Document:

Exhibit 10.1
DATED                  3rd September                  2021
                                                                              
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LEASE
relating to
Units 6, 7, 8, 9 and 10
Zeus Building
Harwell Science and Innovation Campus
Harwell
Didcot
Oxfordshire
OX11 0RL
(1)THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP A LIMITED PARTNERSHIP ACTING BY ITS GENERAL PARTNER THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED AND THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED IN ITS CAPACITY AS NOMINEE FOR THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP
(2)VACCITECH (UK) LIMITED
(3)THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP A LIMITED PARTNERSHIP ACTING BY ITS GENERAL PARTNER THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED AND THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED IN ITS CAPACITY AS NOMINEE FOR THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP

Kingsley Napley LLP
20 Bonhill Street
London
EC2A 4DN
Tel:  +44 (0)20 7814 1200
Ref:  IXS/59261-90
​
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LAND REGISTRY PRESCRIBED CLAUSES
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	LR1. Date of lease
	    
	3rd September

	LR2. Title number(s)
	​
	LR2.1 Landlord’s title number(s)
ON347485
LR2.2 Other title numbers
ON359613

	LR3. Parties to this lease
	​
	Landlord
THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU
Tenant
VACCITECH (UK) LIMITED (company registration number 09973585) whose registered office is at The Schrodinger Building, 2nd Floor, Heatley Road, Oxford Science Park, Oxford, Oxfordshire OX4 4GE
Management Company
THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU
Other parties
None

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	LR4. Property
	    
	In the case of a conflict between this clause and the remainder of this lease then, for the purposes of registration, this clause shall prevail
See the definition or "Property" in clause 1.1 of this lease

	LR5. Prescribed statements etc.
	​
	LR5.1 Statements prescribed under rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban Development Act 1993) of the Land Registration Rules 2003
None
LR5.2 This lease is made under, or by reference to, provisions of
None

	LR6. Term for which the Property is leased.
	​
	The term as specified in this lease at clause 1.1 in the definition of “Contractual Term”

	LR7. Premium
	​
	None

	LR8. Prohibitions or restrictions on disposing of this lease
	​
	This lease contains a provision that prohibits or restricts dispositions

	LR9. Rights of acquisition etc.
	​
	LR9.1 Tenants contractual rights to renew this lease, to acquire the reversion or another lease of the Property, or to acquire an interest in other land
Cause 44 of this lease and the Schedule
LR9.2 Tenant’s covenant to (or offer to) surrender this lease
None
LR9.3 Landlord’s contractual rights to acquire this lease
None

	LR10. Restrictive covenants given in this lease by the Landlord in respect of land other than the Property
	​
	None

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	LR11. Easements
	    
	LR11.1 Easements granted by this lease for the benefit of the Property
The easements as specified in clause 4 of this lease
LR11.2 Easements granted or reserved by this lease over the Property for the benefit of other property
The easements as specified in clause 5 of this lease

	LR12. Estate rentcharge burdening the Property
	​
	None

	LR13. Application for standard form of restriction.
	​
	None

	LR14. Declaration of trust where there is more than one person comprising the Tenant
	​
	Not applicable

​
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THIS LEASE is dated                                                      3rd September                                                        2021
PARTIES
	(1)
	THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the Genera’ Partner and Nominee respectively for THE HARWELL SCIENCE AN! INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number. LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU as aforesaid (the Landlord),

	(2)
	VACCITECH (UK) LIMITED (company registration number 09973585) whose registered office is at The Schrodinger Building, 2nd Floor, Heatley Road, Oxford Science Park, Oxford, Oxfordshire OX4 4GE (the Tenant); and

	(3)
	THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number 6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITER (company registration number. 3539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU as aforesaid (the Management Company).

BACKGROUND
By virtue of the Superior Leases the Landlord has long leases of the Building and has agreed to grant the Tenant an underlease of the Property on the terms contained in this agreement.
AGREED TERMS
	1.
	INTERPRETATION

		1.1
	The definitions and rules of interpretation set out in this clause apply to this lease.

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1987 Order:  the Town and Country Planning (Use Classes) Order 1987.
2020 Regulations:  the Town and Country Planning (Use Classes) Amendment (England) Regulations 2020.
Account Date:  31st March in every year or such other date as the Landlord may from time to time determine and notify to the Tenant in writing.
Act of Insolvency:
		(a)
	the making of any voluntary arrangement or any other compromise or arrangement for the benefit of any creditors of the Tenant or any guarantor;

		(b)
	the making of an administration order in relation to the Tenant or any guarantor;

		(c)
	the appointment of an administrator in relation to the Tenant or any guarantor;

		(d)
	the appointment of a receiver or manager or an administrative receiver in relation to any property or income of the Tenant or any guarantor;

		(e)
	the commencement of a voluntary winding-up in respect of the Tenant or any guarantor, except a winding-up for the purpose of amalgamation or reconstruction of a solvent company in respect of which a statutory declaration of solvency has been filed with the Registrar of Companies;

		(f)
	the making of a winding-up order in respect of the Tenant or any guarantor;

		(g)
	the striking-off of the Tenant or any guarantor from the Register of Companies;

		(h)
	the Tenant or any guarantor otherwise ceasing to exist (but excluding where the Tenant or any guarantor dies);

		(i)
	the making of a bankruptcy order against the Tenant or any guarantor; or

		(j)
	the Tenant has a mortgagee or other chargee which takes possession or exercises any power of sale.

The paragraphs above shall apply in relation to a partnership or limited partnership (as defined in the Partnership Act 1890 and the Limited Partnerships Act 1907 respectively) subject to the modifications referred to in the Insolvent Partnerships Order 1994 (SI 1994/2421) (as amended), and a limited liability partnership (as defined in the Limited Liability Partnerships Act 2000) subject
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to the modifications referred to in the Limited Liability Partnerships Regulations 2001 (SI 2001/1090) (as amended).
Act of Insolvency includes any analogous proceedings or events that may be taken pursuant to the legislation of another jurisdiction in relation to a tenant or guarantor incorporated or domiciled in such relevant jurisdiction.
Agreement for Lease:  the agreement for lease in respect of the Property dated 3rd September 2021 and made between (1) the Landlord and (2) the Tenant.
Annual Rent:  rent at an initial rate of £889,948 per annum and then as revised pursuant to this lease.
Building:  the land and buildings known as Zeus on the Estate and shown edged purple on Plan 1 including:
		(a)
	all additions and alterations that may be made to it;

		(b)
	all Common Parts;

		(c)
	any Service Media that serve the Building and other premises where these are not owned by a utility company; and

		(d)
	any areas used and enjoyed with it;

Provided That both the extent and the boundaries of the Building may be increased from time to time including (without limitation) the intention to add an additional car park to serve the above-mentioned buildings.
Building Services:  means the services listed in clause 9.1.
Building Service Charge:  a fair and due proportion applicable to the Property as determined by the Landlord’s Surveyor (acting reasonably) of all Building Service Costs properly incurred by the Landlord in the provision of the Building Services.
Building Service Charge Year:  is the annual accounting period relating to the Building Services beginning on 1 April 2021 and each subsequent year during the term or such other period as the Landlord may from time to time determine.
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Building Service Costs:  the costs listed in clause 9.2.
Common Parts:  the Building other than the Property and North Block.
Common Roads:  the roads and footpaths within those parts of the Estate which are intended for the common use and benefit of occupiers of the Estate as varied from time to time by the Landlord and/or the Superior Landlord as appropriate in the interests of good estate management.
Contractual Term:  a term of ten years from and including the Term Commencement Date to and including 2nd September 2031.
CDM Regulations:  the Construction (Design and Management) Regulations 2015 as amended or as shall be superseded from time to time.
Default Interest Rate:  three percentage points above the Interest Rate.
Energy Assessor:  an individual who is a member of an accreditation scheme approved by the Secretary of State in accordance with regulation 22 of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118) or regulation 30 of the Building Regulations 2010 (SI 2010/2214).
Energy Performance Certificate:  a certificate as defined in regulation 2(1) of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118).
Environment:  means the natural and man-made environment, including all or any of the following media, namely air (including air within buildings and air within other natural man-made structures above or below ground), water (including water under or within land or drains or sewers) and land and any living organisms (including man) or systems supported by those media.
Estate:  the estate forming part of the Harwell Science and Innovation Campus Harwell Oxfordshire from time to time the current extent of which is shown edged blue on Plan 2.
Estate Common Parts:  the Common Roads and Service Media, the accesses, landscaped areas, car parks, estate management offices and other areas or amenities on the Estate or outside the Estate but serving or otherwise benefiting the Estate as a whole which are from time to time provided or designated for the common amenity or benefit of the owners or occupiers of the Estate.
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Estate Rules and Regulations:  means the document containing the rules and regulations stipulated by the Landlord and the Management Company relating to the Property and the Estate headed “Estate Rules and Regulations 2020” as (the Landlord or the Management Company, as appropriate, acting reasonably) may vary or reissue from time to time.
Estate Services:  means the services listed in clause 10.1.
Estate Service Charge:  a fair and due proportion applicable to the Property as determined by the Management Company or its surveyor (acting reasonably) of all Estate Service vice Costs properly incurred by the Management Company in the provision of the Estate Services
Estate Service Charge Year:  is the annual accounting period relating to the Estate Services beginning on 1 April 2021 and each subsequent year during the term or such other period as the Management Company may from time to time determine.
Estate Service Costs:  the costs listed in clause 10.2.
Group Undertaking:  a group undertaking of the Landlord as that expression is defined in Section 1161 of the Companies Act 2006
Harm:  means harm to the Environment, and in the case of man includes offence caused to any of his senses or harm to his property.
Hazardous Substances:  means any material, substance or organism which, alone or in combination with others, is capable of causing Harm.
Insurance Premium:  a fair proportion of the aggregate in each year of the gross cost of the premium before any discount or commission for the insurance of:
		(a)
	the Estate Common Parts for their full reinstatement cost (taking inflation of building costs into account) against loss or damage by or in consequence of the Insured Risks, including costs of demolition, site clearance, site protection and shoring-up, professionals’ and statutory fees and incidental expenses, the cost of any work which may be required under any law and VAT in respect of all those costs, fees and expenses; and

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		(b)
	public liability in relation to the Estate Common Parts;

together with any insurance premium tax payable on the above.
Insurance Rent:  the aggregate in each year of a fair proportion of the gross cost of the premium before any discount or commission for the insurance of:
		(a)
	the Building, other than any plate glass (if any), for its full reinstatement cost (taking inflation of building costs into account) against loss or damage by or in consequence of the Insured Risks, including costs of demolition, site clearance, site protection and shoring-up, professionals’ and statutory fees and incidental expenses, the cost of any work which may be required under any law and VAT in respect of all those costs, fees and expenses; and

		(b)
	loss of Annual Rent from the Property for three (3) years; together with any insurance premium tax payable on the above.

Insured Risks:  means fire, explosion, lightning, earthquake, storm, subsidence ground slip heave, flood, bursting and overflowing of water tanks, apparatus or pipes, impact by aircraft and articles dropped from them, impact by vehicles, riot, civil commotion, terrorism and any other risks against which the Landlord or Management Company (as applicable) reasonably decides to insure against from time to time and in respect of the Building or Estate Common Parts (as applicable) any other risks against which the Landlord reasonably decides to insure against from time to time and Insured Risk means any one of the Insured Risks.
Interest Rate:  interest at the base rate from time to time of Barclays Bank Plc, or if that base rate stops being used or published then at a reasonably comparable commercial rate reasonably determined by the Landlord.
Internal Area:  the gross internal area in square feet as calculated in accordance with the principles of the RICS Code of Measuring Practice 6th edition.
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Landlord’s Neighbouring Property:  each and every part of the adjoining and neighbouring property in which the Landlord or a Group Undertaking and/or the Superior Landlord has an interest and to the extent possible any neighbouring or adjoining property in which the Landlord or a Group Undertaking and/or the Superior Landlord acquires an interest during the term.
Lettable Unit:  any part of the Building (including any floor or part of a floor) other than the Property that is capable of being let and occupied on terms similar to those of this lease.
LTA 1954:  the Landlord and Tenant Act 1954.
North Block:  The part of the Building that comprises Units 1, 2, 3, 4 and 5, as shown edged orange on Plan 1, but excluding any Service Media in, on, under or over those units (whether in existence at the date of this lease or installed in the future) that are used by any part of the Property.
Option:  the option to renew granted by the Landlord under clause 44 of this lease in accordance with the terms set out in the Schedule to this lease.
Permitted Part, one or more individual units comprising the whole of Unit 6, 7, 8, 9 and/or 10.
Permitted Use:  offices and laboratories within Use Class E of the 1987 Order as amended by the 2020 Regulations at the date hereof and ancillary office uses, oi where the 2020 Regulations are repealed or quashed or otherwise no longer apply then Permitted Use shall mean offices and laboratories within class B1 of the 1987 Order (as at 31 August 2020) and ancillary offices uses Provided That in either case such use falls within the Permitted Use as defined in the Superior Leases.
Plan 1:  the plan attached to this lease at Appendix 1.
Plan 2:  the plan attached to this lease at Appendix 2.
Planning Acts:  The Town and Country Planning Act 1990, the Planning (Listed Buildings and Conservation Areas) Act 1990, the Planning (Consequential Provisions) Act 1990, the Planning and Compensation Act 1991 and the Planning and Compulsory Purchase Act 2004.
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Property:  Units 6, 7, 8, 9 and 10 of the Building, as shown edged red on Plan 1:
		(a)
	including any mezzanine floor installed by either the Landlord or the Tenant before or after the date of this lease, but excluding any Service Media in, on, under or over those units (whether in existence at the date of this lease or installed in the future) that are used by those units in common with any other part of the Estate; but

		(b)
	excluding the structure of the roof connecting the Property and North Block.  Quarter Days:  1 January, 1 April, 1 July and 1 October and Quarter Day means any one of them.

Recommendation Report:  a report as defined in regulation 4 of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118).
Regulatory Authority:  any body exercising regulatory power or authority and shall include such authority given in or by order of a court.
Remedial Works:  any works which are lawfully required by a relevant Regulatory Authority or by the Landlord acting reasonably to be carried out to remove, remedy, clean-up, abate, contain or ameliorate the effects of any Hazardous Substances.
Rent Commencement Date:  18 October 2021.
Rent Payment Dates:  the Quarter Days in each year.
Rent Review Specification:  the specification annexed to this Lease at Appendix 4.
Reservations:  all of the rights excepted, reserved and granted to the Landlord by this lease.
Review Date:  3rd September 2026
Rights:  the rights granted to the Tenant in clause 4.
Service Media:  all media for the supply or removal of heat, electricity, gas, water, sewage, air conditioning energy, telecommunications, data and all other services and utilities and all structures, machinery and equipment ancillary to those media.
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Superior Landlord:  the landlord for the time being of the Superior Leases.
Superior Landlord’s Covenants:  the obligations in the Superior Leases to be observed by the Superior Landlord.
Superior Leases:  the leases by virtue of which the Landlord holds the Building dated:
		(a)
	14th February 2019 and made between The United Kingdom Atomic Energy Authority (1) and the Landlord (2) as registered at HM Land Registry with title number ON347485 any documents made supplemental to it; and

		(o)
	29 September 2020 and made between The United Kingdom Atomic Energy Authority (1) and the Landlord (2) and which is being registered at HM Land Registry with title number ON359613 and any documents made supplemental to it.

Superior Lease Service Charge:  the service charge due under the Superior Leases and payable pursuant to clause 11.
Term Commencement Date:2021.
Third Party Rights:  all rights, covenants and restrictions affecting the Property including the matters referred to in the property register and charges register of title number ON347485 and the Superior Leases so far as they shall relate to the Property and remain subsisting.
VAT:  value added tax chargeable under the Value Added Tax Act 1994 or any similar replacement or additional tax.
		1.2
	The expressions “Category A Works”, “Mezzanine Floors” and “Mezzanine Specification” shall have the meanings given to them in the Agreement for Lease.

		1.3
	A reference to the Superior Leases is a reference to the superior leases and any deed, licence, consent, approval or other instrument supplemental to them and also any leasehold reversion (whether immediate or not) to such leases.  A reference to this lease, except a reference to the date of this lease or to the grant of the lease, is a reference to this deed and any deed, licence, consent, approval or other instrument supplemental to it.

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		1.4
	A reference to the Superior Landlord includes a reference to the person entitled to the immediate reversion to the Superior Leases.  A reference to the Landlord includes a reference to the person entitled to the immediate reversion to this lease. A reference to the Tenant includes a reference to its successors in title and assigns.  A reference to a guarantor is to any guarantor of the tenant covenants of this lease including a guarantor who has entered into an authorised guarantee agreement.

		1.5
	Where the Tenant is two or more persons, the obligations expressed to be made by or with the Tenant are deemed to be made by or with the Tenant jointly and severally and the liability of the Tenant shall be joint and several.

		1.6
	In relation to any payment, unless otherwise expressly stated a reference to a fair proportion is to a fair and reasonable proportion of the total amount payable, determined conclusively (except as to questions of law) by the Landlord or the Management Company (as applicable) or their respective surveyors acting reasonably.

		1.7
	The expressions landlord covenant and tenant covenant each has the meaning given to it by the Landlord and Tenant (Covenants) Act 1995.

		1.8
	Unless the context otherwise requires, references to the Estate, Building, the Common Parts, the Estate Common Parts and the Property are to the whole and any part of them or it.

		1.9
	A reference to the term is to the Contractual Term.

		1.10
	A reference to the end of the term is to the end of the term however it ends.

		1.11
	References to the consent of the Landlord are to the consent of the Landlord given in accordance with clause 50.4 and references to the approval of the Landlord are to the approval of the Landlord given in accordance with clause 50.5.  References to any consent or approval required from the Landlord shall be construed as also including a requirement to obtain the consent or approval of the Superior Landlord where such consent or approval is required under the terms of the Superior Leases except that nothing in this lease shall be construed as imposing on the Superior Landlord any obligation (or indicating that such an obligation is imposed on the Superior Landlord by the terms of the Superior Leases) not unreasonably to refuse any such consent.

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		1.12
	A working day is any day which is not a Saturday, a Sunday, a bank holiday or a public holiday in England and Wales.

		1.13
	Unless otherwise specified, a reference to a particular ldaw is a reference to it as it is in force for the time being, taking account of any amendment, extension, application or re-enactment and includes any subordinate laws for the time being in force made under it and all orders, notices, codes of practice and guidance made under it.

		1.14
	A reference to laws in general is to all local, national and directly applicable supra­national laws in force for the time being, taking account of any amendment, extension, application or re-enactment and includes any subordinate laws for the time being in force made under them and all orders, notices, codes of practice and guidance made under them

		1.15
	Any obligation in this lease on the Tenant not to do something includes an obligation not to agree to or suffer that thing to be done and an obligation to use reasonable endeavours to prevent that thing being done by another person

		1.16
	Where the Landlord or the Tenant or the Management Company covenant to do something they shall be deemed to fulfil that obligation if they procure that it is done.

		1.17
	Unless the context otherwise requires where the words include(s) or including are used in this lease, they are deemed to have the words “without limitation” following them.

		1.18
	A person includes a corporate or unincorporated body.

		1.19
	References to writing or written do not include faxes or email.

		1.20
	Except where a contrary intention appears, a reference to a clause is a reference to a clause of this lease.

		1.21
	Clause headings do not affect the interpretation of this lease

		1.22
	The Management Company enters into this lease as a management company within the meaning of section 12 of the Landlord and Tenant (Covenants) Act 1995.

		1.23
	The Management Company (as may be appropriate) includes its successors in title to the Common Roads and to the signage and Service Media on the Estate Common Parts.

	2.
	GRANT

		2.1
	The Landlord with full title guarantee lets the Property to the Tenant for the Contractual Term.

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		2.2
	The grant is made together with the Rights, excepting and reserving to the Landlord the Reservations, and subject to the Third Party Rights.

		2.3
	The grant is made with the Tenant paying the following as rent to the Landlord:

		2.3.1
	the Annual Rent;

		2.3.2
	all interest payable by the Tenant to the Landlord under this lease;

		2.3.3
	the Building Service Charge;

		2.3.4
	the Insurance Rent;

		2.3.5
	the Superior Lease Service Charge;

		2.3.6
	all other sums due from the Tenant to the Landlord under this lease; and

		2.3.7
	all VAT chargeable on the other rents set out in this clause 2.3.

	3.
	TENANT COVENANTS

The Tenant covenants:
		3.1
	with the Landlord to observe and perform all the tenants covenants in this lease; and

		3.2
	with the Management Company to observe and perform all the covenants on the part of the Tenant in this lease in favour of the Management Company;

in each case during the term or (if earlier) until the Tenant is released from the tenant covenants of this lease by virtue of the Landlord and Tenant (Covenants) Act 1995.
	4.
	RIGHTS GRANTED TO THE TENANT

		4.1
	Except as mentioned in clause 4.2, neither the grant of this lease nor anything in it confers any right over the Landlord’s Neighbouring Property or any other neighbouring property nor is to be taken to show that the Tenant may have any right over the Landlord’s Neighbouring Property or any other neighbouring property, and section 62 of the Law of Property Act 1925 does not apply to this lease

		4.2
	The Landlord grants to the Tenant and all those authorised by the Tenant:-

		4.2.1
	the right to pass and re-pass to and from the Property and the parking spaces referred to in clause 4.2.3 at all times with or without vehicles over the Common Roads within the Estate (to the extent that the Landlord is entitled to grant such right and subject to any Third Party Rights);

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		4.2.2
	the right to use the Common Parts for access to and egress from the Property;

		4.2.3
	the right to park 19 private motor cars or motorbikes belonging to the Tenant, its employees and visitors in the spaces shown coloured blue on Plan 1 or such alternative spaces on the Estate as the Landlord may designate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management;

		4.2.4
	the right to park 25 private motor cars or motorbikes belonging to the Tenant, its employees and visitors in such parking spaces on the Estate as the Landlord may designate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management, Provided That they are no further than 500 metres from the Property;

		4.2.5
	the right to install electric charging points within the parking spaces referred to in clause 4.2.3 with the prior consent of the Landlord, such consent not to be unreasonably withheld or delayed, Provided That the electricity consumed, when included with the consumption of electricity at the Property, shall not exceed the figures set out in clause 35.4 of this lease;

		4.2.6
	the right on a first come first served basis to park private motor cars or motorbikes belonging to the Tenant, its employees and visitors in the undesignated common car parks on the Estate as the Landlord may allocate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management;

		4.2.7
	the right to use such cycle parking facilities on the Common Parts as the Landlord may designate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management;

		4.2.8
	the non-exclusive right to use such of the accessible and electric vehicle car parking spaces shown indicatively coloured yellow and coloured green respectively on Plan 1 as may be allocated for such use by the Landlord in the Landlord’s absolute discretion;

		4.2.9
	the right at all times to use the waste receptacles provided by the Landlord to be located on such area of the external Common Parts as the Landlord shall allocate and provide for that purpose from time to time for the purpose of conventional waste disposal only but not for any specialist or recycling waste the disposal arrangements for which shall be the responsibility of the Tenant;

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		4.2.10
	the right to the free and uninterrupted passage and running of services through the Service Media in or under the Building and other parts of the Estate that serve (but do not form part of the Property) which are in existence at the date of this lease or are installed or constructed during the term;

		4.2.11
	the right to support and protection from the Common Parts to the extent that the Common Parts provide support and protection to the Property at the date of this lease;

		4.2.12
	the right to attach any item to the Common Parts adjoining the Property so far as is reasonably necessary to carry out any works to the Property required or permitted by this lease;

		4.2.13
	the right to enter the Common Parts so far as is reasonably necessary to:

		4.2.13.1
	carry out works to the Property required or permitted by this lease or

		4.2.13.2
	erect, install, use, retain, operate, inspect, maintain, repair and (if permitted by the Landlord) renew any alterations or additions beyond the boundaries of the Property to which the Landlord shall have granted prior written consent and only in accordance with the terms of that consent;

(in each case) after having given reasonable notice (which need not be in writing) to the Landlord and Provided That where reasonably required by the Landlord to exercise that right only if accompanied by the Landlord’s representative;
		4.2.14
	the right to install and retain Service Media beyond the boundaries of the Property in so far as may be required to serve any alterations or additions that have been installed and/or retained beyond the boundaries of the Property to which the Landlord shall have granted prior written consent and only in accordance with the terms of that consent;

		4.3
	The Rights are granted in common with the Landlord, the Management Company, the Superior Landlord and any other person authorised by the Landlord or the Superior Landlord.

		4.4
	The Rights may be exercised by the Tenant and by anyone else who is or who becomes entitled to exercise them and by anyone authorised by the Tenant and anyone so entering shall cause as little damage and inconvenience to the Landlord as possible and make good any damage

​

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caused to the Estate as soon as reasonably practicable and to the reasonable satisfaction of the Landlord and/or the Management Company.
	5.
	RIGHTS EXCEPTED AND RESERVED

		5.1
	The following rights are excepted and reserved from this lease to the Landlord, the Management Company and any superior landlord from time to time for the benefit of the Building, Estate and the Landlord’s Neighbouring Property:

		5.1.1
	rights of light, air, support and protection as those rights are capable of being enjoyed at any time during the term;

		5.1.2
	the right to use and connect into and re-route any Service Media at, but not forming part of, the Property and the right to install and construct Service Media at the Property to serve any part of the Building or Estate;

		5.1.3
	the right to attach any scaffolding or other structure to any boundary of the Property;

		5.1.4
	at any time during the term, the full and free right for the Landlord and/or the Superior Landlord to develop the Estate and any neighbouring or adjoining property in which the Landlord acquires an interest during the term as the Landlord may think fit;

		5.1.5
	the right to re-route the Common Roads and any means of access to or egress from the Property or to change the areas over which any of the Rights are exercised;

		5.1.6
	the right to re-route and replace any Service Media over which the Rights mentioned in clause 4.2.10 may be exercised;

		5.1.7
	the rights reserved to the Superior Landlord under the Superior Leases; and

		5.1.8
	the right to enter the Property:

		5.1.8.1
	to repair, maintain, install, construct, re-route or replace any Service Media or structure relating to any of the Reservations;

		5.1.8.2
	inspect and record the condition of the Property or other parts of the Building and to carry out works to any other Lettable Unit or any part of the Estate;

		5.1.8.3
	for any other purpose mentioned in or properly connected with this lease, the Superior Leases, the Reservations, any Third Party Right and/or the interests

​

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of the Landlord and any superior reversionary interest in any Landlord’s Neighbouring Property;
notwithstanding that the exercise of any of the Reservations or the works carried out pursuant to them result in a reduction in the flow of light or air to the Property or loss of amenity for the Property Provided That they do not materially adversely affect the use and enjoyment of the Property for the Permitted Use
		5.2
	The Reservations may be exercised by the Landlord, the Management Company, the Superior Landlord and by anyone else who is or becomes entitled to exercise them and by anyone authorised by the Landlord.

		5.3
	The Tenant shall allow all those entitled to exercise any right to enter the Property, to do so with their workers, contractors, agents and professional advisors, and to enter the Property at any reasonable time (during usual business hours other than in the case of an emergency) and, except in the case of an emergency, after having given reasonable notice (which need not be in writing) to the Tenant.

		5.4
	No party exercising any of the Reservations, nor its workers, contractors, agents and professional advisors, shall be liable to the Tenant or to any undertenant or other occupier of or person at the Property for any loss, damage, injury, nuisance or inconvenience arising by reason of its exercising any of those Reservations except for:

		5.4.1
	physical damage to the Property; or

		5.4.2
	any loss, damage or injury arising by reason of the negligence of the Landlord or the party exercising the Reservations;

		5.4.3
	any loss, damage, injury, nuisance or inconvenience in relation, to which the law prevents the Landlord from excluding liability.

	6.
	THIRD PARTY RIGHTS

		6.1
	Tenant shall comply with all obligations on the Landlord, the Management Company and the Superior Landlord relating to the Third Party Rights (in each case insofar as those obligations relate to the Property or the exercise of the Rights over the Estate as authorised in this lease

​

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​
and subsist and are capable of taking effect) and shall not do anything (even if otherwise permitted by this lease) that may interfere with any Third Party Right.
		6.2
	The Tenant shall allow the Landlord, the Management Company and the Superior Landlord and any other person authorised by the terms of any Third Party Right to enter the Property in accordance with its terms.

	7.
	THE ANNUAL RENT

		7.1
	The Tenant shall pay the Annual Rent and any VAT in respect of it by four equal instalments in advance on or before the Rent Payment Dates.  The payments shall be made by electronic transfer.

		7.2
	The first instalment of the Annual Rent and any VAT in respect of it shall be made on the Rent Commencement Date and shall be the proportion, calculated on a daily basis in respect of the period beginning on the Rent Commencement Date until the day before the next Rent Payment Date.

		7.3
	Notwithstanding the provisions of this lease, the Tenant shall be given an initial rent free period of 3 months from the Term Commencement Date followed by a further rent free period equivalent to 18 months’ rent free based on the commencing Annual Rent of £889,948 amortised over a period of 24 months from and including the Rent Commencement Date, so that the amounts of Annual Rent to be paid during the period of 24 months from the Term Commencement Date shall be as follows:

	​

	​

	​

	Payment due date
	Period from and
including payment due
date to and including
	Amount of Annual Rent
to be paid (exclusive of
VAT)

	  3rd September 2021
	17 October 2021
	Nil

	18 October 2021
	31 December 2021
	£45,716.51

	1 January 2022
	31 March 2022
	£55,556.49

	1 April 2022
	30 June 2022
	£55,556.49

	1 July 2022
	30 September 2022
	£55,556,49

	1 October 2022
	31 December 2022
	£55.556.49

	1 January 2023
	31 March 2023
	£55,556.49

	1 April 2023
	30 June 2023
	£55,556.49

	1 July 2023
	30 September 2023
	£55,556.49

	1 October 2023
	17 October 2023
	£10,365.29

​

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	8.
	REVIEW OF THE ANNUAL RENT

		8.1
	In this clause the President is the President for the time being of the Royal Institution of Chartered Surveyors or a person acting on his behalf, and the Surveyor is the independent valuer appointed pursuant to clause 8.7.

		8.2
	The Annual Rent shall be reviewed on the Review Date to equal:

		8.2.1
	the Annual Rent payable immediately before the Review Date (or which would then be payable but for any abatement or suspension of the Annual Rent or restriction on the right to collect it and disregarding any amortised rent free period during the term) or, if greater;

		8.2.2
	the open market rent agreed or determined pursuant to this clause 8.

		8.3
	The open market rent may be agreed between the Landlord and the Tenant at any time before it is determined by the Surveyor.

		8.4
	If the open market rent is determined by the Surveyor, it shall be the amount that the Surveyor determines is the annual rent (exclusive of any VAT) at which the Property could reasonably be expected to be let:

		8.4.1
	in the open market;

		8.4.2
	at the Review Date;

		8.4.3
	on the assumptions listed in clause 8.5; and

		8.4.4
	disregarding the matters listed in clause 8.6.

		8.5
	The assumptions are:

		8.5.1
	the Property is available to let in the open market:

		8.5.1.1
	by a willing lessor to a willing tenant;

		8.5.1.2
	as a whole;

		8.5.1.3
	with vacant possession;

		8.5.1.4
	without a fine or a premium;

		8.5.1.5
	for a term of ten years commencing on the Review Date;

		8.5.1.6
	with a rent review date on the fifth anniversary of the Review Date; and

		8.5.1.7
	otherwise on the terms of this lease, other than:

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		8.5.1.7.1
	as to the amount of the Annual Rent and the Review Date (but including the provisions for review of the Annual Rent in accordance with clause 5.1.6); and

		8.5.1.7.2
	clause 44 and the Schedule to this lease;

		8.5.2
	the willing tenant has had the benefit of any rent-free or other concession or contribution which would be offered in the open market at the Review Date in relation to fitting out works at the Property;

		8.5.3
	the Property may lawfully be used by the willing tenant (or any potential undertenant or assignee of the willing tenant) for any purpose permitted by this lease;

		8.5.4
	the Landlord and the Tenant have fully complied with their obligations in this lease;

		8.5.5
	if the Property or any other’ part of the Building or any Service Media serving the Property, has been destroyed or damaged, it has been fully restored;

		8.5.6
	no work has been carried out on the Property that has diminished the rental value of the Property other than work carried out in compliance with clause 36;

		8.5.7
	any fixtures, fittings, machinery or equipment supplied to the Property by the Landlord that have been removed by or at the request of the Tenant, or any undertenant or their respective predecessors in title (otherwise than to comply with any law) remain at the Property;

		8.5.8
	the willing tenant and its potential assignees and undertenants shall not be disadvantaged by any actual or potential exercise of an option to tax under Part 1 of Schedule 10 to the VATA 1994 in relation to the Property; and

		8.5.9
	the Mezzanine Floors (including staircases leading to them) and the Category A Works to the Mezzanine Floors were installed by the willing landlord at its cost at the date of this lease in accordance with the Rent Review Specification and the Mezzanine Specification;

		8.5.10
	all of the other works listed in Appendix G to the Agreement for Lease were provided and carried out by the willing landlord at its cost at the date of this lease;

		8.5.11
	the Internal Area of the Property is:

​
​

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​
	Unit (at the Property)
	Floor
	Internal Area (Sq Ft)

	6
	Ground
	1611

	6
	First
	1611

	7
	Ground
	3156

	7
	First
	3156

	8
	Ground
	3160

	8
	First
	3160

	9
	Ground
	3157

	9
	First
	3157

	9
	Second
	917

	10
	Ground
	3165

	10
	First
	3165

	10
	Second
	1789

​
​
		8.6
	The matters to be disregarded are:

		8.6.1
	any effect on rent of the fact that the Tenant or any authorised undertenant has been in occupation of the Property;

		8.6.2
	any goodwill attached to the Property by reason of any business carried out there by the Tenant or by any authorised undertenant or by any of their predecessors in title;

		8.6.3
	any effect on rent attributable to any physical improvement to the Property carried out before or after the date of this lease, by and at the expense of the Tenant or any authorised undertenant with all necessary consents, approvals and authorisations and not pursuant to an obligation to the Landlord (other than an obligation to comply with any law);

		8.6.4
	any effect on rent of any obligation on the Tenant to fit out the Property or to reinstate the Property to the condition or design it was in before any alterations or improvements were carried out;

		8.6.5
	any statutory restriction on rents or the right to recover them; and

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		8.6.6
	any depreciatory effect on the Annual Rent of clauses 8.4 to 8.6.

		8.7
	The Surveyor shall be an independent valuer who is a Member or Fellow of the Royal Institution of Chartered Surveyors.  The Landlord and the Tenant may, by agreement, appoint the Surveyor at any time before either of them applies to the President for the Surveyor to be appointed.  Any application to the President may not be made earlier than three months before the Review Date.

		8.8
	The Surveyor shall act as an expert and not as arbitrator.  The Surveyor shall determine the open market rent.  The Surveyor’s decision shall be given in writing, and the Surveyor shall provide reasons for any determination.  The Surveyor’s written decision on the matters referred to him shall be final and binding in the absence of manifest error or fraud.

		8.9
	The Surveyor shall give the Landlord and the Tenant an opportunity to make written representations to the Surveyor and to make written counter-representations commenting on the representations of the other party to the Surveyor. The parties will provide (or procure that others provide) the Surveyor with such assistance and documents as the Surveyor reasonably requires for the purpose of reaching a decision.

		8.10
	If the Surveyor dies, or becomes unwilling or incapable of acting, or unreasonably delays in making any determination, then either the Landlord or the Tenant may apply to the President to discharge the Surveyor and clause 8.7 shall then apply in relation to the appointment of a replacement.

		8.11
	The fees and expenses of the Surveyor and the cost of the Surveyor’s appointment and any counsel’s fees, or other fees, properly incurred by the Surveyor shall be payable by the Landlord and the Tenant in the proportions that the Surveyor directs (or if the Surveyor makes no direction, then equally). If either party does not pay its part of the Surveyor’s fees and expenses within ten working days after demand by the Surveyor, the other party may pay that part and the amount it pays shall be a debt of the non-paying party due and payable within ten working days of demand to the paying party. The Landlord and the Tenant shall otherwise each bear their own costs in connection with the rent review

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		8.12
	If the revised Annual Rent has not been agreed by the Landlord and the Tenant or determined by the Surveyor on or before the Review Date, the Annual Rent payable from and including that Review Date shall continue at the rate payable immediately before that Review Date.  No later than five (5) working days after the revised Annual Rent is agreed or the Surveyor’s determination is notified to the Landlord and the Tenant, the Tenant shall pay:

		8.12.1
	the shortfall (if any) between the amount that it has paid for the period from and including the Review Date until the Rent Payment Date following the date of agreement or notification of the revised Annual Rent and the amount that would have been payable had the revised Annual Rent been agreed or determined on or before that Review Date; and

		8.12.2
	interest at the Interest Rate on that shortfall calculated on a daily basis by reference to the Rent Payment Dates on which parts of the shortfall would have been payable if the revised Annual Rent had been agreed or determined on or before that Review Date and the date payment is received by the Landlord.

		8.13
	Time shall not be of the essence for the purposes of this clause.

		8.14
	If at any time there is a guarantor, the guarantor shall not have any right to participate in the review of the Annual Rent.

		8.15
	As soon as practicable after the amount of the revised Annual Rent has been agreed or determined, a memorandum recording the amount shall be signed by or on behalf of the Landlord and the Tenant and endorsed on or attached to this lease and its counterpart.  The Landlord and the Tenant shall each bear their own costs in connection with the memorandum.

	9.
	BUILDING SERVICE CHARGE

		9.1
	The Building Services are:

		9.1.1
	cleaning, maintaining, decorating and repairing the Common Parts, including external and structural parts and all Service Media forming part of the Common Parts;

		9.1.2
	lighting the Common Parts and cleaning, maintaining, repairing and replacing lighting machinery and equipment on the Common Parts;

		9.1.3
	cleaning, maintaining, repairing and replacing refuse bins on the Common Parts;

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		9.1.4
	cleaning, maintaining, repairing and replacing signage for the Common Parts;

		9.1.5
	cleaning, maintaining, repairing, operating and replacing any security machinery and equipment (including closed circuit television) on the Common Parts;

		9.1.6
	cleaning, maintaining, repairing, operating and replacing fire prevention, detection and fire fighting machinery and equipment and fire alarms on the Common Parts;

		9.1.7
	cleaning, maintaining, repairing and replacing any signboard showing the names and logos of the tenants and other occupiers (if provided by the Landlord);

		9.1.8
	maintaining the landscaped and grassed areas of the Common Parts;

		9.1.9
	cleaning maintaining repairing lighting and replacing the car park within the Common Parts; and

		9.1.10
	any other service or amenity that the Landlord may in its reasonable discretion (acting in accordance with the principles of good estate management) provide for the benefit of the tenants and occupiers of the Building.

		9.2
	The Building Service Costs are the total of:

		9.2.1
	the whole of the costs of:

		9.2.1.1
	providing the Building Services;

		9.2.1.2
	the supply and removal of electricity, gas, water, sewage and other utilities to and from the Common Parts;

		9.2.1.3
	complying with the recommendations and requirements of the insurers of the Building (insofar as those recommendations and requirements relate to the Common Parts);

		9.2.1.4
	complying with all laws relating to the Common Parts, their use and any works carried out at them, and relating to the use of all Service Media, machinery and equipment at or serving the Common Parts and to any materials kept at or disposed of from the Common Parts;

		9.2.1.5
	complying with the Third Party Rights insofar as they relate to the Common Parts;

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		9.2.1.6
	taking any steps (including proceedings) that the Landlord considers necessary to prevent or remove any encroachment over the Common Parts or to prevent the acquisition of any right over the Common Parts or to remove any obstruction to the flow of light or air to the Common Parts;

		9.2.1.7
	pursuing or enforcing any claim and taking or defending any proceedings against any third party or parties employed in the construction refurbishment and/or repair of the Building or for the remedy of a defect or otherwise or in connection with the Building Services;

		9.2.1.8
	the provision for future anticipated expenditure in respect of any of the Building Services as the Landlord shall consider appropriate (acting reasonably);

		9.2.2
	the costs, fees and disbursements (on a full indemnity basis) of:

		9.2.2.1
	managing agents employed by the Landlord for the carrying out and provision of the Building Services or, where managing agents are not employed, a management fee for the same (not exceeding 10% of the total Building Service Costs); and

		9.2.2.2
	accountants employed by the Landlord to prepare and audit the Building Service Charge accounts;

		9.2.3
	all costs incurred in relation to those persons directly employed by the Landlord or the managing agent to deliver or administer delivery of the Building Services (whether employee full or part time and whether based at the Building or not) as follows:

		9.2.3.1
	salaries (and all appropriate benefits);

		9.2.3.2
	employer’s costs (including national insurance contributions and tax; costs of compliance with statutory requirements; and pension, welfare, and insurance contributions); and

		9.2.3.3
	training, uniforms and all equipment, supplies and accommodation needed for the proper performance of their duties,

		9.2.4
	all rates, taxes, impositions and outgoings payable in respect of the Common Parts, their use and any works carried out on them (other than any taxes payable by the Landlord in

​

- 27 -

​
connection with any dealing with or disposition of its reversionary interest in the Building); and
		9.2.5
	any VAT payable by the Landlord in respect of any of the items mentioned above except to the extent that the Landlord obtains credit for such VAT under the Value Added Tax Act 1994.

		9.3
	Subject to the Tenant paying the Building Service Charge, to the Management Company or the Landlord if so directed by the Management Company, the Landlord shall use its reasonable endeavours to provide the Building Services described in clauses 9.1.1 to 9 1.9 (inclusive).  The Landlord may, but shall not be obliged to, provide any of the other Building Services.

		9.4
	The Landlord shall not be obliged to carry out any works where the need for those works has arisen by reason of any damage or destruction by a risk against which the Landlord is not obliged to insure.

		9.5
	The Landlord shall not be liable for:

		9.5.1
	any interruption in, or disruption to, the provision of any of the Building Services for any reason that is outside the reasonable control of the Landlord; or

		9.5.2
	any injury, loss or damage suffered by the Tenant as a result of any absence or insufficiency of any of the Building Services or of any breakdown or defect in any Service Media, except where due to the negligence of the Landlord or its agents.

		9.6
	Before, or as soon as practicable after the start of each Building Service Charge Year, the Landlord shall prepare and send the Tenant an estimate of the Building Service Charge for the Building Service Charge Year (“the Estimated Building Service Charge”).

		9.7
	The Tenant shall pay the Estimated Building Service Charge for each Building Service Charge Year in four equal instalments on each of the Rent Payment Dates The first payment in respect of the Building Service Charge Year current at the date of this lease will be made on the date of this lease and will be a due proportion in respect of the period from and including the Term Commencement Date to and excluding the Rent Payment Date next following the date of this lease.

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		9.8
	If the Landlord or the Landlord’s surveyor does not notify an estimate of the Building Service Charge for any Building Service Charge Year the Estimated Building Service Charge for the preceding Building Service Charge Year shall apply.  The Landlord or the Landlord’s surveyor may at any time revise the Estimated Building Service Charge.  Any revision of the Estimated Building Service Charge after the start of a Building Service Charge Year shall adjust the payments on the following Rent Payment Dates equally.

		9.9
	As soon as reasonably practicable after the end of each Building Service Charge Year, the Landlord shall serve on the Tenant a certificate of the Building Service Charge certified by the Landlord’s surveyor for that Building Service Charge Year.

		9.10
	If any cost is omitted from the calculation of the Building Service Charge in any Building Service Charge Year, the Landlord shall be entitled to include it in the estimate and certificate of the relevant Building Service Charge in any of the following Building Service Charge Years.  Otherwise and except in the case of manifest error, the Building Service Charge Certificate shall be conclusive as to all matters of fact to which it refers.

		9.11
	Without prejudice to the provisions of clause 12.5.6, where the Landlord provides any Building Service by reason of the damage to or destruction of the Common Parts by an Insured Risk or (save where clause 12.10.4 applies) an Uninsured Risk, the costs of that Building Service shall not be included in the Building Service Charge.

		9.12
	The difference between the Building Service Charge and the Estimated Building Service Charge for any Building Service Charge Year (or part) shall be paid by the Tenant to the Landlord within 14 days of the service of the certificate, or allowed against the next Estimated Building Service Charge payment or after the expiry of the Term refunded to the Tenant after the end of the relevant Building Service Charge Year having carried out the Building Service Charge reconciliation.

		9.13
	The Building Service Charge shall not include:

		9.13.1
	any costs relating to the initial construction of the Building or works solely designed to allow for the extension of the Building;

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		9.13.2
	any fees and expenses attributable to the review of rents payable by the tenants and other occupiers of the Building or attributable to the letting of any part of the Building or any disposition or dealing with the Landlord’s interest in the Building or any part thereof;

		9.13.3
	any costs (including without limitation solicitors surveyors and agents fees and managing agents fees) incurred by or on behalf of the Landlord in the collection of rents or other monies for any occupiers of the Building and/or any proceedings against any occupier of the Building; or

		9.13.4
	any costs incurred by the Landlord in carrying out any works precautions or other matters as may be required by the Environment Agency or any other relevant statutory body or local authority to remove or remedy or contain any contamination or other environmental hazard arising as a result of prior use and occupation of the Building or part of it by other persons and which is not caused by the Tenant.

	10.
	ESTATE SERVICE CHARGE

		10.1
	The Estate Services are:

		10.1.1
	cleaning maintaining repairing and replacing the Estate Common Parts including all Service Media forming part of the Estate Common Parts all boundaries of the Estate including fences access barriers gates and necessary patrol tracks;

		10.1.2
	lighting the Estate Common Parts and cleaning maintaining repairing and replacing lighting machinery and equipment on the Estate Common Parts;

		10.1.3
	cleaning maintaining repairing and replacing refuse bins on the Estate Common Parts;

		10.1.4
	cleaning maintaining repairing operating and replacing fire prevention, detection and fire fighting machinery and equipment on the Estate Common Parts;

		10.1.5
	the clearance and gritting of roads and paths on the Estate as reasonably determined by the Management Company;

		10.1.6
	the provision and maintenance of signage on the Estate including road traffic directional signs;

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		10.1.7
	the provision and maintenance (including replanting or planting) of the landscaped areas forming part of the Estate the grounds and any trees and shrubs therein (and vermin control thereon) and any architectural or ornamental features;

		10.1.8
	the provision of a security service and equipment for the Estate including reception at the main gate; and

		10.1.9
	the supply of any other service or amenity that the Management Company may acting in accordance with the principles of good estate management provide for the benefit of the tenants and occupiers of the Estate

		10.2
	The Estate Service Costs are the total of:

		10.2.1
	the whole of the costs of:

		10.2.1.1
	providing the Estate Services;

		10.2.1.2
	the supply and removal of electricity, gas, water, sewage and other utilities to and from the Estate Common Parts;

		10.2.1.3
	complying with the recommendations and requirements of the insurers of the Building (insofar as those recommendations and requirements relate to the Estate Common Parts);

		10.2.1.4
	complying with all laws relating to the Estate Common Parts, their use and any works carried out at them, and relating to the use of all Service Media, machinery and equipment at or serving the Estate Common Parts and to any materials kept at or disposed of from the Estate Common Parts,

		10.2.1.5
	contributions to sustainable travel and green travel plans that the Management Company is either obliged to contribute towards or where it would be to the benefit of the occupiers of the Estate to do so (acting in the interests of good estate management);

		10.2.1.6
	complying with the Third Party Rights insofar as they relate to the Estate Common Parts;

		10.2.1.7
	taking any steps (including proceedings) that the Management Company considers necessary to prevent or remove any encroachment over the Estate

​

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Common Parts or to prevent the acquisition of any right over the Estate Common Parts (or the Estate as a whole) or to remove any obstruction to the flow of light or air to the Estate Common Parts (or the Estate as a whole);
		10.2.1.8
	pursuing or enforcing any claim and taking or defending any proceedings against any third party or parties employed in the construction refurbishment and/or repair of the Estate Common Parts or for the remedy of a defect or otherwise or in connection with the Estate Services; and

		10.2.1.9
	the provision for future anticipated expenditure in respect of any of the Estate Services as the Management Company shall consider appropriate (acting reasonably);

		10.2.2
	the costs, fees and disbursements (on a full indemnity basis) of:

		10.2.2.1
	managing agents employed by the Management Company for the carrying out and provision of the Estate Services or, where managing agents are not employed, a management fee for the same not exceeding 10% of the total Estate Service Costs; and

		10.2.2.2
	accountants employed by the Management Company to prepare and audit the Estate Service Charge accounts;

		10.2.3
	all costs incurred in relation to those persons directly employed by the Management Company or the managing agent to deliver or administer delivery of the Estate Services (whether employed full or part time and whether based at the Estate or not) as follows:

		10.2.3.1
	salaries (and all appropriate benefits);

		10.2.3.2
	employer’s costs (including national insurance contributions and tax; costs of compliance with statutory requirements; and pension, welfare, and insurance contributions); and

		10.2.3.3
	training, uniforms and all equipment, supplies and accommodation needed for the proper performance of their duties,

		10.2.4
	all rates, taxes, impositions and outgoings payable in respect of the Estate Common Parts, their use and any works carried out on them (other than any taxes payable by the

​

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Management Company in connection with any dealing with or disposition of its reversionary interest in the Estate); and
		10.2.5
	any VAT payable by the Management Company in respect of any of the items mentioned above except to the extent that the Management Company obtains credit for such VAT under the Value Added Tax Act 1994.

		10.3
	Any item charged by way of Service Charge (as defined in the Superior Leases) under clause 11 is excluded from the Estate Service Charge to the intent that there shall be no double counting.

		10.4
	Subject to the Tenant paying the Estate Service Charge, to the Management Company or the Landlord if so directed by the Management Company, the Management Company shall use its reasonable endeavours to:

		10.4.1
	clean maintain repair replace and light the Common Roads;

		10.4.2
	keep clean and in repair the Management Company’s signage (if any) upon the Estate; and

		10.4.3
	clean maintain repair and renew all Service Media forming part of the Estate Common Parts.

		10.5
	The Management Company may, but shall not be obliged to, provide any of the other Estate Services.

		10.6
	The Management Company shall not be obliged to carry out any works where the need for those works has arisen by reason of any damage or destruction by a risk against which the Management Company is not obliged to insure.

		10.7
	The Management Company shall not be liable for.

		10.7.1
	any interruption in, or disruption to, the provision of any of the Estate Services for any reason that is outside the reasonable control of the Management Company; or

		10.7.2
	any injury, loss or damage suffered by the Tenant as a result of any absence or insufficiency of any of the Estate Services or of any breakdown or defect in any Service Media, except where due to the negligence of the Management Company.

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		10.8
	Before, or as soon as practicable after the start of each Estate Service Charge Year, the Management Company shall prepare and send the Tenant an estimate of the Estate Service Charge for the Estate Service Charge Year (“the Estimated Estate Service Charge”).

		10.9
	The Tenant shall pay the Estimated Estate Service Charge to the Management Company (or the Landlord if so directed by the Management Company) for each Estate Service Charge Year in four equal instalments on each of the Rent Payment Dates. The first payment in respect of the Estate Service Charge Year current at the date of this lease will be made on the date of this lease and will be a due proportion in respect of the period from and including the Term Commencement Date to and excluding the Rent Payment Date next following the date of this lease.

		10.10
	If the Management Company or the Management Company’s surveyor does not notify an estimate of the Estate Service Charge for any Estate Service Charge Year the Estimated Estate Service Charge for the preceding Estate Service Charge Year shall apply.  The Management Company or the Management Company’s surveyor may at any time revise the Estimated Estate Service Charge Any revision of the Estimated Estate Service Charge after the start of an Estate Service Charge Year shall adjust the payments on the following Rent Payment Dates equally.

		10.11
	As soon as reasonably practicable after the end of each Estate Service Charge Year, the Management Company shall serve on the Tenant a certificate of the Estate Service Charge certified by the Management Company’s surveyor for that Estate Service Charge Year.

		10.12
	If any cost is omitted from the calculation of the Estate Service Charge in any Estate Service Charge Year, the Management Company shall be entitled to include it in the estimate and certificate of the relevant Estate Service Charge in any of the following Estate Service Charge Years.  Otherwise and except in the case of manifest error, the Estate Service Charge Certificate shall be conclusive as to all matters of fact to which it refers.

		10.13
	Without prejudice to the provisions of clause 13.4.5, where the Management Company provides any Estate Service by reason of the damage to or destruction of the Estate Common

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Parts by an Insured Risk, the costs of that Estate Service shall not be included in the Estate Service Charge.
		10.14
	The difference between, the Estate Service Charge and the Estimated Estate Service Charge for any Estate Service Charge Year (or part) shall be paid by the Tenant to the Management Company within 14 days of the service of the certificate, or allowed against the next Estimated Estate Service Charge payment or after the expiry of the term refunded to the Tenant after the end of the relevant Estate Service Charge Year having carried out the Estate Service Charge reconciliation.

		10.15
	The Management Company may from time to time direct the Tenant to pay to the Landlord and the Landlord to collect the Estate Service Charge on behalf of the Management Company.  In the event the Management Company so elects the Tenant shall pay the Estate Service Charge in the manner prescribed in clause 10.9 to the Landlord, and the Landlord shall within 5 working days of receipt forward such sums to the Management Company.

		10.16
	The Estate Service Charge shall not include.

		10.16.1
	any costs relating to the initial construction of the Estate or works solely designed to allow for the extension of the Estate;

		10.16.2
	any fees and expenses attributable to the review of rents payable by the tenants and other occupiers of the Estate or attributable to the letting of any part of the Estate or any disposition or dealing with the Landlord’s interest in the Estate or any part thereof;

		10.16.3
	all costs (including without limitation solicitors surveyors and agents fees and managing agents fees) incurred by or on behalf of the Landlord in the collection of rents or other monies for any occupiers of the Estate and/or any proceedings against any occupier of the Estate; or

		10.16.4
	any costs incurred by the Landlord in carrying out any works precautions or other matters as may be required by the Environment Agency or any other relevant statutory body or local authority to remove or remedy or contain any contamination or other environmental hazard in, under or at any part of the Estate that is capable of being let and occupied on

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terms similar to those of this lease, arising as a result or prior use and occupation of the Estate or part of it by other persons.
		10.17
	The Tenant separately covenants with the Landlord to comply with its obligations under this clause 10.

	11.
	SUPERIOR LEASE SERVICE CHARGE PROVISIONS

To the extent the Superior Landlord carries out any of the Services (as defined in the Superior Leases) under the Superior Leases and charges Service Charge (as defined in the Superior Leases) the Tenant will pay the Landlord on demand any such estimated Service Charge (or a fair proportion thereof) and any balancing sum in accordance with the Superior Leases and the Landlord will promptly supply the Tenant with copies of any demands, Estimates and Certificates (as both those terms are defined in the Superior Leases) provided by the Superior Landlord.
	12.
	PROPERTY INSURANCE

		12.1
	Subject to clause 12.2, the Landlord shall keep the Building insured against loss or damage by the Insured Risks for the sum which the Landlord considers to be its full reinstatement cost (taking inflation of building costs into account).  The Landlord shall not be obliged to insure any fixtures and fittings or other works installed by the Tenant (other than any Mezzanine Floors and the Category A Works to the Mezzanine Floors that have been installed by or with the consent of the Landlord).

		12.2
	The Landlord’s obligation to insure is subject to:

		12.2.1
	any exclusions, limitations, excesses and conditions that may be imposed by the insurers; and

		12.2.2
	insurance being available in the London insurance market on reasonable terms acceptable to the Landlord.

		12.3
	In relation to any insurance effected by the Landlord under this clause, the Landlord shall use reasonable endeavours to procure that the Landlord’s insurer:

		12.3.1
	waives its rights of subrogation against the Tenant and any lawful sub-tenants or occupiers of the Property;

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		12.3.2
	permits the interest of the Tenant to be noted on the policy of insurance either specifically or by way of a general noting of tenants’ interests under the conditions of the insurance policy

Provided That this obligation will not require the Landlord to change its policy where the insurer is not prepared to do so on reasonable terms or on competitive rates.
		12.4
	The Tenant shall pay to the Landlord on demand:

		12.4.1
	the Insurance Rent;

		12.4.2
	any amount that is deducted or disallowed by the insurers pursuant to any excess provision in the insurance policy; and

		12.4.3
	any costs that the Landlord incurs in obtaining a valuation of the Property for insurance purposes, provided not more than once per annum.

		12.5
	The Tenant shall:

		12.5.1
	immediately inform the Landlord and the Superior Landlord if any matter occurs that any insurer or underwriter may treat as material in deciding whether or on what terms to insure or to continue to insure the Building and shall give the Landlord and the Superior Landlord notice of that matter;

		12.5.2
	not do or omit anything as a result of which any policy of insurance of the Building, any Landlord’s Neighbouring Property or any neighbouring property may become void or voidable or otherwise prejudiced, or the payment of any policy money may be withheld, nor (unless the Tenant has previously notified the Landlord and has paid any increased or additional premium) anything as a result of which any increased or additional insurance premium may become payable;

		12.5.3
	comply at all times with the requirements and reasonable recommendations of the insurers which have been notified to the Tenant in writing relating to the Building and the Estate Common Parts;

		12.5.4
	give the Landlord immediate notice upon being made aware of the occurrence of any damage or loss relating to the Property arising from an Insured Risk or of any other event that might affect any insurance policy relating to the Property;

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		12.5.5
	not effect any insurance of the Property (except any plate glass at the Property), but if it becomes entitled to the benefit of any insurance proceeds in respect of the Property (other than in respect of plate glass) pay those proceeds or cause them to be paid to the Landlord; and

		12.5.6
	pay the Landlord an amount equal to any insurance money that the insurers of the Building refuse to pay by reason of any act or omission of the Tenant, its workers, contractors or agents or any person at the Property, Building or the Estate Common Parts with the actual or implied authority of any of them.

		12.6
	The Landlord shall, subject to obtaining all necessary planning and other consents (which it shall use its reasonable endeavours to obtain), use all insurance money received (other than for loss of rent) to repair the damage for which the money has been received or (as the case may be) in rebuilding the Property.  The Landlord shall not be obliged to:

		12.6.1
	provide accommodation identical in layout or design so long as accommodation reasonably equivalent to that previously at the Property is provided;

		12.6.2
	repair or rebuild if the Tenant has failed to pay any monies due under clause 12.5.6 until those monies are paid; or

		12.6.3
	repair or rebuild the Property after a notice has been served pursuant to clause 12.8 or clause 12.9; or

		12.6.4
	rebuild or reinstate tenant’s fitting-out works or any other alterations or additions to the Property (other than any Mezzanine Floors and Category A Works to the Mezzanine Floors that have been installed by or with the consent of the Landlord).

		12.7
	If the Property is damaged or destroyed by an Insured Risk so as to be unfit for occupation and use then, unless the policy of insurance of the Property has been vitiated in whole or in part in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property with the actual or implied authority of any of them, payment of the Annual Rent, or a fair proportion of it according to the nature and extent of the damage, shall be suspended until the date that the Property has been

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reinstated and made fit for occupation and use (as the case may be), or until the end of three years from the date of damage or destruction, if sooner.
		12.8
	If, following damage to or destruction of the Building, the Landlord considers that it is impossible or impractical to reinstate the Building, the Landlord may terminate this lease by giving notice to the Tenant.  On giving notice this lease shall determine but this shall be without prejudice to any right or remedy of the Landlord in respect of any breach of the tenant covenants of this lease.  Any proceeds of the insurance (other than any insurance for plate glass) shall belong to the Landlord.

		12.9
	Unless the policy of insurance of the Property has been vitiated in whole or in part in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property with the actual or implied authority of any of them, the Tenant may terminate this lease by giving notice to the Landlord if, following damage or destruction of the Property by an Insured Risk, the Property has not been reinstated so as to be fit for occupation and use or the Common Parts have not been reinstated so as to make the Property accessible or useable within three years after the date of damage or destruction.  On giving this notice this lease shall determine but this shall be without prejudice to any right or remedy of either party in respect of any breach of the other’s covenants of this lease.  Any proceeds of the insurance (other than any insurance for plate glass) shall belong to the Landlord.

12.10
		12.10.1
	In this clause 12.10 the following words shall have the following meanings:

		12.10.1.1
	“Uninsured Damage” means that the Building has been destroyed or damaged by an Uninsured Risk so as to render the Property inaccessible and/or unfit for beneficial occupation and use; and

		12.10.1.2
	“Uninsured Risk”:  means any risks, or some aspect of any of them, which would be covered by the risks specifically identified in the definition of “Insured Risks” but which are excluded from being covered for the time being by reason of unavailability or withdrawal of cover by the Landlord on the grounds that

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cover cannot be placed on the London Insurance Market with a reputable insurer at reasonably commercial rates and on reasonably commercial conditions or because insurance cover is not available at all.
		12.10.2
	An Insured Risk does not become an Uninsured Risk for the purposes of this clause 12.10 by reason only of:

		12.10.2.1
	normal exclusion provisions in relation to a level of excess liability; or

		12.10.2.2
	rejection by the insurer of liability, or some part of it, due to the act, default or omission of the Tenant or its undertenant, employee licensee or contractor.

		12.10.3
	If there is Uninsured Damage then:

		12.10.3.1
	within 12 months of the damage or destruction in question the Landlord shall give written notice to the Tenant (“Election Notice”) stating whether or not it proposes to rebuild or reinstate the Property;

		12.10.3.2
	if the Election Notice states that the Landlord does propose to rebuild or reinstate the Property then for all the purposes of this lease the Uninsured Damage shall be deemed to have been damage by Insured Risks in respect of which the full insurance monies are recoverable by the Landlord under the insurance policies and the Landlord s obligation to reinstate shall be as set out in clause 12.6, save that the Landlord will not be obliged to rebuild or reinstate tenant’s fitting out works or any other alterations or additions to the Property other than any Mezzanine Floors and Category A Works to the Mezzanine Floors that have been installed by or with the consent of the Landlord;

		12.10.3.3
	if the Election Notice states that the Landlord does not propose to rebuild or reinstate the Property or if no Election Notice is served strictly within the period of 12 months referred to in clause 12.10.3.1 then this lease will determine with immediate effect but without prejudice to any antecedent claim by either party against the other for antecedent breach of any covenants on the part of the Tenant contained herein; and

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		12.10.3.4
	if this lease is determined under clause 12.10.3.3 the Tenant shall be permitted a reasonable time (not exceeding one month) to remove from the Property any fixtures, fittings or equipment belonging to it and shall not be required, to reinstate any alterations or additions made by it nor to yield up the Property in the state of repair and decoration which would (but for the Uninsured Damage) be required by this lease.

		12.10.4
	The Landlord shall only be entitled to include within the Building Service Costs any costs which the Landlord incurs (acting properly) in reinstating any damage or destruction to the Building caused by an Uninsured Risk if:

		12.10.4.1
	the Insured Risk shall have become an Uninsured Risk owing to the act or default of the Tenant or any person deriving title under the Tenant or their respective agents, employees, licensees or contractors; or

		12.10.4.2
	such damage or destruction does not make the Building or the Property or a substantial part of them unfit for occupation or use or inaccessible.

		12.10.5
	If there is Uninsured Damage then payment of the Annual Rent shall be suspended on, and from the date on which the Uninsured Damage occurred (unless this lease determines sooner pursuant to clause 12.10.3.3 (in which case and for the avoidance of doubt the Tenant’s obligation to pay the Annual Rent shall automatically determine))

		12.10.6
	If the Annual Rent has been suspended pursuant to clause 12.10.5, payment of the Annual Rent shall then be suspended until the Uninsured Damage has been reinstated so as to make the Premises fit for occupation and use and accessible.

		12.10.7
	If there is Uninsured Damage the Tenant shall not be liable to repair the Property pursuant to the obligation contained in clause 30.

	13.
	ESTATE COMMON PARTS INSURANCE

		13.1
	Subject to clause 13.2, the Management Company shall keep the Estate Common Parts insured against loss or damage by the Insured Risks for the sum which the Management Company considers to be its full reinstatement cost (taking inflation of building costs into account).

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		13.2
	The Management Company’s obligation to insure is subject to:

		13.2.1
	any exclusions, limitations, excesses and conditions that may be imposed by the insurers; and

		13.2.2
	insurance being available in the London insurance market on reasonable terms acceptable to the Management Company.

		13.3
	The Tenant shall pay to the Management Company on demand:

		13.3.1
	the Insurance Premium;

		13.3.2
	any amount that is deducted or disallowed by the insurers pursuant to any excess provision in the insurance policy; and

		13.3.3
	any costs that the Management Company incurs in obtaining a valuation of the Estate Common Parts for insurance purposes, provided not more than once per annum.

		13.4
	The Tenant shall:

		13.4.1
	immediately inform the Management Company and the Superior Landlord if any matter occurs that any insurer or underwriter may treat as material in deciding whether or on what terms to insure or to continue to insure the Estate Common Parts and shall give the Management Company and the Superior Landlord notice of that matter;

		13.4.2
	not do or omit anything as a result of which any policy of insurance of the Estate Common Parts may become void or voidable or otherwise prejudiced, or the payment of any policy money may be withheld, nor (unless the Tenant has previously notified the Management Company and has paid any increased or additional premium) anything as a result of which any increased or additional insurance premium may become payable;

		13.4.3
	comply at all times with the requirements and reasonable recommendations of the insurers which have been notified to the Tenant in writing relating to the Estate Common Parts;

		13.4.4
	give the Management Company immediate notice upon being made aware of the occurrence of any damage or loss relating to the Estate Common Parts arising from an Insured Risk or of any other event that might affect any insurance policy relating to the Estate Common Parts; and

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		13.4.5
	pay the Management Company an amount equal to any insurance money that the insurers of the Estate Common Parts refuse to pay by reason of any act or omission of the Tenant, its workers, contractors or agents or any person at the Estate Common Parts with the actual or implied authority of any of them.

		13.5
	The Tenant separately covenants with the Landlord to comply with its obligations under this clause 13.

	14.
	RATES AND TAXES

		14.1
	The Tenant shall pay all present and future rates, taxes and other impositions and outgoings payable in respect of the Property, its use and any works carried out there, other than:

		14.1.1
	any taxes payable by the Landlord in connection with any dealing with or disposition of the reversion to this lease; or

		14.1.2
	any taxes, other than VAT and insurance premium tax, payable by the Landlord by reason of the receipt of any of the rents due under this lease.

		14.2
	If any such rates, taxes or other impositions and outgoings are payable in respect of the Property together with other property, the Tenant shall pay a fair and reasonable proportion of the total amount payable.

		14.3
	The Tenant shall not make any proposal to alter the rateable value of the Property or that value as it appears on any draft rating list, without the approval of the Landlord and the Superior Landlord.

		14.4
	If, after the end of the term, either the Landlord or the Superior Landlord loses rating relief (or any similar relief or exemption) because it has been allowed to the Tenant, then the Tenant shall pay the Landlord or the Superior Landlord, as appropriate, an amount equal to the relief or exemption that has been lost.

	15.
	COMMON ITEMS

		15.1
	The Tenant shall comply with all reasonable regulations the Landlord may make and notify to the Tenant in writing from time to time in connection with the use of any of those Service Media forming part of the Estate, structures or other items.

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		15.2
	Except to the extent that such costs are included within the Estate Service Costs or the Building Service Costs, the Tenant must pay to the Landlord on demand a fair proportion of all costs payable by the Landlord for the maintenance, repair, lighting, cleaning and renewal of all Service Media, structures and other items not on or in the Building or Estate but used or capable of being used by the Building or the Estate in common with other land.

	16.
	UTILITIES

		16.1
	The Tenant shall pay all costs in connection with the supply and removal of electricity, gas, water, sewage, telecommunications, data and other services and utilities to or from the Property including standing charges (but excluding any installation or connection costs incurred prior to the date of this lease).

		16.2
	If any of those costs are payable in relation to the Property together with other property, the Tenant shall pay a fair and reasonable proportion of all those costs.

		16.3
	The Tenant shall comply with all statutory requirements relating to the use of those services and utilities.

	17.
	VAT

		17.1
	All sums payable by the Tenant are exclusive of any VAT that may be chargeable.  The Tenant shall pay VAT in respect of all taxable supplies made to it in connection with this lease on the due date for making any payment or, if earlier, the date on which that supply is made for VAT purposes and for which a valid VAT invoice shall be provided.

		17.2
	Every obligation on the Tenant, under or in connection with this lease, to pay the Landlord or Management Company or any other person any sum by way of a refund or indemnity, shall include an obligation to pay an amount equal to any VAT incurred on that sum by the Landlord or the Management Company or other person and for which a valid VAT invoice shall be provided, except to the extent that the Landlord or the Management Company or other person obtains credit for such VAT under the Value Added Tax Act 1994

		17.3
	The Tenant shall not seek to disapply the Landlord’s option to tax the Property or buildings thereon at any point during the term.

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	18.
	DEFAULT INTEREST AND INTEREST

		18.1
	If any Annual Rent or any other money payable by the Tenant under this lease has not been paid within seven days of the due date, whether in the case of the Annual Rent it has been formally demanded or not, the Tenant shall pay the Landlord or (in the case of the Estate Service Charge) the Management Company interest at the Default Interest Rate (both before and after any judgment) on that amount for the period beginning on the due date to and including the date of payment.

		18.2
	If the Landlord (acting reasonably) does not demand or accept any Annual Rent or other money due or tendered under this lease because the Landlord reasonably believes that the Tenant is in breach of any of the tenant covenants of this lease, then the Tenant shall, when that amount is accepted by the Landlord, also pay interest at the Interest Rate on that amount for the period beginning on the date the amount (or each part of it) became due until the date it is accepted by the Landlord.

	19.
	COSTS

The Tenant shall pay the proper costs and expenses of the Landlord including any solicitors’ or other professionals’ costs and expenses (incurred both during and after the end of the term) reasonably and properly incurred in connection with or in the proper contemplation of:
		19.1.1
	the enforcement of the tenant covenants of this lease;

		19.1.2
	serving any notice in connection with this lease under section 146 or 147 of the Law of Property Act 1925 or taking any proceedings under either of those sections, notwithstanding that forfeiture is avoided otherwise than by relief granted by the court;

		19.1.3
	serving any notice in connection with this lease under section 17 of the Landlord and Tenant (Covenants) Act 1995;

		19.1.4
	the proper preparation and service of a schedule of dilapidations in connection with this lease served during or within 4 months of the end of the Contractual Term; and

		19.1.5
	any consent or approval applied for under this lease, whether or not it is granted (save for in a situation where the Landlord unreasonably withholds or delays its consent, having been required by the terms of this lease not to do so).

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	20.
	COMPENSATION ON VACATING

Any right of the Tenant or anyone deriving title under the Tenant to claim compensation from the Landlord on leaving the Property under the Landlord and Tenant Act 1927 or the LTA 1954 is excluded, except to the extent that the legislation prevents that right being excluded.
	21.
	NO DEDUCTION, COUNTERCLAIM OR SET-OFF

The Annual Rent and all other amounts due under this lease shall be paid by the Tenant or any guarantor (as the case may be) in full without any set-off, counterclaim, deduction or withholding (other than any deduction or withholding of tax as required by law).
	22.
	REGISTRATION OF THIS LEASE

		22.1
	Promptly following the grant of this lease, the Tenant shall apply to register this lease at HM Land Registry.  The Tenant shall ensure that any requisitions raised by HM Land Registry in connection with that application are dealt with promptly and properly and the Landlord shall give the Tenant all reasonable assistance in this respect.  Within one month after completion of the registration, the Tenant shall send the Landlord official copies of its title.

		22.2
	The Tenant shall not’

		22.2.1
	apply to HM Land Registry to designate this lease as an exempt information document;

		22.2.2
	object to an application by the Landlord to HM Land Registry to designate this lease as an exempt information document; or

		22.2.3
	where the Landlord wishes to designate this lease as an exempt information document the Tenant shall not apply to register the Lease without simultaneously submitting the Landlord’s application to designate the lease as an exempt information document Provided That the Landlord supplies the Tenant with the Landlord’s completed application and HM Land Registry fee within 10 working days of completion.

		22.3
	In the event that the Tenant fails to apply to register this lease at HM Land Registry within 2 months from the date of this lease the Landlord shall be entitled to submit the requisite Land Registry application as agent for an on behalf of Tenant.

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		22.4
	So as to enable the Landlord to proceed to register this lease at HM Land Registry in accordance with clause 22.3 above:

		22.4.1
	the Tenant will on demand provide the Landlord with the SDLT5 in respect of the Tenant’s SDLT1 Return (if any) submitted by the Tenant;

		22.4.2
	where the Tenant has not submitted an SDLT Return in respect of this lease the Landlord shall be entitled to submit SDLT1 as agent for and on behalf of Tenant and to pay any SDLT which may be assessed on the lease.

		22.5
	The Tenant will on demand pay the Landlord as additional rent an amount equal to any SDLT, Land Registry fees, interest or penalty paid or incurred by the Landlord to enable it to procure registration of this lease at HM Land Registry together with the Landlord’s proper legal fees incurred in connection with the preparation and submission of the SDLT1 return and preparation and submission of the Land Registry application and dealing with any requisitions raised by HM Land Registry in respect of such application.

	23.
	ASSIGNMENTS

		23.1
	The Tenant shall not assign the whole of this lease without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

		23.2
	The Tenant shall not assign part only of this lease

		23.3
	The Landlord and the Tenant agree that for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may give its consent to an assignment subject to all or any of the following conditions:

		23.3.1
	if reasonably required by the Landlord a condition that the assignor enters into an authorised guarantee agreement which if requested by the Landlord:

		23.3.1.1
	is in respect of all the tenant covenants of this lease;

		23.3.1.2
	is in respect of the period beginning with the date the assignee becomes bound by those covenants and ending on the date when the assignee is released from those covenants by virtue of section 5 of the Landlord and Tenant (Covenants) Act 1995;

		23.3.1.3
	imposes principal debtor liability on the assignor;

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		23.3.1.4
	requires (in the event of a disclaimer of liability under this lease) the assignor to enter into a new tenancy for a term equal to the unexpired residue of the Contractual Term; and

		23.3.1.5
	is otherwise in a form reasonably required by the Landlord;

		23.3.2
	where the obligations of the Tenant were guaranteed by a guarantor the execution of the authorised guarantee agreement referred to in sub-clause 23.3.1 by that guarantor and the insertion into that agreement of obligations on the part of that guarantor guaranteeing (to the extent lawful) the Tenant’s obligations therein in such form as the Landlord shall reasonably require

		23.3.3
	if reasonably required by the Landlord a condition that a person of standing acceptable to the Landlord (acting reasonably) enters into a guarantee and indemnity of the tenant covenants of this lease in such form as the Landlord may reasonably require; and/or

		23.3.4
	if reasonably required by the Landlord a condition that the assignee shall (if reasonable) provide a rent deposit of such amount as the landlord may reasonably require plus an amount in lieu of VAT on that sum and enter into a rent deposit deed in such form as the Landlord may reasonably require.

		23.4
	The Landlord and the Tenant agree that for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may refuse its consent to an assignment if any of the following circumstances exist at the date of the Tenant’s application for consent to assign this lease:

		23.4.1
	the Annual Rent due or any other money due and formally demanded under this lease is outstanding (save for in the case of a bona fide dispute as to sums other than the Annual Rent);

		23.4.2
	in the Landlord’s reasonable opinion the assignee is not of sufficient financial standing to enable it to comply with the Tenant’s covenants and conditions contained in this lease;

		23.4.3
	the assignee and the Tenant are group companies within the meaning of section 42 of the LTA 1954 and the assignee is of lower financial standing than the Tenant; or

		23.4.4
	where the proposed assignee is currently guaranteeing the Tenant’s obligations under this lease,

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		23.5
	Nothing in this clause shall prevent the Landlord from giving consent subject to any other reasonable condition, nor from refusing consent to an assignment in any other circumstance where it is reasonable to do so.

	24.
	UNDERLETTINGS

		24.1
	The Tenant shall not underlet the whole or a Permitted Part of the Property except in accordance with this clause nor without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

		24.2
	The Tenant shall not underlet part only of the Property, save for a Permitted Part in accordance and subject to the conditions set out in this clause 24.

		24.3
	The Tenant shall not underlet the Property or a Permitted Part:

		24.3.1
	together with any property or any right over property that is not included within this lease;

		24.3.2
	at a fine or premium or reverse premium; nor

		24.3.3
	allowing any rent free period to the undertenant that exceeds the period as is then usual in the open market in respect of such a letting.

		24.4
	The Tenant shall not underlet the Property or a Permitted Part unless, before the underlease is granted, the Tenant has given the Landlord:

		24.4.1
	a certified copy of the notice served on the undertenant, as required by section 38A(3)(a) of the LTA 1954, applying to the tenancy to be created by the underlease; and

		24.4.2
	a certified copy of the declaration or statutory declaration made by the undertenant in accordance with the requirements of section 38A(3)(b) of the LTA 1954.

		24.5
	Any underletting by the Tenant shall be by deed and shall include:

		24.5.1
	an agreement between the Tenant and the undertenant that the provisions of sections 24 to 28 of the LTA 1954 are excluded from applying to the tenancy created by the underlease;

		24.5.2
	the reservation of a rent which is not less than the open market rental value of the Property (or, if the underletting is of a Permitted Part only, the open market rental value of that Permitted Part) at the date the Property or Permitted Part is underlet and which is payable at the same times as the Annual Rent under this lease (but this shall not prevent an underlease providing for a rent-free period of a length permitted by clause 24.3.3);

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		24.5.3
	provisions for the review of rent at the same dates and on the same basis as the review of rent in this lease, unless the term of the underlease does not extend beyond the next Review Date;

		24.5.4
	a covenant by the undertenant, enforceable by and expressed to be enforceable by the Landlord (as superior landlord at the date of grant) and its successors in title in their own right, to observe and perform the tenant covenants in the underlease and any document that is supplemental or collateral to it and the tenant covenants in this lease, except the covenants to pay the rents reserved by this lease;

		24.5.5
	a covenant by the undertenant (enforceable by and expressed to be enforceable by the Landlord (as superior landlord at the date of grant) and its successors in title in their own right):

		24.5.5.1
	not to assign, underlet or charge the whole of the underlease without the consent of the Landlord (which shall not be unreasonably withheld); and

		24.5.5.2
	not to underlet any part of the underlease or the Property or Permitted Part, nor to assign or charge part only of the underlease or the Property or Permitted Part, or to hold the underlease on trust for any person (except pending registration of a dealing permitted by the underlease at HM Land Registry or by reason only of joint legal ownership); and

		24.5.5.3
	not to permit its underlessee to underlet, part with or share possession or share occupation of the whole or any part of its underlease or the Property or Permitted Part, nor to assign or charge part only of its underlease or the Property or Permitted Part, or to hold its underlease on trust for any person (except pending registration of a dealing permitted by the underlease at HM Land Registry or by reason only of joint legal ownership); and

		24.5.6
	provisions requiring the consent of the Landlord to be obtained in respect of any matter for which the consent of the Landlord is required under this lease, and shall otherwise be consistent with and include tenant covenants no less onerous (other than as to the Annual

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Rent) than those in this lease and in a form approved by the Landlord, such approval not to be unreasonably withheld or delayed.
		24.6
	In relation to any underlease granted by the Tenant, the Tenant shall:

		24.6.1
	not vary the terms of the underlease without the consent of the Landlord, such consent not to be unreasonably withheld or delayed;

		24.6.2
	enforce the tenant covenants in the underlease and not waive any of them nor allow any reduction in the rent payable under the underlease; and

		24.6.3
	ensure that in relation to any rent review the revised rent is not agreed without the approval of the Landlord, such approval not to be unreasonably withheld or delayed.

		24.7
	Any underlease must not include the grant of the Option or any similar provision.

	25.
	SHARING OCCUPATION

The Tenant may share occupation of the Property with any company that is a member of the same group (within the meaning of section 42 of the LTA 1954) as the Tenant for as long as that company remains within that group and Provided That no relationship of landlord and tenant is established by that arrangement.
	26.
	CHARGING

		26.1
	The Tenant shall not charge a part (as distinct from the whole) of the Property.

		26.2
	The Tenant may with the prior written consent of the Landlord (not to be unreasonably withheld or delayed) charge the whole of the Property to a bank or similar financial institution for the purpose of borrowing money on the security of this lease by way of a fixed charge.

		26.3
	The Tenant may without the consent of the Landlord charge the whole of the Property and this lease by way of a floating charge created in the normal course of the Tenant’s business to a Bank of England authorised institution.

	27.
	PROHIBITION OF DEALINGS

Except as expressly permitted by this lease, the Tenant shall not assign, underlet, charge, part with or share possession or share occupation of this lease or the Property or hold this lease on trust for any person (except pending registration of a dealing permitted by this lease at HM Land Registry or by reason only of joint legal ownership).
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	28.
	REGISTRATION AND NOTIFICATION OF DEALINGS AND OCCUPATION

		28.1
	In this clause a Transaction is:

		28.1.1
	any dealing with this lease or the devolution or transmission of, or parting with possession of any interest in it; or

		28.1.2
	the creation of any underlease or other interest out of this lease, or out of any interest, underlease derived from it, and any dealing, devolution or transmission of, or parting with possession of any such interest or underlease; or

		28.1.3
	the making of any other arrangement for the occupation of the Property.

		28.2
	Within one month of completion of the registration of a Transaction (where the same is registrable at HM Land Registry), the Tenant shall send the Landlord official copies of its title (and where applicable of the undertenant’s title).

		28.3
	No later than one month after a Transaction the Tenant shall:

		28.3.1
	give the Landlord’s solicitors and the Management Company notice of the Transaction; and

		28.3.2
	deliver two certified copies of any document effecting the Transaction to the Landlord’s solicitors and the Management Company; and

		28.3.3
	pay the Landlord’s solicitors a registration fee of £75 (plus VAT).

		28.4
	If the Landlord reasonably requests, the Tenant shall promptly supply the Landlord with full details of the occupiers of the Property and the terms upon which they occupy it (but not more than twice in each year of the term)

	29.
	CLOSURE OF THE REGISTERED TITLE OF THIS LEASE

Within one month after the end of the term (and notwithstanding that the term has ended), the Tenant shall make an application to close the registered title of this lease or any entry made against the Landlord’s title to protect the rights granted by this lease and shall ensure that any requisitions raised by HM Land Registry in connection with that application are dealt with promptly and properly and; the Tenant shall notify the Landlord of completion of its application.
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	30.
	REPAIRS

		30.1
	The Tenant shall keep the Property clean and tidy (including cleaning windows once a month) and in good and substantial repair and condition and shall ensure that any Service Media within and exclusively serving the Property is kept in good working order.

		30.2
	Notwithstanding clause 30.1 above, the Tenant shall not be liable to repair the Property to the extent that any disrepair has been caused by an Insured Risk unless and to the extent that the policy of insurance of the Property has been vitiated or any insurance proceeds withheld in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents to any person on the Property with the actual or implied authority of any of them.

	31.
	DECORATION

		31.1
	Subject to clause 30 above, the Tenant shall decorate the Property as often as is reasonably necessary and also in the last three months before the end of the term.

		31.2
	All decoration shall be carried out in a good and proper manner using good quality materials that are appropriate to the Property and the Permitted Use and shall include all appropriate preparatory work.

		31.3
	All decoration carried out in the last three months of the term shall also be carried out to the reasonable satisfaction of the Landlord and using materials, designs and colours approved by the Landlord, such approval not to be unreasonably withheld or delayed.

	32.
	ALTERATIONS

		32.1
	The Tenant shall not make any external or structural alteration or addition and shall not make any opening in any boundary structure of the Property Provided That the Tenant may install Mezzanine Floors which comply with the Mezzanine Specification with the consent of the Landlord (such consent not to be unreasonably withheld or delayed).

		32.2
	The Tenant shall not make any internal, non-structural alteration to the Property without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

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		32.3
	Notwithstanding the provisions of clause 32.2 the Tenant may without the Landlord’s consent erect, remove and relocate internal demountable partitioning and underfloor wiring Provided That:

		32.3.1
	any such works are undertaken in a good and workmanlike manner and in accordance with all laws and all good building and other relevant practices, codes and guidance;

		32.3.2
	the Tenant provides the Landlord with detailed plans at least 21 days prior to the work being carried;

		32.3.3
	the Tenant provides the Landlord with written notification within one month of completion of the work and, if requested by the Landlord, the Tenant supplies the Landlord with plans showing the altered layout of the Property; and

		32.3.4
	the Tenant removes such partitioning and wiring (as applicable) at the end of the term in accordance with clause 34.

		32.4
	The Tenant shall not carry out any alteration to the Property (whether consent is required or not) which would, or may reasonably be expected to, have an adverse effect on the asset rating in any Energy Performance Certificate commissioned in respect of the Property

		32.5
	The Tenant shall not install nor alter the route of any Service Media at the Property without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

		32.6
	The Tenant shall not attach any sign fascia, placard, board, poster or advertisement to the Property so as to be seen from the outside of the Building save as may be approved by the Landlord pursuant to clause 33.

		32.7
	The Tenant shall otherwise comply with the Estate Rules and Regulations in relation to any alterations or additions which the Tenant is permitted to make to the Property pursuant to this clause 34.

	33.
	SIGNS

		33.1
	In this clause Signs include signs, fascia, placards, boards, posters and advertisements.

		33.2
	The Tenant shall not attach any Signs to the exterior of the Property or display any inside the Property so as to be seen from the outside except Signs of a design, size and number and in a position that are appropriate to the Property and the Permitted Use which have previously

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been approved by the Landlord, such approval not to be unreasonably withheld or delayed and are otherwise in accordance with the Landlord’s signage guidelines.
		33.3
	Before the end of the term, the Tenant shall remove any Signs placed by it at the Property and shall make good any damage caused to the Property by that removal.

	34.
	RETURNING THE PROPERTY TO THE LANDLORD

		34.1
	At the end of the term the Tenant shall return the Property to the Landlord in the repair and condition required by this lease unless the New Lease has been granted in accordance with the Schedule to this lease.

		34.2
	Unless the Landlord waives this obligation by serving notice on the Tenant before the end of the term, the Tenant shall remove items it has fixed to the Property, remove any alterations, additions or improvements it has made to the Property (whether carried out before or during the term), other than any:

		34.2.1
	Mezzanine Floors; and/or

		34.2.2
	Category A Works carried out to the Mezzanine Floors; and /or

		34.2.3
	other works listed in Appendix G to the Agreement for Lease;

that have been installed by or with the consent of the Landlord and remove all Hazardous Substances it has introduced to the Property and carry out all associated Remedial Works, to the reasonable satisfaction of the Landlord and make good any damage caused to the Property by that removal to the Landlord’s reasonable satisfaction.  The Landlord’s notice may require the retention or removal and reinstatement in respect of part only of such alterations, additions, improvements or variations.
		34.3
	At the end of the term, the Tenant shall remove from the Property all chattels belonging to or used by it.

		34.4
	The Tenant irrevocably appoints the Landlord to be the Tenant’s agent to store or dispose of any chattels or items it has fixed to the Property and which have been left by the Tenant on the Property for more than one month after the end of the term and which the Landlord has requested the Tenant in writing to remove

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	35.
	USE AND MANAGEMENT OF THE BUILDING AND THE ESTATE

		35.1
	The Tenant shall not use the Property for any purpose other than the Permitted Use.

		35.2
	The Tenant shall not use the Property for any illegal purpose nor for any purpose or in a manner that would cause loss damage injury, nuisance or inconvenience to the Landlord, its tenants or any other owner or occupier of neighbouring property.

		35.3
	The Tenant shall not park anywhere on the Estate other than in the parking spaces designated by the Landlord under clause 4.2.

		35.4
	The Tenant shall not overload any structural part of the Building nor any Service Media at or serving the Property and in particular the Tenant shall not consume any electricity at the Property in excess of 69 kva in respect of Unit 6 and 138 kva in respect of each of Units 7, 8, 9 and 10.

		35.5
	The Tenant shall not at any time install or permit or suffer to be installed on the Property any electrical lamp equipment or appliance that would or would be likely to cause electrical, electromagnetic, mechanical, operational, or other interference.

		35.6
	The Tenant shall not use the Property for any works involving the emission of ionising radiation or for any purposes involving the bringing on or keeping of radioactive material or other Hazardous Substances at the Property unless with the scope of the Control of Substances Hazardous to Health Regulations from time to time.

		35.7
	The Tenant shall not do anything which would damage or contaminate the Property, the Building or the Estate or pollute the Environment or obstruct or damage any Service Media or discharge any deleterious matter (otherwise than in accordance with all statutory requirements) into any Service Media or cause or suffer any contamination on at or under the Property (Provided That the Tenant will not be liable to for any contamination on the Building which is not caused by the Tenant or its employees, undertenants, licensees or occupiers).

		35.8
	The Tenant shall not obstruct any of the Estate Common Parts or the Common Parts or impede the use of them or any other common facilities.

		35.9
	The Tenant must not keep any animal bird or reptile at the Property.

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		35.10
	The Tenant shall observe all regulations relating to the management of the Building and/or the Estate made by the Landlord from time to time in accordance with the principles of good estate management (including the Estate Rules and Regulations as amended from time to time) and notified to the Tenant in writing and shall ensure that its employees agents contractors and visitors observe any restrictions on access to or movement within the Estate which may be imposed by the Landlord from time to time.

		35.11
	Nothing in this lease shall impose or be deemed to impose any restriction on the use of any other Lettable Unit or any neighbouring property.

		35.12
	The Tenant agrees not to raise any objections to any planning permissions submitted by the Landlord to the local planning authority in relation to the Estate.

		35.13
	The Tenant shall ensure that the Landlord has written notice of the names and telephone numbers of at least two key holders of the Property.

	36.
	COMPLIANCE WITH LAWS

		36.1
	The Tenant shall comply with all laws (including the Planning Acts) relating to:

		36.1.1
	the Property and the occupation and use of the Property by the Tenant;

		36.1.2
	the use or operation of all Service Media and machinery and equipment at or serving the Property whether or not used or operated, and shall, where necessary, replace or convert such Service Media within or exclusively serving the Property so that it is capable of lawful use or operation;

		36.1.3
	any works carried out at the Property; and

		36.1.4
	all materials kept at or disposed from the Property.

		36.2
	Without prejudice to any obligation on the Tenant to obtain any consent or approval under this lease, the Tenant shall carry out all works that are required under any law to be carried out at the Property whether by the owner or the occupier.

		36.3
	Within five working days after receipt of any notice or other communication affecting the Property (and whether or not served pursuant to any law) the Tenant shall:

		36.3.1
	send a copy of the relevant document to the Landlord and the Superior Landlord; and

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		36.3.2
	take all steps necessary to comply with the notice or other communication and take any other action in connection with it as the Landlord may reasonably require.

		36.4
	The Tenant shall not apply for any planning permission for the Property without the Landlord’s consent.

		36.5
	The Tenant shall comply with its obligations under the CDM Regulations, including all requirements in relation to the provision and maintenance of a health and safety file.  The Tenant shall maintain the health and safety file for the Property in accordance with the CDM Regulations and shall give it to the Landlord at the end of the term.

		36.6
	The Tenant shall supply all information to the Landlord that the Landlord reasonably requires from time to time to comply with the Landlord’s obligations under the CDM Regulations.

		36.7
	As soon as the Tenant becomes aware of any defect in the Property, it shall give the Landlord notice of it.  The Tenant shall indemnify the Landlord against any liability under the Defective Premises Act 1972 in relation to the Property by reason of any failure of the Tenant to comply with any of the tenant covenants in this lease.

		36.8
	The Tenant shall keep the Property equipped with all fire prevention, detection and fighting machinery and equipment and fire alarms which are required under all relevant laws or required by the insurers of the Property or reasonably recommended by them or reasonably required by the Landlord and shall keep that machinery equipment and alarms properly maintained and available for inspection.

	37.
	ENERGY PERFORMANCE CERTIFICATES

		37.1
	The Tenant shall:

		37.1.1
	cooperate with the Landlord so far as is reasonably necessary to allow the Landlord to obtain an Energy Performance Certificate and Recommendation Report for the Property or the Building including providing the Landlord with copies of any plans or other information held by the Tenant that would assist in obtaining an Energy Performance Certificate; and

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		37.1.2
	allow such access to any Energy Assessor appointed by the Landlord as is reasonably necessary to inspect the Property for the purposes of preparing an Energy Performance Certificate and/or Recommendation Report for the Property or the Building.

		37.2
	The Tenant shall not commission an Energy Performance Certificate for the Property without the Landlord’s consent such consent not to be unreasonably withheld Provided That where the Tenant carries out works or alterations on or to the Property which will impact upon or affect the existing Energy Performance Certificate the Tenant shall obtain a new Energy Performance Certificate at its own cost and promptly provide a copy thereof together with any Recommendation Report to the Landlord.

	38.
	REMEDY BREACHES

		38.1
	The Landlord may enter the Property at reasonable times and on reasonable prior notice to the Tenant to inspect its condition and state of repair and may give the Tenant a notice of any breach of any of the tenant covenants in this lease relating to the condition or repair of the Property.

		38.2
	If the Tenant has not begun any works needed to remedy that breach within 30 days following that notice (or if works are required as a matter of emergency, then immediately) or if the Tenant is not carrying out the works with all due speed, then the Landlord may enter the Property and carry out the works needed.

		38.3
	The proper costs incurred by the Landlord in carrying out any works pursuant to this clause (and any professional fees and any VAT in respect of those costs) shall be a debt due from the Tenant to the Landlord and payable within 14 days of a written demand.

		38.4
	Any action taken by the Landlord pursuant to this clause shall be without prejudice to the Landlord’s other rights, including those under clause 5.

	39.
	ENCROACHMENTS, OBSTRUCTIONS AND ACQUISITION OF RIGHTS

		39.1
	The Tenant shall not grant any right or licence over the Property to a third party nor permit any person to make any encroachment over the Property.

		39.2
	If a third party makes or attempts to make any encroachment over the Property or takes any action by which a right may be acquired over the Property, the Tenant shall:

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		39.2.1
	immediately inform the Landlord upon becoming aware of the same, and shall give the Landlord notice of that encroachment or action; and

		39.2.2
	take all steps (including any proceedings) the Landlord reasonably requires to prevent or license the continuation of that encroachment or action to the extent that such steps are within the Tenant’s control or such encroachment or action has been caused or exacerbated through an act or omission of the Tenant.

		39.3
	The Tenant shall not obstruct the flow of light or air to the Property nor any means of access to the Building nor make any acknowledgement that the flow of light or air to the Property or any other part of the Building or that the means of access to the Building is enjoyed with the consent of any third party.

		39.4
	If any person takes or threatens to take any action to obstruct the flow of light or air to the Property or obstruct the means of access to the Property, the Tenant shall:

		39.4.1
	immediately inform the Landlord upon becoming aware of the same, and shall give the Landlord notice of that action; and

		39.4.2
	take all steps (including any proceedings) the Landlord reasonably requires to prevent or secure the removal of the obstruction to the extent that such steps are within the Tenant’s control or such encroachment or action has been caused or exacerbated through an act or omission of the Tenant.

	40.
	INDEMNITY

The Tenant shall keep the Landlord indemnified against all liabilities, expenses, costs (including but not limited to any solicitors’ or other professionals’ costs and expenses), claims, damages and losses (including but not limited to any diminution in the value of the Landlord’s interest in the Building and/or the Estate and loss of amenity of the Building and/or the Estate) suffered or incurred by the Landlord arising out of or in connection with any breach of any tenant covenants in this lease, or any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property, the Building and/or the Estate Common Parts with the actual or implied authority of any of them.
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	41.
	COVENANT TO COMPLY WITH COVENANTS IN THE SUPERIOR LEASE

The Tenant shall observe and perform the tenant covenants in the Superior Leases (insofar as they relate to the Property and rights granted to the Tenant), except the covenants to pay the rents reserved by the Superior Leases.
	42.
	COVENANT WITH THE SUPERIOR LANDLORD

		42.1
	The Tenant covenants with the Superior Landlord and its successors in title in their own right to observe and perform:

		42.1.1
	the tenant covenants in this lease and any document that is collateral to it; and

		42.1.2
	the tenant covenants in the Superior Leases insofar as they relate to the Property or rights granted to the Tenant except the covenants to pay the rents reserved by the Superior Leases.

		42.2
	Subject to the Tenant paying the rents reserved by this lease and observing the tenant’s covenants, the Landlord shall pay the rents reserved by the Superior Leases and perform the covenants on the part of the tenant contained in the Superior Leases so far as the Tenant is not liable for such performance under the terms of this lease.

		42.3
	At the request and cost of the Tenant, on a full indemnity basis, the Landlord shall use all reasonable endeavours to procure that the Superior Landlord complies with the Superior Landlord’s Covenants during such period as the Superior Leases subsist and, if reasonable, the Landlord may require that the Tenant pay it reasonable security in advance in respect of anticipated costs for enforcing such compliance.

		42.4
	If the Superior Leases (or either of them) are surrendered, the Landlord shall from the date of the surrender perform or procure the performance of obligations equivalent to the Superior Landlord’s Covenants immediately prior to the surrender of the Superior Leases.

	43.
	LANDLORD’S COVENANT FOR QUIET ENJOYMENT

The Landlord covenants with the Tenant, that, so long as the Tenant pays the rents reserved by this lease and complies with its obligations, the Tenant shall have quiet enjoyment of the Property without any lawful interruption by the Landlord or any person claiming under the Landlord, except as otherwise permitted by this lease.
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	44.
	OPTION TO RENEW

The Landlord grants the Option to the Tenant named in this lease (meaning Vaccitech (UK) Limited (company registration number 09973585) only)
	45.
	RE-ENTRY AND FORFEITURE

		45.1
	The Landlord may re-enter the Property (or any part of the Property in the name of the whole) at any time after any of the following occurs:

		45.1.1
	any rent is unpaid 21 days after becoming payable whether it has been formally demanded or not;

		45.1.2
	any breach of any condition of, or tenant covenant, in this lease:

		45.1.3
	an Act of Insolvency.

		45.2
	If the Landlord re-enters the Property (or any part of the Property in the name of the whole) pursuant to this clause, this lease shall immediately end, but without prejudice to any right or remedy of the Landlord in respect of any breach of covenant by the Tenant or any guarantor.

	46.
	DISPUTES UNDER THE SUPERIOR LEASE

Notwithstanding the other terms of this lease, if any dispute, issue, question or matter arising out of or under or relating to the Superior Leases also affects or relates to the provisions of this lease, the determination of that dispute, issue, question or matter pursuant to the provisions of the Superior Leases is to be binding on the Tenant as well as the Landlord for the purposes both of the Superior Leases and this lease Provided That this provision is not to apply to the provisions for the review of rent payable under this lease.
	47.
	JOINT AND SEVERAL LIABILITY

		47.1
	Where the Landlord or the Tenant comprises more than one person, those persons shall be jointly and severally liable for the obligations and liabilities of that party arising under this lease.  The Landlord or the Tenant may take action against, or release or compromise the liability of, or grant time or other indulgence to, any one of those persons comprising the other party without affecting the liability of any other of them.

		47.2
	Where a guarantor comprises more than one person, those persons shall be jointly and severally liable for the obligations and liabilities of a guarantor arising under this lease. The

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Landlord may take action against, or release or compromise the liability of, or grant time or other indulgence to, any one of those persons without affecting the liability of any other of them.
	48.
	LIABILITY

In any case where the facts are or should reasonably be known to the Tenant (save where the facts are or should reasonably be known to the Landlord or Management Company (as applicable)), the Landlord or Management Company (as applicable) shall not be liable to the Tenant for any failure of the Landlord or Management Company (as applicable) to perform any landlord covenant in this lease, unless and until the Tenant has given the Landlord or Management Company (as applicable) notice of the facts that give rise to the failure and the Landlord or Management Company (as applicable) has not remedied the failure within a reasonable time of service of that notice.
	49.
	EXCLUSION OF REPRESENTATIONS

		49.1
	Nothing in this lease constitutes or shall constitute a representation or warranty that the Property may lawfully be used for any purpose allowed by this lease.

		49.2
	Nothing in this clause shall, however, operate to limit or exclude any liability for fraud.

	50.
	NOTICES, CONSENTS AND APPROVALS

		50.1
	Except where this lease specifically states that a notice need not be in writing, any notice given pursuant to this lease shall be in writing.

		50.2
	A written notice shall be delivered by hand or sent by pre-paid first class post or registered post.  A correctly addressed notice sent by pre-paid first class post shall be deemed to have been delivered at the time at which it would have been delivered in the normal course of the post.

		50.3
	Section 196 of the Law of Property Act 1925 shall otherwise apply to notices given under this lease.

		50.4
	Where the consent of the Landlord is required under this lease, a consent shall only be valid if it is given by deed, unless:

		50.4.1
	it is given in writing and signed by a person duly authorised on behalf of the Landlord; and

		50.4.2
	it expressly states that the Landlord waives the requirement for a deed in that particular case.

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If a waiver is given, it shall not affect the requirement for a deed for any other consent
		50.5
	Where the approval of the Landlord is required under this lease, an approval shall only be valid if it is in writing and signed by or on behalf of the Landlord, unless:

		50.5.1
	the approval is being given in a case of emergency; or

		50.5.2
	this lease expressly states that the approval need not be in writing.

		50.6
	If the Landlord gives a consent or approval under this lease, the giving of that consent or approval shall not imply that any consent or approval required from a third party has been obtained, nor shall it obviate the need to obtain any consent or approval from a third party.

		50.7
	Where the consent of the Superior Landlord is required under this lease a consent shall only be valid if it would be valid as a consent given under the Superior Leases.  Where the approval of the Superior Landlord is required under this lease, an approval shall only be valid if it would be valid as an approval given under the Superior Leases.

		50.8
	Where the Tenant requires the consent or approval of the Superior Landlord to any act or omission then, subject to the provisions of clause 1.11 the Landlord shall at the cost of the Tenant use all reasonable endeavours to obtain that consent or approval.

	51.
	GOVERNING LAW AND JURISDICTION

		51.1
	This lease shall be governed by and construed in accordance with the law of England and Wales.

		51.2
	The Landlord and the Tenant (and any guarantor) and the Management Company irrevocably agree to submit to the exclusive jurisdiction of the courts of England and Wales over any claim or matter arising under or in connection with this lease or the legal relationships established by it.

	52.
	ENTIRE AGREEMENT

		52.1
	This lease and any documents annexed to it constitute the whole agreement between the parties and supersede all previous discussions, correspondence, negotiations, arrangements, understandings and agreements between them relating to their subject matter.

		52.2
	Each party acknowledges that in entering into this lease and any documents annexed to it, it does not rely on, and shall have no remedies in respect of, any representation or warranty

​

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​
(whether made innocently or negligently) other than those contained in any written replies that Kingsley Napley LLP has given to any written enquiries raised by Penningtons Manches Cooper before the date of this lease.
		52.3
	Nothing in this lease constitutes or shall constitute a representation or warranty that the Property may lawfully be used for any purpose allowed by this lease.

		52.4
	Nothing in this clause shall limit or exclude any liability for fraud.

	53.
	EXCLUSION OF SECTIONS 24-28 OF THE LTA 1954

		53.1
	The parties confirm that:

		53.1.1
	the Landlord served a notice on the Tenant, as required by section 38A(3)(a) of the LTA 1954, applying to the tenancy created by this lease, before the Agreement for Lease was entered into;

		53.1.2
	 Justin Winterbottom who was duly authorised by the Tenant to do so made a statutory declaration dated 31st August 2021 in accordance with the requirements of section 38A(3)(b) of the LTA 1954; and

		53.2
	The parties agree that the provisions of sections 24 to 28 of the LTA 1954 are excluded in relation to the tenancy created by this lease.

	54.
	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

Except for the Superior Landlord and as provided in clause 42 a person who is not a party to this lease shall not have any rights under or in connection with this lease by virtue of the Contracts (Rights of Third Parties) Act 1999.
	55.
	LANDLORD AND TENANT (COVENANTS) ACT 1995

This lease creates a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995.
This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.
​
​

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​
SCHEDULE
The Option
1.DEFINITIONS
1.1Completion Date:  the date determined in accordance with paragraph 2.6.
1.1Landlord’s Solicitor:  Kingsley Napley LLP of 20 Bonhill Street, London EC2A 4DN
(Ref:  IXS/59261.90) or any other solicitor whose details may be notified in writing from time to time by the Landlord to the Tenant.
	1.2
	New Lease:  a lease of the Property in the form annexed hereto at Appendix 3 subject to any amendments reasonably required by the Landlord to reflect any changes in legislation.

1.3Option Notice:  written notice exercising the Option in accordance with the terms of this Schedule.
1.4Option Period:  the period from and including 3rd September 2029  up to and including 3rd March 2031
	1.5
	Tenant:  for the purposes of this Schedule, the ‘Tenant’ means Vaccitech (UK) Limited (company registration number 09973585) only.

2.OPTION TO RENEW
2.1The Landlord grants the Tenant, during the Option Period, an option to take the New Lease.
	2.2
	The Tenant may exercise the Option at any time during the Option Period by serving an Option Notice on the Landlord.  The Option Notice must:

		2.2.1
	be given in accordance with this Schedule;

		2.2.2
	exercise the Option in respect of the whole of the Property and not in respect of part only.

	2.3
	The service of the Option Notice by the Tenant shall be of no effect if, at the date of service of the Option Notice or at the Completion Date, there is a subsisting material breach of any of the tenant covenants of this lease or any Annual Rent due or any other money due and formally demanded under this Lease is outstanding (save for in the case of a bona fide dispute as to sums other than the Annual Rent).

​

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​
	2.4
	If the Option is exercised in accordance with the terms of this Schedule, the Landlord shall grant to the Tenant and the Tenant shall accept from the Landlord the New Lease on the Completion Date, provided that:

		2.4.1
	the Tenant cannot require the Landlord to grant the New Lease to any person other than the Tenant;

		2.4.2
	no premium is payable for the grant of the New Lease;

		2.4.3
	the Tenant must execute and deliver the counterpart New Lease to the Landlord’s Solicitor at least 5 working days prior to the Completion Date

	2.5
	The parties confirm that:

		2.5.1
	the Landlord served a notice on the Tenant, as required by section 38A(3)(a) of the LTA 1954 and which applies to the tenancy to be created by the New Lease, before the Agreement for Lease was entered into; and

		2.5.2
	Justin Winterbottom who was duly authorised by the Tenant to do so, made a statutory declaration dated 31st August 2021 in accordance with the requirements of section 38A(3)(b) of the LTA 1954

	2.6
	Completion of the New Lease shall take place on the date 20 working days after the date of service of the Option Notice

	2.7
	In the New Lease:

		2.7.1
	the “Contractual Term” shall be a term of ten years from and including the “Term Commencement Date” to and including the date immediately prior to the tenth anniversary of the “Term Commencement Date”.

		2.7.2
	the ‘Term Commencement Date” shall be the date immediately following the expiry date of the Contractual Term under this lease.

		2.7.3
	The “Annual Rent” shall be at an initial rate equal to the Annual Rent payable under this lease following the implementation of the review under clause 8 of this lease.

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​
		2.7.4
	The “Review Dates” shall be the Term Commencement Date and the fifth anniversary of the Term Commencement Date.

	2.8
	If the Option is not exercised in accordance with the terms of this Schedule then, immediately after the expiry of the Option Period, the Tenant shall remove all entries relating to the Option registered against the Landlord’s title to the Property.

	2.9
	For the avoidance of doubt if this lease is determined (other than by effluxion of time or in any case where relief from forfeiture of this Lease is granted by the Court) then the Option will become absolutely void.

	2.10
	This Option is to be of no effect if the Tenant fails to protect it by notice in the register of the Landlord’s title number ON347485 under the Land Registration Act 2002 within 21 working days from the date of this lease.

​

- 68 -

	​

	​

	​

	​

	​
	    
	​

	EXECUTED AS A DEED by THE HARWELL
SCIENCE AND INNOVATION CAMPUS
GENERAL PARTNER LIMITED as general partner
for The Harwell Science and Innovation
Campus Limited Partnership acting by a director in
the presence of:
​
	)
)
)
)
)
	​
​
/s/ Dominic Williamson
Dominic Williamson
Director

	Witness
Signature
	/s/ Veronica Estrada
	​
	​

	​
	​
	​
	​

	Name
	Veronica Estrada
	​
	​

	​
	​
	​
	​

	Address
	One Canada Square

Level 25

London, E145AA
​
	​
	​

	Occupation
	Executive Assistant
	​
	​

	​
	​
	​
	​

	​
	    
	​

	EXECUTED AS A DEED by THE HARWELL 
SCIENCE AND INNOVATION CAMPUS 
NOMINEE LIMITED as nominee for the Harwell 
Harwell Science and Innovation Campus 
Limited Partnership acting by a director in 
the presence of: 
​
	)
)
)
)
)
	​
​
/s/ Dominic Williamson
Dominic Williamson
Director

	Witness
Signature
	/s/ Veronica Estrada
	​
	​

	​
	​
	​
	​

	Name
	Veronica Estrada
	​
	​

	​
	​
	​
	​

	Address
	One Canada Square

Level 25

London E145AA
​
	​
	​

	Occupation
	Executive Assistant
	​
	​

​

- 69 -

	​
	​
	    
	​

	COUNTERPART 

EXECUTED AS A DEED by
VACCITECH (UK) LIMITED
acting by a director in the presence of:
	​
	​
​
/s/ William Enright
William Enright
Chief Executive Officer

	​
	​
	​

	Witness
Signature
	/s/ Christopher Ellis
	​
	​

	​
	​
	​
	​

	Name
	Christopher Ellis
	​
	​

	​
	​
	​
	​

	Address
	6 Horsa Lane

Chilton, Didcot

Oxfordshire, OX11 0UE
​
	​
	​

	Occupation
	C.O.O
	​
	​

​

- 70 -

​
Appendix 1
Plan 1 (Demise Plan)
​
​

- 71 -

​
Appendix 2
Plan 2 (Estate Plan)
​
​

- 72 -

​
Appendix 3
New Lease (Option)
​
​

- 73 -

DATED​ ​20[  ]
​
LEASE
relating to
Units 6, 7, 8, 9 and 10
Zeus Building
Harwell Science and Innovation Campus
Harwell
Didcot
Oxfordshire
OX11 0RL
(1)[THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP A LIMITED PARTNERSHIP ACTING BY ITS GENERAL PARTNER THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED AND THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED IN ITS CAPACITY AS NOMINEE FOR THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP]
(2)VACCITECH (UK) LIMITED
(3)[THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP A LIMITED PARTNERSHIP ACTING BY ITS GENERAL PARTNER THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED AND THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED IN ITS CAPACITY AS NOMINEE FOR THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP]

Kingsley Napley LLP
20 Bonhill Street
London
EC2A 4DN
Tel:  +44 (0)20 7814 1200
Ref:  IXS/59261 -90
​
​
​

LAND REGISTRY PRESCRIBED CLAUSES
	

	​

	​

	LR1. Date of lease
	  
	​

	LR2. Title number(s)
	​
	LR2.1 Landlord’s title number(s)
ON347485
LR2.2 Other title numbers
ON359613

	LR3. Parties to this lease
	​
	Landlord
[THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU]
Tenant
VACCITECH (UK) LIMITED (company registration number 09973585) whose registered office is at The Schrodinger Building, 2nd Floor, Heatley Road, Oxford Science Park, Oxford, Oxfordshire OX4 4GE
Management Company
[THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU]
Other parties
None

​
​

- 1 -

​
	

	​

	​
​

	LR4 Property
	​
	In the case of a conflict between this clause and the remainder of this lease then, for the purposes of registration, this clause shall prevail
See the definition or "Property" in clause 1.1 of this lease

	LR5. Prescribed statements etc.
	​
	LR5.1 Statements prescribed under rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban Development Act 1993) of the Land Registration Rules 2003
None
LR5.2 This lease is made under, or by reference to, provisions of
None

	LR6. Term for which the Property is leased.
	​
	The term as specified in this lease at clause 1.1 in the definition of “Contractual Term”

	LR7. Premium
	​
	None

	LR8. Prohibitions or restrictions on disposing of this lease
	​
	This lease contains a provision that prohibits or restricts dispositions

	LR9. Rights of acquisition etc.
	​
	LR9.1 Tenants contractual rights to renew this lease, to acquire the reversion or another lease of the Property, or to acquire an interest in other land
Cause 44 of this lease and the Schedule
LR9.2 Tenant’s covenant to (or offer to) surrender this lease
None
LR9.3 Landlord’s contractual rights to acquire this lease
None

	LR10. Restrictive covenants given in this lease by the Landlord in respect of land other than the Property
	​
	None

	LR12. Estate rentcharge burdening the Property
	​
	None

	LR13. Application for standard form of restriction.
	​
	None

	LR14 Declaration of trust where there is more than one person comprising the Tenant
	​
	Not applicable

​
​

- 2 -

​
THIS LEASE is dated20[]
PARTIES
	(1)
	[THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU as aforesaid] (the Landlord);

	(2)
	VACCITECH (UK) LIMITED (company registration number 09973585) whose registered office is at The Schrodinger Building, 2nd Floor, Heatley Road, Oxford Science Park, Oxford, Oxfordshire OX4 4GE (the Tenant); and

	(3)
	[THE HARWELL SCIENCE AND INNOVATION CAMPUS GENERAL PARTNER LIMITED (company registration number:  6456598) and THE HARWELL SCIENCE AND INNOVATION CAMPUS NOMINEE LIMITED (company registration number:  6539339) both of 10th Floor, 5 Churchill Place, London E14 5HU acting as the General Partner and Nominee respectively for THE HARWELL SCIENCE AND INNOVATION CAMPUS LIMITED PARTNERSHIP (company registration number:  LP013124) of 10th Floor, 5 Churchill Place, London E14 5HU] as aforesaid (the Management Company).

BACKGROUND
By virtue of the Superior Leases the Landlord has long leases of the Building and has agreed to grant the Tenant an underlease of the Property on the terms contained in this agreement.
AGREED TERMS
1.INTERPRETATION
1.1The definitions and rules of interpretation set out in this clause apply to this lease.
1987 Order:  the Town and Country Planning (Use Classes) Order 1987.
2020 Regulations:  the Town and Country Planning (Use Classes) Amendment (England) Regulations 2020.
​

- 3 -

​
Account Date:  31st March in every year or such other date as the Landlord may from time to time determine and notify to the Tenant in writing.
Act of Insolvency:
		(a)
	the making of any voluntary arrangement or any other compromise or arrangement for the benefit of any creditors of the Tenant or any guarantor;

		(b)
	the making of an administration order in relation to the Tenant or any guarantor;

		(c)
	the appointment of an administrator in relation to the Tenant or any guarantor;

		(d)
	the appointment of a receiver or manager or an administrative receiver in relation to any property or income of the Tenant or any guarantor;

		(e)
	the commencement of a voluntary winding-up in respect of the Tenant or any guarantor, except a winding-up for the purpose of amalgamation or reconstruction of a solvent company in respect of which a statutory declaration of solvency has been filed with the Registrar of Companies;

		(f)
	the making of a winding-up order in respect of the Tenant or any guarantor;

		(g)
	the striking off of the Tenant or any guarantor from the Register of Companies;

		(h)
	the Tenant or any guarantor otherwise ceasing to exist (but excluding where the Tenant or any guarantor dies);

		(i)
	the making of a bankruptcy order against the Tenant or any guarantor; or

		(j)
	the Tenant has a mortgagee or other chargee which takes possession or exercises any power of sale.

The paragraphs above shall apply in relation to a partnership or limited partnership (as defined in the Partnership Act 1890 and the Limited Partnerships Act 1907 respectively) subject to the modifications referred to in the Insolvent Partnerships Order 1994 (SI 1994/2421) (as amended), and a limited liability partnership (as defined in the Limited Liability Partnerships Act 2000) subject to the modifications referred to in the Limited Liability Partnerships Regulations 2001 (SI 2001/1090) (as amended).
​

- 4 -

​
Act of Insolvency includes any analogous proceedings or events that may be taken pursuant to the legislation of another jurisdiction in relation to a tenant or guarantor incorporated or domiciled in such relevant jurisdiction.
Agreement for Lease:  the agreement for lease in respect of the Property dated [] 2021 and made between (1) the Landlord and (2) the Tenant.
Annual Rent:  rent at an initial rate of £[        ] per annum and then as revised pursuant to this lease.
Building:  the land and buildings known as Zeus on the Estate and shown edged purple on Plan 1 including:
(a)all additions and alterations that may be made to it;
(b)all Common Parts;
		(c)
	any Service Media that serve the Building and other premises where these are not owned by a utility company; and

(d)any areas used and enjoyed with it;
Provided That both the extent and the boundaries of the Building may be increased from time to time including (without limitation) the intention to add an additional car park to serve the above mentioned buildings.
Building Services:  means the services listed in clause 9.1.
Building Service Charge:  a fair and due proportion applicable to the Property as determined by the Landlord’s Surveyor (acting reasonably) of all Building Service Costs properly incurred by the Landlord in the provision of the Building Services.
Building Service Charge Year:  is the annual accounting period relating to the Building Services beginning on 1 April 20[  ] and each subsequent year during the term or such other period as the Landlord may from time to time determine.
Building Service Costs:  the costs listed in clause 9.2.
Common Parts:  the Building other than the Property and North Block.
​

- 5 -

​
Common Roads:  the roads and footpaths within those parts of the Estate which are intended for the common use and benefit of occupiers of the Estate as varied from time to time by the Landlord and/or the Superior Landlord as appropriate in the interests of good estate management.
Contractual Term:  a term of ten years from and including the Term Commencement Date to and including [] 20[  ].
CDM Regulations:  the Construction (Design and Management) Regulations 2015 as amended or as shall be superseded from time to time.
Default Interest Rate:  three percentage points above the Interest Rate.
Energy Assessor:  an individual who is a member of an accreditation scheme approved by the Secretary of State in accordance with regulation 22 of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118) or regulation 30 of the Building Regulations 2010 (SI 2010/2214).
Energy Performance Certificate:  a certificate as defined in regulation 2(1) of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118).
Environment:  means the natural and man-made environment, including all or any of the following media, namely air (including air within buildings and air within other natural man-made structures above or below ground), water (including water under or within land or drains or sewers) and land and any living organisms (including man) or systems supported by those media.
Estate:  the estate forming part of the Harwell Science and Innovation Campus Harwell Oxfordshire from time to time the current extent of which is shown edged blue on Plan 2.
Estate Common Parts:  the Common Roads and Service Media, the accesses, landscaped areas, car parks, estate management offices and other areas or amenities on the Estate or outside the Estate but serving or otherwise benefiting the Estate as a whole which are from time to time provided or designated for the common amenity or benefit of the owners or occupiers of the Estate.
Estate Rules and Regulations:  means the document containing the rules and regulations stipulated by the Landlord and the Management Company relating to the Property and the Estate headed “Estate Rules and Regulations 2020” as (the Landlord or the Management Company, as appropriate, acting reasonably) may vary or reissue from time to time.
​

- 6 -

​
Estate Services:  means the services listed in clause 10.1.
Estate Service Charge:  a fair and due proportion applicable to the Property as determined by the Management Company or its surveyor (acting reasonably) of all Estate Service Costs properly incurred by the Management Company in the provision of the Estate Services.
Estate Service Charge Year:  is the annual accounting period relating to the Estate Services beginning on 1 April 20[  ] and each subsequent year during the term or such other period as the Management Company may from time to time determine.
Estate Service Costs:  the costs listed in clause 10.2.
Group Undertaking:  a group undertaking of the Landlord as that expression is defined in Section 1161 of the Companies Act 2006.
Harm:  means harm to the Environment, and in the case of man includes offence caused to any of his senses or harm to his property.
Hazardous Substances:  means any material, substance or organism which, alone or in combination with others, is capable of causing Harm.
Insurance Premium:  a fair proportion of the aggregate in each year of the gross cost of the premium before any discount or commission for the insurance of:
		(a)
	the Estate Common Parts for their full reinstatement cost (taking inflation of building costs into account) against loss or damage by or in consequence of the Insured Risks, including costs of demolition, site clearance, site protection and shoring up, professionals’ and statutory fees and incidental expenses, the cost of any work which may be required under any law and VAT in respect of al’ those costs, fees and expenses; and

		(b)
	public liability in relation to the Estate Common Pans; together with any insurance premium tax payable on the above.

Insurance Rent:  the aggregate in each year of a fair proportion of the gross cost of the premium before any discount or commission for the insurance of:
		(a)
	the Building, other than any plate glass (if any), for its full reinstatement cost (taking inflation of building costs into account) against loss or damage by or in consequence of the Insured Risks, including costs of demolition, site clearance, site protection and shoring-up,

​

- 7 -

​
professionals’ and statutory fees and incidental expenses, the cost of any work which may be required under any law and VAT in respect of all those costs, fees and expenses; and
		(b)
	loss of Annual Rent from the Property for three (3) years; together with any insurance premium tax payable on the above.

Insured Risks:  means fire, explosion, lightning, earthquake, storm, subsidence ground slip heave, flood, bursting and overflowing or water tanks, apparatus or pipes, impact by aircraft and articles dropped from them, impact by vehicles, riot, civil commotion, terrorism and any other risks against which the Landlord or Management Company (as applicable) reasonably decides to insure against from time to time and in respect of the Building or Estate Common Parts (as applicable) any other risks against which the Landlord reasonably decides to insure against from time to time and Insured Risk means any one of the Insured Risks.
Interest Rate:  interest at the base rate from time to time of Barclays Bank Plc, or if that base rate stops being used or published then at a reasonably comparable commercial rate reasonably determined by the Landlord.
Internal Area:  the gross internal area in square feet as calculated in accordance with the principles of the RICS Code of Measuring Practice 6th edition.
Landlord’s Neighbouring Property:  each and every part of the adjoining and neighbouring property in which the Landlord or a Group Undertaking and/or the Superior Landlord has an interest and to the extent possible any neighbouring or adjoining property in which the Landlord or a Group Undertaking and/or the Superior Landlord acquires an interest during the term.
Lettable Unit:  any part of the Building (including any floor or part of a floor) other than the Property that is capable of being let and occupied on terms similar to those of this lease.
LTA 1954:  the Landlord and Tenant Act 1954.
North Block:  The part of the Building that comprises Units 1, 2, 3, 4 and 5, as shown edged orange on Plan 1, but excluding any Service Media in, on, under or over those units (whether in existence at the date of this lease or installed in the future) that are used by any part of the Property.
Permitted Part:  one or more individual units comprising the whole of Unit 6, 7, 8, 9 and/or 10.
​

- 8 -

​
Permitted Use:  offices and laboratories within Use Class E of the 1987 Order as amended by the 2020 Regulations at [the date of the Previous Lease] and ancillary office uses, or where the 2020 Regulations are repealed or quashed or otherwise no longer apply then Permitted Use shall mean offices and laboratories within class B1 of the 1987 Order (as at 31 August 2020) and ancillary offices uses Provided That in either case such use falls within the Permitted Use as defined in the Superior Leases.
Plan 1:  the plan attached to this lease at Appendix 1.
Plan 2:  the plan attached to this lease at Appendix 2.
Planning Acts:  The Town and Country Planning Act 1990, the Planning (Listed Buildings and Conservation Areas) Act 1990, the Planning (Consequential Provisions) Act 1990, the Planning and Compensation Act 1991 and the Planning and Compulsory Purchase Act 2004.
Previous Lease:  the Lease of the Property dated [] 2021 and made between (1) The Harwell Science and Innovation Campus Limited Partnership a Limited Partnership acting by its general partner The Harwell Science and Innovation Campus General Partner Limited and The Harwell Science And Innovation Campus Nominee Limited in its capacity As nominee for The Harwell Science And Innovation Campus Limited Partnership (1) Vaccitech (UK) Limited and (3) The Harwell Science and Innovation Campus Limited Partnership a Limited Partnership acting by its general partner The Harwell Science and Innovation Campus General Partner Limited and The Harwell Science And Innovation Campus Nominee Limited in its capacity As nominee for The Harwell Science And Innovation Campus Limited Partnership.
Property:  Units 6, 7, 8, 9 and 10 of the Building, as shown edged red on Plan 1:
		(a)
	including any mezzanine floor installed by either the Landlord or the Tenant before or after the date of this lease, but excluding any Service Media in, on, under or over those units (whether in existence at the date of this lease or installed in the future) that are used by those units in common with any other part of the Estate; but

		(b)
	excluding the structure of the roof connecting the Property and North Block.

Quarter Days:  1 January, 1 April, 1 July and 1 October and Quarter Day means any one of them.
​

- 9 -

​
Recommendation Report:  a report as defined in regulation 4 of the Energy Performance of Buildings (England and Wales) Regulations 2012 (SI 2012/3118).
Regulatory Authority:  any body exercising regulatory power or authority and shall include such authority given in or by order of a court.
Remedial Works:  any works which are lawfully required by a relevant Regulatory Authority or by the Landlord acting reasonably to be carried out to remove, remedy, clean-up, abate, contain or ameliorate the effects of any Hazardous Substances.
Rent Commencement Date:  the Term Commencement Date.
Rent Payment Dates:  the Quarter Days in each year.
Rent Review Specification:  the specification annexed to this Lease at Appendix 3.
Reservations:  all of the rights excepted, reserved and granted to the Landlord by this lease.
Review Dates:  the Term Commencement Date and [fifth anniversary of the Term Commencement Date].
Rights:  the rights granted to the Tenant in clause 4.
Service Media:  all media for the supply or removal of heat, electricity, gas, water, sewage, air conditioning energy, telecommunications, data and all other services and utilities and all structures, machinery and equipment ancillary to those media.
Superior Landlord:  the landlord for the time being of the Superior Leases.
Superior Landlord’s Covenants:  the obligations in the Superior Leases to be observed by the Superior Landlord.
Superior Leases:  the leases by virtue of which the Landlord holds the Building dated:
		(a)
	14th February 2019 and made between The United Kingdom Atomic Energy Authority (1) and the Landlord (2) as registered at HM Land Registry with title number ON347485 any documents made supplemental to it; and

		(b)
	29 September 2020 and made between The United Kingdom Atomic Energy Authority (1) and the Landlord (2) and which is being registered at HM Land Registry with title number ON359613 and any documents made supplemental to it.

​

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Superior Lease Service Charge:  the service charge due under the Superior Leases and payable pursuant to clause 11
Term Commencement Date:  [] 2031.
Third Party Rights:  all rights, covenants and restrictions affecting the Property including the matters referred to in the property register and charges register of title number ON347485 and the Superior Leases so far as they shall relate to the Property and remain subsisting.
VAT:  value added tax chargeable under the Value Added Tax ACT 1994 or any similar replacement or additional tax.
		1.2
	The expressions “Category A Works”, “Mezzanine Floors” and “Mezzanine Specification” shall have the meanings given to them in the Agreement for Lease

		1.3
	A reference to the Superior Leases is a reference to the superior leases and any deed, licence, consent, approval or other instrument supplemental to them and also any leasehold reversion (whether immediate or not) to such leases.  A reference to this lease, except a reference to the date of this lease or to the grant of the lease, is a reference to this deed and any deed, licence, consent, approval or other instrument supplemental to it.

		1.4
	A reference to the Superior Landlord includes a reference to the person entitled to the immediate reversion to the Superior Leases.  A reference to the Landlord includes a reference to the person entitled to the immediate reversion to this lease.  A reference to the Tenant includes a reference to its successors in title and assigns.  A reference to a guarantor is to any guarantor of the tenant covenants of this lease including a guarantor who has entered into an authorised guarantee agreement.

		1.5
	Where the Tenant is two or more persons, the obligations expressed to be made by or with the Tenant are deemed to be made by or with the Tenant jointly and severally and the liability of the Tenant shall be joint and several.

		1.6
	In relation to any payment, unless otherwise expressly stated a reference to a fair proportion is to a fair and reasonable proportion of the total amount payable, determined conclusively (except as to questions of law) by the Landlord or the Management Company (as applicable) or their respective surveyors acting reasonably.

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		1.7
	The expressions landlord covenant and tenant covenant each has the meaning given to it by the Landlord and Tenant (Covenants) Act 1995.

		1.8
	Unless the context otherwise requires, references to the Estate, Building, the Common Parts, the Estate Common Parts and the Property are to the whole and any part of them or it.

		1.9
	A reference to the term is to the Contractual Term.

		1.10
	A reference to the end of the term is to the end of the term however it ends.

		1.11
	References to the consent of the Landlord are to the consent of the Landlord given in accordance with clause 49.4 and references to the approval of the Landlord are to the approval of the Landlord given in accordance with clause 49.5.  References to any consent or approval required from the Landlord shall be construed as also including a requirement to obtain the consent or approval of the Superior Landlord where such consent or approval is required under the terms of the Superior, Leases except that nothing in this lease shall be construed as imposing on the Superior Landlord any obligation (or indicating that such an obligation is imposed on the Superior Landlord by the terms of the Superior Leases) not unreasonably to refuse any such consent.

		1.12
	A working day is any day which is not a Saturday, a Sunday, a bank holiday or a public holiday in England and Wales.

		1.13
	Unless otherwise specified, a reference to a particular law is a reference to it as it is in force for the time being, taking account of any amendment, extension, application or re-enactment and includes any subordinate laws for the time being in force made under it and all orders, notices, codes of practice and guidance made under it.

		1.14
	A reference to laws in general is to all local, national and directly applicable supranational laws in force for the time being, taking account of any amendment, extension, application or re-enactment and includes any subordinate laws for the time being in force made under them and all orders, notices, codes of practice and guidance made under them.

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		1.15
	Any obligation in this lease on the Tenant not to do something includes an obligation not to agree to or suffer that thing to be done and an obligation to use reasonable endeavours to prevent that thing being done by another person.

		1.16
	Where the Landlord or the Tenant or the Management Company covenant to do something they shall be deemed to fulfil that obligation if they procure that it is done.

		1.17
	Unless the context otherwise requires, where the words include(s) or including are used in this lease, they are deemed to have the words “without limitation” following them.

		1.18
	A person includes a corporate or unincorporated body.

		1.19
	References to writing or written do not include faxes or email.

		1.20
	Except where a contrary intention appears, a reference to a clause is a reference to a clause of this lease.

		1.21
	Clause headings do not affect the interpretation of this lease.

		1.22
	The Management Company enters into this lease as a management company within the meaning of section 12 of the Landlord and Tenant (Covenants) Act 1995.

		1.23
	The Management Company (as may be appropriate) includes its successors in title to the Common Roads and to the signage and Service Media on the Estate Common Parts.

2.GRANT
		2.1
	The Landlord with full title guarantee lets the Property to the Tenant for the Contractual Term.

		2.2
	The grant is made together with the Rights, excepting and reserving to the Landlord the Reservations, and subject to the Third Party Rights.

		2.3
	The grant is made with the Tenant paying the following as rent to the Landlord:

2.3.1the Annual Rent;
2.3.2all interest payable by the Tenant to the Landlord under this lease;
2.3.3the Building Service Charge;
2.3.4the Insurance Rent;
2.3.5the Superior Lease Service Charge;
2.3.6all other sums due from the Tenant to the Landlord under this lease; and
2.3.7all VAT chargeable on the other rents set out in this clause 2.3.
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3.TENANT COVENANTS
The Tenant covenants:
		3.1
	with the Landlord to observe and perform all the tenants covenants in this lease; and

		3.2
	with the Management Company to observe and perform all the covenants on the part of the Tenant in this lease in favour of the Management Company;

in each case during the term or (if earlier) until the Tenant is released from the tenant covenants of this lease by virtue of the Landlord and Tenant (Covenants) Act 1995.
4.RIGHTS GRANTED TO THE TENANT
		4.1
	Except as mentioned in clause 4.2, neither the grant of this lease nor anything in it confers any right over the Landlord’s Neighbouring Property or any other neighbouring property nor is to be taken to show that the Tenant may have any right over the Landlord’s Neighbouring Property or any other neighbouring property, and section 62 of the Law of Property Act 1925 does not apply to this lease.

		4.2
	The Landlord grants to the Tenant and all those authorised by the Tenant:-

		4.2.1
	the right to pass and re-pass to and from the Property and the parking spaces referred to in clause 4.2.3 at all times with or without vehicles over the Common Roads within the Estate (to the extent that the Landlord is entitled to grant such right and subject to any Third Party Rights);

		4.2.2
	the right to use the Common Parts for access to and egress from the Property;

		4.2.3
	the right to park 19 private motor cars or motorbikes belonging to the Tenant, its employees and visitors in the spaces shown coloured blue on Plan 1 or such alternative spaces on the Estate as the Landlord may designate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management;

		4.2.4
	the right to park 25 private motor cars or motorbikes belonging to the Tenant, its employees and visitors in such parking spaces on the Estate as the Landlord may designate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management, Provided That they are no further than 500 metres from the Property;

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		4.2.5
	the right to install electric charging points within the parking spaces referred to in clause 4.2.3 with the prior consent of the Landlord, such consent not to be unreasonably withheld or delayed, Provided That the electricity consumed, when included with the consumption of electricity at the Property, shall not exceed the figures set out in clause 35.4 of this lease;

		4.2.6
	the right on a first come first served basis to park private motor cars or motorbikes belonging to the Tenant, its employees and visitors in the undesignated common car parks on the Estate as the Landlord may allocate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management;

		4.2.7
	the right to use such cycle parking facilities on the Common Parts as the Landlord may designate from time to time in the Landlord’s absolute discretion in accordance with the principles of good estate management;

		4.2.8
	the non-exclusive right to use such of the accessible and electric vehicle car parking spaces shown indicatively coloured yellow and coloured green respectively on Plan 1 as may be allocated for such use by the Landlord in the Landlord’s absolute discretion;

		4.2.9
	the right at all times to use the waste receptacles provided by the Landlord to be located on such area of the external Common Parts as the Landlord shall allocate and provide for that purpose from time to time for the purpose of conventional waste disposal only but not for any specialist or recycling waste the disposal arrangements for which shall be the responsibility of the Tenant;

		4.2.10
	the right to the free and uninterrupted passage and running of services through the Service Media in or under the Building and other parts of the Estate that serve (but do not form part of the Property) which are in existence at the date of this lease or are installed or constructed during the term;

		4.2.11
	the right to support and protection from the Common Parts to the extent that the Common Parts provide support and protection to the Property at the date of this lease;

		4.2.12
	the right to attach any item to the Common Parts adjoining the Property so far as is reasonably necessary to carry out any works to the Property required or permitted by this lease;

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		4.2.13
	the right to enter the Common Parts so far as is reasonably necessary to:

		4.2.13.1
	carry out works to the Property required or permitted by this lease; or

		4.2.13.2
	erect, install, use, retain, operate, inspect, maintain, repair and (if permitted by the Landlord) renew any alterations or additions beyond the boundaries of the Property to which the Landlord shall have granted prior written consent and only in accordance with the terms of that consent;

(in each case) after having given reasonable notice (which need not be in writing) to the Landlord and Provided That where reasonably required by the Landlord to exercise that right only if accompanied by the Landlord’s representative;
		4.2.14
	the right to install and retain Service Media beyond the boundaries of the Property in so far as may be required to serve any alterations or additions that have been installed and/or retained beyond the boundaries of the Property to which the Landlord shall have granted prior written consent and only in accordance with the terms of that consent.

		4.3
	The Rights are granted in common with the Landlord, the Management Company, the Superior Landlord and any other person authorised by the Landlord or the Superior Landlord.

		4.4
	The Rights may be exercised by the Tenant and by anyone else who is or who becomes entitled to exercise them and by anyone authorised by the Tenant and anyone so entering shall cause as little damage and inconvenience to the Landlord as possible and make good any damage caused to the Estate as soon as reasonably practicable and to the reasonable satisfaction of the Landlord and/or the Management Company.

5.RIGHTS EXCEPTED AND RESERVED
		5.1
	The following rights are excepted and reserved from this lease to the Landlord, the Management Company and any superior landlord from time to time for the benefit of the Building, Estate and the Landlord's Neighbouring Property:

		5.1.1
	rights of light, air, support and protection as those rights are capable of being enjoyed at any time during the term;

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		5.1.2
	the right to use and connect into and re-route any Service Media at, but not forming part of, the Property and the right to install and construct Service Media at the Property to serve any part of the Building or Estate;

		5.1.3
	the right to attach any scaffolding or other structure to any boundary of the Property;

		5.1.4
	at any time during the term, the full and free right for the Landlord and/or the Superior Landlord to develop the Estate and any neighbouring or adjoining property in which the Landlord acquires an interest during the term as the Landlord may think fit;

		5.1.5
	the right to re-route the Common Roads and any means of access to or egress from the Property or to change the areas over which any of the Rights are exercised;

		5.1.6
	the right to re-route and replace any Service Media over which the Rights mentioned in clause 4.2.10 may be exercised;

		5.1.7
	the rights reserved to the Superior Landlord under the Superior Leases; and

		5.1.8
	the right to enter the Property:

		5.1.8.1
	to repair, maintain, install, construct, re-route or replace any Service Media or structure relating to any of the Reservations;

		5.1.8.2
	inspect and record the condition of the Property or other parts of the Building and to carry out works to any other Lettable Unit or any part of the Estate;

		5.1.8.3
	for any other purpose mentioned in or properly connected with this lease, the Superior Leases, the Reservations, any Third Party Right and/or the interests of the Landlord and any superior reversionary interest in any Landlord’s Neighbouring Property;

notwithstanding that the exercise of any of the Reservations or the works carried out pursuant to them result in a reduction in the flow of light or air to the Property or loss of amenity for the Property Provided That they do not materially adversely affect the use and enjoyment of the Property for the Permitted Use.
		5.2
	The Reservations may be exercised by the Landlord, the Management Company, the Superior Landlord and by anyone else who is or becomes entitled to exercise them and by anyone authorised by the Landlord.

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		5.3
	The Tenant shall allow all those entitled to exercise any right to enter the Property, to do so with their workers, contractors, agents and professional advisors, and to enter the Property at any reasonable time (during usual business hours other than in the case of an emergency) and, except in the case of an emergency, after having given reasonable notice (which need not be in writing) to the Tenant.

		5.4
	No party exercising any of the Reservations, nor its workers, contractors, agents and professional advisors, shall be liable to the Tenant or to any undertenant or other occupier of or person at the Property for any loss, damage, injury, nuisance or inconvenience arising by reason of its exercising any of those Reservations except for:

		5.4.1
	physical damage to the Property; or

		5.4.2
	any loss, damage or injury arising by reason of the negligence of the Landlord or the party exercising the Reservations;

		5.4 3
	any loss, damage, injury, nuisance or inconvenience in relation to which the law prevents the Landlord from excluding liability

6.THIRD PARTY RIGHTS
		6.1
	The Tenant shall comply with all obligations on the Landlord, the Management Company and the Superior Landlord relating to the Third Party Rights (in each case insofar as those obligations relate to the Property or the exercise of the Right over the Estate as authorized in this lease and subsist and are capable of taking effect) and shall not do anything (even if otherwise permitted by this lease) that may interfere with any Third Party Right

		6.2
	The Tenant shall allow the Landlord, the Management Company and the Superior Landlord and any other person authorised by the terms of any Third Party Right to enter the Property in accordance with its terms.

7.THE ANNUAL RENT
		7.1
	The Tenant shall pay the Annual Rent and any VAT in respect of it by four equal instalments in advance on or before the Rent Payment Dates.  The payments shall be made by electronic transfer.

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		7.2
	The first instalment of the Annual Rent and any VAT in respect of it shall be made on the Rent Commencement Date and shall be the proportion, calculated on a daily basis, in respect of the period beginning on the Rent Commencement Date until the day before the next Rent Payment Date.

8.REVIEW OF THE ANNUAL RENT
		8.1
	In this clause the President is the President for the time being of the Royal Institution of Chartered Surveyors or a person acting on his behalf, and the Surveyor is the independent valuer appointed pursuant to clause 8.7

		8.2
	The Annual Rent shall be reviewed on each of the Review Dates to equal:

		8.2.1
	the Annual Rent payable immediately before the relevant Review Date (and in respect of the first Review Date this shall be the Annual Rent payable under the Previous Lease on its expiry date) (or which would then be payable but for any abatement or suspension of the Annual Rent or restriction on the right to collect it and disregarding any amortised rent free period during the term) or, if greater;

		8.2.2
	the open market rent agreed or determined pursuant to this clause 8.

		8.3
	The open market rent may be agreed between the Landlord and the Tenant at any time before it is determined by the Surveyor.

		8.4
	If the open market rent is determined by the Surveyor, it shall be the amount that the Surveyor determines is the annual rent (exclusive of any VAT) at which the Property could reasonably be expected to be let:

		8.4.1
	in the open market;

		8.4.2
	at the Relevant Review Date;

		8.4.3
	on the assumptions listed in clause 8.5; and

		8.4.4
	disregarding the matters listed in clause 8.6.

		8.5
	The assumptions are:

		8 5.1
	the Property is available to let in the open market:

		8.5.1.1
	by a willing lessor to a willing tenant;

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		8.5.1.2
	as a whole;

		8.5.1.3
	with vacant possession;

		8.5.1.4
	without a fine or a premium;

		8.5.1.5
	for a term of ten years commencing on the Relevant Review Date;

		8.5.1.6
	with a rent review date on the fifth anniversary of the relevant Review Date; and

		8.5.1.7
	otherwise on the terms of this lease, other than:

		8.5.1.7.1
	as to the amount of the Annual Rent and the relevant Review Date (but including the provisions for review of the Annual Rent in accordance with clause 5.1.6); and

		8.5.1.7.2
	clause Error! Reference source not found, and the Schedule to this lease;

		8.5.2
	the willing tenant has had the benefit of any rent-free or other concession or contribution which would be offered in the open market at the relevant Review Date in relation to fitting out works at the Property;

		8.5.3
	the Property may lawfully be used by the willing tenant (or any potential undertenant or assignee of the willing tenant) for any purpose permitted by this lease;

		8.5.4
	the Landlord and the Tenant have fully complied with their obligations in this lease;

		8.5.5
	if the Property or any other part of the Building or any Service Media serving the Property, has been destroyed or damaged, it has been fully restored;

		8.5.6
	no work has been carried out on the Property that has diminished the rental value of the Property other than work carried out in compliance with clause 36;

		8.5.7
	any fixtures, fittings, machinery or equipment supplied to the Property by the Landlord that have been removed by or at the request of the Tenant, or any undertenant or their respective predecessors in title (otherwise than to comply with any law) remain at the Property;

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		8.5.8
	the willing tenant and its potential assignees and undertenants shall not be disadvantaged by any actual or potential exercise of an option to tax under Part 1 of Schedule 10 to the VATA 1994 in relation to the Property; and

		8.5.9
	the Mezzanine Floors (including staircases leading to them) and the Category A Works to the Mezzanine Floors were installed by the willing landlord at its cost at the date of this lease in accordance with the Rent Review Specification and the Mezzanine Specification;

		8.5.10
	all of the other works listed in Appendix G to the Agreement for Lease were provided and carried out by the willing landlord at its cost at the date of this lease;

		8.5.11
	the Internal Area of the Property is:

	​

	​

	​

	Unit (at the Property)
	Floor
	Internal Area (Sq Ft)

	6
	Ground
	1611

	6
	First
	1611

	7
	Ground
	3156

	7
	First
	3156

	8
	Ground
	3160

	8
	First
	3160

	9
	Ground
	3157

	9
	First
	3157

	9
	Second
	917

	10
	Ground
	3165

	10
	First
	3165

	10
	Second
	1789

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		8.6
	The matters to be disregarded are:

		8.6.1
	any effect on rent of the fact that the Tenant or any authorised undertenant has been in occupation of the Property;

		8.6.2
	any goodwill attached to the Property by reason of any business carried out there by the Tenant or by any authorised undertenant or by any of their predecessors in title;

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		8.6.3
	any effect on rent attributable to any physical improvement to the Property carried out before or after the date of this lease, by and at the expense of the Tenant or any authorised undertenant with all necessary consents, approvals and authorisations and not pursuant to an obligation to the Landlord (other than an obligation to comply with any law);

		8.6.4
	any effect on rent of any obligation on the Tenant to fit out the Property or to reinstate the Property to the condition or design it was in before any alterations or improvements were carried out;

		8.6.5
	any statutory restriction on rents or the right to recover them; and

		8.6.6
	any depreciatory effect on the Annual Rent of clauses 8.4 to 8.6.

		8.7
	The Surveyor shall be an independent valuer who is a Member or Fellow of the Royal Institution of Chartered Surveyors.  The Landlord and the Tenant may, by agreement, appoint the Surveyor at any time before either of them applies to the President for the Surveyor to be appointed.  Any application to the President may not be made earlier than three months before the relevant Review Date.

		8.8
	The Surveyor shall act as an expert and not as arbitrator.  The Surveyor shall determine the open market rent.  The Surveyor’s decision shall be given in writing, and the Surveyor shall provide reasons for any determination.  The Surveyor’s written decision on the matters referred to him shall be final and binding in the absence of manifest error or fraud.

		8.9
	The Surveyor shall give the Landlord and the Tenant an opportunity to make written representations to the Surveyor and to make written counter-representations commenting on the representations of the other party to the Surveyor.  The parties will provide (or procure that others provide) the Surveyor with such assistance and documents as the Surveyor reasonably requires for the purpose of reaching a decision.

		8.10
	If the Surveyor dies, or becomes unwilling or incapable of acting, or unreasonably delays in making any determination, then either the Landlord or the Tenant may apply to the President to discharge the Surveyor and clause 8.7 shall then apply in relation to the appointment of a replacement.

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		8.11
	The fees and expenses of the Surveyor and the cost of the Surveyor’s appointment and any counsel’s fees, or other fees, properly incurred by the Surveyor shall be payable by the Landlord and the Tenant in the proportions that the Surveyor directs (or if the Surveyor makes no direction, then equally).  If either party does not pay its part of the Surveyor’s fees and expenses within ten working days after demand by the Surveyor, the other party may pay that part and the amount it pays shall be a debt of the non-paying party due and payable within ten working days of demand to the paying party.  The Landlord and the Tenant shall otherwise each bear their own costs in connection with the rent review.

		8.12
	If the revised Annual Rent has not been agreed by the Landlord and the Tenant or determined by the Surveyor on or before the relevant Review Date, the Annual Rent payable from and including the relevant Review Date shall continue at the rate payable immediately before the relevant Review Date No later than five (5) working days after the revised Annual Rent is agreed or the Surveyor’s determination is notified to the Landlord and the Tenant, the Tenant shall pay:

		8.12.1
	the shortfall (if any) between the amount that it has paid for the period from and including the relevant Review Date until the Rent Payment Date following the date of agreement or notification of the revised Annual Rent and the amount that would have been payable had the revised Annual Rent been agreed or determined on or before the relevant Review Date; and

		8.12.2
	interest at the Interest Rate on that shortfall calculated on a daily basis by reference to the Rent Payment Dates on which parts of the shortfall would have been payable if the revised Annual Rent had been agreed or determined on or before the relevant Review Date and the date payment is received by the Landlord.

		8.13
	Time shall not be of the essence for the purposes of this clause.

		8.14
	If at any time there is a guarantor, the guarantor shall not have any right to participate in the review of the Annual Rent

		8.15
	As soon as practicable after the amount of the revised Annual Rent has been agreed or determined, a memorandum recording the amount shall be signed by or on behalf of the

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Landlord and the Tenant and endorsed on or attached to this lease and its counterpart.  The Landlord and the Tenant shall each bear their own costs in connection with the memorandum
9.BUILDING SERVICE CHARGE
		9.1
	This Building Services are:

		9.1.1
	cleaning, maintaining, decorating and repairing the Common Parts, including external and structural parts and all Service Media forming part of the Common Parts’

		9.1.2
	lighting the Common Parts and cleaning, maintaining, repairing and replacing lighting machinery and equipment on the Common Parts;

		9.1.3
	cleaning, maintaining, repairing and replacing refuse bins on the Common Parts;

		9.1.4
	cleaning, maintaining, repairing and replacing signage for the Common Parts;

		9.1.5
	cleaning, maintaining, repairing, operating and replacing any security machinery and equipment (including closed circuit television) on the Common Parts;

		9.1.6
	cleaning, maintaining, repairing, operating and replacing fire prevention, detection, and fire fighting machinery and equipment and fire alarms on the Common Parts;

		9.1.7
	cleaning, maintaining, repairing and replacing any signboard showing the names and logos of the tenants and other occupiers (if provided by the Landlord);

		9.1.8
	maintaining the landscaped and grassed areas of the Common Parts;

		9.1.9
	cleaning maintaining repairing lighting and replacing the car park within the Common Parts; and

		9.1.10
	any other service or amenity that the Landlord may in its reasonable discretion (acting in accordance with the principles of good estate management) provide for the benefit of the tenants and occupiers of the Building.

		9.2
	The Building Service Costs are the total of:

		9.2.1
	the whole of the costs of:

		9.2.1.1
	providing the Building Services;

		9.2.1.2
	the supply and removal of electricity, gas, water, sewage and other utilities to and from the Common Parts;

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		9.2.1.3
	complying with the recommendations and requirements of the insurers of the Building (insofar as those recommendations and requirements relate to the Common Parts);

		9.2.1.4
	complying with all laws relating to the Common Parts, their use and any works carried out at them, and relating to the use of all Service Media, machinery and equipment at or serving the Common Parts and to any materials kept at or disposed of from the Common Parts;

		9.2.1.5
	complying with the Third Party Rights insofar as they relate to the Common Parts;

		9.2.1.6
	taking any steps (including proceedings) that the Landlord considers necessary to prevent or remove any encroachment over the Common Parts or to prevent the acquisition of any right over the Common Parts or to remove any obstruction to the flow of light or air to the Common Parts;

		9.2.1.7
	pursuing or enforcing any claim and taking or defending any proceedings against any third party or parties employed in the construction refurbishment and/or repair of the Building or for the remedy of a defect or otherwise or in connection with the Building Services;

		9 2.1.8
	the provision for future anticipated expenditure in respect of any of the Building Services as the Landlord shall consider appropriate (acting reasonably),

		9.2.2
	the costs, fees and disbursements (on a full indemnity basis) of:

		9.2.2.1
	managing agents employed by the Landlord for the carrying out and provision of the Building Services or, where managing agents are not employed, a management fee for the same (not exceeding 10% of the total Building Service Costs); and

		9.2.2.2
	accountants employed by the Landlord to prepare and audit the Building Service Charge accounts;

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		9.2.3
	all costs incurred in relation to those persons directly employed by the Landlord or the managing agent to deliver or administer delivery of the Building Services (whether employed full or part time and whether based at the Building or not) as follows:

		9.2.3.1
	salaries (and all appropriate benefits);

		9.2.3.2
	employer’s costs (including national insurance contributions and tax; costs of compliance with statutory requirements; and pension, welfare, and insurance contributions); and

		9.2.3.3
	training, uniforms and all equipment, supplies and accommodation needed for the proper performance of their duties,

		9.2.4
	all rates, taxes, impositions and outgoings payable in respect of the Common Parts, their use and any works carried out on them (other than any taxes payable by the Landlord in connection with any dealing with or disposition of its reversionary interest in the Building); and

		9.2.5
	any VAT payable by the Landlord in respect of any of the items mentioned above except to the extent that the Landlord obtains credit for such VAT under the Value Added Tax Act 1994.

		9.3
	Subject to the Tenant paying the Building Service Charge, to the Management Company or the Landlord if so directed by the Management Company, the Landlord shall use its reasonable endeavours to provide the Building Services described in clauses 9.1.1 to 9.1.9 (inclusive).  The Landlord may, but shall not be obliged to, provide any of the other Building Services.

		9.4
	The Landlord shall not be obliged to carry out any works where the need for those works has arisen by reason of any damage or destruction by a risk against which the Landlord is not obliged to insure.

		9.5
	The Landlord shall not be liable for;

		9.5.1
	any interruption in, or disruption to, the provision of any of the Building Services for any reason that is outside the reasonable control of the Landlord; or

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		9.5.2
	any injury, loss or damage suffered by the Tenant as a result of any absence or insufficiency of any of the Building Services or of any breakdown or defect in any Service Media, except where due to the negligence of the Landlord or its agents.

		9.6
	Before, or as soon as practicable after the start of each Building Service Charge Year, the Landlord shall prepare and send the Tenant an estimate of the Building Service Charge for the Building Service Charge Year (“the Estimated Building Service Charge”).

		9.7
	The Tenant shall pay the Estimated Building Service Charge for each Building Service Charge Year in four equal instalments on each of the Rent Payment Dates.  The first payment in respect of the Building Service Charge Year current at the date of this lease will be made on the date of this lease and will be a due proportion in respect of the period from and including the Term Commencement Date to and excluding the Rent Payment Date next following the date of this lease.

		9.8
	If the Landlord or the Landlord’s surveyor does not notify an estimate of the Building Service Charge for any Building Service Charge Year the Estimated Building Service Charge for the preceding Building Service Charge Year shall apply.  The Landlord or the Landlord’s surveyor may at any time revise the Estimated Building Service Charge. Any revision of the Estimated Building Service Charge after the start of a Building Service Charge Year shall adjust the payments on the following Rent Payment Dates equally.

		9.9
	As soon as reasonably practicable after the end of each Building Service Charge Year, the Landlord shall serve on the Tenant a certificate of the Building Service Charge certified by the Landlord’s surveyor for that Building Service Charge Year.

		9.10
	If any cost is omitted from the calculation of the Building Service Charge in any Building Service Charge Year, the Landlord shall be entitled to include it in the estimate and certificate of the relevant Building Service Charge in any of the following Building Service Charge Years.  Otherwise and except in the case of manifest error, the Building Service Charge Certificate shall be conclusive as to all matters of fact to which it refers.

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		9.11
	Without prejudice to the provisions of clause 12.5.6, where the Landlord provides any Building Service by reason of the damage to or destruction of the Common Parts by an Insured Risk or (save where clause 12.10.4 applies) an Uninsured Risk, the costs of that Building Service shall not be included in the Building Service Charge.

		9.12
	The difference between the Building Service Charge and the Estimated Building Service Charge for any Building Service Charge Year (or part) shall be paid by the Tenant to the Landlord within 14 days of the service of the certificate, or allowed against the next Estimated Building Service Charge payment or after the end of the Term refunded to the Tenant after the expiry of the relevant Building Service Charge Year having carried out the Building Service Charge reconciliation.

		9.13
	The Building Service Charge shall not include:

		9.13.1
	any costs relating to the initial construction of the Building or works solely designed to allow for the extension of the Building;

		9.13.2
	any fees and expenses attributable to the review of rents payable by the tenants and other occupiers of the Building or attributable to the letting of any part of the Building or any disposition or dealing with the Landlord’s interest in the Building or any part thereof;

		9.13.3
	any costs (including without limitation solicitors surveyors and agents fees and managing agents fees) incurred by or on behalf of the Landlord in the collection of rents or other monies for any occupiers of the Building and/or any proceedings against any occupier of the Building; or

		9.13.4
	any costs incurred by the Landlord in carrying out any works precautions or other matters as may be required by the Environment Agency or any other relevant statutory body or local authority to remove or remedy or contain any contamination or other environmental hazard arising as a result of prior use and occupation of the Building or part of it by other persons and which is not caused by the Tenant.

10.ESTATE SERVICE CHARGE
		10.1
	The Estate Services are:

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		10.1.1
	cleaning maintaining repairing and replacing the Estate Common Parts including all Service Media forming part of the Estate Common Parts all boundaries of the Estate including fences access barriers gates and necessary patrol tracks;

		10.1.2
	lighting the Estate Common Parts and cleaning maintaining repairing and replacing lighting machinery and equipment on the Estate Common Parts;

		10.1.3
	cleaning maintaining repairing and replacing refuse bins on the Estate Common Parts;

		10.1.4
	cleaning maintaining repairing operating and replacing fire prevention, detection and firefighting machinery and equipment on the Estate Common Parts;

		10.1.5
	the clearance and gritting of roads and paths on the Estate as reasonably determined by the Management Company;

		10.1.6
	the provision and maintenance of signage on the Estate including road traffic directional signs;

		10.1.7
	landscaped areas forming part of the Estate the grounds and any trees and shrubs therein (and vermin control thereon) and any architectural or ornamental features;

		10.1.8
	the provision of a security service and equipment for the Estate including reception at the main gate; and

		10.1.9
	the supply of any other service or amenity that the Management Company may acting in accordance with the principles of good estate management provide for the benefit of the tenants and occupiers of the Estate.

		10.2
	The Estate Service Costs are the total of:

		10.2.1
	the whole of the costs of:

		10.2.1.1
	providing the Estate Services;

		10.2.1.2
	the supply and removal of electricity, gas, water, sewage and other utilities to and from the Estate Common Parts;

		10.2.1.3
	complying with the recommendations and requirements of the insurers of the Building (insofar as those recommendations and requirements relate to the Estate Common Parts);

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		10.2.1.4
	complying with all laws relating to the Estate Common Parts, their use and any works carried out at them, and relating to the use of all Service Media, machinery and equipment at or serving the Estate Common Parts and to any materials kept at or disposed of from the Estate Common Parts;

		10.2.1.5
	contributions to sustainable travel and green travel plans that the Management Company is either obliged to contribute towards or where it would be to the benefit of the occupiers of the Estate to do so (acting in the interests of good estate management);

		10.2.1.6
	complying with the Third Party Rights insofar as they relate to the Estate Common Parts;

		10.2.1.7
	taking any steps (including proceedings) that the Management Company considers necessary to prevent or remove any encroachment over the Estate Common Parts or to prevent the acquisition of any right over the Estate Common Parts (or the Estate as a whole) or to remove any obstruction to the flow of light or air to the Estate Common Parts (or the Estate as a whole);

		10.2.1.8
	pursuing or enforcing any claim and taking or defending any proceedings against any third party or parties employed in the construction refurbishment and/or repair of the Estate Common Parts or for the remedy of a defect or otherwise or in connection with the Estate Services; and

		10.2.1.9
	the provision for future anticipated expenditure in respect of any of the Estate Services as the Management Company shall consider appropriate (acting reasonably);

		10.2.2
	the costs, fees and disbursements (on a full indemnity basis) of:

		10.2.2.1
	managing agents employed by the Management Company for the carrying out and provision of the Estate Services or, where managing agents are not employed, a management fee for the same not exceeding 10% of the total Estate Service Costs; and

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		10.2.2.2
	accountants employed by the Management Company to prepare and audit the Estate Service Charge accounts;

		10.2.3
	all costs incurred in relation to those persons directly employed by the Management Company or the managing agent to deliver or administer delivery of the Estate Services (whether employed full or part time and whether based at the Estate or not) as follows:

		10.2.3.1
	salaries (and all appropriate benefits);

		10.2.3.2
	employer’s costs (including national insurance contributions and tax; costs of compliance with statutory requirements; and pension welfare and insurance contributions) and

		10.2.3.3
	training, uniforms and all equipment, supplies and accommodation needed for the proper performance of their duties,

		10.2.4
	all rates, taxes, impositions and outgoings payable in respect of the Estate Common Parts, their use and any works carried out on them (other than any taxes payable by the Management Company in connection with any dealing with or disposition of its reversionary interest in the Estate); and

		10.2.5
	any VAT payable by the Management Company in respect of any of the items mentioned above except to the extent that the Management Company obtains credit for such VAT under the Value Added Tax Act 1994.

		10.3
	Any item charged by way of Service Charge (as defined in the Superior Leases) under clause 11 is excluded from the Estate Service Charge to the intent that there shall be no double counting.

		10.4
	Subject to the Tenant paying the Estate Service Charge, to the Management Company or the Landlord if so directed by the Management Company, the Management Company shall use its reasonable endeavours to:

		10.4.1
	clean maintain repair replace and light the Common Roads;

		10.4.2
	keep clean and in repair the Management Company’s signage (if any) upon the Estate; and

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		10.4.3
	clean maintain repair and renew all Service Media forming part of the Estate Common Parts.

		10.5
	The Management Company may, but shall not be obliged to, provide any of the other Estate Services.

		10.6
	The Management Company shall not be obliged to carry out any works where the need for those works has arisen by reason of any damage or destruction by a risk against which the Management Company is not obliged to insure.

		10.7
	The Management Company shall not be liable for:

		10.7.1
	any interruption in, or disruption to, the provision of any of the Estate Services for any reason that is outside the reasonable control of the Management Company; or

		10.7.2
	any injury, loss or damage suffered by the Tenant as a result of any absence or insufficiency of any of the Estate Services or of any breakdown or defect in any Service Media, except where due to the negligence of the Management Company.

		10.8
	Before, or as soon as practicable after the start of each Estate Service Charge Year, the Management Company shall prepare and send the Tenant an estimate of the Estate Service Charge for the Estate Service Charge Year (“the Estimated Estate Service Charge”).

		10.9
	The Tenant shall pay the Estimated Estate Service Charge to the Management Company (or the Landlord if so directed by the Management Company) for each Estate Service Charge Year in four equal instalments on each of the Rent Payment Dates.  The first payment in respect of the Estate Service Charge Year current at the date of this lease will be made on the date of this lease and will be a due proportion in respect of the period from and including the Term Commencement Date to and excluding the Rent Payment Date next following the date of this lease.

		10.10
	If the Management Company or the Management Company’s surveyor does not notify an estimate of the Estate Service Charge for any Estate Service Charge Year the Estimated Estate Service Charge for the preceding Estate Service Charge Year shall apply.  The Management Company or the Management Company’s surveyor may at any time revise the Estimated Estate Service Charge.  Any revision of the Estimated Estate Service Charge after the start of

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an Estate Service Charge Year shall adjust the payments on the following Rent Payment Dates equally.
		10.11
	As soon as reasonably practicable after the end of each Estate Service Charge Year, the Management Company shall serve on the Tenant a certificate of the Estate Service Charge certified by the Management Company’s surveyor for that Estate Service Charge Year.

		10.12
	If any cost is omitted from the calculation of the Estate Service Charge in any Estate Service Charge Year, the Management Company shall be entitled to include it in the estimate and certificate of the relevant Estate Service Charge in any of the following Estate Service Charge Years.  Otherwise and except in the case of manifest error, the Estate Service Charge Certificate shall be conclusive as to all matters of fact to which it refers.

		10.13
	Without prejudice to the provisions of clause 13.4.5, where the Management Company provides any Estate Service by reason of the damage to or destruction of the Estate Common Parts by an Insured Risk, the costs of that Estate Service shall not be included in the Estate Service Charge.

		10.14
	The difference between the Estate Service Charge and the Estimated Estate Service Charge for any Estate Service Charge Year (or part) shall be paid by the Tenant to the Management Company within 14 days of the service of the certificate, or allowed against the next Estimated Estate Service Charge payment or after the expiry of the term refunded to the Tenant after the end of the relevant Estate Service Charge Year having carried out the Estate Service Charge reconciliation.

		10.15
	The Management Company may from time to time direct the Tenant to pay to the Landlord and the Landlord to collect the Estate Service Charge on behalf of the Management Company.  In the event the Management Company so elects the Tenant shall pay the Estate Service Charge in the manner prescribed in clause 10.9 to the Landlord, and the Landlord shall within 5 working days of receipt forward such sums to the Management Company.

		10.16
	The Estate Service Charge shall not include:

		10.16.1
	any costs relating to the initial construction of the Estate or works solely designed to allow for the extension of the Estate;

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		10.16.2
	any fees and expenses attributable to the review of rents payable by the tenants and other occupiers of the Estate or attributable to the letting of any part of the Estate or any disposition or dealing with the Landlord’s interest in the Estate or any part thereof;

		10.16.3
	all costs (including without limitation solicitors surveyors and agents fees and managing agents fees) incurred by or on behalf of the Landlord in the collection of rents or other monies for any occupiers of the Estate and/or any proceedings against any occupier of the Estate; or

		10.16.4
	any costs incurred by the Landlord in carrying out any works precautions or other matters as may be required by the Environment Agency or any other relevant statutory body or local authority to remove or remedy or contain any contamination or other environmental hazard in, under or at any part or the Estate that is capable of being let and occupied on terms similar to those of this lease, arising as a result or prior use and occupation of the Estate or part of it by other persons.

		10.17
	The Tenant separately covenants with the Landlord to comply with its obligations under this clause 10.

11.SUPERIOR LEASE SERVICE CHARGE PROVISIONS
To the extent the Superior Landlord carries out any of the Services (as defined in the Superior Leases) under the Superior Leases and charges Service Charge (as defined in the Superior Leases) the Tenant will pay the Landlord on demand any such estimated Service Charge (or a fair proportion thereof) and any balancing sum in accordance with the Superior Leases and the Landlord will promptly supply the Tenant with copies of any demands, Estimates and Certificates (as both those terms are defined in the Superior Leases) provided by the Superior Landlord.
12.PROPERTY INSURANCE
		12.1
	Subject to clause 12.2, the Landlord shall keep the Building insured against loss or damage by the Insured Risks for the sum which the Landlord considers to be its full reinstatement cost (taking inflation of building costs into account).  The Landlord shall not be obliged to insure any fixtures and fittings or other works installed by the Tenant (other than any Mezzanine Floors

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and the Category A Works to the Mezzanine Floors that have been installed by or with the consent of the Landlord).
		12.2
	The Landlord’s obligation to insure is subject to:

		12.2.1
	any exclusions, limitations, excesses and conditions that may be imposed by the insurers; and

		12.2.2
	insurance being available in the London insurance market on reasonable terms acceptable to the Landlord.

		12.3
	In relation to any insurance effected by the Landlord under this clause, the Landlord shall use reasonable endeavours to procure that the Landlord’s insurer:

		12.3.1
	waives its rights of subrogation against the Tenant and any lawful sub-tenants or occupiers of the Property;

		12.3.2
	permits the interest of the Tenant to be noted on the policy of insurance either specifically or by way of a general noting of tenants’ interests under the conditions of the insurance policy Provided That this obligation will not require the Landlord to change its policy where the insurer is not prepared to do so on reasonable terms or on competitive rates.

		12.4
	The Tenant shall pay to the Landlord on demand:

		12.4.1
	the Insurance Rent;

		12.4.2
	any amount that is deducted or disallowed by the insurers pursuant to any excess provision in the insurance policy; and

		12.4.3
	any costs that the Landlord incurs in obtaining a valuation of the Property for insurance purposes, provided not more than once per annum.

		12.5
	The Tenant shall:

		12.5.1
	immediately inform the Landlord and the Superior Landlord if any matter occurs that any insurer or underwriter may treat as material in deciding whether or on what terms to insure or to continue to insure the Building and shall give the Landlord and the Superior Landlord notice of that matter;

		12.5.2
	not do or omit anything as a result of which any policy of insurance of the Building, any Landlord’s Neighbouring Property or any neighbouring property may become void or

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voidable or otherwise prejudiced, or the payment of any policy money may be withheld, nor (unless the Tenant has previously notified the Landlord and has paid any increased or additional premium) anything as a result of which any increased or additional insurance premium may become payable;
		12.5.3
	comply at all times with the requirements and reasonable recommendations of the insurers which have been notified to the Tenant in writing relating to the Building and the Estate Common Parts;

		12.5.4
	give the Landlord immediate notice upon being made aware of the occurrence of any damage or loss relating to the Property arising from an Insured Risk or of any other event that might affect any insurance policy relating to the Property;

		12.5.5
	not effect any insurance of the Property (except any plate glass at the Property), but if it becomes entitled to the benefit of any insurance proceeds in respect of the Property (other than in respect of plate glass) pay those proceeds or cause them to be paid to the Landlord; and

		12.5.6
	pay the Landlord an amount equal to any insurance money that the insurers of the Building refuse to pay by reason of any act or omission of the Tenant, its workers, contractors or agents or any person at the Property, Building or the Estate Common Parts with the actual or implied authority of any of them.

		12.6
	The Landlord shall, subject to obtaining all necessary planning and other consents (which it shall use its reasonable endeavours to obtain) use all insurance money received (other than for loss of rent) to repair the damage for which the money has been received or (as the case may be) in rebuilding the Property.  The Landlord shall not be obliged to:

		12.6.1
	provide accommodation identical in layout or design so long as accommodation reasonably equivalent to that previously at the Property is provided;

		12.6.2
	repair or rebuild if the Tenant has failed to pay any monies due under clause 12.5.6 until those monies are paid; or

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		12.6.3
	repair or rebuild the Property after a notice has been served pursuant to clause 12.8 or clause 12.9; or

		12.3.4
	rebuild or reinstate tenant’s fitting-out works or any other alterations or additions to the Property (other than any Mezzanine Floors and Category A Works to the Mezzanine Floors that have been installed by or with the consent of the Landlord)

		12.7
	If the Property is damaged or destroyed by an Insured Risk so as to be unfit for occupation and use then, unless the policy of insurance of the Property has been vitiated in whole or in part in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property with the actual or implied authority of any of them, payment of the Annual Rent, or a fair proportion of it according to the nature and extent of the damage, shall be suspended until the date that the Property has been reinstated and made fit for occupation and use (as the case may be), or until the end of three years from the date of damage or destruction, if sooner.

		12.8
	If, following damage to or destruction of the Building, the Landlord considers that it is impossible or impractical to reinstate the Building, the Landlord may terminate this lease by giving notice to the Tenant.  On giving notice this lease shall determine but this shall be without prejudice to any right or remedy of the Landlord in respect of any breach of the tenant covenants of this lease.  Any proceeds of the insurance (other than any insurance for plate glass) shall belong to the Landlord.

		12.9
	Unless the policy of insurance of the Property has been vitiated in whole or in part in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property with the actual or implied authority of any of them, the Tenant may terminate this lease by giving notice to the Landlord if, following damage or destruction of the Property by an Insured Risk, the Property has not been reinstated so as to be fit for occupation and use or the Common Parts have not been reinstated so as to make the Property accessible or useable within three years after the date of damage or destruction.  On giving this notice this lease shall determine but this shall be without prejudice

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to any right or remedy of either party in respect of any breach of the other’s covenants of this lease Any proceeds of the insurance (other than any insurance for plate glass) shall belong to the Landlord.
		12.10.1
	In this clause 12.10 the following words shall have the following meanings:

		12.10.1.1
	“Uninsured Damage” means that the Building has been destroyed or damaged by an Uninsured Risk so as to render the Property inaccessible and/or unfit for beneficial occupation and use; and

		12.10.1.2
	“Uninsured Risk”:  means any risks, or some aspect of any of them, which would be covered by the risks specifically identified in the definition of “Insured Risks” but which are excluded from being covered for the time being by reason of unavailability or withdrawal of cover by the Landlord on the grounds that cover cannot be placed on the London Insurance Market with a reputable insurer at reasonably commercial rates and on reasonably commercial conditions or because insurance cover is not available at all.

		12.10.2
	An Insured Risk does not become an Uninsured Risk for the purposes of this clause 12.10 by reason only of:

		12.10.2.1
	normal exclusion provisions in relation to a level of excess liability; or

		12.10.2.2
	rejection by the insurer of liability, or some part of it, due to the act default or omission of the Tenant or its undertenant, employee, licensee or contractor.

		12.10 3
	If there is Uninsured Damage then:

		12.10.3.1
	within 12 months of the damage or destruction in question the Landlord shall give written notice to the Tenant (“Election Notice”) stating whether or not it proposes to rebuild or reinstate the Property;

		12.10.3.2
	if the Election Notice states that the Landlord does propose to rebuild or reinstate the Property then for all the purposes of this lease the Uninsured Damage shall be deemed to have been damage by Insured Risk in respect of which the full insurance monies are recoverable by the Landlord under the insurance policies and the Landlord’s obligation to reinstate shall be as set out

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in clause 12.6, save that the Landlord will not be obliged to rebuild or reinstate tenant’s fitting-out works or any other alterations or additions to the Property other than any Mezzanine Floors and Category A Works to the Mezzanine Floors that have been installed by or with the consent of the Landlord;
		12.10.3.3
	if the Election Notice states that the Landlord does not propose to rebuild or reinstate the Property or if no Election Notice is served strictly within the period of 12 months referred to in clause 12.10.3.1 then this lease will determine with immediate effect but without prejudice to any antecedent claim by either party against the other for antecedent breach of any covenants on the part of the Tenant contained herein; and

		12.10.3.4
	if this lease is determined under clause 12.10.3.3 the Tenant shall be permitted a reasonable time (not exceeding one month) to remove from the Property any fixtures, fittings or equipment belonging to it and shall not be required to reinstate any alterations or additions made by it nor to yield up the Property in the state of repair and decoration which would (but for the Uninsured Damage) be required by this lease.

		12.10.4
	The Landlord shall only be entitled to include within the Building Service Costs any costs which the Landlord incurs (acting properly) in reinstating any damage or destruction to the Building caused by an Uninsured Risk if:

		12.10.4.1
	the Insured Risk shall have become an Uninsured Risk owing to the act or default of the Tenant or any person deriving title under the Tenant or their respective agents, employees, licensees or contractors; or

		12.10.4.2
	such damage or destruction does not make the Building or the Property or a substantial part of them unfit for occupation or use or inaccessible.

		12.10.5
	If there is Uninsured Damage then payment of the Annual Rent shall be suspended on and from the date on which the Uninsured Damage occurred (unless the lease determines sooner pursuant to clause 12.10.3.3 (in which case and for the avoidance of doubt the Tenant's obligation to pay the Annual Rent shall automatically determine)).

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		12.10.6
	If the Annual Rent has been suspended pursuant to clause 12.10.5, payment of the Annual Rent shall then be suspended until the Uninsured Damage has been reinstated so as to make the Premises fit for occupation and use and accessible.

		12.10.7
	If there is Uninsured Damage the Tenant shall not be liable to repair the Property pursuant to the obligation contained in clause 30.

13.ESTATE COMMON PARTS INSURANCE
		13.1
	Subject to clause 13.2, the Management Company shall keep the Estate Common Parts insured against loss or damage by the Insured Risks for the sum which the Management Company considers to be its full reinstatement cost (taking inflation of building costs into account).

		13.2
	The Management Company’s obligation to insure is subject to

		13.2.1
	any exclusions limitations, excesses and conditions that may be imposed by the insurers; and

		13.2.2
	insurance being available in the London insurance market on reasonable terms acceptable to the Management Company.

		13.3
	The Tenant shall pay to the Management Company on demand:

		13.3.1
	the Insurance Premium;

		13.3.2
	any amount that is deducted or disallowed by the insurers pursuant to any excess provision in the insurance policy; and

13.3.3 any costs that the Management Company incurs in obtaining a valuation of the Estate Common Parts for insurance purposes, provided not more than once per annum.
		13.4
	The Tenant shall:

		13.4.1
	immediately inform the Management Company and the Superior Landlord if any matter occurs that any insurer or underwriter may treat as material in deciding whether or on what terms to insure or to continue to insure the Estate Common Parts and shall give the Management Company and the Superior Landlord notice of that matter;

		13.4.2
	not do or omit anything as a result of which any policy of insurance of the Estate Common Parts may become void or voidable or otherwise prejudiced, or the payment of any policy

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money may be withheld, nor (unless the Tenant has previously notified the Management Company and has paid any increased or additional premium) anything as a result of which any increased or additional insurance premium may become payable;
		13.4.3
	comply at all times with the requirements and reasonable recommendations of the insurers which have been notified to the Tenant in writing relating to the Estate Common Parts;

		13.4.4
	give the Management Company immediate notice upon being made aware of the occurrence of any damage or loss relating to the Estate Common Parts arising from an Insured Risk or of any other event that might affect any insurance policy relating to the Estate Common Parts; and

		13.4.5
	 pay the Management Company an amount equal to any insurance money that the insurers of the Estate Common Parts refuse to pay by reason of any act or omission of the Tenant, its workers, contractors or agents or any person at the Estate Common Parts with the actual or implied authority of any of them.

		13.5
	The Tenant separately covenants with the Landlord to comply with its obligations under this clause 13.

14.RATES AND TAXES
		14.1
	The Tenant shall pay all present and future rates, taxes and other impositions and outgoings payable in respect of the Property, its use and any works earned out there, other than:

		14.1.1
	any taxes payable by the Landlord in connection with any dealing with or disposition of the reversion to this lease; or

		14.1.2
	any taxes, other than VAT and insurance premium tax, payable by the Landlord by reason of the receipt of any of the rents due under this lease.

		14.2
	If any such rates, taxes or other impositions and outgoings are payable in respect of the Property together with other property, the Tenant shall pay a fair and reasonable proportion of the total amount payable.

		14.3
	The Tenant shall not make any proposal to alter the rateable value of the Property or that value as it appears on any draft rating list, without the approval of the Landlord and the Superior Landlord.

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		14.4
	If, after the end of the term, either the Landlord or the Superior Landlord loses rating relief (or any similar relief or exemption) because it has been allowed to the Tenant, then the Tenant shall pay the Landlord or the Superior Landlord, as appropriate, an amount equal to the relief or exemption that has been lost.

15.COMMON ITEMS
		15.1
	The Tenant shall comply with all reasonable regulations the Landlord may make and notify to the Tenant in writing from time to time in connection with the use of any of those Service Media forming part of the Estate, structures or other items.

		15.2
	Except to the extent that such costs are included within the Estate Service Costs or the Building Service Costs, the Tenant must pay to the Landlord on demand a fair proportion of all costs payable by the Landlord for the maintenance, repair, lighting, cleaning and renewal of all Service Media, structures and other items not on or in the Building or Estate but used or capable of being used by the Building or the Estate in common with other land.

16.UTILITIES
		16.1
	The Tenant shall pay all costs in connection with the supply and removal of electricity, gas, water, sewage, telecommunications, data and other services and utilities to or from the Property including standing charges (but excluding any installation or connection costs incurred prior to the date of this lease).

		16.2
	If any of those costs are payable in relation to the Property together with other property, the Tenant shall pay a fair and reasonable proportion of all those costs.

		16.3
	The Tenant shall comply with all statutory requirements relating to the use of those services and utilities.

17.VAT
		17.1
	All sums payable by the Tenant are exclusive of any VAT that may be chargeable.  The Tenant shall pay VAT in respect of all taxable supplies made to it in connection with this lease on the due date for making any payment or, if earlier, the date on which that supply is made for VAT purposes and for which a valid VAT invoice shall be provided.

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		17.2
	Every obligation on the Tenant, under or in connection with this lease, to pay the Landlord or Management Company or any other person any sum by way of a refund or indemnity, shall include an obligation to pay an amount equal to any VAT incurred on that sum by the Landlord or the Management Company or other person and for which a valid VAT invoice shall be provided, except to the extent that the Landlord or the Management Company or other person obtains credit for such VAT under the Value Added Tax Act 1994.

		17.3
	The Tenant shall not seek to disapply the Landlord’s option to tax the Property or buildings thereon at any point during the term.

18.DEFAULT INTEREST AND INTEREST
		18.1
	If any Annual Rent or any other money payable by the Tenant under this lease has not been paid within seven days of the due date, whether in the case of the Annual Rent it has been formally demanded or not, the Tenant shall pay the Landlord or (in the case of the Estate Service Charge) the Management Company interest at the Default Interest Rate (both before and after any judgment) on that amount for the period beginning on the due date to and including the date of payment.

		18.2
	If the Landlord (acting reasonably) does not demand or accept any Annual Rent or other money due or tendered under this lease because the Landlord reasonably believes that the Tenant is in breach of any of the tenant covenants of this lease, then the Tenant shall, when that amount is accepted by the Landlord, also pay interest at the Interest Rate on that amount for the period beginning on the date the amount (or each part of it) became due until the date it is accepted by the Landlord.

19.COSTS
The Tenant shall pay the proper costs and expenses of the Landlord including any solicitors’ or other professionals’ costs and expenses (incurred both during and after the end of the term) reasonably and properly incurred in connection with or in the proper contemplation of:
		19.1.1
	the enforcement of the tenant covenants of this lease;

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		19.1.2
	serving any notice in connection with this lease under section 146 or 147 of the Law of Property Act 1925 or taking any proceedings under either of those sections, notwithstanding that forfeiture is avoided otherwise than by relief granted by the court;

		19.1.3
	serving any notice in connection with this lease under section 17 of the Landlord and Tenant (Covenants) Act 1995;

		19.1.4
	the proper preparation and service of a schedule of dilapidations in connection with this lease served during or within 4 months of the end of the Contractual Term; and

		19.1.5
	any consent or approval applied for under this lease, whether or not it is granted (save for in a situation where the Landlord unreasonably withholds or delays its consent, having been required by the terms of this lease not to do so)

20.COMPENSATION ON VACATING
Any right of the Tenant or anyone deriving title under the Tenant to claim compensation from the Landlord on leaving the Property under the Landlord and Tenant Act 1927 or the LTA 1954 is excluded, except to the extent that the legislation prevents that right being excluded.
21.NO DEDUCTION, COUNTERCLAIM OR SET-OFF
The Annual Rent and all other amounts due under this lease shall be paid by the Tenant or any guarantor (as the case may be) in full without any set-off, counterclaim, deduction or withholding (other than any deduction or withholding of tax as required by law)
22.REGISTRATION OF THIS LEASE
		22.1
	Promptly following the grant of this lease, the Tenant shall apply to register this lease at HM Land Registry.  The Tenant shall ensure that any requisitions raised by HM Land Registry in connection with that application are dealt with promptly and properly and the Landlord shall give the Tenant all reasonable assistance in this respect.  Within one month after completion of the registration, the Tenant shall send the Landlord official copies of its title.

		22.2
	The Tenant shall not:

		22.2.1
	apply to HM Land Registry to designate this lease as an exempt information document;

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		22.2.2
	object to an application by the Landlord to HM Land Registry to designate this lease as an exempt information document; or

		22.2.3
	where the Landlord wishes to designate this lease as an exempt information document the Tenant shall not apply to register the Lease without simultaneously submitting the Landlord’s application to designate the ease as an exempt information document Provided That the Landlord supplies the Tenant with the Landlord’s completed application and HM Land Registry fee within 10 working days of completion.

		22.3
	In the event that the Tenant fails to apply to register this lease at HM Land Registry within 2 months from the date of this lease the Landlord shall be entitled to submit the requisite Land Registry application as agent for an on behalf of Tenant.

		22.4
	So as to enable the Landlord to proceed to register this lease at HM Land Registry in accordance with clause 22.3 above:

		22.4.1
	the Tenant will on demand provide the Landlord with the SDLT5 in respect of the Tenant’s SDLT1 Return (if any) submitted by the Tenant;

		22.4.2
	where the Tenant has not submitted an SDLT Return in respect of this lease the Landlord shall be entitled to submit SDLT1 as agent for and on behalf of Tenant and to pay any SDLT which may be assessed on the lease.

		22.5
	The Tenant will on demand pay the Landlord as additional rent an amount equal to any SDLT, Land Registry fees, interest or penalty paid or incurred by the Landlord to enable it to procure registration of this lease at HM Land Registry together with the Landlord’s proper legal fees incurred in connection with the preparation and submission of the SDLT1 return and preparation and submission of the Land Registry application and dealing with any requisitions raised by HM Land Registry in respect of such application.

23.ASSIGNMENTS
		23.1
	The Tenant shall not assign the whole of this lease without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

		23.2
	The Tenant shall not assign part only of this lease.

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		23.3
	Without prejudice to the generality of this clause 23, for as long as the Previous Lease subsists not to assign the whole of this lease unless at the same time to the same person the Previous Lease is assigned in accordance with the terms of that lease.

		23.4
	The Landlord and the Tenant agree that for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may give its consent to an assignment subject to all or any of the following conditions:

		23.4.1
	if reasonably required by the Landlord a condition that the assignor enters into an authorised guarantee agreement which if requested by the Landlord:

		23.4.1.1
	is in respect of all the tenant covenants of this lease;

		23.4.1.2
	is in respect of the period beginning with the date the assignee becomes bound by those covenants and ending on the date when the assignee is released from those covenants by virtue of section 5 of the Landlord and Tenant (Covenants) Act 1995;

		23.4.1.3
	imposes principal debtor liability on the assignor;

		23.4.1.4
	requires (in the event of a disclaimer of liability under this lease) the assignor to enter into a new tenancy for a term equal to the unexpired residue of the Contractual Term; and

		23.4.1.5
	is otherwise in a form reasonably required by the Landlord;

		23.4.2
	where the obligations of the Tenant were guaranteed by a guarantor the execution of the authorised guarantee agreement referred to in sub-clause 23.4.1 by that guarantor and the insertion into that agreement of obligations on the part of that guarantor guaranteeing (to the extent lawful) the Tenant’s obligations therein in such form as the Landlord shall reasonably require

		23.4.3
	if reasonably required by the Landlord a condition that a person of standing acceptable to the Landlord (acting reasonably) enters into a guarantee and indemnity of the tenant covenants of this lease in such form as the Landlord may reasonably require; and/or

		23.4.4
	if reasonably required by the Landlord a condition that the assignee shall (if reasonable) provide a rent deposit of such amount as the Landlord may reasonably require plus an

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amount in lieu of VAT on that sum and enter into a rent deposit deed in such form as the Landlord may reasonably require.
		23.5
	The Landlord and the Tenant agree that for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may refuse its consent to an assignment if any of the following circumstances exist at the date of the Tenant’s application for consent to assign this lease:

		23.5.1
	the Annual Rent due or any other money due and formally demanded under this lease is outstanding (save for in the case of a bona fide dispute as to sums other than the Annual Rent);

		23.5.2
	in the Landlord’s reasonable opinion the assignee is not of sufficient financial standing to enable it to comply with the Tenant's covenants and conditions contained in this lease;

		23.5.3
	the assignee and the Tenant are group companies within the meaning of section 42 of this LTA 1954 and the assignee is of lower financial standing than the Tenant; or

		23.5.4
	where the proposed assignee is currently guaranteeing the Tenant’s obligations under this lease.

		23.6
	Nothing in this clause shall prevent the Landlord from giving consent subject to any other reasonable condition, nor from refusing consent to an assignment in any other circumstance where it is reasonable to do so.

24.UNDERLETTINGS
		24.1
	Without prejudice to the generality of this clause 24, for as long as the Previous Lease subsists not to underlet the whole of this lease unless at the same time to the same person the Previous Lease is underlet in accordance with the terms of that lease.

		24.2
	The Tenant shall not underlet the whole or a Permitted Part of the Property except in accordance with this clause nor without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

		24.3
	The Tenant shall not underlet part only of the Property, save for a Permitted Part in accordance and subject to the conditions set out in this clause 24.

		24.4
	The Tenant shall not underlet the Property or a Permitted Part:

		24.4.1
	together with any property or any right over property that is not included within this lease;

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		24.4.2
	at a fine or premium’ or reverse premium; nor

		24.4.3
	allowing any rent free period to the undertenant that exceeds the period as is then usual in the open market in respect of such a letting.

		24.5
	The Tenant shall not underlet the Property or a Permitted Part unless, before the underlease is granted, the Tenant has given the Landlord:

		24.5.1
	a certified copy of the notice served on the undertenant, as required by section 38A(3)(a) of the LTA 1954, applying to the tenancy to be created by the underlease; and

		24.5.2
	a certified copy of the declaration or statutory declaration made by the undertenant in accordance with the requirements of section 38A(3)(b) of the LTA 1954.

		24.6
	Any underletting by the Tenant shall be by deed and shall include:

		24.6.1
	an agreement between the Tenant and the undertenant that the provisions of sections 24 to 28 of the LTA 1954 are excluded from applying to the tenancy created by the underlease;

		24.6.2
	the reservation of a rent which is not less than the open market rental value of the Property (or, if the underletting is of a Permitted Part only, the open market rental value of that Permitted Part) at the date the Property or Permitted Part is underlet and which is payable at the same times as the Annua! Rent under this lease (but this shall not prevent an underlease providing for a rent-free period of a length permitted by clause 24.4.3);

		24.6.3
	provisions for the review of rent at the same dates and on the same basis as the review of rent in this lease, unless the term of the underlease does not extend beyond the next Review Date;

		24.6.4
	a covenant by the undertenant, enforceable by and expressed to be enforceable by the Landlord (as superior landlord at the date of grant) and its successors in title in their own right, to observe and perform the tenant covenants in the underlease and any document that is supplemental or collateral to it and the tenant covenants in this lease, except the covenants to pay the rents reserved by this lease;

		24.6.5
	a covenant by the undertenant (enforceable by and expressed to be enforceable by the Landlord (as superior landlord at the date of grant) and its successors in title in their own right):

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		24.6.5.1
	not to assign, underlet or charge the whole of the underlease without the consent of the landlord (which shall not be unreasonably withheld); and

		24.6 5.2
	not to underlet any part of the underlease or the Property or Permitted Part, nor to assign or charge part only of the underlease or the Property or Permitted Part, or to hold the underlease on trust for any person (except pending registration of a dealing permitted by the underlease at HM Land Registry or by reason only of joint legal ownership), and

		24.6.5.3
	not to permit its underlessee to underlet, part with or share possession or share occupation of the whole or any part of its underlease or the Property or Permitted Part, nor to assign or charge part only of its underlease or the Property or Permitted Part, nor to hold its underlease on trust for any person (except pending registration of a dealing permitted by the underlease at HM Land Registry or by reason only of joint legal ownership); and

		24.6.6
	provisions requiring the consent of the Landlord to be obtained in respect of any matter for which the consent of the Landlord is required under this lease, and shall otherwise be consistent with and include tenant covenants no less onerous (other than as to the Annual Rent) than those in this lease and in a form approved by the Landlord, such approval not to be unreasonably withheld or delayed.

		24.7
	In relation to any underlease granted by the Tenant, the Tenant shall:

		24.7.1
	not vary the terms of the underlease without the consent of the Landlord, such consent not to be unreasonably withheld or delayed;

		24.7.2
	enforce the tenant covenants in the underlease and not waive any of them nor allow any reduction in the rent payable under the underlease; and

		24.7.3
	ensure that in relation to any rent review the revised rent is nor agreed without the approval of the Landlord, such approval not to be unreasonably withheld or delayed.

25.SHARING OCCUPATION
The Tenant may share occupation of the Property with any company that is a member of the same group (within the meaning of section 42 of the LTA 1954) as the Tenant for as long as that company
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remains within that group and Provided That no relationship of landlord and tenant is established by that arrangement.
26.CHARGING
		26.1
	The Tenant shall not charge a part (as distinct from the whole) of the Property.

		26.2
	The Tenant may with the prior written consent of the Landlord (not to be unreasonably withheld or delayed) charge the whole of the Property to a bank or similar financial institution for the purpose of borrowing money on the security of this lease by way of a fixed charge.

		26.3
	The Tenant may without the consent of the Landlord charge the whole of the Property and this lease by way of a floating charge created in the normal course of the Tenant’s business to a Bank of England authorised institution.

27.PROHIBITION OF DEALINGS
Except as expressly permitted by this lease, the Tenant shall not assign, underlet, charge, part with or share possession or share occupation of this lease or the Property or hold this lease on trust for any person (except pending registration of a dealing permitted by this lease at HM Land Registry or by reason only of joint legal ownership)
28.REGISTRATION AND NOTIFICATION OF DEALINGS AND OCCUPATION
		28.1
	In this clause a Transaction is:

		28.1.1
	any dealing with this lease or the devolution or transmission of, or parting with possession of any interest in it, or

		28.1.2
	the creation of any underlease or other interest out of this lease, or out of any interest, underlease derived from it, and any dealing, devolution or transmission of, or parting with possession of any such interest or underlease; or

		28.1.3
	the making of any other arrangement for the occupation of the Property.

		28.2
	Within one month of completion of the registration of a Transaction (where the same is registrable at HM Lard Registry), the Tenant shall send the Landlord official copies of its title (and where applicable of the undertenant’s title)

		28.3
	No later than one month after a Transaction the Tenant shall:

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		28.3.1
	give the Landlord’s solicitors and the Management Company notice of the Transaction; and

		28.3.2
	deliver two certified copies of any document effecting the Transaction to the Landlord’s solicitors and the Management Company; and

		28.3.3
	pay the Landlord’s solicitors a registration fee of £75 (plus VAT).

		28.4
	If the Landlord reasonably requests, the Tenant shall promptly supply the Landlord with full details of the occupiers of the Property and the terms upon which they occupy it (but not more than twice in each year of the term).

29.CLOSURE OF THE REGISTERED TITLE OF THIS LEASE
Within one month after the end of the term (and notwithstanding that the term has ended), the Tenant shall make an application to close the registered title of this lease or any entry made against the Landlord’s title to protect the rights granted by this lease and shall ensure that any requisitions raised by HM Land Registry in connection with that application are dealt with promptly and properly and; the Tenant shall notify the Landlord of completion of its application.
30.REPAIRS
		30.1
	The Tenant shall keep the Property clean and tidy (including cleaning windows once a month) and in good and substantial repair and condition and shall ensure that any Service Media within and exclusively serving the Property is kept in good working order.

		30.2
	Notwithstanding clause 30.1 above, the Tenant shall not be liable to repair the Property to the extent that any disrepair has been caused by an Insured Risk unless and to the extent that the policy of insurance of the Property has been vitiated or any insurance proceeds withheld in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any person on the Property with the actual or implied authority of any of them.

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31.DECORATION
		31.1
	Subject to clause 30 above, the Tenant shall decorate the Property as often as is reasonably necessary and also in the last three months before the end of the term.

		31.2
	All decoration shall be carried out in a good and proper manner using good quality materials that are appropriate to the Property and the Permitted Use and shall include all appropriate preparatory work.

		31.3
	All decoration carried out in the last three months of the term shall also be carried out to the reasonable satisfaction of the Landlord and using materials, designs and colours approved by the Landlord, such approval not to be unreasonably withheld or delayed.

32.ALTERATIONS
		32.1
	The Tenant shall not make any external or structural alteration or addition and shall not make any opening in any boundary structure of the Property Provided That the Tenant may install Mezzanine Floors which comply with the Mezzanine Specification with the consent of the Landlord (such consent not to be unreasonably withheld or delayed).

		32.2
	The Tenant shall not make any internal, non-structural alteration to the Property without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

		32.3
	Notwithstanding the provisions of clause 32.2 the Tenant may without the Landlord’s consent erect, remove and relocate internal demountable partitioning and underfloor wiring Provided That:

		32.3.1
	any such works are undertaken in a good and workmanlike manner and in accordance with all laws and all good building and other relevant practices, codes and guidance:

		32.3.2
	the Tenant provides the Landlord with detailed plans at least 21 days prior to the work being carried;

		32.3.3
	the Tenant provides the Landlord with written notification within one month of completion of the work and, if requested by the Landlord, the Tenant supplies the Landlord with plans showing the altered layout of the Property; and

		32.3.4
	the Tenant removes such partitioning and wiring (as applicable) at the end of the term in accordance with clause 34.

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		32.4
	The Tenant shall not carry out any alteration to the Property (whether consent is required or not) which would, or may reasonably be expected to, have an adverse effect on the asset rating in any Energy Performance Certificate commissioned in respect of the Property.

		32.5
	The Tenant shall not install nor alter the route of any Service Media at the Property without the consent of the Landlord, such consent .not to be unreasonably withheld or delayed.

		32.6
	The Tenant shall not attach any sign, fascia, placard, board, poster or advertisement to the Property so as to be seen from the outside of the Building save as may be approved by the Landlord pursuant to clause 33.

		32.7
	The Tenant shall otherwise comply with the Estate Rules and Regulations in relation to any alterations or additions which the Tenant is permitted to make to the Property pursuant to this clause 34.

33.SIGNS
		33.1
	In this clause Signs include signs, fascia, placards, boards, posters and advertisements.

		33.2
	The Tenant shall not attach any Signs to the exterior of the Property or display any inside the Property so as to be seen from the outside except Signs of a design, size and number and in a position that are appropriate to the Property and the Permitted Use which have previously been approved by the Landlord, such approval not to be unreasonably withheld or delayed and are otherwise in accordance with the Landlord’s signage guidelines.

		33.3
	Before the end of the term, the Tenant shall remove any Signs placed by it at the Property whether during the term of this lease or of the Previous Lease and shall make good any damage caused to the Property by that removal.

34.RETURNING THE PROPERTY TO THE LANDLORD
		34.1
	At the end of the term the Tenant shall return the property to the Landlord in the repair and condition required by this lease and by the Previous Lease.

		34.2
	Unless the Landlord waives this obligation by serving notice on the Tenant before the end of the term, the Tenant shall remove items it has fixed to the Property, remove any alterations, additions or improvements it has made to the Property (in each case whether carried out before or during the term of this lease or of the Previous Lease), other than any:

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		34.2.1
	Mezzanine Floors; and/or

		34.2.2
	Category A Works carried out to the Mezzanine Floors; and /or

		34.2.3
	other works listed in Appendix G to the Agreement for Lease:

that have been installed by or with the consent of the Landlord and remove all Hazardous Substances it has introduced to the Property and carry out all associated Remedial Works, to the reasonable satisfaction of the Landlord and make good any damage caused to the Property by that removal to the Landlord’s reasonable satisfaction. The Landlord’s notice may require the retention or removal and reinstatement in respect of part only of such alterations additions, improvements or variations.
		34.3
	At the end of the term, the Tenant shall remove from the Property all chattels belonging to or used by it.

		34.4
	The Tenant irrevocably appoints the Landlord to be the Tenant’s agent to store or dispose of any chattels or items it has fixed to the Property and which have been left by the Tenant on the Property for more than one month after the end of the term and which the Landlord has requested the Tenant in writing to remove.

35.USE AND MANAGEMENT OF THE BUILDING AND THE ESTATE
		35.1
	The Tenant shall not use the Property for any purpose other than the Permitted Use.

		35.2
	The Tenant shall not use the Property for any illegal purpose nor for any purpose or in a manner that would cause loss damage injury, nuisance or inconvenience to the Landlord, its tenants or any other owner or occupier of neighbouring property.

		35.3
	The Tenant shall not park anywhere on the Estate other than in the parking spaces designated by the Landlord under clause 4.2.

		35.4
	The Tenant shall not overload any structural part of the Building nor any Service Media at or serving the Property and in particular the Tenant shall not consume any electricity at the Property in excess of 69 kva in respect of Unit 6 and 138 kva in respect of each of Units 7, 8, 9 and 10.

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		35.5
	The Tenant shall not at any time install or permit or suffer to be installed on the Property any electrical lamp equipment or appliance that would or would be likely to cause electrical, electromagnetic, mechanical, operational, or other interference.

		35.6
	The Tenant shall not use the Property for any works involving the emission of ionising radiation or for any purposes involving the bringing on or keeping of radioactive material or other Hazardous Substances at the Property unless with the scope of the Control of Substances Hazardous to Health Regulations from time to time.

		35.7
	The Tenant shall not do anything which would damage or contaminate the Property, the Building or the Estate or pollute the Environment or obstruct or damage any Service Media or discharge any deleterious matter (otherwise than in accordance with all statutory requirements) into any Service Media or cause or suffer any contamination on at or under the Property (Provided That the Tenant will not be liable to for any contamination on the Building which is not caused by the Tenant or its employees, undertenants, licensees or occupiers).

		35.8
	The Tenant shall not obstruct any of the Estate Common Parts or the Common Parts or impede the use of them or any other common facilities.

		35.9
	The Tenant must not keep any animal, bird or reptile at the Property.

		35.10
	The Tenant shall observe all regulations relating to the management of the Building and/or the Estate made by the Landlord from time to time in accordance with the principles of good estate management (including the Estate Rules and Regulations as amended from time to time) and notified to the Tenant in writing and shall ensure that its employees agents contractors and visitors observe any restrictions on access to or movement within the Estate which may be imposed by the Landlord from time to time.

		35.11
	Nothing in this lease shall impose or be deemed to impose any restriction on the use of any other Lettable Unit or any neighbouring property.

		35.12
	The Tenant agrees not to raise any objections to any planning permissions submitted by the Landlord to the local planning authority in relation to the Estate.

		35.13
	The Tenant shall ensure that the Landlord has written notice of the names and telephone numbers of at least two key holders of the Property.

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36.COMPLIANCE WITH LAWS
		36.1
	The Tenant shall comply with all laws (including the Planning Acts) relating to:

		36.1.1
	the Property and the occupation and use of the Property by the Tenant;

		36.1.2
	the use or operation of all Service Media and machinery and equipment at or serving the Property whether or not used or operated, and shall, where necessary, replace or convert such Service Media within or exclusively serving the Property so that it is capable of lawful use or operation;

		36.1.3
	any works carried out at the Property; and

		36.1.4
	all materials kept at or disposed from the Property

		36.2
	Without prejudice to any obligation on the Tenant to obtain any consent or approval under this lease, the Tenant shall carry out all works that are required under any law to be carried out at the Property whether by the owner or the occupier.

		36.3
	Within five working days after receipt of any notice or other communication affecting the Property (and whether or not served pursuant to any law) the Tenant shall:

		36.3.1
	send a copy of the relevant document to the Landlord and the Superior Landlord; and

		36.3.2
	take all steps necessary to comply with the notice or other communication and take any other action in connection with it as the Landlord may reasonably require.

		36.4
	The Tenant shall not apply for any planning permission for the Property without the Landlord’s consent.

		36.5
	The Tenant shall comply with its obligations under the CDM Regulations, including all requirements in relation to the provision and maintenance of a health and safety file.  The Tenant shall maintain the health and safety file for the Property in accordance with the CDM Regulations and shall give it to the Landlord at the end of the term.

		36.6
	The Tenant shall supply all information to the Landlord that the Landlord reasonably requires from time to time to comply with the Landlord’s obligations under the CDM Regulations.

		36.7
	As soon as the Tenant becomes aware of any defect in the Property, it shall give the Landlord notice of it.  The Tenant shall indemnify the Landlord against any liability under the Defective

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Premises Act 1972 in relation to the Property by reason of any failure of the Tenant to comply with any of the tenant covenants in this lease.
		36.8
	The Tenant shall keep the Property equipped with all fire prevention, detection and fighting machinery and equipment and fire alarms which are required under all relevant laws or required by the insurers of the Property or reasonably recommended by them or reasonably required by the Landlord and shall keep that machinery, equipment and alarms properly maintained and available for inspection.

37.ENERGY PERFORMANCE CERTIFICATES
		37.1
	The Tenant shall:

		37.1.1
	cooperate with the Landlord so far as is reasonably necessary to allow the Landlord to obtain an Energy Performance Certificate and Recommendation Report for the Property or the Building including providing the Landlord with copies of any plans or other information held by the Tenant that would assist in obtaining an Energy Performance Certificate; and

		37.1.2
	allow such access to any Energy Assessor appointed by the Landlord as is reasonably necessary to inspect the Property for the purposes of preparing an Energy Performance Certificate and/or Recommendation Report for the Property or the Building.

		37.2
	The Tenant shall not commission an Energy Performance Certificate for the Property without the Landlord’s consent such consent not to be unreasonably withheld Provided That where the Tenant carries out works or alterations on or to the Property which will impact upon or affect the existing Energy Performance Certificate the Tenant shall obtain a new Energy Performance Certificate at its own cost and promptly provide a copy thereof together with any Recommendation Report to the Landlord.

38.REMEDY BREACHES
		38.1
	The Landlord may enter the Property at reasonable times and on reasonable prior notice to the Tenant to inspect its condition and state of repair and may give the Tenant a notice of any breach of any of the tenant covenants in this lease relating to the condition or repair of the Property.

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		38.2
	If the Tenant has not begun any works needed to remedy that breach within 30 days following that notice (or if works are required as a matter of emergency, then immediately) or if the Tenant is not carrying out the works with all due speed, then the Landlord may enter the Property and carry out the works needed.

		38.3
	The proper costs incurred by the Landlord in carrying out any works pursuant to this clause (and any professional fees and any VAT in respect of those costs) shall be a debt due from the Tenant to the Landlord and payable within 14 days of a written demand.

		38.4
	Any action taken by the Landlord pursuant to this clause shall be without prejudice to the Landlord’s other rights, including those under clause 5

39.ENCROACHMENTS, OBSTRUCTIONS AND ACQUISITION OF RIGHTS
		39.1
	The Tenant shall not grant any right or licence over the Property to a third party nor permit any person to make any encroachment over the Property

		39.2
	If a third party makes or attempts to make any encroachment over the Property or takes any action by which a right may be acquired over the Property, the Tenant shall:

		39.2.1
	immediately inform the Landlord upon becoming aware of the same, and shall give the Landlord notice of that encroachment or action; and

		39.2.2
	take all steps (including any proceedings) the Landlord reasonably requires to prevent or license the continuation of that encroachment or action to the extent that such steps are within the Tenant’s control or such encroachment or action has been caused or exacerbated through an act or omission of the Tenant.

		39.3
	The Tenant shall not obstruct the flow of light or air to the Property nor any means of access to the Building nor make any acknowledgement that the flow of light or air to the Property or any other part of the Building or that the means of access to the Building is enjoyed with the consent of any third party.

		39.4
	If any person takes or threatens to take any action to obstruct the flow of light or air to the Property or obstruct the means of access to the Property, the Tenant shall:

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		39.4.1
	immediately inform the Landlord upon becoming aware of the same, and shall give the Landlord notice of that action; and

		39.4.2
	take all steps (including any proceedings) the Landlord reasonably requires to prevent or secure the removal of the obstruction to the extent that such steps are within the Tenant’s control or such encroachment or action has been caused or exacerbated through an act or omission of the Tenant.

40.INDEMNITY
The Tenant shall keep the Landlord indemnified against all liabilities, expenses, costs (including but not limited to any solicitors’ or other professionals’ costs and expenses), claims, damages and losses (including but not limited to any diminution in the value of the Landlord’s interest in the Building and/or the Estate and loss of amenity of the Building and/or the Estate) suffered or incurred by the Landlord arising out of or in connection with any breach of any tenant covenants in this lease, or any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property, the Building and/or the Estate Common Parts with the actual or implied authority of any of them.
41.COVENANT TO COMPLY WITH COVENANTS IN THE SUPERIOR LEASE
The Tenant shall observe and perform the tenant covenants in the Superior Leases (insofar as they relate to the Property and rights granted to the Tenant), except the covenants to pay the rents reserved by the Superior Leases.
42.COVENANT WITH THE SUPERIOR LANDLORD
		42.1
	The Tenant covenants with the Superior Landlord and its successors in title in their own right to observe and perform:

		42.1.1
	the tenant covenants in this lease and any document that is collateral to it; and

		42.1.2
	the tenant covenants in the Superior Leases insofar as they relate to the Property or rights granted to the Tenant except the covenants to pay the rents reserved by the Superior Leases.

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		42.2
	Subject to the Tenant paying the rents reserved by this lease and observing the tenant’s covenants, the Landlord shall pay the rents reserved by the Superior Leases and perform the covenants on the part of the tenant contained in the Superior Leases so far as the Tenant is not liable for such performance under the terms of this lease.

		42.3
	At the request and cost of the Tenant, on a full indemnity basis, the Landlord shall use all reasonable endeavours to procure that the Superior Landlord complies with the Superior Landlord’s Covenants during such period as the Superior Leases subsist and, if reasonable, the Landlord may require that the Tenant pay it reasonable security in advance in respect of anticipated costs for enforcing such compliance.

		42.4
	If the Superior Leases (or either of them) are surrendered, the Landlord shall from the date of the surrender perform or procure the performance of obligations equivalent to the Superior Landlord’s Covenants immediately prior to the surrender of the Superior Leases.

43LANDLORD’S COVENANT FOR QUIET ENJOYMENT
The Landlord covenants with the Tenant, that, so long as the Tenant pays the rents reserved by this lease and complies with its obligations, the Tenant shall have quiet enjoyment of the Property without any lawful interruption by the Landlord or any person claiming under the Landlord, except as otherwise permitted by this lease.
44.RE-ENTRY AND FORFEITURE
		44.1
	The Landlord may re-enter the Property (or any part of the Property in the name of the whole) at any time after any of the following occurs:

		44.1.1
	any rent is unpaid 21 days after becoming payable whether it has been formally demanded or not;

		44.1.2
	any breach of any condition of, or tenant covenant, in this lease;

		44.1.3
	the Previous Lease shall terminate for any reason other than by effluxion of time of the term of years thereby granted;

		44.1.4
	an Act of Insolvency.

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		44.2
	If the Landlord re-enters the Property (or any part of the Property in the name of the whole) pursuant to this clause, this lease shall immediately end, but without prejudice to any right or remedy of the Landlord in respect of any breach of covenant by the Tenant or any guarantor.

45.DISPUTES UNDER THE SUPERIOR LEASE
Notwithstanding the other terms of this lease, if any dispute, issue, question or matter arising out of or under or relating to the Superior Leases also affects or relates to the provisions of this lease, the determination of that dispute, issue, question or matter pursuant to the provisions of the Superior Leases is to be binding on the Tenant as well as the Landlord for the purposes both of the Superior Leases and this lease Provided That this provision is not to apply to the provisions for the review of rent payable under this lease.
46.JOINT AND SEVERAL LIABILITY
		46.1
	Where the Landlord or the Tenant comprises more than one person, those persons shall be jointly and severally liable for the obligations and liabilities of that party arising under this lease.  The Landlord or the Tenant may take action against, or release or compromise the liability of, or grant time or other indulgence to, any one if those persons comprising the other party without affecting the liability of any other of them.

		46.2
	Where a guarantor comprises more than one person those persons shall be jointly and severally liable for the obligations and liabilities of a guarantor arising under this lease.  The Landlord may take action against, or release or compromise the liability of, or grant time or other indulgence to, any one of those persons without affecting the liability of any other of them.

47.LIABILITY
In any case where the facts are or should reasonably be known to the Tenant (save where the facts are or should reasonably be known to the Landlord or Management Company (as applicable)), the Landlord or Management Company (as applicable) shall not be liable to the Tenant for any failure of the Landlord or Management Company (as applicable) to perform any landlord covenant in this lease, unless and until the Tenant has given the Landlord or Management Company (as applicable) notice of the facts that give rise to the failure and the Landlord or Management Company (as applicable) has not remedied the failure within a reasonable time of service of that notice.
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48.EXCLUSION OF REPRESENTATIONS
		48.1
	Nothing in this lease constitutes or shall constitute a representation or warranty that the Property may lawfully be used for any purpose allowed by this lease.

		48.2
	Nothing in this clause shall, however, operate to limit or exclude any liability for fraud.

49.NOTICES, CONSENTS AND APPROVALS
		49.1
	Except where this lease specifically states that a notice need not be in writing, any notice given pursuant to this lease shall be in writing.

		49.2
	A written notice shall be delivered by hand or sent by pre-paid first class post or registered post. A correctly addressed notice sent by pre-paid first class post shall be deemed to have been delivered at the time at which it would have been delivered in the normal course of the post.

		49.3
	Section 196 of the Law of Property Act 1925 shall otherwise apply to notices given under this lease.

		49.4
	Where the consent of the Landlord is required under this lease, a consent shall only be valid if it is given by deed, unless:

		49.4.1
	it is given in writing and signed by a person duly authorised on behalf of the Landlord; and

		49.4.2
	it expressly states that the Landlord waives the requirement for a deed in that particular case.

If a waiver is given, it shall not affect the requirement for a deed for any other consent.
		49.5
	Where the approval of the Landlord is required under this lease, an approval shall only be valid if it is in writing and signed by or on behalf of the Landlord, unless:

		49.5.1
	the approval is being given in a case of emergency; or

		49.5.2
	this lease expressly states that the approval need not be in writing.

		49.6
	If the Landlord gives a consent or approval under this lease, the giving of that consent or approval shall not imply that any consent or approval required from a third party has been obtained, nor shall it obviate the need to obtain any consent or approval from a third party.

		49.7
	Where the consent of the Superior Landlord is required under this lease, a consent shall only be valid if it would be valid as a consent given under the Superior Leases.  Where the approval

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of the Superior Landlord is required under this lease, an approval shall only be valid if it would be valid as an approval given under the Superior Leases.
		49.8
	Where the Tenant requires the consent or approval of the Superior Landlord 10 any act or omission then, subject to the provisions of clause 1.11 the Landlord shall at the cost of the Tenant use all reasonable endeavours to obtain that consent or approval.

50.GOVERNING LAW AND JURISDICTION
		50.1
	This lease shall be governed by and construed in accordance with the law of England and Wales.

		50.2
	The Landlord and the Tenant (and any guarantor) and the Management Company irrevocably agree to submit to the exclusive jurisdiction of the courts of England and Wales over any claim or matter arising under or in connection with this, lease or the legal relationships established by it.

51.ENTIRE AGREEMENT
		51.1
	This lease and any documents annexed to it constitute the whole agreement between the parties and supersede all previous discussions, correspondence, negotiations, arrangements, understandings and agreements between them relating to their subject matter.

		51.2
	Each party acknowledges that in entering into this lease and any documents annexed to it, it does not rely on, and shall have no remedies in respect of, any representation or warranty (whether made innocently or negligently) other than those contained in any written replies that Kingsley Napley LLP has given to any written enquiries raised by Penningtons Manches Cooper before the date of the Previous Lease.

		51.3
	Nothing in this lease constitutes or shall constitute a representation or warranty that the Property may lawfully be used for any purpose allowed by this lease.

		51.4
	Nothing in this clause shall limit or exclude any liability for fraud.

52.EXCLUSION OF SECTIONS 24-28 OF THE LTA 1954
		52.1
	The parties confirm that:

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		52.1.1
	the Landlord served a notice on the Tenant, as required by section 38A(3)(a) of the LTA 1954, applying to the tenancy created by this lease, before the Agreement for Lease was entered into;

52.2.2[] who was duly authorised by the Tenant to do so made a statutory declaration dated [] 2021 in accordance with the requirements of section 38A(3)(b) of the LTA 1954; and
		52.2
	The parties agree that the provisions of sections 24 to 28 of the LTA 1954 are excluded in relation to the tenancy created by this lease.

53.CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
Except for the Superior Landlord and as provided in clause 42 a person who is not a party to this lease shall not have any rights under or in connection with this lease by virtue of the Contracts (Rights of Third Parties) Act 1999.
54.LANDLORD AND TENANT (COVENANTS) ACT 1995
This lease creates a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995.
This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.
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	​

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	ORIGINAL
	    
	​

	EXECUTED AS A DEED by THE HARWELL
SCIENCE AND INNOVATION CAMPUS
GENERAL PARTNER LIMITED as general partner
for The Harwell Science and Innovation
Campus Limited Partnership acting by a director in
the presence of:
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	)
)
)
)
)
)
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Director

	Witness
Signature
	                                
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	Name
	                                
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	Address
	                                
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	Occupation
	                                
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	​
	    
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	EXECUTED AS A DEED by THE HARWELL
SCIENCE AND INNOVATION CAMPUS
NOMINEE LIMITED as nominee for The Harwell
Science and Innovation Campus
Limited Partnership acting by a director in the
presence of:
​
	)
)
)
)
)
)
	​
                                
Director

	Witness
Signature
	                                
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	​

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	Name
	                                
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	Address
	                                
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	Occupation
	                                
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	COUNTERPART 

EXECUTED AS A DEED by
VACCITECH (UK) LIMITED
acting by a director in the presence of:-
	​
​
)
)
)
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	​
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	​

	Witness
Signature
	                                
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	Name
	                                
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	Address
	                                
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	Occupation
	                                
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Appendix 1
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Plan 1 (Demise Plan)
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- 67 -

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Appendix 2
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Plan 2 (Estate Plan)
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- 68 -

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Appendix 3
​
Rent Review Specification
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- 69 -

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NOTIONAL SPECIFICATION FOR RENT REVIEW
Mezzanine Installation
Mezzanines on 1st and 2nd Floor to the following specification:
Mezzanine point load of 6.0 tonnes based on a 3.6m x 3.6m grid (or equivalent area),
lightweight floor construction including selfweight per floor of 1.0 kN/m2 and a
superimposed load of 2.5 kN/m2 for office + 1.0 kN/m2 for lightweight partitions, with
baseplates suitably sized.  The mezzanine design and stability shall be in accordance with
the requirements of BRE digest 437.  Point loads shall be at least 300mm from any floor
joint
Fire Stopping to 1st & 2nd Floor Mezzanine
2nd Floor External Windows
Solar film to external windows
Wall lining all perimeter walls (full building height)
Installation of stairs to the mezzanine floors
Installation of lift
Cat A works
1st fix CAT A HVAC to offices (MHVR ventilation and VRF AC)
2nd fix CAT A HVA to offices (MHVR ventilation and VRF AC)
HVAC infrastructure to ground floor (for extension to CAT b by others)
	(a)
	Heat recovery AHU designed suitable for cat b extension by others

	(b)
	DX Heat Pump Systems

	(c)
	BMS Control Systems [typical cost]

	(d)
	Run around coil heat recovery system

	(e)
	FAMU/Exhaust Ductwork & Attenuators etc [estimate at this stage]

Suspended Ceiling to 1st & 2nd Floor – Mineral fibre
Suspended Ceiling to Ground Floor - Vinyl satin spar
Fire Alarm System to 1st & 2nd Floor
Fire Alarm System to Ground Floor
Toilets for 1st & 2nd Floor
Toilets for Ground Floor
Extract Systems to 1st & 2nd Floor Toilets
Extract Systems to Ground Floor Toilets
Mechanical & Electrical Infrastructure to Ground Floor inc breaktank
CAT A Electrics to 1st & 2nd Floor
Water and drainage pipework to toilets and kitchenette
Kitchenette to 1st Floor
Door Access Main Doors to each floor
CAT A LED Lighting to 1st & 2nd Floor
CAT A LED Lighting to Ground Floor
LTHW/DHWS calorifier and primary pumps (all floors)
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​

​
Appendix 4
​
Rent Review Specification
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NOTIONAL SPECIFICATION FOR RENT REVIEW
Mezzanine Installation
Mezzanines on 1st and 2nd Floor to the following specification:
Mezzanine point load of 6.0 tonnes based on a 3.6m x 3.6m grid (or equivalent area),
lightweight floor construction including selfweight per floor of 1.0 kN/m2 and a
superimposed load of 2.5 kN/m2 for office + 1.0 kN/m2 for lightweight partitions, with
baseplates suitably sized The mezzanine design and stability shall be in accordance with
the requirements of BRE digest 437.  Point loads shall be at least 300mm from any floor
joint
Fire Stopping to 1st & 2nd Floor Mezzanine
2nd Floor External Windows
Solar film to external windows
Wall lining all perimeter walls (full building height)
Installation of stairs to the mezzanine floors
Installation of lift
Cat A works
1st fix CAT A HVAC to offices (MHVR ventilation and VRF AC)
2nd fix CAT A HVA to offices (MHVR ventilation and VRF AC)
HVAC infrastructure to ground floor (for extension to CAT b by others)
	(a)
	Heat recovery AHU designed suitable for cat b extension by others

	(b)
	DX Heat Pump Systems

	(c)
	BMS Control Systems [typical cost]

	(d)
	Run around coil heat recovery system

	(e)
	FAMU/Exhaust Ductwork & Attenuators etc [estimate at this stage]

Suspended Ceiling to 1st & 2nd Floor - Mineral fibre
Suspended Ceiling to Ground Floor - Vinyl satin spar
Fire Alarm System to 1st & 2nd Floor
Fire Alarm System to Ground Floor
Toilets for 1st & 2nd Floor
Toilets for Ground Floor
Extract Systems to 1st & 2nd Floor Toilets
Extract Systems to Ground Floor Toilets
Mechanical & Electrical Infrastructure to Ground Floor inc breaktank
CAT A Electrics to 1st & 2nd Floor
Water and drainage pipework to toilets and kitchenette
Kitchenette to 1st Floor
Door Access Main Doors to each floor
CAT A LED Lighting to 1st & 2nd Floor
CAT A LED Lighting to Ground Floor
LTHW/DHWS calorifier and primary pumps (all floors)

​Document

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. BRACKETS (“[***]”) DENOTE OMISSIONS.

ON24, INC.
SIXTH AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT

August 31, 2021

This SIXTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) is entered into as of August 31, 2021, by and between Comerica Bank, a Texas banking association (“Bank”) and ON24, INC., a Delaware corporation (“Borrower”).
RECITALS
Borrower and Bank are parties to that certain Fifth Amended and Restated Loan and Security Agreement dated as of January 16, 2019, as amended from time to time prior to the date hereof, including without limitation, by that certain First Amendment to Fifth Amended and Restated Loan and Security Agreement, dated as of June 28, 2019, that certain Second Amendment to Fifth Amended and Restated Loan and Security Agreement, dated as of April 29, 2020, and that certain Third Amendment to Fifth Amended and Restated Loan and Security Agreement, dated as of July 31, 2020 (collectively, together with any other related documents, the “Original Agreement”), pursuant to which Bank agreed to extend and make loans available to Borrower upon terms and conditions contained therein.
Borrower and Bank desire to amend and restate the Original Agreement in accordance with the terms set forth in this Agreement.
Bank is willing to amend and restate the Original Agreement, subject to the terms and conditions hereinafter set forth and the documents to be executed in connection herewith. This Agreement sets forth the terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank.
AGREEMENT
The parties agree as follows:
1.DEFINITIONS AND CONSTRUCTION.
1.1Definitions.  As used in this Agreement, all capitalized terms shall have the definitions set forth on Exhibit A.  Any term used in the Code and not defined herein shall have the meaning given to the term in the Code.
1.2Accounting Terms.  Any accounting term not specifically defined on Exhibit A shall be construed in accordance with GAAP and all calculations shall be made in accordance with GAAP.  The term “financial statements” shall include the accompanying notes and schedules. All accounting terms not specifically or completely defined on Exhibit A hereto shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP, except as otherwise specifically prescribed herein.  If at any time any change (or implementation of a previously agreed upon change) in GAAP would affect the computation of any financial ratio or requirement (including any negative covenant “basket”) set forth in any Loan Document, and Borrower shall request, Bank and Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP; provided, that until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein, and (ii) Borrower(s) shall provide to Bank financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.
2.LOAN AND TERMS OF PAYMENT.
1.1Credit Extensions.
(a)Promise to Pay.  Borrower promises to pay to the order of Bank, in lawful money of the United States, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof.
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 1    August 31, 2021

(b)Advances Under Revolving Line.
(i)Amount.  Subject to and upon the terms and conditions of this Agreement Borrower may request Advances in an aggregate outstanding amount not to exceed the lesser of (A) the Revolving Line or (B) the Borrowing Base, less the aggregate face amount of Letters of Credit issued under the Letter of Credit Sublimit and the aggregate limits of the corporate credit cards issued to Borrower and merchant credit card processing reserves under the Credit Card Services Sublimit.  Except as set forth in this Agreement, amounts borrowed pursuant to this Section 2.1(b) may be repaid and re-borrowed at any time without penalty or premium prior to the Revolving Maturity Date, at which time all Advances under this Section 2.1(b) shall be immediately due and payable.  Any repayment hereunder shall also be accompanied by the payment of all accrued and unpaid interest on the amount so repaid.
(ii)Form of Request.  Whenever Borrower desires an Advance, Borrower will notify Bank (which notice shall be irrevocable) no later than 3:00 p.m. Pacific time, on the Business Day that the Advance is to be made.  Each such notice shall be made in accordance with Section 2.3(c) hereto.  Bank is authorized to make Advances under this Agreement, based upon instructions received from a Responsible Officer, or without instructions if in Bank’s discretion such Advances are necessary to meet Obligations which have become due and remain unpaid.  The notice shall be signed by a Responsible Officer. Bank will credit the amount of Advances made under this Section 2.1(b) to Borrower’s deposit account.
(iii)Letter of Credit Sublimit. Subject to the availability under the Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Revolving Line.  Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Revolving Line. All Letters of Credit shall be in form and substance and shall include terms (including, without limitation, the expiration date thereof) acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form of letter of credit application and agreement (as such form may be amended, restated, supplemented, replaced, or otherwise modified from time to time) and any other agreement that Borrower may enter into with the Bank in connection with the Letters of Credit.  Borrower will pay any standard issuance and other fees that Bank notifies Borrower it will charge for issuing and processing Letters of Credit.
(iv)Credit Card Services Sublimit.  Subject to the terms and conditions of this Agreement, Borrower may request corporate credit cards and standard and e-commerce merchant account services from Bank (collectively, the “Credit Card Services”).  The aggregate limit of the corporate credit cards and merchant credit card processing reserves shall not exceed the Credit Card Services Sublimit, provided that availability under the Revolving Line shall be reduced by the aggregate limits of the corporate credit cards issued to Borrower and merchant credit card processing reserves.  In addition, Bank may, in its sole discretion, charge as Advances any amounts that become due or owing to Bank in connection with the Credit Card Services.  The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of the Bank’s standard forms of application and agreement for the Credit Card Services (as such forms may be amended, restated, supplemented, replaced, or otherwise modified from time to time) and any other agreement that Borrower may enter into with the Bank in connection with the Credit Card Services, which Borrower hereby agrees to execute. 
(v)Collateralization of Obligations Extending Beyond Maturity.  If Borrower has not secured to Bank’s reasonable satisfaction its obligations with respect to any Letters of Credit or Credit Card Services that may extend beyond the Revolving Maturity Date, then, effective as of the Revolving Maturity Date, the balance in any deposit accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates or accounts), shall automatically secure such 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 2    August 31, 2021

obligations to the extent of the then continuing or outstanding and undrawn Letters of Credit and/or Credit Card Services; provided, however, that if there are insufficient balances in such accounts to secure such obligations, Borrower shall immediately deposit such additional funds as are necessary to fully secure such obligations.  Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit or Credit Card Services are outstanding or continue.
(c)Bank’s Records.  The amount and date of each Advance, its applicable interest rate, and the amount and date of any repayment shall be noted on Bank’s records, which records shall be conclusive evidence thereof, absent manifest error; provided, however, any failure by Bank to make any such notation, or any error in any such notation, shall not relieve Borrower of its obligations to repay Bank all amounts payable by Borrower to Bank under or pursuant to this Agreement, when due in accordance with the terms hereof.
1.2Overadvances.  If the aggregate amount of the outstanding Advances exceeds the lesser of the Revolving Line or the Borrowing Base, less the aggregate face amount of Letters of Credit issued under the Letter of Credit Sublimit and the aggregate limits of the corporate credit cards issued to Borrower and merchant credit card processing reserves under the Credit Card Services Sublimit, at any time, Borrower shall immediately pay to Bank, in cash, the amount of such excess.
1.3Interest Rates Provisions and Payments.
(a)Interest Rates.
(i)Advances.  The Advances shall bear interest, on the outstanding daily balance thereof, at the Prime Referenced Rate plus the Applicable Margin.
(ii)Default Interest Rate.  From and after the occurrence of any Event of Default, and so long as any such Event of Default remains unremedied or uncured thereafter, the Obligations outstanding under the Agreement shall bear interest at a per annum rate of five percent (5%) above the otherwise applicable interest rate hereunder, which interest shall be payable upon demand.  In addition to the foregoing, a late payment charge equal to five percent (5%) of each late payment hereunder may be charged on any payment not received by Bank within ten (10) calendar days after the payment due date therefor, but acceptance of payment of any such charge shall not constitute a waiver of any Event of Default under the Agreement.  In no event shall the interest payable under this Agreement at any time exceed the maximum rate permitted by law.  THE MAXIMUM INTEREST RATE SHALL NOT EXCEED THE HIGHEST APPLICABLE USURY CEILING.
(b)Payments.
(i)Accrued and unpaid interest on the unpaid principal balance of the Obligations shall be payable monthly, in arrears, on the first Business Day of each month, from the date made until the same is paid in full (whether in accordance with the terms hereof, by acceleration, or otherwise).  In the event that any payment becomes due and payable on any day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day, and additional fees or interest, as the case may be, shall continue to accrue and be payable thereon during such extension at the rates set forth hereto.  Interest accruing hereunder shall be computed on the basis of a year of 360 days, and shall be assessed for the actual number of days elapsed, and in such computation, effect shall be given to any change in the applicable interest rate as a result of any change in the Prime Referenced Rate on the date of each such change.
(ii)Bank may, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts or against the Revolving Line, in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder.  Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder.  All payments shall be free and clear of any taxes, withholdings, duties, impositions or other charges, to the end that Bank will receive the entire amount of any Obligations payable hereunder, regardless 
			
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of source of payment.  Bank shall credit a wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies.  Any payment by check or other item of payment Bank may receive will conditionally reduce Obligations, but shall not be considered a payment on account unless such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment.  Any payment received by Bank after 12:00 noon Pacific time shall be deemed to have been received by Bank as of the opening of business on the immediately following Business Day.  
(c)Advance Requests.
(i)Borrower may request an Advance hereunder either (i) upon the delivery to Bank of a written Request for Advance duly completed and executed by Borrower or, (ii) to the extent applicable, pursuant to a request submitted through Bank’s Loan Management System (each a “Request”).
(ii)In the event that Borrower is unable to request an Advance hereunder through the Bank’s Loan Management System, Advances hereunder may be requested by delivery or submission to Bank by hand delivery, first class mail, overnight courier, facsimile, email or other means of delivery acceptable to Bank, of a written Request duly completed and executed by Borrower.  An Advance hereunder may be requested in Borrower’s discretion by telephonic notice to Bank.  Any Advance requested by telephonic notice shall be confirmed by Borrower that same day by submission to Bank of a written Request, as provided herein.  Borrower acknowledge(s) that if Bank makes an Advance based on a request made by telephone, facsimile, email or other means of delivery (other than by hand delivery, first class mail or overnight courier), it shall be for Borrower’s convenience and all risks involved in the use of any such procedure shall be borne by Borrower, and Borrower expressly agree(s) to indemnify and hold Bank harmless therefor.  Bank shall have no duty to confirm the authority of anyone requesting an Advance by telephone, facsimile, email or any such other means of delivery.  In the event that Borrower elect(s) to request an Advance by telephonic notice, facsimile, email or other means of delivery acceptable to Bank, Borrower acknowledge(s) and agree(s) that Bank may impose or require such verification, authentication and other procedures as Bank may require from time to time.
(d)Regulatory Developments or Other Circumstances Relating to the Daily Adjusting LIBOR Rate.
(i)If any Change in Law shall: (a) subject Bank to any tax, duty or other charge with respect to any Obligations under the Agreement, or shall change the basis of taxation of payments to Bank of the principal of or interest hereunder (except for changes in the rate of tax on the overall net income of Bank imposed by the jurisdiction in which Bank’s principal executive office is located); or (b) impose, modify or deem applicable any reserve (including, without limitation, any imposed by the Board of Governors of the Federal Reserve System), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by Bank, or shall impose on Bank or the foreign exchange and interbank markets any other condition affecting this Agreement or the Obligations; and the result of any of the foregoing is to increase the cost to Bank of maintaining any part of the Obligations or to reduce the amount of any sum received or receivable by Bank under this Agreement by an amount deemed by Bank to be material, then Borrower shall pay to Bank, within fifteen (15) days of Borrower’s receipt of written notice from Bank demanding such compensation, such additional amount or amounts as will compensate Bank for such increased cost or reduction.  A certificate of Bank, prepared in good faith and in reasonable detail by Bank and submitted by Bank to Borrower, setting forth the basis for determining such additional amount or amounts necessary to compensate Bank shall be conclusive and binding for all purposes, absent manifest error.
(ii)In the event that any Change in Law affects or would affect the amount of capital or liquidity required or expected to be maintained by Bank (or any corporation controlling Bank), and Bank determines that the amount of such capital or liquidity is increased by or based upon the existence of any obligations of Bank hereunder or the maintaining of any Obligations, and such increase has the effect of reducing the rate of return on Bank’s (or such controlling corporation’s) capital as a consequence of such obligations or the maintaining of such Obligations to a level below that which Bank (or such controlling corporation) could have achieved but for such circumstances (taking into consideration its policies with respect to capital adequacy and 
			
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liquidity), then Borrower shall pay to Bank, within fifteen (15) days of Borrower’s receipt of written notice from Bank demanding such compensation, additional amounts as are sufficient to compensate Bank (or such controlling corporation) for any increase in the amount of capital and/or liquidity and reduced rate of return which Bank reasonably determines to be allocable to the existence of any obligations of Bank hereunder or to maintaining any Obligations.  A certificate of Bank as to the amount of such compensation, prepared in good faith and in reasonable detail by Bank and submitted by Bank to Borrower, shall be conclusive and binding for all purposes absent manifest error.
1.4Fees and Bank Expenses.  Borrower shall pay to Bank the following:
(a)Facility Fee.  On the Closing Date, a fee equal to [***], which shall be nonrefundable;
(b)Unused Facility Fee.  A quarterly Unused Facility Fee equal to fifteen hundredths of one percent (0.15%) per annum of the difference between the Revolving Line and the average outstanding principal balance of the Obligations during the applicable quarter, which fee shall be payable in arrears within five (5) days of the last day of each such quarter and shall be nonrefundable; and
(c)Bank Expenses.  On the Closing Date, all Bank Expenses incurred through the Closing Date, and, after the Closing Date, all Bank Expenses, as and when they become due.
1.5Term.  This Agreement shall become effective on the Closing Date and, subject to Section 13.8, shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement.  Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default.
3.CONDITIONS OF LOANS.
1.1Initial Conditions Precedent to Credit Extensions.  The obligation of Bank to make a Credit Extension on or after the Closing Date is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following:
(a)this Agreement and the other Loan Documents required by Bank;
(b)an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement and the other Loan Documents;
(c)a financing statement amendment and other filings as Bank determines are necessary to perfect all security interests granted to Bank by Borrower;
(d)the Itemization of Amount Financed Disbursement Instructions signed by a Responsible Officer of Borrower;
(e)agreement to furnish insurance;
(f)payment of the fees and Bank Expenses then due as specified in Section 2.4;
(g)current SOS Reports indicating that except for Permitted Liens, there are no other security interests or Liens of record in the Collateral;
(h)an audit of the Collateral, the results of which shall be satisfactory to Bank; 
			
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(i)current financial statements, including audited statements for Borrower’s most recently ended fiscal year, together with an unqualified opinion, company prepared consolidated and consolidating balance sheets and income statements for the most recently ended quarter in accordance with Section 6.2, and such other updated financial information as Bank may reasonably request;
(j)current Compliance Certificate in accordance with Section 6.2; 
(k)a Collateral Information Certificate; 
(l)an Automatic Loan Payment Authorization; 
(m)a Consent to Electronic Delivery of Terms and Conditions, ESign Disclosure and Consent, duly consented to by Borrower and authorized signers; and
(n)such other documents or certificates, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.
1.2Conditions Precedent to all Credit Extensions.  The obligation of Bank to make each Credit Extension is further subject to the following conditions:
(a)timely receipt by Bank of the Request for Advance as provided in Section 2.1; 
(b)there has occurred no circumstance or circumstances that would reasonably be expected to have a Material Adverse Effect;
(c)the representations and warranties contained in Article 5 shall be true and correct in all material respects on and as of the date of such Request for Advance and on the effective date of each Credit Extension as though made at and as of each such date (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date), and (i) no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension, (ii) after giving effect to such Advance, the aggregate principal amount of Advances made under this Agreement (excluding refundings and conversions of outstanding Advances) shall not exceed the lesser of the Revolving Line or the Borrowing Base, and (iii) a Request for Advance once delivered or submitted to Bank, shall not be revocable by the undersigned.  The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2.
1.3Post-Closing Covenants.  Unless otherwise agreed to in writing by Bank, Bank shall have received, in form and substance satisfactory to Bank:
(a)within forty-five (45) days after the Closing Date, for each of the Collateral locations at (i) 200 Paul Avenue, San Francisco, CA 94124 and (ii) 11900 East Cornell Avenue, Suite A, Aurora, CO 80014, Borrower shall have used commercially reasonable efforts to deliver a landlord waiver, executed by the landlord of each such location, as applicable, and provide a copy of the lease for each such location, as applicable;
(b)within forty-five (45) days after the Closing Date, (i) a control agreement covering Borrower’s accounts maintained with U.S. Bank National Association, and (ii) a control agreement covering Borrower’s accounts maintained with Comerica Securities, Inc., both executed by each party thereto; and
(c)within thirty (30) days after the Closing Date, (i) certificates of property and general liability insurance, and (ii) additional insured, loss payee and other endorsements required under this Agreement.
4.CREATION OF SECURITY INTEREST.
			
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1.1Grant of Security Interest.  Borrower grants and pledges to Bank a continuing security interest in the Collateral to secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents.  Subject to Permitted Liens and except as set forth in the Schedule, such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority security interest in later-acquired Collateral.  Borrower also hereby agrees not to sell, transfer, assign, mortgage, pledge, lease, grant a security interest in, or encumber any of its Intellectual Property without Bank’s prior written consent.  Notwithstanding any termination of this Agreement, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations are outstanding.
1.2Perfection of Security Interest.  Borrower authorizes Bank to file at any time financing statements, continuation statements, and amendments thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder, and (ii) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, including whether Borrower is an organization, the type of organization and any organizational identification number issued to Borrower, if applicable.  Any such financing statements may be filed by Bank at any time in any jurisdiction whether or not Division 9 of the Code is then in effect in that jurisdiction, provided, however, Bank shall use commercially reasonable efforts to promptly notify Borrower of any such filing, although failure by Bank to provide such notification will not be considered a breach under this Agreement.  Borrower shall from time to time endorse and deliver to Bank, at the request of Bank, all Negotiable Collateral and other documents that Bank may reasonably request, in form satisfactory to Bank, to perfect and continue perfection of Bank’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under the Loan Documents.  Borrower shall have possession of the Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect its security interest by possession in addition to the filing of a financing statement.  Where Collateral with a value in excess of One Million Dollars ($1,000,000) is in possession of a third party bailee, Borrower shall take such steps as Bank reasonably requests for Bank to (i) obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank, (ii) obtain “control” of any Collateral consisting of investment property, deposit accounts, securities accounts, letter-of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Division 9 of the Code) by causing the securities intermediary or depositary institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank.  Borrower will not create any chattel paper without placing a legend on the chattel paper acceptable to Bank indicating that Bank has a security interest in the chattel paper.
1.3Right to Inspect.  Bank (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect (or if physical copies are not available for inspection, Borrower shall promptly provide or make available in satisfactory form to Bank) Borrower’s Books and to make copies thereof and to check, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to, the Collateral.
1.4Pledge of Shares.  Borrower hereby pledges, assigns and grants to Bank a security interest in all shares of stock which are part of the Collateral (collectively, the “Shares”), together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations.  Upon the occurrence of an Event of Default hereunder, Borrower will deliver to Bank the certificate or certificates for the Shares, accompanied by an instrument of assignment duly executed in blank by Borrower.  To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect the pledge of the Shares.  Upon the occurrence of an Event of Default hereunder, Bank may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into the name of Bank and cause new certificates representing such securities to be issued in the name of Bank or its transferee.  Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Bank may reasonably request to perfect or continue the perfection of Bank’s security interest in the Shares.  Unless an Event of Default shall have occurred and be continuing, Borrower shall be entitled to exercise any voting rights with respect to the Shares and to give 
			
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consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the terms of this Agreement or which would constitute or create any violation of any of such terms.  All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default.
5.REPRESENTATIONS AND WARRANTIES.
Borrower represents and warrants as follows:
1.1Due Organization and Qualification.  Borrower and each Subsidiary is an entity duly existing under the laws of the jurisdiction in which it is organized and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where the failure to do so could not reasonably be expected to cause a Material Adverse Effect.  
1.2Due Authorization; No Conflict.  The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s organizational documents, nor will they constitute an event of default under any material agreement by which Borrower is bound.  Borrower is not in default under any agreement by which it is bound, except to the extent such default would not reasonably be expected to cause a Material Adverse Effect.
1.3Collateral.  Borrower has rights in or the power to transfer the Collateral, and its title to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer or pledge except for Permitted Liens.  Except as set forth in the Schedule, all Collateral is located solely in the Collateral States.  The Accounts are bona fide existing obligations.  The property or services giving rise to such Accounts has been delivered or rendered to the account debtor or its agent for immediate shipment to and unconditional acceptance by the account debtor.  Borrower has not received notice of actual or imminent Insolvency Proceeding of any account debtor whose accounts are included in any Borrowing Base Certificate as an Account. No licenses or agreements giving rise to such Accounts is with any Prohibited Territory or with any Person organized under or doing business in a Prohibited Territory.  All Inventory is in all material respects of good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves have been made.  Except as set forth in the Schedule, none of the Collateral is maintained or invested with a Person other than Bank or Bank’s Affiliates.
1.4Intellectual Property.  Borrower is the sole owner of the Intellectual Property, except for licenses granted by Borrower to its customers in the ordinary course of business.  To the best of Borrower’s knowledge, each of the Copyrights, Trademarks and Patents is valid and enforceable, and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that any part of the Intellectual Property violates the rights of any third party except to the extent such claim could not reasonably be expected to cause a Material Adverse Effect.  Other than this Agreement, Borrower is not a party to, or bound by, any agreement that restricts the grant by Borrower of a security interest in the Intellectual Property.
1.5Name; Location of Chief Executive Office.  Except as disclosed in the Schedule, Borrower has not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the first paragraph of this Agreement.  The chief executive office and principal place of business of Borrower is located at the address indicated in Section 10 hereof.
1.6Actions, Suits, Litigation, or Proceedings.  Except as set forth in the Schedule, there are no actions, suits, litigation or proceedings, at law or in equity, pending by or against Borrower or any Subsidiary before any court, administrative agency, or arbitrator in which a likely adverse decision could reasonably be expected to have a Material Adverse Effect.
1.7No Material Adverse Change in Financial Statements.  All consolidated and consolidating financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated and consolidating financial condition as of the date 
			
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thereof and Borrower’s consolidated and consolidating results of operations for the period then ended.  There has not been a material adverse change in the consolidated or in the consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank.
1.8Solvency, Payment of Debts.  Borrower is able to pay its debts (including trade debts) as they mature; the fair saleable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this Agreement.
1.9Compliance with Laws and Regulations.  Borrower and each Subsidiary have met the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA.  No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that could have a Material Adverse Effect.  Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940.  Borrower is not engaged principally, or as one of the important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U, and X of the Board of Governors of the Federal Reserve System).  Borrower has complied in all material respects with all the provisions of the Federal Fair Labor Standards Act.  Borrower has complied in all material respects with all environmental laws, regulations and ordinances.  Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which could reasonably be expected to have a Material Adverse Effect.  Borrower and each Subsidiary have filed or caused to be filed all tax returns required to be filed, and have paid, or have made adequate provision for the payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or where the failure to file such returns or pay such taxes could not reasonably be expected to have a Material Adverse Effect.
1.10Investments.  Borrower does not own any Equity Interests of any Person, except for Permitted Investments.
1.11Government Consents.  Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Borrower’s business as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect.
1.12Restricted Agreements.  Except as disclosed on the Schedule or as timely disclosed in writing to Bank pursuant to Section 6.9, Borrower is not a party to, nor is bound by, any Restricted Agreement.
1.13Full Disclosure.  No representation, warranty or other statement made by Borrower in any certificate or written statement furnished to Bank taken together with all such certificates and written statements furnished to Bank contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such certificates or statements not misleading, it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not to be viewed as facts and that actual results during the period or periods covered by any such projections and forecasts may differ from the projected or forecasted results.
1.14Shares.  Borrower has full power and authority to create a first lien on the Shares and no disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement.  There are no subscriptions, warrants, rights of first refusal or other restrictions on, or options exercisable with respect to the Shares.  The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable.  The Shares are not the subject of any present (or threatened in writing) suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings.
1.15No Material Adverse Effect.  No Material Adverse Effect has occurred.
			
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6.AFFIRMATIVE COVENANTS.
Borrower covenants that, until payment in full of all outstanding Obligations, and for so long as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the following:
1.1Good Standing and Government Compliance.  Borrower shall maintain its and each of its Subsidiaries’ organizational existence and good standing in the Borrower State, shall maintain qualification and good standing in each other jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank the organizational identification number issued to Borrower by the authorities of the jurisdiction in which Borrower is organized, if applicable.  Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements of ERISA with respect to any employee benefit plans subject to ERISA.  Borrower shall comply in all material respects with all applicable Environmental Laws, and maintain all material permits, licenses and approvals required thereunder where the failure to do so could reasonably be expected to have a Material Adverse Effect.  Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject, and shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with which would reasonably be expected to have a Material Adverse Effect.
1.2Financial Statements, Reports, Certificates.  Borrower shall deliver to Bank:  (i) as soon as available, but in any event within thirty (30) days after the end of each calendar quarter, a company prepared consolidated and consolidating balance sheet, income statement, and cash flow statement covering Borrower’s operations during such period, prepared in accordance with GAAP, consistently applied, in a form reasonably acceptable to Bank and certified by a Responsible Officer; (ii) as soon as available, but in any event within two hundred ten (210) days after the end of Borrower’s fiscal year, audited consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP, consistently applied, together with an opinion which is unqualified (including no going concern comment or qualification) or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (iii) if applicable, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (iv) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of One Million Dollars ($1,000,000) or more; (v) promptly upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control systems; (vi) as soon as available, but in any event not later than ninety (90) days after the end of Borrower’s fiscal year, Borrower’s financial and business projections and budget for the immediately following year, including a company prepared consolidated and consolidating balance sheet, income statement, and cash flow statement covering Borrower’s operations during such period, with evidence of approval thereof by Borrower’s Board of Directors; (vii) such budgets, sales projections, operating plans or other financial information as Bank may reasonably request from time to time; and (viii) within thirty (30) days of the last day of each calendar quarter, a report signed by Borrower, in form reasonably acceptable to Bank, listing any applications or registrations that Borrower has made or filed in respect of any Patents, Copyrights or Trademarks and the status of any outstanding applications or registrations, as well as any material change in Borrower’s Intellectual Property.  
(a)(i) Prior to the occurrence of the Cash Trigger Event, within thirty (30) days after the last day of each calendar quarter, Borrower shall deliver to Bank aged listings by invoice date of accounts receivable and accounts payable, each in form and substance reasonably acceptable to Bank and certified by a Responsible Officer; and (ii) effective after the occurrence of the Cash Trigger Event, within thirty (30) days after the last day of each month, Borrower shall deliver to Bank (x) a Borrowing Base Certificate in substantially the form of Exhibit D hereto, together with aged listings by invoice date of accounts receivable and accounts payable, (y) a committed monthly recurring revenue report, and (z) a trailing twelve (12) month renewal rate report (or similar report as currently prepared by Borrower as of the Closing Date), each in form and substance reasonably acceptable to Bank and certified by a Responsible Officer.
			
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(b)Within thirty (30) days after the last day of each calendar quarter, Borrower shall deliver to Bank with the financial statements a Compliance Certificate certified as of the last day of the applicable quarter and signed by a Responsible Officer in substantially the form of Exhibit E hereto.
(c)For each account Borrower maintains with an institution other than Bank which is covered by control agreements in form and substance satisfactory to Bank, within thirty (30) days after the last day of each month, Borrower shall deliver to Bank copies of the monthly statements for such account.
(d)As soon as possible and in any event within three (3) days after becoming aware of the occurrence or existence of an Event of Default hereunder, a written statement of a Responsible Officer setting forth details of the Event of Default, and the action which Borrower has taken or proposes to take with respect thereto.
(e)Bank shall have a right from time to time hereafter to audit Borrower’s Accounts and Books, and appraise Collateral at Borrower’s expense, provided that such audits will be conducted no more often than every six (6) months unless an Event of Default has occurred and is continuing.  Borrower shall provide or make available Borrower’s Accounts, Books or Collateral in order for Bank to conduct its audit pursuant to this Section or inspection pursuant to Section 4.3 hereto.
Borrower may deliver to Bank on an electronic basis any certificates, reports or information required pursuant to this Section 6.2, and Bank shall be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer.  If Borrower delivers this information electronically, it shall also deliver to Bank by U.S. Mail, reputable overnight courier service, hand delivery, facsimile or .pdf file within five (5) Business Days of submission of the unsigned electronic copy the certification of monthly financial statements, the intellectual property report, the Borrowing Base Certificate (as applicable) and the Compliance Certificate, each bearing the physical signature of the Responsible Officer.
1.3Inventory; Returns.  Borrower shall keep all Inventory in good and merchantable condition, free from all material defects except for Inventory for which adequate reserves have been made.  Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist on the Closing Date.  Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving more than One Million Dollars ($1,000,000).
1.4Taxes.  Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Bank, on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower.
1.5Insurance.  Borrower will keep the Collateral in good condition and will protect it from loss, damage, or deterioration from any cause. Borrower has and will maintain at all times (a) with respect to the Collateral, insurance under an “special form” policy against fire and other risks customarily insured against, and (b) public liability insurance and other insurance as may be required by law or reasonably required by Bank.  All personal property and hazard insurance policies shall be with financially sound and reputable insurance companies in amount, form and content, and against such risks as are customarily maintained by companies engaged in the same or similar business operating in the same or similar locations as Borrower, and shall contain a lender’s loss payable endorsement in favor of and acceptable to Bank.  All general liability insurance policies shall be in amount, form and content, and written by companies as may be satisfactory to Bank, and shall show Bank as an additional insured.  All such policies shall contain a provision whereby they may not be canceled except upon thirty (30) days’ 
			
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prior written notice to Bank.  Borrower will promptly deliver to Bank, at Bank’s request, evidence satisfactory to Bank that such insurance has been so procured and, with respect to casualty insurance, made payable to Bank.  Borrower hereby appoints Bank, or any employee or agent of Bank, as Borrower’s attorney-in-fact, which appointment is coupled with an interest and irrevocable, and authorizes Bank, or any employee or agent of Bank, on behalf of Borrower, so long as an Event of Default then exists, to adjust and compromise any loss under said insurance and to endorse any check or draft payable to Borrower in connection with returned or unearned premiums on said insurance or the proceeds of said insurance, and any amount so collected may be applied toward satisfaction of the Obligations; provided, however, that Bank shall not be required hereunder so to act.  If Borrower fails to maintain insurance called for by this Section 6.5, Bank has the option (but not the obligation) to do so and Borrower agrees to repay all amounts so expended to Bank immediately upon demand, together with interest at the highest lawful default rate which could be charged by Bank on any Obligations.  Such amounts so expended by Bank shall constitute Obligations secured by this Agreement.
1.6Accounts.  Borrower shall maintain all of its primary depository, operating and merchant services accounts located in the United States with Bank.
1.7Financial Covenants.  Borrower shall at all times maintain the following financial ratios and covenants:
(a)Debt to EBITDA Coverage.  Applicable only (x) after the occurrence of a Cash Trigger Event and (y) when the current portion of Indebtedness owing to Bank (including amounts outstanding under the Line of Credit Sublimit and Credit Card Services Sublimit) (the “Bank Debt”) exceeds Five Million Dollars ($5,000,000), a ratio of at least [***], tested quarterly, of (a) the sum of Bank Debt plus capitalized leases and equipment leases, to (b) Adjusted EBITDA for the trailing four (4) quarters.
1.8Registration of Intellectual Property Rights. 
(a)Borrower shall register or cause to be registered on an expedited basis (to the extent not already registered) with the United States Patent and Trademark Office or the United States Copyright Office, as the case may be, those registrable intellectual property rights now owned or hereafter developed or acquired by Borrower, to the extent that Borrower, in its reasonable business judgment, deems it appropriate to so protect such intellectual property rights.
(b)Borrower shall give Bank written notice within thirty (30) days after the end of each calendar quarter of any applications or registrations of intellectual property rights filed with the United States Patent and Trademark Office and United States Copyright Office, including the date of such filing and the registration or application numbers, if any.
(c)Borrower shall give Bank written notice within thirty (30) days after the end of each calendar quarter of the filing of any applications or registrations with the United States Copyright Office, including the title of such intellectual property rights to be registered, as such title will appear on such applications or registrations, and the date such applications or registrations will be filed.
(d)Borrower shall (i) protect, defend and maintain the validity and enforceability of the Trademarks, Patents, Copyrights, and trade secrets that Borrower reasonably determines to be material to Borrower’s business, (ii) use commercially reasonable efforts to detect infringements of the Trademarks, Patents and Copyrights and promptly advise Bank in writing of material infringements detected and (iii) not allow any material Trademarks, Patents or Copyrights to be abandoned, forfeited or dedicated to the public without the written consent of Bank, which shall not be unreasonably withheld.
1.9Restricted Agreement Consents.  Prior to entering into or becoming bound by any material inbound license or agreement, Borrower shall provide written notice to Bank of the material terms of such license or agreement with a description of its likely impact on Borrower’s business or financial condition.
			
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1.10Further Assurances.  At any time and from time to time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Agreement.
1.11Creation/Acquisition of Subsidiaries.  In the event Borrower or any Subsidiary (other than Excluded Subsidiaries) creates or acquires any direct or indirect Subsidiary or Affiliate, Borrower and such Subsidiary or Affiliate shall notify Bank within thirty (30) days after the creation or acquisition of such new Subsidiary or Affiliate that is not an Excluded Subsidiary and take all such action as may be reasonably required by Bank to cause such Subsidiary or Affiliate to guarantee the Obligations of Borrower under the Loan Documents and grant a continuing pledge and security interest in and to the collateral of such Subsidiary (substantially as described on Exhibit B hereto), and Borrower shall grant and pledge to Bank a perfected security interest in the stock, units or other evidence of ownership of such Subsidiary.
7.NEGATIVE COVENANTS.
Borrower covenants and agrees that, so long as any credit hereunder shall be available and until the outstanding Obligations are paid in full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower shall not do any of the following without Bank’s prior written consent:
1.1Dispositions.  Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, or subject to Section 6.6, move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers.
1.2Change in Name, Location, Executive Office, or Executive Management; Change in Business; Change in Fiscal Year; Change in Control.  Change its name or the Borrower State or relocate its chief executive office or principal place of business without thirty (30) days prior written notification to Bank; replace its chief executive officer or chief financial officer without ten (10) days prior written notification to Bank (unless such prior written notification is not commercially practicable, in which event Borrower shall provide written notification to Bank promptly (and in no event later than five (5) days) following such replacement); engage in any business, or permit any of its Subsidiaries to engage in any business, other than or reasonably related or incidental to the businesses currently engaged in by Borrower; change its fiscal year end; have a Change in Control.  Borrower shall use commercially reasonable efforts to obtain a landlord waiver acceptable to Bank in its reasonable discretion for any leased location at which Collateral with a value in excess of $1,000,000 is located.
1.3Mergers or Acquisitions.  Except for Permitted Acquisitions, merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the Equity Interests or property of another Person, or enter into any agreement to do any of the same.
1.4Indebtedness.  Create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which impose on Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank.
1.5Encumbrances.  Create, incur, assume or allow any Lien with respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant to any other Person that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property (including Borrower’s Intellectual Property).
1.6Distributions.  Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any Equity Interests, except that Borrower may (i) repurchase the Equity Interests of former employees pursuant to equity repurchase agreements as long as an Event of Default does 
			
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not exist prior to such repurchase or would not exist after giving effect to such repurchase, and (ii) repurchase the Equity Interests of former employees pursuant to equity repurchase agreements by the cancellation of indebtedness owed by such former employees to Borrower regardless of whether an Event of Default exists.
1.7Investments.  Directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries to do so, other than Permitted Investments, or maintain or invest any of its property with a Person other than Bank or Bank’s Affiliates or permit any Subsidiary to do so unless such Person has entered into a control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or otherwise distributing property to Borrower. Further, Borrower shall not enter into any license or agreement with any Prohibited Territory or with any Person organized under or doing business in a Prohibited Territory.
1.8Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person other than equity financings with existing investors of Borrower which does not result in a Change in Control and the terms of such equity financing do not conflict or violate the terms of this Agreement.
1.9Subordinated Debt.  Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt and the terms of the subordination agreement relating to such Subordinated Debt, or amend any provision of any document evidencing such Subordinated Debt, except in compliance with the terms of the subordination agreement relating to such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent.
1.10Inventory and Equipment.  Store the Inventory or the Equipment with an aggregate value in excess of One Million Dollars ($1,000,000) with a bailee, warehouseman, or similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment.  Except for Inventory sold in the ordinary course of business and except for such other locations as Bank may approve in writing, Borrower shall keep the Inventory and Equipment with an aggregate value in excess of One Million Dollars ($1,000,000) only at the location set forth in Article 10, the locations disclosed in the current Schedule, and such other locations of which Borrower has (i) provided Bank prior written notice and (ii) taken all necessary action as requested by Bank in order to ensure that assets located at such locations are secured and that Bank has a perfected, first priority Lien on such assets (including, without limitation, executing additional security documentation and obtaining landlord waivers, mortgage waivers, bailee waivers, or equipment waivers in form and substance reasonably satisfactory to Bank).
1.11No Investment Company; Margin Regulation.  Become or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose.
8.EVENTS OF DEFAULT.
Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement:
8.1Payment Default.  If Borrower fails to pay any of the Obligations when due;
8.2Covenant Default.  
			
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(a)If Borrower fails to perform any obligation under Section 6.2, 6.4, 6.5, 6.6 or 6.7 or violates any of the covenants contained in Article 7 of this Agreement; or 
(b)If Borrower fails or neglects to perform or observe any other material term, provision, condition, covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within fifteen (15) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the fifteen (15) day period or cannot after diligent attempts by Borrower be cured within such fifteen (15) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, so long as Borrower continues to diligently attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made;
8.3Material Adverse Change.  If there occurs any circumstance or circumstances that could reasonably be expected to have a Material Adverse Effect.
8.4Attachment.  If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be made during such cure period);
8.5Insolvency.  If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will be made prior to the dismissal of such Insolvency Proceeding);
8.6Other Agreements.  If there is a default or other failure to perform in any agreement to which Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of One Million Dollars ($1,000,000) or that would reasonably be expected to have a Material Adverse Effect; 
8.7Subordinated Debt.  If Borrower makes any payment on account of Subordinated Debt, except to the extent the payment is allowed under any subordination agreement entered into with Bank;
8.8Judgements; Settlements.  If one or more (a) judgments, orders, decrees or arbitration awards requiring the Borrower to pay an aggregate amount of One Million Dollars ($1,000,000) or greater shall be rendered against Borrower and the same shall not have been vacated or stayed within ten (10) days thereafter (provided that no Credit Extensions will be made prior to such matter being vacated or stayed); or (b) settlements are agreed upon by Borrower for the payment by Borrower of an aggregate amount of One Million Dollars ($1,000,000) or greater or that could reasonably be expected to have a Material Adverse Effect.
8.9Misrepresentations.  If any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document.
			
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9.BANK’S RIGHTS AND REMEDIES.
8.1Rights and Remedies.  Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower:
(a)Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and payable without any action by Bank);
(b)Demand that Borrower  (i) deposit cash with Bank in an amount equal to the amount of any Letters of Credit remaining undrawn or outstanding Credit Card Services, as collateral security for the repayment of any future drawings under such Letters of Credit, or outstanding Credit Card Services, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the remaining term of the Letters of Credit or Credit Card Services fees, and Borrower shall promptly deposit and pay such amounts;
(c)Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank;
(d)Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable;
(e)Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral.  Borrower agrees to assemble the Collateral if Bank so requires, and to make the Collateral available to Bank as Bank may designate.  Borrower authorizes Bank to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in Bank’s determination appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith.  With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or remedies provided herein, at law, in equity, or otherwise;
(f)Set off and apply to the Obligations any and all (i) payments received by Bank, (ii) balances and deposits of Borrower held by Bank, and (iii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank;
(g)Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Collateral.  Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements shall inure to Bank’s benefit;
(h)Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Bank determines is commercially reasonable, and apply any proceeds to the Obligations in whatever manner or order Bank deems appropriate.  Bank may sell the Collateral without giving any warranties as to the Collateral.  Bank may specifically disclaim any warranties of title or the like.  This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.  If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Bank, and applied to the indebtedness of the purchaser.  If the purchaser fails to pay for the Collateral, Bank may resell the Collateral and Borrower shall be credited with the proceeds of the sale;
			
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(i)Bank may credit bid and purchase at any public sale; 
(j)Apply for the appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without regard to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person liable for any of the Obligations; and
(k)Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower.
Bank may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.
8.2Power of Attorney.  Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true and lawful attorney to:  (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to account debtors; (d) dispose of any Collateral; (e) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Borrower where permitted by law; provided Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of whether an Event of Default has occurred.  The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully repaid and performed and Bank’s obligation to provide advances hereunder is terminated.
8.3Accounts Collection.  At any time after the occurrence and during the continuation of an Event of Default, Bank may notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account.  Borrower shall collect all amounts owing to Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit.
8.4Bank Expenses.  At any time after the occurrence and during the continuation of an Event of Default, Bank may do any or all of the following after reasonable notice to Borrower:  (a) make payment of the same or any part thereof; (b) set up such reserves under the Revolving Line as Bank deems necessary to protect Bank from the exposure created by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with respect to such policies as Bank deems prudent.  Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove provided, and shall be secured by the Collateral.  Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement.
8.5Bank’s Liability for Collateral.  Bank has no obligation to clean up or otherwise prepare the Collateral for sale.  All risk of loss, damage or destruction of the Collateral shall be borne by Borrower.
8.6No Obligation to Pursue Others.  Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other Person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Bank’s rights against Borrower.  Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations.
			
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8.7Remedies Cumulative.  Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative.  Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity.  No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver.  No delay by Bank shall constitute a waiver, election, or acquiescence by it.  No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given.  Borrower expressly agrees that this Section 9.7 may not be waived or modified by Bank by course of performance, conduct, estoppel or otherwise.
8.8Demand; Protest.  Except as otherwise provided in this Agreement, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations.
8.9Shares.  Borrower recognizes that Bank may be unable to effect a public sale of any or all the Shares, by reason of certain prohibitions contained in federal securities laws and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  Borrower acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.  Bank shall be under no obligation to delay a sale of any of the Shares for the period of time necessary to permit the issuer thereof to register such securities for public sale under federal securities laws or under applicable state securities laws, even if such issuer would agree to do so. 
10.NOTICES.
Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by facsimile or email to Borrower or to Bank, as the case may be, at its addresses set forth below:
If to Borrower:            ON24, INC.
50 Beale Street, 8th Floor
San Francisco, CA 94105
Attn:  General Counsel
FAX: [***]
Email: [***]

If to Bank:            Comerica Bank
M/C 7578
39200 Six Mile Rd.
Livonia, MI 48152
Attn:  National Documentation Services

with a copy to:            Comerica Bank
333 W. Santa Clara St., 12th Floor
San Jose, CA 95113
Attn: Liz McDonald
FAX: [***]
Email: [***]
			
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The parties hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other.
11.CHOICE OF LAW, VENUE, AND JURISDICTION; JURY TRIAL WAIVER.
8.1THE PARTIES HEREBY AGREE THAT THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS, INSTRUMENTS AND AGREEMENTS RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO ITS CONFLICTS OF LAW PROVISIONS. BORROWER AND BANK EACH HEREBY IRREVOCABLY AND UNCONDITIONALLY (I) CONSENTS AND SUBMITS TO THE SOLE AND EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF CALIFORNIA, AND ANY APPELLATE COURT THEREOF, (II) AGREES THAT ALL ACTIONS AND PROCEEDINGS BASED UPON, ARISING OUT OF, RELATING TO OR OTHERWISE CONCERNING THIS AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT  OR AGREEMENT RELATED TO THIS AGREEMENT, INCLUDING ALL CLAIMS FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, SHALL SOLELY AND EXCLUSIVELY BE BROUGHT, HEARD, AND DETERMINED (LITIGATED) IN SUCH COURTS, (III) ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, THE SOLE AND EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, (IV) WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED UPON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO BRINGING OR MAINTAINING ANY SUCH ACTION OR PROCEEDING IN SUCH JURISDICTION, AND (V) AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT, OR ANY  SUCH OTHER DOCUMENT, INSTRUMENT OR AGREEMENT.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF BANK TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH THE ENFORCEMENT OF ANY LIENS OR SECURITY INTERESTS IN FAVOR OF BANK ON ANY OF BORROWER’S PROPERTIES OR ASSETS.  
8.2JURY TRIAL WAIVER.  THE UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES.  TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED PARTIES.
12.JUDICIAL REFERENCE PROVISION.
8.1In the event the Jury Trial Waiver set forth above is not enforceable, the parties elect to proceed under this Judicial Reference Provision.
8.2With the exception of the items specified in Section 12.3, below, any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the undersigned parties (collectively in this Section, the “Loan Documents”), will be resolved by a reference proceeding in California in accordance with the provisions of Sections 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be in the state or federal court in the county or district where the real property involved in the action, if any, is located or in the state or federal court in the county or district where venue is otherwise appropriate under applicable law (the “Court”).
8.3The matters that shall not be subject to a reference are the following: (i) foreclosure of any security interests in real or personal property, (ii) exercise of self-help remedies (including, without limitation, 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 19    August 31, 2021

set-off), (iii) appointment of a receiver and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of attachment, writs of possession, temporary restraining orders or preliminary injunctions). This Judicial Reference Provision does not limit the right of any party to exercise or oppose any of the rights and remedies described in clauses (i) and (ii) or to seek or oppose from a court of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those items does not waive the right of any party to a reference proceeding pursuant to this Judicial Reference Provision as provided herein.
8.4The referee shall be a retired judge or justice selected by mutual written agreement of the parties. If the parties do not agree within ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. Pursuant to CCP § 170.6, each party shall have one peremptory challenge to the referee selected by the Presiding Judge of the Court (or his or her representative).
8.5The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested, subject to change in the time periods specified herein for good cause shown, to (i) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all issues of law or fact within one hundred twenty (120) days after the date of the conference and (iii) report a statement of decision within twenty (20) days after the matter has been submitted for decision.  
8.6The referee will have power to expand or limit the amount and duration of discovery.  The referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding.
8.7Except as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial.
8.8The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a court proceeding, including without limitation motions for summary judgment or summary adjudication. The referee shall issue a decision at the close of the reference proceeding which disposes of all claims of the parties that are the subject of the reference.  Pursuant to CCP § 644, such decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court and any such decision will be final, binding and conclusive.  The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order entered by the referee.  The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding under this provision.
8.9If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration.   The arbitration will be conducted by a retired judge or 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 20    August 31, 2021

justice, in accordance with the California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding.
8.10THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS JUDICIAL REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS JUDICIAL REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.
13.GENERAL PROVISIONS.
8.1Successors and Assigns.  This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties and shall bind all persons who become bound as a debtor to this Agreement; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion.  Bank shall have the right without the consent of or notice to Borrower to sell, assign, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits hereunder.
8.2INDEMNIFICATION AND HOLD HARMLESS.  WITHOUT LIMITING ANY OTHER PROVISIONS OF THIS AGREEMENT, BORROWER AGREES TO INDEMNIFY AND HOLD BANK HARMLESS FROM AND AGAINST ALL LOSSES, COSTS, DAMAGES, LIABILITIES AND EXPENSES, INCLUDING, WITHOUT LIMITATION, IN-HOUSE AND OUTSIDE ATTORNEYS’ FEES AND DISBURSEMENTS, INCURRED BY BANK IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY LOANS OR TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR BY REASON OF ANY DEFAULT OR EVENT OF DEFAULT, OR ENFORCING THE OBLIGATIONS OF BORROWER OR ANY LOAN PARTY UNDER THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AS APPLICABLE, OR IN EXERCISING ANY RIGHTS OR REMEDIES OF BANK OR IN THE PROSECUTION OR DEFENSE OF ANY ACTION OR PROCEEDING CONCERNING ANY MATTER GROWING OUT OF OR CONNECTED WITH THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS; PROVIDED, HOWEVER, THAT THE FOREGOING SHALL NOT BE APPLICABLE, AND THE BORROWER SHALL NOT BE LIABLE FOR ANY SUCH LOSSES, COSTS, DAMAGES, LIABILITIES OR EXPENSES, TO THE EXTENT (BUT ONLY TO THE EXTENT) THE SAME ARISE OR RESULT FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF BANK OR ANY OF ITS AGENTS OR EMPLOYEES. THE PROVISIONS OF THIS SECTION SHALL SURVIVE REPAYMENT OF THE INDEBTEDNESS AND SATISFACTION OF ALL OBLIGATIONS OF BORROWER TO BANK AND TERMINATION OF THIS AGREEMENT.
8.3Time of Essence.  Time is of the essence for the performance of all obligations set forth in this Agreement.
8.4Severability of Provisions.  Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.
8.5Amendments in Writing, Integration.  All amendments to or terminations of this Agreement or the other Loan Documents must be in writing signed by the parties.  All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the Loan Documents.
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 21    August 31, 2021

8.6Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.
8.7  Survival.  All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower.  The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 13.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run.
8.8Confidentiality.  In handling any confidential information, Bank and all employees and agents of Bank shall exercise the same degree of care that Bank exercises with respect to its own proprietary information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such information may be made (i) to the parent, subsidiaries, or Affiliates and service providers of Bank in connection with their present or prospective business relations with Borrower, (ii) to prospective transferees, participants, or purchasers of any interest in the Obligations, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) as may be required in connection with the examination, audit or similar investigation of Bank, (v) to Bank’s accountants, auditors and regulators, and (vi) as Bank may determine in connection with the enforcement of any remedies hereunder.  Confidential information hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of Bank when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or (b) is disclosed to Bank by a third party, provided Bank does not have actual knowledge that such third party is prohibited from disclosing such information.  .
8.9Publicity.  Bank may, with Borrower’s consent which shall not be unreasonably withheld, (i) disclose the name of Borrower and the existence of the credit facilities described herein in marketing, promotions and advertising, including, without limitation, press releases, presentations, publications, internet websites, e-mails, and internet advertisements, and (ii) display Borrower’s logo and/or trademark on its website and other marketing materials consistent with Bank’s practices with respect to its loan portfolio.
8.10Correction of Loan Documents.  Bank may correct patent errors and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties.
8.11Electronic Signatures.  The parties agree that this Agreement and each of the other Loan Documents may be executed by electronic signatures. The parties further agree that the electronic signature of a party to this Agreement and each of the other Loan Documents shall be as valid as an original manually executed signature of such party and shall be effective to bind such party to this Agreement or such other Loan Document, and that any electronically signed document (including this Agreement and such other Loan Document) shall be deemed (i) to be “written” or “in writing,” and (ii) to have been “signed” or “duly executed”.  For purposes hereof, “electronic signature” means a manually-signed original signature that is then transmitted by electronic means or a signature through an electronic signature technology platform.  Notwithstanding the foregoing, Bank may require original manually executed signatures.  If Bank determines in its sole discretion that the Agreement has not been timely executed by Borrower, then the Agreement shall be considered null and void.  Borrower hereby agrees that Bank shall not have any liability of any nature or kind to any loan party, including, but not limited to Borrower, in connection therewith.
8.12Amendment and Restatement.  This Agreement is intended to and does completely amend and restate, without novation, the Original Agreement and the Obligations (as defined in the Original Agreement) thereunder and all such Obligations are in all respects continuing but as modified as provided in this Agreement.  All security interests granted by Borrower under the Original Agreement and under each Loan Document executed in connection with the Original Agreement are hereby confirmed and ratified and shall continue to secure all Obligations under this Agreement from the date initially granted.  Without limiting the foregoing, each reference to the term “Loan Agreement” in any Loan Document executed in connection with the Original 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 22    August 31, 2021

Agreement is hereby amended to, and shall, mean and refer to this Agreement.  Unless any Loan Document has been expressly amended and restated pursuant to this Agreement, any Loan Document as defined in, or executed pursuant to, the Original Agreement shall constitute a Loan Document hereunder.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES FOLLOW]
			
	Comerica Bank – Sixth A&R Loan and Security Agreement    Page 23    August 31, 2021

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.  Borrower also acknowledges and agrees that Borrower’s electronic signature below indicates Borrower’s agreement to, and intention to be legally bound by, all of the terms and conditions of this Agreement.
									
			ON24, INC., a Delaware corporation
			
			
			By: /s/ Steven Vattuone    

			
			
			
			Name: Steven Vattuone
			Title: Chief Financial Officer
			
			
			COMERICA BANK, a Texas banking association
			
			
			By: /s/ Elizabeth McDonald    

			
			
			
			Name: Elizabeth McDonald
			Title: Vice President
			

			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Signature Page

EXHIBIT A
DEFINITIONS
“Accounts” mean all presently existing and hereafter arising accounts, contract rights, payment intangibles and all other forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing.
“Acquisition” is any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business, line of business or division or other unit of operation of a Person, (b) the acquisition of fifty percent (50%) or more of the capital stock, partnership or limited liability company interest, or other equity securities or equity ownership interests of such Person, whether or not involving a merger, consolidation or similar transaction with such other Person, or otherwise causing any Person to become a Subsidiary of Borrower, or (c) the acquisition of, or the right to use, develop or sell (in each case, including through licensing), any product, product line or Intellectual Property of or from any other Person.
“Adjusted EBITDA” means [***].
“Advance” or “Advances” mean a cash advance or cash advances under the Revolving Line.
“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors, and partners.
“Annualized Renewal Rate” means (x) one hundred percent (100%) less (y) the trailing twelve (12) months Churn Rate.
“Applicable Margin” means zero percent (0%) per annum for the Advances.
“Bank Expenses” mean all costs or expenses of Bank, or any other holder or owner of the Loan Documents (including, without limit, court costs, legal expenses and reasonable attorneys’ fees and expenses, whether generated in-house or by outside counsel, whether or not suit is instituted, and, if suit is instituted, whether at trial court level, appellate court level, in a bankruptcy, probate or administrative proceeding or otherwise) incurred in connection with the preparation, negotiation, execution, delivery, amendment, administration, and performance, or incurred in collecting, attempting to collect under the Loan Documents or the Obligations, or incurred in defending the Loan Documents, or incurred in any other matter or proceeding relating to the Loan Documents or the Obligations; and reasonable Collateral audit fees.
“Board of Directors” means the Board of Directors of Borrower.
“Borrower State” means Delaware, the state under whose laws Borrower is organized.
“Borrower’s Books” mean all of Borrower’s books and records including:  ledgers; records concerning Borrower’s assets or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing such information.
“Borrowing Base” means (i) prior to the Cash Trigger Event, the amount of the Revolving Line, and (ii) on and after the occurrence of the Cash Trigger Event, as of any date of determination, an amount equal to (a) the trailing five (5) months Recurring Revenue for the most recently ended calendar month, multiplied by (b) the Annualized Renewal Rate, in each case as determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrower or from other information then available to Bank including information obtained from audits of the 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

Collateral and working capital or other similar audits conducted by or on behalf of Bank and the SaaS Reports, less such reserves as may be established, by Bank from time to time in its good faith credit judgment.
“Borrowing Base Certificate” means the certificate substantially in the form attached hereto as Exhibit D.
“Business Day” means any day, other than a Saturday, Sunday or any other day designated as a holiday under Federal or applicable State statute or regulation, on which Bank is open for all or substantially all of its domestic and international business (including dealings in foreign exchange) in San Jose, California, and, in respect of notices and determinations relating the Daily Adjusting LIBOR Rate, also a day on which dealings in dollar deposits are also carried on in the London interbank market and on which banks are open for business in London, England. 
“Cash” means unrestricted cash and cash equivalents.
“Cash Trigger Event” means the date on which the sum of (i) Borrower’s Cash held in deposit accounts maintained with Bank as required pursuant to Section 6.6 plus (ii) Borrower’s Cash held in accounts maintained with an institution other than Bank which are covered by control agreements in form and substance satisfactory to Bank, equals less than One Hundred Million Dollars ($100,000,000).
“Change in Control” shall mean any transaction or series of related transactions in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of Equity Interests then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction.
“Change in Deferred Revenue” means, an amount measured as of the last day of each fiscal quarter, equal to (x) the deferred revenue balance (determined in accordance with GAAP) as of the last day of such fiscal quarter, minus (y) the deferred revenue balance (determined in accordance with GAAP) for the quarter ended twelve (12) months prior to the last day of such fiscal quarter.
“Change in Law” means the occurrence, after the date hereof, of any of the following: (i) the adoption or introduction of, or any change in any applicable law, treaty, rule or regulation (whether domestic or foreign) now or hereafter in effect and whether or not applicable to Bank on such date, or (ii) any change in interpretation, administration or implementation thereof of any such law, treaty, rule or regulation by any Governmental Authority, or (iii) the issuance, making or implementation by any Governmental Authority of any interpretation, administration, request, regulation, guideline, or directive (whether or not having the force of law), including without limitation, any risk-based capital guidelines or any interpretation, administration, request, regulation, guideline, or directive relating to liquidity.  For purposes of this definition, (x) a change in law, treaty, rule, regulation, interpretation, administration or implementation shall include, without limitation, any change made or which becomes effective on the basis of a law, treaty, rule, regulation, interpretation administration or implementation then in force, the effective date of which change is delayed by the terms of such law, treaty, rule, regulation, interpretation, administration or implementation, and (y) the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, H.R. 4173) and all requests, rules, regulations, guidelines, interpretations or directives promulgated thereunder or issued in connection therewith shall be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or promulgated, whether before or after the date hereof, and (z) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall each be deemed to be a “Change in Law,” regardless of the date enacted, adopted, issued or implemented. 
“Chief Executive Office State” means where Borrower’s chief executive office is located, which as of the Closing Date is California.
“Churn Rate” means [***].
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

“Closing Date” means the date of this Agreement.
“Code” means the California Uniform Commercial Code as amended or supplemented from time to time.
“Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described on Exhibit B, except to the extent any such property (i) is non-assignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the Code), or (ii) the granting of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral.
“Collateral State” means the state or states where the Collateral is located, which as of the Closing Date, is California and Colorado.
“Contingent Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued or provided for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designed to protect such Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the ordinary course of business.  The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by Bank in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement.
“Copyrights” mean any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held.
“Credit Card Services Sublimit” means a sublimit for corporate credit cards and e-commerce or merchant account services under the Revolving Line not to exceed One Million Dollars ($1,000,000).
“Credit Extension” means each Advance or any other extension of credit by Bank to or for the benefit of Borrower hereunder.
“Daily Adjusting LIBOR Rate” means, for any day, a per annum interest rate which is equal to the quotient of the following:
(1)for any day, the per annum rate of interest determined on the basis of the rate for deposits in United States Dollars for a period equal to one (1) month appearing on Page BBAM of the Bloomberg Financial Markets Information Service at or about 11:00 a.m. (London, England time) (or as soon thereafter as practical) on such day, or if such day is not a Business Day, on the immediately preceding Business Day.  In the event that such rate does not appear on Page BBAM of the Bloomberg Financial Markets Information Service (or otherwise on such Service) on any day, the “Daily Adjusting LIBOR Rate” for such day shall be determined by reference to such other publicly available service for displaying eurodollar rates as may be reasonably selected by Bank, or in the absence of such other service, the “Daily Adjusting LIBOR Rate” for such day shall, instead, be determined based upon the average of the rates at which Bank is offered dollar deposits at or about 11:00 a.m. (Detroit, Michigan time) (or as soon thereafter as practical), on such day, or if such day is not a Business Day, on the immediately preceding Business Day, in the interbank eurodollar market in an amount comparable to 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

the applicable principal amount of Obligations hereunder which is to bear interest on the basis of the Daily Adjusting LIBOR Rate and for a period equal to one (1) month;
divided by
(2)1.00 minus the maximum rate (expressed as a decimal) on such day at which Bank is required to maintain reserves on “Euro-currency Liabilities” as defined in and pursuant to Regulation D of the Board of Governors of the Federal Reserve System or, if such regulation or definition is modified, and as long as Bank is required to maintain reserves against a category of liabilities which includes eurodollar deposits or includes a category of assets which includes eurodollar loans, the rate at which such reserves are required to be maintained on such category.
provided, however, and notwithstanding anything to the contrary set forth in the Agreement, if at any time the Daily Adjusting LIBOR Rate determined as provided above would be less than zero percent (0%) then the Daily Adjusting LIBOR Rate shall be deemed to be zero percent (0%) per annum for all purposes of the Agreement (the “Daily Adjusting LIBOR 0% Floor”).  Each calculation by Bank of the Daily Adjusting LIBOR Rate shall be conclusive and binding for all purposes, absent manifest error.
“Dollars” mean lawful money of the United States.
“Environmental Laws” mean all laws, rules, regulations, orders and the like issued by any federal, state, municipal, local, foreign, or other governmental or quasi-governmental authority or any agency pertaining to the environment or to any hazardous materials or wastes, toxic substances, flammable, explosive or radioactive materials, asbestos or other similar materials.
“Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest.
“Equity Interests” mean, with respect to any Person, the capital stock, partnership, membership or limited liability company interest, or other equity securities or equity ownership interest of such Person.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder.
“Event of Default” has the meaning assigned in Article 8.
“Excluded Subsidiary” means a Subsidiary that is not organized under the laws of the United States or any state, district or territory thereof.
“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time to time in the United States.
“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including, without limitation, any supranational bodies such as the European Union or the European Central Bank).
“Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, (d) all Contingent Obligations, and (e) all obligations arising under the Credit Card Services Sublimit, if any.
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

“Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.
“Intellectual Property” means any Copyrights, Patents, Trademarks, service marks and applications therefor, now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing.
“Inventory” means all present and future inventory in which Borrower has any interest.
“Investment” means any beneficial ownership (including Equity Interests) of any Person, or any loan, advance or capital contribution to any Person.
“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.
“Letter of Credit” means a commercial or standby letter of credit or similar undertaking issued by Bank at Borrower’s request in accordance with Section 2.1(b)(iii).
“Letter of Credit Sublimit” means a sublimit for Letters of Credit under the Revolving Line not to exceed Four Million Dollars ($4,000,000).
“Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.
“Loan Documents” mean, collectively, this Agreement, any guaranty, any note or notes executed by Borrower, and any other document, instrument or agreement entered into in connection with this Agreement, all as amended or extended from time to time.
“Material Adverse Effect” means (i) a material adverse change in Borrower’s business or financial condition, (ii) a material impairment in the ability of Borrower to repay all or any portion of the Obligations or in otherwise performing Borrower’s obligations under the Loan Documents, or (iii) a material impairment in the perfection, value or priority of Bank’s security interests in the Collateral.
“Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments (including promissory notes), securities, documents of title, and chattel paper, and Borrower’s Books relating to any of the foregoing.
“Obligations” mean all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise.
“Patents” mean all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.
“Periodic Payments” mean all installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower and Bank.
“Permitted Acquisition” is any Acquisition which is conducted in accordance with the following requirements: (a) of a business or Person or product engaged in a line of business related to that of Borrower or its Subsidiaries; (b) if such Acquisition is structured as a stock acquisition, then the Person so acquired shall either (i) become a wholly-owned Subsidiary of Borrower or of a Subsidiary and Borrower shall comply, or cause such Subsidiary to comply, 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

with Section 6.11 hereof or (ii) such Person shall be merged with and into Borrower (with Borrower being the surviving entity); (c) if such Acquisition is structured as the acquisition or in-licensing of assets, (i) such assets shall be acquired by Borrower that complies with Section 6.11 immediately prior to the closing of such Acquisition; (ii) such assets shall constitute “Collateral;” and (iii) such assets shall be free and clear of Liens other than Permitted Liens; (d) Borrower shall have delivered to Bank not less than fifteen (15) nor more than sixty (60) days prior to the date of such Acquisition, notice of such Acquisition together with pro forma projected financial information, copies of all material documents relating to such acquisition, and historical financial statements for such acquired entity, division or line of business, in each case in form and substance reasonably satisfactory to Bank and demonstrating compliance with the covenants set forth in Section 6.7 hereof on a pro forma basis as if such Acquisition occurred on the first day of the most recent measurement period; (e) both immediately before and after such Acquisition no Event of Default shall have occurred and be continuing; (f) the sum of the purchase price of such proposed new Acquisition, computed on the basis of total acquisition consideration paid, incurred or to be paid in cash by Borrower (or any Subsidiary of Borrower) with respect thereto shall not be greater than One Million Dollars ($1,000,000) individually or in the aggregate for all such Acquisitions except as otherwise approved by Bank in writing prior to such Acquisition; and (g) such Acquisition shall have been approved by Bank in Bank’s reasonable discretion after satisfactory due diligence and review by Bank’s investment committee, including review of the financial performance and cash burn relative to Borrower’s existing business.
“Permitted Indebtedness” means:
(a)Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document;
(b)Indebtedness existing on the Closing Date and disclosed in the Schedule;
(c)Indebtedness not to exceed Seven Million Dollars ($7,000,000) in the aggregate secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness; 
(d)Subordinated Debt; 
(e)Indebtedness to trade creditors and intercompany payables incurred in the ordinary course of business;
(f)Indebtedness that constitutes a Permitted Investment; and 
(g)Extensions, re-financings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.
“Permitted Investments” mean:
(a)Investments existing on the Closing Date disclosed in the Schedule;
(b)(i) Marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof maturing within two (2) years from the date of acquisition thereof, (ii) commercial paper maturing no more than two (2) years from the date of creation thereof and currently having rating of at least A-3 or P-3 from either Standard & Poor’s Rating Service or Moody’s Investors Service, Inc., (iii) Bank’s certificates of deposit maturing no more than two (2) years from the date of investment therein, and (iv) Bank’s money market accounts and deposit accounts;
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

(c)Repurchases of Equity Interests from former employees, directors, or consultants of Borrower under the terms of applicable equity repurchase agreements (i) in an aggregate amount not to exceed One Hundred Thousand Dollars ($100,000) in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases, or (ii) in any amount where the consideration for the repurchase is the cancellation of indebtedness owed by such former employees, directors or consultants to Borrower regardless of whether an Event of Default exists;
(d)Investments accepted in connection with Permitted Transfers;
(e)Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not to exceed One Million Dollars ($1,000,000) in the aggregate in any fiscal year;
(f)Investments not to exceed One Million Dollars ($1,000,000) in the aggregate in any fiscal year consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of Equity Interests of Borrower or its Subsidiaries pursuant to employee equity purchase agreements approved by Borrower’s Board of Directors, provided that any repayment of such loans or advances will not reset the amount for the applicable fiscal year;
(g)Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s business;
(h)Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business, provided that this subparagraph (h) shall not apply to Investments of Borrower in any Subsidiary; 
(i)Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed One Million Dollars ($1,000,000) in the aggregate in any fiscal year; and
(j)Permitted Acquisitions.
“Permitted Liens” mean:
(a)Any Liens existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied with the proceeds of the Advances) or arising under this Agreement or the other Loan Documents;
(b)Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings and for which Borrower maintains adequate reserves, provided the same have no priority over any of Bank’s security interests;
(c)Liens securing Indebtedness not to exceed Seven Million Dollars ($7,000,000) in the aggregate (i) upon or in any Equipment acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such Equipment, or (ii) existing on such Equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the proceeds of such Equipment;
(d)Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses Error! Reference source not found. through 
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

Error! Reference source not found. above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase; and
(e)Liens relating to Subordinated Debt, if approved by Bank and if appropriate subordination agreements or intercreditor agreements, containing terms satisfactory to Bank in its sole discretion, have been delivered to Bank;
(f)Liens securing Indebtedness permitted pursuant to clause (i) of the definition of “Permitted Indebtedness”;
(g)Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Sections 8.4 (attachment) or 8.8 (judgments/settlements); and
(h)Liens in favor of other financial institutions arising in connection with Borrower’s deposit accounts held at such institutions to secured standard fees for deposit services charged by, but not financing made available by such institutions, provided that Bank has a perfected security interest in the amounts held in such deposit accounts.
“Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by Borrower or any Subsidiary of:  
(a)Inventory in the ordinary course of business; 
(b)Non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; 
(c)Worn-out, obsolete, or surplus Equipment;
(d)Transfers that are explicitly permitted by Section 7; or 
(e)Other assets of Borrower or its Subsidiaries that do not in the aggregate exceed One Million Dollars ($1,000,000) during any fiscal year.
“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency.
“Prime Rate” means the per annum interest rate established by Bank as its prime rate for its borrowers, as such rate may vary from time to time, which rate is not necessarily the lowest rate on loans made by Bank at any such time.
“Prime Referenced Rate” means, for any day, a per annum interest rate which is equal to the Prime Rate in effect on such day, but in no event and at no time shall the Prime Referenced Rate be less than the sum of the Daily Adjusting LIBOR Rate for such day plus two and one-half percent (2.50%) per annum.  If, at any time, Bank determines that it is unable to determine or ascertain the Daily Adjusting LIBOR Rate for any day, the Prime Referenced Rate for each such day shall be the Prime Rate in effect at such time, but not less than two and one-half percent (2.50%) per annum.  
“Prohibited Territory” means any person or country listed by the Office of Foreign Assets Control of the United States Department of Treasury as to which transactions between a United States Person and that territory are prohibited.
“Recurring Revenue” means [***].
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

“Request for Advance” means a Loan Advance/Paydown Request Form issued by the Borrower under the Agreement in the form annexed to this Agreement as Exhibit C.
“Responsible Officer” means each of the Authorized Signers set forth in the Corporation Resolutions and Incumbency Certification Authority to Procure Loans. 
“Restricted Agreement” is any material license or other material agreement (other than over-the-counter software that is commercially available to the public and “open source” licenses) to which Borrower is a party or under which Borrower is bound (including licenses and agreements under which Borrower is the licensee): (a) that prohibits or otherwise restricts Borrower from assigning to Bank, or granting to Bank a Lien in, Borrower’s interest in such license or agreement, the rights arising thereunder or any other property, or (b) for which a default under or termination of such license or contract could interfere with the Bank’s right to use, license, sell or collect any Collateral or otherwise exercise its rights and remedies with respect to the Collateral under the Loan Documents or applicable law. 
“Revolving Line” means a Credit Extension of up to Fifty Million Dollars ($50,000,000) (inclusive of the aggregate face amount of Letters of Credit issued under the Letter of Credit Sublimit, and the aggregate limits of the corporate credit cards issued to Borrower and merchant credit card processing reserves under the Credit Card Services Sublimit).
“Revolving Maturity Date” means August 31, 2024.
“Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any.
“Shares” has the meaning set forth in Section 4.4.
“SOS Reports” mean the official reports from the Secretaries of State of each Collateral State, Chief Executive Office State, Borrower State and other applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record as of the date of such report.
“Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank).
“Subsidiary” means any corporation, partnership or limited liability company or joint venture in which (i) any general partnership interest or (ii) more than fifty percent (50%) of the Equity Interests of which by the terms thereof ordinary voting power to elect the Board of Directors, managers or trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate.
“Trademarks” mean any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.
“United States” means the United States of America.
			
	Comerica Bank – Sixth A&R Loan and Security Agreement         Exhibit A

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