TERMINAL SCHEDULE OF DILAPIDATIONS

TERMINAL SCHEDULE OF DILAPIDATIONS Relating to premises known as GROUND FLOOR, FIRST FLOOR AND SECOND FLOOR PART OF Property Address Under the terms of the lease dated 21 st December, 2006 Made Between LTD and Landlords Surveyors Chartered Surveyors Manchester Surveyor's Acting for Tenants DEESURVEYS (Chartered Surveyors) Chester Page 1 of 19

PREAMBLE This schedule has been prepared by upon the instructions of Ltd. It was prepared following inspection of the premises known as Manchester,. It records the works required to be done to the premises in order that they are put into the condition the premises should have been put if the Tenant, had complied with its covenants contained within its lease of the premises dated. The covenants of the said lease with which the Tenant should have complied are as follows: 5. The Tenant is to comply with the following duties in relation to the property 5.1 to maintain the state and condition of the inside of the property but the Tenant need not alter or improve it except if required in clause 5.10 5.2 to decorate the inside of the property (a) in the calendar year 2007 and every fifth year thereafter (b) in the last three months of the lease period (however it ends) except to the extent that it has been decorated in the year. 5.3 where the property has a shop front to maintain and decorate it 5.4 when decorating, the tenants is to use the colours and the types of finish used ly 5.5 but the Tenant need only make good damage caused by an insured risk to the extent that the insurance money has not been paid because of any act or default of the Tenant the inside of the property is to include all ceilings, floors, doors, door frames windows window frames and the plate glass and the internal surfaces of all was but is to exclude joists immediately above the ceilings and supporting floors. 5.7 not to make any structural alterations, external alterations or additions to the property. 5.8 not to make any other alterations unless with the Landlord's consent in writing (and the Landlord is not entitled to withhold or delay that consent unreasonably) 5.9 to keep any plate glass in the property insured for its full replacement cost with reputable insurers, to give the Landlord details of that insurance on request, and to replace any plate glass which becomes damaged. 5.10 to do the work to the property which any authority acting under an Act of Parliament requires even if it alters or improves the property. Before the Tenant does so, the Landlord is to give his consent in writing to the work which consent cannot be withheld or delayed. 5.11 if the Tenant fails to do any work which this lease requires him to do and the Landlord gives him written notice to do it, the Tenant is to: (a) complete the work within two months or immediately in case of emergency, and (b) proceed diligently with the work (c) in default, permit the Landlord to do the work Page 2 of 19

The following schedule contains: reference to the specific clause (quoted above) under which the repairing obligation arises, the breach complained of, the remedial works suggested by the landlord s surveyor,, FRICS, as suitable for remedying the breach complained of, the view on the cost of the works. The schedule contains the true views of, FRICS, being the surveyor employed by the Landlord to prepare the schedule.. Upon receipt of this schedule, the Tenant should respond as required by the Protocol to enable the Landlord to understand clearly the Tenant's views on each item of the claim. Notes: unless otherwise stated in the schedule and to avoid repetition, the standard to be applied under the term redecorate is as follows: Strip walls and ceiling; patch plaster; prepare; apply bonding agent if required followed by 1000 gauge lining paper and minimum 2 coats emulsion paint of approved shade. Paint in kitchens and bathrooms to be eggshell. New woodwork to be knotted, stopped, primed and painted 2 undercoats and 1 gloss finish. Existing woodwork to be sugar soaped, prepared and painted 1 undercoat and 1 gloss finish. Pre-existing woodchip or vinyl paper which is suitable for painting to be painted 2 coats emulsion paint of approved shade. Page 3 of 19

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SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s 1.00 Internal - Second Floor Front Stock Room 1.1 5.1 Cracked, defective uneven Take up cracked, uneven, worn, quarry tiled floor surface. unhygienic quarry tiled floor surface. Dispose. Provide new underlay as required in ply and afterwards provide and lay replacement tiles completed with waterproof grout and leave hygienic. 1.2 5.1 1.3 5.1 1.4 5.1 1.5 5.1 Broken window glazing. Defective sash window frames with broken sash cords. Dirty, defective fluorescent lighting. Dirty emergency lighting luminaire. Remove temporary boarding and re-glaze 2 no. broken window panes. Overhaul 3 sliding sash window frames including replacement of defective sash cords and pullies and leave in full working order. Clean and overhaul 2 no fluorescent light fittings and provide and fix replacement diffusers. Leave in full working order. Quarry tiling on a suspended timber floor is an inappropriate covering and is liable to lift and crack. Floor also saturated via roof leaks resulting in roof recover during tenancy. Witness statement confirms floor in damaged condition during tenancy. Already broken on entry. See witness statement. Already broken on entry. See witness statement. tenancy. Our views remain. 120 120 tenancy. Our views remain. 15 15 tenancy. Our views remain. 30 30 Clean emergency light luminaire. 5 5 5 15.00 15.00 15.00 Kitchen 1.6 5.1 Dirty wall tiling and grout. Thoroughly clean all the wall tiles and rake out and renew the grout and leave hygienic. Thorough clean agreed. Grout is many years old; fair wear and tear. Disagree to clean only. 45 20 20 Page 5 of 19

rake out and grout Carried Forward 2,165.00 265.00 1,915.00 000 Page 6 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s Brought Forward 1915.00 000 1.7 5.1 Grease encrusted ceiling and ancillary pipework. Degrease the ceiling and pipework and ancillary fixtures and fittings and prepare for redecoration. Ceiling not degreased and decorated on tenants entry. Tenant acceptable to 50% of Landlords cost Not agreed. Redecoration is a specific requirement and degreasing essential to enable this to be done. 25 125.00 25 125.00 1.8 5.1 1.9 5.1 Defective, loose, broken, unhygienic floor tiling. Take up defective quarry tiled and ceramic tiled floor surface and dispose. Allow for making good repair of timber treatment to any water damaged floor timbers below, prepare surface and afterwards retile using quarry tile with waterproof adhesive and grout and leave hygienic. Please see our above under 1.1 - ditto tenancy. Our views remain. 250 1.10 5.1 Defective, dirty fluorescent lighting. Clean, service and re-tube 3 no. fluorescent light fittings. 75.00 75.00 75.00 1.11 5.1 Dirty fire escape luminaire. Clean and degrease fire escape luminaire. 15.00 15.00 15.00 1.12 5.1 Staff Toilet Delaminated, defective internal door and handle. Take off delaminated defective internal door and handle set. Provide and fix replacement door and handle set. In this condition when tenant took occupation. See witness statement. tenancy. Our views remain. 125.00 125.00 1.13 5.1 Dirty sanitary ware. Clean down sanitary ware. 25.00 25.00 25.00 Page 7 of 19

1.14 5.1 Dirty tiling and grout. Clean down wall tiling full height and rake out and renew grout and leave hygienic. Clean down agreed. Grout many years old; fair wear and tear. Rake out and grout not accepted clean only 15 5 5 Carried Forward 5,305.00 555.00 4,955.00 125.00 Page 8 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s Brought Forward 4955.00 125.00 1.15 5.1 Multi point heater requires service and GasSafe' certificate. Service and re-commission Main Medway multipoint gas fired water heater. Current boiler installed by tenant because landlords boiler in poor condition. Tenant feels landlord should bear any further costs. Not agreed. 10 10 1.16 5.1 Hole to ceiling. Make good to hole to ceiling approximately 300mm². Existed when tenant took occupation. See witness statement. tenancy. Our views remain. 2 2 1.17 5.1 Defective/loose quarry tiles. Take up and renew 12 no. defective or insecure quarry tiles. See our above under1.1. Ditto. tenancy. Our views remain. 3 3 1.18 5.1 Unhygienic tiling. Make good to unhygienic tiling at the WC branch connection position. 25.00 25.00 25.00 1.19 5.1 Defective, rotted door. Take off defective rotted door between Kitchen and Cloakroom and provide and fix replacement door complete with furniture. Door now obsolete via normal high use fair wear and tear over many years tenancy. Our views remain. 125.00 125.00 Second Floor Generally 1.20 5.2 5.4 Redecoration required as per covenant. Redecorate throughout the second floor to the general standard set down in the preamble. (All surfaces will need to be degreased before painting.) Not newly decorated at commencement of the tenancy. Tenant agrees to 50 % of the landlords proposed cost of decoration. See witness statement. Redecoration is a specific requirement of the lease. 150 75 150 75 Carried Forward 7105.00 133 6755.00 875.00 Page 9 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s 1.21 5.1 First Floor Restaurant Area Lighting luminaires dirty. Clean and service the emergency lighting luminaires. Brought Forward 7105.00 133 6755.00 875.00 75.00 75.00 75.00 1.22 5.1 Grid inlay pattern ceiling tiles dirty and marked. Take down, clean and refit smooth faced grid inlay pattern ceiling tiles, clean grids and leave clean and hygienic. The ceiling structure has existed for many years and was not newly cleaned for tenant at commencement of the tenancy. Previous fair wear and tear to be allowed. Tenant agrees 50 % of the landlords proposed cost. See witness statement. tenancy. Our views remain 125 625.00 125 625.00 1.23 5.2 5.4 Redecoration required as per lease covenant. Redecorate the restaurant area to the general standard set down in the preamble. Not newly decorated before tenancy commenced. Tenant agrees 50 % of the landlords proposed cost of decoration. See witness statement. Redecoration is a specific requirement of the lease. 150 75 150 75 1.24 5.1 Loose panelling to internal rainwater pipe. Resecure the panelling to the internal rainwater pipe and make good. Landlord took off to attend to repair and did not put back on. Tenant unable to put back on also. No evidence that landlord removed item. 15 15 Ladies Toilets 1.25 5.1 Casing to door damaged. Make good to damaged door casing. 2 2 2 1.26 5.1 Defective unhygienic Take up defective thermoplastic tiles to the floor surface. Make Floor surface was in poor condition when tenant took 15 75.00 15 75.00 Page 10 of 19

thermoplastic tiled floor. good to the surface, overboard and afterwards provide and lay replacement thermoplastic tiles. occupation. Tenant has replaced the covering which needs replacing again through wear and tear. Tenant agrees to 50 % share of the Landlords cost. See witness statement. tenancy. Our views remain Carried Forward 1025 2875.00 990 2325.00 Page 11 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s 1.27 5.1 Broken wall tiles and defective grout. Replace 3 no. broken wall tiles and afterwards rake out and regrout the remaining area of the tiles. Re-secure any loose tiles approximately 4m². Tenant agrees to repair the base of the right toilet party wall and to re-tile the area repaired. WC tiles poorly fitted originally. Rake out and grout of remaining area not accepted. Brought Forward 1025 2875.00 990 175.00 12 12 2325.00 1.28 5.1 Perimeter sealants defective. Reseal perimeter of vanitory units. Fair wear and tear 15.00 1.29 5.1 Sanitaryware requires cleaning. Clean down sanitary ware and vanitory units. 15.00 15.00 15.00 1.30 5.1 Redecoration required as per lease covenant. Make good to ceiling damage and afterwards renew the decorations throughout the ladies toilets to the general standard set down in the preamble. The ceiling was damaged when the tenant moved in. Tenant agrees to decorate provided landlord repairs the damage. See witness statement. tenancy. Our views remain 275.00 225.00 275.00 225.00 1.31 5.1 1.32 5.1 Gents Toilets Insecure top to cistern. Re-secure top to flush mechanism to urinal. Sanitaryware requires cleaning. This has always been damaged. See witness statement. Clean down the sanitary ware tenancy. Our views remain 1 1 25.00 25.00 25.00 1.33 5.1 Wall tiles require cleaning and re-grouting. Clean down the wall tiles and regrout. Cleaning agreed. Grout many years old; fair wear and tear. Rake out and grout not accepted Clean only. 175.00 5 5 Page 12 of 19

1.34 5.1 Broken tile. Replace broken tile above door. 1 1 1 1.35 5.1 Dirty luminaire. Clean down the luminaires 1 1 1 Carried Forward 1096 333 10415.00 255 Page 13 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s Brought Forward. 1096 333 10415.00 255 1.36 5.1 Extractor fan dirt encrusted. Clean and service extractor fan. 25.00 25.00 25.00 1.37 5.1 Wash basin insecure. Plug missing. Re-secure wash hand basin and reseal perimeter and provide plug. There are no brackets to support this sink unit and this is why the sink unit is loose. Landlords responsibility and No plug provided. tenancy. Our views remain. 3 3 1.38 5.1 Defective unhygienic thermoplastic floor tiles. Take up defective thermoplastic tiles to the floor surface. Make good to the surface, overboard and afterwards provide and lay replacement thermoplastic tiles. Floor surface was in poor condition when tenant took occupation. Tenant has replaced the covering which needs replacing again through wear and tear. Tenant agrees to 50 % share of the Landlords cost. See witness statement. tenancy. Our views remain 15 75.00 15 75.00 1.39 5.2 5.4 Redecoration required as per lease covenant. Redecorate to the general standard set down in the preamble. 20 20 20 1.40 5.1 Ground Floor Restaurant and Bar Dirty and marked false ceiling tiles and some lifted tiles. Take down where necessary and afterwards clean the suspended ceiling tiles and grids. Reset any that are incorrectly laid and leave clean and tidy as finished work. The ceiling structure has existed for many years and was not cleaned for tenant prior to commencement of the tenancy. Previous fair wear and tear to be allowed. Tenant agrees to pay 50% of the landlords proposed cost. See witness statement. tenancy. Our views remain 125 625.00 125 625.00 Carried Forward 12615.00 4255.00 1207 325 Page 14 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s 1.41 5.2 5.4 Redecoration required as per lease covenant. Redecorate throughout the ground floor area to the general standard set down in the preamble. Not newly decorated for the tenant on entry. The tenant has decorated on two occasions during the tenancy. See witness statement. Brought Forward Redecoration is a specific requirement of the lease. 12615.00 4255.00 1207 150 150 325 1.42 5.1 Fire alarm and emergency lighting systems require testing. Service, test and re-commission the fire alarm and emergency lighting systems. 25 25 25 25 1.43 5.1 Electrical installation throughout is defective in parts and requires testing. Commission a periodical electrical inspection test of the electrical installation throughout the property. Carry out any remedial work recommended and issue 17 th Edition Completion Certificate. Tenant requested an electrical test certificate from landlord prior to commencement of the tenancy but none provided Not agreed. 25 25 1.44 5.1 Worn, dirty mat. Renew worn, dirty mat and carpet to entrance vestibule. Tenant replaced the original well worn mat on entry and now fair wear and tear. 7 1.45 5.1 Worn, dirty and unhygienic floor covering. Renew worn, defective, unhygienic floor covering to the rear of the bar area. Provisional cost Floor covering was not new on entry therefore fair wear and tear should be provided for. Tenant agrees to replace the heavily worn section between the bar entrance and the exterior elevation tenancy. Our views remain 12 5 12 Rear Fire Escape Area 1.46 5.1 Tenant s items stored on fire escape. Clear away the tenant s goods and equipment. The defunct refrigerator on the landing belongs to the landlord. Tenant has tried to remove it through the rear exit but item is too large. Tenant will clear any other items. except as to cost. 10 25.00 5 Carried Forward 14905.00 458 1424 350 Page 15 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s 1.47 5.1 Fire escape handrail and staircase require degreasing for safety purposes. Degrease metal staircase and handrail. Brought Forward 14905.00 458 1424 15 15 15 350 1.48 5.1 Defective bulkhead fitting. Replace damaged bulkhead light fitting at ground floor level. 25.00 25.00 25.00 1.49 5.2 5.4 Redecoration required. Renew paintwork to rear fire escape door. 25.00 25.00 25.00 1.50 5.1 Redecoration required. Clean out the fire escape area and redecorate comprising two coats of emulsion paint to the wall surfaces usually so treated. Section of plaster has always been missing and a section of the textured finish has always been missing. The area has not been decorated for many years. Tenant agrees to 50% share of the landlords proposed cost. See witness statement. 15 75.00 75.00 1.51 5.1 Central heating boiler requires service. Clean, service and recommission Ravenheat combination boiler and leave in full working order. This work to be undertaken by a GasSafe' heating engineer. No gas safety certificate was provided by the landlord for the tenant prior to commencement of the lease. Tenant replaced the boiler during the tenancy at own expense and feels that no further costs should ensue Not agreed. If replaced by tenant, a Gas Safety Certificate is a legal requirement. 25 25 TT should not have had to replace the boiler at own expense and deserves recompense 2.00 External 2.1 5.3 Tenant s sign requires removing and shop front requires redecorating. Take down the tenant s signage and make good to surfaces and redecorate to shop, front and Tenant Agrees to remove sign. Has decorated during the tenancy. Frontage not Page 16 of 19 25 10 10

surround. newly decorated at end of last tenancy. Fair wear and tear. See witness statement. Carried Forward 15755.00 4955.00 14865.00 350 Page 17 of 19

SCHEDULE OF DILAPIDATIONS RE: Item Clause Breach Complained of Remedial Work Required Tenant's Comments Comments item Tenant's Tenant s Item Tenant s Add 1. Sub Total Surveyor s Fees for preparation of schedule. 2 Surveyor s Fees for supervision @ 15% Sub Total Tenant s surveyors fee for supervision @10% Brought Forward 10% 3 VAT @ 15% VAT @17.5% 17.5% 4 Rent for 6 weeks to enable work to be undertaken at 73 per week. Total Claim Tenant prepared for work to be carried out during last two weeks of tenancy presuming prompt agreement on tenants and costs. Unlikely to be capable of being undertaken in 2 weeks. Compromise at 4 weeks. 15755.00 4955.00 14865.00 350 15755.00 4955.00 14865.00 350 575.00 575.00 575.00 575.00 2363.25 495.50 1486.50 35 18693.25 6025.50 16926.50 4425.00 2803.98 1054.46 2962.14 774.38 438 2920.10 25877.23 7079.96 22808.64 5199.38 Page 18 of 19

STATEMENT OF TRUTH i) ii) iii) iv) I hereby declare:- that the report includes all facts which I regard as being relevant to the opinion which I have expressed and that the Court s attention has been drawn to any matter which would affect the validity of my opinion; that the report complies with the requirements of the Royal Institution of Chartered Surveyors, as set down in Surveyors Acting as Expert Witnesses Practice Statement; and:- that I understand my duty to the Court and believe I have complied with that duty. That I believe that the facts I have stated in the report as true and the opinions I have expressed are correct. Date : Signed Landlords Surveyors Chartered Surveyors Manchester Date : Signed : Acting For The Tenants DEESURVEYS Chartered Surveyors (a company regulated by the RICS) 1 Cowhey Close Chester CH47QT Page 19 of 19