Document:

exv10w23

 

Exhibit 10.
23

DATED 13th December 1996

SLOUGH PROPERTIES LIMITED

- to -

AZUR ENVIRONMENTAL LIMITED

 

LEASE

Premises known as Winnersh 545

Winnersh Triangle Wokingham Berkshire

 

Nabarro Nathanson

50 Stratton Street

London W1X 6NX

Tel: 0171 493 9933

JE/JUS/S2883/224/jvm WP3658A 20/11/96

 

 

PARTICULARS

	 	 	 	 	 
	DATE OF THIS DEED

	 	:
	 	 13th December 1996
	 
	 	 	 	 
	LANDLORD

	 	:
	 	SLOUGH PROPERTIES LIMITED
	 
	 	 	 	 
	Registered office

	 	:
	 	 234 Bath Road Slough SL1 4EE
	 
	 	 	 	 
	Company Registration No.

	 	:
	 	 448911
	 
	 	 	 	 
	TENANT

	 	:
	 	AZUR ENVIRONMENTAL LIMITED
	 
	 	 	 	 
	Registered office

	 	:
	 	The Coach House 24A Tile House Street Hitchin Hertfordshire SG5 2DY
	 
	 	 	 	 
	Company Registration No.

	 	:
	 	 2538199
	 
	 	 	 	 
	SURETY

	 	:
	 	None
	 
	 	 	 	 
	ESTATE

	 	:
	 	the area from time to time comprising
the Landlord’s estate at Winnersh
Triangle Wokingham of which the Premises
form part the present such area being
shown for identification only edged red
on the Estate Plan
	 
	 	 	 	 
	LAND

	 	:
	 	the land off Eskdale Road on the Estate shown edged red on the Lease Plan

 

 

	 	 	 	 	 
	BUILDING

	 	:
	 	the building (presently known as Winnersh
545) on the Land which (with the Fixtures
and any car parking and landscaping
facilities) is described in the First
Schedule
	 
	 	 	 	 
	COMMENCEMENT DATE

	 	:
	 	25th November 1996
	 
	 	 	 	 
	TERM

	 	:
	 	20 years together with the period of any
continuation or extension of the tenancy
granted by this Lease
	 
	 	 	 	 
	RENT COMMENCEMENT DATE

	 	:
	 	25th November 1996
	 
	 	 	 	 
	RENT

	 	:
	 	until 25th May 1997 the sum of
£47,916 per annum and thereafter £95,832
per annum subject to review as provided in
this Lease
	 
	 	 	 	 
	REVIEW DATES

	 	:
	 	25th November 2001 and each
fifth anniversary of that date
	 
	 	 	 	 
	PERMITTED USE

	 	:
	 	use for any purpose within Classes B1 and
B8 of the Schedule to the Town and Country
Planning (Use Classes) Order 1987 (as
amended or replaced from time to time)

 

 

CONTENTS

	 	 	 
	CLAUSE	 	SUBJECT
	1.

	 	DEFINITIONS
	 
	 	 
	2.

	 	INTERPRETATION
	 
	 	 
	3.

	 	DEMISE
	 
	 	 
	4.

	 	TENANTS COVENANTS
	 
	 	 
	4.1

	 	Payment of rents
	 
	 	 
	4.2

	 	Interest on late payments
	 
	 	 
	4.3

	 	Payment of rates etc
	 
	 	 
	4.4

	 	Exterior painting
	 
	 	 
	4.5

	 	Interior painting
	 
	 	 
	4.6

	 	Repair
	 
	 	 
	4.7

	 	Yielding up
	 
	 	 
	4.8

	 	Reinstatement
	 
	 	 
	4.9

	 	Landlord’s access
	 
	 	 
	4.10

	 	Default remedies of the Landlord
	 
	 	 
	4.11

	 	Signs and aerials
	 
	 	 
	4.12

	 	Use
	 
	 	 
	4.13

	 	Refuse and rubbish
	 
	 	 
	4.14

	 	Nuisance
	 
	 	 
	4.15

	 	Estate regulations
	 
	 	 
	4.16

	 	Estate Roads and Accessways etc
	 
	 	 
	4.17

	 	Acts prejudicial to insurance
	 
	 	 
	4.18

	 	Safeguarding the Premises
	 
	 	 
	4.19

	 	Planning Applications
	 
	 	 
	4.20

	 	Alterations
	 
	 	 
	4.21

	 	Statutory obligations

 

 

	 	 	 
	CLAUSE	 	SUBJECT
	4.22

	 	Alienation
	 
	 	 
	4.23

	 	Registration of dealings
	 
	 	 
	4.24

	 	Reletting and sale boards
	 
	 	 
	4.25

	 	Cost of licences and notices as to breach of covenant
	 
	 	 
	4.26

	 	Indemnity
	 
	 	 
	4.27

	 	VAT
	 
	 	 
	4.28

	 	Defects
	 
	 	 
	4.29

	 	Costs of party items
	 
	 	 
	4.30

	 	Documents affecting title
	 
	 	 
	5.

	 	LANDLORD’S COVENANTS
	 
	 	 
	5.1

	 	Quiet enjoyment
	 
	 	 
	5.2

	 	Insurance
	 
	 	 
	5.3

	 	Estate Roads and Parking etc
	 
	 	 
	6.

	 	CONDITIONS
	 
	 	 
	6.1

	 	Repossession on Tenant’s default
	 
	 	 
	6.2

	 	Benefit of insurance and abatement of rent
	 
	 	 
	6.3

	 	Notices
	 
	 	 
	6.4

	 	Repair of Estate Roads etc
	 
	 	 
	6.5

	 	Closure of facilities
	 
	 	 
	7.

	 	RENT REVIEW
	 
	 	 
	8.

	 	TENANT’S OPTION TO DETERMINE
	 
	 	 
	9.

	 	SURETY

 

 

SCHEDULES

	 	 	 	 	 
	First Schedule

	 	 	 	Building
	 
	 	 	 	 
	Second Schedule -

	 	Part 1
	 	Rights
	 
	 	 	 	 
	 

	 	Part 2
	 	Exceptions and Reservations
	 
	 	 	 	 
	Third Schedule

	 	 	 	Obligations of the Surety
	 
	 	 	 	 
	Fourth Schedule

	 	 	 	Rent review memorandum
	 
	 	 	 	 
	Fifth Schedule

	 	 	 	Documents and matters affecting title
	 
	 	 	 	 
	Sixth Schedule

	 	Part 1
	 	Service Charge for the Estate
	 
	 	 	 	 
	 

	 	Part 2
	 	Costs or Winnersh 500 facilities
	 
	 	 	 	 
	Seventh Schedule

	 	 	 	Materials referred to in clause 4.18.2

 

 

THIS LEASE is made on the date and between the parties stated in the Particulars

WITNESSES as follows:

	1.	 	DEFINITIONS
	 
	 	 	In this Lease the following expressions have the meanings indicated:

	 	 	 	 	 
	 

	 	“Accessways”
	 	the roads and ways shown for the purpose of
identification only hatched brown on the Lease
Plan
	 
	 	 	 	 
	 

	 	the “Act”
	 	means the Landlord and Tenant (Covenants) Act 1995
	 
	 	 	 	 
	 

	 	“Adjoining Premises”
	 	the premises known as Winnersh 540 demised by a
lease of even date made between the Landlord and
the Tenant
	 
	 	 	 	 
	 

	 	“Authorised Guarantee Agreement”
	 	the meaning defined in and for the purposes of
Section 16 of the Act and the form of such
Agreement shall be as reasonably required by the
Landlord
	 
	 	 	 	 
	 

	 	“Common Areas”
	 	the Estate other than the Premises and other
areas let or intended by the Landlord to be let
but including the whole of the Estate Roads
	 
	 	 	 	 
	 

	 	“Conducting Media”
	 	all sewers drains pipes wires watercourses
subways cables apparatus conduits and any other
media or works for the conduct or transmission of
any service matter or material (including any
media and works in respect of the sprinkler
system at the Estate)
	 
	 	 	 	 
	 

	 	“Estate Plan”
	 	the plan marked Estate Plan attached to this Lease

1

 

	 	 	 	 	 
	 

	 	“Estate Roads”
	 	1. the roads pavements and paths shown for the
purpose of identification only hatched brown on
the Estate Plan (or any road pavement or path
at any time replacing any of them) and

	 
	 	 	 	 
	 

	 	 	 	2. such other roads pavements and paths at
Winnersh Triangle (whether or not on or forming
part of the Estate) as may from time to time
serve or be available for use generally by
tenants and occupiers in connection with
premises on the Estate but excluding any that
may be or become any public highway or footpath

	 
	 	 	 	 
	 

	 	“First Schedule”
	 	the schedule referred to in the First Schedule
including any amended or substituted schedule
describing any other building (and its fixtures
equipment and other items) erected on the Land
by the Landlord pursuant to this Lease
	 
	 	 	 	 
	 

	 	“Fixtures”
	 	the Landlord’s fixtures from time to time on or
forming part of the Land including the fixtures
equipment and items which with the Building are
described in the First Schedule
	 
	 	 	 	 
	 

	 	“Full Reinstatement Value”
	 	the costs (including demolition professional
fees and any value added tax payable) which
would be likely to be incurred in carrying out
repair or reinstatement in accordance with the
requirements of this Lease at the time when
such

2

 

 

 

	 	 	 	 	 
	 

	 	 	 	repair or reinstatement is likely to take place having regard
to current building techniques and materials
	 
	 	 	 	 
	 

	 	“Insured Risks”
	 	fire lightning earthquake explosion aircraft riot storm
tempest flood burst pipes malicious damage and impact damage
and such other insurable risks and on such terms and subject
to such exclusions as the Landlord may from time to time
consider reasonably necessary but excluding any risks which
the Landlord shall decide from time to time not to include in
any policy (whether on the grounds of unavailability of
insurance cover for that risk or otherwise) but so that the
Landlord shall give at least fourteen days’ prior notice in
writing to the Tenant of any risk ceasing to be covered by
any policy
	 
	 	 	 	 
	 

	 	“Landscaped Areas”
	 	those parts of the Land as are hatched green on the Lease Plan
	 
	 	 	 	 
	 

	 	“Lease Plan”
	 	the plan marked “Lease Plan” attached to this Lease
	 
	 	 	 	 
	 

	 	“Loss of Rent”
	 	the loss of the rent first reserved by clause 3 for such
period (being not less than three years) as may reasonably be
required by the Landlord from time to time having regard to
the likely period required for reinstatement in the event of
both partial and total destruction and in an amount

3

 

	 	 	 	 	 
	 

	 	 	 	which would take into account potential increases
of rent in accordance with clause 7
	 
	 	 	 	 
	 

	 	“Parking Area”
	 	such area or areas within the Land as are
designated for parking and shown on the Lease Plan
as demised car parking
	 
	 	 	 	 
	 

	 	“Planning Acts”
	 	includes the Town and Country Planning Act 1990
the Planning (Listed Buildings and Conservation
Areas) Act 1990 the Planning (Hazardous
Substances) Act 1990 and the Planning
(Consequential Provisions) Act 1990
	 
	 	 	 	 
	 

	 	“Premises”
	 	the Land together with the Building (or any other
building erected by the Landlord in its place) and
all additions and the Fixtures and a reference to
the “Premises” includes a reference to any part
	 
	 	 	 	 
	 

	 	“Prescribed Rate”
	 	three per centum above the Base Rate of National
Westminster Bank PLC from time to time (or such
other clearing bank as the Landlord shall
nominate) or (if such rate shall cease to be
published) such other reasonable or comparable
rate as the Landlord shall from time to time
designate
	 
	 	 	 	 
	 

	 	“Service Charge”
	 	the aggregate of the costs and liabilities
referred to in Part 1 of the Sixth Schedule
	 
	 	 	 	 
	 

	 	“Service Charge Period”
	 	the period in respect of which the Service Charge
is calculated as determined from time to time by
the Landlord and notified to the Tenant and

4

 

	 	 	 	 	 
	 

	 	 	 	initially is each consecutive period of twelve months ending on 31 December
	 
	 	 	 	 
	 

	 	“Sign Display”
	 	the panel or panels installed by the Landlord on the Building for the display
of name and logo signs
	 
	 	 	 	 
	 

	 	“Tenant’s Proportion of the Service Charge”
	 	the part of the Service Charge for which the Tenant is liable which shall
be such fair and proper proportion as the Landlord’s Surveyor shall from time
to time determine acting as an expert
	 
	 	 	 	 
	 

	 	“Winnersh 500”
	 	means that part of the Estate (of which the Premises form part) shown edged
blue on the Lease Plan

	2.         INTERPRETATION

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

5

 

	2.5	 	References in the Sixth Schedule to gross external areas mean such areas from time
to time

	 
	3.	 	DEMISE
	 
	 	 	The Landlord demises to the Tenant the Premises together with the Rights referred to in Part
1 of the Second Schedule but subject to the Exceptions and Reservations referred to in Part
2 of the Second Schedule and to any documents and matters referred to in the Fifth Schedule
to hold to the Tenant for the Term starting on the Commencement Date yielding and paying
therefor during the Term:

	 
	3.1	 	Rent
	 
	 	 	yearly the Rent and all increases arising from any review pursuant to the provisions
in this Lease for the review of rent to be paid without any deduction or set off by
equal quarterly payments in advance on the Twenty-fifth day of March the
Twenty-fourth day of June the Twenty-ninth day of September and the Twenty-fifth day
of December in every year the first payment for the period from and including the
Rent Commencement Date up to and including the day immediately preceding the quarter
day next after the date of this Lease to be made on the date of this Lease
	 
	3.2	 	Service Charge for the Estate
	 
	 	 	as additional rent the Tenant’s Proportion of the Service Charge in respect of the
Estate in accordance with Part 1 of the Sixth Schedule
	 
	3.3	 	Winnersh 500 facilities
	 
	 	 	as additional rent the sums payable by the Tenant in respect of Winnersh 500
pursuant to and in accordance with Part 2 of the Sixth Schedule
	 
	3.4	 	Insurance
	 
	 	 	as additional rent from time to time a sum or sums of money equal to the expense
incurred by the Landlord in effecting or maintaining insurance in accordance with
clause 5.2 (including any increased premium payable in

6

 

	 	 	respect of the Premises or any neighbouring property by reason of any act or
omission by (or permitted by) the Tenant or an undertenant) as the Landlord shall
from time to time effect such insurance for the Landlord’s benefit in the Full
Reinstatement Value against the Insured Risks and the Loss of Rent such sum or sums
to be paid on demand

	 
	4.	 	TENANTS COVENANTS
	 
	 	 	The Tenant covenants with the Landlord as follows:

	4.1	 	Payment of rents
	 
	 	 	To pay the respective rents and sums of money reserved and made payable at the times
and in the manner in which the same are set out or referred to in clause 3 without
any deduction or set off and to make all such payments to the Landlord on the due
date through the Tenant’s bankers by the direct debit system
	 
	4.2	 	Interest on late payments
	 
	 	 	If the Tenant shall fail to pay any rents or any other sum payable under this Lease
when the same is due (whether formally demanded or not) to pay to the Landlord as
additional rent (but without prejudice to any other rights of the Landlord including
those under clause 6) interest on all such rents or other sums from the due date for
payment until the date actually paid at the Prescribed Rate current at such due date
and any such interest shall be recoverable by the Landlord as rent in arrear
	 
	4.3	 	Payment of rates etc

	 
	4.3.1	 	To pay and indemnify the Landlord against all existing and future rates or other
outgoings whatsoever imposed or charged upon the Premises or upon the owner or occupier in
respect of the Premises
	 
	4.3.2	 	To pay and be responsible for all electricity gas and other services to the
Premises

7

 

	4.4	 	Exterior painting
	 
	 	 	In every third year and in the last year of the Term to prepare and paint the
outside of the Building where usually or previously so painted in a good and
workmanlike manner and otherwise properly to clean treat or decorate other parts of
the outside of the Building as the same ought to be cleaned treated and decorated
(such painting and decorating to be carried out in colours and patterns first
approved in writing by the Landlord such approval not to be unreasonably withheld or
delayed) and whenever necessary to renew or replace all seals and mastics
	 
	4.5	 	Interior painting
	 
	 	 	In every fifth year and in the last year of the Term to prepare and paint all the
interior of the Building where usually or previously so painted in a good and
workmanlike manner (all such painting in the last year of the Term to be carried out
in colours and patterns first approved in writing by the Landlord) such approval not
to be unreasonably withheld or delayed
	 
	4.6	 	Repair

	 
	4.6.1	 	Well and substantially to repair and maintain the Premises and the walls fences
roads and Conducting Media in on or under the Premises (damage by any of the Insured Risks
excepted unless the insurance moneys are withheld in whole or in part or the policy avoided by
reason of any act or omission on the part of the Tenant or any undertenant or any employee
contractor or invitee of either of them) and at all times to keep the same in good and
substantial repair and condition and so repaired cleaned painted and maintained and further to
keep all parts of the Premises clean and tidy and free from rubbish and waste materials

8

 

	4.6.2	 	To keep the Parking Area for and suitable for the parking of vehicles
only
	 
	4.6.3	 	Subject to clause 4.6.4 to keep the Landscaped Areas as landscaped areas maintained
and planted as laid out and planted by the Landlord and in accordance with any general scheme
for the Estate from time to time specified by the Landlord and to replace with equivalent
specimens any plants that may die or need replacement and regularly to cut the grass and
generally to tend nurture and maintain the Landscaped Areas
	 
	4.6.4	 	If the Landlord so requires at any time or from time to time not to do the things
referred to in clause 4.6.3 (or such of them as may be notified to the Tenant) and shall give
to the Tenant reasonable notice of such requirement but instead to pay to the Landlord on
demand the reasonable and proper costs incurred by the Landlord in doing so or (where the
Landlord incurs costs in relation to such Areas and all or any of the other areas shown
hatched green on the Lease Plan) a proper proportion (as defined in paragraph 1.2 Part 2 of
the Fifth Schedule) of the costs so incurred by the Landlord
	 
	4.6.5	 	Not in any event to harm or damage any of the Landscaped Areas or the landscaping
or plants on them nor to alter such Areas or the scheme of landscaping and plants

	 
	4.7	 	Yielding up
	 
	 	 	At the expiration or sooner determination of the Term to yield up the Premises in
good and substantial repair and consistent with the full and due compliance by the
Tenant with its obligations under this Lease and to remove such tenant’s trade
fixtures and fittings and any signs erected by or

9

 

	 	 	at the instance of the Tenant making good any damage caused by such removal
	 
	4.8	 	Reinstatement

	 
	4.8.1	 	Three months before the expiry or sooner determination of the Term (unless or to
the extent otherwise required in writing by the Landlord) to carry out such works as shall be
necessary or desirable in order to ensure that the Premises or such part or parts of them as
may be required by the Landlord conform with the description in the First Schedule
	 
	4.8.2	 	Immediately before the assignment or underletting of this Lease or of the lease of
the Adjoining Premises (whether with or without the Landlord’s consent) separately from the
other to carry out all such works as shall be necessary to ensure that the Premises and the
Adjoining Premises are rendered separate and to reinstate any party walls and to remove all
doors windows or other openings and to seal off any Conducting Media
	 
	4.8.3	 	All such works shall be carried out to the satisfaction of the Landlord and the
Tenant shall apply for any necessary planning permission or approval which may be required
under the Planning Acts or other legislation

	 
	4.9	 	Landlord’s access
	 
	 	 	On the giving of reasonable prior notice in writing to permit the Landlord or its
agents at all times during the Term during reasonable hours in the day (or at any
time in the case of emergency) with or without workmen and others to enter the
Premises for the purpose of ascertaining that the covenants and conditions of this
Lease have been performed and observed by the Tenant and examining (including
opening up floors walls and ceilings

10

 

	 	 	where necessary to examine) the state of repair and condition of the Premises or for
the purpose of taking inventories of the Landlord’s fixtures or of carrying out
works on the adjoining property of the Landlord and of exercising any of the
Exceptions and Reservations referred to in Part 2 of the Second Schedule the
Landlord causing as little damage and inconvenience as practicable and as soon as
practicable making good all damage caused in the exercise of such right
	 
	4.10	 	Default remedies of the Landlord
	 
	 	 	If within three months after service of a notice from the Landlord requiring the
Tenant to remedy any breach of covenant relating to the state of repair or condition
of the Premises or otherwise to the carrying out of any works or actions (or earlier
in case of emergency) the Tenant shall not have commenced and proceeded diligently
and expeditiously such works or actions then to permit the Landlord to enter upon
the Premises and execute all or any such works or actions and the Landlord’s proper
costs and expenses (including the Landlord’s surveyors’ and other professional fees
in connection therewith) together with interest thereon at the Prescribed Rate
current at the date one month after service of such notice for the period from that
date to the date of payment shall be a debt due from the Tenant to the Landlord and
be forthwith recoverable as rent in arrear
	 
	4.11	 	Signs and aerials
	 
	 	 	Not to erect any pole mast or aerial or erect or display any sign noticeboard or
advertisement on any part of the Premises but the Tenant shall install and maintain
in the Sign Display an appropriate sign (to the prior written approval of the
Landlord not to be unreasonably withheld) showing the name of the Tenant and (if
applicable) its logo but showing no other information

11

 

	4.12	 	Use

	 
	4.12.1	 	Not to use the Premises or any part thereof otherwise than for the Permitted Use
and not at any time to store anything on any part of the Premises outside the Building
	 
	4.12.2	 	To use only for the parking of vehicles the Parking Area (but not to park any
trailers on such Area) and to require employees to use only such Area for the parking of their
vehicles and to enforce such requirement by all reasonable means available to the Tenant as an
employer

	 
	4.13	 	Refuse and rubbish

	 
	4.13.1	 	To ensure that all refuse rubbish and waste material is put in secure and closed
containers designed for that purpose and to take all appropriate measures to prevent escape of
refuse rubbish or waste materials from such containers
	 
	4.13.2	 	To make and maintain satisfactory arrangements for the regular removal of all
refuse rubbish and waste materials from the Premises so often as is necessary
	 
	4.13.3	 	If the Tenant fails to take immediately such steps as may be necessary to comply
with clause 4.13.1 or 4.13.2 after notice from the Landlord requiring it to do so to permit
the Landlord or others authorised by it (if the Landlord decides to do so) to enter the
Premises to carry out removal of refuse rubbish or waste materials (whether or not on a
regular basis) and to pay to the Landlord on demand all proper costs and expenses incurred by
the Landlord in connection with any removal arrangements which it makes

12

 

	4.14	 	Nuisance

	 
	4.14.1	 	Not to use the Premises or any part of them for any illegal purpose nor to carry
out on or from the Premises any noisy noxious dangerous or offensive act activity or business
nor anything which may be or become a nuisance or damage to the Landlord or any of its tenants
or the occupiers of any premises in the neighbourhood and in particular not to do or permit to
be done anything which might cause electronic or radio interference with any adjoining or
neighbouring premises
	 
	4.14.2	 	Not to do anything which would or might lead to any contamination of the Premises
or pollution of the environment or lead to the pollution obstruction damaging or overloading
of the Conducting Media and to carry out (or at the Landlord’s election to pay to the Landlord
the proper costs and fees of carrying out) all works necessary to remedy the contamination or
pollution or to remove the source of the contamination or pollution
	 
	4.14.3	 	Where the Tenant has failed to observe any of the obligations in this clause 4.14
to pay to the Landlord the proper costs incurred by it in obtaining such reports as the
Landlord may reasonably require to establish what damage or harm may have been caused to the
Premises or other property of the Landlord and the remedial cleaning or other works necessary
	 
	4.14.4	 	Not to discharge or allow to enter into any underground or other waters any
poisonous noxious or harmful effluent liquid or substance

	 
	4.15	 	Estate regulations
	 
	 	 	To observe such reasonable regulations as may from time to time be made by the
Landlord for the purposes of good estate management

13

 

	4.16	 	Estate Roads and Accessways etc

	 
	4.16.1	 	To take all necessary precautions to prevent damage or excessive wear and tear to
or any avoidable obstruction or any of the Estate Roads or the Accessways and to pay to the
Landlord on demand all proper costs and expenses of making good any damage (other than normal
wear and tear) caused to any of them by the Tenant or any undertenant or any of their
respective employees contractors or visitors
	 
	4.16.2	 	Not to park or permit the parking by the employees or contractors of or visitors
to the Tenant of vehicles on any of the Estate Roads or Accessways or elsewhere on the Estate
other than in accordance with clause 4.12.2

	4.17	 	Acts prejudicial to insurance

	4.17.1	 	Not to do anything as a result of which any policy of insurance against damage to
the Premises or to any neighbouring premises may be prejudiced or payment of the policy moneys
may be withheld in whole or in part or whereby the rate of premium in respect of any such
insurance may be increased and to give notice to the Landlord forthwith upon the happening of
any event which might affect any insurance policy relating to the Premises
	 
	4.17.2	 	In relation to the insurance effected by the Landlord in respect of the Premises
to pay to the Landlord any excess required by the insurers or by the Landlord on demand by the
Landlord following any damage or destruction by any Insured Risks where such excess would be
applicable to any claim in respect of such damage or destruction

14

 

	4.18	 	Safeguarding the Premises

	4.18.1	 	With respect to fire precautions and safeguarding the Premises against damage by
any of the Insured Risks or otherwise to comply with all requirements and recommendations of
the insurers of the Premises or the relevant insurance brokers or of the fire brigade or local
authority
	 
	4.18.2	 	Not to store or bring on to or allow to remain on the Premises any article
substance or liquid of a specially combustible inflammable or explosive nature or which may be
a source of contamination PROVIDED that for so long as the Tenant is Azur Environmental
Limited the storage on the Premises of reasonable quantities of the items listed in the
Seventh Schedule for purposes solely connected with the business of Azur Environmental Limited
shall be deemed not to be a breach of this clause
	 
	4.18.3	 	To give written notice to the Landlord upon the occurrence of any contamination of
the Premises and also upon the occurrence of any pollution of the environment in breach of any
legislative provision caused by any use of or action or activity on the Premises

	4.19	 	Planning Applications
	 
	 	 	Not without the prior written consent of the Landlord (such consent not to be
unreasonably withheld or delayed) to make any application for any consent under the
Planning Acts
	 
	4.20	 	Alterations
	 
	 	 	Not to erect or place any new building or structure whatsoever on the Premises
(including any temporary or moveable building or structure) and not to make any
alteration whether structural or otherwise or any addition to the Premises or to the
Building or to any buildings which may be erected

15

 

	 	 	on the Premises PROVIDED THAT the Tenant may with the written consent of the
Landlord (such consent not to be unreasonably withheld or delayed) erect install or
alter internal demountable partitions not affecting the structure of the Building

	4.21	 	Statutory obligations

	4.21.1	 	At the Tenant’s expense to comply in all respects with the provisions of all
statutes and legislation (whether now or subsequently in force) affecting or applicable to the
Premises or their use and forthwith to give notice to the Landlord of any notice direction or
order made by any local or competent authority
	 
	4.21.2	 	Where required by statute or legislation the Tenant shall maintain a health and
safety file for any works carried out to the Premises and shall comply with the Construction
(Design and Management) Regulations 1994 in respect thereof and provide to the Landlord upon
reasonable request a copy of such file

	4.22	 	Alienation

	4.22.1	 	Not to charge or mortgage either the whole or any part of the Premises nor to
assign underlet share or part with the possession or occupation of any part of the Premises
nor to permit any such dealing under a permitted underlease
	 
	4.22.2	 	Not to hold or occupy the Premises or any part as nominee trustee or agent or
otherwise for the benefit of any other person
	 
	4.22.3	 	Not to assign or underlet the whole of the Premises without the prior consent in
writing of the Landlord (such consent not to be unreasonably withheld where the provisions
hereinafter contained are satisfied)

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	4.22.4	 	It is agreed that the Landlord will not be deemed to be unreasonable in
withholding consent to a proposed assignment of the whole of the Premises if
it is withheld on the ground (and it is the case) that 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):-

	4.22.4.1	 	that in the reasonable opinion of the Landlord the effect of the proposed
assignment upon the value of the Landlord’s reversionary interest in the Premises would be to
diminish or otherwise adversely affect such value
	 
	4.22.4.2	 	that in the reasonable opinion of the Landlord the effect or the assignment
would mean that there is a reduced likelihood of the tenant’s covenants and obligations in
this Lease being fulfilled
	 
	4.22.4.3	 	that the proposed assignee is an associated company of the Tenant

	4.22.5	 	On any assignment:-

	4.22.5.1	 	The Tenant will enter into an Authorised Guarantee Agreement which will be in
such form as the Landlord may reasonably request and be prepared by or on behalf of the
Landlord and at the cost of the Tenant and under which the assignor will agree (inter alia)
with the Landlord:-

	4.22.5.1.1.1	 	that it is liable as sole or principal debtor in respect of all obligations
to be owed by the assignee under the Tenant Covenants (as defined in Section 28 of the Act) in
this Lease

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	4.22.5.1.1.2	 	to be liable as guarantor in respect of the
assignee’s performance of the Tenant Covenants (as
above defined) in this Lease (provided that such
liability shall be no more onerous than the liability
to which the assignor would be subject in the event
of his being liable as sole or principal debtor in
respect of the obligations owed by the assignee under
the said Tenant Covenants)
	 
	4.22.5.1.1.3	 	in the event of this Lease being disclaimed to enter into a new lease of the
Premises the term of which shall expire simultaneously with the date upon which (but for any
such disclaimer) this Lease would have expired by effluxion of time (and not by any other
means) and the Tenant Covenants shall be identical to (mutatis mutandis but in any event no
more onerous than) the Tenant Covenants in this Lease

	4.22.5.2	 	If the Landlord reasonably so requires the Tenant shall obtain acceptable
guarantors for any person to whom this Lease is to be assigned who will covenant with the
Landlord on the terms (mutatis mutandis) set out in the Third Schedule
	 
	4.22.5.3	 	If the Landlord reasonably so requires the proposed assignee will prior to the
assignment enter into such reasonable rent

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	 	 	deposit arrangement and/or provide such additional security for
performance by the proposed assignee of its obligations under this
Lease as the Landlord may reasonably require
	 
	4.22.5.4	 	The proposed assignee shall enter into a covenant with the Landlord to pay the
rents reserved by and perform and observe the covenants on the part of the Tenant contained in
this Lease

	4.22.5.4.1	 	clauses 4.22.4 and 4.22.5 shall operate without prejudice to the right of the
Landlord to impose any further conditions upon a grant of consent where such imposition is
reasonable

	4.22.6	 	Not to underlet the whole of the Premises without the prior consent in writing of
the Landlord otherwise than at a rent which is not less than the open market rental value of
the Premises (being in any event not less than the rent then payable under this Lease) without
a fine or premium and with provision for upwards only rent reviews coinciding with the reviews
under this Lease and in other respects with materially the same covenants and conditions as
are contained in this Lease
	 
	4.22.5	 	Not to vary the terms of any underlease permitted under this clause 4.22 without the
Landlord’s written consent and throughout the term of any underlease to require the
undertenant at all times to perform and observe the Tenant’s covenants (except as to the
payment of rent) and the conditions contained in this Lease
	 
	4.22.6	 	The Landlord may as a condition for giving its consent for any permitted underletting
require the proposed underlessee to enter into a direct covenant with the Landlord to perform
and observe the

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	 	 	Tenant’s covenants and the conditions contained in this Lease (save as to
payment of rent)
	 
	4.22.7	 	Upon the Landlord consenting to an underletting of the Premises procure that the
underlessee covenants with the Landlord:

	4.22.7.1	 	Not to assign (or agree to do so) any part of the Premises (as distinct from the
whole) and not to charge or underlet or share or (save by way of an assignment of the whole)
part with possession of or permit any person to occupy the whole or any part of the Premises
	 
	4.22.7.2	 	Not to assign (or agree to do so) the whole of the Premises without the prior
consent in writing of the Landlord (such consent not to be unreasonably withheld)

	4.22.8	 	To notify the Landlord in writing with relevant details within fourteen days of
any rent payable under an underlease being reviewed
	 
	4.22.9	 	In the event that any circumstances or conditions specified in clauses 4.22.4 and
4.22.5 above are framed by reference to any matter falling to be determined by the Landlord
(or by any other person) if the Tenant disputes such determination then either the Landlord or
the Tenant shall be entitled to require the matter or matters in question to be referred to an
independent expert who in the absence of agreement between the parties shall be appointed on
the application of either party by the President of the Royal Institution of Chartered
Surveyors and the determination of such independent expert shall be conclusive as to the
matter or matters in question and shall be final and binding on the parties and his costs
shall be met by the parties in such proportions as the independent expert shall determine

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	4.23	 	Registration of dealings
	 
	 	 	Within one month after the execution of any assignment or underlease permitted under
this Lease or any assignment of such underlease or after any devolution by will or
otherwise of the Term or after any other dealing with this Lease to supply a
certified copy of the deed or instrument effecting the same to the Landlord and to
pay such reasonable fee as the Landlord may require for registration
	 
	4.24	 	Reletting and sale boards
	 
	 	 	To permit the Landlord or its agents to enter upon the Premises and to affix upon
any suitable part (which does not obscure the Tenant’s own signs) a notice board for
reletting or selling the same and not to remove or obscure the same and to permit
all persons authorised in writing by the Landlord or its agents on the giving of
reasonable prior written notice to view the Premises during business hours in the
daytime
	 
	4.25	 	Cost of licences and notices as to breach of covenant
	 
	 	 	To pay on demand and indemnify the Landlord against all costs charges and expenses
(including professional fees) reasonably and properly incurred by the Landlord
arising out of or incidental to any application made by the Tenant for any consent
or approval of the Landlord and against all costs charges and expenses (including
any professional fees) properly incurred by the Landlord arising out of or
incidental to any breach or the Tenant’s covenants or the preparation and service of
a schedule or interim schedule of dilapidations or any notice which the Landlord may
serve on the Tenant whether served before or after the determination of this Lease
(including a notice under Section 146 of the Law of Property Act 1925) requiring the
Tenant to remedy any breach of any of its covenants or arising out of or in
connection with any proceedings referred to in Sections 146 or 147 of that

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	 	 	Act notwithstanding that forfeiture may be avoided otherwise than by relief granted
by the Court
	 
	4.26	 	Indemnity
	 
	 	 	To be responsible for and to indemnify the Landlord against:

	4.26.1	 	all damage loss or injury occasioned to the Premises or any adjoining premises or
to the Accessways or the Landscaped Areas or any Conducting Media or to any person or chattel
(whether or not upon the Premises) caused by any act default or negligence of the Tenant or
any undertenant or the servants agents licensees or invitees of either of them or by reason of
any defect in the Premises and
	 
	4.26.2	 	all losses damages costs expenses claims and proceedings incurred by or made
against the Landlord arising out of any breach by the Tenant of any of its obligations arising
by virtue of this Lease

	4.27	 	VAT
	 
	 	 	To pay to the Landlord upon demand any value added tax chargeable upon:

	4.27.1	 	any supply made by the Landlord to the Tenant pursuant to this Lease so that all
consideration for any such supply is exclusive of value added tax
	 
	4.27.2	 	any supply (whether made to the Landlord or to a third person) where pursuant to
this Lease the Tenant is required to pay to the Landlord any sum in respect of any costs fees
expenses or other expenditure or liability (of whatever nature) in connection with that supply
except to the extent that any such value added tax may be recoverable by the Landlord from
H.M. Customs and Excise

	 	 	PROVIDED ALWAYS that the Landlord will produce a valid VAT invoice to the Tenant
within 14 days of receipt of any payment of VAT from the Tenant

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	4.28	 	Defects
	 
	 	 	To inform the Landlord as soon as practicable in writing of any defect in the
Premises which might give rise to a duty imposed by common law or statute on the
Landlord and to indemnify the Landlord against all actions costs claims and
liabilities suffered or incurred by or made against the Landlord in respect of the
Premises under the Defective Premises Act 1972
	 
	4.29	 	Costs of party items
	 
	 	 	In so far as the Tenant is not obliged to contribute to the costs of the same under
any other provision of this Lease to pay a fair and proper proportion of the expense
(including any professional fees) of repairing rebuilding painting maintaining
cleaning and lighting all party structures and all roofs conducting media boundary
structures forecourts yards roads ways entrances passages staircases balconies and
other amenities or things the use or benefit of which is common to the Premises and
any adjoining or neighbouring premises such proportion to be determined by the
Landlord’s Surveyor whose determination shall (save in the case of manifest error)
be final and binding on the Tenant
	 
	4.30	 	Documents affecting title
	 
	 	 	To perform and observe the provisions of the documents and the other matters
referred to in the Fifth Schedule so far as they affect or relate to the Premises

	5.	 	LANDLORD’S COVENANTS
	 
	 	 	The Landlord covenants with the Tenant:

	5.1	 	Quiet enjoyment
	 
	 	 	That the Tenant performing and observing the covenants conditions and agreements
contained in this Lease shall and may peaceably and quietly hold and enjoy the
Premises during the Term without any lawful

23

 

	 	 	interruption or disturbance by the Landlord or any person rightfully claiming
through or under it
	 
	5.2	 	Insurance
	 
	 	 	At all times during the Term to keep the Premises insured for the Landlord’s benefit
in the Full Reinstatement Value against the Insured Risks and if the Premises are
damaged or destroyed by any of the Insured Risks the Landlord will with all
convenient and practicable speed repair or reinstate the Premises using such
materials as are then appropriate subject to all necessary consents and licences
being obtained

Provided that:

	5.2.1	 	the Landlord’s obligations under this covenant shall cease if the insurance shall
be rendered void or voidable or the policy moneys withheld in whole or in part by reason of
any act or default of the Tenant or any undertenant or any of their respective employees
contractors licensees or invitees
	 
	5.2.2	 	if the Premises are destroyed or seriously damaged by any Insured Risk as to
require (to the opinion of the Landlord’s surveyor whose decision shall be final and binding
upon the Parties) substantial reconstruction then the Landlord may at any time within six
months’ notice in writing to determine this Lease and immediately upon the expiry of that
notice this demise shall determine but without prejudice to the rights and remedies of any
party against any other in respect of any antecedent claim or breach of covenant and all
insurance money shall be the absolute property of the Landlord

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	5.3	 	Estate Roads and Parking etc
	 
	 	 	Subject to payment by the Tenant of the Tenant’s Proportion of the Service Charge in
accordance with Part 1 of the Sixth Schedule and any sums payable in accordance with
Part 2 of the Sixth Schedule the Landlord shall:

	5.3.1	 	maintain and repair such of the Estate Roads as are within the Estate and use all
reasonable endeavours to do so (or to procure that it be done) in respect of the remainder of
the Estate Roads until (in each case) adoption by the highway authority and
	 
	5.3.2	 	maintain and repair the Accessways

	6.	 	CONDITIONS
	 
	 	 	Provided always and it is hereby agreed and declared as follows:

	6.1	 	Repossession on Tenant’s default
	 
	 	 	If at any time during the Term:

	6.1.1	 	the rents reserved by this Lease or any of them or any part of them shall be in
arrear for fourteen days after the same shall have become due (whether legally demanded or
not) or
	 
	6.1.2	 	the Tenant shall at any time fail or neglect to perform or observe any of the
covenants conditions or agreements on its part to be performed and observed contained in this
Lease or in any licence approval or consent given by the Landlord to the Tenant in relation to
the Premises or in any other deed supplemental to this Lease or by which this Lease may be
varied or
	 
	6.1.3	 	the Tenant either shall (being a corporation) have an application made for an
administration order (whether or not at its instance) or enter into liquidation whether
compulsory or voluntary (not being a voluntary liquidation for the purpose of reconstruction
only) or (being an individual) become bankrupt or

25

 

	6.1.4	 	the Tenant shall make any arrangement or composition with creditors or
suffer any distress or execution to be levied on property of the Tenant or
have an encumbrancer take possession or a receiver appointed in respect of
the same

	 	 	then and in any such case it shall be lawful for the Landlord or any person or
persons duly authorised by it in that behalf) to re-enter into or upon the Premises
and thereupon the Term shall absolutely cease and determine but without prejudice to
the rights and remedies of the Landlord in respect of any antecedent breach of any
of the covenants conditions or agreements contained in this Lease
	 
	6.2	 	Benefit of insurance and abatement of rent

	6.2.1	 	The benefit of all insurance effected by the Landlord under this Lease or otherwise
in respect of the Premises or the Estate shall belong solely to the Landlord but if the
Premises or any part of them shall at any time be destroyed or damaged by any of the Insured
Risks so as to be unfit for occupation or use then and in every such case (unless the
Landlord’s policy of insurance in relation to the Premises shall have been rendered void or
voidable or the policy moneys withheld in whole or in part by reason of the act default or
omission of the Tenant or any undertenant or any of their respective employees contractors
licensees or invitees) the rent first reserved by this Lease or a fair and just proportion
thereof according to the nature and extent of the damage sustained shall be suspended and
cease to be payable until the Building shall have been repaired or reinstated and made fit for
occupation or use in accordance with clause 5.2
	 
	6.2.2	 	No account shall be taken of damage in relation to any alteration or improvement to
the Premises carried out otherwise than by the

26

 

	 	 	Landlord unless such alteration or improvement has in fact been taken into
account in effecting both the insurance of the Premises and the insurance in
respect of the Loss of Rent
	 
	6.2.3	 	Any dispute between the Landlord and the Tenant concerning the proportion or
duration of the suspension or cesser shall be determined by an arbitrator appointed in default
of agreement between the Landlord and the Tenant on the application of either of them by the
President of the Royal Institution of Chartered Surveyors and any such reference shall be a
submission to arbitration within the Arbitration Acts 1950 and 1979

	6.3	 	Notices
	 
	 	 	The provisions of Section 196 Law of Property Act 1925 (as amended) shall apply to
the giving and service of all notices and documents under or in connection with this
Lease
	 
	6.4	 	Repair of Estate Roads etc

	 	 	The Landlord shall have no liability to the Tenant:
	 
	6.4.1	 	in relation to any failure to maintain and repair the Estate Roads or the
Accessways unless the Tenant has given written notice to the Landlord of the relevant aspect
of non maintenance or disrepair or
	 
	6.4.2	 	on the grounds of disrepair of the Estate Roads caused by traffic using the Estate
Roads for the purposes of the development of other parts of the Estate or the carrying out of
works on the Estate but so that the disrepair shall be made good within a reasonable period
after the Estate Roads have ceased to be so used

	6.5	 	Closure of facilities
	 
	 	 	Subject to the Landlord using all reasonable endeavours to procure alternative
access to the Premises the Landlord may temporarily close or

27

 

	 	 	withdraw from use any of the Estate Roads the Accessways to permit the carrying out
of any repairs maintenance or works by it or any person authorised by if and in such
circumstances the Tenant shall have no claim against the Landlord in connection with
any such closure or withdrawal the person carrying out such works endeavouring to
keep such closure or withdrawal to the minimum reasonably required

	7.	 	RENT REVIEW

	7.1	 	In this clause:

	 	 	 	 	 
	 

	 	“Assumptions”
	 	means the assumptions that:
	 
	 	 	 	 
	 

	 	 	 	1. the Premises are in good and substantial repair and
condition

	 
	 	 	 	 
	 

	 	 	 	2. the Landlord and the Tenant have complied with all their
respective covenants and obligations imposed by this Lease
on each of them

	 
	 	 	 	 
	 

	 	 	 	3. all parts of the Premises are fit and ready for use for
the Permitted Use

	 
	 	 	 	 
	 

	 	 	 	4. that the rent at which the Premises could reasonably be
expected to be let is that which would be payable after the
expiry of any rent free period or after the receipt of such
other rent concession or inducement (in each case for
whatever reason) as may be negotiated in the open market
between a landlord and a tenant upon a letting of the
Premises

28

 

	 	 	 	 	 
	 

	 	 	 	5. no work has been carried out on the Premises
during the Term which has diminished the rental
value of the Premises and

	 
	 	 	 	 
	 

	 	 	 	6. any damage to or destruction of the Premises
or any means of access to them has been fully
reinstated

	 
	 	 	 	 
	 

	 	“Current Rent”
	 	means the yearly rent reserved by this Lease
(disregarding any suspension of rent under any
other provision of this Lease) as varied from
time to time pursuant to this clause
	 
	 	 	 	 
	 

	 	“Matters to be Disregarded”
	 	means each of the following matters so far as
they may affect rental value:
	 
	 	 	 	 
	 

	 	 	 	1. the fact that the Tenant has previously been
in occupation of the Premises

	 
	 	 	 	 
	 

	 	 	 	2. any goodwill attaching to the Premises by
reason of the carrying on of the business of
the Tenant at the Premises and

	 
	 	 	 	 
	 

	 	 	 	3. any improvement to the Premises carried out
during the Term by the Tenant or undertenant
other than improvements effected at the expense
of the Landlord or pursuant to any obligation
to the Landlord whether under the provisions of
this Lease or any other deed or document

	 
	 	 	 	 
	 

	 	“New Rent”
	 	as at any Review Date means the higher of:

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	 	 	 	1. the Current Rent immediately before that Review Date and
	 
	 	 	 	 
	 

	 	 	 	2. the Rental Value as at that Review Date
	 
	 	 	 	 
	 

	 	“President”
	 	means the President for the time being of the
Royal Institution of Chartered Surveyors any other body
reasonably specified by the Landlord
	 
	 	 	 	 
	 

	 	“Rental Value”
	 	as at any Review Date means the open market
rental value of the Premises at that Review Date:
	 
	 	 	 	 
	 

	 	 	 	1. as agreed by the Landlord and the Tenant or
	 
	 	 	 	 
	 

	 	 	 	2. as determined by a Valuer pursuant to the provisions of
this clause
	 
	 	 	 	 
	 

	 	“Valuer”
	 	means a chartered surveyor who has experience of practice
in property of the nature and type of the Premises and who
is acquainted with the market in the area in which the
Premises are located

	7.2	 	The New Rent shall be payable from and including each Review Date.
	 
	7.3	 	If the New Rent has not been agreed by the date which is three months before the relevant
Review Date either the Landlord or the Tenant may require the Rental Value to be determined by
a Valuer
	 
	7.4	 	Where the Rental Value is to be determined by a Valuer and the Landlord and the Tenant do not
agree as to his appointment within twenty one days of either of them putting forward a
nomination to the other such Valuer shall be appointed at the request of either party by the
President

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	7.5	 	The Valuer shall act as an expert and not as an arbitrator and his decision
(including any decision as to the costs of such determination) shall be final and
binding on the parties
	 
	7.6	 	The Valuer shall upon appointment either by the parties or the President be required upon his
determination to provide a reasoned award to the Landlord and the Tenant
	 
	7.7	 	Notwithstanding that the Valuer shall act as an expert the Landlord and the Tenant shall each
be entitled to make representations and counter-representations to such Valuer a copy of which
shall be supplied by the Valuer to the other of them and in making an award as to costs the
Valuer shall have regard to the representations and counter-representations made to him
	 
	7.8	 	The Valuer shall determine the Rental Value as the best yearly open market rack rental value
at which the Premises might reasonably be expected to be let with vacant possession in the
open market by a willing lessor to a willing lessee for a term of years equal in length to the
balance unexpired of the Term as at the relevant Review Date and on the terms and conditions
of a lease which are otherwise the same as this Lease except as to the actual amount of the
Current Rent and the date on which the term commences and making the Assumptions but taking no
account of the Matters to be Disregarded
	 
	7.9	 	If by the relevant Review Date the New Rent has not been ascertained (whether or not
negotiations have commenced) the Tenant shall continue to pay the Current Rent on each day
appointed by this Lease for payment of Rent until the New Rent has been ascertained and upon
such ascertainment of the New Rent the Tenant will pay to the Landlord as arrears of rent an
amount equal to the difference between the New Rent and

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	 	 	the Current Rent actually paid for the period since the relevant Review Date
together with interest on the difference at 3% below the Prescribed Rate
	 
	7.10	 	In no event shall the yearly rent payable by the Tenant to the Landlord after the relevant
Review Date be less than the yearly rent payable by the Tenant to the Landlord immediately
before such relevant Review Date
	 
	7.11	 	A memorandum in the form set out in the Fourth Schedule of any increased rent determined
pursuant to this clause 7 shall as soon as may be after such determination be prepared in
duplicate and signed by or on behalf of the Landlord and Tenant

	8.	 	TENANT’S OPTION TO DETERMINE

	8.1	 	In this clause “Termination Date” means                     November 2001 or November 2006
	 
	8.2	 	Subject to the pre-conditions in clause 8.3 being satisfied on the relevant Termination Date,
and subject to clause 4.8 the Tenant may determine the Term on a Termination Date by giving
the Landlord not less than six months’ written notice, which notice must be expressed to be
given under section 24(2) of the Landlord and Tenant Act 1954. The Term will then determine
on the relevant Termination Date, but without prejudice to any rights of either party against
the other for any antecedent breach of its obligations under this Lease
	 
	8.3	 	The pre-conditions are that:

	8.3.1	 	vacant possession of the whole of the Premises is given to the Landlord; and
	 
	8.3.2	 	all rent and other sums due under this Lease up to the relevant Termination Date
have been paid in full and all the Tenants obligations in this Lease up to the Termination
Date have been substantially complied with

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	8.4	 	The Landlord may waive any of the pre-conditions set out in clause 8.3 at any time
before the relevant Termination Date by written notice to the Tenant
	 
	8.5	 	The Tenant will cancel any registration it has made in connection with this clause within 15
working days of the relevant Termination Date
	 
	8.6	 	Time will be of the essence for the purposes of this clause

IN WITNESS of which this Lease has been executed and is delivered as a deed on the date appearing
as the date of this Lease

FIRST SCHEDULE

Description of the Building and Fixtures

The schedule annexed to this Lease headed “The First Schedule”

SECOND SCHEDULE

Part 1

The Rights

	1.	 	The right in common with the Landlord and all other persons now or at any time after the date
of this Lease similarly entitled to pass at all times and for all purposes connected with the
proper use of the Premises in accordance with this Lease:

	1.1	 	with or without vehicles over and along the Estate Roads and the Accessways and
(except for that part hatched purple on the Lease Plan) until in each case adoption by the
highway authority and
	 
	1.2	 	on foot only over and along that part shown hatched purple on the Lease Plan

	2.	 	The right in common with the Landlord and all other persons now or at any subsequent time
entitled to a similar right to the free passage and running of water soil gas electricity and
other services from and to the Premises through the

33

 

	 	 	Conducting Media in the Estate other than those adopted by the relevant statutory undertaker
	 
	3.	 	The right of support and protection for the Premises from the remainder of Winnersh 500
	 
	4.	 	So far as necessary and in any event subject to any licence required by clause 4.20 the right
to enter upon so much of the area shown hatched green on the Lease Plan as lies to the rear of
the Land to install and thereafter at all times to maintain repair renew and rebuild an air
conditioning plant

Part 2

The Exceptions and Reservations

	1.	 	To the Landlord and all others authorised by it the free and uninterrupted passage and
running of water soil gas electricity and telephone or any other service or supply from the
other buildings and land of the Landlord and its tenants adjoining or near the Premises and
from the land and premises of others so authorised as aforesaid through the Conducting Media
which are now or may hereafter be in through under or over the Premises
	 
	2.	 	To the Landlord and all others authorised by it the right at all times to enter the Premises
with all necessary equipment for the purposes of:

	2.1	 	carrying any repairs maintenance or works to or in relation to the Accessways and
(where clause 4.6.5 applies) the Landscaped Areas including the right to use and take water
from any external water supply at the Premises for the purposes of maintenance of planting and
landscaping at Winnersh 500
	 
	2.2	 	laying constructing installing replacing repairing maintaining or altering any
Conducting Media now or hereafter in through under or over the Premises or any adjoining
property or making connections to any such Conducting Media

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	2.3	 	carrying out inspections of or tests to any such Conducting Media
	 
	2.4	 	doing such other things in relation to any Conducting Media which directly or
indirectly serve or are connected to other premises as the Landlord considers proper to ensure
that such Conducting Media are in good working order and condition and
	 
	2.5	 	exercising any of the rights of the Landlord contained in this Lease.
	 
	 	 	The Landlord causing as little damage and inconvenience as practicable in the exercise of
such rights and as soon as practicable making good all damage caused

	3.	 	To the Landlord full right and liberty at any time hereafter or from time to time to execute
works and erections upon or to alter or rebuild any of the buildings erected on any part of
the Estate and to use its Estate and each part of it in such manner as the Landlord may think
fit notwithstanding that the access of light and air to the Premises may thereby be interfered
with
	 
	4.	 	To the Landlord and other the tenants and occupiers of other parts of Winnersh 500 the right
of support and protection from the Premises
	 
	5.	 	To the Landlord the right to install and retain on the Land columns for the provision of
lighting security or other services for Winnersh 500 and the right to enter the Premises with
all necessary equipment for such purposes or for maintaining altering or replacing such column
the Landlord causing as little damage and inconvenience as practicable in the exercise of such
rights and as soon as practicable making good all damage caused

THIRD SCHEDULE

Obligations of the Surety

	1.	 	If at any time the Tenant shall not pay any of the rents or other sums payable under this
Lease or perform and observe any of the covenants conditions or other

35

 

	 	 	terms of the Lease the Surety shall pay such rents or other sums or observe or perform such
covenants conditions or other terms
	 
	2.	 	By way of separate and additional liability and notwithstanding that the guarantee in
paragraph 1 may be unenforceable or invalid for any reason the Surety indemnifies the Landlord
against all proper losses damages costs and expenses suffered or incurred by the Landlord
arising out of or in connection with any failure by the Tenant to pay any of the rents and
sums or to perform and observe any of the covenants conditions or other terms referred to in
paragraph 1
	 
	3.	 	If:

	3.1	 	the Tenant shall be wound up or (being an individual) become bankrupt and its
liquidator or trustee in bankruptcy shall disclaim this Lease or
	 
	3.2	 	the Tenant shall cease to exist or shall die or

3.3 this Lease shall be forfeited

	 	 	(the date on which such event occurs being called the “Relevant Date”) the Landlord may
within three months after the Relevant Date by notice in writing require the Surety to
accept a lease of the Premises for a term commencing on the Relevant Date and continuing for
the residue then remaining of the Term at the same rents and with the same covenants and
conditions as are reserved by and are contained in this Lease and in such case the Surety
shall take such lease accordingly and execute a counterpart of it and pay all costs and
duties in relation to it
	 
	4.	 	The Surety undertakes with the Landlord that:

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

36

 

	4.2	 	the Surety shall not claim in any liquidation bankruptcy administration
receivership composition or arrangement of the Tenant in competition with the
Landlord and that the Surety shall remit to the Landlord the proceeds of all
judgments and all distributions which the Surety may receive from any liquidator
trustee in bankruptcy administrator administrative receiver receiver or supervisor
of the Tenant and shall hold for the benefit of the Landlord all security and rights
the Surety may have over assets of the Tenant while any liabilities of the Tenant or
the Surety to the Landlord remain outstanding and
	 
	4.3	 	if the Landlord shall not require the Surety to take a new lease of the Premises the
Surety shall nevertheless upon demand pay to the Landlord a sum equal to the rent first
reserved under this Lease and all other sums that would have been payable under this Lease in
respect of the period from and including the Relevant Date until the expiry of six months
after such Date or until the Landlord shall have granted a lease of the Premises to a third
party (whichever shall first occur) in addition and without prejudice to the Surety’s other
obligations to the Landlord

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

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

	6.1	 	the granting of time or any other indulgence or concession to the Tenant or any
compromise or compounding of the Landlord’s rights
	 
	6.2	 	the Tenant being in liquidation or (as the case may be) declared bankrupt
	 
	6.3	 	any variation in the terms and conditions of this Lease

any delay in exercising or failure to exercise or other exercise (including re-entry under clause 6.1) of any of the Landlord’s rights against the Tenant

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

37

 

	6.5	 	any legal limitation or any immunity disability or incapacity of the Tenant
(whether or not known to the Landlord) or the fact that any dealings with the
Landlord by the Tenant (including the acceptance by the Tenant of this Lease) may be
outside or in excess of the powers of the Tenant or
	 
	6.6	 	any other thing (including the expiration or sooner determination of the Term or any
such disclaimer or the death of the Surety (or any of the persons comprising the Surety) or
(in relation to one or more of such persons) the discharge of the other person or persons)
whereby (but for this provision) the Surety or any of them would be exonerated either wholly
or in part from any of the Surety obligations hereunder

FOURTH SCHEDULE

Rent Review Memorandum

Winnersh 545 Winnersh Triangle

Wokingham Berkshire

Lease dated [          ] 1996 between

Slough Properties Limited (1) and

Azur Environmental Limited (2)

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

	 	 	 	 	 
	Dated:

	 	[                                        ]	 	 
	 
	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Landlord/Tenant	 	 

38

 

FIFTH SCHEDULE

Documents and matters affecting title

	1.	 	The covenants matters and stipulations set out or referred to in or contained or referred to
in the documents referred to in the Property and Charges Registers of the Landlord’s title
number BK 167503 so far as the same affect or relate to the Premises other than the various
agreements under Section 52 of the Town and Country Planning Act 1971 as varied by the
Termination Agreement dated 30th June 1993
	 
	2.	 	A lease dated 5th November 1996 between Slough Properties Limited (1) and Southern Electric
plc (2) relating to an electricity substation to the south-east of the Premises

SIXTH SCHEDULE

Part 1

Service Charge for the Estate

Part A

Heads of Expenditure

Costs and liabilities which the Landlord (which in this Schedule shall where the context admits
include any other company which is a member of the same group of companies as the Landlord)
reasonably and properly incurs or becomes liable to pay or discharge in connection with the Estate
or occupiers thereon including the costs of:

	1.	 	repairing maintaining cleaning renewing and resurfacing the Estate Roads (including the
renewal of the line markings on the Roads)
	 
	2.	 	repairing maintaining replacing and operating the lighting of the Estate Roads (including the
cost of electricity)
	 
	3.	 	repairing maintaining decorating and replacing any estate office for the Estate including:

39

 

	3.1	 	the cost of services (including electricity gas and telephone) supplied to any such
office

	 
	3.2	 	rates payable in respect of any such office

	 
	3.3	 	the cost of equipment and materials in or for such office to the extent that they are
intended to be provided for the purposes of such office

	 
	4.	 	repairing maintaining and renewing any Conducting Media in or for any part of the Estate to
the extent that they are not the responsibility of any tenant of the Landlord on the Estate or
of a statutory undertaker and do not exclusively serve premises occupied by such a tenant
	 
	5.	 	repairing maintaining cleaning and keeping tidy the Common Areas including the tending care
and replacement of plants and trees and the maintenance and upkeep of landscaped areas
including nature strips in roads or on roundabouts at or at the approaches to Winnersh
Triangle
	 
	6.	 	repair maintenance and replacement of tanks pumps pipes and other equipment (excluding any
that form part of the Premises) forming part of the sprinkler system at the Estate including
the costs of inspection and maintenance contracts
	 
	7.	 	repair maintenance decoration operation lighting and cleaning of any structures fences walls
signs footpaths amenities and things on the Common Areas and benefiting the Estate or part of
it including any entrance feature from time to time for the Estate and any equipment
associated with it
	 
	8.	 	employing staff for the benefit of the Estate or the provision of any services on or for the
Estate (including for the purposes of operating an estate office) including the costs of
statutory and other insurance health pension welfare and other payments contributions and
premiums and the costs incidental to the performance of the duties of any such staff but where
engaged also to perform duties not connected with the Estate only a proportion of each of such
costs

40

 

	9.	 	rates taxes assessments duties charges burdens impositions and outgoings imposed or charged
upon the Common Areas or any part of them (including any estate office) or upon the owner or
occupier thereof

	 
	10.	 	insurance in such sum and against such risks as the Landlord shall consider appropriate in
respect of damage to any part of the Common Areas (including the Estate Roads) and the
structures buildings walls fences and other things thereon

	 
	11.	 	public liability insurance in respect of any liability of the Landlord in relation to the
Estate and the Estate Roads

	 
	12.	 	calculating the Service Charge and the Tenant’s liability under this Lease including
preparation of accounts and certification

	 
	13.	 	providing such security service for the benefit of the Estate as the Landlord may from time
to time consider appropriate

	 
	14.	 	the management of the Estate including the fees and disbursements of:

	14.1	 	any managing agents for or in connection with such management (including the
collection of rent and other sums payable by tenants of the Estate to the Landlord but
excluding the costs of court proceedings in recovering arrears from tenants other than the
Tenant) and the performance of any other duties or services in or about the Estate

	 
	14.2	 	the Landlord’s Surveyor for or in connection with the performance of any function
for the purposes of this Lease
	 
	14.3	 	any other individual firm or company engaged to perform services for the Estate or
any part of it
	 
	14.4	 	the Landlord where it carries out any service or function in such management
(including a fee charged by the Landlord for the collection of rent and other sums payable by
tenants of the Estate to the Landlord but excluding the costs of court proceedings in
recovering arrears from tenants other than the Tenant)

41

 

	2.4.2	 	paid by the Tenant on the date of this Lease and

	 
	2.4.3	 	calculated according to an estimate of the Service Charge made in accordance with 2.1 and
notified in writing to the Tenant

	 
	3.	 	If the Tenant’s Proportion of the Service Charge for a Service Charge Period:

	 
	3.1	 	exceeds any amounts paid by the Tenant to the Landlord as advance payments on account thereof
the amount of the excess (or the whole Proportion if no advance payments have been made) shall
(notwithstanding the expiration or sooner determination of the Term) be paid by the Tenant to
the Landlord within twenty-one days of the supply to the Tenant of the account pursuant to
paragraph 1 or
	 
	3.2	 	is less than such amounts so paid the amount of the difference shall be credited to the
Tenant against the next payments of rents due

	 
	4.	 	In respect of each of the Service Charge Periods in which occur the Commencement Date and the
date of the expiration or sooner determination of the Term the Tenant shall only be obliged to
pay the Tenant’s Proportion of the Service Charge in respect of that part of the Service
Charge for that Period as bears to the whole of that Service Charge the same proportion that
the number of days of the Term occurring in the relevant Period bears to 365

Part 2

Costs of Winnersh 500 facilities

Accessways and landscaping

	1.1	 	The Tenant shall pay to the Landlord on written demand the proper proportion of the costs
liabilities fees and expenses which the Landlord incurs or becomes liable to pay in connection
with:

	 
	1.1.1	 	the Accessways and any signs or direction notices on or for them including all sums incurred
pursuant to clause 5.3 or otherwise in

42

 

SEVENTH SCHEDULE

Materials referred to in clause 4.18.2

The schedule annexed to this Lease and headed “The Seventh Schedule”

	 	 	 	 	 	 	 
	THE COMMON SEAL of SLOUGH

	 	 	)	 	 	 
	PROPERTIES LIMITED was

	 	 	)	 	 	 
	affixed to this deed in the

	 	 	)	 	 	 
	presence of:

	 	 	)	 	 	[S E A L]

/s/ [Illegible] Director

/s/ [Illegible] Secretary

43

 

FIRST SCHEDULE

BUILDING NO. 545

ESKDALE ROAD

WINNERSH TRIANGLE

WINNERSH

A two storey, office/production building measuring approximately, 18.25m (59’10”) by 31.52m
(103’5”) comprising at ground floor, office and production areas and first floor office, the whole
providing gross external areas of:-

	 	 	 	 	 
	Production Area

	 	364.96 m2
	 	(3,928 sq.ft)
	First Floor Office

	 	185.41 m2
	 	(1,996 sq. ft.)
	Ground Floor Office

	 	185.41 m2
	 	(1,996 sq. ft)
	 
	Total

	 	735.78 m2
	 	(7,920 sq. ft)

FOUNDATIONS

Mass concrete bases and trench fill foundations, to structural engineer’s design and specification.

FRAME

Steel frame of columns and beams all to structural engineer’s design and specification.

ROOF

Roof comprises profiled steel sheeting with light grey coloured plastisol finish and supported on
galvanised mild steel purlins and galvanized zed spacers. Internal roof lining of galvanised PVF2
coated profiled lining sheets, cavity between containing 80mm layer of rockwool insulation.

Rainwater is conducted away via insulated, galvanised pressed steel gutters discharging into
internal PVCu rainwater pipes connected to the below ground surface water drainage system.

EXTERNAL WALLS

Cavity wall construction of 103mm facing bricks and internal skin of l00mm blockwork finished fair
faced and emulsion painted within the production area with a partially filled cavity containing
65mm rockwool insulation held against inner skin. Internal faces of the external walls to offices
finished with plasterboard drylining with an emulsion paint finish.

Page 1

 

South (front) elevation comprises facing brick piers surmounted by facing brick parapet with PVF2
colour coated, galvanised steel copings and contains 4 No. full height panels of curtain walling
and 1 No. recessed full height entrance screen.

The curtain walling/window system has a self-draining thermally broken and pressure equalised
aluminum frame with an external coating of black powder coating with silver grey anolok 541
anodised cappings. The internal coatings being matt white polyester powder coat.

Double glazing within the curtain walling and windows consists of 6mm grey anti-sun outer pane,
12mm cavity and 6mm clear inner pane. Insulated look-a-like panels provided where vision not
required.

Curtain walling panels each have four top hung opening lights. The curtain walling and entrance
canopy are set within recesses and are provided with PVF2 coated galvanised steel brise solier over
the ground floor windows.

The full height entrance screen contains two opening lights, a matching three panel door complete
with polished stainless steel furniture, mortice lock and concealed bolts at head and foot. The
entrance screen also contains PVF2 coated letter plate inset within the glazing units. A stainless
steel, tubular toned feature panel is provided over the main entrance between brick piers left
ready to receive tenant’s signage.

West elevation contains three full height panels of curtain walling. One painted steel Henderson
Defender door set including butt hinges and push bar panic latch, one electrically operated
insulated sectional up and over loading door approximately 5m x 3.85m.

North elevation comprises cavity brickwork as previously described with feature brick walling. East
elevation comprises double block party wall.

EXTERNAL AREAS

	 	 	 	 	 
	South:

	 	-
	 	Car parking in concrete block paving for five cars.
	 

	 	-
	 	Landscaping incorporating shrubs and semi mature trees.
	 

	 	-
	 	Block paving footpaths.
	 
	 	 	 	 
	West:

	 	-
	 	2.4m high x 200mm diameter painted mild steel tubular
bollards with cranked tops to loading door reveals.
	 

	 	-
	 	Two retractable anti ram bollards to loading bay door.
	 

	 	-
	 	Remote landscaping incorporating shrubs and semi mature trees.
	 

	 	-
	 	Car parking in concrete block paving for fifteen cars.

Page 2

 

INTERNAL

WALLS

Internal blockwork walls forming at ground floor level division between office/production areas and
staircase, disabled, male and female toilet accommodation and tea room and at first floor level,
staircase, male and female toilet accommodation and plant area.

Dividing wall between production and office areas is of two skins of 100mm blockwork, remaining
walls generally of 100mm blockwork.

General office areas and staircase are plasterboard drylined with emulsion paint finish. Toilet
accommodation and tea room plasterboard drylined with ceramic tile finish. First floor cleaners’
cupboard and plant room finished fair faced blockwork. All drylined walls provided with varnished
ash skirtings. External windows provided with Durapal laminate faced window boards.

Internal walls contain at ground floor level six and first floor level four flush faced ash
veneered semi solid core doors incorporating glazed vision panels to circulation areas. Fire doors
glazed with Georgian wired polished plated glass.

Ground and first floor staircase entrances incorporate staircase screen in solid ash with Georgian
wired polished plate glass. Doors complete with polished stainless steel door furniture, mortice
latches or locks, kicking plates, door signage and door closers as appropriate all set in solid ash
frames and architraves with clear varnished finish.

Toilet Accommodation

	 	 	 	 	 
	Ground Floor: Male

	 	2 No.
	 	WC suites.
	 

	 	2 No.
	 	Hand basins.
	 

	 	2 No.
	 	Urinals.
	 
	 	 	 	 
	Ground Floor: Female

	 	2 No.
	 	WC suites.
	 

	 	2 No.
	 	Hand basins.
	 
	 	 	 	 
	Tea Room:

	 	1 No.
	 	Stainless steel single bowl,
single drainer sink set in post
formed melamine worktop with
base units under.
	 
	 	 	 	 
	Ground Floor: Disabled Toilet

	 	1 No.
	 	WC suite.
	 

	 	1 No.
	 	Hand basin.
	 

	 	3 No.
	 	Fixed grab rails.
	 

	 	1 No.
	 	Retractable grab rail.
	 
	 	 	 	 
	First Floor: Male Toilet

	 	1 No.
	 	WC suite.
	 

	 	1 No.
	 	Hand basin.
	 

	 	1 No.
	 	Urinal.
	 
	 	 	 	 
	First Floor:

	 	1 No.
	 	WC suite.

Page 3

 

	 	 	 	 	 
	Female Toilet

	 	1 No.
	 	Hand basin.

All sanitary fittings are white vitreous china (commercial standard) and provided with all taps,
plugs, chains and wastes and connected to hot and cold water supplies as necessary and connected to
the below ground foul drainage system. Mirrors provided over hand basins.

FLOORS

Ground floor to production area comprises of a powerfloated reinforced concrete floor to BRE medium
load classification incorporating proprietary anti-dust sealant.

Ground floor office of reinforced concrete floor designed for a uniformly distributed load of 6 KN
per m2 (120lb per sq. ft) with a raised access floor to PSA medium grade providing 150mm
clear void. Raised access floor finished with Esco Pallas Excel or similar carpet tiles.

First floor comprises of precast prestressed concrete planks designed for a superimposed load
excluding self weight of 3.5KN per m2 (70lb per sq. ft.). Office areas complete with
PSA medium grade raised access floor with 150mm clear void. Raised access floor finished with Esco
Pallas Excel or similar carpet tiles.

Toilet areas to ground and first floors finished with Polyflor Finesse vinyl floor covering.

Staircase and associated lobbies finished with carpet tiles to match general office areas and
incorporate non-slip safety nosings.

Matwell and Jaymart grimestopper mat inset provided to the main entrance lobby area.

CEILINGS

Ceiling to production area comprises underside of structural soffit to first floor offices.

Ceiling throughout remainder of offices, staircase and toilet accommodation comprises of 600mm x
600mm ceiling tiles, Rachter Systems Rafa Co-ordinate 9 Plain or similar tiles set in a micro look
exposed grid.

STAIRCASE

Staircase of precast reinforced concrete complete with polished stainless steel handrail. The
stairs are fitted with solid ash strings and skirtings with clear varnish finish to match remainder
of accommodation.

ELECTRICAL INSTALLATION

Lighting is provided as follows:-

	 	 	 	 	 
	Ground Floor Office:

	 	19 No.
	 	Recessed fluorescent luminaires (1200mm x 600mm).

Page 4

 

	 	 	 	 	 
	Ground Floor Toilet

	 	5 No.
	 	Recessed compact fluorescent downlights.
	Accommodation

Kitchenette & Lobby:

	 	 	 	Concealed fluorescent batten luminaires above mirrors and WC’s.
	 

	 	2 No.
	 	Circular recessed fluorescent fittings with prism louvres.
	 
	 	 	 	 
	Production Area:

	 	9 No.
	 	Sodium boxed downlighters.
	 
	 	 	 	 
	Disabled Toilets:

	 	1 No.
	 	Shallow dome, wall mounted fluorescent fitting.
	 
	 	 	 	 
	Staircase &

	 	4 No.
	 	Recessed, compact, fluorescent downlights.
	Associated Lobbies:

	 	3 No.
	 	Wall mounted, feature, fluorescent fittings.
	 

	 	3 No.
	 	Recessed, circular, fluorescent luminaires.
	 
	 	 	 	 
	First Floor Toilet

	 	3 No.
	 	Compact fluorescent downlights
	Accommodation:

	 	2 No.
	 	Concealed fluorescent batten luminaires above WC’s.
	 
	 	 	 	 
	First Floor Office:

	 	22 No.
	 	1200mm x 600mm recessed fluorescent luminaires with V cross blade
low brightness louvres.
	 
	 	 	 	 
	External:

	 	3 No.
	 	Compact fluorescent downlights to canopy over entrance. Tungsten
floodlight over rear loading bay door.

Emergency lighting to office and production areas comprises of self contained emergency lighting unit installed to meet
fire officers requirements for an open plan office and production area.

Small power is provided as follows:-

	 	 	 	 	 
	Ground Floor Office:

	 	3 No.
	 	13A switched socket outlet.
	 
	 	 	 	 
	Ground Floor Toilet Lobby:

	 	1 No.
	 	13A switched socket outlet.
	 
	 	 	 	 
	Kitchenette:

	 	1 No.
	 	13A twin switched socket outlet.
	 
	 	 	 	 
	Production Area:

	 	1 No.
	 	Surface mounted 13A twin switched socket outlet.
	 
	 	 	 	 
	Staircase and
Associated Lobbies:

	 	2 No.
	 	13A switched socket outlets.
	 
	 	 	 	 
	First Floor Office:

	 	3 No.
	 	13A switched socket outlets.
	 
	 	 	 	 
	Plant Room:

	 	1 No.
	 	Surface mounted 13A switched socket outlet.
	 
	 	 	 	 
	Control and protection is provided by:-
	 
	 	 	 	 
	A 200KVA electricity supply is provided complete with all necessary distribution equipment:
	 

	 	1 No.
	 	400A load switch (main incomer)
	 

	 	1 No.
	 	Dorman Smith switchgear load
bank distribution board
provided with two 100A
switches, a 32A switch for
external lighting, two 25A
switches for fire alarm supply
and heating and ventilation
control equipment.

Page 5

 

	 	 	 	 	 
	 

	 	1 No.
	 	Lighting and power distribution board for offices.
	 

	 	1 No.
	 	Distribution board for production area lighting and power.
	 

	 	1 No.
	 	External lighting DB stop and control panel.
	 

	 	1 No.
	 	Lighting contactors panel.

The installation is wired in PVC cable of reputable manufacture and encased in welded steel screwed
conduit and galvanised trunking fully complying with the present day good practise and the
regulation of the Institute of Electrical Engineers.

HEATING

Heating is provided to the offices, toilets, tea room, staircase and circulation areas by a low
pressure hot water system serving pressed metal radiators each complete with thermostatic radiator
controls.

A gas fired low pressure hot water boiler complete with twin wall insulated flue and all necessary
pumps, valves, thermostats and controls being located on the first floor plant area.

GAS INSTALLATION

An incoming metered and valved gas supply is provided serving boiler installation.

HOT WATER

Hot water is provided to all sanitary accommodation via a wall mounted Heatrae Sadia instantaneous
electric water heater. A further Heatrae Sadia ‘Handy’ water heater is provided within the
disabled toilet.

TELECOMMUNICATIONS

Incoming telephone duct is provided within the ground floor office left ready to receive tenant’s
installation.

VENTILATION

Toilet areas are ventilated to provide six air changes per hour.

Thermostatically controlled roof mounted extract fans installed to exhaust air from the first floor
office ceiling void to reduce void temperature build up at times of high solar gain through the
roof.

WATER INSTALLATION

Incoming water main to supply Authority’s meter. From the Authority’s meter the supply is
distributed within the building to serve drinking water points direct and sanitary appliances, from
a storage tank.

Page 6

 

The Seventh Schedule

CHEMICALS TO BE USED BY AZUR

ENVIRONMENTAL AT ITS UK FACILITY

The solvents which will be used by Azur Environmental for the purposes of research and development
will be those used by a typical life sciences laboratory and are most likely to be:

lower alcohols (methanol, ethanol, isopropanol)

toluene, xylene and related compounds

hydrochloric, sulphuric and nitric acids.

The maximum quantities of each held at any one time would not exceed two winchesters (2 x 2.5
litres) and all would be stored in compliance with existing fire and Health and Safety legislation,
eg. solvents would be stored in an approved fireproof cabinet.

A variety of dry chemicals will be held but it is impossible to specify these except that they are
unlikely to differ significantly from those found in a standard life science laboratory. These
will be stored and used in accordance with current Health and Safety legislation.

No hazardous or unusual chemicals will be used in Manufacturing.

All chemicals will be disposed of in accordance with recommended practice.

A safety adviser with many years experience is being appointed to ensure compliance with current
legislation.

 

 

					
	 	 	 	 	 
	DATED
	 	27th September
	 	2001

AZUR ENVIRONMENTAL LIMITED

- and -

MICROSCIENCE LIMITED

 

ASSIGNMENT OF LEASE

545 Eskdale Road Winnersh Triangle

Wokingham Berkshire

 

SHADBOLT & CO

Reigate

 

 

THIS ASSIGNMENT is made the 27th of September 2001

BETWEEN:

	(1)	 	AZUR ENVIRONMENTAL LIMITED (Company Registration No 2538199) whose Registered Office is
at 540/545 Eskdale Road Winnersh Triangle Wokingham Berkshire RG41 5TU (‘The Assignor’);
	 
	(2)	 	MICROSCIENCE LIMITED (Company Registration No 03270465) whose Registered Office is at 545
Eskdale Road Winnersh Triangle Wokingham RG41 5TU (‘The Assignee’)

WHEREAS

	(1)	 	Lease or underlease
	 
	 	 	By a lease particulars of which are set out in the first schedule (‘the Lease’) the property more
particularly described in the Lease the postal address of which is set out in the second schedule
(‘the Property’) was demised to the Assignor for the term of years and at the yearly rent set out
in the first schedule subject to the performance and observance of the covenants on the part of the
Assignor and the conditions contained in the Lease and subject to and with the benefit of the
document particulars of which are set out in the Third Schedule (“the documents”).
	 
	(2)	 	Agreement for sale
	 
	 	 	The Assignor has agreed with the Assignee in consideration of the covenant on the part of the
Assignee contained below for the assignment to the Assignee of the Property for the residue of the
term granted by the Lease subject to and with the benefit of the documents.

NOW THIS DEED WITNESSES as follows:

	1.	 	Assignment
	 
	 	 	In pursuance of the above agreement and in consideration of the covenant on the part of the
Assignee contained below the Assignor with full title guarantee assigns to the Assignee ALL THAT
the Property TO HOLD the Property to the Assignee for the residue now unexpired of the term of
years granted by the Lease SUBJECT henceforth to the payment of the rent reserved by
and the performance and observance of the covenants and agreements on the part of the lessee and
the conditions contained in the Lease and the documents.
	 
	2.	 	Covenant for indemnity
	 
	 	 	The Assignee covenants with the Assignor that it and its successors in title to the Property will
during the continuance of the term granted by the Lease

2

 

	 	 	pay the rent reserved by and perform and observe covenants restrictions conditions stipulations and
other matters contained or referred to in the Lease and the documents and will keep the Assignor
indemnified against all proceedings costs claims and expenses whatsoever on account of any omission
to pay the rent reserved by or any breach of any of the covenants agreements and conditions
contained in the Lease and in the documents.

	3.	 	Covenants for title
	 
	 	 	It is hereby agreed and declared between the Assignor and the Assignee that the covenants implied
by section 4 of the Law of Property (Miscellaneous Provisions) Act 1994 shall be varied so that the
Assignor shall be under no liability for any failure to carry out any works of repair renewal or
decoration to the Property or for any other works required under the lease when ever those works
are due to be carried out.
	 
	4.	 	Matters of Public Record
	 
	 	 	It is further agreed and declared between the Assignor and the Assignee that for the purposes of
section 6(2) Law of Property (Miscellaneous Provisions) Act 1994, all matters now recorded in
registers open to public inspection are to be considered with in the actual knowledge of the
Assignee.
	 
	5.	 	Contracts (Rights of Third Parties) Act 1999
	 
	 	 	It is not intended that any term of this deed shall be enforceable pursuant to the Contracts
(Rights of Third Parties) Act 1999.
	 
	6.	 	Certificate of value
	 
	 	 	It is hereby certified that the transaction hereby effected does not form part of a larger
transaction or of a series of transactions in respect of which the amount or value of the aggregate
amount or value of the consideration exceeds the sum of £60,000.

IN WITNESS of which this assignment has been executed as a deed and has been delivered on the date
first written above

FIRST SCHEDULE

Particulars of the Lease

13 December 1996 : Slough Properties Limited (1) and the Assignor (2)

3

 

SECOND SCHEDULE

Postal address of the Property

545 Eskdale Road Winnersh Wokingham Berkshire

THIRD SCHEDULE

The documents

	 	 	 	 	 
	Date	 	Document	 	Parties
	 
	 	 	 	 
	13 December 1996

	 	Licence for Alterations
	 	Slough Estates Limited (1)
and the Assignor (2)

4

 

	 	 	 	 	 	 	 
	EXECUTED as a deed by

	 	 	)	 	 	 
	AZUR ENVIRONMENTAL LIMITED

	 	 	)	 	 	 
	Acting by two directors or a director

	 	 	)	 	 	 
	and the company secretary

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Director /s/ [Illegible]
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Secretary /s/ [Illegible]
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	For and on behalf of

MAWLAW SECRETARIES LTD
	 
	 	 	 	 	 	 
	EXECUTED as a deed by

	 	 	)	 	 	 
	MICROSCIENCE LIMITED

	 	 	)	 	 	 
	Acting by two directors or a director

	 	 	)	 	 	 
	and the company secretary

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Director [Illegible]
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Director/Secretary /s/ Jonathan RHH Pockson

5exv10w25

 

Exhibit 10.25

AMENDED AND RESTATED

LOAN AGREEMENT

     THIS AMENDED AND RESTATED LOAN AGREEMENT is made as of July 29th, 2005, by
and between BIOPORT CORPORATION, a Michigan corporation, of Lansing, Michigan (“Borrower”), and
FIFTH THIRD BANK, a Michigan banking corporation, of East Lansing, Michigan (“Lender”).

     Borrower and Lender are parties to Loan Agreements dated as of July 30, 2004 and October 8,
2004, under which Bank agreed to extend to Borrower revolving credit loans of up to $10 million in
the aggregate at any time outstanding. This Amended and Restated Loan Agreement amends and
restates the Loan Agreements of June 25, 2003, July 30, 2004 and October 8, 2004, in their
entirety, to read as follows:

     Lender and Borrower agree as follows:

SECTION 1. DEFINITIONS.

     In this Agreement:

     “Affiliate” of a Person means a Person that now or in the future controls, is controlled by,
or is under common control with, the Person.

     “Agreement” means this Amended and Restated Loan Agreement as amended, including the schedules
attached to this Loan Agreement.

     “Capitalized Lease Obligation” means any obligation of Borrower to pay future rentals under a
lease that, in accordance with GAAP, is required to be shown as a liability on Borrower’s balance
sheet.

     “Collateral” means the proceeds of the Government Contracts.

     “Collateral Document” means each security agreement, mortgage, pledge agreement, assignment,
guaranty and every other agreement and document that has been or in the future is, or is required
to be, given by Borrower or any third party to secure any Lender Indebtedness.

     “Contamination” or “Contaminated” means, when used with reference to any real or personal
property, that a Hazardous Substance is present on or in the property in any amount or level that
exceeds any legal limit set forth under Environmental Law. “Contamination or “Contaminated” shall
not include latent, unexposed asbestos in any building located on any of the real property unless
and until exposure that exceeds the foregoing legal limit occurs due to renovation or otherwise.

     A Person “controls” another Person if the Person has, directly or indirectly, the power to
direct or cause the direction of the management or policies of the other Person.

 

 

     “Default” means an event, condition or circumstance that, with the lapse of time or giving of
notice (absent any permitted cure), would be an Event of Default.

     “DOD Contract” means Contract No. W9113M-04-D-0002, dated January 3, 2004, between U.S. Army
Space and Missile Defense Command and Borrower, as it has been and in the future is amended.

     “Eligible Account” means, as of the relevant date of determination, an account receivable of
Borrower arising in the ordinary course of business:

     (a) that is not more than 90 days old from the earlier of the original invoice date or
the date of shipment of the goods or performance of the services that gave rise to the
account receivable;

     (b) that arises from Borrower’s sale and shipment of goods or Borrower’s performance of
services, in the ordinary course of Borrower’s business;

     (c) that is the valid, binding and enforceable obligation of the account debtor and is
not subject to any offset, counterclaim or defense;

     (d) that is evidenced by an invoice that is dated not later than the 15th
day post the date of shipment of the goods or performance of the services and payable in
full no more than 90 days after the invoice date and that is not evidenced by an instrument
or chattel paper;

     (e) that is owned by Borrower and is not subject to any security interest, lien,
encumbrance, assignment or trust, except in favor of Lender;

     (f) in which Lender holds a valid and perfected security interest;

     (g) that is owing by the federal government under a Government Contract;

     (h) that does not arise from a sale of goods on consignment or on a sale-or-return
basis;

     (i) that is owing by an account debtor to whom Borrower does not have any maintenance
obligation with respect to the goods or services the sale of which gave rise to the account
receivable;

     (j) that is not subject to retainage; and

     (k) as to which Lender has not notified Borrower is, in Lender’s good faith judgment,
uncollectible, in whole or in part, within 60 days.

- 2 -

 

     “Environmental Law” means at any time any applicable federal, state, local or foreign law
(including common law), ordinance, rule, regulation, permit, order or other requirement that then
(1) regulates the quality of air, water, soil or other environmental media, (2) regulates the
generation, management, transportation, treatment, storage, recycling or disposal of any waste, (3)
protects public health, occupational safety and health, natural resources or the environment or (4)
establishes liability for the investigation, removal or remediation of, or harm caused by,
Contamination.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as now and in the future
amended, together with all regulations issued under it.

     “Event of Default” has the meaning specified in Section 9 of this Agreement.

     “FDA” means the U.S. Food and Drug Administration.

     “GAAP” means generally accepted accounting principles as consistently applied by Borrower.

     “Government Contracts” means the HHS Contract and the DOD Contract.

     “Guarantor” means each Person who has guaranteed or in the future guarantees payment of all or
part of the Lender Indebtedness.

     “Hazardous Substance” means at any time any substance or waste that is then regulated by or
subject to any Environmental Law.

     “HHS Contract” means Contract No, 200-2005-11811, dated May 5, 2005, between Department of
Health and Human Services (‘HHS’) and Borrower, which provides for Borrower to sell to HHS, and for
HHS to purchase from Borrower, anthrax vaccine, as that Contract is amended in the future.

     “Indebtedness” means indebtedness for borrowed money, indebtedness representing the deferred
purchase price of property (excluding indebtedness under normal trade credit for property or
services purchased in the normal course of operations), any obligation under a note payable or
draft accepted representing an extension of credit, indebtedness (whether or not assumed) secured
by a mortgage, security interest or other lien on property, and any Capitalized Lease Obligation.
By way of clarification, for the avoidance of doubt, and without limiting the foregoing,
“Indebtedness” shall not include deferred revenue, deferred tax liabilities or any indebtedness for
borrowed money or representing the deferred purchase price of property, whether or not secured,
that is Subordinated Indebtedness.

     “Intangible Collateral” means the Collateral described in Sections 5.1 and 5.2 of this
Agreement.

- 3 -

 

     “Intellectual Property” means all patents, trademarks, service marks, trade names, copyrights,
licenses and similar rights.

     “Leader Indebtedness” means any indebtedness, obligation or liability, of whatever type or
nature, that Borrower now or in the future owes to Lender under this Agreement.

     “Loan” means any loan that Lender makes to Borrower under this Agreement.

     “Loan Document” means this Agreement, the Revolving Credit Note and every other promissory
note that Borrower has given or in the future gives to Lender under this Agreement, each renewal,
extension and replacement of the Revolving Credit Note, each Collateral Document and every other
agreement, instrument and document that has been or in the future is signed or delivered in
connection with this Agreement or in connection with any Lender indebtedness.

     “Material Adverse Effect” means any material adverse effect upon (1) the validity, performance
or enforceability of any Loan Document, (2) the Borrower’s properties taken as a whole, (3) a
Government Contract or any other material contract, (4) business operations, profits or financial
condition of Borrower, (5) the ability of Borrower or any Guarantor to fulfill any material
obligation under any Loan Document or (6) the ability of Lender to take possession of, collect or
otherwise realize upon any Collateral or other security for the Lender Indebtedness.

     “Maturity” of an indebtedness or obligation means the time when that indebtedness or
obligation has become due and payable, for whatever reason.

     “Non Disclosure Agreement” means that Nondisclosure Agreement, dated November 18, 2002,
between Borrower and Lender.

     “Note” means the Revolving Credit Note and any other promissory note that Borrower has signed
or in the future signs and that now or in the future evidences any Lender Indebtedness, including
any renewals, extensions or modifications.

     “Permitted Lien” means (1) a security interest, mortgage or other lien in favor of Lender, (2)
a lien for taxes that are not delinquent or, in a jurisdiction where payment of taxes is abated
during the period of any contest, being contested in good faith by appropriate proceedings, if
adequate reserves for it have been set aside on Borrower’s books, in accordance with GAAP, (3) a
lien or encumbrance that is described on Borrower’s balance sheet dated December 31, 2004, that
Borrower has delivered to Lender and (4) an inchoate materialmen’s, mechanics’, workmen’s,
repairmen’s or other like lien arising in the ordinary course of business, if the obligation
secured is not delinquent or is being contested in good faith by appropriate proceedings, if
adequate reserves for it have been set aside upon Borrower books in accordance with GAAP and if the
lien does not jeopardize any Collateral and does not have a Material Adverse Effect.

- 4 -

 

     “Person” means an individual and a corporation, partnership, limited liability company, trust,
association and any other entity.

     “Plan” means an “employee pension benefit plan” with respect to which Borrower or any
Affiliate is an “employer” or “party in interest,” as ERISA defines those terms.

     “Revolving Credit Commitment” means the lesser of 75% of Borrower’s Eligible Accounts or
$10,000,000.

     “Revolving Credit Loans” has the meaning specified in Section 3.1 of this Agreement.

     “Revolving Credit Note” has the meaning specified in Section 3.3 of this Agreement.

     “Schedule” means a schedule attached to this Agreement.

     “Subordinated Indebtedness” means, at any time, all Indebtedness that Borrower owes to any
Person or Persons to the extent that its repayment is subordinated to payment of the Lender
Indebtedness in form and manner satisfactory to Lender.

     “Subsidiary” means a corporation or a limited liability company all of the capital stock,
membership interests and other equity interests of and in which are owned by Borrower.

     “Term Loan” has the meaning specified in Section 4 of this Agreement.

     “Term Loan Note” has the meaning specified in Section 4 of this Agreement.

SECTION 2. WARRANTIES AND REPRESENTATIONS.

     Borrower represents and warrants to Lender, and agrees, as follows:

     2.1 Borrower is a corporation that is duly organized, validly existing and in good standing
under the laws of the state of Michigan. Borrower is duly qualified and authorized to do business,
and is in good standing as a foreign corporation, in each jurisdiction in which the failure to be
so qualified or authorized to do business would have a Material Adverse Effect.

     2.2 Borrower has all requisite corporate power and authority and all necessary licenses and
permits to own and operate its properties and to carry on its business as it now conducts it and as
it contemplates that it will conduct it in the future. Borrower is in compliance with all laws,
rules and regulations that apply to Borrower, its operations or its properties, except where any
noncompliance could not have a Material Adverse Effect.

     2.3 The audited balance sheets of Borrower as of December 31, 2001 and December 31, 2002, and
December 31, 2003, and the unaudited balance sheets of Borrower as of December 31, 2004 and March
31, 2005, and the related statements, if applicable, of income, of retained earnings and of changes
in financial position for the periods then ended, copies of all of which

- 5 -

 

have been delivered to Lender, have been prepared in accordance with GAAP and present fairly the
financial position of Borrower as of those dates and the results of its operations for those
periods. Since the date of the most recent of those financial statements, there has not been any
change in Borrower’s financial condition or operations that has not been disclosed to Lender in
writing and could have a Material Adverse Effect.

     2.4 Neither this Agreement nor any financial statement that Section 2.3 above refers to nor
any other written statement that Borrower has furnished to Lender in connection with the
negotiation of any Loan, contains any untrue statement of a material fact or omits a material fact
necessary to make the statements contained in this Agreement, the financial statement or other
written statement not misleading.

     2.5 Except as previously disclosed to Lender in writing, there is not any proceeding pending
or, to the knowledge of the officers and directors of Borrower, threatened, before any court,
governmental authority or arbitration board or tribunal, against Borrower, that, if determined
adversely to Borrower, could reasonably be expected to have a Material Adverse Effect. Borrower is
not in default with respect to any order, judgment or decree of any court, governmental authority
or arbitration board or tribunal.

     2.6 All of the issued and outstanding shares of capital stock of Borrower are owned by
Emergent BioSolutions Inc., a Delaware corporation. There are not any outstanding options,
warrants or rights to purchase, and there is not any agreement for the subscription, purchase or
acquisition of, any such shares of Borrower’s capital stock.

     2.7 Borrower has good and marketable title to all of the intangible assets that it purports
to own, including the intangible assets reflected in the financial statements referred to in
Section 2.3 of this Agreement, free and clear of all liens, encumbrances, security interests,
claims, charges and restrictions, except Permitted Liens.

     2.8   (a) Borrower owns, jointly owns, or has been licensed the right to use pursuant to
licenses that remain in full force and effect, Intellectual Property sufficient to operate its
business as it is presently being conducted.

          (b) Except as previously disclosed to Lender in writing, there is no action, suit or
proceeding pending against or, to the knowledge of Borrower, threatened against Borrower (1)
challenging the rights of Borrower in any Intellectual Property owned or used by Borrower or (2)
alleging that products manufactured, used, imported or sold by Borrower conflict with,
misappropriate, infringe or violate the Intellectual Property rights of any third party, except in
each case for actions, suits or proceedings the outcome of which individually or in the aggregate
would not have a Material Adverse Effect.

     2.9 Borrower has full power and authority to sign, deliver and perform the Loan Documents. The
signing, delivery and performance of the Loan Documents: (1) have been duly authorized by
appropriate corporate action of Borrower, (2) will not violate the provisions of Borrower’s
articles of incorporation or bylaws or of any law, rule, judgment, order, agreement or

- 6 -

 

instrument to which Borrower is a party or by which it is bound and (3) do not require any approval
or consent of any public authority or other third party, except for (a) consents and approvals that
have been obtained prior to the date of this Agreement; or (b) approvals or consents the failure of
which to obtain, individually or in the aggregate, do not have a Material Adverse Effect and do not
materially impair the ability of Borrower to perform its obligations under the Loan Documents.
Borrower has properly signed and delivered the Loan Documents, and the Loan Documents are the valid
and binding obligations of Borrower and are enforceable against Borrower in accordance with their
terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of
debtors and the rules of law governing specific performance, injunctive relief and other equitable
remedies.

     2.10 Borrower has filed each tax return that it is required (after taking account of any
properly-filed and valid and effective extensions) to file in any jurisdiction, and Borrower has
paid each tax, assessment, fee and other governmental charge upon it or upon its assets, income or
franchises before the time when its nonpayment could give rise to a lien that could have a Material
Adverse Effect. Borrower does not know of any proposed additional tax assessment against it.

     2.11 Borrower does not have any investments in the securities of any Person. Borrower does
not intend to carry or purchase any “margin security” within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System, 12 C.F.R. Chapter II.

     2.12 Attached to this Agreement as Schedule 2.12 is a list of all Plans. No Plan has been
terminated since the effective date of ERISA. No Plan is a “multi-employer plan” within the meaning
of Section 3(37)(A) of ERISA. An “accumulated deficiency” (within the meaning of Section 412 of the
Internal Revenue Code, as amended) or a “reportable event” (as defined in Title IV of ERISA) has
not occurred with respect to any Plan. Neither Borrower nor any Affiliate has incurred any material
liability to the Pension Benefit Guaranty Corporation (“PBGC”) or otherwise under ERISA. The PBGC
has not started or, to the knowledge of Borrower, threatened to start a proceeding against Borrower
or any Affiliate under ERISA.

     2.13 Borrower is not, and no person, firm or corporation that has “control” of Borrower is, an
“executive officer,” “director” or “person who directly or indirectly, or in concert with one or
more persons owns, controls or has the power to vote more than 10 percent of any class of voting
securities” (within the meaning of 12 U.S.C. Section 375(b) and regulations issued under that
section), of Lender, Fifth Third Bancorp or any subsidiary of Fifth Third Bancorp.

     2.14 With such exceptions as do not have, individually or in the aggregate, a Material Adverse
Effect:

          (a) No written notice, demand, citation, or order has been received, no penalty has been
assessed, and no action, suit or proceeding is pending or, to the knowledge of the Borrower, is
threatened by any governmental agency pursuant to or arising out of any Environmental Laws; and

- 7 -

 

          (b) There are no liabilities of the Borrower not recorded on the Borrower’s financial
statements in accordance with GAAP arising as a result of Borrower’s real or personal property (a)
being Contaminated; (b) being the source of any Contamination of any adjacent property or any
groundwater or surface water; or (c) being the source of any air emissions in excess of any legal
limit or standard under Environmental Laws.

     2.15 Borrower has furnished to Lender a complete and correct copy of each Government Contract,
including all amendments.

     2.16 Schedule 2.16 lists each Affiliate and describes Borrower’s relationship to it, including
ownership of capital stock.

SECTION 3. REVOLVING LINE OF CREDIT.

     3.1 Subject to satisfaction of the conditions precedent set forth in Section 10 of this
Agreement and as long as there shall not have occurred any Default or Event of Default, that in
each case has not been cured or waived, Lender shall extend to Borrower from time to time loans in
amounts (“Revolving Credit Loans”) that shall not at any time in the aggregate exceed the Revolving
Credit Commitment.

     3.2 If the aggregate principal amount of the Revolving Credit Loans outstanding at any time
exceeds the Revolving Credit Commitment, then Borrower shall immediately repay the amount of the
Revolving Credit Loans that is required to eliminate the excess.

     3.3 All Revolving Credit Loans shall be evidenced by and payable with interest in accordance
with the terms of a promissory note in the form attached to this Agreement as Schedule 3.3
(“Revolving Credit Loan Note”), which Borrower shall sign and deliver to Lender.

     3.4 Each Revolving Credit Loan shall be in the amount $1,000 or a whole multiple of that
amount and shall be made upon Borrower’s request.

     3.5 Borrower shall have the right to prepay all Revolving Credit Loans, in whole or in part,
at any time without penalty or any other premium or charge. Borrower may reborrow amounts that it
prepays, subject to the other provisions of this Agreement.

     3.6 Unless it is sooner terminated or Lender extends it in writing, Lender’s obligation to
make or to renew Revolving Credit Loans shall expire on May 1, 2006. If Lender extends it, then
Lender’s obligation to make or renew Revolving Credit Loans shall expire on the date stated in the
extension. If Lender’s obligation to make or renew Revolving Credit Loans expires, then the
aggregate unpaid principal balance of all outstanding Revolving Credit Loans, together with all
accrued interest on them, shall be due and payable in full on the expiration date.

- 8 -

 

SECTION 4. TERM LOAN

     4.1 On August 10, 2004, Lender made a term loan to Borrower in the principal amount of
$2,400,000 (“Term Loan”).

     4.2 The Term Loan is evidenced by and payable in accordance with a Term Note dated August 10,
2004, payable to Lender, that Borrower executed and delivered to Lender (“Term Loan Note”).

     4.3 Nothing in this Agreement amends or modifies the Term Loan or the Term Loan Note.

SECTION 5. SECURITY.

     5.1 Simultaneously with the signing and delivery of this Agreement, Borrower is signing and
delivering to Lender an Amended and Restated Security Agreement granting to Lender a valid first
security interest in the Collateral, and in all proceeds to secure payment and performance of all
Lender Indebtedness.

     5.2 Simultaneously with the signing and delivery of this Agreement, Borrower is assigning to
Lender, as security, all payments that are now or in the future owing to Borrower under each
Government Contract, to secure payment and performance of all Lender Indebtedness.

     5.3 Borrower has signed and delivered to Lender two mortgages, dated July 30, 2004, that grant
to Lender valid first liens on the real property located in Ingham County, Michigan and Clinton
County, Michigan, described in them, to secure the Lender Indebtedness described in them. If at any
time after July 31, 2005, Borrower gives to Lender a written request that Lender discharge either
or both of the mortgages and if at that time (a) neither a Default nor an Event of Default shall
have occurred and be continuing, (b) Borrower is not indebted to Lender, other than in respect of
the Term Loan or one or more Revolving Credit Loans and (c) Lender is not obligated to extend any
loan or other credit facility to Borrower, then Lender shall, within 30 days after it receives the
request, comply with the request.

     5.4 Borrower shall sign and deliver to Lender all financing statements, assignments, documents
of title and other documents, agreements and instruments in connection with the perfection or
priority of the security provided for above, and shall take all further actions that Lender
reasonably requests in connection with the perfection or priority of the security provided for
above.

SECTION 6. AFFIRMATIVE COVENANTS.

     From the date of this Agreement and until all Lender Indebtedness is fully paid and Lender
does not have any obligation to extend loans or other credit facilities to Borrower hereunder,
Borrower shall:

- 9 -

 

     6.1 Furnish to Lender, within 120 days after the end of each of Borrower’s fiscal years,
beginning with its fiscal year ending December 31, 2005, an audited financial report prepared in
accordance with GAAP by independent certified public accountants that are satisfactory to Lender
(it being understood that Borrower’s current auditors are satisfactory to Lender), containing (1)
Borrower’s balance sheet as of the end of that year, its related statements of operations for that
year and its statement of cash flows for that year, (2) any management letters that those certified
public accountants prepare in conjunction with such audits, (3) all notes and other financial
schedules that are customarily included in the audited financial statements and (4) the unqualified
opinion of the certified public accountants stating that the financial statements for the fiscal
year present fairly the financial position, results of operations and cash flows in conformity with
GAAP.

     6.2 Furnish to Lender within 20 days after the end of each month, beginning with the month of
May, 2005, an unaudited financial report, the accuracy of which is certified to by the President or
chief financial officer of Borrower, prepared in accordance with GAAP, containing Borrower’s
balance sheet as of the end of the period and its income statement showing the results of its
operations for the portion of its fiscal year then elapsed.

     6.3 Furnish to Lender within 20 days after the end of each month, beginning with the month of
May, 2005, a detailed aging of all of Borrower’s accounts receivable that are in excess of
$100,000, in form reasonably satisfactory to Lender.

     6.4 (1) Promptly inform Lender of any occurrence that is a Default or an Event of Default and
of any other occurrence that has had, could reasonably be expected to have, a Material Adverse
Effect; (2) grant to Lender or its representatives the right to examine its books and records
during normal business hours no more frequently than once per calendar quarter; (3) maintain
complete and accurate books and records of its transactions in accordance with Borrower’s current
accounting practices; and (4) furnish to Lender any information that it reasonably requests
concerning Borrower’s financial condition and results of operations within 45 days after Lender
makes the request.

     6.5 (1) Maintain insurance, including, but not limited to, fire and extended coverage
insurance, workers’ compensation insurance and commercial and general liability insurance with
responsible insurance companies on its properties and against the risks and in the amounts and in a
manner consistent with Borrower’s current practice; (2) furnish to Lender upon its request the
details with respect to that insurance and satisfactory evidence of that insurance coverage. Each
insurance policy that this Section requires shall be written or endorsed in a manner that makes
losses, if any, payable to Borrower and Lender as their respective interests appear and shall
include, where appropriate, a mortgage clause or lender’s loss payable endorsement in favor of
Lender in form and substance reasonably satisfactory to Lender.

     6.6 Pay and discharge, as often as they are due and payable, all taxes and assessments of
whatever nature that are levied or assessed against it or any of its properties, unless and to the
extent only that (1) in a jurisdiction where payment of taxes and assessments is abated during the

- 10 -

 

period of any contest, those taxes or assessments are being contested in good faith by appropriate
proceedings and (2) Borrower shall have set aside on its books adequate reserves with respect to
those taxes and assessments.

     6.7 Maintain its existence as a corporation in good standing in the State of Michigan and its
qualification in good standing in every other jurisdiction in which the failure to be qualified or
authorized to do business could have a Material Adverse Effect; continue to conduct and operate its
business substantially as it presently conducts and operates it subject to Borrower’s right,
subject to Section 7.5, upon prior written notice to Lender, to expand its business, make
acquisitions, enter joint ventures and similar arrangements and enter into new, but related,
business lines; and comply with all governmental laws, rules, regulations and orders that apply to
it, the failure to comply with which could have a Material Adverse Effect.

     6.8 Keep in good working order and condition, ordinary wear and tear excepted, all of its
material assets and properties that are necessary to the conduct of its business, in a manner
consistent with industry practice, other than machinery and equipment that Borrower disposes of as
permitted by Section 7.2.

     6.9 Maintain its principal commercial deposit accounts with Lender.

     6.10 (1) Comply in all material respects with the applicable requirements of ERISA and the
Internal Revenue Code with respect to each Plan, including, without limitation, all provisions
regarding minimum funding requirements and requirements as to plan termination insurance; (2)
within 30 days after it is filed, furnish to Lender a copy of each annual report and annual return,
with all schedules and attachments, that ERISA requires Borrower to file with the Department of
Labor or the Internal Revenue Service pursuant to ERISA in connection with each Plan for each Plan
year; (3) notify Lender immediately of any fact or circumstance, including, but not limited to, any
“reportable event” (as defined in Title IV of ERISA), that might be grounds for termination of a
Plan by the Pension Benefit Guaranty Corporation or for the appointment by the appropriate United
States District Court of a trustee to administer the Plan, together with a statement, if Lender
requests it, as to the reason the fact or circumstance has occurred and the action, if any, that
Borrower proposes to take to avoid termination of the Plan; and furnish to Lender, upon its
request, any additional information concerning any Plan that Lender reasonably requests.

     6.11 Notify Lender in writing within 10 days after Borrower receives any notice of the
beginning of (1) any proceeding or investigation by a federal or state environmental agency against
Borrower regarding Borrower’s compliance with Environmental Laws or (2) any other judicial or
administrative proceeding or litigation by or against Borrower in each case that would result in a
Material Adverse Effect.

SECTION 7. NEGATIVE COVENANTS.

     From the date of this Agreement and until all Lender Indebtedness is fully paid and Lender
does not have any obligation to extend loans or other credit facilities to Borrower, Borrower shall
not, without the prior written consent of Lender:

- 11 -

 

     7.1 Create or permit to exist any lien, security interest, mortgage, pledge, attachment,
garnishment, execution or other legal process or encumbrance on any Collateral, other than liens
created under the Loan Documents and Permitted Liens.

     7.2 Sell, lease or otherwise dispose of any of its assets with a value in excess of $250,000,
except for (1) the sale of inventory in the ordinary course of business (as Borrower conducts its
business on the date of this Agreement) and (2) the disposition, in the ordinary course of
business, of machinery and equipment that has become obsolete, damaged, unsuitable or unnecessary
for its business.

     7.3 Make loans or advances to any Person, except for (1) loans and advances to Affiliates or
Subsidiaries and (2) loans and advances to Persons that are not Affiliates or Subsidiaries as long
as the aggregate loans and advances outstanding to all Persons that are not Affiliates or
Subsidiaries does not at any time exceed $250,000.

     7.4 Guarantee, endorse, assume or otherwise incur or suffer to exist any contingent liability
in respect of any obligation of any other Person, other than an Affiliate or Subsidiary, except by
the endorsement of negotiable instruments for deposit or collection in the ordinary course of
business and except for guarantees under which the maximum possible liability of Borrower does not
at any time exceed $500,000 in the aggregate.

     7.5 Enter into any merger, consolidation, reorganization or recapitalization, or purchase or
otherwise acquire all, or substantially all, of the assets, obligations or capital stock of or any
other interest in any Person if either (1) a Default or an Event of Default shall have occurred and
is then continuing or (2) the merger, consolidation, reorganization, recapitalization, purchase or
acquisition would result in or cause a Default or an Event of Default.

     7.6 Subordinate any indebtedness that any Person other than an Affiliate or Subsidiary owes to
Borrower to Indebtedness that that Person owes to any other Person.

     7.7 Engage in any transaction with any Affiliate on terms that are less favorable to Borrower
than Borrower could obtain at the time in a comparable transaction in an arm’s-length dealing with
a Person other than an Affiliate; except that this Section 7.7 shall not prevent Borrower from
continuing any transaction with an Affiliate in existence on October 8, 2004.

     7.8 Issue, incur, assume or permit to remain outstanding any Indebtedness that is not
Subordinated Indebtedness, other than (1) Lender Indebtedness, (2) Indebtedness the proceeds of
which are used to pay the purchase price of real property acquired by Borrower, and (3) other
Indebtedness that does not exceed $500,000 in the aggregate at any time outstanding.

     7.9 Become a contributing employer with respect to a multi-employer employee benefit plan
within the meaning of Section 3(37)(A) of ERISA (29 U.S.C. 1002), as amended by Section 302 of the
Multi-Employer Pension Plan Amendments Act of 1980 (other than any Plans described on Schedule 2.12
as being multi-employer plans); or establish for any of its employees

- 12 -

 

any employee benefit plan that has, or may in the future incur, any unfunded past service
liability.

     7.10 Change its name, fiscal year or method of accounting, except as GAAP requires, and except
that Borrower may change its name if Borrower gives Lender 60 days’ prior written notice of the
name change and takes any action that Lender reasonably considers necessary to continue the
perfection of the security interests and liens that the Collateral Documents grant to Lender.

     7.11 Enter into any amendment to or modification of, or terminate all or any part of, any
Government Contract that in any way materially adversely affects the payments due to the Borrower
under such Government Contracts without Lender’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed.

SECTION 8. APPLICATION OF PROCEEDS.

     Borrower shall apply the proceeds of the Revolving Credit Loans for any proper business
purpose, including without limitation for working capital.

SECTION 9. EVENTS OF DEFAULT AND REMEDIES.

     9.1 Each of the following is an “Event of Default” under this Agreement not cured within 30
days (unless some other cure period is provided below) from written notice of default:

          A. If Borrower defaults in the payment of the principal or interest of any Lender
Indebtedness, when and as it is due and payable, whether by acceleration or otherwise and
does not cure the default within ten (10) business days after Lender gives Borrower notice
of the default.

          B. If Borrower fails to perform any of its other obligations under, or to comply with
any of the terms, conditions and covenants that are contained in, this Agreement or any
other Loan Document or other agreement, document or instrument that Borrower or any third
party has given or in the future gives to Lender to secure any Lender Indebtedness, if, in
the case of a failure that can be cured, Borrower does not cure the failure within thirty
(30) days after Lender gives Borrower notice of it.

          C. If Borrower defaults in the payment of any other Indebtedness and does not cure the
default within thirty (30) days after Lender gives Borrower notice of the default, if the
default results in a right of the holder of the Indebtedness to accelerate the maturity of
such Indebtedness in an amount in excess of $500,000.

          D. If any warranty or representation that Borrower makes in this Agreement or any
statement, warranty or representation that Borrower or any third party has made or in the
future makes in any other Loan Document, certificate, report or other document, instrument
or agreement that is delivered under this Agreement or in

- 13 -

 

connection with any Lender Indebtedness is false or inaccurate in any material respect when
made.

          E. If any guaranty that now or in the future secures payment of all or any part of the
Lender Indebtedness is, other than by its terms, terminated or limited for any reason
without the written consent of Lender.

          F. If Borrower fails to perform any of its obligations under any Government Contract
within any cure period so provided or if a Government Contract is terminated for any reason
other than by expiration in accordance with its terms.

          G. If, as a result of any order, judgment or other action of the FDA, a court or any
other governmental agency or entity, Borrower is required to stop selling all or any of the
anthrax vaccine that it has agreed to sell under a Government Contract.

          H. If Borrower (1) applies for or consents to the appointment of, or the taking of
possession by, a receiver, custodian, trustee or liquidator of itself or of all or a
substantial part of its property, (2) is generally unable to pay its debts as they become
due, (3) makes a general assignment for the benefit of its creditors, (4) starts a
voluntary case under the federal Bankruptcy Code (as now or in the future in effect), (5)
files a petition that seeks to take advantage of any other law that provides for the relief
of debtors, (6) fails to controvert in a timely or appropriate manner, or acquiesces in
writing to, any petition that is filed against Borrower in any involuntary case under the
Bankruptcy Code or (7) takes any action for the purpose of effecting any of the foregoing.

          I. If a proceeding or case is started in any court of competent jurisdiction and is
not dismissed within 60 days, seeking (1) the liquidation, reorganization, dissolution,
winding up or composition or readjustment of Borrower or its assets or the appointment of a
trustee, receiver, custodian, liquidator or the like of Borrower or of all or any
substantial part of the assets of Borrower or (2) similar relief in respect of Borrower
under any law that provides for the relief of debtors; or if an order for relief against
Borrower is entered in an involuntary case under the Bankruptcy Code.

     9.2 If an Event of Default that is described in subsections 9.1A through 9.1G above occurs,
then, at the option of Lender, Lender’s obligation to make or renew Revolving Credit Loans shall
terminate, and all or any part of the unpaid principal balance of and accrued interest on all
Lender Indebtedness shall become immediately due and payable, without presentment, demand or notice
of any kind, all of which Borrower waives.

     9.3 If an Event of Default that is described in subsection 9.1H or 9.11 above occurs, then
Lender’s obligation to make or renew Revolving Credit Loans shall immediately terminate, and the
entire unpaid principal balance of and accrued interest on all outstanding Lender Indebtedness
shall automatically become due and payable without presentment, demand or notice of any kind, all
of which Borrower waives.

- 14 -

 

SECTION 10. CONDITIONS PRECEDENT.

          The obligation of Lender to make the initial Revolving Credit Loan is subject to the following
conditions precedent:

     10.1 Lender shall have received copies of resolutions of the Board of Directors of Borrower,
certified by the Secretary of Borrower as being in full force and effect on the date of making the
loans, authorizing Borrower’s signing, delivery and performance of this Agreement and all other
Loan Documents.

     10.2 Lender shall have received a copy of Borrower’s bylaws, including all amendments to them,
certified by the Secretary of Borrower as being in full force and effect on the date of making the
Loans.

     10.3 Lender shall have received copies of the articles of incorporation of Borrower, including
all amendments to them, certified by the Michigan Department of Labor and Economic Growth not more
than 30 days before the initial extension of loans under this Agreement.

     10.4 Lender shall have received a good standing certificate with respect to Borrower from the
Michigan Department of Labor and Economic Growth dated not more than 30 days before the initial
extension of loans under this Agreement.

     10.5 Borrower shall have signed and delivered to Lender all Loan Documents.

     10.6 Borrower shall have delivered to Lender evidence satisfactory to Lender that Borrower has
obtained the insurance policies that this Agreement and any Collateral Documents require.

     10.7 There shall not have occurred and be continuing any Default or Event of Default.

     10.8 Borrower shall have paid to Lender a processing fee in the amount of $425 as required by
Section 11.2.

SECTION 11. MISCELLANEOUS.

     11.1 Borrower shall pay, or reimburse Lender for, all out-of-pocket expenses that Lender
incurs (including, but not limited to, recording and filing fees and taxes, search fees, title
insurance premiums and actual fees and expenses of legal counsel, other professional advisers,
consultants and experts) in connection with (1) the negotiation, preparation and signing of the
Loan Documents, any amendments to, or waivers of any provisions of, the Loan Documents and any
refinancing or restructuring of any Lender Indebtedness, (2) the administration of this Agreement
and the other Loan Documents, including, without limitation, making filings and recordings in
public offices to perfect or give notice of liens in favor of Lender, obtaining policies of title
insurance, title searches, financing statement searches, tax lien searches,

- 15 -

 

appraisals and environmental inspections, audits and assessments, (3) obtaining advice of counsel
or other professional advisers, consultants and experts regarding any aspect of the Loan Documents
or any Lender Indebtedness, (4) the enforcement of any of the provisions of the Loan Documents, (5)
the collection of any Lender Indebtedness and (6) the foreclosure of any security interests,
mortgages, or other liens that at any time secure any Lender Indebtedness.

     11.2 Upon signing of this Agreement, Borrower shall pay to Lender a nonrefundable processing
fee in the amount of $425.

     11.3 Borrower acknowledges that Lender has and shall have the right to set off any
indebtedness that Lender from time to time owes to Borrower, including, without limitation, any
indebtedness that is represented by any deposit account that Borrower maintains with Lender,
against any indebtedness that is at any time due and payable by Borrower to Lender.

     11.4 Each right and remedy that this Agreement or any other Loan Document grants to Lender or
that the law allows to Lender shall be cumulative, and Lender may exercise it from time to time.
Lender’s failure to exercise, and Lender’s delay in exercising, any right or remedy shall not be a
waiver of that right or remedy or a waiver of any other right or remedy. This Agreement may not be
amended and a provision of it may not be waived except by a writing that Lender signs.

     11.5 The relationship between Borrower and Lender under this Agreement and the other Loan
Documents is solely that of debtor and creditor. Lender does not have any fiduciary
responsibilities to Borrower. Lender does not and shall not have any responsibility to review, or
to inform Borrower of any matter in connection with, any aspect of Borrower’s business, operations
or properties. Borrower shall rely entirely upon its own judgment with respect to its business and
properties. Any review, appraisal, audit, survey, inspection, report or other information that
Lender obtains, whether or not Borrower pays for it or Lender furnishes it to Borrower (“Lender
Information”), is solely for the benefit of Lender. Neither Borrower nor any third party is
entitled to rely on any Lender Information. Lender does not have any duty to Borrower with respect
to any Lender Information, including, without limitation, any duty to assure that any review,
audit, survey, inspection or appraisal is performed properly or any duty to disclose to Borrower
any facts, information, opinions, conclusions or statements that any review, audit, survey,
inspection, appraisal or other Lender Information contain.

     11.6 Any and all information provided to Lender by Borrower or any of its Affiliates shall be
subject to the non-disclosure and other obligations of Lender under the terms of the Nondisclosure
Agreement. Borrower authorizes Lender to furnish to any Affiliate of Lender and to any prospective
transferee of, or participant in, any Loan or Loans any or all information about Borrower,
including, without limitation, financial statements and information regarding the operations,
assets and properties, finances, strategies, plans, activities, transactions, owners, directors,
officers, employees and customers of Borrower and its Affiliates, if, in each case, the Affiliate
or any other prospective transferee or participant acknowledges in writing that it shall be subject
to the Nondisclosure Agreement as though an original party named in it and such obligations shall
be enforceable by Borrower directly against such Person.

- 16 -

 

     11.7 This Agreement and the rights and obligations of the parties under it shall be governed
by and interpreted in accordance with the internal laws of the State of Michigan.

     11.8 Any notice or other communication that this Agreement requires or permits shall be in
writing and shall be served either personally or by certified United States mail with postage fully
prepaid, or by a nationally-recognized, overnight courier service, addressed to Borrower as:

BIOPORT CORPORATION

3500 North Martin Luther King, Jr. Blvd.

Lansing, Michigan 48906

Attention: Robert Kramer, President

With a copy to: Jose Ochoa, General Counsel

and to Lender as:

FIFTH THIRD BANK

2501 Coolidge Road

East Lansing, Michigan 48813

Attention: Michael Debri

or to any other place that either party designates by written notice to the other party.

     11.9 This Agreement shall be binding upon and shall inure to the benefit of Borrower and
Lender and their respective successors and assigns. No Person is a third party beneficiary of this
Agreement.

     11.10 This Agreement amends and restates in its entirety the Loan Agreements between the
parties dated July 25, 2003, July 30, 2004 and October 8, 2004.

[The remainder of this page is intentionally left blank.]

- 17 -

 

     LENDER AND BORROWER EACH IRREVOCABLY AND UNCONDITIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY
IN ANY ACTION, INCLUDING ANY CLAIM, COUNTERCLAIM, CROSS-CLAIM OR THIRD-PARTY CLAIM (“CLAIM”) THAT
IS BASED UPON, ARISES OUT OF OR RELATES TO THIS LOAN AGREEMENT OR THE LENDER INDEBTEDNESS,
INCLUDING, WITHOUT LIMITATION, AND CLAIM THAT IS BASED UPON, ARISES OUT OF OR RELATES TO ANY ACTION
OR INACTION OF LENDER IN CONNECTION WITH ANY ACCELERATION OF THE INDEBTEDNESS OR ANY ENFORCEMENT OF
ANY SECURITY THAT LENDER AT ANY TIME HAS FOR ANY LENDER INDEBTEDNESS.

     Borrower and Lender have signed this Agreement as of the date stated on the first page of this
Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	BIOPORT CORPORATION
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ Robert G. Kramer
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its
	 	President & CEO
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	And by	 	/s/ Ronald S. Huben
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its
	 	Associate Director of Finance
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	FIFTH THIRD BANK
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By	 	/s/ Michael Debri
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Michael Debri
	 

	 	 	 	 	 	 	 	Its
	 	Vice President
	 
	 	 	 	 	 	 	 	 	 	 

- 18 -

 

Schedule 2.12

Plans

[Unavailable]

 

 

Schedule 2.16

Affiliates

[Unavailable]

 

 

April 25, 2006

Patrick Saam, Controller

Bioport Corporation

3500 North Martin Luther King Jr. Blvd.

Lansing, MI 48906

Dear Mr. Saam,

This letter is to inform you that the bank has extended your ten million dollar line of credit for
90 days to expire August 1, 2006. All terms and conditions remain the same. If you have any
questions, please feel free to call me at (517) 351-5204.

Sincerely,

/s/ David S. Flower

David S. Flower

Vice President

Fifth Third Bank

 

 

AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT

     THIS AMENDMENT TO AMENDED AND RESATED LOAN AGREEMENT is made as of August 1, 2006, by and
between BIOPORT CORPORATION, a Michigan corporation, of Lansing, Michigan (“Borrower”), and FIFTH
THIRD BANK, a Michigan banking corporation, which has an office in East Lansing, Michigan
(“Lender”).

     Borrower and Lender are parties to an Amended and Restated Loan Agreement dated as of July 29,
2005, under which Lender agreed to extend to Borrower revolving credit loans of up to $10 million
in the aggregate at any time outstanding (“Loan Agreement”).

     Lender and Borrower agree to amend the Loan Agreement and, among other things, add a financial
ratio provided under a prior agreement as follows:

     1. Each capitalized term that this Amendment uses but does not define has the meaning that the
Loan Agreement gives it.

     2. Borrower adopts and restates all of the warranties and representations set forth in the
Loan Agreement and the other Loan Documents, other than the warranties and representations
contained in Sections 2.5, 2.12 and 2.16 of the Loan Agreement, as fully as though Borrower had
made them on the date of this Amendment.

     3. Lender shall discharge the two mortgages referred to in Section 5.3 of the Loan Agreement.

     4. Section 1 of the Loan Agreement shall be and is amended, effective immediately, by adding
the following definitions:

     “’Liabilities’ means all liabilities that GAAP requires to be
classified as liabilities on a balance sheet of Borrower.”

     “‘Stockholders’ Equity’ means, at any time, the sum of the
following accounts set forth in a balance sheet of Borrower, prepared in
accordance with GAAP: (1) the par or stated value of all outstanding
capital stock, (2) capital surplus and (3) retained earnings.”

     “‘Tangible Net Worth’ means, at any time, Stockholders’ Equity,
less the sum of (1) goodwill, including any amounts, however designated
on a balance sheet of Borrower, representing the excess of the purchase
price that Borrower paid for assets or stock acquired over the value
assigned to the stock or assets on Borrower’s books, (2) patents,
trademarks, trade names and copyrights, (3) treasury stock, (4) loans
and advances to shareholders, directors, officers or employees, (5)
prepaid expenses and, (6) other intangible assets.”

     5. Section 3.6 of the Loan Agreement shall be and is amended, effective immediately, to read
as follows:

 

 

     “3.6 Unless it is sooner terminated or Lender extends it in
writing, Lender’s obligation to make or to renew Revolving Credit Loans
shall expire on October 1, 2006. If Lender extends it, then Lender’s
obligation to make or renew Revolving Credit Loans shall expire on the
date stated in the extension. If Lender’s obligation to make or renew
Revolving Credit Loans expires, then the aggregate unpaid principal
balance of all outstanding Revolving Credit Loans, together with all
accrued interest on them, shall be due and payable in full on the
expiration date.”

     6. Section 6.4 of the Loan Agreement shall be and is amended, effective immediately, to read
as follows:

     “6.4 Furnish to Lender within 45 days after the end of each fiscal
quarter of Borrower, beginning with the quarter ended June 30, 2006, an
unaudited financial report, the accuracy of which is certified to by the
President or chief financial officer of Borrower, prepared in accordance
with GAAP, containing Borrower’s balance sheet as of the end of the
period and its income statement showing the results of its operations
for the portion of its fiscal year then elapsed.”

     7. The Loan Agreement is amended, effective immediately, by adding a new Section
6.12 reading as follows:

     “6.12 Maintain a ratio of total Liabilities to Tangible Net Worth
of not more than 2.5 to 1.0.”

     8. Except as expressly amended by this Amendment, all of the provisions of the Loan Agreement
are ratified and confirmed.

     Borrower and Lender have executed this Amendment as of the date stated in the first paragraph.

	 	 	 	 	 	 	 	 	 
	 	 	BIOPORT CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By	 	/s/   Robert G. Kramer	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its
	 	President and CEO	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	And by Patricia D. Saam	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its
	 	Controller	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By	 	/s/   Mark Conn	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its
	 	Vice President	 	 
	 

	 	 	 	 	 	 	 	 

2

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