Document:

DATED

            	
              1 February

            	
              2007

            

    

     

    
      	 	
              (1)

            	
              PAUL
                ANDREW WILLIAMS AND CLARE

              MARIE
                WILLIAMS T/A TOWERS
                INVESTMENTS

            

    

     

    
      	 	
              (2)

            	
              ZOO
                DIGITAL PUBLISHING LIMITED

            

    

     

    
      

    

     

    LEASE

     

    relating
      to

    Ground
      Floor Offices Arundel Court Sheffield

     

    
      

    

    

    Princess
      House

    122
      Queen
      Street

    Sheffield
      S1 2DW

    DX
      10643
      Sheffield

    T:
      0114
      276 5555 F: 0114 276 3938

    (Ref:
      GAV/THR/W1101/0043)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CONTENTS

     

    
      	
              Description

            	
              Page
                Number

            
	 	 
	
              PRESCRIBED
                CLAUSES

            	
              2

            
	 	 	 	 
	
              1.

            	 	
              DEFINITIONS
                AND INTERPRETATION

            	
              5

            
	 	 	 	 
	
              2.

            	 	
              DEMISE
                AND RENT

            	
              11

            
	 	 	 	 
	
              3.

            	 	
              TENANTS
                COVENANTS

            	
              11

            
	 	 	 	 
	
              4.

            	 	
              LANDLORD’S
                COVENANTS

            	
              37

            
	 	 	 	 
	
              5.

            	 	
              RENT
                REVIEW

            	
              39

            
	 	 	 	 
	
              6.

            	 	
              PROVISIONS

            	
              45

            
	 	 	 	 
	
              7.

            	 	
              GUARANTEE

            	
              50

            
	 	 	 	 
	
              8.

            	 	
              GOVERNING
                LAW

            	
              57

            
	 	 	 	 
	
              9.

            	 	
              EXCLUSION
                OF THE 1954 ACT

            	
              57

            
	 	 	 	 
	
              10.

            	 	
              CONTRACTS
                (RIGHTS OF THIRD PARTIES) ACT 1999

            	
              58

            
	 	 	 	 
	
              11.

            	 	
              NEW
                OR OLD LEASE

            	
              58

            
	 	 	 
	 	
              SCHEDULE
                1

            	
              59

            
	 	 
	
              RIGHTS
                GRANTED

            	
              59

            
	 	 	 
	 	
              SCHEDULE
                2

            	
              61

            
	 	 
	
              EXCEPTIONS

            	
              61

            
	 	 	 
	 	
              SCHEDULE
                3

            	
              63

            
	 	 
	
              ENCUMBRANCES

            	
              63

            
	 	 	 
	 	
              SCHEDULE
                4

            	
              64

            
	 	 
	
              SERVICES

            	
              64

            
	 	 
	
              (PART
                I)

            	
              64

            
	 	 
	
              (PART
                II)

            	
              68

            
	 	 	 
	 	
              SCHEDULE
                5

            	
              73

            
	 	 
	
              AUTHORISED
                GUARANTEE AGREEMENT

            	
              73

            

    

     

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

    PRESCRIBED
      CLAUSES

     

    
      	LR1	
              Date
                of Lease

            

    

     

    1
      February 2007

     

    
      	LR2	
              Title
                Number(s)

            

    

    

      
        	 	
                LR2.1

              	
                Landlord’s
                  Title Number(s)

              
	 	 	
                SYK
                  452393

              
	 	 	 
	 	
                LR2.2

              	
                Other
                  Title Number(s)

              
	 	 	
                None

              

      

    

     

    
      	LR3	
              Parties
                to this Lease

            

    

     

    Landlord

     

    Paul
      Andrew Williams and Clare Marie Williams t/a Towers Investments of
      Valley

    House,
      1
      Overlees, Barlow, Derbyshire S18 7TP

     

    Tenant

     

    Zoo
      Digital Publishing Limited

     

    Company
      Number - 5701472

     

    Registered
      Office - 20 Furnival Street Sheffield S1 4QT

     

    Other
      Parties

     

    None

     

    
      	LR4	
              Property

            

    

     

    In
      the case of a conflict between this clause and the remainder of this
      Lease

     

    then
      for the purposes of registration this clause shall prevail

     

    See
      the definition of “Premises” set out in the Particulars of the
      Lease

     

    
      	LR5	
              Prescribed
                Statements

            

    

     

    None

     

    
      	LR6	
              Term
                for which the Property is
                leased

            

    

     

    The
      term
      as specified in this Lease is set out in the Particulars of the
      Lease

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    LR7      
      Premium

     

    None

     

    LR8      
      Prohibitions
      or Restrictions on Disposing of this Lease

     

    This
      Lease contains a provision that prohibits or restricts dispositions

     

    LR9      
      Rights
      of Acquisitions

     

    
      	 	
              LR9.1

            	
              Tenant’s
                contractual rights to renew this Lease to acquire the reversion or
                another
                lease of the Property or to acquire an interest in other
                land

            

    

     

    None

     

    
      	 	
              LR9.2

            	
              Tenant’s
                covenant to (or offer to) surrender this
                Lease

            

    

     

    None

     

    
      	 	
              LR9.3

            	
              Landlord’s
                contractual rights to acquire this
                Lease

            

    

     

    None

     

    
      	
              LR10

            	
              Restrictive
                Covenants Given in this Lease by the Landlord in Respect of Land
                Other
                than the Property

            

    

     

    None

     

    
      	
              LR11

            	
              Easements

            

    

     

    
      	 	
              LR11.1

            	
              Easements
                granted by this Lease for the benefit of the
                Property

            

    

     

    The
      easements as specified in Schedule 1

     

    
      	 	
              LR11.2

            	
              Easements
                granted or reserved by this Lease over the Property for the benefit
                of
                other Property

            

    

     

    The
      easements as specified in Schedule 2

     

    
      	
              LR12

            	
              Estate
                Rentcharge Burdening the
                Property

            

    

     

    None

     

    
      	
              LR13

            	
              Application
                for Standard Form of
                Restriction

            

    

     

    None

     

    LR14     Declaration
      of Trust Where There is More Than One Person Comprising the
      Tenant

     

    None

     

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    LEASE
      PARTICULARS

     

    
      	
              Date

            	
              1
                February 2007

            
	 	 
	
              Landlord

            	
              Landlord
                Paul Andrew Williams and Clare Marie Williams t/a Towers Investments
                of
                Valley House, 1 Overlees, Barlow, Derbyshire S18 7TP

            
	 	 
	
              Tenant

            	
              Zoo
                Digital Publishing Limited (company number 5701472) whose registered
                office is at 20 Furnival Street Sheffield S1 4QT

            
	 	 
	
              Premises

            	
              Ground
                floor offices in the Building at Arundel Court Arundel Street Sheffield
                which premises are shown edged red on the Plan together with the
                two car
                parking spaces edged red in the Car Park (“Car Parking
                Spaces”)

            
	 	 
	
              Term

            	
              Eight
                years from and including 1 February 2007 to and including the 31
                January
                2015

            
	 	 
	
              Rent

            	
              Thirty
                one thousand four hundred pounds (£31,400.00) per annum subject to review
                in accordance with Clause 5

            
	 	 
	
              Rent
                Commencement Date

            	
              Three
                months from the commencement of the Term or the date of occupation,
                whichever is the sooner

            
	 	 
	
              Review
                Dates

            	
              1
                February 2012 and 31 January 2015

            
	 	 
	
              Permitted
                Use

            	
              the
                use for any purpose within the definition contained in Class B1 of
                the
                Schedule of the Town and Country Planning (Use Classes) Order 1987
                and any
                ancillary purposes such as a staff
                canteen

            

    

     

    WITNESSES
      as follows:-

     

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    1.           
      DEFINITIONS
      AND INTERPRETATION

     

    
      	 	
              1.1

            	
              Unless
                the context otherwise requires the following expressions bear the
                meanings
                ascribed to them as follows:

            

    

     

    “Building”
means
      Block 2 Arundel Court Arundel Street Sheffield tinted pink on the plan
      attached

     

    “Car
      Park”
means
      that part of the basement level of the Building from time to time designated
      by
      the Landlord for car parking

     

    “CDM
      Regulations”
means
      the Construction (Design and Management) Regulations 1994

     

    “Conduits”
means
      and includes all supply pipes wires cables ducts sewers drains gutters
      watercourses meters and all other conducting media and storage tanks or systems
      used therewith

     

    “Encumbrances”
means
      the covenants rights exceptions reservations and other matters contained
      mentioned or referred to in Schedule 3

     

    “Environmental
      Protection Act”
means
      the Environmental Protection Act 1990 and any Act or Acts amending replacing
      or
      modifying such Act for the time being in force or of a similar nature and all
      orders and regulations thereunder for the time being in force

     

    “Exceptions”
means
      the exceptions and reservations set out in Schedule 2

     

    “Insured
      Risks”
the
      risks of fire terrorism storm tempest flood lightning explosion and in peacetime
      aircraft and articles dropped therefrom malicious damage impact overflowing
      of
      tanks bursting of pipes third party liability and the Landlord’s property owners
      liability and such other risks as the Landlord shall from time to time insure
      or
      the Tenant reasonably requires so far as it is practicable so to insure (subject
      in all cases to any excesses exclusions and limitations imposed by insurers
      or
      underwriters generally in the United Kingdom insurance market when underwriting
      similar risks) except always such risks in respect of which insurance is not
      generally available in the United Kingdom insurance market in respect of
      premises similar to and in locations similar to the Premises

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    “Main
      Building”
means
      Block 1 and Block 2 Arundel Court Arundel Street and Furnival Street edged
      green
      on the Plan

     

    “Particulars”
means
      the Lease Particulars set out in the beginning of this Lease

     

    “Plan”
means
      the plan or plans annexed hereto appropriately numbered

     

    “Prescribed
      Rate”
means
      the rate of interest which is from time to time Four per centum per annum above
      either:

     

    
      	 	
              (a)

            	
              the
                base lending rate of The Royal Bank of Scotland PLC in force;
                or

            

    

     

    
      	 	
              (b)

            	
              if
                at any time no such base lending rate exists such comparable rate
                as shall
                be substituted for it in England Provided that if there shall be
                no such
                substituted rate the said expression shall mean such rate of interest
                as
                shall be agreed between the Landlord and the Tenant as being reasonable
                in
                all the circumstances and failing such agreement such rate as shall
                be
                determined by a surveyor appointed on the application of the Landlord
                or
                the Tenant by the President (or some other officer if the President
                is
                unable to act) for the time being of the Royal Institution of Chartered
                Surveyors (or any successor to that Institution) who shall act as
                an
                arbitrator pursuant to the Arbitration Act for the time being in
                force

            

    

     

    “Premises”
means
      the property described in the Particulars and each and every part thereof
      together with the following parts:

     

    
      	 	
              (a)

            	
              all
                non-loadbearing walls situate wholly within the red edging on the
                Plan

            

    

     

    
      	 	
              (b)

            	
              one
                half (severed vertically) of all non-loadbearing walls separating
                the
                Premises from any other part of the
                Building

            

    

     

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              (c)

            	
              all
                plaster and other decorative finish applied to the inside surface
                of any
                wall bounding the Premises and not included in paragraphs (a) and
                (b)
                above or applied to any column or loadbearing wall wholly within
                the
                Premises

            

    

     

    
      	 	
              (d)

            	
              the
                whole of all internal doors and door
                frames

            

    

     

    
      	 	
              (e)

            	
              all
                ceilings bounding the Premises up to the level of (but excluding)
                the
                bottom of the joists, beams or slabs above
                them

            

    

     

    
      	 	
              (f)

            	
              all
                door finishes and floor screeds

            

    

     

    
      	 	
              (g)

            	
              all
                additions and improvements to the
                Premises

            

    

     

    
      	 	
              (h)

            	
              all
                the Landlord’s fixtures and fittings for the time being within the
                Premises

            

    

     

    but
      excluding any part of the structure or the exterior of the
      Building.

     

    “Rent”
means
      the sum referred to as the Rent in the Particulars

     

    “Review
      Period”
means
      the period between one Review Date and the ensuing Review Date or the expiry
      of
      the Term if there is no further ensuing Review Date

     

    “Rights”
means
      the rights set out in Schedule 1

     

    “Term”
means
      the contractual term hereby granted together with any period of extension or
      continuation thereof or of any holding over whether by statute agreement or
      at
      common law or otherwise

     

    “Subtenant”
means
      a
      person to whom the Tenant proposes to sublet the whole or a Permitted Part
      of
      the Premises.

     

    “Superior
      Lease”
means
      the lease dated 26 June 2002 and made between Sydney & Furnival Properties
      Limited (1) and Coleridge (Arundel Court 1) Limited & Coleridge (Arundel
      Court 2) Limited (2)

    

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    “Town
      and Country Planning Acts”
means
      the Town and Country Planning Act 1990 the Planning (Listed Buildings and
      Conservation Areas) Act 1990 the Planning (Hazardous Substances) Act 1990 the
      Planning (Consequential Provisions) Act 1990 and the Planning and Compensation
      Act 1991 and any Act or Acts for the time being in force amending or replacing
      the same and includes any order instrument regulation direction or plan made
      or
      issued thereunder or deriving validity therefrom and any future legislation
      or
      items such as aforesaid of a like nature or effect

     

    “VAT”
means
      value added tax or any equivalent tax which may at any time during the Term
      be
      imposed in substitution for it or in addition to it

     

    
      	 	
              1.2

            	
              Interpretation

            

    

     

    
      	
            	1.2.1	
              “Landlord”
                includes the estate owner for the time being of the reversion immediately
                expectant on the Term

            

    

    
       

      
        	
              	1.2.2	
                “Tenant”
                  includes the Tenant’s successors in title and
                  assignees

              

      

      
         

        
          	
                	1.2.3	
                  “Guarantor”
                    includes any person who may from time to time guarantee all or
                    any of the
                    Tenant’s obligations under this
                    Lease

                

           

          
            	
                  	1.2.4	
                    “this
                      Lease”
                      includes (except where the contrary is indicated) any document
                      supplemental or collateral to this document or entered into
                      in accordance
                      with this document

                  

             

            
              	
                    	1.2.5	
                      “Losses”
                        includes all liabilities incurred by the Landlord all damage
                        and loss
                        suffered by it and all damages awarded against it all claims
                        demands
                        actions and proceedings made or brought against it and all
                        costs
                        disbursements and expenses

                    

               

              
                	
                      	1.2.6	
                        where
                          there is more than one person for the time being included
                          in the
                          expression “Tenant”
                          or “Guarantor”
                          covenants and obligations at any time expressed to be made
                          or assumed by
                          the party shall be joint and several covenants and
                          obligations

                      

              

            

          

        

      

    

    

    
      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

     

    
      	
            	1.2.7	
              the
                covenants and obligations in this Lease shall be binding on and
                enforceable against personal representatives of any party to this
                Lease

            

    

     

    
      	
            	1.2.8	
              the
                headings and the index are for locating references in the text and
                shall
                not affect the construction of this
                Lease

            

    

     

    
      	
            	1.2.9	
              unless
                otherwise specified references to a particular statute or part of
                it
                (“statutory
                reference”)
                include anything (for example a notice direction order licence regulation
                byelaw rule and condition) deriving effect from any statute (“derivative
                legislation”)
                and referring to that statutory reference as it may have been extended
                modified amended or re-enacted by the date upon which its construction
                is
                relevant for the purposes of this Lease and not in the form that
                it was
                when originally enacted or as at the date of this
                Lease

            

    

     

    
      	
            	1.2.10	
              references
                generally to “statute”
                or “statutes”
                include derivative legislation and any regulation or other legislation
                of
                the European Union that is directly applicable in the United Kingdom
                and
                include existing statutes and those that come into effect during
                the
                Term

            

    

     

    
      	
            	1.2.11	
              references
                to “parties”
                or “party”
                mean the Landlord and the Tenant or either of them but in the absence
                of a
                specific provision to the contrary do not include the
                Guarantor

            

    

     

    
      	
            	1.2.12	
              references
                to any clause paragraph or schedule without further designation shall
                be
                construed as a reference to the clause paragraph or schedule of this
                Lease
                so numbered

            

    

     

    
      	
            	1.2.13	
              words
                importing one gender include all genders and words importing the
                singular
                include the plural and vice
                versa

            

    

     

    
      	
            	1.2.14	
              any
                covenant by the Tenant not to do any act or thing includes an obligation
                not to allow that act or thing to be
                done

            

    

     

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

     

    
      	
            	1.2.15	
              for
                the purposes of section 1 of the Perpetuities and Accumulations Act
                1964
                the perpetuity period applicable to this Lease is the shorter of
                the Term
                and 80 years from the commencement of the
                Term

            

    

    
       

      
        	
              	1.2.16	
                rights
                  granted by the Landlord are granted only to the extent that the
                  Landlord
                  is able to grant them and in common with the Landlord any superior
                  landlord and everyone authorised by them

              

         

        
          	
                	1.2.17	
                  rights
                    excepted reserved or granted to the Landlord are excepted reserved
                    and
                    granted to the Landlord any superior landlord and everyone authorised
                    by
                    them

                

           

          
            	
                  	1.2.18	
                    in
                      the following cases references to the Landlord include references
                      to any
                      superior landlord and any mortgagee of—the Landlord or any superior
                      landlord:-

                  

          

           

        

      

    

    
      	
            	
              1.2.18.1

            	
              where
                there is any obligation on the Tenant to obtain the Landlord’s consent or
                approval or any acknowledgement from the Landlord to carry out any
                act to
                the satisfaction of the Landlord or to give any form of notice to
                the
                Landlord however in each case the requirement is expressed but nothing
                in
                this Lease imposes any obligation on any superior landlord or any
                mortgagee not to unreasonably refuse any consent approval acknowledgement
                or expression of satisfaction

            

    

     

    
      	
            	1.2.18.2	
              where
                there is any obligation to pay any costs or fees to the Landlord
                or to
                reimburse the Landlord for any payment made or expense
                incurred

            

    

     

    
      	
            	1.2.18.3	
              where
                there is any indemnity in the Landlord’s
                favour

            

    

     

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    2.           DEMISE
      AND RENT

     

    In
      consideration of the rent and covenants on the part of the Tenant hereinafter
      reserved and contained the Landlord hereby
      demises
      unto the
      Tenant all
      that
      the
      Premises together
      with the
      Rights excepting
      and
      reserving unto the Landlord the Exceptions to hold
      the same
      unto the Tenant for the Term
      yielding and
      paying therefor
      during the Term first
      the Rent
      such rent to be paid in advance without any deductions by equal quarterly
      payments on the usual quarter days the first payment being a proportionate
      amount in respect of the period from and including the Commencement Date to
      the
      next succeeding quarter day to be made on the date hereof and secondly
      by way
      of additional yearly rent the amounts payable pursuant to the provisions of
      clause 3.2 of this Lease and thirdly
      any VAT
      which is or may be payable in respect of the rent first hereby reserved and
      fourthly
      any
      interest on the arrears of the rents hereby reserved and fifthly
      by way
      of additional rent the amounts payable pursuant to the provisions of clause
      3.3
      of this Lease

     

    3.           TENANTS
      COVENANTS

     

    The
      Tenant hereby
      covenants
      with the
      Landlord as follows:

     

    
      	 	
              3.1

            	
              Rent

            

    

     

    To
      pay
      the rents (including revised rents ascertained under the provisions of clause
      5
      hereof and rents in respect of the Insured Risks) hereby reserved and made
      payable at the time and in manner aforesaid without any deductions and not
      to
      exercise or seek to exercise any right or claim to legal or equitable
      setoff

     

    
      	 	
              3.2

            	
              Insurance

            

    

     

    To
      pay to
      the Landlord within 14 days of demand in each year during the Term:

     

    
      	
            	3.2.1	
              a
                sum equivalent to the amount from time to time properly assessed
                by the
                Landlord’s-insurers as being payable by the Landlord by way of premium for
                keeping the Premises insured in their full reinstatement value from
                time
                to time (together with VAT on building costs) against loss or damage
                by
                the Insured Risks and three years rent (and VAT thereon) and architects’
                surveyors’ engineers’ and other professional fees (and VAT thereon) and
                demolition and clearance expenses insured for the amount (reasonably
                estimated from time to time by the Landlord or its surveyors) necessary
                to
                cover the full costs (and VAT on such costs) of rebuilding or reinstating
                the Premises (including a due allowance for cost increases over the
                likely
                rebuilding period) against the Insured
                Risks;

            

    

     

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    
       

      
        	
              	3.2.2	
                the
                  amount from time to time properly assessed by the Landlord’s insurers by
                  way of premium as being payable by the Landlord for insuring the
                  loss of
                  rent of the Premises for three years (and VAT thereon) including
                  the
                  Landlord’s surveyor’s proper estimate of such rent where a part of the
                  period in respect of which loss of rent insurance has been effected
                  by the
                  Landlord is subsequent to a date or dates when the yearly rent
                  payable
                  hereunder falls to be reviewed pursuant to the provisions of clause
                  5
                  hereof but any agreement of or acquiescence by the Tenant in such
                  estimate
                  shall not be deemed to be an agreement of the revised yearly rent
                  for the
                  purposes of clause 5 hereof;

              

      

    

    
      
         

        
          	
                	3.2.3	
                  any
                    sum or sums by which the amount from time to time properly assessed
                    by the
                    Landlord’s insurers by way of premium as being insurance is increased
                    by
                    reason of the user of the Premises or by reason of any act default
                    or
                    omission on the part of the Tenant or any other occupant for
                    the time
                    being of the Premises;

                

        

      

    

    
      
         

        
          	
                	3.2.4	
                  any
                    sum or sums properly deducted by the Landlord’s insurers by way of excess
                    in respect of any claim; and

                

          
             

            
              	
                    	3.2.5	
                      an
                        amount equal to a proper proportion (to be conclusively determined
                        by the
                        Landlord) of the cost incurred by the Landlord of obtaining
                        from time to
                        time (but not more frequently than would be required by a
                        reasonably
                        prudent landlord) a professional valuation of the Building
                        for insurance
                        purposes.

                    

               

            

          

        

      

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    Provided
      that the
      Landlord shall be entitled to retain any agency or other commission paid or
      allowed to the Landlord on such insurance premiums for the Landlord’s own
      benefit free of any obligation to bring the same into account under this
      Lease

     

    
      	 	
              3.3

            	
              Service
                Charge

            

    

     

    To
      pay to
      the Landlord by way of further and additional yearly rent without any deduction
      firstly such proportion (to be exclusively determined by the Landlord’s surveyor
      acting reasonably) according to the proportion which the net internal area
      of
      the Premises shall from time to time bear to the net internal area of all
      lettable premises in the Building (as exclusively measured by the Landlord’s
      surveyor whose measurement shall be binding upon the Tenant in the absence
      of
      manifest error and in accordance with the Code of Measuring Practice issued
      by
      the Royal Institution of Chartered Surveyors and the Incorporated Society of
      Valuers and Auctioneers or any revision thereof for the time being issued)
      of
      the reasonable costs, expenses and outgoings properly incurred by the Landlord
      in connection with the repair maintenance and renewal of the lift and ancillary
      plant and machinery the lift lobbies staircases and passages within the Building
      and the provision of the services within the Building and the other heads of
      expenditure as the same are set out or referred to in Part I of Schedule 4
      hereto and in accordance with good estate management and secondly such
      proportion (to be properly determined by the Landlord’s surveyor) according to
      the proportion which the net internal area of the Premises shall from time
      to
      time bear to the net internal area of the Main Building (as measured by the
      Landlord’s surveyor) of the reasonable costs expenses and outgoings properly
      incurred by the Landlord in connection with the repair maintenance renewal
      and
      insurance of the Main Building and the curtilage thereof and the provision
      of
      the services therein and the other heads of expenditure set out in Part II
      of
      Schedule 4 hereto and in accordance with good estate management

    

    
      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    

    

    The
      amounts of the Service Charge shall be ascertained and certified annually by
      a
      certificate (“the Certificate”) signed by the Landlord’s auditors accountants or
      managing agents (at the discretion of the Landlord acting reasonably) as soon
      after the Landlord’s financial year as may be practicable and produced to the
      Tenant and shall relate to such year in manner hereinafter
      mentioned

    
      
         

        
          	
                	3.3.1	
                  The
                    expression “the Landlord’s financial year” shall mean the period from the
                    1 s’ day of January in every year to the 31st
                    day of December in the same year or such other annual period
                    as the
                    Landlord may in its absolute discretion from time to time determine
                    as
                    being that in which the accounts of the Landlord either generally
                    or
                    relating to the Premises be made
                    up

                

          
             

            
              	
                    	3.3.2	
                      A
                        copy of the Certificate for each such financial year shall
                        be supplied by
                        the Landlord to the Tenant on written request and without
                        charge to the
                        Tenant

                    

               

              
                	
                      	3.3.3	
                        The
                          Certificate shall contain a fair summary of the Landlord’s expenses and
                          outgoings incurred by the Landlord during the financial
                          year to which it
                          relates and the Certificate (or a copy thereof duly certified
                          by the
                          person by whom the same was given) shall be conclusive
                          evidence (except
                          for any manifest error contained in it) for the purposes
                          hereof of the
                          matters which it purports to certify

                      

                 

                
                  	
                        	3.3.4	
                          The
                            expression “The expenses and outgoings incurred by the Landlord” as
                            hereinbefore used shall be deemed to include not only
                            those expenses
                            outgoings and other expenditure hereinbefore described
                            which have been
                            actually disbursed incurred or made by the Landlord during
                            the year in
                            question but also such reasonable part of all such expenses
                            outgoings and
                            expenditure hereinbefore described which are of a periodically
                            recurring
                            nature (whether recurring by regular or irregular periods)
                            whenever
                            disbursed incurred or made during the Term including
                            a sum or sums of
                            money by way of reasonable provision for anticipated
                            expenditure in
                            respect thereof as the Landlord or its agents may in
                            their discretion
                            allocate to the year in question as being fair and reasonable
                            in the
                            circumstances

                        

                

                 

              

            

          

        

      

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    
       

      
        	
              	3.3.5	
                On
                  each of the usual quarter days in every year during the Term the
                  Tenant
                  shall pay to the Landlord (together with if so required by the
                  Landlord
                  any VAT payable thereon) such a sum (an “advance payment”) in advance and
                  on account of the service charge for the Landlord’s financial year thence
                  ensuing as the Landlord’s or their agents shall from time to specify at
                  their discretion (acting reasonably) to be a fair and reasonable
                  assessment of one quarter of the service charge for the financial
                  year
                  then current

              

      

    

    
      
         

        
          	
                	3.3.6	
                  As
                    soon as practicable after the end of each Landlord’s, financial year the
                    Landlord shall furnish to the Tenant an account of the service
                    charge
                    payable by the Tenant for that year with due credit being given
                    therein
                    for the advance payment made by the Tenant in respect of the
                    said year and
                    upon the furnishing of such an account there shall be paid by
                    the Tenant
                    to the Landlord the service charge or any balance thereof 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 payments as the case
                    may
                    require

                

           

        

      

    

    
      	 	
              3.4

            	
              Outgoings

            

    

     

    To
      pay
      and discharge all existing and future rates taxes duties charges assessments
      impositions and outgoings whatsoever (whether parliamentary parochial local
      or
      of any other description and whether or not of a capital or non-recurring
      nature) which are now or may at any time hereafter be assessed charged levied
      or
      imposed upon or payable in respect of the Premises or assessed charged levied
      or
      imposed upon or payable by any estate owner landlord tenant or occupier in
      respect thereof provided that the Tenant will not be responsible for any
      outgoings properly payable by the Landlord in respect of the receipt of any
      rent
      hereunder or the ownership of or any dealing with its reversionary interest
      in
      the Premises Provided Further That if any payments due under this clause 3.4
      are
      due in respect of the Premises and any other part of the Building jointly to
      pay
      a proper proportion of them to be conclusively determined by the Landlord acting
      reasonably

     

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              3.5

            	
              VAT

            

    

     

    Upon
      production of a properly addressed and valid VAT invoice to the Tenant to pay
      to
      the Landlord by way of additional rent all VAT at the rate for the time being
      in
      force which shall be payable (whether by statute or as the result of the
      exercise by the Landlord of a statutory right to waive an exemption or make
      an
      election) in respect of the rents and other sums payable by the Tenant hereunder
      and in every case where the Tenant covenants to pay an amount of money hereunder
      such amount shall be regarded as being exclusive of VAT

     

    
      	 	
              3.6

            	
              Interest
                on arrears

            

    

     

    If
      at any
      time during the Term the said rents or the additional rent or rents or any
      part
      or parts thereof or any other sums due hereunder from the Tenant to the Landlord
      shall remain unpaid for more than ten working days after becoming payable
      (whether formally demanded or not) or the Landlord shall with good reason refuse
      to accept the same to pay to the Landlord interest upon the same at the
      Prescribed Rate calculated on a day to day basis (as well after as before any
      judgment) from the date upon which the same first became payable until the
      date
      of actual payment provided that nothing herein contained shall entitle the
      Tenant to withhold or delay payment thereof after the date upon which payment
      first falls due or in any way prejudice affect or derogate from the rights
      and
      remedies of the Landlord under this Lease

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              3.7

            	
              Notices

            

    

     

    To
      deliver to the Landlord free of charge a copy of every notice order requisition
      direction or proposal given made or issued by a competent authority affecting
      the Premises or the user of the Premises as soon as reasonably practicable
      after
      the Tenant becomes aware thereof and at the request and cost of the Landlord
      to
      make or join in making such objections or representations against or in respect
      of any such notice order requisition direction or proposal as the Landlord
      shall
      reasonably deem expedient

     

    
      	 	
              3.8

            	
              Internal
                decoration

            

    

     

    In
      every
      fifth year of the Term and in the last six months thereof however determined
      (but not in two consecutive years) to paint paper plaster or otherwise treat
      as
      the case may require all interior parts of the Premises usually or requiring
      to
      be painted, papered, plastered or otherwise treated with not less than two
      coats
      of good quality paint or other suitable material of good quality in a proper
      and
      workmanlike manner the colour and quality of the paint and other finishes in
      the
      last six months of the Term to be first approved by the Landlord and also at
      the
      same time with every such painting to wash down all tiles glazed bricks and
      similar washable surfaces and make good all ornamental works and generally
      to
      redecorate throughout restoring and making good the Premises

     

    
      	 	
              3.9

            	
              Repair

            

    

     

    To
      repair
      and keep the Premises in good and substantial repair and condition except for
      damage caused by an Insured Risk unless and to the extent that the insurance
      money is irrecoverable because of an act or default of the Tenant or the
      Tenant’s servants or agents or any person at the Premises with the express and
      implied authority of the Tenant

     

    
      	 	
              3.10

            	
              Expenses

            

    

     

    To
      pay on
      an indemnity basis all expenses (including without prejudice to the generality
      thereof solicitors’ counsel’s architects’ surveyors’ and bailiffs’ fees and
      other professional costs) and VAT thereon which may be properly incurred by
      the
      Landlord:

    

    
      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

    
      
         

        
          	
                	3.10.1	
                  in
                    any proceedings under Section 146 or 147 of the Law of Property
                    Act 1925
                    or any statutory modification or re-enactment thereof for the
                    time being
                    in force or the preparation and service of any notice under those
                    sections
                    notwithstanding that forfeiture may be avoided otherwise than
                    by relief
                    granted by the court;

                

        

      

      
        
          
            
              
                 

                
                  	
                        	3.10.2	
                          in
                            respect of any application for any consent or the approval
                            of any deed or
                            document required under the terms of this Lease (whether
                            or not such
                            consent or approval shall be granted unless such consent
                            is unlawfully
                            refused);

                        

                

              

              
                
                  
                    
                      
                         

                        
                          	
                                	3.10.3	
                                  in
                                    the recovery or attempted recovery of arrears
                                    of rent or rents due from
                                    the Tenant hereunder;

                                

                        

                      

                      
                        
                          
                            
                              
                                 

                                
                                  	
                                        	3.10.4	
                                          in
                                            preparing and serving a schedule of dilapidations
                                            at any time during the
                                            Term or within three months after its
                                            expiration or
                                            determination

                                        

                                

                              

                              
                                 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	 	
              3.11

            	
              Yield
                up

            

    

     

    At
      the
      expiration or sooner determination of the Term:-

    
      
        
           

          
            	
                  	3.11.1	
                    quietly
                      to yield up the Premises with vacant possession thereof decorated
                      repaired
                      cleaned and kept in accordance with the Tenant’s
                      covenants

                  

          

        

        
          
            
              
                
                   

                  
                    	
                          	3.11.2	
                            to
                              execute such deed or document as the Landlord shall
                              require in order to
                              cancel any entry or title relating to this Lease at
                              HM Land Registry
                              and

                          

                  

                

                
                  
                    
                      
                        
                           

                          
                            	
                                  	3.11.3	
                                    to
                                      ensure that any requisitions raised by HM Land
                                      Registry in connection with
                                      the cancellation of any entry or title relating
                                      to this Lease are dealt
                                      with promptly and properly

                                  

                          

                        

                        
                           

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              3.12

            	
              Entry

            

    

     

    To
      permit
      the Landlord and its agents with or without workmen and others at any reasonable
      time or times and upon reasonable notice (except in cases of emergency) to
      enter
      and examine the Premises to ensure that nothing has been done therein which
      constitutes a breach of any of the covenants contained in this Lease and to
      examine the state and condition of the Premises

     

    
      	 	
              3.13

            	
              Remedy
                breaches

            

    

     

    Within
      a
      reasonable period or in case of emergency immediately to remedy repair and
      make
      good all breaches of covenant and defects of which notice in writing shall
      be
      given by the Landlord to the Tenant and which the Tenant shall be liable to
      remedy repair or make good under the covenants contained in this Lease and
      in
      case the Tenant shall make default in so doing within three months after the
      date of any such notice it shall be lawful (but not obligatory) for the Landlord
      without prejudice to the right of re-entry hereinafter contained to enter upon
      the Premises and to remedy repair and make good the same at the cost of the
      Tenant which cost together with the reasonable expenses of the Landlord
      (including surveyors’ and other professional fees) and VAT thereon thereby
      properly incurred shall be a debt due from the Tenant to the Landlord and be
      forthwith recoverable by action subject always to the Landlord making good
      any
      such damage as soon as reasonably possible thereafter

     

    
      	 	
              3.14

            	
              Inventories

            

    

     

    To
      permit
      the Landlord and its agents at any reasonable time or times on reasonable notice
      but not more than once in any calendar year to enter the Premises and to take
      schedules or inventories of the fixtures and things to be yielded up at the
      expiration or sooner determination of the Term

    

    
      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

    

    
      	 	
              3.15

            	
              Notice
                Boards

            

    

    
      
         

        
          	
                	3.15.1	
                  At
                    all convenient hours in the day time and upon prior notice to
                    permit
                    prospective purchasers of or dealers in the Landlord’s reversionary
                    interest by order in writing of the Landlord or its agents to
                    view the
                    Premises without interruption

                

        

      

      
        
          
            
              
                
                  
                    
                       

                      
                        	
                              	3.15.2	
                                Except
                                  while the Tenant shall be entitled to and shall
                                  be taking the steps
                                  necessary to secure a new lease of the Premises
                                  under the Landlord and
                                  Tenant Act 1954 or otherwise to permit the Landlord
                                  or its agents on
                                  reasonable notice within six calendar months next
                                  before the expiration of
                                  the Term to enter upon the Premises and to fix
                                  and retain without
                                  interference upon any suitable part thereof but
                                  not so as to cause
                                  unnecessary interference to the Tenant’s business a notice board for
                                  re-letting the same and to permit persons by order
                                  in writing of the
                                  Landlord or its agents to view the Premises upon
                                  making prior appointment
                                  at all convenient hours in the day time without
                                  interruption

                              

                      

                    

                    
                      
                        
                          
                             

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	 	
              3.16

            	
              Alterations

            

    

    
      
        
           

          
            	
                  	3.16.1	
                    Not
                      to make or permit or suffer to be made any structural alterations
                      or
                      additions to the Premises

                  

          

        

        
          
            
              
                
                  
                    
                      
                         

                        
                          	
                                	3.16.2	
                                  Not
                                    to make or permit or suffer to be made any non-structural
                                    alterations or
                                    additions to the Premises without the prior written
                                    consent of the
                                    Landlord which shall not be unreasonably withheld
                                    or delayed Provided
                                    always that nothing in this clause 3.16 shall
                                    prevent the Tenant from
                                    installing internal demountable partitioning
                                    works of a non-structural
                                    nature nor shall the consent of the Landlord
                                    be required in connection
                                    therewith

                                

                        

                      

                      
                        
                          
                            
                              
                                
                                  
                                    
                                       

                                      
                                        	
                                              	3.16.3	
                                                Not
                                                  to make or permit or suffer to
                                                  be made any alteration or addition
                                                  to any
                                                  electrical installation in or on
                                                  the Premises except in accordance
                                                  with
                                                  the terms and conditions laid down
                                                  by the Institution of Electrical
                                                  Engineers and the regulations of
                                                  the relevant electricity supply
                                                  authority
                                                  and with the prior written consent
                                                  of the Landlord which consent will
                                                  not
                                                  be unreasonably withheld or
                                                  delayed

                                              

                                      

                                    

                                    
                                      
                                        
                                          
                                             

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

    
      
        
           

          
            	
                  	3.16.4	
                    Before
                      carrying out any permitted alterations or additions and at
                      its own cost
                      to:-

                  

          

        

        
          
            
              
                 

              

            

          

        

      

    

    
      	
            	
              3.16.4.1

            	
              obtain
                all necessary consents from any competent authority and any other
                person

            

    

    
      
        
          
            
               

            

          

        

      

      
        	
              	
                3.16.4.2

              	
                supply
                  all drawings specifications and other information that the Landlord
                  reasonably requires in respect of
                  them

              

      

      
        
          
            
              
                
                   

                

              

            

          

          
            	
                  	
                    3.16.4.3

                  	
                    enter
                      into any covenants that the Landlord reasonably requires for
                      the execution
                      supervision and reinstatement of them and provide any security
                      that the
                      Landlord reasonably requires in the case of substantial alterations
                      or
                      additions

                  

          

        

      

    

    
      
        
          
            
              
                
                   

                  
                    	
                          	3.16.5	
                            To
                              complete and carry out any permitted alterations or
                              additions:-

                          

                  

                

                
                  
                    
                       

                    

                  

                

              

            

          

        

      

    

    
      	
            	
              3.16.5.1

            	
              at
                its own cost

            

    

     

    
      	
            	3.16.5.2	
              to
                the Landlord’s reasonable
                satisfaction

            

    

     

    
      	
            	3.16.5.3	
              in
                a good and workmanlike manner

            

    

     

    
      	
            	3.16.5.4	
              with
                good quality materials

            

    

     

    
      	
            	3.16.5.5	
              so
                as not to interfere with any Conduits or so as to cause access to
                any of
                them to be or become more difficult than it was
                previously

            

    

     

    
      	
            	3.16.5.6	
              in
                accordance with the plans specifications and details previously approved
                by the Landlord and

            

    

     

    
      	
            	3.16.5.7	
              in
                accordance with all statutory local authority and insurers’ requirements
                and recommendations

            

    

     

    
      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

    

    
      
        
           

          
            	
                  	3.16.6	
                    If
                      the Landlord requires it to remove any alterations or additions
                      to the
                      Premises or any part of them and to reinstate the Premises
                      or the
                      appropriate part of them to their former or proper condition
                      before the
                      end of the Term (however that occurs) with all work being done
                      to the
                      Landlord’s reasonable
                      satisfaction

                  

          

        

        
          
            
              
                 

              

            

          

        

      

    

    
      	 	
              3.17

            	
              CDM
                Regulations

            

    

     

    Where
      any
      works are carried out to or within the Premises to which the CDM Regulations
      apply and such works are carried out by or on behalf of the Tenant any
      underlessee (however inferior) or any other occupier of the Premises or any
      part
      of the Premises the Tenant:-

    
      
        
           

          
            	
                  	3.17.1	
                    shall
                      comply with the CDM Regulations and procure that any person
                      involved in
                      carrying out such works complies with the CDM
                      Regulations

                  

          

        

        
          
            
              
                
                   

                  
                    	
                          	3.17.2	
                            shall
                              act (or if such works are to be carried out by an underlessee
                              or any other
                              person procure that such undertenant or other person
                              acts) as the only
                              client in respect of such works and shall make (or
                              procure the making of)
                              a declaration to that effect in accordance with regulation
                              4 of the CDM
                              Regulations

                          

                  

                  
                    
                      
                        
                          
                            
                              
                                
                                   

                                  
                                    	
                                          	3.17.3	
                                            shall
                                              procure that the declaration mentioned
                                              in clause 3.17.2 is sent without
                                              delay to the Health and Safety Executive
                                              in accordance with the CDM
                                              Regulations and that a copy of the
                                              Health and Safety Executive’s notice in
                                              acknowledgement of the said declaration
                                              is delivered without delay to the
                                              Landlord

                                          

                                  

                                

                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                 

                                                
                                                  	
                                                        	3.17.4	
                                                          warrants
                                                            that it or the relevant
                                                            underlessee or other
                                                            person has the competence
                                                            to
                                                            perform the duties imposed
                                                            on a client by the CDM
                                                            Regulations

                                                        

                                                

                                              

                                              
                                                
                                                  
                                                    
                                                       

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

    

    

     

     

    
      	
            	3.17.5	
              shall
                provide the Landlord with a copy of the health and safety file relating
                to
                such works upon their completion and (if the Landlord shall so request)
                copies of the whole or part of the health and safety file immediately
                on
                request

            

    

     

    
      	
            	3.17.6	
              shall
                make the health and safety file relating to such works available
                for
                inspection by the Landlord on
                request

            

    

     

    
      	
            	3.17.7	
              shall
                hand over to the Landlord the health and safety file relating the
                such
                works on the expiration or sooner determination of the Term and shall
                forthwith after becoming aware of any relevant information concerning
                health and safety relating to the Premises provide such information
                to the
                Landlord and obtain all necessary copyright licences permitting the
                use of
                such information

            

    

     

    
      	 	
              3.18

            	
              Use

            

    

     

    Not
      without the consent of the Landlord (such consent not to be unreasonably
      withheld or delayed) to use or permit the Premises to be used otherwise than
      for
      the Permitted Use Provided that no representation or warranty is or has prior
      to
      the date hereof been given or made by or on behalf of the Landlord that any
      such
      use is or will be or will remain a permitted use under the Town and Country
      Planning Acts or that the Premises are or will remain otherwise fit for any
      such
      use and Provided that at no time shall the Premises or any part thereof be
      used
      in connection with the business of collecting storing treating or disposing
      of
      controlled waste as such expression is defined in Section 75 of the
      Environmental Protection Act

     

    
      	 	
              3.19

            	
              Restricted
                Uses

            

    

     

    
      	
            	3.19.1	
              Not
                to use the Premises: 

            

    

     

    
      	
            	3.19.1.1	
              for
                any illegal or immoral purpose or

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      	
            	3.19.1.2	
              for
                any offensive noisy or dangerous trade business or
                manufacture

            

    

     

    
      	
            	3.19.2	
              Not
                to allow any person to reside or sleep on the
                Premises

            

    

     

    
      	
            	3.19.3	
              Not
                to hold any sale by auction on the
                Premises

            

    

     

    
      	
            	3.19.4	
              Not
                to do anything on the Premises which is or may become a nuisance
                damage or
                annoyance to the Landlord or to any occupier or owner of any part
                of the
                Building or to any adjoining or nearby occupier or
                owner

            

    

     

    
      	
            	3.19.5	
              Not
                to generate any noise in the Premises which can be heard or which
                creates
                vibrations that can be felt in any other part of the Building or
                in any
                neighbouring or adjoining property

            

    

     

    
      	 	
              3.20

            	
              Compliance
                with statutes

            

    

     

    At
      all
      times during the Term at the Tenant’s expense to observe and comply with all
      statutes and all notices directions orders regulations byelaws rules and
      conditions made or to be made under or by virtue of any statute and all
      requirements of any public or local authority so far as they relate to or affect
      the Premises or the contents of or the user of the Premises or the employment
      thereon of any persons

     

    
      	 	
              3.21

            	
              Planning
                and environmental matters

            

    

     

    Subject
      and without prejudice to clause 3.17:

     

    
      	
            	3.21.1	
              not
                to make or permit or suffer to be made any application for planning
                permission nor to implement any planning permission without the previous
                consent in writing of the Landlord

            

    

     

    
      	
            	3.21.2	
              not
                to do or omit or permit or suffer to be done or omitted any act or
                thing
                on or in relation to the Premises or the user of the Premises the
                doing or
                omission of which shall be or may in the reasonable opinion of the
                Landlord constitute a contravention of the Planning
                Acts

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	
            	3.21.3	
              promptly
                to execute at the Tenant’s expense all such works as are or may under or
                in pursuance of the Planning Acts or any other statute be directed
                or
                required by any local public or other competent authority to be executed
                at any time and whether by the Landlord or Tenant (including without
                prejudice to the generality of the foregoing the provision and maintenance
                of fire escapes and toilet facilities and elimination of smoke effluvia
                vapour and grit)

            

    

     

    
      	
            	3.21.4	
              not
                without the prior written consent of the Landlord to enter into any
                planning obligation for the purposes of Section 106 of the Town and
                Country Planning Act 1990

            

    

     

    
      	
            	3.21.5	
              in
                relation to any act the commission or omission of which requires
                any
                consent licence or other authority under the Environmental Protection
                Act:-

            

    

     

    
      	
            	3.21.5.1	
              not
                to do or omit to do (as the case may be) such act without obtaining
                such
                authority and

            

    

     

    
      	
            	3.21.5.2	
              not
                to apply for such authority without the Landlord’s prior written
                consent

            

    

     

    
      	 	
              3.22

            	
              Insurance

            

    

     

    
      	
            	3.22.1	
              Not
                to carry on or suffer upon the Premises any trade business or occupation
                in any manner or do or suffer any other thing which may make void
                or
                voidable any policy for the insurance of the Premises covered by
                the
                Insured Risks hereinafter referred to or render any increased or
                extra
                premium payable for such insurance and to comply at its own expense
                with
                all directions and recommendations of the insurers of the Premises
                of
                which the Tenant shall have notice in
                writing

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      	
            	3.22.2	
              To
                make up out of its own monies any deduction in any insurance monies
                paid
                by the Landlord’s insurers made as a result of the faulty repair or
                maintenance of the Premises by the Tenant in the performance of its
                covenants under this lease or otherwise by any act or default of
                the
                Tenant or the Tenant’s servants or agents or any person at the Premises
                with the express or implied authority of the
                Tenant

            

    

     

    
      	
            	3.22.3	
              The
                Tenant warrants to the Landlord that prior to the execution of this
                Lease
                it has disclosed to the Landlord in writing any conviction judgement
                or
                finding of any court or tribunal relating to the Tenant (or any director
                or other officer or major shareholder of the Tenant) of such nature
                as to
                be likely to affect the decision of any insurer or underwriter to
                grant or
                to continue insurance of any of the Insured Risks and covenants to
                inform
                the Landlord immediately in writing of any such matter arising in
                the
                future

            

    

     

    
      	 	
              3.23

            	
              Dangerous
                materials

            

    

     

    Not
      to
      keep or permit or suffer to be kept on the Premises any material of a dangerous
      nature especially inflammable explosive radioactive or other similar
      nature

     

    
      	 	
              3.24

            	
              Overloading

            

    

     

    Not
      to
      fix to or place upon or permit or suffer to be fixed to or placed upon the
      Premises any machinery article or substance which in the reasonable opinion
      of
      the Landlord may be liable to damage or overload the roofs or floors or other
      structural parts of the Building

     

    
      	 	
              3.25

            	
              Signs

            

    

     

    Not
      without the consent in writing of the Landlord first obtained which shall not
      be
      unreasonably withheld or delayed to affix or display or permit or suffer to
      be
      affixed or displayed to or on the Premises any sign fascia hoarding poster
      placard skysign flagpole mast lettering or advertisement or any aerial or
      satellite dish whatsoever which shall be visible from the outside the Premises
      and in default of obtaining such consent the Landlord may enter and remove
      the
      same at the cost of the Tenant

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
      	 	
              3.26

            	
              Encroachment

            

    

     

    To
      take
      all steps reasonably necessary to prevent any encroachment upon the Premises
      or
      the acquisition of any new right to light passage drainage or other encroachment
      over upon or under the Premises and/or the Building and to give notice to the
      Landlord of any threatened encroachment or attempt to acquire any such
      easement

     

    
      	 	
              3.27

            	
              Alienation
                and Parting with
                Possession

            

    

     

    
      	
            	3.27.1	
              Not
                (except by way of a permitted assignment or charging of the whole
                of the
                Premises or a permitted underletting of the Premises in accordance
                with
                clause 3.27 (“a Transaction”)) to transfer underlet charge or part with or
                share the possession or occupation of the whole or any part or parts
                of
                the Premises

            

    

     

    
      	
            	3.27.2	
              Not
                to hold the Premises or any part or parts of the Premises or this
                Lease on
                trust for another

            

    

     

    
      	
            	3.27.3	
              The
                Tenant may assign the Premises as a whole provided that the Tenant
                must
                not make such permitted assignment without
                first:

            

    

     

    
      	
            	3.27.3.1	
              making
                a written application for a licence to assign and obtaining the Landlord’s
                prior written consent (such consent not to be unreasonably withheld
                or
                delayed);

            

    

     

    
      	
            	3.27.3.2	
              satisfying
                the circumstances specified for the purposes of Section 19 (1A) of
                the
                Landlord and Tenant Act 1927 and set out in clause
                3.27.4

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      	
            	3.27.3.3	
              complying
                with the conditions specified for the purposes of Section 19(1A)
                of the
                Landlord and Tenant Act 1927 and set out in clause
                3.27.5

            

    

     

    
      	
            	3.27.4	
              The
                circumstances referred to in clause 3.27.3.2 are
                that:

            

    

     

    
      	
            	3.27.4.1	
              all
                sums due from the Tenant under this Lease have been paid at the date
                of
                the application of the licence to assign;
                and;

            

    

     

    
      	
            	3.27.4.2	
              in
                the Landlord’s reasonable opinion there are at’ the date of the
                application for licence to assign no material outstanding breaches
                of any
                tenant covenant under this Lease or anyh personal covenants undertaken
                by
                the Tenant relating to the state and condition of the
                Premises;

            

    

     

    
      	
            	3.27.4.3	
              in
                the Landlord’s reasonable opinion the proposed assignee is of no lesser
                financial standing than the Tenant or any guarantor of the
                Tenant;

            

    

     

    
      	
            	3.27.4.4	
              the
                Landlord is reasonably sastisfied that the assignment will have no
                adverse
                impact on the open market value of the reversion expectant on the
                determination of the Term;

            

    

     

    
      	
            	3.27.4.5	
              in
                the Landlord’s reasonable opinion the proposed assignee is a person who at
                the date of the application for licence to assign is likely to be
                able to
                comply with the tenant covenants of this Lease and is likely to continue
                to be such a person following the
                assignment;

            

    

     

    
      	
            	3.27.4.6	
              the
                proposed assignee does not have the benefit of diplomatic
                immunity;

            

    

     

    
      	
            	3.27.4.7	
              the
                proposed assignee is a corporation registered in (or if an individual
                is
                resident in a jurisdiction in which the order of a Court obtained
                in
                England and Wales will be enforced without any consideration of the
                merits
                of the case; and

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
      	
            	3.27.4.8	
              in
                the case of an assignment to a company which is in the same group
                (within
                the meaning of Section 42 of the 1954 Act) as the Tenant the proposed
                assignee is in the Landlord’s reasonable opinion a company which at the
                date of the application for licence to assign is no less likely than
                the
                Tenant was at the date of either the grant or the assignment of this
                Lease
                to the Tenant to be able to comply with the Tenant’s covenants in this
                Lease and is likely to continue to be such a company following the
                assignment

            

    

     

    
      	
            	3.27.5	
              The
                conditions referred to in clause 3.27.3.3 are
                that:

            

    

     

    
      	
            	3.27.5.1	
              the
                Tenant shall enter into an authorised guarantee agreement (as defined
                in
                Section 16 of the 1995 Act), such agreement to be by way of deed
                in a form
                set out in Schedule 5 hereto with such amendments or additions as
                the
                Landlord shall reasonably require;

            

    

     

    
      	
            	3.27.5.2	
              if
                so reasonably required by the Landlord the proposed assignee shall
                obtain
                one or more guarantors reasonably acceptable to the Landlord who
                shall
                covenant by deed with the Landlord in the form set out in clause
                7 with
                such amendments or additions as the Landlord shall reasonably require;
                and

            

    

     

    
      	
            	3.27.5.3	
              the
                written licence to assign shall contain a condition that if at any
                time
                prior to the assignment the circumstances (or any of them) specified
                in
                clause 3.27.4 cease to exist the Landlord may revoke the licence
                by
                written notice to the Tenant .

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.27.6	
              Nothing
                in this clause 3.27 shall limit the Landlord’s right to withhold consent
                to an assignment in circumstances other than those mentioned in clause
                3.27.4 if it is reasonable to do so, or to give consent to an assignment
                subject to conditions other than those mentioned in clause 3.27.5
                if those
                conditions are reasonable

            

    

     

    
      
        	
              	3.27.7	
                The
                  Tenant may underlet the Premises as a whole Provided That the Tenant
                  must
                  not make such permitted underletting without
                  first:-

              

      

    

     

    
      	
            	3.27.7.1	
              making
                a written application for licence to underlet and obtaining the Landlord’s
                prior written consent (such consent not to be unreasonably withheld
                or
                delayed) and

            

    

     

    
      	
            	3.27.7.2	
              complying
                with the conditions specified in clause 3.27.8 and clause
                3.27.9

            

    

     

    
      	
            	3.27.8	
              The
                conditions referred to in clause 3.27.7.2 are that any underlease
                must:-

            

    

     

    
      	
            	3.27.8.1	
              be
                granted at the full open market rent (and in no case at a rent less
                than
                the rent payable under this Lease at the time) without any fine or
                premium
                or reverse premium or other concession to the undertenant (other
                than any
                rent free period in respect of the time required to fit out the Premises
                which is required in the open market at the time) with rent being
                payable
                in advance on the usual quarter
                days

            

    

     

    
      	
            	3.27.8.2	
              contain
                provisions for the review of the rent on the same dates and on the
                same
                basis as the review of the Rent in this
                Lease

            

    

     

    
      	
            	3.27.8.3	
              contain
                covenants controlling dealings in accordance with this clause
                3.27

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.27.8.4	
              contain
                a re-entry clause in a form equivalent to the re-entry clause in
                this
                Lease

            

    

     

    
      	
            	3.27.8.5	
              be
                in a form approved by the Landlord (such approval not to be unreasonably
                withheld)

            

    

     

    
      	
            	3.27.8.6	
              contain
                a lawful agreement between the Tenant and the undertenant that the
                provisions of sections 24 to 28 of the 1954 Act are excluded from
                applying
                to the tenancy created by the
                underlease

            

    

     

    
      	
            	3.27.8.7	
              contain
                provisions requiring the consent of the Landlord to be obtained in
                respect
                of any matter for-which the consent of the Landlord is required under
                this
                Lease

            

    

     

    
      	
            	3.27.8.8	
              otherwise
                be consistent with and include tenant covenants no less onerous than
                those
                in this Lease

            

    

     

    
      	
            	3.27.9	
              Before
                any underlease is granted:-

            

    

     

    
      	
            	3.27.9.1	
              the
                proposed underlessee must enter into a deed (to be prepared by the
                Landlord’s solicitors) in a form reasonably required by the Landlord
                containing direct covenants with the Landlord to comply with the
                underlessee’s obligations under the proposed underlease and the tenant
                covenants in this Lease (except the covenant to pay the Rent)
                -

            

    

     

    
      	
            	3.27.9.2	
              if
                reasonably required by the Landlord the Tenant must procure that
                a
                guarantor approved by the Landlord (such approval not to be unreasonably
                withheld or delayed) enters into a deed (to be prepared by the Landlord’s
                solicitors) in the form form reasonably required by the Landlord
                to secure
                the obligations of the proposed underlessee to the
                Landlord

            

    

     

    
      	
            	3.27.9.3	
              the
                Tenant must produce to the
                Landlord:-

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (b)

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

            

    

     

    
      	
            	3.27.10	
              In
                relation to any underlease granted by the Tenant it
                will:-

            

    

     

    
      	
            	3.27.10.1	
              enforce
                compliance with the obligations in it and not waive any breach by
                the
                underlessee

            

    

     

    
      	
            	3.27.10.2	
              not
                vary its terms forfeit it or accept a surrender of it without the
                Landlord’s consent such consent not to be unreasonably
                withheld

            

    

     

    
      	
            	3.27.10.3	
              not
                commute any rent payable under it in whole or
                part

            

    

     

    
      	
            	3.27.10.4	
              ensure
                that the rent payable under it is revised at each review date to
                the open
                market rent then obtainable but will not agree any revised rent without
                the Landlord’s approval (such approval not to be unreasonably
                withheld)

            

    

     

    
      	 	
              3.28

            	
              Registration

            

    

     

    
      	
            	3.28.1	
              In
                respect of every Transaction that is registerable at HM Land Registry
                the
                Tenant shall promptly following completion of the Transaction apply
                to
                register it (or procure that the relevant person so
                applies)

            

    

     

    
      	
            	3.28.2	
              The
                Tenant shall (or shall procure that) any requisitions raised by HM
                Land
                Registry in connection with an application to register a Transaction
                are
                dealt with promptly and properly

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.28.3	
              Within
                ten days of completion of the registration the Tenant shall send
                the
                Landlord official copies of its title (and where applicable of the
                undertenant’s title)

            

    

     

    
      	
            	3.28.4	
              Within
                one month of every Transaction to give written notice to and produce
                a
                certified copy of any document effecting the Transaction to the Landlord’s
                solicitors and to pay to the Landlord’s solicitors by way of a
                registration fee the sum of £50 together with VAT thereon in respect of
                each such instrument

            

    

     

    
      	
            	3.28.5	
              To
                supply to the Landlord any details required by the Landlord pursuant
                to
                Section 40 of the 1954 Act

            

    

     

    
      	 	
              3.29

            	
              Contamination

            

    

     

    Not
      to
      discharge or allow to be discharged any solid matter from the Premises into
      the
      drains or sewers which belong to or serve the Premises nor to discharge or
      allow
      to be discharged therein any fluid of a poisonous or noxious nature or that
      contaminates or pollutes the water of any stream or river or canal and not
      to do
      any act or thing whereby the waters of any stream or river or canal may be
      polluted or the composition so changed as to render the Landlord liable to
      any
      action or proceedings by any person and to keep the Landlord indemnified in
      any
      proceedings that may arise through a breach of this covenant

     

    
      	 	
              3.30

            	
              Indemnity

            

    

     

    To
      keep
      the Landlord fully and effectually indemnified at all times and the Tenant
      hereby indemnifies the Landlord accordingly against all Losses in respect of
      the
      death of or personal injury to any person or any physical damage to any property
      (whether alleged or demanded by the owners or occupiers of any adjoining or
      neighbouring properties or other parties) arising from the use or occupation
      of
      the Premises or the existence of any articles in or about the Premises or the
      execution of any works upon the Premises or any breach of any of the covenants
      in this Lease Provided That:-

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      	
            	3.30.1	
              before
                seeking indemnification from the Tenant under this clause 3.30 the
                Landlord shall use all reasonable endeavours to obtain indemnification
                under any relevant insurance policy towards the cost of which the
                Tenant
                shall have contributed hereunder
                and

            

    

     

    
      	
            	3.30.2	
              the
                Landlord shall keep the Tenant duly informed of the nature and progress
                of
                all claims which shall be intimated to the Landlord in respect of
                which
                the Landlord claims to be entitled to
                indemnity

            

    

     

    
      	 	
              3.31

            	
              Fire
                precautions

            

    

     

    To
      keep
      the Premises supplied and equipped with all fire fighting and extinguishing
      appliances as may from time to time be required by law or by the insurers of
      the
      Premises and also to keep in force regular maintenance contracts for such fire
      fighting and extinguishing appliances

     

    
      	 	
              3.32

            	
              Defective
                premises

            

    

     

    As
      soon
      as reasonably practicable after becoming aware of the same to give notice
      forthwith to the Landlord of any “relevant defect” within the meaning of Section
      4 of the Defective Premises Act 1972 or any statutory modification or
      re-enactment thereof in the state of the Premises and at all time to display
      and
      maintain all notices (including the wording thereof) and barriers or screens
      which the Landlord may from time to time display or erect or require to be
      displayed or erected at or in the Premises relevant to the subject matter of
      this clause

     

    
      	 	
              3.33

            	
              New
                Guarantor

            

    

     

    Within
      fourteen days of becoming aware of (a) the death during the Term of the
      Guarantor or (b) any action being commenced or any legal proceedings being
      started or other steps or process being taken in relation to the Guarantor
      (I)
      being a company for any of the matters described in clause 6.2.1 hereof or
      (ii)
      being an individual for any of the matters described in clause 6.2.2 hereof
      to
      give notice of this to the Landlord and if so requested by the Landlord at
      the
      expense of the Tenant within twenty eight days of such request to procure some
      other person or company acceptable to the Landlord (acting reasonably) to
      execute a guarantee and covenant in respect of the Tenant’s obligations
      contained in this Lease in the form complying with the requirements set out
      in
      clause 7

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.34

            	
              Encumbrances

            

    

     

    To
      observe and perform the Encumbrances insofar as the same relate to or affect
      the
      Premises and are still subsisting and capable of taking effect and to keep
      the
      Landlord fully and effectually indemnified at all times and the Tenant hereby
      indemnifies the Landlord accordingly against all costs claims liabilities
      actions and expenses arising from any breach non-observance or non-performance
      of or non- compliance with any of the Encumbrances

     

    
      	 	
              3.35

            	
              Evidence
                of compliance

            

    

     

    If
      required to produce to the Landlord such evidence as the Landlord may reasonably
      require to satisfy itself that the provisions of this Lease have been complied
      with

     

    
      	 	
              3.36

            	
              Regulations

            

    

     

    To
      comply
      with all reasonable written regulations from time to time made by the Landlord
      for the satisfactory running or management of the Building

     

    
      	 	
              3.37

            	
              Disputes

            

    

     

    If
      required by the Landlord to submit any dispute with any other tenant of any
      other premises in the Building concerning the occupation or use of any part
      of
      the Building or anything else affected by this Lease to the Landlord for
      resolution when the Landlord’s decision shall be final and binding on the
      parties

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.38

            	
              Occupation

            

    

     

    Not
      to
      leave the Premises unoccupied without notifying the Landlord and providing
      any
      caretaking or security arrangements that the Landlord reasonably
      requires

     

    
      	 	
              3.39

            	
              Window
                Cleaning

            

    

     

    To
      clean
      the interior of any windows other glass or similar substance in the walls of
      the
      Premises whether internal or external as often as reasonably necessary and
      in
      any event at least monthly

     

    
      	 	
              3.40

            	
              Car
                Park

            

    

     

    In
      connection with the use of the Car Park including the Car Parking Spaces:

     

    
      	
            	3.40.1	
              not
                to litter or leave any rubbish on
                it

            

    

     

    
      	
            	3.40.2	
              not
                to use it so as to be or become or cause a nuisance annoyance disturbance
                inconvenience injury or damage to the Landlord or any other
                user

            

    

     

    
      	
            	3.40.3	
              not
                to obstruct any access or manoeuvring
                area

            

    

     

    
      	
            	3.40.4	
              not
                to knowingly allow oil or grease to drip onto it and not to bring
                onto it
                any fuel or lubricating oil except any inside the tank or mechanical
                parts
                of any car using it

            

    

     

    
      	
            	3.40.5	
              not
                to clean or undertake any maintenance work on any car using
                it

            

    

     

    
      	
            	3.40.6	
              to
                comply with and ensure that the owners and drivers of all cars using
                the
                Car Park under its authority comply with all reasonable regulations
                made
                by the Landlord at any time for its satisfactory running or
                management

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.41

            	
              Land
                Registration Act 2002

            

    

     

    
      If this
        Lease should be registered at HM Land Registry under the 2002 Act the Tenant
        will:-

    

     

    
      	
            	3.41.1	
              use
                its reasonable endeavours to procure that the Tenant is registered
                at HM
                Land Registry as proprietor of the Lease as soon as reasonably
                practicable

            

    

     

    
      	
            	3.41.2	
              use
                its reasonable endeavours to procure that all rights granted or reserved
                by the Lease are properly noted against the affected title(s) as
                soon as
                reasonably practicable and

            

    

     

    
      	
            	3.41.3	
              deliver
                to the Landlord within ten days of registration official copies of
                the
                registered title and the title plan evidencing that the Tenant is
                the
                registered proprietor of the Lease

            

    

     

    
      	 	
              3.42

            	
              Superior
                Lease

            

    

     

    
      	
            	3.42.1	
              To
                observe and perform the tenant’s covenants in the Superior Lease so far as
                they relate to or affect the Premises (save the obligation to pay
                rents
                and any other payments under the Superior Lease) as if they had been
                expressly incorporated in this Lease and so as to operate independently
                between the Landlord and Tenant as they do between the landlord and
                tenant
                of the Superior Lease

            

    

     

    
      	4.	
              LANDLORD’S
                COVENANTS

            

    

     

    The
      Landlord hereby covenants with the Tenant as follows:

     

    
      	 	
              4.1

            	
              Quiet
                enjoyment

            

    

     

    That
      the
      Tenant paying the rents hereby reserved and made payable (including revised
      rents) and performing and observing the several covenants conditions and
      agreements herein contained and on the Tenant’s part to be performed and
      observed shall and may peaceably and quietly hold and enjoy the Premises during
      the Term without any lawful interruption or disturbance from or by the Landlord
      or any person claiming under or in trust for the Landlord

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      	 	
              4.2

            	
              Insurance

            

    

     

    
      	
            	4.2.1	
              Provided
                that such insurance is commercially acceptable having regard to cost
                reasonable excesses and exclusions and general availability to insure
                and
                keep insured in their full reinstatement value from time to time
                (together
                with VAT on building costs) the Premises or at the Landlord’s option the
                Premises as part of the Building or any part of it against loss or
                damage
                by the Insured Risks and three years’ loss of Rent (and VAT thereon) and
                architects’ surveyors’ and engineers’ and other professional fees and
                demolition and clearance expenses (and VAT on such fees and expenses)
                in
                some insurance office of repute or with Lloyds Underwriters and in
                case of
                destruction of or damage to the Premises or any -pad thereof from
                any
                cause covered by such insurance for the time being and provided and
                to the
                extent that the Landlord’s insurance shall not have been vitiated or
                payment thereunder refused in whole or in part as a result of any
                act or
                default on the part of the Tenant or the Tenant’s servants or agents or
                any person at the Premises with the express or implied authority
                of the
                Tenant the Landlord will lay out all monies received in respect of
                such
                insurance (other than for loss of rent architects’ surveyors’ engineers’
                and other professional fees and demolition and clearance expenses
                and VAT
                where applicable) for the purpose of rebuilding and reinstating the
                same
                as soon as reasonably practicable in a good and workmanlike manner
                using
                good quality materials Provided That if any competent authority shall
                lawfully refuse permission for or otherwise lawfully prevent any
                rebuilding or reinstatement of the Premises or any rebuilding or
                reinstatement shall be otherwise frustrated all relevant insurance
                monies
                (so far as not laid out as aforesaid) shall be receivable by the
                Landlord
                for its own use and benefit
                absolutely

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    
      	
            	4.2.2	
              Whenever
                reasonably required to produce to the Tenant (but save as provided
                by
                clause 4.2.3 not more than once in each calendar year) a copy of
                the
                policy or copies of the policies of such insurance or other sufficient
                written evidence from the insurers of the nature extent and terms
                thereof
                and confirmation from the insurers that the same is or the same are
                still
                in existence and the receipt for or other evidence of the payment
                of the
                premium for the same in respect of the period of insurance then current
                and allow the Tenant to make copies

            

    

     

    
      	
            	4.2.3	
              To
                notify the Tenant of any proposed change in the insurer or terms
                of cover
                from time to time and to supply (at the written request of the Tenant)
                to
                the Tenant a copy or sufficient written evidence from the insurers
                of the
                terms of any new form of policy whenever the same becomes
                applicable

            

    

     

    
      	 	
              4.3

            	
              Services

            

    

     

    To
      provide the services set out in Schedule 4

     

    
      	 	
              4.4

            	
              Superior
                Lease

            

    

     

    To
      pay
      the rent and any other payments due under the Superior Lease

     

    
      	5.	
              RENT
                REVIEW

            

    

     

    
      	 	
              5.1

            	
              In
                this clause where the context
                admits:

            

    

     

    
      	
            	5.1.1	
              “Assumptions”
                are the following assumptions at the relevant Rent Review
                Date;

            

    

     

    
      	
            	5.1.1.1	
              that
                the Premises are available to let as a whole with vacant possession
                on the
                open market (without the payment of a premium by either party) for
                a term
                equal in length to the Term but commencing on the relevant Review
                Date and
                on the same terms as this Lease (other than the amount of the rent
                hereby
                reserved and any rent free period allowed to the Tenant but including
                like
                provisions for the rent review at the same
                intervals)

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
            	5.1.1.2	
              that
                the Premises are fully fitted out and equipped to the requirements
                of a
                willing tenant and are fit and available for immediate occupation
                and
                use

            

    

     

    
      	
            	5.1.1.3	
              that
                no work has been carried out to the Premises during the Term which
                has
                diminished the rental value of the
                Premises

            

    

     

    
      	
            	5.1.1.4	
              in
                the event that the Premises or any pipes serving the Premises or
                any
                rights enjoyed in connection with the Premises have been destroyed
                damaged
                or interrupted (by any cause whatsoever) that they have been fully
                restored

            

    

     

    
      	
            	5.1.1.5	
              that
                all the covenants and conditions in this Lease have been duly performed
                and observed

            

    

     

    
      
        	
              	5.1.2	
                “Disregards”
                  are the following matters which are to be disregarded at the relevant
                  Rent
                  Review Date

              

      

    

     

    
      	
            	5.1.2.1	
              Any
                effect on rent of the fact that the Tenant has been in occupation
                of the
                Premises

            

    

     

    
      	
            	5.1.2.2	
              Any
                goodwill attached to the Premises by reason of the carrying on Thereat
                of
                the business of the Tenant

            

    

     

    
      
        	
              	5.1.2.3	
                Any
                  increase in the rental value of the Premises attributable to any
                  improvement to the Premises made during the Term by and at the
                  cost of the
                  Tenant and carried out with the Landlord’s consent otherwise than in
                  pursuance of an obligation to the
                  Landlord

              

      

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	
            	5.1.2.4	
              Any
                decrease in the rental value of the Premises attributable to the
                fact that
                VAT (or any tax of a similar nature that may be substituted for or
                levied
                in addition to VAT) is could or may be payable on the rent hereby
                reserved
                or the other monies payable
                hereunder

            

    

     

    
      	
            	5.1.2.5	
              Any
                adverse effect on rent of any temporary works operations or other
                activities on any part of the Property or any neighbouring or adjoining
                property

            

    

     

    
      	
            	5.1.2.6	
              Any
                restrictions relating to rent or security of tenure contained in
                any Act
                of Parliament and any direction thereby given relating to any method
                of
                determining rent

            

    

     

    
      	
            	5.1.3	
              “Open
                Market Rent”
                means the rent (at the rate which would be payable following the
                expiration of any rent free period or period at a concessionary rent
                which
                might be granted in the open market on a new letting of the Premises
                or of
                comparable property) at which the Premises might reasonably be expected
                to
                be let in the open market at the relevant Rent Review Date between
                a
                willing landlord and a willing tenant making the Assumptions and
                disregarding the Disregards

            

    

     

    
      	
            	5.1.4	
              “Rent
                Review Date”
                means each of the dates referred to in the Particulars and “relevant Rent
                Review Date” shall be construed
                accordingly

            

    

     

    
      	
            	5.1.5	
              “Surveyor”
                means any arbitrator or expert appointed to determine the Open Market
                Rent
                payable from any Rent Review Date

            

    

     

    
      	 	
              5.2

            	
              The
                rent first reserved by this Lease shall be reviewed at each Rent
                Review
                    Date in accordance with this Clause 5 and the rent payable hereunder
                shall
                be the highest of:

            

    

     

    
      	
            	5.2.1	
              Open
                Market Rent; or

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
            	5.2.2	
              the
                yearly rent payable hereunder (but for any abatement of rent) immediately
                prior to the relevant Rent Review
                Date

            

    

     

    
      	 	
              5.3

            	
              The
                Open Market Rent shall be such sum as shall be agreed in writing
                between
                the Landlord and the Tenant at any time or in default of agreement
                such
                sum as shall be determined by the Surveyor nominated (in the absence
                of
                agreement) by or on behalf of the President of the Royal Institution
                of
                Chartered Surveyors on the application of either the Landlord or
                the
                Tenant not earlier than six months prior to the relevant Rent Review
                Date

            

    

     

    
      	
            	5.3.1	
              If
                the determination of the Open Market Rent shall be made by the Surveyor
                the Surveyor shall act at the option of the Landlord as
                either:-

            

    

     

    
      	
            	5.3.1.1	
              an
                arbitrator in accordance with the Arbitration Act 1996
                or

            

    

     

    
      
        	
              	5.3.1.2	
                an
                  independent expert and not as an arbitrator or quasi
                  arbitrator

              

      

    

     

    
      	
            	5.3.2	
              If
                the Landlord shall apply to the President of the Royal Institution
                of
                Chartered Surveyors for the appointment of the Surveyor the Landlord
                shall
                specify whether the Surveyor is to act as an arbitrator or as an
                independent expert

            

    

     

    
      	
            	5.3.3	
              If
                the Tenant shall apply to the President of the Royal Institution
                of
                Chartered Surveyors for the appointment of the Surveyor the Tenant
                shall
                notify the Landlord of the Tenant’s
                application

            

    

     

    
      	
            	5.3.4	
              The
                Landlord shall notify the President of the Royal Institution of Chartered
                Surveyors and the Tenant within one month of receipt of notice from
                the
                Tenant in accordance with clause 5.3.3 whether the Surveyor is to
                act as
                an arbitrator or as an independent
                expert

            

    

     

    
      	
            	5.3.5	
              If
                the Landlord does not so notify the President of the Royal Institution
                of
                Chartered Surveyors and the Tenant within one month of receipt of
                such
                notice the Surveyor shall act as an
                arbitrator

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	
            	5.3.6	
              If
                the Surveyor shall act as an arbitrator the arbitration shall take
                place
                in accordance with the Arbitration Act
                1996

            

    

     

    
      
        	
              	5.3.7	
                If
                  the Surveyor shall act as an expert

              

      

    

     

    
      	
            	5.3.7.1	
              the
                fees and expenses of the Surveyor including the cost of his appointment
                shall be borne equally by the Landlord and the Tenant who shall otherwise
                each bear their own costs

            

    

     

    
      	
            	5.3.7.2	
              the
                Surveyor shall afford to the Landlord and the Tenant an opportunity
                to
                make written representations to him and also an opportunity to make
                written counter-representations on any representations made to him
                by the
                other but will not be in any way limited or fettered by such
                representations or counter-representations and will be entitled to
                rely on
                his own judgment and opinion

            

    

     

    
      	
            	5.3.8	
              If
                the Surveyor shall die delay or become unwilling or incapable of
                acting
                the President of the Royal Institution of Chartered Surveyors or
                a person
                acting on his behalf may on the application of either the Landlord
                or the
                Tenant discharge the Surveyor and appoint another in his
                place

            

    

     

    
      	 	
              5.4

            	
              If
                the Tenant shall fail to pay any costs awarded against the Tenant
                in any
                determination by the Surveyor under this clause 5 within 14 days
                of the
                same being demanded by the Surveyor the Landlord shall be entitled
                to pay
                the same and any amount so paid shall be forthwith repaid by the
                Tenant to
                the Landlord with interest thereon at the Interest Rate from the
                date of
                expenditure by the Landlord to the date of
                repayment

            

    

     

    
      	 	
              5.5

            	
              If
                the Open Market Rent payable from any Rent Review Date shall not
                have been
                agreed or ascertained in the manner aforesaid prior to the relevant
                Rent
                Review Date then and until such Open Market Rent is agreed or ascertained
                the Tenant shall continue to pay rent hereunder at the yearly rate
                and at
                such times and in such manner as shall have been applicable immediately
                prior to the relevant Rent Review Date and any rent in excess of
                such rent
                which may later be found to be payable hereunder in respect of the
                period
                from the relevant Rent Review Date until the quarter day next following
                the date of the agreement or ascertainment of the Open Market Rent
                shall
                be forthwith paid to the Landlord on the Open Market Rent being agreed
                or
                ascertained together with interest thereon at a rate of 4 per cent
                below
                the Prescribed Rate on a day to day basis from the relevant Rent
                Review
                Date to the date of actual payment

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5.6

            	
              When
                the amount of the Open Market Rent payable from any Rent Review Date
                shall
                have been agreed or ascertained memoranda thereof shall be endorsed
                on the
                original and counterpart of this Lease and each party shall bear
                their own
                costs

            

    

     

    
      	 	
              5.7

            	
              It
                is hereby expressly agreed and declared
                that:-

            

    

     

    
      	
            	5.7.1	
              a
                notice calling for a rent review may be served in respect of any
                Rent
                Review Date at any time before or after such Rent Review Date
                and

            

    

     

    
      
        	
              	5.7.2	
                nothing
                  shall make time of the essence in respect of any notice served
                  or to be
                  served on any date or any act done or to be done by the Landlord
                  under
                  this clause 5

              

      

    

     

    
      	 	
              5.8

            	
              On
                each and every occasion during the Term that any statute shall prevent
                or
                prohibit either wholly or in part the operation of the above provisions
                for review of the Rent at any Rent Review Date or the normal collection
                and retention of any increase in the Rent or any instalment or part
                thereof by the Landlord then and in each case respectively the Landlord
                may at its option require that:-

            

    

     

    
      	
            	5.8.1	
              the
                operation of such provisions for the review of the Rent at any Rent
                Review
                Date shall be postponed to take effect on the first date thereafter
                upon
                which such operation may occur and such date shall be treated as
                a Rent
                Review Date hereunder and

            

    

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    
      	
            	5.8.2	
              the
                collection of any increase or increases in the Rent shall be postponed
                to
                take effect on the first date thereafter that such increase or increases
                may be collected and/or retained in whole or in part and on as many
                occasions as shall be required to ensure the collection of the whole
                increase and until any statute shall be relaxed either in whole or
                in part
                the Rent shall be the maximum sum from time to time permitted by
                law and
                reserved hereunder

            

    

     

    
      	6.	
              PROVISIONS

            

    

     

    It
      is
      hereby agreed and declared as follows:

     

    
      	 	
              6.1

            	
              Notices

            

    

     

    Any
      notice request consent or approval under this Lease shall be in writing and
      for
      the purpose of service of all notices hereby or by statute authorised to be
      served the regulations as to service of notices contained in Section 196 of
      the
      1925 Act as amended by the Recorded Delivery Service Act 1962 shall be deemed
      to
      be incorporated in this Lease

     

    
      	 	
              6.2

            	
              Forfeiture

            

    

     

    If
      the
      Rent or any of the other rents reserved by this Lease or any part thereof shall
      be in arrear for fourteen days after the same shall become due (whether legally
      demanded or not) or if there shall be a breach of any of the covenants or
      agreements on the part of the Tenant or the Guarantor or conditions contained
      in
      this Lease or if distress or execution is levied on any goods at the Premises
      or
      if any action is commenced or any legal proceedings are started or other steps
      or process taken in relation to the Tenant or the Guarantor:-

     

    
      	
            	6.2.1	
              being
                a company for:-

            

    

     

    
      	
            	6.2.1.1	
              the
                winding up or other dissolution of such company
                (save a voluntary winding up of a solvent company for the purpose
                of
                amalgamation or reconstruction)

            

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	6.2.1.2	
                the
                  appointment of a liquidator trustee receiver administrative receiver
                  or
                  similar officer in respect of the whole or any part of the undertaking
                  or
                  assets of such company

              

      

    

     

    
      	
            	6.2.1.3	
              the
                making of an administration order
                or

            

    

     

    
      	
            	6.2.1.4	
              the
                entering into of a composition in satisfaction of the debts of such
                company or a scheme of arrangement of its affairs
                or

            

    

     

    
      	
            	6.2.1.5	
              the
                striking-off of such company from the register of companies
                or

            

    

     

    
      	
            	6.2.2	
              being
                an individual for: 

            

    

     

    
      	
            	6.2.2.1	
              the
                making of a bankruptcy order in respect of such
                individual

            

    

     

    
      	
            	6.2.2.2	
              the
                making of an interim order for a voluntary arrangement of the affairs
                of
                such individual or

            

    

     

    
      	
            	6.2.2.3	
              the
                entering into a deed of arrangement or other composition in connection
                with the affairs of such individual

            

    

     

    then
      and
      in any such case the Landlord or its agents may forthwith (or at any time
      thereafter) re-enter upon the Premises or any part thereof in the name of the
      whole whereupon the Term shall absolutely determine without prejudice to any
      rights of the Landlord in respect of arrears of the Rent or other subsisting
      breach of any condition or covenant or agreement on the part of the Tenant
      or
      the Guarantor

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6.3

            	
              Rent
                abatement and Termination

            

    

     

    
      	
            	6.3.1	
              In
                case the Premises or any part thereof shall at any time during the
                Term be
                so damaged or destroyed by any of the Insured Risks as to be unfit
                for
                occupation or use then (unless and to the extent that the insurance
                money
                shall be wholly or partially irrecoverable by reason solely or in
                part of
                any act or default on the part of the Tenant or the Tenant’s servants or
                agents or any person at the Premises with the express or implied
                authority
                of the Tenant) the Rent or a fair proportion thereof according to
                the
                nature and extent of the damage sustained shall from the date of
                such
                damage or destruction be suspended until the Premises shall again
                be
                rendered fit for occupation and use or until the expiration of three
                years
                from the date of such destruction or damage (whichever shall be the
                shorter period) and any dispute with reference to this proviso shall
                be
                referred to arbitration in accordance with the Arbitration Act
                1996

            

    

     

    
      	
            	6.3.2	
              If
                at the expiration of the three years specified in clause 6.3.1 the
                Premises have not been reinstated so as to be fit for occupation
                and use
                then either party may at any time thereafter (but before the Premises
                shall have been rendered fit for occupation and use) by notice in
                writing
                to the other party terminate this Lease but without prejudice to
                any right
                of action or remedy of either party in respect of any antecedent
                breach of
                the terms of this Lease

            

    

     

    
      	 	
              6.4

            	
              Compensation

            

    

     

    The
      Tenant shall not be or become entitled to any compensation under the provisions
      of Section 37 of the Landlord and Tenant Act 1954 or any statutory modification
      or re-enactment thereof unless the conditions set forth in Section 38(2) thereof
      shall be satisfied in relation to the Tenant claiming compensation.

     

    
      	 	
              6.5

            	
              Exclusion
                of rights

            

    

     

    Except
      as
      is hereby expressly granted to the Tenant the Tenant shall not be or become
      entitled to any right of way water drainage access to light or air to or for
      the
      Premises or to any other right privilege or easement which would in
      any
      way
      restrict or interfere with the user of any adjoining or neighbouring property
      whether of the Landlord or of any other person for building or any other
      purpose.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6.6

            	
              Non
                waiver

            

    

     

    No
      demand
      for or receipt or acceptance of any part of the rents hereby reserved or any
      payment on account thereof shall operate as a waiver by the Landlord of any
      right which the Landlord may have to forfeit this Lease by reason of any breach
      of covenant by the Tenant and the Tenant shall not in any proceedings for
      forfeiture be entitled to rely on any such demand receipt or acceptance as
      aforesaid as a defence.

     

    
      	 	
              6.7

            	
              Disclaimer

            

    

     

    The
      Landlord shall not be responsible to the Tenant or the Tenant’s licensees
      employees agents customers or visitors for any accident happening or injury
      suffered or damage to or loss of any chattels or property sustained on the
      Premises except in respect of those matters for which the Landlord is expressly
      made responsible under the Defective Premises Act 1972or any Act amending or
      replacing such Act or any regulations or Order made thereunder or which
      otherwise arise by reason of the wrongful act or default of the Landlord or
      its
      servants or agents.

     

    
      	 	
              6.8

            	
              VAT

            

    

     

    In
      every
      case where the Tenant has agreed to reimburse the Landlord in respect of any
      payment made by the Landlord under the Terms of or in connection with this
      Lease
      the Tenant shall also reimburse the Landlord with any VAT paid by the Landlord
      on such payment

     

    
      	 	
              6.9

            	
              Representations

            

    

     

    The
      Tenant acknowledges that this Lease has not been entered into in reliance wholly
      or partly on any statement or representation made by or on behalf of the
      Landlord except any such statement or representation which is expressly set
      out
      in this Lease or which was made by the Landlord’s solicitors in written
      responses to written enquiries raised by the Tenant’s solicitors or is otherwise
      recorded in correspondence passing between such solicitors

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6.10

            	
              Removal
                of Tenant’s Items

            

    

     

    
      	
            	6.10.1	
              The
                Tenant irrevocably appoints the Landlord to be the Tenant’s agent to store
                or dispose of any effects left by the Tenant on the Premises for
                more than
                seven days after the expiry or earlier determination of the Term
                on any
                terms which the Landlord reasonably thinks fit and without the Landlord
                being liable to the Tenant save to account for the net proceeds of
                sale
                less the costs of storage of the sale and of any other expenses and
                commission reasonably incurred by the
                Landlord

            

    

     

    
      	
            	6.10.2	
              The
                Tenant will indemnify the
                Landlord:-

            

    

     

    
      	
            	6.10.2.1	
              against
                any liability incurred by the Landlord to any third party whose property
                shall have been sold by the Landlord in the mistaken belief held
                in good
                faith (which shall be assumed unless the contrary be proved) that
                such
                property belonged to the Tenant and

            

    

     

    
      	
            	6.10.2.2	
              against
                damage occasioned to the Premises and any Losses of the Landlord
                caused by
                or related to’ the presence of the effects in or on the
                Premises

            

    

     

    
      	
            	6.10.3	
              If
                the Landlord having made reasonable efforts is unable to locate the
                Tenant
                the Landlord shall be entitled to retain such proceeds of sale for
                its own
                absolute benefit unless the Tenant shall claim them within six months
                of
                the date upon which the Tenant vacated the
                Premises

            

    

     

    
      	 	
              6.11

            	
              Party
                Walls

            

    

     

    Any
      internal non-load bearing walls dividing the Premises from any other premises
      in
      the Building let or intended to be let to any other tenant of the Landlord
      are
      party walls within the meaning of section 38 of the Law of Property Act 1925
      and
      shall be maintained at the joint expense of the respective estate
      owners

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    
      	 	
              6.12

            	
              Determination
                of Superior Lease

            

    

     

    Where
      any
      issue arising out of under or relating to the Superior Lease which affects
      or
      relates to the provisions of this Lease is determined under the Superior Lease
      it shall also be determined under this Lease and the determination of it under
      the Superior Lease shall bind the Tenant as well as the Landlord for the
      purposes of both the Superior Lease and this Lease

     

    
      	 	
              6.13

            	
              Break
                Clause

            

    

     

    The
      Tenant may determine this Lease on the fourth anniversary of the commencement
      of
      the term (“the Termination Date”) provided that the Tenant shall give to the
      Landlord at least six months prior witten notification of its intention to
      determine this Lease and in such case this Lease shall be determined at the
      Termination Date but without prejudice to any claim by either party against
      the
      other in respect of any antecedent breach of any covenant or condition contained
      in this Lease

     

    
      	7.	
              GUARANTEE

            

    

     

    
      	 	
              7.1

            	
              Guarantee
                and Indemnity

            

    

     

    
      	
            	7.1.1	
              The
                Guarantor guarantees to the Landlord that the Tenant
                shall:-

            

    

     

    
      
        	
              	7.1.1.1	
                pay
                  the rents reserved by this Lease and observe and perform the Tenant’s
                  obligations in this Lease and that if the Tenant fails to pay any
                  of those
                  rents or to observe or perform any of the Tenant’s obligations the
                  Guarantor shall pay or observe and perform them
                  and

              

      

    

     

    
      	
            	7.1.1.2	
              observe
                and perform any obligations the Tenant enters into in an Authorised
                Guarantee Agreement made in respect of this Lease and that if the
                Tenant
                fails to do so the Guarantor shall observe and perform those
                obligations

            

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	7.1.2	
                The
                  Guarantor covenants with the Landlord as a separate and independent
                  primary obligation to indemnify the Landlord against any failure
                  by the
                  Tenant:-

              

      

    

     

    
      	
            	7.1.2.1	
              to
                pay any of the rents reserved by this Lease or to observe or perform
                any
                of the Tenant’s obligations in this Lease
                and

            

    

     

    
      
        	
              	7.1.2.2	
                to
                  observe or perform any of the obligations the Tenant enters into
                  in an
                  Authorised Guarantee
                  Agreement

              

      

    

     

    
      	 	
              7.2

            	
              Guarantor’s
                Liability

            

    

     

    
      	
            	7.2.1	
              The
                liability of the Guarantor under clauses 7.1.1.1 and 7.1.2.1 shall
                continue until the end of the Term or until the Tenant is released
                from
                the Tenant’s obligations in this Lease by virtue of the 1995 Act if
                earlier

            

    

     

    
      	
            	7.2.2	
              The
                liability of the Guarantor shall not be affected
                by:-

            

    

     

    
      	
            	7.2.2.1	
              any
                time or indulgence granted by the Landlord to the Tenant
                or

            

    

     

    
      	
            	7.2.2.2	
              any
                delay or forbearance by the Landlord in enforcing the payment of
                any of
                the rents or the observance or performance of any of the Tenant’s
                obligations in this Lease (or the Tenant’s obligations under an Authorised
                Guarantee Agreement) or in making any demand in respect of any of
                the them
                or

            

    

     

    
      	
            	7.2.2.3	
              any
                refusal by the Landlord to accept any rent or other payment due under
                this
                Lease where the Landlord believes that the acceptance of such rent
                or
                payment may prejudice its ability to re-enter the Premises
                or

            

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    
      	
            	7.2.2.4	
              the
                Landlord exercising any right or remedy against the Tenant for any
                failure
                to pay the rents reserved by this Lease or to observe or perform
                the
                Tenant’s obligations in this Lease (or the Tenant’s obligations under an
                Authorised Guarantee Agreement) or

            

    

     

    
      	
            	7.2.2.5	
              the
                Landlord taking any action or refraining from taking any action in
                connection with any other security held by the Landlord in respect
                of the
                Tenant’s liability to pay the rent reserved by this Lease or observe and
                perform the Tenant’s obligations in this Lease (or the Tenant’s
                obligations under an Authorised Guarantee Agreement) including the
                release
                of any such security or

            

    

     

    
      	
            	7.2.2.6	
              a
                release or compromise of the liability of any one of the persons
                who is
                the Guarantor or the grant of any time or concession to any one of
                them
                or

            

    

     

    
      	
            	7.2.2.7	
              any
                legal limitation or disability on the Tenant or any invalidity or
                irregularity of any of the Tenant’s obligations in this Lease (or the
                Tenant’s obligations under an Authorised Guarantee Agreement) or any
                unenforceability of any of them against the Tenant
                or

            

    

     

    
      	
            	7.2.2.8	
              the
                Tenant being dissolved or being struck off the register of companies
                or
                otherwise ceasing to exist or if the Tenant is an individual by the
                Tenant
                dying or becoming incapable of managing its affairs
                or

            

    

     

    
      	
            	7.2.2.9	
              (without
                prejudice to clause 7.4) the disclaimer of the Tenant’s liability under
                this Lease or the forfeiture of this Lease
                or

            

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    
      	
            	7.2.2.10	
              the
                surrender of part of the Premises except that the Guarantor shall
                not be
                under any liability in relation to the surrendered part in respect
                of any
                period after the surrender or

            

    

     

    
      	
            	7.2.2.11	
              by
                any other act or omission which without this paragraph would release
                the
                Guarantor except an express release under seal of the Guarantor by
                the
                Landlord

            

    

     

    
      	
            	7.2.3	
              If
                the Guarantor comprises more than one party then the liability of
                each of
                the parties making up the Guarantor is joint and
                several

            

    

     

    
      	
            	7.2.4	
              Any
                sum payable by the Guarantor shall be paid without any deduction
                set-off
                or counter-claim against the Landlord or the
                Tenant

            

    

     

    
      	 	
              7.3

            	
              Variations
                and Supplemental Documents

            

    

     

    
      	7.3.1	
              The
                Guarantor shall at the request of the Landlord join in and give its
                consent to the terms of any consent approval variation or other document
                that may be entered into by the Tenant in connection with this Lease
                (or
                an Authorised Guarantee Agreement)

            

    

     

    
      	
            	7.3.2	
              The
                Guarantor shall not be released by any variation of the rents reserved
                by
                or the Tenant’s obligations in this Lease (or the Tenant’s obligations
                under an Authorised Guarantee Agreement) whether or
                not:-

            

    

     

    
      	
            	7.3.2.1	
              the
                variation is material or prejudicial to the Guarantor
                or

            

    

     

    
      	
            	7.3.2.2	
              the
                variation is made in any document
                or

            

    

     

    
      	
            	7.3.2.3	
              the
                Guarantor has consented in writing or otherwise to the
                variation

            

    

     

    
      	
            	7.3.3	
              The
                liability of the Guarantor shall apply to the rents reserved by and
                the
                Tenant’s obligations in this Lease (and the Tenant’s obligations under an
                Authorised Guarantee Agreement) as varied except to the extent that
                the
                liability of the Guarantor is affected by section 18 of the 1995
                Act

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    
      	 	
              7.4

            	
              Guarantor
                to Take a New Lease or Make Payment

            

    

     

    
      	
            	7.4.1	
              If
                this Lease is disclaimed forfeited or prematurely brought to an end
                in any
                other way (except by surrender or the exercise of any break right)
                or the
                Tenant is dissolved struck off the register of companies or otherwise
                ceases to exist and the Landlord gives the Guarantor notice not later
                than
                six months after the Landlord becoming aware of the relevant event
                the
                Guarantor shall enter into a new lease of the Premises on the terms
                set
                out in clause 7.4.2

            

    

     

    
      	
            	7.4.2	
              The
                rights and obligations under the new lease shall take effect from
                the date
                of the forfeiture or disclaimer and the new lease
                shall:-

            

    

     

    
      	
            	7.4.2.1	
              be
                granted subject to the right of any person to have this Lease vested
                in
                them by the court and to the terms on which any such order may be
                made
                subject to the rights of any third party existing at the date of
                the
                grant

            

    

     

    
      	
            	7.4.2.2	
              be
                for a term that expires at the same date as the end of the Term of
                .this
                Lease had the relevant event not
                occurred

            

    

     

    
      	
            	7.4.2.3	
              reserve
                as an initial annual rent an amount equal to the Rent (as may have
                been
                reviewed under clause 5 on the date of the relevant event (subject
                to
                clause 7.5) and which is subject to review on the same terms and
                dates
                provided by this Lease [and]

            

    

     

    
      	
            	7.4.2.4	
              be
                excluded from sections 24 to 28 of the 1954 Act
                and

            

    

     

    
      	
            	7.4.2.5	
              otherwise
                be on the same terms as this Lease (as varied if there has been any
                variation)

            

    

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    
      
        	
              	7.4.3	
                The
                  Guarantor shall pay the Landlord’s solicitors’ costs and disbursements (on
                  a full indemnity basis) and any VAT in respect of them in relation
                  to the
                  new lease and shall execute and deliver to the Landlord a counterpart
                  of
                  the new lease within one month after service of the Landlord’s
                  notice

              

      

    

     

    
      	
            	7.4.4	
              The
                grant of a new lease and its acceptance by the Guarantor shall be
                without
                prejudice to any other rights which the Landlord may have against
                the
                Guarantor or against any other person or in respect of any other
                security
                that the Landlord may have in connection with this
                Lease

            

    

     

    
      	
            	7.4.5	
              The
                Landlord may instead of giving the Guarantor notice pursuant to clause
                7.4.1 but in the same circumstances and within the same time limit
                require
                the Guarantor to pay an amount equal to six months Rent (as may have
                been
                reviewed under clause 5) and the Guarantor shall pay that amount
                on
                demand

            

    

     

    
      	 	
              7.5

            	
              Rent
                at the Date of Forfeiture or
                Disclaimer

            

    

     

    If
      at the
      date of the forfeiture or disclaimer there is a rent review pending under this
      Lease then the initial annual rent to be reserved by the new lease shall be
      the
      open market rent of the Premises at the relevant Rent Review Date as determined
      by the Landlord before the grant of the new lease

     

    
      	 	
              7.6

            	
              Payments
                in Gross and Restrictions on the
                Guarantor

            

    

     

    
      	
            	7.6.1	
              Any
                payment or dividend that the Landlord receives from the Tenant (or
                its
                estate) or any other person in connection with any insolvency proceedings
                or arrangement involving the Tenant shall be taken and applied as
                a
                payment in gross and shall not prejudice the right of the Landlord
                to
                recover from the Guarantor to the full extent of the obligations
                that are
                the subject of this guarantee and
                indemnity

            

    

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    
      	
            	7.6.2	
              The
                Guarantor shall not claim in competition with the Landlord in any
                insolvency proceedings or arrangement of the Tenant in respect of
                any
                payment made by the Guarantor pursuant to this guarantee and indemnity
                and
                if it otherwise receives any money in such proceedings or arrangement
                it
                shall hold that money on trust for the Landlord to the extent of
                its
                liability to the Landlord

            

    

     

    
      	
            	7.6.3	
              The
                Guarantor shall not without the consent of the Landlord exercise
                any right
                or remedy that it may have (whether against the Tenant or any other
                person) in respect of any amount paid or other obligation performed
                by the
                Guarantor under this guarantee and indemnity unless and until all
                the
                obligations of the Guarantor under this guarantee and indemnity have
                been
                fully performed

            

    

     

    
      	 	
              7.7

            	
              Other
                Securities

            

    

     

    
      	
            	7.7.1	
              The
                Guarantor warrants that it has not taken and covenants that it shall
                not
                take any security from or over the assets of the Tenant in respect
                of any
                liability of the Tenant to the Guarantor and if it does take or hold
                any
                such security it shall hold it for the benefit of the
                Landlord

            

    

     

    
      	
            	7.7.2	
              This
                guarantee and indemnity is in addition to any other security that
                the
                Landlord may at any time hold from the Guarantor or the Tenant or
                any
                other person in respect of the liability of the Tenant to pay the
                rents
                reserved by this Lease and to observe and perform the Tenant’s obligations
                in this Lease and it shall not merge in or be affected by any other
                security

            

    

     

    
      	 	
              7.8

            	
              The
                Guarantor shall not be entitled to claim or participate in any other
                security held by the Landlord in respect of the liability of the
                Tenant to
                pay the rents reserved by this Lease or to observe and perform the
                Tenant’s obligations in this Lease

            

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    
      	8.	
              GOVERNING
                LAW

            

    

     

    
      	 	
              8.1

            	
              This
                Lease is governed by and must be construed in all respects in accordance
                with the laws of England and Wales and the parties irrevocably submit
                to
                the jurisdiction of the English
                Courts

            

    

     

    
      	 	
              8.2

            	
              To
                the extent that the Guarantor is entitled to any right of immunity
                from
                any judicial proceedings from the granting of any form of relief
                in any
                proceedings from attachment of its property or assets or from execution
                of
                judgment on the ground of sovereignty or otherwise in respect of
                any
                matter arising out of or relating to its obligations under this Lease
                the
                Guarantor does hereby and will irrevocably waive such right for the
                benefit of the Landlord and agrees not to invoke such right against
                the
                Landlord and consents to the giving of any such relief or the issue
                of any
                such proceedings or process of attachment or execution by the
                Landlord

            

    

     

    
      	9.	
              EXCLUSION
                OF THE 1954 ACT

            

    

     

    
      	 	
              9.1

            	
              The
                parties confirm that:-

            

    

     

    
      
        	
              	9.1.1	
                the
                  Landlord served on the Tenant a notice dated 29 January 2007 in
                  relation
                  to the tenancy created by this Lease (the “Notice”) in a form complying
                  with the requirements of Schedule 1 to the Regulatory Reform (Business
                  Tenancies) (England and Wales) order 2003 (the
                  “Order”)

              

      

    

     

    
      	
            	9.1.2	
              the
                Tenant or a person duly authorised by the Tenant in relation to the
                Notice
                made a statutory declaration dated 31 January 2007 (the “Declaration”) in
                a form complying with the requirements of Schedule 2 of the
                Order

            

    

     

    
      	
            	9.1.3	
              the
                Tenant further confirms that where the Declaration was made by a
                person
                other than the Tenant the declarant was duly authorised by the Tenant
                to
                make the Declaration on the Tenant’s
                behalf

            

    

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    
      	 	
              9.2

            	
              the
                parties confirm that there is no agreement for lease to which this
                Lease
                gives effect

            

    

     

    
      	 	
              9.3

            	
              the
                parties have agreed that the provisions of Sections 24 to 28 (inclusive)
                of the 1954 Act be excluded in relation to this
                Lease

            

    

     

    
      	10.	
              CONTRACTS
                (RIGHTS OF THIRD PARTIES) ACT
                1999

            

    

     

    
      	 	
              10.1

            	
              Unless
                the right of enforcement is expressly provided it is not intended
                that a
                third party should have the right to enforce a provision of this
                Lease
                pursuant to the Contracts (Rights of Third Parties) Act
                1999

            

    

     

    
      	 	
              10.2

            	
              The
                parties may by agreement rescind or vary this Lease without the consent
                of
                a third party to whom the right of enforcement of any of its terms
                has
                been expressly provided

            

    

     

    
      	11.	
              NEW
                OR OLD LEASE

            

    

     

    This
      Lease is a new tenancy for the purposes of Section 1 of the 1995
      Act

     

    EXECUTED
      AS A DEED
      by the
      parties on the date which first appears in this Deed

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      1

    Rights
      Granted

     

    
      	
              1.

            	
              The
                right (in common with the Landlord and all others so authorised by
                them or
                entitled thereto) of passage:-

            

    

     

    
      	 	
              1.1

            	
              On
                foot only and so far as necessary for ingress to and egress from
                the
                Premises in over and along all the entrances lift lobbies landings
                stairways passenger lift and passageways within the Building and
                leading
                thereto shown edged blue on the
                Plan

            

    

     

    
      	 	
              1.2

            	
              With
                or without vehicles and so far as necessary for ingress to and egress
                from
                the Car Parking Spaces within the Car Park in over and along the
                access
                ramp and access ways shown edged brown on the said Plan PROVIDED
                ALWAYS
                THAT

            

    

     

    
      	 	
              1.2.1

            	
              The
                Landlord shall be at liberty at any time and from time to time during
                the
                Term:

            

    

     

    
      	 	
              1.2.1.1

            	
              to
                make such alterations to the said routes as the Landlord shall reasonably
                think fit provided that access to and egress from the Premises is
                not
                impaired to any material extent

            

    

     

    
      	 	
              1.2.1.2

            	
              to
                erect place and maintain in the said routes at its reasonable discretion
                in all respects such signs lighting heating ventilating security
                or other
                equipment kiosks plans reception desks information desks and landscaping
                tables chairs benches and other seating and such other items as the
                Landlord may from time to time
                determine

            

    

     

    
      	 	
              1.2.2

            	
              The
                Landlord shall be at liberty to restrict the use of the said routes
                in
                such manner as the Landlord shall reasonably think fit for the purpose
                of
                carrying out work thereto or in connection with the provision of
                services
                provided always that any such restrictions shall be for as limited
                a
                period as it practicable and shall be imposed in such a manner as
                shall
                cause the least inconvenience to the Tenant or its agents servants
                employees licensees or invitees

            

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              The
                right of free passage and running of water soil air steam smoke gas
                electricity and heating matter and telecommunications in and through
                the
                sewers drains watercourses ducts shafts flues radiators pipes cables
                and
                mains which are upon through or under adjacent premises in the Building
                or
                the Main Building

            

    

     

    
      	
              3.

            	
              The
                right for the Tenant its employees visitors and all persons authorised
                by
                them respectively to use the Car Parking Spaces or such other car
                parking
                space(s) within the Car Park as may be designated in writing from
                time to
                time by the Landlord for the purpose of parking private motor cars
                or
                light vans only

            

    

     

    
      	
              4.

            	
              The
                right to the use of sufficient toilet facilities in the Building
                as shall
                reasonably be designated from time to time in writing by the
                Landlord

            

    

     

    
      	
              5.

            	
              The
                right of support protection and shelter for the Premises from the
                Building
                and the Main Building

            

    

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      2

    Exceptions

     

    Excepting
      and reserving to the Landlord and the tenants and occupiers of any adjoining
      or
      adjacent property and their licensees and all others entitled
      thereto

     

    
      	
              1.

            	
              The
                right for the Landlord their successors in title and assigns and
                all
                persons authorised by them (in common with all others entitled thereto)
                upon at least 7 working days prior written notice (save in case of
                emergency) to enter with or without workmen into and upon the Premises
                and
                all parts thereof for the purpose of inspecting repairing maintaining
                altering cleansing examining or testing the Premises and all parts
                thereof
                and any sewers drains watercourses ducts shafts flues radiators pipes
                cables and mains servicing the same and to make all connections which
                may
                be necessary in relation thereto and for the purpose of carrying
                out any
                work or doing anything whatsoever comprised within the Landlord’s
                obligations herein contained or (whether or not comprised within
                the same)
                for which the Tenant is liable hereunder to make a contribution the
                person
                or persons exercising such right causing as little damage and
                inconvenience as practicable to the Premises and the Tenant and making
                good any damage so caused as soon as possible to the reasonable
                satisfaction of the Tenant

            

    

     

    
      	
              2.

            	
              The
                free and uninterrupted passage of water steam soil gas electricity
                heating
                matter and telephone communications from and to the adjacent buildings
                of
                the Landlord or any neighbouring land by and through all pipes sewers
                conduits cables wires ducts channels radiators and drains which are
                now or
                may hereafter within a period of 80 years from the date hereof be
                in upon
                or under the Premises

            

    

     

    
      	
              3.

            	
              All
                rights of light air way and other easements and rights now and hereafter
                belonging to or enjoyed by any neighbouring or adjacent buildings
                and land
                from or over the Premises

            

    

     

    
      	
              4.

            	
              The
                right at any time hereafter to build upon any land adjoining or near
                to
                the Premises and to alter or rebuild any of the adjoining or neighbouring
                premises or buildings and to let the same for any purpose or otherwise
                deal therewith notwithstanding that light or air to the Premises
                is in any
                such case thereby diminished

            

    

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

       

    

    
      	
              5.

            	
              The
                right of support and shelter and or other easements now or hereafter
                belonging to or enjoyed by all adjacent or neighbouring land or buildings
                of the Landlord or by other parts of the building of which the Premises
                form part

            

    

     

    
      	
              6.

            	
              The
                right to restrict temporarily the exercise of the rights mentioned
                in
                Schedule 1 hereto in connection with any of the services matters
                or things
                mentioned in Schedule 4 hereto but for such minimum period as is
                practicable and in such manner as to cause as little disturbance
                as
                practicable to the Tenant

            

    

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      3

    Encumbrances

     

    Entries
      in the Property and Charges Registers of Title Number SYK452393

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      4

     

    Services

     

    (Part
      I)

     

    
      	
              1.

            	
              Keeping
                the lift, lift car, lift lobbies, stairways, passages and ancillary
                plant
                and machinery and the plant machinery and equipment for the time
                being in
                the lift motor room and the boiler room and such other lifts lift
                cars
                lift lobbies stairways and passageways and ancillary plant machinery
                and
                equipment as from time to time exclusively serve the Building including
                any works of whatsoever nature required to be carried out to the
                same by
                any enactment (which expression in this paragraph includes any and
                every
                Act of parliament already or hereafter to be passed and any and every
                notice direction order regulation bye-law rule and condition already
                or
                hereafter to be made under or in pursuance or deriving effect from
                any
                such Act) in good and substantial repair and decorative condition
                including any renewal or replacement of the same (notwithstanding
                that any
                want of repair may be due to an inherent defect in the same or otherwise
                or to normal wear and tear or deterioration) save to the extent that
                the
                same is the subject of the Tenant’s repairing obligations contained in
                clause 3(9) hereof

            

    

     

    
      	
              2.

            	
              Running
                the Building and the services therein the subject of this Part I
                of this
                Schedule and keeping the lift car lift lobbies and passages in a
                clean and
                tidy condition

            

    

     

    
      	
              3.

            	
              Periodically
                inspecting servicing and maintaining or overhauling repairing or
                replacing
                the lift and plant machinery and equipment appertaining thereto the
                heating domestic hot water sprinkler and any other systems for the
                time
                being installed in the Building and the boilers and ancillary plant
                machinery and equipment within the
                same

            

    

     

    
      	
              4.

            	
              Effecting
                and maintaining at all times such lift boiler and machinery insurance
                as
                the Landlord may in its absolute discretion consider desirable or
                necessary in respect of the said lift and plant machinery and equipment
                appertaining thereto (including without prejudice to the generality
                of the
                foregoing public liability risks relating thereto) such insurance
                to be
                subject to such exclusions and limitations as may be imposed by the
                insurers and to be effected in some insurance office of repute or
                with
                underwriters or through such agency as the Landlord shall from time
                to
                time decide

            

    

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

    
      	
              5.

            	
              The
                provision of electricity gas or other fuel or means of energy for
                the lift
                and ancillary plant machinery and equipment the boiler and heating
                and
                domestic hot water systems and ancillary plant machinery and equipment
                and
                for lighting the lift the entrance hall staircases and landings and
                all
                other parts of the Building not exclusively occupied or intended
                to be
                occupied by a tenant

            

    

     

    
      	6.	
              (a) Wages
                expenses national insurance contributions residential accommodation
                charges (when such accommodation is within the Building or the Main
                Building) and any other expenses of such staff as the Landlord may
                in its
                absolute discretion deem desirable or necessary to enable the Landlord
                to
                provide the services referred to in this Part of this Schedule or
                any of
                them and for the general conduct management and the Twenty-four hour
                security of the Building

            

    

     

    (b) Providing
      such staff accommodation workshops and other rooms within the Building as the
      Landlord may in its absolute discretion deem desirable or necessary for the
      proper provision of the services referred to in this Part of this Schedule
      or
      any of them and for the general conduct management and the twenty-four hour
      security of the Building

     

    
      	
              7

            	
              If
                the Landlord reasonably so desires the establishment and maintenance
                of a
                sinking fund to provide for any anticipated expenditure under this
                Part of
                this Schedule such a fund to be established and operated at its absolute
                discretion in all respects but always in the interest of good estate
                management of the Building

            

    

     

    
      	
              8.

            	
              The
                proper fees costs salaries and expenses of the Landlord and its respective
                surveyors auditors accountants or managing agents for (inter alia)
                the
                provision of any of the works or services referred to in this Part
                of this
                Schedule the computation preparation and audit of the Certificate
                referred
                to in clause 3.3.1 hereof and or the general management of the Building
                and any other costs properly and reasonably incurred in connection
                with
                the same

            

    

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              Any
                proper costs incurred by the Landlord in connection with any maintenance
                or other contracts entered into in respect of any of the matters
                contained
                or referred to in this Part of this Schedule including (but without
                prejudice to the generality of the foregoing) any proper costs incurred
                in
                the preparation negotiation and completion of any such
                contracts

            

    

     

    
      	10.	
              (a) The
                proper fees of the Landlord’s surveyors architects quantity surveyors and
                engineers for preparing any drawings and specifications required
                by the
                Landlord for the carrying out of any of the services referred to
                in this
                Part of this Schedule and for the supervision of
                works

            

    

     

    (b) Any
      proper legal fees incurred by the Landlord in connection with the management
      or
      administration of the Building or the service charge in connection with any
      enquiries or disputes relating to the same

     

    
      	
              11.

            	
              All
                rates charges assessments impositions and other outgoings payable
                by the
                Landlord in respect of all parts of the Main Building not exclusively
                occupied or intended to be occupied by a
                tenant

            

    

     

    
      	
              12.

            	
              Any
                proper costs incurred by the Landlord in connection with the provision
                (if
                any) of such general indicator board or boards within the Main Building
                as
                the Landlord in its reasonable discretion deem desirable or necessary
                for
                the better enjoyment and use of the Building by the tenants and occupiers
                of the same

            

    

     

    
      	
              13.

            	
              Providing
                repairing maintaining and renewing all reasonable furniture carpets
                soft
                furnishings floral displays and other decorations at any time in
                or about
                any part or parts of the Main Building not exclusively occupied or
                intended to be occupied by a tenant

            

    

     

    
      	
              14.

            	
              Providing
                such accommodation as the Landlord may in its reasonable discretion
                deem
                desirable or necessary for the purpose of housing any vehicles and
                equipment employed or required in connection with the supply servicing
                maintaining overhauling repairing and replacing of any of the services
                referred to in this Part of this Schedule
                hereto

            

    

     

    
      	
              15.

            	
              The
                proper cost of taking all steps deemed desirable or expedient by
                the
                Landlord for complying with making representations against or otherwise
                contesting the incidence of the provisions of any legislation or
                orders or
                statutory requirements thereunder concerning town planning public
                health
                highways streets drainage or other matters relating or alleged to
                relate
                to the Main Building and for which the Tenant is not directly liable
                hereunder

            

    

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

    
      	
              16.

            	
              Such
                value added tax as shall be attributable to the services or heads
                of
                expenditure hereinbefore referred to (or any of them) and other matters
                referred to in the Part of this Schedule or in the Lease and which
                shall
                be properly chargeable to the Tenant under the provisions of the
                Value
                Added Tax Act 1994 or any ;statutory modification or re-enactment
                thereof
                for the time being in force and any regulations or orders made or
                having
                effect thereunder

            

    

     

    
      	
              17.

            	
              Providing
                such computer hardware software and ancillary equipment and also
                such
                communication and security systems within the Building as the Landlord
                may
                in its absolute discretion deem desirable or necessary for the better
                running management enjoyment use and security of the
                Building

            

    

     

    
      	
              18.

            	
              Providing
                such other services materials goods and works as shall in the opinion
                of
                the Landlord or its agents be -reasonably necessary for the maintenance
                reconstruction renewal repair protection and management of the
                Building

            

    

     

    
      	
              19.

            	
              Providing
                such other plant materials services goods and works as the Landlord
                may in
                its reasonable discretion deem desirable or
                necessary

            

    

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    (Part
      II)

     

    
      	
              1.

            	
              Keeping
                the main walls roofs foundations and all other structural or
                non-structural parts of the Main Building and the exterior and curtilage
                thereof and all plant machinery equipment fixtures and fittings for
                the
                time being therein thereon or thereunder including without prejudice
                to-the generality of the foregoing all plant machinery fixtures and
                fittings for the time being located in the switchgear room shown
                cross-hatched mauve on the plans annexed hereto and also including
                any
                works of whatsoever nature required to be carried out by any enactment
                (which expression in this paragraph has the same meaning as is assigned
                to
                it in paragraph 1 of part I of this Schedule) in good and substantial
                repair and decorative condition (notwithstanding that any want of
                repair
                may be due to an inherent defect in the same or otherwise or to normal
                wear and tear or deterioration) save to the extent that the same
                is the
                subject of the Tenant’s repairing obligations contained in clause 3.9 of
                this Lease (or are intended to be similarly provided for under the
                provisions of the lease or leases to be granted in respect of the
                remaining lettable accommodation within the Main Building) or are
                provided
                for in part I of this Schedule

            

    

     

    
      	
              2.

            	
              Running
                and periodically inspecting servicing and maintaining or overhauling
                repairing and replacing in the interests of good estate management
                any
                facilities or systems for the time being installed in the Main Building
                the use of which are common to the Building and any other premises
                comprised within the Main Building

            

    

     

    
      	
              3.

            	
              Effecting
                and maintaining at all times insurance of the Main Building (including
                the
                lift shafts thereof) and all fixtures and fittings plant machinery
                and
                equipment from time to time therein but excluding all the lifts and
                machinery ancillary thereto situate therein subject to such exclusions
                and
                limitations as may be imposed by the insurers in some insurance office
                of
                repute or with Underwriters or through such agency as the Landlord
                shall
                from time to time decide in such sum as shall in the Landlord’s reasonable
                opinion represent the full reinstatement value thereof including
                architects’ and surveyors’ and other professional fees and incidental
                expenses against loss or damage by fire lightning explosion aircraft
                riot
                civil commotion strikers locked out workers persons taking part in
                labour
                disturbances malicious persons earthquake storm tempest flood bursting
                overflowing discharging or leaking of water tanks apparatus or pipes
                impact by road vehicles or animals subsidence and/or heave or landslip
                and
                all other insured risks and against public liability arising out
                of or in
                connection with any accident explosion collapse or breakdown and
                against
                employers liability and against loss of three years’ rent from time to
                time payable hereunder and against loss of the amounts payable by
                the
                Tenant and other tenants of the Main Building towards the costs expenses
                and outgoings of the kind mentioned in parts I and II of this Schedule
                for
                the period of three years and against all other risks as the Landlord
                shall reasonably deem necessary (“the insured risks”) and the Landlord
                will:-

            

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              make
                available to the Tenant on request at the offices of the Landlord
                or its
                surveyors a copy of the policy for inspection on fourteen days reasonable
                written notice and

            

    

     

    
      	 	
              (b)

            	
              procure
                that the interest of the Tenant is noted on the
                policy

            

    

     

    
      	 	
              (c)

            	
              notify
                the Tenant of any changes in the risks covered by the
                policy

            

    

     

    
      	
              4.

            	
              Save
                insofar as the same is provided for in paragraph 5 of Part l of this
                Schedule all electricity gas or other fuel and means of energy for
                any
                equipment comprised within the Main Building supplying services or
                facilities the use of which is common to the Building and any other
                premises comprised within the
                Building

            

    

     

    
      	5.	
              (a) Wages
                expenses National Insurance Contributions residential accommodation
                charges (where such accommodation is within the Building or the Main
                Building) and any other expenses for such staff as the Landlord may
                in its
                absolute discretion deem desirable or necessary to enable the Landlord
                to
                provide the services referred to in this Part of this Schedule or
                any of
                them and for the general conduct management and the twenty-four hour
                security of the Main Building

            

    

     

    (b) Providing
      such staff accommodation workshops and other rooms within the Main Building
      as
      the Landlord may in its absolute discretion deem desirable or necessary for
      the
      proper provision of the services referred to in this Part of this Schedule
      or
      any of them and for the general conduct management and the twenty-four hour
      security of the Main Building

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    
      	
              6.

            	
              If
                the Landlord reasonably so desires the establishment and maintenance
                of a
                sinking fund to provide for any anticipated expenditure under this
                Part of
                this Schedule such a fund to be established and operated at its absolute
                discretion in all respects but always in the interest of good estate
                management of the Main Building

            

    

     

    
      	
              7.

            	
              Fire
                protection periodical inspection servicing hire maintenance repair
                and
                renewal of the fire alarm system and any fire appliances or apparatus
                of
                whatsoever nature within the Main
                Building

            

    

     

    
      	
              8.

            	
              Without
                prejudice to the generality of paragraph 1 of this Part of this Schedule
                the cost of decorating the exterior of the Main Building and of cleaning
                and repointing the exterior stone and brickwork
                thereof

            

    

     

    
      	
              9.

            	
              The
                proper fees costs salaries and expenses of the Landlord’s surveyors staff
                auditors accountants or managing agents for (inter alia) the provision
                of
                any of the works or services referred to in this Part of this Schedule
                the
                computation preparation and audit of any Certificate in relation
                thereto
                and for the general management of the Main Building and any other
                proper
                costs incurred in connection with the
                same

            

    

     

    
      	
              10.

            	
              Any
                proper costs incurred by the Landlord in connection with any maintenance
                contracts entered into in respect of the plant apparatus and equipment
                and
                other services contained or supplied within the Main Building including
                (but without prejudice to the generality of the foregoing) any proper
                costs incurred in the preparation negotiation and completion of any
                such
                maintenance contracts

            

    

     

    
      	11.	
              (a) The
                proper fees of the Landlord’s’ surveyors architects quantity surveyors and
                engineers for preparing any drawings and specifications reasonably
                required by the Landlord for the carrying out of any of the services
                referred to in this Part of this Schedule and for the supervision
                of the
                works

            

    

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

     

    (b) Any
      proper and reasonable legal fees incurred by the Landlord in connection with
      the
      management or administration of the Main Building or the service charge
      including in connection with any enquiries or disputes to the same

     

    
      	
              12.

            	
              All
                rates charges assessments impositions and other outgoings payable
                by the
                Landlord in respect of all parts of the Main Building not exclusively
                occupied or intended to be occupied by a
                tenant

            

    

     

    
      	
              13.

            	
              Providing
                such refuse containers in such locations within the Main Building
                as the
                Landlord in its absolute discretion deem desirable or necessary to
                keep
                the Main Building in a clean and tidy condition and any proper costs
                incurred in connection with the regular collection of refuse from
                the same
                or in connection with the installation within the Main Building of
                a
                suitable compactor for use in connection with the disposal of rubbish
                should the Landlord in its absolute discretion deem desirable or
                necessary

            

    

     

    
      	
              14.

            	
              Providing
                such accommodation as the Landlord may in its absolute discretion
                deem
                desirable or necessary for the purpose of housing any vehicles and
                equipment employed or required in connection with the supply servicing
                maintaining overhauling repairing and replacing of any of the services
                referred to in this Part of this
                Schedule

            

    

     

    
      	
              15.

            	
              The
                proper cost of taking all steps deemed desirable or expedient by
                the
                Landlord for complying with making representations against or otherwise
                contesting the incidence of the provisions of any legislation or
                orders or
                statutory requirements thereunder concerning town planning public
                health
                highways streets drainage or other matters relating or alleged to
                relate
                to the Main Building and for which the Tenant is not directly liable
                hereunder

            

    

     

    
      	
              16.

            	
              Such
                value added tax as shall be attributable to the services or heads
                of
                expenditure hereinbefore referred to (or any of them) and other matters
                referred to in this Part of this Schedule or in the Lease and shall
                be
                properly chargeable to the Tenant under the provisions of the Value
                Added
                Tax Act 1994 or any statutory modification or re-enactment thereof
                for the
                time being in force and any regulations or orders made or having
                effect
                thereunder

            

    

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    
      	
              17.

            	
              Providing
                such computer hardware software and ancillary equipment and also
                such
                communication and security systems within the Main Building as the
                Landlord may in its absolute discretion deem desirable or necessary
                for
                the better running management enjoyment use and security of the Main
                Building

            

    

     

    
      	
              18.

            	
              Providing
                such other plant material services goods and works as the Landlord
                may in
                its reasonable discretion deem desirable or
                necessary

            

    

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      5

     

    Authorised
      Guarantee Agreement

     

    THIS
      AUTHORISED GUARANTEE AGREEMENT is made on 200[ ]

    BETWEEN:

     

    
      	(1)	
              [
                ] LIMITED
                (Company Number [ ]) whose registered office
                is

            

    

     

    
      at[
        ]
        (Tenant)

    

     

    
      	(2)	
              [
                ] LIMITED
                (Company Number [ ]) whose registered office
                is

            

    

     

    at
      [ ]
      (Landlord)

     

    
      	1.	
              PARTICULARS

            

    

     

    
      	 	
              1.1

            	
              “Assignee”
                means [

            

    

     

    
      	
            	1.2	
              “Lease”
                means the lease of the Premises dated [ ]
                and made between [ (1) and [ ] (2) and includes any deeds and documents
                supplemental to it or entered into pursuant to
                it

            

    

     

    
      	 	
              1.3

            	
              “Premises”
                means [ ] as more particularly described in the
                Lease

            

    

     

    
      	2.	
              DEFINITIONS
                AND INTERPRETATON

            

    

     

    In
      this
      Agreement unless the context otherwise requires:-

     

    
      	
            	2.1	
              Definitions:-

            

    

     

    “Assignment”
means
      the assignment of the Lease to the Assignee in accordance with the terms of
      a
      licence to assign completed immediately before this Agreement and made between
      the Landlord (1) the Tenant (2) and the Assignee (3)

     

    “Landlord”
means
      the person so named as a party to this Agreement and any other person entitled
      to the immediate reversion to the Lease

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    “Liability
      Period”
means
      the period starting on completion of the Assignment and ending at the end of
      the
      term of the Lease or if earlier on the date on which the Assignee assigns this
      Lease or is released from its obligations under the Lease by the 1995
      Act

     

    “Particulars”
means
      the descriptions and terms in the preceding section of this Agreement headed
      Particulars which form part of this Agreement

     

    “VAT”
means
      Value Added Tax or any tax of a similar nature substituted for or levied in
      addition to it

     

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

     

    
      	
            	2.2	
              Interpretation

            

    

     

    
      	 	
              2.2.1

            	
              If
                the Landlord or •the Tenant is more than one person then their covenants
                are joint and several

            

    

     

    
      	 	
              2.2.2

            	
              Any
                reference to a statute includes any modification, extension or
                re-enactment of it and any orders regulations directions schemes
                and rules
                made under it

            

    

     

    
      	 	
              2.2.3

            	
              Reference
                in this Agreement to any clause or schedule without further designation
                shall be construed as a reference to the clause or schedule of this
                Agreement so numbered

            

    

     

    
      	 	
              2.2.4

            	
              The
                index and clause headings in this Agreement are for ease of reference
                only

            

    

     

    
      	3.	
              AUTHORISED
                GUARANTEE

            

    

     

    
      	 	
              3.1

            	
              In
                consideration of the Landlord consenting to the
                Assignment:-

            

    

     

    
      	 	
              3.1.1

            	
              The
                Tenant guarantees to the Landlord that the Assignee will pay the
                rents
                reserved by the Lease and comply with its other obligations under
                the
                Lease throughout the Liability Period and that if the Assignee does
                not do
                so that the Tenant will

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.1.2

            	
              The
                Tenant covenants with the Landlord(- as a separate and independent
                primary
                obligation to the obligation contained in clause 3.1.1 to indemnify
                the
                Landlord against all losses costs damages and expenses suffered or
                incurred by it due to any failure by the Assignee to comply with
                any of
                its obligations under the Lease at any time during the Liability
                Period

            

    

     

    
      	 	
              3.2

            	
              The
                Tenant’s liability under clauses 3.1.1 and 3.1.2 shall not be affected by
                any disclaimer of the Assignee’s liability under the Lease any time or
                indulgence granted to the Assignee or anything else which but for
                this
                provision would release the Tenant
                -

            

    

     

    
      	 	
              3.3

            	
              If
                the Lease is brought to an end in any way (except by surrender or
                service
                of a valid break notice) during the Liability Period and the Landlord
                requires it within six months afterwards the Tenant will at its cost
                accept a new lease of the Premises from the date of the premature
                determination until the original date of contractual determination
                of the
                Lease on the terms of and at the rents reserved by the
                Lease

            

    

     

    
      	 	
              3.4

            	
              If
                the Landlord’s right to require the Tenant to accept a new lease arises
                under clause 3.2 but for any reason the Landlord does not require
                the
                Tenant to do so the Tenant shall pay to the Landlord on demand an
                amount
                equal to the rent and other monies which would have been payable
                under the
                Lease for the period starting on the date of the event giving rise
                to the
                Landlord’s right and ending on the date six months after the date or if
                earlier the date on which the Premises are re-let and any rent free
                period
                or period at a concessionary rent under the new letting
                expires

            

    

     

    
      	
            	3.5	
              The
                Tenant

            

    

     

    
      	 	
              3.5.1

            	
              Confirms
                that its liability under this Agreement is to the Landlord and its
                successors in title without any need for an express
                assignment

            

    

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3.5.2

            	
              Waives
                any right which it may otherwise have to require the Landlord to
                enforce
                any other remedy available to it or to proceed against the Assignee
                before
                proceeding against the Tenant

            

    

     

    
      	 	
              3.5.3

            	
              Shall
                not make any claim or exercise any right against the Assignee in
                competition with the Landlord

            

    

     

    
      	 	
              3.5.4

            	
              Shall
                not be entitled to participate in or stand in the Landlord’s place in
                respect of any other security held by the Landlord in respect of
                the
                Assignee’s obligations under the
                Lease

            

    

     

    
      	4.	
              COSTS

            

    

     

    The
      Tenant covenants with the Landlord to pay to it on demand on a full indemnity
      basis all costs charges and expenses (including solicitors’ surveyors’ and other
      professional fees) incurred by it in connection with this Agreement including
      (without limitation) those arising from the consideration of the application
      leading to this Agreement and its preparation negotiation and completion and
      obtaining any consent, approval or information from anyone else.

     

    
      	5.	
              VAT

            

    

     

    All
      money
      payable by and taxable supplies made to the Tenant under this Agreement are
      exclusive of VAT and the Tenant will pay all VAT properly chargeable in respect
      of them at the time when the money is due or the supply is made

     

    
      	6.	
              AUTHORISED
                GUARANTEE AGREEMENT
                PROTECTION

            

    

     

    If
      anything in this Agreement prevents it from being an Authorised Guarantee
      Agreement within the meaning of the 1995 Act whether by virtue of section 15(5)
      of the 1995 Act or otherwise it shall be read and construed as if the words
      concerned were omitted with any necessary consequential amendments being made
      so
      that it always constitutes a valid authorised guarantee agreement within the
      meaning of the 1995 Act

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    
      	7.	
              CONTRACTS
                (RIGHTS OF THIRD PARTIES) ACT
                1999

            

    

     

    A
      person
      who is not a party to this Agreement has no right under the Contracts (Rights
      of
      Third Parties) Act 1999 to enforce any of its terms but this does not affect
      any
      right or remedy of a third party which exists or is available apart from that
      Act

    

      EXECUTED
        AS A DEED
        by the
        parties on the date which first appears in this Deed

    

    

      
        	
                SIGNED
                  as a DEED and delivered

              	
                )

              	 
	 	 	 
	
                by
                  PAUL WILLIAMS

              	
                )

              	 
	 	 	 
	
                in
                  the presence of

              	
                )

              	 
	 	 	 
	 	 	 
	
                SIGNED
                  as a DEED and delivered

              	
                )

              	 
	 	 	 
	
                by
                  CLARE WILLIAMS

              	
                )

              	 
	 	 	 
	
                in
                  the presence of

              	
                )

              	 
	 	 	 
	 	 	 
	
                Executed
                  as a deed and delivered

              	
                )

              	 
	 	 	 
	
                By
                  ZOO DIGITAL PUBLISHING LIMITED

              	
                )

              	 
	 	 	 
	
                acting
                  by

              	
                )

              	 
	 	 	 
	 	 	
                Director

              
	 	 	 
	 	 	
                Director/Secretary

              

      

    

     

    
      
        
        

      

      
        77Unassociated Document

     

    CONFIDENTIAL

     

     

    CONFIDENTIAL
      FIRST RENEWAL LICENSE AGREEMENT 

     

    FOR
      NINTENDO DS

     

    (EEA,
      AUSTRALIA, AND NEW ZEALAND)

     

    THIS
      FIRST RENEWAL LICENSE AGREEMENT ("Agreement") is entered into between NINTENDO
      CO., LTD. ("NINTENDO") at 11-1 Kamitoba Hokotate-cho, Minami-ku, Kyoto, Japan
      601-8501, Attn: General Manager, International Division, International Business
      Department (Fax: 81.75.662.9620), and ZOO DIGITAL PUBLISHING LIMITED
      ("LICENSEE") at Ground Floor, Arundel Court, 177 Arundel Street, Sheffield
      S1
      2NU, U.K.; Attn: Barry Hatch, Managing Director (b.hatch@zoodigitalpublishing.com).
      (Contact: Claire Curle - C.Curle@zoodigitalpublishing.com)
      (Fax:
      (44) 114.263.6031). NINTENDO and LICENSEE agree as follows:

     

    
      	1.	
              RECITALS

            

    

     

    1.1    
      NINTENDO
      designs, develops, manufactures, markets and sells advanced design, high-quality
      video game systems, including the Nintendo DS system. 

     

    1.2    
      LICENSEE
      desires use of the highly proprietary programming specifications, development
      tools, unique and valuable security technology, trademarks, copyrights and
      other
      valuable intellectual property rights of NINTENDO, which rights are only
      available for use under the terms of a license agreement, to develop, have
      manufactured, advertise, market and sell video game software for play on the
      Nintendo DS system. 

     

    1.3    
      NINTENDO
      is willing to grant a license to LICENSEE on the terms and conditions set forth
      in this Agreement.

     

    1.4    
      By
      a
      prior agreement between the parties effective May 25, 2005 (hereinafter the
      "Initial Agreement"), NINTENDO granted to LICENSEE the right to develop video
      game software compatible with the DS System, embodying and using the Licensed
      Intellectual Properties. The Initial Agreement is due to expire on May 25,
      2008.
      The parties desire to enter into a renewal agreement (hereinafter the
      "Agreement") effective as of the expiration date of the Initial Agreement,
      to
      continue the relationship between the parties without interruption, with the
      Agreement consisting of the terms and conditions set forth herein.

     

    
      	2.	
              DEFINITIONS

            

    

     

    2.1    
      "Artwork"
      means the text and design specifications for the Game Card Label and Printed
      Materials in the format specified by NINTENDO in the Guidelines.

     

    2.2    
      "Bulk
      Goods" means the Game Cards with Game Card Labels affixed.

     

    2.3    
      "Confidential
      Information" means the information described in Section 8.1.

     

    2.4    
      "Development
      Tools" means the development kits, programming tools, emulators and other
      materials of NINTENDO, or third parties authorized by NINTENDO, that may be
      used
      in the development of Games under this Agreement.

     

    2.5    
      "Effective
      Date" means the expiration date of the Initial Agreement. 

     

    2.6    
      "Finished
      Product(s)" means the fully assembled Game Card with a Game Card label, Printed
      Materials, and packed in a plastic storage case or other form of protective
      packaging .

     

    2.7    
      "Game
      Card(s)" means custom card media specifically manufactured under the terms
      of
      this Agreement for play on the Nintendo DS system, incorporating semiconductor
      components in which a Game has been stored.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    2.8    
      "Game(s)"
      means any interactive programs (including source and object/binary code)
      developed to be compatible with the Nintendo DS system.

     

    2.9    
      "Guidelines"
      means the then-current version of the "Nintendo DS Guidelines"; "Licensee
      Packaging Guidelines", pertaining to the layout, trademark usage and
      requirements of the Game Card label, instruction manual and Game Card packaging;
      "Marketing Materials"; "Nintendo DS Development Manual"; "Trademark Guidelines";
      "Guidelines on Ethical Content"; "Nintendo DS Software Submission Requirements",
      together with other guidelines that NINTENDO may provide to LICENSEE from time
      to time. The Guidelines on Ethical Content are attached as Annex A, and the
      remainder of the Guidelines have been provided to LICENSEE independent of this
      Agreement. The Guidelines may be changed or updated from time to time without
      notice, and the versions current from time to time will be available on request
      from NINTENDO.

     

    2.10   "Independent
      Contractor" means any individual or entity that is not an employee of LICENSEE,
      including any independent programmer, consultant, contractor, board member
      or
      advisor.

     

    2.11   "Intellectual
      Property Rights" means individually, collectively or in any combination,
      Proprietary Rights owned, licensed or otherwise held by NINTENDO that are
      associated with the development, manufacturing, advertising, marketing or sale
      of the Licensed Products, including, without limitation, (a) registered and
      unregistered trademarks and trademark applications used in connection with
      Games
      for the Nintendo DS system including "NintendoTM", "Nintendo DSTM", and the
      "Official Nintendo Seal of QualityTM", (b) select trade dress associated
      with the Nintendo DS system and licensed Games for play thereon,
      (c) Proprietary Rights in the Security Technology incorporated into the
      Game Cards, (d) rights in the Development Tools for use in developing the
      Games, excluding, however, rights to use, incorporate or duplicate select
      libraries, protocols and/or sound or graphic files associated with the
      Development Tools which belong to any third party and for which no additional
      licenses or consents are required, (e) patents, patent applications,
      utility models, design registrations, or copyrights which may be associated
      with
      the Game Cards, (f) copyrights in the Guidelines, and (g) other
      Proprietary Rights of NINTENDO in the Confidential Information.

     

    2.12   "Licensed
      Products" means (a) Bulk Goods, and/or (b) Finished Products after being
      assembled and packaged with the Printed Materials in accordance with the
      Guidelines.

    
       

      2.13  
        "Marketing
        Materials" means marketing, advertising or promotional materials developed
        by or
        for LICENSEE (or subject to LICENSEE's approval) that promote the sale of
        the
        Licensed Products, including, but not limited to, television, radio and on-line
        advertising, point-of-sale materials (e.g. posters, counter-cards), package
        advertising, print media and all audio or video content other than the Game
        that
        is to be included on the Game Card.

       

      2.14  
        "NDA"
        means the non-disclosure agreement providing for the protection of Confidential
        Information related to the Nintendo DS system previously entered into between
        NINTENDO and/or NOA and LICENSEE.

       

      2.15  
        "NOA"
        means NINTENDO's subsidiary, Nintendo of America Inc., of Redmond, Washington,
        USA.

       

      2.16  
        "Notice"
        means any notice permitted or required under this Agreement. All Notices
        shall
        be sufficiently given when (a) personally served or delivered, or
        (b) transmitted by facsimile, with an original sent concurrently by mail,
        or (c) deposited, carriage prepaid, with a guaranteed air courier service,
        in each case addressed as stated herein, or addressed to such other person
        or
        address either party may designate in a Notice, or (d) transmitted by
        e-mail with an express written acknowledgement of receipt sent personally
        by or
        on behalf of the recipient (which shall include any automated reply). Notice
        shall be deemed effective upon the earlier of actual receipt or two (2) business
        days after transmittal, provided, however, any Notice received after the
        recipient's normal business hours will be deemed received on the next business
        day.

       

      2.17  
        "Price
        Schedule" means the then-current version of NINTENDO's schedule of purchase
        prices and minimum order quantities for the Finished Products and the Bulk
        Goods. The Price Schedule has been provided to LICENSEE independent of this
        Agreement and may be changed or updated from time to time without notice,
        and
        the version current from time to time will be available on request from
        NINTENDO.

       

      
        
           

        

        
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        CONFIDENTIAL

         

         

      

      2.18  
        "Printed
        Materials" means the Game Card label and title page, user instruction booklet,
        poster, warranty card and LICENSEE inserts incorporating the Artwork, together
        with a precautions booklet and optional printed materials.

       

      2.19  
        "Proprietary
        Rights" means any rights or applications for rights to the extent recognized
        anywhere in the Territory relating to the Nintendo DS System, and owned,
        licensed or otherwise held in patents, patent applications, trademarks, service
        marks, copyrights and neighboring rights, semiconductor chip layouts or masks,
        trade secrets, utility models, registered design rights, unregistered design
        rights, database rights, get up, trade dress, moral rights and publicity
        rights,
        together with all inventions, discoveries, ideas, know-how, data, information,
        processes, methods, procedures, formulas, drawings and designs, computer
        programs, software source code and object code, and all amendments,
        modifications, and improvements thereto for which such patents, patent
        applications, trademarks, service marks, copyrights and neighboring rights,
        semiconductor chip layouts or masks, trade secrets, utility models, registered
        design rights, unregistered design rights, database rights, get up, trade
        dress,
        moral rights or publicity rights may exist or may be sought and obtained
        in the
        future.

       

      2.20  
        "Reverse
        Engineer(in)" means, without limitation, (a) the x-ray, electronic scanning
        or physical or chemical stripping of semiconductor components, (b) the
        disassembly, decompilation, decryption or simulation of object code or
        executable code, or (c) any other technique designed to extract source code
        or
        facilitate the duplication of a program or product. 

       

      2.21  
        "Security
        Technology" means the highly proprietary security features of the Nintendo
        DS
        system and the Licensed Products to minimize the risk of unlawful copying
        and
        other unauthorized or unsafe usage, including, without limitation, any security
        signature, bios, data scrambling, password, hardware security apparatus,
        watermark, hologram, encryption, digital rights management system, copyright
        management information system, proprietary manufacturing process or any feature
        which obstructs piracy, limits unlawful, unsafe, or unauthorized use, or
        facilitates or limits compatibility with other hardware, software, accessories
        or peripherals with respect to a video game system other than the Nintendo
        DS
        system, or limits distribution outside of the Territory.

       

      2.22  
        "Sole
        License" means a license under which only the licensor and a single licensee
        can
        utilize the subject matter of the license.

       

      2.23  
        "Term"
        means three (3) years from the Effective Date.

       

      2.24  
        "Territory"
        means any and all countries within the European Economic Area; namely Albania,
        Austria, Belgium, Bosnia, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark,
        Estonia, Finland, France, Germany, Greece, Herzegovina, Hungary, Iceland,
        Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia,
        Malta,
        Montenegro, the Netherlands, Norway, Poland, Portugal, Romania, Serbia,
        Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The Territory
        also
        includes Australia, New Zealand, Russia, Switzerland and Turkey. NINTENDO
        may
        add additional countries to the Territory upon written notice to
        LICENSEE.

       

      2.25  
        "TM"
        means trad

    

     

    
      	3.	
              GRANT
                OF LICENSE; LICENSEE
                RESTRICTIONS

            

    

     

    3.1    
      Limited
      License Grant.
      For the
      Term and for the Territory, NINTENDO grants to LICENSEE a nonexclusive,
      nontransferable, limited license to use the Intellectual Property Rights for
      the
      purpose of and to the extent necessary, to develop (or have developed on
      LICENSEE's behalf) Games for manufacture, advertising, marketing and sale by
      LICENSEE as Licensed Products, subject to the terms and conditions of this
      Agreement. This license is royalty-free. 

     

    3.2    
      LICENSEE
      Acknowledgement.
      LICENSEE's use of the Intellectual Property Rights shall not create any right,
      title or interest of LICENSEE therein. LICENSEE is authorized and permitted
      to
      develop Games, and have manufactured, advertise, market and sell Licensed
      Products, only for play on the Nintendo DS system and only in accordance with
      this Agreement. In the event that LICENSEE challenges NINTENDO's ownership
      or
      the validity of the Intellectual Property Rights, NINTENDO may terminate this
      Agreement without any notice or procedure.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    3.3    
      Restrictions
      on License Grant.
      NINTENDO does not guarantee that the hardware for the Nintendo DS system is
      distributed throughout the Territory. Moreover, the present limited license
      to
      LICENSEE does not extend to the use of the Intellectual Property Rights for
      the
      following purposes:

     

        (a) grant
      access to, distribute, transmit or broadcast a Game by electronic means or
      by
      any other means known or hereafter devised, including, without limitation,
      by
      wireless, cable, fiber optic, telephone lines, microwave, radiowave, computer
      or
      other device network, except (a) as a part of wireless Game play on and
      among Nintendo DS systems, (b) for the purpose of facilitating Game
      development under the terms of this Agreement, or (c) as otherwise approved
      in writing by NINTENDO. LICENSEE shall use reasonable security measures,
      customary within the high technology industry, to reduce the risk of
      unauthorized interception or retransmission of any Game transmission. No right
      of retransmission shall attach to any authorized transmission of a Game;

     

        (b) authorize
      or permit any online activities involving a Game, including, without limitation,
      multi-player, peer-to-peer or online play, except as expressly permitted by
      NINTENDO in writing; 

     

        (c) modify,
      install or operate a Game on any server or computing device for the purpose
      of
      or resulting in the rental, lease, loan or other grant of remote access to
      the
      Game; 

     

        (d) emulate,
      interoperate, interface or link a Game for operation or use with any hardware
      or
      software platform, accessory, computer language, computer environment, chip
      instruction set, consumer electronics device, telephone, cellphone, PDA, or
      other device, including for purposes of data interchange, password usage or
      interactive video game play, other than a Nintendo DS system, an application
      approved by NINTENDO, or the Development Tools;

     

        (e) emulate
      any past, current or future NINTENDO brand video game system, or any portion
      thereof, in software or hardware or any combination thereof;

     

        (f) embed,
      incorporate, or store a Game in any media or format except the Game Card format
      utilized by the Nintendo DS system, except as may be necessary as a part of
      the
      Game development process under this Agreement;

     

        (g) design,
      implement or undertake any process, procedure, program or act designed to
      disable, obstruct, circumvent or otherwise diminish the effectiveness or
      operation of the Security Technology;

     

        (h) utilize
      the Intellectual Property Rights to design or develop any interactive video
      game
      program, except as authorized under this Agreement;

     

        (i) manufacture
      or reproduce a Game developed under this Agreement, except through NINTENDO;
      or

     

        (j) Reverse
      Engineer or assist in Reverse Engineering all or any part of the Nintendo DS
      system, including the hardware, software (embedded or not), the Development
      Tools or the Security Technology, except as specifically permitted under the
      laws and regulations applicable in the Territory.

     

    
      
         

      

      
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    CONFIDENTIAL

     

     

     

    3.4    
      Development
      Tools.
      NINTENDO and NOA may lease, loan or sell Development Tools, including any
      improvements made by NINTENDO or NOA from time to time, to LICENSEE to assist
      in
      the development of Games under this Agreement on such terms as may be agreed
      between the parties. Ownership and use of any Development Tools, whether
      provided by NINTENDO or NOA, prior to or during the Term hereof, shall be
      subject to the terms of this Agreement and any separate license or purchase
      agreement required by NINTENDO or any third-party licensing the Development
      Tools. LICENSEE acknowledges the respective interests of NINTENDO, and in the
      case of third-party Development Tools, such third parties, in and to the
      Proprietary Rights associated with the Development Tools. LICENSEE's use of
      the
      Development Tools shall not create any right, title or interest of LICENSEE
      therein. Any license to LICENSEE to use the Development Tools does not extend
      to: (a) use of the Development Tools for any purpose except the design and
      development of Games under this Agreement, (b) reproduction or creation of
      derivatives of the Development Tools, except in association with the development
      of Games under this Agreement, (c) Reverse Engineering of the Development
      Tools (except as specifically permitted under the laws and/or regulations
      applicable in the Territory), or (d) selling, leasing, assigning, lending,
      licensing, encumbering or otherwise transferring the Development Tools. Any
      tools developed or derived by LICENSEE as a result of a study of the
      performance, design or operation of any NINTENDO Development Tools shall be
      considered a derivative work of the Intellectual Property Rights, but may be
      retained and utilized by LICENSEE in connection with this Agreement. Unless
      LICENSEE can demonstrate that such derivative work has one or more applications
      that are independent of and separate from the Intellectual Property Rights
      ("Independent Applications"), it shall be deemed to have granted NOA and
      NINTENDO an indefinite, worldwide, royalty-free, transferable and Sole License
      (including the right to sub-license) to such derivative work. To the extent
      that
      LICENSEE can demonstrate one or more Independent Applications, LICENSEE shall
      be
      deemed to have granted to NOA and NINTENDO a royalty-free and transferable
      non-exclusive License (including the right to sub-license) in relation to such
      Independent Applications for the Term. Any tools developed or derived by
      LICENSEE as a result of a study of the performance, design or operation of
      any
      third-party Development Tools shall be governed by the terms of the license
      agreement applicable to such Development Tools. Notwithstanding any referral
      or
      information provided or posted regarding third-party Development Tools, NINTENDO
      and NOA make no representations or warranties with regard to any such
      third-party Development Tools. LICENSEE acquires and utilizes third-party
      Development Tools at its own risk.

     

    3.5    
      In-Game
      Advertising.
      LICENSEE shall not include advertising or produce placements for products or
      services of LICENSEE or third parties, whether in the Game, as separate content
      (e.g., a trailer), or in the Printed Materials, without NINTENDO's prior written
      consent.

     

    
      	4.	
              SUBMISSION
                OF GAME AND ARTWORK FOR
                APPROVAL

            

    

     

    4.1 Development
      and Sale of the Games.
      LICENSEE may develop Games and have manufactured, advertise, market and sell
      Licensed Products for play on the Nintendo DS system only in accordance with
      this Agreement. 

     

    4.2 Delivery
      of Completed Game.
      Upon
      completion of a Game, LICENSEE shall deliver a prototype of the Game to NINTENDO
      in a format specified in the Guidelines. Delivery shall be made in accordance
      with the methods set forth in the Guidelines. Each submission shall include
      such
      other information or documentation deemed necessary by NINTENDO, including,
      without limitation, a complete set of written user instructions, a complete
      description of any security holes, backdoors, time bombs, cheats, "Easter eggs"
      or other hidden features or characters in the Game and a complete screen text
      script. NINTENDO shall promptly evaluate the Game with regard to its technical
      compatibility with and error-free operation on the Nintendo DS system. LICENSEE
      must establish that the Game and any other content included on the Game Card
      complies with the guidelines of the Pan European Game Information System (PEGI),
      the Unterhaltungssoftware Selbstkontrolle (USK), the Office of Film and
      Literature Classification (OFLC), or any other national or regional game rating
      system that NINTENDO may accept, as applicable. LICENSEE shall be responsible
      for the submission of the Game to the appropriate national or regional game
      rating organization and shall provide NINTENDO with a statement or certificate
      in writing from the relevant organization, confirming the rating for the Game.
      Where any such game has been rated as being suitable only for players aged
      18
      and over (or an equivalent rating), LICENSEE must submit a certificate in
      writing that confirms the game is rated as no higher than "M" (Mature) by the
      Entertainment Software Rating Board (ESRB) of the U.S. In addition, NINTENDO
      reserves the right to require LICENSEE to provide NINTENDO with ***

     

    ***
      Confidential treatment requested.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    4.3    
      Approval
      of Completed Game.
      NINTENDO shall, within a reasonable period of time after receipt, approve or
      disapprove each submitted Game. If a Game is disapproved, NINTENDO shall specify
      in writing the reasons for such disapproval and state what corrections or
      improvements are necessary. After making the necessary corrections or
      improvements, LICENSEE shall submit a revised Game to NINTENDO for approval.
      NINTENDO shall not unreasonably withhold or delay its approval of any Game.
      The
      approval of a Game by NINTENDO shall not relieve LICENSEE of its sole
      responsibility for the development, quality and operation of the Game or in
      any
      way create any warranty for a Game or a Licensed Product by NINTENDO.

     

    4.4    
      Submission
      and Approval of Artwork.
      Prior
      to submitting a completed Game to NINTENDO under Section 4.2, LICENSEE shall
      prepare and submit to NINTENDO all Artwork for the proposed Licensed Product.
      Within ten (10) business days of receipt, NINTENDO shall approve or disapprove
      the Artwork. If any Artwork is disapproved, NINTENDO shall specify in writing
      the reasons for such disapproval and state what corrections or improvements
      are
      necessary. After making the necessary corrections or improvements, LICENSEE
      shall submit revised Artwork to NINTENDO for approval. NINTENDO shall not
      unreasonably withhold or delay its approval of any Artwork. The approval of
      the
      Artwork by NINTENDO shall not relieve LICENSEE of its sole responsibility for
      the development and quality of the Artwork or in any way create any warranty
      for
      the Artwork or any Licensed Product by NINTENDO. All Artwork must be approved
      prior to submitting an order for the Bulk Goods or Finished Products, and
      LICENSEE shall not produce any Printed Materials for commercial distribution
      until such Artwork or Finished Products has been approved by
      NINTENDO.

     

    4.5    
      Artwork
      for Bulk Goods.
      If
      LICENSEE intends to submit an order for Bulk Goods, all Artwork and other
      materials to be included with the Licensed Product shall be submitted to
      NINTENDO in accordance with Section 4.4 herein. No Printed Materials shall
      be
      produced by LICENSEE until such Artwork has been approved by NINTENDO under
      Section 4.4 herein. 

     

    
      	5.	
              ORDER
                PROCESS, PURCHASE PRICE, PAYMENT AND DELIVERY
                

            

    

     

    5.1    
      Submission
      of Orders by LICENSEE.
      After
      receipt of NINTENDO's approval for a Game, LICENSEE may at any time submit
      written purchase orders to NINTENDO for any approved Licensed Product title.
      The
      purchase order shall specify whether it is for Finished Products or Bulk Goods.
      The terms and conditions of this Agreement shall take precedence over any
      contrary or additional terms of such purchase order or any other written
      documentation or verbal instructions from LICENSEE. All orders shall be subject
      to acceptance by NINTENDO or its designee. 

     

    5.2    
      Purchase
      Price and Minimum Order Quantities.
      The
      purchase price and minimum order quantities for Finished Products and Bulk
      Goods
      shall be set forth in NINTENDO's then current Price Schedule. Unless otherwise
      specifically provided for, the purchase price includes the cost of manufacturing
      the Licensed Products. No taxes, duties, import fees or other tariffs related
      to
      the development, manufacture, import, marketing or sale of the Licensed Products
      except for taxes imposed on NINTENDO's income are included in the purchase
      price
      and all such taxes are the responsibility of LICENSEE. The Price Schedule is
      subject to change by NINTENDO at any time without Notice, provided, however,
      that any price increase shall be applicable only to purchase orders submitted,
      paid for, and accepted by NINTENDO after the date of the price
      increase.

     

    5.3    
      Payment.
      Upon
      placement of an order with NINTENDO, LICENSEE shall pay the full purchase price
      to NINTENDO either (a) by tender of an irrevocable letter of credit in
      favor of NINTENDO (or its designee) and payable at sight, issued by a bank
      acceptable to NINTENDO and confirmed, if requested by NINTENDO, at LICENSEE's
      expense, or (b) in cash, by wire transfer to an account designated by
      NINTENDO. All letters of credit shall comply with NINTENDO's written
      instructions and all associated banking charges shall be for LICENSEE's
      account.

     

    5.4    
      Delivery
      of Licensed Products.
      NINTENDO shall deliver the Finished Products and Bulk Goods ordered by LICENSEE
      to LICENSEE FOB Japan, CIP European Destination or ex-warehouse Grossostheim,
      per the terms in the Price Schedule. Also per the Price Schedule, the minimum
      shipping quantity is ***. Upon mutual consent of NINTENDO and LICENSEE, orders
      may be delivered in partial shipments with a minimum shipment quantity as
      specified in the Price Schedule. Such orders shall be delivered only to
      countries within the Territory. Title to the Licensed Products shall vest in
      accordance with the terms of the applicable letter of credit or, in the absence
      thereof, per Incoterms 2000.

     

    ***Confidential
      treatment requested

    

    
      
        
           

        

        
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      CONFIDENTIAL

       

       

    

    
      	6.	
              MANUFACTURE
                OF THE LICENSED
                PRODUCT

            

    

     

    6.1    
      Manufacturing.
      Given
      NINTENDO's ownership of the valuable Intellectual Property Rights, NINTENDO
      shall be the exclusive source for the manufacture of the Game Cards, and shall
      control all aspects of the manufacturing process, including the selection of
      the
      locations and specifications for any manufacturing facilities, determination
      of
      materials and processes, appointment of suppliers and subcontractors, and
      management of all work-in-progress.

     

    6.2    
      Manufacture
      of the Licensed Products.
      Upon
      acceptance by NINTENDO of a purchase order from LICENSEE for an approved
      Licensed Product title and receipt of payment as provided for under Section
      5.3
      herein, NINTENDO (through its suppliers and subcontractors) shall arrange for
      the manufacture of Finished Product or Bulk Goods, as specified in LICENSEE's
      purchase order. In this regard, LICENSEE shall submit to NINTENDO certain
      technical information as set forth in a questionnaire entitled "Software
      Submission Requirements" which has been provided to LICENSEE by
      NINTENDO.

     

    6.3    
      Security
      Features.
      The
      final release version of the Game, Game Cards and Printed Materials shall
      include such Security Technology as NINTENDO, in its sole discretion, deems
      necessary or appropriate to (a) reduce the risk of unlawful copying or
      other unlawful, unsafe or unauthorized uses, (b) protect the Proprietary
      Rights of NINTENDO and of LICENSEE, (c) promote consumer confidence, and
      (d) increase the quality, reliability or operation of the Nintendo DS
      system.

     

    6.4    
      Printed
      Materials for Bulk Goods.
      Upon
      delivery to LICENSEE of Bulk Goods, LICENSEE shall assemble the Printed
      Materials and Bulk Goods into the Licensed Products in accordance with the
      Guidelines. No other materials, items, products or packaging may be included
      or
      assembled with the Bulk Goods without NINTENDO's prior written consent. Bulk
      Goods may be sold or distributed by LICENSEE only when fully assembled in
      accordance with the Guidelines.

     

    6.5    
      Sample
      Printed Materials and Bulk Goods.
      Within
      a reasonable period of time after LICENSEE's assembly of an initial order for
      Bulk Goods title, LICENSEE shall provide NINTENDO with (a) one (1) sample
      of the fully assembled, Licensed Product, and (b) five (5) samples of the
      LICENSEE-produced Printed Materials for such Licensed Product.

     

    6.6    
      Retention
      of Sample Licensed Products by NINTENDO.
      NINTENDO may, at its own expense, manufacture reasonable quantities of the
      Game
      Cards or the Licensed Products, and make a reasonable number of copies of the
      Printed Materials, not to exceed fifty (50) copies, to be used for archival
      purposes, legal proceedings against infringers of the Intellectual Property
      Rights, and for other lawful purposes (but not for resale). 

     

    
      	7.	
              MARKETING
                AND ADVERTISING

            

    

     

    7.1   
      Approval
      of Marketing Materials.
      LICENSEE represents and warrants that the Printed Materials and the Marketing
      Materials shall be of high quality and comply with (a) the Guidelines,
      (b) the guidelines of the PEGI, and (c) all applicable laws,
      regulations and official codes of practice in those jurisdictions in the
      Territory where they will be used or distributed. All LICENSEE controlled
      websites featuring the Games shall adopt a privacy policy that complies with
      all
      applicable local laws, regulations and official guidelines. To protect
      NINTENDO's valuable Intellectual Property Rights, to prevent the dilution of
      NINTENDO's trade marks, and to avoid use of the licensed Intellectual Property
      Rights giving rise to any implication of NINTENDO's sponsorship, association,
      approval or endorsement where this is not the case, prior to actual use or
      distribution, LICENSEE shall submit to NINTENDO for review samples of all
      proposed Marketing Materials. NINTENDO shall, within ten (10) business days
      of
      receipt, approve or disapprove the quality of such samples. If any of the
      samples are disapproved, NINTENDO shall specify the reasons for such disapproval
      and state what corrections and/or improvements are necessary. After making
      the
      necessary corrections and/or improvements, LICENSEE shall submit revised samples
      for approval by NINTENDO. No Marketing Materials shall be used or distributed
      by
      LICENSEE without NINTENDO's prior written approval. NINTENDO shall not
      unreasonably withhold or delay its approval of any proposed Marketing
      Materials.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    7.2   
      No
      Bundling.
      To
      protect NINTENDO's valuable Intellectual Property Rights, to prevent the
      dilution of NINTENDO's trademarks, and to avoid use of the licensed Intellectual
      Property Rights giving rise to any implication of NINTENDO's sponsorship,
      association, approval or endorsement where this is not the case, LICENSEE shall
      not, without NINTENDO's prior written approval, market or distribute any
      Licensed Products that have been bundled with (a) any peripheral designed
      for use with the Nintendo DS system that has not been licensed or approved
      in
      writing by NINTENDO, provided that LICENSEE is responsible for ensuring that
      any
      such peripheral shall comply with all applicable laws and regulations in the
      Territory, or (b) any other product or service where NINTENDO's
      sponsorship, association, approval or endorsement might be suggested by bundling
      the products or services.

     

    7.3   
      Warranty
      and Repair.
      LICENSEE shall provide the original consumer with a minimum one hundred eighty
      (180) day (or such longer minimum period as may be required by applicable law)
      limited warranty on all Licensed Products. LICENSEE shall also provide
      reasonable product service, including out-of-warranty service, for all Licensed
      Products. LICENSEE shall make such warranty and repair information available
      to
      consumers as required by applicable law.

     

    7.4   
      Business
      Facilities.
      LICENSEE agrees to develop and maintain sufficient customer service, either
      directly or through a third party, to adequately support the Licensed Products.
      

     

    7.5   
      No
      Sales Outside the Territory.
      LICENSEE represents and warrants that it shall not market, sell, offer to sell,
      import or distribute the Licensed Products outside the Territory, or within
      the
      Territory when LICENSEE has actual or constructive knowledge that a subsequent
      destination of the Licensed Product is outside the Territory.

     

    7.6   
      Defects
      and Recall.
      In the
      event of a material programming defect in a Licensed Product that would, in
      NINTENDO's reasonable judgment, significantly impair the ability of a consumer
      to play the Game, NINTENDO may, after consultation with LICENSEE, require the
      LICENSEE to recall the Licensed Product and undertake suitable repairs or
      replacements.

     

    7.7   
      NINTENDO
      Promotional Materials, Publications and Events.
      With a
      view to improving the competitiveness of the video game products consisting
      of
      Nintendo video game systems and services and compatible software published
      by
      LICENSEE and others, at its option and expense, NINTENDO may (a) insert in
      the Printed Materials for the Licensed Products promotional materials concerning
      publications and promotions for such video game products, (b) utilize
      screen shots, Artwork and information regarding the Licensed Products in all
      NINTENDO-published or officially licensed magazines, official NINTENDO-sponsored
      web-sites,
      or other
      advertising, promotional or marketing media that promotes such video game
      products, services or programs, and (c) exercise public performance rights
      in the Games and use related trademarks and Artwork in connection with
      NINTENDO-sponsored contests, tours, conventions, trade shows, press briefings
      and similar events that promote such video game products.

     

    7.8   
      Nintendo
      Gateway System.
      To
      promote and increase demand for games on Nintendo video game systems, NINTENDO
      licenses a system (the "Nintendo Gateway System") in various non-coin activated
      commercial settings such as commercial airlines, cruise ships, rail systems
      and
      hotels, where customers play games on specially adapted Nintendo video game
      systems. If NINTENDO identifies a Game for possible license on the Nintendo
      Gateway System, the parties agree to conduct good faith negotiations toward
      including the Game in the Nintendo Gateway System.

     

    
      	8.	
              CONFIDENTIAL
                INFORMATION

            

    

     

    8.1    
      Definition.
      "Confidential Information" means information provided to LICENSEE by NINTENDO
      or
      any third party working with NINTENDO or NOA relating to the hardware and
      software for the Nintendo DS system or the Development Tools, including, but
      not
      limited to, (a) all current or future information, know-how, techniques,
      methods, tools, emulator hardware or software, software development
      specifications, proprietary manufacturing processes and/or trade secrets,
      (b) any information on inventions, patents or patent applications,
      (c) any business, legal, marketing, pricing or sales data or information,
      and (d) any other information or data relating to development, design,
      operation, manufacturing, marketing or sales. Confidential Information shall
      include all confidential information disclosed, whether in writing, orally,
      visually, or in the form of drawings, technical specifications, software,
      samples, pictures, models, recordings, or other tangible items which contain
      or
      manifest, in any form, the above listed information. Confidential Information
      shall not include (i) data and information that were in the public domain
      prior to LICENSEE's receipt of the same hereunder, or that subsequently becomes
      part of the public domain by publication or otherwise, except by the wrongful
      act or omission of LICENSEE or any third party, (ii) data and information
      that LICENSEE can demonstrate, through written records kept in the ordinary
      course of business, were in its possession without restriction on use or
      disclosure, prior to its receipt of the same hereunder and were not acquired
      directly or indirectly from NINTENDO or NOA under an obligation of
      confidentiality that is still in force, and (iii) data and information that
      LICENSEE can show were received by it from a third party who did not acquire
      the
      same directly or indirectly from NINTENDO or NOA and to whom LICENSEE has no
      obligation of confidentiality.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    8.2    
      Disclosures
      Required by Law.
      LICENSEE shall be permitted to disclose Confidential Information if such
      disclosure is required by an authorized governmental or judicial entity,
      provided that LICENSEE shall notify NINTENDO at least thirty (30) days prior
      to
      such disclosure, or such lesser period as may be needed to comply with such
      requirement. LICENSEE shall use its best efforts to limit the disclosure to
      the
      greatest extent possible, consistent with LICENSEE's legal obligations, and
      if
      required by NINTENDO, shall cooperate in the preparation and entry of
      appropriate court orders limiting the persons to whom Confidential Information
      may be disclosed and the extent of disclosure of such Confidential
      Information.

     

    8.3    
      Disclosure
      and Use.
      NINTENDO may provide LICENSEE with highly confidential development information,
      Guidelines, Development Tools, systems, specifications and related resources
      and
      information constituting and incorporating the Confidential Information to
      assist LICENSEE in the development of Games. LICENSEE agrees to maintain all
      Confidential Information as strictly confidential and to use such Confidential
      Information only in accordance with this Agreement. LICENSEE shall limit access
      to the Confidential Information to LICENSEE's employees having a strict need
      to
      know, and shall advise such individuals of their obligation of confidentiality
      as provided herein. LICENSEE shall require each such individual to retain in
      confidence the Confidential Information pursuant to a written non-disclosure
      agreement with LICENSEE. LICENSEE shall use its best efforts to ensure that
      individuals who are permitted hereunder to work with or otherwise have access
      to
      Confidential Information shall not disclose or make any unauthorized use of
      the
      Confidential Information. 

     

    8.4    
      No
      Disclosure to Independent Contractors.
      LICENSEE shall not disclose the Confidential Information, including without
      limitation the Guidelines and Intellectual Property Rights, to any Independent
      Contractor, nor permit any Independent Contractor to perform or assist in
      development work for a Game, without the prior written consent of NINTENDO.
      Any
      Independent Contractor seeking access to Confidential Information shall be
      required to enter into a written non-disclosure agreement with NINTENDO or
      NOA
      that is no less restrictive than the terms of this Section 8, prior to
      receiving any access to or disclosure of the Confidential Information from
      either LICENSEE or NINTENDO. 

     

    At
      LICENSEE's option, the written non-disclosure agreement may be with LICENSEE
      rather than NINTENDO or NOA, in which case the form and substance of the
      non-disclosure agreement must be acceptable to NINTENDO. Also, in such case
      LICENSEE shall provide to NINTENDO on a continuing basis a listing of all
      Independent Contractors who have received or been granted access to Confidential
      Information along with copies of the applicable written non-disclosure
      agreements. In addition, LICENSEE shall take all reasonable measures to ensure
      that its Independent Contractors fulfill the requirements of the applicable
      written non-disclosure agreements.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    LICENSEE
      shall use its best efforts to ensure that its employees and Independent
      Contractors working with or otherwise having access to Confidential Information
      shall not disclose or make unauthorised use of the Confidential Information.
      LICENSEE agrees to *** .  

     

    8.5    
      Agreement
      Confidentiality.
      LICENSEE agrees that the terms, conditions and contents of this Agreement shall
      be treated as Confidential Information. Any public announcement or press release
      regarding this Agreement or the release dates for Games developed by LICENSEE
      under this Agreement shall be subject to NINTENDO's prior written approval.
      The
      parties may disclose this Agreement (a) to accountants, banks, financing
      sources, lawyers, parent companies and related parties under substantially
      equivalent confidentiality obligations, (b) in connection with any formal
      legal proceeding for the enforcement of this Agreement, (c) as required by
      the regulations of the government agencies in the Territory that regulate
      publicly-traded securities, provided that all Confidential Information shall
      be
      edited from such disclosures to the maximum extent allowed by such government
      agencies, (d) in response to lawful process, subject to court order
      limiting the persons to whom Confidential Information may be disclosed and
      the
      extent of disclosure of such Confidential Information, approved in advance
      by
      NINTENDO, and (e) to a third party proposing to enter into a business
      transaction with LICENSEE or with NINTENDO, but only to the extent reasonably
      necessary for carrying out the proposed transaction and only under terms of
      mutual confidentiality. 

     

    8.6    
      Notification
      Obligations.
      LICENSEE shall promptly notify NINTENDO of the unauthorized use or disclosure
      of
      any Confidential Information by LICENSEE or any of its employees, or any
      Independent Contractor or its employees, and shall promptly act to recover
      any
      such information and prevent further breach of the obligations herein. The
      obligations of LICENSEE set forth herein are in addition to and not in lieu
      of
      any other legal remedy that may be available to NINTENDO under this Agreement
      or
      applicable law.

     

    8.7    
      Continuing
      Effect of the NDA.
      The
      terms of this Section 8 supplement the terms of the NDA, which shall remain
      in effect. In the event of a conflict between the terms of the NDA and this
      Agreement, the provisions of this Agreement shall control.

     

    
      	9.	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    9.1    
      LICENSEE's
      Representations and Warranties.
      LICENSEE represents and warrants that:

    
       

          (a)
        it is
        a duly organized and validly existing corporation and has full authority
        to
        enter into this Agreement and to carry out the provisions hereof,

       

          (b)
        the
        execution, delivery and performance of this Agreement by LICENSEE does not
        conflict with any agreement or understanding to which LICENSEE may be bound,
        and

       

          (c)
        excluding
        the Intellectual Property Rights, LICENSEE is either (i) the sole owner of
        all right, title and interest in and to the trademarks, copyrights and all
        other
        Proprietary Rights incorporated into the Game or the Artwork used in association
        with the development, advertising, marketing and sale of the Licensed Products
        or the Marketing Materials, or (ii) the holder of such rights, including
        trademarks, copyrights and all other Proprietary Rights which belong to any
        third party but have been licensed from such third party or an agent or licensee
        of a third party such as a collecting society, by LICENSEE, as are necessary
        for
        the development, advertising, marketing or sale of the Licensed Products
        and the
        Marketing Materials under this Agreement. 

    

     

    9.2    
      NINTENDO's
      Representations and Warranties.
      NINTENDO represents and warrants that:

    
       

          (a)
        it is
        a duly organized and validly existing corporation and has full authority
        to
        enter into this Agreement and to carry out the provisions hereof, and

    

     

    ***Confidential
      treatment requested

     

    
      
         

      

      
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        CONFIDENTIAL

         

         

      

          (b)
        the
        execution, delivery and performance of this Agreement by NINTENDO does not
        conflict with any agreement or understanding to which NINTENDO may be bound.
        

    

     

    9.3    
      INTELLECTUAL
      PROPERTY RIGHTS DISCLAIMER BY NINTENDO.
      NINTENDO
      (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES, LICENSORS,
      SUPPLIERS AND SUBCONTRACTORS), EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND
      WARRANTIES CONCERNING THE SCOPE OR VALIDITY OF THE INTELLECTUAL PROPERTY RIGHTS.
      NINTENDO (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES,
      LICENSORS, SUPPLIERS AND SUBCONTRACTORS), EXPRESSLY DISCLAIMS WARRANTY THAT
      THE
      DESIGN, DEVELOPMENT, ADVERTISING, MARKETING OR SALE OF THE LICENSED PRODUCTS
      OR
      THE USE OF THE INTELLECTUAL PROPERTY RIGHTS BY LICENSEE WILL NOT INFRINGE UPON
      ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER PROPRIETARY RIGHTS OF A THIRD PARTY.
      TO THE MAXIMUM EXTENT LEGALLY PERMISSIBLE, ANY WARRANTY, CONDITION OR TERM
      THAT
      MAY BE PROVIDED IN ANY APPLICABLE PROVISION OF ANY LAW OR REGULATION IN THE
      TERRITORY GOVERNING COMMERCIAL ACTIVITY, OR ANY OTHER COMPARABLE LAW OR
      REGULATION IS EXPRESSLY DISCLAIMED. LICENSEE HEREBY
      ASSUMES THE RISK OF INFRINGEMENT.

     

    9.4    
      GENERAL
      DISCLAIMER BY NINTENDO.
      NINTENDO
      (ON
      ITS
      OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES, LICENSORS, SUPPLIERS
      AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS
      ANY AND ALL WARRANTIES WITH RESPECT TO THE LICENSED PRODUCTS, INCLUDING, WITHOUT
      LIMITATION, THE SECURITY TECHNOLOGY. LICENSEE PURCHASES AND ACCEPTS ALL LICENSED
      PRODUCTS ON AN "AS IS" AND "WHERE IS" BASIS. NINTENDO
      (ON
      ITS
      OWN BEHALF AND ON BEHALF OF ITS AFFILIATES, SUBSIDIARIES, LICENSORS, SUPPLIERS
      AND SUBCONTRACTORS) EXPRESSLY DISCLAIMS
      ALL WARRANTIES, CONDITIONS OR OTHER TERMS OF ANY KIND UNDER THE APPLICABLE LAWS
      OF ANY COUNTRY, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF
      MERCHANTABILITY OR FITNESS FOR A GENERAL OR PARTICULAR PURPOSE. 

     

    9.5    
      LIMITATION
      OF LIABILITY.
      TO THE
      MAXIMUM EXTENT PERMITTED BY LAW, NEITHER NINTENDO NOR ITS SUBSIDIARIES,
      AFFILIATES, LICENSORS, SUBCONTRACTORS OR SUPPLIERS SHALL BE LIABLE FOR LOSS
      OF
      PROFITS, OR FOR ANY SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES
      OF
      LICENSEE OR ITS CUSTOMERS ARISING OUT OF OR RELATED TO THIS AGREEMENT,
      INCLUDING, WITHOUT LIMITATION, THE BREACH OF THIS AGREEMENT BY NINTENDO, THE
      MANUFACTURE OF THE LICENSED PRODUCTS OR THE USE OF THE LICENSED PRODUCTS ON
      ANY
      NINTENDO VIDEO GAME SYSTEM BY LICENSEE OR BY ANY END USER.

     

    
      	10.	
              INDEMNIFICATION
                

            

    

     

    10.1   Claim.
      "Claim"
      means any and all third-party claims, demands, actions, suits, proceedings,
      losses, liabilities, damages, expenses and costs, including, without limitation,
      reasonable attorneys' fees and costs, and any expenses incurred in the
      settlement or avoidance of any such claim. "Claim" shall specifically include
      civil, criminal, and regulatory matters, and those brought by any third party
      (including governmental authorities or agencies) under any national,
      subnational, or multinational law or regulation, or the rules of any
      self-regulatory body (e.g., PEGI).

     

    10.2  
      LICENSEE's
      Indemnification.
      LICENSEE shall indemnify and hold harmless NINTENDO (and any of its affiliates,
      subsidiaries, licensors, suppliers, officers, directors, employees or agents)
      from any Claims which are alleged to result from or be in connection
      with:

    
       

          (a)
        a
        breach by LICENSEE of any of the provisions in this Agreement, 

       

          (b)
        any
        infringement of a third party's Proprietary Rights as a result of the design,
        development, advertising, marketing, sale or use of any aspect of the Licensed
        Products or the Marketing Materials, 

       

      
        
           

        

        
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        CONFIDENTIAL

         

         

      

          (c)
        a defect,
        failure to warn, bodily injury (including death) or other personal or property
        damage arising out of, or in connection with, the design, development,
        advertising, marketing, sale or use of any aspect of the Licensed Products,
        and

       

          (d)
        the
        design, development, advertising, marketing, sale or use of any aspect of
        the
        Licensed Products or the Marketing Materials. 

    

     

    NINTENDO
      and LICENSEE shall give prompt Notice to the other of any Claim which is or
      which may be subject to indemnification under this Section 10. With respect
      to
      such Claim, LICENSEE, as indemnitor, shall have the right to select counsel
      and
      to control the defense and/or settlement thereof. NINTENDO may, at its own
      expense, participate in such action or proceeding with counsel of its own
      choice. LICENSEE shall not enter into any settlement of any Claim in which
      (i) NINTENDO has been named as a party, or (ii) Intellectual Property
      Rights have been asserted without NINTENDO's prior written consent. NINTENDO
      shall provide reasonable assistance to LICENSEE in its defense of any Claim.
      

     

    10.3  
      LICENSEE's
      Insurance.
      LICENSEE shall, at its own expense, obtain a comprehensive policy of general
      liability insurance (including coverage for advertising injury and product
      liability Claims) from an insurance company rated at least B+ by A.M. Best
      or a
      comparable rating by another recognized insurance rating organization. Such
      policy of insurance shall be in an amount of not less than the equivalent of
      ***
      on a per-occurrence basis and shall provide for adequate protection against
      any
      Claims. Such policy shall name NINTENDO as an additional insured and shall
      specify that it may not be canceled without thirty (30) days' prior written
      Notice to NINTENDO. A Certificate of Insurance shall be provided to NINTENDO
      not
      later than the date of the initial order of Licensed Products under this
      Agreement or within thirty (30) days of the Effective Date of this Agreement,
      whatever date occurs later. If LICENSEE fails to provide NINTENDO with such
      Certificate of Insurance or fails to maintain such insurance at any time during
      the Term and for a period of two (2) years thereafter, NINTENDO, in its sole
      discretion may: (a) terminate this Agreement in accordance with Section
      13.2 herein; and/or (b) secure comparable insurance, at LICENSEE's expense,
      for the sole benefit and protection of NINTENDO.

     

    10.4  
      Suspension
      of Production.
      In the
      event NINTENDO deems itself at risk with respect to any Claim under this
      Section 10, NINTENDO may, at its sole option, suspend production, delivery
      or order acceptance for any Licensed Products, in whole or in part, pending
      resolution of such Claim.

     

    11. PROTECTION
      OF PROPRIETARY RIGHTS

     

    11.1  
      Joint
      Actions Against Infringers.
      LICENSEE and NINTENDO may agree to jointly pursue cases of infringement
      involving the Licensed Products, as such Licensed Products will contain
      Proprietary Rights owned by each of them. Unless the parties otherwise agree,
      or
      unless the recovery is expressly allocated between them by the court, in the
      event of such an action, any recovery shall be used first to reimburse LICENSEE
      and NINTENDO for their respective reasonable attorneys' fees and costs,
      pro rata,
      and
      any remaining recovery shall be distributed to LICENSEE and NINTENDO, pro rata,
      based upon the fees and costs incurred in bringing such action.

     

    11.2  
      Actions
      by LICENSEE.
      LICENSEE, without the consent of NINTENDO and to the extent permitted by law,
      may bring any action or proceeding relating to an infringement or potential
      infringement of LICENSEE's Proprietary Rights in the Licensed Products. LICENSEE
      shall make reasonable good-faith efforts to inform NINTENDO of such actions
      in a
      timely manner. LICENSEE will have the right to retain all proceeds it may derive
      from any recovery in connection with such actions. 

     

    11.3  
      Actions
      by NINTENDO.
      NINTENDO, without the consent of LICENSEE, may bring any action or proceeding
      relating to an infringement or potential infringement of NINTENDO's Intellectual
      Property Rights in the Licensed Products. NINTENDO shall, in a timely manner,
      make reasonable good-faith efforts to inform LICENSEE of such actions likely
      to
      affect LICENSEE's rights. NINTENDO will have the right to retain all proceeds
      it
      may derive from any recovery in connection with such actions.

     

    ***Confidential
      treatment requested.

     

    
      
         

      

      
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      	12.	
              ASSIGNMENT

            

    

     

    12.1  
      Definition.
      "Assignment" means every type and form of assignment, transfer, sale,
      sublicense, delegation, encumbrance, pledge and/or hypothecation of LICENSEE's
      rights or obligations under this Agreement, including, but not limited to,
      (a) a voluntary assignment, transfer, sale, sublicense, delegation,
      encumbrance, pledge and/or hypothecation by LICENSEE of all or any portion
      of
      its rights or obligations under this Agreement, (b) the assignment,
      transfer, sale, sublicense, delegation, encumbrance, pledge and/or hypothecation
      of all or any portion of LICENSEE's rights or obligations under this Agreement
      to or by LICENSEE's trustee in bankruptcy, receiver, or other individual or
      entity appointed to control or direct the business and affairs of LICENSEE,
      (c) an involuntary assignment, transfer, sale, sublicense, delegation,
      encumbrance, pledge or hypothecation of all or a portion of LICENSEE's rights
      or
      obligations under this Agreement, including but not limited to a foreclosure
      by
      a third party upon assets of LICENSEE, (d) the merger or consolidation of
      LICENSEE if LICENSEE is a corporation, and (e) any other means or method
      whereby rights or obligations of LICENSEE under this Agreement are sold,
      assigned or transferred to another individual or entity for any reason.
      Assignment also includes the sale, assignment, transfer or other event affecting
      a change in the controlling interest of LICENSEE, whether by sale, transfer
      or
      assignment of shares in LICENSEE, or by sale, transfer or assignment of
      partnership interests in LICENSEE, or otherwise.

     

    12.2  
      No
      Assignment by LICENSEE.
      This
      Agreement and the subject matter hereof are personal to LICENSEE. No Assignment
      of LICENSEE's rights or obligations hereunder shall be valid or effective
      without NINTENDO's prior written consent, which consent may be withheld by
      NINTENDO for any reason whatsoever in its sole discretion. In the event of
      an
      attempted Assignment in violation of this provision, NINTENDO shall have the
      right at any time, at its sole option, to immediately terminate this Agreement.
      Upon such termination, NINTENDO shall have no further obligation under this
      Agreement to LICENSEE or to LICENSEE's intended or purported
      assignee.

     

    12.3  
      Proposed
      Assignment.
      Prior
      to any proposed Assignment of this Agreement, LICENSEE shall give NINTENDO
      not
      less than thirty (30) days prior written Notice thereof, which Notice shall
      disclose the name of the proposed assignee, the proposed effective date of
      the
      proposed Assignment and the nature and extent of the rights and obligations
      that
      LICENSEE proposes to assign. NINTENDO may, in its sole discretion, approve
      or
      disapprove such proposed Assignment. Unless written consent is given by NINTENDO
      to a proposed Assignment, any attempted or purported Assignment shall be deemed
      disapproved and NINTENDO shall have the unqualified right, in its sole
      discretion, to terminate this Agreement at any time. Upon termination, NINTENDO
      shall have no further obligation under this Agreement to LICENSEE or to
      LICENSEE's intended or purported assignee.

     

    12.4  
      LICENSEE's
      Obligation of Non-Disclosure.
      LICENSEE shall not (a) disclose NINTENDO's Confidential Information to any
      proposed assignee of LICENSEE, or (b) permit access to NINTENDO's
      Confidential Information by any proposed assignee or other third party, without
      the prior written consent of NINTENDO to such disclosure. 

     

    
      	13.	
              TERM
                AND TERMINATION

            

    

     

    13.1  
      Term.
      This
      Agreement shall commence on the Effective Date and continue for the Term, unless
      earlier terminated as provided for herein. 

     

    13.2  
      Default
      or Breach.
      In the
      event that either party is in default or commits a material breach of this
      Agreement which is not cured within thirty (30) days after Notice thereof,
      then
      this Agreement shall automatically terminate on the date specified in such
      Notice. 

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    13.3  
      Bankruptcy.
      At
      NINTENDO's option, this Agreement may be terminated immediately and without
      Notice in the event that LICENSEE (a) makes an assignment for the benefit
      of creditors, (b) becomes insolvent, (c) files a voluntary petition
      for bankruptcy, (d) acquiesces to any involuntary bankruptcy petition,
      (e) is adjudicated as a bankrupt, or (f) ceases to do
      business.

     

    13.4  
      Termination
      Other Than by Breach.
      Upon
      (a) the expiration of this Agreement, (b) its termination other than
      by LICENSEE's breach, or (c) termination of this Agreement by NINTENDO
      after one hundred twenty days (120) Notice to LICENSEE in the event NINTENDO
      reasonably believes that LICENSEE has developed, marketed, or sold a product
      that infringes any intellectual property rights of NINTENDO anywhere in the
      world (provided that if the parties are able to resolve such alleged
      infringement within such 120-day period, such termination shall not take
      effect), LICENSEE shall have a period of *** days to sell any unsold Licensed
      Products. All Licensed Products in LICENSEE's control following the expiration
      of such sell-off period shall be destroyed by LICENSEE within ten (10) days
      and
      proof of such destruction (certified by an officer of LICENSEE) shall be
      provided to NINTENDO.

     

    13.5  
      Termination
      by LICENSEE's Breach.
      If this
      Agreement is terminated by NINTENDO as a result of a breach of its terms and
      conditions by LICENSEE, LICENSEE shall immediately cease all distribution,
      advertising, marketing or sale of any Licensed Products. All Licensed Products
      in LICENSEE's control as of the date of such termination shall be destroyed
      by
      LICENSEE within ten (10) days and Notice of such destruction (with proof
      certified by an officer of LICENSEE) shall be delivered to NINTENDO.

     

    13.6  
      Breach
      of NDA or Other NINTENDO License Agreements.
      At
      NINTENDO's option, any breach by LICENSEE of (a) the NDA, or (b) any other
      license agreement between NINTENDO and LICENSEE relating to the development
      of
      games for any Nintendo video game system, which breach is not cured within
      the
      time period for cure allowed under the applicable agreement, (and which shall
      give NINTENDO reasonable cause to believe that it needs to terminate this
      Agreement so as to protect its legitimate business interests), shall be
      considered a material breach of this Agreement, entitling NINTENDO to terminate
      this Agreement in accordance with Section 13.5 herein. 

     

    13.7  
      No
      Further Use of the Intellectual Property Rights.
      Upon
      expiration or termination of this Agreement, LICENSEE shall cease all use of
      the
      Intellectual Property Rights for any purpose, except as may be required in
      connection with the sale of the Licensed Products authorized under
      Section 13.4 herein. LICENSEE shall, within thirty (30) days of expiration
      or termination, (a) return to NINTENDO all Development Tools provided to
      LICENSEE by NINTENDO, and (b) return to NINTENDO or destroy any and all
      copies of materials constituting, relating to, or disclosing any Confidential
      Information, including but not limited to Guidelines, writings, drawings,
      models, data and tools whether in LICENSEE's possession or in the possession
      of
      any past or present employee, agent or Independent Contractor who received
      the
      information through LICENSEE. Proof of such return or destruction shall be
      certified by an officer of LICENSEE and promptly provided to
      NINTENDO.

     

    13.8  
      Termination
      by NINTENDO's Breach.
      If this
      Agreement is terminated by LICENSEE as a result of a breach of its terms or
      conditions by NINTENDO, LICENSEE may continue to sell the Licensed Products
      in
      the Territory until the expiration of the Term, at which time the provisions
      of
      Section 13.4 shall apply.

     

    
      	14.	
              GENERAL
                PROVISIONS

            

    

     

    14.1  
      Compliance
      with Applicable Laws and Regulations.
      LICENSEE
      shall at
      all times comply with applicable laws, regulations and orders in the countries
      of the Territory relating to or in any way affecting this Agreement and
LICENSEE's
      performance under this Agreement, including, without limitation, the export
      laws
      and regulations of any country with jurisdiction over the Intellectual Property
      Rights, Licensed Products, Development Tools and/or either party. LICENSEE
      shall
      not market, distribute, or sell the Game and/or Game Cards in any country in
      the
      Territory in which such marketing, distribution or sale would violate any
      applicable laws, regulations or orders of such country. 

     

    ***Confidential
      treatment requested

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    14.2  
      Force
      Majeure.
      Neither
      party shall be liable for any breach of this Agreement occasioned by any cause
      beyond the reasonable control of such party, including governmental action,
      war,
      terrorism, riot or civil commotion, fire, natural disaster, labor disputes,
      restraints affecting shipping or credit, delay of carriers, inadequate supply
      of
      suitable materials or any other cause that could not with reasonable diligence
      be controlled or prevented by the parties. In the event of material shortages,
      including shortages of materials or production facilities necessary for
      production of the Licensed Products, NINTENDO reserves the right to allocate
      such resources among itself and its licensees. 

     

    14.3  
      Records
      and Audit.
      During
      the Term and for a period of two (2) years thereafter, LICENSEE agrees to keep
      accurate, complete and detailed records relating to the use of the Confidential
      Information, the Development Tools and the Intellectual Property Rights. Upon
      reasonable Notice to LICENSEE, NINTENDO may, at its expense, arrange for a
      third
      party audit of LICENSEE's records, reports and other information related to
      LICENSEE's compliance with this Agreement; provided, however, that NINTENDO
      shall not, during the course of the audit, access LICENSEE's source code,
      development plans, marketing plans, internal business plans or other items
      deemed confidential by LICENSEE, except to the extent such materials
      incorporate, disclose or reference NINTENDO's Confidential Information or
      Intellectual Property Rights. 

     

    14.4  
      Waiver,
      Severability, Integration, and Amendment.
      The
      failure of a party to enforce any provision of this Agreement shall not be
      construed to be a waiver of such provision or of the right of such party to
      thereafter enforce such provision. In the event that any term, clause or
      provision of this Agreement shall be construed to be or adjudged invalid, void
      or unenforceable, such term, clause or provision shall be construed as severed
      from this Agreement, and the remaining terms, clauses and provisions shall
      remain in effect. Together with the NDA, this Agreement constitutes the entire
      agreement between the parties relating to the subject matter hereof. All prior
      negotiations, representations, agreements and understandings are merged into,
      extinguished by and completely expressed by this Agreement and the NDA. Any
      amendment to this Agreement shall be in writing, signed by both
      parties.

     

    14.5  
      Survival.
      In
      addition to those rights specified elsewhere in this Agreement, the rights
      and
      obligations set forth in Sections 3, 8, 9, 10, 11, 13.4, 13.7, 13.8 and 14
      shall survive any expiration or termination of this Agreement to the degree
      necessary to permit their complete fulfilment or discharge.

     

    14.6  
      Governing
      Law and Venue.
      This
      Agreement shall be governed by the laws of Japan, without regard to its conflict
      of laws principles. Any legal action (including judicial and administrative
      proceedings) with respect to any matter arising under or growing out of this
      Agreement, shall be brought in the Kyoto District Court. Each party hereby
      consents to the jurisdiction and venue of such courts for such
      purposes.

     

    14.7  
      Injunctive
      Relief.
      LICENSEE acknowledges that in the event of its breach of this Agreement, no
      adequate remedy at law may be available to NINTENDO and that NINTENDO shall
      be
      entitled to seek injunctive or other similar available relief in addition to
      any
      additional relief available to NINTENDO.

     

    14.8  
      Attorneys'
      Fees.
      In the
      event it is necessary for either party to this Agreement to undertake legal
      action to enforce or defend any action arising out of or relating to this
      Agreement, the prevailing party in such action shall be entitled to recover
      from
      the other party all reasonable attorneys' fees, costs and expenses relating
      to
      such legal action or any appeal therefrom.

     

    14.9  
      Expansion
      of Rights. NINTENDO
      may expand the rights granted to LICENSEE under this Agreement by providing
      written notice of such expansion of rights to LICENSEE and without having to
      enter into a written addendum to the present Agreement with LICENSEE.

     

    14.10
      Delegation
      of Duties. NINTENDO,
      at its option, may delegate its duties under the present Agreement to a wholly
      owned subsidiary. To the extent necessary for the parties to carry out their
      duties under this Agreement, NINTENDO shall provide notice to LICENSEE of any
      such delegation, including to whom at NINTENDO's wholly owned subsidiary
      communications from LICENSEE under this Agreement may be directed. Also in
      the
      event of a delegation by NINTENDO, the provisions of this Agreement shall
      continue to govern the relationship between NINTENDO and LICENSEE and shall
      govern the relationship between NINTENDO's subsidiary and LICENSEE, subject
      to
      any amendments or modifications to this Agreement which such subsidiary and
      LICENSEE may agree to in their relationship. NINTENDO shall remain obligated
      under the present Agreement for the performance of NINTENDO's duties by
      NINTENDO's subsidiary.

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    14.11
      Counterparts
      and Signature by Facsimile.
      This
      Agreement may be signed in counterparts, which shall together constitute a
      complete Agreement. A signature transmitted by facsimile or electronically
      via
      computer network shall be considered an original for purposes of this
      Agreement.

     

     

    IN
      WITNESS WHEREOF, the parties have entered into this Agreement on the dates
      set
      forth below.

    

      
        	
                NINTENDO:

              	
                LICENSEE:

              
	 	 
	
                NINTENDO
                  CO., LTD.

              	
                ZOO
                  DIGITAL PUBLISHING LTD.

              
	 	 
	 	 
	
                By:  
                                          
                  

              	
                By:  
                                          
                  

              
	 	 
	
                Name:   
                                        

              	
                Name:   
                                        

              
	 	 
	
                Title:                        
                  

              	
                Title:                        
                  

              
	 	 
	
                Date:                        
                  

              	
                Date:                        
                  

              

      

    

    

     

    Enclosure:

     

    Annex
      A -
      Guidelines on Ethical Content

     

    
      
         

      

      
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      CONFIDENTIAL

       

       

    

    Annex
      A

     

    Guidelines
      on Ethical Content

     

     

    The
      following Guidelines on Ethical Content are presented for assistance in the
      development of Games by defining the types of the theme inconsistent with
      NINTENDO's corporate philosophy. Exceptions may be made when necessary to
      maintain the integrity of the Game or the Game's theme. Games shall
      not:

     

    
      	
            	(a)	
              contain
                sexually explicit content including but not limited to nudity, rape,
                sexual intercourse and sexual touching; for instance, NINTENDO does
                not
                allow bare-breasted women in Games, however, mild displays of affection
                such as kissing or hugging are
                acceptable;

            

    

     

    
      	
            	(b)	
              contain
                language or depictions which specifically denigrate members of any
                race,
                gender, ethnicity, religion or political
                group;

            

    

     

    
      	
            	(c)	
              depict
                gratuitous or excessive blood or violence. NINTENDO does not permit
                depictions of animal cruelty or
                torture;

            

    

     

    
      	
            	(d)	
              depict
                verbal or physical spousal or child
                abuse;

            

    

     

    
      	
            	(e)	
              permit
                racial, gender, ethnic, religious or political stereotypes; for example,
                religious symbols such as crosses will be acceptable when fitting
                into the
                theme of the Game and not promoting a specific religious
                denomination;

            

    

     

    
      	
            	(f)	
              use
                profanity, obscenity or incorporate language or gestures that are
                offensive by prevailing public standards and tastes;
                and

            

    

     

    
      	
            	(g)	
              promote
                the use of illegal drugs, smoking materials, tobacco and/or alcohol;
                for
                example NINTENDO does not allow gratuitous beer or cigarette advertisement
                anywhere in a Game; however, Sherlock Holmes smoking a pipe would
                be
                acceptable as it fits the theme of the
                Game.

            

    

     

    

    
      
         

      

      
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