Document:

Exhibit 10.20

 

INDEMNIFICATION AGREEMENT

 

This Agreement is made as of
the      day of              
2004, by and between Guitar Center, Inc., a Delaware corporation (the “Company”),
and the undersigned                       (the
“Indemnitee”), with reference to the following facts:

 

The Indemnitee is willing, under certain circumstances, to serve as a
Director and\or Officer of the
Company.  The Indemnitee has indicated
that he does not regard the indemnities available under the Company’s Bylaws as
adequate to protect him against the risks associated with his service to the
Company.  In this connection, the Company
and the Indemnitee now agree that they should enter into this Indemnification
Agreement in order to provide greater protection to Indemnitee against such
risks of service to the Company.

 

Section 145 of the General Corporation Law of the State of Delaware,
under which Law the Company is organized, empowers corporations to indemnify a
person serving as a director, officer, employee or agent of the Company and a
person who serves at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust, or
other enterprise, and said Section 145 and the Bylaws of the Company specify
that the indemnification set forth in said Section 145 and in the Bylaws,
respectively, shall not be deemed exclusive of any other rights to which those
seeking indemnification may be entitled under any Bylaw, agreement, vote of
stockholders or disinterested directors or otherwise.

 

In order to induce the Indemnitee to serve as a Director and\or Officer
of the Company and in consideration of his continued service, the Company
hereby agrees, as of the date first set forth above, to indemnify the
Indemnitee as follows:

 

1.  Indemnity.  The Company will indemnify the Indemnitee,
his executors, administrators or assigns, for any Expenses (as defined below)
which the Indemnitee is or becomes legally obligated to pay in connection with
any Proceeding.  As used in this Agreement
the term “Proceeding” shall include any threatened, pending or completed
claim, action, arbitration, alternate dispute resolution mechanism,
investigation, administrative hearing, suit or proceeding, whether brought by
or in the right of the Company or otherwise and whether of a civil, criminal,
administrative or investigative nature, in which the Indemnitee may be or may
have been involved as a party or otherwise, by reason of the fact that
Indemnitee is or was, or has agreed to become, a director or officer of the
Company, by reason of any actual or alleged error or misstatement or misleading
statement made or suffered by the Indemnitee, by reason of any action taken by
him or of any inaction on his part while acting as such director or officer, or
by reason of the fact that he was serving at the request of the Company as a
director, trustee, officer, employee or agent of the Company or another
corporation, partnership, joint venture, trust or other enterprise; provided, that in each such case
Indemnitee acted in good faith and in a manner which he reasonably believed to
be in or not opposed to the best interests of the Company, and, in the case of
a criminal proceeding, in addition had no reasonable cause to believe that his
conduct was unlawful.  As used in this
Agreement, the term “other enterprise” shall include (without limitation)
employee benefit plans and administrative committees thereof, and the term “fines”
shall include (without limitation) any excise tax assessed with respect to any
employee

 

1

 

benefit plan.

 

2.  Expenses.  As used in this Agreement, the term “Expenses”
shall include (without limitation) damages, judgments, fines, penalties,
settlements and costs, retainers, court costs, transcript costs, fees of
witnesses, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage and delivery fees, service fees, attorneys’ fees and
disbursements and costs of attachment or similar bonds, investigations, and all
other reasonable costs and expenses of the types customarily incurred in
connection with prosecuting, defending, preparing to prosecute or defend,
investigating or being or preparing to be a witness in a Proceeding and any
expenses of establishing a right to indemnification under this Agreement.

 

3.  Enforcement.  If a claim or request under this Agreement is
not paid by the Company, or on its behalf, within thirty days after a written
claim or request has been received by the Company, the Indemnitee may at any
time thereafter bring suit against the Company to recover the unpaid amount of
the claim or request and if successful in whole or in part, the Indemnitee
shall be entitled to be paid also the Expenses of prosecuting such suit.  The Company shall have the right to recoup
from the Indemnitee the amount of any item or items of Expenses theretofore
paid by the Company pursuant to this Agreement, to the extent such Expenses are
not reasonable in nature or amounts; provided,
however, that the Company shall have the burden of proving such
Expenses to be unreasonable.  The burden
of proving that the Indemnitee is not entitled to indemnification for any other
reason shall be upon the Company.

 

4.  Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all papers required and
shall do everything that may be necessary to secure such rights, including the
execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights.

 

5.  Exclusions.  The Company shall not be liable under this
Agreement to pay any Expenses in connection with any claim made against the
Indemnitee:

 

(a)           to the extent that
payment is actually made to the Indemnitee under a valid, enforceable and
collectible insurance policy;

 

(b)           to the extent that
the Indemnitee is indemnified and actually paid otherwise than pursuant to this
Agreement;

 

(c)           in connection with a
judicial action by or in the right of the Company, in respect of any claim,
issue or matter as to which the Indemnitee shall have been adjudged to be
liable for negligence or misconduct in the performance of his duty to the
Company unless and only to the extent that any court in which such action was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably entitled to indemnity for such expenses as such court
shall deem proper;

 

(d)           with respect to
proceedings or claims initiated or brought voluntarily by Indemnitee and not by
way of defense, except with respect to

 

2

 

proceedings
brought to establish or enforce a right to indemnification under this Agreement
or any other statute or law or as otherwise required under the General
Corporation Law of the State of Delaware, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board has approved the initiation or bringing of such suit;

 

(e)           if it is proved by
final judgment in a court of law or other final adjudication to have been based
upon or attributable to the Indemnitee’s in fact having gained any personal
profit or advantage to which he was not legally entitled;

 

(f)            for a disgorgement
of profits made from the purchase and sale by the Indemnitee of securities
pursuant to Section 16(b) of the Securities Exchange Act of 1934 and amendments
thereto or similar provisions of any state statutory law or common law;

 

(g)           brought about or
contributed to by the dishonesty of the Indemnitee seeking payment hereunder;
however, notwithstanding the foregoing, the Indemnitee shall be protected under
this Agreement as to any claims upon which suit may be brought against him by
reason of any alleged dishonesty on his part, unless a judgment or other final
adjudication thereof adverse to the Indemnitee shall establish that he
committed (i) acts of active and deliberate dishonesty, (ii) with actual
dishonest purpose and intent, (iii) which acts were material to the cause of
action so adjudicated;

 

(h)           for any judgment,
fine or penalty which the Company is prohibited by applicable law from paying
as indemnity or for any other reason; or

 

(i)            arising out of
Indemnitee’s breach of an employment agreement with the Company (if any) or any
other agreement with the Company or any of its subsidiaries.

 

6.  Indemnification of Expenses of Successful
Party.  Notwithstanding any other
provision of this Agreement, to the extent that the Indemnitee has been
successful on the merits or otherwise in defense of any Proceeding or in
defense of any claim, issue or matter therein, including dismissal without
prejudice, Indemnitee shall be indemnified against any and all Expenses
incurred in connection therewith.

 

7.  Partial Indemnification.  If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of Expenses, but not, however, for the total amount thereof, the
Company shall nevertheless indemnify the Indemnitee for the portion of such
Expenses to which the Indemnitee is entitled.

 

8.  Advance of Expenses.  Expenses incurred by the Indemnitee in
connection with any Proceeding, except the amount of any settlement, shall be
paid by the Company in advance upon request of the Indemnitee that the Company
pay such Expenses.  The Indemnitee hereby
undertakes to repay to the Company the amount of any Expenses theretofore paid
by the Company to the extent that it is ultimately determined that such
Expenses were not reasonable or that the Indemnitee is not entitled to
indemnification.

 

3

 

9.  Approval of Expenses.  No Expenses for which indemnity shall be
sought under this Agreement, other than those in respect of judgments and
verdicts actually rendered, shall be incurred without the prior consent of the
Company, which consent shall not be unreasonably withheld.

 

10.  Assumption of Defense.  In the event the Company shall be obligated
to pay the expenses of any proceeding against the Indemnitee, the Company, if
appropriate, shall be entitled to assume the defense of such proceeding with
counsel approved by Indemnitee which approval shall not be unreasonably
withheld, upon the delivery to Indemnitee of written notice of its election to
do so.  After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the
Company, the Company will not be liable to Indemnitee under this Agreement for
any fees of counsel subsequently incurred by Indemnitee with respect to the
same proceeding, unless (i) the employment of counsel by Indemnitee is
authorized by the Company, (ii) Indemnitee shall have reasonably concluded, based
upon written advice of counsel, that there may be a conflict of interest of
such counsel retained by the Company between the Company and Indemnitee in the
conduct of such defense, or (iii) the Company ceases or terminates the
employment of such counsel with respect to the defense of such proceeding, in
any of which events then the fees and expenses of Indemnitee’s counsel shall be
at the expense of the Company.  At all
times, Indemnitee shall have the right to employ other counsel in any such
proceeding at Indemnitee’s expense, and to participate in the defense of the
proceeding or claim through such counsel.

 

11.  Attorneys’ Fees.  In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys’ fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that the action was not instituted in good faith or was frivolous.  In the event of an action instituted by or in
the name of the Company under this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys’ fees, incurred by Indemnitee
in defense of such action (including with respect to Indemnitee’s counterclaims
and cross-claims made in such action), unless as a part of such action the
court determines that Indemnitee’s defenses to such action were not made in
good faith or were frivolous.

 

12.  Officer and Director
Liability Insurance.  The Company
shall, from time to time, make the good faith determination whether or not it
is practicable for the Company to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the officers and
directors of the Company with coverage for losses from wrongful acts, or to
ensure the Company’s performance of its indemnification obligations under this
Agreement.  Among other considerations,
the Company will weigh the costs of obtaining such insurance coverage against
the protection afforded by such coverage. 
Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain such insurance if the Company determines in good faith that
such insurance is not reasonably available, or if the premium costs for such
insurance are disproportionate to the amount of coverage provided, if the
coverage provided by such insurance is limited by exclusions so as to provide
an insufficient benefit, or if Indemnitee is covered by similar insurance
maintained by a subsidiary or parent of the Company.

 

4

 

13.  Notice of Claim.  The Indemnitee, as a condition precedent to
his right to be indemnified under this Agreement, shall give to the Company
notice in writing as soon as practicable of any claim made against him for
which indemnity will or could be sought under this Agreement.  Notice to the Company shall be given at its
principal office and shall be directed to the Corporate Secretary (or such
other address as the Company shall designate in writing to the Indemnitee);
notice shall be deemed received if sent by prepaid mail properly addressed, the
date of such notice being the date postmarked. 
In addition, the Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within the Indemnitee’s
power.

 

14.  Entire Agreement.  This Agreement supersedes all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof and is not intended to confer upon any
person other than the parties hereto any rights or remedies hereunder.

 

15.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one instrument.

 

16.  Indemnification Hereunder
Not Exclusive.  Nothing herein shall
be deemed to diminish or otherwise restrict the Indemnitee’s right to
indemnification under any provision of the Certificate of Incorporation or
Bylaws of the Company and amendments thereto or under law.

 

17.  Governing Law.  This Agreement shall be governed by and
construed in accordance with Delaware law, without regard to the conflicts of
law provisions thereof.

 

18.  Saving Clause.  Wherever there is conflict between any
provision of this Agreement and any applicable present or future statute, law
or regulation contrary to which the Company and the Indemnitee have no legal
right to contract, the latter shall prevail, but in such event the affected
provisions of this Agreement shall be curtailed and restricted only to the
extent necessary to bring them within applicable legal requirements.

 

19.  Coverage.  The provisions of this Agreement shall apply
with respect to the Indemnitee’s service as a Director and\or Officer of the
Company prior to the date of this Agreement and with respect to all periods of
such service after the date of this Agreement, even though the Indemnitee may
have ceased to be a Director and\or Officer of the Company.

 

(Signature Page Follows)

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and signed as of the day and year first above written.

 

 

	
   

  	
  GUITAR CENTER, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Officer

  
	
   

  	
   

  
	
   

  	
  “INDEMNITEE”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6Exhibit 10.1(e)

 

	
   

  	
  Dated

  	
  26    of    June,

  	
  2005

  	
   

  

 

 

SWINDON BOROUGH COUNCIL

 

 

and

 

 

SAUER-DANFOSS LIMITED

 

 

LEASE

 

of Building 102 Cheney Manor

Swindon Wilts

 

 

THIS LEASE made
the 26 day of June Two thousand and five BETWEEN SWINDON BOROUGH COUNCIL of Civic
Offices Euclid Street Swindon SN1 2JH (hereinafter called the Council which
expression where the context so admits shall include the estate owner or estate
owners for the time being of the reversion of the premises hereby demised
expectant on the expiry of the term hereby granted) of the one part and
SAUER–DANFOSS LIMITED (Company number 02179360) whose registered office is
situate at Cheney Manor Swindon SN2 2PZ (hereinafter called ‘the Lessee’ which expression
shall where the context so admits include any persons deriving title under the Lessee)
of the other part

 

WITNESSETH as
follows:-

 

1.                                     In
consideration of the rent hereinafter reserved and of the Lessee’s covenants hereinafter
contained the Council hereby demises unto the Lessee ALL THAT the property described
in the First Schedule hereto (which property buildings and premises
(including heating sanitary and water equipment and any other fixtures fittings
and equipment thereon from time to time other than tenants fixtures and
fittings which expression shall in this Lease include not only tenants fixtures
and fittings installed during the term of this Lease but also tenants fixtures
and fittings and plant and machinery installed by any previous tenant or by the
Lessee under a previous Lease and remaining in or on the Demised Premises at
the date hereof) with any alterations or additions thereto and any other
building erection or works from time to time constructed or carried out on the
said plot of land are hereinafter referred to as ‘the demised premises’)
TOGETHER WITH the easements and rights specified in the Second Schedule hereto
BUT EXCEPT AND RESERVING unto the Council its lessees and tenants and all
others entitled thereto the easements and rights specified in the Third Schedule hereto
TO HOLD the same unto the Lessee for the terms of FIVE YEARS from the [                    ] day of                            
Two thousand and five SUBJECT TO earlier determination as hereinafter
provided YIELDING AND PAYING therefor

 

FIRST throughout
the term the yearly rent of THREE HUNDRED AND SEVENTY THREE THOUSAND SIX
HUNDRED POUNDS (£373,600) payable by equal quarterly payments in advance by
Banker’s Standing Order on the First days of January April July and October in

 

 

every
year the first of such instalments or a proper proportion thereof to be made on
the date hereof and

 

SECOND a sum equal
to the sum or sums which the Council shall from time to time pay solely by way
of insurance premium pursuant to its obligation under clause 5(4)(3) hereof
(including any increased premium payable by reason of the act or omission of
the Lessee) PROVIDED THAT if any payment of rent is not made within fourteen
days of the date on which it is due then interest shall be payable thereon
calculated from the date the rent is due to the actual date of payment at the
rate of 2% per annum above the Council’s Bankers Base Lending Rate for the time
being

 

2.                                      IT
IS HEREBY agreed and declared that the Lessee shall not be or become entitled to
any right of access of light or air to the demised premises or to any other
right privilege or easement which would restrict or interfere with the user of
any adjoining or neighbouring land for building or any other purpose (Provided
that such user shall not materially affect the beneficial user of the demised
premises by the Lessee for all purposes permitted by this Lease) and that no
estate or interest in the soil of any road or footpath (whether or not a highway
maintainable at the public expense) adjacent to the demised premises is or
shall be deemed to be included in the demise hereinbefore contained

 

3.                                      THE
Lessee hereby covenants with the Council as follows:-

 

(1)                                  To
pay the rent hereby reserved including interest and VAT thereon (if any) as hereinbefore
provided and not to exercise or seek to exercise any right or claim to withhold
rent or any right or claim of legal or equitable set off or counterclaim

 

(2)                                  To
pay all rates taxes duties charges and assessments whatsoever whether parliamentary
local or otherwise which are now or may hereafter become payable in
respect of the demised premises whether by the owner or occupier thereof other
than tax charged on the Council as a result of the ownership of or any dealing
with the Council’s reversionary interest or the receipt of rent and other payments
hereunder

 

(3)(a)                    Subject
to Clause 5(4)(3) of this Lease forthwith to insure and keep insured at all
times during the said term (subject to such excesses exclusions and conditions
as the insurers may require) the demised premises in the full reinstatement
value thereof against

 

 

loss or damage by fire
explosion storm or tempest (including lightning) or aircraft or any article dropped
from aircraft (in both cases other than hostile aircraft) and against two years
rent and other risks normally included within a policy of comprehensive
insurance which the Lessee or the Council consider to be reasonably desirable
(insofar as the same are insurable on reasonable terms) such insurance to be
with an insurance company of repute approved by the Council (such approval not
to be unreasonably withheld) in the joint names of the Council and the Lessee
in such sum as for the time being shall be sufficient to cover the cost of
completely reinstating the demised premises in the event of total destruction
of the buildings and erections comprised therein together with Architects and
Surveyors fees and other expenses incidental thereto

 

(b)                                 Promptly
to pay all premiums and other moneys necessary for the said insurance

 

(c)                                  Whenever
reasonably required but not more than twice a year to produce to the Council and
its officers or agents the policy or policies of insurance or sufficient
evidence of the same and the receipt for the then current years premium
Provided Always that if the Lessee shall at any time fail to insure or keep
insured the demised premises as aforesaid the Council may (but shall be
under no obligation) do all things necessary to effect and maintain such
insurance and any moneys expended by the Council for that purpose shall be
repayable by the Lessee to the Council on demand and be recoverable forthwith
by the Council by action or by distress as if such moneys formed part of
the rent payable hereunder

 

(d)                                 In
the event of the demised premises or any part thereof at any time during
the subsistence of the term hereby created being destroyed or damaged by any of
the insured risks or other risks insured against then and as often as the same may happen
and so long as such insurance has not been vitiated or payment of any policy
monies refused in whole or part by reason solely or in part or any
act or default of the Council its lessees or their respective agents servants
invitees licensees or visitors to secure that all monies payable by virtue of
the insurance before referred to shall with all convenient speed and in
conformity with the provisions of this Lease be laid out and applied in
rebuilding repairing or otherwise reinstating the demised premises in a good
and substantial manner and in case the moneys received in respect of the said
insurance shall be insufficient for the purpose aforesaid to

 

 

make good the deficiency
out of the Lessee’s own moneys PROVIDED THAT the covenant by the Lessee as to
reinstatement shall be satisfied if the Lessee provides in the premises so
reinstated accommodation as convenient and commodious as is practicable but not
necessarily identical to the demised premises as the same existed prior to such
damage or destruction AND PROVIDED FURTHER that if the rebuilding and
reinstatement of the demised premises or any part thereof shall prove
impossible the monies payable pursuant to any policy of insurance effected
hereunder shall be laid out and applied in completely clearing the site and any
remaining insurance monies not so applied shall be divided between the Council
and the Lessee in the proportions which the value of their respective interests
in the demised premises or that part thereof bear to one another at the
time of the event giving rise to payment

 

(e)                                  Not
to do or cause permit or suffer to be done anything which may render the
Policy or Policies of Insurance hereinbefore mentioned void or voidable nor
anything which may render uninsurable the defined risks before mentioned

 

(4)                                 Not
to do or permit to be done anything whereby the policy or policies of insurance
on the fabric of the demised premises against damage by fire or otherwise for
the time being may become void or voidable

 

(5)                                 At
all times during the term hereby created to maintain and keep the demised premises
in a clean and tidy condition including reasonable decorative repair and to
keep any parts thereof that are unbuilt upon reasonably clean and tidy and free
from rubbish and to keep the roof or roofs of the demised premises in a wind
and weatherproof condition in all cases to the reasonable satisfaction of the
Council

 

(6)                                 To
permit the Council its officers servants and agents workmen and authorised agents
at reasonable times after due notice (save in case of emergency) to enter upon
the demised premises for the purpose of ascertaining that the covenants and
conditions herein contained have been duly observed and performed for the
purpose of taking inventories of landlord’s fixtures and fittings therein and
to view the state of repair and condition of the demised premises and to give
or leave on the demised premises notice in writing to the Lessee of any failure
to keep any part of the demised premises in accordance with the

 

 

Lessees covenants
herein AND within the period of two calendar months after any such notice the
Lessee shall begin to comply with the requirements of such notice and in
accordance with the covenants in that behalf herein contained and shall
diligently proceed with the same AND if the Lessee shall fail to comply with
the requirements of such notice as aforesaid to permit the Council or its contractors
agents and workmen to enter upon the demised premises to execute such works as may be
necessary to comply with the same AND in the event of the Council so entering
the demised premises and carrying out such works to pay to the Council the
proper and reasonable cost of executing such works within twenty-one days of a
written demand

 

(7)                                 The
Lessee must give notice to the Council of any defect in the Premises that might
give rise to an obligation on the Council to do or refrain from doing anything
in order to comply with the provisions of this lease or the duty of care
imposed on the Council whether pursuant to the Defective Premises Act 1972 or
otherwise and must at all times display and maintain any notices the Council
from time to time requires him to display at the demised premises

 

(8)                                 Not
at any time during the term hereby created to build or place or permit or
suffer to be built or placed on the demised premises any new or additional
buildings or erections or subject to the provisions of the Disability
Discrimination Act 1995 not to make any material alterations in the existing
external design or appearance of the demised premises (all of which buildings
erections and alterations are referred to in this sub-clause as ‘new works’) except
with the prior written approval of the Council in accordance with plans
elevations sections site plans and specifications which have first been
approved in writing by the Council (in both cases such approval not to be
unreasonably withheld) In the event of the Lessee carrying out any new works
without the prior written consent of the Council it shall be lawful for the
Council to enter upon the demised premises and restore them to the condition in
which they were before the Lessee commenced such new works and the proper and
reasonable expense of the Council in so doing together with interest at two per
centum above the Council’s Bankers Base Lending Rate for the time being in
force shall be paid by the Lessee to the Council within twenty-one days from
the date of a written demand in that 

 

 

behalf IN the event of
the Lessee carrying out any new works to which the Council may have given
its prior consent which do not comply with the plans elevations sections site
plans and specifications approved by the Council the Lessee shall forthwith
upon notice in writing from the Council requiring it so to do make good and
correct all such works which do not comply with the said plans elevations
sections site plans and specifications as directed by the Council and if the
Lessee shall neglect to begin so to do within seven days after such notice then
it shall be lawful for the Council or its servants contractors agents and
workmen to remove or make good and correct all such non-complying works and all
expenses of so doing with interest thereon at the rate aforesaid shall be paid
by the Lessee to the Council within twenty-one days of a written demand in that
behalf  The Lessee shall permit the duly
authorised officers and servants of the Council at all reasonable times upon
reasonable prior notice in writing to enter upon the demised premises to view
the state of progress of any new works which the Council has approved and to
inspect or test the material and workmanship thereof and for the purpose of
ascertaining generally that any such new works have been and are being carried
out in accordance with the plans elevations sections site plans and
specifications approved by the Council and the Lessee shall permit the Council
its servants agents or contractors of the Council to enter upon the demised
premises to carry out any works or do any matter or thing which under this
Lease the Council is empowered to do or carry out

 

(9)                                 To
permit the Council and the lessees or occupiers of adjoining property belonging
to the Council if authorised in writing by the Council and their officers
servants agents and workmen at convenient times by appointment after not less
than fourteen days’ notice to the Lessee or without notice in case of emergency
to enter upon the demised premises to execute repairs alterations painting
redecoration or any other works whatsoever to any adjoining property now or
hereafter belonging to the Council provided that such works cannot reasonably
be carried out without such access the person or persons exercising such right making
good all damage thereby occasioned to the demised premises and to the Lessee’s
property and also to permit the Council and the lessees or occupiers of
adjoining property authorised as aforesaid and their respective officers
servants contractors agents and

 

 

workmen at
convenient times by appointment after such notice as aforesaid (if required) to
enter upon the demised premises for the purpose of constructing laying down
connecting altering repairing cleansing or maintaining any sewers drains
gutters pipes or cables in or under the demised premises for the accommodation
of any adjoining or neighbouring property now or hereafter belonging to the
Council the person or persons exercising such right making good all damage
thereby occasioned to the demised premises and the Lessee’s property

 

(10)                            During
the said term to use the demised premises (apart from the office block)
only for general industrial purposes and/or for warehousing and to use the
office block as offices

 

(11)                            (a)                                  Not
at any time to instal any fuel burning apparatus on the demised premises other
than apparatus of a type approved by the Council (such approval not to be unreasonably
withheld) and to erect any chimney in connection with any such apparatus to the
reasonable satisfaction in all respects of the Council To keep all fuel burning
apparatus repaired and maintained to the reasonable satisfaction of the Council
and to stoke and operate the same only in a proper and skilled manner in all
respects in accordance with the manufacturers instructions and recommendations
and in particular not to exceed the proper working pressure and temperature

 

(b)                                 Not
to cause or permit smoke effluvia vapour or grit to be emitted from any apparatus
on the demised premises to such an extent as would result in a loss of amenity
to other occupiers of the surrounding neighbourhood and to erect any chimney in
connection with any such apparatus to the reasonable satisfaction in all
respects of the Council

 

(c)                                  To
permit officers of the Council to enter upon the demised premises at reasonable
times by appointment to inspect the method of stoking any fuel burning apparatus
installed on the demised premises and to comply with such reasonable directions
as may be given by the Council to ensure the provisions of Clause 3(11)(a) and (b) are complied with by the Lessee

 

(12)                            Not
to use the demised premises or any part thereof or permit or suffer the
same to be used for any illegal or immoral purpose nor to permit or suffer to
be done in or upon the demised premises nor to permit or suffer to be brought
on the demised premises anything

 

 

which may be or
become a danger or nuisance or which may cause damage or inconvenience to
the Council its lessees or tenants or occupiers of any adjoining or neighbouring
property (the Lessee’s business as now and previously carried on at the demised
premises not being in breach of this covenant) and not to use or permit or
suffer to be used any part of the demised premises or anything connected
therewith as an advertising station or for the display of boards posters
notices or signs except such as may be permitted in writing by the Council
such permission not to be unreasonably withheld

 

(13)                            (a)           Not
at any time during the said term without first obtaining the written consent of
the Council which shall not unreasonably be withheld or delayed to assign the whole
of the demised premises PROVIDED that it is agreed between the parties that if
the following conditions are not met then it shall be reasonable for the
Council to withhold consent

 

(1)                                 the
proposed assignee (“the Assignee”) being one or more individuals shall provide
two trade references a current and previous landlord’s reference together with
a bankers reference all of which in the reasonable opinion of the Council shows
that the Assignee is likely to be a responsible tenant of good financial
standing capable of fulfilling the covenants and obligations in this Lease

 

(2)            If the
Assignee is a limited Company (“the Company”) then

 

(i)                                     the
Company shall provide two trade references a current and previous landlord’s
reference together with a bankers reference all of which in the reasonable
opinion of the Council shows that the Company is likely to be a responsible
tenant of good financial standing capable of fulfilling the covenants and
obligations in this lease and

 

(ii)                                  at
least two directors of the Company (or the sole director if only one) shall
provide a bankers reference which in the reasonable opinion of the Council
shows the director(s) to be of good financial standing and such director(s) are
to act as guarantor(s) who will (if required) take a lease of the demised
premises on the same terms and conditions of

 

 

this lease for a term
commencing on the date the lease is disclaimed and expiring on the contractual
expiry date of this lease if the Company shall be wound up compulsory or
voluntarily (other than a voluntary liquidation of a solvent company for the
purpose of amalgamation or reconstruction) or shall have a receiver appointed

 

If the conditions
at sub-clauses (a)(1) or (a)(2) of this
clause are not satisfied then the Council may at its discretion withhold
consent or require the Assignee to enter into a rent deposit bond relating to
[two] quarters rent,

 

(3)                                  Save
in the case of manifest error if any outstanding arrears debts or invoices owed
by the assigning lessee to the Council as a result of his occupation of the
demised premises in relation to rents rates or other sundry debts are not paid
in full before consent is issued or in the case of outstanding arrears debts or
invoices owed by the assignee to the Council in relation to rents rates or
other sundry debts are not paid in full or in the case of previously agreed
instalment payments are not paid up to date before consent is issued.

 

(b)                                 the
assigning Lessee shall pay the Council’s reasonable legal costs and reasonable
estates costs incurred in considering any request for consent to an assignment
whether the assignment proceeds to completion or not.

 

(c)                                  the assigning lessee shall if required by the Council enter
into an Authorised Guarantee Agreement guaranteeing the performance of the
tenants covenants by the Assignee.

 

(d)                                 the
Lessee shall within one month from the date of any assignment give notice in
writing to the Council and to produce to the Council the relative original or counterpart deed
document or grant and to pay to the Council a registration fee of Ten pounds or
such greater fee as may be reasonable at the time in respect of every such
production

 

(e)                                  not to assign part of the demised premises

 

(f)                                    not
to charge underlet share license or part with possession of the demises premises
or any part thereof save as provided in sub-clause (a) hereof

 

 

(14)                            If
any encroachment or easement shall be made or threatened to be made on or over the
demised premises or if any window or opening shall be made or threatened to be
opened or made in any neighbouring building (whether already or hereafter to be
erected) which if not obstructed might by lapse of time confer the right to
access of light in favour of any neighbouring property (unless in either case
the dominant tenement is also owned by the Council) to give notice to the
Council as soon as the same shall come to the notice of the Lessee and at the
cost of the Council to do all such things as may be reasonable and proper for
the purpose of preventing the making of such encroachment or the acquisition of
such easement or right AND if the Lessee shall omit or neglect to do all such
things as aforesaid at the earliest reasonably practicable time it shall be
lawful for the Council its officers servants and workmen to enter upon the
demised premises and to do the same (unless as aforesaid)

 

(15)                            Not
to form or permit to be formed a rubbish or waste materials (especially inflammable
materials) dump on the demised premises but to keep all rubbish and refuse in properly
covered receptacles to the reasonable satisfaction of the Council TO arrange at
the Lessee s own expense for the removal of all refuse (other than refuse which
the appropriate Local Authority is under obligation to remove under the Public
Health Act 1936 or otherwise) from the demised premises whenever necessary

 

(16)                            At
the Lessee’s own expense to provide and maintain on the demised premises throughout
the said term adequate fire fighting equipment in accordance with the
appropriate regulations for the time being in force and to maintain a clear
access way to such equipment at all times

 

(17)                            Not
to do anything or suffer anything to be done on the demised premises which would
remove support from any adjoining land buildings or structure in any way
whatsoever

 

(18)                            To
endeavour to ensure that no vehicle belonging to the Lessee its servants and invitees
shall park or load or unload on any road on the Council’s Trading Estate (as
such Trading Estate may exist from time to time adjoining Cheney Manor
Road Swindon) except roads within the demised premises

 

(19)                            Not
to supply gas electricity water or heating to any other tenant or occupier of
land

 

 

comprised
with the Council’s Trading
Estate situate adjoining Cheney Manor Road Swindon

 

(20)                           To
permit the Council during the six months immediately preceding the expiration
or sooner determination of the term hereby created to affix on any part of
the demised premises a notice
for reletting or selling the same and during the said period to permit all
persons with written authority from the Council and accompanied by a servant or
agent of the Council at reasonable times of the day to view the demised
premises on prior appointment being made

 

(21)                            To
yield up the demised premises to the Council at the end of the term hereby granted
howsoever determined with vacant possession in a clean and tidy condition to
the reasonable satisfaction of the Council with services safely capped off all
machinery removed any pits made safe and hazardous material removed and all
boundary fences and gates left in a secure condition and to give up all keys of
the demised premises to the Council

 

(22)                            Not to discharge any
trade effluent (as defined in the Public Health (Drainage of Trade Premises)
Act 1937 or any statutory modification thereof for the time being in force) from
the demised premises or any part thereof or any apparatus therein into the
sewers serving the demised premises or into any pipe or drain communicating
therewith except in such manner into such sewers at such temperature in such
quantities at such rates at such times of such composition after such treatment
(whether for the removal of constituent parts or for the rendering of the
effluent neither acid nor alkaline or otherwise) and subject to such other
conditions whatsoever as the Council may from time to time reasonably
direct

 

(23)                            Not
to allow anything but water to enter surface water drains and surface water sewers
and in this connection properly to maintain any traps provided on the demised premises
in clean condition and proper repair and to permit inspection of such traps by
or on behalf of the Council at any reasonable time by appointment upon at least
seven days prior notice in writing (save in case of emergency)

 

(24)                            Not
at any time to store any materials or things upon any part of the demised premises
which may not for the time being be covered by buildings to an extent
which the Council may reasonably consider unacceptable

 

 

(25)                           Not
to unreasonably withhold consent to a request by the Council under the Landlord
and Tenant (Covenants) Act 1995 Section 8 for release from all or any of
the Landlord covenants of this Lease

 

(26)                           To
pay all reasonable and proper costs charges and expenses (including Solicitors’
costs and Surveyors fees) incurred by the Council for the purpose of or
incidental to the preparation and service of a notice under Section 146 of
the Law of Property Act 1925 as amended requiring the Lessee to remedy a breach
of any of the covenants herein contained notwithstanding forfeiture for such
breach shall be avoided otherwise than by relief granted by the Court

 

4.                                       The
Council hereby covenants with the Lessee that the Lessee paying the said rent and
observing and performing the covenants and conditions herein contained and on
the Lessee’s part to be observed and performed shall and may peaceably
and quietly possess and enjoy the demised premises during the said term without
any interruption by the Council or any person rightfully claiming under or in
trust for the Council

 

5.                                       PROVIDED ALWAYS AND IT IS HEREBY AGREED AND DECLARED that:-

 

(1)                                  Notwithstanding
and without prejudice to any other remedies and powers herein contained or
otherwise available to the Council if the rent reserved or any part thereof
shall be unpaid for twenty-one days after becoming payable (whether formally
demanded or not) or if any covenant on the Lessee’s part herein contained
shall not be performed or observed or if the Lessee for the time being being a
Company shall enter into liquidation whether voluntary or compulsory (save for
the purpose of reconstruction or amalgamation) or being an individual or being
more than one individual or any of them shall become bankrupt or enter into any
composition with its creditors then and in such case it shall be lawful for the
Council at any time thereafter to re-enter upon the demised premises or any part thereof
in the name of the whole and thereupon this demise shall absolutely determine
but without prejudice to any right of action of the Council in respect of any
breach non-observance or non-performance of any of the Lessee’s covenants
herein contained

 

(2)                                  Nothing
herein contained or implied shall impose or be deemed to impose any restriction
on the use of any land or buildings not comprised in this Lease or give the
Lessee

 

 

the benefit of or
the right to enforce or to have enforced or to prevent the release or modification
of any covenants agreement or condition entered into by any lessee or tenant of
the Council in respect of property not comprised in this Lease or to prevent or
restrict in any way the development of any land not comprised in this lease
provided that such development or use does not materially affect the use of the
demised premises for any of the uses permitted by this Lease

 

	
  (3)

  	
  The Lessee
  hereby confirms that before the date of this Lease:

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  The Council
  served on the Lessee a notice dated July 26, 2005 in relation to the tenancy
  created by this Lease (“the Notice”) in a form complying with the
  requirements of Schedule 1 to the Regulatory Reform (Business
  Tenancies) (England and Wales) Order 2003 (“the Order”)

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Lessee or a
  person duly authorised by the Lessee in relation to the Notice made a
  statutory declaration (“the Declaration”) dated August 12, 2005 in a form complying
  with the requirements of Schedule 2 of the Order

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  The Lessee
  further confirms that where the Declaration was made by a person other than
  the Lessee the declarant was duly authorised by the Lessee to make the
  Declaration on the Lessee’s behalf

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  The Council and
  the Lessee confirm that there is no Agreement for Lease to which this Lease
  gives effect

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  The Council and
  the Lessee agree to exclude the provisions of sections 24 to 28 (inclusive)
  of the Landlord and Tenant Act 1954 in relation to the tenancy created by
  this Lease

  
	
   

  	
   

  	
   

  
	
  (4)

  	
  (1)

  	
  The Lessee shall
  be entitled to determine the term hereby created on the 26th June 2008
  (“the Termination Date”) by giving to the Council not less than 12 months
  prior notice in writing of such intention (“the Break Notice”) and subject to
  a Break Notice having been given the term hereby created shall cease on the
  Termination Date PROVIDED THAT all rent due under this Lease is paid up to
  and including the Termination Date

  

 

 

(2)   The Lessee
may vacate the demised premises at any time between the 26th June 2007
and the Termination Date if it has validly served the Break Notice and

 

(i)   it pays to
the Council on or before such date of vacation (“the Vacation Date”) the sum of
Forty thousand pounds (£40,000.00) which said sum will be accepted by the
Council as full and final settlement of all security and maintenance costs for
the demised premises up to the Termination Date and

 

(ii)   it complies with its obligations contained in clause 3(21)
hereof to the reasonable satisfaction of the Council

 

(3)   Subject to
the Lessee complying with its obligations contained in clauses 5(4)(2)(i)and (ii) hereof
the Council shall for the period from the Vacation Date to the Termination Date
insure with a reputable insurance company the demised premises against loss or
damage by the insured risks in such sums as for the time being shall be
sufficient to cover the cost of completely clearing the site (including fees
and costs) and loss of rent and assume liability for the security of the
demised premises and it is hereby agreed that the obligations of the Lessee contained
in clauses 3(3)(5)(7)(14)(16) and (18) of this Lease shall cease with effect
from the Vacation Date

 

(5)                                  Except
where this Lease provides otherwise any disputes or differences arising as
between the Council and the Lessee under the terms hereof are to be referred to
arbitration in accordance with the provisions of the Arbitration Acts 1996 or
any Act amending or replacing the same to a single arbitrator to be appointed
(in default of agreement) by or on behalf of the President for the time being
of the Royal Institute of Chartered Surveyors on the application of either
party

 

(6)                                  Except
so far as a contrary provision is contained in this Lease any notice decision direction
determination approval authority permission or consent to be given by or served
on the Council under this Lease shall be valid and effective if signed by the
Director of Law and Corporate Governance for the time being of the Council or
such other officer or agent as the Council may from time to time designate
for the purpose and addressed to the Council at the Civic Offices Euclid
Street, Swindon aforesaid

 

 

(as the case may be)
and delivered by hand or sent by recorded delivery postal service and shall be
deemed to have been validly served on or conveyed to the Lessee if delivered by
hand or sent by recorded delivery postal service addressed to the Company
Secretary to the Lessee at the demised premises or such alternative address for
service as the Lessee shall notify to the Council in writing

 

(7)                                 Save
to the extent herein specifically provided nothing herein contained or implied shall
prejudice or affect the rights powers duties and obligations of the Council in
the exercise of its functions as a local authority and save as aforesaid the
rights powers duties and obligations of the Council under all enactments may be
as fully and effectively exercised in relation to the demised premises as if
the Council were not the owner of the site and this Lease had not been executed
by it and any approval or consent given or granted by the Council as landlord
in pursuance of the provisions of this Lease shall not be deemed to be given or
granted by the Council in any other capacity than as landlord

 

(8)                                 Notwithstanding
anything to the contrary in this deed contained the Lessee shall have full
right and liberty to make additions alterations and re—arrangements from time
to time to the interior parts of the demised premises

 

(9)                                 The
operation of the Law of Property Act 1925 Section 62 is excluded from this
Lease The only rights granted to the Lessee are those
expressly set out in this Lease

 

(10)                           If
the demised premises or any part thereof shall at any time between the
Vacation date and the Termination Date be destroyed or damaged by any of the
insured risks so as to be unfit for use and the policy or policies of insurance
effected for the time being shall not have been vitiated or payment of the
policy moneys refused in whole or in part in consequence of any act or
default of the Lessee the rent hereby reserved or a fair proportion thereof
according to the nature and extent of the damage sustained shall be suspended
from the date of such damage or destruction (“the destruction date”) and either
the Council or the Lessee may serve not less than six months Notice in
writing at any time after the destruction date on the other party determining
the term hereby created and at the expiration of such a Notice the term

 

 

hereby created is to cease
absolutely but without prejudice to any rights or remedies that may have
accrued to either party against the other and all moneys received by virtue of
any such insurance shall belong solely to the Council

 

IN WITNESS whereof the
parties hereto have caused this Lease to be executed as a Deed the day and year
first before written

 

THE FIRST SCHEDULE to the Lease

 

the Demised Premises

 

ALL THAT land and
premises at Cheney Manor Industrial Estate Cheney Manor Swindon known as
Building 102 together with the adjoining yard and car parking area and
perimeter fence all which said premises are delineated on the plan annexed
hereto and thereon edged red

 

THE SECOND SCHEDULE to the Lease

 

Rights granted

 

1.                                      The
right in common with others having a like right to the free and uninterrupted passage
of water and soil electricity and gas to and from the demised premises through
the pipes drains sewers wires and cables now on the Cheney Manor Industrial
Estate any such as may replace the same with all the ancillary rights of
entry on the land wherein or whereon the same may be with all necessary
workmen and appliances for the purposes of maintaining cleansing altering
making connection to or renewing the same the Lessee making good all damage
occasioned in the exercise of such rights of entry

 

2.                                      A
right of way at all times and for all purposes over the access drives
connecting the demised premises with the public highway and pavement as shown
coloured yellow on the plan annexed hereto

 

THE THIRD SCHEDULE to the Lease

 

Rights reserved

 

1.                                       The
right in common with the Lessee and all other persons lawfully entitled thereto
to

 

 

 

 

use
all sewers and drains now in or upon the demised premises or any part thereof
and freely to run and pass water and soil through and along the same or any of
them

 

2.                                       The
right to have maintain repair cleanse use reconstruct alter and remove any
pipes wires cables and works on over or under the demised premises now used for
the benefit of the adjoining land

 

3.                                       Full
right and liberty for the Council and all other persons lawfully entitled
thereto with or without workmen and any necessary appliances at all reasonable
times by appointment to enter upon the demised premises for the purposes of
exercising the rights reserved by paragraph 2 of this Schedule the Council
or the person or persons exercising the said rights making good any damage
occasioned to the demised premises and the property of the Lessee by the
exercise of the rights of entry aforesaid

 

 

 

 

 

 

	
  EXECUTED BY

  	
  )

  
	
   

  	
  )

  
	
  SAUER-DANFOSS

  	
  )

  
	
   

  	
  )

  	
  

  
	
  LIMITED acting by

  	
  )

  
	
   

  
	
   

  
	
  Director

  	
  

  
	
   

  	
   

  
	
   

  	
   

  
	
  Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]