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COST PLAN

The costs of the first Centre in the USA, was the starting point providing a historical cost
base to work from, after which, once the initial drawings and specification were
complete, market testing and preparation of the Newcastle Centres independent cost
plan could be completed by Equals Consulting. The cost plan is in Appendix 8.

CENTRE SITE SUBLEASE

The Centurion Park land is owned by North Tyneside Council (also the planning
authority) with a (now) 71 years long lease to Keeping Inn Ltd (Subsidiary of STR group),
currently in renegotiation with the Council to be increased up to 120 years. The Council
has agreed to a sublease to HNL of the land required for the Centre and associated car
parking needs.

HNL and STR have agreed heads of terms for the sublease of the 11-acre site to HNL,
initially for 71 years and then rising to 120 years once the new Council lease is agreed.
The sublease tracks the terms of the Council lease, allowing for the development and
operation of the Centre. It has no abnormal or onerous conditions. The lease will be
granted for a premium of £1m payable on financial close. A rent is also payable at the
greater of £80k pa and 1.5% of net total Centre revenue, subject to a maximum of £120k
pa. The £80k rent minimum is indexed annually to RPI. In addition to the sublease, STR
will grant to HNL an option to acquire Centurion Park Golf Club and the course, in the
event that it decides to dispose of it. Hot Shots will also have an option to acquire the
course in due time.

The agreed heads of terms for the sublease are in Appendix 16.

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