Document:

EX-10.22:

 

Exhibit 10.22

	 	 	 
	

	 	DATED 28th November 1991
	 
	 	 
	

	 	B E T W E E N:-
	 
	 	 
	

	 	ST KATHARINE BY THE TOWER LIMITED (1)
	 
	 	 
	

	 	-and-
	 
	 	 
	

	 	INTERNATIONAL PETROLEUM EXCHANGE OF LONDON LIMITED (2)
	 
	 	 
	 
	 	 
	

	 	 
	 
	 	 
	

	 	RESIDENT MEMBER’S AGREEMENT
	 
	 	 
	

	 	Relating to Part of Quay Level
	

	 	International House
	 
	 	 
	

	 	 
	 
	 	 
	

	 	MESSRS KEENE MARSLAND
	

	 	DRAGOON HOUSE
	

	 	37 ARTILLERY LANE
	

	 	BISHOPSGATE
	

	 	LONDON EL 7LT
	 
	 	 
	

	 	TEL: 071-375 1581
	

	 	REF: CDFM\LTG\PETROLEU. LSE

Certain information in this agreement has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

[Graphics of Plan A and Plan B]

 

 

RESIDENT MEMBER’S AGREEMENT – INTERNATIONAL HOUSE

WORLD TRADE CENTRE LONDON E1

	 	 	 	 	 
	PARTICULARS	 	 
	 
	 	 	 	 
	1.

	 	DATE
	 	28th November 1991
	 
	 	 	 	 
	2.

	 	PROMOTER
	 	ST KATHARINE BY THE TOWER LIMITED
	 
	 	 	 	 
	3.

	 	PROMOTER’S REGISTERED OFFICE
	 	IVORY HOUSE ST KATHARINE BY THE TOWER LONDON El 9AT
	 
	 	 	 	 
	4.

	 	RESIDENT MEMBER
	 	INTERNATIONAL PETROLEUM EXCHANGE OF LONDON LIMITED
	 
	 	 	 	 
	5.

	 	RESIDENT MEMBER’S REGISTERED OFFICE
	 	INTERNATIONAL HOUSE ST KATHARINE’S WAY LONDON El 9UN
	 
	 	 	 	 
	6.

	 	GUARANTOR
	 	N\A
	 
	 	 	 	 
	7.

	 	GUARANTOR’S REGISTERED OFFICE/ADDRESS
	 	N\A
	 
	 	 	 	 
	8.

	 	PROPERTY
	 	INTERNATIONAL HOUSE WORLD TRADE
CENTRE 1 ST. KATHARINE’S WAY LONDON
El
	 
	 	 	 	 
	9.

	 	PREMISES
	 	PART OF QUAY LEVEL INTERNATIONAL HOUSE
	

	 	(Plan A)
	 	shown on the attached Plan A edged red
	 
	 	 	 	 
	10.

	 	TERM
	 	SEVENTEEN AND ONE QUARTER YEARS
(17 1/4) from the 29th day of September
1991 expiring on the 24th December
2008
	 
	 	 	 	 
	                                                       
	11.

	 	RENT
	 	[***] £[***] per annum (SUBJECT
TO increases provided in clause 10)
payable from the 25th day of
December 1992
	 
	 	 	 	 
	12.

	 	INITIAL ESTIMATE OF SERVICE CHARGE
	 	[***] £[***] per
annum (SUBJECT TO clause 5 payable
from the 29th day of September 1991
	                                                        
	 
	 	 	 	 
	13.

	 	USE
	 	Offices within the World Trade Centre
	 
	 	 	 	 
	14.

	 	REVIEW DATES
	 	29th September 1996 and every
subsequent FIFTH anniversary

	 	 
	 	 

	 	 	 
	***	 	Certain information on this page has been omitted and
filed separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

1. MEMORANDUM

		
	ADDRESS 	Part Quay Level Offices International House

International House St Katharine’s Way London E

THIS MEMORANDUM is dated 8 October 2002 and made under the terms
of the Lease referred to in Part I
of the Schedule below (“Lease”) of the Property described in Part II of that Schedule.

The parties have agreed with effect from 29 September 2001,
that the rent reserved by the Lease
shall be increased to the sum of £[***] per annum
exclusive of Value Added Tax.

Inter One Limited and
Inter Two Limited And International Petroleum Exchange of London Limited for
the present Lessor and Lessee respectively have each signed this Memorandum recording the
agreement.

THE SCHEDULE

PART I

	 	 	 	 	 
	Date	 	Document	 	Parties
	28 November 1991

	 	Lease	 	1. St Katharine By the Tower Limited
	 
	

	 	 	 	2. International Petroleum Exchange of London Limited

PART II

premises known as Part Quay Level Offices International House

1 St. Kathrine’s Way London E1

	 	 	 
	/s/ Marie Huntley

	 	/s/ R. Taylor
	 

	 	 
	Authorised signatory for and on behalf of
International Petroleum Exchange of
London Limited

	 	Authorised signatory for and on behalf of
Inter One Limited
	 
	 	 
	Marie Hutley

	 	/s/ R. Taylor
	 

	 	 
	Company Secretary

	 	Inter Two Limited

	 	 
	 	 

	 	 	 
	***	 	Certain information on this page has been omitted and
filed separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

T H I S D E E D is made on the 28th day of November 1991 B E T W E E N the Promoter
whose name and address are shown in paragraphs 2 and 3 of the Particulars the Resident Member being
a member of the London World Trade Centre Association whose name and address are shown in
paragraphs 4 and 5 of the Particulars and the Guarantor(s) whose name(s) and address(es) is/are
shown in paragraphs 6 and 7 of the Particulars

DEFINITIONS

	1.  	In this document the following definitions apply:
	 
	   	Particulars

	 	(1)  	“the Particulars” on the first page form an integral part of this document

	   	Promoter

	 	(2)  	“the Promoter” includes anyone deriving Title under it

	   	Resident Member

	 	(3)  	“the Resident Member” includes anyone deriving Title under him

	   	Development Area

	 	(4)  	“the Development Area” is the Promoter’s land bounded partly by East
Smithfield Thomas More Street St. Katharine’s Way and the River Thames shown on the
attached Plan B edged red

	   	Property (Plan B)

	 	(5)  	“the Property” is the land and buildings described in paragraph 8 of the
Particulars shown on the attached Plan B edged green

 

 

	   	Service Area

	 	(6)  	“the Service Area” is the area shown hatched brown on Plan B attached hereto
and/or such other area as may from time to time be so designated by the Promoter

	   	Conduits

	 	(7)  	“Conduits” means the mechanical electrical and plumbing installations

	   	Premises

	 	(8)  	“the Premises” is the World Trade Centre accommodation described in paragraph
9 of the Particulars shown on the attached Plan A edged red including the following
existing (and any later) additions within the boundaries of the Premises

	 	(A)  	all non-structural walls and partitions
	 
	 	(B)  	any terraces and balustrades serving only the Premises
	 
	 	(C)  	the ceiling and floor finishes
	 
	 	(D)  	all doors and windows including frames and fastenings but
excluding all glass on the outside of or otherwise bordering the Premises
	 
	 	(E)  	all conduits exclusively serving the Premises
	 
	 	(F)  	all Promoter’s fixtures fittings equipment and apparatus
	 
	 	(G)  	all other internal parts not specifically previously
mentioned

	 	   	    BUT excluding the main structure walls roof floor slabs and the concrete floor
slabs of any terraces

-2-

 

	   	Review Dates

	 	(9)  	“the Review Dates” are as described in paragraph 14 of the Particulars

	   	Services

	 	(10)  	“the Services” are all those items in clause 4 excluding sub-clauses 4(1)
4(2) 4(3) and 4(6)

	   	First Anniversary

	 	(11)  	“the First Anniversary” is the Thirty-First day of December next following
the date in paragraph 1 of the Particulars

	   	Service Charge

	 	(12)  	“the Service Charge” is the cost of the Services in relation to the premises
calculated in accordance with clause 5 TOGETHER WITH any Value Added or other tax
payable

	   	Surveyor

	 	(13)  	“the Surveyor” is the Promoter’s Surveyor and where making any decision or
estimation he will be acting as an expert and not an arbitrator and his decision shall
be final

	   	End of the Term

	 	(14)  	“End of the Term” means determination by any means

	   	Plurality of Parties

	 	(15)  	where “the Resident Member” or “the Guarantor” are two or more persons the
promises made by the Resident Member or Guarantor respectively are made by those
persons jointly and separately and where the Resident

-3-

 

	 	   	Member is two or more persons they will hold the Premises as joint tenants legally
and beneficially

	   	Genders

	 	(16)  	words using the masculine gender include the feminine and the neuter and
words using the singular include the plural (and vice versa)

LETTING

	2.  	The Promoter lets to the Resident Member the Premises (TOGETHER WITH the easements and rights
specified in the First Schedule but excluding those specified in the Second Schedule) for the
Term yielding and paying the rent

RESIDENT MEMBER’S PROMISES

	3.  	The Resident Member shall throughout the Term:
	 
	   	Rent and Service Charge

	 	(1)  	pay the rent and service charge with any increases but without any deductions
by equal quarterly payments in advance on the usual quarter days (and in the case of
the service charge in accordance with clause 5) the first proportionate payments from
the dates specified in paragraphs 11 and 12 of the Particulars to be made immediately

	   	Outgoings

	 	(2)  	pay and indemnify the Promoter against all rates taxes assessments charges
and outgoings of every kind payable in respect of the Premises by the owner Promoter
Resident Member or occupier except those which are not of an annual or recurring
nature or any corporation or income tax payable by the Promoter and pay all charges
for any electricity power gas

-4-

 

	 	   	water telephone and other services consumed or used in or by the Premises and all
related meter rents and standing charges but if the Premises are not separately
rated or metered then the Resident Member will pay and indemnify the Promoter
against a reasonable proportion TOGETHER WITH any value added or other tax payable
the proportion being determined by the Surveyor whose decision will be final

	   	Use

	 	(3)  	not use the Premises for any purpose except that specified in paragraph 13 of
the Particulars or for any illegal or immoral purpose PROVIDED ALWAYS AND IT IS HEREBY
AGREED the Promoter shall not be deemed to give any warranty that the Premises are or
may be fit to be used for any particular purpose

	   	No Alcoholic Liquors

	 	(4)  	not use the Premises for the sale of alcoholic liquors for consumption on or
off the Premises or apply to the Licensing Authorities for any Licence for the same
without first obtaining the Promoter’s previous written consent

	   	Repair Maintenance and Decoration

	 	(5)  	keep the Premises clean and in good and substantial repair and decoration
carrying out promptly repairs and replacements as necessary (except to damage covered
by the insured risks specified in clause 4 (2) unless the Insurance Policy shall be
avoided or payment of the policy monies refused as a result of any act or default of
the Resident Member his employees

-5-

 

	 	   	servants agents or visitors) and in particular in a good workmanlike manner to the
reasonable satisfaction of the Promoter as least once in every fifth year (5) of
the Term and in the last year (however determined) paint with at least two coats
(2) of good quality paint and paper polish or otherwise treat all parts of the
Premises previously treated or which ought to have been treated

	   	Alterations

	 	(6)  	not make any alteration to the Premises or deface paint or line any of the
brickwork in the Premises in any way whatsoever

	   	Partitioning

	 	(7)  	not install any partitioning in the Premises without first obtaining the
necessary consents of any Public Authority and the Promoter (consent in the case of
the Promoter not to be unreasonably withheld provided the layout design detail and
conformity is first approved by the Surveyor) and not afterwards to. make any
alterations to the partitioning without first obtaining all the previously mentioned
consents and all such partitioning shall be removed by the Resident Member at the end
of the Term if so requested by the Promoter

	   	Advertisements

	 	(8)  	not exhibit any signboard advertisement nameplate or placard on the Property
or Development Area visible from outside the Premises without the previous written
consent of the Promoter

-6-

 

	   	Promoter’s Entry

	 	(9)  	permit the Promoter it’s employees and agents at all reasonable times to
enter the Premises for the purpose of exercising Promoter’s rights or duties or to
view the state and condition of the Premises

	   	Notice of Repair

	 	(10)  	comply promptly and diligently with any notice which the Promoter may
properly serve requiring him to carry out repairs or decorations and in default within
one month (I) from the date of the notice (or such other period as may be stated) the
Promoter may carry out the works and the Resident Member will promptly repay the
Promoter the cost TOGETHER WITH any Value Added or other tax payable

	   	Promoter’s Repair

	 	(11)  	permit the Promoter and all other persons authorised by it with any necessary
tools at any reasonable time on three days’ (3) written notice (except in the case of
an emergency) to enter the Premises and carry out any repairs replacements additions
alterations and decorations including work to any public utility services to the
property or any adjoining property arid to survey the Property the Promoter causing as
little disturbance to the Resident Member as possible and making good damage caused to
the Premises and the Resident Member’s fixtures fittings chattels and effects

-7-

 

	   	Public Requirements

	 	(12)  	comply with and indemnify the Promoter against any requirement issued under
Statute or by any Public Authority in respect of any liability relating to the
Premises whether the liability is on the owner Promoter Resident Member or occupier

	   	Notices or Orders

	 	(13)  	immediately give to the Promoter a copy of any notice or order or proposal
for a notice or order served on the Resident Member occupier or the Premises and if
required by the Promoter to make or join in making such application and
representations as the Promoter may reasonably require

	   	Nuisances

	 	(14)  	not do or bring or leave on the Premises Property or Development Area
anything which may be or become a nuisance annoyance or inconvenience to or interfere
with the rights of or create any liability on the owner Promoter other Resident Member
or occupiers of the rest of the Property and Development Area and to pay all
reasonable and proper costs incurred by the Promoter in abating the nuisance annoyance
inconvenience interference or liability

	   	Glass Maintenance

	 	(15)  	promptly notify the Promoter of all broken or cracked glass on the outside or
otherwise bordering the Premises and (except in the case of damage actually insured
pursuant to clause 4 (2) and if the insurance shall not be

-8-

 

	 	   	avoided or payment of the insurance monies refused as a result of any act or
default of the Resident Member his employees servants agents or visitors) promptly
reimburse the Promoter’s costs incurred in repairing or replacing any such broken
or cracked glass

	   	Insurance Contribution

	 	(16)  	pay the Promoter forthwith on demand a sum equal to two point six one six per
cent (2.616%) of the sums from time to time paid or incurred by the Promoter under the
provisions of clause 4 (2)

	   	Insurance Vitiation

	 	(17)  	not do or fail to do anything which may increase the cost of (without the
Promoter’s consent) or may make voidable or void any insurance under clause 4 (2) and
will indemnify the Promoter against any increased cost if incurred but if part or
whole of the Property and/or Development Area are damaged or destroyed by any risk
insured against under clause 4 (2) and the proceeds of the insurance monies are
partially or wholly irrecoverable by reason of any act of or omission by the Resident
Member his employees servants agents or visitors he will promptly pay to the Promoter
a fair proportion or the whole respectively of the cost of reinstating or rebuilding
the Property and/or Development Area

	   	Reimbursement of Insurance Monies

	 	(18)  	if he becomes entitled to any insurance monies in respect of risks which the
Promoter has insured against under clause 4 (2) pay a similar amount to the Promoter
giving the Promoter full particulars in writing

-9-

 

	   	Assignment and other dealings

	 	(19)  	not assign mortgage or charge part of the Premises (the same being absolutely
prohibited) nor assign mortgage or charge the whole of the Premises without the
Promoter’s prior written consent which will not be unreasonably withheld or declared
if it considers in it’s sole discretion that the party proposed to take the assignment
mortgage or charge is respectable and responsible

	   	Sub-Letting

	 	(20)  	not sub-let part or the whole of the Premises unless:-

	 	(A)  	in the case of part of the Premises the Promoter considers in
it’s sole discretion that the part should be permitted to be sub-let
	 
	 	(B)  	in the case of part or the whole of the Premises the Promoter
considers in it’s sole discretion that the party proposed to take the
sub-letting is respectable and responsible
	 
	 	(C)  	an Order is obtained pursuant to the provisions of Section 38
(4) (a) of the Landlord and Tenant Act 1954 to exclude any sub-letting from
the provisions of Sections 24 to 28 of that Act (or any statutory re-enactment
or modification thereof) and that prior to the grant thereof the Resident
Member produces to the Promoter the Court Order to that effect and that all
other terms except for rent (which must not be less than the Rent and which
must be reviewed on the Review Dates) follow the same terms as in this Deed
wherever possible in every respect (except for the names of the

-10-

 

	 	   	parties) and not in any other case to sub-let the whole of the Premises
without the Promoter’s prior written consent

	   	Direct Covenants

	 	(21)  	to procure that any permitted Assignee or Underlessee shall enter into a
direct covenant with the Promoter to observe and perform the obligations of the
Resident Member contained in this Deed (except in the case of any Underlease the
obligation to pay the rent hereunder) including a covenant not to further assign or
underlet or otherwise part with the possession of the Premises except in accordance
with the provisions of this Deed and in the case of an assignment to pay the rent and
service charge provided for by this Deed

	   	Notice of Transfer

	 	(22)  	within Thirty days’ (30) after every assignment transfer or subletting give
the Promoter full particulars in writing TOGETHER WITH a certified copy of any
relevant document and a minimum registration fee of Twenty-Five
Pounds (£25.00)
TOGETHER WITH any Value Added or other tax payable

	   	Costs

	 	(23)  	indemnify the Promoter against all costs reasonably and properly incurred in
respect of:-

	 	(A)  	any breach of any Resident Member’s obligations hereunder
	 
	 	(B)  	any application to the Promoter for any consent or Licence

-11-

 

	 	(C)  	the preparation and service of any notice under Section 146
or 147 of the Law of Property Act 1925 (or any statutory re-enactment or
modification) even though forfeiture may be avoided by means not being relief
granted by the Court
	 
	 	(D)  	the preparation and service of any notices or schedules of
dilapidation

VAT

	 	(24)  	to pay to the Promoter against a tax invoice in the form from time to time
prescribed by law for that purpose such amount of Value Added Tax or any other similar
indirect tax on added value or on turnover at the rate for the time being in force
(“Value Added Tax”) as shall he legally payable in respect of all money covenanted to
be paid to the Promoter by the Resident Member under the terms of these presents in
respect of any supply of goods or services by the Promoter to the Resident Member and
in every case where in these presents the Resident Member covenants to pay an amount
of money such amount shall be regarded as being exclusive of all Value Added Tax which
may from time to time be legally payable thereon PROVIDED ALWAYS THAT where the
Promoter is or becomes entitled to elect to charge Value Added Tax at a positive rate
in respect of any supply made or treated as made under or pursuant to this Agreement
(but is not obliged by law in the absence of such an election so to charge Value Added
Tax) the Promoter shall at his sole discretion make such election and charge or seek
to charge Value Added Tax in respect of

-12-

 

	 	   	such supply PROVIDED FURTHER THAT nothing in this sub-clause shall oblige the
Promoter to accept that any of the rents hereinbefore reserved are deemed to be
inclusive of Value Added Tax

	   	Giving Back Premises

	 	(25)  	at the end of the Term quietly give back the Premises to the Promoter in the
condition required by this clause 3

	   	Regulations

	 	(26)  	observe the Regulations in the Third Schedule (and any arising under clause
5) applicable to the Premises Property and Development Area

	   	Membership of the LWTCA

	 	(27)  	become and remain a member of the London World Trade Centre Association or
(if the Resident Member is not himself eligible for membership of the London World
Trade Centre Association) procure that a duly authorised representative of the
Resident Member becomes and remains a member of the London World Trade Centre
Association

PROMOTER’S PROMISES

	4.  	The Promoter so as to bind the persons for the time being entitled to the immediate reversion
hut not so as to impose any personal liability on themselves except as to their own acts and
defaults promises
	 
	   	Peaceful Occupation

	 	(1)  	that the Resident Member duly paying the rent and service charge and all
other payments for which the Resident Member is responsible under this Deed and
observing and performing the obligations of the Resident

-13-

 

	 	   	Member under this Deed shall and may peaceably and quietly hold and enjoy the
Premises during the Term without any lawful interruption or disturbance by the
Promoter any persons rightfully claiming under or in trust for the Promoter

	   	Insurance of Property

	 	(2)  	to insure or cause to be insured or treated as insured at all times during
the Term the Property including all conduits the Promoter’s fixtures and fittings
equipment and apparatus against damage or loss by fire lightning earthquake explosion
implosion aircraft and other aerial objects articles dropped from aircraft and other
aerial objects storm tempest flood bursting or over-flowing of fluids from tanks pipes
or other installations riots strikes civil commotion or malicious damage impact by
road vehicles animals or water borne vessels and all other risks the Promoter
considers necessary in the full reinstatement value plus cost of site clearance and
removal of debris and architects engineers quantity surveyors and other professional
fees with allowances for projected increases wherever appropriate and any of it’s
conduits including in particular lifts boilers and pipes in the Property against
damage or loss by breakdown explosion implosion or external means with allowances for
projected increases the contracts of insurance to include the services of the
insurance company(ies) for regular inspections and issue of appropriate certificates
by competent engineers and the plate glass to the doors and windows on the outside of
the Property and to the inside of the Property (where not the

-14-

 

	 	   	responsibility of any Resident Member or occupier) and against loss of rent and
service charge for a period of four years with allowances for projected increases
against it’s third party liabilities in respect of the Property and Development
Area including employees and licensees engaged by it to comply with it’s promises
PROVIDED THAT the Promoter may amend any existing or add any new insurance in any
manner it considers appropriate and reasonable in the interests of good estate
management and will produce to the Resident Member once a year if required proof of
the Promoter’s compliance with this clause

	   	Reinstatement

	 	(3)  	that if part or all of the Property is damaged or destroyed by any of the
insured perils SUBJECT TO all consents and permissions being available (unless payment
of the insurance proceeds shall be refused in part or whole in consequence of some act
or omission by the Resident Member his employees servants agents or visitors) it will
lay out all monies received in respect of the insurance effected under clause 4(2) the
Promoter bearing the consequence of under insurance (SUBJECT TO clause 3 (17)) in
reinstating or rebuilding the Property as expeditiously as is reasonably possible
	 
	 	(4)  	to use it’s best endeavours to:-

	   	Repair Maintenance and Decoration of Common Parts

	 	(A)  	maintain in good and sufficient repair and decorative order
replacing and cleaning as reasonable necessary all those parts of

-15-

 

	 	   	the Property and it’s fixtures fittings and equipment TOGETHER WITH all
conduits exclusively serving the Property as are not the liability of the
Resident Member or any other Resident Member or occupier and provide
adequate heating and lighting of the common parts and for the avoidance of
any doubt it is agreed that the service charge may include reasonable
provisions as the Surveyor may fix on account of future costs of repairs
and replacements

	   	Cleaning of Doors and Windows

	 	(B)  	clean at intervals at the Promoter’s discretion the internal
and external glazed surfaces of all doors and windows on the outside of the
Property and to the inside of the Property (where not the responsibility of
any Resident Member or occupier)

	   	Refuse

	 	(C)  	provide storage facilities for reasonable quantities of
normal office refuse originating in the Premises

	   	Lavatories

	 	(D)  	service and repair any common lavatory accommodation and
conduits in the Property

	   	Services

	 	(E)  	provide and maintain the following facilities during normal
working hours (to be determined by the Promoter):-

-16-

 

	   	Heating and Ventilation

	 	(i)  	heating and ventilation of the Premises to
the minimum standard required by legislation

	   	Hot and Cold Water

	 	(ii)  	hot and cold water supply to the lavatories
within the Property used by the Resident Member

	   	Additional Services

	 	(F)  	provide the following items as it may consider necessary for
the maintenance or improvement of the Property in the interests of good estate
management:-

	 	(i)  	a sufficient number of reasonably suitable
persons to enable the Promoter to provide and supervise the Services
	 
	 	(ii)  	the necessary facilities to comply with any
statutory requirements relating to the Property and the Services
available not the responsibility of the Resident Member or of any
other Resident Member or occupier of the Property
	 
	 	(iii)  	security services
	 
	 	(iv)  	such other services facilities or amenities
for the benefit of the Resident Member as shall be reasonable having
regard to the nature of the Promoter’s development as a whole

-17-

 

	   	Outgoings

	 	(5)  	to pay all outgoings costs and expenses in respect of the Property and the
Services not being outgoings costs and expenses for which the Resident Member or any
other Resident Member or occupier is liable

	   	Glass Repairs

	 	(6)  	SUBJECT TO the Resident Member duly observing and performing the provisions
of clause 3 (15) to repair and replace any cracked or broken glass on the outside or
otherwise bordering the Premises

PAYMENT AND CALCULATION OF SERVICE CHARGE

	5. 	(1)  	The Resident Member shall pay the
service charge referred to in clause 3
(1) either to the Promoter direct or to
such Management Company as the Promoter
may from time to time specify in
writing but in any event the service
charge will be ascertained and is
agreed as two point six one six per
cent (2.616%) of the aggregate of the
calendar yearly cost of the Services
and a management fee of Ten per cent
(10%) of that yearly cost

	   	Initial Service Charge

	 	(2)  	The Resident Member will pay on account of the service charge:-

	 	(A)  	from the date of this Deed down to the First Anniversary the
due proportion (apportioned on a daily basis) of the initial estimate of
service charge at the annual rate specified in paragraph 12 of the Particulars
and
	 
	 	(B)  	afterwards the subsequent estimate of service charge by equal
instalments in advance on the usual quarter days

-18-

 

	   	Estimated Service Charge

	 	(3)  	At or about the beginning of each calendar year of the Term following the
First Anniversary the Promoter will supply the Resident Member with a copy of the
Surveyor’s written reasonable estimate of the amount of the service charge for that
calendar year and the Resident Member will pay this amount to the Promoter on account
in quarterly instalments in accordance with clause 5 (2)

	   	Actual Service Charge

	 	(4)  	About the First Anniversary and about the end of each subsequent calendar
year the actual costs incurred by the Promoter for the provision of the Services will
be ascertained and certified by the Promoter or it’s Surveyor and the appropriate
computations under clause 5 (1) made and any underpayment on account of the service
charge will be paid by the Resident Member promptly and any overpayment will be
deducted from the amount next payable by the Resident Member PROVIDED THAT any
overpayment to which the Resident Member may be entitled at the end of the Term will
be repaid to the Resident Member promptly SUBJECT ONLY TO any lien vested in the
Promoter

	   	Copies of Certificates

	 	(5)  	Copies of the Certificates for each calendar year will he available on
request in writing from the Resident Member the copy Certificates except for patent
error being conclusive evidence of the matters which they purport to certify

-19-

 

	   	Variations

	 	(6)  	The Promoter reserves the right in the interests of good estate management to
vary the amounts of quarterly payments to reflect where possible the actual costs
incurred or to reflect any revised written reasonable estimates of the Surveyor

	   	Interim Payments

	 	(7)  	If the Promoter fails to supply the Resident Member with the written estimate
under clause 5 (3) then until it is supplied the Resident Member will make quarterly
payments equal to those most recently payable on account of the service charge any
overall difference being adjusted in accordance with clause 5 (4)

	   	Service Charge Accounts

	 	(8)  	The Promoter will keep a proper account (with vouchers so far as is
reasonably practicable) of it’s income and expenditure in each calendar year in
respect of each service for open inspection by the Resident Member during ordinary
business hours at the Surveyor’s office in the months of May and June of the following
calendar year after reasonable notice in writing the accounts being conclusive
evidence of all matters recorded except for patent error

VARIATION OF REGULATIONS

	6.  	WITHOUT PREJUDICE to the Resident Member’s rights the Promoter may at any time during the
Term in the interests of good estate management at it’s absolute discretion amend the existing
or impose new regulations as set out in the

-20-

 

	   	Third Schedule and will supply the Resident Member with a copy which will then
take immediate effect

RE-ENTRY

	7. 	(1)  	If any sum payable by the Resident Member to
the Promoter under this Deed is unpaid
Twenty-One days (21) after becoming due it
will (WITHOUT PREJUDICE to any other rights
or remedies of the Promoter) be recoverable
as if it were rent in arrears
	 
	 	(2)  	PROVIDED ALWAYS and these presents are upon condition that if the rent or the
service charge shall be wholly or partly unpaid at the expiration of Twenty-One days
(21) next after any of the days on which the same are to be paid as aforesaid whether
the same shall have been lawfully demanded or not or if the Resident Member shall at
any time during the Term fail or neglect to observe and perform any 0f the
covenants conditions and agreements contained in this Deed and on the part of the
Resident Member to be observed and performed or if the Resident Member or the
Guarantor being a corporation a receiver shall be appointed of such corporation while
the Term is vested in the Resident member or if it shall enter into liquidation
whether compulsory or voluntary or if the Resident Member or the Guarantor being an
individual or individuals such individual or individuals or any of them shall while
the Term is vested in the Resident Member become bankrupt or make an arrangement or
composition with his creditors then and in any such case it shall be lawful for the
Promoter or any person or persons duly authorised by it in that

-21-

 

	 	   	behalf into and upon the Premises or any part thereof in the name of the whole to
re-enter and the same have again repossess and enjoy thenceforth as if this Deed
had not been made WITHOUT PREJUDICE to any right or action or remedy of the
Promoter in respect of any antecedent breach of any of the covenants conditions or
agreements by the Resident Member contained in this Deed

SUSPENSION OF RENT AND SERVICE CHARGE

	8.  	If the Premises or any part (including the access approach) are so damaged by any risk the
Promoter has promised to effect insurance against as to be unfit for the purpose for which
they were demised and provided payment of insurance monies have not been withheld in part or
whole as a result of some act or default of the Resident Member his employees servants agents
or visitors then rent and service charge payments on account of service charge or a fair
proportion (the same being determined by the Surveyor) according to the nature and extent of
the damage or the degree of loss or enjoyment of the Services will cease to be payable from
the date the Premises become unfit until their reinstatement

NOTICES

	9. 	(1)  	Any notice under this Deed shall be in writing. Any
notice to the Resident Member (if a corporation) shall be
sufficiently served if left addressed to the Resident
Member on the Premises or sent by registered or recorded
post to or left at it’s registered or principal office in
the United Kingdom and (if the Resident Member shall be
an individual or individuals) shall be sufficiently
served if left address to the Resident Member or to him
or

-22-

 

	 	   	them on the Premises or sent by registered or recorded post to or left addressed to
him or them at his or their last known address in the United Kingdom. Any notice
sent by registered or recorded post shall be deemed to have been duly served at the
expiration of forty-eight hours (48) after the time of posting. In proving service
it shall be sufficient to prove that the envelope containing the notice was duly
addressed in accordance with this clause and left at or posted to the place to
which it is so addressed

	   	Limitation of Promoter’s Liability

	 	(2)  	Notwithstanding anything in this Deed the Promoter will not be liable to the
Resident Member nor any person or persons in the Premises in respect of any
interruption or failure of any of the Services or supplies of any public utility
caused by circumstances beyond the Promoter’s immediate control or caused by any act
or omission by the Promoter it’s employees or agents not being in performance of any
duty relating to the Services except in so far as the same may be covered by the
insured risks or any damage to or loss of any chattel or property on the Premises or
Property the Resident Member indemnifying the Promoter in respect of any claim made
against the Promoter by any person

	   	Privity of Contract and Easements

	 	(3)  	Except as otherwise expressly provided the Resident Member shall not be
entitled to the benefit of or to enforce any covenant or agreement contained in any
Lease or other instrument relating to any land or building belonging to the Promoter
or limit or affect the right of the Promoter to

-23-

 

	 	   	deal with the same now or at any time hereafter in any manner which may be thought
fit nor shall anything herein contained confer on the Resident Member any liberty
privilege easement right or advantage whatsoever mentioned as referred to in
Section 62 of the Law of Property Act 1925 save those expressly hereby granted

	   	Alterations by Promoter

	 	(4)  	The Promoter may repair reconstruct or alter the Property or any adjacent
buildings or erect new buildings on any adjacent land to whatever height elevation and
extent and whenever it may think fit even though the access of light or air to the
premises may be impeded so that until impeded the access of light and air will be
deemed to have been enjoyed by virtue of this Deed (constituting a consent or
agreement in writing within the meaning of Section 3 of the Prescription Act 1832) but
despite this the previous enjoyment will not prevent any such repair reconstruction
alteration or erection

	   	Other Lettings

	 	(5)  	The Promoter may let any other part of the Property on such terms as it
thinks fit

	   	Clause Headings

	 	(6)  	The clause headings will be disregarded when interpreting this Deed

RENT REVIEW

	10. 	(1)  	Not less than three months (3) before each Review Date
the rent is to be revised (to take effect from each
Review Date) to the full open market

-24-

 

	 	   	annual rack rental value of the Premises obtainable at the Review Date in
accordance with the following provisions PROVIDED THAT in no circumstances is the
rent payable after any Review Date to be less than the rent payable immediately
before that Review Date

	   	Assessment of Revised Rent

	 	(2)  	In assessing any revised rent the following will be disregarded:-
any goodwill attributable to the Premises by reason of any trade or business
carried on by the Resident Member and any authorised improvements carried out by
the Resident Member except any improvement carried out in compliance with an
obligation by statute or an obligation to the Promoter and any other matter
specified in Section 34 (1) of the Landlord and Tenant 1954 as the same may from
time to time be amended or re-enacted AND it will be assumed that the Premises with
any permitted additions are vacant and in a state of repair in accordance with the
provisions of this Deed and to be let by a willing Landlord to a willing Tenant for
a Tern of Fifteen years (15) from the Review Date but otherwise on the terms of
this Deed (other than the rent payable) before the Review Date in question

	   	Endorsement of Deed

	 	(3)  	An Agreement between the Promoter and the Resident Member as to the revised
rent of the Premises as at each Review Date signed by both parties will be endorsed on
this Deed and it’s counterpart

-25-

 

	   	Appointment of Valuer

	 	(4)  	If agreement has not been reached within three months (3) before the relevant
Review Date either party may require an independent surveyor (called “the Valuer”) to
be appointed to determine the full open market annual rack rental value of the
Premises the Valuer (in default of agreement) to be nominated by the President of the
Royal Institution of Chartered Surveyors on the application by either party

	   	Notice of Valuer’s Appointment

	 	(5)  	Notice in writing of the Valuer’s appointment by the President will be given
by the Valuer to the Promoter and the Resident Member inviting each to submit within a
specified period (which shall not exceed four weeks (4)) a valuation accompanied if
desired by a statement of reasons

	   	Valuer’s Status

	 	(6)  	The Valuer will act as a single arbitrator in accordance with the Arbitration
Acts from time to time and for the time being in force

	   	Substitute Valuer

	 	(7)  	If the Valuer fails to determine the full open market annual rack rental
value of the Premises as aforesaid or if he relinquishes his appointment or dies or if
it becomes clear that for any reason he will be unable to complete his duties within
two months (2) after his appointment either party may apply to the President of the
Royal Institution of Chartered Surveyors for a substitute to be appointed in his place
which procedure may be repeated as many times as necessary

-26-

 

	   	Provisional Revised Rent

	 	(8)  	If the amount of the revised rent shall not have been ascertained on the
relevant Review Date then the Resident Member shall pay to the Promoter a provisional
revised rent equal to the rent payable immediately before the relevant Review Date and
upon the amount of the revised rent actually payable being ascertained any necessary
adjustment shall be made forthwith by payment by the Resident Member to the Promoter
TOGETHER WITH interest at Midland Bank Base Rate from time to time and for the time
being in force (or in the event of there ceasing to be a Midland Bank Base Rate such
alternative rate as may from time to time be specified by the Promoter as being the
nearest equivalent thereof) on any balance from the relevant Review Date to the date
of such ascertainment and for the purposes of clause 14 such balance shall be treated
as having become due for payment on the date of such ascertainment

	   	Valuer’s Fee

	 	(9)  	The Valuer’s fee will be paid as he awards but in other cases the parties
will bear their own costs

GUARANTEE

	11.  	The Guarantor undertakes to the Promoter:-

	 	(1)  	that if the Resident Member fails to pay the rent and/or any other monies
payable or fails to observe and perform the provisions of this Deed on his part to be
observed and performed or any of the other conditions of this

-27-

 

	 	   	Deed (including any continuation of the same under the provisions of the Landlord
and Tenant Act 1954 as the same may from time to time be amended or re-enacted) he
will pay the Promoter on demand all sums and losses damages costs and expenses
caused by the Resident Member and remedy any of his other defaults and the
Guarantor acknowledges that any variation of the Promoter’s rights indulgence or
compromise allowed by the Promoter to the Resident Member or Guarantor will not
affect the Guarantor’s liability under this clause

	 	(2)  	that he will if required by the Promoter within six months (6) after any
forfeiture or disclaimer of this Deed take a fresh Deed of the Premises for a period
equal to the unexpired period of the Term immediately prior to forfeiture and at a
yearly rent equivalent to the rent then payable and otherwise on the same terms as
this Deed

LIMITATION OF PROMOTER’S REPAIRING OBLIGATIONS

	12.  	The Promoter will not be liable to the Resident Member for any breach of the covenants
contained at clause 4(4) unless the Promoter shall have had actual knowledge of the need for
repair

PROVISO TO RENT REVIEW

	13. 	(1)  	Notwithstanding the provision of the revision of
rent if by reason of any legislation the Promoter
is prevented from demanding an increase of the rent
from any Review Date (or some other date also by
reason of legislation) then the rent will continue
to be payable at the rate

-28-

 

	 	   	immediately before the Review Date (or other date) and as soon as is permitted by
law the relevant review will be carried out and the increase (if any) will become
payable the assessment being based on either the Review Date or the effective
Review Date permitted by law as the Promoter decides hut where legislation permits
increases of rent on bases other than the full open market annual rack rental value
basis the Promoter will be entitled to demand those permitted increases in addition
to the rent until such time as the full open market annual rack rental value review
as prescribed by this Deed is permitted by law

	 	(2)  	Notwithstanding the previous provisions of this Deed if the rent shall not
have been reviewed at any Review Date then the Promoter shall at any time after have
the right to review the rent in accordance with clause 10 on giving to the Resident
Member not less than one month’s (1) notice in writing of the date from which the
reviewed rent is payable

-29-

 

INTEREST ON OVERDUE AMOUNTS

	14.  	If any sum payable by the Resident Member to the Promoter under this Deed is unpaid fourteen
days (14) after becoming due to the Resident Member will pay interest to the Promoter at
Midland Bank Base Rate from time to time and for the time being in force (or in the event of
there ceasing to be a Midland Bank Base Rate such alternative rate as may from time to time be
specified by the Promoter as being the nearest equivalent thereof) plus Five per cent (5%) per
annum with a minimum of Fifteen per cent (15%) per annum calculated from the date when the sum
became payable until the date when it is received by the Promoter

TELEPHONE INSTALLATION

	15.  	The Resident Member shall not later than the date of this Deed enter into an Agreement with
the Promoter in respect of the telephone equipment provided by the Promoter if at any time or
times the Promoter shall reasonably so require the Resident Member shall enter into such
further or substituted Agreement or Agreements in respect of such telephone equipment as from
time to time be required by the Promoter The said Agreement to be entered into on the date
hereof and every such further or substituted Agreement shall be in such form or forms as may
be determined by the Promoter

OPTION TO DETERMINE

	16.  	Subject on the case of the Resident Member to the due performance of its covenants this
Resident Members Agreement may be determined on the 29th September 2001

-30-

 

	 	(A)  	by the Resident Member upon giving to the Promoter not less
than six months prior written notice of such termination PROVIDED THAT such
termination will not affect any claim that the Promoter may have for any
antecedent breaches by the Resident Member of the provisions of this Deed and
	 
	 	(B)  	by the Promoter giving to the Resident Member six months
prior written notice of such termination PROVIDED THAT such termination will
not affect any claim that the Resident Member may have for any antecedent
breaches by the Promoter of the provisions of this Deed

IN WITNESS whereof the parties hereto have hereunto affixed their respective common seals the day
and year first before written

THE FIRST SCHEDULE

EASEMENTS AND RIGHTS IN FAVOUR OF THE RESIDENT MEMBER

Access

	1.  	The rights in common with the Promoter and all others entitled:-

	 	(1)  	to use the entrance, accessways and lifts in the common parts of the property
and the door shown edged green on Plan A for the purpose only of gaining access to and
egress from the premises on foot only to pass and repass over and along the
courtyards, footpaths, stairways of the property or the development area

-31-

 

	 	(2)  	to carry all necessary goods between the Premises and the Service Area and to
carry goods in the goods lifts

Lavatories

	2.  	The right in common with the Promoter and all others entitled to use such lavatory facilities
in the Property as shall from time to time be allocated by the Promoter

Utilities

	3.  	The right of passage of air and of water soil electricity gas telephone telex and all other
utility services to and from the Premises through the conduits used in common with other parts
of the Property under through or over the Development Area

Support

	4.  	Support and protection by the remainder of the Property for the Premises

Promoter’s Rights

	5.  	PROVIDED HOWEVER THAT:-

	 	(1)  	the Promoter may from time to time by notice in writing to the Resident
Member vary amend add to or subtract from the said easements and rights or the routes
thereof (or both) in such manner as the Promoter may think desirable but not so as to
render the Premises or the means of access thereto incapable of beneficial use
	 
	 	(2)  	the Promoter may from time to time in pursuance of the promotion of the World
Traders Association and it’s members close the Grand Hall at Quay Level in the
Property to use by the Resident Member so as to enable the

-32-

 

	 	   	Grand Hall to be laid out and used for meetings conferences receptions banquets and
other functions but in so doing the Promoter will not prevent the Resident Member
from gaining access to the Premises by other means

	 	(3)  	the said easements and rights are always SUBJECT TO the right of the Promoter
(without being liable to the Resident Member) to prevent the use of the entrances
areas ways toilets and lifts for so long as may be reasonably necessary to enable the
Promoter to comply with it’s promises to provide the Services or to exercise it’s
rights to prevent any rights arising by prescription or dedication but in doing so the
Promoter will not prevent the Resident Member from gaining access to the Premises

THE SECOND SCHEDULE

EASEMENTS AND RIGHTS EXCLUDED FROM THE RESIDENT MEMBER

Utilities

	1.  	Free passage of water soil electricity gas telephone telex and all other utility services
through the conduits in the Premises to and from the remainder of the Property

Support

	2.  	Support and protection by the Premises for the remainder of the Property

Superior Landlord and Promoter’s Rights

	3.  	The right for any Superior Landlord and the Promoter without the Resident Member’s consent or
right to compensation to demolish erect add to or alter any land or buildings adjoining or
near to the Premises regardless as to whether or not

-33-

 

	   	light or air to the Premises is affected or diminished as long as the Premises are still
capable of beneficial use

Entry by Promoter

	4.  	The right for the Promoter it’s Surveyors agents workmen and other at all times on reasonable
notice (except in the case of an emergency) to enter the Premises for the purposes of
examining testing repairing replacing adding to altering and maintaining the Property
including the conduits and to clean the inside and the outside of the windows and to make
connections and disconnections which may be necessary for the purpose of carrying out any work
or doing anything within the Promoter’s obligations or rights or for which a Resident Member
is liable to make a contribution PROVIDED THAT the Promoter will make good any damage caused
by the work or anything done to the Premises fixtures fittings chattels or effects on the
Premises but the Promoter will not be liable to the Resident Member for any inconvenience
caused

Rebuilding or Alterations

	5.  	The right for the Promoter to build rebuild or alter other parts of the Property or
Development Area in any manner and to let (or deal with in any other way) the works for any
purpose notwithstanding that the light or air or any other easement or right to the Premises
or enjoyed by the Resident Member is in any way diminished or prejudiced but not so that the
Premises be made incapable of beneficial use

-34-

 

THE THIRD SCHEDULE

REGULATIONS

Hours of Use

	1.  	Not to use the Premises except between the hours of 8 am until 6 pm on business days or at
all on Saturdays Sundays or Public Holidays except by prior arrangement with the Promoter

Dangerous Materials

	2.  	Not to keep any inflammable volatile dangerous or explosive material on the Premises Property
or Development Area

Control of Staff

	3.  	To use the entrances areas ways and lifts in the Property and the Development Area (excluding
the Premises) for the purposes of getting to and leaving the Premises and the Service Area
only and not to allow any person under his control to loiter in or obstruct these places or
interfere with any of the conduits

Goods

	4.  	Not to carry goods through the entrance halls in the Property nor in the lifts except the
goods lifts from time to time allocated by the Promoter for the purpose

Vehicular Obstruction

	5.  	Not wilfully to obstruct the movement of vehicles in any common vehicular accessway

-35-

 

Parking

	6.  	No vehicles to be parked in the Service Area for longer than reasonably necessary for the
purpose of loading and unloading and in any event no vehicle to remain overnight

Cleaning

	7.  	No mat brush or mop to be shaken nor anything thrown outside the Premises

Windows

	8.  	Not to open the windows of the Premises

Blinds

	9.  	No blind or curtain to be fitted to the windows of the Premises without the previous written
approval of the Promoter which if given would involve conditions to colour and type

Floor Loading

	10.  	Not to load any part of the Premises Property or Development Area beyond it’s capacity and
not to permit any damage to he caused to the Property or Development Area by the carrying of
chattels

Signs

	11.  	No signs or nameplates to be placed anywhere in the Property or Development Area without the
previous written approval of the Promoter which if given would involve conditions as to
conformity to the general pattern design size and location as the Promoter shall reasonably
require

-36-

 

Goods and Chattels

	12.  	Not to expose for sale on the Property or Development Area (other than within the Premises)
any goods or things whatever

Obstruction of Entrance Ways Pipes etc

	13.  	Not to cause or suffer any entrance areas ways lifts or the soil or wastepipes in the
Property to become blocked or obstructed

Insurance and Fire

	14.  	To comply with all reasonable recommendations of the insurers and Fire Authorities as to fire
precautions relating to the Premises

Security Services

	15.  	To comply with all reasonable requirements of the Promoter’s security services

Office Cleaning

	16.  	Not to have office cleaners at the Premises except between the hours of midnight and 8 am on
business days

Disposal of Refuse

	17.  	All office (and no other) refuse to be deposited in accordance with clause 4 (4) (C)

Airconditioning

	18.  	Not to cause or suffer the Promoter’s airconditioning equipment in the Property to become
overloaded by reason of heat cold or any other matter or thing generated or happening within
the Premises

-37-

 

Telephones

	19.  	To comply with all reasonable requirements of the Promoter in relation to telephones and
telephone equipment

	 	 	 	 	 	 	 
	THE COMMON SEAL of ST KATHARINE BY

	 	 	)	 	 	 
	THE TOWER LIMITED was hereunto

	 	 	)	 	 	 
	affixed in the presence of:

	 	 	)	 	 	 

Director

Secretary

-38-EX-10.23:

 

Exhibit 10.23

	Dated 28 April 2003	 
	 

	(1)  	INTER ONE LIMITED
and INTER TWO LIMITED
	 
	(2)  	THE INTERNATIONAL
PETROLEUM

EXCHANGE OF LONDON LIMITED

LEASE

OF

PART

(OFFICES)

Suite Ref 2.17 Quay Level

International House

1 St Katharine’s Way London E1

PENNINGTONS

BUCKLERSBURY HOUSE

83 CANNON STREET

LONDON

EC4N 8PE

REF: PMC/220 1933/620645

TEL: 0207 457 3000

FAX: 0207 457 3240

DX: 98946 CHEAPSIDE 2

Certain information in this agreement has been omitted and filed
separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

[Graphics of Plan 1, Plan 2 and Plan 3]

 

 

	   	THIS LEASE dated 28 April 2003 is made between the following parties:
	 
	(1)  	INTER ONE LIMITED and INTER TWO LIMITED whose registered office is Pirouet
House Union Street St Helier P0 Box 737 Jersey Channel Islands JE4 8ZQ registered under
company numbers 80300 and 80311 respectively and whose address for service in England and
Wales is Venture House 42-54 London Road Staines Middlesex TW18 4HF (“the Landlord”)
	 
	(2)  	THE INTERNATIONAL PETROLEUM EXCHANGE OF LONDON LIMITED whose registered office is at
International House 1 St Katharine’s Way London E1W 1UY registered in England under company
number 1528617 (“the Tenant”)
	 
	1.  	DEFINITIONS
	 
	   	In this Lease where the context allows:-
	 
	1.1  	“1954 Act” means the Landlord and Tenant Act 1954
	 
	1.2  	“1995 Act” means the Landlord and Tenant (Covenants) Act 1995
	 
	1.3  	“Annual Rent” means the yearly rent payable from time to time by virtue of Clause 2.4.1
	 
	1.4  	“Building” means the land and buildings known as International House London El and for the
purpose of identification only edged red on plan 1
	 
	1.5  	“CDM Regulations” the Construction (Design & Management) Regulations 1994
	 
	1.6  	“Common Parts of the Building” means all footpaths yards halls passageways fire escapes
staircases lifts landings and any other areas in the Building which are from time to time
during the Term provided by the Landlord for use in common by the tenants and occupiers of the
Building and all persons expressly or by implication authorised by them
	 
	1.7  	“Conduits” means all cisterns tanks water and supply pipes (including gas and oil pipes)
gutters sewers drains soil pipes waste pipes watercourses culverts soakaways ducts conduits
flues tubes and other conducting media and also wires

2

 

	   	and cables and optic fibres used for the transmission of electric current
television radio telephonic telegraphic and other telecommunications and
electronic signals and all fixings louvres cowls covers meters and other
ancillary equipment or structures
	 
	1.8  	“Connected Party” has the meaning given by Clause 5.7.2
	 
	1.9  	“the Estate” means the estate known as St Katharine Docks the present extent of which is
shown for identification only edged and hatched red on plan 3 including without prejudice to
the generality thereof

	 	1.9.1  	the Conduits within the Estate
	 
	 	1.9.2  	any seats sculptures bridges locks gates and associated equipment from time
to time in on or over the Estate
	 
	 	1.9.3  	the river walls and the locks
	 
	 	1.9.4  	the communal areas basins and estate roads and footpaths within the Estate

	1.10  	“Group Company” means another company which is a member of the same group within the meaning
of Section 42 of the 1954 Act (“the Group Company”) and “member of a group” has the meaning
given by that section
	 
	1.11  	“Interest” except where otherwise expressly stated means interest at the rate of 4% per annum
above the base rate for the time being of National Westminster Bank Plc (or the base rate for
the time being of such other London Clearing Bank as the Landlord designates for the purpose)
or if there is no such base rate then such other comparable rate of interest specified by the
Landlord from time to time
	 
	1.12  	“Letting Unit” means an individual office suite or other unit of accommodation in the
Building (other than any accommodation provided for a porter or caretaker) that is let or
available for letting or otherwise exclusively occupied (or intended for letting or exclusive
occupation) otherwise than solely in connection with the management of the Building or the
provision of services to the Building

3

 

	1.13  	“Planning Acts” means the planning Acts as defined in Section 336 of the Town & Country
Planning Act 1990 and all statutes containing provisions relating to town and country planning
from time to time in force and all other statutes statutory instruments regulations rules and
orders and directions included by virtue of Clause 5.11.11
	 
	1.14  	“Premises” means the premises known as Suite Ref 2.17 on Quay Level of the Building for the
purpose of identification only shown edged red on plan 2 and described (for the purpose of
obligation as well as grant) in Part 1 of the First Schedule
	 
	1.15  	“Rent” moans any of the rents reserved by Clause 2
	 
	1.16  	“Rent Payment Days” mean respectively 25th March 24th June 29th September and 25th December
in each year
	 
	1.17  	“Retained Property” means all parts of the Building which are not from time to time Letting
Units including (without prejudice to the generality of the foregoing):

	 	1.17.1  	the Common Parts of the Building
	 
	 	1.17.2  	all Conduits in or serving the Building except any that exclusively serve any
individual Letting Unit
	 
	 	1.17.3  	those parts of the structure walls foundations and roofs which are not within the
Premises nor would be included in the other Letting Units in the Building if they were
let on the same basis as the Premises

	1.18  	“Service Charge” means the service charge calculated and payable in accordance with the
Second Schedule
	 
	1.19  	“service hours” means the hours beginning at 8 a.m. and ending at 6 p.m. on each day from
Monday to Friday inclusive but excluding bank public or other national holidays or such other
hours which the Landlord shall from time to time notify to the Tenant
	 
	1.20  	“Supplemental Agreement” has the meaning given by clause 5.7.1

4

 

	1.21  	“VAT” means value added tax the tax as constituted by the Value Added Tax Act 1994 or any
other similar tax imposed in addition to or in substitution (and unless otherwise expressly
stated all references to rent or other monies payable by the Tenant are exclusive of any VAT
charged or chargeable thereon)
	 
	2.  	DEMISE AND RENT
	 
	2.1  	The Landlord DEMISES the Premises to the Tenant TOGETHER WITH the rights set out in Part 2 of
the First Schedule EXCEPTING AND RESERVING as set out in Part 3 of the First Schedule
	 
	2.2  	TO HOLD the Premises to the Tenant from and including 29 September 2001 “the Term
Commencement Date” for a term of years expiring on 24 December 2008 (determinable as provided
in Clause 5.12)
	 
	2.3  	Subject to the matters more particularly referred to in Part 4 and Part 5 of the First
Schedule
	 
	2.4  	YIELDING AND PAYING to the Landlord during the Term without any deductions or set off legal
or equitable:

	 	2.4.1  	by equal quarterly payments in advance on the Rent Payment Days

	                                                       
	 	(a)  	from the Term Commencement Date to 28 September 2006
(both days inclusive) the yearly rent of [***] £[***]
	                                                        
	 
	 	(b)  	from and including 29 September 2006 the yearly rent
determined in accordance with Clause 7

	 	   	the first payment to be made on the date of this Lease for the period beginning
on the Term Commencement Date and ending on the day before the Rent Payment Day
following the date of this Lease
	 
	 	2.4.2  	by way of further or additional rent any VAT which is payable on the rents
reserved by this Lease in accordance with Clause 3.2
	 
	 	2.4.3  	by way of further or additional rent from time to time a sum equivalent to
the gross premium payable for the insurance attributable to the

	 	 
	 	 

	 	 	 
	***	 	Certain information on this page has been omitted and
filed separately with the Commission. Confidential treatment has been
requested with respect to the omitted portions.

5

 

	 	   	Premises effected in accordance with Clause 4.2 such sum to be payable to the
Landlord on demand
	 
	 	2.4.4  	by way of further or additional rent from time to time the Service Charge

	2.5  	If any rent or any other sum due under this Lease is unpaid for more than fourteen days
(whether formally demanded or not) the Tenant must pay Interest calculated on a daily basis on
the amount unpaid from the date on which it was due until the date on which payment is made
and to be payable to the Landlord on demand and recoverable as rent in arrear
	 
	2.6  	If the Landlord refuses to accept any rent or any other sum so as not to waive any existing
breach or alleged breach of covenant the Tenant must pay Interest calculated on a daily basis
on the amount refused or unpaid from and including the date on which it was due to the date
when payment is accepted by the Landlord and to be payable on demand and recoverable as rent
in arrear
	 
	3.  	TENANT’S COVENANTS
	 
	   	The Tenant COVENANTS with the Landlord:-
	 
	3.1  	To Pay Rent
	 
	   	To pay the rents and Interest at the times and in the manner stated without any deduction
or set off
	 
	3.2  	To Pay Outgoings

	 	3.2.1  	To pay and discharge or indemnify the Landlord against all rates (including
water rates) taxes duties charges assessments impositions and outgoings whatsoever
(whether parliamentary parochial local or of any other description) which are now or
at any time during the Term assessed charged or imposed upon the Premises or the owner
or occupier and whether of an existing or novel nature except tax (other than VAT)
payable by the Landlord on the Rent or occasioned by any disposition or dealing with
the ownership of the reversion to this Lease

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	 	3.2.2  	To pay all charges incurred relating to water gas electric current power and
telecommunications and other services supplied to the Premises (including all standing
charges and meter rents)
	 
	 	3.2.3  	Where VAT is chargeable on Rent or any other supply (as defined in the VAT
legislation) made by the Landlord to the Tenant that supply is exclusive of VAT and
the Tenant is to pay VAT in addition to the amount of the supply
	 
	 	3.2.4  	Where the Tenant is to reimburse the Landlord (or any other party) any
expenses incurred and the reimbursement is not a supply to the Tenant for the purposes
of VAT to pay an amount equal to any VAT charged to the extent that the Landlord is
unable to recover that VAT as an input
	 
	 	3.2.5  	For the avoidance of doubt the Landlord is under no duty to make or not to
make any election or exercise or not exercise any right conferred on it by the
statutes relating to VAT so as to reduce or avoid any liability to VAT referred to
above
	 
	 	3.2.6  	In the event of the Landlord from time to time agreeing (in its absolute
discretion) to supply services referred to in Clauses 4.4.2 and 4.4.3 outside the
service hours following request from the Tenant to that effect the Tenant shall pay
the Landlord for the use thereof

	3.3  	To Repair
	 
	   	At all times during the Term (whether or not the Landlord has served notice requiring the
Tenant so to do) to keep the Premises in good and substantial repair and condition
appropriate to the standard expected of a high class office building in the City of London
(except where damage results from any of the risks against which the Landlord has insured
under Clause 4.2 unless payment of any of the insurance moneys are refused by reason of any
act neglect or default of the Tenant)

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	3.4  	To Redecorate
	 
	   	Without prejudice to Clause 3.3 at all times during the Term to keep the Premises in good
decorative condition appropriate to the standard expected of a high class office building
in the City of London and

	 	3.4.1  	in every fifth year of the Term and in the last year of the Term in a proper
and workmanlike manner to prepare and then paint all the inside parts of the Premises
where previously or usually painted with two coats at least of good quality paint and
at the same time and in like manner to wash varnish paper and otherwise decorate or
treat the parts previously or usually so decorated or treated
	 
	 	3.4.2  	the tints colours and patterns of all works of decoration effected in the
last year of the Term are to be approved by the Landlord. Such approval not to be
unreasonably withheld or delayed.

	3.5  	Fixtures and Fittings and Cleaning
	 
	   	Without prejudice to Clause 3.3

	 	3.5.1  	to maintain in good and serviceable condition the Landlord’s fixtures and
fittings in the Premises and replace any which become worn out lost or unfit for use
by substituting others of a like or more modern nature
	 
	 	3.5.2  	to clean the interior of the windows of the Premises regularly and at least
once a month taking all necessary precautions to avoid damage to the window frames and
making good forthwith any such damage
	 
	 	3.5.3  	to clean the Premises regularly and to maintain them at all times in a clean
and tidy condition

	3.6  	To Yield Up
	 
	   	At the end of the Term:

	 	3.6.1  	unless the Landlord otherwise requires to remove all trade or tenants
fixtures and fittings and to reinstate the Premises to the satisfaction of the
Landlord following their removal

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	 	3.6.2  	unless the Landlord otherwise requires to remove all alterations made to the
Premises since 9 September 1994 (whether or not they have been authorised by the
Landlord) and to reinstate the Premises making good any damage caused to the Premises
by their removal to the satisfaction of the Landlord
	 
	 	3.6.3  	unless the Landlord otherwise requires to reinstate the Premises to the
satisfaction of the Landlord by the removal of the works of alteration authorised by
the Licence to Alter made between Clipper Investments Limited (1) and the Tenant (2)
on 4 April 1995
	 
	 	3.6.4  	quietly to yield up the Premises and all fixtures and fittings (trade or
tenants fixtures and fittings only excepted) in that state and condition which is in
all respects consistent with a full and due performance by the Tenant of its
obligations under this Lease

	3.7  	Condition at End of Term
	 
	   	If at the end of the Term the Premises are not in the state and condition in which they
should be having regard to the Tenant’s obligations the Tenant must (if required by the
Landlord) pay to the Landlord on demand as a debt due to the Landlord such sum as is
certified by the Landlord’s surveyor to represent in its opinion the aggregate of

	 	3.7.1  	the cost of putting the Premises into that state and condition (including
without limitation all professional fees incurred) and
	 
	 	3.7.2  	the Annual Rent and Service Charge that would have been payable if the Term
had been extended for such period as would be reasonably necessary to put the Premises
into that state and condition on the assumption that such works are carried out with
due expedition

	3.8  	Tenant’s Possessions
	 
	   	If following the end of the Term any of the Tenant’s possessions remain on the Premises and
the Tenant fails to remove them within seven days after being requested in writing by the
Landlord to do so or if after using all reasonable

9

 

	   	endeavours the Landlord is unable to make such a request to the Tenant within 14 days from
the first attempt:

	 	3.8.1  	the Landlord may as the agent of the Tenant sell the possessions and the
Tenant indemnifies the Landlord against any liability incurred by it to any third
party whose possessions have been sold by the Landlord in the mistaken belief (which
will be presumed) that the possessions belonged to the Tenant
	 
	 	3.8.2  	if the Landlord having made reasonable efforts is unable to locate the
Tenant the Landlord is entitled to retain any proceeds of sale unless the Tenant
claims them within 90 days of the end of the Term and
	 
	 	3.8.3  	the Tenant will be responsible for and will indemnify the Landlord against
any damage caused to the Premises by the possession and any losses suffered by the
Landlord directly or indirectly as a result of the presence of the possessions on the
Premises after the end of the Term

	3.9  	To repair on notice

	 	3.9.1  	To permit the Landlord at all reasonable times on reasonable prior notice
(except in emergency) to enter and inspect the Premises to take a schedule of fixtures
and fittings and generally to monitor the performance by the Tenant of its obligations
under this Lease
	 
	 	3.9.2  	If the Landlord or its agents or surveyors gives to the Tenant (or leaves on
the Premises) notice of any repairs maintenance or decoration which the Tenant has
failed to carry out or of any other failure by the Tenant to comply with its
obligations under this Lease to repair clean and decorate the Premises and/or remedy
such failure in accordance with the notice within a period of two months from the date
of the notice (or sooner if reasonably required)
	 
	 	3.9.3  	If the Tenant does not commence and proceed diligently within that period
with the works needed to comply with the notice to permit the Landlord to enter the
Premises and carry out the works at the expense

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	 	   	of the Tenant and to pay to the Landlord on demand the proper expenses of such
works (including all legal costs surveyor’s and other fees) which (if not
repaid) shall be recoverable by the Landlord as rent in arrear

	3.10  	To permit entry for repair etc
	 
	   	To permit the Landlord and the tenants and occupiers of any adjoining or neighbouring
premises with or without workmen together with any necessary materials tools or other
equipment at reasonable hours and upon giving reasonable notice (except in emergency) to
enter the Premises for any of the following purposes:-

	 	3.10.1  	complying with statutory requirements inspecting carrying out repairs in or upon the
Premises or (where it would be impracticable or uneconomical for the Landlord to carry
out such building works repairs or alterations without so entering) carrying out
building works repairs or alterations to or upon any other parts of the Building or
any adjoining or neighbouring premises
	 
	 	3.10.2  	inspecting laying connecting cleansing emptying repairing renewing altering or
improving the Conduits belonging to or serving any other parts of the Building or any
adjoining or neighbouring premises
	 
	 	3.10.3  	constructing any building or structure on any adjoining or neighbouring premises
	 
	 	3.10.4  	performing the obligations of the Landlord in this Lease or the lease of any other
Letting Unit

	   	the person so entering is to give reasonable notice (except in emergency) do as little
damage as practicable and make good in a reasonable manner all damage caused to the
Premises as quickly as reasonably practicable
	 
	3.11  	To pay costs
	 
	   	To pay to the Landlord within 14 days of demand on an indemnity basis all costs charges
fees and other expenses (including legal costs and surveyor’s and other

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	   	professional fees) properly incurred by the Landlord (or which otherwise would be payable
by the Landlord) in contemplation of or in connection with or arising out of

	 	3.11.1  	the preparation and service on the Tenant of any notice (whether statutory or
otherwise) and including the preparation of any schedule to accompany such notice in
relation to any breach of any covenant by the Tenant (and without prejudice to the
generality of the foregoing any notice and schedule relating to the state and
condition of the Premises served at or after the end of the Term including the cost of
any certificate under Clause 3.7)
	 
	 	3.11.2  	any proceedings relating to the Premises under Section 146 or 147 of the Law of
Property Act 1925 (even if forfeiture is avoided otherwise than by relief granted by
the Court)
	 
	 	3.11.3  	the recovery of rent or other sums due from the Tenant
	 
	 	3.11.4  	any application to the Landlord for any consent or approval required under this
Lease whether or not this is granted or acted upon or any application is withdrawn
	 
	 	3.11.5  	any matter or thing required to be done or arising out of the Tenant’s covenants

	   	and in relation to any of the above matters the Landlord is entitled to charge a reasonable
fee for any work done by the Landlord itself by any associated or subsidiary company of the
Landlord or by its or their employees
	 
	3.12  	User

	 	3.12.1  	Not at any time to use the Premises for any illegal or immoral purpose or for any
purpose which may infringe any statute for the time being in force
	 
	 	3.12.2  	Not to use the Premises as sleeping accommodation or for residential purposes nor to
keep any animal fish reptile or bird on the Premises

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	 	3.12.3  	Not to do or carry on at the Premises any offensive noisy or dangerous act trade
business manufacture occupation or thing
	 
	 	3.12.4  	Not to use the Premises for the business of a turf commission agent betting office
or money lender or a club or for any sale by auction
	 
	 	3.12.5  	To use the Premises only as business or professional offices
	 
	 	3.12.6  	Not to:

	 	(a)  	use any loud speaker television set radio sound
equipment or other devices so as to be heard outside the Premises
	 
	 	(b)  	install or use in the Premises any machinery or
apparatus causing noise or vibration which can be heard or felt outside
the Premises or which may cause damage
	 
	 	(c)  	keep any materials of a dangerous combustible or
explosive nature in the Premises

	 	3.12.7  	To ensure that at all times both the Landlord and the local police have written
details of the name address and home telephone number of at least two key holders to
the Premises

	   	PROVIDED that the Tenant acknowledges that nothing in this Lease nor any approval or
consent given by the Landlord now or at any time during the Term shall imply represent or
warrant that the Premises may be lawfully used for any particular use under the Planning
Acts or any other statute
	 
	3.13  	Alterations

	 	3.13.1  	Save insofar as has already been carried out at the date of this Lease (but without
prejudice to Clause 3.6) not to:-

	 	(a)  	unite the Premises with any adjoining premises
	 
	 	(b)  	make any external alterations to the Premises
	 
	 	(c)  	cut maim sever pierce or alter the roof the piling
the foundations or any floor slabs load bearing walls timbers columns
girders beams of the Premises or the Building nor carry out any works
alterations or additions of a structural

13

 

	 	   	nature or of a nature which would adversely affect the air
conditioning and/or the electrical installations in the Building
except insofar as this is necessary to comply with the Tenant’s
obligations to keep the Premises in repair or is a necessary
consequence of any alterations to which the Landlord gives its consent
under clause 3.13.2 and is approved by the Landlord when giving that
consent in accordance with clause 3.13.2
	 
	 	(d)  	erect or build any new additional or substituted
building or structure upon the Premises

	 	3.13.2  	Not to:-

	 	(a)  	make any alterations or additions to the Landlord’s
fixtures and fittings or the Conduits forming part of and exclusively
serving the Premises
	 
	 	(b)  	make any internal additions or alterations of a
non-structural nature to the Premises

	 	   	without the written consent of the Landlord (such consent not to be
unreasonably withheld) nor except in accordance with plans and specifications
previously submitted to and approved by the Landlord and to the satisfaction of
the Landlord and subject always to the provisions of sub-clause 3.13.3
	 
	 	3.13.3  	Where any consent is given under this Clause 3.13 the Tenant before commencing any
works must enter into a licence for such alterations with the Landlord in such terms
as the Landlord acting reasonably may require
	 
	 	3.13.4  	Notwithstanding Clause 3.13.2 the Tenant may without any consent from the Landlord
erect or alter or remove any internal demountable partitioning which does not in any
way affect the structure of the Premises or adversely affect the air handling systems
in the Premises and which shall be treated as a tenant’s fixtures subject to the
Tenant:-

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	 	(a)  	giving the Landlord not less than 28 days notice in
writing of its intention to carry out any such works together with plans
and specifications
	 
	 	(b)  	carrying out such works in a good and workmanlike
manner and in accordance with any necessary permission consent or approval
required under statute
	 
	 	(c)  	reinstating the Premises to their former state and
condition on or before the end of the Term unless the Landlord by notice
in writing requests the Tenant to do otherwise

	 	3.13.5  	To inform the Landlord of the cost of any alterations or additions carried out by
the Tenant (except any which are trade or tenant’s fixtures or fittings) as soon as
practicable and so that the Landlord will not be liable for any failure to effect any
necessary increase in the amount for which the Premises are insured unless the Tenant
has provided that information
	 
	 	3.13.6  	In all cases where the CDM Regulations apply to any works carried out to the
Premises (whether or not the Landlord’s consent is required for them under Clause
3.13) the Tenant shall:

	 	(a)  	comply in all respects with the CDM Regulations and
procure that any person involved in carrying out such works complies with
the CDM Regulations and
	 
	 	(b)  	where appropriate act as the client in respect of
those works and at the request of the Landlord serve a declaration to that
effect on the Health and Safety Executive under regulation 4 of the CDM
Regulations and give a copy of it to the Landlord
	 
	 	(c)  	maintain and make the Health and Safety File
available to the Landlord for inspection when reasonably requested

	 	3.13.7  	If the Tenant fails to provide any information which it is required to provide under
Clause 3.13.6 to allow the Landlord to enter the Premises to carry out any inspection
and investigation necessary for

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	 	   	the Landlord to make a complete record of the works and to obtain any other
information which the Health and Safety File should contain and to pay all
costs and expenses incurred by the Landlord within 7 days of demand

	3.14  	Aerials and Signs

	 	3.14.1  	Not to exhibit any sign fascia notice or advertisement on the outside of the
Premises or so as to be visible outside the Premises other than a sign showing the
Tenant’s name in the position specified by the Landlord in the entrance to the
Building and outside the Premises subject to that sign being of a size design layout
and materials specified by the Landlord
	 
	 	3.14.2  	To comply with the Town and Country Planning (Control of Advertisement) Regulations
1992 or any regulations amending or replacing them
	 
	 	3.14.3  	Not to erect any pole mast aerial or dish on the outside of the Premises
	 
	 	3.14.4  	At the end of the Term to remove any sign fascia notice or advertisement and make
good any damage caused to the satisfaction of the Landlord

	3.15  	To comply with the Planning Acts

	 	3.15.1  	To comply with the Planning Acts and any planning permissions relating to or
affecting the Premises and to indemnify and keep the Landlord indemnified against all
actions proceedings claims demands losses costs expenses damages and liability
whatsoever in consequence of any non-compliance
	 
	 	3.15.2  	Not to make any application for planning permission relating to the Premises or
carry out any Development
	 
	 	3.15.3  	For the purposes of Clause 3.16 “Development” has the meaning given in the Planning
Acts

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	3.16  	To comply with statutes
	 
	   	Without prejudice to Clause 3.14:

	 	3.16.1  	to execute and do all such acts matters works or things relating to the Premises or
the Tenant’s use or occupation of the Premises as may during the Term be required in
order to comply with any statute or the requirements of any government department
local or other authority or court of competent jurisdiction (including but without
limitation the Planning Acts the Factories Act 1961 the Offices Shops and Railways
Premises Act 1963 the Fire Precautions Act 1971 the Health and Safety at Work etc. Act
1974 and the Environmental Protection Act 1990) whether or not the requirements are
imposed on the lessor the lessee or the occupier of the Premises
	 
	 	3.16.2  	in default of compliance to permit the Landlord to enter the Premises and comply
with such requirements
	 
	 	3.16.3  	to indemnify the Landlord from and against all loss damage proceedings costs charges
and expenses in consequence of any such requirements or of any non-compliance by the
Tenant
	 
	 	3.16.4  	within seven days of receipt by the Tenant of any notice or order or proposal for a
notice or an order issued to the Tenant or served on the Premises by any government
department local or other authority or court of competent jurisdiction under any
statute to give full particulars to the Landlord and without delay to take all
reasonable or necessary steps to comply with any notice or order and also at the
request of the Landlord and the cost of the Tenant to make or join with the Landlord
in making any objection or representation against any notice order or proposal which
the Landlord deems expedient

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	3.17  	Encroachments

	 	3.17.1  	Not to stop up darken obstruct injure or impair any windows lights or easements
belonging to the Premises or to any buildings on any part of the Premises
	 
	 	3.17.2  	Not to permit any new window light opening doorway path passage drain or other
encroachment or easement to be made or acquired against or upon the Premises and if
any window light opening doorway path passage drain or other encroachment or easement
is made or attempted to be made to give immediate notice to the Landlord and at the
request of the Landlord to adopt such means as may be reasonably required for
preventing such encroachment or the acquisition of such easement

	3.18  	Occupation and possession

	 	3.18.1  	Except as permitted by Clauses 3.19 and 3.20:

	 	(a)  	not to hold the Premises on trust for another (except
where the Tenant comprises four individuals carrying on business in
partnership with others at the Premises and holds the Premises on trust
for the remaining partners)
	 
	 	(b)  	not to part with or share the possession or
occupation of the whole or any part of the Premises
	 
	 	(c)  	not to permit another to occupy the whole or any part
of the Premises

	 	3.18.2  	Not to assign or charge part only of the Premises nor to underlet the whole or any
part of the Premises
	 
	 	3.18.3  	Notwithstanding Clause 3.18.1 where the Tenant is a company it may share the
occupation of the Premises with another Group Company for so long as the following
conditions are satisfied:

	 	(a)  	the Group Company and the Tenant remain members of
the same group

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	 	(b)  	the Group Company occupies the Premises as licensee
only and no relationship of landlord and tenant subsists between the
Tenant and the Group Company
	 
	 	(c)  	the Tenant notifies the Landlord in writing of the
identity of any Group Company occupying the Premises and any change in
occupation

	3.19  	Assignment

	 	3.19.1  	The Tenant may not assign the Premises:

	 	(a)  	to a Non-Qualifying Assignee as defined in Sub-clause
3.19.2
	 
	 	(b)  	(where the Tenant is a company) to another Group
Company other than to the ultimate parent company of the group of which
the Tenant is a member
	 
	 	(c)  	(where the assignee comprises individuals carrying on
business in partnership) unless the assignment is to four partners in that
partnership (or to all the partners if there are less than four partners)
	 
	 	(d)  	if any Prohibited Circumstances referred to in
Sub-clause 3.19.3 apply
	 
	 	(e)  	without complying with sub-clause 3.19.4

	 	3.19.2  	A Non-Qualifying Assignee is an assignee which falls into any of the following
categories:

	 	(a)  	a company incorporated outside the United Kingdom
which is not registered at Companies House in accordance with Schedule 21A
or Section 691 of the Companies Act 1985
	 
	 	(b)  	an assignee with sovereign diplomatic or consular
immunity or privilege (except where that immunity or privilege could not
be claimed in relation to the obligations of the Tenant under the Lease)

	   	(and if an assignee comprises more than one party it is the case that all those parties
fall into one or more of those categories)

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	 	3.19.3  	Prohibited Circumstances are any of the following which apply:

	 	(a)  	the Tenant (or any undertenant or permitted occupier)
has made application for consent or approval under the Lease for
alterations underletting or any other matter requiring the Landlord’s
consent or approval under the Lease or the parties have agreed terms for
variation of the Lease (“the Arrangements”); and

	 	(i)  	the documentation recording the
Arrangements has not been completed; and either
	 
	 	(ii)  	the Arrangements are contemplated
for the purpose of rectifying regularising or authorising a
subsisting or prior breach of the Tenant’s obligations under the
Lease; or
	 
	 	(iii)  	(in any other case) the Tenant has
not withdrawn the application or (as the case may be) its
agreement to the proposed variation

	 	(b)  	there are subsisting arrears of Rent or any other
sums due under the Lease

	 	3.19.4  	The parties agree that

	 	(a)  	any consent given by the Landlord to an application
for consent to an assignment may be given subject to a condition that any
or all of the Conditions Precedent referred to in Sub-clause 3.19.5 which
are capable of applying to the assignment are complied with
	 
	 	(b)  	the Landlord is entitled to withhold consent for an
assignment because circumstances other than those referred to in Clause
3.19.3 apply where it would be reasonable to withhold consent or to grant
consent subject to conditions other than those referred to in Clause
3.19.5 where to impose such conditions would be reasonable

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	 	3.19.5  	The Conditions Precedent are the following:

	 	(a)  	(in the case of any assignment to the partners in a
partnership which has more than four partners) that all the partners who
do not comprise the assignee covenant jointly and severally by deed to
observe and perform the obligations as tenant under the Lease (together
with any other obligations which the Landlord lawfully imposes as a
condition of giving consent to the assignment) in substantially the form
set out in Clause 6 or in such other form as the Landlord may reasonably
require
	 
	 	(b)  	that the Tenant (and any former tenant as defined by
Section 16(6) of the 1995 Act) enters into an authorised guarantee
agreement guaranteeing the performance by the assignee of its obligations
as tenant under the Lease (together with any other obligations which the
Landlord lawfully imposes as a condition of giving consent to the
assignment) in substantially the form set out in Clause 6 or in such other
form as the Landlord may reasonably require provided that it complies with
the requirements set out in Section 16 of the 1995 Act
	 
	 	(c)  	that any bank guarantee rent deposit guarantee or
other security arrangements which the Landlord has lawfully required as a
condition of giving consent to the assignment are completed and documented
	 
	 	(d)  	(where the assignee is a company incorporated outside
the United Kingdom) the assignee covenants with the Landlord to maintain
its registration at Companies House in accordance with Schedule 21A or
Section 691 of the Companies Act 1985 (and in addition to that covenant)
irrevocably appoints an agent in the United Kingdom to accept service on
its behalf of any notice or proceedings served or issued arising out of or
in connection with the provisions of this Lease and undertakes

21

 

	 	   	with the Landlord to appoint another agent in its place if for any
reason the agent previously appointed ceases to be able or willing to
act or is no longer in the United Kingdom
	 
	 	(e)  	any assignee covenants by deed (jointly and severally
if more than one) directly with the Landlord to observe and perform the
Tenant’s covenants and other provisions of this Lease

	 	3.19.6  	Subject to the foregoing provisions of this Clause 3.19 not to assign the Premises
(including any interest deriving out of this Lease however remote) without the
previous consent in writing of the Landlord such consent not to be unreasonably
withheld or delayed

	3.20  	Charging
	 
	   	Not to charge the Premises (including any interest in the Premises deriving out of this
Lease however remote) without the previous consent in writing of the Landlord (which will
not be unreasonably withheld or delayed)
	 
	3.21  	Notification of dealings

	 	3.21.1  	Within one month of any assignment charge or any other disposition or devolution
affecting the Premises to give written notice to the Landlord or its solicitors to
produce a certified copy of any relevant document for registration by the Landlord and
to pay a reasonable fee (being not more than Fifty Pounds plus VAT) for the
registration of each assignment charge or other instrument registered
	 
	 	3.21.2  	To supply to the Landlord or its surveyors within one month of any request full
details of all interests deriving out of the Term including in relation to each
interest all information of the type referred to in Section 40(1)(a) and (b) of the
1954 Act

	3.22  	Notice of Reletting and Sale

	 	3.22.1  	To permit the Landlord at any time during the last six months of the Term to enter
the Premises to fix and retain upon any suitable part of the Premises a notice for
reletting and during that period to permit

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	 	   	persons with the authority of the Landlord or its agents to view the Premises
at reasonable times on prior written notice
	 
	 	3.22.2  	To permit the Landlord at any time during the Term to eater the Premises to fix and
retain on any suitable part of the Premises a notice for sale of any interest superior
to the Lease and to permit at reasonable times and upon reasonable prior notice agents
or prospective purchasers of any interest superior to the Lease to view the Premises
provided they are authorised by the Landlord or its agents

	3.23  	Insurance

	 	3.23.1  	Not to do or omit anything which could cause any insurance relating to the Premises
the Building or any adjoining or neighbouring premises belonging to the Landlord to
become void or voidable or (unless the Tenant has previously notified the Landlord and
the Insurers and has agreed to pay the increased premium) anything which could
increase the rate of premium payable for such insurance and to repay to the Landlord
any increased or additional premium which may he required for effecting or keeping up
such insurance
	 
	 	3.23.2  	To give written notice to the Landlord immediately on becoming aware of any
circumstances or events which might affect any insurance relating to the Premises or
the Building or affect the decision of any insurer to grant or continue the insurance
which the Landlord covenants to effect
	 
	 	3.23.3  	If the Premises or any part are destroyed or damaged to give notice to the Landlord
as soon as such destruction or damage comes to the notice of the Tenant
	 
	 	3.23.4  	If the Premises the Building or any adjoining or neighbouring premises or any part
thereof respectively are destroyed or damaged by any of the risks against which the
Landlord has insured and the insurance money is wholly or partly irrecoverable by
reason solely or in part of any act neglect or default of the Tenant the Tenant will
pay to the

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	 	   	Landlord the whole or (as the case may require) a fair proportion of the cost
(including professional and other fees) of rebuilding and reinstatement

	3.24  	Fire Precautions

	 	3.24.1  	To comply with the requirements and recommendations of the fire authority the
insurers of the Premises and the proper requirements and recommendations of the
Landlord in relation to fire precautions affecting the Premises
	 
	 	3.24.2  	To keep the Premises supplied and equipped with such fire alarm smoke detection fire
fighting and extinguishing appliances and equipment as are required by any statute the
fire authority or the insurers of the Premises or as are reasonably required by the
Landlord and such appliances are to be open to inspection and maintained to the
reasonable satisfaction of the Landlord
	 
	 	3.24.3  	Not to obstruct the access to or means of working of any fire alarm smoke detection
fire fighting and extinguishing appliances and equipment or the means of escape from
the Premises in case of fire or other emergency

	3.25  	Not to cause nuisance
	 
	   	Not to do at the Premises or in any other part of the Building and/or the Estate anything
which may be or become a nuisance annoyance damage or disturbance to the Landlord its
tenants or the owners or occupiers of any adjoining or neighbouring premises
	 
	3.26  	Not to overload
	 
	   	Not to overload the structure of the Premises and in particular:

	 	3.26.1  	not to place any excessive load on the floors of the Premises and
	 
	 	3.26.2  	not to suspend any excessive weight from any of the floor beams joists or roof
members of the Premises

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	 	3.26.3  	not to bring in any safe or other heavy article without first obtaining the approval
of the Landlord which shall not be unreasonably withheld or delayed to its siting in
the Premises
	 
	 	3.26.4  	not to bring in or remove any furniture or bulky articles from the Premises between
the hours of nine o’clock in the morning and six o’clock in the afternoon except with
the prior written approval of the Landlord which shall not be unreasonably withheld or
delayed where no significant interference or disturbance is likely to be caused to the
occupiers of the Building

	3.27  	Not to obstruct or cause pollution

	 	3.27.1  	Not to obstruct the Common Parts of the Building including (without limitation) any
landing corridor staircase hall lavatory or water closet in the Building
	 
	 	3.27.2  	Not to discharge into the sewers drains or watercourses serving the Premises any
noxious or deleterious effluent or other substance which may block or damage them or
cause pollution

	3.28  	Not to overload services
	 
	   	In relation to the electrical gas heating or air handling systems in the Premises not to:

	 	3.28.1  	attach any appliances so as to overload the current or supply
	 
	 	3.28.2  	interfere with alter or add to such systems without the previous written consent of
the Landlord which consent shall not be unreasonably withheld or delayed
	 
	 	3.28.3  	employ any person or persons other than the engineers or other persons approved from
time to time by the Landlord acting reasonably to make any alterations or additions

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	3.29  	Cleaning
	 
	   	To employ in relation to the Premises only those office or window cleaners approved by the
Landlord such approval not to be unreasonably withheld or delayed
	 
	3.30  	Common Parts of the Building

	 	3.30.1  	Not to misuse overload damage or interfere with any lift in the Building and in
particular:

	 	(a)  	not to exceed either the permitted number of persons
or weightload
	 
	 	(b)  	not to use any lift for the carrying of goods other
than the lift specified for that purpose by the Landlord
	 
	 	(c)  	to comply with the Landlord’s reasonable and proper
requirements in relation to use of the goods lift

	 	3.30.2  	At all times to take all necessary steps to prevent any damage to the Common Parts
of the Building including (but without limitation) when bringing in or removing goods
furniture or luggage from the Premises
	 
	 	3.30.3  	To use any lift entrance passage and staircase lavatories and water closets in the
Common Parts of the Building in a careful manner and to make good any damage caused by
improper or careless use
	 
	 	3.30.4  	To keep all entrances passages and staircases in the Common Parts of the Building
clear and free from obstruction at all times

	3.31  	Defective Premises
	 
	   	To give notice immediately to the Landlord of any defect in the Premises or the Building
which might give rise to a liability or duty on the Landlord under this Lease the Defective
Premises Act 1972 or otherwise and to display all notices which the Landlord may reasonably
require
	 
	3.32  	Regulations

	 	3.32.1  	To observe and perform to the rules and regulations set out in the Third Schedule as
well as any arising pursuant to Clause 3.32.2

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	 	3.32.2  	To observe and perform any regulations made by the Landlord from time to time for
the better management and control of the Building in the interests of good estate
management

	3.33  	Rateable Occupation
	 
	   	At all times during the last year of the Term to keep the whole of the Premises in rateable
occupation and to keep the Landlord indemnified against all general business and other
rates payable by the Landlord for any part of the period of six months immediately
following the end of the Term by reason of any breach of this Clause 3.33
	 
	3.34  	Indemnity
	 
	   	During the Term and any subsequent period during which the Tenant may remain in possession
of the Premises to be responsible for and to indemnify the Landlord against all losses
claims demands actions proceedings liabilities costs charges and expenses resulting
directly or indirectly from:

	 	3.34.1  	Any act neglect or default of the Tenant
	 
	 	3.34.2  	Any breach by the Tenant of the provisions of this Lease
	 
	 	3.34.3  	Any obligation to abate a nuisance or to remedy any other matter in connection with
the Premises in obedience to a notice served by a local or public authority

	3.35  	Covenants

	 	3.35.1  	To comply with all restrictive and other covenants and provisions affecting the
Premises and in particular (but without prejudice to the generality of the foregoing)
the matters contained in or referred to in the documents set out in Part 4 of the
First Schedule so far as the same are still subsisting and capable of taking effect
	 
	 	3.35.2  	To perform and observe all the covenants on the part of the lessee contained in the
Headlease set out in Part 5 of the First Schedule so far as they relate to the
Premises and are not expressly assumed by the Landlord in this Lease

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	3.36  	Landlord’s Covenants
	 
	   	The Tenant shall not unreasonably withhold or delay its consent to any application for the
release of a covenant made by the Landlord (or any former Landlord) under Section 6 or 7 of
the 1995 Act
	 
	4.  	LANDLORD’S COVENANTS
	 
	   	The Landlord covenants with the Tenant
	 
	4.1  	Quiet Enjoyment
	 
	   	(Subject to the Tenant paying the rents and other sums due and complying with its
obligations under this Lease) to permit the Tenant to hold the Premises peaceably for the
Term without any interruption by the Landlord or any person lawfully claiming under or in
trust for it
	 
	4.2  	Insurance
	 
	   	To insure (unless the insurance is vitiated by any act neglect or default of the Tenant):

	 	4.2.1  	the Building (including any authorised additions and alterations) and all
Landlord’s fixtures and fittings of an insurable nature including the glass (other
than those which the Tenant or any person deriving title under the Tenant is entitled
to remove) against fire storm tempest flood lightning explosion aircraft (or other
aerial device) articles dropped from them riot civil commotion malicious damage impact
bursting and overflowing of water tanks and apparatus and pipes and any additional
risks which the Landlord reasonably decides in a sum determined by the Landlord as
being the full reinstatement cost including architects surveyors and other fees the
cost of debris removal demolition shoring site clearance any works that may be
required by statute and incidental expenses and having regard to any possible delay in
the commencement and carrying out of such reinstatement

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	 	4.2.2  	(to the extent to which they are not covered by sub-clause 4.2.1) any lifts
boilers plant and equipment in the Building now or at any time against third party
liability and any other risks and perils which the Landlord decides from time to time
	 
	 	4.2.3  	the third party liability of the Landlord in connection with the Building
including the acts neglects or defaults of the Landlord its servants or agents insofar
as such liability is insurable at any time and is not covered by sub-clauses 4.2.1 or
4.2.2
	 
	 	4.2.4  	four years (or any longer period which the Landlord acting reasonably deems
appropriate) loss of Annual Rent
	 
	 	4.2.5  	the Landlord’s obligation to insure is subject

	 	(a)  	in relation to any particular risk to insurance for
that risk being ordinarily available with a reputable insurer for property
such as the Building
	 
	 	(b)  	to such excesses exclusions or limitation as the
Landlord’s insurers may require or the Landlord acting reasonably agrees

	4.3  	Reinstatement
	 
	   	If and whenever the Premises are damaged or destroyed by any of the risks against which the
Landlord is obliged to insure or has insured when lawful to do so to apply all insurance
moneys received (other than in respect of loss of Annual Rent Service Charge and third
party liability) towards reinstating so far as practicable the Premises (but subject to the
Tenant’s compliance with the provisions of Clause 3.25) PROVIDED that if any national local
public or other authority lawfully refuses permission or otherwise lawfully prevents
reinstatement the insurance monies (so far as unapplied) shall belong to the Landlord
absolutely and provided further that the Landlord is not obliged to rebuild or reinstate
the Premises to its previous specification and layout so long as it is of substantially the
same size and quality as the Premises so as to provide property reasonably equivalent to
the Premises and thereafter all the covenants and conditions of this Lease shall apply to
such property so far as applicable as they applied to the

29

 

	   	Premises (the parties making such variations to the terms of this Lease as the Landlord
shall reasonably require to give effect to this provision)
	 
	4.4  	Repair

	 	4.4.1  	To use its best endeavours to keep the structure and exterior of the
Building in tenantable repair
	 
	 	4.4.2  	during the service hours to provide heat and air conditioning by means of
the existing installations in the Premises
	 
	 	4.4.3  	during the service hours to provide a supply of hot and cold water to the
lavatories in the Building
	 
	 	4.4.4  	to procure the services set out in the Second Schedule to this Lease

	5.  	PROVISOS AND AGREEMENTS
	 
	   	The Parties agree that:-
	 
	5.1  	Re-entry
	 
	   	If and whenever during the Term:

	 	5.1.1  	the Annual Rent or any sums of money reserved or payable as rent are unpaid
in part or in whole for twenty-one days after becoming due (whether formally demanded
or not) or
	 
	 	5.1.2  	the Tenant at any time fails or neglects to perform any of its obligations
in this Lease or in any document supplemental to this Lease or
	 
	 	5.1.3  	the Tenant or any Guarantor (being a Company) has a receiver manager
administrative receiver or provisional liquidator appointed has a petition presented
for its winding up by the Court or resolves to go into liquidation (except a voluntary
liquidation of a solvent company for the purposes of reconstruction) or has a petition
presented for an Administration Order or is struck off or dissolved or otherwise
ceases to maintain its corporate existence or

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	 	5.1.4  	the Tenant or any Guarantor (being an individual or individuals) becomes
bankrupt or
	 
	 	5.1.5  	the Tenant makes or proposes an arrangement or composition with its
creditors or suffers any distress or execution to be levied on its goods

	   	the Landlord may enter the Premises (or any part of it) at any time thereafter even if a
previous right of re-entry has been waived and upon that entry the Term will end (but
without prejudice to any right of action which has accrued to the Landlord for breach of
any of the provisions of the Lease including the breach under which the re-entry is made)
	 
	5.2  	Suspension of Rent
	 
	   	If the Premises or any part are damaged or destroyed by any of the risks insured against by
the Landlord so as to be unfit for occupation or use and the insurance is not vitiated or
payment of the insurance moneys refused wholly or in part through any act neglect or
default of the Tenant the Annual Rent or a fair proportion according to the nature and
extent of the damage sustained will cease to payable for a period of four years from the
date of damage or destruction (or such longer period for which the Landlord has effected
loss of rent insurance) or until the Premises are again fit for occupation or use by the
Tenant whichever is the shorter period
	 
	5.3  	Landlord’s Liability

	 	5.3.1  	The Landlord shall not be responsible over and above its liability under the
Occupiers Liability Acts 1957 and 1984 to the Tenant any undertenant or any person in
the Premises with its or their consent (express or implied) for any accident happening
or injury suffered or damage to or loss of any chattel or property sustained there
	 
	 	5.3.2  	Notwithstanding anything in this Lease the Landlord will not be liable to
the Tenant nor any person or persons in the Premises in respect of any interruption or
failure of any of the services provided by the Landlord or supplies of any public
utility caused by the need to carry

31

 

	 	  	out repairs or alterations or circumstances beyond the Landlord’s its employees
or agents control except in so far as the same may be covered by the insurance
effected by the Landlord in accordance with clause 4.2 hereof

	5.4  	Adjoining Premises

	 	5.4.1  	Each of the Tenant’s obligations under this Lease will remain in full force
(both at law and in equity) even if the Landlord has waived or released (temporarily
or permanently revocably or irrevocably or in any other way) a similar obligation or
obligations affecting other parts of the Building and/or adjoining or neighbouring
premises belonging to the Landlord
	 
	 	5.4.2  	Nothing in this Lease confers on the Tenant benefit of or the right to
enforce any covenant or agreement contained in any lease or other instrument relating
to any other premises belonging to the Landlord or limits or affects the right of the
Landlord to deal with those premises now or at any time in any manner which the
Landlord thinks fit
	 
	 	5.4.3  	The Landlord or the owners of any adjoining or neighbouring premises may
deal with the Building or any of such premises as it or they think fit and may at any
time carry out any works (whether of construction demolition repair or otherwise) on
the remainder of the Building or those adjoining or neighbouring premises whether or
not the light or air which may now or at any time during the Term be enjoyed by the
Premises is affected or diminished
	 
	 	5.4.4  	The operation of Section 62 of the Law of Property Act 1925 shall be
excluded from this Lease and the Tenant will not during the Term acquire or become
entitled to any easement or right over any adjoining or neighbouring premises
including the Building and any easement exercised over any adjoining or neighbouring
premises (except those expressly set out in the First Schedule) will he regarded as
being by virtue of a determinable licence from the Landlord

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	5.5  	Disputes
	 
	   	Any dispute between the Tenant or any occupier of the Premises and the occupiers of
adjoining or neighbouring premises belonging to the Landlord (whether or not part of the
Building) concerning any right or privilege in connection with the Premises or those
adjoining or neighbouring premises or concerning any boundary structure or facility used in
common shall be decided by the Landlord whose decision shall be binding on the Tenant
	 
	5.6  	l995 Act

	 	5.6.1  	The provisions of this Lease are to be construed so as not to impose upon
the Landlord the Tenant or any Guarantor any liability or restriction which is more
onerous than that permitted by the 1995 Act and if any provision is held to be void or
unenforceable in whole or in part that provision to that extent is to be deemed not to
form part of this Lease but the validity and enforceability of the remainder that
provision or of the Lease is not to be affected
	 
	 	5.6.2  	For the purposes of the 1995 Act all the provisions of the Lease are to be
construed independently so that if any individual provision is void or unenforceable
it does not render void or unenforceable any of the other provisions of the Lease

	5.7  	Supplemental Agreements

	 	5.7.1  	Where under the provisions of this Lease the Landlord gives consent or
licence or enters into any collateral or supplemental agreement with the Tenant (“a
Supplemental Agreement”) the parties acknowledge that in so far as the Supplemental
Agreement does not constitute a relevant variation for the purposes of Section 18 of
the 1995 Act the Tenant must procure that any party who is a guarantor of the Tenant’s
obligations under the Lease and is a Connected Party (as defined in subclause 5.7.2)
joins in the Supplemental Agreement and that where the Supplemental Agreement is a
relevant variation for the purposes of

33

 

	 	   	Section 18 the Landlord may require that party to enter into the Supplemental
Agreement as a condition of agreeing to it
	 
	 	5.7.2  	In Subclause 5.7.1 above a Connected Party is a party which (in the case of
a Tenant which is a company) is a director shareholder or fellow Group Company of the
Tenant or (in the case of Tenant which comprises individuals carrying on business in
partnership) a partner in the Tenant

	5.8  	Jurisdiction and proceedings

	 	5.8.1  	This Lease is governed by and is to be construed in all respects in
accordance with the laws of England and Wales
	 
	 	5.8.2  	Each of the parties submits to the non-exclusive jurisdiction of the Courts
of England and Wales
	 
	 	5.8.3  	The parties agree that any proceedings relating to the Lease are to be
brought in the Courts of England and Wales and that any order of the Courts of England
and Wales arising out of such proceedings is to be recognised and may be enforced in
any court of foreign jurisdiction in the country or state in which any of the parties
may be domiciled or resident
	 
	 	5.8.4  	The Tenant and any guarantor of the Tenant waive any claim to immunity from
proceedings or enforcement against any of its or their assets wherever they may be
situated
	 
	 	5.8.5  	For the purposes of the Contracts (Rights of Third Parties) Act 1999 the
parties hereto hereby agree that they do not intend any terms of this Lease to be
enforceable by any third party who but for that Act would not have been entitled to
enforce such terms

	5.9  	Notices

	 	5.9.1  	Any notice under this Lease must be in writing
	 
	 	5.9.2  	Any notice to the Tenant or Guarantor (if a corporation) may be served by
leaving it addressed to the Tenant on the Premises or sending it by

34

 

	 	   	registered or recorded delivery post to or leaving it at its registered or
principal office in the United Kingdom
	 
	 	5.9.3  	Any notice to the Tenant or Guarantor (if an individual or individuals) may
be served by leaving it addressed to the Tenant on the Premises or by sending it by
registered or recorded delivery post to or leaving it addressed to the Tenant at his
or their last known address in the United Kingdom
	 
	 	5.9.4  	Any notice to the Landlord (if a corporation) may be served by sending it by
registered or recorded delivery to its registered or principal office in the United
Kingdom
	 
	 	5.9.5  	Any notice sent by registered or recorded delivery post is deemed to have
been duly served on the third day after the day of posting whenever and whether or not
it was received
	 
	 	5.9.6  	In proving service it will be sufficient to prove that the envelope
containing the notice was duly addressed in accordance with this Clause 5.9 and left
at or posted to the place to which it was so addressed
	 
	 	5.9.7  	If the party to which the notice is addressed is more than one person notice
given to any one person is notice to all

	5.10  	Representations
	 
	   	The Tenant acknowledges that it has not entered into this Lease in reliance wholly or
partly on any representation or warranty made by or on behalf of the Landlord and the
Landlord gives no title guarantee
	 
	5.11  	Interpretation
	 
	   	In this Lease where the context allows:

	 	5.11.1  	“the Landlord” includes the person or persons for the time being entitled to the
reversion immediately expectant upon the determination of the Term

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	 	5.11.2  	“the Tenant” includes the person or persons in whom the Term is from time to time
vested whether by assignment devolution in law or otherwise
	 
	 	5.11.3  	where there are two or more persons included in the expression “the Landlord” “the
Tenant” or “the Guarantor” for the time being such terms include the plural number and
(a) obligations expressed or implied to be made by or with such party are deemed to be
made by or with such persons jointly and severally (b) references to such party are to
all such persons collectively and to each such person severally
	 
	 	5.11.4  	words importing one gender include all other genders and words importing the
singular include the plural and vice versa
	 
	 	5.11.5  	the expression “the Term” means the term granted by this Lease
	 
	 	5.11.6  	references to the last year of the Term includes the last year of the Term if it
determines otherwise than by effluxion of time and to the end of the Term include any
sooner determination of the Term
	 
	 	5.11.7  	references to any right of the Landlord to have access to the Premises are to be
construed as extending to all persons authorised by the Landlord (including agents
professional advisers contractors workmen any superior landlord or management company
and others)
	 
	 	5.11.8  	any covenant by the Tenant not to do an act or thing includes an obligation not to
permit or suffer such act or thing to be done and to use its best endeavours to
prevent such act or thing being done by a third party
	 
	 	5.11.9  	references to the act neglect or default of the Tenant include the act neglect or
default of any undertenant or occupier of the Premises or any person in the Premises
or the Building with its or their consent (express or implied)
	 
	 	5.11.10  	references to this Lease include any document supplemental or collateral to it or
entered into pursuant to its terms

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	 	5.11.11  	any reference to a specific statute includes any statutory extension amendment
modification consolidation or re-enactment of that statute and any statutory
instruments regulations rules orders or directions made thereunder and any general
reference to statute or statutes includes any statutory instruments regulations rules
orders or directions made thereunder and any directives or other legislation of the
European Community that is directly applicable to the United Kingdom
	 
	 	5.11.12  	the table of contents and clause headings do not form part of this Lease and are
not to be taken into account in its construction or interpretation

	5.12  	Determination
	 
	   	The Tenant may determine the Term at any time by giving to the Landlord not less than six
months notice in writing to take effect at any time and the Tenant is to yield up the
Premises with vacant possession at the date of expiry of the notice but without prejudice
to any rights of action which either party has for breach of any of the provisions of this
Lease
	 
	5.13  	Exclusion of the 1954 Act
	 
	   	Having been authorised to do so by an Order of The Mayor’s & City of London County Court
made on 11 December 2002 under the provisions of Section 38(4) of the 1954 Act the parties
agree that the provisions of Sections 24 to 28 (inclusive) of the 1954 Act are excluded in
relation to the tenancy created by this Lease
	 
	5.14  	Exclusion of Rights to Compensation
	 
	   	Except where any statutory provision prohibits the Tenant’s rights to compensation being
reduced or excluded by agreement the Tenant shall not be entitled to claim from the
Landlord on quitting the Premises any compensation under the 1954 Act

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	6.  	GUARANTOR’S COVENANT
	 
	   	The Guarantor at the request of the Tenant and in consideration of covenants with the
Landlord as primary obligor that:
	 
	6.1  	Guarantee

	 	6.1.1  	The Tenant will at all times during the Term (and during any period
following the end of the Term when the Tenant is in occupation or possession of the
Premises) pay the Annual Rent and other sums payable under the Lease and will duly
perform all its obligations in this Lease whether after or before any disclaimer by a
liquidator or trustee in bankruptcy
	 
	 	6.1.2  	The Guarantor will at all times on demand pay and make good to the Landlord
on demand all losses claims demands actions proceedings liabilities costs charges and
expenses suffered by the Landlord by the non-payment of the Annual Rent or other sums
or any part or by any breach of any of the provisions of the Lease by the Tenant

	6.2  	Disclaimer and Forfeiture
	 
	   	In addition to the obligations in Clause 6.1 if this Lease is disclaimed or the Term ends
by forfeiture under Clause 5.1:

	 	6.2.1  	the Guarantor (or such one or more of the Guarantor as the Landlord
requires) will if so required by the Landlord within a period of three months
following the disclaimer or forfeiture take from the Landlord a lease of the Premises
(prepared and completed at the expense of the Guarantor) for a term commencing on and
taking effect from the date of disclaimer or forfeiture equal to the residue of the
Term remaining unexpired at the date of disclaimer or forfeiture containing the same
Landlord’s and Tenant’s covenants and the same provisos and conditions (including the
proviso for reentry) as those contained in this Lease (subject to clause 6.2.2)

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	 	6.2.2  	if the date of disclaimer or forfeiture is after a Rent Review Date in this
Lease but before the Open Market Rent has been agreed or determined under Clause 7 the
lease to be granted in accordance with clause 6.2.1 is to be for a term commencing on
that Rent Review Date with provision for review of rent in accordance with clause 7 on
that date so that the Annual Rent reserved by the lease is the higher of the Annual
Rent which was payable immediately before that Rent Review Date and the Open Market
Rent agreed or determined with provision for payment of any adjustment and interest
from the Rent Review Date in accordance with clause 7.11 credit being given for any
interim rent received by the Landlord under clause 7.11.1 of this Lease
	 
	 	6.2.3  	if the Landlord does not require the Guarantor to take a lease in accordance
with Sub-clause 6.2.1 the Guarantor will pay to the Landlord on demand an amount equal
to the Annual Rent and other sums of a recurring nature which would have been payable
under the Lease had it not been disclaimed or forfeit for the period commencing with
the date of disclaimer or forfeiture and ending on the date twelve months after the
date of disclaimer or forfeiture or (if earlier) the date on which the Premises are
re-let

	6.3  	Rent Review and Supplemental Agreements

	 	6.3.1  	The Landlord and the Tenant are at liberty to review the Annual Rent in
accordance with the provisions of this Lease without reference to the Guarantor and
the obligations of the Guarantor shall apply to the Annual Rent as reviewed from time
to time as much as to the Annual Rent payable at the commencement of the Term
	 
	 	6.3.2  	Without prejudice to Sub-clause 6.3.1 the Guarantor will if so requested by
the Landlord sign any memorandum recording the amount of Annual Rent agreed or
determined which is prepared following any review of rent under this Lease

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	 	6.3.3  	The Guarantor acknowledges that in the case of any Supplemental Agreement
entered into between the Landlord and the Tenant (whether or not this constitutes a
relevant variation for the purposes of Section 18 of the 1995 Act) where the Guarantor
is a Connected Party the Landlord may require the Guarantor to be joined as party and
the Guarantor agrees to enter into that documentation recording those arrangements in
such form as the Landlord may properly require

	6.4  	No release of liability
	 
	   	The obligations of the Guarantor will continue to apply and will not be affected or
released in whole or in part even if:

	 	6.4.1  	the Landlord grants any time or indulgence to the Tenant or fails to enforce
payment of the Annual Rent or other sums due under this Lease or to enforce
performance of the provisions of the Lease
	 
	 	6.4.2  	any of the terms of this Lease or the rights of the Landlord against the
Tenant are varied waived released or modified without the consent of the Guarantor
	 
	 	6.4.3  	the liability of the Tenant or any other guarantor or other person is
compounded discharged released waived or modified
	 
	 	6.4.4  	the Tenant (if an individual) dies or (if a company) is dissolved
	 
	 	6.4.5  	the Landlord refuses to accept rent from the Tenant following a breach of
covenant by the Tenant
	 
	 	6.4.6  	part of the Premises is surrendered except that the Guarantor will have no
liability in relation to the surrendered part (except in so far as the Tenant has such
liability) for any period following the date of surrender

	6.5  	Landlord’s prior claim
	 
	   	The Guarantor acknowledges that:

	 	6.5.1  	it waives any right it may have of first requiring the Landlord to proceed
against or claim payment from the Tenant or any other person

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	 	   	and subordinates any claim which it may have against the Tenant (whether now or
in the future and whether in relation to payments made under this Clause 6 or
otherwise) to any claims by the Landlord under this Lease
	 
	 	6.5.2  	it is not entitled to participate in any security held by the Landlord
relating to the Tenant’s obligations to the Landlord under this Lease or to stand in
the place of the Landlord in relation to any such security until all the obligations
of the Tenant or the Guarantor to the Landlord under this Lease have been performed or
discharged
	 
	 	6.5.3  	its obligations to the Landlord as primary obligor are not affected by any
legal limitation immunity disability incapacity or other circumstances relating to the
Tenant (whether or not known to the Landlord) and this guarantee is not discharged nor
the Guarantor’s liability affected by the fact that any dealings with the Landlord by
the Tenant may be outside or in excess of the powers of the Tenant

	7.  	RENT REVIEW
	 
	7.1  	The Annual Rent will be increased in accordance with this Clause 7
	 
	7.2  	The expression “rent review date” means 29 September 2006
	 
	7.3  	With effect from the rent review date the Annual Rent will be the greater of:

	 	7.3.1  	the Annual Rent payable immediately prior to that rent review date (or if
payment has been suspended the Annual Rent which would have been payable had there
been no suspension) and
	 
	 	7.3.2  	the Open Market Rent (as defined in sub-clause 7.4) agreed or determined
under the remaining provisions of this Clause 7

	7.4  	For the purposes of this Clause 7 the expression “the Open Market Rent” means the yearly rent
at which the Premises might reasonably be expected to be let at the rent review date on the
open market by a willing landlord to a willing tenant being the rent payable following the
expiry of a rent free period of such length as would be negotiated in the open market

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	 	7.4.1  	Upon the assumptions (if not the fact) that:

	 	(a)  	the Premises are vacant and have been fully fitted
out and equipped to the requirements of a willing tenant and are available
for immediate occupation and use and
	 
	 	(b)  	the Premises are to let (as a whole (or at the option
of the Landlord in parts)) at a rack rent (without premium or other
capital payment payable by the Tenant) for a term of 7 1/2 years from the
rent review date upon the terms of this Lease other than the amount of the
Annual Rent (but including this Clause 7) and
	 
	 	(c)  	the Premises may be used for any of the purposes
specified in Class B1 of the Town and Country Planning (Use Classes) Order
1987 as at the date of this Lease
	 
	 	(d)  	the Tenant has fully observed and performed the
Tenant’s obligations under this Lease and
	 
	 	(e)  	if the Premises or the Building have been destroyed
or damaged they have been fully restored and
	 
	 	(f)  	no work has been carried out to the Premises which
has or will diminish the rental value
	 
	 	(g)  	the Tenant is and tenants in the market generally are
registered for VAT and will be able to set off in full by way of input tax
any VAT payable on any payment of rent against the output tax payable by
him or them and
	 
	 	(h)  	the Tenant has had the benefit of any rent free
period capital payment or other inducement which would in the open market
be granted to a tenant

	 	7.4.2  	But disregarding

	 	(a)  	any effect on rent of the fact that the Tenant or any
undertenant or their predecessors in title may have been in occupation of
the Premises and

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	 	(b)  	any goodwill attached to the Premises by reason of
any trade or business carried on there by the Tenant or any undertenant or
their predecessors in title in their businesses and
	 
	 	(c)  	any effect on rent of any improvements to the
Premises carried out by the Tenant during the Term other than in pursuance
of an obligation to the Landlord to the extent only that such improvements
have been carried out without cost to the Landlord or its predecessors in
title but in making this disregard no allowance will be made for loss of
use during any hypothetical period while the improvement is carried out
	 
	 	(d)  	any effect on rent of any statute for the time being
in force which imposes a limitation in relation to the review of rent
and/or the collection of any increased rent (“rent restrictions”)
	 
	 	(e)  	any temporary adverse effect on rent of building or
associated work being carried out on adjoining or neighbouring premises
whether or not part of the Building
	 
	 	(f)  	the amount of loss of rent cover effected by the
Landlord under Clause 4.2

	7.5  	The Landlord and the Tenant may agree the amount of the Open Market Rent at any time but if
it has not been agreed by the rent review date the Landlord or the Tenant may at any time
thereafter require the Open Market Rent to be determined by an independent Chartered Surveyor
experienced in the letting and valuation of office premises (“the Surveyor”)
	 
	7.6  	The Surveyor may be appointed by agreement between the Landlord and the Tenant but in default
of such agreement within a period of one month is to be appointed on the application of either
party (who must notify the other party of that application) by the President or other chief
officer or acting chief officer for the time being of the Royal Institution of Chartered
Surveyors (“the President”) BUT if for any reason the President is unable or unwilling to make
that

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	   	appointment then by a senior officer of that institution or another professional body of
surveyors which the Landlord designates and any reference to the President includes a
reference to such chief officer or acting chief officer or other officer
	 
	7.7  	Notice of the Surveyor’s appointment is to be given by the Surveyor to the Landlord and
Tenant
	 
	7.8  	The Surveyor agreed or appointed is to act as an arbitrator under the provisions of the
Arbitration Act 1996 and the parties agree that:-

	 	7.8.1  	the Surveyor may not himself take the initiative in ascertaining the facts
and the law
	 
	 	7.8.2  	the Surveyor has the power given by section 39 to make orders on a
provisional basis
	 
	 	7.8.3  	the award is to be delivered to both parties and the date on which any award
is made for the purposes of section 54 is the date of delivery to the last of the
parties if this is later than the date upon which the award is signed by the Surveyor
	 
	 	7.8.4  	the Surveyor may not direct that the recoverable costs of the arbitration or
any part of the arbitral proceedings are limited to a specified amount
	 
	 	7.8.5  	any payment by one party of the fees of the Surveyor so as to secure
delivery of any award is without prejudice to Clause 7.10 and the party making payment
is entitled to recovery from the other of any amount paid by it for which the other
party is liable in accordance with Clause 7.10

	7.9  	If the Surveyor is removed by the Court relinquishes his appointment or dies or if it becomes
apparent that for any reason he will be unable to complete his duties the Landlord or the
Tenant may apply to the President in accordance with Clause 7.6 for a substitute to be
appointed in his place which procedure may be repeated as many times as necessary

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	7.10  	The fees of the Surveyor shall be payable by the Landlord and the Tenant in such proportions
as the Surveyor determines
	 
	7.11  	If the amount of the Annual Rent has not been agreed or determined by the rent review date:-

	 	7.11.1  	the Tenant must pay to the Landlord on account an interim rent at a rate equal to
the Annual Rent payable immediately preceding the rent review date and
	 
	 	7.11.2  	when the amount of the Annual Rent has been agreed or determined the Tenant must
make any necessary adjustment by paying to the Landlord within 14 days of agreement or
determination (as the case may be) an amount equal to the aggregate of the sums by
which each quarterly instalment of the Annual Rent would have exceeded each instalment
of interim rent had the Annual Rent been agreed or determined by the rent review date
together with interest at the base rate for the time being of National Westminster
Bank Plc (or the base rate for the time being of such other London Clearing Bank as
the Landlord designates for the purpose) or if there is no such base rate then such
other comparable rate of interest specified by the Landlord from time to time

	7.12  	If rent restrictions prevent or prohibit the Landlord (whether in whole or in part) from
exercising its rights under this Clause and/or obtaining an increase in the rent on the
relevant rent review date (increase in this context meaning such increase as would be
obtainable disregarding the rent restrictions) the date at which the rent review would
otherwise have taken effect shall be extended to permit and require the rent review to take
place on the first day upon which this right may be exercised and/or increase obtained in
whole or in part and when in part on so many occasions as is necessary to obtain the whole
increase notwithstanding that the rent may have been increased in part on or since the last
rent review date PROVIDED ALWAYS that the provisions of this Clause 7.12

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	   	shall not prejudice the right of the Landlord to review the Annual Rent on the relevant
rent review date
	 
	7.13  	A Memorandum of the amount of the Annual Rent as and when agreed or determined from time to
time shall be signed by or on behalf of the Landlord and the Tenant and attached to the Lease
and Counterpart
	 
	7.14  	Time is not of the essence with regard to any of the periods of time referred to in this
Clause 7
	 
	8.  	It is hereby certified that there is no Agreement for Lease to which this Lease gives effect

THIS LEASE has been executed as a Deed and delivered on the day on which it has been dated

THE FIRST SCHEDULE

PART 1

The Premises

	1.  	The Premises include:-
	 
	1.1  	The internal plaster tile and other surface finishes and internal plaster work of (i) the
walls in or bounding the Premises and (ii) all columns
	 
	1.2  	the glass and frames of all doors windows and roof lights
	 
	1.3  	the internal non structural walls and partitions lying within the Premises
	 
	1.4  	the ceilings plastered coverings or other surface finishes of the Premises up to the
underside of the joists or other structures to which the ceilings are fixed including for the
avoidance of doubt the suspended ceilings which shall comprise the ceiling tiles and the
complete suspension system
	 
	1.5  	the screeding above the concrete structure of the floors and the trunking set into the
screeding and the steel plates covering the trunking including all carpets and coverings of
the floor surfaces
	 
	1.6  	any steps lying within the boundaries of the Premises

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	1.7  	all Conduits which serve the Premises exclusively

	 
	1.8  	any terraces and balustrades serving only the Premises
	 
	1.9  	all gas electrical mechanical and water and sanitary apparatus belonging exclusively to the
Premises and all other fixtures and fittings in the Premises (other than tenants fixtures and
fittings) not excluded by Paragraph 2
	 
	2.  	The Premises do not include:-
	 
	2.1  	any part of the Building (other than any matters expressly included by Paragraph 1) lying
above the underside of the joists floor slab or structures to which the ceilings are fixed or
below the upper surfaces of the joists floor slab or structures to which the floor screeding /
trunking is laid
	 
	2.2  	any of the main timbers and joists and other load bearing parts of the Building or any of the
external or structural walls or load bearing columns in the Building except those surface
finishes and coverings staircases windows and doors expressly included by Paragraph 1
	 
	2.3  	any Conduits in the Building which do not serve the Premises exclusively
	 
	2.4  	concrete floor slabs of any terraces
	 
	3.  	Any internal non structural walls separating the Premises from the remainder of the Building
are party walls severed vertically

PART 2

Rights granted to the Tenant

	1.  	The right of free passage and running of water soil gas electricity telecommunications and
other services from and to the Premises by and through the Conduits in or under or upon the
remainder of the Building or the Estate such right to be so far as necessary for the enjoyment
of the Premises and in common with the Landlord and all others so authorised by the Landlord
and all others entitled thereto and subject to the exceptions and reservations contained in
Part 3 of the First Schedule

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	2.  	The right in common with the Landlord and all others so authorised by the Landlord and with
other tenants of Letting Units to use:-

	 	(a)  	such of the Common Parts of the Building as are
necessary to obtain access to and egress from the Premises
	 
	 	(b)  	such of the male and female lavatories and water
closets of the Building as may from time to time be allocated by the
Landlord for the use of the Tenant (whether or not in common)
	 
	 	(c)  	for the purposes only of gaining access on foot to
and egress from the Building (and so far as the Landlord can grant the
same) the footpaths courtyards and emergency escapes within the Estate
	 
	 	(d)  	(in so far as the Landlord can grant the same) for
the purposes only of gaining access to and egress from the Building with
or without vehicles the estate roads within the Estate

PART 3

Rights Reserved to the Landlord

EXCEPTING AND RESERVING to the Landlord and the persons deriving title under it:-

	1.  	The free passage of water soil gas electricity telecommunications and other services from the
remainder of the Building and any adjoining or neighbouring premises through the Conduits
constructed for such purpose now or at any time running through or under the Premises
	 
	2.  	The right at all reasonable times to enter the Premises subject to giving reasonable previous
notice (except in emergency) for the purpose of:
	 
	2.1  	complying with statutory requirements inspecting carrying out repairs in or upon the Premises
or repairing or altering the remainder of the Building or any adjoining or neighbouring
premises

48

 

	2.2  	inspecting laying connecting cleansing emptying repairing renewing altering or improving any
Conduits in the Premises or the remainder of the Building and any adjoining or neighbouring
premises
	 
	2.3  	constructing any building or structure on any other part of the Building and/or any adjoining
or neighbouring premises
	 
	2.4  	performing the obligations of the Landlord in this Lease or the lease of any other part of
the Building
	 
	   	the Landlord or other persons entering exercising such rights in a reasonable manner and
making good all damage to the Premises
	 
	3.  	The right at any time to build on rebuild or alter any parts of the remainder of the Building
or any adjoining or neighbouring premises within the Estate according to such plans (whether
as to height extent or otherwise) and in such manner as the Landlord decides even though this
may interfere with the access of light or air to the Premises but not so that the Premises are
made incapable of beneficial use
	 
	4.  	The right to use the remainder of the Building or any adjoining or neighbouring premises
within the Estate for any purpose whatsoever and without imposing upon the Building or any
adjoining or neighbouring premises any restrictions or conditions similar to those imposed
upon the Tenant
	 
	5.  	The right to erect scaffolding for the purpose of repairing maintaining cleansing or altering
the Building or any adjoining or neighbouring premises even though this may temporarily
interfere with the access to or the use and enjoyment of the Premises
	 
	6.  	All rights of light air support protection and shelter and all other easements and rights now
or after the date of this Lease belonging to or enjoyed by any parts of the Building or any
adjoining or neighbouring premises (but without prejudice to those expressly granted to the
Tenant in Part 2 of this Schedule)

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PART 4

	   	The entries in the Property and Charges Register of Title Number EGL 318781

PART 5

	   	The Lease of the Building dated 7 December 1993 made between (1) St Katharine By The Tower
Limited (2) Clipper Investments Limited (3) Enfranchise 146 Limited

THE SECOND SCHEDULE

The Service Charge

PART 1

	1.  	Certificate of Service Charge
	 
	1.1  	The amount of the Service Charge must be ascertained and certified annually by a certificate
(“the Certificate”) signed by or on behalf of the Landlord or by its surveyors or accountants
as soon after the end of the financial year as may be practicable
	 
	1.2  	The expression “the financial year” means the period from 1st January to 31st December (both
days inclusive) or such other annual period as the Landlord in its discretion from time to
time determines as being that for which the accounts of the Landlord either generally or
relating to the Building are made up
	 
	1.3  	A copy of the Certificate for each such financial year must be supplied by the Landlord to
the Tenant
	 
	1.4  	The Certificate must contain a fair summary of the Building Expenses during the financial
year to which it relates and the Certificate (or a duly certified copy) will be conclusive
evidence of the matters which it purports to certify other than as regards manifest errors
	 
	1.5  	For the purpose of this Schedule the expression “the Building Expenses” means the total costs
fees expenses and outgoings properly incurred by the Landlord relating to the services
referred to in Part 2 of this Schedule (“the services”)

50

 

	   	together with any provision for anticipated expenditure for the future provision of any of
the items referred to in Part 2 which the Landlord in its discretion considers appropriate
	 
	1.6  	For the purpose of this Schedule the expression “the Site Service Charge” means the aggregate
of the costs fees expenses and outgoings properly incurred by the Landlord relating to the
services referred to in Part 3 of this Schedule together with any provision for anticipated
expenditure for the future provisions of any of the items referred to in Part 3 which the
Landlord in its discretion considers appropriate
	 
	2.  	Tenant’s share of Service Charge
	 
	2.1  	The amount of Service Charge payable by the Tenant will be a fair and proper proportion of
the Building Expenses having regard to:

	 	2.1.1  	The net internal floor area of the Premises in comparison with the net
internal floor area of the Building
	 
	 	2.1.2  	The number of Letting Units comprised in the Building
	 
	 	2.1.3  	The extent to which the Services referred to in Part 2 of this Schedule
(other than the Site Service Charge) are supplied to the various Letting Units in the
Building

	3.  	Advance Payment
	 
	3.1  	The Tenant must pay to the Landlord a reasonable sum to be notified by the Landlord on
account of the Service Charge for the period to 31st December next by quarterly instalments on
the Rent Payment Days the first payment being made on the date of this Lease
	 
	3.2  	Thereafter the Tenant must pay such sum (“the advance payment”) on account of the Service
Charge for each subsequent financial year as the Landlord acting reasonably from time to time
specifies at its discretion to be fair and reasonable

51

 

	3.3  	The advance payment must be paid to the Landlord in advance by equal quarterly instalments on
the Rent Payment Days
	 
	4.  	Balancing Payment
	 
	   	As soon as practicable after the end of each financial year the Landlord must give to the
Tenant a statement of the Service Charge payable by the Tenant for that year together with
a copy of the Certificate due credit being given in such statement for the advance payment
made by the Tenant and the Tenant must within 14 days pay to the Landlord the Service
Charge or any balance found payable or there shall be allowed by the Landlord to the Tenant
any amount which may have been overpaid by the Tenant by way of advance payment as the case
may require PROVIDED ALWAYS:-
	 
	4.1  	That the Service Charge is to be duly apportioned for the period from the Term Commencement
Date to the ensuing 31st December
	 
	4.2  	That any omission by the Landlord to include in the Building Expenses or the Certificate for
any financial year a sum expended or a liability incurred in that year shall not prevent the
Landlord from including such sum or the amount of such liability in the Building Expenses or
the Certificate in any subsequent financial year
	 
	4.3  	If the Landlord carries out major works of repair or maintenance or decoration or replaces
major items of plant or machinery it may:-

	 	4.3.1  	at its discretion apportion the amount of the relevant expenditure over more
than one service charge financial year and
	 
	 	4.3.2  	include in the Service Charge interest at a reasonable market rate on the
part of the expenditure to be recovered in later financial years (save where the
charges have been incurred by the Landlord’s failure to act properly and promptly in
connection with the collection of service charge from other tenants of the Building

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	4.4  	That the provisions of this Schedule will continue to apply notwithstanding the end of the
Term but only for the period expiring at the end of the Term

PART 2

The Building Expenses

	1.  	The maintenance repair renewal replacement rebuilding redecoration cleaning and (where
appropriate) lighting and heating of the Retained Property
	 
	2.  	The provision maintenance repair and replacement of all receptacles tools appliances
materials and other things which the Landlord reasonably considers necessary or desirable for
the general management security maintenance upkeep or cleanliness of the Retained Property
	 
	3.  	The cost of providing inspecting servicing maintaining repairing overhauling and replacing
all electrical and mechanical equipment and other apparatus plant and machinery in the
Retained Property
	 
	4.  	The provision maintenance repair and replacement of all planting landscaping furniture signs
notices fixtures fittings and furnishings in the Common Parts of the Building which the
Landlord in its discretion considers appropriate
	 
	5.  	The cost of supply of all electricity gas oil fuel or other power for all purposes in
connection with the Retained Property
	 
	6.  	The cost of complying with the obligations contained in Clause 4.4 of this Lease
	 
	7.  	All refuse disposal costs relating to the Building not the responsibility of an individual
Tenant
	 
	8.  	The cost of insuring the Building including:-
	 
	8.1  	insurance effected in accordance with Clause 4.2 of this Lease (where this is not recovered
directly from an individual tenant) together with any insurance effected against loss of
Service Charge
	 
	8.2  	insurance effected in relation to any fixtures fittings furnishings machinery or equipment in
the Retained Property

53

 

	8.3  	the cost of obtaining or carrying out valuations or revaluations of the Building for
insurance purposes
	 
	9.  	Any general or business rates or water rates taxes duties outgoings and impositions imposed
or payable on or relating to the Building which are not the liability of any individual tenant
	 
	10.  	The employment of a porter or other caretaking or security staff and other staff (whether or
not such staff are employed directly by the Landlord) for the Building including (but without
limitation):
	 
	10.1  	wages national insurance pension contributions compensation payments uniform working clothes
and expenses wholly and exclusively incurred in connection with such employment and
	 
	10.2  	all costs incurred in connection with the provision of accommodation including:

	 	10.2.1  	notional rent
	 
	 	10.2.2  	insurance general and business rates and water rates
	 
	 	10.2.3  	electricity heating lighting and telephone costs

	10.3  	the cost or notional rent applicable to any car parking spaces (whether inside or outside the
Building) provided for such staff
	 
	11.  	All costs relating to the safety and security of the Building (which the Landlord acting
reasonably considers necessary or desirable and are not the responsibility of an individual
tenant) together with the provision maintenance repair replacement and cleaning of any
equipment provided for that purpose (including without prejudice to the generality of the
foregoing):-
	 
	11.1  	any television cameras and monitors automatic door entry or other security systems
	 
	11.2  	any burglar alarm systems
	 
	11.3  	any fire escapes fire fighting equipment and alarm systems

54

 

	12.  	The amount which the Landlord shall properly be required to pay as a contribution towards the
expense of making repairing maintaining rebuilding and cleaning anything used by the Building
in common with other adjoining or neighbouring premises including Conduits roads ways
pavements walls fences and structures
	 
	13.  	Any expenses incurred by the Landlord in or in connection with complying with the provisions
of any statute in force or now or at any time during the Term affecting the Building
	 
	14.  	Any other costs and expenses properly and reasonably incurred by the Landlord and their
surveyors or managing agents in connection with the general supervision management provision
of other services and amenities and maintenance of the Building not otherwise specifically
mentioned in this part of this Schedule
	 
	15.  	A reasonable and proper proportion of the Site Service Charge
	 
	16.  	VAT chargeable on any of the Building Expenses to the extent that this is not otherwise
recoverable by the Landlord
	 
	17.  	The proper fees and expenses of the Landlord’s surveyors managing agents or other
professional advisors incurred in connection with the management of the Building and the
matters referred to in this Schedule not recoverable from any individual tenant together with
(where the Landlord does not retain managing agents for the Building) a sum equal to 10% of
the Building Expenses other than this paragraph 17

PART 3

The Site Service Charge

	1.  	The maintenance repair renewal replacement rebuilding redecoration cleaning and (where
appropriate) lighting and heating of the Estate
	 
	2.  	The provision maintenance repair and replacement of all receptacles tools appliances
materials and other things which the Landlord or any superior landlord

55

 

	   	reasonably considers necessary or desirable for the general management security maintenance
upkeep or cleanliness of the Estate
	 
	3.  	The cost of providing inspecting operating servicing maintaining repairing overhauling and
replacing all electrical and mechanical equipment and other apparatus in the Estate
	 
	4.  	The provision maintenance repair and replacement of all planting landscaping furniture signs
notices fixtures fittings and furnishings in the Estate which the Landlord in its discretion
considers appropriate
	 
	5.  	The cast of supply of all electricity gas oil fuel or other power for all purposes in
connection with the Estate
	 
	6.  	All refuse disposal costs relating to the Estate not the responsibility of an individual
tenant
	 
	7.  	The cost of insuring the Estate including:-
	 
	7.1  	insurance cover against the same risks as those referred to in Clause 4.2 of this Lease
(where this is not recovered directly from an individual tenant) together with any insurance
effected against loss of Service Charge
	 
	7.2  	insurance effected in relation to any fixtures fittings furnishings machinery or equipment in
the Estate
	 
	7.3  	the cost of obtaining or carrying out valuations or revaluations of the Estate for insurance
purposes
	 
	8.  	Any general or business rates or water rates taxes duties outgoings and impositions imposed
or payable on or relating to the Estate which are not the liability of any individual tenant
	 
	9.  	The employment of a porter or other caretaking or security staff a lockkeeper and other staff
(whether or not such staff are employed directly by the Landlord or any superior landlord) for
the Estate including (but without limitation):

56

 

	9.1  	wages national insurance pension contributions compensation payments uniform working clothes
and expenses wholly and exclusively incurred in connection with such employment and
	 
	9.2  	all costs incurred in connection with the provision of accommodation including:

	 	9.2.1  	notional rent
	 
	 	9.2.2  	insurance general and business rates and water rates
	 
	 	9.2.3  	electricity heating lighting and telephone costs

	9.3  	the cost or notional rent applicable to any car parking spaces (whether inside or outside the
Estate) provided for such staff
	 
	10.  	All costs relating to the safety and security of the Estate (which the Landlord or any
superior landlord acting reasonably considers necessary or desirable and are not the
responsibility of an individual tenant) together with the provision maintenance repair
replacement and cleaning of any equipment provided for that purpose (including without
prejudice to the generality of the foregoing):-
	 
	10.1  	any television cameras and monitors automatic door entry or other security systems
	 
	10.2  	any burglar alarm systems
	 
	10.3  	any fire escapes fire fighting equipment and alarm systems
	 
	11.  	The amount which any superior landlord or the Landlord shall properly be required to pay as a
contribution towards the expense of making repairing maintaining rebuilding and cleaning
anything used by the Estate in common with other adjoining or neighbouring premises including
Conduits roads ways pavements walls fences and structures
	 
	12.  	Any expenses incurred by any superior landlord or the Landlord in or in connection with
complying with the provisions of any statute in force or now or at any time during the Term
affecting the Estate

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	13.  	Any other costs and expenses properly and reasonably incurred by any superior landlord or the
Landlord and their surveyors or managing agents in connection with the general supervision
management and maintenance of the Estate not otherwise specifically mentioned in this part of
this Schedule
	 
	14.  	VAT chargeable on the Site Service Charge to the extent that this is not otherwise
recoverable by the Landlord
	 
	15.  	The proper fees and expenses of any superior landlord or the Landlord’s surveyors managing
agents or other professional advisors incurred in connection with the management of the Estate
and the matters referred to in this Schedule not recoverable from any individual tenant
together with (where the Landlord does not retain managing agents for the Estate) a sum equal
to 10% of the Site Service Charge other than this paragraph 15

THE THIRD SCHEDULE

Regulations

	1.  	Vehicular obstruction
	 
	   	Not wilfully to obstruct the movement of vehicles in the Estate
	 
	2.  	Parking
	 
	   	No vehicles to be parked in the Estate for longer than reasonably necessary for the
purposes of loading and unloading and in any event no vehicles to remain overnight
	 
	3.  	Cleaning
	 
	   	No mat brush or mop to be shaken or anything thrown outside the Premises
	 
	4.  	Windows
	 
	   	Not to open the windows at the Premises

58

 

	5.  	Blinds
	 
	   	There are to be no blinds or curtains put up in the windows of the Premises without the
previous written approval of the Landlord such approval not to be unreasonably withheld or
delayed
	 
	6.  	Security Services
	 
	   	To comply with all reasonable requirements of the Landlord’s security services
	 
	7.  	Office cleaning
	 
	   	Not to have office cleaners at the Premises except between the hours of midnight and 8 a.m.
on normal business days
	 
	8.  	Common Parts of the Building
	 
	   	Not to permit employees of the Tenant to loiter in the Common Parts of the Building or
outside the entrances of the Building for smoking breaks

	 	 	 	 	 
	EXECUTED as a Deed by INTER ONE
	 	 	 	 
	LIMITED by the affixing of its

	 	) 	 	 
	Common Seal in the presence of:-

	 	) 	 	 
	 
	 	 	 	 
	

	 	Director	 	 
	 
	

	 	Secretary	 	 
	 
	 	 	 	 
	EXECUTED as a Deed by INTER TWO

	 	) 	 	 
	LIMITED by the affixing of its

	 	) 	 	 
	Common Seal in the presence of:-

	 	) 	 	 
	 
	 	 	 	 
	

	 	Director	 	 
	 
	 	 	 	 
	

	 	Secretary	 	 

59

 

	 	 	 	 	 
	EXECUTED as a Deed by

	 	) 
	 	[SEAL]
	THE INTERNATIONAL PETROLEUM

	 	) 	 	 
	EXCHANGE OF LONDON LIMITED

	 	) 	 	 
	by the affixing of its Common

	 	) 	 	 
	Seal in the presence of:-
	 	 	 	 
	 
	 	 	 	 
	

	 	Director	 	 
	 
	 	 	 	 
	

	 	Secretary	 	 

60

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]