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Exhibit 10.38  

 
 

AVAYA INC. LONG TERM INCENTIVE PLAN
  FOR MANAGEMENT EMPLOYEES
  Amended as of November 1, 2003    
    

 
 

Article 1—Background and Purpose    
    

        The purpose of the Avaya Inc. Long Term Incentive Plan for Management Employees is to enhance shareholder value by reinforcing the Company's efforts to
motivate Employees to contribute to the Company's growth and performance, and enabling the Company to attract and retain individuals of exceptional managerial talent upon whom, in large measure, the
sustained progress, growth and profitability of the Company depend. 

 
 

Article 2—Definitions    
    

For
the purposes of this Plan, the following words shall have the meanings ascribed to them below: 

(a)   Award  

        Any Option, Dividend Equivalent, Other Stock Unit Award, Substitute Award or any other right, interest, or option relating to Shares or other securities of the
Company granted pursuant to the provisions of the Plan. 

(b)   Board  

        The Board of Directors of the Company. 

(c)   Change in Control  

        The happening of any of the following events: 

        (i)    An
acquisition by any individual, entity or group (within the meaning of Section 13 (d)(3) or 14 (d)(2) of the Exchange Act) (an "Entity") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either (A) the then outstanding shares of common stock of the Company (the
"Outstanding Company Common Stock") or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the
"Outstanding Company Voting Securities"); excluding, however, the following: (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion
privilege unless the security so being converted was itself acquired directly from the Company, (2) any acquisition by the Company, (3) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction which complies with
clauses (A), (B) and (C) of subsection (iii) of this Article 2(c); or 

        (ii)   A
change in the composition of the Board such that the individuals who, as of the effective date of this Plan, as set forth in Article 17 (the "Effective Date"),
constitute the Board (such Board shall be hereinafter referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board;  provided, however, that for purposes of this definition, that any individual who becomes a member of the
Board subsequent to the Effective Date, whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of those individuals who are members of
the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; and  provided, further however, that any such individual whose initial assumption of office occurs as a
result of or in connection with either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act)
or other actual or threatened solicitation of proxies or consents by or on behalf of an Entity other than the Board shall not be so considered as a member of the Incumbent Board; or 

        (iii)  The
approval by the stockholders of the Company of a merger, reorganization or consolidation or sale or other disposition of all or substantially all of the assets of
the Company (each, a "Corporate Transaction") or, if consummation of such Corporate Transaction is subject, at 

 

the
time of such approval by stockholders, to the consent of any government or governmental agency, the obtaining of such consent (either explicitly or implicitly by consummation); excluding however,
such a Corporate Transaction pursuant to which (A) all or substantially all of the individuals and entities who are beneficial owners, respectively, of the Outstanding Company Stock and
Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common
stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such
Corporate Transaction (including, without limitation, a corporation or other Person which as a result of such transaction owns the Company or all or substantially all of the Company's assets either
directly or through one or more subsidiaries (a "Parent Company")) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no Entity (other than the Company, any employee benefit plan (or related trust) of the Company, such corporation
resulting from such Corporate Transaction or, if reference was made to equity ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection
with the applicable Corporate Transaction, such Parent Company) will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of the directors unless such
ownership resulted solely from ownership of securities of the Company prior to the Corporate Transaction, and (C) individuals who were members of the Incumbent Board will immediately after the
consummation of the Corporate Transaction constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction (or, if reference was
made to equity ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection with the applicable Corporate Transaction, of the Parent Company);
or 

        (iv)  The
approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

(d)   Code  

        The Internal Revenue Code of 1986, as amended. 

(e)   Committee  

        The Corporate Governance and Compensation Committee (or any successor committee) of the Board. 

(f)    Company  

        Avaya Inc., a Delaware corporation. 

(g)   Company Action  

        A Company or Subsidiary declared or initiated (i) termination from service under a force management program, (ii) sale of a unit or portion of a
unit, (iii) transfer of a Participant to a corporation, partnership, limited liability company or other business entity in which the Company has a direct or indirect equity interest and which
does not constitute a Subsidiary or (iv) placement of the job function of a Participant with an outsourcing contractor unless the successor employer has assumed the Awards of Participants who
are employed by the successor employer after an event described in (ii), (iii) or (iv). 

2

 

(h)   Delegate  

        The person or committee authorized by the Committee or the Board to exercise specified authority under this Plan. 

(i)    Dividend Equivalent  

        Has the meaning assigned in Article 6(b). 

(j)    Disability or Disabled  

        Termination of employment under circumstances where the Participant qualifies for benefits under a long-term disability pay plan as provided in the
Participant's Award. 

(k)   Employee  

        Any employee of the Company or any Subsidiary, excluding leased employees within the meaning of Section 414(n) of the Code. 

(l)    Exchange Act  

        The Securities Exchange Act of 1934, as amended. 

(m)  Expiration Date  

        The date specified in the Award after which rights under the Award expire. 

(n)   Fair Market Value  

        The average of the high and low sales prices of a Share as reported on the New York Stock Exchange on the Grant Date, or if no sales of Shares were reported on
such date, the average of the high and low sales prices of a Share on the next preceding day on which sales were reported. 

(o)   Grant Date  

        The Grant Date shall be the date an Award is granted as set forth in the Award. 

(p)   Incentive Option  

        An Option granted under Article 7 that is intended to meet the requirements of Section 422 of the Code or any successor provision thereto. 

(q)   Option  

        An Award described in Article 7. 

(r)   Other Stock Unit Award  

        An Award described in Article 8. 

(s)   Participant  

        An Employee who is selected by the Committee to receive an Award under the Plan. 

3

 

(t)    Person  

        Any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, limited liability company, other entity or
government or political subdivision. 

(u)   Plan  

        The Avaya Long Term Incentive Plan for Management Employees. 

(v)   Retirement  

        Termination of the employment of a Participant with the Company or any Subsidiary under circumstances where the Participant qualifies for benefits under a
retirement plan as provided in the Participant's Award. 

(w)  Share  

        A share of the common stock of the Company, par value $.01 per share. 

(x)   Stock Award Committee  

        A committee of one or more directors appointed by the Committee pursuant to Article 4. 

(y)   Subsidiary  

        A "subsidiary corporation" of the Company as defined in Section 424(f) of the Code, an entity in which the Company directly or indirectly owns 50% or more
of the voting interests or an entity in which the Company has a significant equity interest, as determined by the Committee. 

(z)   Substitute Award  

        An Award granted in lieu of an Option pursuant to Article 14. 

(aa)    Term  

        The period beginning on October 1, 2000, and ending on October 1, 2007. 

 
 

Article 3—Shares Available for Option; Adjustments    
    

        (a)   Subject
to adjustment as provided in Article 3(b), the aggregate number of Shares which may be made subject to Awards granted under this Plan during each calendar
year shall not exceed 5% of the Shares issued and outstanding on the last day of the immediately preceding calendar year; (or, during the period beginning October 1, 2000, and ending on
December 31, 2000, 5% of the Shares issued and outstanding on October 1, 2000) provided that such number shall, except as may otherwise be
determined by the Committee, be increased in any year by the number of Shares available for grant under the Plan in previous years but not covered by Awards granted under the Plan in such years;  provided, further, that if any Shares are subject to an Award that is forfeited, settled in cash,
expires, or is otherwise terminated without issuance of Shares, such Shares shall again be available for Awards under the Plan if no Participant shall have received any benefits of ownership in
respect thereof; provided, further, that no more than two million (2,000,000) Shares shall be available
for the grant of Incentive Options under the Plan during the Term. In addition, the number of Shares available for grants under the Plan in any calendar year shall not be reduced by Awards granted or
Shares issued by the Company through the assumption of, or in substitution or exchange for awards or the right or obligation to make future grants of awards in connection with the acquisition of
another corporation or business entity or in connection with the assumption of any Award granted by Lucent Technologies Inc. 

4

 

("Lucent")
to an Employee who becomes an Avaya Individual as defined in the Employee Benefits Agreement dated as of October 1, 2000 between the Company and Lucent. Any Shares issued under the
Plan may consist, in whole or in part, of authorized and unissued Shares, Shares purchased in the open market or otherwise, treasury Shares, or any combination of the foregoing, as the Board or the
Committee may from time to time determine. 

        (b)   In
the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split, reverse stock split, spin off or similar transaction or other
change in corporate structure affecting the Shares, such adjustments and other substitutions shall be made to the Plan, and to Awards as the Committee in its sole discretion deems equitable or
appropriate, including: such adjustments in the aggregate number, class and kind of Shares or other consideration which may be delivered under the Plan, in the aggregate or to any one Participant; in
the number, class, kind and option or exercise price of Shares subject to outstanding Awards granted under the Plan; and in the number, class and kind of Shares subject to Awards granted under the
Plan (including, if the Committee deems appropriate, the substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company);  provided, however, that the number of Shares or other securities subject to any Award shall always be a
whole number. 

        (c)   The
Committee shall be authorized to make adjustments in the terms and conditions of other Awards in recognition of unusual or nonrecurring events affecting the Company
or its financial statements, or changes in applicable laws, regulations or accounting principles. The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan
or any Award in the manner and to the extent it shall deem desirable. In the event the Company shall assume outstanding employee benefit awards or the right or obligation to make future such awards in
connection with the acquisition of another corporation or business entity, the Committee may, in its discretion, make such adjustments in the terms of Awards under the Plan as it shall deem
appropriate. 

 
 

Article 4—Administration    
    

        The Plan shall be administered by the Committee. The Committee shall be responsible to the Board for the operation of the Plan. The Committee may appoint one or
more directors to serve as the Stock Award Committee to make grants of Awards, administer the Plan, discharge the duties of the Committee under Articles 5, 6, 7, 8, 9, and 14 with respect to Employees
other than officers and directors of the Company, and adopt rules and regulations under the Plan and make interpretations of the Plan with respect to such Employees. If the Committee does not appoint
a Stock Award Committee, the Plan shall be administered by the Committee. The Committee or the Stock Award Committee may appoint a Delegate, to administer and interpret the provisions of the Plan,
promulgate rules and regulations under the Plan, discharge the duties of the Committee under Articles 9 and 14, designate employees to perform ministerial functions under this Plan and execute
documents on behalf of the Company; provided, however, that any Delegate appointed pursuant to this
Article 4 who is a Participant in the Plan shall not participate in making any decision that would benefit such Delegate, except to the extent such decision would only incidentally benefit the
Delegate and would also generally benefit a larger class of Participants. 

        The
interpretations and construction of any provision of the Plan by the Committee, the Stock Award Committee, or the Delegate, as the case may be, as well as any factual determinations,
shall be final, unless otherwise determined by the Board. No member of the Board, the Committee, the Stock Award Committee or any Delegate shall be liable for any action or determination made by him
or her in good faith. 

5

 

 
 

Article 5—Eligibility    
    

        The
Committee, in its sole discretion, may grant an Award to any Employee who is actively employed by the Company or a Subsidiary. The adoption of this Plan shall not be deemed to give
any Employee any right to be granted an Award, except and to the extent and upon such terms and conditions as may be determined by the Committee. 

 
 

Article 6—Awards—General    
    

        (a)   Awards
may be granted to Participants either alone or in addition to any other type of Award granted under the Plan. Awards may be granted for no consideration, for such
minimum consideration as is required by applicable law or for such other consideration as the Committee may determine. Any Award granted under the Plan shall be evidenced by documentation in such form
as the Committee may from time to time approve. The prospective recipient of any Award shall not, with respect to such Award, be deemed to have become a Participant, or to have any rights with respect
to such Award, until and unless such recipient has complied with the then applicable terms and conditions. The term of each Award shall be for such period of months or years from the Grant Date as may
be determined by the Committee; provided that in no event shall the term of any Incentive Option exceed a period of ten (10) years from its Grant
Date. The Committee may impose such conditions on the exercise or vesting of any Award as it shall deem appropriate. 

        (b)   Subject
to the provisions of this Plan and any Award, the recipient of an Award may, if so determined by the Committee, be entitled to receive, currently or on a
deferred basis, interest or dividends, or interest or dividend equivalents (collectively, "Dividend Equivalents"), with respect to the number of Shares covered by the Award, as determined by the
Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested. 

 
 

Article 7—Options    
    

        An Option is a right to purchase Shares subject to the following terms and conditions and to such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall deem desirable: 

        (a)   Option Price. The exercise price per Share under an Option shall be determined by the Committee in its sole discretion;  provided that except in the case of an Option
pursuant to a Substitute Award, such option price shall not be less than the Fair Market Value of a Share
on the Grant Date of the Option. 

        (b)   Exercisability. Options shall be exercisable at such time or times as determined by the Committee at or subsequent to
grant. Unless otherwise determined by the Committee at or subsequent to grant, no Incentive Option shall be exercisable prior to the first anniversary of the Grant Date of the Incentive Option. 

        (c)   Method Of Exercise. Subject to the other provisions of the Plan and any applicable Award, any Option may be exercised by
the Participant in whole or in part at such time or times, and the Participant may make payment of the option price in such form or forms, including, without limitation, payment by delivery of cash,
Shares or other consideration (including, where permitted by law and the Committee, Awards) having a Fair Market Value on the exercise date equal to the total option price, or by any combination of
cash, Shares and other consideration as the Committee may specify in the applicable Award. 

        (d)   Form of Options. Each Option granted pursuant to the Plan shall be a nonqualified stock Option within the meaning of the
Code unless specifically identified by the Committee as an Incentive 

6

 

Option
at the time the Option is granted. In accordance with rules and procedures established by the Committee, the aggregate Fair Market Value (determined as of the time of grant) of the Shares with
respect to which Incentive Options held by any Participant which are exercisable for the first time by such Participant during any calendar year under the Plan (and under any other benefit plans of
the Company or of any parent or Subsidiary of the Company) shall not exceed $100,000 or, if different, the maximum limitation in effect at the time of grant under Section 422 of the Code, or
any successor provision, and any regulations promulgated thereunder. The terms of any Incentive Option shall comply in all respects with the provisions of Section 422 of the Code, or any
successor provision, and any regulations promulgated thereunder. 

        (e)   Form Of Settlement. In its sole discretion, the Committee may provide, at the time of grant, that the Shares to be issued
upon an Option's exercise shall be in the form of restricted stock or other similar securities, or may reserve the right so to provide after the time of grant. 

 
 

Article 8—Other Stock Unit Awards    
    

        Other Awards of Shares ("Other Stock Unit Awards") may be paid in Shares, other securities of the Company, cash or any other form of property as the Committee
shall determine upon the grant of the Other Stock Unit Award. Other Stock Unit Awards may be issued with such restrictions that the Committee may impose which restrictions may lapse separately or in
combination at such time or times, in installments or otherwise, as the Committee shall determine. Shares purchased pursuant to
Other Stock Unit Awards shall be purchased for such consideration as the Committee shall in its sole discretion determine, which shall not be less than the Fair Market Value of such Shares as of the
Grant Date of such Award. 

 
 

Article 9—Termination of Employment    
    

        Except as shall otherwise be provided in an Award, the provisions of this Article 9 shall govern rights of Participants to exercise Options following
termination of employment. If a Participant terminates employment for any reason other than Retirement, Disability or death (i) any portion of the Participant's Options which are exercisable on
the date employment terminates may be exercised until the earlier of ninety days following termination of employment or the original Expiration Date of the Option, and (ii) any portion of an
Option that is not exercisable on the date employment terminates shall be forfeited and canceled, except that if the reason for the termination of employment is a Company Action, then the Option shall
become immediately exercisable for the period specified in clause (i) with respect to the number of Shares determined by the following formula, and shall be forfeited and canceled with respect
to the remaining Shares: 

	Shares	 	 	 	(	 	Original Shares	 	 	 	Number of Completed Months Prior to	 	)
	Exercisable	 	=	 	(	 	Granted	 	X	 	Termination of Employment Since Granted	 	)
	 	 	 	 	(	 	 	 	 	 	
	 	)
	 	 	 	 	(	 	 	 	 	 	Number of Complete Months from Grant Date	 	)
	 	 	 	 	(	 	 	 	 	 	to Full Exercisability of Option	 	)
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

Minus: Number of Shares Exercisable Prior to

Termination of Employment	
 	

 

        Upon
termination of employment by reason of Retirement or Disability, any portion of a Participant's Option that is then outstanding shall, to the extent not then exercisable, be
immediately, forfeited and canceled in its entirety. To the extent that an Option is exercisable on the date of a Participant's Retirement or Disability, the Option will remain exercisable until the
original Expiration Date of the Option. Notwithstanding the foregoing, if a Participant terminates employment pursuant to a Company Action under circumstances that also constitute Retirement for such
Participant, then any 

7

 

portion
of any Option of the Participant which becomes exercisable by reason of this Article 9 along with any portion of any Option of the Participant which is exercisable on the date of
termination of employment shall be exercisable, until the original Expiration Date of the relevant Option. Upon the death of a Participant, the outstanding portion of such Participant's Option shall,
to the extent not then exercisable, become immediately exercisable in full and the Option shall remain exercisable until the original Expiration Date of the Option. The Committee or its Delegate may,
in its sole discretion, waive or modify the application of this Article 9 in the case of any individual Participant. This Article 9 applies only to Options; however the Committee may
provide for similar treatment of other forms of Awards at the time that the Award is granted. 

 
 

Article 10—Nonassignability    
    

        No award granted under the Plan shall be assigned or transferred by the Participant otherwise than by will or by the laws of descent and distribution, and such
Award shall be exercisable, during the Participant's lifetime, only by the Participant. 

 
 

Article 11—Change in Control Provisions    
    

        Notwithstanding any other provision of the plan to the contrary, unless the Committee shall determine otherwise at the time of grant with respect to a particular
Award, in the event of a Change in Control any Options outstanding as of the date such Change in Control is determined to have occurred, and which are not then exercisable and vested, shall become
fully exercisable and vested to the full extent of the original grant and any Other Stock Unit Awards which are not then vested shall become vested and non-forfeitable to the full extent
of the original grant. 

 
 

Article 12—Reservation of Shares    
    

        The Company, during the term of this Plan, will at all times reserve and keep available, and will seek or obtain from any regulatory body having jurisdiction any
requisite authority necessary to issue and to sell, the number of Shares that shall be sufficient to satisfy the requirements of this Plan. The inability of the Company to obtain from any regulatory
body having jurisdiction the authority deemed necessary by counsel for the Company for the lawful issuance and sale of Shares shall relieve the Company of any liability in respect of the failure to
issue or sell Shares as to which the requisite authority has not been obtained. 

 
 

Article 13—Taxes    
    

        The Company and any Subsidiary shall have the right to condition the grant or exercise of any Award on a Participant's payment of any applicable amounts required
by a governmental agency to be withheld from payment to the Participant or paid or deducted by the Company or a Subsidiary in connection with an Award ("withholding tax"). The Company and any
Subsidiary shall also have the right to deduct any withholding tax from a Participant's other compensation or to make any other arrangements to satisfy withholding tax obligations, including
arrangements with one or more brokerage firms pursuant to cashless exercise procedures. The Company and any Subsidiary shall further have the right to deduct from any payment under an Award under the
Plan or from a Participant's other compensation any tax or social insurance payment imposed on the Company or Subsidiary in connection with such Award. 

 
 

Article 14—Employees Based Outside of the United States    
    

        Notwithstanding any provision of the Plan to the contrary, in order to foster and promote achievement of the purposes of the Plan or to comply with the provisions
of laws in other countries in which the Company and its Subsidiaries operate or have Employees, the Committee or its Delegate, in 

8

 

its
sole discretion, shall have the power and authority to (1) determine which Employees that are subject to the tax laws of nations other than the United States are eligible to participate in
the Plan, (2) modify the terms and conditions of any Awards granted to such Employees (including the grant of stock appreciation rights or some other comparable form of award ("Substitute
Award") in lieu of Options, and (3) establish subplans, modified Option exercise procedures and other terms and procedures to the extent such actions may be necessary or advisable;  provided,
however, that the Committee may not grant such Awards that do not comply with the limitations
of Article 3. The terms of this Plan applicable to Options shall apply with like effect to Other Stock Unit Awards and Substitute Awards to the extent legally permissible. A stock appreciation
right is a right to receive in cash the amount by which the Fair Market Value of a Share on the exercise date exceeds the value specified in the terms of the grant. A stock appreciation right shall
otherwise have the same terms and conditions as an Option granted under this Plan. 

 
 

Article 15—Rights to Continued Employment    
    

        Neither this Plan nor any Award shall be construed as giving any person the right to be retained in the employ of the Company or any Subsidiary. No Employee or
Participant shall have any claim to be granted any Award under the Plan or to include any Award or its value in any form of severance or similar pay, or in any benefit plan or program which by its
terms does not specifically include the value of the Award. There is no obligation of uniformity of treatment of Employees or Participants under the Plan. This Plan is of limited duration and creates
no ongoing obligation of the Company to provide any future benefit of similar nature or value. 

 
 

Article 16—Amendment of Plan    
    

        The Board may amend the Plan at any time and from time to time. The Board may, at any time or from time to time, suspend or terminate this Plan in whole or in
part. 

        No
such amendment, suspension or termination of the Plan may, however, impair any Award granted prior to such amendment, suspension or termination, without the written consent of the
affected Participant. 

 
 

Article 17—Term of Plan    
    

        The Plan shall become effective as of October 1, 2000. 

        The
Plan shall terminate on October 1, 2007 or at such earlier date as may be determined by the Board of Directors. Termination of the Plan, however, shall not affect the rights
of Participants under Awards previously granted to them, and all unexpired Awards shall continue in force and operation after termination of the Plan except as they may lapse or be terminated pursuant
to this Plan. 

 
 

Article 18—Governing Law    
    

        The Plan, and the validity and construction of any Awards granted hereunder shall be governed by the laws of the State of Delaware. 

9

 

        IN WITNESS WHEREOF, the Company has caused this Plan, as amended, to be executed on this 1st day of November, 2003. 

	 	 	For Avaya Inc.
	

By:	
 	

/s/  MARYANNE DIMARZO      	

 
	 	 	
 Maryanne DiMarzo

Senior Vice President—Human Resources	 
	

Attest:	
 	

/s/  PAMELA CRAVEN      	

 
	 	 	
 Pamela Craven

Senior Vice President, General Counsel & Secretary	 

10

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AVAYA INC. LONG TERM INCENTIVE PLAN FOR MANAGEMENT EMPLOYEES Amended as of November 1, 2003

Article 1—Background and Purpose

Article 2—Definitions

Article 3—Shares Available for Option; Adjustments

Article 4—Administration

Article 5—Eligibility

Article 6—Awards—General

Article 7—Options

Article 8—Other Stock Unit Awards

Article 9—Termination of Employment

Article 10—Nonassignability

Article 11—Change in Control Provisions

Article 12—Reservation of Shares

Article 13—Taxes

Article 14—Employees Based Outside of the United States

Article 15—Rights to Continued Employment

Article 16—Amendment of Plan

Article 17—Term of Plan

Article 18—Governing LawQuickLinks
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EXHIBIT 10.3    
    

	DATED	 	 
	
(1)	
 	

TINSLEY PARK LIMITED
	

(2)	
 	

PSINET TRANSACTION SOLUTIONS (UK) LIMITED
	

(3)	
 	

TRANSACTION NETWORK SERVICES INC

L E A S E  

	

Premises:	
 	
Office Unit 1 Sheffield Airport Business Park
	
Term:	
 	
15 years

starting on 17th April 2000
	
Rent:	
 	
£192,050 p.a.

EVERSHEDS  

1 Royal Standard Place

NOTTINGHAM NG1 6FZ

Tel: 0115 950 7000 Fax: 0115 950 7111

567/SJH

Date: 26 April 2000

Reference: \NOT  L000\403788\5 

 
 
 

L E A S E    P A R T I C U L A R S    
    

	Column 1
	 	Column 2

	1	 	Date	 	 
	

2	
 	

the Landlord	
 	

Name: TINSLEY PARK LIMITED

Company Number: 3077142

Registered office: Sheffield City Airport Europa Link Sheffield S9 1XZ
	

3	
 	

the Tenant	
 	

Name: PSINET TRANSACTION SOLUTIONS (UK) LIMITED

Company Number: 3515161

Registered office: 5 President Buildings President Way Sheffield S4 7UR
	

4	
 	

the Surety	
 	

Name: TRANSACTION NETWORK SERVICES INC

Company Number:

Registered office: 1939 Roland Clarke Place Reston Virginia 20191
	

5	
 	

the Premises	
 	

Office Unit 1 Sheffield airport Business Park more particularly described in Schedule 1
	

7	
 	

the Contractual Term	
 	

15 years from and including 17th April 2000
	

8	
 	

the Initial Rent	
 	

the yearly sum of £192,050
	

9	
 	

the Rent Start Date	
 	

17th April 2000
	

10	
 	

Review Date	
 	

The fifth anniversary of the term commencement date and each fifth anniversary of that date occurring during the Contractual Term
	

11	
 	

the Permitted Use	
 	

offices and associated car parking spaces

   
        THIS LEASE is made on the date stated in the particulars between the parties specified in the particulars and is a new tenancy under the  Landlord and Tenant (Covenants) Act 1995

1.    DEFINITIONS    

        In
this lease the expressions in column 1 of the particulars have the meanings given in column 2 of the particulars and the following words and expressions have the following meanings: 

	1.1	 	"Access Road"	 	the access road shown hatched brown on the Plan
	

1.2	
 	

"Adjoining Premises"	
 	

any nearby property abutting upon or adjacent to the Premises including the Development in which the Landlord (or where the Landlord is a company any company which is a member of the Landlord's Group) has or acquires during the Perpetuity Period a
freehold or leasehold interest
	

1.3	
 	

"Agreed Proportion"	
 	

the proportion which the internal floor area of the Premises bears to the aggregate of the internal floor areas of all Lettable Units on the Development
	

1.4	
 	

"Common Parts"	
 	

all roads accessways parking areas landscaped areas signs walls fences boundary features lights and all other areas ways and amenities in the Development which may be provided or designated from time to time by the Landlord for common use and
enjoyment by the lessees and occupiers of the Development
	

1.5	
 	

"Conduits"	
 	

the pipes wires ducts cables flues shafts cisterns tanks radiators cables meters sewers drains watercourses gutters gullies and other conducting media which are in on over or under the Premises or through which the Utilities are conducted to and from
the Premises at any time during the Perpetuity Period
	

1.6	
 	

"Development"	
 	

for identification only the office development at Sheffield Airport Business Park shown edged blue on Plan 2 as varied (if at all) in accordance with clause 11.3
	

1.7	
 	

"Environmental Law"	
 	

all laws directives regulations and codes of practice (in so far as they have the force of law) applicable to the United Kingdom relating to the protection of the environment as defined in s.1(2) of the
Environmental Protection Act 1990 to pollution control and to human animal and plant welfare
	

1.8	
 	

"Event of Incapacity"	
 	

has the meaning set out in clause 7.1
	

1.9	
 	

"Expenditure"	
 	

the aggregate of all costs fees expenses and outgoings incurred by the Landlord in providing the Landlord's Services including bank charges interest and VAT and such sums as the Landlord considers desirable to set aside from time to time for the
purpose of providing for periodically recurring items of expenditure in connection with the Landlord's Services
	 	 	 	 	 	 	 

1

 

	

1.10	
 	

"the Independent Surveyor"	
 	

an independent chartered surveyor who has practised in the UK for at least the previous five years and who has recent substantial experience of the letting and valuation of premises of similar character quality and general location to the
Premises
	

1.11	
 	

"the Insurance Rent"	
 	

the amount which the Landlord from time to time incurs or expends in insuring the Premises in accordance with its covenants at clause 6.1
	

1.12	
 	

"Insured Risks"	
 	

the risks insured against by the Landlord from time to time in accordance with clause 6.1
	

1.13	
 	

"Interest"	
 	

interest at the Prescribed Rate during the period beginning on the first day on which the relevant sum is due and ending on the date on which payment is made whether before or after any judgement compounded on the usual quarter days
	

1.14	
 	

"LPA"	
 	

the Law of Property Act 1925
	

1.15	
 	

"the 1954 Act"	
 	

the Landlord and Tenant Act 1954
	
1.16	
 	

"the 1995 Act"	
 	

the Landlord and Tenant (Covenants) Act 1995
	

1.17	
 	

"the Landlord's Group"	
 	

a group of companies of which the Landlord is a member within the meaning of s.42(1) of the 1954 Act
	

1.18	
 	

"Landlord's Services"	
 	

the services which the Landlord covenants to provide in clause 11 and includes the cost of maintaining repairing rebuilding replacing renewing painting cleaning decorating and lighting of the Common Parts and complying with all statutory
requirements, paying all rates taxes charges and outgoings of whatever nature charged or imposed upon the Common Parts and any other services or works which the Landlord may reasonably deem desirable or necessary for the benefit of the Development in
the interests of good estate management but excludes any costs incurred in or in connection with:-
	

 	
 	

 	
 	

1	
 	

the correction of any defect in the initial construction of the Common Parts
	

 	
 	

 	
 	

2	
 	

any fees and expenses attributable to the collection of rents and other sums due from the tenants and other occupiers of the Development
	

 	
 	

 	
 	

3	
 	

the reviews of rent and the lettings and relettings of any parts of the Development or any costs attributable to Lettable Units which are vacant from time to time
	

 	
 	

 	
 	

4	
 	

the making good of any damage caused by any of the Insured Risks save only for such costs and expenses as fall within any excess on the Landlord's insurance policy
	

 	
 	

 	
 	

5	
 	

any voluntary improvement of the Development or any part thereof
	 	 	 	 	 	 	 

2

 

	

 	
 	

 	
 	

6	
 	

any costs relating to works carried out as a result of the Common Parts having been construction on contaminated land and the then relevant lawful requirement as to clean up not having been complied with
	

 	
 	

 	
 	

7	
 	

the cost (howsoever incurred) of the construction equipping and fitting out of the Common Parts in their original completed condition and the initial provision of any items necessary to provide the services or which should have been provided at such
time
	

 	
 	

 	
 	

6	
 	

(where the Landlord itself manages the Development) any management fees and expenses in excess of 10% of what would otherwise be the Service Charge
	

1.19	
 	

"the Landlord's Surveyor"	
 	

the surveyor for the time being appointed by the Landlord
	

1.20	
 	

"Lettable Units"	
 	

any building which has been constructed and is designed or is intended to be separately occupied or let
	

1.21	
 	

"Outgoings"	
 	

all existing and future rates taxes assessments charges and outgoings whether parliamentary local or otherwise whether of the nature of capital or revenue and even though of a wholly novel character which may now or at any time during the Term be
rated taxed assessed charged or imposed upon the Premises (whether alone or in conjunction with any other property) or any part of them or upon the owner or occupier in respect of them
	

1.22	
 	

"Permitted Part"	
 	

such part or parts of the Premises as the Landlord acting reasonably considers suitable for underletting
	

1.23	
 	

"the Perpetuity Period"	
 	

the period of 80 years starting on the date of this lease
	
1.24	
 	

"the Planning Acts"	
 	

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

1.25	
 	

"the Prescribed Rate"	
 	

3% per annum above the base lending rate from time to time of National Westminster Bank plc (or such other bank being a member of the committee of London clearing banks as the Landlord may nominate) calculated on a daily basis or if that base lending
rate is no longer published or available for use 3% per annum above such other comparable rate of interest as the Landlord reasonably specifies
	

1.26	
 	

"the President"	
 	

the president for the time being of the Royal Institution of Chartered Surveyors or any body replacing it (or any other authorised officer to whom delegated powers have been given)
	

1.27	
 	

"the Review Provisions"	
 	

the provisions for review of the Initial Rent and of any subsequent increase set out in clause 10
	

1.28	
 	

"Service Charge"	
 	

The Agreed Proportion of the Expenditure
	 	 	 	 	 	 	 

3

 

	

1.29	
 	

"any Superior Landlord"	
 	

any person who at anytime holds an interest in the Premises superior to this lease except for the person whose interest is at the relevant time the reversion immediately expectant on the termination of this lease
	

1.30	
 	

"the Surety"	
 	

any person so named in the particulars and also any person who may at any time guarantee the performance and observance of the Tenant's obligations in this lease
	

1.31	
 	

"the Term"	
 	

the Contractual Term together with any period of holding-over extension or continuance by the Tenant
	

1.32	
 	

"Utilities"	
 	

supply of water drainage of soil and surface water electricity gas oil telephone power fire alarm systems telecommunications or other services
	

1.33	
 	

"the Yearly Rent"	
 	

the Initial Rent or any sum substituted for the Initial Rent under the Review Provisions

4

   
2.    CONSTRUCTION AND INTERPRETATION    

        The
following rules of construction and interpretation apply to each and every part of this lease: 

2.1    Any Superior Landlord or mortgagee    

        In
the following cases references to "the Landlord" are to be construed as extending to any Superior Landlord and to any mortgagee of the Landlord or of any Superior Landlord: 

	2.1.1
	where
there are rights easements exceptions and reservations in favour of or exercisable by the Landlord

	2.1.2
	where
there is an obligation to obtain the approval or consent of the Landlord or to give notice to the Landlord

	2.1.3
	where
there is provision for repayment of any expenses to the Landlord

	2.1.4
	where
there are any indemnities in favour of the Landlord 

2.2    Entry to the Premises    

	2.2.1
	Any
right granted to or reserved by the Landlord to enter the Premises is to be construed as extending to all persons authorised by the Landlord and by any Superior Landlord and by
any mortgagee of either of them and as a right to enter with or without workmen equipment and materials

	2.2.2
	Authority
given by the Tenant to enter the Premises after a reasonable or other specified period of notice extends (if justified by the circumstances) to entry after a shorter
period of notice or to entry without any notice 

2.3    Indemnities    

        Any
indemnities given by the Tenant are to be construed as obligations to keep the specified persons indemnified against liability in respect of all proceedings damages penalties costs
expenses claims and demands of any kind (including all consequential fees expenditure and VAT) in respect of the relevant act omission or default of the Tenant 

2.4    Successors to original parties    

        References
to "the Landlord" include the person for the time being entitled to the reversion immediately expectant on the determination of the Term (or where such person or the Landlord
is an individual his personal representatives) and references to "the Tenant" include the successors-in-title and assigns of the Tenant (or where the Tenant is an individual
his personal representatives) and references to "the Surety" include the personal representatives of any such person (if an individual) 

2.5    Tenant's covenants    

        Any
covenant by the Tenant not to do any act or thing is where appropriate to be construed additionally as a covenant by the Tenant not to permit or suffer such an act or thing to be
done by any other person and any positive covenant by the Tenant extends to an obligation to ensure compliance by third parties 

2.6    Joint and several obligations    

        Where
the Landlord or the Tenant or the Surety at any time consist of more than one person the obligations expressed or implied on the part of such party are joint and several
obligations 

2.7    Tenant's default    

        Unless
the context otherwise requires where in this lease there is reference to the consequences of the Tenant's acts omissions and defaults (including but not limited to all references
to liability under 

5

 

 clause 4.22) all references to "the Tenant" include references to any underlessee of the Tenant and to anyone at the Premises with the express or implied authority of
the Tenant or its underlessees 

2.8    Tenant's liability    

        Notwithstanding
any other provision of this lease nothing in this lease operates so as to impose on any person who was formerly the Tenant liability under this lease in respect of any
period following his release by virtue of the 1995 Act except as permitted under the 1995 Act

2.9    Event of Incapacity    

        Where
an Event of Incapacity is expressed to take place in relation to an individual then whenever either the Tenant or the Surety consists of more than one individual an Event of
Incapacity is deemed to have been suffered by the Tenant or the Surety (as the case may be) whenever an Event of Incapacity takes place in relation to any one such individual whether or not the Tenant
or the Surety is a partnership and regardless of whether an Event of Incapacity has affected such a partnership as contemplated in clause 7.4

2.10    This lease    

        This
lease is to be construed and interpreted as incorporating any variation addition or qualification which is expressed to relate to it contained in any deed made between the Landlord
and the Tenant whether or not any person who is the Surety is a party and including but not limited to all licences granted by the Landlord to the Tenant but not so as to impose upon any person
liability under this lease which would be precluded by s.18 of the 1995 Act

2.11    Whole or part    

        References
to "the Premises" and "Adjoining Premises" are in the absence of any contrary indication to be construed (respectively) as references to the whole or to any part 

2.12    Statutes    

        Except
for any references to the Town and Country Planning (Use Classes) Order 1987 any reference to any statute includes any modification
extension or re-enactment of such statute for the time being in force and any instruments regulations directions orders or permissions made under it 

2.13    Effect of the 1995 Act    

        Wherever
and to the extent that any provision of this lease would or might contravene the provisions of s.25 of  the 1995 Act then: 

	2.13.1
	such
provision is to take effect only in so far as it may do so without contravening s.25 of the 1995
Act and

	2.13.2
	where
such provision is incapable of having any effect without contravening s.25 of the 1995
Act this lease is to be construed and interpreted as if such provision were deleted and

	2.13.3
	the
legality validity and enforceability of any of the remaining provisions of this lease is not in any way to be affected or impaired as a result 

2.14    Gender    

        Words
importing one gender include other genders 

2.15    Particulars contents and headings    

        The
particulars form part of this lease but the clause paragraph and schedule headings and the table of contents are not to be taken into account in the construction and interpretation
of this lease 

6

 

3.    DEMISE AND RENT    

        The
Landlord demises the Premises to the Tenant for the Contractual Term together with the rights set out in Schedule 2 on the
terms therein specified but except and reserved as specified in Schedule 3 and subject to the matters set out in  Schedule 4 the Tenant paying to
the Landlord as rent without any deduction throughout the Term (and proportionately for any part of a year): 

	3.1
	the
Yearly Rent by equal quarterly instalments in advance on the usual quarter days the first instalment or a proportion (calculated on a daily basis) in respect of the period
beginning on the Rent Start Date and ending on the day immediately preceding the next quarter day to be paid on the Rent Start Date and

	3.2
	the
Insurance Rent by annual instalments in advance within 14 days of written demand and

	3.3
	all
VAT properly payable by the Tenant in accordance with clause 4.1.2

	3.4
	all
Interest payable by the Tenant in accordance with clause 4.1.3 and all other sums due to the Landlord under this lease

	3.5
	the
Service Charge within 14 days of written demand 

4.    TENANTS COVENANTS    

        The
Tenant covenants with the Landlord throughout the Term: 

4.1    Rents    

	4.1.1
	to
pay the rents reserved in clause 3.1 and 3.2 at the times and in the manner
stated and (if required by the Landlord at any time) to make such payments or any of them by Bankers standing order or direct debit

	4.1.2
	to
pay to the Landlord all VAT which is chargeable upon every VAT supply made by the Landlord to the Tenant under this lease in the case of the Yearly Rent at the same times as it
is payable and in the case of any other supply on demand

	4.1.3
	to
pay to the Landlord on demand Interest accruing in respect of any of the sums due from the Tenant to the Landlord under this lease (whether or not lawfully demanded) which remain
unpaid more than 7 days after becoming due and whether or not any such sums have been refused by the Landlord so as not to waive any breach of covenant 

4.2    Outgoings    

	4.2.1
	to
pay and discharge all Outgoings and where any of the Outgoings are assessed on the Premises and other property to pay a fair proportion of such Outgoings attributable to the
Premises such proportion to be conclusively determined by the Landlord provided that the Tenant will not be responsible for any Outgoings properly payable by the Landlord in respect of a disposal of
its reversionary interest in the Premises

	4.2.2
	to
pay the Landlord on demand such sums as the Tenant would otherwise have had to pay under clause 4.2.1 if and to the extent
that

	(a)
	the
Tenant has successfully claimed suspension of them or relief from them and

	(b)
	if
the Tenant had not done so the Landlord itself would have been entitled to make such a claim in respect of any period following the end of the Term

	4.2.3
	to
pay the suppliers and indemnify the Landlord against all charges for water electricity gas telephone and other services used at or in relation to the Premises and/or any charges
relating to any apparatus belonging to such suppliers including meter and/or telephone rents 

7

 

4.3    Fees    

	4.3.1
	to
pay to the Landlord on demand and keep the Landlord fully and effectually indemnified against all proper and reasonable costs charges and expenses including legal costs and
disbursements and charges payable to an architect or a surveyor or other agent which may be incurred by the Landlord in or in contemplation of any of the following:

	(a)
	any
application to the Landlord or to any competent authority for any consent under the covenants in this lease whether or not such consent is granted or the application withdrawn

	(b)
	the
recovery or attempted recovery of any of the sums due from the Tenant to the Landlord under this lease not paid on or before the due date

	(c)
	any
action taken by the Landlord in abating a nuisance on the Premises caused by the Tenant any underlessees of the Tenant and anyone at the Premises with the express or implied
authority of the Tenant or such underlessees

	(d)
	any
action taken by the Landlord in relation to a breach of any of the Tenant's obligations under this lease

	(e)
	the
preparation and service of any notices and the conduct of any proceedings relating to the Premises under ss.146 and  147 LPA

	(f)
	any
inspection and/or approval by the Landlord or the Landlord's Surveyor of any alterations improvements or reinstatement carried out under  clause 4.10

	(g)
	the
preparation and service of a schedule of dilapidations whether or not before the end of the Term (but relating in all cases only to dilapidations which arise before the end of the
Term) 

4.4    Repair    

	4.4.1
	to
keep the whole of the Premises both internally and externally in good and substantial repair and condition and properly and regularly cleaned and to reinstate renew and rebuild
the Premises whenever necessary (but excluding any damage or destruction by any of the Insured Risks unless any of the insurance money is irrecoverable as a result of any act or default of the Tenant)

	4.4.2
	within
two months after receiving notice from the Landlord (or sooner if requisite) to repair and make good the Premises as required by such notice and by  clause 4.4.1 and if the Tenant fails to do so and
the Landlord incurs costs as a result of executing such work itself then to pay to the Landlord
on demand and indemnify the Landlord against the whole of such costs

	4.4.3
	to
keep in good working order repair and condition all Conduits which form part of the Premises and all lighting heating and ventilation systems and all landlord's fixtures fittings
plant machinery and apparatus which form part of the Premises and all fire fighting equipment in the Premises and to replace any of them which stop working efficiently and cannot reasonably be
repaired by suitable alternative articles or equipment of similar and modern kind and at least of equal value to the reasonable satisfaction of the Landlord

	4.4.4
	to
comply with all requirements of the local authority and of the fire service relating to the installation of fire sprinklers and fire alarm systems and other appliances in the
Premises and to ensure that any such equipment or systems installed pursuant to those requirements are at all times adequately maintained and where appropriate connected to an alarm system

	4.4.5
	to
pay on demand the proportion attributable to the Premises of the expense of making repairing and cleaning all party and other walls Conduits and other items belonging to the 

8

 

Premises
and/or used in common with any other property and such proportion if not agreed between the Landlord and the Tenant will be determined by the Landlord's Surveyor whose decision will be final
and binding 

	4.4.6
	to
give notice to the Landlord of any material defects or outstanding repairs at the Premises and of any defects in the Premises which might give rise to a duty imposed on the
Landlord by common law or by statute in each case immediately after the relevant matter comes to the Tenant's attention

	4.4.7
	to
clean all the windows of the Premises as often as reasonably necessary

	4.4.8
	to
keep the outside of the Premises properly cleaned at all times by such methods as the Landlord (acting reasonably) approves or specifies in writing

	4.4.9
	to
keep all the carpets in the Premises clean and in good repair and whenever the need arises and if reasonably required by the Landlord in the last year of the Term to replace the
carpets with carpets of a quality at least as good as those originally installed and to obtain the Landlord's prior written approval of the type and colour of any carpets fitted in the last year of
the Term 

4.5    Paint    

	4.5.1
	to
paint all the outside parts of the Premises usually painted or otherwise treat them in the same manner in which they were previously treated whenever the Landlord reasonably
requires and in any event in every third year and in the last year of the Term

	4.5.2
	to
paint decorate and treat all the inside parts of the Premises usually painted decorated and treated in every fifth year and in the last year of the Term

	4.5.3
	every
painting will be effected with at least two coats of good quality paint and all parts of the Premises which are not usually painted will be properly cleaned treated and
renewed as necessary including internal papering and all such works will be carried out in a thorough and workmanlike manner with materials of good quality

	4.5.4
	painting
and decoration will be in such colours as the Landlord approves or may in its absolute discretion specify in writing 

4.6    To permit entry    

	4.6.1
	to
permit the Landlord to enter the Premises at reasonable times and after reasonable prior notice in order to

	(a)
	ascertain
whether the lessee's covenants in this lease have been observed and performed

	(b)
	inspect
the state of repair and condition of the Premises and prepare any schedule of condition

	(c)
	carry
out any repairs remove and make good any unauthorised alterations or execute any work which the Tenant has failed to carry out remove or execute after notice from the Landlord
of such requirement

	(d)
	do
any things necessary to prevent the making of any encroachment or the acquisition of any easement against the Premises in the event of the Tenant's failure to take action after
notice from the Landlord of such requirement

	(e)
	estimate
the current value of the Premises for insurance purposes and to take schedules or inventories of Landlord's fixtures and fittings or other things to be yielded up at the end
of the Term 

9

 

	(f)
	inspect
the Premises for any purpose connected with any proposed action pursuant to Part II of the 1954
Act or connected with any review of rent pursuant to the Review Provisions

	4.6.2
	to
permit the Landlord and the lessees or occupiers of any Adjoining Premises (provided that they have the prior written authority of the Landlord) to enter the Premises at
reasonable times and after reasonable prior notice wherever necessary in order to

	(a)
	comply
with the covenants and conditions contained in any superior lease

	(b)
	execute
any repairs decorations alterations building engineering or other works to any Adjoining Premises which cannot reasonably be effected without entry onto the Premises

	(c)
	facilitate
any other reasonable purpose which cannot otherwise be conveniently effected 

the
person or persons exercising such rights causing as little damage to the Premises and as little inconvenience as possible and the Landlord making good any damage thereby caused to the Premises but
the Landlord will not be liable to the Tenant for any loss damage or claim arising from noise vibration noxious fumes odours or annoyance caused to the Tenant or any other person in connection with
the exercise of those rights 

	4.6.3
	in
the case of a sale of any interest in the Premises superior to this lease at any time and in the case of a reletting of the Premises at any time during the period beginning six
months prior to the expiry of the Contractual Term to permit the Landlord to enter the Premises at reasonable times and affix and retain upon any suitable part of the Premises approved by the Tenant
acting reasonably a notice for the sale of any interest in the Premises superior to this lease or for the reletting of the Premises (as the case may be) and not to remove or obscure such notice and
during such period to permit persons having the written authority of the Landlord at reasonable times to enter and view the Premises 

4.7    Damage to Conduits and removal of support    

	4.7.1
	not
to allow into the Conduits any oil or grease or noxious or deleterious effluent or any other substance which may harm the Conduits and if any such harm is caused then as soon as
reasonably practical to repair it to the Landlord's reasonable satisfaction

	4.7.2
	not
to obstruct the free passage of the Utilities through the Conduits nor to damage the Conduits in any way

	4.7.3
	not
to do anything on the Premises which would remove support from or otherwise endanger any Adjoining Premises or any other land and buildings 

4.8    Yield up    

	4.8.1
	at
the end of the Term to yield up the Premises with vacant possession and all fixtures other than tenant's and trade fixtures together with all alterations additions and
improvements made to the Premises during the Term which the Landlord has asked the Tenant not to remove under clause 4.10.2(c) and in such repair
and condition as is required by the Tenant's covenants in this lease

	4.8.2
	Subject
to clause 4.10.2(c) at the end of the Term to remove all tenant's and trade fixtures from the Premises and make good
to the Landlord's reasonable satisfaction all damage caused by such removal 

4.9    Payment in lieu of remedying dilapidations    

        if
at the end of the Term the Premises are not in the state of repair and decoration in which they should be having regard to the Tenant's covenants and the conditions in this lease the
Tenant will (if so 

10

 

required
by the Landlord and notwithstanding the end of the Term) pay to the Landlord on demand by way of liquidated damages: 

	4.9.1
	the
sum which is certified by the Landlord's Surveyor as representing in his reasonable opinion the cost of putting the Premises into the state of repair and decoration in which
they would have been had the Tenant complied with the terms and conditions of this lease and

	4.9.2
	the
fees of the Landlord's Surveyor for the preparation and service of any schedule of dilapidations and the preparation and issue of the certificate by the Landlord's Surveyor 

4.10    Alterations    

	4.10.1
	not
to make any alterations or additions to the Premises whatsoever (either internally or externally) nor to change the external appearance of the Premises nor to unite the
Premises with any other property nor to demolish the Premises except that the Tenant may carry out internal non-structural alterations with the Landlord's prior written consent such
consent not to be unreasonably withheld and subject to the remaining provisions of this clause 4.10

	4.10.2
	without
prejudice to the provisions of clause 4.21 if the Landlord gives the Tenant consent to carry out alterations or
additions to the Premises the Tenant will:

	(a)
	supply
the Landlord with three copies of the plans and specifications of the alterations or additions and will have them approved by the Landlord or the Landlord's Surveyor in writing
before starting any work

	(b)
	carry
out such alterations or additions in a good and workmanlike manner and with good quality materials and to the reasonable satisfaction of the Landlord or the Landlord's Surveyor

	(c)
	reinstate
the Premises at its own expense to the condition they were in before the execution of the alterations or additions and make good all consequential damage to the reasonable
satisfaction of the Landlord or the Landlord's Surveyor during the period of six months immediately preceding the end of the Term (unless asked not to do so by the Landlord)

	(d)
	enter
into such covenants and obligations as the Landlord requires in respect of the carrying out of such alterations or additions 

and
if alterations or additions are carried out without the Landlord's prior written consent or not in accordance with the provisions of this  clause 4.10 the Landlord may remove or reinstate all such
unauthorised alterations or additions and the Tenant will pay to the Landlord on demand
the cost of such work together with Interest 

	4.10.3
	not
to make any alterations or additions to the electrical installation in the Premises without the Landlord's prior written consent (not to be unreasonably withheld) and then only
in accordance with the terms and conditions for the time being laid down by the Institution of Electrical Engineers and the regulations of the electricity supply authority

	4.10.4
	not
to fix to the outside of the Premises any bracket aerial fixture wire or other apparatus for radio-diffusion wireless television or telephone without obtaining the Landlord's
written consent and its written approval of the proposed situation and method of fixing

	4.10.5
	to
provide satisfactory security to the Landlord if so required for the compliance with clause 4.10.2 and  clause 4.19 in connection with any such
alterations additions or works or the reinstatement of them

	4.10.6
	to
give the Landlord written notice of the value for insurance purposes of any permitted alteration addition or erection (whether or not it required the consent of the Landlord) 

11

 

immediately
after it has been completed and the Landlord will not be liable to effect insurance of such works until seven days after the Landlord has received such notice 

4.11    Advertisements    

	4.11.1
	not
to place affix or display any sign advertisement notice poster or other notification whatsoever on the outside of the Premises except a sign bearing the name of the Tenant and
the nature of the trade and business carried on at the Premises by the Tenant which may be erected only in a manner location size colour design form and character approved in writing by the Landlord
in its reasonable discretion

	4.11.2
	not
to place affix or display any sign advertisement notice poster or other notification whatsoever on the inside of the Premises so as to be visible from outside the Premises
unless first approved in writing by the Landlord in its absolute discretion

	4.11.3
	at
the end of the Term to remove any such sign advertisement notice poster or other notification and make good all damage caused

	4.11.4
	not
to stand hang or display any goods materials or things outside the Premises for display or sale or for any other purpose 

4.12    Mortgages and preferential security    

	4.12.1
	not
to mortgage or charge the whole or any part of the Premises or any fixtures or fittings in them without the Landlord's prior written consent which is not to be unreasonably
withheld in the case of a bona fide financing arrangement which relates to the true value of the assets charged

	4.12.2
	not
to give any bill of sale or other preferential security on the stock-in-trade or personal chattels of the Tenant which are on the Premises at any time 

4.13    Alienation    

	4.13.1
	not
to assign part only of the Premises nor in relation to the whole or any part of the Premises to part with or share possession or occupation or grant licences or franchises to
use or occupy but subject to the following provisions of clause 4.13

	4.13.2
	not
to assign the whole of the Premises without having obtained the Landlord's prior written consent not more than three months previously and for the purposes of  s.19(1A) of the Landlord and Tenant Act 1927 and subject to the proviso in  clause 4.13.3 the Landlord is entitled to refuse consent in any of the circumstances specified in
clauses
4.13.4 and 4.13.5 and to impose any of the conditions specified in  clause 4.13.6

	4.13.3
	whether
or not any of the specified circumstances have arisen or any of the imposed conditions have been complied with the Landlord is always entitled to refuse consent or to
impose any further condition or conditions where it would be reasonable to do so

	4.13.4
	the
Landlord is entitled to refuse consent where the proposed assignee or its proposed guarantor:

	(a)
	is
a limited company which is not registered in the United Kingdom or

	(b)
	has
or will have immunity from suit or legal process in relation to any breach of any covenant or condition of this lease

	4.13.5
	the
Landlord is entitled to refuse consent where in the Landlord's reasonable opinion:

	(a)
	the
effect of the proposed assignment would be substantially to diminish the value of the Landlord's reversionary interest in the Premises or his interest in any Adjoining Premises

	(b)
	either
the use to which the assignee intends to put the Premises or the trading profile of the assignee is either unsuitable on grounds of good estate management or does not comply
with the Landlord's policy of tenant mix 

12

  

	4.13.6
	the
Landlord is entitled as a condition of granting consent to assign to require:

	(a)
	that
whether or not any further surety is required the Tenant enters into an authorised guarantee of the assignee's liability under this lease pursuant to  s.16 of the 1995
Act in the form of the surety covenants at  clause 9

	(b)
	in
addition to any authorised guarantee agreement for the purposes of s.16 of the 1995
Act but only if this further requirement is reasonable that one or more third party guarantor approved by the Landlord (acting reasonably) covenants with the Landlord in the
form of the surety covenants at clause 9

	4.13.7
	not
to underlet the whole or a Permitted Part of the Premises without having obtained the Landlord's prior written consent not more than three months previously which consent will
not be unreasonably withheld where the provisions of clauses 4.13.8 to 4.13.11 (inclusive) are first
either actually complied with or agreed to be complied with (as appropriate)

	4.13.8
	in
relation to every underlease:

	(a)
	to
procure that the undertenant covenants directly with the Landlord to perform and observe the covenants and conditions in this lease (other than the covenant to pay the Yearly Rent)
so far as they relate to the underlet premises

	(b)
	to
obtain a guarantor or guarantors of the undertenant to be approved by the Landlord acting reasonably who must covenant by deed with the Landlord in the form of the surety covenants
at clause 9 adapted to relate to the obligations of the undertenant in the underlease

	(c)
	to
enforce observance of the provisions of the underlease by every undertenant and not at any time to waive any breach of the covenants or conditions on the part of the undertenant
but promptly to take steps to remedy the breach

	(d)
	not
to vary the terms of the underlease without the consent of the Landlord which is not to be unreasonably withheld

	(e)
	to
grant the underlease without any premium or other consideration and at a rent which is approved by the Landlord acting reasonably and which is no lower than the then open market
rent of the underlet premises

	4.13.9
	any
permitted underlease must be in a form approved by the Landlord which approval will not be unreasonably withheld and must contain the following provisions:

	(a)
	for
the upwards only review of the rent on the basis set out in clause 10 or in such other form as the Landlord reasonably
requires or approves and which require review of the rent either on every Review Date or on other dates approved by the Landlord by which the rent is reviewed no less frequently

	(b)
	which
prohibit the undertenant from doing or allowing anything in relation to the underlet premises which is inconsistent with or in breach of the provisions of this lease

	(c)
	which
prohibit all dealings with the underlet premises except for an assignment of the whole subject to the prior written consent of the Landlord granted not more than two months
previously but subject to the same restrictions and conditions as are contained in this lease in relation to assignment by the Tenant

	(d)
	for
an authorised guarantee agreement pursuant to s.16 of the 1995 Act relating to the
liability of any assignee of the underlease under which the undertenant will covenant by deed with the underlandlord in the form of the surety covenants set out in  clause 9 adapted to the
obligations of the underlessee in the underlease 

13

 

	(e)
	which
prohibit the undertenant from parting with possession or permitting anyone to share or occupy or hold on trust for another person the underlet premises or any part of them.

	(f)
	imposing
in relation to any permitted assignment the same obligations for registration with the Landlord as are contained in this lease in relation to dispositions by the Tenant

	(g)
	for
re-entry by the underlandlord on breach by the undertenant of any covenant

	4.13.10
	on
any review of the rent payable under the underlease the Tenant will not agree any reviewed rent nor agree any appointment of a person as the third party determining the revised
rent without in each case first obtaining the Landlord's approval which will not be unreasonably withheld and the Tenant will incorporate as part of its representations to that third party any
representations required by the Landlord and will give the Landlord details of every rent review within 28 days of its outcome

	4.13.11
	in
the case of the grant of an underlease of a Permitted Part the Landlord may require the following as a pre-condition of giving its consent:

	(a)
	that
the underlease is excluded from the provisions of ss.24 - 28 (inclusive) of the
1954 Act and that the Tenant covenants to take all requisite steps to ensure that the undertenant does not acquire protection of  Part II of the 1954
Act

	(b)
	that
the underlease provides that the undertenant will pay a fair proportion of the sums payable by the Tenant under clause 3.2
of this lease and of the costs and expenses incurred by the Tenant in maintaining repairing and decorating and renewing the Premises such proportion in each case to be determined by the underlandlord
(acting reasonably)

	(c)
	that
underlettings of a Permitted Part do not produce more than 2 separate and concurrent occupancies of the Premises

	4.13.12
	notwithstanding
clause 4.13.1 where the Tenant is a company incorporated under the Companies Acts
1948 to 1985 the Tenant may share occupation of the Premises with any other company which is a member of the same group of
companies as the Tenant (within the meaning of s.42(1) of the 1954 Act) provided that:

	(a)
	no
tenancy is created or allowed to arise

	(b)
	the
Tenant must give the Landlord not less than one month's prior written notice of such proposed occupation and must notify the Landlord in writing when the occupation ends and

	(c)
	any
such occupation of the Premises must end if the company in occupation ceases to be a member of the same group of companies as the Tenant and in that case the Tenant will ensure
the company in occupation vacates the Premises immediately 

4.14    Produce assignments and details of lettings    

	4.14.1
	to
give written notice to the Landlord's solicitors within 28 days after any assignment underlease mortgage charge assent transfer or other devolution of any interest under
this lease and to produce to them a certified copy of the deed or document giving effect to any of those matters and to pay their proper charges for the registration of such notice

	4.14.2
	as
soon as reasonably practicable after the Landlord's request to supply to the Landlord written particulars of the full names and addresses of anyone in occupation of the Premises
with full details of the areas occupied the rents paid and the terms enjoyed by such occupiers 

14

 

and
in any event to comply promptly with any requirement by the Landlord pursuant to s.40 of the 1954
Act

	4.14.3
	immediately
after giving a notice under s.25 of the 1954 Act or receiving a notice
under s.26 of the 1954 Act which in either case relates to the Premises to supply a copy to the Landlord 

4.15    Replace Surety    

        that
if the Surety suffers an Event of Incapacity then if the Landlord so requires the Tenant will procure at its expense that some other person or persons acceptable to the Landlord
enters into covenants with the Landlord by deed in the form of the covenants by the Surety contained in clause 9

4.16    Use    

	4.16.1
	not
to use the Premises other than for the Permitted Use at all times during the Term and not to use the Premises for any other purpose

	4.16.2
	not
to sleep or allow any person to sleep on the Premises and not to permit the Premises to be used for residential purposes

	4.16.3
	to
place all waste matter in properly covered dustbins and to comply with all reasonable requirements of the Landlord and with any requirements of the local authority as to the
storage collection and disposal of all waste and refuse of any nature whatsoever 

4.17    Nuisance    

	4.17.1
	not
to use or occupy the Premises or the Common Parts for any immoral or illegal purposes or for any offensive noisy objectionable or dangerous trade business or occupation or for
any religious or political purpose or for the purpose of any betting transaction within the meaning of the Betting Gaming and Lotteries Act 1963 or for
the sale of beers wines or spirits or as a club where intoxicating liquor is supplied to members or other guests and not to make any application for a betting office licence or permit in respect of
the Premises

	4.17.2
	not
to do anything which is or may become a nuisance or annoyance to the Landlord or any owner or occupier of any Adjoining Premises or other property or which may cause injury or
damage to any Adjoining Premises or other property or to any fixture or fitting goods furniture or other thing in them including injury or damage attributable to the neglect or default or carelessness
of the Tenant or to the bursting overflowing disrepair or leaking of any cistern tank basin pipes or other apparatus in the Premises which the Tenant is liable to repair or renew

	4.17.3
	not
to keep on the Premises any dangerous or hazardous or specially combustible goods nor to erect or use any machinery in the Premises which is noisy or which causes significant
vibration or is a nuisance to the Landlord or any occupier of any Adjoining Premises or other property

	4.17.4
	not
to allow anything to be brought into the Premises which is heavier than the weight which the Premises are constructed to bear with due margin for safety and if any dispute
arises under this clause the decision of the Landlord or the Landlord's Surveyor will be conclusive and binding on the Tenant

	4.17.5
	not
to allow any auction to be held on the Premises

	4.17.6
	not
to play any live or recorded music which is audible outside the Premises

	4.17.7
	not
to burn any rubbish or refuse on or in the Premises 

15

 

4.18    Encroachments    

        not
to obstruct any windows lights or openings of the Premises or any Adjoining Premises nor to permit any new window light opening doorway path passage or drain or other trespass
encroachment or easement to be made or enjoyed upon over under or against the Premises and if any such trespass encroachment or easement is made or is attempted to be made to give immediate written
notice to the Landlord and at the Landlord's request and the Tenant's cost to adopt such means and take such steps as the Landlord may require for preventing any such trespass or encroachment or the
acquisition of any such easement 

4.19    Legislation    

	4.19.1
	to
observe and comply with the provisions and requirements of all legislation whether public or local affecting the Premises or their use including without limitation the Planning
Acts and legislation for the benefit of people employed at the Premises or in relation to the fixtures plant or machinery in the Premises and not to do or omit anything on the Premises which is in
breach of such legislation but to do and provide everything required to be done or provided by such legislation and to indemnify the Landlord against all proceedings penalties costs or claims in
respect of any acts or omissions in breach of such legislation

	4.19.2
	if
the Tenant receives notice of any order or proposal under such legislation to give notice to the Landlord immediately and if so required by the Landlord at the Tenant's cost to
make or join with the Landlord in making such objections or representations in respect of any order or proposal as the Landlord may require and to comply at its own cost with any notice or order
served on the Tenant under any such legislation

	4.19.3
	at
all times to display and maintain all notices which the Landlord may from time to time reasonably require to be displayed at the Premises 

4.20    Environmental Law    

	4.20.1
	to
comply with all requirements of Environmental Law and (without limitation) to obtain all necessary licences and consents from any relevant statutory regulatory body insofar as
such licences or consents may be necessary for the activities of the Tenant on the Premises subject to the following requirements of clause 4.20

	4.20.2
	before
making any application for any licence or consent required under Environmental Law the Tenant will submit a copy of the application to the Landlord for approval and will not
implement any licence or consent unless and until the Landlord has approved it in writing (which will not be unreasonably withheld)

	4.20.3
	to
supply the Landlord with copies of all notices directions reports or correspondence concerning any contamination of the Premises or any leakage seepage explosion escape or
accident whereby any proceedings might be taken or threatened under the Environmental Law and but only in so far as any such contamination leakage seepage explosion escape or accident was caused by
the Tenant to take all actions or precautions required by such notice direction report or correspondence immediately and diligently complete them 

4.21    Planning    

	4.21.1
	not
to apply for planning consent under the Planning Acts without the prior written consent of the Landlord (which shall not be unreasonably withheld or delayed) and to indemnify
the Landlord against all charges payable in respect of any such application and any sum which may become payable in consequence of any planning consent and if the Landlord so requires to apply for
such planning consent in the name of the Landlord and/or all other persons for the time being interested in the Premises 

16

 

	4.21.2
	if
a planning consent is granted to the Tenant to supply a copy of the consent to the Landlord immediately and if the consent has been granted with modifications or with conditions
or restrictions which the Landlord considers objectionable then before implementing the consent to take such action as the Landlord requires to secure the removal of such modifications conditions or
restrictions including the making of an appeal where necessary

	4.21.3
	if
the Landlord so directs to make application to the relevant planning authority for a determination whether any alteration change of use or other action or proposal by the Tenant
requires permission under the Planning Acts and to give written notice to the Landlord immediately of the relevant authority's decision

	4.21.4
	to
carry out before the end of the Term any works required to be carried out as a condition of any planning permission implemented by or on behalf of the Tenant or any person
deriving right or title through the Tenant whether the works are required to be carried out before the end of the Term or not

	4.21.5
	if
the Tenant receives any compensation in respect of its interest under this lease because of any restriction placed upon the use of the Premises under any legislation to pay the
Landlord a just and equitable proportion of such compensation at the end of the Term

	4.21.6
	not
to serve a purchase notice under the Planning Acts requiring any local authority to purchase the Tenant's interest in the Premises

	4.21.7
	to
give the Landlord on demand a copy of every drawing application notice consent or licence that the Tenant may submit or receive in connection with any application for planning
consent under the preceding provisions of clause 4.21

4.22    Indemnity    

	4.22.1
	to
the extent only that the same is not covered by any policy of insurance effected or required to be effected by the Landlord to make good to the Landlord and indemnify the
Landlord against all loss and damage incurred by it as a result of any acts or defaults of the Tenant the whole of the commission properly payable to bailiffs and agents employed by the Landlord

	4.22.2
	to
indemnify the Landlord against all liability or alleged liability arising out of any injury to or the death of any person or damage to any property movable or immovable caused
by or arising in any way directly or indirectly out of the repair state of repair condition existence of any alteration to or the use of the Premises 

4.23    Title matters    

to
observe and perform the matters referred to in Schedule 4 and fully indemnify the Landlord against the consequences of any breach or alleged
breach of them 

4.24    Telecommunications    

	4.24.1
	The
Tenant shall enter into good faith negotiations with General Telecommunications Limited (GTL) to procure the provision of communication services as their exclusive
telecommunications provider and shall enter into an agreement with GTL to that effect unless:-

	(a)
	another
telecommunication operator licensed by OFTEL offers to the Tenant rates for telecommunications services which are lower than the charges offered by GTL and GTL having been
given a reasonable opportunity to match those rates declines to do so; or 

17

 

	(b)
	there
is a genuine and reasonable technological condition which precludes the provision of telecommunications services by GTL to the Tenant's business or organisation; or

	(c)
	there
are other commercial grounds for the Tenant not using telecommunications services provided by GTL

	4.24.2
	Without
prejudice to clause 4.24.1 above if the Tenant determines not to enter into an agreement with GTL it must notify the Landlord immediately stating:

	(a)
	the
reason why it has not entered into a telecommunications services agreement with GTL; and

	(b)
	which
telecommunications provider that the Tenant intends to use 

5.    LANDLORD'S COVENANT FOR QUIET ENJOYMENT    

        The
Landlord covenants with the Tenant that if the Tenant pays the rents reserved by and observes and performs the lessee's covenants and the conditions contained in this lease then the
Tenant may quietly enjoy the Premises during the Term without any interruption by the Landlord or any person or persons lawfully claiming under or in trust for the Landlord 

6.    INSURANCE    

6.1    Landlord's insuring covenant    

        The
Landlord covenants with the Tenant that subject to the Tenant paying the amounts payable under clause 3.2 it will keep the
Premises insured against fire and any other risk or cover which the Landlord may in its reasonable discretion decide upon (including without limitation cover in respect of the Landlord's liability to
third parties) in their full reinstatement cost as determined by the Landlord acting properly and three years loss of rent plus an appropriate sum in respect of architects' fees and other fees and
demolition and site clearance costs but subject in all cases to: 

	6.1.1
	the
availability of insurance cover on reasonable commercial terms with substantial and reputable insurers and

	6.1.2
	such
usual and normal excesses exclusions and limitations as are imposed by or agreed with the insurers 

provided
that: 

	6.1.3
	the
Landlord is not liable to effect insurance of the Tenant's fixtures and fittings attached to the Premises until three working days after the Landlord has received notice of
their existence under clause 6.3.3

	6.1.4
	the
Landlord's obligations under this clause 6.1 will end if the insurance effected by it becomes void or voidable as a result
of any act or default of the Tenant and

	6.1.5
	the
Landlord may insure the Premises separately or in conjunction with any Adjoining Premises or any other premises

	6.1.6
	the
Landlord is entitled to keep any commission paid by the insurers and is not obliged to share it with the Tenant nor to set it against the insurance costs charged to the Tenant 

6.2    Reinstatement    

	6.2.1
	The
Landlord covenants with the Tenant that subject to clause 6.5 and  clause 6.2.2 if the Premises are destroyed or damaged by any of the Insured
Risks the Landlord will expend the whole of the insurance proceeds
which it receives (excluding any in respect of rent or liability to third parties) in rebuilding or repairing the Premises with all due speed after all requisite consents and approvals have been
obtained (which the Landlord shall use reasonable 

18

 

endeavours
to obtain as soon as reasonably practicable) subject to and in compliance with all the applicable statutory provisions and regulations and the provisions of such consents and approvals 

	6.2.2
	The
Landlord is not obliged to repair or rebuild if:-

	(a)
	the
insurance has been prejudiced or the policy money withheld in whole or in part as a result of any act or default of the Tenant or

	(b)
	if
it is prevented from doing so by any matter beyond its control 

in
which case the policy money will belong to the Landlord absolutely 

6.3    Tenant's obligations regarding insurance policies    

        The
Tenant covenants with the Landlord throughout the Term: 

	6.3.1
	not
to do anything which causes the policy or policies of insurance on the Premises to become void or voidable or which may increase the premiums on the Premises or on any Adjoining
Premises and:

	(a)
	if
the premiums on the Premises or on any Adjoining Premises are increased by the act omission or default of the Tenant to pay and indemnify the Landlord against all increased
premiums with Interest within 14 days of demand

	(b)
	if
the Landlord incurs expenses in the renewal of any policy or policies of insurance as a result of any breach of the covenants in this  clause 6.3 to pay and indemnify the Landlord against all such
expenses with Interest within 14 days of demand

	(c)
	if
the Premises or any Adjoining Premises are destroyed or damaged and the insurance money under any policy or policies of insurance is wholly or partly irrecoverable by reason solely
or in part of any act or default of the Tenant (unless the Tenant pays the Landlord the irrecoverable amount) then and in every such case the Tenant will immediately pay the Landlord the whole or (as
appropriate) a fair proportion of the cost of completely rebuilding and reinstating the Premises and/or such Adjoining Premises (as the case may be) including professional fees and all incidental
costs and expenses and Interest

	6.3.2
	to
comply with the requirements and reasonable and proper recommendations of the Landlord's insurers in respect of the Premises

	6.3.3
	to
notify the Landlord of the existence and value of all the Tenant's fixtures and fittings attached to the Premises immediately after they have been installed (and the Landlord is
not liable to insure them until three working days after such notification is received)

	6.3.4
	not
without the Landlord's prior consent to effect any insurance of the Premises except for the plate glass and third party risks

	6.3.5
	immediately
to insure and keep insured all glass in the windows doors and partitions in the Premises against breakage or damage by accident to their full value in an insurance
office approved in writing by the Landlord (such approval not to be unreasonably withheld) in the joint names of the Landlord and the Tenant and whenever required to produce to the Landlord the
insurance policy and the receipt for the last premium due under the policy and if the glass or any of it is destroyed or damaged then to expend the insurance proceeds immediately in reinstating the
glass with glass of the same kind and quality as existed before the destruction or damage and the Tenant is to make up any deficiency in the insurance proceeds for that purpose 

19

 

	6.3.6
	to
keep in force insurance in respect of the Premises for the benefit of the Landlord as well as the Tenant against liability to third parties for injury to or death of any person
or damage to any property in such sum and on such terms as are approved by the Landlord (such approval not to be unreasonably withheld)

	6.3.7
	without
prejudice to clause 6.3.4 if at any time the Tenant is entitled to the benefit of any insurance on the Premises to
apply all the proceeds of such insurance immediately in making good the loss or damage in respect of which they have been received

	6.3.8
	to
notify the Landlord immediately of any reason why the Landlord's insurable interest in the Premises may be affected

	6.3.9
	if
any insurance policy maintained by the Landlord under this lease provides for an excess which is normal or usual in the market to be borne by the insured even though the policy
has not been invalidated then the Tenant will on demand reimburse to the Landlord such excess 

6.4    Rent suspension    

        It
is agreed that if the Premises or any part of them or the means of access to them are destroyed or damaged by any of the Insured Risks rendering the Premises unfit for occupation and
use then provided that no insurance effected by the Landlord has been prejudiced and that no policy money has been withheld in whole or in part by any act or default of the Tenant the Yearly Rent or a
fair proportion of it according to the nature and extent of the damage will be suspended until either the Premises and the means of access to them or the part of them which was destroyed or damaged
has been rebuilt or reinstated so as to render the Premises fit for occupation or use or for a period of three years whichever is the shorter period and any dispute about the extent proportion or
period of such suspension is to be determined by the Independent Surveyor acting as an expert and not as an arbitrator and his determination will be final and binding on the parties 

6.5    Rebuilding    

	6.5.1
	It
is agreed that:

	(a)
	if
the Premises or the means of access to them are destroyed or damaged to such an extent that in the Landlord's opinion it is impractical or uneconomic to reinstate them or

	(b)
	if
the Premises are destroyed or damaged within the last three years of the Contractual Term and in the Landlord's opinion reinstatement will not be practicable before the expiry of
the Contractual Term or

	(c)
	if
the Premises are destroyed or damaged and the Landlord's insurance has been prejudiced or the policy money withheld in whole or in part as a result of some act or default of the
Tenant or

	(d)
	if
the Premises are destroyed or damaged and by reason of any circumstance beyond the control of the Landlord the Premises and the means of access to them have not been reinstated
within the period of three years after the damage or destruction 

then
in any of such cases the Landlord may terminate this lease by giving written notice to the Tenant within 12 months of the destruction or damage in the case of  clauses 6.5.1.1 6.5.1.2 or
6.5.1.3 or after the expiry of the said period of  three years in the case of clause 6.5.1.4 (but
without prejudice to any right of action or remedy
of either party in respect of any earlier breach) and any insurance money payable will belong absolutely to the Landlord 

	6.5.2
	It
is agreed that when rebuilding or reinstating the Premises after destruction or damage by any of the Insured Risks the Landlord will not be obliged to lay out the insurance money
in rebuilding or reinstating in accordance with the previous plans sections elevations and specifications of the Premises but will be obliged only to restore the Premises so that the Tenant has
accommodation substantially equivalent to the Premises and access and services substantially equivalent to those existing before the damage or destruction and all the covenants and conditions of this
lease will apply to such accommodation as they applied to the Premises 

20

   
6.6    Other Lettings    

        To
use all reasonable endeavours to procure that leases of other parts of the Development shall contain obligations on the part of the tenant relating to appearance alterations repair
decoration and alienation and payment of service charge which are not materially less onerous than those contained in this lease 

7.    FORFEITURE    

7.1    Event of Incapacity    

        For
the purposes of this lease an Event of Incapacity means by reference to the Insolvency Act 1986 ("the
Act") and the Insolvent Partnerships Order 1994 ("the Order") in relation to a
company the events or circumstances set out in clause 7.2 and in relation to an individual the events or circumstances set out in  clause 7.3 and
in relation to a partnership the events or circumstances set out in  clause 7.4

7.2    Company    

	7.2.1
	It
is unable or admits its inability to pay its debts when they become due (whether within the circumstances specified in s.123 of  the Act or otherwise) or

	7.2.2
	It
summons a meeting of its creditors or a proposal is made for a voluntary arrangement under Part I of  the Act or it enters into a scheme of arrangement
with its creditors in satisfaction or composition of its debt or

	7.2.3
	A
petition is presented for an Administration Order under Part II of the Act
or

	7.2.4
	A
receiver or manager (including an administrative receiver) is appointed whether under Part III of  the Act or under the LPA or otherwise or

	7.2.5
	A
resolution to wind-up is passed or a provisional liquidator is appointed or a winding-up order is made under  Part IV of the Act (save that in the case
of a voluntary winding up solely for the purpose of
amalgamation or reconstruction if the Tenant can first demonstrate to the satisfaction of the Landlord that the covenant of the company will be as strong after as it was before the reconstruction or
amalgamation then provided that such turns out to be the case no Event of Incapacity will have taken place) or 

7.3    Individual    

	7.3.1
	An
application is made for an interim order or a proposal is made for a voluntary arrangement under Part VIII of  the Act or

	7.3.2
	A
bankruptcy petition is presented to the court or the circumstances of the individual are such that a bankruptcy petition could be presented under  Part IX of the
Act or

	7.3.3
	The
individual enters into a deed of arrangement or composition with his creditors or

	7.3.4
	A
receiver is appointed under the Mental Health Act 1983 or the individual becomes incapable of managing his affairs or 

7.4    Partnerships    

	7.4.1
	It
enters into a voluntary arrangement under Part II of the Order or

	7.4.2
	A
petition is presented for an Administration Order under Part III of the
Order or

	7.4.3
	A
petition is presented for winding up as an unregistered company under Parts IV or V
of the Order

21

 

7.5    Re-entry    

        The
Landlord may re-enter the Premises (or any part in the name of the whole) at any time in any of the following circumstances: 

	7.5.1
	the
whole or part of any of the sums reserved as rent in clause 3 remains unpaid more than 21 days after becoming due
(whether or not formally demanded) or

	7.5.2
	there
is a breach by the Tenant or the Surety of any of the provisions of this lease or

	7.5.3
	either
the Tenant or the Surety suffers an Event of Incapacity or

	7.5.4
	the
Tenant ceases to carry on its business or

	7.5.5
	the
Tenant suffers distress or execution levied on its goods and upon such re-entry this demise will cease absolutely but without prejudice to any right of action of the
Landlord in respect of any breach of the terms of this lease (including any breach in respect of which re-entry is made) 

8.    GENERAL PROVISOS    

8.1    Notices    

	8.1.1
	A
notice under this lease must be in writing and unless the receiving party or its authorised agent acknowledges receipt is valid if (and only if) it is given by hand sent by
registered post or recorded delivery or sent by fax (provided in the case of sending by fax that a confirmatory copy is on the same day given by hand or sent by registered post or recorded delivery)
and served in accordance with clause 8.1.2

	8.1.2
	Effective
service takes place

	(a)
	at
its registered office where the receiving party is a company incorporated within the United Kingdom or

	(b)
	at
the Premises where the receiving party is the Tenant and the Tenant is not such a company or

	(c)
	at
that party's address shown in this lease or at any address specified in a notice given by that party to the other parties where the receiving party is the Landlord or the Surety
and that party is not such a company

	8.1.3
	Unless
it is returned through the Post Office undelivered a notice sent by registered post or recorded delivery is to be treated as served on the third working day after posting
whenever and whether or not it is received

	8.1.4
	A
notice sent by fax is to be treated as served on the day upon which it is sent or where the fax is sent after 4 pm or on a day that is not a working day then on the next working
day whenever and whether or not it or the confirmatory copy is received unless the confirmatory copy is returned through the Post Office undelivered

	8.1.5
	The
term "working day" means a day when the UK clearing banks are open for business in the City of London

	8.1.6
	If
the receiving party consists of more than one person then a notice to one of them is notice to all 

8.2    Disputes as to rights    

        Any
dispute between the Tenant and/or any other occupier for the time being of the Premises and/or the occupier or occupiers of any Adjoining Premises about the nature and extent of any
easement or right in favour of or affecting the Premises or about the party or other walls separating 

22

 

the
Premises from any adjoining or neighbouring property or about any other matter arising out of this lease must (where the Landlord is not a party) be referred to the Landlord and the Landlord's
decision will be final and binding on the parties to the dispute 

8.3    No implied easements    

	8.3.1
	This
lease does not (by implication or otherwise) confer upon the Tenant any rights or privileges which are not expressly set out in this lease over any Adjoining Premises and
furthermore any rights implied by s.62 LPA are expressly excluded

	8.3.2
	Nothing
in this lease (including without limitation the rights set out in Schedule 2) confers on the Tenant (by implication or
otherwise) any easement or right over or against the Premises or any Adjoining Premises which might restrict or prejudice the future rebuilding alteration or development of the Premises or any such
Adjoining Premises nor will the Tenant be entitled to compensation for any damage or disturbance caused by any such rebuilding alteration or development

	8.3.3
	The
Landlord has power at all times to deal as it thinks fit with any Adjoining Premises without obtaining any consent from or making any compensation to the Tenant and may erect on
such property any buildings provided that such buildings do not materially adversely affect or diminish the light or air which is enjoyed by the Tenant or any other occupier of the Premises during the
Term and do not materially adversely interfere with the use and enjoyment of the Premises 

8.4    Tenant's goods left in Premises    

        If
the Tenant (unless it is actively and bona fide pursuing a renewal of the lease) fails to remove any of its property from the Premises within seven days after the end of the Term:- 

	8.4.1
	the
Landlord may sell such property as the agent of the Tenant and the Tenant will indemnify the Landlord against any liability incurred by it to any third party whose property is
sold by the Landlord in the mistaken belief held in good faith (which is to be presumed unless the contrary is proved) that such property belonged to the Tenant

	8.4.2
	the
Landlord will pay or account to the Tenant on demand for the sale proceeds (but not any interest on them) less any costs of storage and sale reasonably incurred by the Landlord
if the Tenant claims the sale proceeds within six months after the end of the Term but otherwise the Landlord may retain the sale proceeds absolutely and

	8.4.3
	the
Tenant will indemnify the Landlord against any damage caused to the Premises and any actions claims proceedings costs expenses and demands made against the Landlord caused by or
related to the presence of the Tenant's property in the Premises 

8.5    Party walls    

        Any
walls dividing the Premises from neighbouring premises are deemed to be party walls for all the purposes of the legislation governing the rights of the parties in respect of such
walls 

8.6    No planning warranties    

        Nothing
in this lease or in any consent granted by the Landlord under this lease constitutes any warranty by the Landlord that the Premises are authorised under the Planning Acts or
otherwise for use for any specific purpose 

23

 

8.7    Set-off    

        The
Tenant is not entitled to make any counterclaim or set-off against any payments due to the Landlord under this lease and agrees to make all such payments in full
irrespective of any equity of set-off or any counterclaim of any nature on the part of the Tenant 

8.8    VAT    

	8.8.1
	All
consideration in respect of the supply of goods or services by the Landlord to the Tenant under this lease is exclusive of any VAT which may be chargeable on it and on the date
upon which a supply is treated as having been made for the purposes of the Value Added Tax Act 1994 ("VATA") the Tenant becomes liable to pay to the
Landlord an amount equal to any such VAT

	8.8.2
	Where
this lease requires the Tenant to pay repay reimburse or provide any amount or other consideration in respect of a supply made to the Landlord of goods or services liable to
VAT then the Tenant will (on receipt of a valid VAT invoice) pay to the Landlord a sum equal to any VAT charged to the Landlord on that supply less any part of that VAT for which the Landlord is
entitled to credit under ss.24 to 26 VATA or which the Landlord is otherwise able to recover except that
where the VAT supply relates partly to the Premises and partly to other property then the Tenant's covenant is a covenant to pay to the Landlord a fair proportion (to be conclusively determined by the
Landlord) of that sum

	8.8.3
	The
Landlord is entitled to exercise any option conferred by law to treat any supply made by the Landlord to the Tenant under this lease as a VAT supply and in exercising any such
option the Landlord is not obliged to have regard to the interests of the Tenant 

8.9    Jurisdiction    

        This
lease is governed by and interpreted in accordance with the laws of England and (except where there is a valid submission to arbitration under English Law in accordance with this
lease) the parties submit to the non-exclusive jurisdiction of the High Court of Justice in England 

9.    SURETY OBLIGATIONS    

        The
Surety covenants and agrees with the Landlord and (without the need for any express assignment) with the Landlord's successors in title but not so as to impose on the Surety any
liability or obligation which would contravene any provision of the 1995 Act: 

9.1    Guarantee and indemnity    

        by
way of primary obligation that the Yearly Rent and other payments to be made by the Tenant will be paid in the manner and at the times specified and that all the Tenant's covenants
and conditions in this lease will be duly performed and observed and further that in the event of any default in such payments or in the performance and observance of any such covenants and conditions
the Surety will by way of indemnity pay and make good to the Landlord on demand all losses damages costs and expenses arising or incurred by the Landlord as a result 

9.2    Events disregarded    

        that
none of the following will release exonerate or in any way affect the liability of the Surety: 

	9.2.1
	any
time or indulgence granted by the Landlord to the Tenant or any neglect or forbearance of the Landlord in enforcing the payment of the rents and other payments covenanted to be
made by the Tenant or the observance and performance of the Tenant's covenants and conditions herein contained 

24

 

	9.2.2
	any
refusal by the Landlord to accept any money tendered as rent by or on behalf of the Tenant at a time when the Landlord is entitled (or would be entitled after the service of a
notice under s.146 LPA) to re-enter the Premises

	9.2.3
	subject
to s.18 of the 1995 Act any variation of the terms of this lease agreed
between the Landlord and the Tenant whether or not the Surety is a party

	9.2.4
	a
transfer of the reversion immediately expectant on determination of the Term or an assignment of this lease (except an assignment under which the Tenant is released from liability
by virtue of the 1995 Act) or any surrender by the Tenant of part of the Premises (in which latter event the liability of the Surety will continue in
respect of the part of the Premises not surrendered after making any necessary apportionments under s.140 LPA or as may be agreed pursuant to  ss.9 and
10 of the 1995 Act)

	9.2.5
	the
event that the Tenant (being a company) is wound up or ceases to exist or (being an individual) dies or becomes incapable of managing his affairs

	9.2.6
	where
the Surety is more than one person any release of one or more such persons which is not expressed to relate to all such persons

	9.2.7
	any
other act or thing whereby but for this provision the Surety would have been released or exonerated 

9.3    Events triggering the further obligations    

        that
the Surety will if requested by the Landlord enter into one of the further obligations set out in clauses 9.4 and  9.5 if either 

	9.3.1
	this
lease is disclaimed by the liquidator or trustee in bankruptcy of the Tenant or by the Crown or

	9.3.2
	this
lease is forfeited under the provisions of clause 7

provided always that where the Surety is a former tenant under this lease pursuant to an authorised guarantee agreement made under  s.16 of the 1995 Act then clauses 9.3.2 and
9.5 do not apply 

9.4    Acceptance of new lease    

        that
if the Landlord so requires by notice served within three months after the happening of either of the events set out in  clause 9.3 (subject to the proviso in that clause) then the Surety will
accept from the Landlord a new lease of the Premises on the following
terms: 

	9.4.1
	for
a term equal to the residue remaining unexpired of the Contractual Term at the time of the grant of such new lease

	9.4.2
	at
an initial annual rent equivalent to the rate of the Yearly Rent payable at the date of such disclaimer or forfeiture and payable from such date

	9.4.3
	containing
the same covenants conditions provisions and other terms (including the proviso for re-entry) as are contained in this lease so far as they are still
applicable

	9.4.4
	and
will pay the Landlord's costs of such new lease and will execute and deliver to the Landlord a counterpart of it 

9.5    Obligations on re-letting    

        that
if the Landlord decides not to require the Surety to accept a new lease pursuant to clause 9.4 but decides instead to
re-let the Premises then (except where the Surety is a former tenant under this 

25

 

lease
pursuant to an authorised guarantee agreement made under s.16 of the 1995 Act) the Surety will pay
to the Landlord on demand 

	9.5.1
	the
costs incurred by the Landlord in relation to any re-letting or attempted re-letting together with Interest and

	9.5.2
	an
amount equal to the difference between any money received by the Landlord for the use and occupation of the Premises and the Yearly Rent and payments which would otherwise have
been payable under this lease in respect of the period beginning on the date of disclaimer or (where clause 9.3.2 applies) forfeiture of this
lease and ending one year later or (if earlier) ending on the date on which the Premises are fully re-let 

9.6    Restrictions on Surety's remedies against the Tenant    

        that
while any liabilities of the Tenant or the Surety to the Landlord under this lease remain outstanding the Surety will: 

	9.6.1
	not
claim in any liquidation bankruptcy composition or arrangement of the Tenant in competition with the Landlord

	9.6.2
	pay
to the Landlord the proceeds of all judgements and distributions it may receive from any liquidator trustee in bankruptcy or other person administering the assets of the Tenant

	9.6.3
	hold
for the benefit of the Landlord all security and rights which the Surety may have over the Tenant's assets

	9.6.4
	not
participate in any security held by the Landlord in respect of the Tenant's obligations to the Landlord under this lease nor stand in the place of the Landlord in respect of any
such security 

9.7    Renewal    

        That
if the Tenant (being the same person whose liability under this lease is guaranteed by the Surety) renews this lease then the Surety will join in such renewal lease and covenant
with the Landlord in the same terms as are contained in clause 9 including this clause 9.7

10.    THE REVIEW PROVISIONS    

10.1    Requirement for review    

        The
amount of the Yearly Rent is to be reviewed on each Review Date and the sum payable as the Yearly Rent on and following each Review Date will be the greater of 

	10.1.1
	the
amount of the Yearly Rent immediately before such Review Date and

	10.1.2
	the
annual rent at which the Premises might reasonably be expected to be let in the open market at the Review Date ascertained as if to be let on the terms of the hypothetical
lease described in clause 10.2 and on the assumptions set out in clause 10.3 but
disregarding the matters set out in clause 10.4 ("the open market rent") 

10.2    The hypothetical lease    

        The
hypothetical lease by reference to which each review of the Yearly Rent is to take place is a lease 

	10.2.1
	on
the same terms as this lease (including but not limited to the Review Provisions and with review of rent on the same dates as are specified in this lease) except for the amount
of the Yearly Rent and except for anything which is inconsistent with the express assumptions and disregards set out in clause 10.3 and  10.4

26

 

	10.2.2
	granted
by a willing lessor to a willing lessee

	10.2.3
	without
any premium having been paid by the willing lessee

	10.2.4
	with
vacant possession

	10.2.5
	for
a term equal to the longer of

	(a)
	the
residue of the Contractual Term unexpired at the relevant Review Date and

	(b)
	a
term of 10 years 

10.3    Assumptions    

        The
assumptions to be made in ascertaining the open market rent are: 

	10.3.1
	that
no work has been carried out by the Tenant or its subtenants to the Premises which has diminished the rental value of the Premises

	10.3.2
	that
the Premises are fit for immediate occupation and use with all requisite services connected and available and have at the expense of the Landlord been fitted out and equipped
to the requirements of the willing lessee and in particular that if the Premises or their means of access have been damaged or destroyed they have been fully restored

	10.3.3
	that
the covenants in this lease on the part of the Tenant have been fully performed and observed

	10.3.4
	that
the Premises may be used and occupied lawfully and indefinitely by any person for any of the purposes permitted by this lease and that such uses comply with the provisions of
the Planning Acts free from any onerous condition restriction or limitation

	10.3.5
	that
the Premises are let as a whole

	10.3.6
	that
the rent fixed on review is the rent which would become payable after the expiry of a rent free period for the purpose of fit out works or rent concession or after the giving
up of such other inducement of such length or amount as would be negotiated in the open market at the relevant Review Date between a willing lessor and a willing lessee only to the extent that the
same relates to fit out works

	10.3.7
	that
any licences consents or approvals (other than on the part of the Landlord) necessary for the conduct at the Premises of the business of the willing lessee have been granted
and remain in force 

10.4    Matters to be disregarded    

        In
assessing the open market rent the following are to be disregarded: 

	10.4.1
	any
effect on rent of the fact that the Tenant or any predecessors of the Tenant or any authorised underlessee of either of them have been in occupation of the Premises

	10.4.2
	any
goodwill attached to the Premises by reason of the carrying on there of the Tenant's business or that of any predecessors of the Tenant or of any authorised underlessee of
either of them

	10.4.3
	any
increase in value attributable to the Tenant's fixtures and fittings

	10.4.4
	subject
to the assumption at clause 10.3.2 any increase in rental value attributable to any improvement to the Premises
carried out with the Landlord's written permission by the Tenant or any predecessors of the Tenant or any authorised underlessee except for any improvement 

27

 

	(a)
	which
has been carried out pursuant to an obligation (other than in a permissive licence) to the Landlord or its predecessors or

	(b)
	which
has been carried out wholly or partly at the Landlord's expense or

	(c)
	to
a part of the Premises of which the Landlord or its predecessors have had vacant possession since the improvement was carried out

	10.4.5
	any
effect on rent of any obligation to fit out the Premises or to reinstate the Premises to their condition prior to the execution of alterations or improvements 

10.5    Settlement of open market rent    

	10.5.1
	The
Landlord and the Tenant will endeavour to agree the open market rent prior to the relevant Review Date but if agreement has not then been reached either party may at any time
thereafter refer the determination of the open market rent to the Independent Surveyor

	10.5.2
	The
appointment of the Independent Surveyor is to be made by agreement between the parties but in default of agreement then either party may request the President to nominate or
arrange the nomination of the Independent Surveyor and the person so nominated is to be appointed by the parties jointly but if he dies or for any reason fails to give notice of his determination of
the open market rent within a reasonable period or it becomes apparent that he will be unable to complete his duties within such period then the parties may appoint a replacement Independent Surveyor
using the procedures in this sub-clause which may be repeated as many times as necessary

	10.5.3
	Unless
the Landlord exercises his option at clause 10.5.4 the Independent Surveyor is to act as an expert and the parties may
make representations to him but he is not bound to take them into account in reaching his decision which (including his decision as to the payment of his costs) is to be final and binding on the
parties but if he fails to make a decision as to payment of his costs they are to be shared equally between the parties

	10.5.4
	At
the option of the Landlord exercised at any time before the appointment of the Independent Surveyor the Independent Surveyor is to act as an arbitrator pursuant to the
provisions of the Arbitration Act 1996

10.6    Arrears of increased rent and interest    

	10.6.1
	Where
and for so long as settlement of any Rent Review remains uncompleted the Yearly Rent will continue to be payable on and following the relevant Review Date at the rate
applying immediately before such Review Date

	10.6.2
	Immediately
after the parties have agreed the amount of the open market rent or where the determination was referred to the Independent Surveyor immediately after he has notified
the parties of his decision the Tenant will forthwith pay to the Landlord the full amount of the difference (if any) between

	(a)
	the
total of the sums in respect of the Yearly Rent actually paid by the Tenant to the Landlord for the period starting on the relevant Review Date and ending on the day before the
quarter day which immediately follows the date of such agreement or notification and

	(b)
	the
total of the sums in respect of the Yearly Rent which would have been payable in respect of such period had such agreement or notification been made on or prior to such Review
Date

	10.6.3
	Where
any payment falls to be made by the Tenant to the Landlord pursuant to clause 10.6.2 the Tenant will at the same time
pay to the Landlord interest at 5% below the Prescribed 

28

 

Rate
on such payment in respect of the period beginning on the day on which each instalment was due and ending on the date of the payment made by the Tenant under clause 10.6.2 

10.7    Restrictions on increase    

        If
at any Review Date there is any restriction either on the amount of the rent payable by the Tenant or on this agreement to review the Yearly Rent then whenever that restriction is
modified or removed the Landlord may serve a notice on the Tenant to the effect that the day following such modification or removal will be a Review Date and the Review Provisions will apply as if
such date were a Review Date but without prejudice to the next Review Date 

10.8    Time not of the essence    

        Time
is not to be of the essence of any of the Review Provisions 

10.9    Memorandum    

        After
the open market rent has been ascertained in respect of a Review Date a memorandum signed by the Landlord and the Tenant recording the amount of the Yearly Rent so ascertained is
to be endorsed on or annexed to this lease and its counterpart (each party bearing its own costs) 

11.    SERVICE CHARGE    

11.1    Landlord's Covenant    

        The
Landlord covenants with the Tenant that subject to the Tenant paying the Service Charge the Landlord will keep the Common Parts in good repair and condition throughout the Term
provided that 

	11.1.1
	this
covenant does not apply to any works or repairs which the Tenant is liable to carry out under the provisions of this lease or which are necessary as a result of the default or
neglect of the Tenant

	11.1.2
	in
supplying the Landlord's Services the Landlord may employ managing agents contractors or such other suitably qualified persons as the Landlord may from time to time think fit
and whose fees salaries charges and expenses (including VAT) will form part of the Expenditure 

11.2    Variation of Landlord's Services    

        The
Landlord may at its reasonable discretion withhold add to extend vary or make any alterations to any of the Landlord's Services from time to time if the Landlord reasonably deems it
desirable to do so for the more efficient management security and operation of the Development Provided that the altered services shall be materially no less convenient to the Tenant 

11.3    Variation of the Development    

        If
at any time during the Term the total property vested in the Landlord which enjoys or is capable of enjoying the benefit of any of the Landlord's Services is extended or is increased
or decreased on a
permanent basis the Agreed Proportion will be varied with immediate effect and the variation will be determined reasonably by the Landlord's Surveyor (acting as an expert and not as an arbitrator) and
his decision will be final and binding on the parties 

	11.4
	The
Landlord shall operate the Service Charge accounts on an open book basis and shall make available to the Tenant for inspection evidence of Expenditure 

        EXECUTED as a deed and delivered on the date stated in the particulars 

29

  

 
 

SCHEDULE 1    
    
    The Premises    
    

        ALL THOSE premises known as Office Unit 1 Sheffield Airport Business Park shown for identification purposes edged
red on the attached plan together with all alterations additions and improvements made at any time during the Term 

30

 
 
 

SCHEDULE 2    
    
    Rights granted    
    

        This demise includes the following rights (to the extent of the Landlord's capacity to grant them) which (except for any which are expressed as exclusive rights)
are held in common with the Landlord and all others at any time so entitled and are granted for the benefit of the Tenant and anyone expressly or impliedly authorised by the Tenant to be at the
Premises: 

	1.
	The
right of way with or without vehicles along the Access Road at all times in connection with the proper use of the Premises

	2.
	The
free and uninterrupted use of the Conduits and the right to enter the Common Parts at reasonable times after reasonable notice to repair or inspect the Conduits provided that
access to the Development shall not be obstructed and any damage shall be made good by the Tenant forthwith 

31

 
 
 

SCHEDULE 3    
    
    Exceptions and reservations    
    

	1.
	Full
and free rights to enter the Premises at all reasonable times after reasonable notice (or at any time in an emergency) with or without surveyors agents workmen materials and
appliances to exercise any of the rights excepted reserved or contained in this lease or to comply with any obligation of the Landlord under this lease the person or persons exercising such rights
causing as little inconvenience as reasonably practicable and making good all damage to the Premises caused in the exercise of the rights but the Landlord will not be liable to the Tenant in respect
of any loss damage or claim arising from noise dust vibration noxious fumes odours or annoyance caused to the Tenant or any other person in connection with the exercise of those rights

	2.
	Full
right and liberty to build on alter add to redevelop or extend in height or otherwise any Adjoining Premises provided that the access of light and air to the Premises and its
lights windows and openings is not materially affected

	3.
	The
free and uninterrupted use of the Conduits and the right to enter the Premises at all reasonable times after reasonable notice (or at any time in an emergency) to install make
connection with clean alter renew remove replace or inspect the Conduits or any of them as the Landlord may require and during the Perpetuity Period to build additional Conduits or relay any existing
Conduits the person or persons exercising such rights causing as little inconvenience as reasonably practicable and making good all damage to the Premises caused in the exercise of the rights

	4.
	Full
right and liberty to enter the Premises at all reasonable times after reasonable notice as often as may be necessary to inspect repair maintain cleanse decorate or renew any
Adjoining Premises (including the right if necessary to erect and maintain scaffolding for the purpose of repairing or cleaning the exterior of any Adjoining Premises notwithstanding that such
scaffolding may temporarily interfere with the access to or enjoyment and use of the Premises) the person or persons exercising such rights causing as little inconvenience as reasonably practicable
and making good all damage to the Premises caused in the exercise of the rights

	5.
	Full
rights of lateral and subjacent support and protection from the Premises for any Adjoining Premises

	6.
	Full
rights of light and air and all other easements and rights now or at any time during the Term belonging to or enjoyed by any Adjoining Premises 

32

 
 
 

SCHEDULE 4    
    Matters to which this lease is subject    
    

        The matters contained or referred to in the registers of Title Number SYK 368427 so far as they relate to and affect the Premises 

33

 

	Original Only	 	 
	THE COMMON SEAL of
 TINSLEY PARK LIMITED

was affixed in the presence of:-	 	)

)

)
	

 	
 	
Director
	

 	
 	
Secretary
	

Counterpart Only	
 	

 
	EXECUTED as a DEED by

TRANSACTION NETWORK

SERVICES (UK) LIMITED

acting by:-	 	)

)

)

)
	

 	
 	
Director
	

 	
 	
Secretary
	
EXECUTED as a DEED by
 TRANSACTION NETWORK

SERVICES INC acting by:-	
 	

)

)

)
	

 	
 	
Director
	

 	
 	
Director/Secretary

34

QuickLinks

EXHIBIT 10.3

LEASE PARTICULARS

SCHEDULE 1 The Premises

SCHEDULE 2 Rights granted

SCHEDULE 3 Exceptions and reservations

SCHEDULE 4 Matters to which this lease is subject

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]