Document:

exv10w5

 

Exhibit
10.5

HEYRAM PROPERTIES PTY. LTD.

A C N 067 342 385

(Lessor)

and

UNIVERSAL BIOSENSORS PTY LTD

ABN 35 098 234 309

(Lessee)

and

(Guarantor)

L E A S E

Premises: 1 Corporate Avenue Rowville, Victoria 3178

KAHNS LAWYERS

Level 9

341 Queen Street

MELBOURNE VIC 3000

Ref: JC:PF/06/7340

 

 

THIS LEASE is made on 16th October 2006

	 	 	 	 	 
	BETWEEN:

	 	HEYRAM PROPERTIES PTY LTD ACN 067 342 385

of 1 Corporate Avenue Rowville Vic 3178
	 	(“Lessor”)
	 
	 	 	 	 
	AND:

	 	UNIVERSAL BIOSENSORS PTY LTD ABN
35 098 234 309

of 103 Ricketts Road Mt Waverley Vic 3149
	 	(“Lessee”)

RECITALS:

	A.	 	The Lessor is registered as the proprietor of the Land on which the Premises is located.
	 
	B.	 	The Lessor has agreed to grant to the Lessee and the Lessee has agreed to take from the
Lessor a lease of the Premises for the Term at the rental and subject to the covenants and
conditions as hereinafter appearing.
	 
	1.	 	DEFINITIONS AND INTERPRETATION
	 
	 	 	In this Lease unless the context otherwise requires:
	 
	 	 	“Act” means the Retail Leases Act 2003.
	 
	 	 	“Building” means the building known as and situate at the place specified in Item 2 of
the Schedule.
	 
	 	 	“chattels” means the items specified in the Schedule.
	 
	 	 	“Clause” means a clause in this Lease.
	 
	 	 	“Commencement Date” means the date specified
in item 5 of the Schedule.
	 
	 	 	“Further Term” means the further term or terms specified in the Schedule.
	 
	 	 	“GST” means GST within the meaning of the GST Act.
	 
	 	 	“GST Act” means the A New Tax System (Goods and Services Tax) Act 1999 (as amended).
	 
	 	 	“Guarantor” means the guarantor referred to in the Schedule and his heirs executors
administrators and assigns and if the Guarantor is a corporation its successors and
permitted assigns.
	 
	 	 	“Land” means the land described in the Schedule.
	 
	 	 	“Lease” means this lease including any schedule, appendix and annexure hereto.
	 
	 	 	“Lessee” means the Lessee and his heirs executors administrators and assigns and if the
Lessee is a corporation its successors and permitted assigns.
	 
	 	 	“Lessor” means the Lessor his successors and assigns or other person entitled to the
reversion immediately expectant upon the termination of the Term and includes any person
claiming through or under the Lessor.
	 
	 	 	“Lessor’s Fixtures” means all fixtures fittings plant equipment air-conditioning and
ventilation equipment lifts and escalators (if any) partitions goods chattels or other
items brought on to the Premises by the Lessor and shall exclude any equipment,
partitions goods chattels or other items installed by the Lessee.
	 
	 	 	“Outgoings Year” means each 12 month period from 1 July to 30 June of the following year.
	 
	 	 	“Permitted Use” means the use specified in the Schedule.
	 
	 	 	“Premises” means the premises specified in the Schedule and includes the Lessor’s
Fixtures provided that where the said premises form part of a building the premises shall
not include the outside walls bounding the premises.
	 
	 	 	“rental” means the rental specified in the Schedule or as adjusted varied or reviewed
from time to time and a reference to the word “rent” shall be a reference to the word
rental and vice versa.
	 
	 	 	“Schedule” means the schedule to this Lease.
	 
	 	 	“Term” means the term specified in the Schedule.
	 
	 	 	Words importing the singular include the plural and vice versa and the masculine gender
the feminine or neuter and vice versa and words importing persons include corporations
and vice versa.
	 
	 	 	A person includes the legal personal representative successors and assigns of that
person.
	 
	 	 	Where two or more Lessees are parties hereto the covenants obligations and agreements on
their part herein contained refer to and shall bind them and any two or greater number of
them jointly and each of them severally.
	 
	 	 	A reference to a statute includes all regulations under and amendments to that statute
whether by subsequent statute or otherwise and statute passed in substitution for the
statute referred to or incorporating any of its provisions.
	 
	 	 	Any headings or marginal notes have been inserted for guidance only and do not form part
of this Lease.

 

 

	2.	 	DEMISE
	 
	 	 	In consideration of the rents covenants and conditions hereinafter reserved and contained
and on the part of the Lessee to be observed and performed the Lessor subject to the
covenants conditions powers reservations and provisos herein contained HEREBY LEASES to
the Lessee the Premises TOGETHER WITH the chattels described in the Schedule TO HOLD for
the Term and at the rental set out in the Schedule.
	 
	3.	 	LESSEE’S POSITIVE COVENANTS
	 
	3.1	 	Rental
	 
	 	 	During the continuance of the Term the Lessee shall duly and punctually to pay to the
Lessor the rental (together with GST) by the payments at the times and in the manner
provided in the Schedule.
	 
	3.2	 	Review of Rental
	 
	 	 	The rental shall be reviewed at the times and in the manner provided in the Schedule.
	 
	3.3	 	Deductions

	 
	 	 	The Lessee shall not at any time deduct or set-off any monies payable or claimed by the Lessee to be payable by the Lessor
from or against any rental or other monies payable by the Lessee to the Lessor pursuant to any of the provisions hereof.
	 
	3.4	 	Rates and Outgoings
	 
	3.4.1	 	The Lessee shall pay or at the election of the Lessor reimburse the Lessor for all the
following proper and reasonable costs, expenses, rates, taxes, charges, assessment,
impositions and the like with respect to this Lease and the Premises during the Term hereof
(but excluding those items listed in clause 3.4.3):

	 	(a)	 	all municipal and other rates taxes assessments and charges levies and
impositions including water consumption, excess water charges and state land tax
(assessed on the basis that the Land is the only land owned by the Lessor);
	 
	 	(b)	 	all telephone electricity gas and other like outgoings;
	 
	 	(c)	 	all reasonable costs, expenses and other outgoings incurred by the Lessor
to repair and maintain the Premises and the Lessor’s Fixtures [where required by the
Act];
	 
	 	(d)	 	any other rates taxes charges assessments or other impositions which
shall during the term of this Lease or any extension thereof be imposed or charged
in connection with the provision of any off street parking or other like service or
the cost of construction thereof;
	 
	 	(e)	 	the insurance premiums referred to in Clauses 3.11 and 4.16 hereof;
	 
	 	(f)	 	all charges connected with the operation of the Lessee’s business on the
Premises including all licence and inspection fees in respect thereof; and
	 
	 	(g)	 	any body corporate or like fees, charges levies or expenses payable by
the Lessor in respect of the Premises.

	 	 	(to be referred to as “Outgoings”) save that where the Act applies, the Lessor may only
require payment or reimbursement by the Lessee of such rates, taxes, expenses and other
outgoings as are not prohibited from recovery from the Lessee under the Act.
	 
	3.4.2	 	To the extent that any of the said costs, expenses, rates, taxes, charges, levies,
assessments, impositions and the like shall not be separately assessed in respect of the
Premises then the Lessee shall pay that proportion of the whole which the area of the Premises
bears to the total area comprised in the relevant charge or assessment. Despite the foregoing
the parties agree that the area occupied by the telecommunications tower pursuant to the
telecommunications tower lease shall be disregarded and shall not be taken into account to
reduce the Lessee’s liability to pay outgoings. To the extent that any such periodic costs,
expenses, rates, taxes, charges, levies, impositions and the like are for a period not
coinciding with the Term of this Lease then any appropriate adjustments shall be made at the
commencement and at the end of the Term.
	 
	3.4.3	 	The following Outgoings shall be excluded:

	 	(a)	 	capital expenditure by the Lessor on plant, machinery, equipment or
structural repairs to the building (not caused by the Lessee’s fit out);
	 
	 	(b)	 	any liability or expenditure payable by or recoverable from some other
lessee or lessees of the building or from any other person (such as income from a
third party advertiser or telecommunications aerial);

 

 

	 	(c)	 	any liability or expenditure recoverable by the Lessor through a claim on
the Lessor’s insurance policies for the building, including when an insurance claim
is in progress;
	 
	 	(d)	 	costs, expenses and interest in connection with money borrowed by the
Lessor and;
	 
	 	(e)	 	any other capital expenditure or deduction which should not be considered
an outgoing or operating expense of the Building under normal accounting policies or
practice; and
	 
	 	(f)	 	income tax payable by the Lessor.

	3.4.4	 	The Lessor must provide an Outgoings reconciliation within 3 months of the end of the
Outgoings Year. The Lessee shall have the right to audit the outgoings.
	 
	3.4.5	 	The Lessee will be required to pay the Lessor’s cost of undertaking an annual Occupational
Health and Safety (OH&S) audit. The cost of the OH&S audit will be borne by the Lessee and
recovered through the Outgoings. The Lessor agrees that before conducting an OH&S Audit, it
will review the Lessee’s building specifications and operating procedures that are required to
be maintained by certain government and regulatory authorities in the conduct of the Lessee’s
business. Should the information provided by the Lessee suffice, the OH&S Audit may be waived
at the Lessor’s discretion, acting reasonably.
	 
	3.4.6	 	For the avoidance of doubt, the Lessee is obligated to pay Outgoings for the general upkeep
of the building, including but not limited to gardening, cleaning, insurances and general
operational charges. The Lessee is not obliged to pay capital based building costs such as
external painting, machinery replacement, or costs relating to potential design faults of the
building such as cracked pavements.
	 
	3.5	 	Repairs and Cleaning
	 
	3.5.1	 	At all times during the Term the Lessee will and sufficiently at his own cost repair clean
maintain and keep in such good order and condition as at present the Premises and all fixtures
fittings (including maintenance of the air-conditioning producing evidence of a current
maintenance contract on demand by the Lessor) and things belonging thereto or which at any
time during the Term shall be erected or put therein by the Lessor or by the Lessee with the
Lessor’s consent reasonable wear and tear and damage by fire storm or tempest excepted and to
keep and at the expiration or sooner determination thereof peaceably and quietly to yield and
give up unto the Lessor the Premises with the appurtenances and all fixtures fittings and
things therein including the Lessor’s Fixtures in a good state of repair order and condition
as at present reasonable wear and tear and damage by fire storm or tempest excepted (the
Lessee having the right during the continuance of the Term to remove any fixtures and fittings
supplied by the Lessee during the Term provided the Lessee shall make good to the satisfaction
of the Lessor any damage caused by such removal) PROVIDED ALWAYS that any damage caused by
fire storm or tempest as aforesaid shall not be excepted where any insurance moneys on the
Premises or the Building or any property therein are non recoverable by the Lessor in
consequence of some act or default of the Lessee or the servants licensees agents or invitees
of the Lessee. In this clause the word “repair” shall include the cleaning and keeping free
of all drains and waste pipes which are exclusively serving the Demised Premises.
	 
	3.5.2	 	The Lessee shall:

	 	(a)	 	immediately repair and replace all broken glass and all damaged or broken
heating lighting electrical equipment and plumbing installed in the Premises and all
doors fastenings windows locks and keys and all the Lessor’s Fixtures and in the
case of breakage of exterior plate glass or other windows to replace the same with
glass or similar quality; and
	 
	 	(b)	 	regularly clean the Premises (including all windows and doors) and to
keep the same free from dirt and rubbish and to store all refuse in proper
receptacles and arrange for the regular removal thereof from the Premises.

	3.5.3	 	Nothing in this Clause 3.5 obliges the Lessee to carry out structural repairs or alterations
to the Premises or to be responsible for the cost thereof unless caused or contributed by (and
then only to the extent caused or contributed by):

	 	(a)	 	Lessee alterations to the Premises required to be amended back to the
requirements of the Lessor;
	 
	 	(b)	 	some negligent act, omission or default by the Lessee or its employees,
servants or agents;
	 
	 	(c)	 	failure by the Lessee to perform its obligations under this Lease; or

	 
	 	(d)	 	the Lessee’s particular use of the Premises.

	3.5.4	 	The Lessee will be responsible for the organization of the contracts, and the charges
associated with the ongoing operational maintenance of the Premises during the Term of the
Lease. The Lessor may provide guidance relating to the preferred contractors to be used by
the Lessee, with reasonable endeavours made to use them where possible.

 

 

	3.6	 	Fittings
	 
	 	 	Subject to clauses 4.8.4 and 4.8.5 hereof if the Lessee
shall not have removed as of right any fixtures, fittings
and things supplied by him during the Term of the Lease
the Lessor may at his option himself cause any such
fixtures fittings or things to be removed and any damage
resulting to be made good and any alteration to be
re-altered and may recover the costs thereof from the
Lessee as a liquidated debt payable on demand. Any
fittings fixtures or things not removed by the Lessee as
of right or by requirement of the Lessor shall at the
expiration of the Term be deemed abandoned by the Lessee
and shall thereafter be and become the property of the
Lessor.
	 
	3.7	 	Chattels
	 
	 	 	The Lessee shall keep the chattels clean and in good
repair order and condition as at present reasonable wear
and tear and damage by fire storm or tempest excepted
(subject to the recovery of insurance moneys as
aforesaid) and to make good all damage thereto and to
replace with similar articles of at least equal value to
the reasonable satisfaction of the Lessor all such
chattels as may at any time be destroyed or lost or so
damaged as to be incapable of complete re-instatement to
their former condition and not without the previous
written consent of the Lessor to remove or permit to be
removed from the Demised Premises (except only for the
purpose of necessary repairs) any of the chattels.
	 
	3.8	 	Garden
	 
	 	 	The Lessee shall cut maintain cultivate manage and manure
any lawn and/or garden included in the Demised Premises
in a good and proper manner and to replace any lawn trees
or shrubs which may perish or be damaged removed or
destroyed other than as a result of fire storm or
tempest.
	 
	3.9	 	Lessor’s Entry and Defects
	 
	3.9.1	 	Subject to clause 3.9.2, the Lessee shall permit the Lessor his employees agents architects
surveyors builders and workmen (subject to the right of supervision under clause 3.9.2) with
all necessary materials equipment and appliances from time to time to enter upon the Premises
at all reasonable times and upon reasonable notice (being at least two business days’ written
notice) but at any time and without any notice in the case of an emergency:

	 	(a)	 	to carry out any works or make any repairs or alterations or additions to
the Premises and to enter upon all or any part of the Premises and to use the same
for the purposes of effecting or carrying out any repairs alterations or additions
or other works which the Lessor may consider necessary desirable or should have been
completed by the Lessee under the Lease to any part of the Premises and/or of the
Building;
	 
	 	(b)	 	when and as often as the Lessor shall require to view the state of repair
and condition thereof and to make such reasonable investigations as the Lessor may
deem necessary for the purpose of ascertaining whether or not there has been any
breach of any of the covenants and conditions herein contained and to serve upon the
Lessee a notice in writing of any want of repair or maintenance requiring the Lessee
to repair the same in accordance with any covenant herein contained;
	 
	 	(c)	 	for the purpose of complying with the terms of any present or future
legislation affecting the Premises or of any notice served upon the Lessor or the
Lessee by any governmental semi-governmental municipal health licensing civic or
other competent authority for the purpose of carrying out any repairs alterations or
works (including the providing of lighting power and telephone services to the
Lessee and any other purposes the effecting of which necessitates access to the
ceilings walls or floors in the Premises) and also for the purpose of exercising the
powers and authorities of the Lessor hereunder; and
	 
	 	(d)	 	In the event of the Premises and/or the Building being destroyed or
damaged for the purpose of rebuilding the same or making the Premises and/or the
Building fit for the occupation and use thereof by the Lessee and by the other
occupiers thereof.

	3.9.2	 	The Lessor acknowledges that the Lessee will use the Premises for the manufacture of sensors
and will be required to impose high standards of safety, hygiene and cleanliness particularly
in respect to laboratories and clean rooms. For this reason, the Lessee may grant access on
the condition of close individual supervision the Lessor’s architects, workmen and contractors
at all times while working in the Premises to ensure compliance with the strict regime of
safety and cleanliness.
	 
	3.9.3	 	Where the Lessee has failed to repair and maintain the Premises in accordance with the
provisions of this Lease within twenty-one (21) days of the date of service of any notice from
the Lessor requiring the Lessee so to do in accordance with that notice, the Lessor may
execute all or any of the required repairs

 

 

	 	 	as the Lessor shall think fit and without prejudice to the Lessor’s other remedies the
Lessee shall pay to the Lessor the cost of such repairs as the Lessee ought to have
effected.
	 
	3.9.4	 	In exercising its rights under Clause 3.8 the Lessor shall act reasonably in all the circumstances.
	 
	3.10	 	Creation of Easement
	 
	 	 	For the purpose of the provision of public or private access to and egress from the Premises or the support of structures
erected or hereafter erected on any adjoining lands or of services (including water drainage gas and electricity supply
and telephonic and electronic communication services) the Lessee hereby permits the Lessor to transfer grant or create
any easement licence privilege or other right or dedicate land in favour of any of the owners lessees tenants or
occupiers or other persons interested in any land adjacent or near to the Premises or any public authority as the Lessor
thinks fit and this Lease shall be deemed to be subject to any such easement licence privilege or other right or
dedication PROVIDED HOWEVER that the Lessor in the exercise of the rights herein conferred shall not dedicate land or
transfer grant or create any easement licence privilege or other right to any other person which would substantially and
permanently derogate from the enjoyment of rights conferred on the Lessee by this Lease.

	 
	3.11	 	Insurance
	 
	3.11.1	 	The Lessee shall effect and keep current during the Term hereby created policies of
insurance in the name of the Lessee and the Lessor in respect of the Premises for plate glass,
fire, storm, tempest malicious damage, water damage, public risk ($20 million) and such other
risks and for such amounts as the Lessor shall reasonably require and upon request to produce
to the Lessor evidence of such policies and of the currency thereof. Responsibility for
arranging Public Liability Insurance lies with the Lessee. The Lessee shall not require the
Lessor’s consent for a change of insurer provided the insurer is of sufficient standing to
meet any claim and is represented in Australia. The Lessor’s interest shall be noted on the
policy and copies of the insurance certificate will be provided on demand. At no time shall
the policy of documents be provided.
	 
	3.12	 	Orders
	 
	3.12.1	 	The Lessee shall comply with and observe all notices orders and directions given to either
the Lessee or the Lessor by any statutory or public authority relating to the Premises and
shall carry out the requirements thereof at his own expense.
	 
	3.12.2	 	This Clause shall not impose any liability on the Lessee in respect of structural repairs or
alterations to the Premises except where any such notice order or direction that requires the
carrying out of structural repairs or alterations to the Premises and has been occasioned by
the nature of the Lessee’s business or by his use of the Premises whether permitted under this
Lease or not or by the act neglect or default of the Lessee.
	 
	3.13	 	Use of Building and Premises
	 
	 	 	The Lessee shall:

	 	(a)	 	unless prevented by fire storm civil commotion Act of god tempest or
earthquake or other inevitable happening continuously to use the Premises; and
	 
	 	(c)	 	use the Lessee’s best endeavours to protect and keep safe the Premises
and any property contained therein from theft or robbery and when not in use to keep
all doors and windows and other openings closed and securely fastened.

	3.14	 	Regulations
	 
	 	 	In the event of the Premises forming part of a building to comply
with observe and perform all reasonable rules and regulations not
inconsistent with these presents which are at the date hereof or may
from time to time hereafter be prescribed by the Lessor generally for
Lessees of the Building.
	 
	3.15	 	Indemnification of Lessor
	 
	3.15.1	 	The Lessee agrees to occupy use and keep the Premises at the risk of the Lessee and hereby
releases to the full extent permitted by law the Lessor from all claims and demands of every
kind and from all liabilities whatsoever (except to the extent that the same is caused or
contributed to by any act, omission or the negligence of the Lessor, his employees agents
architects contractors surveyors builders and workmen) which may arise in respect of any
accident loss or damage to property or death of or injury to any person of whatsoever nature
or kind in or near the Demised Premises and whether or not as a result of the creation of some
dangerous thing or state of affairs by the Lessee or by any clerk servant workman

 

 

	 	 	employee or agent of the Lessee and whether the existence of such dangerous thing or
dangerous state of affairs was or ought to have been known to the Lessor or not and the
Lessee agrees that (save as aforesaid) the Lessor shall have no responsibility or
liability for any loss of or damage to fixtures or personal property of the Lessee
occurring therein or relating thereto.
	 
	3.15.2	 	The Lessee hereby indemnifies the Lessor from and against all actions claims demands losses
damages proceedings compensation costs charges and expenses for which the Lessor shall or may
be or become liable (except to the extent that the same is caused or contributed to by any
act, omission or the negligence of the Lessor, his employees agents architects contractors
surveyors builders and workmen) whether during or after the term hereof in respect of or
arising from (notwithstanding that any of such actions claims demands losses damages
proceedings compensation costs charges and expenses shall have resulted from any act or thing
which the Lessee may be authorised or obliged to do under these presents and notwithstanding
that at any time waiver or other indulgence has been given to the Lessee in respect of any
obligation of the Lessee under this clause):

	 	(a)	 	loss damage or injury from any cause whatsoever to property or person
within or outside the Premises occasioned or contributed to by the neglect or
default of the Lessee or any servant agent subtenant or other person claiming
through or under the Lessee to observe or perform any of the covenants conditions
regulations and restrictions on the part of the Lessee hereunder whether positive or
negative express or implied;
	 
	 	(b)	 	injury or loss which may be sustained by any person when using or
entering or near any portion of the Premises whether in the occupation of the Lessor
or of the Lessee or of any other person where such injury arises or has arisen as a
result of the negligence of or as a result of the creation of some dangerous things
or state of affairs by the Lessee or by any servant workman employee or agent of the
Lessee and whether the existence of such dangerous thing or dangerous state of
affairs was or ought to have been known to the Lessor or not;
	 
	 	(c)	 	the negligent or careless use misuse waste or abuse by the Lessee or any
contractor sub-contractor licensee invitee client customer or visitor of the Lessee
or any other person claiming through or under the Lessee of the water gas
electricity lighting or mechanical or other services and facilities of the Premises
or arising from any faulty fitting or fixture of the Lessee;
	 
	 	(d)	 	overflow leakage or escape of water (including rain water) gas
electricity or any other harmful agent whatsoever in or from the Premises or from
any sprinkler system or device or by waste entry from the roofs walls gutters
downpipes or other part or parts of the Building in which the Premises are situate
or arising from any defect in the gas electricity water sewerage or drainage supply
connections or fittings or appliances or air conditioning and mechanical ventilation
or other plant or equipment used in connection therewith and originating in from or
about the Premises or whether originating within the Premises or not but caused or
contributed to by any act or omission on the part of the Lessee or any agent servant
contractor or employee of the Lessee or other persons claiming through or under the
Lessee PROVIDED HOWEVER that this clause shall not operate if the overflow leakage
or escape of water (including rain water) gas electricity or any other harmful agent
arises directly or indirectly from the act, omission or negligence of the Lessor,
his employees agents architects contractors surveyors builders and workmen;
	 
	 	(e)	 	failure of the Lessee to notify the Lessor of any defect in any of the
mechanical installations or other services or appurtenances in the Premises;
	 
	 	(f)	 	loss damage injury or accidental death from any cause whatsoever to
property or person caused or contributed to by the use of the Premises by the Lessee
or other persons as aforesaid;
	 
	 	(g)	 	loss damage injury or accidental death from any cause whatsoever to the
Premises or to any property or person within or outside the Premises occasioned or
contributed to by any act omission neglect breach or default of the Lessee or other
persons as aforesaid; and
	 
	 	(h)	 	all claims losses and damage to plate and other glass caused or
contributed to by any act or omission on the part of the Lessee or other persons as
aforesaid.

	3.15.3	 	The obligations of the Lessee under this Clause 3.15 shall continue after the expiration or
other determination of this Lease in respect of any act deed matter or thing happening before
such expiration or determination.
	 
	3.16	 	Future Tenants and Purchasers
	 
	 	 	The Lessee permits the Lessor or his agents at all times during:

	 	(a)	 	the three (3) calendar months immediately preceding the determination of
the Term hereby granted or any extension thereof to affix upon any reasonable part
of the Premises a notice for re-letting the same and during the same three (3)
months to permit intending tenants with

 

 

	 	 	 	written authority from the Lessor or his agents at reasonable times of the day
upon appointment to view the Premises and
	 
	 	(b)	 	the Term hereby created or any extension thereof to affix upon any
reasonable part of the Premises a notice for the sale of the same (or of the
Building) and to permit, subject to compliance with clause 3.9.2, intending
purchasers and others with written authority from the Lessor or his agents with 24
hours prior consent and at reasonable times of the day upon appointment to view the
Premises. Any visitors to the Premises may be required at the Lessee’s discretion
to have supervised access as detailed in clause 3.9.2.

	3.17	 	Costs and Duty
	 
	 	 	The Lessee shall pay to the Lessor the reasonable costs charges and
expenses reasonably incurred of and incidental to and of any stamp
duty payable on this lease, variation or assignment or subletting
and/or any surrender or other termination and also all moneys costs
(including charges for legal advice or assistance and charges for
advice and assistance from other Consultants) charges and expenses
which the Lessor may pay incur or expend in consequence of any
default in the performance and observance of any covenant or
agreement herein contained and on the part of the Lessee to be
performed and observed or under or in the exercise or enforcement or
attempted exercise or enforcement of any power or authority herein
contained or in consequence of any request by the Lessee under any
covenant clause or condition herein contained immediately the Lessor
shall have expended or incurred the same. Where the Act applies,
this clause shall only operate to the extent permitted by the Act as
amended or replaced from time to time. Each party shall bear their
own costs of the preparation negotiation and execution of these
presents.
	 
	3.18	 	Interest
	 
	 	 	The Lessee shall pay to the Lessor interest on any moneys due and
unpaid pursuant to this Lease at the rate per annum equal to four
percent (4%) higher than the rate for the time being fixed under
Section 2 of the Penalty Interest Rates Act 1983 computed from the
date on which such payment became due.
	 
	3.19	 	Keys
	 
	3.19.1	 	The Lessor will ensure that the base building proxy card system is operational and has the
ability to be upgraded/reprogrammed by the lessee as part of their fit out. The Lessee shall
be provided without cost a minimum of 15 access cards, and keys where available to the balance
of the facility.
	 
	3.19.2	 	Upon the expiration or sooner determination of the Term of this Lease the Lessee shall
surrender to the Lessor all security passes keys card-keys and other devices for the purpose
of obtaining access to the Demised Premises held by the Lessee or any of the Lessee’s
employees servants agents visitors and invitees irrespective of whether or not the same have
been supplied by the Lessor.
	 
	3.20	 	Notice of Damage
	 
	 	 	The Lessee shall give to the Lessor or his agents prompt written
notice of any damage to or defect or want of repair in the Premises
(or the Building) including the water pipes gas pipes electric light
wirings or any of the services of the Building including but not
limited to fire protection, air-conditioning and lifts or other the
fittings or fixtures contained in the Premises and of any
circumstances likely to be or cause any danger risk or hazard to the
Premises or the Building or any person therein.
	 
	4.	 	LESSEE’S NEGATIVE COVENANTS
	 
	4.1	 	Permitted Use
	 
	 	 	The Lessee shall not use or allow to be used the Premises for any
purpose whatsoever other than the Permitted Use without the written
consent of the Lessor and not to allow the Premises to be unoccupied
for a period in excess of fourteen (14) days.
	 
	4.2	 	Licence Authorities and Permits
The Lessee shall:

	 	(a)	 	obtain and keep current all licences and permits required for the
carrying on of all businesses conducted by the Lessee in or upon the Premises;
	 
	 	(b)	 	without in any way limiting the generality of anything elsewhere
contained in this Lease, not

 

 

	 	 	 	without the Lessor’s prior written consent apply for or obtain or to permit or
suffer the making of any application for or the grant or obtaining of any
additional licence, permit or authority; and
	 
	 	(c)	 	not without the Lessor’s prior written consent make any variation or
addition to any term, condition, obligation or undertaking in respect of any
licence, permit or authority which may exist from time to time in respect of the
Premises nor to make any application for or consent to or to cause or bring about
any such variation or addition.

	4.3	 	Conveniences
	 
	 	 	The Lessee shall not to use or permit or suffer to be used the
toilets, sinks, drainage or other plumbing facilities in the Premises
or (where applicable) in the Building for any purpose other than those
for which they were constructed or provided, and not to deposit or
permit to be deposited therein any sweepings, rubbish, or other matter
and any damage thereto by misuse shall be made good by the Lessee
forthwith.
	 
	4.4	 	Vermin
	 
	 	 	The Lessee shall take all reasonable precautions to keep the Premises
free of rodents, vermin, insects, birds and animals and in the event
of his failure so to do the Lessee will if and so often as required by
the Lessor but at the cost of the Lessee employ pest exterminators
approved by the Lessor.
	 
	4.5	 	Infectious Diseases
	 
	 	 	In the event of any infectious illness occurring in the Premises the
Lessee shall forthwith give notice thereof to the Lessor and to the
proper public authorities and at the expense of the Lessee to
thoroughly fumigate and disinfect the Premises to the satisfaction of
the Lessor and such public authorities and otherwise to comply with
their reasonable and lawful requirements in regard to the same.
	 
	4.6	 	Heating etc.
	 
	 	 	The Lessee shall not to use or permit to be used any heating or
cooling devices or any other device or machine which may interfere
with the efficient running of any air conditioning system in the
Premises and not to use any form of lighting other than that generated
by electric current.
	 
	4.7	 	Assignment
	 
	 	 	The Lessee shall not without the consent in writing of the Lessor
first had and obtained transfer assign mortgage pledge underlet or
part with possession of this Lease or any estate or interest therein
or transfer assign mortgage pledge underlet or part with possession of
the Premises or any part thereof or estate therein and the provisions
of Section 144 of the Property Law Act 1958 are hereby expressly
excluded PROVIDED HOWEVER that the Lessor shall not unreasonably
arbitrarily or capriciously withhold his consent to the assignment of
this Lease or to the sub-letting of the Demised Premises but before
giving such consent the Lessor shall be entitled to the performance by
the Lessee of the following conditions which so far as they are
capable of prior performance shall be conditions precedent to the
Lessee obtaining such consent, namely:

	 	(a)	 	the Lessee is not in default of the covenants and agreements of the
Lessee’s part herein contained and shall have duly and punctually performed up to
the date of such assignment or sub-lease all covenants and agreements on the part of
the Lessee herein contained;
	 
	 	(b)	 	the Lessee has submitted to the Lessor or his duly authorised agent or
solicitor the name address and occupation of any proposed assignee or sub-lessee
together with reasonable proof that such person is respectable responsible and
solvent and without limiting the generality of the foregoing the Lessee shall
provide to the Lessor at least two references as to the proposed assignee’s or
sub-lessee’s financial circumstances and experience;
	 
	 	(c)	 	the Lessee shall at his expense procure the execution by such person of
an assignment of this Lease or sub-lease in such form as the Lessor or his solicitor
reasonably approves and in which categorically or by reference the assignee or
sub-lessee as the case may be shall enter into covenants conditions agreements and
stipulations with and grant powers to the Lessor in terms of the several covenants
conditions agreements stipulations and powers herein expressed or such of them as
may be required by the Lessor or his solicitor including but not limited to a
covenant to the effect that the Lessee releases the Lessor from all claims against
the Lessor in respect of or in any way arising from the Lease and that any such
assignment or sub-lease does not affect the Lessor’s rights against the Lessee or
against any person who has previously guaranteed the obligations of the Lessee under
this Lease arising out of any past or future failure to pay the rental reserved by
this Lease or to perform or observe the Lessee’s covenants and conditions contained
in this Lease;
	 
	 	(d)	 	such assignment or sub-lease shall be perused by the solicitor for the
Lessor at the cost and expense in all respects of the Lessee and an executed copy of
such assignment or sub-lease

 

 

	 	 	 	duly stamped at the expense of the Lessee shall be delivered to the Lessor as
soon as possible after execution by the Lessor;
	 
	 	(e)	 	the Lessee shall pay to the Lessor all reasonable costs charges and
expenses reasonably incurred by the Lessor of and incidental to any enquiries made
by the Lessor or his agent or solicitor as to the respectability responsibility and
solvency of the proposed assignee or sub-lessee and of and incidental to the
instructions for and perusing and approving copying and examining and obtaining
execution of the said consent;
	 
	 	(f)	 	any guarantors of the present Lessee shall acknowledge their continuing
obligations in respect of the assignee or sub-lessee subject always to the
provisions of the Act where applicable;
	 
	 	(g)	 	if Clause 6.9.5(b) applies, the new bank guarantee has been provided;
	 
	 	(h)	 	for the purposes of this clause if the Lessee is an incorporated company
a change in the effective control of the company by the person or persons who enjoy
such control as at the date of this Lease (save where such change of control is
solely referable to transfers of shares by inheritance) shall be deemed to be an
assignment of this Lease and as such shall require the consent of the Lessor in the
manner provided in this clause PROVIDED ALWAYS that this sub-clause shall not apply
where the Lessee is a company the voting shares of which are listed on a recognised
Stock Exchange in Australia or where the Lessee is and remains a wholly owned
subsidiary of a company the voting shares of which are so listed; and
	 
	 	(i)	 	the Lessee shall be permitted to assign in whole or sub lease in whole or
part subject to the consent of the Lessor;
	 
	 	(j)	 	any assignment or sub leasing will not trigger a market rent review;
	 
	 	(k)	 	no consent shall be required for sub leasing to related organizations or
joint venture partners of the Lessee.

	4.8	 	Alterations and Additions/Lessee’s Works
	 
	4.8.1	 	The Lessee shall not make or permit to be made any alterations or additions to the Premises
(“Alterations”) or to any fixtures or fittings therein without first obtaining the consent in
writing of the Lessor or his agents which shall not be unreasonably withheld.
	 
	4.8.2	 	The Lessor shall provide consent or request amendment to such proposed Alterations within 10
business days of such proposed Alterations being provided to the Lessor by the Lessee in
accordance with Clause 4.8.3.
	 
	4.8.3	 	When applying to the Lessor for consent to make some alteration or addition to the Premises
the Lessee shall submit to the Lessor or his agents for perusal full and clear plans
specifications (including any necessary building permits) and other details and pay such
reasonable expenses as the Lessor or his agents may incur in obtaining reports and advice on
such plans specifications and details from architects engineers builders and other consultants
and in having any works inspected.
	 
	4.8.4	 	All works shall be carried out in a proper and workmanlike manner to the satisfaction of the
Lessor (acting reasonably) by qualified builders tradesmen or others approved by the Lessor
and as soon as practicable after completion of the works the Lessee shall provide to the
Lessor a certificate of completion by the Lessee’s builder or tradesman.
	 
	4.8.5	 	For avoidance of doubt, the Lessee, subject to final design intends to:

	 	(a)	 	modify, increase or potentially dissemble in part or full all of the
mezzanine structure (outside the 1,400 sqm of office), to make the building space
more generic;
	 
	 	(b)	 	dismount office partitioning and return the premises to open plan ;

	 
	 	(c)	 	remove or modify ceilings underneath and around the mezzanine levels;
	 
	 	(d)	 	build laboratory (clean) rooms suitable for the production of sensor
technology

	 	 	Any of the Lessee’s works, carried out to the office and warehouse areas will not be
subject to a redecoration clause during or at the end of the lease.
	 
	 	 	The Lessee will not be required to reinstate the mezzanine structure to its previous
state upon final vacation.
	 
	 	 	For the avoidance of doubt, the Lessee will only be responsible for removing fixtures and
fittings installed during the term of the Lease.
	 
	 	 	The Lessee shall be responsible for any upgrades required to the base building BCA
requirements, given the level of the envisaged fit out.

 

 

	4.8.6	 	Subject to fair wear and tear, the Lessee shall on final vacation, remove the Lessee’s
fixtures and fittings, and make good any damage caused by their removal, only if requested by
the Lessor within 14 days of serving notice to vacate.

	 	 	The Lessee shall not be required to:

	 	(a)	 	replace any floor coverings, including carpet;
	 
	 	(b)	 	repaint any part internal or external of the premises;
	 
	 	(c)	 	reinstate (or reconstruct) any alterations made to the mezzanine.

	 	 	Under no circumstances will the Lessee be required to make good the office building
(being the 1,400 sqm structure, separate to the warehouse building), unless the lessee
constructs specialized laboratory facilities within the 1,400 sqm office building
	 
	 	 	The Lessor will have the right to request the make good of any fit out within the balance
of the Premises (outside of the office area).
	 
	 	 	Ownership of partitions, workstations, carpet and additional offices built or installed
by the Lessee (as approved by the Lessor in the fit out phase) will revert to the
ownership of the Lessor upon final vacation.
	 
	4.9	 	Services
	 
	 	 	The Lessee shall not carry out any work which interferes with the
electrical installations or wiring of the Premises or any drains
water supply gas plumbing or other services contained in or about the
Premises nor to do anything which may endanger any part of the
Premises or the operation of any apparatus thereon nor install any
electrical equipment on the Premises which may overload the cables
switchboards or sub-boards through which electricity is conveyed to
the Premises.
	 
	4.10	 	Statutory Notices
	 
	 	 	Without prejudice to the Lessee’s obligations under Clauses 4.1 and
4.2, the Lessee shall not use or permit to be used the Premises or
any part thereof or do or suffer to be done thereon anything whereby
or by reason whereof any public or statutory authority may give or
issue or be entitled to give or issue any notice including but
without limiting the generality of the foregoing any notice requiring
structural alterations or repairs to be made or carried out to any
part of the Premises.
	 
	4.11	 	Nuisance etc.
	 
	 	 	The Lessee shall not to use the Premises or permit the Premises to be
used in any noisy noxious or offensive manner or do or permit on the
Premises anything which in the opinion of the Lessor may be or become
a nuisance disturbance hazardous or offensive or cause damage to the
Lessor or any other persons.
	 
	4.12	 	Heavy Articles
	 
	 	 	The Lessee shall not put any heavy articles machinery plant or
equipment in the Premises save of such weight and in such place as
the Lessor has by its prior written consent approved. The Lessor
will not unreasonably withhold consent where the articles machinery
plant or equipment are reasonably necessary for the Lessee’s use of
the Premises and are of a nature and size as will not or in the
reasonable opinion of the Lessor will not be likely to cause any
structural or other damage to the floors or wall or any other parts
of the Premises. The Lessor shall be entitled to obtain expert
advice in relation to any proposal by the Lessee to bring articles
machinery plant or equipment into the Premises and the risk of
structural or other damage to the floors or walls or other parts of
the Premises and the Lessee shall pay or reimburse the Lessor for any
cost incurred by the Lessor in obtaining the advice.
	 
	4.13	 	Not to Deface
	 
	 	 	The Lessee shall not cut make holes in mark deface drill damage nor
suffer to be cut holed marked defaced drilled or damaged any of the
walls ceilings or other parts of the Demised Premises except so far
as may be reasonably necessary for the carrying out of alterations
approved by the Lessor or for the erection or installation of the
Lessee’s fixtures and fittings and on the removal of the Lessee’s
fixtures and fittings the Lessee shall reinstate repair and make good
any damage caused in or about the erection or removal thereof.

 

 

	4.14	 	Blocking Windows etc.
	 
	 	 	The Lessee shall not stop up darken or obstruct any windows or lights
forming part of the Premises or permit any new window light opening
doorway path passage or drain to be made in against out of or upon
the Premises without the consent of the Lessor first had and
obtained. In case any such window light opening doorway path passage
or drain shall be made or attempted to be made the Lessee shall give
immediate notice thereof to the Lessor and shall at the request of
the Lessor and at the cost of the Lessee take such steps as may
reasonably be required or deemed proper for rectifying the same.
	 
	4.15	 	Signs

	 
	 	 	The Lessee shall not display or affix any signs notices or
advertisements to the exterior of the Premises without the prior
written consent of the Lessor which shall not be unreasonably
withheld in the case of signs notices or advertisements usual in the
normal conduct of the use permitted by this Lease and not to display
or affix any signs notices or advertisements which in the reasonable
opinion of the Lessor may be offensive or undesirable and at the
expiration of the Term if required by the Lessor to remove any signs
notices or advertisements and make good the Premises.
	 
	 	 	The Lessee shall be granted exclusive naming and signage rights to the Building for $1pa,
if demanded.
	 
	 	 	Signage is not to effect the use or performance of the telecommunication aerial on the
premises roof.
	 
	 	 	The benefit of any signage or naming rights shall be disregarded at any rent
review.
	 
	4.16	 	Insurance
	 
	 	 	The Lessee shall not:

	 	(a)	 	do or permit or suffer to be done any act matter or thing whereby any
insurances in respect of the Premises may be vitiated or rendered void or voidable
or whereby the rate of premium of any such insurance shall be liable to be increased
or whereby any insurer is or might be entitled or enabled to decline or refuse any
claim or to decline or refuse to renew any such insurance or to impose onerous
conditions thereon; and
	 
	 	(b)	 	store any corrosive explosive volatile inflammable dangerous poisonous or
toxic substances whether solid liquid or gaseous upon or about the Premises without
the prior written consent of the Lessor which shall not be unreasonably withheld in
the case of such reasonable quantities of such substances as may be required for the
Lessee’s permitted business and save as aforesaid not to use any of such substances
in or about the Premises for any purpose and forthwith to pay to the Lessor all
extra premiums of insurance on the Premises and contents if any be required on
account of extra risk caused by the use to which the Premises are put by the Lessee
or by the bringing or keeping on the Demised Premises of any of the said substances
or fluids.

	4.17	 	Auction Sales
	 
	 	 	The Lessee shall not hold or allow to be held any sale by auction on
the Demised without the prior written consent of the Lessor which
shall not be unreasonably withheld.
	 
	4.18	 	Obstructions

	 
	 	 	The Lessee shall not obstruct the entrances stairways or passage ways
of the Premises or of any part of the Building and which the Lessee
is entitled to use pursuant to the covenants contained in this Lease
and not to use the same for any purpose other than for ingress to and
egress from and through the Premises.
	 
	5.	 	LESSOR’S COVENANTS
	 
	5.1	 	Quiet Enjoyment
	 
	 	 	The Lessee paying the said rental and performing and observing all the
covenants and conditions herein contained and on the part of the
Lessee to be observed and performed shall be entitled to and may
peaceably and quietly hold and enjoy the Premises during the Term
hereby granted without any interruptions or disturbance from or by the
Lessor or any person or persons claiming under or in trust for him.
	 
	5.2	 	Rates
	 
	 	 	The Lessor shall pay all rates taxes and charges which may be assessed
in respect of the Premises or the Building save and except such rates
taxes and charges which pursuant to the covenants herein contained are
to be paid by the Lessee.

 

 

	5.3	 	No Warranty
	 
	 	 	The Lessor does not expressly or impliedly warrant that the Premises
are now or will remain suitable or adequate for all or any of the
purposes or uses of the Lessee and all warranties (if any) as to
suitability and adequacy of the Premises implied by law are hereby
expressly negatived to the extent not prohibited by law.
	 
	5.4	 	Building Mechanics
	 
	 	 	The Lessor warrants that it will undertake capital expenditure when
necessary on all base building systems including air conditioning and
fire services, unless damage to these base systems has been caused by
the Lessee’s specific use.
	 
	 	 	For the avoidance of doubt, base building systems excludes any items of Lessee fit out,
such as supplementary air conditioning systems.
	 
	 	 	The Lessor will repay the capital costs required to keep these base services operable as
per manufacturing recommendations. The Lessee will arrange and monitor the maintenance
programs.
	 
	5.5	 	Lessor’s Obligations
	 
	 	 	Unless the action, damage or excessive wear has been directly caused by the Lessee’s
specific use of the Premises or lack of the Lessee’s maintenance, the Lessor must, at is
own expense:

	 	(a)	 	maintain the structural integrity of the Premises and the building;
	 
	 	(b)	 	keep the roof of the Premises and the building in a waterproof condition;
	 
	 	(c)	 	maintain the exterior of the Premises, the building and any common areas
and whenever necessary, repaint those areas (exterior) to ensure the exterior of the
Premises and the building at all times appears well presented;
	 
	 	(d)	 	duly comply with all statutes, regulations, rules and by-laws applying in
respect of the Premises and the building (excluding those caused or relating to the
Lessee fit out).

	6.	 	MUTUAL COVENANTS
	 
	6.1	 	Determination of Lease
	 
	 	 	If

	 	(a)	 	the rent (including GST) hereby reserved or any part thereof shall be in
arrears for fourteen (14) days after written demand shall have been made for
payment thereof, or
	 
	 	(b)	 	the Lessee being a Company shall go or be put into liquidation or shall
have a Receiver a Receiver and manager, an Official Manager, or administrator
appointed or makes an assignment for the benefit of or enters into an arrangement or
composition with its creditors, or
	 
	 	(c)	 	execution is levied against the Lessee and not discharged within thirty
(30) days, or
	 
	 	(d)	 	the Australian Securities & Investment Commission is directed to arrange
for an investigation into the affairs or into particular affairs of the Lessee
(being a company) pursuant to the Corporations Act 2001 (or where applicable each
law of the Commonwealth or a State or Territory of Australia which corresponds with
the Corporations Act 2001), or
	 
	 	(e)	 	the Lessee shall make default in the observance or performance of any of
the covenants and conditions herein contained and on the part of the Lessee to be
observed and performed,

	 	 	then and in every or any of such cases it shall be lawful for the Lessor (although the
Lessor may not have taken advantage of some previous breach or default of a like nature)
forthwith or at any time thereafter to determine this Lease in respect of any breach or
default by the Lessee of or in respect of any covenant or condition of this Lease to
which Section 146 of the Property Law Act 1958 does not extend and in respect of any
breach or default by the Lessee of or in respect of any covenant or condition of this
Lease to which the said Section does extend then to determine this Lease upon or at any
time after the expiration of fourteen (14) days after the date of service of the notice
required to be served on the Lessee by sub-section 1 of the said Section 146 (which
period of fourteen (14) days is hereby fixed as the time within which the Lessee is to
remedy any such last mentioned breach or default if it is capable of remedy and to make
reasonable compensation in money to the satisfaction of the Lessor for such breach or
default) and to re-enter upon the Premises or any part thereof in the name of the whole
and thereupon the Term shall absolutely cease and determine and the Lessor may also
without notice eject from the Premises or any part thereof all persons without prejudice
to any right of action or other remedy of the Lessor in respect of any breach of covenant
on the part of the Lessee and the Lessor may remove any goods and chattels therein and
store the same at the risk and cost of the Lessee and give a good and valid authority for
the sale thereof for non-payment of storage charges.

 

 

	6.2	 	Essential Covenants
	 
	6.2.1	 	Each of the covenants by the Lessee which are specified in this Clause are essential terms
of this Lease:

	 	(a)	 	The covenant to pay rent (including GST) throughout the Term at a date
not later than seven (7) days after the due date for payment of each instalment of
rent as set out in the Schedule (3.1);
	 
	 	(b)	 	The covenant to pay rates and other charges (3.4);
	 
	 	(c)	 	The covenant to use the Premises for the Permitted Use (4.1);
	 
	 	(d)	 	The covenants governing and restricting assignment and sub-leasing (4.7);
	 
	 	(e)	 	The covenant to comply with orders (3.11);
	 
	 	(f)	 	The covenant not to lodge a caveat (6.10.3); and
	 
	 	(g)	 	Any other covenant in respect of which the Lessee’s breach is serious
persistent and of a continuing nature.

	6.2.2	 	In respect of the Lessee’s obligation to pay rent, the acceptance by the Lessor of arrears
or of any late payment of rent shall not constitute a waiver of the essentiality of the
Lessee’s obligation to pay rent in respect of those arrears or of the late payment or in
respect of the Lessee’s continuing obligation to pay rent during the Term.
	 
	6.2.3	 	The Lessee covenants to compensate the Lessor in respect of any breach of an essential term
of this Lease and the Lessor is entitled to recover damages from the Lessee in respect of such
breaches. The Lessor’s entitlement under this clause is in addition to any other remedy or
right to which the Lessor is entitled (including the termination of this Lease).
	 
	6.2.4	 	Should the Lessee’s acts or omissions constitute a repudiation of the Lease (or of the
Lessee’s obligations under the Lease) or constitute a breach of any Lease covenants, the
Lessee covenants to compensate the Lessor for the loss or damage suffered by reason of the
repudiation or breach.
	 
	6.2.5	 	The Lessor shall be entitled to recover damages against the Lessee in respect of repudiation
or breach of covenant for the damage suffered by the Lessor during the entire Term of this
Lease (but not including the Further Term (if any) unless the Lessee shall have exercised any
option to take a renewed demise for a Further Term).
	 
	6.2.6	 	The Lessor’s entitlement to recover damages shall not be affected or limited by any of the
following:

	 	(a)	 	If the Lessee shall abandon or vacate the Demised Premises;
	 
	 	(b)	 	If the Lessor shall elect to re-enter or to terminate the Lease;
	 
	 	(c)	 	If the Lessor shall accept the Lessee’s repudiation; or
	 
	 	(d)	 	If (in the absence of mutual agreement between the parties) the Lease
shall be surrendered by operation of law following default by the Lessee.

	6.2.7	 	The Lessor shall be entitled to institute legal proceedings claiming damages against the
Lessee in respect of the entire Lease Term (but not including the Further Term (if any) unless
the Lessee shall have exercised any option to take a renewed demise for a Further Term)
including the periods before and after the Lessee has vacated the Premises, and before and
after the abandonment, termination, repudiation, acceptance of repudiation or surrender by
operation of law referred to in Clause 6.2.6 whether the proceedings are instituted either
before or after such conduct.
	 
	6.3	 	Damage
	 
	 	 	If the Premises or any part thereof shall at any time during the Term
be destroyed or damaged so as to be unfit for occupation and use and
the policy or policies of insurance effected by the Lessor shall not
have been vitiated or payment of the policy moneys refused in
consequence of some act or default of the Lessee his servants or
agents the rent hereby reserved and the outgoings or a fair proportion
thereof according to the nature and extent of the damage sustained
shall be suspended until the Premises shall be again rendered fit for
occupation and use and in case of difference touching this proviso the
same shall be referred to the award of a single arbitrator in case the
parties can agree upon one and otherwise to two arbitrators one to be
appointed by each party and in either case in accordance with the
provisions of the Commercial Arbitration Act or any statutory
modification thereof for the time being in force (with both parties
having the right of legal representation) (and until the amount of
rent and outgoings to be paid (if any) shall have been mutually agreed
upon or determined as aforesaid the full rent and outgoings shall be
payable and paid without deduction but the Lessor shall subsequently
refund the amount (if any) paid by the Lessee in excess of the amount
to be agreed or determined) PROVIDED ALWAYS that in the event of the
Premises or the Building of which the Premises shall be a part (or
both the Premises and such

 

 

	 	 	Building) being destroyed or so much damaged as to amount substantially to a destruction
of the Premises the Lessor or Lessee shall be at liberty within four (4) months after the
damage by notice to the other to determine this Lease as from the date of the damage but
the Lessee shall not be entitled so to determine if the Lessor within three (3) months
from the date of the damage gives notice to the Lessee of his intention to rebuild and
proceeds with such rebuilding with reasonable expedition.
	 
	6.4	 	Overholding
	 
	 	 	If after the expiration of the Term the Lessee remains in possession
of the Premises without objection by the Lessor otherwise than
pursuant to a further Lease granted by the Lessor then:

	 	(a)	 	the Lessee shall be considered as and be a tenant from month to month of
the Lessor,
	 
	 	(b)	 	the Lessee shall pay to the Lessor monthly in advance a monthly rental
equal to the amount of rental payable in respect of the last full month prior to
such expiration (or such other rental as may be agreed upon from time to time) and
so that if the last payment relates to a period less than a month such payment shall
be adjusted proportionately to the portion of the month to which it relates on a
daily basis,
	 
	 	(c)	 	the Lessee shall also pay to the Lessor all sums which would have been
payable pursuant to Clause 3.4 if the whole period of the tenancy from month to
month pursuant to this present clause constituted the Term of the Lease and such
sums shall be payable at the times and in the manner provided by the said Clause
3.4,
	 
	 	(d)	 	the said tenancy from month to month shall otherwise be upon the same
terms and conditions as are herein contained so far as the same are applicable, and
	 
	 	(e)	 	the said tenancy from month to month may be determined by either party
giving to the other not less than one month’s notice in writing of such
determination and such notice may expire at any time.

	6.5	 	Lessor’s Liability
	 
	6.5.1	 	The Lessor shall not be responsible or liable to the Lessee or any person claiming under or
through him (whether by way of compensation or reduction in rent or otherwise) for any damage
caused by any burglary theft breaking and entering or malicious damage caused by any person to
the Premises or the Lessee’s tenants or trade fixtures fittings or goods or for any loss
damage or injury to the goods property effects business or person of the Lessee caused by any
flow of water moisture or liquid through the bursting of or any defect in or overflow from any
pipe or from the lavatories, closets, basins, receptacles, roof, walls or drains of the
Premises or of the Building or for any malfunction failure breakdown interruption or mishap
involving any lift, stairs, passages, air-conditioning, lavatories, conveniences, fire
equipment, water, gas or electricity services or parking space in such building or from a
blockage of any sewers, wastes, drains, gutters, down-pipes or storm water drains;
	 
	6.5.2	 	The Lessor shall not be liable or responsible to the Lessee for any loss of enjoyment of
light air or prospect arising from or in consequence of any increase in the height of
adjoining or neighbouring buildings or for any alteration to the Premises.
	 
	6.5.3	 	Notwithstanding anything herein contained whether express or implied (and in particular but
without limiting the generality of the foregoing Clause 3.15 ) the Lessor shall not in any way
be liable for any injury loss or damage which may be caused to the Lessee or to the Lessee’s
property or to the Lessee’s employees servants clients visitors customers agents or invitees
or their property by reason of any happening on or in the vicinity of the Premises or Building
howsoever caused except to the extent of any injury loss or damage caused or contributed to by
any act omission or negligence of the Lessor.
	 
	6.5.6	 	Notwithstanding anything herein contained or any implication or rule of law to the contrary
the Lessor shall not be liable for any damage or loss the Lessee may suffer by reason of the
neglect or omission of the Lessor to do any act or thing to or in respect of the Premises and
which (as between the Lessor and the Lessee) the Lessor might be legally liable to do unless
the Lessor is known to have been aware of such neglect or omission or unless the Lessee shall
have given to the Lessor notice in writing of such neglect or omission and the Lessor has
without reasonable cause failed within a reasonable time thereafter to take proper steps to
rectify such neglect or omission.
	 
	6.6	 	Option for Renewal
	 
	6.6.1	 	The Lessor covenants with the Lessee that if the Lessee shall be desirous of taking a
renewal of the Lease of the Premises for the Further Term specified in the Schedule from the
expiration of the Term and shall at least three (3) calendar months prior to the expiration of
Term signify such desire by notice in writing to the Lessor and:

 

 

	 	(a)	 	if the Lessee shall not then or at the expiration of the Term be in
default hereunder, and
	 
	 	(b)	 	shall not have persistently been in default under the Lease during the
Term of which written notices have been sent to the Lessee,

	 	 	then the Lessor will at the cost of the Lessee execute a new Lease to the Lessee of the
Premises for such Further Term at an annual rental to be reviewed to market in
accordance with clause 2 of Appendix A and otherwise such Lease shall be subject to the
covenants agreements and provisions as are herein contained (including any guarantees)
save and except this present covenant for renewal
	 
	6.6.2	 	The Lessor hereby notifies the Lessee that this option to renew must be exercised by the
date set out in the Schedule as after that date the option will not be exercisable.
	 
	6.7	 	Lessor’s Successor
	 
	 	 	In the event of any person other than the Lessor becoming entitled to
receive the rental hereby reserved either by operation of law or
otherwise the Lessee agrees that such person shall have the benefit of
all covenants and agreements on the part of the Lessee hereunder and
the Lessee at the cost of the Lessor will enter into such covenants
with such other person in that regard as the Lessor may reasonably and
properly require PROVIDED THAT such covenants will:

	 	(a)	 	not provide any further obligations, liabilities or responsibilities on
the Lessee as herein provided; and
	 
	 	(b)	 	provide, inter alia, that the new lessor shall be bound by the terms and
conditions of this lease as if it were an original party.

	6.8	 	Notices
	 
	6.8.1	 	Any notice required to be given to or served on the Lessee hereunder shall without prejudice
to any other lawful mode of service be deemed to be duly given to or served upon the Lessee if
served personally upon the Lessee or if addressed to the Lessee or delivered to or left at or
posted by prepaid post to: a director of the Lessee or as otherwise nominated by the Lessee at an address notified by
the Lessee from time to time.
	 
	6.8.2	 	Any notice or demand served or given by post shall be deemed to be duly given or served even
if proved that it was not delivered and shall be deemed to have been served or given on the
second day after the day on which it was posted (Saturdays, Sundays and public holidays
excluded).
	 
	6.8.3	 	Any notice or demand need not be signed by or on behalf of the Lessor or if signed may be
signed on behalf of the Lessor by any of the Lessor’s servants agents or officers or by the
Lessor’s solicitors.
	 
	6.8.4	 	Any notice required to be given to or served on the Lessor hereunder shall without prejudice
to any other lawful mode of service be deemed to be duly given to or served upon the Lessor if
served personally upon the Lessor or if addressed to the Lessor or delivered to or left at or
posted by prepaid post to the Lessor:

	 	(i)	 	at the address of the Lessor set out herein, or
	 
	 	(ii)	 	at such other address as the Lessor may by written notice to the Lessee
have previously so advised the Lessee.

	6.9	 	Bank Guarantee
	 
	6.91	 	As a further consideration for the Lessor granting this Lease to the Lessee the Lessee has
deposited with the Lessor a Bank Guarantee in the amount as shown in the Schedule (“the Bank
Guarantee ”) shall be retained by the Lessor as a guarantee and security that the Lessee shall
pay the rent hereby reserved and all other monies payable hereunder and perform and observe
all the Lessee’s obligations hereunder.
	 
	6.9.2	 	If the Lessee defaults in payment of the said rent or of any other monies payable hereunder
or in the performance or observance of any of the Lessee’s obligations hereunder the Lessor
may and is hereby authorised by the Lessee at any time during the term hereof or thereafter to
pay or reimburse itself out of the Bank Guarantee all unpaid rent and other monies and all
monies costs and expenses which the Lessor incurs or might incur and any loss or damage which
the Lessor suffers or might suffer in consequence or arising out of such default on the part
of the Lessee as aforesaid.
	 
	6.9.3	 	If at any time the Lessor has recourse to the Bank Guarantee pursuant to this Clause or the
Bank Guarantee is otherwise reduced below the amount set out in the Schedule, the Lessee shall
immediately replace or substitute the Bank Guarantee so as to restore the Bank Guarantee to
the amount set out in the Schedule.

 

 

	6.9.4	 	Save as aforesaid if the Lessee at the end of the Term is not in default in payment of the
said rent or of any other monies payable hereunder or in the performance and observance of the
Lessee’s obligations hereunder the Lessor shall release to the Lessee the Bank Guarantee. .

	 	6.9.5	 	In the event of:

	 	(i)	 	an assignment of this Lease to a new lessee, the Lessor
may call for a new bank guarantee for the bond monies from the new lessee;
or
	 
	 	(ii)	 	an assignment of the reversion of this Lease to a new
lessor, the new lessor (at the cost of the Lessor) may call for and require
a new bank guarantee to the new lessor; and

	 	 	 	upon receipt of the new bank guarantee, the previous bank guarantee shall be
returned to the party that caused it to be issued or the Lessor shall confirm by
deed that the previous bank guarantee is extinguished.

	6.10	 	Miscellaneous
	 
	6.10.1	 	Nothing contained herein shall be deemed or construed by the parties hereto or by any third
party as creating the relationship of partnership or of principal and agent or of joint
venture between the parties hereto or any other relationship other than the relationship of
Lessor and Lessee under the terms and conditions only as provided in this Lease.
	 
	6.10.2	 	Without in any way limiting any other provision or provisions herein contained should the
Lessee fail to deliver up possession of the Premises in accordance with any notice to quit or
of re-entry or upon the expiration or earlier determination of this Lease (except where the
Lessee with the permission of the Lessor continues in occupation of the Premises as
hereinbefore provided) and fails to return all the keys for the Premises to the Lessor it
shall be competent for the Lessor to demand and recover from the Lessee in addition to any
rental sums or damages due or arising hereunder a sum for use and occupation calculated at the
same rate as the rental herein provided up to and including the date when such possession is
delivered up as aforesaid (and it is hereby agreed with respect to the foregoing that the
Lessee shall be deemed to be in possession whilst any plant fixtures fittings and furnishings
equipment or any other chattels of the Lessee which the Lessor requires to be removed from the
Premises have not been so removed and until all keys for the Premises have been returned to
the Lessor) without any such notice to quit or other notice being waived or any proceedings to
obtain possession being in any way prejudiced.
	 
	6.10.3	 	The Lessee hereby covenants and agrees that he shall not lodge nor allow any person claiming
through him or acting on his behalf to lodge any caveat over the land of which the Premises
forms part or any part thereof.
	 
	6.10.4	 	The Lessee hereby irrevocably makes nominates constitutes and appoints the Lessor to be the
true and lawful attorney of the Lessee to act at any time after the power to re-enter herein
contained shall have become exercisable or shall have been exercised (a sufficient proof
whereof shall be the statutory declaration of the Lessor or its officers) to execute and sign
a transfer assignment or a surrender of this Lease or withdrawal of caveat and for this
purpose to use the name of the Lessee and generally to do execute and perform any act deed
matter or thing relative to the Premises as fully and effectually as the Lessee could do in
and about the Premises and the Lessee hereby covenants to ratify and confirm all and
whatsoever the said attorney or any substitute shall lawfully do or cause to be done in and
about the Premises.
	 
	7.	 	GST
	 
	7.1	 	GST Definitions
	 
	 	 	For the purpose of this Clause 7 expressions set out in italics this clause bear the same meaning as those expressions in
the GST Act.
	 
	 	 	“GST” means GST within the meaning of the GST Act.
	 
	 	 	“GST Act” means the A New Tax System (Goods and Services Tax) Act 1999 (as amended).
	 
	7.2	 	Amounts otherwise payable do not include GST.
	 
	 	 	Except where express provision is made to the contrary, and subject to this clause 7, the consideration payable by any
party under this Lease represents the value of any taxable supply for which payment is to be made.
	 
	7.3	 	Liability to Pay GST
	 
	 	 	Subject to Clause 7.5 if a party makes a taxable supply in connection with this Lease for a consideration which, under
Clause 7.2 or Clause 7.5, represents its value then the party liable to pay for the taxable

 

 

	 	 	supply must also pay, at the same time and in the same manner as the value is otherwise
payable, the amount of any GST payable in respect of the taxable supply.
	 
	7.4	 	Reimbursements
	 
	 	 	If this Lease requires the Lessee to pay, reimburse, or contribute to an amount paid or payable by the Lessor in respect
of an acquisition from a third party for which the Lessor is entitled to claim an input tax credit, the amount required to
be paid, reimbursed, or contributed by the Lessee will be the value of the acquisition by the Lessor plus, if the Lessor’s
recovery from the Lessee is a taxable supply, any GST payable under Clause 7.3.
	 
	7.5	 	Tax Invoice
	 
	 	 	A party’s right to payment under Clause 7.3 is subject to a valid tax invoice being delivered to the party liable to pay
for the taxable supply.
	 
	8	 	GUARANTOR’S OBLIGATIONS
	 
	8.1	 	Liability of Guarantor
	 
	 	 	In consideration of the Lessor entering this Lease at the Guarantor’s request, the Guarantor:

	 	(a)	 	unconditionally guarantees to the Lessor the punctual performance by the
Lessee of the Lessee’s obligations under this Lease;
	 
	 	(b)	 	must keep the Lessor indemnified against all loss or damage incurred by the
Lessor as a result of the Lessee breaching this Lease; and
	 
	 	(c)	 	must keep the Lessor indemnified against all loss or damage incurred by the
Lessor resulting from a trustee in bankruptcy or a liquidator of the Lessee
disclaiming this Lease or from this Lease being unenforceable against the Lessee for
some other reason.

	8.2	 	Liability of Guarantor not affected
	 
	 	 	The Guarantor is liable, even if:

	 	(a)	 	one or more of the Guarantors dies;
	 
	 	(b)	 	the Lessor gives any extension of time or any other indulgence to the
Lessee or any Guarantor;
	 
	 	(c)	 	this Lease is varied, assigned (but where the Act applies only insofar as
permitted by the Act) or extended;
	 
	 	(d)	 	this Lease is not or cannot be registered at the Land Titles Office;
	 
	 	(e)	 	the Lessee grants a sub-lease, a licence or any other right to occupation;
	 
	 	(f)	 	the Premises is sold; or
	 
	 	(g)	 	the Lessor releases the Lessee or any Guarantor.

	8.3	 	Bankruptcy or liquidation of the Lessee
	 
	 	 	The Guarantor agrees that:

	 	(a)	 	The Lessor may retain all money received including dividends from the
Lessee’s bankrupt estate, and need allow the Guarantor a reduction in its liability
under this guarantee only to the extent of the amount received;
	 
	 	(b)	 	the Guarantor must not seek to recover money from the Lessee to reimburse
the Guarantor for payments made to the Lessor until the Lessor has been paid in full;
	 
	 	(c)	 	the Guarantor must not prove in the bankruptcy or winding up of the Lessee
for any amount which the Lessor has demanded from the Guarantor; and
	 
	 	(d)	 	the Guarantor must pay the Lessor all money which the Lessor refunds to the
Lessee’s liquidator or trustee in bankruptcy as preferential payments received from
the Lessee.

	9.	 	Option and First Right of Refusal to Purchase
	 
	 	 	At any time prior to 1 April 2007 (unless varied under clause 15)), the Lessee may notify
the Lessor in writing that it intends to exercise its right to purchase the Premises for
the set sum of $6,000,000 (six million dollars) plus GST. Terms will be based upon a
standard 10% deposit with balance of 90% to be paid in 60 days.
	 
	 	 	Should the Lessee not exercise the right to purchase the Premises prior to 1 April 2007
(unless varied under Clause 15), at any time thereafter during the term of the Lease, if
the Lessor wishes to sell the Premises, the Lessee must be given 3 business days written
notice that the Premises is to be marketed for sale, prior to the commencement of the sale
process.

 

 

	 	 	During this 3 business day period, the Lessor and Lessee agree to negotiate the sale of
the Premises to the Lessee. Should no agreement for the purchase be reached, the Lessee
has no further guaranteed right to purchase the Premises and the Lessor may commence the
sale process.
	 
	10.	 	Lessor’s Works

	 	(a)	 	The Lessor agrees to pay for the recarpeting of the office areas to a
maximum value of $50 per square metre (being $70,000) for the 1,400 square metre
office component.
	 
	 	(b)	 	The Lessee will arrange the works, using the Lessor’s selected carpet provider.
	 
	 	(c)	 	Should the Lessee spend more than the allowance, it will be at their own
cost. Should the Lessee spend less than the allowance, the saving will be kept by
the Lessor.
	 
	 	(d)	 	The Lessee shall not be required to lift existing partitions that may
remain for laying the replacement carpet.
	 
	 	(e)	 	The Lessor agrees to assist in any process undertaken by the Lessee, such
as submission of Planning Permits for building alterations to council, in a timely
and cost efficient manner. Any reasonable costs of the Lessor relating to the
permissions will be refunded by the Lessee.

	11.	 	Car Parking
	 
	 	 	All spaces at the premises as at the Access Date are to remain with the tenancy throughout
occupation at no cost to the Lessee.
	 
	12.	 	Consent
	 
	 	 	In all instances when granting consent under the lease the Lessor must not unreasonably
withhold or delay its consent.
	 
	13.	 	Redecoration
	 
	 	 	For the avoidance of doubt, no ‘re-decoration’ (inclusive of repainting, recarpeting and
refinishing) during the lease is to be undertaken by the Lessee beyond proper and
reasonable maintenance.
	 
	14.	 	Rent Free Period
	 
	 	 	From the Commencement Date to 31 March 2007 (subject to review under clause 15.2), no rent
shall be payable by the Lessee. However for the avoidance of doubt, Outgoings will be
payable from the Commencement Date.
	 
	15.	 	ACCESS TO PREMISES
	 
	15.1	 	Access to Premises
	 
	 	 	The Lessee shall receives keys and be granted full access to the Premises on the Commencement
Date.
	 
	15.2	 	Extension of Dates by delays in the Access Date
	 
	 	 	The Commencement Date in item 5 of the Schedule, the dates shown in clause 9 and the date
shown in clause 14 (Rent Free Period) shall be extended if there is a delay in providing
access to the Premises by the Lessor to the Lessee by 1 November 2006 by the same number
of days as the length of the delay.

 

 

SCHEDULE

	 	 	 	 	 
	1.

	 	PREMISES:
	 	1 Corporate Avenue, Rowville, Vic 3178 (excluding area leased for the telecommunications aerial)
	 
	 	 	 	 
	2.

	 	BUILDING:
	 	1 Corporate Avenue, Rowville, Vic 3178
	 
	 	 	 	 
	3.

	 	LAND:
	 	Certificate of Title Volume 10225 Folio 341
	 
	 	 	 	 
	4.

	 	TERM:
	 	Seven (7) years and five (5) months
	 
	 	 	 	 
	5.

	 	COMMENCEMENT DATE:
	 	1 November 2006 (as amended in accordance with Clause 15.2)
	 
	 	 	 	 
	6.

	 	RENTAL:
	 	$460,000 plus GST per annum
	 
	 	 	 	 
	7.

	 	PAYABLE:
	 	Calendar monthly in advance.
	 
	 	 	 	 
	8.

	 	RENT REVIEW:
	 	The rental shall be reviewed at the times and in the manner set
out in Appendix A.
	 
	 	 	 	 
	9.

	 	PERMITTED USE:
	 	Office, warehouse, manufacturing and laboratory
	 
	 	 	 	 
	10.

	 	FURTHER TERM:
	 	Two (2) further terms of five (5) years each
	 
	 	 	 	 
	11.

	 	CHATTELS:
	 	All fixtures and fittings in the Premises owned by the Landlord
	 
	 	 	 	 
	12.

	 	BANK GUARANTEE:
	 	$250,000
	 
	 	 	 	 
	13.

	 	LAST DAY FOR
EXERCISE OF OPTION:
	 	1 January 2014
	 
	 	 	 	 
	14.

	 	GUARANTOR:
	 	Nil

 

 

APPENDIX A

	1	 	CPI RENTAL REVIEW
	 
	 	 	The rental will be increased annually on each anniversary of the Commencement Date and each anniversary of commencement of
any further term by 3.5%. Rental for the first year of any renewed term shall be reviewed to market in accordance with
clause 2 below.
	 
	2	 	MARKET RENTAL REVIEW
	 
	2.1	 	The rental for the first year of any further term shall be reviewed to market in accordance with this clause.
	 
	2.2	 	The Lessor or lessee may initiate a review of the rental to market by giving the other party
a written notice stating the current market rent which it proposes should apply from a Market
Review Date.
	 
	2.3	 	All reviews of rental to market shall be initiated no earlier than 3 and no later than 6
months from a Market Review Date.
	 
	2.4	 	If the party receiving the notice does not object in writing to the proposed rent within 28
days, it becomes the rental from the Market Review Date.
	 
	2.5	 	If a party receiving the notice serves an objection to the proposed rent within 28 days and
the parties do not agree on the rental within 28 days after the objection is served, or the
parties must appoint a Valuer to determine the current market rent.
	 
	2.6	 	If the parties do not agree within 28 days after the objection is served, on the name of the
Valuer, the Valuer must be nominated by the senior office-bearer of the Australian Property
Institute — Victorian Division, at the request of either party.
	 
	2.7	 	In determining the current market rent for the Premises the Valuer must — use best valuation
practice and consider all factors the valuer considers relevant but must:

	 	(a)	 	Disregard;
	 
	 	1)	 	The value of the Lessees Works
	 
	 	2)	 	The incentive provided in the Lease;
	 
	 	3)	 	Lessee goodwill; and
	 
	 	4)	 	Any signage or naming rights granted under the Lease.
	 
	 	(b)	 	Have regard to;
	 
	 	1)	 	Written submissions from the parties;
	 
	 	2)	 	The provisions of the Lease including the whole Lease term (the
Initial Term plus any further options);
	 
	 	3)	 	The assumption that the premises are vacant and available for
lease; and
	 
	 	4)	 	The total amount of space the Lessee occupies in the building
(having regard to telecommunication aerials for example).
	 
	 	(c)	 	Assume;
	 
	 	1)	 	The Lessee has a full make good clause.

	 	 	The cost of any determination procedure will be borne equally by the parties.
	 
	2.8	 	The Valuer must determine a current market rent not more than 10% higher and not less than
10% lower than the rental immediately before the review.
	 
	2.9	 	Clause 2.8 does not apply if the Act applies.
	 
	2.10	 	The Valuer must make the determination of the current market rent and inform the parties in
writing of the amount of the determination and the reasons for it as soon as possible after
the end of the 21 days allowed for submissions by the parties.
	 
	2.11	 	If -

	 	(a)	 	no determination has been made within 45 days of the parties

	 	(i)	 	appointing the Valuer, or
	 
	 	(ii)	 	being informed of the Valuer’s appointment, or

 

 

	 	(b)	 	the Valuer resigns, dies or becomes unable to complete the valuation,
then the parties may immediately appoint a replacement Valuer in accordance with
Clause 2.6

	2.12	 	The Valuer’s determination binds both parties.
	 
	2.13	 	The Lessor and Lessee must bear equally the Valuer’s fee for making the determination. If
either pays more than half the fee, the difference may be recovered from the other.
	 
	2.14	 	Until the determination is made by the Valuer, the Lessee must continue to pay the same Rent
as before the Market Review Date. Within 7 days of being informed of the Valuer’s
determination, the parties must make any necessary adjustments.
	 
	2.15	 	In this Clause 2 a “Market Review Date” means the commencement of any further term of the
Lease namely 1 April 2014 and 1 April 2019

 

 

	 	 	 	 	 
	EXECUTED by the parties:
	 	 	 	 
	 
	 	 	 	 
	THE COMMON SEAL of HEYRAM PROPERTIES.

PTY. LTD was hereunto affixed in accordance with its

constitution in the presence of:

	 	)

)

)
	 	 

	 	 	 
	/s/ Bruce Heymanson      
                        Director

	 	/s/ Andrew Ramsden
;                      
Director
	 
	 	 
	Bruce Heymanson         
                        (Print name)

	 	Andrew Ramsden                             (Print name)

	 	 	 	 	 
	THE COMMON SEAL of UNIVERSAL BIOSENSORS

PTY LTD was hereunto affixed in accordance with its

constitution in the presence of :

	 	)

)

)
	 	 

	 	 	 
	/s/Mark Morrisson            
                        Director

	 	/s/ Andrew Denver          
;                      
Director
	 
	 	 
	Mark Morrisson            
                        (Print name)

	 	Andrew Denver               
;                       (Print name)exv10w6

 

Exhibit 10.6

Project No: GRA03395

	 	 	 
	

	 	R&D Start Program
   Grant Agreement
	Australian Government
	 	 
	 

Department of Industry

	 	 
	Tourism and Resources
	 	 
	AusIndustry

	 	Particular Conditions

Parties

	 	 	 
	Commonwealth of Australia
	 	 
	acting through the Industry Research
	 	 
	and Development Board
	 	 
	 
	 	 
	ABN 51 835 430 479
	 	 
	(Department of Industry, Tourism and
	 	 
	Resources)
	 	 
	 
	 	 
	Postal address
	 	Department of Industry, Tourism and Resources
	 
	 	GPO Box 85A
	 
	 	MELBOURNE VIC 3001

The Grantee

	 	 	 	 	 
	 
	 	 	 	Universal Biosensors Pty Ltd
	 
	 	- ABN	 	35098234309
	 
	 	- ACN	 	098 234 309
	 
	 	- postal address	 	103 Ricketts Road
	 
	 	 	 	MOUNT WAVERLEY VIC 3149
	 
	 	- business address	 	103 Ricketts Road
	 
	 	 	 	MOUNT WAVERLEY VIC 3149

R&D Start Grant Agreement Particular Conditions

Version 7.3 — Release Date June 04

Author: R&D Start Program Management

1

 

Operative provisions

	1.	 	This Grant is made to the Grantee in respect of the Project by the Industry Research
and Development Board on behalf of the Commonwealth to the Grantee under the R&D Start
Program.

	2.	 	The Grant is made pursuant to the Industry Research and Development Act 1986 and the
relevant Ministerial Directions issued under sections 19 and 20 of that Act.

	3.	 	The Grant is made on the terms and conditions of the Grant Agreement, which comprises the
General Conditions (version 7.3) and the Particular Conditions (including the schedule).

	4.	 	The Grantee acknowledges that it has received and read a copy of the General Conditions
(version 7.3), and agrees that the terms and conditions of the General Conditions form part of
the Grant Agreement.

	5.	 	Terms defined in the General Conditions (version 7.3) have the same meaning in the Particular
Conditions.

	6.	 	If there is an inconsistency between the Particular Conditions and the General
Conditions (version 7.3), the Particular Conditions prevail to the extent of the
inconsistency.

R&D Start Grant Agreement Particular Conditions

Version 7.3 — Release Date June 04

Author: R&D Start Program Management

2

 

Acceptance of terms

	 	 	 	 	 	 	 
	EXECUTED as a deed
	 	 	 	 	 	 
	Date of deed: 25 February 2005
	 	 	 	 	 	 
	Commonwealth of Australia

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	SIGNED for and on behalf of the

	 	 	)	 	 	 
	COMMONWEALTH OF AUSTRALIA by

	 	 	)	 	 	 
	Jayne Facey a delegate of the

	 	 	)	 	 	 
	INDUSTRY RESEARCH AND

	 	 	)	 	 	 
	DEVELOPMENT BOARD in the presence

	 	 	)	 	 	 
	of:

	 	 	)	 	 	 
	Ruth Steele

	 	 	)	 	 	 
	
 
Signature of witness

	 	 	)	 	 	 
	
	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	RUTH STEELE

	 	 	)	 	 	 
	 

Name of witness (block letters)
	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	

	 	 	)	 	 	/s/ Jayne Facey
	 

	 	 	 	 	 	 
	 

	 	 	)	 	 	 

Grantee

The terms
and conditions pursuant to which the Grant is made are hereby accepted by the Grantee.

	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Signed by

	 	 	)	 	 	 
	Universal Biosensors Pty Ltd

	 	 	)	 	 	 
	by:

	 	 	)	 	 	 
	/s/
Ian Bennett

	 	 	)	 	 	
	 
Secretary

	 	 	)	 	 	/s/ C. P. H. Kiefel 

	

	 	 	)	 	 	Director
	 
	Ian Bennett

	 	 	)	 	 	C. P. H. Kiefel
	 

Name (please print)
	 	 	)	 	 	 
Name (please print)
	

	 	 	)	 	 	
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

R&D Start Grant Agreement Particular Conditions

Version 7.3 — Release Date June 04

Author: R&D Start Program Management

3

 

The Schedule

	 	 	 	 	 
	1
	 	Project Title	 	Dry Chemistry Immunosensor
	 
	 	 	 	 
	2
	 	Project Reference Number	 	GRA03395
	 
	 	 	 	 
	3
	 	Project Duration	 	 
	 
	 	 	 	 
	 
	 	(a) Commencement Date:	 	1 October 2004
	 
	 	 	 	 
	 
	 	(b) Completion Date:	 	30 September 2007
	 
	 	 	 	 
	4
	 	Grant	 	A maximum amount of $2,366,064
	 
	 	 	 	 
	5
	 	Grant Percentage of
Eligible Expenditure	 	50%
	 
	 	 	 	 
	6
	 	Interest Rates	 	5.40 % per annum
	 
	 	 	 	 
	7	 	Project Planned Eligible Expenditure by Financial Year

[REDACTED]

	 	 	 	 	 
	8
	 	Initial Payment	 	$192,666
	 
	 	 	 	 
	9
	 	Project Description and Planned Outcomes	 	 

The project will develop a single step, disposable immunosensor platform which needs no liquid
reagents other than the sample. The platform will have the potential to give fully quanitiative
results in minutes on microlitre volumes of sample at the doctor’s office or emergency ward without
the operator carrying out any steps other than applying whole blood to the sensor. The target
analyte is the acute phase protein C reactive protein, which indicates the presence of infection or
other form of inflammation. The test will employ antibodies coupled to the enzyme glucose
dehydrogenase in a dry chemical system.

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	10	 	Performance Milestones and Planned Achievement Date

	 	 	 	 	 
	 	 	Major Milestone	 	Expected
	 	 	 	 	Achievement Date

[REDACTED]

	11	 	Retention Amount $118,304
	 
	12	 	Reports

	 	 	 	 	 	 	 
	Review Type	 	Due Date	 	Report Period	 	Audit Report
	 	 	 	 	 	 	Y/N

[REDACTED]

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Reports must conform with the requirements in the Project Reporting Guide supplied to the
Grantee by the Commonwealth, as varied from time to time by the Commonwealth and notified to
the Grantee.

Unless the Grantee is otherwise notified by the Commonwealth, commercialisation reports will be
required 1, 2 and 5 years after completion of the Project, in the format supplied by the
Commonwealth at those times.

	13	 	Notices

Notices must be addressed as follows:

	 	a)	 	if given to the Commonwealth, addressed and forwarded to the Director, AusIndustry
State Office, Department of Industry, Tourism and Resources for the attention of an AusIndustry
Customer Service Manager at the following address:

	 		 	
Address: PO Box 85A, MELBOURNE, VIC 3001

Facsimile No: 03 9268 7599

Email address: aivic@industry.gov.au

or as otherwise notified in writing by an AusIndustry Customer Service Manager; and

	 	b)	 	if given by the Commonwealth, signed by an authorised delegate of the Industry Research
and Development Board and forwarded to the Grantee at the following address:
	 
	 	 	 	Dr D Rylatt

Project Manager

Universal Biosensors Pty Ltd

Locked Bag 50

MOUNT WAVERLEY VIC 3149

or as otherwise notified in writing by the Grantee.

	14	 	Special Conditions
	 
	 	 	Nil
	 
	15	 	Repayment of Repayable Contribution under Start Premium
	 
	 	 	Not Applicable

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NATIONAL BENEFIT INDICATORS — COMMERCIALISATION

The Industry Research and Development (IR&D) Board understands the increasing global nature of
business and the need for innovative companies to respond flexibly to market needs. For example,
while the IR&D Board is keen to support projects which involve manufacturing or production in
Australia, it accepts that there will be instances where Australian manufacture could limit the
commercialisation prospects of intellectual property developed with its grant funding. This does
not remove the necessity for the commercialisation of project outcomes to provide national
benefits.

Set out below are the indicators by which the IR&D Board will assess the level of national
benefit contribution to Australia and the Australian economy from the commercialisation of
R&D Start projects where commercialisation will not take place in Australia:

As reflected in the project commercialisation plan, overseas commercialisation is reasonable
when it will result in:

	•	 	the maintenance of Australia as the home base for future R&D, manufacture or product
development;
	 
	•	 	an increase in the number of the company’s Australian-based employees.
	 
	•	 	Australian residents receiving commercial compensation through royalties, licence fees,
equity, dividends or outright sale.
	 
	•	 	ongoing development of the commercial outcomes arising from R&D activities involving domestic
and/or international collaboration with other firms and/or research organisations.

As reflected in the project commercialisation plan, overseas production is reasonable in two
circumstances:

(i) in cases where local production is demonstrably uneconomic on grounds of cost, the
Board will consider:

	•	 	the level of commitment to retaining or enhancing the company’s R&D facilities in
Australia.
	 
	•	 	the degree of globalisation of the relevant industry sector.
	 
	•	 	the relative input costs to production as identified by the company.
	 
	•	 	the relative transport costs as identified by the company.
	 
	•	 	the relative costs of skilled labour as identified by the company.
	 
	•	 	legal barriers to entry to foreign markets.
	 
	•	 	any other factors it finds relevant.

(ii) in cases where production or commercialisation demonstrably requires close physical
interaction with overseas companies, customers, suppliers and competitors, the Board will
consider:

	•	 	the level of commitment to retaining or enhancing the company’s R&D facilities in
Australia.
	 
	•	 	the mechanisms established to disseminate knowledge and market intelligence from
overseas to the company’s Australian operations.
	 
	•	 	the industry norms in terms of proximity.
	 
	•	 	the level of competition in the industry sector and the need to innovate quickly.
	 
	•	 	the nature of inputs which require close contact (for example, perishables or knowledge).
	 
	•	 	any other factors it finds relevant.

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	An Australian Government Initiative

	 

Commercial Ready Program 
Grant Agreement

General Conditions

Table of contents

	 	 	 	 	 	 	 
	Clause	 	 	 	Page	 
	1	 	Interpretation
	 	 	2	 
	 	 	 
	 	 	 	 
	2	 	Warranties
	 	 	6	 
	 	 	 
	 	 	 	 
	3	 	Payment of Grant
	 	 	7	 
	 	 	 
	 	 	 	 
	4	 	Conduct of Project
	 	 	9	 
	 	 	 
	 	 	 	 
	5	 	Confidentiality
	 	 	13	 
	 	 	 
	 	 	 	 
	6	 	Evaluation
	 	 	14	 
	 	 	 
	 	 	 	 
	7	 	Project Outcomes
	 	 	14	 
	 	 	 
	 	 	 	 
	8	 	Other Financial Assistance
	 	 	15	 
	 	 	 
	 	 	 	 
	9	 	Acquittal of Grant
	 	 	15	 
	 	 	 
	 	 	 	 
	10	 	Termination
	 	 	16	 
	 	 	 
	 	 	 	 
	11	 	No Dealing with Grantee’s rights
	 	 	17	 
	 	 	 
	 	 	 	 
	12	 	Acknowledgement and Public Statements
	 	 	18	 
	 	 	 
	 	 	 	 
	13	 	Regulatory and Ethical Approvals
	 	 	18	 
	 	 	 
	 	 	 	 
	14	 	Goods and Services Tax
	 	 	18	 
	 	 	 
	 	 	 	 
	15	 	Notices
	 	 	19	 
	 	 	 
	 	 	 	 
	16	 	Right of Commonwealth to recover money
	 	 	20	 
	 	 	 
	 	 	 	 
	17	 	General
	 	 	20	 

	 	 	 
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Operative provisions

	1	 	Interpretation

	 	1.1	 	Unless the contrary intention appears:
	 
	 	 	 	annual capped grant amount means, for a financial year, the relevant amount stated
in item 7 of the schedule and, in the absence of an amount being stated, the
relevant amount for that financial year is zero.
	 
	 	 	 	application means the application submitted by the Grantee in respect of which
the grant has been awarded.
	 
	 	 	 	Approved Financial Institution means a deposit taking institution authorised
under the Banking Act 1959 (Cth) to carry on banking business in Australia.
	 
	 	 	 	Board means the Industry Research and Development Board established by section 6
of the Industry Research and Development Act 1986.
	 
	 	 	 	budget means the budget of planned eligible expenditure (by financial year) for
the project in the form set out in item 7 of the schedule.
	 
	 	 	 	commencement date is the date specified in item 3(a) of the schedule, or the date
of execution of this deed, whichever is the later.
	 
	 	 	 	completion date is the completion date for the project set out in item 3(b) of
the schedule, or the date of termination of this deed, whichever is the earlier.
	 
	 	 	 	confidential information comprises information described in item 13 of the
schedule, and any other information that is by its nature confidential, but does
not include any of the information specified in clause 12.3.
	 
	 	 	 	control has the meaning given by section 50AA
of the Corporations Act 2001 (Cth).
	 
	 	 	 	deal with means:

	 	(a)	 	sell, license, transfer, novate, declare a trust over or
otherwise dispose of or procure or effect the disposal of, or in any way
whatsoever deal with, any legal or equitable interest or right in any
subject matter; or
	 
	 	(b)	 	effect a change in the beneficial interest or beneficial
unit holding under a trust the trustee of which has an interest or right in
the subject matter.

	 	 	 	Department means the Department of Industry, Tourism and Resources or any
successor.

	 	 	 
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	 	 	 	eligible activity means any one or more of ‘research and development activities’, ‘proof of
concept activities’, or ‘early stage commercialisation activities’, all terms having the meaning
given in the Guidelines.
	 
	 	 	 	eligible expenditure means expenditure incurred by the Grantee:

	 	(a)	 	on the project;
	 
	 	(b)	 	during the project period (with the exception of final audit expenses incurred under clause
4.17 which may be incurred after the completion date); and
	 
	 	(c)	 	that qualifies as eligible expenditure under Program guidelines issued by the Program
Delegate effective at the date of execution of this deed.

	 	 	 	encumbrance means a security interest or any other legal or equitable interest or right which is
either imposed by law or which is given to any person, over property or rights under a contract.
	 
	 	 	 	financial year means the 12 month period beginning 1 July of one year and ending 30 June of the
following year.
	 
	 	 	 	floating charge has the meaning given by section 9 of the Corporations Act 2001 (Cth).
	 
	 	 	 	grant means the amount set out in item 4 of the schedule.
	 
	 	 	 	grant percentage is the percentage figure set out in item 5 of the schedule, which figure must not
exceed 50%.
	 
	 	 	 	GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
	 
	 	 	 	Guide to Managing Your Grant means the document of that name (or any replacement document)
provided by the Commonwealth to the Grantee from time to time, including details of the form and
content of reports required by the Commonwealth for the purposes of this deed.
	 
	 	 	 	Guidelines means the Commercial Ready Program Guidelines dated 30 August 2004.
	 
	 	 	 	insolvency event means any of the following:

	 	(a)	 	a person is or states that the person is unable to pay from the person’s own money all the
person’s debts as and when they become due and payable;
	 
	 	(b)	 	a person is taken or must be presumed to be insolvent or unable to pay its debts under any
applicable legislation;
	 
	 	(c)	 	an application or order is made for the winding up or dissolution or a resolution is passed
or any steps are taken to pass a resolution for the winding up or dissolution of a person;

	 	 	 
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	 	(d)	 	an administrator, provisional liquidator, liquidator or person having a
similar or analogous function under the laws of any relevant jurisdiction is appointed
in respect of the corporation or any action is taken to appoint any such person;
	 
	 	(e)	 	a receiver or receiver and manager is appointed in respect of any property of a person;
	 
	 	(f)	 	a corporation is deregistered under the Corporations Act 2001 or notice of its proposed
deregistration is given to the corporation;
	 
	 	(g)	 	a distress, attachment or execution is levied or becomes enforceable against any property or
a person;
	 
	 	(h)	 	a person enters into or takes any action to enter into an arrangement (including a scheme of
arrangement or a deed of company arrangement), composition or compromise with, or assignment
for the benefit of, all or any class of the persons’ creditors or members or a moratorium
involving any of them; or
	 
	 	(i)	 	anything analogous to or of a similar effect to anything described above under the law of
any relevant jurisdiction occurs in respect of a person.

	 	 	 	intellectual property means all statutory and other proprietary rights in respect of trade marks,
patents, circuit layouts, copyrights, designs, moral rights, confidential information, expertise,
knowledge, skills, techniques, methods, procedures, ideas and concepts, plant varieties and all
other rights with respect to intellectual property as defined in Article 2 of the July 1967
Convention Establishing the World Intellectual Property Organisation.
	 
	 	 	 	initial budget is the budget referred to in clause 4.5 that is current on the commencement date.
	 
	 	 	 	letter of offer means the letter from the Department to the Grantee confirming the Program
Delegate’s approval of the grant for the project.
	 
	 	 	 	matching funding means any funds available to the Grantee for the project, other than:

	 	(a)	 	progress payments;
	 
	 	(b)	 	funding obtained by the Grantee under a program administered by the Board or the Department;
	 
	 	(c)	 	funding of a kind that the Guidelines, or any other Program policies or guidelines issued by
the Program Delegate from time to time, state is not to be regarded as matching funding; or
	 
	 	(d)	 	non-financial (in-kind) assistance.

	 	 	 
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	 	 	 	particular conditions mean the conditions
specific to the grant and the project.
	 
	 	 	 	payment date means the date on which a progress payment is or is proposed to be paid.
	 
	 	 	 	performance milestone means a performance milestone set out in item 10 of the schedule.
	 
	 	 	 	planned outcomes mean the planned results of the project set out in item 9 of the
schedule and the anticipated national benefits of the project described in the
application.
	 
	 	 	 	Program means the Commercial Ready program, a merit-based program that is administered by
the Department and designed to increase the level of high quality innovation activity by
small to medium sized businesses in Australia.
	 
	 	 	 	Program Delegate means an employee of the Department who has been empowered by the
Minister, or otherwise duly authorised, to carry out the relevant functions in respect of
the Program.
	 
	 	 	 	Program funding means the funding made available by the Parliament of the Commonwealth of
Australia for the Program in any given financial year, being the funding specified in the
Portfolio Budget Statement (as varied by any Portfolio Additional Estimates Statement)
for that year.
	 
	 	 	 	progress payment has the meaning given in clause 3.2.
	 
	 	 	 	project means the project described in item 9 of the schedule.
	 
	 	 	 	project intellectual property means intellectual property created in the course of the
project including improvements, inventions and discoveries arising out of the conduct of
the project.
	 
	 	 	 	project period means the period beginning on the commencement date and ending on the
completion date.
	 
	 	 	 	quarter means any one of the 3 month periods ending 30 September, 31 December, 31 March
or 30 June in a given financial year.
	 
	 	 	 	related body corporate has the same meaning as in section 50 of the Corporations Act 2001
(Cth).
	 
	 	 	 	retention amount is the amount specified in item 11 of the schedule and, in the absence
of an amount being stated, is an amount equal to 5% of the grant.
	 
	 	1.2	 	Unless the contrary intention appears:

	 	(a)	 	a person includes a firm, a body corporate, an
unincorporated association or an authority;
	 
	 	(b)	 	the singular includes the plural and vice versa;
	 
	 	(c)	 	a reference to a statute, ordinance, code or other law includes regulations
and other instruments made under it and

	 	 	 
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	 	 	 	consolidations, amendments, re-enactments or replacements of any of
them; and
	 
	 	(d)	 	where any word or phrase is given a defined meaning, any
other part of speech or other grammatical form in respect of that word or
phrase has a corresponding meaning.

	 	1.4	 	Headings are inserted for convenience of reference only and are not to be
used in the interpretation of this deed.
	 
	 	1.5	 	Where the last day of any period for the doing of an action falls on a day
that is not a business day in the place that action is required to be done, the
action must be done no later than the end of the next business day in that place.
	 
	 	1.6	 	A reference to the schedule is a reference to the schedule contained in
the particular conditions.
	 
	 	1.7	 	A reference to this deed includes these terms and conditions and the
particular conditions.

	2	 	Warranties

	 	2.1	 	The Grantee warrants that as at the date of execution of this deed and on each
day during its term:

	 	(a)	 	all information provided by the Grantee in the application
is true and correct at the date of the application and on execution of this
deed;
	 
	 	(b)	 	without limiting the generality of clause 2.1 (a):

	 	(1)	 	the project involves any one or more
eligible activities;
	 
	 	(2)	 	the planned outcomes for the project
include either the production, establishment of the commercial or
technical viability, or commercialisation of a new, clearly
identified product, process or service;
	 
	 	(3)	 	the Grantee has or will have available
to it sufficient funds to pay all costs and expenses incurred in
relation to the project, including sufficient matching funding to
pay for eligible expenditure not covered by the grant, as and when
all amounts are due to be paid;

	 	(c)	 	the Grantee has complied, and will at all times continue
to comply, with any conditions specified in the letter of
offer;
	 
	 	(d)	 	all information provided by the Grantee and included in
this deed and any information given to the Commonwealth from time to time
under this deed (including information contained in the particular
conditions or included in any report required under this deed), is true and
correct;

	 	 	 
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	 	(e)	 	the Grantee does not have any interests or obligations that conflict
with its interests or obligations under this deed;
	 
	 	(f)	 	the Grantee, has and will have, at all times, all necessary
rights in relation to intellectual property and technical information,
including, but not limited to, all designs, specifications, data, drawings,
plans, reports, models, prototypes and other things necessary to conduct the
project, achieve the planned outcomes and commercialise the project (or its
outcomes); and
	 
	 	(g)	 	the Grantee is not aware of any circumstances which
adversely affects or might adversely affect the Grantee’s ability to fulfil
its obligations under this deed.

	 	2.2	 	If the Grantee becomes aware of a breach of warranty, the Grantee must
immediately notify the Commonwealth of that breach.

	3.	 	Payment of Grant

Payment of Grant

	 	3.1	 	The Commonwealth agrees to pay the grant to the Grantee in
accordance with this deed, subject to sufficient Program funding
being available on the relevant payment date, and this clause 3.

Progress payments

	 	3.2	 	The grant will be paid in instalments (‘progress payments’) by direct credit
to the bank account established by the Grantee under clause 4.13.
	 
	 	3.3	 	A progress payment may be made in advance for the next quarterly period, in
the Commonwealth’s absolute discretion.
	 
	 	3.4	 	The Commonwealth is not obliged to make a progress payment:

	 	(a)	 	unless and until the Grantee provides evidence
satisfactory to the Commonwealth that:

	 	(1)	 	it has available to it sufficient
matching funding to meet all eligible expenditure incurred to date,
and forecast to be incurred during the next quarter, that is not
met by the sum of the progress payments paid to date and the next
scheduled progress payment, and
	 
	 	(2)	 	it has made satisfactory progress on the
project, including by meeting all performance milestones due for
completion on or before the payment date; or

	 	(b)	 	if, at the payment date for that payment:

	 	(1)	 	the sum of that progress payment and
other progress payments made in the financial year in which the

	 	 	 
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	 	 	 	payment date occurs, exceeds the annual capped grant amount for
that financial year;
	 
	 	(2)	 	the sum of all progress payments made to
date and the next scheduled payment, exceeds the grant percentage
of the sum of eligible expenditure incurred to date and budgeted
eligible expenditure for the next quarter;
	 
	 	(3)	 	the Commonwealth has terminated, or is
entitled to terminate, the deed under clause 10; or
	 
	 	(4)	 	the Commonwealth reasonably believes
that the Grantee is in default of any of its obligations under the
deed, including by not submitting all reports due under this deed
in the form and content satisfactory to the Commonwealth.

	 	3.5	 	The Commonwealth may by notice to the Grantee request that the
Grantee provide to the Commonwealth any information the
Commonwealth reasonably requires for the purposes of determining
any of the matters described in clause 3.4. The Grantee must
provide information requested under this clause within 10 days of
the Commonwealth’s request.

Retention amount

	 	3.6	 	Without limiting the operation of clause 3.4, the Commonwealth
may retain the retention amount until such time as the Grantee has
completed the project, and submitted all reports due under this deed
in the form and content satisfactory to the Commonwealth.

Commonwealth liability limited

	 	3.7	 	The Commonwealth’s liability under this deed is limited:

	 	(a)	 	in any given financial year, to the lesser of:

	 	(1)	 	the annual capped grant amount for that year; or
	 
	 	(2)	 	the grant percentage of total eligible
expenditure incurred by the Grantee in that financial year; and

	 	(b)	 	in the aggregate, to the lesser of:

	 	(1)	 	the grant; or
	 
	 	(2)	 	the grant percentage of total eligible expenditure.

Eligible expenditure

	 	3.8	 	Expenditure that:

	 	(a)	 	is not paid by the Grantee within 3 months of the
completion date; or
	 
	 	(b)	 	for the purposes of clause 3.7(a) and assessing the
Grantee’s entitlement to progress payments in any given financial

	 	 	 
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	 	 	 	year, is not paid within 3 months of the end of
that financial year; or
	 
	 	(c)	 	is incurred by the Grantee on an eligible activity in
excess of the expenditure threshold for that activity referred to in clause
4.4, without the Commonwealth’s prior consent,

	 	 	 	will be deemed not to be eligible expenditure.
	 
	 	3.9	 	The Commonwealth’s determination as to whether expenditure on the project
is eligible expenditure is final and binding on the Grantee.

	4	 	Conduct of Project

Conduct of project

	 	4.1	 	The Grantee agrees to undertake the project:

	 	(a)	 	at a rate of progress and in a manner sufficient to
achieve each performance milestone by the relevant due date specified in
item 10 of the schedule;
	 
	 	(b)	 	with the aim at all times of achieving the planned
outcomes; and
	 
	 	(c)	 	in accordance with any representations contained in the
application and the other terms of this deed.

	 	4.2	 	Any progress payments paid in advance under clause 3.3 must be expended by
the Grantee on eligible expenditure incurred on the project.
	 
	 	4.3	 	Subject to clause 4.4, the Grantee may reallocate budgeted expenditure or
vary its work methods and schedules as it considers necessary to undertake and
complete the project, provided it does not materially change the project.
	 
	 	4.4	 	At any point in time, actual total eligible expenditure incurred by the
Grantee on an eligible activity must not exceed 125% of the total amount allocated to
that activity in the initial budget, without the Commonwealth’s prior written
consent.

Initial Budget

	 	4.5	 	The budget current at the date of this deed is set out in item 7 of the
schedule. If on this date item 7 is incomplete, the Grantee must give
the Commonwealth a complete budget within 7 days of execution of
this deed.

Revised budget and Variation of annual capped grant amounts

	 	4.6	 	The Grantee must give the Commonwealth:

	 	(a)	 	by 1 February of each financial year; and

	 	 	 
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	 	(b)	 	at any time the Grantee wishes to request a variation to any
one or more of the annual capped grant amounts,

	 	 	 	a revised budget in the approved form, including details of any changes the
Grantee considers necessary so as to ensure the budget continues to accurately
reflect planned eligible expenditure for the project, and an explanation as to
why the requested changes are necessary.
	 
	 	4.7	 	The Commonwealth may either approve or reject a revised budget provided
under clause 4.6.
	 
	 	4.8	 	If the revised budget is approved by the Commonwealth, the then current
budget is replaced by the revised budget approved under clause 4.7.
	 
	 	4.9	 	On approving a revised budget under clause 4.7, the Commonwealth may in its
absolute discretion:

	 	(a)	 	vary any one or more of the annual capped grant amounts or
the grant, and
	 
	 	(b)	 	make any other changes to the particular conditions that
the Commonwealth considers reasonably necessary,

	 	 	 	having regard to the changes in the timing or amount of actual or budgeted
eligible expenditure on the project.

Project delay

	 	4.10	 	The Grantee must notify the Commonwealth as soon as practicable, and in any
event in its next report due under this deed, if a performance milestone is not
achieved or is unlikely to be achieved by the date for achievement of that milestone
set out in item 10 of the schedule.
	 
	 	4.11	 	When notifying the Commonwealth under clause 4.10, the Grantee must specify:

	 	(a)	 	the reason for the delay;
	 
	 	(b)	 	the action the Grantee proposes to take to address the delay;
	 
	 	(c)	 	the anticipated date for achievement of the relevant performance
milestone;
	 
	 	(d)	 	the expected effect (if any) the delay will have on the project,
achievement of its planned outcomes and commercialisation of the project
(or its outcomes); and
	 
	 	(e)	 	changes to key personnel, if any, having an impact on
the matters reported under paragraphs (a) to (d).

	 	4.12	 	If the Commonwealth considers in its absolute discretion that the
failure by the Grantee to achieve a performance milestone by the
relevant date specified in item 10 of the schedule may compromise
the capacity of the Grantee to achieve the national benefits for the

	 	 	 
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	 	 	 	project contemplated under clause 7.1, the Commonwealth may issue a termination
notice pursuant to clause 10.1.

Bank Account

	 	4.13	 	The Grantee must establish a separate account with an Approved Financial
Institution for the sole purpose of handling the grant and interest on the grant. The
Grantee must, if it has not already done so, provide the Commonwealth with sufficient
details to identify the account, within 7 days of execution of this deed.
	 
	 	4.14	 	The Grantee must not use the account established under clause 4.13 for any
purpose other than one connected with this deed, including by not depositing funds
other than progress payments into the account. The Grantee agrees to promptly provide
the Commonwealth and the relevant Approved Financial Institution with an authority
enabling the Program Delegate to obtain any details relating to use of the account,
on request.

Reporting

	 	4.15	 	The Grantee must give the Commonwealth the reports described in the Guide to
Managing Your Grant, at the times set out in item 12 of the schedule.
	 
	 	4.16	 	If the Commonwealth requires a report to be audited, the report must be
audited by a member of the Institute of Chartered Accountants, a member of CPA
Australia or a Public Practice Certified Member of the National Institute of
Accountants, not being an employee, shareholder, director other officeholder or
related body corporate of the Grantee, or person having had any involvement in the
preparation of the Grantee’s application or any other report required under this
deed.
	 
	 	4.17	 	If in the Commonwealth’s opinion either the form or content of a report does
not meet the requirements of this deed, or is not adequate for the Commonwealth’s
purposes, the Grantee must submit a revised report satisfactory to the Commonwealth,
within 28 days of receiving a notice from the Commonwealth requiring it to do so.

Records to be kept

	 	4.18	 	The Grantee must keep to the Commonwealth’s satisfaction all
records (including original receipts, invoices and bank statements)
necessary to provide a complete, detailed record and explanation of:

	 	(a)	 	expenditure by the Grantee on the project;
	 
	 	(b)	 	project activities, progress of the project and all steps
taken by the Grantee for the purposes of meeting its obligations under
clause 7.2;

	 	 	 
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	 	(c)	 	any amounts of GST paid by the Grantee in respect of any supply
made to the Commonwealth under this deed; and
	 
	 	(d)	 	any other records relating to the project which are
reasonably required by the Commonwealth from time to time.

	 	4.19	 	Records required to be kept under clause 4.18 must be retained by
the Grantee during the project period and for five years after the
completion date.

Inspection and audit

	 	4.20	 	The Department, and any person authorised in writing by the Program
Delegate, may at reasonable times and on reasonable notice enter the Grantee’s
premises and inspect the records kept by the Grantee, and progress
with the project,
in order to review the Grantee’s compliance with this deed.
	 
	 	4.21	 	The Grantee must give the Department or its authorised representative all
necessary facilities and assistance to enable them to conduct a review under clause
4.20.
	 
	 	4.22	 	In conducting a review, the Department or its authorised representative may
take copies of any records (including books, documents, invoices, receipts and any
other papers) that the Department or its authorised representative considers relevant
to the project, or the Grantee’s compliance with this deed.
	 
	 	4.23	 	Without in any way affecting the statutory powers of the Auditor-General
under the Auditor-General Act 1997 and subject to the provisions of that Act, the
Auditor-General is a person authorised for the purposes of clause 4.20.

Compliance with laws

	 	4.24	 	The Grantee agrees, in conducting the project, commercialising its
outcomes and otherwise performing its obligations under this deed,
to comply with all relevant legislation of the Commonwealth or of
any State, Territory or local authority, including the Crimes Act
1914 and the Equal Opportunity for Women in the Workplace Act
1999.

Subcontracting

	 	4.25	 	The Grantee may engage subcontractors to undertake work in relation to the
project.
	 
	 	4.26	 	The Grantee will ensure that any subcontract entered into by the Grantee for
the purposes of the project contains provisions equivalent to clauses 4.18–4.24 of
this deed.

	 	 	 
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	 	4.27	 	The Grantee remains fully responsible for the performance of the project
and meeting all its other obligations under this deed notwithstanding that the
Grantee has subcontracted the performance of any part of the project.
	 
	 	4.28	 	The Grantee agrees to promptly notify the Commonwealth of any issues or
disputes arising under or in relation to a subcontract that:

	 	(a)	 	has or may result in the Grantee failing to comply with
any of its obligations under this deed; or
	 
	 	(b)	 	involves the Grantee withholding payment to the
subcontractor of an amount representing eligible expenditure incurred by the
Grantee on the project.

	 	4.29	 	On receipt of a notice under clause 4.28, the Commonwealth may in its
absolute discretion withhold payment of any further progress payments, pending
satisfactory resolution of the issue or dispute notified to the Commonwealth.
	 
	 	4.30	 	The Grantee agrees to give the Commonwealth a copy of any subcontract
entered into by the Grantee for the performance of work on the
project, within 14
days of the Commonwealth’s request to do so.

	5	 	Confidentiality

	 	5.1	 	Subject to clause 5.2, the Department agrees not to disclose any confidential
information of the Grantee, without the Grantee’s consent.
	 
	 	5.2	 	The Commonwealth will not be taken to have breached its obligations under
clause 5.1 to the extent that the Department discloses
confidential information:

	 	(a)	 	to its officers, employees, agents, external professional
advisers or contractors solely to comply with obligations, or to exercise
rights, under this deed;
	 
	 	(b)	 	to its internal management personnel solely to enable
effective management or auditing of deed-related activities;
	 
	 	(c)	 	for a purpose directly related to the enforcement or
investigation of a possible breach of any Commonwealth,
State, Territory or local law;
	 
	 	(d)	 	to its responsible Minister, or in response to a demand by
a House or a Committee of the Commonwealth Parliament;
	 
	 	(e)	 	within the Department, or with the Board or another
government agency, where this serves the Department’s, the Board’s, or the
Commonwealth’s legitimate interests;

	 	 	 
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	 	(f)	 	as required or permitted by any other law, or an express
provision of this deed, to be disclosed; or
	 
	 	(g)	 	that is in the public domain other than due to a breach of
this clause 5.

	6	 	Evaluation

	 	6.1	 	The Grantee must co-operate in any evaluation of the Program undertaken by or on
behalf of the Commonwealth.
	 
	 	6.2	 	The Grantee must provide information and completed survey forms relating to
the project or the Program at any time during the project period and for five years
after the completion date, at the request of the Commonwealth or any third party
engaged by the Commonwealth for the purposes of undertaking any Program evaluation.
	 
	 	6.3	 	The Grantee must comply with a request under clause 6.2 within 28 days of
receiving the request.

	7	 	Project Outcomes

	 	7.1	 	The parties acknowledge that the giving of the grant for the purposes of the
project is intended to deliver substantial national benefit to Australia. The parties
agree that substantial national benefit will be deemed to have been satisfactorily
delivered where:

	 	(a)	 	on or by the completion date, the Grantee demonstrates to
the Commonwealth’s satisfaction that the planned outcomes have been
achieved; and
	 
	 	(b)	 	the Grantee commercialises the project (or its outcomes)
as represented in the application, on normal commercial terms and within a
reasonable time of completion of the project.

	 	7.2	 	The Grantee agrees to use its best endeavours to:

	 	(a)	 	ensure the planned outcomes are achieved; and
	 
	 	(b)	 	commercialise the project (or its outcomes) in accordance
with clause 7.1(b).

	 	7.3	 	Without limiting the operation of clause 7.2, the Grantee will be deemed to
have breached that clause where the Commonwealth reasonably believes the Grantee has
acted:

	 	(a)	 	inconsistently with any material representation (as
determined by the Commonwealth acting reasonably) included in the
application; or
	 
	 	(b)	 	in a manner so as to reduce or prevent the national
benefit contemplated under clause 7.1 from being achieved.

	 	 	 
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	 	7.4	 	The Grantee must immediately notify the Commonwealth (giving reasons) if at any time the Grantee:

	 	(a)	 	believes the Grantee’s or the project’s capacity to achieve the planned
outcomes has been compromised; or
	 
	 	(b)	 	wishes to commercialise the project (or its outcomes)
other than as represented in the application and as a result of the proposed
change:

	 	(1)	 	the project would no longer be
commercialised on normal commercial terms;
	 
	 	(2)	 	significantly additional aspects of the
project would be commercialised in a country other than Australia;
or
	 
	 	(3)	 	any overseas commercialisation would
deliver significantly reduced national benefit when compared to the
proposed commercialisation arrangements set out in the application.

	 	7.5	 	If the Grantee fails to comply with either clause 7.2 or 7.4, the
Commonwealth may by notice to the Grantee require the Grantee to
repay some or all of the grant paid to the Grantee, together with
interest calculated in accordance with clause 16.2.

	8	 	Other Financial Assistance

	 	8.1	 	The Grantee must give the Commonwealth details of any financial assistance the
project receives from another Commonwealth, State or Territory government source or
agency, including the amount of the funding and the name of the program under which
it was provided. The Grantee must provide the information required to be disclosed
under this clause within 28 days of receiving notice of approval of that other
financial assistance.
	 
	 	8.2	 	The Commonwealth may reduce the size of the grant (together with the
retention amount and any annual capped grant amount) after taking into account that
other financial assistance.

	9	 	Acquittal of Grant

	 	9.1	 	If at any time the sum of the progress payments paid to the Grantee under this
deed exceeds:

	 	(a)	 	the grant; or
	 
	 	(b)	 	the grant percentage of total eligible
expenditure,

	 	 	 	the Commonwealth may by notice to the Grantee require the Grantee to repay the
amount of the excess to the Commonwealth, plus interest calculated in accordance
with clause 16.2.

	 	 	 
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	 	9.2	 	If at the end of a financial year the total progress payments paid to
the Grantee with respect to that year exceeds the annual capped grant amount for
that year, the Commonwealth may by notice to the Grantee require the Grantee to
repay the amount of that excess to the Commonwealth, plus interest calculated in
accordance with clause 16.2.
	 
	 	9.3	 	If the Grantee expends the grant (or any progress payment) other than in
accordance with this deed, the Commonwealth may by notice to the Grantee require the
Grantee to repay the grant or so much of the grant as the Commonwealth determines,
plus interest calculated in accordance with clause 16.2.

	10	 	Termination

Immediate termination

	 	10.1	 	The Commonwealth may immediately terminate this deed by notice
to the Grantee if:

	 	(a)	 	an insolvency event occurs in relation to the Grantee;
	 
	 	(b)	 	the Grantee ceases to carry on business, or a substantial
part of its business;
	 
	 	(c)	 	the Grantee breaches any warranty contained in clause 2;
	 
	 	(d)	 	there is a change in control or ownership of the Grantee
which the Commonwealth reasonably considers has an adverse effect on the
Grantee’s ability to comply with any of its obligations under this deed;
	 
	 	(e)	 	the Grantee commits any breach in respect of which this
deed provides (other than clause 10.2) a notice of termination may be given;
or
	 
	 	(f)	 	the Grantee commits any breach which the Commonwealth
reasonably considers is not capable of remedy.

Termination following notice

	 	10.2	 	If the Grantee breaches this deed and the Commonwealth
reasonably considers that the breach is capable of remedy, the
Commonwealth may terminate this deed by notice to the Grantee, if
the Grantee fails to remedy the breach within 28 days of receiving
notice from the Commonwealth requiring it to do so.

Consequences of termination

	 	10.3	 	On termination of the deed under this clause 10:

	 	(a)	 	the parties are relieved from future performance of this
deed, without prejudice to any right of action that has accrued at the date
of termination;
	 
	 	(b)	 	the Grantee must give the Commonwealth:

	 	 	 
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	 	(1)	 	all outstanding reports due under this deed; and
	 
	 	(2)	 	any other reports described in the Guide
to Managing Your Grant, or as otherwise notified to the Grantee,

	 	 	 	in the form, content and within the timeframes specified in that guide or
as otherwise notified to the Grantee; and

	 	(c)	 	the Commonwealth may (acting reasonably) by notice to the
Grantee, require the Grantee to repay some or all of the
grant, plus
interest calculated in accordance with clause 16.2.

	 	10.4	 	This deed may be terminated at any time by the mutual written agreement of
the parties.

	11	 	No Dealing with Grantee’s rights

	 	11.1	 	Unless expressly authorised to do so under this deed, the Grantee must not deal
with, or grant or create any encumbrance over its rights under this deed, or its
interest in or rights over the project intellectual property or any other
intellectual property necessary to conduct the project, achieve the planned outcomes
or commercialise the project (or its outcomes) in accordance with this deed, without
the prior written consent of the Commonwealth.
	 
	 	11.2	 	A change in control of the Grantee is taken to be dealing with the Grantee’s
rights under this deed.
	 
	 	11.3	 	If the Grantee deals with, or grants or creates any encumbrance over its
rights under this deed, or its rights over or interest in the project intellectual
property or any other intellectual property referred to in clause 11.1, without the
prior written consent of the Commonwealth, the Commonwealth may issue a termination
notice pursuant to clause 10.1.
	 
	 	11.4	 	The Commonwealth may impose conditions (a breach of which is a breach of
this deed) in giving its consent under clause 11.1, including, but not limited to,
requiring the Grantee and any other person concerned in a transaction referred to in
clause 11.1 to execute all documentation as required by the Commonwealth.
	 
	 	11.5	 	The giving of a floating charge over the assets and undertakings of the
Grantee is not to be taken to be a breach of clause 11.1.

	12	 	Acknowledgement and Public Statements

	 	12.1	 	The Grantee must acknowledge the grant and the Program in any public statements
about the project made during the project period and for 5 years after the completion
date.
	 
	 	12.2	 	The Commonwealth may publicise the awarding of the grant at any time after
it is awarded.

	 	 	 
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	 	12.3	 	The Commonwealth may include in press releases and general
announcements about the grant and in its annual report, the following
information:

	 	(a)	 	the name of the Grantee;
	 
	 	(b)	 	the amount of the grant; and
	 
	 	(c)	 	the title and a description of the project.

	13	 	Regulatory and Ethical Approvals

	 	13.1	 	The Grantee must obtain and maintain any necessary legal, regulatory or ethical
approvals in relation to the conduct of the project.
	 
	 	13.2	 	The Commonwealth may give a notice to the Grantee to obtain or restore an
approval referred to in clause 13.1 within 28 days, or a further period allowed by
the Commonwealth, of receipt of the notice. If the Grantee does not comply with this
notice, the Commonwealth may issue a termination notice pursuant to clause 10.1.
	 
	 	13.3	 	The Grantee expressly consents to the Commonwealth, its employees and agents
making inquiries of any relevant regulatory agency within the scope of the warranties
in clause 2.1 of this deed in connection with whether or not the Grantee is complying
with those warranties or in connection with any other matter and acting in reliance
on any information resulting from those inquiries.
	 
	 	13.4	 	The Grantee must assist with any inquiry referred to in clause 13.3,
including by executing any authority or other document, as reasonably required by the
Commonwealth.

	14	 	Goods and Services Tax

	 	14.1	 	Unless otherwise indicated, all consideration for any supply under this deed is
exclusive of any GST imposed in relation to the supply.
	 
	 	14.2	 	If GST is imposed on any supply made by the Grantee to the Commonwealth
under this deed, the Commonwealth will pay the amount imposed to the Grantee in
addition to the consideration required under this deed.
	 
	 	14.3	 	If for any reason the Commonwealth pays to the Grantee an amount under
clause 14.2 which is more than the GST imposed on the supply, the Grantee must repay
the excess to the Commonwealth on demand, or the Commonwealth may set-off the excess
against any other amounts due to the Grantee.
	 
	 	14.4	 	The Commonwealth is not liable to reimburse the Grantee for any amount in
relation to which the Grantee may claim an input tax credit.

	 	 	 
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	 	14.5	 	If GST is imposed on any supply made by the Grantee to the Commonwealth
under this deed in return for all or any part of the grant, the Commonwealth may
issue a ‘recipient created tax invoice’ to the Grantee for the supply in question
and the Grantee must not issue a tax invoice for that supply.
	 
	 	14.6	 	If for any reason the Grantee or the Commonwealth ceases to be registered
for GST purposes, becomes aware of any reason why its registration may be cancelled,
or ceases to satisfy any of the requirements of public ruling GSTR 2000/10, it must
immediately notify the other party.
	 
	 	14.7	 	If the Grantee is of the opinion that it is a ‘government related entity’
and that the grant is ‘specifically covered by any appropriation under an Australian
law’ for the purposes of section 9-15(3)(c) of the A New Tax System (Goods and
Services Tax) Act 1999, the Grantee must immediately notify the Department and
provide materials supporting that opinion.

	15	 	Notices

	 	15.1	 	Any notice, request, approval, consent or other communication to be given or
served pursuant to this deed must be in writing and addressed and signed as the case
may be, as specified in item 14 of the schedule.
	 
	 	15.2	 	A notice, request, approval, consent or other communication must be
delivered by hand, sent by prepaid post, transmitted electronically or transmitted
by facsimile.
	 
	 	15.3	 	A notice, request approval, consent or other communication will be deemed
to be received:

	 	(a)	 	if delivered by hand, upon delivery;
	 
	 	(b)	 	 if sent by pre-paid ordinary post within Australia, upon the
expiration of 2 business days after the date on which it was sent; and
	 
	 	(c)	 	if transmitted electronically or by facsimile, upon
receipt by the sender of an electronic or facsimile acknowledgment that the
communication has been properly transmitted to the recipient.

	16	 	Right of Commonwealth to recover money

Debt due to the Commonwealth

	 	16.1	 	An amount notified to the Grantee as owing to the Commonwealth under any
of clauses 7.5, 9 or 10.3(c) is a debt due to the Commonwealth under this deed and
is recoverable by the Commonwealth without further proof of the debt being
necessary.

	 	 	 
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Interest

	 	16.2	 	If the Commonwealth requires interest to be paid by the Grantee
under any of clauses 7.5, 9 or 10.3(c), the amount of interest will be
calculated:

	 	(a)	 	at the rate set out in item 6 of the schedule;
	 
	 	(b)	 	on a daily compounding basis upon the amount of the grant
specified in the notice that is required to be repaid or reimbursed; and
	 
	 	(c)	 	from and including the date (or dates) of payment of the
grant to the Grantee, up to but excluding the day on which the Grantee
repays the total amount specified in the notice as owing to the
Commonwealth, without any set-off, counter-claim, condition, abatement,
deduction or withholding.

Commonwealth rights

	 	16.3	 	Where the Grantee owes a debt to the Commonwealth under this
deed, the Commonwealth may in its absolute discretion:

	 	(a)	 	require the Grantee to repay the amount of the debt,
within 28 days of receipt of notice of the debt; or
	 
	 	(b)	 	deduct the amount of the debt notified to the Grantee from
any future progress payment (including the retention amount), or any other
amount due from the Department to the Grantee.

	 	16.4	 	Nothing in this clause 16 affects the right of the Commonwealth to
recover from the Grantee, either under this deed or otherwise at law,
the whole of any debt owed by the Grantee, or any balance that
remains after deduction under clause 16.3(b).

	17	 	General

	 	17.1	 	A provision of, or a right created under, this deed may not be:

	 	(a)	 	waived except in writing signed by the party granting the
waiver; or
	 
	 	(b)	 	varied except in writing signed by the parties.

	 	17.2	 	This deed and the transactions contemplated by this deed are governed by the
law in force in the Australian Capital Territory.
	 
	 	17.3	 	Each party irrevocably and unconditionally submits to the nonexclusive
jurisdiction of the courts of the Australian Capital Territory and courts of appeal
from them for determining any dispute concerning this deed or the transactions
contemplated by this deed.
	 
	 	17.4	 	Each party waives any right it has to object to an action being brought in
those courts, including claiming that the action has been

	 	 	 
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	 	 	 	brought in an inconvenient forum or that those courts do not have jurisdiction.
	 
	 	17.5	 	Unless expressly stated otherwise in this deed, obligations under this deed terminate 5 years
after the completion date.
	 
	 	17.6	 	Unless expressly stated otherwise in this deed, any discretion conferred on the
Commonwealth, or consent or approval referred to or required under this deed from the
Commonwealth, may be exercised, given or withheld, or may be exercised or given subject to
any conditions, as the Commonwealth (in its absolute discretion) thinks fit.
	 
	 	17.7	 	The Grantee must comply with the special conditions (if any) set out in item 15 of the
schedule. If the special conditions are inconsistent with the rest of this deed, the special
conditions will prevail to the extent of the inconsistency.

	 	 	 
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