Document:

exv10w3

 

Exhibit
10.3

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made as of the day of
[Month] 2007, by and between Universal Biosensors, Inc., a Delaware corporation (the
“Corporation”), and [Executive name] (“Indemnitee”), an officer of the Corporation.

RECITALS

     A. It is essential to the Corporation to retain and attract as directors and officers of the
Corporation the most capable persons available.

     B. The substantial increase in corporate litigation subjects directors and officers to
expensive litigation risks at the same time that the availability of directors’ and officers’
liability insurance has been severely limited.

     C. Indemnitee does not regard the protection available under the Delaware Corporation Law, the
Charter or the Bylaws of the Corporation as adequate in the present circumstances, and may not be
willing to serve as a director or officer without adequate protection, and the Corporation desires
Indemnitee to serve in such capacity.

AGREEMENTS

     NOW, THEREFORE, the Corporation and Indemnitee do hereby agree as follows:

     1. Agreement to Serve. Indemnitee agrees to serve or continue to serve as a director
and/or an officer of the Corporation for so long as he is duly elected or appointed or until such
time as he tenders his or her resignation in writing.

     2. Definitions. As used in this Agreement:

          (a) The term “Proceeding” shall include any threatened, pending or completed action, suit,
investigation or proceeding, and any appeal thereof, whether brought by or in the right of the
Corporation or otherwise and whether civil, criminal, administrative or investigative, and/or any
inquiry or investigation, in which Indemnitee may be or may have been involved as a party or
otherwise, by reason of the fact that Indemnitee is or was a director or officer of the
Corporation, by reason of any action taken by him or her or of any inaction on his or her part
while acting as such a director or officer, or by reason of the fact that he is or was serving at
the request of the Corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise; in each case whether or not he is acting or
serving in any such capacity at the time any liability or expense is incurred for which
indemnification or reimbursement can be provided under this Agreement.

          (b) The term “Expenses” shall include, without limitation, expenses, costs and obligations,
paid or incurred, of investigations, judicial or administrative proceedings or appeals, amounts
paid in settlement by or on behalf of Indemnitee, attorneys’ fees and disbursements and any
expenses reasonably and actually incurred in establishing a right to indemnification under Section
8 of this Agreement including, without limitation, those incurred in investigating, defending,
being a witness in or participating in (including on appeal), or preparing to defend with respect
to any claim, issue or matter relating thereto or in connection therewith, but shall not include,
in the case of indemnification sought under Section 4, the amount of judgments, fines or penalties
against Indemnitee.

 

 

          (c) References to “other enterprise” shall include employee benefit plans; references to
“fines” shall include any excise tax assessed with respect to any employee benefit plan; references
to “serving at the request of the Corporation” shall include any service as a director, officer,
employee or agent of the Corporation or its subsidiaries which imposes duties on, or involves
services by, such director, officer, employee, or agent with respect to an employee benefit plan,
its participants or beneficiaries; and a person who acted in good faith and in a manner he
reasonably believed to be in the interests of the participants and beneficiaries of an employee
benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the
Corporation” as referred to in this Agreement.

     3. Indemnity in Third-Party Proceedings. The Corporation shall indemnify Indemnitee
in accordance with the provisions of this Section 3 if Indemnitee is a party to or threatened to be
made a party to any Proceeding (other than a Proceeding by or in the right of the Corporation to
procure a judgment in its favour) by reason of the fact that Indemnitee is or was a director or
officer of the Corporation, or is or was serving at the request of the Corporation as a director,
officer, employee, or agent of another corporation, partnership, joint venture, trust or other
enterprise, against all Expenses, judgments, fines and penalties actually and reasonably incurred
by Indemnitee in connection with the defence or settlement of such Proceeding, but only if he acted
in good faith and in a manner which he reasonably believed to be in the best interests of the
Corporation, or, in the case of a criminal action or proceeding, in addition, had no reasonable
cause to believe that his or her conduct was unlawful. The termination of any such Proceeding by
judgment, order of court, settlement, conviction, or upon a plea of nolo
contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee
did not act in good faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Corporation (or that Indemnitee did not meet any other particular
standard of conduct or have any other particular belief or that a court has determined that
indemnification is not permitted by applicable law), and with respect to any criminal proceeding,
that such person had reasonable cause to believe that his or her conduct was unlawful.

     4. Indemnitee in Proceedings by or in the Right of the Corporation. The Corporation
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is a
party to or threatened to be made a party to any Proceeding by or in the right of the Corporation
to procure a judgment in its favour by reason of the fact that Indemnitee is or was a director or
officer of the Corporation, or is or was serving at the request of the Corporation as a director,
officer, employee, or agent of another corporation, partnership, joint venture, trust or other
enterprise, against all Expenses actually and reasonably incurred by Indemnitee in connection with
the defence or settlement of such Proceeding, but only if he acted in good faith and in a manner
which he reasonably believed to be in the best interests of the Corporation, except that no
indemnification for Expenses shall be made under this Section 4, in respect of any Proceeding as to
which Indemnitee shall have been adjudged to be liable to the Corporation, unless and only to the
extent that any court in which such Proceeding was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee
is fairly and reasonably entitled to indemnity for such expenses as such court shall deem proper.
Notwithstanding the foregoing, Indemnitee shall have no right to indemnification for Expenses and
the payment of profits arising from the purchase and sale by Indemnitee of securities in violation
of Section 16(b) of the Securities Exchange Act of 1934, as amended.

     5. Indemnification Prohibited. Notwithstanding the provisions of Sections 3 and 4, no
indemnification shall be made in connection with any Proceeding charging improper personal benefit
to the Indemnitee, whether or not involving action in his or her official capacity, in which he was
adjudged liable on the basis that personal benefit was improperly received by him or her.

     6. Indemnification of Expenses of Successful Party. Notwithstanding any other
provision of this Agreement whatsoever, to the extent that Indemnitee has been successful on the
merits or otherwise (including a settlement) in defence of any Proceeding or in defence of any

 

 

claim, issue or matter therein, including dismissal without prejudice, Indemnitee shall be
indemnified against all Expenses reasonably and actually incurred in connection therewith.

     7. Advances of Expenses. Expenses incurred by the Indemnitee pursuant to Sections 3
and 4 in any Proceeding shall be paid by the Corporation in advance as soon as practicable but not
later than seven business days after receipt of the written request of the Indemnitee provided that
Indemnitee shall (i) affirm in such written request that he acted in good faith and in a manner
which he reasonably believed to be (in the case of conduct in his or her official capacity) in the
best interests of the Corporation and (ii) undertake to repay such amount to the extent that it is
ultimately determined that Indemnitee is not entitled to indemnification, and further provided that
a determination has been made that the facts then known would not preclude indemnification pursuant
to the terms of this Agreement.

     8. Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application.

          (a) Any indemnification under Sections 3 and 4 shall be made as soon as practicable but in any
event no later than 30 days after receipt by the Corporation of the written request of Indemnitee.

          (b) The right to indemnification or advances as provided for in this Agreement shall be
enforceable by Indemnitee in any court of competent jurisdiction. Indemnitee’s expenses reasonably
incurred in connection with successfully establishing Indemnitee’s right to indemnification or
advances, in whole or in part, in any such Proceeding shall also be indemnified by the Corporation.

          (c) The Corporation shall not be liable under this Agreement to make any payment in connection
with any claim made against Indemnitee to the extent Indemnitee has otherwise actually received
payment (under any insurance policy, Bylaw or otherwise) of the amounts otherwise indemnifiable.

     9. Indemnification Hereunder Not Exclusive.

          (a) Notwithstanding any other provision of this Agreement, the Corporation hereby agrees to
indemnify the Indemnitee to the full extent permitted by law, whether or not such indemnification
is specifically authorized by the other provisions of this Agreement, the Corporation’s Certificate
of Incorporation, the Bylaws, or by statute. In the event of any changes, after the date of this
Agreement, in any applicable law, statute, or rule which expand the right of a Delaware corporation
to indemnify a member of its board of directors or any officer, such changes shall be, ipso
facto, within the purview of Indemnitee’s rights, and Corporation’s obligations, under this
Agreement. In the event of any changes in any applicable law, statute, or rule which narrow the
right of a Delaware corporation to indemnify a member of its board of directors or any officer,
such changes, to the extent not otherwise required by such law, statute or rule to be applied to
this Agreement, shall have no effect on this Agreement or the parties’ rights and obligations
hereunder.

          (b) The indemnification provided by this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may be entitled under the Certificate of Incorporation, the Bylaws, any
agreement, any vote of shareholders or disinterested directors, the laws of the State of Delaware,
or otherwise, both as to action in his or her official capacity and as to action in another
capacity while holding such office.

     10. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Corporation for some or a portion of the Expenses, judgments,
fines or penalties actually and reasonably incurred by him or her in the investigation,

 

 

defence, appeal or settlement of any Proceeding but not, however, for the total amount
thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses,
judgments, fines or penalties to which Indemnitee is entitled. Moreover, notwithstanding any other
provision of this Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise in defence of any or all claims, issues or matters relating in whole or in part to an
indemnifiable event, occurrence or matter hereunder, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection with such defences.

     11. Effect of Federal Law. Both the Company and the Indemnitee acknowledge that in
certain instances, federal law will override Delaware law and prohibit the Corporation from
indemnifying its offices and directors. For example, the Corporation and Indemnitee acknowledge
that the Securities and Exchange Commission has taken the position that indemnification is not
permissible for liabilities arising under certain federal securities law, and federal law prohibits
indemnification for certain violations of the Employee Retirement Income Security Act.

     12. Liability Insurance.

          (a) The Corporation shall from time to time make the good faith determination whether or not
it is practicable for the Corporation to obtain and maintain a policy or policies of insurance with
reputable insurance companies providing the officers and directors with coverage for losses from
wrongful acts, or to ensure the Corporation’s performance of its indemnification obligations under
this Agreement. Among other considerations, the Corporation will weigh the costs of obtaining such
insurance against the protection afforded by such coverage.

          (b) Indemnitee hereby releases the Corporation and its respective authorized representatives
from any claims for indemnification hereunder if and to the extent that Indemnitee receives
proceeds from any liability insurance policy or other third-party source in payment or
reimbursement for such claims. Indemnitee hereby agrees to assign all proceeds Indemnitee receives
under any such insurance policy or third-party agreement to the extent of the amount of
indemnification made to Indemnitee under the terms of this Agreement. Finally, Indemnitee shall
cause each insurance policy or other third-party agreement by which the Indemnitee may be entitled
to payment or reimbursement to provide that the insurance company or the third-party agreement by
which the Indemnitee may be entitled to payment or reimbursement to provide that the insurance
company or the third party waives all right of recovery by way of subrogation against the
Corporation in connection with any claim for indemnification under this Agreement. If such waiver
of subrogation cannot be obtained except with the payment of additional sums in premiums or
otherwise, the Indemnitee shall notify the Corporation of this fact. The Corporation shall then
have ten (10) days after receiving such notice to agree to pay such additional sums. If a waiver
of subrogation rights is not obtainable at any price or if the Corporation shall fail to agree to
pay such additional sums, Indemnitee shall be relieved of the obligation to obtain the waiver of
subrogation rights with respect to any particular insurance policy or third-party agreement.

     13. Saving Clause. Nothing in this Agreement is intended to require or shall be
construed as requiring the Corporation to do or fail to do any act in violation of applicable law.
The provisions of this Agreement (including any provision within a single section, paragraph or
sentence) shall be severable in accordance with this Section 13. If this Agreement or any portion
thereof shall be invalidated on any ground by any court of competent jurisdiction, the Corporation
shall nevertheless indemnify Indemnitee as to Expenses, judgments, fines and penalties with respect
to any Proceeding to the full extent permitted by any applicable portion of this agreement that
shall not have been invalidated or by any other applicable law, and this Agreement shall remain
enforceable to the fullest extent permitted by law.

     14. Notice. Indemnitee shall, as a condition precedent to his or her right to be
indemnified under this Agreement, give to the Corporation notice in writing as soon as practicable
of any claim made against him or her for which indemnity will or could be sought under this

 

 

Agreement. Notice to the Corporation shall be directed to 103 Ricketts Road, Mount Waverley,
Victoria 3149, Australia Attention: Chairman (or such other address as the Corporation shall
designate in writing to Indemnitee), together with a copy thereof to PFM Legal, PO Box Q92, QVB
Post, Sydney NSW 1230, Australia. All notices, requests, demands and other communications shall be
deemed received three days after the date postmarked if (i) delivered by hand and receipted for by
the party to whom such notice or other communication shall have been directed, or (ii) sent by
prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such
information and cooperation as it may reasonably require and shall be within Indemnitee’s power.

     15. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute the original.

     16. Applicable Law. This Agreement shall be governed by and construed in accordance
with the substantive laws of the State of Delaware without giving effect to its rules of conflicts
of laws.

     17. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties and their respective successors and assigns (including
any direct or indirect successors by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Corporation), spouses, heirs, and personal
and legal representatives. The Corporation shall require and cause any successor (whether direct
or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a
substantial part, of the business and/or assets of the Corporation, by written agreement in form
and substance satisfactory to the Indemnitee, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Corporation would be required to
perform if no such succession had taken place. This Agreement shall continue in effect regardless
of whether Indemnitee continues to serve as a director and/or officer of the Corporation or of any
other enterprise at the Corporation’s request.

     18. Attorneys’ Fees. In the event of an action instituted by or in the name of the
Corporation under this Agreement to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees and
disbursements, incurred by Indemnitee in defence of such action (including with respect to
Indemnitee’s counterclaims and cross claims made in such action), unless as a part of such action
the court determines that each of Indemnitee’s material defences to such action were made in bad
faith or were frivolous..

     19. Whole Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes, as of the date of this Agreement, all prior negotiations, representations
or agreements, either written or oral, including, without limitation, any previous deeds of
indemnity with the Corporation or its subsidiaries, with respect to the subject matter hereof

     20. Subsequent Instruments and Acts. The parties hereto agree that they will execute
any further instrument and perform any acts that may become necessary from time to time to carry
out the terms of this Agreement.

     21. Limitations Period. No legal action shall be brought and no cause of action shall
be asserted by or in the right of the Corporation or any affiliate of the Corporation against
Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal representatives after the
expiration of two years from the date of accrual of such cause of action, and any claim or cause of
action of the Corporation or its affiliates shall be extinguished and deemed released unless
asserted by the timely filing of a legal action within such two-year period; provided, however,
that if any shorter period of limitations is otherwise applicable to any such cause of action such
shorter period shall govern.

 

 

     IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be duly executed and
signed as of the day and year first above written.

	 	 	 	 	 
	 	 	Universal Biosensors, Inc.
	 

	 	 	 	                     a Delaware corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Authorized Officer:

	 	 	 
	 

	 	INDEMNITEE:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	          Printed Name: [Executive name]exv10w4

 

Exhibit 10.4

			
	 	 	 
	Dated:
	 	20
	 

JANE SERGI

(“the Landlord”)

-and-

UNIVERSAL BIOSENSORS PTY LTD

[ACN 098 234 309]

(“the
Tenant”)

 

LEASE

 

	 	 	 	 	 
	 

	 	Premises:
	 	103 Ricketts Road
	 

	 	 	 	Mount Waverley, Victoria, 3149

OAKLEY THOMPSON & CO.

Solicitors & Consultants

Level 17

500 Collins Street

MELBOURNE VIC 3000

Tel: (03) 8676 0222

Fax: (03) 8676 0275

DX 30975 Stock Exchange

Ref: SC:KD:2004 0589

 

 

This document has been prepared by the Law Institute of Victoria for use by solicitors only and is nat for sale to the public.

It may require to be added to or amended to ensure its suitability for a particular transaction.

For that reason this document should only be used by a solicitor.

	 	 	 
	 

	 	
	 
	 	 
	 

	 	COPYRIGHT
	 

	 	Law
Institute of
Victoria
	 

	 	May 2000 Revision 

LEASE OF REAL ESTATE

(WITH GUARANTEE & INDEMNITY)

(Commercial Property)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	The Landlord leases the Premises to the Tenant for the Term and at the Rent and on
the conditions set out in this lease.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	The Guarantor, if any, agrees to be bound by the Guarantor’s obligations set out in
this lease.

 EXECUTED AS A DEED ON 	 	 
	 
	 	DATE:	 	 	 	 	 	 	 	 
	To be

executed 

under

seal

	 	EXECUTION & ATTESTATION:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 EXECUTED by JANE SERGI in the presence   	 	 	) 	 	 	 	 
	 

	 	of:
	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

Signature of Witness
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

Name of Witness [please print]
	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	EXECUTED by UNIVERSAL BIOSENSORS PTY LTD 

	 	)	 	 	 	 
	(ACN 098 234 309) in a manner

	 	)	 	 	 	 
	authorised by the Corporations Act with
the authority of the director(s):

	 	)
	 
 
	 	 
	 
	 	 	 	 	 	 
	/s/ Denis Hanley	 	/s/ Ian Bennett	 	 
	 	 	 	 	 
	Signature of Director/Secretary	 	Signature of Secretary	 	 
	 
	 	 	 	 	 	 
	Denis Hanley	 	Ian Bennett	 	 
	 	 	 	 	 
	Name of Director/Secretary in full	 	Name of Secretary in
full	 	 
	[Delete if not applicable]	 	[Delete if not applicable]	 	 

 

 

This
document has been prepared by the Law Institute at Victoria for use by solicitors only and is not for sale to the public.

It may require to be added to or amended to ansure its suitabilily tor a particular transaction.

For that reason this document should only be used by a solicitor.

LEASE OF REAL ESTATE

COPYRIGHT

Law Institute of Victoria

May 2000 Revision

CONDITIONS

 

 

     DEFINITIONS AND INTERPRETATION

     This lease is to be interpreted according to the following rules.

	 	1.1	 	The listed expressions have the meaning set out opposite them:

	 	 	 
	EXPRESSION	 	MEANING
	guarantor

	 	the person named in item 3
	 
	 	 
	item

	 	an item in the schedule to this lease
	 
	 	 
	landlord

	 	the person named in item 1, or any other person who will be entitied to
possession of the premises when this lease ends’
	 
	 	 
	landlord’s installations

	 	the installations listed in item 5 and those installed by the landlord after the
lease starts
	 
	 	 
	premises

	 	the land and buildings described in item 4 and the landlord’s installations
	 
	 	 
	rent

	 	the amount in item 6, or as varied in accordance with this lease
	 
	 	 
	tenant

	 	the person named in item 2, or any person to whom the lease has been transferred
	 
	 	 
	tenant’s installations

	 	the installations listed in item 7 and those installed by the tenant after the
lease starts
	 
	 	 
	term

	 	the period stated in item 8
	 
	 	 
	valuer

	 	a person holding the qualifications or experience specified under section
13DA(1A) of the Valuation of Land
Act 1960.
	 
	 	 
	Act

	 	the Retail Tenancies Reform Act 1998.

	 	1.2	 	References to laws include regulations, instruments and by-laws
and all other subordinate legislation or orders made by any authority with
jurisdiction over the premises. Illegal means contrary to a law as defined
in this sub-clause.
	 
	 	1.3	 	This lease must be interpreted so that it complies with all laws
applicable in Victoria. If any provision of this lease does not comply with
any law, then the provision must be read down so as to give it as much
effect as possible. If it is not possible to give the provision any effect
at all, then it must be severed from the rest of the lease.
	 
	 	1.4	 	The law of Victoria applies to this lease.
	 
	 	1.5	 	Any change to this lease must be in writing and signed by the parties.
	 
	 	1.6	 	An obligation imposed by this lease on or in favour of
more than one person binds or benefits all of them jointly and each
of them individually.
	 
	 	1.7	 	The use of one gender includes the others and the singular
includes the plural and vice versa.
	 
	 	1.8	 	If the landlord, tenant or guarantor is an individual, this lease
binds that person’s legal personal representative. If any of them is a
corporation, this lease binds its transferees.
	 
	 	1.9	 	This lease, including all guarantees and indemnities is delivered and operates as a
deed.

	2	 	TENANT’S OBLIGATIONS

	 	2.1	 	The tenant must:

	 	2.1.1	 	pay the rent without any deductions to the landlord on
the days and in the way stated in item 9. No demand for rent is
necessary and the landlord may direct in writing that the rent be paid
to another person.
	 
	 	2.1.2	 	pay when due the outgoings listed in item 10 for which
the tenant receives notices
directly, and reimburse within 7 days those which the landlord
requests; but:

	 	(a)	 	land tax, if it is one of the outgoings, is
to be calculated on a single holding basis, as if the landlord
were not an absentee; and
	 
	 	(b)	 	the tenant is not obliged to pay special
fees or charges for capital items levied by a body corporate.

	 	2.1.3	 	produce receipts for paid outgoings within 7 days of a request.
	 
	 	2.1.4	 	pay when due all charges for the provision of services
to the premises including gas, electricity, water and telephone.
	 
	 	2.1.5	 	pay when due the expenses of operating, maintaining and
repairing any heating or air conditioning equipment serving the
premises but excluding expenses of a capital nature.

2

 

	 	2.1.6	 	comply with the landlord’s requirements in relation to any of the
landlord’s installations or any services provided by the landlord.
	 
	 	2.1.7	 	pay or reimburse within 7 days of a request the premiums and charges for the
following insurance policies taken out by the landlord:

	 	(a)	 	damage to and destruction of the premises, for their full replacement
value, for the risks listed in item 11,
	 
	 	(b)	 	removal of debris,
	 
	 	(c)	 	breakdown of the landlord’s installations,
	 
	 	(d)	 	breakage of glass,
	 
	 	(e)	 	public-risk for the amount stated in item 12, or if nono is stated,
for $10 million, and
	 
	 	(f)	 	loss of rent and outgoings for the period stated in item 13, or if none
is stated, for 6 months, but if the Act applies, only to the extent permitted by
the Act.

	 	2.1.8	 	pay when due the costs of removal of waste and sewage.
	 
	 	2.1.9	 	pay the appropriate apportionment of the outgoings listed in item 10 and the
premiums referred to in clause 2.1.7 at the start and end of the term, and in each of
these cases the landlord must produce the relevant assessments and invoices to support the
calculation.
	 
	 	2.1.10	 	pay on demand interest at the rate stated in item 14 on any rent or other money
which the tenant has not paid within 7 days of the due date. Interest is to be
calculated daily from the due date and continues until the overdue money is paid.
	 
	 	2.1.11	 	pay on demand the landlord’s reasonable expenses of:

	 	(a)	 	compliance with the landlord’s disclosure obligations under section 8
of the Act (If applicable).
	 
	 	(b)	 	the negotiation, preparation, settling, execution and stamping of this lease.
	 
	 	(c)	 	obtaining the consent of the landlord’s mortgagee (including a
chargee or debenture holder) to this lease.
	 
	 	(d)	 	change, transfer, surrender or ending of this lease, except at
the end of the term, or where the change occurs at the landlord’s request.
	 
	 	(e)	 	the subletting of the premises.
	 
	 	(f)	 	any breach of this lease by the tenant.
	 
	 	(g)	 	the exercise or attempted exercise by the landlord of any right
or remedy against the tenant,

but, if the Act applies, only to the extent to which the Act permits recovery.

	 	2.1.12	 	pay the stamp duty on this lease, on any renewal, and any additional stamp duty after a
review of rent.
	 
	 	2.1.13	 	comply with all laws relating to the use or occupation of the premises.
	 
	 	2.2	 	
The tenant must not, and must not let anyone else:
	 
	 	2.2.1	 	use the premises except for the permitted use stated in item 15.
	 
	 	2.2.2	 	use the premises for any illegal purpose.
	 
	 	2.2.3	 	carry on any noxious or offensive activity on the premises.
	 
	 	2.2.4	 	do anything which might cause nuisance, damage or disturbance to a tenant,
occupier or owner of any adjacent property.
	 
	 	2.2.5	 	conduct an auction or public meeting on the premises.
	 
	 	2.2.6	 	use radio, television or other sound-producing equipment at a volume that can be
heard outside the premises.
	 
	 	2.2.7	 	do anything which might affect any insurance policy relating to the premises by
causing: .
	 
	 	 	 	—       it to become void or voidable or;
	 
	 	 	 	—       any claim on it being rejected or;
	 
	 	 	 	—       a premium to be increased.
	 
	 	2.2.8	 	keep or use chemicals, inflammable fluids, acids, or other hazardous things on the
premises except for the permitted use, or create fire hazards.
	 
	 	2.2.9	 	place any sign on the exterior of the premises without the landlord’s written consent.
	 
	 	2.2.10	 	make any alteration or addition to the premises without the landlord’s written
consent. Consent is entirely in the landlord’s discretion.

3

 

	 	2.2.11	 	install any fixtures or fittings, except those necessary for the
permitted use, without the landlord’s written consent.
	 
	 	2.2.12	 	bring onto the premises any object which by its nature or weight might cause
damage to the premises, without the landlord’s written consent.
	 
	 	2.2.13	 	except in an emergency, interfere with any of the services or equipment in
the premises or in any property of which the premises form part.

	 	2.3	 	The tenant must:

	 	2.3.1	 	take out and keep current an insurance cover in the names of the
landlord and the tenant for public risk for the amount stated in item 12, or if none
is stated, for $10 million, or other sum reasonably specified from time to time by
the landlord, with an extension which includes the indemnities given by the tenant
to the landlord in this lease.
	 
	 	2.3.2	 	maintain the insurance cover with an insurer approved by the
landlord, but the landlord must not withhold approval unreasonably.
	 
	 	2.3.3	 	ensure that each insurance policy requires the insurer to give 21 days
written notice of cancellation to the landlord before cancelling or refusing to
renew the policy.
	 
	 	2.3.4	 	produce satisfactory evidence of insurance cover on written request by the
landlord.

	3	 	REPAIRS AND MAINTENANCE

	 	3.1	 	In this clause, if this lease is a renewal under an option in an earlier lease
(whether or not the renewal is, or an earlier renewal was, on terms substantially
different to those of the option), “start of the lease” means the starting date of the
first lease to contain an option for renewal.
	 
	 	3.2	 	Except for fair wear and tear and subject to clause 3.4, the tenant must keep the
premises in the same condition as at the start of the lease and properly cleaned,
repaired and maintained. The tenant must also comply with all notices or orders affecting
the premises which are issued during the term.
	 
	 	3.3	 	In addition to its obligations under clause 3.2, the tenant must:

	 	3.3.1	 	refinish all finished surfaces and renew all office carpets in a
workmanlike manner with as good quality materials as previously at least once every
5 years during the term and any other term.
	 
	 	3.3.2	 	keep the premises free from rubbish, keep waste in proper containers and
have it removed regularly.
	 
	 	3.3.3	 	immediately replace glass which becomes cracked or broken with glass of
the same thickness and quality.
	 
	 	3.3.4	 	immediately repair defective windows, lights, doors, locks and
fastenings, and replace missing light-globes and fluorescent tubes, keys and
keycards.
	 
	 	3.3.5	 	maintain in working order all plumbing, drainage, gas, electric, solar
and sewerage installations and fire protection apparatus.
	 
	 	3.3.6	 	promptly give written notice to the landlord or the landlord’s agent of:

	 	(a)	 	damage to the premises or of any defect in the
structure of or any of the services to the premises
	 
	 	(b)	 	service by any authority of a notice or order affecting the premises
	 
	 	(c)	 	any hazards threatening or affecting the premises
	 
	 	(d)	 	any hazards arising from the premises for which the landlord might be liable.

	 	3.3.7	 	immediately make good damage caused to adjacent property by the tenant
or its employees, agents, contractors, customers or visitors.
	 
	 	3.3.8	 	permit the landlord, its agents or workmen to enter the premises during
normal business hours, after giving reasonable notice except in cases of emergency:

	 	(a)	 	to inspect the premises,
	 
	 	(b)	 	to carry out repairs or agreed alterations, and
	 
	 	(c)	 	to do anything necessary to comply with notices or orders of any authority,
bringing any necessary equipment.

	 	3.3.9	 	carry out repairs within 14 days of being served with a written notice
of any defect or lack of repair which the tenant is obliged to make good under this
lease. If the tenant does not comply with the notice, the landlord may carry out
the repairs and the tenant must repay the cost to the landlord on demand.

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	 	3.3.10	 	only use persons approved by the landlord to repair and maintain the premises
	 
	 	3.3.11	 	take all precautions required by law against fire, but not if this requires
structural alterations or installation of equipment unless they are required by the nature of
the tenant’s use of the premises.
	 
	 	3.3.12	 	comply with all reasonable directions of the landlord or the insurer of the
premises as to the prevention, detection and limitation of fire.
	 
	 	3.3.13	 	on vacating the premises, remove all signs and make good any damage caused by
the removal.
	 
	 	3.3.14	 	take reasonable precautions to secure the premises and their contents from theft,
keep all doors and windows locked when the premises are not in use, and comply with
the landlord’s directions for the use and return of keys or keycards.
	 
	 	3.3.15	 	permit the landlord or its agent access to the premises at reasonable times
by appointment to show the premises:

	 	(a)	 	to prospective purchasers at any time during the term; and
	 
	 	(b)	 	to prospective tenants within 3 months before the end of the term,
and to affix “for sale” or “to let” signs in a way that does not unduly interfere
with the permitted use.

	 	3.3.16	 	refund on demand all increases in insurance premiums paid by the landlord as the
result of the tenant’s use of the premises.
	 
	 	3.3.17	 	carry on its business efficiently and keep the premises open during the business
hours which are normal for the permitted use.
	 
	 	3.3.18	 	maintain the grounds and gardens of the premises in good condition, tidy, free
from weeds and well watered.

	 	3.4	 	The tenant is not obliged:

	 	3.4.1	 	to repair damage against which the landlord must insure under clause
6.2 unless the landlord loses the benefit of the insurance because of acts or
omissions by the tenant or the tenant’s employees, agents, contractors, customers
or visitors.
	 
	 	3.4.2	 	to carry out structural repairs or make payments of a capital nature
unless the need for them results from:

	 	(a)	 	negligence by the tenant or the tenant’s employees,
agents, contractors, customers or visitors; or
	 
	 	(b)	 	failure by the tenant to perform its obligations under this lease; or
	 
	 	(c)	 	the tenant’s use of the premises.

	4	 	LEASE TRANSFERS AND SUBLETTING

	 	4.1	 	The tenant must not transfer this lease or sublet the premises without the
landlord’s written consent, and section 144 of the Property Law Act 1958 and clause 9.1
do not apply.

	 	4.2	 	The landlord:

	 	4.2.1	 	subject to sub-clause 4.2.2, must not unreasonably withhold consent to
a transfer of this lease or a sublease of the premises if the tenant has complied
with the requirements of clause 4.3.
	 
	 	4.2.2	 	may withhold consent at the landlord’s discretion if the Act does not
apply, and a transfer of this lease would result in the Act applying, or applying
if this lease is renewed for a further term.

	 	4.3	 	To obtain the landlord’s consent to a transfer or sublease the tenant must -

	 	4.3.1	 	ask the landlord in writing to consent to the transfer or sublease,
	 
	 	4.3.2	 	give the landlord

	 	(a)	 	in relation to each proposed new tenant or sub-tenant -
	 
	 	 	 	—       its name and address
	 
	 	 	 	—       two written references as to its financial circumstances
	 
	 	 	 	—       two written references as to its business experience
	 
	 	(b)	 	a copy of the proposed document of transfer or sublease.

	 	4.3.3	 	If the Act applies and -

	 	(a)	 	the tenant has complied with this clause 4.3, and
	 
	 	(b)	 	the landlord fails to respond by giving or withholding consent within 21
days, then the landlord is to be taken as having consented.

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	 	4.3.4	 	If the Act does not apply, the landlord may request any
additional information reasonably required to enable it to make a decision.

	 	4.4	 	If the landlord consents to the transfer or sublease, the landlord, tenant and new
tenant or sub-tenant and the guarantor must execute the documents submitted under
sub-clause 4.3.2(b). The new tenant or sub-tenant and the directors of them if they are
corporations must execute a deed binding each of them to carry out the obligations of the
tenant under this lease and a guarantee and indemnity in the form of clause 15.
	 
	 	4.5	 	The tenant must pay the landlord’s reasonable expenses incurred in connection with an
application for consent or the granting of consent and the completion of the documents, as
well as the stamp duty on the documents.
	 
	 	4.6	 	The tenant must not give up possession or share occupancy of the premises or
grant a licence to anyone else without the landlord’s written consent, which may be
given or withheld in the landlord’s discretion.
	 
	 	4.7	 	The obligations to the landlord of every tenant who has transferred this lease
continue until this lease ends. They do not continue into any period of overholding after
this lease ends, nor into any renewed term: at those times they are the responsibility
only of the tenant in possession. This clause does not prevent the landlord from enforcing
rights which arise before this lease ends.

	5	 	GENERAL AGREEMENTS BETWEEN LANDLORD AND TENANT

	 	5.1	 	When the term ends, the tenant must -

	 	5.1.1	 	return possession of the premises to the landlord in clean and repaired
condition as required by this lease, and
	 
	 	5.1.2	 	remove the tenant’s installations and other property from the premises
and make good any damage caused in removing it.

	 	 	 	If the tenant leaves any of its installations or other property on the premises after the
end of the lease, unless the landlord and tenant agree otherwise, that property will be
considered abandoned and will become the property of the landlord.
	 
	 	5.2	 	The tenant indemnifies the landlord against any claim resulting from any act or
failure to act by the tenant or its employees, agents, contractors, customers or visitors
while using the premises.
	 
	 	5.3	 	The tenant —

	 	5.3.1	 	uses and occupies the premises at its own risk; and
	 
	 	5.3.2	 	releases the landlord from and indemnifies the landlord against all
claims resulting from accidents occurring on the premises except in those cases
where the accident is caused by the landlord or a person for whom the landlord is
responsible.

	6	 	LANDLORD’S OBLIGATIONS

	 	6.1	 	The landlord must give the tenant quiet possession of the premises without any
interruption by the landlord or anyone connected with the landlord as long as the tenant
does what it must under this lease.
	 
	 	6.2	 	The landlord must take out policies of insurance against the risks listed in item
11 at the
start of the term and must keep them current as long as the tenant pays or reimburses the
premiums and charges for those covered by the tenant’s obligations in sub-clause 2.1.7.
	 
	 	6.3	 	The landlord must, subject to clause 2.1.11(c), obtain the written consent to this
lease of all mortgagees or debenture holders whose interests would otherwise have
priority over this lease.

	7	 	EVENTS OF DEFAULT AND LANDLORD’S RIGHTS

	 	7.1	 	The landlord may re-enter the premises and end this lease if -

	 	7.1.1	 	the tenant does not pay the rent for 14 days — no demand is necessary; or
	 
	 	7.1.2	 	the tenant does not meet its obligations under this lease; or
	 
	 	7.1.3	 	the tenant—

	 	(a)	 	becomes bankrupt, or
	 
	 	(b)	 	takes or tries to take advantage of Part X of the Bankruptcy Act, or
	 
	 	(c)	 	makes an assignment for the benefit of its creditors, or
	 
	 	(d)	 	enters into a composition or arrangement with its creditors, or

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	 	(e)	 	is unable to pay its debts when they fall due; or

	 	7.1.4	 	the tenant is a corporation and -

	 	(a)	 	an order is made or a resolution is passed to
wind it up except for reconstruction or amalgamation, or
	 
	 	(b)	 	goes into liquidation, or
	 
	 	(c)	 	is placed under official management, or
	 
	 	(d)	 	has a receiver, including a provisional receiver, or receiver
and manager of any of its assets or an administrator appointed, or
	 
	 	(e)	 	has an inspector appointed under the Australian
Securities and Investments Commission Act, or
	 
	 	(f)	 	without the landlord’s written consent, there is a
different person in effective control of the tenant as a result of
changes in -

	 	(i)	 	membership of the company or its holding company;
	 
	 	(ii)	 	beneficial ownership of the shares in
the company or its holding company;
	 
	 	(iii)	 	beneficial ownership of the business or assets of the company,
	 	but this paragraph does not apply if the tenant is a public company listed on an
Australian stock exchange, or a subsidiary of one; or

	 	7.1.5	 	a warrant issued by a court to satisfy a judgment is not satisfied
within 30 days of being issued; or
	 
	 	7.1.6	 	the tenant, without the landlord’s written consent -

	 	(a)	 	discontinues its business on the premises, or
	 
	 	(b)	 	leaves the premises unoccupied for 7 days.

	 	7.2	 	Re-entry by the landlord ends this lease, but the landlord retains the right to sue
the tenant for unpaid money or for damages for breaches of its obligations under this
lease.
	 
	 	7.3	 	For the purpose of section 146(1) of the Property Law Act 1958, 14 days is
fixed as the period within which the tenant must remedy a breach capable of remedy
and make reasonable compensation in money.
	 
	 	7.4	 	Breach by the tenant of any of the following clauses of this lease is a breach of an
essential term: 2.1.1, 2.1.2, 2.1.7, 2.1.12, 2.2.1, 2.2.2, 2.3, 3.2, 3.3.6, 3.3.8, 3.3.9,
3.3.12, 3.3.16, 3.3.17, 4.1, 4.6 and 13.1 and any additional provision set out in item
22.
	 
	 	7.5	 	Even though the landlord does not exercise its rights under this lease on one
occasion, it may do so on any later occasion.

	8	 	DESTRUCTION OR DAMAGE

	 	8.1	 	If the premises are damaged so that they cannot be used for the permitted use —

	 	8.1.1	 	a fair portion of the rent and outgoings is to be suspended until the
premises are again wholly fit for the permitted use,
	 
	 	8.1.2	 	the suspended portion of the rent and outgoings must be proportional to
the nature and extent of the damage.

	 	8.2	 	If the premises are partly destroyed, but not substantially destroyed, the
landlord must reinstate the premises as soon as reasonably practicable.
	 
	 	8.3	 	If the premises are wholly or substantially destroyed —

	 	8.3.1	 	the landlord is not obliged to reinstate the premises and
	 
	 	8.3.2	 	if the reinstatement does not start within 3 months, or is not
complete within 6 months, the landlord or the tenant may end this lease by giving
the other written notice.

	 	8.4	 	The tenant will not be entitled to suspension of rent or outgoings under sub-clause
8.1.1 nor to end the lease under sub-clause 8.3.2 if payment of an insurance claim is
property refused in respect of the damage or destruction because of any act or omission
by the tenant, or its employees, agents, contractors, customers or visitors, and the
landlord will not be obliged to reinstate the premises under clause 8.2.
	 
	 	8.5	 	If the Act does not apply and there is a dispute under this clause, either party
may request the senior office-bearer of the Australian Property Institute — Victorian
Division to nominate a practising valuer member of that Institute to determine the
dispute as an expert or the parties may refer the dispute to mediation under clause 16.

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	9	 	CONSENTS AND WARRANTIES BY THE PARTIES

	 	9.1	 	The landlord must not unreasonably withhold its consent to any act by
the tenant which needs consent unless any other clause provides otherwise, but -

	 	9.1.1	 	the landlord may impose reasonable conditions before consenting and
	 
	 	9.1.2	 	the tenant must reimburse the landlord’s reasonable
expenses resulting from an application for its consent, including fees paid
to consultants.

	 	9.2	 	This lease, together with the attached disclosure statement if there
is one, contains the whole agreement of the parties. Neither party is entitled
to rely on any warranty or statement in relation to
	 
	 	 	 	—       the conditions on which this lease has been agreed,
	 
	 	 	 	—       the provisions of this lease or
	 
	 	 	 	—       the premises

	 
	 	 	 	 which is not contained in those documents.

	10	 	OVERHOLDING AND ABANDONMENT OF THE PREMISES

	 	10.1	 	If the tenant remains in possession of the premises without objection by the landlord
after the end of the term :

	 	10.1.1	 	the tenant, without any need for written notice of any kind, is a
monthly tenant on the conditions in this lease, modified so as to apply to
a monthly tenancy;
	 
	 	10.1.2	 	either party may end the tenancy by giving one month’s written notice to the
other at anytime;
	 
	 	10.1.3	 	the monthly rent starts at one twelfth of the annual rent which the tenant
was paying immediately before the term ended unless a different rent has been
agreed; and
	 
	 	10.1.4	 	the landlord may increase the monthly rent by giving the tenant one month’s
written notice.

	 	10.2	 	If the tenant vacates the premises during the term, whether or not it ceases to pay rent:

	 	10.2.1	 	the landlord may:

	 	(a)	 	accept the keys,
	 
	 	(b)	 	enter the premises to inspect, maintain or repair them, or
	 
	 	(c)	 	show the premises to prospective tenants or purchasers,

	 	 	 	without this being re-entry or waiver of the landlord’s rights to recover rent
or other money under this lease.
	 
	 	10.2.2	 	this lease continues until a new tenant takes possession of the premises,
unless the landlord:

	 	(a)	 	accepts a surrender of the lease, or
	 
	 	(b)	 	notifies the tenant in writing that a breach by
the tenant is being treated as a repudiation of the lease, or
	 
	 	(c)	 	ends the lease by re-entry.

	11	 	RENT REVIEWS TO MARKET

	 	11.1	 	In this clause “review period” means the period following each review
date listed in item 16 until the next review date or until the end of this lease.
	 
	 	 	 	The review procedure on each review date is -

	 	11.1.1	 	Each review of rent may be initiated by either party unless item 17 states
otherwise but. if the Act applies and requires that the review be compulsory
and not optional, the review is compulsory.
	 
	 	11.1.2	 	A party may initiate a review by giving the other party a written notice
stating the market rent which it proposes for the review period. If the party
receiving the notice does not object in writing to the proposed market rent
within 14 days, it becomes the rent for the review period.
	 
	 	11.1.3	 	If:

	 	•	 	the party receiving the notice serves an
objection to the proposed market rent within 14 days; and
	 
	 	•	 	the parties do not agree on the market rent
within 14 days after the objection is served

	 	 	 	the parties must appoint a valuer to determine the market rent.

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	 	 	 	If the parties do not agree on the name of the valuer within 28 days after the
objection is served, the valuer must be nominated by the senior office-bearer of
the Australian Property Institute — Victorian Division, at the request of either
party.
	 
	 	11.1.4	 	In determining the current market rent for the premises the valuer must:

	 	(a)	 	consider any written submissions made by the
parties within 21 days of their being informed of the valuer’s
appointment
	 
	 	(b)	 	determine the market rent as an expert
and, unless the Act applies:
	 
	 	(c)	 	assume that the premises are available to be leased on
the same conditions as those contained in this lease including any options
for renewal, but with a tenant in possession
	 
	 	(d)	 	take into account the conditions of this lease including the permitted use
	 
	 	(e)	 	assume that the tenant has met all its obligations under this lease
	 
	 	(f)	 	ignore the tenant’s installations and all improvements
made by the tenant to the premises without obligation to do so
	 
	 	(g)	 	ignore the goodwill of the tenant’s business and
	 
	 	(h)	 	take into account current market rents for comparable premises in the
locality.

	 	11.1.5	 	The valuer must determine a market rent at least equal to the current rent
before the review.
	 
	 	11.1.6	 	Sub-clause 11.1.5 does not apply if the Act applies.
	 
	 	11.1.7	 	The valuer must make the determination of the 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 me 21 days allowed for submissions by the parties.
	 
	 	11.1.8	 	If—

	 	(a)	 	no determination has been made within 42 days of the parties
	 
	 	 	 	—       appointing the valuer, or
	 
	 	 	 	—       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 qualified as
stated in sub-clause then 11.1.3, or seek a replacement from the body named in
sub-clause 11.1.3.

	 	11.2	 	The valuer’s determination binds both parties.
	 
	 	11.3	 	The landlord and tenant 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.
	 
	 	11.4	 	Until the determination is made by the valuer, the tenant must continue to pay
the same rent as before the review date. Within 7 days of being informed of the
valuer’s determination, the
parties must make any necessary adjustments.
	 
	 	11.5	 	Unless the Act applies, no rent review may take place unless started within 12
months after any review date, but otherwise a delay in making a rent review does not
prevent the review from taking place ana being effective from the review date.

12 FURTHER TERM(S)

	 	12.1	 	The landlord must renew this lease for the further term or terms stated in item 18 if -

	 	12.1.1	 	there is no unremedied breach of this lease by the tenant of which the landlord
has given the tenant written notice and
	 
	 	12.1.2	 	the tenant has not persistently committed breaches of this lease of which
the landlord has given notice during the term and
	 
	 	12.1.3	 	the tenant has requested the renewal in writing not more than 6 months nor less
than 3 months before the end of the term. The latest date for exercising the
option is stated in item 19.

	 	12.2	 	The renewed lease

	 	—	 	starts on the date after this lease ends,
	 
	 	—	 	has a starting rent determined in accordance with clause 11,
	 
	 	—	 	must contain the same terms as this lease but with no
option for renewal after the last option fir a further term stated in item
18 has been exercised.

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	 	12.3	 	If the tenant is a corporation and was required to provide directors’ guarantees for this
lease, the tenant must obtain guarantees of its obligations under the renewed lease
from its directors in the form of clause 15.

13 SECURITY DEPOSIT

	 	13.1	 	The tenant must pay a security deposit to the landlord of the amount
stated in item 20 and must maintain the deposit at that amount.
	 
	 	13.2	 	The landlord may use the deposit to make good the cost of remedying
breaches of the tenant’s obligations under this lease and the tenant must pay
whatever further amount is required to bring the deposit back to the required level.
	 
	 	13.3	 	After this lease has ended and the tenant has vacated the premises,
the landlord must refund the unused part of the deposit within 2 months.

14 NOTICES

	 	14.1	 	A notice given under this lease may be given:
	 
	 	 	 	—       by post
	 
	 	 	 	—      by facsimile
	 
	 	 	 	—      by delivery
to the party’s:
	 
	 	 	 	—      last known address
	 
	 	 	 	—      registered office, or
	 
	 	 	 	—      if to the tenant, at the premises.

	 	14.2	 	Posted notices will be taken to have been received 72 hours after posting
unless proved otherwise.
	 
	 	14.3	 	Notices delivered or sent by facsimile after 5.00 p.m. will be taken to
have been received at 9.00 a.m. on the next business day at the place where it is
received.

15 OBLIGATIONS OF GUARANTOR(S) UNDER GUARANTEE AND INDEMNITY

	 	15.1	 	The guarantor in consideration of the landlord having entered into
this lease at the guarantor’s request —

	 	15.1.1	 	guarantees that the tenant will perform all its obligations under this lease
for the term and any renewed term or terms and during any period of overholding
after the end of the term and
	 
	 	15.1.2	 	must pay on demand any amount which the landlord is entitled to recover from
the tenant under this lease and
	 
	 	15.1.3	 	indemnifies the landlord against all loss resulting from the landlord’s
having entered into this tease whether from the tenant’s failure to perform its
obligations under it or from this lease being or becoming unenforceable against
the tenant.

	 	15.2	 	The liability of the guarantor will not be affected by —

	 	15.2.1	 	the landlord granting the tenant or a guarantor time or any other indulgence,
or agreeing not to sue the tenant or another guarantor, or
	 
	 	15.2.2	 	failure by any guarantor to sign this document, or
	 
	 	15.2.3	 	transfer or variation of this lease, but if this lease is transferred the
guarantor’s obligations, other than those which have already arisen, end when
the term ends and do not continue into a term renewed by a new tenant nor a
period of overholding.
	 
	 	15.2.4	 	the fact that this lease cannot be registered at the Land Titles
Office.

	 	15.3	 	The guarantor agrees that —

	 	15.3.1	 	the landlord may retain all money received including dividends from the
tenant’s bankrupt estate, and need allow the guarantor a reduction in its
liability under this guarantee only to the extent of the amount received and
	 
	 	15.3.2	 	the guarantor must not seek to recover money from the tenant to reimburse
the guarantor for payments made to the landlord until the landlord has been
paid in full and
	 
	 	15.3.3	 	the guarantor must not prove in the bankruptcy or winding up of the tenant
for any amount which the landlord has demanded from the guarantor and

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	 	15.3.4	 	the guarantor must pay the landlord all money which the landlord
refunds to the tenant’s liquidator or trustee in bankruptcy as preferential
payments received from
the tenant.

	 	15.4	 	If any of the tenant’s obligations are unenforceable against the tenant, then this
clause is to operate as a separate indemnity and the guarantor indemnifies the landlord
against all loss resulting from the landlord’s inability to enforce performance of those
obligations. The guarantor must pay the landlord the amount of the loss resulting from
the unenforceability.
	 
	 	15.5	 	If there is more than one guarantor, this guarantee binds them jointly and
each of them individually.

16 DISPUTE RESOLUTION

	 	16.1	 	Unless the Act applies, if the words “The mediation procedure applies to this
lease” are included in item 21, the mediation procedure applies to this lease. In that
event the parties must attempt to resolve any dispute by the mediation procedure, except
disputes about:

	 	16.1.1	 	unpaid rant and interest charged on it
	 
	 	16.1.2	 	review of rent
	 
	 	16.1.3	 	a dispute to be resolved in another way prescribed by any other
provision of this lease.

	 	16.2	 	The mediation procedure is:

	 	16.2.1	 	a party may start mediation by serving a mediation notice on the other party.
	 
	 	16.2.2	 	the notice must state that a dispute has arisen and identify what the dispute is.
	 
	 	16.2.3	 	the parties must jointly request appointment of a mediator. If the parties fail to
agree on the appointment within 7 days of service of the mediation notice, either
party may apply to the President of the Law Institute of Victoria or the nominee of
the President to appoint a mediator.
	 
	 	16.2.4	 	once the mediator has accepted the appointment the parties must comply with the
mediator’s instructions.
	 
	 	16.2.5	 	if the dispute is not resolved within 30 days of the appointment of the mediator,
or any other period agreed by the parties in writing, the mediation ceases,

	 	16.3	 	The mediator may fix the charges for the mediation which must be paid
equally by the parties.
	 
	 	16.4	 	If the dispute is settled, all parties must sign the terms of agreement and these
terms are binding on the parties.
	 
	 	16.5	 	The mediation is confidential and -

	 	16.5.1	 	statements made by the mediator or the parties, and
	 
	 	16.5.2	 	discussions between the participants to the mediation, before after or during the
mediation, cannot be used in any legal proceedings.

	 	16.6	 	It must be a term of the engagement of the mediator that the parties release
the mediator from any court proceedings relating to the lease or the mediation.
	 
	 	16.7	 	The mediator is not bound by the rules of natural justice and may discuss the
dispute with a party in the absence of any other party.
	 
	 	16.8	 	If the Act applies, so that a dispute must be referred to the Victorian Civil and
Administrative Tribunal, the parties agree that each may be represented by a legal
practitioner or legal practitioners of its choice.

17 GST

	 	17.1	 	“GST” means GST within the meaning of the GST Act.
	 
	 	 	 	“GST Act” means A New Tax System (Goods and Services Tax) Act 1999 (as amended).
Expressions used in this clause 17 and in the GST Act have the same meanings as when
used in the GST Act
	 
	 	17.2	 	Except where this lease states otherwise, each amount payable by a party under
this lease in respect of a taxable supply by the other party is expressed as a GST
exclusive amount and the recipient of the supply must, in addition to that amount and at
the same time, pay to the supplier the GST payable in respect of the supply.

11

 

	 	17.3	 	An amount payable by the tenant in respect of a creditable acquisition by the
landlord from a third party must not exceed the sum of the value of the landlord’s
acquisition and the additional amount payable by the tenant under clause 17.2 on account
of the landlord’s GST liability.
	 
	 	17.4	 	A party is not obliged, under clause 17.2, to pay the GST on a taxable supply
to it under this Lease, until given a valid tax invoice for the supply.
	 
	 	17.5	 	An adjustment of the consideration payable under this lease to take account of the
New Tax System changes referred to in the Trade Practices Act 1974 must not constitute
price exploitation within the meaning of that Act or breach the guidelines in force from
time to time published by the Australian Competition and Consumer Commission under Part VB
of that Act.

18 CONSUMER PRICE INDEX

	 	18.1	 	“Consumer Price Index” means the index published by the Australian
Government Statistician under the heading “All Groups” for Melbourne.
	 
	 	 	 	“Rent adjustment date” means the first day of a year specified in item 16 as a year whose
rent will be fixed by reference to the Consumer Price Index. 

“Review date” means a date
specified in item 16.
	 
	 	18.2	 	An adjustment of rent by reference to the Consumer Price Index is made using
the following formula:

	 	 	 	 	 	 	 
	 

	 	AR = R x
	 	CPIB
	 	 
	 

	 	 	 	 

CPIA
	 	  

	 	where: 	 	 AR means adjusted rent;
	 
	 	 	 	R means rent before adjustment;
	 
	 	 	 	CPIB means the Consumer Price Index index figure for the quarter preceding the
relevant rent adjustment date; and
	 
	 	 	 	CPIA means the  Consumer Price Index index figure for the quarter
preceding the
most recent previous rent adjustment date or review date or, where there is no
previous rent adjustment date or review date, the quarter preceding the start of
the
term.

	 	18.3	 	If CPIB is not published until after the rent adjustment date, the adjustment is
made when it is published but the adjustment takes effect from the relevant rent
adjustment date. In the meantime, the tenant must continue to pay the rent at the old
rate and, when the adjustment is made, the tenant must immediately pay the shortfall or
the landlord must immediately repay the excess, as the case may be.
	 
	 	18.4	 	If the base of the Consumer Price Index is changed between the two comparison dates
an
appropriate compensating adjustment must be made so that a common base is used.
	 
	 	18.5	 	If the Consumer Price Index is discontinued or suspended then the calculation is to
be made using whatever index is substituted for it. If no other index is substituted for
it, the calculation is to be made using the index or calculation which the senior
office-bearer of the Australian Property Institute — Victorian Division (acting as an
expert and not as an arbitrator) decides is appropriate in the circumstances. This
decision is binding.
	 
	 	18.6	 	Unless the Act applies, the adjustment is not made if it would result in a decrease
in the rent payable.

	19	 	ADDITIONAL PROVISIONS
	 
	 	 	Any additional provisions set out in item 22 -

	 	19.1	 	bind the parties and
	 
	 	19.2	 	if inconsistent with another provisions of this lease, override them.

• • • • •

12

 

SCHEDULE.

	 	 	 	 	 
	Item 1

[1.1]

	 	Landlord
	 	Jane Sergi 

of 8 Annesley Court

Mount Waverly, Victoria, 3149.
	 
	 	 	 	 
	Item 2

[l.l]

	 	Tenant
	 	Universal Biosensors Pty Ltd (ACN 098 234 309) 

103 Ricketts Road 

Mount Waverley, Victoria, 3149
	 
	 	 	 	 
	Item 3

[1.1]

	 	Guarantor
	 	Bank guarantee equivalent to two (2) months’ rental.
	 
	 	 	 	 
	Item 4

[1.1]

	 	Premises

Land
	 	103 Ricketts Road, Mount Waverley, Victoria, 3149.
	 
	 	 	 	 
	Item 5 

[l.l]

	 	Landlord’s Installations
	 	See Annexure A
	 
	 	 	 	 
	Item 6

[l.l]

	 	Rent
	 	$174,353.95 per annum, exclusive of Goods and Services
Tax.
	 
	 	 	 	 
	Item 7

[l.l]

	 	Tenant’s Installations
	 	Not applicable.
	 
	 	 	 	 
	Item 8

[l.l]

	 	Term of the lease
	 	One (1) term of two (2) years and nine (9) months starting
on 7 December 2004.
	 
	 	 	 	 
	Item 9 

[2.1.1]

	 	How Rent is to be paid
	 	Monthly in advance to the Landlord commencing on 7
December 2004.
	 
	 	 	 	 
	Item 10 

[2.1.2]

	 	Outgoings which the

Tenant must pay or

reimburse
	 	If there are any building operating expenses, building rate
expenses or premises rate expenses the Landlord may pre-
estimate them for any period of up to a year, and collect an
equal part of them each month during the period on the
same day as rent is due, and collect any shortfall from (or
credit any excess to) the Tenant at the end of each
financial
year. For the first year of the lease, the monthly payment
on account of such expenses is as follows (save and except
for Land Tax which will be paid at the rate provided
below):

	 	 	 	 	 
	City of Monash Council Rates:
	 	$	4,333.50	 
	Land Tax (Single Holding Basis:
	 	$	4,000.00	 
	Water Rates:
	 	$	917.00	 
	Insurance:
	 	$	1.174.40	 
	 
	 	 	 
	 
	 	$	10,424.90	 
	 
	 	 	 	 
	being monthly payments of:
	 	$	868.74	 

	 	 	 	Air Conditioning Service Contract and FBS
fire servicing shall be paid directly by the
tenant.

 

 

	 	 	 	 	 
	 

	 	Tenant’s
proportion of
Building Outgoings
	 	100%
	 
	 	 	 	 
	Item 11

[2.1.7]

	 	Risks which the

insurance policies

must cover
	 	Fire, Flood, Lighting, Storm and Tempest, Explosion, Riots and Civil
Commotion, Strikes, Malicious damage, Earthquake, Impact by
Vehicles, Impact by Aircraft and articles dropped from them, Internal
Flood Water and such other risks as the Landlord reasonably specifies
from time to time.
	 
	 	 	 	 
	Item 12

 [2.1.7
& 2.3]

	 	Amount of public
risk insurance cover
	 	$10,000,000.00.
	 
	 	 	 	 
	Item 13

[2.1.7]

	 	Period of loss of
rent and outgoings
insurance
	 	Not applicable.
	 
	 	 	 	 
	Item 14

[2.1.10]

	 	Interest rate on

overdue money
	 	The rate fixed from time to time pursuant to the Penalty Interest Rates
Act 1983 .
	 
	 	 	 	 
	Item 15

[2.2.1]

	 	Permitted use
	 	Office and factory.
	 
	 	 	 	 
	Item 16

[2.-2.1,11,18]

	 	Review date(s)
	 	Annually — adjusted by way of four percent (4%) increase as follows:
	 
	 	 	 	 
	 

	 	 	 	Year 2:       $181,328.10 (exclusive of GST) per annum
	 
	 	 	 	 
	 

	 	 	 	Year 3:       $188,581.25 (exclusive of GST) per annum
	 
	 	 	 	 
	Item 17

[2.1.1,11,18]

	 	Who may initiate

reviews
	 	Not applicable.
	 
	 	 	 	 
	Item 18

 [12]

	 	Further term(s)
	 	None.
	 
	 	 	 	 
	Item 19

[12]

	 	Latest date for

exercising option
	 	Not applicable.
	 
	 	 	 	 
	Item 20

 [13]

	 	Security deposit
	 	Deposit equal to one (1) months rental. The deposit will be applied by
the Landlord to the first month’s rental.
	 
	 	 	 	 
	Item 21

 [16.1]

	 	The mediation
procedure applies to
this lease	 	 
	 
	 	 	 	 
	Item 22

 [19]

	 	Additional provisions
	 	22. 1 The Landlord agrees to paint and repair where required the
facade of the building.
	  
	 	 	 	 
	 

	 	 	 	22.2 The Landlord agrees to repair rising damp where required in the
reception area and toilet area.

	 
	 	 	 	 
	 

	 	 	 	Right of First Refusal
	 
	 	 	 	 
	 

	 	 	 	22.3 In consideration of the entry into this Lease and if the Tenant
is not in default under it, the Landlord grants to the Tenant the right
of first refusal to purchase the property should the Landlord decide to
sell it during

 

 

	 	 	the term of this Lease or any extension thereof.
	 
	22.4	 	If the Landlord decides to sell the property he may only do so on the following terms:
	 
	(a)	 	The Landlord shall extend an offer of sale to the Tenant.
	 
	(b)	 	The Tenant shall have fourteen (14) days to exercise the right of purchase.
	 
	(c)	 	The Landlord shall nominate a price and other conditions on which it is prepared to sell the
property.
	 
	(d)	 	The Tenant may indicate his acceptance of the offer by responding in writing with fourteen
(14) days and submitting an executed contract of sale of land for the properly.
	 
	(e)	 	If the Tenant fails to respond in writing to the offer within fourteen (14) days, then this
right of first refusal shall he deemed waived.
	 
	(f)	 	Should the Tenant fail to exercise the right of first refusal hereby granted, the Landlord
may sell the property on terms no less favourable than those offered to the Tenant
	 
	22.5	 	The right of first refusal shall not apply if the Landlord chooses to sell the property at
Public Auction.

Reinstatement of Premises

	22.6	 	The Tenant is not responsible for reinstating any variations made to the premises at the end
of this Lease.
	 
	22.7	 	For the purpose of item 22.6 of this Schedule, references to “Variation” mean a
non-structural fit out installed by USF Filtration Pty Ltd (ACN 002 490 208) or the Tenant.
	 
	22.8	 	Nothing contained in item 22.6 and item 22.7 of this Schedule shall affect the obligations of
the Tenant pursuant to clause 3 and clause 5 of this Lease.

Land Tax

	22.9	 	The Landlord and the Tenant agree that the maximum amount of land tax (calculated on a single
holding basis) to be paid or reimbursed by the Tenant will be $4,000.00 per annum.

 

 

ANNEXURE“A”

LANDLORD’S INSTALLATIONS

	•	 	Air conditioning
	 
	•	 	Ceiling lighting
	 
	•	 	Fire system
	 
	•	 	Security System
	 
	•	 	Reception desk
	 
	•	 	Floor coverings
	 
	•	 	Computer cabling
	 
	•	 	Fixed cupboards and shelves

Production Area

	•	 	Vacuum system
	 
	•	 	Electrical points
	 
	•	 	Compressed air system

Laboratories

	•	 	Fume extraction cupboard

Office Area

	•	 	Boardroom sink
	 
	•	 	Boardroom shelving
	 
	•	 	Blinds
	 
	•	 	Fixed shelving in photocopy room

Canteen

	•	 	Kitchen units
	 
	•	 	Dishwasher

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