument or other document will be
       evidence of notification of such transaction to the Landlord but will not
       require the Landlord to consider the terms of such transaction of the
       said deed instrument or other document and will not be evidence that it
       has done so.

6.7    ENTRY

6.7.1  To permit the Landlord and all persons authorised by it at all reasonable
       times upon Requisite Notice and (save in emergency) upon making a prior
       appointment with the Tenant to enter and remain upon the Premises
       together with work people plant and materials:

       (a)   to examine their condition and to take schedules of repairs and the
             like and inventories of fixtures and fittings plant and machinery;

       (b)   to execute any works of construction repair decoration or of any
             other nature within the Premises or the Plant or the Conduits
             pursuant to clause 6.7.2 and to

                                       25

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            carry out any repairs, decorations or other work which the Landlord
            must or may carry out under the provisions of this Lease upon or to
            the Premises;

      (c)   to exercise without interruption or interference any of the rights
            excepted or reserved to the Landlord by this Lease;

      (d)   in the last six months before the Termination Date to affix a sign
            or signs indicating that the Premises are to let unless the Tenant
            is actively pursuing its right to renew the Lease and has taken all
            necessary steps to renew the Lease (including those required by
            statute); and

      (e)   for any other reasonable purpose connected with the interest of the
            Landlord in the Premises including (but without limitation) for the
            purpose of valuing or disposing of any interest of the Landlord or
            any superior landlord or doing anything which may be necessary to
            prevent a forfeiture of any superior lease for the time being
            affecting the Premises.

6.7.2 If as a result of an inspection or otherwise the Landlord becomes aware of
      any breaches of covenant by the Tenant under this Lease the Landlord may
      give notice in writing thereof to the Tenant and within two months after
      every such notice or sooner if reasonably required the Tenant will remedy
      such breach of covenant in accordance with such notice and the covenants
      contained in this Lease to the reasonable satisfaction of the Landlord AND
      if the Tenant fails within 21 days of such notice or immediately in case
      of emergency to commence and diligently and expeditiously to continue to
      comply with such notice or if the Tenant at any time makes material
      default in the performance of any of the covenants contained in this Lease
      for or relating to the repair decoration or maintenance of the Premises
      then (without prejudice to the right of re-entry and forfeiture contained
      in this Lease) the Landlord may enter upon the Premises under clause 6.7.1
      and carry out or cause to be carried out all or any of the works referred
      to in such notice or remedy the default of the Tenant and all proper costs
      of all such works and all proper expenses incurred in remedying such
      defaults in each case shall be paid by the Tenant to the Landlord within
      fourteen days of demand.

6.8   PLANNING ACTS AND ACTS GENERALLY

6.8.1 To comply with all Acts including (but without limitation) the Planning
      Acts or the carrying out by the Tenant of any operations on or use of the
      Premises.

6.8.2 At its expense to obtain from the appropriate authorities all licences
      consents and permissions as may be required for the carrying out by the
      Tenant of any operations on or use of any part of the Premises.

6.8.3 Not at any time during the Term to do or permit or suffer anything which
      shall be a contravention of the Planning Acts or of any licences consents
      authorisations permissions and conditions (if any) from time to time
      granted or imposed under such Acts nor to permit anything which would be a
      contravention thereof and to comply with the same and to indemnify the
      Landlord in respect of such acts or omissions.

6.8.4 Not to make any application for planning permission without first
      producing a copy of the same and obtaining the prior written consent of
      the Landlord to such application which consent will not be unreasonably
      withheld or delayed.

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6.8.5  Unless the Landlord directs otherwise in writing to carry out before the
       Termination Date any works stipulated to be carried out to the Premises
       as a condition of any planning permission which may have been granted
       during the Term and implemented by the Tenant or any other person whether
       or not the date by which the planning permission requires such works to
       be carried out falls within the Term.

6.8.6  In any case where a planning permission is granted subject to conditions
       and if the Landlord reasonably so requires to provide security for the
       compliance with such conditions and such planning permission shall not be
       implemented until such security has been provided.

6.8.7  If the Landlord reasonably believes that the reversionary value of the
       Premises may be adversely affected and if reasonably required by the
       Landlord but at the cost of the Tenant to appeal against any refusal of
       planning permission or the imposition of any conditions on a planning
       permission in either case made pursuant to an application therefor under
       this clause 6.8 provided that the Tenant shall not be obliged to appeal
       unless it has received an opinion from a planning counsel of at least ten
       years standing that an appeal would have at least a 70% chance of
       succeeding.

6.8.8  Not to do anything in the Premises or cause them to be occupied in such a
       way as will cause any part of any other land owned or occupied by the
       Landlord not to comply with any Act.

6.8.9  Not at any time during the Term to do permit or suffer on the Premises
       any act or cause or permit to be present on the Premises any matter or
       thing which may cause loss to the Landlord by reason of any Environmental
       Law.

6.8.10 Within seven days of the receipt to give full particulars to the Landlord
       of any permission notice order or proposal relevant to the Premises or to
       the use thereof given to the Tenant or the occupier of the Premises
       (together with a copy of any notice permission letter or document) under
       any Act and without delay to take all necessary steps to comply with such
       notice insofar as it relates to the Tenant's use and occupation of the
       Premises and also at the reasonable request of the Landlord to make or
       join with the Landlord in making such objections and representations
       against or in respect of any such notice order or proposal as aforesaid
       as the Landlord reasonably requires.

6.9    THE CONSTRUCTION (DESIGN AND MANAGEMENT) REGULATIONS 1994

6.9.1  In this clause "REGULATIONS" means the Construction (Design and
       Management) Regulations 1994 and "FILE" means the Health and Safety file
       for the Premises and works carried out to them, required by the
       Regulations.

6.9.2  In respect of any works carried out by or on behalf of the Tenant
       or any undertenant or other occupier of the Premises (including any works
       of reinstatement which may be carried out after the end of the Term) to
       which the Regulations apply, to:

       (a)   comply in all respects with the Regulations and procure that any
             person involved in carrying out such works complies with the
             Regulations; and

       (b)   act as the client in respect of those works and serve a declaration
             to that effect on the Health and Safety Executive pursuant to
             Regulation 4 of the Regulations and give a copy of it to the
             Landlord.

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6.9.3 To:

       (a)   maintain and make the File available to the Landlord for inspection
             at all times;

       (b)   on request provide copies of the whole or any part of the File to
             the Landlord; and

       (c)   hand the File to the Landlord at the end of the Term.

6.9.4  To obtain copyright licences which are needed for the Tenant lawfully to
       comply with this clause 6.9 and such licences shall:

       (a)   be granted on a royalty free non exclusive basis;

       (b)   allow the Landlord and any superior landlord and anyone deriving
             title through or under them to take further copies of such
             documents;

       (c)   be obtained without cost;

       (d)   allow any such person to grant sub-licences on similar terms;

6.10   OUTGOINGS, COSTS AND FEES

6.10.1 To pay and discharge all existing and future rates taxes duties charges
       assessments impositions and outgoings whatsoever and whether or not of a
       non-recurring nature (called "OUTGOINGS") which now are or may be charged
       levied assessed or imposed upon the Premises or upon the owner or
       occupier thereof (other than those arising as a result of receipt of Rent
       or of any disposition of or a dealing by the Landlord with the interest
       expectant on the reversion upon the determination of the Term) and to pay
       bear and discharge the proportion properly attributable to the Premises
       of any outgoings as may be charged levied assessed or imposed upon any
       premises of which the Premises form part (such proportion to be properly
       determined by the Landlord's surveyor acting reasonably) and not to make
       any claim for relief against Outgoings payable in respect of the Premises
       without the Landlord's prior written consent, such consent not to be
       unreasonably withheld or delayed.

6.10.2 In the absence of direct assessment on the Premises to repay to the
       Landlord the proportion properly attributable to the Premises (such
       proportion to be properly determined by the Landlord's surveyor acting
       reasonably) within 14 days of demand all charges in respect of gas
       electricity steam soil water telephone electrical impulses and other
       services supplied to or consumed in the Premises.

6.10.3 To pay to the Landlord all proper (and in the case of expenditure in
       clause 6.10.3(d) reasonable) costs charges and expenses (including
       professional advisers' costs and fees and bailiffs' commissions) properly
       incurred by the Landlord or any superior landlord:

       (a)   in or in contemplation of any proceedings under section 146 or 147
             of the Law of Property Act 1925 including the preparation and
             service of notices under that Act (notwithstanding forfeiture is
             avoided otherwise than by relief granted by the Court);

       (b)   in the preparation and service of a schedule of dilapidations at
             any time during or within six months after the Term;

       (c)   in connection with any breach of covenant by or the recovery of
             arrears of Rents due from the Tenant under this Lease; and

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       (d)   in respect of any application for consent required by this Lease
             whether or not such consent is granted or the application is
             withdrawn.

6.11   VAT

6.11.1 OUTPUT TAX

6.11.2 Where this Lease requires the Tenant to pay repay reimburse or provide
       any amount or other consideration in respect of a VAT Supply to the
       Tenant by the Landlord that amount or other consideration will be deemed
       to be exclusive of any VAT chargeable on that VAT Supply (whether by
       virtue of a VAT Election made or to be made or otherwise) and the Tenant
       will when paying or providing the relevant amount or other consideration
       also pay to the Landlord a sum equal to that VAT, provided that it has
       first received a valid tax invoice.

6.11.3 INPUT TAX

       Where this Lease requires the Tenant to pay repay reimburse or provide
       any amount or other consideration in respect of a VAT Supply to the
       Landlord the Tenant will pay to the Landlord a sum equal to any VAT
       charged to the Landlord on that VAT Supply less any part of that VAT for
       which the Landlord obtains credit or which the Landlord is otherwise able
       to recover as input tax.

6.12   GENERAL REQUIREMENTS CONCERNING USE

6.12.1 Not to use any part of the Premises for any noxious noisy or offensive
       trade or business nor for any illegal or immoral act or purpose nor for
       any sale by auction nor for gaming and not to commit any nuisance or do
       anything which causes damage or disturbance to the Landlord or any other
       person.

6.12.2 Not to allow empty containers or rubbish of any description to accumulate
       upon the Premises nor to discharge into any Conduit any deleterious
       matter or any substance which might be or become a source of danger or
       injury to the drainage system of the Premises or any other property or
       person and not to overload or obstruct any Conduits.

6.12.3 Not to use any part of the Premises in such manner as to subject it to
       any strain or interference which is in excess of that which the Premises
       were designed to bear and not to install machinery on the Premises which
       shall cause noise or cause vibration in excess of statutory limits.

6.12.4 Not to do anything on the Premises which might reasonably be expected to
       produce directly or indirectly corrosive fumes or vapours or moisture or
       humidity in excess of that which the Premises were designed to bear.

6.12.5 To give written notice to the Landlord of any defect in the Premises
       which might give rise to an obligation on the Landlord to do or refrain
       from doing any act or thing in order to comply with the duty of care
       imposed on the Landlord pursuant to the Defective Premises Act 1972 and
       at all times to display and maintain all notices which the Landlord may
       from time to time reasonably require to be displayed at the Premises in
       connection with that Act.

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6.12.6 Not to play or use in the Premises any musical instrument loudspeaker
       tape recorder gramophone radio or other equipment or apparatus that
       produces sound that may be heard outside the Premises.

6.12.7 Not to stop up or paint out any windows at the Premises and not to permit
       any encroachment upon the Premises or the acquisition of any new right to
       light passage drainage or other easement over any part of the Premises
       and to give written notice to the Landlord of any threat of such
       encroachment or acquisition as soon as the Tenant becomes aware of it and
       at the Landlord's written request and cost to take such action as the
       Landlord may reasonably require to prevent such encroachment or
       acquisition.

6.12.8 To preserve for the benefit of the Landlord and the Premises and not to
       permit to be prejudiced or abandoned all and any existing rights to light
       doorway path passage drainage pipe or other rights or easements
       appertaining to or reputed to appertain to the Premises and at the
       Landlord's written request and cost to take such action as the Landlord
       may reasonably require to preserve such rights or easements.

6.12.9 To ensure that at all times the Landlord has written notice of the name
       home address and home telephone number of at least two keyholders of the
       Premises.

      PROVIDED THAT notwithstanding the foregoing provisions of this clause
      6.12, the proper use of the Premises by the Tenant for the Permitted Use
      shall not constitute a breach of any of the foregoing provisions.

6.13  SURETY

6.13.1 To procure that any person who has guaranteed to the Landlord the
       Tenant's obligations contained in this Lease joins with the Tenant and
       becomes a party to any Supplemental Document to consent to the Tenant
       entering into such Supplemental Document and to confirm that its
       covenants remain in full force and effect in respect of the Lease as
       varied or amended by such Supplemental Document.

6.13.2 Within 28 days of the death during the Term of any person who has
       guaranteed to the Landlord the Tenant's obligations contained in this
       Lease or of such person becoming bankrupt or having a receiving order
       made against him or being a company passing a resolution to wind up or
       entering into liquidation then to give notice thereof to the Landlord and
       (without prejudice to clause 8.1) if so required by the Landlord at the
       expense of the Tenant within 28 days to procure some other person
       reasonably acceptable to the Landlord to execute a guarantee in respect
       of the Tenant's obligations contained in this Lease in the form set out
       in the Fourth schedule.

6.14  SUPERIOR INTERESTS

      Any provision for consent or approval of the Landlord will be deemed to
      be subject to the consent or approval of all superior landlords which
      shall be subject to provisions for consent or approval which do not
      conflict with whose contained herein and the proper costs and expenses of
      obtaining such consents (whether or not consent is forthcoming) will be
      repaid by the Tenant to the Landlord on demand.

                                       30

<PAGE>

6.15  DEVELOPMENT

      Notwithstanding anything contained in this Lease not to do to or at the
      Premises anything which imposes on the Landlord any liability to pay tax
      under any statute arising from the disposal or development of land and so
      far as the law allows to indemnify the Landlord against all liability for
      any such tax and any loss or damage arising from any development by or for
      the Tenant or any person claiming through or under the Tenant.

6.16  INDEMNITY

      The Tenant will keep the Landlord fully indemnified from and against all
      actions demands proceedings claims damages losses costs expenses and
      liabilities arising directly or indirectly out of the existence state of
      repair or user of the Premises any breach of the Tenant's covenants
      contained in this Lease or any failure to comply with any Act and against
      any liability for any tax levy charge or other fiscal imposition of
      whatsoever nature including penalties and interest on overdue tax (and
      penalties for failure to give appropriate notices and information under
      Acts) for which the Landlord shall be liable as a result of any material
      development carried out on the Premises by the Tenant or its permitted
      underlessees and shall within 14 days of demand pay to the Landlord the
      amount of any such sum.

6.17  COVENANTS IN FREEHOLD TITLE

      To observe and perform the covenants contained or referred to in the Fifth
      Schedule and to pay to the Landlord on demand all proper costs and
      expenses incurred by the Landlord (including professional advisors' fees)
      in complying with any such covenants and to indemnify and keep indemnified
      the Landlord in respect thereof.

6.18  CORPORATE AND FINANCIAL COVENANTS

6.18.1 Polestar Petty Limited (company number 2317911) and the Surety shall
       comply with all the covenants and agreements on its part set out in the
       Seventh Schedule and shall procure that all terms of the Seventh Schedule
       are complied with at all times.

6.18.2 Polestar Petty Limited (company number 2317911) and the Surety shall
       within 30 days of each Test Date produce evidence satisfactory to the
       Landlord that the Financial Covenant Tests have been satisfied, in
       accordance with the terms of the Seventh Schedule.

6.19  REGISTRATION AT HM LAND REGISTRY

6.19.1 The Tenant shall register this Lease and any assignment or other
       registerable disposition of this Lease at Land Registry within one month
       of the date of the grant of this Lease or the date of the instrument of
       the assignment or other disposition requiring registration (as the case
       may be).

6.19.2 The Tenant shall notify the Landlord of completion of the registration at
       Land Registry of the grant, assignment or other registerable disposition
       of this Lease (as the case may be) within one month of the registration
       having been completed.

                                       31

<PAGE>

6.20  ENVIRONMENTAL REQUIREMENTS

6.20.1 The Tenant covenants with the Landlord as follows:

      (a)   to ensure at all times throughout the Term that the Tenant complies
            in all respects with Environmental Law in its use and occupation of
            the Premises and, in particular, but without limitation, that it
            obtains and complies with all Environmental Permits required for the
            storage, use or disposal of any Hazardous Substances at, on or from
            the Premises;

      (b)   not at any time during the Term to cause or permit the deposit,
            spillage or release onto the surface or into the sub-soil of the
            Premises of any Hazardous Substances otherwise than in accordance
            with the terms of an Environmental Permit;

      (c)   not at any time during the Term to do or permit to be done anything
            on the Premises which could cause disturbance to the operation of or
            damage to the fabric of any above ground or under ground storage
            tanks and associated lines or pipe work at the Premises;

      (d)   in the event of a breach of its obligations contained in (a), (b) or
            (c) above, to notify the Landlord immediately in writing of same and
            forthwith and with all due speed and diligence to carry out such
            works of investigation and remediation as may be necessary to remedy
            the consequences of the breach and to reinstate the Premises to
            their condition prior to the occurrence of the breach (taking into
            account at all times all proper requirements of the Landlord with
            regard to the nature and scope of such works) PROVIDED THAT the
            Landlord shall have the option at its sole discretion to assume
            conduct of any such works in which case the Tenant shall reimburse
            the Landlord within seven days of a written demand in respect of all
            properly incurred costs, fees, (including professional fees) and
            expenses incurred in carrying out such works;

      (e)   the Tenant has been provided with a copy of the Report;

      (f)   the Tenant agrees that it will assume full responsibility for
            meeting all liabilities, claims, costs and expenses arising or
            incurred during the Term in respect of or in any way related to the
            presence in, on, over or under the Premises of any Hazardous
            Substances (regardless of when such Hazardous Substances first came
            to be present in, on, over or under the Premises) including
            liability for and the costs of any works of remediation (including
            on-going monitoring) which may be required in order to mitigate or
            prevent a liability under Environmental Law or as may be requested
            by a Competent Authority at any time in the future and that it will
            comply with all requirements of any Competent Authority made at any
            time thereunder;

      (g)   to ensure that it complies in all respects with the requirements of
            the Control of Asbestos at Work Regulations insofar as they relate
            to the Premises within three months of the date of this Lease.

      (h)   within three months of the date of this Lease to provide secondary
            containment around the waste chemical storage area, the compactor
            area and the solvent storage to the reasonable satisfaction of the
            Landlord;

                                       32

<PAGE>

6.21  NOT TO OVERLOAD

      Not to place or keep on in the Premises any heavy articles or structures
      in such position or in such quantity or weight or otherwise in such manner
      howsoever as to overload or cause damage to or be likely to overload or
      cause damage to the Premises.

6.22  MACHINERY

      Not to install or suffer to be installed any machinery upn the Premises or
      any part thereof which shall be unduly noisy or cause dangerous vibrations
      or be a nuisance to the Landlord or the owners or lessees or occupiers of
      any adjoining or neighbouring premises save that the installation upon or
      within the Premises of printing presses and binding equipment in
      compliance with statutory requirements shall not in any event constitute a
      breach of this clause.

6.23  SUPPORT

      Not to do anything or suffer anything to be done on the Premises which
      would remove support from any adjoining land buildings or structures or
      endanger such land buildings or structures in any way whatsoever.

6.24  CAPITAL ALLOWANCES/INDUSTRIAL BUILDING ALLOWANCES

      The Tenant shall give the Landlord any assistance which the Landlord
      reasonably requests to assist it in making and pursuing a claim for
      capital allowances and/or industrial building allowances in respect of the
      Premises

7.    LANDLORD'S OBLIGATIONS

      THE Landlord COVENANTS with the Tenant (but so that no liability shall
      attach to the Landlord in respect of any breach by the Landlord of its
      obligations under this Lease after the reversion immediately expectant on
      the determination of the Term has ceased to be vested in the Landlord)
      that the Tenant paying the Rents reserved and observing and performing its
      covenants and conditions contained in this Lease may peaceably and quietly
      hold and enjoy the Premises without any lawful interruption by the
      Landlord or any person rightfully claiming through under or in trust for
      it.

8.    GENERAL PROVISIONS

      PROVIDED ALWAYS AND IT IS AGREED AND DECLARED as follows:

8.1   RE-ENTRY

      Notwithstanding and without prejudice to any other remedies and powers
      contained in this Lease or otherwise available to the Landlord if:

8.1.1 the Rents reserved or any part thereof are unpaid for 21 days after
      becoming payable whether formally demanded or not; or

                                       33

<PAGE>

8.1.2 any covenant on the Tenant's part or condition contained in this Lease is
      not materially performed or observed and in any event any minor breaches
      of repairing and decorating covenants in this Lease shall not constitute a
      breach for the purpose of this clause 8.1.2; or

8.1.3 in relation to the Tenant (or the Surety) for the time being (being a
      company):

      (a)   it has in respect of it a moratorium come into force under
            section 1(A) and schedule A1 of the Insolvency Act 1986 or its
            directors resolve to make a proposal for voluntary arrangement under
            the Insolvency Act 1986 or it has meetings convened for the approval
            of a voluntary arrangement under the Insolvency Act 1986 or a
            proposal for a voluntary arrangement is made in respect of it under
            the Insolvency Act 1986 or a voluntary arrangement in respect of it
            under the Insolvency Act 1986 is approved; or

      (b)   it or its directors resolve to appoint an administrator of it or to
            apply to court for an administration order in respect of it or an
            application for an administration order in respect of it is made or
            any step pursuant to Insolvency Act 1986 schedule B1 and/or the
            Insolvency Rules 1986 is taken to appoint an administrator to it out
            of court or it enters administration; or

      (c)   it suffers the appointment of a Law of Property Act 1925, court
            appointed or other receiver or receiver and manager, or similar
            officer appointed over or in relation to the whole of its
            undertaking, property, revenue or assets or any part thereof, or any
            person holding security over all or any of its undertaking,
            property, revenue or assets takes possession of them or any part of
            them; or

      (d)   it or its directors resolve to wind-up it up whether as a voluntary
            liquidation or a compulsory liquidation, or they take steps under
            the Insolvency Act 1986 and/or the Insolvency Rules 1986 to wind it
            up voluntarily or to apply to the court for a winding-up order in
            respect of it or it goes into liquidation within the meaning of that
            term under section 247 Insolvency Act 1986 or it has a winding-up
            petition presented against it (save for a winding-up petition which
            is frivolous, vexatious or an abuse of legal process and which is
            withdrawn or dismissed within 7 days of it being served on it; or

      (e)   an application is made under section 425 of the Companies Act 1985
            (as amended) or a proposal is made which could result in such an
            application other than one for the purposes of an amalgamation or
            reconstruction resulting in a solvent corporation and previously
            approved in writing by the Landlord; or

      (f)   it enters or proposes to enter into any composition, compromise,
            moratorium, scheme or other similar arrangement with its creditors
            or any of them, whether or not under the Insolvency Act 1986; or

      (g)   it is dissolved, or is removed from the Register of Companies, or
            ceases to exist (whether or not capable of reinstatement or
            reconstitution); or

      (h)   it is unable to pay or has no reasonable prospect of being able to
            its debts within the meaning of section 123 Insolvency Act 1986, but
            disregarding the references therein to proving it to the court's
            satisfaction; or

                                       34

<PAGE>

      (i)   it is or becomes subject to, takes or has taken against it or in
            relation to it, or any or all of its assets, any equivalent,
            analogous, corresponding or similar finding, steps, process or
            proceeding to those in clauses 8.1.3(a) to 8.1.3(h) inclusive in any
            jurisdiction, whether or not any finding, step, process or
            proceeding has been taken against or in relation to it, or any or
            all of its assets in England and Wales.

8.1.4 in relation to the Tenant (or the Surety) for the time being (being an
      individual or being more than one individual any one of them):

      (a)   it is the subject of a bankruptcy petition or an interim receiver is
            appointed of his property or a bankruptcy order is made against him;
            or

      (b)   it is the subject of an application for an interim order under part
            VIII of the Insolvency Act 1986; or

      (c)   it enters into any composition, scheme, compromise, moratorium or
            other similar arrangement with its creditors or any of them, whether
            or not under the Insolvency Act 1986; or

      (d)   it suffers the appointment of a Law of Property Act 1925, court
            appointed or other receiver or receiver manager, or similar officer
            appointed over or in relation to the whole of its undertaking,
            property, revenue or assets, or any part thereof, or any person
            holding security over all or any of its undertaking, property,
            revenue or assets takes possession of them or any part of them; or

      (e)   it is unable to pay or has no reasonable prospect of being able to
            pay its debts within the meaning of sections 267 and 268 of the
            Insolvency Act 1986; or

      (f)   it is or becomes subject to, takes or has taken against it or in
            relation to it, or any or all of its assets, any equivalent,
            analogous, corresponding or similar finding, step, process or
            proceeding to those in clauses 8.1.4(a) to 8.1.4(e) inclusive in any
            jurisdiction, whether or not any finding, step, process or
            proceeding has been taken against or in relation to it, or any or
            all of its assets in England and Wales;

8.1.5 if the Tenant and/or the Surety fail to comply with the terms of the
      Seventh Schedule, including failure to satisfy the Financial Covenant Test

      then and in any such case it will be lawful for the Landlord at any time
      after any such event to re-enter upon the Premises or any part of the
      Premises in the name of the whole and thereupon this demise will
      absolutely determine but without prejudice to any right of action or
      remedy of either party against the other in respect of any breach
      non-observance or non-performance of any of the covenants or any
      conditions contained in this Lease.

8.2   SERVICE OF NOTICES

8.2.1 Any demand or notice to be served on the Tenant or any Surety under this
      Lease will be validly served if sent by first class post addressed to the
      Tenant or the Surety respectively (and if there is more than one of them
      then any of them) at its registered office or its last known address or at
      the Premises.

8.2.2 Any notice to be served on the Landlord will be validly served if sent by
      first class post addressed to the Landlord at its registered office or its
      last known address.

                                       35

<PAGE>

8.2.3 Any demand or notice sent by post will be conclusively treated as having
      been served 48 hours after posting.

8.3   ADJOINING LAND

      Nothing in this Lease prevents the Landlord and all persons authorised by
      it without requiring any consent from or making any compensation to the
      Tenant from dealing as it or they may think fit with any land or building
      adjacent or near to the Premises or from erecting or suffering to be
      erected on any part of such land any buildings or structures whatsoever
      and making any alterations or additions and carrying out any demolition or
      rebuilding whatsoever which it or they may think fit and (but without
      limitation) notwithstanding that such buildings, alterations or additions
      shall affect or diminish the light or air which may now or at any time
      during the Term be enjoyed by the Premises.

8.4   NO LIABILITY IN DAMAGES

      Except where the same is covered by an insurance policy in the name of the
      Landlord so far as permitted by law the Landlord will not in any
      circumstances incur liability in respect of damage to person or property
      or otherwise howsoever by reason of any act, neglect, default or
      misfeasance of the landlord its servants, employees, agents or independent
      contractors or by reason of any accidental damage which may at any time be
      done to the Premises or to any of the goods, persons or property of the
      Tenant or any other person provided that this clause shall not apply to
      any breach of the Landlord's covenants and obligations in this Lease
      relating to insurance.

8.5   FAILURE TO PERFORM OBLIGATIONS

      Save in respect of its covenant to insure the Premises the Landlord will
      not in any event be liable to the Tenant in respect of any failure of the
      landlord to perform any of its obligations to the Tenant under this Lease
      whether express or implied unless the Tenant has so notified the Landlord
      and the Landlord has failed within a reasonable time to remedy the same
      and then in such case the Landlord will be liable to compensate the Tenant
      only for loss or damage sustained by the Tenant after such reasonable time
      has elapsed.

8.6   STATUTORY COMPENSATION

      Except where any statutory provision prohibits the Tenant's right to
      compensation being reduced or excluded by agreement the Tenant shall not
      be entitled to claim from the Landlord on quitting the Premises or any
      part thereof any compensation under the Landlord and Tenant Act 1954.

8.7   RIGHTS EASEMENTS ETC.

      The operation of section 62 of the Law of Property Act 1925 is excluded
      from this Lease and the only rights granted to the Tenant are those
      expressly set out in this Lease and the Tenant will not by virtue of this
      Lease during the Term acquire or become entitled (by any means whatever)
      to any easement from or over or affecting any other land or premises now
      or at any time after the date of this Lease belonging to the Landlord and
      not comprised in this Lease.

                                       36

<PAGE>

8.8   WAIVER OF RIGHT TO FORFEIT

      That no demand for or acceptance or receipt of any part of the Rents shall
      operate as a waiver by the Landlord of any right which the Landlord may
      have to forfeit this Lease by reason of any breach of covenant by the
      Tenant notwithstanding that the Landlord may know or be deemed to know of
      such breach at the date of such demand acceptance or receipt.

8.9   NO WARRANTY AS TO PLANNING

      No representation or warranty is given or made nor deemed to have been
      given or made by the Landlord as to any matter under the Planning Acts.

8.10  TENANT'S GOODS LEFT IN PREMISES

      If after the Termination Date any property of the Tenant remains in the
      Premises and the Tenant fails at the Termination Date to remove the same
      within 28 days after being requested in writing by the Landlord so to do
      the Landlord may as the agent of the Tenant (and the Landlord is hereby
      appointed by the Tenant to act as such) sell such property and will then
      hold the proceeds of sale (after deducting the costs and expenses of
      removal storage and sale reasonably and properly incurred by it) to the
      order of the Tenant PROVIDED THAT the Tenant will indemnify the Landlord
      against any liability incurred by the Landlord to any third party whose
      property has been sold by the Landlord in the bona fide mistaken belief
      (which will be presumed unless the contrary is proved) that such property
      belonged to the Tenant and was liable to be dealt with as such under this
      clause 8.10 PROVIDED FURTHER THAT if any equipment (including printing
      presses) are in the ownership of or are financed by third parties the
      Landlord will act reasonably in entering in to a waiver letter (in a form
      reasonably approved by the Landlord) at the cost of the Tenant with any
      such third party and any such waiver letter shall provide that the
      Landlord shall not be entitled for the period of six months from and
      including the Termination Date to exercise its rights under this clause
      8.10 in respect of any equipment upon the Premises and the Tenant shall
      use best endeavours to procure that such waiver letters are obtained at
      the cost of the Tenant in respect of any such equipment currently at the
      Premises within three months of the date of this Lease.

8.11  COVENANTS RELATING TO ADJOINING PREMISES

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

8.12  ENTIRE UNDERSTANDING

      This Lease embodies the entire understanding of the parties relating to
      the Premises and to all the matters dealt with by the provisions of this
      Lease.

8.13  LANDLORD AND TENANT (COVENANTS) ACT 1995

      The Landlord and the Tenant declare that this its a new lease for the
      purposes of the Landlord and Tenant (Covenants) Act 1995.

                                       37

<PAGE>

8.14  SEVERANCE

      Each of the clauses of this Lease is distinct and severable from the
      others and if at any time one or more of such provisions is or becomes
      illegal invalid or unenforceable the validity legality and enforceability
      of the remaining provisions will not in any way be affected or impaired.

8.15  GOVERNING LAW AND JURISDICTION

      This Lease shall be governed by and construed in accordance with English
      law and the Landlord the Tenant and the Surety (if any) hereby submit to
      the exclusive jurisdiction of the courts of England and Wales.

8.16  REQUESTS FOR INFORMATION

8.16.1 At any time upon not less than twenty (20) days' prior written request by
       the Landlord to the Tenant the Tenant shall deliver to the Landlord a
       statement in writing, executed by an authorised officer of the Tenant,
       certifying except as otherwise specified, there are no proceedings
       pending or, to the knowledge of the signer, threatened, against the
       Tenant before or by any court or administrative agency which if adversely
       decided, would materially and adversely affect the financial condition
       and operations of the Tenant.

8.16.2 Any such statements by the Tenant may be relied upon by the Landlord,
       any person whom the Landlord notifies the Tenant in its request for the
       statement is an intended recipient or beneficiary of the statement, any
       Mortgagee or its assignees and by any prospective purchaser or
       prospective mortgagee of any of the Premises.

8.17  NON-RECOURSE

      For so long as the reversion immediately expectant on the determination of
      the Term is vested in a member of the WP Carey Group of companies or its
      affiliates, anything contained herein to the contrary, notwithstanding any
      claim based on or in respect of any liability of the Landlord under this
      Lease, shall be enforced only against the Landlord or the Premises and not
      against any other assets, properties or funds of:

8.17.1 any director, officer, member, general partner, shareholder, limited
       partner, beneficiary, employee or agent of the Landlord or any general
       partner of the Landlord or any of its members or general partners (or any
       legal representative, heir, estate, successor or assign of any thereof);

8.17.2 any predecessor or successor partnership or corporation (or other entity)
       of the Landlord or any of its general partners, shareholders, officers,
       directors, members, employees or agents, either directly or through the
       Landlord or its general partners, shareholders, officers, directors,
       employees or agents or any predecessor or successor partnership or
       corporation (or other entity); or

8.17.3 any person affiliated with any of the foregoing, or any director,
       officer, employee or agent of any thereof.

                                       38

<PAGE>

9.    SURETY COVENANTS

      The Surety HEREBY COVENANTS with the Landlord in the terms set out in the
      Fourth Schedule hereto.

10.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      No person who is not a party to this Deed (a "THIRD PARTY") has or shall
      have any right under the Contracts (Rights of Third Parties) Act 1999 to
      enforce any term of this Deed and no consent of any third party shall be
      required under that Act to any cancellation or variation of this Deed.

11.   LAND REGISTRATION ACT 2002

      If the Lease is or should be registered at the Land Registry under the
      Land Registration Act 2002, the Tenant will:

11.1  use its best endeavours that the Tenant or any permitted Assignee is
      registered at the Land Registry as soon as possible;

11.2  use its best endeavours to procure that all rights granted or reserved by
      the Lease or permitted Assignment are properly noted against the affected
      titles; and

11.3  deliver to the landlord, within 10 days of registration, official
      copies of the registered title evidencing that the Tenant or permitted
      Assignee is the registered proprietor of the Lease.

11.4  The Landlord shall not be liable to the Tenant for the Tenant's failure to
      register or protect this Lease or any rights granted by it.

12.   CERTIFICATE

      We certify that there is no agreement for lease to which this Lease gives
      effect.

IN WITNESS the parties to this Lease have executed these presents as a Deed
which is intended to be and is delivered on the date specified in paragraph 1 of
the Particulars but not before.

                                       39

<PAGE>

                                 FIRST SCHEDULE

                                    Premises

All that land known as land at Whitehall Road and Coleman Street, Leeds as the
same is registered at HM Land Registry under Title Numbers WYK611054, WYK563237,
WYK525150, WYK529431, WYK531325 and WYK236001 and (to the extent that the
Landlord is registered at H.M. Land Registry with title to the same) such
interest as the Landlord may have in Laura Street (such land being shown for
purposes of identification only on the Plan edged red) together with all
alterations and improvements to them INCLUDING (without prejudice to the
generality of the foregoing):

1.    all Landlord's Fixtures and Fittings;

2.    all Conduits within those Premises;

3.    all Plant fittings and furnishings;

BUT EXCLUDING

4.    any airspace above the Premises; Provided that with the prior written
      consent of the Landlord (such consent not to be unnecessarily withheld)
      the Tenant may install plant and associated equipment used for the
      purposes of the Tenant's business within such airspace.

5.    all tenant's fixtures fittings plant and equipment as listed in Part 2 of
      the Sixth Schedule.

                                       40

<PAGE>

                                 SECOND SCHEDULE

                          Rights and Easements excepted

The following rights and easements are excepted and reserved out of the Premises
to the Landlord any superior landlord and their respective tenants and the
occupiers of any adjoining or neighbouring premises and all other persons
authorised by the Landlord or any superior landlord or having the like rights
and easements:

The right at any time on Requisite Notice to enter (or during the Tenant's
absence to break and enter) the Premises in order to:

1.1   exercise the rights of entry contained in this Lease; and/or

1.2   inspect or view the condition of the Premises; and/or

1.3   carry out work upon any adjacent premises; and/or

1.4   carry out any repairs or other work or do anything which the Landlord must
      or may carry out or do under the provisions of this Lease.

                                       41
<PAGE>

                                 THIRD SCHEDULE

                           Provisions for rent review

1.    In this schedule the following expressions have the following meanings:

1.1     "RENT REVIEW DATES"

        means the date or dates specified in paragraph 2 below;

1.2     "RELEVANT RENT REVIEW DATE"

        means the Rent Review Date in respect of which the rent is to be
        reviewed.

2.    At each Relevant Rent Review Date the Rent first reserved shall be
      increased by two point five per centum (2.5%) per annum compounded on each
      anniversary of the Date of Commencement of Term such that the Rent first
      reserved payable from each Relevant Rent Review Date shall be as follows:

<TABLE>
<CAPTION>
<S>                    <C>
25 March 2005          (pound)1,208,983.40
25 March 2006          (pound)1,239,207.99
25 March 2007          (pound)1,270,188.18
25 March 2008          (pound)1,301,942.89
25 March 2009          (pound)1,334,491.46
25 March 2010          (pound)1,367,853.75
25 March 2011          (pound)1,402,050.09
25 March 2012          (pound)1,437,101.34
25 March 2013          (pound)1,473,028.88
25 March 2014          (pound)1,509,854.60
25 March 2015          (pound)1,547,600.96
25 March 2016          (pound)1,586,290.99
25 March 2017          (pound)1,625,948.26
25 March 2018          (pound)1,666,596.97
25 March 2019          (pound)1,708,261.89
25 March 2020          (pound)1,750,968.44
25 March 2021          (pound)1,794,742.65
</TABLE>

                                       42
<PAGE>

<TABLE>
<CAPTION>
<S>                    <C>
25 March 2022          (pound)1,839,611.22
25 March 2023          (pound)1,885,601.50
25 March 2024          (pound)1,932,741.54
25 March 2025          (pound)1,981,060.08
25 March 2026          (pound)2,030,586.58
25 March 2027          (pound)2,081,351.24
25 March 2028          (pound)2,133,385.02
25 March 2029          (pound)2,186,719.65
</TABLE>

3.    In respect of all periods of time referred to in this schedule time shall
      be deemed not to be of the essence.

4.    If on the Relevant Rent Review Date there is in force any Act which
      restricts interferes with or affects the Landlord's right to revise the
      rent reserved by this Lease in accordance with the terms of this Lease
      then the Landlord will be entitled once following each removal or
      modification of such Act to serve notice requiring a review of the Rent
      (called an "INTERIM NOTICE") upon the Tenant and from and after the date
      of service of such Interim Notice the Rent will be increased in accordance
      with paragraph 2 and the provisions of this schedule will apply
      accordingly with the substitution of the said date of service for the
      Relevant Rent Review Date.

                                       43
<PAGE>

                                 FOURTH SCHEDULE

                             Form of Surety covenant

The Surety COVENANTS with the Landlord as a primary obligation and on a full and
unqualified indemnity basis as follows:

1.    The Tenant will pay the Rents payable under this Lease on the date on
      which Rents become due and payable and will comply with all the
      obligations and conditions contained in this Lease relating to any other
      matter.

2.    In default of compliance with paragraph 1 above the Surety will pay the
      Rents or (as appropriate) comply with the obligation or condition in
      respect of which the Tenant has defaulted and the Surety will make good to
      the Landlord on demand all costs damage expense and liabilities resulting
      from any such default.

3.    The Tenant will pay the Rents payable pursuant to any authorised guarantee
      agreement given by the Tenant pursuant to clause 6.6.5 (a) on the date on
      which Rents become due and payable and will comply with all obligations
      and conditions contained in any such authorised guarantee agreement
      relating to any other matter.

4.    In default of compliance with paragraph 3 above the Surety will pay the
      Rents (as appropriate) and comply with the obligation or condition in
      respect of which the Tenant has defaulted and the Surety will make good to
      the Landlord on demand all costs damage expense and liabilities resulting
      from any such default.

5.    As and when called upon to do so by either the Landlord or the Tenant the
      Surety will enter into any Supplemental Document for the purpose of
      consenting to the Tenant entering into such Supplemental Document and
      confirming that all covenants by the Surety will remain in full force and
      effect in respect of the Lease as varied or amended by such Supplemental
      Document.

6.    The Surety's liability shall remain in full force and effect and shall not
      be released notwithstanding any of the following it being acknowledged
      that the items in the list below are each separate and independent and not
      to be interpreted in the light of any other item:

6.1     any time or indulgence granted by the Landlord to the Tenant or to any
        other person liable or by the Landlord dealing with exchanging varying
        or failing to perfect or enforce any of its rights and remedies against
        the Tenant or any other person liable;

6.2     any variation of or addition to or reduction from the terms of this
        Lease or any Supplemental Document to which the Surety is a party;

6.3     any non-acceptance of Rents or any of them in circumstances where the
        Landlord has reason to suspect a breach of covenant by the Tenant;

6.4     the occurrence of any of the contingencies specified in clause 8.1 of
        this Lease;

6.5     a surrender of part of the Premises except that the Surety will have no
        liability in relation to the surrendered part in respect of any period
        following the date of surrender;

                                       44
<PAGE>

6.6     any document which has the effect of operating as a deemed surrender and
        re-grant;

6.7     this Lease being forfeited;

6.8     any incapacity or change in the name style or constitution of the
        Tenant;

6.9     any change in the constitution of the Landlord or its absorption in or
        amalgamation with or the acquisition of all or part of its undertaking
        or assets by any other person or any reconstruction or reorganisation of
        any kind; and

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

7.    This guarantee covenant:

7.1     secures the ultimate balance from time to time owing to the Landlord by
        the Tenant and is a continuing security notwithstanding any settlement
        of account or other matter;

7.2     is in addition to any present or future indemnity or guarantee or other
        document containing some obligation to pay discharge or be responsible
        for any indebtedness or liability of the Tenant (a "COLLATERAL
        INSTRUMENT") or right or remedy held by or available to the Landlord;
        and

7.3     will not be in any way prejudiced or affected by the existence of any
        Collateral Instrument rights or remedies or by the Collateral Instrument
        becoming wholly or in part void voidable or unenforceable on any ground
        or by the Landlord compounding with any other person liable.

8.    The Landlord will not be obliged to make any claim or demand on the Tenant
      or to resort to any Collateral Instrument or other means of payment held
      by or available to the Landlord before enforcing the Surety's covenants
      and no action taken or omitted by the Landlord in connection with any
      Collateral Instrument or other means of payment will discharge reduce
      prejudice or affect the liability of the Surety nor will the Landlord be
      obliged to apply any money or other property received or recovered in
      consequence of any enforcement or realisation of any Collateral Instrument
      or other means of payment in reduction of the liabilities which are
      guaranteed by the Surety.

9.    The Surety warrants that it has not taken or received and undertakes that
      until all the liabilities which are guaranteed by the Surety have been
      paid or discharged in full it will not take or receive the benefit of any
      security from the Tenant or any other person in respect of its obligations
      under this guarantee.

10.   Until all the liabilities guaranteed by the Surety have been paid
      discharged or satisfied in full (and notwithstanding payment of a dividend
      in any liquidation or bankruptcy or under any compromise or arrangement)
      the Surety agrees that without the prior written consent of the Landlord
      it will not:

10.1    exercise its rights of subrogation reimbursement and indemnity against
        the Tenant;

                                       45
<PAGE>

10.2    demand or accept repayment in whole or in part of any indebtedness due
        to the Surety from the Tenant or from any other person liable, or demand
        or accept any Collateral Instrument in respect of the same or dispose of
        the same;

10.3    take any step to enforce any right against the Tenant or any other
        person liable in respect of any liabilities guaranteed by the Surety; or

10.4    claim any set-off or counterclaim against the Tenant or any other person
        liable or claim or prove in competition with the Landlord in the
        bankruptcy or liquidation of the Tenant or any other person liable or
        have the benefit of or share in any payment from or composition with the
        Tenant or any other person liable or any other Collateral Instrument
        held by the Landlord for any liabilities guaranteed by the Surety or for
        the obligations or liabilities of any other person liable but so that if
        so directed by the Landlord, it will prove for the whole or any part of
        its claim in the liquidation or bankruptcy of the Tenant on terms that
        the benefit of such proof and of all money received by it in respect of
        such proof shall be held on trust for the Landlord and applied in or
        towards discharge of the liabilities guaranteed by the Surety in such
        manner as the Landlord shall deem appropriate

      Provided Always that the provisions of paragraphs 6 or 7 shall not apply
      where the Surety is a bank or other financial institution.

11.   If contrary to paragraphs 6 or 7.2 the Surety takes or receives the
      benefit of any security or receives or recovers any money or other
      property such security money or other property will be held on trust for
      the Landlord and will be delivered to the Landlord on demand.

12.   The Surety agrees to reimburse the Landlord on demand for all reasonable
      legal and other costs charges and expenses on a full and unqualified
      indemnity basis which may be properly incurred by the Landlord in relation
      to the enforcement of the Surety's covenants.

13.   All payments to be made by the Surety will be made in full without any
      set-off (legal or equitable) condition or counterclaim and subject as
      provided below free and clear of any deductions or withholdings. If at any
      time any applicable law regulation or regulatory requirement or any
      governmental authority monetary agency or central bank requires the Surety
      to make any deduction or withholding in respect of taxes levies duties
      imposts or any charges from any payment due from the Surety the sum due
      from the Surety in respect of such payment shall be increased to the
      extent necessary to ensure that after making such deduction or withholding
      the Landlord receives on the due date for such payment and retains (free
      from any liability in respect of such deduction or withholding) a net sum
      equal to the sum which it would have received had no such deduction or
      withholding been required to be made. The Surety shall indemnify the
      Landlord against any losses or costs incurred by reason of any failure of
      the Surety to make any such deduction or withholding or by reason of any
      increased payment not being made on the due date for such payment. The
      Surety shall promptly deliver to the Landlord any receipts certificates or
      other proof evidencing the amount (if any) paid or payable in respect of
      any deduction or withholding as aforesaid.

14.   Each of the provisions of this guarantee covenant is distinct and
      severable from the others and if at any time one or more of such
      provisions is or becomes illegal invalid or unenforceable the validity
      legality and enforceability of the remaining provisions will not in any
      way be affected or impaired.

                                       46
<PAGE>

15.   The Surety agrees to pay Interest on each amount demanded of it under this
      schedule from 14 days after the date of demand until repayment (as well
      after as before judgment).

16.   If a liquidator or trustee in bankruptcy surrenders or disclaims this
      Lease or if this Lease becomes forfeited the Surety will at the request of
      the Landlord made within the twelve months following that surrender or
      disclaimer or forfeiture (as the case may be) take from the Landlord a
      lease of the Premises for a term equal to the residue of the Term which
      would have remained had there been no surrender or disclaimer or
      forfeiture at the same rents and subject to the same obligations and
      conditions as are contained in this Lease. That lease is to take effect
      from the date of such surrender or disclaimer or forfeiture (as the case
      may be) and in such case the Surety will pay the reasonable costs of that
      new lease and execute and deliver a counterpart of it to the Landlord.

17.   If the Landlord does not require the Surety to take a new lease of the
      Premises under the preceding paragraph 16 the Surety will nevertheless on
      demand pay to the Landlord a sum equal to the Rents which would have been
      payable under this Lease but for the surrender or disclaimer or forfeiture
      (as the case may be) in respect of the period from the date of that
      surrender or disclaimer or forfeiture (as the case may be) until the
      Premises become re-let by the Landlord or until the expiry of the Term
      (whichever occurs first) together with all arrears of Rents outstanding
      under this Lease.

                                       47
<PAGE>

                                 FIFTH SCHEDULE

                     Matters to which the demise is subject

All those matters contained or referred to in the titles registered at HM Land
Registry referred to in the First Schedule.

                                       48
<PAGE>

                                 SIXTH SCHEDULE

                                     PART 1

        Landlord's Fixtures and Fittings, Plant and Machinery

REEL STORE

Fire hoses
Fire alarm system
Emergency lighting
Roller shutter doors
Toilets and sanitaryware
Roller shutter doors
Roof sprinkler system

PETTY HOUSE

Fire hoses
Fire alarm system
Emergency lighting
Gas fired boilers, heating system and control equipment
Goods lift
Toilets and sanitaryware
Lighting
Suspended ceilings
Roller shutter doors

BINDERY

Fire hoses
Fire alarm system
Emergency lighting
Toilets and sanitaryware
Roller shutter doors
Roof sprinkler system

PRESS HALL 1

Fire hoses
Fire alarm system
Emergency lighting
Toilets and sanitaryware
Roller shutter doors
Roof sprinkler system

PRESS HALL 2

Fire hoses
Fire alarm system
Emergency lighting
Toilets and sanitaryware

                                       49
<PAGE>

Roller shutter doors
Roof sprinkler system

                                       50
<PAGE>

                                 SIXTH SCHEDULE

                                     PART 2

         Tenant's Fixtures and Fittings, Plant and Machinery

REEL STORE

Lighting
(No heating system)
Fire extinguishers
Wall protection barriers
Telephone / IT network
Floor coverings
Partitioning
Spotlights
Hand towel dispensers and electric hand dryers
Signs (internal and external)

PETTY HOUSE

Partitioning
Racking
Fire extinguishers
Wall protection barriers
Reception desk
Ground floor computer suite
Partial air conditioning in ground and second floors
Telephone / IT network
Kitchen sinks / units
Hand towel dispensers and electric hand dryers
Window blinds
Fork truck battery charging equipment
Video survellence equipment
Spotlights
Intruder alarm
Floor coverings
Signs (internal and external)
External flagpoles

BINDERY

Lighting
Heating system
Fire extinguishers
Wall protection barriers
Compressed air distribution system
Electrical power distribution panels and transformer
Partitioning
Gantry and crane systems
Telephone / IT network
2 x rapid action doors
Floor coverings

                                       51
<PAGE>

Partial air conditioning
Spotlights
Hand towel dispensers and electric hand dryers
Generator and oil storage tanks
Signs (internal and external)

PRESS HALL 1

Lighting
Heating system
Fire extinguishers
Wall protection barriers
Compressed air distribution system
Electrical power distribution panels and transformer
Partitioning
Battery charging equipment
Telephone / IT network
2 x rapid action doors
3 x chiller units
Platform for afterburner
Mezzanine floor offices
Gas distribution system
Chilled water distribution and equipment
Floor coverings
Spotlights
Hand towel dispensers and electric hand dryers
Hoist, crane and gantry system
Signs (internal and external)

PRESS HALL 2

Lighting
Heating system
Partial air conditioning
Fire extinguishers
Wall protection barriers
Compressed air distribution system and equipment
Electrical power distribution and transformers
Partitioning
Telephone / IT Network
1 x rapid action door
Chilled water distribution and equipment
Floor coverings
Spotlights
Hand towel dispensers and electric hand dryers
Signs (internal and external)

                                       52
<PAGE>

                                SEVENTH SCHEDULE

                        Corporate and Financial Covenants

1.    CORPORATE EXISTENCE

1.1     Polestar Petty Limited (company number 2317911) and the Surety shall
        maintain their corporate existence, continue to have the power and
        authority to own their respective Assets and to conduct the business
        which they conduct and/or propose to conduct (save for the purpose
        (demonstrated to the Landlord's reasonable satisfaction) of
        reconstruction or amalgamation whilst solvent).

1.2     Polestar Petty Limited (company number 2317911) and the Surety shall
        maintain a place of business within the United Kingdom.

1.3     Whilst this Lease is vested in Polestar Petty Limited (company number
        2317911) it shall at all times remain a wholly owned subsidiary of
        Polestar Group Limited PROVIDED THAT a change of control of Polestar
        Petty Limited (company number 2317911) shall only take place in the
        following circumstances:-

        (a)   Where the New Controller is of Investment Grade; or

        (b)   where the prior written approval of the Landlord is obtained to
              the New Controller (such approval not to be unreasonably withheld
              or delayed); or

        (c)   where a Rent Deposit in the sum equivalent to 12 months Rents
              which will be due and payable to the Landlord during the period
              commencing from the date of intended change of control is paid to
              the Landlord and a Rent Deposit Deed is entered into providing for
              such rent deposit to be held for the residue of the unexpired term
              of this Lease (subject to the following paragraph)

1.4

          (a)   If the Tenant wishes to request the release of any Rent Deposit
                held under the terms of the paragraph 1.3(c) it shall not less
                than sixty days prior to the date on which it desires the Rent
                Deposit to be released submit to the Landlord and its Mortgagee
                information regarding the following with respect to the New
                Controller (collectively the "Review Criteria");

                (i)   credit

                (ii)  capital structure

                (iii) management

                (iv)  operating history

                (v)   proposed use of the Premises

                (vi)  risk factors associated with the proposed use of the
                      Premises

                                       53
<PAGE>

                (vii) any other information the Landlord and its Mortgagee may
                      reasonably require in order to permit the Landlord and its
                      Mortgagee to make a prudent business decision.

          (b)   The Landlord shall review the information referred to in the
                preceding sub-paragraph and shall approve or disapprove of the
                release of the Rent Deposit no later than thirty days after
                receipt of all such information.

          (c)   The Landlord shall be deemed to have acted reasonably in
                granting or withholding consent if such grant or withholding is
                based on its review of the Review Criteria applying prudent
                business judgement and the Landlord (applying such judgement to
                the Review Criteria) reasonably believes the New Controller to
                have (in the case of granting its consent) an equivalent or
                superior financial credit-worthiness or (in the case of it
                withholding its consent) an inferior financial credit-worthiness
                to the Party previously exercising Control over Polestar Petty
                Limited.

          (d)   In assessing the strength of the relevant financial
                credit-worthiness the Landlord shall be entitled to have regard
                to the likely future conduct of the New Controller and its
                effect on the strength of the financial credit-worthiness going
                forward including with reference to the proposed use of the
                Premises and the associated risk factors forming part of the
                Review Criteria.

1.5     Polestar Petty Limited (company number 2317911) may substitute for any
        of the Original Surety Companies or any subsequent company substituted
        as a Surety pursuant to this paragraph 1.4 and the Tenth Schedule any
        other company within the Polestar Group (in this paragraph 1.4 referred
        to as the "NEW SURETY") with the prior written consent of the Landlord
        which shall not be unreasonably withheld or delayed where the Assets of
        the company that is to be replaced as a Surety have been transferred to
        the New Surety (demonstrated to the Landlord's reasonable satisfaction)
        FURTHER PROVIDED THAT the company that has been replaced as Surety to
        this Lease by a New Surety shall:

        1.5.1 cease to have any liability as Surety for the purposes of this
        Lease or any supplemental document upon the New Surety entering into the
        Deed of Substitution referred to in paragraph 1.5.3; and

        1.5.2 shall enter into the Deed of Substitution of Surety in the form
        annexed in the Tenth Schedule; and

        1.5.3 procure that the New Surety shall enter into a Deed of
        Substitution of Surety in the form annexed in the Tenth Schedule.

          Provided that in no circumstances shall this clause permit the removal
          of Polestar Group Limited as an Original Surety Company.

2.    BOOKS AND RECORDS

2.1     To keep adequate records and books of account with respect to the
        finances and business of the Tenant's Group generally and with respect
        to the Premises in accordance with accounting standards, principles and
        practices generally accepted in England consistently applied and to

                                       54
<PAGE>

        discuss the finances and business of the Tenant's Group with the
        officers of the Landlord at such reasonable times as may be requested by
        the Landlord.

2.2     To deliver to the Landlord within 30 days of the close of the Tenant's
        financial year draft financial statements of the Tenant.

2.3     To deliver to the Landlord within 120 days of the close of each of the
        Tenant's Group's financial years (or such earlier period as the auditor
        signs off annual audited financial statements) annual audited financial
        statements of the Tenant's Group prepared by a nationally recognised
        firm of independent, suitable, professionally qualified accountants.

2.4     To ensure that all annual financial statements shall be accompanied by
        an opinion of the said accountants stating that (a) there are no
        qualifications as to the scope of the audit and (b) the audit was
        performed in accordance with accounting standards, principles and
        practices generally accepted in England and (c) such statements give a
        true and fair view of the Tenant's Group's financial condition and
        operations at the date and for the year then ended and (d) that the
        Financial Covenant Tests have been satisfied as at the Test Date and (e)
        that the Minimum Tangible Worth Test has been satisfied at all times
        during the 12 month period expiring on the Test Date.

2.5     To furnish the Landlord with a copy of any compliance certificates or
        other information relating to the financial status of Polestar Petty
        Limited (company number 2317911) or the Surety supplied by Polestar
        Petty Limited (company number 2317911) or the Surety to their respective
        banks, lenders, funders or chargees (the "BANK") as soon as reasonably
        practicable following submission of the same to the Bank on the same
        dates that such information is supplied to the Bank and in the case of
        the Surety such information may be summarised in a form approved by the
        Landlord (such approval not to be unreasonably withheld).

2.6     To furnish the Landlord with any other financial information as the
        Landlord shall reasonably require.

2.7     Polestar Petty Limited (company number 2317911) confirms that the
        Landlord shall be permitted to pass any information provided to it under
        the terms of this paragraph 2.7 to any Mortgagee.

3.    TENANT/GUARANTOR FINANCIAL COVENANTS

3.1     Polestar Petty Limited (Company number 2317911) shall within 30 days of
        each Test Date produce evidence satisfactory to the Landlord that the
        Financial Covenant Tests have been satisfied by reference to the draft
        financial statements of the Tenant as at the Test Date which shall be
        subject to final adjustment and confirmation in the annual audited
        financial statements.

3.2     If Polestar Petty Limited (Company number 2317911) has not satisfied all
        of the Financial Covenant Tests on any Test Date:-

3.2.1      the Landlord may require Polestar Petty Limited (Company number
           2317911) to forthwith pay the relevant Rent Deposit (referred to in
           the definition of "Rent Deposit"

                                       55
<PAGE>

           relating to the relevant Financial Covenant Test that has not been
           satisfied) to the Landlord and enter into the Rent Deposit Deed; and

3.2.2      the Landlord shall be entitled to hold the Rent Deposit for a period
           up to and including the next relevant Test Date;

3.2.3      in the event that Polestar Petty Limited (Company number 2317911)
           fails that part of the Financial Covenant Test referred to at
           paragraph 3.2 above on consecutive Test Dates, the Landlord shall be
           entitled to (a) retain the Rent Deposit until such time as Polestar
           Petty Limited (Company number 2317911) satisfies that part of the
           Financial Covenant Test and (b) exercise its rights of re-entry in
           accordance with clause 8.1 of this Lease save that the Landlord shall
           not be entitled to exercise its rights of re-entry in clause 8.1
           solely in relation to failure to satisfy the relevant Financial
           Covenant Test in circumstances where Polestar Petty Limited provides
           a rent deposit in accordance with this paragraph 3 related to such
           relevant Financial Covenant Test; and

3.2.4      in the event that the Landlord holds the Rent Deposit and Polestar
           Petty Limited (Company number 2317911) satisfies that part of the
           Financial Covenant Tests to which the Rent Deposit relates on the
           next relevant Test Date, the Landlord shall repay the Rent Deposit
           (less any sums withdrawn by the Landlord in accordance with the terms
           of the Rent Deposit Deed) to Polestar Petty Limited (Company number
           2317911) in accordance with the terms of the Rent Deposit Deed but
           the provisions of paragraph 3.1 of this Seventh Schedule shall
           continue to apply.

3.3     In the event Polestar Petty Limited (Company number 2317911) fails to
        satisfy the Financial Covenant Tests and does not pay the relevant Rent
        Deposit to the Landlord's satisfaction then the provisions of clause 8.1
        of this Lease shall apply.

4.    POLESTAR GROUP FINANCIAL COVENANTS

4.1     The Surety confirms that all the covenants with the Bank have been
        complied with to date and shall continue to be complied with and as at
        the date hereof the covenants which Polestar Group has with the Bank
        contain the following interest cover ratio covenants and Senior Debt to
        Ebitda covenants applying during the periods outlined:-

<TABLE>
<CAPTION>
                                     EBITDA/                           Senior Debt
                                    Interest                            to EBITDA
<S>                                 <C>                                <C>
31 Mar 2004                           2.25:1                               5.125:1
30 Jun 2004                          2.375:1                                5.00:1
30 Sep 2004                           2.50:1                                4.75:1
31 Dec 2004                           2.50:1                                4.50:1

31 Mar 2005                          2.625:1                               4.375:1
30 Jun 2005                           2.75:1                                4.25:1
30 Sep 2004                           2.75:1                               4.125:1
31 Dec 2005                          2.875:1                               4.125:1

31 Mar 2006                          2.875:1                                4.00:1
30 Jun 2006                            3.0:1                               3.625:1
thereafter on a
rolling 12 month basis               3.125:1                               3.625:1
</TABLE>

                                       56
<PAGE>

4.2     In the event the covenant tests referred to at paragraph 4.1 above are
        adjusted or changed by the Bank from time to time the Surety shall
        comply with such adjusted or revised covenant tests and the Surety shall
        immediately notify the Landlord as soon as it or any member of the
        Polestar Group is informed of such change to the covenant tests.

5.    FORFEITURE

        Subject to the proviso to paragraph 3.2.3, in the event that Polestar
        Petty Limited (Company number 2317911) and the Surety fail to comply
        with the provisions of this Seventh schedule, then clause 8.1.5 of this
        Lease shall apply.

6.    ASSIGNMENT

For the avoidance of doubt, the provisions of this Seventh schedule shall not
bind any assignee of this Lease who has been approved by the Landlord under the
terms of clause 6.6.

                                       57
<PAGE>

                                 EIGHTH SCHEDULE

                         Authorised Guarantee Agreement

DATE

PARTIES

(1)   [                                ] (Company registration No.        ) the
      registered office of which is at                                      (the
      "TENANT").

(2)   [                ] (incorporated and registered in England and Wales under
      company number [                  ]), the registered office of which is at
      [                                ](the "LANDLORD").

RECITALS

(A)   By the Lease the Premises were let to the Tenant for a term from and
      including [   ] , up to and including [   ]

(B)   The reversion immediately expectant on the term created by the Lease
      [remains/is now] vested in the Landlord and the residue of that term
      remains vested in the Tenant.

(C)   The Lease contains a covenant against assignment without the consent of
      the Landlord.

(D)   The Landlord has given its consent to an assignment to the Assignee,
      subject to a condition that the Tenant enters into an agreement
      guaranteeing the performance of the tenant covenants by the Assignee in
      the form of this deed.

IT IS AGREED AS FOLLOWS:

1.    DEFINITIONS

      In this deed the following definitions apply:

      "1995 ACT"

            means the Landlord and Tenant (Covenants) Act 1995;

      "ASSIGNEE"

            means [                                     ] (company registration
            number[                    ]), the registered office of which is at
            [                               ];

                                       58
<PAGE>

      "LANDLORD"

            means the second party to this deed and its successors in title;

      "LEASE"

              means a lease made between PRINTS (UK) QRS 16-1 INC (1), POLESTAR
              PETTY LIMITED (2) and POLESTAR PETTY BINDERY LIMITED POLESTAR
              MAGAZINES & CATALOGUES LIMITED WATMOUGHS (HOLDINGS) LIMITED
              POLESTAR GROUP LIMITED (3) dated 5 May 2004 and any document
              varying or supplemental to such lease whether entered into on or
              before the date of this deed;

      "PRACTITIONER"

              means a liquidator, trustee in bankruptcy, administrator, receiver
              or receiver and manager or any similar officer;

      "PREMISES"

              means land at Whitehall Road and Coleman Street, Leeds as more
              particularly described in the Lease;

      "TENANT"

              means the first party to this deed.

7.    INTERPRETATION

7.1     The table of contents and clause headings are for reference only and do
        not affect the construction of this deed.

7.2     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.

7.3     Obligations owed by or to more than one person are owed by or to them
        jointly and severally.

7.4     Words importing one gender include all other genders and words importing
        the singular include the plural and vice versa.

7.5     References to a person include an individual, a corporation, company,
        firm or partnership or government body or agency, whether or not legally
        capable of holding land.

7.6     Unless otherwise specified, a reference to particular legislation is a
        reference to that legislation as amended, consolidated or re-enacted
        from time to time and all subordinate legislation made thereunder from
        time to time including, without limitation, all orders, regulations,
        consents, licences, notices and bye-laws.

7.7     Unless otherwise specified, a reference to a clause is a reference to a
        clause or sub-clause of this deed.

                                       59
<PAGE>

7.8     The word "SECURITY" includes, without limitation, a guarantee or rent
        deposit.

7.9     Where a sum becomes payable it shall be paid within three working days
        unless otherwise specified by the Landlord in writing.

7.10    The expressions "INTEREST RATE" and "RENT" shall have the meanings given
        to them in the Lease.

7.11    The expression "TENANT COVENANTS" is to be construed consistently with
        the 1995 Act but shall not include any tenant covenant expressed to be
        personal to the Tenant or its predecessors in title.

8.    GUARANTEE

8.1     The Tenant irrevocably and unconditionally guarantees to the Landlord
        that the Assignee will duly and punctually comply with all the tenant
        covenants of the Lease until the Assignee is released therefrom by
        virtue of the 1995 Act.

8.2     The Tenant agrees that if the Assignee, in respect of any time before it
        is released by virtue of the 1995 Act, fails duly and punctually to
        comply with any of the tenant covenants in the Lease, it shall comply
        with such covenant.

9.    PRINCIPAL DEBTOR

      As a separate and independent obligation under this deed the Tenant shall
      be liable to the Landlord as principal debtor in respect of any obligation
      owed by the Assignee pursuant to the tenant covenants of the Lease until
      the Assignee is released by virtue of the 1995 Act.

10.   TENANT AND GUARANTOR TO TAKE A NEW LEASE

10.1    The Tenant agrees that if the Lease, or the obligations of the Assignee
        under it, shall be disclaimed, the Tenant will, if required by the
        Landlord within six months of the Landlord having received notice of the
        disclaimer, take a new lease of the Premises from the Landlord.

10.2    The new lease shall:

10.2.1      be for a term commencing on the date of the disclaimer and be equal
            to the unexpired residue of the term of years granted by the Lease
            (or the residue which would be unexpired but for the disclaimer) as
            at the date of the disclaimer;

10.2.2      reserve a rent equal to the Rent reserved under the Lease
            immediately before the disclaimer, and otherwise be on the same
            terms as the Lease but with no provision for a rent free period, and

10.2.3      take effect from the date of the disclaimer.

10.3    The new lease will take effect subject to the Lease, if and to the
        extent that it is still subsisting, and subject to any underlease or
        other interest created or permitted by the Assignee or its predecessors
        in title.

                                       60
<PAGE>

10.4    The Tenant shall pay the Landlord's reasonable and proper costs (on an
        indemnity basis) in connection with the grant of the new lease and shall
        execute, deliver and pay the stamp duty on a counterpart of it to the
        Landlord.

11.   SUPPLEMENTARY PROVISIONS

11.1    NO DISCHARGE OF THE TENANT OR GUARANTOR

        Without prejudice to sub-section 18(3) of the 1995 Act, the Tenant's
        liabilities under this deed shall be and remain in full force and effect
        and will not be avoided, released, discharged or reduced nor will the
        rights or remedies of the Landlord be prejudiced or affected by any of
        the following:

11.1.1     any time, indulgence or concession granted by the Landlord to the
           Assignee or to any other person who is liable;

11.1.2     the Landlord dealing with, varying or failing to perfect or enforce
           any of its rights or remedies against the Assignee or any other
           person who is liable;

11.1.3     the existence of or dealing with, varying or failing to perfect or
           enforce any security which may be or become available to the
           Landlord;

11.1.4     any act or neglect of the Landlord whereby the benefit of any
           security or any right or remedy against any person who is liable is
           released, lost or diminished;

11.1.5     any variation of, addition to or reduction from the terms of the
           Lease whether or not the same confers or imposes only a personal
           right or obligation;

11.1.6     any invalid or ineffective payment by the Assignee or any other
           person who is liable;

11.1.7     any right to set-off (whether legal or equitable), counterclaim or
           deduction which may have accrued to the Assignee, or Tenant;

11.1.8     any non-acceptance of the Rent or other sums due under the Lease, in
           circumstances in which the Landlord has reason to suspect a breach of
           the tenant's obligations under the Lease;

11.1.9     any waiver by the Landlord of any right to forfeit the Lease;

11.1.10    a surrender of part of the Premises, except that the Tenant will have
           no liability in relation to the surrendered part in respect of any
           period after the date of the surrender;

11.1.11    any death, incapacity, disability or change in the constitution,
           status, or name of the Assignee, or the Tenant, or of any other
           person who is liable or of the Landlord;

11.1.12    any amalgamation or merger by the Landlord or the Assignee with any
           other person, any restructuring or the acquisition of the whole or
           any part of the assets or undertaking of the Landlord or the Assignee
           by any other person;

11.1.13    the Assignee or any other person who is liable entering into any
           arrangement or composition with any of its creditors (whether or not
           such arrangement or composition binds or is expressed to bind the
           Landlord);

                                       61
<PAGE>

11.1.14    the appointment of any Practitioner to, over or in relation to any of
           the assets or undertaking of the Assignee;

11.1.15    any provisions of the Lease being or becoming wholly or in part void,
           voidable or unenforceable by the Landlord against the Assignee or any
           other person;

11.1.16    any other act, omission or thing by virtue of which, but for this
           provision, the Tenant would have been released or discharged from its
           obligations under this deed in whole or in part, or the rights or
           remedies of the Landlord would have been prejudiced or affected,
           other than a release by deed, entered into by the Landlord, in
           accordance with the terms of such deed,

         and the parties acknowledge that each of the matters listed above is
         separate and independent and is not to be interpreted in the light of
         any other.

11.2    WAIVER OF RIGHTS BY THE TENANT

11.2.1     Until all the obligations of the Tenant under this deed have been
           paid, discharged or satisfied irrevocably and in full (and
           notwithstanding payment of a dividend in any liquidation or
           bankruptcy or under any compromise or arrangement), the Tenant agrees
           not, without the consent of the Landlord, to:

           (a)  exercise any rights of reimbursement, indemnity or contribution
                against the Assignee or any other person who is liable;

           (b)  accept repayment in whole or in part of any indebtedness now or
                hereafter due to the Tenant from the Assignee or from any other
                person who is liable;

           (c)  demand or accept any security from the Assignee or any other
                person who is liable in respect of the obligations of the Tenant
                under this deed or in respect of any indebtedness due to the
                Tenant from the Assignee or any other person who is liable, and
                any security received by the Tenant in breach of the above or
                any such security held by the Tenant at the date of the
                instrument of the assignment of the Lease shall be held by the
                Tenant on trust for the Landlord and delivered to the Landlord
                on demand;

           (d)  claim any set-off (whether legal or equitable), counterclaim or
                deduction against the Assignee or any other person who is
                liable;

           (e)  benefit from or seek to benefit from any security or other right
                or remedy now or hereafter held by or accruing to the Landlord
                in respect of the liabilities guaranteed under this deed or to
                exercise any right of subrogation; or

           (f)  claim or prove in competition with the Landlord in the
                liquidation, bankruptcy or arrangement of the Assignee or any
                other person who is liable, or have the benefit of or share in
                any payment or distribution from the same and any money or other
                property received by the Tenant in breach of this shall be held
                by the Tenant on trust for the Landlord and delivered to the
                Landlord on demand.

11.2.2     The obligations of the Tenant under this deed may be enforced by the
           Landlord against the Tenant at its discretion and without enforcing
           or seeking to enforce its rights or remedies against the Assignee or
           any other person who is liable or pursuing any other right or remedy
           or having recourse to any security available to it.

                                       62
<PAGE>

11.3    ULTIMATE BALANCE AND SUSPENSE ACCOUNT

11.3.1     All dividends and moneys received by the Landlord from the Assignee
           or any other person which are not paid into a suspense account and
           which are capable of being applied by the Landlord in satisfaction of
           the liabilities guaranteed under this deed will not prejudice the
           right of the Landlord to recover from the Tenant the ultimate balance
           which, after receipt of such dividends and moneys, may remain owing
           or expressed to be owing to the Landlord.

11.3.2     Any money received in respect of the liabilities guaranteed under
           this deed may be placed to the credit of a suspense account (with a
           view to preserving the rights of the Landlord to prove for the whole
           of its claims against the Assignee or any other person who is liable)
           and/or may be applied in or towards satisfaction of such of the
           liabilities guaranteed under this deed as the Landlord may from time
           to time conclusively determine in its absolute discretion.

11.4    OTHER SECURITY

11.4.1     This deed is in addition to any other security or any other right or
           remedy held by or available to the Landlord from time to time.

11.4.2     The Landlord is under no obligation to take up or to maintain any
           other security in respect of the liabilities guaranteed by this deed.

11.5    SUPPLEMENTAL DOCUMENTS

        As and when called upon to do so by either the Landlord or the Assignee,
        the Tenant shall enter into any document supplemental to the Lease (by
        deed if required) for the purpose of consenting to the Assignee entering
        into such supplemental document.

11.6    COSTS OF ENFORCEMENT

        The Tenant agrees to pay to the Landlord on demand, and on an indemnity
        basis, all proper legal and other costs and expenses and a sum equal to
        all value added tax thereon which may be properly payable by the
        Landlord in relation to the enforcement of the Tenant's obligations in
        this deed.

11.7    INTEREST

        The Tenant agrees to pay interest on each amount due from it under this
        deed, at the Interest Rate for the period starting with the date that
        such amount became due from the Assignee and/or the Tenant (as the case
        may be) until payment (both before and after judgment) but provided that
        the Tenant shall not be liable to pay interest upon interest due from
        the Assignee and paid by the Tenant.

11.8    NO SET-OFF

        All payments to be made under this deed shall be made in full and the
        Tenant shall not claim any allowance in respect of any set-off (whether
        legal or equitable), counterclaim or deduction whatsoever whether
        accruing to the Tenant or to any other person.

                                       63
<PAGE>

11.9    NOTICES

11.9.1     Any notices given in connection with this deed must be in writing and
           will only be validly served if sent by first class post, or
           registered post or by recorded delivery and addressed to the Landlord
           or the Tenant at their address given in this deed or, in the case of
           the Landlord, at such other address as the Landlord has notified to
           the Tenant in writing. A notice sent by post from within the United
           Kingdom and correctly addressed and properly stamped will be
           conclusively treated as having been delivered two working days after
           posting.

11.9.2     The Landlord covenants with the Tenant that it will notify the Tenant
           in writing within 28 days of being informed of the facts bringing the
           Tenant's liability under this Deed to an end.

12.     SCOPE OF THIS DEED

12.1       The provisions of this deed will have effect from the date of the
           instrument of the assignment of the Lease to the Assignee.

12.2       The intention of the parties to this deed is that it should be an
           authorised guarantee agreement within the meaning of the 1995 Act.

12.3       If any provision, or any part of a provision, of this deed has the
           effect of causing this deed not to be an authorised guarantee
           agreement within the meaning of the 1995 Act to any extent, that
           provision or part is to be treated as having been modified (or if
           necessary omitted from this deed) to the extent needed to avoid that
           effect.

12.4       Each of the provisions of this deed is separate and severable from
           the others, and if at any time one or more of the provisions is or
           becomes illegal, invalid or unenforceable (whether wholly or to any
           extent), the legality, validity or enforceability of the remaining
           provisions (or the same provision to any other extent) will not be
           affected or impaired.

12.5       The rights of the Landlord under any clause are without prejudice to
           the rights of the Landlord under any other clause or under the Lease
           or any other security.

12.6       The obligations of or agreements on the part of the Tenant under any
           clause are without prejudice to their obligations or agreements under
           any other clause.

12.7       This deed will enure for the benefit of the Landlord and its
           successors in title without any need for express assignment.

12.8       Unless expressly stated nothing in this deed will create any rights
           in favour of any person pursuant to the Contracts (Rights of Third
           Parties) Act 1999.

                                       64
<PAGE>

                                 NINTH SCHEDULE

                            Form of Rent Deposit Deed

                             Registered on
                             under section 395, Companies Act 1985

DATED

                            PRINTS (UK) QRS 16-1 INC

                                       to

                             POLESTAR PETTY LIMITED

                                      and

                         POLESTAR PETTY BINDERY LIMITED
                     POLESTAR MAGAZINES & CATALOGUES LIMITED
                          WATMOUGHS (HOLDINGS) LIMITED
                             POLESTAR GROUP LIMITED

                                RENT DEPOSIT DEED

                                 supplemental to

                 a lease dated [             ] and made between

           (1) Prints (UK) QRS 16-1 INC (2) Polestar Petty Limited and
         (3)Polestar Petty Bindery Limited, Polestar Magazines &
         Catalogues Limited, Watmoughs (Holdings) Limited, Polestar
         Group Limited

                                   relating to
              Premises at Whitehall Road and Coleman Street, Leeds

                                Nabarro Nathanson
                                   Lacon House
                                 Theobald's Road
                                 London WC1X 8RW

                               Tel: 020 7524 6000

                                       65
<PAGE>

                                RENT DEPOSIT DEED

DATE

PARTIES

(1)   PRINTS (UK) QRS 16-1 INC c/o Colliers CRE Aquis House, 12 Greek Street,
      Leeds LS1 5RV (the "LANDLORD");

(2)   POLESTAR PETTY LIMITED (a company incorporated and registered in England
      and Wales with company registration number 2317911) whose registered
      office is at Marlborough Court, Sunrise Parkway, Linford Wood, Milton
      Keynes Buckinghamshire MK14 6DY (the "TENANT"); and

(3)   POLESTAR PETTY BINDERY LIMITED, POLESTAR MAGAZINES & CATALOGUES LIMITED,
      WATMOUGHS (HOLDINGS) LIMITED and POLESTAR GROUP LIMITED (company
      registration numbers 2647729, 2349434, 49840 and 3489002 respectively)
      whose registered office is at whose registered office is at Marlborough
      Court, Sunrise Parkway, Linford Wood, Milton Keynes Buckinghamshire MK14
      6DY (the "GUARANTOR").

IT IS AGREED AS FOLLOWS:

2.    DEFINITIONS AND INTERPRETATION

2.1     In this deed, unless the context otherwise requires, the following words
        and phrases have the following meanings:

      "ACCOUNT"

            means an interest bearing deposit account with the Bank in the name
            of the Landlord;

      "BANK"

            means a specified bank or institution of the Landlord's choosing;

      "DEFAULT"

            means any failure by the Tenant to pay (whether or not formal demand
            has been made) the whole or any part of the Liabilities;

      "DEPOSIT BALANCE"

            means the sum from time to time standing to the credit of the
            Account including any Interest which has not been paid to the
            Tenant;

                                       66
<PAGE>

      "ENCUMBRANCE"

            means any charge, security, interest or right, whether fixed or
            floating, conferring a priority of payment;

      "INITIAL DEPOSIT"

            means the sum of [                 PLEASE REFER TO THE TERMS OF THE
            LEASE                              ] pounds ((pound)[       ]) plus
            17.5 per cent;

      "INTEREST"

            means any interest accruing to the Account;

      "LEASE"

            means the lease of the Premises dated [                  ] and made
            between (1) the Landlord (2) the Tenant and (3) the Guarantor and
            includes any document supplemental to the Lease whether or not
            expressed to be so;

      "LIABILITIES"

            means the rents or other money including interest payable under the
            Lease or any costs, damages and expenses incurred by or payable to
            the Landlord in consequence of any failure by the Tenant to observe
            and perform any of the tenant's covenants or obligations and the
            conditions contained in the Lease or this deed or in consequence of
            the determination of the Lease before the end of the Term otherwise
            than by agreement;

      "PERMITTED ASSIGNMENT"

            means an assignment of the Lease which is permitted under the terms
            of the Lease or by the Landlord giving consent and which is not an
            excluded assignment as defined in section 11 of the Landlord and
            Tenant (Covenants)Act 1995;

      "PREMISES"

            means the premises known as Whitehall Road, Leeds and more
            particularly described in the Lease;

      "RENT DEPOSIT"

            means an amount equal to [PLEASE REFER TO THE TERMS OF THE LEASE ];

      "TERM"

            means the term granted by the Lease and includes any period of
            continuation or holding over.

2.2     The clause headings in this deed (except the definitions) are for ease
        of reference and are not to be used for the purposes of construing this
        deed.

2.3     References in this deed to clauses or schedules will mean the clauses of
        or the schedules attached to this deed.

2.4     References to the Landlord include its successors in title but
        references to the Tenant and the Guarantor shall mean only the Tenant
        and the Guarantor named in this deed.

                                       67
<PAGE>

2.5     Obligations undertaken by more than one person are joint and several
        obligations.

2.6     Words importing persons include firms companies and corporations and
        vice versa.

2.7     Words importing one gender shall be construed as importing any other
        gender.

2.8     Words importing the singular shall be construed as importing the plural
        and vice versa.

3.    SUPPLEMENTAL DEED

      This deed is supplemental to the Lease.

4.    DEPOSIT

4.1     The Tenant on the date of this deed has paid the Initial Deposit into
        the Account.

4.2     The Deposit Balance is the property of the Tenant but is subject to the
        charge created by CLAUSE 8.2 and shall not be repayable to the Tenant
        otherwise than in accordance with the provisions OF CLAUSE 7.

4.3     The Tenant must at all times maintain the Deposit Balance in a sum
        equivalent to the Rent Deposit.

4.4     If the Deposit Balance is at any time less than the Rent Deposit, the
        Tenant must within five working days of written notice from the Landlord
        (and notwithstanding any dispute of any kind whatsoever as to any
        withdrawal from the Account by the Landlord) deposit in the Account a
        sum equal to the difference between the Deposit Balance and the Rent
        Deposit.

4.5     All bank charges in respect of creation, maintenance, operation and
        closure of the Account shall be payable by the Tenant and if the Tenant
        shall fail to pay them may be withdrawn by the Landlord from the Account
        to meet their payment.

5.    WITHDRAWALS

5.1     The Landlord may at any time withdraw from the Account an amount equal
        to the Liabilities.

5.2     Notice of any withdrawal including the amount withdrawn and reasonable
        details of the relevant Default shall be given by or on behalf of the
        Landlord to the Tenant.

6.    INTEREST

6.1     All Interest earned in respect of the Account shall be paid (net of any
        tax required to be deducted) to the Tenant yearly. No payment of
        Interest shall be made if there is at the date for payment any Default
        or if as a result of the payment the Deposit Balance will be less than
        the Initial Deposit/specified sum.

6.2     The Tenant is responsible for and must pay all tax on the Interest save
        to the extent that such tax may already have been deducted by the
        Landlord.

                                       68
<PAGE>

7.    TRANSFER OF REVERSION

7.1     If the Landlord transfers the reversion immediately expectant upon the
        determination of the Term then the Landlord shall:

7.1.1      assign the benefit of this deed to the transferee of the reversion;
           and

7.1.2      procure that the transferee of the reversion, no later than the date
           of the transfer, covenants in a deed with the Tenant to observe and
           perform the obligations of the Landlord under this deed.

7.2     On delivery of the deed of covenant referred to in CLAUSE 6.1.2 to the
        Tenant the Landlord (being the transferor) will cease to be liable for
        any default in compliance with any provision contained in this deed.

8.    RELEASE OF RENT DEPOSIT

      If the Tenant has fully complied with all the covenants and conditions
      contained in the Lease and in this deed then the Landlord will repay the
      Deposit Balance to the Tenant (or as the Tenant may direct) 10 working
      days after the earliest to occur of the following:

8.1     the Landlord receiving notice of an assignment in accordance with the
        Lease following a Permitted Assignment of the Lease by the Tenant; or

8.2     the expiration or sooner determination of the Term.

8.3     [the occurrence of the relevant release event referred to in the Seventh
        Schedule of the Lease - Note relevant event to be inserted on entry in
        to Rent Deposit Deed].

9.    CHARGE

9.1     The Tenant warrants to the Landlord that at all sums from time to time
        in the Account are and will at all times be free of any Encumbrance
        other than that referred to in CLAUSE 8.2.

9.2     The Tenant with full title guarantee charges by way of fixed charge all
        its interest in the Account and the Deposit Balance as security for the
        payment or reimbursement (as the case may be) to the Landlord of the
        Liabilities.

9.3     The Tenant covenants that it will execute any document or take any
        action the Landlord reasonably requires in order to perfect the security
        referred to in CLAUSE 8.2.

9.4     The security referred to in CLAUSE 8.2 is in addition to and is not to
        merge with, prejudice, affect or be affected by any other security
        interest of the Landlord as regards the Tenant.

10.   GENERAL PROVISIONS

10.1    The Landlord's rights of re-entry contained in the Lease will be
        exercisable on any default by the Tenant in compliance with any
        provision contained in this deed as well as on the happening of any of
        the events mentioned in the Lease.

10.2    The provisions of this deed will not in any way lessen or affect the
        Tenant's or any guarantor's obligations under the Lease or lessen the
        Landlord's rights to take any action or

                                       69
<PAGE>

        proceedings under the Lease in respect of any default by the Tenant in
        complying with any of the covenants or conditions contained in the
        Lease.

10.3    The provisions of the Lease as to service of notices are to apply to
        this deed.

10.4    If any clause or any provision contained within a clause of this deed
        shall be or shall subsequently be found by a court of competent
        jurisdiction to be invalid, void or otherwise unenforceable it shall not
        affect the remainder of this deed which shall remain in full force and
        effect.

11.   GUARANTOR

11.1    The Guarantor consents to the provisions of this deed and confirms that
        the Guarantor's obligations contained in the Lease as supplemented by
        this deed remain in full force and effect.

11.2    The Guarantor covenants with the Landlord as a primary obligation that
        the Tenant or the Guarantor will observe and perform all the obligations
        on the part of the Tenant contained in this deed and in the case of
        default by the Tenant the Guarantor will pay and make good to the
        Landlord on demand all losses, damages, costs and expenses arising from
        such default and will observe and perform all the obligations on the
        part of the Tenant contained in this deed and agrees that no time
        concession or indulgence granted to the Tenant by the Landlord nor any
        variation of the terms of the Lease or of this deed nor any other thing
        by virtue of which but for this provision the Guarantor would have been
        released will in any way release the obligations of the Guarantor to the
        Landlord under this clause or the Lease as supplemented by this deed.

11.3    The Guarantor agrees not without the consent of the Landlord to exercise
        any of its rights of reimbursement or indemnity against the Tenant or
        any other person who is liable and not to seek to benefit from or to
        stand in the place of the Landlord in respect of any security or other
        right or remedy (including without limitation the Rent Deposit) now or
        hereafter held by or accruing to the Landlord in respect of the
        Liabilities.

12.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      Unless expressly stated nothing in this deed will create any rights in
      favour of any person pursuant to the Contracts (Rights of Third Parties)
      Act 1999.

13.   EXECUTION

      IN WITNESS of which the Landlord, the Tenant and the Guarantor have caused
      their Common Seals to be affixed to this deed which is intended to be and
      is delivered the day and year first before written but not before.

                                       70
<PAGE>

Executed as a Deed by [WP Carey]               )
acting by [                              ]     )
pursuant to a power of attorney dated          )
[                                        ]     )
in the presence of:-

Name

Address

Occupation

Counterpart

Executed as a Deed by           )
POLESTAR PETTY LIMITED          )
acting by two Directors or      )
a Director and Secretary        )

                                                        Director

                                                        Director/Seceretary

Executed as a Deed by                   )
POLESTAR PETTY BINDERY                  )
LIMITED acting by                       )
two Directors or a Director and         )
Secretary                               )

                                                         Director

                                                         Director/Secretary

                                       71
<PAGE>

Executed as a Deed by                    )
POLESTAR MAGAZINES &                     )
CATALOGUES LIMITED                       )
acting by two Directors or a             )
Director and Secretary                   )

                                                         Director

                                                         Director/Secretary

Executed as a Deed by                   )
WATMOUGHS (HOLDINGS)                    )
LIMITED acting by two Directors         )
or a Director and Secretary             )

                                                         Director

                                                         Director/Secretary

Executed as a Deed by                   )
POLESTAR GROUP LIMITED                  )
acting by two Directors or a            )
Director and Secretary                  )

                                                         Director

                                                         Director/Secretary

                                       72
<PAGE>

TENTH SCHEDULE

                     Form of Deed of Substitution of Surety

DATED                                                      [  ]

                                 (1) [LANDLORD]

                                  (2) [TENANT]

                          (3) [ORIGINAL SURETY COMPANY]

                                (4) [NEW SURETY COMPANY]

                        DEED OF SUBSTITUTION AND RELEASE
                        in respect of a Lease dated [         ]

               Premises at Whitehall Road and Coleman Street Leeds

                                Nabarro Nathanson
                                   Lacon House
                                 Theobald's Road
                                 London WC1X 8RW

                                Tel: 020 7524 6000

                                       73
<PAGE>

                        DEED OF SUBSTITUTION AND RELEASE

DATE                                    [  ]

PARTIES

(1)   [                                ]whose company registration number
      is [               ] and whose registered office is at [               ]
      (the "LANDLORD");

(2)   [                             ] whose company registration number is
      [        ] and whose registered office is at [                     ] (the
      "TENANT");

(3)   [                             ] whose company registration number is [
                  ] and whose registered office is at [                       ]
      (the "ORIGINAL SURETY COMPANY"); and

(4)   whose company registration number is [        ] whose registered office is
      situate at[                                 ] (the "New SURETY COMPANY").

RECITALS

(A)   This Deed is supplemental to a lease (the "LEASE") dated [               ]
      made between (1) [WP CAREY] (2) POLESTAR PETTY LIMITED (3) POLESTAR PETTY
      BINDERY LIMITED, POLESTAR MAGAZINES & CATALOGUES LIMITED, WATMOUGHS
      (HOLDINGS) LIMITED and POLESTAR GROUP LIMITED whereby the premises briefly
      known as premises at Whitehall Road and Coleman Street, Leeds (the
      "PREMISES") were demised by the Landlord to the Tenant for a term of
      expiring on [       ] subject to the rents and on the terms and conditions
      therein appearing.

(B)   The Original Surety Company joined as a party to the Lease to guarantee to
      the Landlord the payment by the Tenant of the rents reserved by the Lease
      and the performance and observance by the Tenant of the covenants on its
      part contained in the Lease.

(C)   It has been agreed between the New Surety Company and the Original Surety
      Company that the New Surety Company shall offer its own guarantee of the
      covenants under the Lease on the same terms, mutatis mutandis, as and in
      substitution for the guarantee of the Original Surety Company and that the
      New Surety Company shall assume the obligations of the Original Surety
      Company under the Lease.

(D)   The Landlord and the Tenant consent to the substitution of the New Surety
      Company for the Original Surety Company under the Lease.

                                       74
<PAGE>

IT IS HEREBY AGREED AS FOLLOWS:

14.   RELEASE BY THE LANDLORD

      In consideration of the covenant on the part of the New Surety Company
      contained in CLAUSE 2 of this Deed the Landlord unconditionally releases
      and discharges absolutely the Original Surety Company from further
      performance of its obligations under the Lease and all documents and
      agreements supplemental or collateral thereto and from all actions,
      proceedings, damages, costs, claims and demands whatsoever arising out of
      or in respect of the Lease or the Premises or in any other manner whether
      arising prior to, on or subsequent to the date of this Deed.

13.   ACCEPTANCE OF LIABILITY BY THE NEW SURETY COMPANY

      In consideration of the release by the Landlord contained in CLAUSE 1 of
      this Deed the New Surety Company hereby assumes the liabilities of the
      Original Surety Company under the Lease and agrees and covenants with the
      Landlord and the Original Surety Company to perform all the duties and to
      discharge all the obligations of the Original Surety Company under the
      Lease and any agreements supplemental or collateral thereto and to be
      bound by the terms and conditions of the Lease and any agreements
      supplemental or collateral thereto in every way as if it were named
      therein as a party ab initio in place of the Original Surety Company.

14.   ACCEPTANCE BY THE LANDLORD

      The Landlord accepts the liability and guarantee of the New Surety
      Company.

15.   LEASE IN FORCE

      The terms and conditions of this Deed represent the entire agreement
      between the parties relating to the substitution of the New Surety Company
      for the Original Surety Company and except as specifically amended by this
      Deed all the terms and conditions of the Lease and any agreements
      supplemental or collateral thereto remain in full force and effect.

16.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      No person who is not a party to this Deed (a "third party") has or shall
      have any right under the Contracts (Rights of Third Parties) Act 1999 to
      enforce any term of this Deed and no consent of any third party shall be
      required under that Act to any cancellation or variation of this Deed.

IN WITNESS of which this deed has been duly executed and is delivered on the
date written at the beginning of this deed.

                                       75
<PAGE>

Executed as a Deed by                    )
POLESTAR PETTY LIMITED                   )
acting by two Directors or               )
a Director and Secretary                 )

                             [ILLEGIBLE]          Director

                             [ILLEGIBLE]          Director/Secretary

Executed as a Deed by                   )
POLESTAR PETTY BINDERY                  )
LIMITED acting by                       )
two Directors or a Director and         )
Secretary                               )

                             [ILLEGIBLE]          Director

                             [ILLEGIBLE]          Director/Secretary

Executed as a Deed by                   )
POLESTAR MAGAZINES &                    )
CATALOGUES LIMITED                      )
acting by two Directors or a            )
Director and Secretary                  )

                             [ILLEGIBLE]          Director

                             [ILLEGIBLE]          Director/Secretary

                                       76
<PAGE>

Executed as a Deed by                   )
WATMOUGHS (HOLDINGS)                    )
LIMITED acting by two Directors         )
or a Director and Secretary             )

                             [ILLEGIBLE]          Director

                             [ILLEGIBLE]          Director/Secretary

Executed as a Deed by                    )
POLESTAR GROUP LIMITED                   )
acting by two Directors or a             )
Director and Secretary                   )

                             [ILLEGIBLE]          Director

                             [ILLEGIBLE]          Director/Secretary

                                       77<PAGE>

                                                                   EXHIBIT 10.11

                       Dated 5th May 2004

    (1)   PRINTS (UK) QRS 16-1, INC as Borrower

    (2)   NATIONWIDE BUILDING SOCIETY as Original Lender

    (3)   NATIONWIDE BUILDING SOCIETY as Arranger, Agent and Security Trustee

                        FACILITY AGREEMENT
          relating to a (pound)10,500,000 facility

                         MAYER
                         BROWN
                          ROWE
                         & MAW

                         LONDON

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                SUBJECT MATTER                             PAGE
<S>         <C>                                                  <C>
  1.        Definitions and interpretation                         1
  2.        The Facility                                          13
  3.        Application                                           13
  4.        Conditions of Utilisation                             13
  5.        Utilisation                                           15
  6.        Repayment                                             17
  7.        Prepayment and cancellation                           18
  8.        Interest                                              23
  9.        Interest Periods                                      25
 10.        Changes to the calculation of interest                26
 11.        Fees                                                  27
 12.        Tax gross-up and indemnities                          28
 13.        Increased Costs                                       31
 14.        Mitigation by the Lenders                             32
 15.        Indemnities                                           32
 16.        Costs and expenses                                    35
 17.        Representations and warranties                        36
 18.        Information undertakings                              42
 19.        Property undertakings                                 44
 20.        Financial covenants                                   50
 21.        Rent Account and other bank accounts                  53
 22.        General undertakings                                  55
 23.        Events of Default                                     58
 24.        Changes to the Lenders                                62
 25.        Role of the Administrative Parties                    67
 26.        Conduct of business by the Finance Parties            73
 27.        Sharing among the Lenders                             73
 28.        Payment mechanics                                     76
 29.        Set-off                                               78
 30.        Communications                                        78
 31.        Calculations and certificates                         80
 32.        Partial invalidity                                    80
 33.        Remedies and waivers                                  80
 34.        Amendments and waivers                                80
 35.        Counterparts                                          81
 36.        Governing law                                         82
 37.        Enforcement                                           82

SCHEDULE

  1.        The Original Lender                                   83
  2.        Conditions precedent                                  84
  3.        Form of requests                                      90
  4.        The Property                                          93
  5.        Form of Transfer Certificate                          94
  6.        Mandatory Cost formula                                96
</TABLE>

<PAGE>

<TABLE>
<S>                                                               <C>
  7.        Form of Compliance Certificate                        99
</TABLE>

AGREED TERMS DOCUMENTS

  Confirmation of process agent

  Control Agreement re the Rent Account

  Debenture

  Duty of Care Deed

  Fees Letter

  Hedging Strategy Letter

  Legal opinion(s)

  Notices of charge:

  -  to insurers

  -  to tenants

  -  to hedging counterparties

  -  in respect of Purchase Agreements

  -  in respect of Development Agreement

  Rent authority letter

  Shares Charge

  Subordination Deed

<PAGE>

                               FACILITY AGREEMENT

DATE: 5 May 2004

PARTIES:

(1)   PRINTS (UK) QRS 16-1, INC, a company incorporated with limited liability
      in Delaware (registered number 34-1991309) whose principal place of
      business is at c/o W P Carey & Co LLC, 50 Rockefeller Plaza, 2nd Floor,
      New York, New York 10020, United States of America (the "BORROWER");

(2)   NATIONWIDE BUILDING SOCIETY in its capacity as original lender (the
      "ORIGINAL LENDER"); and

(3)   NATIONWIDE BUILDING SOCIETY in its capacities as arranger (in that
      capacity, the "ARRANGER"), as agent for the other Finance Parties (in that
      capacity, the "AGENT") and as security trustee for the Finance Parties (in
      that capacity, the "SECURITY TRUSTEE").

BACKGROUND:

This Agreement sets out the terms on and subject to which the Lenders have
agreed to make available a term loan facility of up to (pound)10,500,000
(ten million, five hundred thousand pounds sterling) to the Borrower for the
purpose of financing or refinancing the purchase of Polestar Petty Site,
Whitehall Road, Leeds.

IT IS AGREED THAT:

                                    SECTION 1

                                 INTERPRETATION

1     DEFINITIONS AND INTERPRETATION

1.1   DEFINITIONS

      In this Agreement:

      "ADMINISTRATIVE PARTIES" means the Arranger, the Agent and the Security
      Trustee and "ADMINISTRATIVE PARTY" means any of them.

      "AFFILIATE" in relation to any person means a Subsidiary of that person, a
      Holding Company of that person or any other Subsidiary of any Holding
      Company of that person, in each case from time to time.

      "AGREED TERMS" in relation to any document means the terms agreed by, and
      initialled for the purpose of identification by or on behalf of, the Agent
      and the Borrower, as amended from time to time with the consent of the
      Borrower and the Agent in writing.

      "AUTHORISATION" means an authorisation, consent, approval, resolution,
      licence, exemption, filing, notarisation or registration.

                                       1

<PAGE>

      "AVAILABILITY PERIOD" means the period from and including the date of this
      Agreement to and including 6 July 2004.

      "BUILDING SOCIETY" means a building society established under or pursuant
      to the Building Societies Act 1986.

      "BUSINESS DAY" means a day (other than a Saturday or Sunday) on which
      banks and building societies are open for general business in London.

      "CASH COLLATERAL ACCOUNT" has the meaning given to it in Clause 20.3(3)(a)
      (Remedying financial covenant breaches).

      "CHANGE OF CONTROL" has the meaning given to it in Clause 7.2(2)
      (Mandatory prepayment (Change of Control)).

      "CHARGED SHARES" means the shares and rights from time to time the subject
      of the Shares Charge.

      "CHARGORS" means the Borrower and the Shareholder and "CHARGOR" means any
      of them.

      "COLLATERAL WARRANTIES" means the "Deeds of Warranty" as defined in the
      Development Agreement.

      "COMMITMENT" in relation to each Lender means the amount set opposite its
      name under the heading "Commitment" in Schedule 1 (The Original Lender)
      and the amount of any other Commitment transferred to it under this
      Agreement to the extent not cancelled, reduced or transferred by it under
      this Agreement.

      "COMPLIANCE CERTIFICATE" means a certificate substantially in the form set
      out in Schedule 7 (Form of Compliance Certificate).

      "DEBENTURE" means the debenture to be entered into in the Agreed Terms by
      the Borrower in favour of the Security Trustee.

      "DEFAULT" means an Event of Default or any event or circumstance specified
      in Clause 23 (Events of Default) which would (with the expiry of a grace
      period, the giving of notice, the making of any determination under the
      Finance Documents or any combination of any of them) be an Event of
      Default.

      "DEVELOPMENT AGREEMENT" means an agreement dated on or about the date of
      this Agreement and made between the (1) Borrower (2) Polestar Petty
      Limited and (3) Polestar Petty Bindery Limited, Polestar Magazines &
      Catalogues Limited, Watmoughs (Holdings) Limited and Polestar Group
      Limited relating to the development of part of the Property.

      "DISPOSAL PROCEEDS HOLDING ACCOUNT" has the meaning given to it in Clause
      7.4(1)(b) (Mandatory prepayment (disposal)).

      "ENVIRONMENT", "ENVIRONMENTAL AUTHORISATION", "ENVIRONMENTAL CLAIM",
      "ENVIRONMENTAL LAWS" AND "ENVIRONMENTAL REMEDIAL ACTION" have the meanings
      given to them respectively in Clause 17.17(4) (Environmental matters).

                                        2
<PAGE>

      "EVENT OF DEFAULT" has the meaning given to it in Clause 23 (Events of
      Default).

      "EXTERNAL HEDGING AGREEMENT" means any derivative or other transaction
      entered into from time to time by the Borrower for the purpose of hedging
      the interest payable under this Agreement (other than the provision of a
      Fixed Rate pursuant to this Agreement).

      "FACILITY" means the term loan facility made available under this
      Agreement as described in Clause 2 (The Facility).

      "FACILITY OFFICE" in relation to a Lender means the office or offices set
      opposite its name under the heading "Facility Office" in Schedule 1 (The
      Original Lender), or, as the case may be, notified by that Lender to the
      Agent in writing on or before the date it becomes a Lender as the office
      or offices through which it will perform its obligations under this
      Agreement, in each case as changed pursuant to Clause 24.2 (Change of
      Facility Office).

      "FEES LETTER" means the fees letter to be sent in the Agreed Terms by the
      Arranger and Agent to the Borrower.

      "FINAL REPAYMENT DATE" means tenth anniversary of the Utilisation Date.

      "FINANCE DOCUMENTS" means:

      (a)   this Agreement;

      (b)   the Debenture, the Shares Charge, the Subordination Deed and any
            duty of care deed entered into pursuant to Clause 19.8(3) (Managing
            Agent);

      (c)   any other document executed by any Chargor creating a Security
            Interest in favour of the Finance Parties;

      (d)   the Fees Letter, the Hedging Strategy Letter; and

      (e)   any other document from time to time designated in writing as a
            Finance Document by the Agent and the Borrower,

      and "FINANCE DOCUMENT" means any of them.

      "FINANCE PARTIES" means the Arranger, the Agent, the Security Trustee and
      the Lenders and "FINANCE PARTY" means any of them.

      "FINANCIAL INDEBTEDNESS" means any indebtedness for or in respect of:

      (a)   moneys borrowed;

      (b)   any amount raised by acceptance under any acceptance credit
            facility;

      (c)   any amount raised pursuant to any note purchase facility or the
            issue of bonds, notes, debentures, loan stock or any similar
            instrument;

                                       3
<PAGE>

      (d)   the amount of any liability in respect of any lease or hire purchase
            contract which would, in accordance with GAAP, be treated as a
            finance or capital lease;

      (e)   receivables sold or discounted (other than any receivables to the
            extent they are sold on a non-recourse basis);

      (f)   any amount raised under any other transaction (including any forward
            sale or purchase agreement) having the commercial effect of a
            borrowing;

      (g)   any derivative transaction entered into in connection with
            protection against or benefit from fluctuation in any rate or price
            (and, when calculating the value of any derivative transaction, only
            the mark to market value shall be taken into account);

      (h)   any counter-indemnity obligation in respect of a guarantee,
            indemnity, bond, standby or documentary letter of credit or any
            other instrument issued by a bank or financial institution; and

      (i)   the amount of any liability in respect of any guarantee or indemnity
            for any of the items referred to in paragraphs (a) to (h) of this
            definition.

      "FIRST RETENTION AMOUNT" means the sum of (pound)950,000 (nine
      hundred and fifty thousand pounds sterling) being the sum retained
      pursuant to Clause 15.1.1 and 15.1.2 of the Development Agreement from the
      Construction Price (as defined in the Development Agreement) payable by
      the Borrower to Polestar Petty Limited pursuant to that agreement.

      "FIXED RATE" in relation to the Loan or a Lender's participation in it
      means a fixed rate applicable pursuant to Clause 8.6(l)(b) (Implementation
      of fixed rate).

      "FIXED RATE REQUEST" means a request for a fixed rate substantially in the
      form of Schedule 3, Part 2 (Form of Fixed Rate Request).

      "FUND" means any investment company, investment scheme or investment fund
      (whether a body corporate, partnership or unincorporated association) in
      any jurisdiction including, but not limited to, a real estate investment
      trust.

      "GAAP" means generally accepted accounting principles in the United States
      of America.

      "HEDGING BREAK COSTS" has the meaning given to it in Clause 15.4(2)
      (Hedging Break Costs indemnity).

      "HEDGING STRATEGY LETTER" means the letter relating to the hedging of
      interest payments under this Agreement to be sent in the Agreed Terms by
      the Borrower to the Agent as amended from time to time with the consent of
      the Agent.

      "HOLDING COMPANY" in relation to any entity means any company or
      corporation of which it is from time to time a Subsidiary.

                                       4
<PAGE>

      "INITIAL VALUATION" in relation to the Property means the valuation of the
      Property being carried out for the Finance Parties by the Valuer in
      accordance with Clause 19.1 (The Initial Valuation).

      "INSTALMENT" has the meaning given to it in Clause 6.1(1) (Instalment
      Payments).

      "INTEREST PAYMENT DATE" means any date on which interest is payable
      pursuant to Clause 8.2 (Payment of interest).

      "INTEREST PERIOD" in relation to the Loan means each period determined in
      accordance with Clause 9 (Interest Periods) and in relation to an Unpaid
      Sum means each period determined in accordance with Clause 8.3 (Default
      interest).

      "LEASE DEPOSIT ACCOUNT" means any security trust account which is the
      subject of a Rent Deposit Deed established pursuant to the Seventh
      Schedule of the Occupational Lease dated on or about the date of this
      Agreement between the Borrower and Polestar Petty Limited.

      "LENDERS" means:

      (a)   the Original Lender; and

      (b)   any bank or financial institution which has become a Party in
            accordance with Clause 24 (Changes to the Lenders),

      which in each case has not ceased to be a Party in accordance with the
      terms of this Agreement and "LENDER" means any of them.

      "LIBOR" in relation to the Loan and any Interest Period means:

      (a)   the applicable Screen Rate; or

      (b)   (if no Screen Rate is available for that Interest Period) the
            arithmetic mean of the rates (rounded upwards to four decimal
            places) as supplied to the Agent at its request quoted by the
            Reference Banks to leading banks in the London interbank market,

      as of 11 a.m. on the first day of that Interest Period for the offering of
      sterling deposits and for a period comparable to that Interest Period.

      "LIBOR BREAK COSTS" has the meaning given to it in Clause 15.3(3) (LIBOR
      Break Costs indemnity).

      "LOAN" means the loan made or to be made under the Facility or the
      principal amount of that loan from time to time outstanding.

      "LOSSES" means losses (including loss of profit), claims, demands,
      actions, proceedings, damages and other payments, costs, expenses and
      other liabilities of any kind.

      "MAJORITY LENDERS" means:

                                       5
<PAGE>

      (a)   if none of the Loan is then outstanding, a Lender or Lenders whose
            Commitments aggregate more than 66 2/3% of the Total Commitments
            (or,if the Total Commitments have been reduced to zero, aggregated
            more than 66 2/3% of the Total Commitments immediately prior to the
            reduction); or

      (b)   at any other time, a Lender or Lenders whose participations in the
            Loan then outstanding aggregate more than 662/3% of the Loan then
            outstanding,

      provided that Majority Lenders must always include any Nationwide Entity
      which is at the relevant time a Lender.

      "MANAGING AGENT" means any managing agent or managing agents of the
      Property which may be appointed from time to time in accordance with
      Clause 19.8 (Managing Agent), being at the date of this Agreement
      Fitzhardinge Plc whose registered office address is 9 Marylebone Lane
      London W1U 1HL trading as Colliers CRE.

      "MANDATORY COST" means the percentage rate per annum calculated by the
      Agent in accordance with Schedule 6 (Mandatory Cost formula).

      "MANUAL" has the meaning given to it in Clause 19.3(1)(b) (Basis of
      valuations).

      "MARGIN" means 1.2% per annum.

      "MARKET VALUE" has the meaning given to it in the Manual (subject to any
      amendment which may be specified by the Agent in the event of a change in
      the Manual after the date of this Agreement).

      "MATERIAL ADVERSE EFFECT" means a material adverse effect on the Property,
      on the business, operations or financial condition of the Borrower, on the
      validity or enforceability of any Finance Document or on the ability of
      the Borrower to comply with its material obligations under the Finance
      Documents.

      "MONEY LAUNDERING REGULATIONS" means all regulations and statutes from
      time to time in force applicable to any Finance Party or any Chargor for
      the prevention of money laundering and financial crime, including any
      requirement of the Financial Services Authority for the identification of
      borrowers and their officers.

      "MONTH" means a period starting on one day in a calendar month and ending
      on the numerically corresponding day in the next calendar month, except
      that in relation to any period of one Month or the last Month of any
      period of two or more Months:

      (a)   (subject to paragraph (c) of this definition) if the numerically
            corresponding day is not a Business Day, that period shall end on
            the next Business Day in the calendar month in which that period is
            to end if there is one, or if there is not, on the immediately
            preceding Business Day;

      (b)   if there is no numerically corresponding day in the calendar month
            in which that period is to end, that period shall end on the last
            Business Day in that calendar month; and

                                       6
<PAGE>

      (c)   if an Interest Period begins on the last Business Day of a calendar
            month, that Interest Period shall end on the last Business Day in
            the calendar month in which that Interest Period is to end.

      "NATIONWIDE ENTITY" means the Society and any of its Affiliates.

      "NET DISPOSAL PROCEEDS" in relation to any disposal means the gross
      proceeds of that disposal (excluding VAT) less reasonable solicitors' and
      agents' fees properly incurred by the relevant Chargor in connection with
      that disposal (including irrecoverable VAT but excluding recoverable VAT).

      "OCCUPATIONAL LEASE" means any lease, underlease, tenancy, licence or
      other right of occupation from time to time created (whether by the
      Borrower or otherwise) or subsisting directly or indirectly out of any
      interest of the Borrower in the Property.

      "PARTY" means a party to this Agreement.

      "PERMITTED SHAREHOLDER CHANGE" has the meaning given to it in Clause
      7.2(3) (Mandatory Prepayment (Change of Control)).

      "PLANNING ACTS" means the Town and Country Planning Act 1990, the Planning
      (Listed Buildings and Conservation Areas) Act 1990, the Planning
      (Hazardous Substances) Act 1990, the Planning (Consequential Provisions)
      Act 1990 and the Planning and Compensation Act 1991, together with all
      other statutes from time to time governing or controlling the use or
      development of land.

      "PROPERTY" means the Property brief details of which are set out in
      Schedule 4 (The Property) (and any other freehold or leasehold property
      which is from time to time designated in writing as forming part of the
      Property by the Security Trustee and the Borrower) and any reference to
      the Property includes all or any part of it.

      "PURCHASE AGREEMENTS" means the purchase agreement in respect of the
      Property made between (1) the Borrower, (2) Polestar Petty Limited and (3)
      Polestar Properties Limited and also the purchase agreement in respect of
      the Property made between (1) the Borrower and (2) Accord Asset Limited
      and "PURCHASE AGREEMENT" shall be construed accordingly.

      "QUALIFYING LENDER" has the meaning given to it in Clause 12.1 (Tax
      definitions).

      "QUARTER" means a period of three months starting on one Quarterly
      Reporting Date and ending on the next Quarterly Reporting Date.

      "QUARTERLY REPORTING DATE" the final Business Day of March, June,
      September or December.

      "REFERENCE BANKS" means the principal London offices of Lloyds TSB Bank
      Plc, Barclays Bank PLC and HSBC Bank Plc and/or any substitute or
      additional reference banks which the Agent, acting reasonably, may specify
      in writing from time to time.

      "RENT ACCOUNT" has the meaning given to it in Clause 21.1(l)(a) (Details
      of bank accounts).

                                       7
<PAGE>

      "RENTAL INCOME" means each amount payable to or for the benefit or account
      of the Borrower in connection with the letting and/or licensing of all or
      any part of the Property, including:

      (a)   rent (and any amount equivalent to rent), however described,
            reserved or made payable, including:

            (i)   any apportionment of rent payable under either Purchase
                  Agreement;

            (ii)  any increase of rent payable by virtue of an offer falling
                  within the proviso of s3(1) Landlord and Tenant Act 1927; and

            (iii) any rent payable by virtue of a determination made by the
                  court under s24(A) Landlord and Tenant Act 1954;

      (b)   sums received by the Borrower from any deposit held as security for
            performance of the obligations of any tenant or other occupier;

      (c)   any other moneys payable under any Occupational Lease or otherwise
            to the Borrower in respect of the occupation and/or usage of the
            Property and every fixture and fitting in or on it;

      (d)   any damages, compensation, settlement, insurance proceeds or
            expenses for or representing loss of rent or interest on it and any
            profits awarded or agreed to be payable as a result of any
            proceedings for the same;

      (e)   any amount payable in consideration for a surrender of or amendment
            to an Occupational Lease; and

      (f)   any interest payable on any sum referred to above and any damages,
            compensation or settlement payable in respect of the same,

      but excluding

      (g)   those amounts (if any) (together with any value added or similar
            taxes) due to the Borrower from any tenants or other occupiers under
            an Occupational Lease by way of contribution to insurance premiums,
            a sinking fund or service charges and any value added tax or similar
            taxes payable on any of the items listed in paragraphs (a)-(f) of
            this definition.

      "RETENTION ACCOUNT" has the meaning given to it in Clause 5.5 (Retention
      Account).

      "RETENTION AMOUNTS" means the First Retention Amount and the Second
      Retention Amount.

      "SCREEN RATE" means the British Bankers' Association Interest Settlement
      Rate for sterling and the relevant period and displayed on the appropriate
      page of the Telerate (or, if the Agent so decides in consultation with the
      Borrower, Reuters) screen. If the agreed page is replaced or service
      ceases to be available, the Agent may specify another page or service
      displaying the appropriate rate after consultation with the Borrower and
      the Lenders.

                                       8
<PAGE>

      "SECOND RETENTION AMOUNT" means the sum of (pound)80,000 (eighty
      thousand pounds sterling) being the sum retained pursuant to Clause 15.1.3
      of the Development Agreement from the Construction Price (as defined in
      the Development Agreement) payable by the Borrower to Polestar Petty
      Limited pursuant to that agreement.

      "SECURED LIABILITIES" has the meaning given to it in the Debenture.

      "SECURITY DOCUMENTS" means any of the documents referred to in paragraphs
      (b) and (c) of the definition of "Finance Documents" and any other
      document from time to time designated in writing as a Security Document by
      the Agent or Security Trustee and the Borrower.

      "SECURITY INTEREST" means a mortgage, charge, assignment, pledge, lien or
      other security interest securing any obligation of any person or any other
      agreement or arrangement having a similar effect.

      "SHAREHOLDER" means MAGS (UK) QRS 16-2 Inc whose registered office is
      Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
      Delaware 19808, County of New Castle, United States of America and any
      Transferee Shareholder as defined in Clause 7.2(3) (Mandatory Prepayment
      (Change of Control)).

      "SHARES CHARGE" means the shares charge to be entered into in the Agreed
      Terms by the Shareholder in favour of the Security Trustee and any share
      charge entered into pursuant to Clause 7.2(3) (Mandatory Prepayment
      (Change of Control)).

      "SOCIETY" means Nationwide Building Society or any Successor of Nationwide
      Building Society.

      "STRUCTURE-NOTE" has the meaning given to it in Schedule 2 (Conditions
      precedent).

      "SUBSIDIARY" means a subsidiary within the meaning of s736 Companies Act
      1985 or a subsidiary undertaking within the meaning of s258 Companies Act
      1985.

      "SUBORDINATION DEED" means the deed of subordination to be entered into in
      the Agreed Terms between (1) the Security Trustee, (2) the Shareholder as
      subordinated lender and (3) the Borrower.

      "SUCCESSOR" has the meaning given to it in Clause 24.7(2) (Transfers by
      Building Societies).

      "TAX" means any tax, levy, impost, duty or other charge or withholding of
      a similar nature (including any penalty or interest payable in connection
      with any failure to pay or any delay in paying any of the same).

      "TAX DEDUCTION" means a deduction or withholding for or on account of Tax
      from a payment under a Finance Document.

      "TAXES ACT" means the Income and Corporation Taxes Act 1988.

      "TITLE CERTIFICATE" has the meaning given to it in Schedule 2 (Conditions
      precedent).

                                       9
<PAGE>

      "TOTAL COMMITMENTS" means the aggregate of the Commitments, being (pound)
      10,500,000 (ten million, five hundred thousand pounds sterling)at the
      date of this Agreement.

      "TRANSFER CERTIFICATE" means a certificate substantially in the form set
      out in Schedule 5 (Form of Transfer Certificate) or any other form agreed
      between the Agent and the Borrower.

      "TRANSFER DATE" in relation to a transfer means the later of:

      (a)   the proposed Transfer Date specified in the Transfer Certificate;
            and

      (b)   the date on which the Agent executes the Transfer Certificate.

      "UNPAID SUM" means any sum due and payable but unpaid by any Chargor under
      the Finance Documents.

      "Utilisation" means the utilisation of the Facility.

      "UTILISATION DATE" means the date of the Utilisation, being the date on
      which the Loan is or is to be made.

      "UTILISATION REQUEST" means the request for the Utilisation substantially
      in the form set out in Schedule 3, Part 1 (Form of Utilisation Request).

      "VALUATION" in relation to the Property means at any time the then most
      recent valuation of the Property pursuant to Clause 19.1 (The Initial
      Valuation) or, as the case may be, Clause 19.2 (Re-valuations).

      "VALUER" means Fitzhardinge Plc whose registered office is at 9 Marylebone
      Lane, London W1U 1HL trading as Colliers CRE, or any other surveyor or
      valuer (being a reputable firm of surveyors or valuers with experience in
      carrying out valuations of properties of a similar type to the Property)
      appointed from time to time by the Agent in consultation with the
      Borrower.

      "VAT" means value added tax as provided for in the Value Added Tax Act
      1994 and any other tax of a similar nature.

      "WP CAREY GROUP" means WP Carey & Co LLC and any of its Affiliates
      (including as at the date of this Agreement, WP Carey International LLC,
      Corporate Institutional Properties Incorporated, Corporate Property
      Associates 12 Incorporated, Corporate Property Associates 14 Incorporated,
      Corporate Property Associates 15 Incorporated, Corporate Property
      Associates 16 - Global Incorporated).

1.2   CONSTRUCTION

(1)   Unless a contrary indication appears, any reference in this Agreement to:

      (a)   THIS AGREEMENT includes the Schedules, which form part of this
            Agreement for all purposes;

      (b)   ASSETS includes present and future properties, revenues and rights
            of every description;

                                       10
<PAGE>

      (c)   a CLAUSE, SECTION or SCHEDULE is to a clause or section of or a
            schedule to this Agreement (as the case may be) and any reference in
            a Schedule to a PARAGRAPH is to a paragraph of that Schedule;

      (d)   a DISPOSAL includes a lease, licence, transfer, sale or other
            disposal of any kind;

      (e)   a FINANCE DOCUMENT or any other agreement or document is a reference
            to that Finance Document or other agreement or document as
            supplemented, otherwise amended, replaced or novated from time to
            time;

      (f)   the masculine, feminine or neuter GENDER respectively includes the
            other genders and references to the SINGULAR include the plural (and
            vice versa);

      (g)   INCLUDING means "including without limitation" (with related words
            being construed accordingly), IN PARTICULAR means "in particular but
            without limitation" and other GENERAL WORDS shall not be given a
            restrictive interpretation by reason of their being preceded or
            followed by words indicating a particular class of assets, matters
            or things;

      (h)   INDEBTEDNESS includes any obligation (whether incurred as principal
            or as surety) for the payment or repayment of money, whether present
            or future, actual or contingent;

      (i)   a PERSON includes any individual, firm, company or other
            corporation, government, state or agency of a state or any
            association, trust or partnership (whether or not having separate
            legal personality) or two or more of them and any reference to any
            PARTY includes its successors in title, permitted assignees and
            permitted transferees;

      (j)   POUNDS, STERLING and (pound) is to the lawful currency from
            time to time of the United Kingdom;

      (k)   a PROVISION OF LAW is to that provision as amended, re-enacted or
            replaced from time to time and includes any subordinated legislation
            in force under it from time to time;

      (l)   a REGULATION includes any regulation, rule, official directive,
            notice, request, code of practice, guideline, demand or decision (in
            each case whether or not having the force of law) of any
            governmental, intergovernmental or supranational body, agency,
            department or regulatory, self-regulatory or other authority or
            organisation;

      (m)   a RIGHT includes any estate, interest, claim or other right of any
            kind, both present and future; and

      (n)   a TIME OF DAY is to London time.

(2)   The index and Section, Clause, Schedule and Paragraph headings are for
      ease of reference only and shall not affect the meaning of this Agreement.

                                       11
<PAGE>

(3)   Unless a contrary indication appears, a term used in any other Finance
      Document or in any communication given under or in connection with any
      Finance Document has the same meaning in that Finance Document or
      communication as in this Agreement.

(4)   A Default is "CONTINUING" if it has not been remedied or waived.

1.3   THIRD PARTY RIGHTS

(1)   A person who is not a Party has no right under the Contracts (Rights of
      Third Parties) Act 1999 to enforce or enjoy the benefit of any term of
      this Agreement. There is an exception to this in Clause 25.10(2)
      (Exclusion of liability).

(2)   Notwithstanding Clause 25.10(2) (Exclusion of liability) and any other
      term of any Finance Document, the consent of any person who is not a Party
      is not required to rescind or amend this Agreement at any time.

1.4   NO MEMBERSHIP OF THE SOCIETY

      No party to this Agreement or any of the Finance Documents shall acquire
      any membership rights, title or interest in the Society by virtue of
      entering into any of the Finance Documents or, in the case of the
      Borrower, by virtue of borrowing the Loan.

                                       12
<PAGE>

                                    SECTION 2

                                  THE FACILITY

2.    THE FACILITY

2.1   THE FACILITY

      Subject to the terms of this Agreement, the Lenders make available to the
      Borrower a term loan facility in an aggregate amount equal to the Total
      Commitments.

2.2   FINANCE PARTIES' RIGHTS AND OBLIGATIONS

(1)   The obligations of each Finance Party under the Finance Documents are
      several. Failure by a Finance Party to perform its obligations under the
      Finance Documents does not affect the obligations of any other Party under
      the Finance Documents. No Finance Party is responsible for the obligations
      of any other Finance Party under the Finance Documents.

(2)   The rights of each Finance Party under or in connection with the Finance
      Documents are separate and independent rights and any debt arising under
      the Finance Documents to a Finance Party from a Chargor shall be a
      separate and independent debt.

(3)   A Finance Party may, except as otherwise stated in the Finance Documents,
      separately enforce its rights under the Finance Documents.

3.    APPLICATION

3.1   APPLICATION

      Subject to Clause 5.4 (Application of the Loan to pay fees, etc), the
      Borrower shall apply all amounts borrowed by it under the Facility towards
      the financing or refinancing the purchase of the Property. Until it does
      so, it shall hold those amounts on trust for the Original Lender to apply
      it in that way.

3.2   MONITORING

      No Finance Party is bound to monitor or verify the application of any
      amount borrowed pursuant to this Agreement.

4.    CONDITIONS OF UTILISATION

4.1   INITIAL CONDITIONS PRECEDENT

(1)   The Original Lender will only be obliged to comply with Clause 5.3
      (Participation) if it has received all of the documents and other items
      listed in Schedule 2 (Conditions precedent) in form and substance
      satisfactory to the Original Lender. The Original Lender shall notify the
      Borrower promptly upon being so satisfied.

(2)   If the Original Lender grants a waiver in respect of any document or other
      item referred to in Clause 4.1(1) subject to conditions, then the Borrower
      shall ensure that

                                       13
<PAGE>

      those conditions are fulfilled within the period which the Original Lender
      specifies to the Borrower.

4.2   FURTHER CONDITIONS PRECEDENT

      The Original Lender will only be obliged to comply with Clause 5.3
      (Participation) if on the date of the Utilisation Request and on the
      proposed Utilisation Date:

      (a)   no Default is continuing or would result from the making of the
            Loan; and

      (b)   the representations to be made by the Borrower on the Utilisation
            Date pursuant to Clause 17.19 (Repetition) are true in all material
            respects.

                                       14
<PAGE>

                                    SECTION 3

                                   UTILISATION

5.    UTILISATION

5.1   DELIVERY OF THE UTILISATION REQUEST

(1)   The Borrower may utilise the Facility by delivery to the Original Lender
      of the duly completed Utilisation Request not later than 12 noon on the
      Business Day being two Business Days before the proposed Utilisation Date.

(2)   The Facility is only available by way of a single borrowing.

(3)   If and to the extent that the Facility has not been fully utilised prior
      to the expiry of the Availability Period, it will lapse.

5.2   COMPLETION OF THE UTILISATION REQUEST

      The Utilisation Request will, once served, be irrevocable. It will not be
      regarded as having been duly completed unless:

      (a)   the proposed Utilisation Date is a Business Day within the
            Availability Period which is, or immediately precedes, the proposed
            date for completion pursuant to the Purchase Agreements; and

      (b)   the amount of the Loan is at least (pound) 5,000,000 and does
            not exceed the Total Commitments.

5.3   PARTICIPATION

      Upon receipt of a Utilisation Request complying with the terms of this
      Agreement, the Original Lender shall make the amount of the Loan available
      to the Borrower on the Utilisation Date.

5.4   APPLICATION OF THE LOAN TO PAY FEES, ETC

      The Borrower irrevocably authorises the Original Lender to apply the Loan
      (to the extent the Original Lender considers appropriate) on the
      Borrower's behalf in payment of:

      (a)   any fees payable under the Fees Letter;

      (b)   any stamp duty or HM Land Registry fees payable in respect of the
            Purchase Agreements or the Security Documents; and

      (c)   any other amounts payable under Clauses 12.5 (Stamp Taxes) and 16.1
            (Transaction expenses).

5.5   RETENTION ACCOUNTS

(1)   The Borrower irrevocably authorises the Original Lender to deposit the
      First Retention Amount and the Second Retention Amount out of the Loan on
      the

                                       15
<PAGE>

      Borrower's behalf into a solicitors account designated for this purpose by
      the Agent (a "RETENTION ACCOUNT").

(2)   The Borrower undertakes to procure that the Retention Amounts shall be
      held strictly to the order of the Lenders by such firm of solicitors or
      other third party and on such terms as the Agent may approve.

(3)   The Borrower may request the following releases from the Retention Account
      by notice in writing to the Agent to be given no later than 12 noon on the
      Business Day being two Business Days before the proposed date of such
      release:

      (a)   an amount up to or equal to the First Retention Amount may be paid
            to Polestar Petty Limited towards consideration payable by the
            Borrower to Polestar Petty Limited under Clause 15.3.1 or 15.3.2 of
            the Development Agreement; and

      (b)   an amount up to or equal to the Second Retention Amount may be paid
            to Polestar Petty Limited pursuant to Clause 15.3.3 of the
            Development Agreement.

(4)   If and to the extent that the Agent is satisfied (acting reasonably) that
      an amount requested to be released pursuant to Clause 5.5(3) is then due
      and payable under Clause 15 of the Development Agreement and that the
      amount of the balance of the Retention Amounts after any such release is
      sufficient to meet all future obligations pursuant to clause 15 of the
      Development Agreement then the Agent shall authorise such release provided
      that on the date of the request and on the date of the proposed release
      (each in accordance with Clause 5.5(3)) no Event of Default is continuing
      or would result from the relevant release. For the avoidance of doubt, the
      Agent shall be entitled to require information to be provided to it by the
      Valuer and/or building surveyor (in each case at the Borrower's cost)
      pursuant to this Clause 5.5(4) to indicate whether amounts are at any time
      due and payable under Clause 15 of the Development Agreement, and the
      amounts that may in the future be due and payable under Clause 15 of the
      Development Agreement.

(5)   If and to the extent that:

      (a)   the aggregate of all amounts applied by the Agent pursuant to Clause
            5.5(3)(a) between the date of this Agreement and 30 November 2004 is
            less than the First Retention Amount then the Agent may, on or after
            that date, apply all or part of such excess on behalf of the
            Borrower towards prepayment of the Loan pursuant to Clause 7.5
            (Voluntary prepayment or cancellation) or at its discretion release
            all or part of such excess to the Borrower; and

      (b)   the aggregate of all amounts applied by the Agent pursuant to Clause
            5.5(3)(b) between the date of this Agreement and 31 May 2006 (or
            such later date as may be agreed between the Agent and the Borrower)
            is less than the Second Retention Amount then the Agent may, on or
            after that date, apply all or part of such excess on behalf of the
            Borrower towards prepayment of the Loan pursuant to Clause 7.5
            (Voluntary prepayment or cancellation) or at its discretion release
            all or part of such excess to the Borrower.

                                       16
<PAGE>

                                    SECTION 4

                     REPAYMENT, PREPAYMENT AND CANCELLATION

6.    REPAYMENT

6.1   INSTALMENT PAYMENTS

(1)   The Borrower shall, with effect from the first Interest Period, pay to the
      Agent for distribution to the Lenders on the last day of each Interest
      Period in each year an instalment in respect of the Loan (each instalment
      being an "INSTALMENT").

(2)   The amount of each Instalment payable on the last day of any Interest
      Period shall be as indicated below:

<TABLE>
<CAPTION>
INSTALMENT DUE ON THE LAST DAY OF EACH       INSTALMENT AMOUNT (DUE ON THE LAST
INTEREST PERIOD FALLING IN THE PERIOD        DAY OF EACH INTEREST PERIOD)
<S>                                          <C>
From the date of this Agreement until the               (pound)15,750
first anniversary of the date of
the Utilisation Date

From the first anniversary of the                       (pound)21,000
Utilisation Date until the second
anniversary of the Utilisation Date

From the second anniversary of the                      (pound)28,875
Utilisation Date until the third
anniversary of the Utilisation Date

From the third anniversary of the                       (pound)34,125
Utilisation Date until the fourth
anniversary of the Utilisation Date

From the fourth anniversary of the                      (pound)44,625
Utilisation Date until the fifth
anniversary of the Utilisation Date

From the fifth anniversary of the                       (pound)55,125
Utilisation Date until the sixth
anniversary of the Utilisation Date

From the sixth anniversary of the                       (pound)63,000
Utilisation Date until the seventh
anniversary of the Utilisation Date

From the seventh anniversary of the                     (pound)73,500
Utilisation Date until the eighth
anniversary of the Utilisation Date
</TABLE>

                                       17
<PAGE>

<TABLE>
<S>                                                        <C>
From the eighth anniversary of the                         (pound)77,375
Utilisation Date until the ninth
anniversary of the Utilisation Date

From the ninth anniversary of the                          (pound)86,625
Utilisation Date until the tenth
anniversary of the Utilisation Date
</TABLE>

6.2   REPAYMENT OF THE LOAN

      The Borrower shall repay the remaining balance of the Loan in full on the
      Final Repayment Date by payment to the Agent for distribution to the
      Lenders, together with accrued interest and all other amounts payable
      under this Agreement.

6.3   NO REBORROWING

      The Borrower may not reborrow any part of the Facility which is repaid.

7.    PREPAYMENT AND CANCELLATION

7.1   MANDATORY PREPAYMENT (ILLEGALITY)

      If it becomes unlawful in England and Wales, the United States of America
      (either as a matter of Federal or State law) or in any other jurisdiction
      agreed between the Borrower and the Agent as being an "APPLICABLE
      JURISDICTION" for the purposes of the Finance Documents for a Lender to
      perform any of its obligations as contemplated by this Agreement or to
      fund or maintain its participation in the Loan, then:

      (a)   that Lender shall promptly notify the Agent upon becoming aware of
            that event; and

      (b)   the Borrower shall prepay that Lender's participation in the Loan on
            the first Interest Payment Date occurring after the Agent has
            notified the Borrower or, if earlier, the date specified by the
            Lender in the notice delivered to the Agent (being no earlier than
            the last day of any applicable grace period permitted by law).

7.2   MANDATORY PREPAYMENT (CHANGE OF CONTROL)

(1)   If a Change of Control occurs, then:

      (a)   the Borrower shall promptly notify the Agent upon becoming aware of
            that event; and

      (b)   if the Majority Lenders so require, the Agent shall, by not less
            than five Business Days' notice to the Borrower, require prepayment
            of the Loan at the end of the notice period. If the Agent does so,
            then the Borrower shall at the end of the notice period immediately
            prepay the Loan.

(2)   For the purpose of this Agreement, "CHANGE OF CONTROL" means any change
      in:

                                       18
<PAGE>

      (a)   the direct or indirect legal or beneficial ownership of any of the
            shares in the Borrower save pursuant to a Permitted Shareholder
            Change; or

      (b)   the management of the Borrower save where the management of the
            Borrower remains within a Fund exclusively controlled by the WP
            Carey Group.

(3)   For the purpose of this Agreement, "PERMITTED SHAREHOLDER CHANGE" means
      any transfer of the Charged Shares by the Shareholder provided that:

      (a)   the proposed transferee of the Charged Shares (the "TRANSFEREE
            SHAREHOLDER") is a member of the WP Carey Group or is another Fund
            exclusively controlled by the WP Carey Group; and

      (b)   the Transferee Shareholder provides evidence satisfactory to the
            Lenders to satisfy all Money Laundering Regulations in relation to
            the identity and source of funds utilised by the Transferee
            Shareholder by way of consideration for the transfer of the Charged
            Shares; and

      (c)   the Transferee Shareholder enters into a charge over shares in
            substantially the same terms as the Shares Charge and provides such
            evidence that the Lenders may require in relation to the due
            execution and authorisation of such charge over shares (including
            the provision of legal opinions from lawyers approved by the
            Lenders).

7.3   MANDATORY PREPAYMENT (COMPULSORY PURCHASE)

      The Borrower shall ensure that any amount payable to any Chargor under a
      compulsory purchase order for all or any part of the Property is paid
      directly to the Agent for the account of the Lenders in prepayment of the
      whole or, as the case may be, part of the Loan. Following any such
      prepayment the amount of each Instalment will be recalculated accordingly.

7.4   MANDATORY PREPAYMENT (DISPOSAL)

(1)   Immediately on the completion of any sale or other disposal of all or any
      part of the Property permitted pursuant to this Agreement, the Borrower
      shall pay (or procure the payment of) the Net Disposal Proceeds:

      (a)   to the Agent for distribution to the Lenders in partial prepayment
            of the Loan. Following any such prepayment the amount of each
            Instalment will be recalculated accordingly; or

      (b)   if the Borrower so requests and the Agent (acting reasonably taking
            into account the amount of administrative work involved and the
            potential benefit to the Borrower) agrees, into an account (a
            "DISPOSAL PROCEEDS HOLDING ACCOUNT") designated for this purpose by
            the Agent, the Agent's current intention being that any Disposal
            Proceeds Holding Account will be a business deposit account (with
            associated treasury account) in the name of the Borrower with the
            Society.

(2)   If payment is to be made into a Disposal Proceeds Holding Account, then
      the Borrower shall forthwith on the Agent's request:

                                       19
<PAGE>

      (a)   enter into any documentation required by the Agent to grant security
            over the Disposal Proceeds Holding Account and all rights relating
            to it to the Security Trustee for the Finance Parties; and

      (b)   provide any legal opinions and other supporting documentation
            required by the Agent in connection with the deposit, the Disposal
            Proceeds Holding Account and the security over it referred to in
            Clause 7.4(2)(a), in each case in form and substance satisfactory to
            the Agent.

(3)   The Borrower shall not be entitled to withdraw any amount deposited in any
      Disposal Proceeds Holding Account, but the Agent shall be entitled to
      apply that amount (and the interest earned on it) in or towards prepayment
      of the Loan on the next Interest Payment Date after they were credited to
      the Disposal Proceeds Holding Account.

7.5   VOLUNTARY PREPAYMENT OR CANCELLATION

(1)   The Borrower may:

      (a)   if it gives the Agent not less than 28 Business Days' (or such
            shorter period as the Majority Lenders may agree) prior notice,
            prepay the whole or any part of the Loan (but, if in part, in
            minimum amount of (pound)500,000); or

      (b)   if Clause 20.3 (Remedying financial covenant breaches) applies,
            prepay the Remedy Amount in accordance with Clause 20.3(2).

(2)   The Borrower may prior to the expiry of the Availability Period if it
      gives the Agent not less than 10 Business Days notice (or such shorter
      period as the Majority Lenders may agree) prior notice cancel the whole or
      any part (being a minimum amount of (pound)500,000) of the
      Commitment that has not been the subject of a Utilisation Request. Any
      cancellation under this Clause shall reduce the Commitments of the Lenders
      rateably.

7.6   RIGHT OF PREPAYMENT IN RELATION TO A SINGLE LENDER

(1)   If:

      (a)   any sum payable to any Lender by a Chargor is required to be
            increased under Clause 12.2 (Tax gross-up); or

      (b)   any Lender claims indemnification from a Chargor under Clause 12.3
            (Tax indemnity) or Clause 13.1(1) (Increased Costs),

      then the Borrower may, whilst the circumstance giving rise to the
      requirement or indemnification continues, give the Agent notice of its
      intention to prepay that Lender's participation in the Loan.

(2)   On the first Interest Payment Date after the Borrower has given notice
      under Clause 7.6(1) (or, if earlier, the date specified by the Borrower in
      that notice), the Borrower shall repay that Lender's participation in the
      Loan. Following any such repayment the amount of each Instalment will be
      recalculated accordingly.

                                       20
<PAGE>

7.7   MISCELLANEOUS PREPAYMENT PROVISIONS

(1)   Any notice of prepayment given by any Party under this Clause 7 shall be
      irrevocable and, unless a contrary indication appears in this Agreement,
      shall specify the date or dates upon which the relevant prepayment is to
      be made and the amount of that prepayment.

(2)   Any prepayment under this Agreement shall be made to the Agent for
      distribution to the relevant Lender or Lenders.

(3)   Any prepayment under this Agreement shall be made together with:

      (a)   accrued interest on the amount prepaid;

      (b)   any LIBOR Break Costs and any Hedging Break Costs payable as a
            result of the prepayment;

      (c)   a prepayment fee of 0.25% of the amount prepaid, if the prepayment
            is made on or before the third anniversary of the Utilisation Date
            unless the prepayment is made pursuant to Clauses 5.5(5), 7.1, 7.3
            or 7.6 in which case this paragraph (c) will not apply.

      (d)   any other amount then due and payable under the Finance Documents.

(4)   The Borrower may not reborrow any part of the Facility which is prepaid.

(5)   The Borrower shall not repay or prepay all or any part of the Loan except
      at the times and in the manner expressly provided for in this Agreement.

(6)   If the Agent receives a notice under this Clause 7, then it shall promptly
      forward a copy of that notice to either the Borrower or each affected
      Lender, as appropriate.

(7)   Any prepayment under this Agreement shall be applied towards reduction of
      the Instalments and the balance of the Loan to be repaid pursuant to
      Clause 6.2 (Repayment of the Loan) pro-rata. Following any such
      prepayment, the amount of each instalment will be recalculated
      accordingly.

7.8   CANCELLATION

(1)   If pursuant to the terms of this Agreement the Borrower prepays or becomes
      under an obligation to prepay all or part of a Lender's participation in
      the Loan, then the amount of the Facility shall be reduced and the
      Commitment of that Lender cancelled by the amount of the prepayment.

(2)   If pursuant to the terms of this Agreement the Borrower otherwise prepays
      or becomes under an obligation to prepay all or part of the Loan, then the
      amount of the Facility shall be reduced by, and the Commitment of each
      Lender shall be cancelled pro rata in an aggregate amount equal to, the
      amount of the prepayment.

(3)   If an event or circumstance occurs prior to Loan being drawn which would,
      if the Loan had been drawn, have resulted in the Borrower becoming under
      an obligation to

                                       21
<PAGE>

      prepay all or part of the Loan or of a Lender's participation in it, then
      Clause 7.8(1) or (2), as appropriate, shall apply as if the Loan had been
      drawn in full.

(4)   No amount of the Total Commitments, or the Commitment of any Lender,
      cancelled under this Agreement may be subsequently reinstated.

                                       22
<PAGE>

                                   SECTION 5

                              COSTS OF UTILISATION

8.    INTEREST

8.1   CALCULATION OF INTEREST

      The rate of interest on the Loan for each Interest Period is the
      percentage rate per annum which is the aggregate of:

      (a)   the Margin;

      (b)   either:

            (i)   if and to the extent that during that Interest Period a Fixed
                  Rate applies to all or part of the Loan pursuant to Clause 8.6
                  (Implementation of fixed rate), the Fixed Rate; or

            (ii)  if and to the extent that a Fixed Rate does not so apply, the
                  LIBOR; and

      (c)   the Mandatory Cost, if any.

8.2   PAYMENT OF INTEREST

      The Borrower shall pay accrued interest on the Loan on the last day of
      each Interest Period to the Agent for distribution to the Lenders.

8.3   DEFAULT INTEREST

(1)   If a Chargor fails to pay any amount payable by it under a Finance
      Document on its due date, then interest shall accrue on the Unpaid Sum
      from the due date up to the date of actual payment (both before and after
      judgment) at a rate which, subject to Clause 8.3(2), is 2% higher than the
      rate which would have been payable if the Unpaid Sum had, during the
      period of non-payment, been part of the Loan for successive Interest
      Periods, each of a duration selected by the Agent (acting reasonably). Any
      interest accruing under this Clause 8.3 shall be immediately payable by
      the Chargor on demand by the Agent.

(2)   If an Unpaid Sum consists of all or part of the Loan which became due on a
      day which was not an Interest Payment Date, then:

      (a)   the first Interest Period for that Unpaid Sum shall have a duration
            equal to the unexpired portion of the current Interest Period; and

      (b)   the rate of interest applying to the Unpaid Sum during that first
            Interest Period shall be 2% higher than the rate which would have
            applied if the Unpaid Sum had not become due.

                                       23
<PAGE>

(3)   Default interest (if unpaid) arising on an Unpaid Sum will be compounded
      with the Unpaid Sum at the end of each Interest Period applicable to that
      Unpaid Sum but will remain immediately due and payable.

8.4   REQUEST FOR FIXED RATE

      The Borrower may at any time request that the rate of interest on the Loan
      be fixed. This request must be made in the Utilisation Request or (after
      the Utilisation Date) in a Fixed Rate Request served on the Agent and
      shall in either case specify the period for which the fixed rate is
      required. That period must commence:

      (a)   no earlier than three Business Days after the service of the request
            (or such shorter period as may be agreed between the Borrower and
            the Agent); and

      (b)   on the first day of an Interest Period,

      and must end on the final day of an Interest Period.

8.5   FIXED RATE OFFERS

(1)   If the request is contained in the Utilisation Request, the Original
      Lender shall, between 10 am and 12 noon on the Utilisation Date, offer to
      the Borrower a fixed rate of interest for the Loan for the period
      specified in the Utilisation Request. If within the period for acceptance
      specified by the Original Lender the Borrower notifies the Original Lender
      in writing that it accepts the fixed rate offered by the Original Lender,
      then that acceptance shall be irrevocable and Clause 8.6 (Implementation
      of fixed rate) shall apply calculated on the assumption that all of the
      Instalments which will become due during that period are paid in full and
      on time pursuant to Clause 6.1 (Instalment payments).

(2)   If the request is contained in a Fixed Rate Request, the Agent shall upon
      receipt of it notify the Lenders. Those of the Lenders which customarily
      offer fixed rates of interest to commercial borrowers shall use their
      respective endeavours to offer the Borrower (via the Agent) a fixed rate
      of interest for their participation in the Loan for the chosen period. If
      within the period for acceptance specified by the Agent the Borrower
      notifies the Agent in writing that it accepts the fixed rate offered by
      any Lender, then that notification shall be irrevocable, the Agent shall
      promptly notify the Lender or Lenders concerned and Clause 8.6
      (Implementation of fixed rate) shall apply calculated on the assumption
      that all of the Instalments which will become due during that period are
      paid in full and on time pursuant to Clause 6.1 (Instalment payments).

8.6   IMPLEMENTATION OF FIXED RATE

(1)   If this Clause 8.6 applies, then the Original Lender or, as the case may
      be, each relevant Lender shall use its reasonable endeavours to complete
      the funding and/or hedging arrangements necessary to make the fixed rate
      of interest available. If the Original Lender or, as the case may be, any
      relevant Lender does not succeed, then it shall not make the fixed rate
      available and shall notify the Borrower accordingly. If it does succeed,
      then:

                                       24
<PAGE>

      (a)   the Original Lender shall notify the Borrower to that effect or, as
            the case may be, the relevant Lender shall notify the Agent to that
            effect and it shall notify the Borrower;

      (b)   the fixed rate of interest shall apply to the Loan or, as the case
            may be, the relevant Lender's participation in the Loan for the
            relevant period; and

      (c)   if a fixed rate does not apply to each Lender's participation, then
            the Loan shall for the duration of the relevant period be divided
            into two, one comprising the portion subject to the Fixed Rate or,
            as the case may be, Fixed Rates and the other comprising the
            balance.

(2)   A Lender may by notice to the Agent terminate a Fixed Rate applicable to
      its participation in the Loan at any time following the occurrence of any
      event or circumstance referred to in Clause 15.4(1)(a) to (c) (Hedging
      Break Costs indemnity).

8.7   HEDGING STRATEGY

(1)   The Borrower shall comply with the Hedging Strategy Letter.

(2)   The Borrower shall not enter into any External Hedging Agreement without
      the prior consent of the Agent (not to be unreasonably withheld to an
      External Hedging Agreement which is consistent with the strategy outlined
      in (the Hedging Strategy Letter)).

8.8   NOTIFICATION OF RATES OF INTEREST

      The Agent shall promptly notify the Lenders and the Borrower of the
      determination of a rate of interest under this Agreement.

9.    INTEREST PERIODS

9.1   DEFINITION OF "INTEREST PERIOD"

      Interest on the Loan shall be calculated by reference to successive
      periods (each an "INTEREST PERIOD") of a duration chosen or determined in
      accordance with this Clause 9.

9.2   DURATION OF INTEREST PERIODS

(1)   The first Interest Period for the Loan shall start on its Utilisation Date
      and end on 5 July 2004.

(2)   Each subsequent Interest Period for the Loan shall start on the last day
      of the preceding Interest Period and be for a period of three months (or
      approximately three months) ending, subject to Clause 9.3 (Restrictions on
      Interest Periods), on 5th of January, April, July or October in the
      relevant year.

9.3   RESTRICTIONS ON INTEREST PERIODS

(1)   An Interest Period may not extend beyond the Final Repayment Date.

                                       25
<PAGE>

(2)   If an Interest Period would otherwise end on a day which is not a Business
      Day, that Interest Period will instead end on the next Business Day in
      that calendar month (if there is one) or the preceding Business Day (if
      there is not).

10.   CHANGES TO THE CALCULATION OF INTEREST

10.1  ABSENCE OF QUOTATIONS

      Subject to Clause 10.2 (Market disruption), if LIBOR is to be determined
      by reference to the Reference Banks but a Reference Bank does not supply a
      quotation when requested by the Agent, then the applicable LIBOR shall be
      determined on the basis of the quotations of the remaining Reference
      Banks.

10.2  MARKET DISRUPTION

(1)   If interest is to be calculated by reference to LIBOR and if a Market
      Disruption Event occurs in relation to the Loan for any Interest Period,
      then the rate of interest on each Lender's participation in the Loan for
      that Interest Period shall be the rate per annum which is the sum of:

      (a)   the Margin;

      (b)   the rate notified to the Agent by that Lender as soon as practicable
            and in any event before interest is due to be paid in respect of
            that Interest Period, to be that which expresses as a percentage
            rate per annum the cost to that Lender of funding its participation
            in the Loan from whatever source it may reasonably select; and

      (c)   the Mandatory Cost, if any, applicable to that Lender's
            participation in the Loan.

(2)   In this Agreement "MARKET DISRUPTION EVENT" means:

      (a)   at or about noon on the first day of the relevant Interest Period
            the Screen Rate is not available and none or only one of the
            Reference Banks supplies a rate to the Agent to determine LIBOR for
            the relevant period; or

      (b)   before close of business in London on the first day of the relevant
            Interest Period, the Agent receives notifications from a Lender or
            Lenders (whose participations in the Loan exceed 30% of the Loan)
            that the cost to it or, as the case may be, them of obtaining
            matching deposits in the interbank market would be in excess of
            LIBOR.

10.3  ALTERNATIVE BASIS OF INTEREST OR FUNDING

(1)   If a Market Disruption Event occurs and the Agent or the Borrower so
      requires, then the Agent and the Borrower shall enter into negotiations
      (for a period of not more than thirty days) with a view to agreeing a
      substitute basis for determining the rate of interest.

(2)   Any alternative basis agreed pursuant to Clause 10.3(1) shall, with the
      prior consent of all the Lenders and the Borrower, be binding on all
      Parties.

                                       26
<PAGE>

11.   FEES

11.1  ARRANGEMENT FEE

      The Borrower shall pay to the Arranger an arrangement and underwriting fee
      in the amount and at the time agreed in the Fees Letter.

11.2  NON-UTILISATION FEE

      With effect from and including the fifth Business Day following the
      execution of this Agreement, the Borrower shall pay to the Agent (for
      distribution to the Lenders) a non-utilisation fee of 0.4% per annum on
      the undrawn amount of the Facility for the Availability Period. This
      non-utilisation fee shall be payable on the last day of the Availability
      Period.

                                       27
<PAGE>

                                   SECTION 6

                         ADDITIONAL PAYMENT OBLIGATIONS

12.   TAX GROSS-UP AND INDEMNITIES

12.1 TAX DEFINITIONS

(1)   In this Clause 12:

      "PROTECTED PARTY" means a Finance Party which is or will be, for or on
      account of Tax, subject to any liability or required to make any payment
      in relation to a sum received or receivable (or any sum deemed for the
      purposes of Tax to be received or receivable) under a Finance Document.

      "QUALIFYING LENDER" means a Lender which is beneficially entitled to
      interest payable to that Lender in respect of an advance under a Finance
      Document and is (on the date a payment falls due):

      (a)   a bank as defined in s840A Taxes Act which, for the purposes of s349
            Taxes Act, is at the relevant time within the charge to United
            Kingdom corporation tax as regards any interest received by it under
            this Agreement;

      (b)   a Building Society; or

      (c)   under a double taxation agreement in force on that date (subject to
            the completion of any necessary procedural formalities) entitled to
            that payment without a Tax Deduction (a "TREATY LENDER").

      "TAX CREDIT" means a credit against, relief or remission for or repayment
      of any Tax.

      "TAX PAYMENT" means an increased payment made by a Chargor to a Finance
      Party under Clause 12.2 (Tax gross-up) or a payment under Clause 12.3 (Tax
      indemnity).

(2)   In this Clause 12 a reference to "DETERMINES" or "DETERMINED" is to a
      determination made in the absolute discretion of the person making the
      determination.

12.2  TAX GROSS-UP

(1)   The Borrower shall make all payments to be made by it without any Tax
      Deduction, unless a Tax Deduction is required by law.

(2)   The Borrower or a Lender shall promptly upon becoming aware that it must
      make a Tax Deduction (or that there is any change in the rate or the basis
      of a Tax Deduction) notify the Agent accordingly. Similarly, a Lender
      shall notify the Agent on becoming so aware in respect of a payment
      payable to that Lender. If the Agent receives such notification from a
      Lender it shall notify the Borrower.

(3)   If a Tax Deduction is required by law to be made by the Borrower, the
      amount of the payment due from the Borrower shall be increased to an
      amount which (after making any Tax Deduction) leaves an amount equal to
      the payment which would have been due if no Tax Deduction had been
      required.

                                       28
<PAGE>

(4)   The Borrower is not required to make an increased payment to a Lender
      under Clause 12.2(3) above for a Tax Deduction in respect of tax imposed
      by the United Kingdom from a payment of interest on the Loan, if on the
      date on which the payment falls due:

      (a)   the payment could have been made to the relevant Lender without a
            Tax Deduction if it was a Qualifying Lender, but on that date that
            Lender is not or has ceased to be a Qualifying Lender other than as
            a result of any change after the date it became a Lender under this
            Agreement in (or in the interpretation, administration, or
            application of) any law or Treaty, or any published practice or
            concession of any relevant taxing authority; or

      (b)   the relevant Lender is a Treaty Lender and the Borrower is able to
            demonstrate that the payment could have been made to the Lender
            without the Tax Deduction had that Lender complied with its
            obligations under paragraph (7) below.

(5)   If the Borrower is required to make a Tax Deduction, the Borrower shall
      make that Tax Deduction and any payment required in connection with that
      Tax Deduction within the time allowed and in the minimum amount required
      by law.

(6)   Within thirty days of making either a Tax Deduction or any payment
      required in connection with that Tax Deduction, the Borrower making that
      Tax Deduction shall deliver to the Agent for the Finance Party entitled to
      the payment evidence reasonably satisfactory to that Finance Party that
      the Tax Deduction has been made or (as applicable) any appropriate payment
      paid to the relevant taxing authority.

(7)   A Treaty Lender and the Borrower which makes a payment to which the Treaty
      Lender is entitled shall co-operate in completing any procedural
      formalities necessary for the Borrower to obtain authorisation to make
      that payment without a Tax Deduction.

12.3  TAX INDEMNITY

(1)   The Borrower shall (within three Business Days of demand by the Agent) pay
      to a Protected Party an amount equal to the Losses which that Protected
      Party determines will be or have been (directly or indirectly) suffered
      for or on account of Tax by that Protected Party in respect of a Finance
      Document.

(2)   Clause 12.3(1) shall not apply:

      (a)   with respect to any Tax assessed on a Finance Party:

            (i)   under the law of the jurisdiction in which that Finance Party
                  is incorporated or, if different, the jurisdiction (or
                  jurisdictions) in which that Finance Party is treated as
                  resident for tax purposes; or

            (ii)  under the law of the jurisdiction in which that Finance
                  Facility Office is located in respect of amounts received or
                  receivable in that jurisdiction,

                                       29
<PAGE>

            if that Tax is imposed on or calculated by reference to the net
            income received or receivable (but not any sum deemed to be received
            or receivable) by that Finance Party; or

      (b)   to the extent a Loss:

            (i)   is compensated for by an increased payment under Clause 12.2
                  (Tax gross-up); or

            (ii)  would have been compensated for by an increased payment under
                  Clause 12.2 (Tax gross-up) but was not so compensated solely
                  because one of the exclusions in paragraph (4) of Clause 12.2
                  (Tax gross-up) applied.

(3)   A Protected Party making or intending to make a claim pursuant to Clause
      12.3(1) shall promptly notify the Agent of the event which will give, or
      has given, rise to the claim, following which the Agent shall notify the
      Borrower.

(4)   A Protected Party shall, on receiving a payment from the Borrower under
      this Clause 12.3, notify the Agent.

12.4  TAX CREDIT

      If a Chargor makes a Tax Payment and the relevant Finance Party determines
      that:

      (a)   a Tax Credit is attributable to that Tax Payment; and

      (b)   that Finance Party has obtained, utilised and retained that Tax
            Credit,

      then the Finance Party shall pay an amount to the Chargor which that
      Finance Party determines will leave it (after that payment) in the same
      after-Tax position as it would have been in had the Tax Payment not been
      required to be made by the Borrower.

12.5  STAMP TAXES

      The Borrower shall pay and, within three Business Days of demand,
      indemnify each Finance Party against any Losses which that Finance Party
      incurs in relation to any stamp duty, registration and other similar Taxes
      and fees payable in respect of any Finance Document, the Property, either
      Purchase Agreement (or any document ancillary to it or which gives effect
      to it) and the transactions contemplated in the Finance Documents.

12.6  VALUE ADDED TAX

(1)   Any amount payable under a Finance Document by a Chargor to a Finance
      Party shall be deemed to be exclusive of any VAT. If VAT is chargeable,
      the Chargor shall pay to the Finance Party (in addition to and at the same
      time as paying the amount) a sum equal to the amount of the VAT.

(2)   Where a Finance Document requires a Chargor to reimburse a Finance Party
      for any Losses, the Chargor shall also at the same time pay and indemnify
      that Finance Party

                                       30

<PAGE>

      against all VAT incurred by the Finance Party in respect of the Losses,
      save to the extent that the Finance Party is entitled to repayment or
      credit in respect of the VAT.

13.   INCREASED COSTS

13.1  INCREASED COSTS

(1)   Subject to Clause 13.3 (Exceptions) the Borrower shall, within three
      Business Days of a demand by the Agent, pay for the account of a Finance
      Party the amount of any Increased Costs incurred by that Finance Party or
      any of its Affiliates as a result of:

      (a)   the introduction of or any change in (or in the interpretation,
            administration or application of) any law or regulation; or

      (b)   compliance with any law or regulation made after the date of this
            Agreement.

(2)   In this Agreement, "INCREASED COSTS" means:

      (a)   a reduction in the rate of return from the Facility or on a Finance
            Party's (or its Affiliate's) overall capital;

      (b)   an additional or increased cost; or

      (c)   a reduction of any amount due and payable under any Finance
            Document,

      which is sustained or incurred by a Finance Party or any of its Affiliates
      to the extent that it is attributable to that Finance Party having entered
      into its Commitment or funding or performing its obligations under any
      Finance Document.

13.2  INCREASED COSTS CLAIMS

(1)   A Finance Party intending to make a claim pursuant to Clause 13.1
      (Increased Costs) shall notify the Agent of the event giving rise to the
      claim, following which the Agent shall promptly notify the Borrower.

(2)   Each Finance Party shall, as soon as practicable after a demand by the
      Agent, provide a certificate confirming the amount of its Increased Costs.

13.3  EXCEPTIONS

      Clause 13.1 (Increased Costs) does not apply to the extent any Increased
      Cost is:

      (a)   attributable to a Tax Deduction required by law to be made by the
            Borrower;

      (b)   compensated for by Clause 12.3 (Tax indemnity) (or would have been
            compensated for under Clause 12.3 (Tax indemnity) but was not so
            compensated solely because the exclusions in Clause 12.3(2) (Tax
            indemnity) applied);

      (c)   compensated for by the payment of the Mandatory Cost; or

      (d)   attributable to the wilful breach by the relevant Finance Party or
            any of its Affiliates of any law or regulation.

                                       31

<PAGE>

14.   MITIGATION BY THE LENDERS

14.1  MITIGATION

(1)   Each Finance Party shall, in consultation with the Borrower, take all
      reasonable steps to mitigate any circumstances which arise and which would
      result in any amount becoming payable or cancelled pursuant to any of
      Clause 7.1 (Mandatory prepayment (illegality)), Clause 7.8 (Cancellation),
      Clause 12 (Tax gross-up and indemnities), Clause 13 (Increased Costs) or
      Paragraph 3 of Schedule 6 (Mandatory Cost formula). Reasonable steps
      include (but are not limited to) the Finance Party transferring its rights
      and obligations under the Finance Documents to another Affiliate or
      Facility Office.

(2)   Clause 14.1(1) does not in any way limit the obligations of any Chargor
      under the Finance Documents.

14.2  INDEMNITY AND LIMITATION OF LIABILITY

(1)   The Borrower shall indemnify each Finance Party for all costs and expenses
      reasonably sustained or incurred by that Finance Party as a result of
      steps taken by it under Clause 14.1 (Mitigation).

(2)   A Finance Party is not obliged to take any steps under Clause 14.1
      (Mitigation) if, in the opinion of that Finance Party (acting reasonably),
      to do so might be prejudicial to it.

15.   INDEMNITIES

15.1  CURRENCY INDEMNITY

(1)   If any sum due from a Chargor under the Finance Documents (a "SUM"), or
      any order, judgment or award given or made in relation to a Sum, has to be
      converted from the currency (the "FIRST CURRENCY") in which that Sum is
      payable into another currency (the "SECOND CURRENCY") for the purpose of:

      (a)   making or filing a claim or proof against that Chargor; or

      (b)   obtaining or enforcing an order, judgment or award in relation to
            any litigation or arbitration proceedings,

      then the Borrower shall as an independent obligation, within three
      Business Days of demand, indemnify each Finance Party to whom that Sum is
      due against any Losses arising out of or as a result of the conversion,
      including any discrepancy between:

      (i)   the rate of exchange used to convert that Sum from the First
            Currency into the Second Currency; and

      (ii)  the rate or rates of exchange available to that Finance Party at the
            time of its receipt of that Sum.

                                       32

<PAGE>

(2)   The Borrower waives any right it may have in any jurisdiction to pay any
      amount under the Finance Documents in a currency or currency unit other
      than that in which it is expressed to be payable.

15.2  INDEMNITY FOR DEFAULT, ETC

      The Borrower shall, within three Business Days of demand, indemnify each
      Finance Party against any Losses sustained or incurred by that Finance
      Party as a result of:

      (a)   funding, or making arrangements to fund, its participation in the
            Loan requested by the Borrower in the Utilisation Request but not
            made by reason of any one or more of the provisions of this
            Agreement (other than by reason of the default or negligence of that
            Finance Party alone);

      (b)   the Loan (or part of the Loan) not being prepaid in accordance with
            a notice of prepayment given by the Borrower;

      (c)   any other breach of the Finance Documents by a Chargor, the
            occurrence of any other Default or the operation of Clause 23.13
            (Acceleration) or Clause 27 (Sharing among the Lenders).

15.3  LIBOR BREAK COSTS INDEMNITY

(1)   The Borrower shall, within three Business Days of demand by a Finance
      Party, pay to that Finance Party its LIBOR Break Costs attributable to all
      or any part of the Loan or an Unpaid Sum being received or recovered by a
      Lender on a day other than the last day of an Interest Period for the Loan
      or Unpaid Sum.

(2)   Each Lender shall, as soon as reasonably practicable after a demand by the
      Agent, provide a certificate confirming the amount of its LIBOR Break
      Costs for any Interest Period in which they accrue.

(3)   In this Agreement, "LIBOR BREAK COSTS" in relation to the receipt or
      recovery by a Lender of all or any part of its participation in the Loan
      or Unpaid Sum other than on the last day of the then current Interest
      Period means the amount (if any) by which:

      (a)   the interest which that Lender should have received for the period
            from the date of receipt or recovery to the last day of the current
            Interest Period in respect of the Loan or Unpaid Sum, had the
            principal amount or Unpaid Sum received or recovered been paid on
            the last day of that Interest Period;

      exceeds:

      (b)   the amount which that Lender would be able to obtain by placing an
            amount equal to the principal amount or Unpaid Sum received or
            recovered by it on deposit with a leading bank in the London
            interbank market for a period starting on the Business Day following
            receipt or recovery and ending on the last day of that Interest
            Period.

                                       33

<PAGE>

15.4  HEDGING BREAK COSTS INDEMNITY

(1)   The Borrower shall, within three Business Days of demand by a Finance
      Party which has made a Fixed Rate available pursuant to Clause 8.6
      (Implementation of fixed rate), pay to that Finance Party its Hedging
      Break Costs attributable to:

      (a)   the occurrence of any event or circumstance referred to in Clause
            15.2(a) to (c) (Indemnity for Default, etc);

      (b)   any amount being, or becoming due to be, paid, prepaid or repaid
            prior to the payment date for that amount as envisaged at the date
            of this Agreement or the date when any Fixed Rate was implemented
            pursuant to Clause 8.6 (Implementation of fixed rate); or

      (c)   the termination of a Fixed Rate following a request for that
            termination by the Borrower which is accepted by that Finance Party.

(2)   In this Agreement:

      "HEDGING BREAK COSTS" in relation to a Lender, a Fixed Rate and any event
      or circumstance falling within Clause 15.4(1)(a) to (c) means the estimate
      of the Agent acting reasonably (such estimate being conclusive in the
      absence of manifest error) of the Losses which that Lender or any of its
      Affiliates would have sustained or incurred in taking any action which in
      the Agent's opinion that Lender might reasonably take to unwind, close out
      or amend its position under any relevant Lender Hedging Arrangement as a
      consequence of that event or circumstance, whether or not the Lender or
      any of its Affiliates entered into a Lender Hedging Arrangement and/or has
      taken that action; and

      "LENDER HEDGING ARRANGEMENT" means any derivative or other transaction
      (including any pooling or other arrangement) which has or might reasonably
      have been entered into or relied upon, in whole or in part, by a Lender or
      any of its Affiliates in connection with the offering or maintenance of a
      Fixed Rate pursuant to this Agreement.

(3)   If a Finance Party receives and is entitled to retain a net after-tax
      profit on the unwinding, closing out or amending its position under any
      relevant Lender Hedging Arrangement as a consequence of any event or
      circumstance falling within Clause 15.4(1)(a) to (c), then it shall within
      10 Business Days pay to the Borrower the amount of that net profit or, in
      its discretion, deduct from it any amount then due and payable by the
      Borrower to it under the Finance Documents.

(4)   If the Borrower so requests, a Finance Party making a demand under Clause
      15.4(1) shall provide a certificate confirming the amount of its Hedging
      Break Costs and explaining in reasonable detail the basis on which the
      calculation of them was made; but this is without prejudice to Clause 26
      (Conduct of business by the Finance Parties).

15.5  INDEMNITY TO THE AGENT

      The Borrower shall promptly indemnify the Agent against any Losses
      sustained or incurred by the Agent (acting reasonably) as a result of:

                                       34

<PAGE>

      (a)   investigating any event which it reasonably believes is a Default;
            or

      (b)   acting or relying on any notice, request or instruction which it
            reasonably believes to be genuine, correct and appropriately
            authorised.

16.   COSTS AND EXPENSES

16.1  TRANSACTION EXPENSES

      The Borrower shall promptly on demand pay the Agent the amount of all
      costs and expenses (including legal fees) properly incurred by it in
      connection with the preparation, negotiation, printing, execution and
      registration of:

      (a)   this Agreement and any other documents referred to in this
            Agreement; and

      (b)   any other Finance Documents executed after the date of this
            Agreement.

16.2  AMENDMENT COSTS

      If:

      (a)   a Chargor requests a release of any Security Interest or any other
            amendment, waiver, consent or release of or in relation to any
            Finance Document; or

      (b)   an amendment is required pursuant to Clause 28.9 (Change of
            currency),

      then the Borrower shall, within three Business Days of demand, reimburse
      the Agent for the amount of all costs and expenses (including legal fees)
      incurred by the Agent in responding to, evaluating, negotiating or
      complying with that request or requirement.

16.3  ENFORCEMENT COSTS

      The Borrower shall, within three Business Days of demand, pay to each
      Finance Party the amount of all costs and expenses (including legal fees)
      incurred by that Finance Party in connection with the enforcement of, or
      the preservation of any rights (including Security Interests) under, any
      Finance Document.

                                       35

<PAGE>

                                    SECTION 7

                               REPRESENTATIONS

17.   REPRESENTATIONS AND WARRANTIES

      The Borrower makes the representations and warranties set out in this
      Clause 17 to each Finance Party on the date of this Agreement.

17.1  STATUS

      The Borrower:

      (a)   is a limited liability corporation, duly incorporated and validly
            existing under the law of its jurisdiction of incorporation;

      (b)   has the capacity to sue and be sued in its own name; and

      (c)   has the power to own its assets and carry on its business as it is
            being conducted.

17.2  BINDING OBLIGATIONS

      The obligations expressed to be assumed by the Borrower in each Finance
      Document are, subject to equitable principles and matters affecting
      creditors' rights generally, its legal, valid, binding and enforceable
      obligations.

17.3  NON-CONFLICT WITH OTHER OBLIGATIONS

      The entry into and performance by the Borrower of, and the transactions
      contemplated by, the Finance Documents do not and will not:

      (a)   conflict with:

            (i)   any law or regulation applicable to it;

            (ii)  its constitutional documents; or

            (iii) any agreement or instrument binding upon it or any of its
                  assets; or

      (b)   give rise to any obligation to create any Security Interest in
            favour of any person (except in favour of the Security Trustee under
            the Security Documents).

17.4  POWER AND AUTHORITY

      The Borrower has the power to enter into, perform and deliver, and has
      taken all necessary action to authorise its entry into, performance and
      delivery of, the Finance Documents to which it is a party and the
      transactions contemplated by those Finance Documents.

                                       36

<PAGE>

17.5  VALIDITY AND ADMISSIBILITY IN EVIDENCE

      All Authorisations required or desirable:

      (a)   to enable the Borrower lawfully to enter into, exercise its rights
            under and comply with its obligations in the Finance Documents;

      (b)   to create the Security Interests created or to be created by it in
            the Security Documents to which it is a party; and

      (c)   to make the Finance Documents admissible in evidence in its
            jurisdiction of incorporation,

      have been obtained or effected and are in full force and effect.

17.6  GOVERNING LAW AND ENFORCEMENT

(1)   The choice of English law as the governing law of the Finance Documents
      will be recognised and enforced in the Borrower's jurisdiction of
      incorporation.

(2)   Any judgment obtained in England in relation to a Finance Document will be
      recognised and enforced in the Borrower's jurisdiction of incorporation.

17.7  PARI PASSU RANKING

      Each Chargor's payment obligations under the Finance Documents rank at
      least pari passu with the claims of all its unsecured and unsubordinated
      creditors, except for obligations mandatorily preferred by law applying to
      companies generally.

17.8  RANKING OF SECURITY

      Subject to the general principles affecting the rights of creditors
      generally, each Security Document validly creates the Security Interests
      which it purports to create and each of those Security Interests is a
      first priority Security Interest over all of the assets over which it
      purports to create a Security Interest.

17.9  REGISTRATION

(1)   Except for the Proposed Registrations, it is not necessary that any of the
      Finance Documents be filed, recorded or enrolled with any court or other
      authority or that any stamp duty, stamp duty land tax, registration or
      similar Tax be paid on or in respect of any Finance Document or any
      transaction contemplated by the Finance Documents.

(2)   The "PROPOSED REGISTRATIONS" are:

      (a)   registration of the Debenture and the Shares Charge under s395
            Companies Act 1985; and

      (b)   registration of the Debenture at HM Land Registry.

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17.10 DEDUCTION OF TAX

      No deduction for or on account of Tax is required under any applicable law
      to be made:

      (a)   from any payment the Borrower is required to make under any Finance
            Document; or

      (b)   from any payment of Rental Income to the Borrower or into the Rent
            Account pursuant to Clause 21.3 (Payments into the bank accounts).

17.11 NO DEFAULT

(1)   No Default is continuing or might reasonably be expected to result from
      the making of the Utilisation.

(2)   No other event or circumstance is outstanding which constitutes a default
      under any other agreement or instrument which is binding on it or to which
      its assets are subject which would be reasonably likely to have a Material
      Adverse Effect.

17.12 NO MISLEADING INFORMATION

(1)   All information provided from time to time by or on behalf of any Chargor
      in relation to each Chargor or the Property or otherwise in connection
      with any Valuation, the Facility or the Finance Documents is as at the
      date it was provided or as at the date (if any) at which it is stated,
      true, complete and accurate in all material respects.

(2)   There is no matter of which any Chargor is (or ought on reasonable enquiry
      to be) aware which has not been fully disclosed in writing by it or on its
      behalf to:

      (a)   any Finance Party and which would or might adversely affect the
            decision of a reasonable person considering whether to enter into
            this Agreement; or

      (b)   to the Valuer for the Valuation which would or might have materially
            and adversely affected the Valuation.

(3)   Nothing has occurred which results in the information referred to in
      Clause 17.12(1) being untrue or misleading in any material respect.

17.13 FINANCIAL POSITION

(1)   The Borrower has not, since the date of its incorporation, transacted any
      business except for the purchase and management of the Property.

(2)   In relation to each Chargor:

      (a)   its audited accounts and financial statements from time to time most
            recently delivered to the Agent pursuant to this Agreement:

            (i)   were prepared in accordance with GAAP consistently applied;
                  and

                                       38

<PAGE>

            (ii)  fairly represent its results during the relevant financial
                  year and its financial condition as at the date to which they
                  were drawn up; and

      (b)   there has been no material adverse change in its business or
            financial condition since the date of those audited accounts and
            financial statements.

      This Clause 17.13(2) shall not apply in relation to a Chargor until its
      first audited accounts and financial statements have been supplied to the
      Agent as a condition precedent as envisaged in Clause 4.1 (Initial
      conditions precedent) or pursuant to Clause 18.1 (Financial statements).

(3)   Any pro forma balance sheet for any Chargor delivered as a condition
      precedent as envisaged in Clause 4.1 (Initial conditions precedent) is an
      accurate and complete statement of the assets and liabilities of that
      Chargor immediately following the purchase of the Property.

17.14 NO PROCEEDINGS PENDING OR THREATENED

      No litigation, arbitration or administrative proceedings of or before any
      court, arbitral body or agency which, if adversely determined, might
      reasonably be expected to have a Material Adverse Effect have been started
      or to the best of its knowledge having made proper enquiries threatened
      against the Borrower.

17.15 THE PROPERTY

(1)   All information provided in the Title Certificate is true, complete and
      accurate in all material respects.

(2)   As at the date of this Agreement, each Purchase Agreement is in full force
      and effect, has not been amended and has not been breached or repudiated
      by any party to it.

(3)   On completion of the Purchase Agreements in relation to the Property, the
      Borrower will (subject to due registration at HM Land Registry) be the
      legal and beneficial owner of the Property and will have good and
      marketable title to it, free from any defects (except for defects
      disclosed in the Title Certificate).

(4)   There are no covenants, easements, third party rights or other
      encumbrances or adverse matters which affect the Property (except for
      encumbrances or matters disclosed in the Title Certificate).

(5)   There are no Security Interests which affect the Property (except for any
      Security Interests disclosed in the Title Certificate which are to be
      irrevocably discharged prior to or upon drawdown of the Loan).

17.16 PLANNING

(1)   The existing and as at the date of this Agreement, the Borrower's proposed
      future uses of the Property do not constitute a breach of any planning
      legislation or controls.

(2)   Except as disclosed in the Title Certificate, none of the following is
      outstanding in respect of the Property:

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<PAGE>

      (a)   any notices or orders issued by, or agreements with, any local or
            other authority;

      (b)   any proceedings in respect of any infringement of the building
            bye-laws, any monetary claim or liability (contingent or otherwise)
            under the Planning Acts or otherwise;

      (c)   any enforcement notices under the Planning Acts;

      (d)   any notice, order or resolution for the compulsory acquisition,
            closing, demolition, clearance or requisition of all or any part of
            the Property by any authority; or

      (e)   any applications for planning permission.

(3)   No Chargor is aware of any proposals in relation to any of the matters
      referred to in Clause 17.16(2) nor are any other circumstances known to it
      which might result in any such matter arising.

17.17 ENVIRONMENTAL MATTERS

(1)   So far as the Borrower is aware having made proper enquiry, all
      Environmental Remedial Action in relation to the Property has been duly
      carried out, the Borrower has at all times been in compliance with all
      applicable Environmental Laws applicable to the Property and the terms of
      all Environmental Authorisations applicable to the Property and (to the
      best of the knowledge and belief of the Borrower) nothing has occurred
      which may prevent or interfere with full compliance in the future.

(2)   So far as the Borrower is aware having made proper enquiry, except as
      disclosed in paragraph 30.1 of part I of schedule 7 to the Title
      Certificate all Environmental Authorisations that are necessary or
      desirable applicable to the Property have been obtained and maintained in
      full force and effect and nothing has occurred which might cause any
      Environmental Authorisation to be revoked, suspended, amended, varied,
      withdrawn or not renewed or which would prevent compliance with any
      Environmental Authorisation, unless in each case the occurrence does not
      and would not be reasonably like to have a Material Adverse Effect.

(3)   So far as the Borrower is aware having made proper enquiry, no
      Environmental Claim in respect of the Property is pending or has been made
      or threatened against any Chargor or any of its past or present officers,
      employees, contractors or agents and nothing has occurred which could form
      the basis of any Environmental Claim against any Chargor, unless the
      Environmental Claim does not and would not be reasonably likely to have a
      Material Adverse Effect.

(4)   In this Agreement:

      "ENVIRONMENT" means the environment as defined in s1(2) Environmental
      Protection Act 1990;

      "ENVIRONMENTAL AUTHORISATION" means any Authorisation required at any time
      pursuant to any Environmental Law in relation to the business carried on
      at the Property or the use, occupation or development of the Property;

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<PAGE>

      "ENVIRONMENTAL CLAIM" means any claim, prosecution, demand, action,
      official warning, abatement or other order or notice (conditional or
      otherwise) relating to pollution or protection of the Environment or
      requiring compliance with the terms of any Environmental Authorisation or
      Environmental Laws;

      "ENVIRONMENTAL LAWS" means:

      (a)   regulations and court orders; and

      (b)   all laws (including any statutes and by-laws) not falling within
            paragraph (a) of this definition,

      in each case relating to pollution, the protection of the Environment or
      the health and safety of people and shall include building regulations and
      planning law; and

      "ENVIRONMENTAL REMEDIAL ACTION" means the removal, treatment, remediation,
      cleaning-up, containment, amelioration or investigation of the presence of
      any substance capable of causing harm to the Environment as may from time
      to time be required by any regulatory body, local authority or otherwise
      under or in connection with Environmental Laws or any Environmental
      Authorisation.

17.18 REPETITION

      The representations and warranties set out in Clause 17.1 (Status) to
      Clause 17.17 (Environmental matters) inclusive (save for Clauses 17.11 (No
      Default), 17.12(2) and (3) (No Misleading Information), 17.14 (No
      proceedings pending or threatened), 17.15 (The Property) and 17.17
      (Environmental matters)) are deemed to be repeated by the Borrower by
      reference to the facts and circumstances then existing on the date of the
      Utilisation Request, the Utilisation Date and the first day of each
      Interest Period.

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<PAGE>

                                    SECTION 8

                                  UNDERTAKINGS

      The undertakings in this Section 8 remain in force from the date of this
      Agreement for so long as any amount is outstanding under the Finance
      Documents or any Commitment is in force.

18.   INFORMATION UNDERTAKINGS

18.1  FINANCIAL STATEMENTS

(1)   The Borrower shall supply to the Agent (in sufficient copies for all the
      Lenders) if and to the extent produced the audited annual accounts and
      financial statements (consolidated where applicable) of each Chargor and
      Corporate Property Associates 16 - Global Incorporated for each financial
      year as soon as the same become available but in any event within 120 days
      after the end of that financial year.

(2)   Each Chargor shall supply to the Agent (in sufficient copies for all the
      Lenders) a copy of each tax return and other form relating to Tax
      submitted from time to time to any taxing authority in England and Wales
      at the same time as it is submitted to such authority.

18.2  COMPLIANCE CERTIFICATE

(1)   Upon request by the Agent the Borrower shall supply to the Agent within 15
      Business Days of such request a Compliance Certificate.

(2)   The Agent may only request a Compliance Certificate from the Borrower
      under Clause 18.2(1) once in each financial year of the Borrower.

(3)   Each Compliance Certificate shall be signed by two directors of the
      Borrower.

18.3  REQUIREMENTS AS TO FINANCIAL STATEMENTS

      The Borrower shall ensure that each set of annual accounts and financial
      statements delivered pursuant to Clause 18.1 (Financial statements):

      (a)   is prepared in accordance with GAAP;

      (b)   is prepared on a basis consistent with that applied in preparation
            of the relevant Chargor's previous annual accounts and financial
            statements, if any; and

      (c)   fairly represents the relevant Chargor's results during the relevant
            financial year and its financial position as at the date to which
            those annual accounts and financial statements were drawn up.

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<PAGE>

18.4  QUARTERLY REPORT ON THE PROPERTY

(1)   The Borrower or its Managing Agent shall within 30 days of each Quarterly
      Reporting Date supply to the Agent (in sufficient copies for all the
      Lenders) a report in respect of the Property for the Quarter ending on
      that Quarterly Reporting Date.

(2)   Each report provided by the Borrower or its Managing Agent pursuant to
      Clause 18.4(1) shall be in the form required or approved by the Agent from
      time to time. In particular each report shall, subject to Clause 18.4(3):

      (a)   include a schedule of the existing Occupational Leases (in each case
            specifying the tenant or licensee and itemising the rent, service
            charge, VAT and other payments payable in the Quarter to which the
            report relates);

      (b)   give details of each of the following:

            (i)   any rent deposits held and any arrears of rent, service
                  charge, VAT or other payments under any Occupational Lease and
                  any steps taken or proposed to be taken to recover them
                  (including serving any notice on a former tenant or guarantor
                  pursuant to s17 Landlord and Tenant (Covenants) Act 1995);

            (ii)  any other material breach of any Occupational Lease and any
                  steps taken or proposed to be taken in respect of it;

            (iii) any rent reviews with respect to any Occupational Lease in
                  progress or agreed;

            (iv)  any Occupational Lease which has expired or been determined or
                  surrendered and any new lettings proposed;

            (v)   any proposed disposal of the Property; and

            (vi)  any proposed capital expenditure or major repairs proposed to
                  be undertaken at the Property and the extent to which the cost
                  will be recoverable from the service charge; and

      (c)   be accompanied by:

            (i)   in relation to any claim under any insurance policy relating
                  to the Property, copies of all material correspondence and
                  details of any meetings with brokers; and

            (ii)  copies of any annual audited accounts and financial statements
                  for any tenant, licensee or guarantor under an Occupational
                  Lease received by the Borrower.

(3)   The report provided pursuant to this Clause 18.4 in respect of the Quarter
      ending on the June 2004 Quarterly Reporting Date shall be a full report;
      but unless the Agent notifies the Borrower to the contrary and providing
      that Polestar Petty Limited is the only tenant, for the other reports in
      each year the Borrower need only report changes to the information
      previously provided

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<PAGE>

18.5  QUARTERLY MANAGEMENT ACCOUNTS AND CASH FLOW FORECASTS

      (a)   If so requested by the Agent, the Borrower shall (or shall ensure
            that the Managing Agent shall) promptly supply to the Agent (in
            sufficient copies for all the Lenders) as soon as the same are
            available and in any event within 30 days of the end of each Quarter
            management accounts for the Borrower for that Quarter.

18.6  INFORMATION: MISCELLANEOUS

(1)   The Borrower shall supply to the Agent (in sufficient copies for all the
      Lenders, if the Agent so requests):

      (a)   all documents dispatched by the Borrower to its shareholders (or any
            class of them) or its creditors generally at the same time as they
            are dispatched;

      (b)   promptly upon becoming aware of them, the details of any litigation,
            arbitration or administrative proceedings which are current, or (to
            its reasonable knowledge) threatened or pending against any Chargor
            and which might, if adversely determined, have a Material Adverse
            Effect;

      (c)   promptly, details of any changes to the information provided to any
            Finance Party in connection with its Money Laundering Regulations
            compliance requirements (including any change in the officers of any
            Chargor or any Change of Control) and promptly on request, any other
            documents or information requested by any Finance Party in order to
            comply with those requirements; and

      (d)   promptly, any further information regarding the Property and/or the
            financial condition, business and operations of any Chargor as any
            Finance Party (through the Agent) may reasonably request.

(2)   The Borrower authorises the Managing Agent with whom it has dealings to
      provide to the Agent any information which it requests about the Property
      and agrees to supply any further authority for this purpose which the
      Agent may from time to time require.

18.7  NOTIFICATION OF DEFAULT

(1)   The Borrower shall notify the Agent of any Default (and the steps, if any,
      being taken to remedy it) promptly upon becoming aware of its occurrence.

(2)   Promptly upon a request by the Agent, the Borrower shall supply to the
      Agent a certificate signed by two of its directors or senior officers on
      its behalf certifying that no Default is continuing (or if a Default is
      continuing, specifying the Default and the steps, if any, being taken to
      remedy it).

19.   PROPERTY UNDERTAKINGS

19.1  THE INITIAL VALUATION

      The Borrower shall have an initial valuation of the Property carried out
      by the Valuer:

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<PAGE>

      (a)   at the Borrower's expense; and

      (b)   in accordance with Clause 19.3 (Basis of valuations).

19.2 RE-VALUATIONS

      The Borrower shall have a valuation of the Property carried out by the
      Valuer for the Finance Parties in accordance with Clause 19.3 (Basis of
      valuations):

      (a)   if the Agent so requests, at the end of each successive period of
            three years commencing on the date of this Agreement;

      (b)   if the Agent so requests, upon a disposal of all or part of the
            Property;

      (c)   at any time the Agent so requests following the occurrence of an
            Event of Default which is continuing; and

      (d)   at any other time the Agent so requests.

      A valuation requested pursuant to Clause 19.2(1)(a), (b) or (c) shall be
      carried out at the Borrower's cost. A valuation requested pursuant to
      Clause 19.2(1)(d) shall be carried out at the Lenders' cost.

19.3  BASIS OF VALUATIONS

(1)   Each valuation of the Property carried out pursuant to Clause 19.1 (The
      Initial Valuation) or 19.2 (Re-valuations) shall:

      (a)   be addressed to the Agent and the Security Trustee on behalf of the
            Finance Parties;

      (b)   be carried out on a market value basis as defined in the Appraisal
            and Valuation Manual as issued by the Royal Institution of Chartered
            Surveyors from time to time for the valuation of assets (the
            "MANUAL");

      (c)   include a separate appraisal of each of the following in relation to
            the Property, to the extent requested by the Agent:

            (i)   Market Value;

            (ii)  Market Value with the special assumption of vacant possession;

            (iii) estimated open market rental value; and

            (iv)  projected Market Value at the Final Repayment Date.

(2)   In addition, each valuation of the Property shall contain the Valuer's
      advice and opinion on such of the following as may be requested by the
      Agent:

      (a)   the actual and prospective demand from tenants and investors;

      (b)   the projected future performance of the Property, including a review
            of likelihood of obsolescence and cost of management;

                                       45

<PAGE>

      (c)   the Borrower's investment rationale in relation to the Property; and

      (d)   any other matter.

(3)   The Borrower shall not make any claim against the Valuer in respect of any
      valuation addressed to it unless the Agent consents.

19.4  INSURANCE

(1)   The Borrower shall maintain all appropriate insurance in respect of all
      its assets (including the Property in which it holds any legal or
      beneficial interest). This insurance shall:

      (a)   be taken out with insurers previously approved in writing by the
            Agent;

      (b)   be in the joint names of the Security Trustee and the Borrower for
            their respective rights and interests or, if the Agent so agrees, in
            the Borrower's name with the Security Trustee's interest noted as
            loss payee on each policy;

      (c)   be for an amount not less than the full reinstatement or (as
            applicable) insurable value of the relevant assets (or such other
            amount as the Agent may in its discretion specify from time to
            time);

      (d)   include cover against:

            (i)   loss or damage by fire, explosion, earthquake, riot and civil
                  commotion, terrorism, malicious damage, impact, flood, storm
                  or tempest (including lightning), aircraft and articles
                  dropped from them, bursting and overflowing of water tanks,
                  apparatus and pipes, damage to any plate glass and such other
                  risks as a prudent man of business in the same business as the
                  Borrower would maintain;

            (ii)  any additional risks or other matters which the Agent may
                  reasonably require from time to time (subject only to
                  availability and following consultation with the Borrower);

            (iii) architects', engineers', surveyors' and other professional
                  fees at the current scales from time to time;

            (iv)  demolition charges, debris removal and any consequential loss
                  directly or indirectly resulting from the loss or damage
                  referred to in Clause 19.4(1)(d)(i), including at least three
                  years' loss of rent; and

            (v)   VAT payable on all of the sums insured pursuant to this Clause
                  19.4 or otherwise; and

      (e)   contain any provisions which the Agent may reasonably require from
            time to time to avoid the Security Trustee's interest being
            prejudiced by any act of the Borrower or any occupier of all or any
            part of the Property.

(2)   The Borrower shall (at any time the Agent so requests) as soon as
      practicable produce to the Agent the policy or policies of insurance
      maintained from time to time under

                                       46

<PAGE>

      Clause 19.4(1), together with evidence satisfactory to the Agent that all
      premia are paid up to date and any other information relating to the
      policy or policies reasonably requested by the Agent.

(3)   The Borrower shall, no later than one month prior to the date on which any
      policy of insurance maintained from time to time under Clause 19.4(1) is
      due to expire, provide evidence satisfactory to the Agent that the policy
      has been renewed for a further period from the date of expiry.

19.5  ENVIRONMENTAL COMPLIANCE

(1)   The Borrower shall conduct and maintain the Property in which it holds any
      legal or beneficial interest and its business and assets generally so as
      to comply in all material respects with all applicable Environmental Laws
      and all applicable Environmental Authorisations where a failure to do so
      would be reasonably likely to have a Material Adverse Effect.

(2)   The Borrower shall maintain and, if necessary, renew all applicable
      Environmental Authorisations and shall promptly notify the Agent of any
      refusal by any person to renew any Environmental Authorisation, where that
      refusal would be reasonably likely to have a Material Adverse Effect.

(3)   The Borrower shall notify the Agent promptly and in reasonable detail if
      it becomes aware of (or receives any claim, notice or other communication
      of) any violation or potential violation by it of any Environmental Laws
      applicable to the Property or any actual or potential Environmental Claim
      in respect of the Property which in either case could have a Material
      Adverse Effect, setting out the action which is to be taken with respect
      to that matter.

19.6  OCCUPATIONAL LEASES

(1)   The Borrower shall not without the consent of the Agent:

      (a)   grant or agree to grant any Occupational Lease;

      (b)   agree to any amendment or waiver (other than a minor variation which
            would not affect Valuation) of an Occupational Lease (or any of its
            rights under it) or agree to any surrender of any Occupational
            Lease;

      (c)   grant any contractual licence or right to occupy all or any part of
            the Property;

      (d)   consent to any assignment or subletting of any tenant's or
            licensee's interest under any Occupational Lease (and the Agent
            shall act reasonably in relation to such consent if and to the
            extent that the Borrower is under an obligation to act reasonably in
            relation to such matters under any Occupational Lease);

      (e)   agree to any downward rent review in respect of any Occupational
            Lease;

      (f)   determine or forfeit (or commence any proceedings to forfeit) any
            Occupational Lease; or

                                       47

<PAGE>

      (g)   serve any notice on any former tenant under any Occupational Lease
            under s17(2) Landlord and Tenant (Covenants) Act 1995 or on any
            guarantor of any former tenant under s17(3) of that Act.

(2)   The Borrower shall procure that any guarantee or other assurance granted
      in the Borrower's favour in respect of Rental Income under any
      Occupational Lease which is capable of assignment is assigned to the
      Security Trustee immediately upon its being granted.

(3)   The Borrower shall forthwith notify the Agent in writing when it becomes
      entitled to serve any notice on any former tenant of any Occupational
      Lease under s17(2) Landlord and Tenant (Covenants) Act 1995 or on any
      guarantor of any former tenant under s17(3) of that Act.

(4)   The Borrower shall include in the alienation covenant in any new
      Occupational Lease covenants which are at least as onerous as the
      following:

      (a)   a requirement that on any assignment the proposed assignor shall
            guarantee the obligations of the proposed assignee until that
            assignee is released as tenant under the terms of the Landlord and
            Tenant (Covenants) Act 1995; and

      (b)   a provision prohibiting assignment to a group company of the
            proposed assignor unless that group company in the reasonable
            opinion of the landlord is of financial standing equivalent to or
            greater than the proposed assignor,

      and (without prejudice to Clause 19.6(1)(a)) the Borrower shall not agree
      any new Occupational Lease which does not include those provisions without
      the prior written consent of the Agent.

19.7  NEGATIVE PLEDGE

(1)   The Borrower shall not (and shall procure that no other Chargor shall)
      create or permit to subsist any Security Interest over any legal or
      beneficial interest it holds in the Property, any of the Charged Shares
      or, in respect of the Borrower only, any of its other assets.

(2)   Clause 19.7(1) does not apply to:

      (a)   any Security Interest comprised in the Finance Documents or granted
            with the prior written consent of the Agent; or

      (b)   any lien or right of set-off arising by operation of law in the
            ordinary course of business.

19.8  MANAGING AGENT

(1)   The Borrower shall not appoint a managing agent of the Property without
      the consent of the Agent.

(2)   The Borrower shall not dismiss the Managing Agent of the Property or agree
      to any material amendment to its management agreement without the consent
      of the Agent

                                       48

<PAGE>

      such consent not to be unreasonably withheld or delayed if the new
      Managing Agent is of a similar standard to the original Managing Agent
      appointed.

(3)   The Borrower shall procure that any Managing Agent, prior to its
      appointment, enters into a duty of care deed substantially in the Agreed
      Terms and acknowledges to the Agent that it has notice of the Security
      Interests created by the relevant Security Documents and that it agrees to
      pay all Rental Income received by it (if any) into the Rent Account
      without holding, set-off or counterclaim within seven days of receipt.

19.9  COMPULSORY PURCHASE

      The Borrower shall notify the Agent promptly upon its becoming aware of
      any proceedings or action being commenced for the compulsory purchase of
      all or part of the Property.

19.10 DISPOSALS

(1)   The Borrower shall not (and shall procure that no other Chargor shall)
      without the Agent's consent enter into a single transaction or a series of
      transactions (whether related or not and whether voluntary or involuntary)
      to sell, lease, transfer or otherwise dispose of any legal or beneficial
      interest in all or any part of the Property, any of the Charged Shares or,
      except in the ordinary course of trading any other asset.

(2)   Clause 19.10(1) does not apply to any payment of cash out of the Rent
      Account permitted under this Agreement.

(3)   Clause 19.10(1) shall not prohibit:

      (a)   the sale of all or any part of the Property where the proceeds are
            applied pursuant to Clause 7.3 (Mandatory prepayment (compulsory
            purchase)) or 7.4 (Mandatory prepayment (disposal)) and provided
            that the Loan, accrued interest, all amounts due under Clause 7.7
            (Miscellaneous prepayment provisions) and all other amounts
            outstanding under the Finance Documents are repaid in full; or

      (b)   in respect of the Charged Shares, a Permitted Shareholder Change.

(4)   If and to the extent that the Agent (in its absolute discretion) consents
      to a disposal of part of the Property (a "PART DISPOSAL") any such consent
      shall be subject to:

      (a)   there being no Default subsisting prior to or following the Part
            Disposal;

      (b)   a valuation being undertaken by the Valuer at the Borrower's cost in
            relation to the part of the Property which is the subject of the
            Part Disposal (the "DISPOSED PART") indicating a Market Value for
            the Disposed Part at or around the time of completion of the Part
            Disposal and a Market Value for the Disposed Part at or around the
            time of the Initial Valuation on the basis of such assumptions as
            may be specified by the Agent;

      (c)   the Borrower prepaying such part of the Loan as the Agent may in its
            absolute discretion specify taking into account the value of the
            Property after the Part

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<PAGE>

            Disposal and the value of that part of the Property which is the
            subject of the Part Disposal.

20.   FINANCIAL COVENANTS

20.1  LTV COVENANT

(1)   The Borrower shall ensure that the principal amount of the Loan shall not
      at any time up until the fifth anniversary of the Utilisation Date exceed
      80% of the Market Value of the Property as indicated in the Valuation.

(2)   The Borrower shall ensure that the principal amount of the Loan shall not
      at any time after the fifth anniversary of the Utilisation Date exceed 75%
      of the Market Value of the Property as indicated in the Valuation.

20.2  INTEREST COVER AND DEBT SERVICE COVENANTS

(1)   The Borrower shall ensure that on each Interest Payment Date:

      (a)   Actual Quarterly Rental Income is at least 140% of Actual Quarterly
            Finance Costs;

      (b)   Prospective Annual Rental Income is at least 140% of Prospective
            Annual Finance Costs;

      (c)   Actual Quarterly Rental Income is at least 110% of Actual Quarterly
            Debt Service Costs; and

      (d)   Prospective Annual Rental Income is at least 110% of Prospective
            Annual Debt Service Costs.

(2)   For the purposes of this Clause 20.2:

      "ACTUAL QUARTERLY DEBT SERVICE COSTS" on any Interest Payment Date means
      the aggregate of the Actual Quarterly Finance Costs on that date and any
      other payments due on that date under this Agreement including pursuant to
      Clause 6 (Repayment).

      "ACTUAL QUARTERLY FINANCE COSTS" on any Interest Payment Date means the
      aggregate amount of the interest and fees payable to the Finance Parties
      under the Finance Documents on that Interest Payment Date, adjusted to
      reflect payments (to or by the Borrower) due to be made on that day under
      any External Hedging Agreements.

      "ACTUAL QUARTERLY RENTAL INCOME" on any Interest Payment Date means:

      (a)   the aggregate of the Rental Income paid into the Rent Account in the
            Interest Period ending on that Interest Payment Date, excluding any
            Rental Income for which the due date occurred prior to the start of
            that Interest Period; less

      (b)   an amount equal to any service charge shortfall, irrecoverable
            management or other Losses resulting from voids and any head rent on
            any leasehold property

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            comprised in the Property, in each case sustained or incurred in
            that Interest Period.

      "PROSPECTIVE ANNUAL DEBT SERVICE COSTS" on any day means the aggregate of
      the Prospective Annual Finance Costs on that day and any other payments
      due under this Agreement in the year commencing on that day including
      pursuant to Clause 6 (Repayment) save for the final repayment of the Loan
      pursuant to Clause 6.2 (Repayment of the Loan).

      "PROSPECTIVE ANNUAL FINANCE COSTS" on any day means the Agent's reasonable
      estimate of the interest and fees which will be payable to the Finance
      Parties under the Finance Documents in the year commencing on that day,
      taking into account payments (to or by the Borrower) under any External
      Hedging Agreements.

      "PROSPECTIVE ANNUAL RENTAL INCOME" on any Interest Payment Date means the
      good faith estimate of the Borrower (produced at any time that the Agent
      may so request and subject to the approval of, and any reasonable
      amendment proposed by, the Agent) of the aggregate of the Rental Income
      likely to be received from the Property for the year commencing on that
      day.

      In calculating the Prospective Annual Rental Income, the Borrower shall:

      (a) exclude any Rental Income due from a tenant or licensee:

            (i)   which is an Affiliate of any Chargor;

            (ii)  which is in receivership, administration, liquidation or
                  bankruptcy or subject to any other form of insolvency
                  proceedings or any analogous proceedings in any applicable
                  jurisdiction;

            (iii) which has failed for two quarters (or, if an accommodation has
                  been agreed in writing by the Borrower with that tenant or
                  licensee to clear any outstanding arrears in full within 12
                  months, for three quarters including the quarter or quarters
                  preceding the accommodation) to pay the Rental Income due from
                  it in full; or

            (iv)  if and to the extent that the Borrower or the Agent, acting
                  reasonably on the basis of information received by it,
                  considers that the tenant or licensee is reasonably likely to
                  default on the payment of Rental Income in the relevant year;

      (b)   in respect of any unit in the Property which is subject to an
            Occupational Lease which will expire in the relevant year or which
            is subject to a tenant's break option exercisable in the relevant
            year, assume that no Rental Income will be received following expiry
            or, as the case may be, the first date on which the Occupational
            Lease could terminate if the break option is exercised;

      (c)   not include any amount in respect of any new or increased rent which
            might become payable by virtue of a new Occupational Lease or a rent
            review or other event or circumstance which will or might occur
            during the year, unless and to the extent that the Agent agrees to
            its inclusion; and

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      (d)   deduct an amount equal to any service charge shortfall,
            irrecoverable management or other Losses resulting from any voids
            and head rent on any leasehold property comprised in the Property in
            each case projected to be sustained or incurred in that year.

20.3  REMEDYING FINANCIAL COVENANT BREACHES

(1)   If any breach of Clause 20.1 (LTV covenant) or Clause 20.2 (Interest Cover
      and Debt service covenants) occurs, then the Borrower may remedy the
      breach as set out in Clause 20.3(2), (3) or (4).

(2)   The Borrower may remedy the breach by prepayment. To do this, the Borrower
      must prepay the Remedy Amount within seven Business Days of the breach
      occurring.

(3)   In the case of a breach of Clause 20.1 (LTV Covenant) resulting from a
      change in general (not specific to the Property, any Occupational Lease or
      any tenant under any Occupational Lease) assumptions used by the Valuer in
      any revaluation of the Property the Borrower may remedy the breach by
      depositing cash collateral. To do this, the Borrower must notify (the
      Agent within two Business Days of the revaluation that it wishes to remedy
      the breach pursuant to this Clause 20.3(3)). If the Borrower serves such a
      notice it must:

      (a)   deposit the Deposit Amount into an account designated for this
            purpose by the Agent within 180 days of the relevant revaluation (a
            "CASH COLLATERAL ACCOUNT");

      (b)   enter into any documentation required by the Agent to grant security
            over the Cash Collateral Account and all rights relating to it to
            the Security Trustee for the Finance Parties; and

      (c)   provide any legal opinions and other supporting documentation
            required by the Agent in connection with the deposit, the Cash
            Collateral Account and the security over it, in each case in form
            and substance satisfactory to the Agent.

      A breach of Clause 20.1 (LTV Covenant) as referred to in this Clause
      20.3(3) shall not be a Default or Event of Default provided that the
      Borrower is complying with this Clause 20.3(3).

(4)   If a deposit of cash collateral is made pursuant to Clause 20.3(3) and the
      breach of Clause 20.1 (LTV covenant) which necessitated that deposit has
      not been cured within twelve months of the breach, then the Borrower must
      immediately prepay the Remedy Amount and on the expiry of such twelve
      month period the Agent shall be entitled to apply the amount deposited in
      the Cash Collateral Account (and any interest earned on it) in partial
      prepayment of the Loan.

(5)   In this Clause 20.3:

      the "REMEDY AMOUNT" in relation to a breach of Clause 20.1 (LTV covenant)
      or, as the case may be, Clause 20.2 (Interest Cover and Debt service
      covenants) means the amount necessary to cure that breach. For the
      avoidance of doubt, the amount necessary to cure a breach of Clause 20.2
      (Interest Cover and Debt service covenants) is the amount of the reduction
      in the Loan which would result in the Prospective

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      Annual Finance Costs and/or Prospective Annual Debt Service Costs as
      applicable being reduced to a level sufficient to ensure compliance with
      the covenant; and

      the "DEPOSIT AMOUNT" on the date of any deposit pursuant to Clause
      20.3(3)(a) means an amount equal to the aggregate of the Actual Quarterly
      Finance Costs on the last two Interest Payment Dates.

21.   RENT ACCOUNT AND OTHER BANK ACCOUNTS

21.1  DETAILS OF BANK ACCOUNTS

(1)   The Borrower shall open and maintain a current account denominated "Prints
      (UK) QRS 16-1, INC Rent Account" (the "RENT ACCOUNT").

(2)   The Borrower shall not, without the prior written consent of the Agent,
      maintain any other bank account, other than any Lease Deposit Account,
      Cash Collateral Account or Disposal Proceeds Holding Account opened in
      accordance with this Agreement.

21.2  SIGNING RIGHTS ON RENT ACCOUNT

(1)   The Borrower shall ensure that each of the Borrower and the Agent shall
      have signing rights on the Rent Account

(2)   The Borrower shall ensure that the Agent is entitled to revoke the signing
      rights of the Borrower on the Rent Account by notice in writing to the
      relevant bank, but the Agent shall do so only following the occurrence of
      a Default which is continuing.

(3)   The Agent shall determine the signing rights on and (to the extent not
      specified in this Agreement) withdrawal rights from the Disposal Proceeds
      Holding Account and Cash Collateral Account.

21.3  PAYMENTS INTO THE BANK ACCOUNTS

      The Borrower shall ensure that all amounts received by or on behalf of the
      Borrower, including by any Managing Agent, are paid promptly upon receipt
      into the Rent Account and in particular shall ensure that:

      (a)   all tenants and other occupiers under Occupational Leases and loss
            of rent insurers are instructed to pay all Rental Income direct into
            the Rent Account or, if and to the extent that the Agent from time
            to time so agrees, to the Managing Agent;

      (b)   all Rental Income received by any Managing Agent is paid into the
            Rent Account within seven days of receipt;

      (c)   all other Rental Income received by or on behalf of the Borrower is
            paid promptly upon receipt into the Rent Account; and

      (d)   all amounts payable to it under any External Hedging Agreement are
            paid promptly upon receipt into the Rent Account.

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<PAGE>

21.4  PAYMENTS ON INTEREST PAYMENT DATES

      On each Interest Payment Date, the Borrower shall (to the extent that its
      signing rights on the Rent Account have not been revoked) pay the
      following items from the Rent Account (and if the credit balance in the
      Rent Account is insufficient to pay all those items, pay them in the
      following order and, where applicable, pro rata within each level):

      (a)   FIRST, any fees, costs and expenses of any Administrative Party due
            under any Finance Documents but unpaid;

      (b)   SECOND, any accrued interest or non-utilisation fee or fees payable
            to the Lenders due under this Agreement but unpaid, including
            interest falling due on that Interest Payment Date;

      (c)   THIRD, the principal element of any Instalment due but unpaid under
            this Agreement, including the Instalment falling due on that
            Interest Payment Date;

      (d)   FOURTH, any prepayment of the Loan to be made on that Interest
            Payment Date pursuant to Clause 7 (Prepayment and cancellation),
            unless that prepayment is to be made out of a Cash Collateral
            Account or Disposal Proceeds Holding Account;

      (e)   FIFTH, any payment due under any External Hedging Agreements but
            unpaid, including any payment falling due on that Interest Payment
            Date; and

      (f)   SIXTH, payments of any amounts in accordance with Clause 21.5 (Other
            withdrawals by the Borrower).

21.5  OTHER WITHDRAWALS BY THE BORROWER

(1)   Unless a Default is continuing, the Borrower may make withdrawals from the
      Rent Account for any purpose not prohibited by this Agreement, subject to
      the Subordination Deed.

(2)   If a Default is continuing the Borrower may not make any withdrawals from
      the Rent Account without the prior approval of the Agent save that the
      Borrower may, provided no Event of Default is then continuing, make (or
      instruct the Agent to make) payments out of the Rent Account to the
      relevant recipient of those amounts referred to in (g) of the definition
      of Rental Income.

(3)   The Borrower shall ensure that none of its bank accounts is overdrawn at
      any time.

21.6  WITHDRAWALS BY THE AGENT

(1)   The Agent may, on the Final Repayment Date or on the Loan becoming
      immediately due and payable under this Agreement, apply the moneys
      standing to the credit of the Rent Account in or towards repayment of the
      Loan and all other amounts due to the Finance Parties under the Finance
      Documents.

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<PAGE>

(2)   The Agent may, at any time a Default is continuing, authorise withdrawals
      at any time from the Rent Account to pay any amount due and payable to a
      Finance Party under the Finance Documents or to make any other payment on
      behalf of the Borrower.

(3)   No Finance Party shall be responsible to any Chargor for any non-payment
      of any liability of any Chargor which could be paid out of moneys standing
      to the credit of the Rent Account or any other account. No Finance Party
      shall be liable to any Chargor for any withdrawal wrongly made if made in
      good faith and not negligently.

(4)   The Agent may delegate its powers of withdrawal under this Clause 21.6 to
      any administrative receiver, receiver and/or manager.

21.7  CHANGE OF BANK ACCOUNTS

(1)   If the Agent so reasonably requests at any time, the Rent Account shall be
      moved to another bank.

(2)   A change shall only become effective upon the proposed new bank agreeing
      with each of the Agent and the Borrower, in a manner satisfactory to the
      Agent, to fulfil the role of the bank holding the relevant account(s).

22.   GENERAL UNDERTAKINGS

22.1  AUTHORISATIONS

      The Borrower shall promptly:

      (a)   obtain, comply with and do all that is necessary to maintain in full
            force and effect; and

      (b)   supply certified copies to the Agent of,

      any Authorisation required under any law or regulation of its jurisdiction
      of incorporation to enable it to perform its obligations under the Finance
      Documents and to ensure the legality, validity, enforceability or
      admissibility in evidence in its jurisdiction of incorporation of any
      Finance Document.

22.2  COMPLIANCE WITH LAWS (INCLUDING TAX PAYMENTS)

      The Borrower shall:

      (a)   comply in all respects with any Money Laundering Regulations to
            which it is subject;

      (b)   comply in all respects with all other laws and regulations to which
            it may be subject, but only if failure so to comply would be
            reasonably likely to materially impair its ability to perform its
            material obligations under the Finance Documents; and

      (c)   in particular pay when due all Taxes payable by it, except where it
            is contesting the liability in good faith by appropriate means and
            has established a full reserve for the contested Tax.

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<PAGE>

22.3  NO CHANGE OF BUSINESS

(1)   The Borrower shall not make any substantial change to the general nature
      of its business from that carried on, or to Agent's knowledge
      contemplated, on the date of this Agreement. In particular, the Borrower
      shall not carry on any business other than the ownership and management of
      the Property.

(2)   The Borrower shall maintain its centre of main interest, (for the purpose
      of EU Council Regulation 1346/2000 EC on Insolvency Proceedings) outside
      the European Union unless the Agent agrees otherwise (such agreement not
      to be unreasonably withheld or delayed).

22.4  No CHANGE TO CONSTITUTIONAL DOCUMENTS

      The Borrower shall not make any change to its constitutional documents
      without the prior written consent of the Agent, that consent not to be
      unreasonably withheld.

22.5  DISTRIBUTIONS AND NEW SHARES

(1)   The Borrower shall not:

      (a)   pay any dividend or make any other distribution or payment to any of
            its shareholders; or

      (b)   redeem or purchase any of its own shares, debentures or other
            securities,

      other than a payment, dividend, distribution, redemption or purchase
      funded by a payment made out of the Rent Account in accordance with Clause
      21.5(1) (Other withdrawals by the Borrower).

(2)   The Borrower shall not issue, or change the terms relating to, any shares,
      debentures or other securities.

22.6  CORPORATE TRANSACTIONS AND ACQUISITIONS

(1)   The Borrower shall not enter into any amalgamation, demerger, merger or
      corporate reconstruction (except as disclosed in writing to the Agent
      prior to the date of this Agreement or as permitted under this Agreement)
      have any Subsidiary.

(2)   The Borrower shall not acquire any business or other assets or make any
      investment other than the Property and other assets and investments
      consistent with its only business being as specified in Clause 22.3 (No
      change of business).

22.7  LENDING AND BORROWING

(1)   The Borrower shall not make any loan, grant any other form of credit or
      give any guarantee or indemnity to or for the benefit of any person or in
      respect of any obligation of any other person, except for any loans made
      to the Borrower which are the subject of the Subordination Deed.

(2)   The Borrower shall not (and shall procure that no other Chargor shall)
      incur any Financial Indebtedness, other than:

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<PAGE>

      (a)   under the Finance Documents;

      (b)   any loans made to the Borrower by a Shareholder, provided that the
            loan is subject to the Subordination Deed; or

      (c)   pursuant to any External Hedging Agreement entered into with the
            prior written consent of the Agent.

22.8  TRANSACTIONS SIMILAR TO SECURITY INTERESTS

      The Borrower shall not:

      (a)   sell, transfer or otherwise dispose of any of its assets on terms
            under which they are or may be leased to or re-acquired by any
            Chargor;

      (b)   sell, transfer or otherwise dispose of any of its receivables on
            recourse terms;

      (c)   enter into any arrangement under which money or the benefit of a
            bank or other account may be applied, set-off or made subject to a
            combination of accounts; or

      (d)   enter into any other preferential arrangement having a similar
            effect,

      in circumstances where the arrangement or transaction is entered into
      primarily as a method of raising Financial Indebtedness or of financing
      the acquisition of an asset.

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<PAGE>

                                    SECTION 9

                                EVENTS OF DEFAULT

23.   EVENTS OF DEFAULT

      Each of the events or circumstances set out in Clause 23.1 (Non-payment)
      to 23.12 (Material adverse change) inclusive is an "EVENT OF DEFAULT".

23.1  NON-PAYMENT

      Any Chargor does not pay on the due date any amount payable pursuant to a
      Finance Document at the place at which, and in the currency in which, it
      is expressed to be payable, unless:

      (a)   the failure to pay is caused by administrative or technical error;
            and

      (b)   payment is made within three Business Days of its due date.

23.2  BREACH OF FINANCIAL COVENANTS

      A breach of Clause 20 (Financial covenants) occurs and is not remedied
      pursuant to Clause 20.3 (Remedying financial covenant breaches).

23.3  OTHER OBLIGATIONS

(1)   The Borrower does not comply with any of the provisions of Clauses 7.1 to
      7.4 (Prepayment and cancellation), or with any of Clauses 19.6
      (Occupational Leases), 19.7 (Negative pledge) and 19.10 (Disposals).

(2)   Any party to any Finance Document (other than a Finance Party) does not
      comply with any provision of any Finance Document (other than those
      referred to in Clause 23.1 (Non-payment), 23.2 (Breach of financial
      covenants) or 23.3(1)) or any other agreement or other document to which
      it and any Finance Party are parties.

(3)   No Event of Default under Clause 23.3(2) will occur if the failure to
      comply is capable of remedy and is remedied within ten Business Days of
      the Agent giving notice to the Borrower or the Borrower otherwise becoming
      aware of the failure to comply.

23.4  MISREPRESENTATION

      Any representation or statement made or deemed to be made by any Chargor
      in any Finance Document (or any other document delivered under or in
      connection with any Finance Document) is or proves to have been incorrect
      or misleading in any material respect when made or deemed to be made.

23.5  CROSS DEFAULT

(1)   Any Financial Indebtedness of the Borrower is not paid when due nor within
      any originally applicable grace period (save for any Financial
      Indebtedness which is the subject of the Subordination Deed).

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<PAGE>

(2)   Any Financial Indebtedness of the Borrower is declared to be or otherwise
      becomes due and payable prior to its specified maturity as a result of an
      event of default (however described in the relevant document).

(3)   Any commitment for any Financial Indebtedness of the Borrower is cancelled
      or suspended by a creditor the Borrower as a result of an event of default
      (however described in the relevant document).

(4)   Any creditor of the Borrower becomes entitled to declare any of that
      party's Financial Indebtedness due and payable prior to its specified
      maturity as a result of an event of default (however described in the
      relevant document).

23.6  INSOLVENCY

(1)   The Borrower is unable or admits inability to pay its debts as they fall
      due, suspends making payments on any of its debts or, by reason of actual
      or anticipated financial difficulties, commences negotiations with one or
      more of its creditors with a view to rescheduling any of its indebtedness.

(2)   The value of the assets of the Borrower is less than its liabilities
      (taking into account contingent and prospective liabilities).

(3)   A moratorium is declared in respect of any indebtedness of the Borrower.

23.7  INSOLVENCY PROCEEDINGS

      Any corporate action, legal proceedings or other procedure or step is
      taken in relation to:

      (a)   the suspension of payments, a moratorium of any indebtedness,
            winding-up, dissolution, administration or reorganisation (by way of
            voluntary arrangement, scheme of arrangement or otherwise) of the
            Borrower other than a winding-up petition which the Agent is
            reasonably satisfied is frivolous or vexatious and is withdrawn or
            dismissed within 7 Business Days of issue;

      (b)   a composition, assignment or arrangement with any creditor of the
            Borrower;

      (c)   the appointment of a liquidator, administrator, administrative or
            other receiver, compulsory manager or other similar officer in
            respect of the Borrower or any of its assets; or

      (d)   the enforcement of any Security Interest over any assets of any
            party to the Borrower,

      or any analogous procedure or step is taken in any jurisdiction.

23.8  CREDITORS' PROCESS AND JUDGMENTS

(1)   Any expropriation, attachment, sequestration, distress or execution
      affects any asset or assets of the Borrower not discharged within fourteen
      days.

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<PAGE>

(2)   Any judgment or order made against the Borrower is not complied with
      within seven Business Days provided that this shall not be an Event of
      Default if and for so long as the Borrower is (on the advice of Counsel
      that there are good prospects of success) expeditiously pursuing an appeal
      and the making of the judgment or order and/or the non-compliance does not
      have a Material Adverse Effect.

(3)   An order is made for the compulsory acquisition of all or part of the
      Property the result of which if the acquisition is completed would be that
      a breach of Clause 20 (Financial covenants) will occur unless such order
      is at least three months before the completion of the compulsory
      acquisition whereupon the Borrower will have 10 Business Days, within
      which to remedy the breach by prepaying the Loan and all other amounts
      outstanding under the Finance Documents or such other amount as may be
      agreed by the Lenders.

23.9  UNLAWFULNESS

(1)   It is or becomes unlawful for any Chargor to perform any of its
      obligations under the Finance Documents.

(2)   Any Security Interest created by the Security Documents is not or ceases
      to be in full force and effect.

23.10 REPUDIATION

      Any Chargor repudiates a Finance Document or evidences an intention to
      repudiate a Finance Document.

23.11 MATERIAL TENANT

      Any of the events referred to in Clauses 23.6 (Insolvency), 23.7
      (Insolvency proceedings), 23.9 (Unlawfulness) or 23.10 (Repudiation)
      occurs in respect of any Material Tenant (as if for this purpose the
      relevant Occupational Lease was a Finance Document). In this Clause 23.11,
      a "MATERIAL TENANT" means Polestar Petty Limited, Polestar Holdings
      Limited, Polestar Petty Bindery Limited, Polestar Magazines & Catalogues
      Limited, Watmoughs (Holdings) Limited, Polestar Group Limited and any
      other person that becomes a guarantor under the Occupational Lease dated
      on or about the date of this Agreement and made between the Borrower and
      Polestar Petty Limited in accordance with the provisions of such lease
      provided that this shall not include any person that has been released as
      guarantor under such Occupational Lease in accordance with its terms with
      the prior written consent of the Agent (such consent not to be
      unreasonably withheld).

23.12 MATERIAL ADVERSE CHANGE

(1)   Any major uninsured loss or damage occurs at, to or in connection with the
      Property.

(2)   Any other event or series of events occurs which, in the reasonable
      opinion of the Majority Lenders would be reasonably likely to have a
      Material Adverse Effect unless (i) that Material Adverse Effect would not
      have a material adverse effect on the Borrower's ability to meet its
      payment obligations under the Finance Documents; or (ii) in the Agent's
      opinion such event or series of events are capable of remedy and do not
      affect the Borrower's ability to perform its payment obligations under the
      Finance

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<PAGE>

      Documents and are remedied within a period of 15 Business Days form the
      occurrence of such event or series of events.

23.13 ACCELERATION

      On and at any time after the occurrence of an Event of Default which is
      continuing the Agent may, and shall if so directed by the Majority Lenders
      (in the case of (a) to (c)) or the relevant Lender (in the case of (d)),
      by notice to the Borrower:

      (a)   cancel the Total Commitments and if it does so they shall
            immediately be cancelled;

      (b)   declare that all or part of the Loan, together with accrued
            interest, and all other amounts accrued under the Finance Documents
            be immediately due and payable and if it does so they shall become
            immediately due and payable;

      (c)   declare that all or part of the Loan be payable on demand and if it
            does so it shall immediately become payable on demand by the Agent
            on the instructions of the Majority Lenders; and/or

      (d)   notify the Borrower that a Fixed Rate applicable to all or part of
            the participations in the Loan of one or more Lenders has been
            terminated pursuant to Clause 8.6(2) (Implementation of fixed rate).

23.14 RIGHT TO OBTAIN REPORTS

(1)   Without prejudice to any other rights or remedies of the Agent and the
      Lenders pursuant to Clause 23.13 (Acceleration), on and at any time after
      the occurrence of an Event of Default which is continuing the Agent may,
      at the expense of the Borrower, appoint in the Agent's discretion any
      appropriate professional advisers to investigate the affairs of the
      Chargors and/or any matter regarding the Property, report on them and make
      recommendations.

(2)   The Borrower shall (and shall procure that each other Chargor shall)
      afford full co-operation with any advisers appointed pursuant to Clause
      23.14(1).

(3)   The Agent shall circulate copies of the report of any advisers appointed
      pursuant to Clause 23.14(1) to the Lenders promptly on receipt and, within
      14 days of receipt, release copies of it to the Borrower for the purposes
      of information only. Neither the Agent nor any advisers appointed under
      Clause 23.14(1) will as a result of that circulation or release incur any
      professional or other liability to any Chargor or any other person.

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                                   SECTION 10

                         CHANGES TO LENDERS AND BORROWER

24.   CHANGES TO THE LENDERS

24.1  ASSIGNMENTS AND TRANSFERS BY THE LENDERS

(1)   Subject to this Clause 24, a Lender (the "EXISTING LENDER") may:

      (a)   assign any of its rights; or

      (b)   transfer by novation any of its rights and obligations,

      to another bank or financial institution (the "NEW LENDER"). Unless the
      Agent agrees otherwise, any partial assignment or transfer must be in an
      integral multiple of (pound)2,000,000.

(2)   The Borrower shall (and shall procure that each other Chargor shall)
      provide any assistance which the Agent may reasonably require in
      connection with the proposed initial syndication of the Facility by the
      Original Lender, including:

      (a)   providing information for and reviewing any information memorandum
            prepared for the purpose of the syndication; and

      (b)   making available appropriate senior personnel to make presentations
            to potential syndicate members and provide information to enable the
            Agent to respond to questions raised by them.

24.2  CHANGE OF FACILITY OFFICE

      Any Lender may change its Facility Office at any time by giving no less
      than five Business Days' notice to the Agent.

24.3  CONDITIONS OF ASSIGNMENT OR TRANSFER

(1)   The consent of the Borrower is not required for an assignment or transfer
      by a Lender.

(2)   An assignment will only be effective on receipt by the Agent of written
      confirmation from the New Lender (in form and substance satisfactory to
      the Agent) that the New Lender will assume the same obligations to the
      other Finance Parties as it would have been under if it had been a Lender
      under this Agreement from its execution.

(3)   A transfer will only be effective if the procedure set out in Clause 24.6
      (Procedure for transfer) is complied with.

(4)   If:

      (a)   a Lender assigns or transfers any of its rights or obligations under
            the Finance Documents or changes its Facility Office; and

      (b)   as a result of circumstances existing at the date the assignment,
            transfer or change occurs, the Borrower would be obliged to make a
            payment under

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            Clause 12 (Tax gross-up and indemnities) or Clause 13 (Increased
            Costs) to the New Lender or to the Lender acting through its new
            Facility Office,

      then the New Lender or, as the case may be, the Lender acting through its
      new Facility Office will only be entitled to receive payment under those
      Clauses to the same extent as the Existing Lender or, as the case may be,
      the Lender acting through its previous Facility Office would have been if
      the assignment, transfer or change had not occurred.

24.4  ASSIGNMENT OR TRANSFER FEE

      The New Lender shall, on the date upon which an assignment or transfer
      takes effect, pay to the Agent (for its own account) a fee of
      (pound)1,000.

24.5  LIMITATION OF RESPONSIBILITY OF EXISTING LENDERS

(1)   Unless expressly agreed to the contrary, an Existing Lender makes no
      representation or warranty and assumes no responsibility to a New Lender
      for:

      (a)   the legality, validity, effectiveness, adequacy or enforceability of
            the Finance Documents or any other document;

      (b)   the financial condition of any Chargor;

      (c)   the performance and observance by any Chargor of its obligations
            under the Finance Documents or any other documents; or

      (d)   the accuracy of any statements (whether written or oral) made in or
            in connection with any Finance Document or any other document,

      and any representations or warranties which would otherwise be implied by
      law are excluded.

(2)   Each New Lender confirms to the Existing Lender and the other Finance
      Parties that it:

      (a)   has made (and shall continue to make) its own independent
            investigation and assessment of the financial condition and affairs
            of each Chargor and its related entities in connection with its
            participation in this Agreement and has not relied exclusively on
            any information provided to it by the Existing Lender in connection
            with any Finance Document; and

      (b)   will continue to make its own independent appraisal of the
            creditworthiness of each Chargor and its related entities whilst any
            amount is or may be outstanding under the Finance Documents or any
            Commitment is in force.

(3)   Nothing in any Finance Document obliges an Existing Lender to:

      (a)   accept a re-transfer from a New Lender of any of the rights and
            obligations assigned or transferred under this Clause 24; or

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      (b)   support any Losses directly or indirectly sustained or incurred by
            the New Lender by reason of the non-performance by any Chargor of
            its obligations under the Finance Documents or otherwise.

24.6  PROCEDURE FOR TRANSFER

(1)   Subject to the conditions set out in Clause 24.3 (Conditions of assignment
      or transfer), a transfer is effected in accordance with Clause 24.3 when
      the Agent executes an otherwise duly completed Transfer Certificate
      delivered to it by the Existing Lender and the New Lender. The Agent
      shall, as soon as reasonably practicable after receipt by it of a duly
      completed Transfer Certificate appearing on its face to comply with the
      terms of this Agreement and delivered in accordance with the terms of this
      Agreement, execute that Transfer Certificate for itself and on behalf of
      the other Parties (apart from the Existing Lender).

(2)   On the Transfer Date:

      (a)   to the extent that in the Transfer Certificate the Existing Lender
            seeks to transfer by novation its rights and obligations under the
            Finance Documents, each Chargor and the Existing Lender shall be
            released from further obligations towards one another under the
            Finance Documents and their respective rights against one another
            (the "DISCHARGED RIGHTS AND OBLIGATIONS") shall be cancelled;

      (b)   each Chargor and the New Lender shall assume obligations towards one
            another and/or acquire rights against one another which differ from
            the Discharged Rights and Obligations only insofar as that Chargor
            and the New Lender have assumed and/or acquired the same in place of
            that Chargor and the Existing Lender;

      (c)   the Administrative Parties, the New Lender and the other Lenders
            shall acquire the same rights and assume the same obligations
            between themselves as they would have acquired and assumed had the
            New Lender been a Lender under this Agreement from its execution
            with the rights and/or obligations acquired or assumed by it as a
            result of the transfer and to that extent the Administrative Parties
            and the Existing Lender shall each be released from further
            obligations to each other under the Finance Documents; and

      (d)   the New Lender shall become a Party as a "Lender".

(3)   The Agent shall promptly notify the Borrower and the Lenders of its
      receipt and execution of any Transfer Certificate.

24.7  TRANSFERS BY BUILDING SOCIETIES

(1)   Clause 24.7(2) applies in relation to a Finance Party which is a Building
      Society (a "BUILDING SOCIETY PARTY") which:

      (a)   amalgamates with one or more other Building Societies pursuant to
            s93 Building Societies Act 1986 (the "ACT");

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      (b)   transfers all or some of its engagements (including those under the
            Finance Documents) to another Building Society pursuant to s94 of
            the Act; or

      (c) transfers the whole of its business in accordance with s97 of the Act.

(2)   If this Clause 24.7(2) applies then all of the rights and obligations of
      the Building Society Party under the Finance Documents shall automatically
      be transferred pursuant to those provisions of the Act to the immediate
      successor or transferee of the Building Society Party (its "SUCCESSOR").

(3)   Accordingly:

      (a)   if the Building Society Party is a Lender, Clause 24.6(2) (Procedure
            for transfer) shall apply as if the Building Society Party, the
            Successor and the Agent had executed a Transfer Certificate for the
            transfer of the Building Society Party's entire participation in the
            Loan with effect from the date of the amalgamation or transfer; and

      (b)   if the Building Society Party is an Administrative Party, Clause
            25.12(4), if applicable, and (6) (Resignation) and Clause 25.17(2)
            (Security Documents), if applicable, shall apply as if the Successor
            had been appointed as the successor to the Building Society Party in
            each relevant capacity with effect from the date of the amalgamation
            or transfer.

24.8  DISCLOSURE OF INFORMATION

(1)   Any Lender may disclose to any of its Affiliates, any of its professional
      advisers and any other person:

      (a)   to (or through) whom that Lender assigns or transfers (or may
            potentially assign or transfer) all or any of its rights and
            obligations under this Agreement;

      (b)   with (or through) whom that Lender enters into (or may potentially
            enter into) any sub-participation in relation to, or any other
            transaction under which payments are to be made by reference to,
            this Agreement; or

      (c)   to whom, and to the extent that, information is required to be
            disclosed by any applicable law or regulation,

      any information about any Chargor and the Finance Documents as that Lender
      shall consider appropriate.

(2)   No information may be disclosed by a Lender pursuant to Clause 24.8(1)(a)
      or (b) to any person (other than an Affiliate of that Lender or a
      professional adviser) unless that person first provides to that Lender a
      written undertaking to keep the information to be discussed confidential
      and not to use it, or knowingly permit or allow it to be used, for any
      unauthorised purpose.

(3)   The Borrower shall (and shall procure that each other Chargor shall) keep
      the terms of this Agreement confidential and not disclose them without the
      Agent's consent except to its professional advisers and as required by
      law.
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24.9  ASSIGNMENTS AND TRANSFER BY THE CHARGORS

      The Borrower shall not (and shall procure that no other Chargor shall)
      assign any of its rights or transfer any of its rights or obligations
      under the Finance Documents.

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                                   SECTION 11

                               THE FINANCE PARTIES

25.   ROLE OF THE ADMINISTRATIVE PARTIES

25.1  APPOINTMENT OF THE AGENT AND THE SECURITY TRUSTEE

(1)   Each of the Arranger and the Lenders appoints the Agent to act as its
      agent under and in connection with the Finance Documents.

(2)   Each of the Arranger and the Lenders authorises the Agent to exercise the
      rights, powers, authorities and discretions specifically given to the
      Agent under or in connection with the Finance Documents together with any
      other incidental rights, powers, authorities and discretions.

(3)   Each of the Arranger, the Agent and the Lenders irrevocably appoints the
      Security Trustee to act as its trustee in connection with the Security
      Documents.

(4)   Each of the Arranger, the Agent and the Lenders authorises the Security
      Trustee to exercise the rights, powers, authorities and discretions
      specifically given to the Security Trustee under or in connection with the
      Finance Documents together with any other incidental rights, powers,
      authorities and discretions.

25.2  ROLE OF THE ARRANGER

      Except as specifically provided in the Finance Documents, the Arranger has
      no obligations of any kind to any other Party under or in connection with
      any Finance Document.

25.3  ROLE OF THE AGENT

(1)   The Agent shall promptly forward to a Party the original or a copy of any
      document which is delivered to the Agent for that Party by any other
      Party.

(2)   If the Agent receives notice from a Party referring to this Agreement,
      describing a Default and stating that the circumstance described is a
      Default, it shall promptly notify the Lenders.

(3)   The Agent shall promptly notify the Lenders of any Default arising under
      Clause 23.1 (Non-payment).

(4)   The Agent does not have any duties except those expressly set out in the
      Finance Documents. Its duties under the Finance Documents are solely
      mechanical and administrative in nature.

25.4  ROLE OF THE SECURITY TRUSTEE

(1)   The Security Trustee shall hold the benefit of the Security Documents on
      trust for the Finance Parties.

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(2)   If the Security Trustee receives notice from a Party referring to this
      Agreement, describing a Default and stating that the circumstance
      described is a Default, it shall promptly notify the Lenders.

(3)   The Security Trustee does not have any duties except those expressly set
      out in the Finance Documents.

25.5  NO FIDUCIARY DUTIES

(1)   Except as expressly provided in this Clause 25, nothing in the Finance
      Documents constitutes the Arranger or the Agent as a trustee or fiduciary
      of any other person.

(2)   None of the Arranger, the Agent and the Security Trustee shall be bound to
      account to any Lender for any sum or the profit element of any sum
      received by it for its own account.

25.6  BUSINESS WITH THE CHARGORS

      Each of the Administrative Parties may accept deposits from, lend money
      to, invest in and generally engage in any kind of banking or other
      business with any Chargor and any Affiliate of any Chargor.

25.7  RIGHTS AND DISCRETIONS OF THE AGENT AND THE SECURITY TRUSTEE

(1)   Each of the Agent and the Security Trustee may rely on:

      (a)   any representation, notice or document believed by it to be genuine,
            correct and appropriately authorised; and

      (b)   any statement made by a director, authorised signatory or employee
            of any person regarding any matters which may reasonably be assumed
            to be within his or her knowledge or within his or her power to
            verify.

(2)   Each of the Agent and the Security Trustee may assume (unless in the case
      of the Agent it has received notice to the contrary in its capacity as
      agent for the Lenders) that:

      (a)   no Default has occurred (unless it has actual knowledge of a Default
            arising under Clause 23.1 (Non-payment));

      (b)   any power, authority, discretion or other right vested in any Party
            or the Majority Lenders has not been exercised; and

      (c)   any notice or request made by the Borrower (other than a Utilisation
            Request) is made on behalf of and with the consent and knowledge of,
            each Chargor.

(3)   Each of the Agent and the Security Trustee may engage, pay for and rely on
      the advice or services of any lawyers, accountants, surveyors or other
      experts.

(4)   Each of the Agent and the Security Trustee may act in relation to the
      Finance Documents through its personnel and agents.

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(5)   Notwithstanding that two or more of the Administrative Parties and the
      Original Lender may from time to time be the same entity, that entity has
      entered into the Finance Documents in those separate capacities. However,
      where the Finance Documents provide for any of the Administrative Parties
      and the Original Lender to provide instructions to or otherwise
      communicate with one or more of the others of them, then for so long as
      they are the same entity it will not be necessary for there to be any
      formal instructions or other communication, notwithstanding that the
      Finance Documents provide in certain cases for the same to be in writing.

25.8  MAJORITY LENDERS' INSTRUCTIONS

(1)   Unless a contrary indication appears in a Finance Document, each of the
      Agent and the Security Trustee shall:

      (a)   act in accordance with any instructions given to it by the Majority
            Lenders (or, if so instructed by the Majority Lenders, refrain from
            acting or exercising any power, authority, discretion or other right
            vested in it as Agent or, as the case may be, Security Trustee); and

      (b)   not be liable for any act (or omission) if it acts (or refrains from
            taking any action) in accordance with an instruction of the Majority
            Lenders.

(2)   Unless a contrary indication appears in a Finance Document, any
      instructions given by the Majority Lenders will be binding on all the
      Lenders.

(3)   Each of the Agent and the Security Trustee may refrain:

      (a)   from acting in accordance with the instructions of the Majority
            Lenders (or, if appropriate, the Lenders) until it has received such
            security as it may require for any Losses (including any associated
            irrevocable VAT) which it may incur in complying with the
            instructions; and

      (b)   from doing anything which may in its opinion be a breach of any law
            or duty of confidentiality or be otherwise actionable at the suit of
            any person.

(4)   In the absence of instructions from the Majority Lenders (or, if
      appropriate, the Lenders), each of the Agent and the Security Trustee may
      act (or refrain from taking action) as it considers to be in the best
      interest of the Lenders.

(5)   Neither the Agent nor the Security Trustee is authorised to act on behalf
      of a Lender (without first obtaining that Lender's consent) in any legal
      or arbitration proceedings relating to any Finance Document.

25.9  RESPONSIBILITY FOR DOCUMENTATION

      None of the Administrative Parties:

      (a)   is responsible for the adequacy, accuracy and/or completeness of any
            information (whether oral or written) supplied by any Administrative
            Party, any Chargor or any other person given in or in connection
            with any Finance Document; or

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<PAGE>

      (b)   is responsible for the legality, validity, effectiveness, adequacy
            or enforceability of any Finance Document or any other agreement,
            arrangement or other document entered into, made or executed in
            anticipation of or in connection with any Finance Document.

25.10 EXCLUSION OF LIABILITY

(1)   Without limiting Clause 25.10(2), no Administrative Party will be liable
      for any action taken by it under or in connection with any Finance
      Document, unless directly caused by its gross negligence or wilful
      misconduct.

(2)   No Party may take any proceedings against any officer, employee or agent
      of any Administrative Party in respect of any claim it might have against
      the Administrative Party or in respect of any act or omission of any kind
      by that officer, employee or agent in relation to any Finance Document.
      Any officer, employee or agent of the Administrative Party may rely on
      this Clause 25.10(2).

(3)   Neither the Agent nor the Security Trustee will be liable for any delay
      (or any related consequences) in crediting an account with an amount
      required under the Finance Documents to be paid by the Agent or the
      Security Trustee if the Agent or, as the case may be, the Security Trustee
      has taken all necessary steps as soon as reasonably practicable to comply
      with the regulations or operating procedures of any recognised clearing or
      settlement system used by the Agent or, as the case may be, the Security
      Trustee for that purpose.

25.11 LENDERS' INDEMNITY TO THE ADMINISTRATIVE PARTIES

      Each Lender shall (in proportion to its share of the Total Commitments or,
      if the Total Commitments are then zero, to its share of the Total
      Commitments immediately prior to their reduction to zero) indemnify each
      Administrative Party, within three Business Days of demand, against any
      Losses sustained or incurred by the Administrative Party (otherwise than
      by reason of the Administrative Party's gross negligence or wilful
      misconduct) in acting as Arranger, Agent or, as the case may be, the
      Security Trustee under the Finance Documents (unless the Administrative
      Party has been reimbursed by a Chargor pursuant to a Finance Document).

25.12 RESIGNATION

(1)   The Agent or the Security Trustee may resign and appoint one of its
      Affiliates acting through an office in the United Kingdom as successor by
      giving notice to the other Parties.

(2)   Alternatively the Agent or the Security Trustee may resign by giving
      notice to the other Parties, in which case the Majority Lenders (after
      consultation with the Borrower) may appoint a successor Agent or, as the
      case may be, Security Trustee.

(3)   If the Majority Lenders have not appointed a successor Agent or, as the
      case may be, Security Trustee in accordance with Clause 25.12(2) within 30
      days after notice of resignation was given, the Agent or, as the case may
      be, Security Trustee (after consultation with the Borrower) may appoint a
      successor Agent or, as the case may be, Security Trustee (acting through
      an office in the United Kingdom).

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(4)   The retiring Agent or, as the case may be, Security Trustee shall, at its
      own cost, make available to the successor Agent or, as the case may be,
      Security Trustee such documents and records and provide such assistance as
      the successor Agent or, as the case may be, Security Trustee may
      reasonably request for the purposes of performing its functions as Agent
      or, as the case may be, Security Trustee under the Finance Documents.

(5)   A notice of resignation from the Agent or Security Trustee shall only take
      effect upon the appointment of a successor.

(6)   Upon the appointment of a successor, the retiring Agent or, as the case
      may be, Security Trustee shall be discharged from any further obligation
      in respect of the Finance Documents but shall remain entitled to the
      benefit of this Clause 25. Its successor and each of the other Parties
      shall have the same rights and obligations amongst themselves as they
      would have had if the successor had been an original Party.

(7)   After consultation with the Borrower, the Majority Lenders may, by notice
      to the Agent or, as the case may be, Security Trustee, require it to
      resign in accordance with Clause 25.12(2). In this event, the Agent or, as
      the case may be, Security Trustee shall resign in accordance with Clause
      25.12(2).

25.13 CONFIDENTIALITY

(1)   In acting as agent for the Lenders and security trustee for the Finance
      Parties respectively, each of the Agent and the Security Trustee shall be
      regarded as acting through its syndication or agency division which shall
      be treated as a separate entity from any other of its divisions or
      departments.

(2)   If information is received by another division or department of the Agent
      or the Security Trustee, it may be treated as confidential to that
      division or department and the Agent or, as the case may be, the Security
      Trustee shall not be deemed to have notice of it.

(3)   Notwithstanding any other provision of any Finance Document to the
      contrary, none of the Administrative Parties is obliged to disclose to any
      other person:

      (a)   any confidential information; or

      (b)   any other information if the disclosure would or might in its
            reasonable opinion constitute a breach of any law or a breach of a
            fiduciary duty.

25.14 RELATIONSHIP WITH THE LENDERS

(1)   The Agent and the Security Trustee may treat each Lender as a Lender,
      entitled to payments under this Agreement and acting through its Facility
      Office unless it has received not less than five Business Days' prior
      notice from that Lender to the contrary in accordance with the terms of
      this Agreement.

(2)   Each Lender shall supply the Agent with any information required by the
      Agent in order to calculate the Associated Costs in accordance with
      Schedule 6 (Mandatory Cost formula).

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25.15 CREDIT APPRAISAL BY THE LENDERS

      Without affecting the responsibility of any Chargor for information
      supplied by it or on its behalf in connection with any Finance Document,
      each Lender confirms to each Administrative Party that it has been, and
      will continue to be, solely responsible for making its own independent
      appraisal and investigation of all risks arising under or in connection
      with any Finance Document, including:

      (a)   the financial condition, status and nature of each Chargor;

      (b)   the legality, validity, effectiveness, adequacy or enforceability of
            any Finance Document and any other agreement, arrangement or
            document entered into, made or executed in anticipation of, under or
            in connection with any Finance Document;

      (c)   whether that Lender has recourse, and the nature and extent of that
            recourse, against any Party (or any Chargor which is not a Party) or
            any of its respective assets under or in connection with any Finance
            Document, the transactions contemplated by the Finance Documents or
            any other agreement, arrangement or other document entered into,
            made or executed in anticipation of, under or in connection with any
            Finance Document; and

      (d)   the adequacy, accuracy and/or completeness of any information
            provided by any Administrative Party, any other Party or any other
            person under or in connection with any Finance Document, the
            transactions contemplated by the Finance Documents or any other
            agreement, arrangement or other document entered into, made or
            executed in anticipation of, under or in connection with any Finance
            Document.

25.16 MANAGEMENT TIME

      Any amount payable to the Agent or the Security Trustee under Clause 15.5
      (Indemnity to the Agent), Clause 16 (Costs and expenses) and Clause 25.11
      (Lenders' indemnity to the Administrative Parties) shall include the cost
      of utilising the Agent's or, as the case may be, Security Trustee's
      management time or other resources (which will be calculated on the basis
      of such reasonable daily or hourly rates as the Agent or, as the case may
      be, Security Trustee may notify to the Borrower and the Lenders) in
      addition to any fee paid or payable under Clause 11 (Fees).

25.17 SECURITY DOCUMENTS

(1)   The Security Trustee shall accept without investigation, requisition or
      objection whatever title any person may have to the assets which are
      subject to the Security Documents and shall not:

      (a)   be bound or concerned to examine or enquire into the title of any
            person;

      (b)   be liable for any defect or failure in the title of any person,
            whether that defect or failure was known to the Security Trustee or
            might have been discovered upon examination or enquiry and whether
            it is capable of remedy or not; or

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      (c)   be liable for any failure on its part to give notice of the Security
            Documents to any third party or otherwise perfect or register the
            security created by the Security Documents.

(2)   Upon the appointment of any successor Security Trustee under Clause 25.12
      (Resignation), the resigning Security Trustee shall execute and deliver
      such documents and do such other acts and things as may be necessary to
      vest in the successor Security Trustee all the rights and interests vested
      in the resigning Security Trustee under the Security Documents.

(3)   Each of the Arranger, the Agent and each Lender:

      (a)   authorises the Security Trustee to hold each mortgage or charge
            created pursuant to any Finance Document in its sole name as
            security trustee for the Agent and the Lenders; and

      (b)   requests H.M. Land Registry to register the Security Trustee as the
            sole proprietor of any mortgage or charge so created.

25.18 DISTRIBUTION OF PROCEEDS OF ENFORCEMENT

(1)   To the extent that the Security Documents provide for the net proceeds of
      any enforcement to be applied against the Secured Liabilities, the
      Security Trustee shall pay them to the Agent and the Agent shall apply
      them in payment of any amounts due but unpaid under the Finance Documents,
      if applicable in the order set out in Clause 28.5 (Partial payments). This
      shall override any appropriation made by any Chargor.

(2)   The Security Trustee may, at its discretion, accumulate proceeds of
      enforcement in an interest bearing account in its own name.

26.   CONDUCT OF BUSINESS BY THE FINANCE PARTIES

       No provision of this Agreement will:

      (a)   interfere with the right of any Finance Party to arrange its affairs
            (tax or otherwise) in whatever manner it thinks fit;

      (b)   oblige any Finance Party to investigate or claim any credit, relief,
            remission or repayment available to it or the extent, order and
            manner of any claim; or

      (c)   oblige any Finance Party to disclose any information relating to its
            affairs (tax or otherwise) or any computations in respect of Tax.

27.   SHARING AMONG THE LENDERS

27.1  PAYMENTS TO LENDERS

      If a Lender (a "RECOVERING LENDER") receives or recovers any amount from a
      Chargor other than in accordance with Clause 28 (Payment mechanics) and
      applies that amount to a payment due under the Finance Documents then:

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      (a)   the Recovering Lender shall, within three Business Days, notify
            details of the receipt or recovery to the Agent;

      (b)   the Agent shall determine whether the receipt or recovery is in
            excess of the amount the Recovering Lender would have been paid had
            the receipt or recovery been received or made by the Agent and
            distributed in accordance with Clause 28 (Payment mechanics),
            without taking account of any Tax which would be imposed on the
            Agent in relation to the receipt, recovery or distribution; and

      (c)   the Recovering Lender shall, within three Business Days of demand by
            the Agent, pay to the Agent an amount (the "SHARING PAYMENT") equal
            to the receipt or recovery less any amount which the Agent
            determines may be retained by the Recovering Lender as its share of
            any payment to be made in respect of the receipt or recovery in
            accordance with Clause 28.5 (Partial payments).

27.2  REDISTRIBUTION OF PAYMENTS

      The Agent shall treat the Sharing Payment as if it had been paid by the
      relevant Chargor and distribute it between the Finance Parties (other than
      the Recovering Lender) in accordance with Clause 28.5 (Partial payments).

27.3  RECOVERING LENDER'S RIGHTS

(1)   On a distribution by the Agent under Clause 27.2 (Redistribution of
      payments), the Recovering Lender will be subrogated to the rights of the
      Finance Parties which have shared in the redistribution.

(2)   If and to the extent that the Recovering Lender is not able to rely on its
      rights under Clause 27.3(1), the relevant Chargor shall be liable to the
      Recovering Lender for a debt equal to the Sharing Payment which is
      immediately due and payable.

27.4  REVERSAL OF REDISTRIBUTION

      If any part of the Sharing Payment received or recovered by a Recovering
      Lender becomes repayable and is repaid by that Recovering Lender, then:

      (a)   each Lender which has received a share of the relevant Sharing
            Payment pursuant to Clause 27.2 (Redistribution of payments) shall,
            upon request of the Agent, pay to the Agent for account of that
            Recovering Lender an amount equal to its share of the Sharing
            Payment (together with the relevant proportion of any interest which
            that Recovering Lender is required to pay); and

      (b)   that Recovering Lender's rights of subrogation in respect of any
            reimbursement shall be cancelled and the relevant Chargor will be
            liable to the reimbursing Lender for the amount so reimbursed.

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27.5  EXCEPTIONS

(1)   This Clause 27 shall not apply to the extent that the Recovering Lender
      would not, after making any payment pursuant to this Clause, have a valid
      and enforceable claim against the relevant Chargor.

(2)   A Recovering Lender is not obliged to share with any other Lender any
      amount which the Recovering Lender has received or recovered as a result
      of taking legal or arbitration proceedings, if:

      (a)   it notified the other Lenders of the legal or arbitration
            proceedings; and

      (b)   the other Lender had an opportunity to participate in those legal or
            arbitration proceedings but did not do so as soon as reasonably
            practicable having received notice and did not take separate legal
            or arbitration proceedings.

27.6  NO SECURITY INTEREST

      The provisions of this Clause 27 shall not, and shall not be construed so
      as to, constitute a charge by a Recovering Lender over all or any part of
      a sum received or recovered by it in the circumstances mentioned in Clause
      27.1 (Payments to Lenders).

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                                   SECTION 12

                                 ADMINISTRATION

28.   PAYMENT MECHANICS

28.1  PAYMENTS TO THE AGENT

      All payments by a Chargor or a Lender under the Finance Documents must be
      made to the Agent:

      (a)   to account number 00001914 with the Society (sort code 07-30-13),
            reference Prints (UK) QRS 16-1, INC, or any other account which the
            Agent may from time to time specify to the payer for this purpose;
            and

      (b)   by telegraphic transfer for value on the due date at the time and in
            the cleared, immediately available funds specified by the Agent.

28.2  DISTRIBUTIONS BY THE AGENT

      Each payment received by the Agent under the Finance Documents for another
      Party shall, subject to Clause 28.3 (Distributions to a Chargor) and
      Clause 28.4 (Clawback), be made available by the Agent as soon as
      practicable after receipt to the Party entitled to receive (in the case of
      a Lender, for the account of its Facility Office), to such account as that
      Party may notify to the Agent by not less than five Business Days' notice
      with a bank in London.

28.3  DISTRIBUTIONS TO A CHARGOR

      The Agent may (with the consent of the relevant Chargor or in accordance
      with Clause 29 (Set-off)) apply any amount received by it for any Chargor
      in or towards payment (on the date and in the currency and funds of
      receipt) of any amount due from that Chargor under the Finance Documents
      or in or towards purchase of any amount of any currency to be so applied.

28.4  CLAWBACK

(1)   Where a sum is to be paid to the Agent under the Finance Documents for
      another Party, the Agent is not obliged to pay that sum to that other
      Party (or to enter into or perform any related exchange contract) until it
      has been able to establish to its satisfaction that it has actually
      received that sum.

(2)   If the Agent pays an amount to another Party and it proves to be the case
      that the Agent had not actually received that amount, then the Party to
      whom that amount (or the proceeds of any related exchange contract) was
      paid by the Agent shall on demand refund the same to the Agent together
      with interest on that amount from the date of payment to the date of
      receipt by the Agent, calculated by the Agent to reflect its cost of
      funds.

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28.5  PARTIAL PAYMENTS

(1)   If the Agent receives a payment that is insufficient to discharge all the
      amounts then due and payable by any Chargor under the Finance Documents,
      the Agent shall apply that payment towards the obligations of the Chargors
      under the Finance Documents in the following order (and where applicable,
      pro rata within each level):

      (a)   FIRST, in or towards payment of any unpaid fees, costs and expenses
            of any Administrative Party due under any Finance Document but
            unpaid;

      (b)   SECOND, in or towards payment of any accrued interest or
            non-utilisation fee or fees payable to the Lenders due under this
            Agreement but unpaid;

      (c)   THIRD, in or towards payment pro rata of any principal due under
            this Agreement but unpaid; and

      (d)   FOURTH, in or towards payment pro rata of any other sum due under
            any Finance Document but unpaid.

(2)   The Agent shall, if so directed by the Majority Lenders, vary the order
      set out in Clause 28.5(1)(b) to (d).

(3)   Clause 28.5(1) and (2) will override any appropriation made by any
      Chargor.

28.6  NO SET-OFF BY ANY CHARGOR

      All payments to be made by any Chargor under the Finance Documents shall
      be calculated and made without (and free and clear of any deduction for)
      set-off or counterclaim.

28.7  BUSINESS DAYS

(1)   Any payment which is due to be made on a day that is not a Business Day
      shall be made on the next Business Day in the same calendar month (if
      there is one) or the preceding Business Day (if there is not).

(2)   During any extension of the due date for payment of any principal or an
      Unpaid Sum under this Agreement, interest is payable on the principal at
      the rate payable on the original due date.

28.8  CURRENCY OF ACCOUNT

(1)   Subject to Clause 28.8(2), sterling is the currency of account and payment
      for any sum due from any Chargor under any Finance Document.

(2)   Each payment in respect of Losses or Taxes shall be made in the currency
      in which the Losses or Taxes are sustained or incurred.

28.9  CHANGE OF CURRENCY

(1)   Unless otherwise prohibited by law, if more than one currency or currency
      unit are at the same time the lawful currency of the United Kingdom, then:

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      (a)   any reference in the Finance Documents to, and any obligations
            arising under the Finance Documents in, sterling shall be translated
            into, or paid in, the currency or currency unit designated by the
            Agent (after consultation with the Borrower); and

      (b)   any translation from one currency or currency unit to another shall
            be at the official rate of exchange for the conversion of that
            currency or currency unit into the other, rounded up or down by the
            Agent (acting reasonably).

(2)   If a change in any currency of the United Kingdom occurs, each Finance
      Document will, to the extent the Agent (acting reasonably and after
      consultation with the Borrower) specifies to be necessary or appropriate,
      be amended to comply with any generally accepted conventions and market
      practice in the interbank market and otherwise to reflect the change in
      currency.

29.   SET-OFF

      A Finance Party may set-off any matured obligation due from any Chargor
      under the Finance Documents (to the extent beneficially owned by that
      Finance Party) against any matured obligation owed by that Finance Party
      to that Chargor, regardless of the place of payment, booking branch or
      currency of either obligation. If the obligations are in different
      currencies, the Finance Party may convert either obligation at a market
      rate of exchange in its usual course of business for the purpose of the
      set-off.

30.   COMMUNICATIONS

30.1  COMMUNICATIONS IN WRITING

      Any communication to be made or provided under or in connection with the
      Finance Documents (including any notices, waivers or consents and any
      documents) shall be made or provided in English and in writing and, unless
      otherwise stated, may be delivered by fax, post or personal delivery.

30.2  ADDRESSES

      The address and fax number (and the department or officer, if any, for
      whose attention the communication is to be made) of each Party for any
      communication to be made or provided under or in connection with the
      Finance Documents is:

      (a)   (subject to Clause 30.2(d)) in the case of each Chargor:

            Address:         Colliers CRE
                             Aquis House
                             12 Greek Street
                             Leeds
                             LS1 5RU

            Fax: 0113 200 1841

            For the attention of: Sarah Parkin

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      (b)   in the case of each Lender, that notified in writing to the Agent on
            or prior to the date on which it becomes a Party;

      (c)   in the case of each of the Administrative Parties;

            Address: Agency Department, Commercial Division, Structured Property
            Finance, Kings Park Road, Moulton Park, Northampton NN3 6NW

            Fax: 01604 853690

            For the Attention of: Agency Manager re Prints (UK) QRS 16-1, INC;
            and

      (d)   may in the alternative in the case of any claim form, judgment or
            other notice of process on any Chargor be delivered or sent to its
            agent for service of process named in Clause 37.2 (Service of
            process) or its registered office from time to time;

      or any substitute address, fax number or department or officer as the
      Party may notify to the Agent (or the Agent may notify to the other
      Parties, if a change is made by the Agent) by not less than five Business
      Days' notice.

30.3  EFFECTIVENESS

(1)   Any communication made or provided by one person to another under or in
      connection with the Finance Documents will only be effectively made or
      provided:

      (a)   if delivered by fax, when received in legible form; or

      (b)   if delivered by post or personal delivery, when it has been left at
            the relevant address or five Business Days after being deposited in
            the post postage prepaid in an envelope addressed to the recipient
            at that address,

      and, if a particular department or officer is specified as part of its
      address details provided under Clause 30.2 (Addresses), if expressly
      marked for the attention of that department or officer.

(2)   A communication which would otherwise become effective on a non-Business
      Day or after 5 pm on a Business Day shall instead become effective at 10
      am on the next Business Day. s196 Law of Property Act 1925 shall not apply
      to the Finance Documents.

(3)   Any communication to be made or provided to the Agent or the Security
      Trustee will be effectively made or provided only when actually received
      by the Agent or, as the case may be, Security Trustee and then only if it
      is expressly marked for the attention of the department or officer
      specified as part of its address details provided under Clause 30.2
      (Addresses).

(4)   Any communication from or to any Chargor shall be sent through the Agent.

(5)   Any communication made or provided to the Borrower will be deemed to have
      been made or provided to each Chargor.

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31.   CALCULATIONS AND CERTIFICATES

31.1  ACCOUNTS

      In any litigation or arbitration proceedings arising out of or in
      connection with a Finance Document, the entries made in the accounts
      maintained by a Finance Party are prima facie evidence of the matters to
      which they relate.

31.2  CERTIFICATES AND DETERMINATIONS

      Any certification or determination by a Finance Party of a rate or amount
      under any Finance Document is, in the absence of manifest error,
      conclusive evidence of the matters to which it relates.

31.3  DAY COUNT CONVENTION

      Any interest, commission or fee accruing under a Finance Document will
      accrue from day to day and is calculated on the basis of the actual number
      of days elapsed and a year of 365 days or, in any case where the practice
      in the London interbank market differs, in accordance with that market
      practice.

32.   PARTIAL INVALIDITY

      If, at any time, any provision of the Finance Documents is or becomes
      illegal, invalid or unenforceable in any respect under any law of any
      jurisdiction, neither the legality, validity or enforceability of the
      remaining provisions nor the legality, validity or enforceability of that
      provision under the law of any other jurisdiction will in any way be
      affected or impaired.

33.   REMEDIES AND WAIVERS

      No failure to exercise, nor any delay in exercising, on the part of any
      Finance Party, any right under the Finance Documents shall operate as a
      waiver, nor shall any single or partial exercise of any right prevent any
      further or other exercise or the exercise of any other right. The remedies
      and other rights provided in the Finance Documents are cumulative and not
      exclusive of any remedies and other rights provided by law.

34.   AMENDMENTS AND WAIVERS

34.1  REQUIRED CONSENTS

(1)   Subject to Clause 34.2 (Exceptions) any term of the Finance Documents may
      be amended or waived only with the consent of the Majority Lenders and the
      Borrower and any such amendment or waiver will be binding on all Parties.

(2)   The Agent may effect, on behalf of any Finance Party, any amendment or
      waiver permitted by this Clause.

34.2  EXCEPTIONS

(1)   An amendment or waiver that has the effect of changing or which relates
      to:

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      (a)   the definition of "Majority Lenders" in Clause 1.1 (Definitions);

      (b)   an extension to the date of payment of any amount under the Finance
            Documents;

      (c)   a reduction in the Margin or the amount of any payment of principal,
            interest, fees or commission payable;

      (d)   an increase in Commitment;

      (e)   any provision which expressly requires the consent of all the
            Lenders; or

      (f)   Clause 2.2 (Finance Parties' rights and obligations), Clause 24
            (Changes to the Lenders), 27 (Sharing among the Lenders) or this
            Clause 34,

      shall not be made without the prior consent of all the Lenders.

(2)   An amendment or waiver which relates to the rights or obligations of any
      Administrative Party may not be effected without the consent of that
      Administrative Party.

35.   COUNTERPARTS

      Each Finance Document may be executed in any number of counterparts, and
      this has the same effect as if the signatures (and if applicable, seals)
      on the counterparts were on a single copy of the Finance Document.

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                                   SECTION 13

                          GOVERNING LAW AND ENFORCEMENT

36.   GOVERNING LAW

      This Agreement is governed by, and shall be construed in accordance with,
      English law.

37.   ENFORCEMENT

37.1  JURISDICTION OF ENGLISH COURTS

(1)   The courts of England have exclusive jurisdiction to settle any dispute
      arising out of or in connection with the Finance Documents (including a
      dispute regarding the existence, validity or termination of this
      Agreement) (a "DISPUTE").

(2)   The Parties agree that the courts of England are the most appropriate and
      convenient courts to settle Disputes and accordingly no Party will argue
      to the contrary.

(3)   This Clause 37.1 is for the benefit of the Finance Parties only. As a
      result, no Finance Party shall be prevented from taking proceedings
      relating to a Dispute in any other courts with jurisdiction. To the extent
      allowed by law, the Finance Parties may take concurrent proceedings in any
      number of jurisdictions.

37.2  SERVICE OF PROCESS

(1)   Without prejudice to any other mode of service allowed under any relevant
      law, each Chargor:

      (a)   irrevocably appoints Fitzhardinge Plc trading as Colliers CRE as its
            agent for service of process in relation to any proceedings before
            the English courts in connection with any Finance Document; and

      (b)   agrees that a failure by the process agent to notify the relevant
            Chargor of the process will not invalidate the proceedings
            concerned.

(2)   If for any reason an agent appointed under Clause 37.1(1) ceases to act,
      the relevant Chargor shall promptly appoint a replacement and notify the
      Agent of the appointment and the agent's name and address. If the relevant
      Chargor does not make such an appointment within seven days of the
      cessation, then the Agent may do so on its behalf and shall notify the
      relevant Chargor if it does so.

EXECUTION:

The Parties have shown their acceptance of the terms of this Agreement by
executing it at the end of the Schedules.

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                                   SCHEDULE 1

                               THE ORIGINAL LENDER

NAME, FACILITY OFFICE,                                 COMMITMENT (pound)
COMMUNICATION DETAILS

Nationwide Building Society                            (pound)10,500,000
Structured Property Finance
Hogarth House
136 High Holborn
London
WC1V 6PN

Fax: 020 7826 2114

For the attention of: Peter
Captainino/Alison Garood

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<PAGE>

                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

STRUCTURE

1.    A note or diagram setting out the legal and beneficial ownership of each
      Chargor and the relationship between them (the "STRUCTURE NOTE").

AUTHORISATIONS AND LEGAL OPINIONS

2.    A copy of the constitutional documents of each Chargor.

3.    A copy of a resolution of the board of directors of each Chargor:

      (a)   approving the terms of, and the transactions contemplated by, the
            Finance Documents to which it is a party and resolving that it
            execute those Finance Documents;

      (b)   authorising a specified person or persons to execute those Finance
            Documents on its behalf; and

      (c)   authorising a specified person or persons, on its behalf, to sign
            and/or despatch all documents and notices (including, if relevant,
            any Utilisation Request) to be signed and/or despatched by it under
            or in connection with the Finance Documents.

4.    A specimen of the signature of each person authorised by the resolution
      referred to in Paragraph 3.

5.    A certificate of a director of each Chargor:

      (a)   that each copy document relating to that Chargor specified in this
            Schedule 2 is correct, complete and in full force and effect as at a
            date no earlier than the date of the Utilisation Request; and

      (b)   in the case of the Borrower only, that borrowing the Total
            Commitments would not cause any indebtedness or similar limit
            binding on it to be exceeded.

6.    In respect of each Chargor, a legal opinion in the Agreed Terms
      (satisfactory to the Original Lender in its sole discretion and confirming
      the proper constitution of the Chargor and the legally binding,
      enforceable nature of the Facility Agreement and Security Documents
      against that Chargor), from the legal advisers to the Borrower in the
      relevant jurisdiction

FINANCIAL INFORMATION

7.    In relation to each Chargor:

      (a)   its most recent audited accounts and financial statements; or

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      (b)   if it has not yet produced any audited accounts, a pro forma balance
            sheet showing the anticipated position immediately following the
            purchase of the Property.

8.    Completion statement signed by a director or otherwise on behalf of the
      Borrower confirming:

      (a)   the cash movements required to complete the purchase of the
            Property, taking into account the deductions proposed to be made by
            the Agent from the proceeds of the Loan;

      (b)   details of the amount(s) and source(s) of the proposed funding, if
            any, in respect of the Property provided other than under this
            Agreement, and confirmation that it has been received; and

      (c)   the sequence/timing of events in relation to the execution and
            effectiveness of the documentation to be entered into in relation to
            the acquisition of the Property by the Borrower.

VALUATION AND SURVEYS

9.    The Initial Valuation addressed to the Agent and the Security Trustee on
      behalf of the Finance Parties. Such Valuation shall indicate, amongst
      other things:

      (a)   that the Total Commitments are less than (i) 75% of the Market Value
            of the Property and (ii) 100% of the vacant possession value of the
            Property;

      (b)   that the Market value of the Property is not less than (pound)14
            million;

      (c)   a vacant possession value of the Property of not less than
            (pound)10.5 million;

      (d)   estimated rental values (at a level acceptable to the Lender
            projected to be (pound)1,179,496 pa);

      (e)   satisfactory commentary on demand and how the Property will perform
            in relation to the sector market average;

      (f)   details of any active management required to maintain value;

      (g)   confirmation that Prospective Annual Rental Income for the first
            year commencing on the Utilisation Date will be at least 110% of
            Prospective Annual Debt Service Costs and that Prospective Annual
            Rental Income will be at least 140% of Prospective Annual Finance
            Costs

10.   The latest insurance valuation of the Property addressed to the Agent and
      the Security Trustee on behalf of the Finance Parties.

11.   A tenancy schedule for the Property, showing that the Rental Income of the
      Property is at least (pound)1,179,496 per annum with fixed rental uplifts
      of 2.5% p.a. guaranteed by parent companies and that the Property is let
      by a new 25 year lease to Polestar Petty Ltd.

                                       85
<PAGE>

12.   A building survey of the Property by a building surveyor approved by the
      Agent, addressed to the Agent and the Security Trustee on behalf of the
      Finance Parties.

13.   An environmental report relating to the Property by an environmental
      consultant approved by the Agent together with a Deed of Collateral
      Warranty which will be addressed to the Agent and the Security Trustee on
      behalf of the Finance Parties.

INSURANCE

14.   Evidence:

      (a)   of the extent and level of the insurance cover in force in respect
            of the Property, including the insurance cover in respect of acts of
            terrorism;

      (b)   that the Security Trustee as mortgagee is stated as co-insured and
            loss payee; and

      (c)   that the policies comply with the requirements of Clause 19.4
            (Insurance).

15.   A notice to each relevant insurance company in the Agreed Terms, each duly
      executed by the Borrower.

PROPERTY

16.   All title documents relating to the Property.

17.   Stamped counterparts of all Occupational Leases.

18.   Each Purchase Agreement and a notice of charge to each relevant vendor
      under each Purchase Agreement in the Agreed Terms duly executed by the
      Borrower.

19.   The results of H.M. Land Registry (or if the Property is unregistered, HM
      Land Charges Registry) searches in favour of the Security Trustee on the
      appropriate forms against all of the titles comprising the Property, each
      giving not less than ten Business Days' priority beyond the date of the
      Debenture and showing no adverse entries.

20.   A certificate of the title of the Borrower to the Property, prepared in
      the current City of London Law Society approved form and including a
      report on the Occupational Leases, from Nabarro Nathanson addressed to the
      Agent and the Security Trustee on behalf of the Finance Parties (the
      "TITLE CERTIFICATE"), together with evidence that Nabarro Nathanson carry
      professional indemnity insurance cover for any amount per claim at least
      equal to the Total Commitments.

21.   Confirmation from Mayer, Brown, Rowe & Maw LLP, English lawyers to the
      Agent, addressed to the Agent and the Security Trustee on behalf of the
      Finance Parties that they have received the Title Certificate and
      commenting on the terms of it.

22.   Confirmation from the Valuer that it has received the Title Certificate
      and specifying any resulting alteration to the Initial Valuation or
      confirming that there is no resulting alteration.

23.   An effective discharge of any Security Interest affecting the Property.

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<PAGE>

24.   The assurance of the Property to the Borrower, together with a duly
      completed PD form.

25.   The Development Agreement duly executed by each party expressed to be a
      party to it and a notice of charge to each such party (save for the
      Borrower) in the Agreed Terms duly executed by the Borrower.

26.   Each Collateral Warranty duly executed by each party expressed to be a
      party to it.

27.   Appropriate Land Registry application forms, duly completed and signed by
      Nabarro Nathanson, accompanied by all necessary Land Registry fees,
      documentation and copy documentation.

28.   An authority from the vendor or other person entitled to the benefit of
      the Rental Income from the Property in the Agreed Terms directing each
      occupational tenant to pay rent to or to the order of the Borrower

29.   A notice of charge to each occupational tenant in the Agreed Terms, each
      duly executed by the Borrower.

MANAGING AGENT

30.   A copy of the appointment of the Managing Agent of the Property, duly
      executed by all parties to it.

31.   A duty of care deed in the Agreed Terms, duly executed by the Managing
      Agent and the Borrower, together with evidence of the authority of the
      signatory for the Managing Agent.

TAX

32.   Evidence that the transfer of the Property to the Borrower will be treated
      as a transfer of a going concern for VAT purposes, including:

      (a)   evidence that the transferor of the legal and beneficial interest in
            the Property is registered for VAT and has elected to waive
            exemption from VAT in respect of the Property;

      (b)   a copy of the VAT registration certificate of the Borrower; and

      (c)   a copy of a receipted notice in respect of the Property from the
            Borrower to HM Customs & Excise of its election to waive exemption
            from VAT in respect of the Property.

33.   Evidence that approval has been obtained from the Inland Revenue pursuant
      to Regulation 17 of the Taxation of Income from Land (Non-Resident)
      Regulations 1995 by the Borrower permitting it to receive Rental Income
      from the Property gross.

SECURITY AND HEDGING

34.   The Debenture duly executed by the Borrower.

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<PAGE>

35.   The Shares Charge, duly executed by the Shareholder, together with:

      (a)   a copy of the relevant register of members (or equivalent)
            evidencing ownership of the relevant shares;

      (b)   the relevant share certificates;

      (c)   signed but undated stock transfer forms in blank; and

      (d)   any waivers required by the Agent in connection with the Shares
            Charge, duly executed by the persons giving them.

36.   Completed forms 395 in respect of the Debenture and the Shares Charge.

37.   Evidence that the Rent Account has been duly opened, together with:

      (a)   copies of the account mandate;

      (b)   a direct debit form for the quarterly payments from the Rent
            Account; and

      (c)   a "control agreement" with the bank with which the Rent Account is
            held.

38.   Evidence that arrangements have been effected in relation to the Retention
      Amount and the defective title insurance indemnity payment referred to in
      Clause 16.3 of the Purchase Agreement entered into between (1) the
      Borrower and (2) Polestar Petty Limited providing security in relation to
      those amounts in favour of the Finance Parties.

39.   The Subordination Deed, duly executed by each party to it (other than any
      Finance Party).

40.   The Hedging Strategy Letter, duly signed by the Borrower, together with
      evidence that the Borrower has complied with that letter to the extent (if
      any) that it requires compliance prior to the Utilisation Date (such
      evidence to include a letter confirming any Fixed Rate applicable to the
      Loan commencing on the Utilisation Date) and that any premium payable has
      been paid.

41.   A notice in the Agreed Terms to the counterparty to any External Hedging
      Agreement, duly executed by the Borrower if and to the extent applicable.

OTHER DOCUMENTS AND EVIDENCE

42.   The Fees Letter, counter-signed by the Borrower.

43.   Evidence that any process agent referred to in Clause 37.2 (Service of
      process) has accepted its appointment.

44.   Copies of the Nationwide application form duly completed, certified copies
      of the passports of each director of the Borrower and any other items
      requested by the Society to comply with its money laundering requirements.

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<PAGE>

45.   A copy of any other Authorisation or other document, opinion or assurance
      which the Agent considers to be necessary or desirable in connection with
      the entry into and performance of the transactions contemplated by any
      Finance Document or for the validity and enforceability of any Finance
      Document.

                                       89
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                                   SCHEDULE 3

                                FORM OF REQUESTS

                       PART 1: FORM OF UTILISATION REQUEST

From: Prints (UK) QRS 16-1, INC

To:   [           ] as Agent

Dated:

Dear Sirs

UTILISATION REQUEST

We refer to the facility agreement dated [    ] and made between (1) Prints (UK)
QRS 16-1, INC as borrower and (2) Nationwide Building Society in various
capacities including as Agent (the "FACILITY AGREEMENT"). Terms defined in the
Facility Agreement but not in this letter shall have the same meaning in this
letter as in the Facility Agreement.

1.    We wish to borrow the Loan on the following terms:

        Proposed Utilisation Date:      [     ] (or, if that is not a Business
                                        Day, the next Business Day)

        Amount:                         [  ] or, if less, the Total Commitments

2.    (Optional) [Pursuant to clause 8.4 (Request for fixed rate) of the
      Facility Agreement, we request that the rate of interest on all of the
      Loan be fixed for a period of [SPECIFY PERIOD-SEE CLAUSE 8.4] commencing
      on the Utilisation Date.]

3.    We confirm that each condition specified in clause 4.2 (Further conditions
      precedent) of the Facility Agreement is satisfied on the date of this
      Utilisation Request and will be satisfied as at the Utilisation Date.

4.    The proceeds of the Loan should be credited to:

          Name and address of bank:

          Name of Account:

          Number of Account:

          Sort Code:

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5.    This Utilisation Request is irrevocable.

Yours faithfully

-----------------------
Prints (UK) QRS 16-1, INC
BY:

                                       91
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                       PART 2: FORM OF FIXED RATE REQUEST

From:                   Prints (UK) QRS 16-1, INC

To:                     [            ] as Agent

Dated:

Dear Sirs,

FIXED RATE REQUEST

We refer to the facility agreement dated [    ] and made between (1) Prints (UK)
QRS 16-1, INC as borrower and (2) Nationwide Building Society in various
capacities including as Agent (the "FACILITY AGREEMENT"). Terms defined in the
Facility Agreement but not in this letter shall have the same meaning in this
letter as in the Facility Agreement.

1.    Pursuant to clause 8.4 (Request for fixed rate) of the Facility Agreement,
      we request that the rate of interest on [(pound)[    ] of] the Loan be
      fixed for a period of [SPECIFY PERIOD - SEE CLAUSE 8.4 OF THE AGREEMENT]
      commencing on [    ].

2.    We confirm that each condition specified in clause 4.2 (Further conditions
      precedent) of the Facility Agreement is satisfied on the date of this
      Fixed Rate Request and will be satisfied as at the commencement date
      requested for the fixed rate.

3.    This Fixed Rate Request is irrevocable.

4.    We designate this Fixed Rate Request as a Finance Document.

Yours faithfully

--------------------------
Prints (UK) QRS 16-1, INC

BY:

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                                   SCHEDULE 4

                                  THE PROPERTY

1.    The freehold land being 12-14 Whitehall Road, Leeds registered at HM Land
      Registry with title absolute under title number WYK563237.

2.    The freehold land known as Junction Works, Coleman Street, Leeds
      registered at HM Land Registry with title absolute under title number
      WYK611054.

3.    The freehold land formerly known as the Goodman Arms, Whitehall Road,
      Leeds registered at HM Land Registry with title absolute under title
      number WYK525150.

4.    All estate and interest (if any) of the seller of the property in that
      half of the roadway known as Laura Street to the midpoint as abuts the
      property referred to in Paragraphs 1-3 above.

5.    The freehold land being land on the north side of Whitehall Road, Leeds
      registered at HM Land Registry with title absolute under title number
      WYK529431.

6.    The freehold land being 42 Whitehall Road, Leeds registered at HM Land
      Registry with title absolute under title number WYK531325.

7.    The freehold land being land and buildings on the north east side of
      Whitehall Road, Leeds registered at HM Land Registry with title absolute
      under title number WYK236001.

8.    All that estate and interest (if any) of the seller of the property in
      that half of the roadway known as Laura Street to the midpoint as abuts
      the property referred to in Paragraphs 5-8 above.

                                       93
<PAGE>

                                   SCHEDULE 5

                          FORM OF TRANSFER CERTIFICATE

To: [          ] as Agent

From: [Name of Existing Lender] (the "EXISTING LENDER") and [Name of New Lender]
      (the "NEW LENDER")

Dated:

Dear Sirs

TRANSFER CERTIFICATE

We refer to the facility agreement dated [    ] and made between (1) Prints (UK)
QRS 16-1, INC as borrower and (2) Nationwide Building Society in various
capacities including as Agent (the "FACILITY AGREEMENT").

1.    We refer to clause 24.6 (Procedure for transfer) of the Facility
      Agreement:

      (a)   the Existing Lender and the New Lender agree to the Existing Lender
            transferring to the New Lender by novation all or part of the
            Existing Lender's Commitment, rights and obligations referred to in
            the Schedule to this letter in accordance with clause 24.6
            (Procedure for transfer) of the Facility Agreement;

      (b)   the proposed Transfer Date is [    ]; and

      (c)   the Facility Office and address, fax number and attention details
            for communications of the New Lender for the purposes of clause 30.2
            (Addresses) of the Facility Agreement are set out in the Schedule to
            this letter.

2.    The New Lender expressly acknowledges the limitations on the
      Existing Lender's obligations set out in clause 24.5(3) (Limitation
      of responsibility of Existing Lenders) of the Facility Agreement.

3.    This Transfer Certificate is governed by English law.

                                  THE SCHEDULE

              COMMITMENT, RIGHTS AND OBLIGATIONS TO BE TRANSFERRED

[insert relevant details or outstanding participation and Commitment being
transferred] and all rights and obligations of the Existing Lender under the
Finance Documents in respect of that [participation] [and] [Commitment].

[Facility Office address, fax number and attention details for notices and
account details for payments]

                                       94
<PAGE>

--------------------------                      ------------------------------
[Name of Existing Lender]                       [Name of New Lender]
BY:                                             BY:

This Transfer Certificate is accepted by the Agent and the Transfer Date is
confirmed as [    ].

---------------------
[Name of Agent]
 BY:

                                       95
<PAGE>

                                   SCHEDULE 6

                             MANDATORY COST FORMULA

1.    The Mandatory Cost is an addition to the interest rate to compensate
      Lenders for the cost of compliance with:

      (a)   the requirements of the Bank of England and/or the Financial
            Services Authority (or, in either case, any other authority which
            replaces all or any of its functions); or

      (b)   the requirements of the European Central Bank.

2.    On the first day of each Interest Period (or as soon as possible after
      that) the Agent shall calculate, as a percentage rate, a rate (the
      "ADDITIONAL COST RATE") for each Lender, in accordance with this Schedule.
      The Mandatory Cost will be calculated by the Agent as a weighted average
      of the Lenders' Additional Cost Rates (weighted in proportion to the
      percentage participation of each Lender in the Loans) and will be
      expressed as a percentage rate per annum.

3.    The Additional Cost Rate for any Lender lending from a Facility Office in
      a Participating Member State will be the percentage notified by that
      Lender to the Agent. This percentage will be certified by that Lender in
      its notice to the Agent to be its reasonable determination of the cost
      (expressed as a percentage of that Lender's participation in all Loans
      made from that Facility Office) of complying with the minimum reserve
      requirements of the European Central Bank in respect of loans made from
      that Facility Office. A "PARTICIPATING MEMBER STATE" means any member
      state of the European Communities that adopts or has adopted the euro as
      its lawful currency in accordance with legislation of the European Union
      relating to European Monetary Union.

4.    The Additional Cost Rate for any Lender lending from a Facility Office in
      the United Kingdom will be calculated by the Agent as follows:

                     AB + C(B-D) + E x 0.01 per cent. per annum
                     ----------------------
                         100-(A + C)

Where:

A     is the percentage of Eligible Liabilities (assuming these to be in excess
      of any stated minimum) which that Lender is from time to time required to
      maintain as an interest free cash ratio deposit with the Bank of England
      to comply with cash ratio requirements.

B     is the percentage rate of interest (excluding the Margin and the Mandatory
      Cost and, in respect of an Unpaid Sum, the additional rate of interest
      specified in Clause 8.3 (Default interest)) payable for the relevant
      Interest Period on the Unpaid Sum.

                                       96
<PAGE>

C     is the percentage (if any) of Eligible Liabilities which that Lender is
      required from time to time to maintain as interest bearing Special
      Deposits with the Bank of England.

D     is the percentage rate per annum payable by the Bank of England to the
      Agent on interest bearing Special Deposits.

E     is designed to compensate Lenders for amounts payable under the Fees Rules
      and is calculated by the Agent as being the average of the most recent
      rates of charge supplied by the Reference Banks to the Agent pursuant to
      Paragraph 7 and expressed in pounds per (pound)1,000,000.

5.    For the purposes of this Schedule:

      (a)   "ELIGIBLE LIABILITIES" and "SPECIAL DEPOSITS" have the meanings
            given to them from time to time under or pursuant to the Bank of
            England Act 1998 or (as may be appropriate) by the Bank of England;

      (b)   "FEES RULES" means the rules on periodic fees contained in the FSA
            Supervision Manual or other such law or regulation as may be in
            force from time to time in respect of the payment of fees for the
            acceptance of deposits or for banking or building society
            supervision;

      (c)   "FEE TARIFFS" means the fee tariffs specified in the Fees Rules
            under the activity group A.1 Deposit acceptors (ignoring any minimum
            fee or zero rated fee required pursuant to the Fees Rules but taking
            into account any applicable discount rate); and

      (d)   "TARIFF BASE" has the meaning given to it in, and will be calculated
            in accordance with, the Fees Rules.

6.    In application of the above formulae, A, B, C and D will be included in
      the formulae as percentages (i.e. 5 per cent. will be included in the
      formula as 5 and not as 0.05). A negative result obtained by subtracting D
      from B shall be taken as zero. The resulting figures shall be rounded to
      four decimal places.

7.    If requested by the Agent, each Reference Bank shall, as soon as
      practicable after publication by the Financial Services Authority, supply
      to the Agent the rate of charge payable by that Reference Bank to the
      Financial Services Authority pursuant to the Fees Rules in respect of the
      relevant financial year of the Financial Services Authority (calculated
      for this purpose by that Reference Bank as being the average of the Fee
      Tariffs applicable to that Reference Bank for that financial year) and
      expressed in pounds per (pound)1,000,000 of the Tariff Base of that
      Reference Bank.

8.    Each Lender shall supply any information required by the Agent for the
      purpose of calculating its Additional Cost Rate. In particular, each
      Lender shall supply the following information in writing on or prior to
      the date on which it becomes a Lender:

      (a)   the jurisdiction of its Facility Office; and

      (b)   any other information that the Agent may reasonably require for such
            purpose.

                                       97
<PAGE>

      Each Lender shall promptly notify the Agent of any change to the
      information provided by it pursuant to this Paragraph 8.

9.    The percentages of each Lender for the purpose of A and C above and the
      rates of charge of each Reference Bank for the purpose of E above shall be
      determined by the Agent based upon the information supplied to it pursuant
      to Paragraphs 7 and 8 and on the assumption that, unless a Lender notifies
      the Agent to the contrary, each Lender's obligations in relation to cash
      ratio deposits and Special Deposits are the same as those of a typical
      bank or building society from its jurisdiction of incorporation with a
      Facility Office in the same jurisdiction as its Facility Office.

10.   The Agent shall have no liability to any person if such determination
      results in an Additional Cost Rate which over or under compensates any
      Lender and shall be entitled to assume that the information provided by
      any Lender or Reference Bank pursuant to Paragraphs 3, 7 and 8 is true and
      correct in all respects.

11.   The Agent shall distribute the additional amounts received as a result of
      the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate
      for each Lender based on the information provided by each Lender and each
      Reference Bank pursuant to Paragraphs 3, 7 and 8.

12.   Any determination by the Agent pursuant to this Schedule in relation to a
      formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
      to a Lender shall, in the absence of manifest error, be conclusive and
      binding on all Parties.

13.   The Agent may from time to time, after consultation with the Borrower and
      the Lenders, determine and notify to all Parties any amendments which are
      required to be made to this Schedule in order to comply with any change in
      law, regulation or any requirements from time to time imposed by the Bank
      of England, the Financial Services Authority, the European Central Bank or
      any authority regulating or supervising building societies (or, in any
      case, any other authority which replaces all or any of its functions) and
      any such determination shall, in the absence of manifest error, be
      conclusive and binding on all Parties.

                                       98
<PAGE>

                                   SCHEDULE 7

                             COMPLIANCE CERTIFICATE

To:   [  ] as Agent

From: Prints (UK) QRS 16-1, INC

Dated:

Dear Sirs

COMPLIANCE CERTIFICATE

We refer to the facility agreement dated [    ] and made between (1) Prints (UK)
QRS 16-1, INC as borrower and (2) Nationwide Building Society in various
capacities including as Agent (the "FACILITY AGREEMENT").

1.    We refer to the Facility Agreement. This is a Compliance Certificate, as
      defined in it.

2.    [We confirm that no Default is continuing.]*

Signed:  -----------------------                  ------------------------
         Director                                 Director
         of                                       of
         PRINTS (UK) QRS 16-1, INC                PRINTS (UK) QRS 16-1, INC

----------
-     If this statement cannot be made, the certificate should identify any
      Default that is continuing and the steps, if any, being taken to remedy
      it.

                                       99
<PAGE>

EXECUTION OF THE FACILITY AGREEMENT:

THE BORROWER

SIGNED by                                       )
PRINTS (UK) QRS 16-1, INC                       )        /s/ Kevin Stimpson
acting by its attorned Kevin Stimpson           )
attorney for Edward v.Lapuma
THE ORIGINAL LENDER

SIGNED by )  P CAPTAININO                       )
duly authorised for and on behalf of            )        /s/ P Captainino
NATIONWIDE BUILDING SOCIETY                     )
as Original Lender                              )

THE AGENT AND ARRANGER

SIGNED by P CAPTAININO                          )
duly authorised for and on behalf of            )        /s/ P Captainino
NATIONWIDE BUILDING SOCIETY                     )
as Agent and Arranger                           )

THE SECURITY TRUSTEE

SIGNED by P CAPTAININO                          )
duly authorised for and on behalf of            )        /s/ P Captainino
NATIONWIDE BUILDING SOCIETY                     )
as Security Trustee                             )

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