Document:

Exhibit 10.14

 

	
Form:
    	
07L
    	
 
    	
LEASE
    	
Leave this space clear.   Affix additional
    
	
Release:
    	
4.4
    	
 
    	
pages to the top   left-hand corner.
    
	
 
    	
 
    	
 
    	
New South Wales

Real   Property Act 1900
    	
 
    

 

PRIVACY NOTE: Section 31B of the Real Property Act 1900 (RP Act) authorises the Registrar General to collect the information required by this form for the establishment and maintenance of the Real Property Act Register. Section 96B RP Act requires that the Register is made available to any person for search upon payment of a fee, if any.

 

	
 
    	
STAMP DUTY
    	
Office   of State Revenue use only
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(A)
    	
TORRENS TITLE
    	
Property   leased
    
	
 
    	
2/771947   as regards part being Levels 8, 9 and 10, 343 George Street, Sydney
    

 

 

	
(B)
    	
LODGED BY
    	
Document
    	
Name,   Address or DX, Telephone, and Customer Account Number if any
    	
CODE
    
	
 
    	
Collection
    	
LLPN:   123292U
    	
 
    
	
 
    	
Box
    	
Hunt &   Hunt
    	
 
    
	
 
    	
 
    	
DX   214 Sydney
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Reference:
    	
ESB:   9581255: 134407327
    	
L
    
						

 

 

	
(C)
    	
LESSOR
    	
COUNCIL   OF THE CITY OF SYDNEY ABN 22 636 550 790
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The   lessor leases to the lessee the property referred to above.
    
	
 
    	
 
    
	
(D)
    	
Encumbrances   (if applicable):
    
	
 
    	
 
    
	
(E)
    	
LESSEE
    	
ATLASSIAN   PTY LTD ABN 53 102 443 916
    
	
 
    	
 
    
	
 
    	
 
    
	
(F)
    	
TENANCY:
    

 

(G)           1. TERM 5 years 

 

2.         COMMENCING DATE 1 March 2015

 

3.         TERMINATING DATE 28 February 2020

 

4.         With an OPTION TO RENEW for a period of 3 years and 2 months

 

set out in clause 21 of Annexure “A” hereto

 

5.         With an OPTION TO PURCHASE set out in clause N.A. of N.A.

 

6.         Together with and reserving the RIGHTS set out inclause N.A. of N.A.

 

7.         Incorporates the provisions or additional material set out in ANNEXURE(S) “A” hereto.

 

8.         Incorporates the provisions set out in N. A.

 

No. N.A.

 

9.         The RENT is set out in item No. 5 of the Reference Schedule of Annexure “A” hereto.

 

	
ALL HANDWRITING   MUST BE IN BLOCK CAPITALS.
    	
1309
    

 

1

 

DATE 25 March 2015

 

	
(H)
    	
I certify that I   am an eligible witness and that the lessor’s attorney signed this dealing in   my presence.
    	
Certified   correct for the purposes of the Real Property Act 1900 by the lessor’s   attorney who signed this dealing pursuant to the power of attorney specified.
    
	
 
    
	
 
    	
[See note*   below].
    
	
 
    	
 
    	
 
    
	
 
    	
Signature of   witness: 
    	
/s/ Heather   Turner
    	
 
    	
Signature of   attorney: 
    	
/s/ Marcia   Claire Doheny
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attorney’s name:   
    	
MARCIA CLAIRE   DOHENY
    
	
 
    	
Name of witness:   
    	
HEATHER TURNER
    	
Signing on   behalf of: 
    	
COUNCIL OF THE   CITY OF SYDNEY
    
	
 
    	
Address of   witness: 
    	
456 KENT STREET
    	
Power of   attorney-Book: 
    	
4572
    
	
 
    	
 
    	
SYDNEY NSW 2000
    	
-No.: 
    	
994
    
	
 
    	
 
    	
 
    
	
 
    	
Certified   correct for the purposes of the Real Property Act 1900 and executed on behalf   of the company named below by the authorised person(s) whose   signature(s) appear(s) below pursuant to the authority specified.
    	
 
    
	
 
    
	
 
    
	
 
    
	
 
    	
Company:
    	
ATLASSIAN PTY   LTD ACN 102 443 916
    	
 
    
	
 
    	
Authority:
    	
section 127 of   the Corporations Act 2001
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Signature of   authorised person: 
    	
/s/ Scott Farquhar
    	
 
    	
Signature of   authorised person: 
    	
/s/ Mike Cannon-Brookes
    
	
 
    	
 
    	
 
    
	
 
    	
Name of   authorised person: 
    	
Scott Farquhar
    	
Name of   authorised person: 
    	
Mike Cannon-Brookes
    
	
 
    	
Office held:
    	
Director
    	
Office held: 
    	
Director
    
												

 

(I)                STATUTORY DECLARATION *

 

I

 

solemnly and sincerely declare that—

 

	
1.
    	
The time for the   exercise of option to
    	
in expired lease   No.
    	
has ended; and
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
The lessee under   that lease has not exercised the option.
    	
 
    	
 
    

 

I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act 1900.

 

	
Made and   subscribed at
    	
in the State of   New South Wales
    	
on
    
	
 
    	
 
    	
 
    
	
in the presence   of
    	
of 
    	
,
    
	
 
    	
 
    	
 
    
	
o   Justice of the Peace (J.P. Number:)
    	
o   Practising Solicitor 
    	
,
    

 

o Other qualified witness [specify]

 

# who certifies the following matters concerning the making of this statutory declaration by the person who made it:

 

1. I saw the face of the person OR I did not see the face of the person because the person was wearing a face covering, but I am satisfied that the person had a special justification for not removing the covering; and

 

2. I have known the person for at least 12 months OR I have confirmed the person’s identity using an identification document and the document I relied on was a                   [Omit ID No.]

 

	
Signature of   witness:
    	
Signature of   applicant:
    

 

*            As the services of a qualified witness cannot be provided at lodgment, the declaration should be signed and witnessed prior to lodgment. # If made outside NSW, cross out the witness certification. If made in NSW, cross out the text which does not apply.

 

** s117 RP Act requires that you must have known the signatory for more than 12 months or have sighted identifying documentation.

 

2

 

THIS IS ANNEXURE A REFERRED TO IN THE LEASE BETWEEN COUNCIL OF THE CITY OF SYDNEY (AS LANDLORD) AND ATLASSIAN PTY LTD (AS TENANT)

 

	
DATED: 25   March 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED   SEALED AND DELIVERED on behalf of Council of the City of Sydney by its duly   appointed attorney under power of attorney registered in the office of the   Registrar
    	
 
    	
 
    
	
General (NSW) No. 994 
    	
Book 4572
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
, in the presence of:
    	
Signature of   attorney: 
    	
/s/ Marcia   Claire Doheny
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Heather   Turner
    	
 
    	
Full name of attorney:
    	
MARCIA CLAIRE   DOHENY
    
	
 
    	
 
    	
 
    
	
Name:
    	
HEATHER TURNER
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
456 KENT STREET
    	
 
    
	
Address:
    	
SYDNEY NSW 2000
    	
 
    	
 
    
	
 
    	
PLEASE PRINT
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Tenant’s signature
    	
 
    
	
 
    	
 
    
	
EXECUTED by Atlassian Pty Ltd
    	
 
    
	
ACN 102 443 916 in accordance with section
    	
 
    
	
127 of the Corporations   Act 2001:
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Scott   Farquhar
    	
 
    	
Signature:
    	
/s/ Mike Cannon-Brookes
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Scott Farquhar
    	
 
    	
Name:
    	
Mike Cannon-Brookes
    
	
 
    	
PLEASE PRINT
    	
 
    	
PLEASE PRINT
    
	
Director
    	
 
    	
Director/Secretary*
    	
 
    
	
 
    	
 
    	
*   Delete as appropriate
    	
 
    
								

 

3

 

Contents

 

	
1.
    	
Definitions and interpretation
    	
7
    
	
 
    	
 
    	
 
    
	
 
    	
1.1
    	
Purpose
    	
7
    
	
 
    	
1.2
    	
Reference Schedule
    	
7
    
	
 
    	
1.3
    	
Definitions
    	
8
    
	
 
    	
1.4
    	
Interpretation
    	
11
    
	
 
    	
1.5
    	
Liability
    	
12
    
	
 
    	
1.6
    	
Severability
    	
12
    
	
 
    	
17
    	
Legislation
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Term and holding over
    	
13
    
	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Term
    	
13
    
	
 
    	
2.2
    	
Holding Over
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Landlord’s obligations
    	
13
    
	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Quiet Enjoyment
    	
13
    
	
 
    	
3.2
    	
Maintenance and   management
    	
13
    
	
 
    	
3.3
    	
Use of Common Areas
    	
13
    
	
 
    	
3.4
    	
Services
    	
13
    
	
 
    	
3.5
    	
Rates and Taxes
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Landlord’s reservations
    	
14
    
	
 
    	
 
    	
 
    
	
 
    	
4.1
    	
Services
    	
14
    
	
 
    	
4.2
    	
Landlord’s Rights
    	
14
    
	
 
    	
4.3
    	
Landlord may inspect
    	
15
    
	
 
    	
4.4
    	
Landlord may repair
    	
15
    
	
 
    	
4.5
    	
Additions and   alterations to the Building
    	
15
    
	
 
    	
4.6
    	
Concessions and   licences
    	
15
    
	
 
    	
4.7
    	
Prospective tenants and   purchasers
    	
15
    
	
 
    	
4.8
    	
Relocation
    	
16
    
	
 
    	
4.9
    	
Demolition
    	
16
    
	
 
    	
4.10
    	
Role as a governmental   agency
    	
16
    
	
 
    	
4.11
    	
Landlord’s and superior   interest holder’s right to view
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Rent and payment requirements
    	
16
    
	
 
    	
 
    	
 
    
	
 
    	
5.1
    	
Payment of Rent
    	
16
    
	
 
    	
5.2
    	
Interest on overdue   money
    	
17
    
	
 
    	
5.3
    	
Dishonour fees
    	
17
    
	
 
    	
5.4
    	
GST
    	
17
    
	
 
    	
5.5
    	
Adjustments, errors
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Rent review
    	
18
    
	
 
    	
 
    	
 
    
	
 
    	
6.1
    	
Review
    	
18
    
	
 
    	
6.2
    	
Fixed percentage review
    	
18
    
	
 
    	
6.3
    	
CPI review
    	
18
    
	
 
    	
6.4
    	
Market review
    	
18
    
	
 
    	
6.5
    	
Provision for   Adjustment/Deferment of Review
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Tenant’s outgoing contribution
    	
20
    
	
 
    	
 
    	
 
    
	
 
    	
7.1
    	
Tenant’s outgoings   contribution
    	
20
    
	
 
    	
7.2
    	
Components of Outgoings
    	
20
    
	
 
    	
7.3
    	
Accrual of Outgoings   and Base Year update
    	
22
    
	
 
    	
7.4
    	
Tenant’s share of   Outgoings
    	
22
    
	
 
    	
7.5
    	
Payments on account of Outgoings
    	
22
    
	
 
    	
7.6
    	
Outgoings Statement
    	
22
    
	
 
    	
7.7
    	
Adjustment of Outgoings
    	
23
    
	
 
    	
7.8
    	
Cleaning
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Utilities and other charges
    	
23
    
	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
Electricity, gas etc.
    	
23
    

 

4

 

	
 
    	
8.2
    	
Preparation Costs
    	
24
    
	
 
    	
8.3
    	
Default and   administration costs
    	
24
    
	
 
    	
8.4
    	
Land tax
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Use of the premises
    	
24
    
	
 
    	
 
    	
 
    
	
 
    	
9.1
    	
Permitted use
    	
24
    
	
 
    	
9,2
    	
Exclusion of warranty   as to use
    	
24
    
	
 
    	
9.3
    	
Positive Obligations
    	
25
    
	
 
    	
9.4
    	
Negative obligations
    	
25
    
	
 
    	
9.5
    	
Tenant’s servants to   comply
    	
26
    
	
 
    	
9.6
    	
Signs/directory board
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
Maintenance, repair and   alteration
    	
27
    
	
 
    	
 
    	
 
    
	
 
    	
10.1
    	
Repair and maintenance
    	
27
    
	
 
    	
10.2
    	
Maintenance of Tenant’s   equipment
    	
27
    
	
 
    	
10.3
    	
Breakages
    	
27
    
	
 
    	
10.4
    	
Lighting
    	
27
    
	
 
    	
10.5
    	
Doors, drains and   toilets
    	
27
    
	
 
    	
10.6
    	
Installations and   alterations
    	
27
    
	
 
    	
10.7
    	
Occupation prior to   Commencement Date
    	
28
    
	
 
    	
10.8
    	
Alterations or   additions to Landlord’s Property
    	
28
    
	
 
    	
10.9
    	
Work health and safety
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
Indemnities and releases
    	
29
    
	
 
    	
 
    	
 
    
	
 
    	
11.1
    	
Risk
    	
29
    
	
 
    	
11.2
    	
Release
    	
29
    
	
 
    	
11.3
    	
Indemnities
    	
30
    
	
 
    	
11.4
    	
lndependence
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
Insurances
    	
30
    
	
 
    	
 
    	
 
    
	
 
    	
12.1
    	
Insurance Policies -   Public Risk
    	
30
    
	
 
    	
12.2
    	
Insurance Policies -   other
    	
30
    
	
 
    	
12.3
    	
Insurance requirements
    	
31
    
	
 
    	
12.4
    	
Evidence
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
Assignment
    	
31
    
	
 
    	
 
    	
 
    
	
 
    	
13.1
    	
No sublease, mortgage   etc.
    	
31
    
	
 
    	
13.2
    	
Grounds for the   Landlord withholding consent to an assignment
    	
32
    
	
 
    	
13.3
    	
Landlord’s consent to   assignment
    	
32
    
	
 
    	
13.4
    	
Sublease
    	
32
    
	
 
    	
13.5
    	
Restriction on transfer   of shares
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
Damage
    	
33
    
	
 
    	
 
    	
 
    
	
 
    	
14.1
    	
Damage consequences
    	
33
    
	
 
    	
14.2
    	
Landlord entitlements
    	
33
    
	
 
    	
14.3
    	
Tenant’s entitlements
    	
34
    
	
 
    	
14.4
    	
Limitation on the Tenant’s   entitlements
    	
34
    
	
 
    	
14.5
    	
Resumption
    	
34
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
Expiry or termination of term
    	
34
    
	
 
    	
 
    	
 
    
	
 
    	
15.1
    	
Tenant to yield up and   remove its fittings
    	
34
    
	
 
    	
15.2
    	
Tenant not to cause damage
    	
34
    
	
 
    	
15.3
    	
Failure by Tenant to   remove Tenant’s moveable furnishings and equipment
    	
35
    
	
 
    	
15.4
    	
Tenant to indemnify and   pay Landlord’s costs
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
Default
    	
35
    
	
 
    	
 
    	
 
    
	
 
    	
16.1
    	
Essential terms
    	
35
    
	
 
    	
16.2
    	
Default events
    	
35
    
	
 
    	
16.3
    	
Consequences of default
    	
36
    
	
 
    	
16.4
    	
Recovery of loss
    	
36
    
	
 
    	
16.5
    	
No restriction or   waiver
    	
36
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
Rules
    	
37
    

 

5

 

	
 
    	
17.1
    	
Tenant to comply with   the Rules
    	
37
    
	
 
    	
17.2
    	
Landlord Not Liable for   Loss or Damage
    	
37
    
	
 
    	
17.3
    	
Landlord’s Right to   Amend Rules 
    	
37
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
Guarantee
    	
37
    
	
 
    	
 
    	
 
    
	
19.
    	
Bank guarantee
    	
37
    
	
 
    	
 
    	
 
    
	
 
    	
19.1
    	
Definitions
    	
37
    
	
 
    	
19.2
    	
Bank Guarantee
    	
38
    
	
 
    	
19.3
    	
Security Amount
    	
38
    
	
 
    	
19.4
    	
Further or Replacement   Bank Guarantee
    	
38
    
	
 
    	
19.5
    	
Payment of the Security   Amount
    	
38
    
	
 
    	
19.6
    	
No Waiver
    	
38
    
	
 
    	
19.7
    	
Make Good
    	
39
    
	
 
    	
19.8
    	
Assignment
    	
39
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
General
    	
39
    
	
 
    	
 
    	
 
    
	
 
    	
20.1
    	
Notices
    	
39
    
	
 
    	
20.2
    	
Amendment
    	
39
    
	
 
    	
20.3
    	
Entire understanding
    	
39
    
	
 
    	
20.4
    	
Further assurance
    	
39
    
	
 
    	
20.5
    	
Waiver and exercise of   rights
    	
39
    
	
 
    	
20.6
    	
No relationship
    	
39
    
	
 
    	
20.7
    	
Survival and   enforcement of indemnities
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
Option to renew
    	
40
    
	
 
    	
 
    	
 
    
	
 
    	
21.1
    	
Conditions for grant of   further term
    	
40
    
	
 
    	
21.2
    	
Terms of new lease
    	
40
    
	
 
    	
21.3
    	
Bank Guarantee
    	
41
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
Service charges for operation   outside Normal Business Hours
    	
41
    
	
 
    	
 
    	
 
    
	
23.
    	
Air Conditioning Plant and   Elevators
    	
41
    
	
 
    	
 
    	
 
    
	
 
    	
23.1
    	
Operational
    	
41
    
	
 
    	
23.2
    	
No Warranty
    	
42
    
	
 
    	
23.3
    	
No liability
    	
42
    
	
 
    	
23.4
    	
Service charges for   operation outside Normal Business Hours
    	
42
    
	
 
    	
 
    	
 
    	
 
    
	
24.
    	
Rental rebate
    	
42
    
	
 
    	
 
    	
 
    
	
 
    	
24.1
    	
Personal right
    	
42
    
	
 
    	
24.2
    	
Rental rebate
    	
42
    
	
 
    	
 
    	
 
    	
 
    
	
25.
    	
Green leasing provisions
    	
43
    
	
 
    	
 
    	
 
    
	
 
    	
25.1
    	
Cooperation to   implement environmental efficiencies
    	
43
    
	
 
    	
25.2
    	
NABERS
    	
43
    
	
 
    	
25.3
    	
NABERS rating
    	
43
    
	
 
    	
25.4
    	
Landlord upgrades
    	
44
    
	
 
    	
25.5
    	
Tenant use of water and   power
    	
44
    
	
 
    	
25.6
    	
Fit out efficiency
    	
44
    
	
 
    	
25.7
    	
Apply when City of   Sydney is the Landlord
    	
44
    
	
 
    	
25.8
    	
Failure to comply not   an event of default
    	
44
    
	
 
    	
 
    	
 
    	
 
    
	
26.
    	
Heritage Listed Building
    	
44
    
	
 
    	
 
    	
 
    
	
27.
    	
Possible entry 341 George   Street
    	
45
    
	
 
    	
 
    	
 
    
	
Rules
    	
46
    
	
 
    	
 
    
	
Signing Page
    	
48
    

 

6

 

1.                                      Definitions and interpretation

 

1.1                               Purpose

 

The purpose of this Lease is to record the agreement reached between the parties in relation to the leasehold interest in the Premises granted to the Tenant under this Lease.

 

1.2                               Reference Schedule

 

The Reference Schedule for this Lease is set out below:

 

Item 1.                                                         Land

 

The land comprised in certificate of title folio identifier 2/771947

 

Item 2.                                                         Premises

 

Levels 8, 9 and 10, 343 George Street, Sydney

 

Item 3.                                                         Landlord

 

Council of the City of Sydney ABN 22 636 550 790 of Level 6, Town Hall House, 456 Kent Street, Sydney, NSW

 

Item 4.                                                         Tenant

 

Atlassian Pty Ltd ACN 102 443 916 of Level 6, 341 George Street, Sydney NSW 2000

 

Item 5.                                                         Guarantor

 

Not applicable

 

Item 6.                                                         Commencement Date, Term and Expiry Date

 

(a)                                Commencement Date: 1 July 2015

 

(b)                                Term: 4 years and 8 months

 

(c)                                 Expiry Date: 28 February 2020

 

Item 7.                                                         Rent

 

$2,057,967.20 per annum

 

Item 7A                                                   Rent Commencement Date

 

4 months after the Commencement Date

 

Item 8.                                                         Rent Review Date / Method of review

 

(a)                                 Rent review date: on each anniversary of the Commencement Date

 

(b)                                 Method of review: fixed percentage increase of 4.00%

 

7

 

Item 9.                                                         Tenant’s share of Outgoings

 

(a)                                 Tenant’s share of Outgoings: 23.95%

 

(b)                                 Base year: 30 June 2014

 

Item 10.                                                  Permitted Use

 

Commercial offices

 

Item 11.                                                  Redecoration Date

 

Not applicable

 

Item 12.                                                  Bank Guarantee

 

(a)                                 Initial Bank Guarantee: $1,226,127.56

 

(b)                                 No. of months’ Rent calculated as the average Rent per month over the Term plus GST: 6

 

Item 13.                                                  Option to renew

 

Option Term: 3 years and 2 months commencing 1 March 2020 and terminating 30 June 2023

 

Item 14.                                                  Normal Business Hours

 

8.00 am to 6.00 pm Monday to Friday on a Business Day

 

Item 15.                                                  Cleaning cost

 

Approximately $13.90 per square metre per annum plus GST

 

1.3                               Definitions

 

In this Lease unless a contrary intention appears:

 

Air Conditioning Plant means any plant, machinery and equipment installed in the Building for heating, cooling or circulating air in the Premises.

 

API means the Australian Property Institute Inc (NSW Division) or its successor.

 

Authority includes:

 

1.3.1                               any government in any jurisdiction, whether federal, state, territorial or local;

 

1.3.2                               any provider of public utility services, whether statutory or not; and

 

1.3.3                               any other person, authority, instrumentality or body having jurisdiction, rights, powers, duties or responsibilities over the Premises or any part of them or anything in relation to them (including the Insurance Council of Australia Limited).

 

Bank Guarantee means a bank guarantee that meets the requirements specified in clause 19.

 

Base Year means the Outgoings Year stated in Item 9(b) as varied from time to time under this Lease.

 

Building means:

 

8

 

1.3.4                               the building or buildings for the time being erected on the Land of which the Premises form part including any extension, modification, alteration, addition or replacement in respect of them; and

 

1.3.5                               any Landlord’s Property in them.

 

Business Day means any day except Saturday or Sunday or a day that is a public holiday in New South Wales.

 

Commencement Date means the date stated in Item 6(a).

 

Common Areas means any part of the Building provided by the Landlord for common use and includes any forecourts, lobby areas, car parking areas, toilets and loading docks other than those reserved to the Landlord.

 

Elevators mean any lift in the Building.

 

Expiry Date means the dated stated in item 6(c).

 

Fire Services has the same meaning as the expression Essential Service under the Local Government (Approvals) Regulation 1993 or under the Building Code of Australia (as applicable to the Building) and includes any certificate, report, upgrading or annual certification in relation to any such service.

 

Guarantor means each person, if any, described in Item 5.

 

GST means goods and services tax under A New Tax System (Goods and Services Tax) Act 1999 (Cth).

 

Hazardous Materials means any substance, gas, liquid, chemical, mineral or other physical or biological matter which is or may become toxic, flammable, inflammable or which is otherwise harmful to the environment or any life form or which may cause pollution, contamination or any hazard or increase in toxicity in the environment or may leak or discharge or otherwise cause damage to any person, property or the environment.

 

Insolvency Event means any of the following:

 

1.3.6                          in the case of a body corporate:

 

(a)                                 a Court order is made or a resolution is passed that a body corporate be wound up;

 

(b)                                 an order is made or a meeting is called for the appointment of an administrator, provisional administrator, liquidator, provisional liquidator, receiver, receiver and manager or an inspector to a body corporate;

 

(c)                                  an administrator, provisional administrator, liquidator, provisional liquidator, receiver, receiver and manager or an inspector is appointed to a body corporate;

 

(d)                                 any act or event mentioned in section 461(1)(a) to (k) of the Corporations Act occurs; or

 

1.3.7                             in the case of a natural person, they become a bankrupt.

 

Land means the land stated in Item 1 of which the Premises forms part and, except where the context does not permit, includes the Building.

 

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Landlord means the person described in Item 3 and, where the context so admits, the employees and agents of the Landlord (including for the purpose of giving any notice any managing agent appointed from time to time by the Landlord).

 

Landlord’s Property means all plant, equipment, fixtures, fittings, furniture, furnishings and other property installed or situated in or relevant to the Premises and owned or controlled by the Landlord.

 

Lease means this instrument and any annexures or attachments to it.

 

Lettable Area means the area determined by the Landlord’s surveyor according to the method of measurement adopted for the time being by the Property Council of Australia, or any equivalent method of measurement the Landlord may nominate.

 

Normal Business Hours means the hours stated in Item 14.

 

Outgoings has the meaning given to that term in clause 7.2.

 

Outgoings Year means year or part of a year ending on 30 June in each year or at the expiry or sooner termination of this Lease (for all periods of less than 1 year all items of an annual or other periodic nature must be apportioned in respect of time as necessary).

 

Party means each of the Landlord, the Tenant and any Guarantor and Parties means all of them.

 

Permitted Use means the permitted use stated in Item 10.

 

Premises mean that part of the Building described in Item 2, and includes any Landlord’s Property. The Premises extend to:

 

1.3.8                     internal face of any concrete floor or ceiling slab or other structural floor or ceiling surface;

 

1.3.9                     internal face of external walls and of any internal structural walls of the Premises; and

 

1.3.10              the centre line of any inter-tenancy walls separating the Premises from other premises in the Building or from any Common Areas.

 

Quarter means each consecutive period of three months (or part of it) ending on the respective last days of March, June, September and December.

 

Reference Schedule means the reference schedule set out in clause 1.2.

 

Rent means the yearly amount stated in Item 7 as varied from time to time under this Lease.

 

Rent Commencement Date means the date specified in Item 7A.

 

Rent Review Date means each date or dates stated in Item 8(a).

 

Rules mean the rules of the Building notified by the Landlord to the Tenant from time to time.

 

Services means services (including, without limitation, water, sewerage, drainage, gas, electricity, communications, essential services and fire prevention) to or of the Building or the Land provided by the Landlord or any governmental agencies and which are intended to service, or are for the benefit of the Premises.

 

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Statutory Notice includes any requirement of any statute, rule, regulation, proclamation, ordinance or by-law, present or future, and whether state, federal or otherwise.

 

Statutory Outgoings means all costs payable to any Authority or under any Statutory Notice for:

 

1.3.11                   the Land or any part of it; or

 

1.3.12                   the ownership and operation of the whole or any part of the Land,

 

including, without limitation;

 

1.3.13                   all rates and taxes payable to any Authority relating to the use and occupation of the Land and/or for any services of the type from time to time provided by the local government authority for the locality in which the Land is situated and for waste and general garbage removal from the Land,

 

1.3.14                   all rates payable to an Authority for the provision, reticulation or discharge of water and/or sewage and/or drainage including excess water charges and meter rents; and

 

1.3.15                   land taxes or taxes of the nature of a tax on land, computed on the taxable value of the Land at the rate which would be payable by the Landlord if the Land were the only land owned by the Landlord and not subject to a special trust and not owned by a non-concessional company.

 

Tenant means the person described in Item 4 and, where the context so admits, the employees and agents of the Tenant.

 

Tenant and persons under its control means the Tenant and each of its servants, agents, workmen, visitors, invitees, sublessees, licensees and any other person on the Premises.

 

Tenant’s Business means the business carried on by the Tenant from the Premises.

 

Tenant’s Obligations means the obligations contained or implied in this Lease to be observed and performed by the Tenant.

 

Tenant’s Property means all property (including any fittings, plant and equipment) in the Premises which are not Landlord’s Property or Services.

 

Term means the period from and including the Commencement Date to and including the Expiry Date.

 

Valuer means a current member of the API who:

 

(a)                                 is a full member of the API and has at least 5 years’ experience of valuing premises of a like nature in the same market; and

 

(b)                                 at the time of appointment is both experienced and actively engaged in valuing like premises.

 

1.4                               Interpretation

 

The following rules of interpretation apply in this Lease unless the context otherwise requires:

 

1.4.1                          a heading may be used to assist interpretation, but is not legally binding;

 

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1.4.2                          a word or expression in the singular includes the plural and the converse also applies;

 

1.4.3                          a word or expression denoting any gender include all genders;

 

1.4.4                          a person includes an individual and a corporation;

 

1.4.5                          a reference to legislation, includes any State or Federal statute, enactment, ordinance, code or other legislation, or a section or provision of that legislation, includes any order, regulation, rule, bylaw, proclamation or statutory instrument made or issued under that legislation and any amendment, modification, consolidation, re-enactment or replacement of, or substitution for, that legislation from time to time;

 

1.4.6                          any term or expression defined in any legislation has the statutory meaning given to that term or expression in relevant legislation when used in this Lease;

 

1.4.7                          a reference to any notice, claim, demand, consent, agreement, approval, authorisation, specification, direction, disclosure, notification, request, communication, appointment, or waiver being given or made by a party to this Lease is a reference to its being given or made in writing, and the expression notice includes any of the foregoing;

 

1.4.8                          the word right or power includes right, power, remedy, authority, discretion or option or right to make or give any request, requisition, notice or demand, and the word consent includes approval, agreement, permission or authorisation;

 

1.4.9                          a reference to Item means an item in the Reference Schedule;

 

1.4.10                   a reference to governmental agency means the Crown, any government, any governmental ministry or department, or any Crown, governmental, semi-governmental, statutory, parliamentary, administrative, fiscal, public, municipal, local, judicial or regulatory entity, agency, instrumentality, authority, court, commission, tribunal or statutory corporation having jurisdiction over or in respect of the Building or its use or both;

 

1.4.11                   anything to be done on a Saturday, Sunday or a public holiday in New South Wales may be done on the next Business Day.

 

1.5                               Liability

 

When two or more persons are named as a Party, any agreement, representation or warranty expressed to be given or made by that Party pursuant to this Lease will be a joint and several liability of each named person.

 

1.6                               Severability

 

Any provision of this Lease which is prohibited or unenforceable will be ineffective to the extent of that prohibition or unenforceability, without invalidating the remaining provisions of this Lease.

 

1.7                               Legislation

 

The covenants powers and provisions implied in leases by virtue of sections 84,84A, 85 and 86 of the Conveyancing Act 1919 (NSW) do not apply to this Lease and are expressly negatived.

 

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2.             Term and holding over

 

2.1          Term

 

The Landlord leases the Premises to the Tenant for the Term on the terms, covenants and conditions contained in this Lease.

 

2.2          Holding Over

 

2.2.1                          If the Tenant remains in the Premises with the Landlord’s prior consent after the Expiry Date or the earlier termination of this Lease, the Tenant will occupy the Premises as a monthly tenant.

 

2.2.2                          The monthly tenancy under this clause 2.2 is on the same terms as this Lease at a monthly rent and other periodical payments payable by the Tenant under the Lease immediately before the Expiry Date or the date of the earlier termination of this Lease increased as to the monthly Rent by 4% per annum. The monthly tenancy may be terminated on any day by a Party giving to the other Party 20 Business Days’ notice expiring at any time.

 

3.             Landlord’s obligations

 

3.1          Quiet Enjoyment

 

Subject to the Landlord’s reservations in the Lease and the terms, covenants and conditions of this Lease, while the Tenant:

 

3.1.1                          pays the Rent and all other moneys payable under this Lease; and

 

3.1.2                          observes and performs all of the other Tenant’s Obligations,

 

the Landlord covenants that the Tenant may peaceably hold and enjoy the Premises during the Term without any interruption by the Landlord or any person rightfully claiming through the Landlord.

 

3.2          Maintenance and management

 

The Landlord must:

 

3.2.1                          keep and maintain the Building clean, tidy and in good condition;

 

3.2.2                          manage and operate the Building in a professional and competent manner; and

 

3.2.3                          obey any law relating to the Building that the Tenant is not obliged to satisfy.

 

3.3          Use of Common Areas

 

The Tenant and persons under its control are entitled to use the Common Areas in common with the Landlord and other persons entitled to use the Common Areas subject to compliance with the Tenant’s Obligations.

 

3.4          Services

 

3.4.1                          Subject to clauses 3.4.2 and 3.4.3, the Landlord must use reasonable endeavours to keep the Services available to the Premises to the extent that the Landlord is capable of doing so.

 

3.4.2                          The Tenant releases the Landlord from, and agrees that the Landlord is not liable for, liability or loss arising from, or costs incurred in connection with:

 

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(a)                                 any Service being interrupted or not working properly;

 

(b)                                 any failure in operation or defective operation of any facility, plant, machinery or equipment located or used in the Building (whether or not it comprises part of the Landlord’s Property); and

 

(c)                                  any disruption attributable to any development (including, without limitation, construction works) being carried out on or around land adjoining or adjacent to the Building,

 

except where the interruption, failure or disruption is due to a failure of the Landlord to comply with clause 3.2.

 

3.4.3                          The Tenant may not terminate this Lease nor make any claim of any nature by reason of anything referred to in this clause 3.4.

 

3.5          Rates and Taxes

 

The Landlord must pay all rates and taxes for the Building other than any rates and taxes payable by the Tenant in the performance of the Tenant’s Obligations.

 

4.             Landlord’s reservations

 

4.1          Services

 

4.1.1          The Landlord reserves the right:

 

(a)                                 to install, maintain, use, repair, alter and replace; and

 

(b)                                 to pass or convey any Service including (without limitation) gas, water, sewerage, heat, oil, communications and data, electricity or other power and heated or cooled air through,

 

any pipes, ducts, conduits or wires passing through or leading into the Premises.

 

4.1.2         For the purposes of clause 4.1.1, the Landlord may enter the Premises but must:

 

(a)           give reasonable notice to the Tenant; and

 

(b)           cause as little inconvenience to the Tenant as is reasonably practicable in the circumstances,

 

except in an emergency, when no notice of intended entry is required.

 

4.2                               Landlord’s Rights

 

The Landlord may:

 

4.2.1                          carry out any repairs, renovations, maintenance, modifications, extensions or alterations to the Building and for such purpose limit access to or close the Common Areas, if the Landlord takes reasonable steps (except in emergencies) to minimise interference with the Tenant’s Business;

 

4.2.2                          exclude or remove any person from the Building;

 

4.2.3                          permit functions, displays, parades, musical performances, exhibitions and other activities in Common Areas;

 

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4.2.4                          install and use a public address system throughout the Common Areas;

 

4.2.5                          change the direction or flow of pedestrian traffic into, out of or through the Building;

 

4.2.6                          use the exterior surfaces of the Building (including, without limitation, the roof of the Building) for such purposes as it thinks fit; and

 

4.2.7                          advertise and promote the Building in a way it regards as appropriate including the erection or installation of signs on the exterior surfaces of the Building.

 

4.3          Landlord may inspect

 

The Landlord may at any time after giving the Tenant reasonable notice, except in an emergency when no notice of intended entry is required, enter the Premises for the purpose of ascertaining whether the Tenant is complying with the Tenant’s Obligations.

 

4.4          Landlord may repair

 

4.4.1                          At any time after giving the Tenant reasonable notice (except in an emergency when no notice of intended entry is required), the Landlord may enter upon the Premises with any consultants, workmen, other persons or materials needed to:

 

(a)                                 comply with any request, requirement, notification or order (for which the Tenant is not liable under the Lease) of any governmental agency; or

 

(b)                                 carry out repairs, renovations, maintenance, modifications, extensions or alterations to the Premises or the Building or any Services which the Landlord believes are necessary in its absolute discretion.

 

4.4.2                          When exercising its powers under this clause 4.4, the Landlord must use its reasonable endeavours to cause as little inconvenience to the Tenant as is possible in the circumstances.

 

4.5          Additions and alterations to the Building

 

Deleted.

 

4.6          Concessions and licences

 

The Landlord may:

 

4.6.1                     erect, remove or re-erect any kiosk, shop, sign, seats or other structures in the Common Areas; and

 

4.6.2                     grant any lease, licence or exclusive use of any structures forming part of the Building, any parking space, any loading bay or any other part of the Common Areas (other than the toilets), either exclusively or in common with others for any purpose, for any period and on any terms and conditions, including the payment of any fee.

 

4.7          Prospective tenants and purchasers

 

4.7.1                          After giving reasonable notice, the Landlord may at any time show prospective purchasers of the Landlord’s interest in the Premises through the Premises.

 

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4.7.2                          After giving the Tenant reasonable notice, the Landlord may show prospective tenants through the Premises and display from the Premises a sign indicating that the Premises are available for lease.

 

4.8          Relocation

 

Deleted.

 

4.9          Demolition

 

Deleted.

 

4.10        Role as a governmental agency

 

4.10.1                   Nothing in this Lease in any way restricts or otherwise affects the unfettered discretion of the Landlord in the exercise of its statutory powers as a governmental agency.

 

4.10.2                   In the event of any conflict between the unfettered discretion of the Landlord in the exercise of its statutory powers as a governmental agency and the performance of obligations under this Lease, the former prevails.

 

4.11        Landlord’s and superior interest holder’s right to view

 

The Tenant must at all times during the Term permit the Landlord and any person having any estate or interest in the Premises superior to or concurrent with that of the Landlord to:

 

4.11.1      exercise the Landlord’s powers to enter and view the Premises;

 

4.11.2      carry out repairs, renovations, maintenance and other work authorised by the Lease; and

 

4.11.3      otherwise to exercise or perform their lawful rights and obligations in respect of the Premises,

 

at all reasonable times and subject to having been first provided with reasonable notice by the Landlord except in the cases of emergency when the Landlord may enter at any time and without notice.

 

5.             Rent and payment requirements

 

5.1          Payment of Rent

 

5.1.1                          The Tenant covenants to pay the Rent to the Landlord during the Term.

 

5.1.2                          The Tenant must pay the Rent by equal monthly instalments in advance on the first day of each month (and proportionately for any part of a month). The first such instalment must be paid on the Rent Commencement Date.

 

5.1.3                          All payments of Rent or other moneys payable by the Tenant under this Lease must be without deductions and free of any right of set off to the Landlord or (using a direct debit payment method or such other payment method as the Landlord reasonably requires) as the Landlord may otherwise direct. For the purposes of the rent payment method, the Tenant must provide the Landlord with all authorisations required by the Landlord on or before the Commencement Date.

 

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5.1.4                          The Landlord need not make demand for any amount payable by the Tenant unless this Lease says that demand must be made.

 

5.2          Interest on overdue money

 

5.2.1                          If the Tenant does not pay the Rent or any other moneys payable under this Lease within 5 Business Days of the due date, the Tenant must pay interest (at the rate stated in clause 5.2.2) on the outstanding amount for the period from the day the unpaid money was due until it is paid. The interest must be paid to the Landlord on the earlier of:

 

(a)                                 the next day on which an instalment of Rent is payable under this Lease; and

 

(b)                                 10 Business Days after the Landlord has given the Tenant a demand for any interest.

 

5.2.2                          Interest is calculated on daily balances at the rate equal to that charged by the Landlord’s bank from time to time on overdraft accommodation in excess of $100,000.00 plus 2% per annum.

 

5.3          Dishonour fees

 

The Tenant must reimburse the Landlord on demand for any dishonour fee or other charge the Landlord incurs as a result of any cheque or direct debit being dishonoured.

 

5.4          GST

 

5.4.1                          If a party to this Lease (Supplier) makes a supply under or in connection with this Lease and is liable by law to pay GST on that supply, the consideration otherwise payable by the recipient of the supply will be increased by an amount equal to the GST paid or payable by the Supplier.

 

5.4.2                          If this Lease requires a party to pay for, reimburse or contribute to any expense, loss or outgoing (reimbursable expense) suffered or incurred by another party, the amount required to be paid, reimbursed or contributed by the first party is the amount of the reimbursable expense net of any input tax credit or reduced input tax credit to which the other party is entitled for the reimbursable expense.

 

5.4.3                          If a party to this Lease has the benefit of an indemnity for a cost, expense, loss or outgoing (indemnified cost) under this Lease, the indemnity is for the indemnified cost net of any input tax credit or reduced input tax credit to which that party is entitled for the indemnified cost.

 

5.4.4                          Each party agrees to do all things, including providing tax invoices and other documentation that may be necessary or desirable to enable or assist the other party to claim any input tax credit, set-off, rebate or refund in relation to any amount of GST paid or payable for any supply under this Lease.

 

5.4.5                          Subject to the operation of this clause 5.4, all amounts stated in this Lease are GST exclusive.

 

5.5          Adjustments, errors

 

5.5.1                          Where any Rent or other moneys payable by the Tenant under this Lease are calculated over a period, and the Commencement Date or the Expiry Date occurs during that period, the Landlord may make any necessary proportional adjustment on a daily rate basis.

 

17

 

5.5.2                     If there is an error in any Rent or other moneys charged under this Lease, the Landlord may correct it and make any necessary adjustment in the next monthly tax invoice or as soon as practicable.

 

6.             Rent review

 

6.1          Review

 

The Rent payable by the Tenant during the Term is to be reviewed at each Rent Review Date in accordance with the rent review method described in Item 8(b) that will apply on the relevant Rent Review Date.

 

6.2          Fixed percentage review

 

6.2.1                          This clause 6.2 will apply if Item 8(b) states that a ‘fixed percentage review’ is to occur on the relevant Rent Review Date.

 

6.2.2                          The Rent is to be adjusted on and from the relevant Rent Review Date to be the amount calculated by increasing the Rent payable immediately prior to the relevant Rent Review Date by the percentage referred to in item 8(b).

 

6.3          CPI review

 

Deleted.

 

6.4          Market review

 

6.4.1                          This clause 6.4 applies as required by clause 21.2.3 with the first day of the further term being the Rent Review Date for the purposes of this clause.

 

6.4.2                          During the 3 months immediately before or any time after a Rent Review Date on which a market review is to occur, either Party may give the other Party a notice specifying its estimate of the current market rent of the Premises (assessment notice).

 

6.4.3                          The Rent as and from the relevant Rent Review Date will be the amount notified in the assessment notice unless the other Party gives the notifying Party a notice rejecting or disputing the assessment notice (dispute notice) within 1 month of having been given the assessment notice.

 

6.4.4                          If a dispute notice is given during the period stated in clause 6.4.3, the Parties must conduct negotiations and try to reach agreement on the current market rent of the Premises during the period of 1 month immediately after the date on which the dispute notice is given to the Landlord.

 

6.4.5                          If a dispute notice is given and the Parties do not reach an agreement on the current market rent of the Premises within the period stated in clause 6.4.4, then that rent must be decided by a Valuer who:

 

(a)                                 is appointed by the Parties but if they do not agree on who to appoint within 10 Business Days after the Tenant gives the dispute notice to the Landlord, the Valuer is to be nominated at either Party’s request by the President for the time being of the API;

 

(b)                                 in determining the current market rent of the Premises must take into account:

 

(i)                                             current annual rents and incentives for comparable premises whether those rents arise from letting vacant

 

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space, renegotiating rent on the expiry or termination of a previous lease or from rent reviews;

 

(ii)                                          the provisions of the Lease (or of any further lease to be granted under this Lease) and the period of time until the next Rent Review Date;

 

(iii)                                       the update of the Base Year (for the purposes of calculating the Tenant’s share of the outgoings) that occurs on each Rent Review Date where a market rent review is to occur; and

 

(iv)                                      any other use to which the Premises may be lawfully put subject to the consent of the relevant governmental agency (if required) being sought and obtained,

 

but take no account of:

 

(v)                                         the value of any goodwill attributable to the Tenant’s Business and any improvements or fixtures erected or installed at the Tenant’s expense which the Tenant is permitted or required to remove at the expiry or termination of the Lease;

 

(vi)                                      any deleterious condition of the Premises if that results from any breach of this Lease by the Tenant or use of the Land by the Tenant under this Lease;

 

(vii)                                   any discount which might apply if the Tenant leases or occupies more than one Lettable Area in the Building or if the leased premises constitute a whole floor or more than one floor in the Building; and

 

(viii)                                the current annual rent for particular comparable premises if, in the opinion of the Valuer, the rental payable for those premises is abnormal, or unrealistic, or otherwise does not reflect the current rental value of those premises having regard to conditions prevailing in the relevant market at the Rent Review Date; and

 

(c)                                  is by virtue of their appointment instructed to (and either Party may confirm these instructions by notice to the appointed Valuer) give a written valuation report within 1 month after accepting the appointment; and

 

(d)                                 acts as an expert and not as an arbitrator and whose decision is final and binding.

 

6.4.6                          The Landlord must, not later than 10 Business Days after a request by the Valuer give the Valuer any information the Valuer may reasonable request about tenancies in the Building.

 

6.4.7                          Each Party must use reasonable endeavours to provide the Valuer with reasonable assistance in the determination of the current market rent of the Premises.

 

6.4.8                          The amount decided by the Valuer is the Rent from and including the relevant Rent Review Date on which a market review is or was to occur.

 

19

 

6.4.9                          The Landlord and the Tenant must pay the costs and expenses of the Valuer in equal shares.

 

6.5          Provision for Adjustment/Deferment of Review

 

6.5.1                          If the amount of any revised Rent has not been agreed or determined by the relevant Rent Review Date the Tenant must continue to pay Rent to the Landlord at a rate equal to the Rent payable during the preceding year until the revised Rent is ascertained.

 

6.5.2                          When the revised Rent is ascertained, any necessary adjustment of Rent calculated from the relevant Rent Review Date must be paid by the Tenant within 10 Business Days of the revised Rent being ascertained.

 

7.             Tenant’s outgoing contribution

 

7.1          Tenant’s outgoings contribution

 

The Tenant must pay to the Landlord its share of any increases in the Outgoings for each Outgoings Year, such increase being the amount by which the Outgoings payable in each Outgoings Year exceed the Outgoings payable in the Base Year.

 

7.2          Components of Outgoings

 

For the purposes of this Lease, Outgoings means the total of all amounts properly or reasonably assessed or assessable, charged or chargeable, payable or paid or otherwise incurred in respect of the Land by the Landlord acting reasonably whether by direct assessment or otherwise, including:

 

7.2.1                          all Statutory Outgoings;

 

7.2.2                          all insurance premiums and amounts payable for insurances:

 

(a)           on the Land or any part of it for its full insurable or replacement value;

 

(b)                                 (subject to the exclusion of any rents arising from normal vacancies during letting up periods) for loss of any rents or other moneys (whether separate or otherwise including any rents or other moneys payable for any tenancy or occupation of the Land) arising from damage or destruction of the Land or any part of it or arising from diminution or loss of any means of access or other similar causes;

 

(c)           for public liability for $20,000,000.00; and

 

(d)                                 for workers’ compensation for all employees of the Landlord engaged in employment in connection with the Land, but where any such employee is engaged in connection with other buildings of the Landlord the cost of workers’ compensation insurance shall be apportioned by the Landlord on a fair basis;

 

7.2.3                          all costs in relation to the supply of water, sewerage and drainage Services to and the removal of all waste, sullage and all other general garbage from the Land including all costs of operating and maintaining any plant and equipment provided for that purpose whether the plant or equipment is located on the Land or otherwise, but excluding from this paragraph any amount which is:

 

(a)           already included by virtue of another paragraph of this definition;

 

20

 

(b)        otherwise payable by the Tenant pursuant to the provisions of this Lease; or

 

(c)        payable by another tenant of the Land;

 

7.2.4                     all costs in relation to the control of pest, vermin, insect or other similar infestation;

 

7.2.5                     all costs of purchasing, hiring, maintaining and servicing all indoor outdoor gardens, lawns, potted shrubs, planted areas and associated plants on the Land;

 

7.2.6                     all costs of the provision and maintenance (or where appropriate replacement costs) for security and/or caretaking services, including the costs of policing and regulating traffic on the Land and/or for any means of access to the Land;

 

7.2.7                     subject to the exclusion of repairs and maintenance of a structural or capital nature and Fire Services, all costs of repairs and/or maintenance of the Land or any part of it, including the costs of operating, supplying, maintaining and repairing, and maintenance contracts of all Services from time to time provided for all tenants;

 

7.2.8                     all costs incurred in providing all Services (including the costs of electricity and other sources of energy consumed) and which are not allocated to specific tenants;

 

7.2.9                     all proper and reasonable costs in the form of salary, wages, leave entitlements, superannuation and other employment overheads (fairly apportioned by the Landlord where any such employee is engaged in work relating to other buildings) incurred in the operation, maintenance and supply of any Service to the Land from time to time provided by or at the instance of the Landlord for the tenants and/or for the Land;

 

7.2.10              a management fee to cover the reasonable costs of managing and operating the Land, having regard where appropriate to fees that would be charged by members of the Real Estate Institute of New South Wales, and if applicable fees payable to any managing agents for the general management and operation of the Land, and any other monies no matter how disbursed relating to the management of the Land;

 

7.2.11              all costs, including rental and hiring costs (or where appropriate replacement costs), for the provision of music, amplification systems, telephone, indoor plants and all other similar equipment servicing or adorning the Land, including any costs relative to general items of an operational nature not otherwise specified in another paragraph of this definition;

 

7.2.12              all costs incurred by the Landlord in cleaning the Land (other than areas occupied by Occupants); and

 

7.2.13              any other costs properly incurred in the management, operation and maintenance of the Land generally including, but without limiting the foregoing, costs incurred in connection with the Common Areas,

 

provided always that all costs relating to items of a structural or capital nature are excluded.

 

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7.3             Accrual of Outgoings and Base Year update

 

Outgoings are deemed to accrue from day to day and must be apportioned accordingly, irrespective of the period for which they are levied, assessed, charged or payable. For the purposes of clause 7.1 the amount of Outgoings payable in the Base Year will increase at the same time and by the same percentage increase that the Rent is increased in accordance with clause 6.1.

 

7.4             Tenant’s share of Outgoings

 

7.4.1                     The Landlord must calculate the Tenant’s share of any increase in the Outgoings based on the Lettable Area of the Premises in proportion to:

 

(a)                                 the Lettable Area of all premises in the Building to which the Outgoings are referable; and

 

(b)                                 where only part or parts of the Building enjoy or share the benefit of any particular Outgoings, the Lettable Area of that part or parts of the Building.

 

7.4.2                     The Tenant acknowledges that the Tenant’s share of the Outgoings as at the Commencement Date is set out in Item 9(a).

 

7.4.3                     The Landlord must adjust the Tenant’s share of any increases in the Outgoings proportionally if there is change in the Lettable Area of the Building or the Lettable Area of the Premises. The Landlord must give the Tenant notice of any such adjustment.

 

7.5             Payments on account of Outgoings

 

7.5.1                     The Landlord may estimate for each Outgoings Year the Tenant’s share of any increases in the Outgoings and notify the Tenant of the estimate including an itemised budget of anticipated Outgoings for the relevant Outgoings Year at least 1 month prior to the commencement of each Outgoings Year.

 

7.5.2                     The Tenant must pay to the Landlord the Landlord’s estimate of the Tenant’s share of any increases in the Outgoings by equal monthly instalments in advance during each Outgoings Year on the days and in the manner fixed for the payment of Rent.

 

7.6             Outgoings Statement

 

7.6.1                     The Landlord must give to the Tenant an Outgoings statement within 3 months after the end of each Outgoings Year specifying:

 

(a)                                 the Outgoings (including such particulars of them as are considered reasonable by the Landlord) for that period and the Base Year; and

 

(b)                                 the amount paid by the Tenant on account of the Tenant’s share of the Outgoing for that period.

 

7.6.2                     The Landlord must ensure that the statement to be given under clause 7.6.1 is prepared by a registered company auditor (within the meaning of the Corporations Act) and:

 

(a)                                 is delivered within 3 months of the end of each Outgoings Year;

 

(b)                                 is prepared in accordance with any relevant Australian Accounting Standards (within the meaning of the Corporations Act).

 

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7.7                                       Adjustment of Outgoings

 

7.7.1                     The Tenant must pay to the Landlord the Tenant’s share of any increases in the Outgoings (less any amounts paid under clause 7.5) within 1 month of receipt by the Tenant of a statement under clause 7.6.1.

 

7.7.2                     If payments made by the Tenant under clause 7.5 exceed the Tenant’s share of any increases in the Outgoings for any Outgoings Year, the excess must be credited against:

 

(a)                                 the next payment due by the Tenant under clause 7.5; or

 

(b)                                 if the Lease is terminated, any amount owing by the Tenant to the Landlord (or paid to the Tenant if nothing is owed to the Landlord).

 

7.8                                       Cleaning

 

7.8.1                     The Tenant must pay from the Commencement Date the Landlord’s costs for providing cleaning services to the Premises on the same days and in the same manner as the Tenant is required to pay Rent under the Lease disregarding any Rent free period, the first instalment to be made on the Commencement Date.

 

7.8.2                     The Tenant may define the scope of cleaning it requires for the Premises. The Landlord must not unreasonably refuse to accept the scope as nominated by the Tenant.

 

7.8.3                     The Tenant must give access to the persons engaged by the Landlord to provide cleaning services for the Premises.

 

7.8.4                     At the Commencement Date, the Landlord’s cost for providing cleaning services to the Premises is the Cleaning Cost stated in Item 15. If the Landlord accepts a scope of cleaning submitted by the Tenant, it will reasonably assess whether the Cleaning Cost shall vary but the decision of the Landlord shall be final.

 

7.8.5                     The Landlord may at any time during the Term notify the Tenant of a reasonable increase in the Landlord’s costs for providing cleaning services and the Tenant must include the Tenant’s increased proportion of the Landlord’s cleaning costs in the Tenant’s next payment of Rent, including any adjustments notified by the Landlord to the Tenant.

 

8.                                              Utilities and other charges

 

8.1                                       Electricity, gas etc

 

8.1.1                     The Tenant must pay to the Landlord or the relevant governmental agency as the context requires all charges for Services (including, without limitation, water, telephone and electricity) supplied to the Premises on the days fixed for payment of the relevant charge.

 

8.1.2                     If the Premises are separately rated or charged, the Tenant must pay the relevant rate or charge to the relevant governmental agency on the day fixed for payment of that rate or charge.

 

8.1.3                     If the Premises are separately metered, the Tenant must pay to the Landlord or the relevant governmental agency as the context requires the charge for the relevant separately metered Service according to the consumption of the relevant Service recorded by the separate meter. At the Landlord’s request the Tenant must install separate meters for those services capable of being

 

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separately metered but such separate meters shall be installed at the expense of the Landlord.

 

8.2                                       Preparation Costs

 

Each party must pay for their own legal costs, charges and expenses incurred in relation to the preparation, negotiation and completion of this Lease.

 

8.3                                       Default and administration costs

 

In connection with this Lease and any document or matter in connection with it, the Tenant must pay:

 

8.3.1                     for everything it must do;

 

8.3.2                     all duty and registration fees;

 

8.3.3                     on demand the Landlord’s reasonable costs, charges and expenses incurred in connection with obtaining any consents or approval of the Landlord and any person having a superior interest in the Landlord as required under this Lease (excluding mortgagee consent costs);

 

8.3.4                     all costs, charges and expenses in connection with structural works the Tenant carries out including those reasonably incurred by the Landlord in considering, approving and supervising such works and those of modifying or varying the Building because of the works; and

 

8.3.5                     all costs, damages and expenses (including any reasonable legal costs and expenses) in relation to any default by the Tenant under this Lease or any enforcement or attempted enforcement by the Landlord of its rights under this Lease.

 

8.4                                       Land tax

 

8.4.1                     The Tenant must pay to the relevant governmental agencies all taxes and charges levied (including but not limited to land tax) or imposed on the Tenant or the Premises as a result of the grant to the Tenant of a leasehold interest in the Premises.

 

8.4.2                     For the avoidance of any doubt, the Tenant acknowledges that it has been disclosed to it by the Landlord that under section 21C of the Land Tax Management Act 1956, the Tenant may be directly assessed for payment of land tax for the Premises.

 

9.                                              Use of the premises

 

9.1                                       Permitted use

 

The Tenant must not use the Premises otherwise than for the Permitted Use.

 

9.2                                       Exclusion of warranty as to use

 

9.2.1                     The Landlord does not in any way warrant that the Premises are or will remain suitable or adequate for any of the purposes of the Tenant. To the fullest extent permitted by law all warranties as to suitability and as to adequacy otherwise applicable are expressly negatived.

 

9.2.2                     The Tenant acknowledges and agrees that prior to signing this Lease it has satisfied itself by independent investigation as to the suitability of the Building for

 

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the Permitted Use and as to the requirements of any applicable legislation or any relevant governmental agency.

 

9.3                                       Positive Obligations

 

The Tenant must:

 

9.3.1                     conduct the Tenant’s Business at all times in a proper, orderly and businesslike manner;

 

9.3.2                     keep the Premises and everything in them clean and free of vermin and comply with the Landlord’s reasonable directions in that regard;

 

9.3.3                     comply on time with all laws and the requirements of all relevant governmental agencies in connection with the Tenant’s Business, the Tenant’s Property and the Tenant’s use or occupation of the Premises (including obtaining all permits);

 

9.3.4                     inform the Landlord of damage to the Building or the Premises or of a faulty Service as soon as reasonably practicable after it becomes aware of it;

 

9.3.5                     be aware of and observe the maximum load weights throughout the Premises and the Building;

 

9.3.6                     promptly, when asked by the Landlord, do anything reasonably necessary for the Tenant to do to enable the Landlord to exercise its rights under this Lease;

 

9.3.7                     put up signs in the Premises prohibiting smoking, if required by the Landlord;

 

9.3.8                     participate in any of the following after having received reasonable prior notice from the Landlord:

 

(a)                         fire or safety drills;

 

(b)                         environmental safety procedures;

 

(c)                          pollution control procedures; or

 

(d)                         work, health and safety inductions, of which the Landlord gives reasonable notice;

 

9.3.9                     evacuate the Building immediately and in accordance with the Landlord’s directions when informed of any actual or suspected emergency; and

 

9.3.10              secure the Premises when they are unoccupied and comply with the Landlord’s reasonable directions about Building security.

 

9.4                                       Negative obligations

 

The Tenant must not:

 

9.4.1                     smoke in the Building;

 

9.4.2                     alter or interfere with the Landlord’s Property or remove it from the Premises;

 

9.4.3                     do anything in or around the Building which in the Landlord’s reasonable opinion may be annoying, illegal dangerous or offensive;

 

9.4.4                     misuse or do anything to overload the Building’s facilities, appurtenances, Services;

 

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9.4.5                     hold auction, bankrupt or fire sales in the Premises;

 

9.4.6                     keep an animal or bird on the Premises;

 

9.4.7                     cut, make holes in, mark, deface, drill, damage or cause any such works to be effected to the floors, walls, ceilings or other parts of the Premises without the Landlord’s prior approval;

 

9.4.8                     dispose of refuse from the Premises in bins provided for public use;

 

9.4.9                     use any method of heating, cooling or lighting the Premises other than those provided or reasonably approved by the Landlord;

 

9.4.10              use any escalators or passenger lifts to carry goods or equipment without the prior reasonable approval of the Landlord;

 

9.4.11              operate a musical instrument, radio, or television that can be heard outside the Premises;

 

9.4.12              move heavy or bulky objects through the Building without the Landlord’s prior approval which must not be unreasonably withheld;

 

9.4.13              obstruct:

 

(a)                                 windows in the Premises or Building; 

 

(b)                                 any Service and all plant and equipment associated with the Services;

 

(c)                                  any emergency exits from the Building or the Premises; or

 

(d)                                 the Common Areas; or

 

9.4.14              interfere with any fire safety or alarm equipment installed in the Building or obstruct access to them.

 

9.5                                       Tenant’s servants to comply

 

The Tenant must use it best endeavours to ensure that the Tenant and persons under its control comply, if appropriate, with the Tenant’s Obligations.

 

9.6                                       Signs/directory board

 

9.6.1                     Prior to the Commencing Date the Tenant will advise the Landlord of the manner in which the Tenant’s business is to be advertised on the directory board maintained by the Landlord in the foyer of the Building and the Landlord will at the expense of the Tenant provide the same in a style and manner consistent with that reasonably prescribed by the Landlord for the directory board.

 

9.6.2                     The Tenant may display on each level of the Premises company signage of the Tenant subject to the reasonable approval of the Landlord as to the construction and method of installation of any such sign.

 

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10.                                       Maintenance, repair and alteration

 

10.1                                Repair and maintenance

 

10.1.1              Subject to clause 10.1.2, the Tenant must keep the Premises in good repair, order and condition but this obligation does not apply to repairs required because of:

 

(a)                                 any negligence of the Landlord;

 

(b)                                 any explosion, aircraft, riot, civil commotion, war;

 

(c)                                  any earthquake, fire, flood, lightning, storm, tempest;

 

(d)                                 reasonable wear and tear; or

 

(e)                                  an act of God.

 

10.1.2              The Tenant is not obliged to carry out any repairs of a structural nature unless those repairs are required because:

 

(a)                                 of the Tenant’s particular use or occupation of the Premises; or

 

(b)                                 any act, negligence or default of the Tenant and persons under its control.

 

10.2                                Maintenance of Tenant’s equipment

 

The Tenant must keep and maintain all its machinery, plant and equipment and fixtures, fittings and furnishing within and used exclusively in the Premises clean, in a safe condition and in good repair, working order and condition.

 

10.3                                Breakages

 

The Tenant must immediately make good any breakage, defect or damage to the Premises, the Common Areas, the Building, or any facility or appurtenances of the Premises or the Building arising out of any want of care, misuse or abuse or any breach of the Tenant’s Obligations by the Tenant and persons under its control.

 

10.4                                Lighting

 

The Tenant must promptly replace at its own expense any globes or fluorescent tubes which give illumination to the Premises and which cease to function for any reason.

 

10.5                                Doors, drains and toilets

 

Deleted.

 

10.6                                Installations and alterations

 

The Tenant must:

 

10.6.1              not install any Tenant’s Property in the Premises or make any alteration or addition to the Premises without the Landlord’s prior reasonable approval or to the Building without the prior approval of the Landlord. The Landlord must make a decision with regard to its consent within 10 Business Days of receiving from the Tenant the particulars of the work except that this timetable will not apply to any structural works. If the Landlord does not respond within the period of 10 Business Days it will be deemed to have consented to the works;

 

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10.6.2              submit to the Landlord detailed drawings and specifications of the proposed works and obtain the approval of the Landlord to those drawings and specifications. When approving the proposed works the Landlord may consider the manner and extent to which the proposed works may affect the Building and the Services within it;

 

10.6.3              prior to installation of the Tenant’s Property, obtain all necessary approvals from all relevant government agencies;

 

10.6.4              install only those Tenant’s Property which comply with the Landlord’s reasonable requirements as to type, quality, colour and size; and

 

10.6.5              use a licensed builder, contractor or tradesman to install the Tenant’s Property:

 

(a)                                 in a proper and workmanlike manner;

 

(b)                                 if the works have any impact on the mechanical or essential services or on the structural integrity of the Building the work must if reasonably required by the Landlord be undertaken under the supervision and to the satisfaction of the Landlord’s consultant at the reasonable cost of the Tenant; and

 

(c)                                  who has a current public liability policy for an amount from time to time reasonably approved by the Landlord but in any case not less than $20,000,000.00.

 

10.6.6              effect or ensure that its builder, contractor or tradesman has effected:

 

(a)                                 a policy covering all persons employed by the Tenant or his contractor on the job under the provisions of the Workers Compensation Act; and

 

(b)                                 a contractors all risk policy in respect of the Tenant’s works to the full value of them for the time being;

 

10.6.7              if required by the Landlord on completion of the installation of the Tenant’s Property, give the Landlord a certificate by a consultant approved by the Landlord at the cost of the Tenant that the work accords with:

 

(a)                                 the drawings and specifications in respect of it;

 

(b)                                 the requirements of all relevant government agencies;

 

10.6.8              pay all costs for the installation of the Tenant’s Property and any alterations or additions to the Premises or the Building made necessary by their installation; and

 

10.6.9              at the Tenant’s expense, keep and maintain the Tenant’s Property in good repair and condition.

 

10.7                                Occupation prior to Commencement Date

 

Deleted.

 

10.8                                Alterations or additions to Landlord’s Property

 

10.8.1              Despite any other provision in this Lease, the Tenant must not install or make any connections:

 

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(a)                                 to existing water, gas, fire protection or electrical fixtures, equipment or appliances;

 

(b)                                 to any existing apparatus for illuminating, air conditioning, heating, cooling or ventilating the Premises;

 

(c)                                  which interfere with any drains, water supply or other services connected to the Premises,

 

without the Landlord’s prior reasonable approval.

 

10.8.2              The Tenant must comply with clause 10.6.5 in relation to the works contemplated by clause 10.8.1.

 

10.8.3              If the Tenant installs or makes any connections in breach of this clause, the Tenant must pay to the Landlord all costs incurred by the Landlord in repairing any damage caused by that installation or connection.

 

10.9                                Work health and safety

 

10.9.1              If the Tenant carries out any works within or about the Premises:

 

(a)                                 which falls within the definition of constructions work under the Work Health and Safety Regulation 2011 (NSW); and

 

(b)                                 the cost of that work exceeds $250,000.00 and/or the work or any part of it falls within the definition of high risk constructions work under the Work Health and Safety Regulation 2011 (NSW),

 

the Landlord appoints the Tenant as the principal contractor for the relevant construction work for the purposes of the Work Health and Safety Regulation 2011 (NSW). This appointment begins at the commencement of the relevant work and ends on its completion.

 

10.9.2              As principal contractor, the Tenant:

 

(a)                                 is responsible for the relevant work until it is completed; and

 

(b)                                 must ensure that the relevant work is carried out in accordance with the requirements of the Work Health and Safety Act 2011 (NSW) and the Work Health and Safety Regulation 2011 (NSW).

 

11.                                       Indemnities and releases

 

11.1                                Risk

 

The Tenant occupies and uses the Premises at its own risk. All Tenant’s Property which may be in the Premises or outside the Premises but used in conjunction with the Permitted Use is at the sole risk of the Tenant.

 

11.2                                Release

 

The Tenant agrees that the Landlord is not responsible for and releases the Landlord and its contractors from liability in respect of the death of, injury to, loss of or damage to any property or persons in or about the Premises except to the extent that the relevant damage, injury or loss was caused by any negligence of the Landlord.

 

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11.3                                Indemnities

 

The Tenant must indemnify and keep the Landlord indemnified from and against all liabilities, actions, claims, demands, losses, damages, proceedings, costs, charges and expenses in respect of or arising from:

 

11.3.1              any loss, damage, death or injury to property or person inside or outside the Premises caused by the act, omission or negligence of the Tenant and persons under its control;

 

11.3.2              the use and occupation of the Premises by the Tenant;

 

11.3.3              the negligent or careless use, misuse, waste or abuse of the water, gas, electricity, lighting or other services and facilities of the Premises or the Building by the Tenant and persons under its control;

 

11.3.4              overflow or leakage or penetration of water (including rain water) of any kind originating from inside or outside the Premises caused or contributed to by the Tenant an persons under its control;

 

11.3.5              any faulty or defective Tenant’s Property; or

 

11.3.6              any breach of this Lease by the Tenant (in particular, all of the essential terms stated in clause 16.1),

 

except to the extent that the relevant damage, injury or loss was caused by any negligence of the Landlord.

 

11.4                                Independence

 

Each indemnity is independent from the Tenant’s other obligations and continues during this Lease and after it expires or is terminated. The Landlord may enforce an indemnity before incurring expense.

 

12.                                       Insurances

 

12.1                                Insurance Policies - Public Risk

 

The Tenant must have current throughout the Term:

 

12.1.1              a public risk insurance policy containing terms that are commonly used by reputable insurers in the State of New South Wales; and

 

12.1.2              for the amount of $20,000,000.00 in respect of any single event or accident or for such higher amount as the Landlord (acting reasonably) may require at any time.

 

12.2                                Insurance Policies - other

 

The Tenant must have current throughout the Term:

 

12.2.1              a plate glass insurance policy in respect of all plate glass forming part of the Premises for its replacement value;

 

12.2.2              an industrial special risks insurance policy for the usual risks and covering all of the Tenant’s Property and stock in trade in the Premises; and

 

12.2.3              a workers’ compensation insurance policy required by law.

 

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12.3                                Insurance requirements

 

All insurance policies (other than the workers compensation insurance policy) the Tenant must have current throughout the Term must:

 

12.3.1              be established with one or more insurance companies which are respectable, reputable and financially sound, approved by the Landlord (such approval not to be unreasonably withheld);

 

12.3.2              note the interests of the Landlord;

 

12.3.3              cover the Landlord’s and Tenant’s interests;

 

12.3.4              not be varied or cancelled without the prior approval of the Landlord;

 

12.3.5              be on terms that are acceptable to the Landlord (acting reasonably); and

 

12.3.6              if requested by the Landlord, include the interest of any mortgagee.

 

12.4                                Evidence

 

12.4.1              No later than 10 Business Days after any request by the Landlord, the Tenant must provide to the Landlord with a certificate of currency (or such other evidence as the Landlord may reasonably require) for any insurance that must be established and maintained under this Lease:

 

12.4.2              The Tenant must promptly give to the Landlord notice of:

 

(a)                                 the Tenant’s intention to cancel, replace or alter any insurance effected by the Tenant in accordance with this clause;

 

(b)                                 any notice or correspondence received by the Tenant from an insurer indicating its intention to cancel or materially alter any of those insurances;

 

(c)                                  the occurrence of any fact or event which may not be known to the Landlord and:

 

(i)                                     may give rise to a claim against the Landlord or the Tenant, which may be covered by any one of those insurances;

 

(ii)                                  may prejudice the entitlement to claim under any of those insurances; or

 

(iii)                               should be disclosed to the insurer and may affect its decision to continue to insure the Tenant or the risk.

 

13.                                       Assignment

 

13.1                                No sublease, mortgage etc

 

Without the Landlord’s prior consent, the Tenant must not:

 

13.1.1              grant any licence or concession in respect of the Premises;

 

13.1.2              part with possession of the Premises; or

 

13.1.3              mortgage, charge or encumber the Tenant’s interest in this Lease.

 

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13.2                                Grounds for the Landlord withholding consent to an assignment

 

Without the Landlord’s prior consent such consent not being unreasonably withheld the Tenant must not assign this Lease. The Landlord is entitled to withhold consent to an assignment if:

 

13.2.1              the proposed assignee intends to change the use of the Premises;

 

13.2.2              the proposed assignee does not have in the opinion of the Landlord sufficient financial resources to meet its obligations under this Lease; or

 

13.2.3              the requirements set out in clause 13.3 are not satisfied.

 

13.3                                Landlord’s consent to assignment

 

The Landlord’s consent to an assignment does not take effect unless and until:

 

13.3.1              a deed in a form and containing such provisions as are reasonably required by the Landlord is entered into by the Tenant, the proposed assignee, the Landlord and any incoming or outgoing guarantors;

 

13.3.2              any arrears of Rent or other moneys due but unpaid under this Lease at the time of the assignment have been paid;

 

13.3.3              the proposed assignee delivers to the Landlord any lease security that is reasonably required by the Landlord; and

 

13.3.4              all reasonable costs incurred by the Landlord in relation to the proposed assignment of this Lease are paid by the Tenant (whether or not the proposed assignment proceeds to completion).

 

13.4                                Sublease

 

The Tenant must not enter into any sublease of the whole or any part of the Premises without the prior consent of the Landlord such consent not being unreasonably withheld. The Landlord is entitled to withhold consent to a sublease if:

 

13.4.1              the proposed sublessee intends to change the use of the Premises;

 

13.4.2              a deed in a form and containing such provisions as are reasonably required by the Landlord is not entered into by the Tenant, the proposed sublessee, the Landlord and any incoming guarantors of the sublessee;

 

13.4.3              any arrears of Rent or other moneys due but unpaid under this Lease at the time of the granting of the sublease have not been paid;

 

13.4.4              all reasonable costs incurred by the Landlord in relation to the proposed sublease and the granting of the consent of the Landlord have not been paid by the Tenant;

 

13.4.5              the rent to be paid under the sublease is not in the reasonable opinion of the Landlord market rent at the date of the granting of the sublease (unless the Tenant provides written confirmation to the Landlord that the rent to be paid under the sublease is below the current market rent) or in the reasonable opinion of the Landlord the sublease is not otherwise on reasonable terms and conditions including that the term of the sublease must expire no later than the termination of this Lease; and

 

13.4.6              the sublease does not provide that the term of the sublease will terminate if the Lease terminates.

 

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13.5                                Restriction on transfer of shares

 

13.5.1              If the Tenant is a corporation (other than a corporation listed on the Australian Stock Exchange (ASX)), a change in effective control of the Tenant (by way of change in 51 % or more of the shareholding ownership or otherwise) is deemed to be an assignment of this Lease, to which clauses 13.2 and 13.3 apply. The Landlord’s decision as to whether there has been a change in effective control of the Tenant is decisive. For the voidance of doubt, a change in effective control of the parent or holding company of the Tenant does not constitute a change in effective control of the Tenant, and is therefore not deemed to be an assignment of this Lease to which clauses 13.2 and 13.3 apply.

 

13.5.2              If the Tenant is a corporation listed on the ASX, then before delisting the Tenant must:

 

(a)                         notify the Landlord of the delisting; and

 

(b)                         deliver to the Landlord such lease security as the Landlord may reasonably require.

 

14.                                       Damage

 

14.1                                Damage consequences

 

If the Building or the Premises are damaged or destroyed and as a result the Tenant’s ability to access or use the Premises are diminished:

 

14.1.1              subject to clause 14.4, the Landlord must reduce the Rent and other moneys payable under this Lease by a reasonable amount having regard to the nature and extent of the damage or destruction until this Lease comes to an end or the Premises are again fit for use;

 

14.1.2              the Tenant must continue to occupy and use any part of the Premises that remains useable, safe and accessible, and comply with this Lease to the extent possible; and

 

14.1.3              subject to clause 14.4, the Tenant may give a notice to the Landlord asking for the damage or destruction to be repaired.

 

14.2                                Landlord entitlements

 

14.2.1              If the Building or the Premises are damaged or destroyed the Landlord:

 

(a)                                 may (but is not obliged to) repair the damage or destruction;

 

(b)                                 must give the Tenant a notice within 3 months of the damage or destruction notifying whether the Landlord intends to repair or rebuild the damage or destruction as the case may be; or

 

(c)                                  may terminate the Lease by giving the Tenant not less than 1 month’s notice expiring on any day where the Landlord forms the opinion that the repair of the damage or destruction is impracticable or undesirable.

 

14.2.2              The Landlord is not liable to pay any compensation to the Tenant if the Building or the Premises are damaged or destroyed or if the Lease is ended as a result.

 

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14.3                                Tenant’s entitlements

 

Subject to clause 14.4, the Tenant may terminate this Lease by giving the Landlord not less than 1 month’s notice expiring on any day if the Landlord gives the Tenant a notice under clause 14.2.1(b) and fails to repair the damage or destruction within a reasonable time after having given that notice.

 

14.4                                Limitation on the Tenant’s entitlements

 

Despite anything else contained in this Lease, the Tenant is not entitled to give notices under clauses 14.1.3 and 14.3 if:

 

14.4.1              the damage or destruction or loss of access has been caused or contributed to by any act or omission of the Tenant; or

 

14.4.2              as a consequence of the act or omission of the Tenant any policy or policies of insurance relating to the Building are voided or payment of monies under any policy or policies of insurance effected on the Building is refused by the insurer, in which event the Landlord is entitled to recover damages from the Tenant for that damage, destruction, loss, act or omission even if this Lease is terminated.

 

14.5                                Resumption

 

Either the Landlord or the Tenant may terminate this Lease by giving the other party not less than 1 month’s notice expiring on any day if a governmental agency resumes the Premises or the Building (or any part of them) and in doing so makes the Premises unfit for the Tenant’s use. The Landlord is not liable to pay the Tenant any compensation because of resumption but the Tenant may make its own claim for compensation from the resuming authority.

 

15.                                       Expiry or termination of term

 

15.1                                Tenant to yield up and remove its fittings

 

On the earlier of the Terminating Date and the date on which this Lease is terminated, the Tenant must return the Premises to the Landlord clean and in good repair and condition having regard to fair wear and tear and their condition at the commencement of the Term, or the term of the initial lease if this Lease is a renewal under an option, with all moveable furnishings and equipment of the Tenant removed but the Tenant shall not otherwise be required to undertake any make good and the Tenant’s Property will otherwise become the property of the Landlord. The Tenant must ensure that any of the Tenant’s Property is not subject to any financial encumbrance.

 

15.2                                Tenant not to cause damage

 

15.2.1              The Tenant must:

 

(a)                                 use its best endeavours not to cause or contribute to any damage to the Premises in the removal of the Tenant’s moveable furnishings and equipment, and make good any damage; and

 

(b)                                 leave the Premises in a clean state and condition.

 

15.2.2              If the Tenant fails to comply with clause 15.2.1, the Landlord may undertake that work in the Premises at the cost of and as agent for the Tenant and recover from the Tenant the cost to the Landlord of doing so as a liquidated debt payable on demand.

 

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15.3                                Failure by Tenant to remove Tenant’s moveable furnishings and equipment

 

If the Tenant fails to remove the Tenant’s moveable furnishings and equipment as required by clause 15.1, or in the event of determination under clause 16, the Landlord may:

 

15.3.1              cause the Tenant’s moveable furnishings and equipment to be removed and stored in the manner the Landlord in its absolute discretion thinks fit at the risk and at the cost of the Tenant; or

 

15.3.2              treat the Tenant’s moveable furnishings and equipment as if the Tenant had abandoned its interest in them and they had become the property of the Landlord, and deal with them in the manner the Landlord thinks fit without being liable in any way to account to the Tenant for them.

 

15.4                                Tenant to indemnify and pay Landlord’s costs

 

The Tenant:

 

15.4.1              indemnifies the Landlord for:

 

(a)                                 the removal and storage of the Tenant’s moveable furnishings and equipment; and

 

(b)                                 all Demands which the Landlord may suffer or incur at the suit of any person (other than the Tenant) claiming an interest in the Tenant’s moveable furnishings and equipment by reason of the Landlord acting in any manner permitted under clause 15.3; and

 

15.4.2              must pay to the Landlord as a liquidated debt on demand any costs incurred by the Landlord in exercising its rights under clause 16, including any excess of costs over money received in the disposal of the Tenant’s moveable furnishings and equipment under clause 15.3.

 

16.                                       Default

 

16.1                                Essential terms

 

Each obligation of the Tenant under this Lease to pay money and to provide security to the Landlord and its obligations under clauses 9.1, 9.3, 9.4, 10.1, 11.3, 12.1, 13.1, and 19 are essential terms of this Lease. Other obligations under this Lease may also be essential terms.

 

16.2                                Default events

 

It is default under this Lease if:

 

16.2.1              the Tenant repudiates its obligations under this Lease;

 

16.2.2              the Tenant does not comply with any Tenant’s Obligations or any term of this Lease (whether or not it is an essential term) and, in the Landlord’s reasonable opinion:

 

(a)                                 the non-compliance can be remedied, but the Tenant does not remedy it to the Landlord’s reasonable satisfaction within a reasonable time after the Landlord gives the Tenant notice to remedy it;

 

(b)                         the non-compliance cannot be remedied or compensated for;

 

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(c)                                  the non-compliance cannot be remedied but the Landlord can be compensated and the Tenant does not pay the Landlord compensation satisfactory to the Landlord for the breach within 10 Business Days after the Landlord gives the Tenant notice to pay it; or

 

16.2.3              an Insolvency Event occurs for the Tenant or any Guarantor.

 

16.3                                Consequences of default

 

If there is default under this Lease, the Landlord may (in addition to any rights it otherwise has at law):

 

16.3.1              terminate this Lease by notice to the Tenant or re-entering the Premises;

 

16.3.2              re-enter and take possession of the Premises;

 

16.3.3              remedy the breach at the Tenant’s expense and enter and remain on the Premises for this purpose;

 

16.3.4              use any lease security (including any Bank Guarantee) held by the Landlord to recover any loss suffered by the Landlord because of the default; and

 

16.3.5              recover from the Tenant or the Guarantor any cost, loss or liability suffered by the Landlord because of the default.

 

16.4                                Recovery of loss

 

If the Landlord terminates this Lease and re-enters and takes possession of the Premises, the Landlord may recover from the Tenant or any Guarantor:

 

16.4.1              all arrears of money payable by the Tenant up to the date of termination;

 

16.4.2              interest owing on any money due but unpaid;

 

16.4.3              all costs (including the Landlord’s administration and legal costs) incurred by the Landlord in rectifying any default and/or enforcing any rights or security;

 

16.4.4              all costs incurred by the Landlord in connection with any failure of the Tenant to comply with clause 15 or locating a new tenant or both; and

 

16.4.5              the difference between the money that would have been payable under this Lease to the Landlord from the date of termination until the Expiry Date, and any money the Landlord actually receives or reasonably anticipates that it is likely to receive as rent from another lessee of the Premises for that part of the Term that had not expired at the date of termination.

 

16.5                                No restriction or waiver

 

The rights and entitlements conferred on the Landlord by this clause 16 or otherwise at law or their exercise:

 

16.5.1              do not restrict or prevent the Landlord from recovering loss or damage from the Tenant or from any security provided by or on behalf of the Tenant or from exercising any other right or remedy which the Landlord has or may acquire; and

 

16.5.2              are not adversely affected by:

 

(a)                                 granting the Tenant any concession, indulgence, forbearance or time to pay;

 

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(b)                                 any compounding or compromise reached or attempted to be reached with the Tenant;

 

(c)                                  any acceptance of any moneys by the Landlord whether paid by the Tenant or by any other person;

 

(d)                                 any postponement non exercise or alteration of any right or remedy available to the Landlord;

 

(e)                                  any alteration to this Lease agreed by the Landlord; or

 

(f)                                   the Landlord re taking possession of the whole or any part of the Premises by any means.

 

17.                                       Rules

 

17.1                                Tenant to comply with the Rules

 

17.1.1              The Tenant must comply with the Rules and cause persons under its control to comply with the Rules.

 

17.1.2              Any failure to comply with the Rules constitutes a breach of this Lease as if the Rules were contained in it as covenants with the Landlord.

 

17.2                                Landlord Not Liable for Loss or Damage

 

The Tenant acknowledges that the Landlord is not liable for any loss or damage caused by any failure on the Landlord’s part to enforce the Rules against any other person who may be bound by them in the Building.

 

17.3                                Landlord’s Right to Amend Rules

 

17.3.1              The Landlord reserves the right at any time to amend, add to, cancel or suspend the Rules as they exist from time to time.

 

17.3.2              Any change to the Rules will not bind the Tenant until the Landlord gives notice of the change to the Rules to the Tenant. No Rule or any change to the Rules will bind the Tenant if they are inconsistent with or derogate in a material way from the Tenant’s rights under this Lease.

 

18.                                       Guarantee

 

Deleted.

 

19.                                       Bank guarantee

 

19.1                                Definitions

 

In this clause:

 

Account means an interest bearing account in a Bank held on trust for the Landlord and the Tenant.

 

Bank means a bank holding an Australian Banking Licence carrying on business in Sydney.

 

Bank Guarantee means an unconditional, enforceable and irrevocable undertaking from the Bank:

 

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19.1.1              in a form reasonably approved by the Landlord;

 

19.1.2              in favour of the Landlord;

 

19.1.3              with no expiry date or an expiry date no earlier than 66 months after the Commencement Date; and

 

19.1.4              stating that the bank guarantee is security for the Tenant’s obligations under the Lease of the Premises.

 

Initial Amount means the amount stated in Item 12(a).

 

Payment means unconditional payment by the Bank to the Landlord.

 

Security Amount means the amount equal to the number of months’ Rent stated in Item 12(b) and at the Commencement Date is the amount stated in Item 12(a).

 

19.2                                Bank Guarantee

 

if, pursuant to the terms of this Lease, the Tenant is required to provide to the Landlord a Bank Guarantee, the Tenant must deliver to the Landlord on or before execution of this Lease a Bank Guarantee securing payment of the Initial Amount.

 

19.3                                Security Amount

 

At all times during the Term, the Landlord is entitled to hold a Bank Guarantee(s) securing Payment of the Security Amount.

 

19.4                                Further or Replacement Bank Guarantee

 

If, pursuant to the terms of this Lease the Landlord has drawn down on the Bank Guarantee, within 20 Business Days of the Landlord’s written notice to the Tenant, the Tenant must deliver to the Landlord an additional or replacement Bank Guarantee so that the Landlord holds a Bank Guarantee(s) securing Payment of the Security Amount.

 

19.5                                Payment of the Security Amount

 

19.5.1              The Security Amount or any part thereof as determined from time to time by the Landlord but not exceeding in aggregate the Security Amount, is payable to the Landlord upon failure by the Tenant to duly and punctually pay Rent or other monies reserved by this Lease or for the Tenant’s failure, breach, non-performance or non-observance of any of its obligations under this Lease.

 

19.5.2              The Landlord must use the amount drawn down from the Bank Guarantee to rectify the Tenant’s breach of this Lease.

 

19.5.3              Payment to the Landlord of all or part of the Security Amount is without reference by the Bank to the Tenant and notwithstanding notice from the Tenant to the Bank not to pay the Landlord.

 

19.6                                No Waiver

 

19.6.1              Notwithstanding anything express or implied to the contrary, acceptance of the Bank Guarantee or payment thereunder shall not thereby affect or limit the rights of the Landlord hereunder or operate as a waiver of the Tenant’s failure to rectify a breach, non-performance or non-observance.

 

19.6.2              Any part of the Bank Guarantee so paid and determined by the Landlord to be in excess of the Landlord’s loss, damages and expenses by reason of the Tenant’s

 

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aforesaid failure, breach, non-performance or non-observance shall be accounted for to the Tenant.

 

19.7                                Make Good

 

If, upon the Tenant vacating the Premises, the Tenant has satisfied its obligations under clause 15 of this Lease and is not in default of any of its other obligations under this Lease and the Landlord is not required to draw down on the Bank Guarantee to rectify the Tenant’s default the Landlord shall promptly release the Bank Guarantee to the Tenant.

 

19.8                                Assignment

 

If during the term of this Lease the Landlord transfers its ownership in the Building and the Landlord provides a notice to the Tenant requiring a replacement Bank Guarantee in favour of the new lessor the Tenant must do all things necessary to effect the same within 30 Business Days of the Landlord serving such notice.

 

20.                                       General

 

20.1                                Notices

 

20.1.1              A notice or other communication required or permitted, under this Lease, to be given to a person may be given in accordance with section 170 of the Conveyancing Act, 1919.

 

20.1.2              Any notice or communication to the Tenant must be sent to the attention of the Tenant’s General Counsel.

 

20.2                                Amendment

 

This Lease may only be varied or replaced by a deed duly executed by the Parties.

 

20.3                                Entire understanding

 

This Lease contains the entire understanding between the Parties as to the subject matter contained in it. All previous agreements, representations, warranties, explanations and commitments, expressed or implied, affecting this subject matter are superseded by this Lease and have no effect.

 

20.4                                Further assurance

 

Each Party must promptly execute and deliver all documents and take all other action necessary or desirable to effect, perfect or complete the transactions contemplated by this Lease.

 

20.5                                Waiver and exercise of rights

 

A single or partial exercise or waiver of a right relating to this Lease does not prevent any other exercise of that right or the exercise of any other right. No Party will be liable for any loss or expenses incurred by another Party caused or contributed to by the waiver, exercise, attempted exercise, failure to exercise or delay in the exercise of a right.

 

20.6                                No relationship

 

No Party to this Lease has the power to obligate or bind any other Party. Nothing in this Lease will be construed or deemed to constitute a partnership, joint venture or employee, employer or representative relationship between any of the Parties.

 

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20.7                                Survival and enforcement of indemnities

 

Each indemnity in this Lease is a continuing obligation, separate and independent from the other obligations of the Parties and survives termination of this Lease. It is not necessary for a Party to incur expense or make payment before enforcing a right of indemnity conferred by this Lease.

 

21.                                       Option to renew

 

21.1                                Conditions for grant of further term

 

The Landlord offers a renewal of this Lease to the Tenant on the terms specified in this clause 21.1 which the Tenant must strictly accept in accordance with this clause 21.1, otherwise this offer will lapse. The Tenant may only accept this offer and exercise the option if:

 

21.1.1              the Tenant gives the Landlord a notice stating that it wants a new lease of the Premises for the option term specified in Item 13(a);

 

21.1.2              the Landlord receives that notice within the period beginning on the day that is 12 months before the Expiry Date and ending on the day that is 6 months before the Expiry Date;

 

21.1.3              when the Tenant gives that notice, and from that time until the Expiry Date, the Tenant is not in breach of this Lease or if in breach, that breach has been waived;

 

21.1.4              if this Lease is guaranteed by the Guarantor, the renewal of this Lease is conditional on the Guarantor under this Lease providing a further guarantee for the option term; and

 

21.1.5              if under this Lease, the Tenant must provide a Bank Guarantee, the renewal of this Lease is conditional upon the Tenant providing before the Expiry Date under this Lease a Bank Guarantee for the Security Amount which will be required under the new lease but if by that date the Rent has not been agreed or determined, the Landlord must continue to hold the current Bank Guarantee and the Tenant must provide a new Bank Guarantee once the new Rent is agreed or determined but if the new Rent has not been agreed or determined by any expiry date in the current Bank Guarantee, the Tenant must provide the Landlord with a replacement Bank Guarantee with an extended expiry date of no less than 6 months at all times until the new Rent is agreed or determined and the new Bank Guarantee provided.

 

21.2                                Terms of new lease

 

The new lease is to be on terms similar to this Lease except that:

 

21.2.1              Clause 21 shall be deleted and Item 13 shall provide, “Not applicable”;

 

21.2.2              the Term, the Commencement Date and the Expiry Date will be changed to the date of commencement and expiration of the further term respectively;

 

21.2.3              the Rent from the commencement date of the new lease is the current market rent of the Premises to be determined in accordance with clause 6.4 as if the commencement date of the new lease is a Rent Review Date on which a market rent review was to be conducted;

 

21.2.4              the Base Year stated in Item 9(b) is updated to the Outgoings Year current as at the time at which the market rent review is being conducted if a market rent

 

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review is conducted to determine the Rent payable at the beginning of the new lease;

 

21.2.5              the new lease must reflect any variations to this Lease which became effective during the Term;

 

21.2.6              clause 24 will be deleted;

 

21.2.7              the amount to be inserted in Item 12(a) will be the Security Amount;

 

21.2.8              in the definition of Bank Guarantee in clause 19.1 “66” shall be changed to “44”;

 

21.2.9              Item 7A will be amended to provide that the Rent Commencement Date shall be the Commencement Date.

 

21.3                                Bank Guarantee

 

If the Bank Guarantee furnished by the Tenant under clause 21.1.5 is greater or lesser than the Security Amount as provided in the new lease either Party may require the other to exchange the Bank Guarantee furnished under clause 21.1.5 with a new Bank Guarantee which is for the Security Amount as provided in the new lease.

 

22.                                       Service charges for operation outside Normal Business Hours

 

If the Tenant uses the Premises outside Normal Business Hours and requests use of a Service provided by the Landlord during those hours the Landlord must:

 

22.1.1              use its reasonable endeavours to supply the requested Service; and

 

22.1.2              apportion to the Tenant the costs and expenses incurred by the Landlord in connection with the supply of the requested Service and give the Tenant an invoice for such costs and expenses. The Tenant must pay any such invoice according to its terms.

 

23.                                       Air Conditioning Plant and Elevators

 

23.1                                Operational

 

23.1.1              The Landlord must use its reasonable endeavours to ensure that the Air Conditioning Plant and the Elevators are working and reasonably available for the use during Normal Business Hours and during such other hours as the Landlord may reasonably determine from time to time.

 

23.1.2              The Tenant must at all times:

 

(a)                                 comply with and observe the Landlord’s reasonable requirements for the use of the Air Conditioning Plant or Elevators or both; and

 

(b)                                 not do nor allow anything to be done which might interfere with or impair the efficient operation of the use of the Air Conditioning Plant or Elevators or both.

 

23.1.3              After having been given reasonable notice (except in the case of an emergency when no notice is required), the Tenant must allow the Landlord and the persons authorised by the Landlord to enter the Premises at any time to examine, maintain and repair or install or replace all or any of the Air Conditioning Plant or the Elevators.

 

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23.2                                No Warranty

 

The Landlord does not in any way warrant that the Air Conditioning Plant or the Elevators or both are or will remain suitable or adequate for any of the purposes of the Tenant. To the fullest extent permitted by law all warranties as to suitability and as to adequacy are expressly negatived.

 

23.3                                No liability

 

This clause 23 imposes no liability on the Landlord because of any delays or stoppages in the operation of the Air Conditioning Plant or the Elevators due to repairs, maintenance, strikes, accidents or any other unavoidable cause provided that the City has used all reasonable endeavours to have the Air Conditioning Plant and the Elevators operational as soon as practicable.

 

23.4                                Service charges for operation outside Normal Business Hours

 

If the Tenant uses the Premises outside Normal Business Hours and requests use of the Air Conditioning Plant or the Elevators or both during those hours the Landlord may:

 

23.4.1              use its reasonable endeavours to make available for use the Air Conditioning Plant or the Elevators or both; and

 

23.4.2              apportion to the Tenant any costs and expenses incurred by the Landlord in connection with the supply of the Air Conditioning Plant or the Elevators or both and give the Tenant an invoice for such costs and expenses. The Tenant must pay any such invoice according to its terms which must be reasonable.

 

24.                                       Rental rebate

 

24.1                                Personal right

 

The Parties agree that the provisions contained under this clause 24 only apply whilst Atlassian Pty Ltd ACN 102 443 916 is the Tenant under this Lease.

 

24.2                                Rental rebate

 

24.2.1              Despite any other provision in this Lease to the contrary, during the Term (but excluding any period of holding over) the Landlord will provide to the Tenant a Rent rebate of $1,874,104.26 to be allowed by equal monthly instalments commencing on the instalment of Rent due on the Rent Commencement Date of $36,040.47 (Rebate) being a period of 52 months. The Rent-free period under Item 7A will be taken into account in determining any repayment under clause 24.2.2.

 

24.2.2              If this Lease is terminated prior to the Expiry Date due to a default by the Tenant under clause 16.2 the Tenant must repay the Rebate and the value of the Rent-free period to the Landlord on a pro rata basis calculated in accordance with the following formula:

 

R = A x (B/C)

 

Where:

 

R =                             the amount to be repaid by the Tenant

 

A =                             the total Rebate paid by the Landlord up to the date that this Lease is terminated either as Rent-free or as a Rebate under clause 24.2.1

 

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B =                             the number of days from the date that the Lease is terminated to the Expiry Date

 

C =                             the number of days in the Term.

 

24.2.3              If the Tenant breaches an essential term of this Lease, the Landlord may, in its discretion cease to allow the Rebate and if applicable any Rent-free from the date of the breach of the essential term until the Tenant has rectified that breach.

 

25.                                       Green leasing provisions

 

25.1                                Cooperation to implement environmental efficiencies

 

The Landlord and Tenant acknowledge and agree that they will:

 

25.1.1              cooperate to ensure the ongoing use and operation of the Building minimises environmental impacts and the Building and the Premises are managed in a way which is as sustainable and efficient as is reasonably possible for energy and water usage, greenhouse gas emission and waste generation in accordance with the environmental targets contained within Sustainable Sydney 2030 being the policy of the Council of the City of Sydney as published by the City from time to time;

 

25.1.2              consult with each other on issues and circumstances that may enhance the environmental performance of the Building and consider undertaking all such opportunities which are expected to have a positive impact on the work environment (subject to an analysis of costs and benefits);

 

25.1.3              constructively consult with each other on issues or circumstances that may detract from the improvement of the environmental performance of the Building; and

 

25.1.4              agree on targets and strategies for the Buliding to:

 

(a)                                 promote the efficient use of resources in the Building;

 

(b)                                 reduce energy and water use;

 

(c)                                  improve waste management by maximising recycling and composting; and

 

(d)                                 support a healthy internal environment by minimising reliance on mechanical heating, cooling and lighting systems.

 

25.2                                NABERS

 

The Landlord may at its cost establish (where applicable) a National Australian Built Environment Rating System (NABERS) certification for the Building, and will endeavour to continually improve the Building’s NABERS rating towards an optimal performance.

 

25.3                                NABERS rating

 

The Landlord will keep the Tenant informed of the NABERS rating of the Building and of any initiatives being considered by the Landlord, from time to time, to improve the environmental performance of the Building.

 

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25.4                                Landlord upgrades

 

The Landlord will provide reasonable environmental endeavours with regard to maintaining and upgrading the Building including any capital works upgrades of the Building (including services, systems, plant and equipment) so as to effectively manage energy consumption in the Building and achieve energy consumption improvements in the Building.

 

25.5                                Tenant use of water and power

 

The Tenant will at its cost, use reasonable endeavours to limit energy and water consumption, and provide to the Landlord any information necessary or reasonably required by the Landlord to report on the environmental status of the Building.

 

25.6                                Fit out efficiency

 

The Tenant will at its cost, incorporate energy, water and indoor environmental quality performance criteria into the fit out design and equipment selection that support green leasing principles.

 

25.7                                Apply when City of Sydney is the Landlord

 

These green leasing provisions only apply whilst the City of Sydney is the Landlord. A subsequent landlord may adopt all or some of the above provisions of this Lease by giving written notice to the Tenant.

 

25.8                                Failure to comply not an event of default

 

The Landlord and the Tenant acknowledge and agree that the compliance by the Tenant with this clause 25 is not mandatory and a failure by the Tenant to do so will not be considered to be a breach or default of the lease by the Tenant however the Tenant will at all times use reasonable and best endeavours to comply with this clause 25 subject to the costs to or the obligations on the Tenant in doing so not being unreasonably excessive or onerous as reasonably determined by the Tenant.

 

26.                                       Heritage Listed Building

 

26.1.1              The parties acknowledge that the Building is listed in the State Heritage Register and that the provisions of the Heritage Act 1977 (NSW) apply to the Building.

 

26.1.2              In addition to any other provision set out in this Lease, the Tenant must obtain the Consent of the Heritage Branch of the Department of Planning in accordance with the Heritage Act 1977 (NSW) to any Proposed Work to the Premises and pay all associated Costs, including any Costs incurred by the Landlord of and incidental to the same.

 

26.1.3              The Tenant covenants to abide by all restrictions, directions, requirements or Orders which may be made by the Heritage Branch of the Department of Planning or otherwise pursuant to the Heritage Act 1977 (NSW) in connection with the Premises, Building or Land and hereby releases the Landlord.

 

26.1.4              The Tenant covenants that it has obtained the Consent of the Heritage Branch of the Department of Planning to undertake its business from the Premises in accordance with the Permitted Use.

 

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27.                                       Possible entry 341 George Street

 

The Landlord acknowledges that the Tenant has requested that the Landlord consider any application by the Tenant to achieve a direct entry from one level of the Premises to the adjoining building 341 George Street, Sydney. The Landlord will reasonably consider any such request including but not limited to:

 

27.1.1              the Tenant obtaining any necessary development approval from the Landlord acting in its statutory capacity;

 

27.1.2              the premises within 341 George Street, Sydney to which access will be obtained being held under a lease by the Tenant and no other party;

 

27.1.3              the works being undertaken at the entire expense of the Tenant;

 

27.1.4              the specifications for the works being approved by the Landlord exercising reasonable discretion but which will include the requirement of certifications by a structural engineer that the works will not damage the integrity of the Building and be capable of being reinstated without any ongoing damage to the Building;

 

27.1.5              the Tenant producing the consent of the landlord of 341 George Street to the works and that owner and the Landlord entering into such separate deed as either may require in relation to the works; and

 

27.1.6              the works being made good at the expense of the Tenant to such reasonable specifications as required by the Landlord and to be completed prior to the Expiry Date or earlier termination of this Lease or prior to the date that the adjoining premises in 341 George Street cease to be held under a lease by the Tenant.

 

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Rules

 

1.                                      The Tenant must not in any way obstruct or permit the obstruction of the pavement entry, arcade, vestibules, corridors, passages, halls, elevators, stairways, fire doors and escape doors relating to the Building or use them or any of them for any purposes other than for ingress and egress.

 

2.                                      The Tenant must not cover or obstruct the floors, skylights, glazed panels, ventilators and windows that reflect or admit light or air into passageways or into part of the Building.

 

3.                                      The Tenant must not inscribe, paint, display or affix any sign, advertisement, name, flagpole, flag or notice on any part of the outside or inside of the Building except with the consent of the Landlord and then only of such colour, size and style and in such place or places as shall be first approved by the Landlord.

 

4.                                      No window blinds, no window screens or awnings shall be erected without the consent of the Landlord.

 

5.                                      Except with the consent of the Landlord no musical instruments shall be played in or about the Building, but this Rule shall not prohibit the Tenant from playing background recorded music or music associated with the Permitted Use provided that the volume is kept at a level which does not cause a nuisance or annoyance to other tenants or users of the Building.

 

6.                                      The Tenant must not throw anything out of the windows or doors or down the elevator shafts, passages or skylights or into any light areas of the Building or deposit waste paper or rubbish anywhere except in proper receptacles or place upon any sill, ledge or other like part of the Premises or Common Areas any article or substance.

 

7.                                      The Tenant must not use any method of lighting, cooling or heating other than as prescribed and fixed by the Landlord and under special arrangement made by the Landlord for such purpose and shall not cook within the Premises except within a designated kitchen area.

 

8.                                      The Tenant will use or permit to be used for the receipt, delivery or other movement of any goods, wares or merchandise or articles of bulk or quantity only such parts of the Premises and the Common Areas for such purposes and at such times as the Landlord may from time to time permit and the Tenant will generally comply with all reasonable requirements of the Landlord in regard to such matters.

 

9.                                      The Tenant must not leave any doors or windows unlocked or unfastened when the Premises are left unoccupied and the Landlord reserves the right for a person authorised by the Landlord to enter the Premises and fasten the same if left insecurely fastened.

 

10.                               The Landlord will at the expense of the Tenant provide keys for locks on doors or other openings of the Premises and 250 security cards or keys and the Tenant will return to the Landlord on the termination of the Lease all such keys and security cards whether the same have been supplied by the Landlord or otherwise acquired by the Tenant and must not permit the same at any time to come into the possession of any person other than the Tenant. The Tenant shall not alter the combination of any locks of the Premises.

 

11.                               Any additional access cards or any card required to replace a lost or damaged card will be charged at $50.00 per card.

 

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12.                               The Tenant must not use or permit to be used Common Areas for any business or commercial purpose or for the display or advertisement of any goods or services or generally for any purpose other than a purpose for which the same was intended or provided.

 

13.                               Without the consent of the Landlord no nails, screws or hooks shall be driven into any parts of the Building excluding the partitions therein of the Tenant nor shall any explosive power driven method of fixing articles to ceilings, walls or floors be used without the consent of the Landlord.

 

14.                               The Landlord shall be entitled to close the front doors of and any other entrances to the Building and keep the same closed and locked after the hours of 6.00 pm on weekdays and before the hour of 8.00 am on weekdays except on Saturdays, Sundays and public holidays when the Landlord may keep such doors and entrances closed all day. The Tenant shall be entitled to access the Building and the Premises 24 hours per day, 7 days per week by use of the security card/keys referred to in Rule 10. The Tenant shall adhere to all reasonable security precautions required by the Landlord from time to time.

 

15.                               The Tenant must comply with the Landlord’s reasonable security procedures for access to the Building as advised to the Tenant from time to time.

 

16.                               The Landlord may close the Building due to riots, civil disturbance, demonstrations or any other cause which in the opinion of the Landlord endangers or may endanger the Building or any persons in or on the Building.

 

17.                               The Tenant must appoint a floor warden for the Premises and must ensure that the Tenant and persons under its control are fully aware of all safety and emergency procedures for the Building. The Tenant must comply with any practice or test procedures and drills from time to time arranged or required by the Landlord in connection with the emergency and evacuation procedures for the Building.

 

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Signing Page

 

Executed as a deed

 

Landlord’s signature

 

Certified correct for the purposes of the Real Property Act 1900 by the person(s) named below who signed this instrument pursuant to the power of attorney specified

 

	
SIGNED   SEALED AND DELIVERED on
    	
 
    
	
behalf of Council of the City of Sydney by its
    	
 
    
	
duly appointed attorney   under power of
    	
 
    
	
attorney registered in   the office of the Registrar
    	
 
    
	
General (NSW)   No. 994 Book 4572,
    	
 
    
	
in the presence of:
    	
Signature of attorney :
    	
/s/ Marcia Claire   Doheny
    
	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Heather Turner
    	
 
    	
Full name of attorney:
    	
MARCIA CLAIRE DOHENY
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
HEATHER TURNER
    	
 
    	
 
    
	
 
    	
456 KENT STREET
    	
 
    	
 
    
	
Address:
    	
SYDNEY NSW 2000
    	
 
    	
 
    
	
 
    	
PLEASE PRINT
    	
 
    	
 
    
						

 

Witness

 

Tenant’s signature

 

Certified correct for the purposes of the Real Property Act 1900 by the person(s) named below who signed this instrument pursuant to the authority specified

 

	
EXECUTED   by Atlasslan Pty Ltd
    	
 
    
	
ACN 102 443 916 in   accordance with section
    	
 
    
	
127 of the Corporations Act 2001:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ Scott Farquhar
    	
 
    	
Signature:
    	
/s/ Mike Cannon-Brookes
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Scott Farquhar
    	
 
    	
Name:
    	
Mike Cannon-Brookes
    
	
 
    	
PLEASE PRINT
    	
 
    	
 
    	
PLEASE PRINT
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Director
    	
 
    	
Director*
    
	
 
    	
 
    	
* Delete as appropriate
    

 

48Exhibit 10.15

 

	
Form:
    	
07L
    	
 
    	
LEASE
    	
Leave this space clear.   Affix additional
    
	
 
    	
 
    	
 
    	
pages to the top   left-hand corner.
    
	
 
    	
 
    	
 
    	
New   South Wales
    	
 
    
	
 
    	
 
    	
 
    	
Real   Property Act 1900
    	
AG810431C
    

 

	
 
    	
 
    	
PRIVACY NOTE: this   information is legally required and will become part of the public record
    
	
 
    	
 
    	
 
    
	
 
    	
STAMP DUTY
    	
Office of State Revenue   use only
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(A)
    	
TORRENS TITLE
    	
Property leased:
    
	
 
    	
Auto Consol 3778-152
    
	
 
    	
PART being Levels   6, 7 and 8, 341 George Street, Sydney
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
prod
    

 

	
(B)
    	
LODGED BY
    	
Delivery
    	
Name, Address or DX and   Telephone
    	
CODE
    
	
 
    	
Box
    	
LLPN:
    	
SAI GLOBAL   Property
    	
 
    	
 
    
	
 
    	
462H
    	
123327C
    	
DX 885 SYDNEY
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
02 9210 0700
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Reference (optional):
    	
Lands — 23802440
    	
L
    
								

 

	
(C)
    	
LESSOR
    	
341   GEORGE ST PTY LTD
    
	
 
    	
ACN   128 330 192
    
	
 
    	
 
    
	
 
    	
The   lessor leases to the lessee the property referred to above.
    
	
 
    	
 
    
	
(D)
    	
Encumbrances   (if applicable):
    	
1.
    	
 
    	
 
    	
2.
    	
 
    	
 
    	
3.
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(E)
    	
LESSEE
    	
ATLASSIAN   PTY LTD
    
	
 
    	
ACN   102 443 916
    
	
 
    	
 
    
	
(F)
    	
TENANCY:
    

 

	
(G)
    	
1.
    	
TERM: TWO (2) YEARS AND   THREE (3) MONTHS
    
	
 
    	
 
    	
 
    
	
 
    	
2.
    	
COMMENCING DATE: 1 APRIL 2015
    
	
 
    	
 
    	
 
    
	
 
    	
3.
    	
TERMINATING DATE: 30 JUNE 2017
    
	
 
    	
 
    	
 
    
	
 
    	
4.
    	
With an OPTION TO RENEW for   a period of five (5) years as set out in Item 5A of the Schedule in   Annexure A hereto.
    
	
 
    	
 
    	
 
    
	
 
    	
5.
    	
With an OPTION TO PURCHASE set   out in clause                        Annexure   A
    
	
 
    	
 
    	
 
    
	
 
    	
6.
    	
Together with and reserving the RIGHTS set   out in clause                       of
    
	
 
    	
 
    	
 
    
	
 
    	
7.
    	
Incorporates the provisions or additional material   set out in ANNEXURE A                  Hereto
    
	
 
    	
 
    	
 
    
	
 
    	
8.
    	
Incorporates the provisions set out in LEASE filed at Land and Property Information New South   Wales as registered No.
    
	
 
    	
 
    	
 
    
	
 
    	
9.
    	
The RENT is set   out in Item 7 of the Commercial Terms Schedule in Annexure A hereto.
    

 

	
ALL HANDWRITING MUST BE   IN BLOCK CAPITALS
    

 

1

 

	
DATE:
    	
22/12/11
    	
 
    
	
 
    	
ddmmyyyy
    	
 
    

 

	
 
    	
Certified correct for   the purposes of the Real Property Act 1900 and executed on behalf of the   corporation named below by the authorised person(s) whose   signature(s) appear(s) below pursuant to the authority specified.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Corporation
    	
SEE   ANNEXURE “A”
    
	
 
    	
Authority
    	
section 127 of the Corporations Act 2001 (Cth)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of authorised   person
    	
Signature of authorised   person
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name of authorised   person
    	
Name of authorised   person
    
	
 
    	
Director
    	
 
    	
Director/Company   Secretary
    
	
 
    	
Office held
    	
Office held
    
	
 
    	
 
    	
 
    
	
 
    	
Certified correct for   the purposes of the Real Property Act 1900 by the corporation named below the   common seal of which was affixed pursuant to the authority specified and in   the presence of the authorised person(s) whose   signature(s) appear(s) below.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Corporation
    	
SEE   ANNEXURE “A”
    
	
 
    	
Authority
    	
section 127 of the Corporations Act 2001 (Cth)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Signature of authorised   person
    	
Signature of authorised   person
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name of authorised   person
    	
Name of authorised   person
    
	
 
    	
Director
    	
 
    	
Secretary
    
	
 
    	
Office held
    	
Office held
    
					

 

	
 
    	
 
    	
Note:
    	
where applicable,   the lessor must complete the statutory declaration below.
    

 

(I)                STATUTORY DECLARATION

 

I

 

solemnly and sincerely declare that-

 

1.              The time for the exercise of option to renew/purchase in expired lease No. has ended;

 

2.              The lessee under that lease has not exercised the option.

 

I make this solemn declaration conscientiously believing the same to be true and by virtue of the Oaths Act 1900.

 

	
Made and   subscribed at
    	
in the State of   New South Wales on
    
	
 
    	
 
    
	
 
    	
in the presence   of-
    	
 
    
				

 

 

	
Signature of   witness:
    	
Signature of   lessor:
    
	
 
    	
 
    
	
Name of witness:
    	
 
    
	
 
    	
 
    
	
Address of   witness:
    	
 
    
	
 
    	
 
    
	
Qualification of   witness: Justice of the Peace
    	
 
    

 

2

 

‘A’

 

	
Schedule to   lease
    	
 
    
	
Parties:
    	
341 GEORGE ST PTY LTD ACN 128 330 192
    	
(Landlord)
    
	
And:
    	
ATLASSIAN PTY LTD ACN 102 443 916
    	
(Tenant)
    
	
 
    	
 
    	
 
    
	
Dated:
    	
22/12/11
    	
 
    

 

Commercial Terms Schedule

 

	
Item 1
    	
The whole of the land in Auto Consol 3778-152
    
	
Land
    	
 
    
	
 
    	
 
    
	
Item 2
    	
Levels 6, 7 and 8, 341 George Street, Sydney
    
	
Premises
    	
 
    
	
 
    	
 
    
	
Item 3
    	
1 April 2015
    
	
Commencement   Date
    	
 
    
	
 
    	
 
    
	
Item 4
    	
30 June 2017
    
	
Expiry   Date
    	
 
    
	
 
    	
 
    
	
Item 5
    	
Two (2) years and three (3) months
    
	
Term
    	
 
    
	
 
    	
 
    
	
Item 5A
    	
One (1) further term of five (5) years
    
	
Option   to Renew
    	
 
    
	
 
    	
 
    
	
Item 6
    	
The same percentage that the area of the Premises   bears to the lettable area of the Building
    
	
Tenant’s   Proportion
    

 

3

 

	
 
    	
Level 6:
    
	
Item 7
    	
$544.34 per square metre of Level 6 of the Premises   per annum plus GST, subject to reviews under this lease
    
	
Base   Rent
    
	
 
    	
 
    
	
 
    	
Levels 7 & 8:
    
	
 
    	
$626.00 per square metre of Levels 7 & 8 of   the Premises per annum plus GST, subject to reviews under this lease
    
	
 
    
	
 
    	
 
    
	
 
    	
Storage Areas:
    
	
 
    	
Three (3) Storage Areas (one on each floor) of   26 m2 each   at $340.22 per square metre per annum plus GST, subject to reviews under this   lease
    
	
 
    
	
 
    	
 
    
	
Item 8
    	
On exercise of the option to renew, ie on 1   July 2017
    
	
Market   Review Dates
    	
 
    
	
 
    	
 
    
	
Item 8A
    	
On each anniversary of the Commencement Date   (including during the option period), ie on 1 April 2016, 1   April 2017, 1 July 2018, 1 July 2019, 1 July 2020 and 1   July 2021
    
	
Fixed Percentage Annual
    
	
Review   Dates
    
	
 
    	
 
    
	
Item 9
    	
Daily between 8.00 a.m. and 6.00 p.m. —   Saturdays, Sundays and public holidays excepted. Outside those hours,   air-conditioning and other Facilities and Services to be provided to the   Premises at the request and at the cost of the Tenant.
    
	
Facilities   Hours
    
	
 
    
	
 
    	
 
    
	
Item 10
    	
Commercial office
    
	
Permitted   Use
    	
 
    
	
 
    	
 
    
	
Item 11
    	
$20,000,000
    
	
Public   risk insurance
    	
 
    
	
 
    	
 
    
	
Item 12
    	
Landlord:
    	
341 George St Pty Ltd
    
	
Notices
    	
 
    	
c/- Graeme Walker
    
	
 
    	
 
    	
WF Limited Partnership
    
	
 
    	
 
    	
Suite 10, Level 1
    
	
 
    	
 
    	
341 George Street
    
	
 
    	
 
    	
SYDNEY NSW 2000
    
	
 
    	
 
    	
 
    
	
 
    	
Tenant:
    	
Atlassian Pty Ltd
    
	
 
    	
 
    	
Levels 6, 7 and 8
    
	
 
    	
 
    	
341 George Street
    
	
 
    	
 
    	
SYDNEY NSW 2000
    

 

4

 

	
Item 13
    	
The greater of:
    
	
Bank   guarantee
    	
 
    
	
 
    	
·                  $$2,571,885.92; and
    
	
 
    	
 
    
	
 
    	
·                  An amount equal to 12 months Base   Rent (as reviewed under this lease from time to time) plus 12 months Tenant’s   Proportion of Building Outgoings plus GST
    
	
 
    
	
 
    	
 
    
	
Item 14
    	
Not applicable while Atlassian Pty Ltd ACN 102 443   916 is the Tenant.
    
	
Guarantors
    
	
 
    	
 
    
	
Item 15
    	
Not applicable
    
	
CPI   Review Dates
    	
 
    

 

5

 

1                                                                 Term

 

Term of lease

 

1.1                                               Subject to the provisions of this lease, this lease commences on the Commencement Date and ends on the Expiry Date.

 

Monthly tenancy

 

1.2                                               If the Landlord permits the Tenant to occupy the Premises after the Expiry Date (other than under a grant of a further lease), the Tenant does so as a monthly tenant on the terms and conditions of this lease with necessary changes applicable to a monthly tenancy except that:

 

(a)                                         the Base Rent is an amount equal to one month of the Base Rent payable immediately before the Expiry Date plus 10%;

 

(b)                                         the first payment of rent is to be made on the next day after the Expiry Date; and

 

(c)                                          the monthly tenancy may be terminated at any time by either party by one month’s notice given to the other party to expire on any date and the tenancy will end one month after service of that notice.

 

2                                                         Base Rent

 

2.1                                               The Tenant must pay the Base Rent by equal monthly instalments (and proportionately for any part of a month) in advance on the first day of each month, by direct debit, electronic transfer or as directed by the Landlord.

 

2.2                                               The Tenant must pay the first instalment of Base Rent on the Commencement Date.

 

2.3                                               The Tenant acknowledges that as at the Commencement Date of the Initial Term the lettable area of the Premises is:

 

Level 6 — 1,192 m2

Level 7 — 1,320.5 m2

Level 8 — 1,299.0 m2

Storage Areas — 3 Storage Areas of 26 m2 each

 

2.4                                               Any measurement of area under this lease will be in accordance with the then current Property Council method of measurement for commercial buildings.

 

2.5                                               The Base Rent from and including each CPI Review Date is the Base Rent immediately before that CPI Review Date multiplied by the Current CPI and divided by the Previous CPI.

 

2.6                                               On the first Base Rent Payment Day after the information is available to make the calculation in clause 2.6, the Tenant must pay the difference between what the Tenant

 

6

 

has paid on account of Base Rent and the Base Rent for the period from and including the relevant CPI Review Date to but excluding that Base Rent Payment Day.

 

3                                                         Review of Base Rent

 

Market Review of Base Rent

 

3.1                                               If the Landlord chooses to review the Base Rent at any Market Review Date then this clause 3 applies. The Landlord is not obliged to give a notice under clause 3.2.

 

3.2                                               During each Review Period the Landlord may give a Rent Review Notice to the Tenant in respect of the Market Review Date to which that Review Period relates.

 

3.3                                               The Base Rent from and including the relevant Market Review Date is the amount stated in the Rent Review Notice unless the Tenant gives the Landlord a notice within 14 days after the Rent Review Notice is given, disagreeing with that amount.

 

3.4                                               If the Landlord does not give the Tenant a Rent Review Notice in respect of a Market Review Date during that Review Period, then as from that Market Review Date until the next Market Review Date the Tenant must continue to pay Base Rent at the rate payable before that Market Review Date.

 

Dispute as to Base Rent

 

3.5                                               If the parties do not agree on the reviewed Base Rent on the relevant Market Review Date within 42 days after the notice under clause 3.2 is given, then it must be decided by a valuer who:

 

3.5.1                             is appointed by the parties but if they do not agree on whom to appoint within 52 days after the notice under clause 3.2 is given, that valuer is to be nominated at either party’s request by the president of the New South Wales division of the Australian Property Institute Inc; and

 

3.5.2                             is a full member of at least five years’ standing of that institute; and

 

3.5.3                             at the time of appointment is both experienced and actively engaged in valuing similar licensed premises; and

 

3.5.4                             must be instructed to:

 

(a)                                                 decide what is the current annual market rent that would be reasonably expected to be paid for the Premises on the relevant Market Review Date if they were unoccupied and offered for renting for the Permitted Use having regard to the terms of this lease and all matters specified in clause 3.9; and

 

(b)                                                 give a written valuation setting out what was taken into account, what was disregarded, their respective weightings and any other adjustments within one month after being appointed; and

 

7

 

3.5.5                             acts as an expert and not as an arbitrator and whose decision is final and binding.

 

The amount determined by the valuer is the Base Rent from and including the relevant Market Review Date.

 

Costs

 

3.6                                               If the Base Rent determined by the valuer under this clause 3:

 

3.6.1                             is less than the Base Rent nominated in the Rent Review Notice, then the Landlord and the Tenant must pay the valuer’s costs in equal shares;

 

3.6.2                             is equal to or exceeds the Base Rent nominated in the Rent Review Notice, then the Tenant must pay the valuer’s costs.

 

Adjustments

 

3.7                                               Until the Base Rent is agreed or decided under this clause 3, the Tenant must pay the Base Rent applicable immediately before the relevant Market Review Date by equal monthly instalments, on account of the Base Rent from the relevant Market Review Date.

 

3.8                                               On the first due date for Base Rent after the Base Rent is agreed or decided under this clause 3, the Tenant must pay the Landlord (or the Landlord must credit the Tenant with) the difference between what the Tenant has paid on account of Base Rent and the Rent for the period from and including the relevant Market Review Date to but excluding that due date for Base Rent.

 

Base Rent criteria

 

3.9                                               In determining the Base Rent, the parties and the valuer must determine the current market rent for the Premises as at the particular Market Review Date having regard to the provisions of this lease and must:

 

3.9.1                             deleted;

 

3.9.2                             disregard any rent or other money payable under any sub-lease or other tenancy which has not been approved by the Landlord under this lease;

 

3.9.3                             have regard to the Term and disregard the fact that part of the Term has elapsed at the Market Review Date;

 

3.9.4                             have regard to the rental value of comparable premises but in doing so must make no reduction on account of any Incentive;

 

3.9.5                             consider the Premises as used for the Permitted Use but must have regard also to any other use to which the Premises may be lawfully put;

 

3.9.6                             regard the Premises on a floor by floor basis without a discount where the Base Rent is to be determined for more than one floor;

 

8

 

3.9.7                             have regard to the terms and conditions of this lease and assume that all obligations of the Tenant and the Landlord in this lease have been performed and observed;

 

3.9.8                             make no reduction on account of any Incentive paid, provided or allowed to the Tenant or which would be likely to be paid, provided or allowed to a tenant in relation to a new tenancy in respect of the Premises were they vacant;

 

3.9.9                             assume that the Premises have been reinstated in accordance with clause 9 if the Premises have been damaged or destroyed; and

 

3.9.10                      have regard to any written submissions made by the Landlord or the Tenant.

 

Base Rent not to decrease

 

3.10                                        Despite any other provision of this lease, the Base Rent from any Market Review Date until the next Review Date is the greater of:

 

3.10.1                      the Base Rent determined under this clause 3; and

 

3.10.2                      the Base Rent payable for the lease year of the Term immediately preceding the Market Review Date.

 

Fixed Review of Base Rent

 

3.11                                        On each Fixed Percentage Annual Review Date, the Base Rent payable by the Tenant under this lease will be the Base Rent payable immediately before the relevant Fixed Percentage Annual Review Date increased by 4.5%.

 

4                                                       Tenant charges, Building Outgoings and Cleaning

 

Tenant to pay charges & Building Outgoings

 

4.1                                               The Tenant must pay on time all:

 

(a)                                                 charges for electricity, gas, oil, water, telephone and any other services separately metered and consumed in the Premises; and

 

(b)                                                 all other charges and impositions imposed by any Authority or person for all services separately supplied to the Premises.

 

4.2                                               The Tenant must pay to the Landlord the Tenant’s Proportion of Building Outgoings if there is an amount specified in Item 6, or if not specified in Item 6 then as notified by the Landlord.

 

Payments on account of

 

4.3                                               The Landlord may give the Tenant a notice at any time stating the Landlord’s estimates of the Building Outgoings and the Tenant’s Proportion.

 

4.4                                               The Tenant must pay monthly instalments in advance on each Rent Day on account of the Tenant’s Proportion of Building Outgoings.

 

9

 

Notice of actual Outgoings

 

4.5                                               As soon as possible after the end of any twelve month period, the Landlord will give the Tenant reasonable details of the actual Building Outgoings.

 

Adjustments

 

4.6                                               On the next Rent Day after the Landlord gives the Tenant a notice of either estimated or actual Building Outgoings, the Tenant must pay the Landlord (or the Landlord must credit the tenant with) the difference between what the Tenant has paid on account of the Tenant’s Proportion of Building Outgoings for the relevant twelve month period and what the notice says is payable.

 

Cleaning

 

4.7                                               The Landlord will provide a cleaning service for the Building including the Premises.

 

4.8                                               The Tenant will allow the Landlord’s cleaners access to the Premises during such hours as the Landlord nominates including without limit during the Facilities Hours for cleaning services.

 

4.9                                               The Tenant will pay the Tenant’s Cleaning Costs monthly in advance by direct debit electronic transfer or as directed by the Landlord.

 

4.10                                        The Landlord can at any time give written notice to the Tenant detailing the Tenant’s Cleaning Costs. Within seven days of the notice the Tenant will pay to the Landlord the Tenant’s Cleaning Costs detailed in the notice.

 

5                                                         Use Obligations

 

Positive use obligations

 

5.1                                               The Tenant must:

 

(a)                                         use the Premises only for the Permitted Use;

 

(b)                                         keep the Premises clean and tidy and free of vermin;

 

(c)                                          notify the Landlord and the proper Authority promptly of any infectious illness in the Premises which must be notified to an Authority and, if that infectious illness is confined to the Premises, the Tenant must disinfect the Premises to the reasonable satisfaction of the Landlord and that Authority;

 

(d)                                         give notice to the Landlord promptly of any damage or accident to or defects in the Building or any circumstances likely to cause any damage or injury within the Building of which the Tenant is aware;

 

(e)                                          comply with all reasonable directions of the Landlord relating to the receipt, delivery or other movement of any goods or articles of bulk or quantity;

 

(f)                                           pay all actual costs of the Landlord in providing, at the request of the Tenant, Facilities and Services outside the Facilities Hours;

 

10

 

(g)                                          comply with the directions of the Landlord in relation to smoking and place in the Premises signs as the Landlord may reasonably require to notify persons of the prohibitions contained in this lease in relation to smoking;

 

(h)                                         comply with the Rules;

 

(i)                                             participate in Emergency Procedures as reasonably required by the Landlord;

 

(j)                                            pay on demand all costs arising from the issue to the Tenant of any Keys and from any loss of or damage to any Key;

 

(k)                                         ensure that any Key system installed in the Premises is compatible with the system for the Building;

 

(l)                                             obtain all consents or approvals of any Authority or under any Laws or Requirements necessary in relation to the Tenant’s Business and not allow them to lapse or be revoked;

 

(m)                                     obtain all consents or approvals of any Authority or under any Laws or Requirements necessary in relation to any repairs, changes or works undertaken by the Tenant in the Premises or the Building; and

 

(n)                                         repair or replace the Landlord’s Fixtures or any part thereof that are damaged or in need of replacement due to a Tenant Cause;

 

(o)                                         obtain the Landlord’s written consent before lodging any applications for consent or approvals for work referred to in subclause 5.1(m) above. Such consent may be withheld in the Landlord’s absolute discretion;

 

(p)                                         pay on demand the Landlord’s costs of placing the Tenant’s details on the Building foyer directory board (other than the standard allocation of one slat); and

 

(q)                                         must return all access cards for the Premises to the Landlord immediately on the End Date.

 

Negative use obligations

 

5.2                                               The Tenant must not:

 

(a)                                         bring, place or store Heavy Items in the Building;

 

(b)                                         install any equipment in the Premises that overloads the Services;

 

(c)                                          obstruct access to the Services or the Facilities;

 

(d)                                         affix any television or radio mast or antenna to the Building without the Landlord’s consent (and any consent so given may be withdrawn at any time without consultation if the Landlord reasonably considers it to be in the interests of the other tenants of the Building to do so);

 

11

 

(e)                                          use any musical instruments, radios, televisions, audio-visual or other sound or picture producing equipment in the Premises which is audible or visible from outside the Premises;

 

(f)                                           install Coverings on the exterior of the Building or the internal face of perimeter glass;

 

(g)                                          cover or obstruct the air-conditioning ducts and outlets or the skylights and windows which reflect or admit air or light into the Building or cover or obstruct any lights or other means of illumination;

 

(h)                                         throw anything out of the windows or doors of the Building or down the elevator shafts or into the light areas of the Building;

 

(i)                                             deposit rubbish anywhere except in proper receptacles;

 

(j)                                            place any article or thing on any sill, ledge or other like part of the Building;

 

(k)                                         obstruct parts of the Common Areas normally used to enter or leave the Premises nor place items in any part of the Building other than the Premises;

 

(l)                                             store or use any Hazardous Store or Inflammable Substances in the Premises or on the Land unless where reasonably required for the Permitted Use;

 

(m)                                     smoke cigarettes, pipes, cigars or any other form of tobacco or similar substance in the Building;

 

(n)                                         remove any carpet or other floor coverings from where they were originally installed in the Building;

 

(o)                                         do anything to the carpet or other floor coverings in the Premises which contravenes any guarantee relating to them notified to the Tenant by the Landlord;

 

(p)                                         keep animals or birds in the Premises;

 

(q)                                         carry on any noxious, noisome, or offensive business or do any act or thing which may cause nuisance, damage or disturbance to any person including the Landlord and any other occupier of the Building;

 

(r)                                            hold any auction, bankrupt or fire sale in the Premises;

 

(s)                                           prepare or cook food in the Premises except in areas approved by the Landlord for that purpose;

 

(t)                                            hang anything from or in any other way deface or damage the ceilings;

 

(u)                                         display or affix any Sign on the Building;

 

(v)                                         use the Premises as a residence;

 

(w)                                       cause damage to the Building;

 

12

 

(x)                                         make any duplicate of the Keys provided by the Landlord; or

 

(y)                                         at any time occupy or use the Premises at any time which is contrary to the hours approved from time to time by the Council or any Authority. In addition, the Tenant must comply with any direction of the Landlord in relation to hours of operation;

 

without the Landlord’s written consent.

 

Warranty as to use

 

5.3                                               The Landlord gives no warranty as to the use of the Premises that may be required by the Tenant. The Landlord gives no warranty that the Premises may be used for commercial offices nor that the Premises may be used 24 hours a day 7 days a week.

 

Laws and Requirements

 

5.4                                               The Tenant must comply with and observe all Laws and Requirements affecting:

 

(a)                                         the Premises or any Tenant’s Fixtures; or

 

(b)                                         the use or occupation of the Premises,

 

including, without limit, environmental matters and matters in respect of trade waste and dangerous goods whether addressed to or required to be effected by the Landlord, the Tenant or both or by any other person. The Tenant must provide promptly to the Landlord a copy of any Laws or Requirements notified to the Tenant. In complying with those Laws or Requirements the Tenant must obtain the Landlord’s consent and must observe the provisions of this lease. The Tenant is not required to effect structural or capital works pursuant to this clause unless rendered necessary by any Tenant Cause.

 

Essential Services Certification

 

5.5                                               If due to a Tenant Cause the Landlord is prevented from or delayed in complying with its obligations to obtain a statement in relation to each essential fire or other safety measure implemented in the Building as required by the Local Government Act 1993 and the regulations thereunder, then within a reasonable time (having regard to the requirements of the Act and of the Authority administering the Act) the Tenant, on being required by the Landlord to do so, must at the cost of the Tenant carry out such works and do such things as are necessary to enable the Landlord to obtain the statement and to comply with the Landlord’s obligations under that Act.

 

5.6                                               If required by the Landlord at any time because of a Tenant Cause, the Tenant must, within the period nominated by the Landlord in its notice to the Tenant, and at the Tenant’s cost, obtain and provide to the Landlord an essential services certificate in respect of the Premises. This clause does not limit the obligations of the Tenant under clause 5.5.

 

13

 

Access

 

5.7                                               The Tenant may access and use the Premises 24 hours a day 7 days a week. However, the Landlord gives no warranty that the Authorities allow the Premises to be used 24 hours a day 7 days a week.

 

Security

 

5.8                                               The Tenant is solely responsible for the security of the Premises and must keep the Premises secure at all times.

 

6                                                         Environmental Compliance

 

6.1                                               Compliance by Tenant

 

(a)                                                 The Tenant must not in any way pollute or Contaminate the Premises or any part of the Land.

 

(b)                                                 Subject to clause 6.1 (c), the Tenant must comply with all relevant legislation and the proper requirements of all relevant authorities regulating or controlling pollution or Contamination of the Premises.

 

(c)                                                  Nothing in clause 6.1 requires the Tenant to remediate or remove any Contamination which existed in the Premises or any of the Land prior to the Commencement Date of the Initial Term.

 

6.2                                               Tenant to Indemnify Landlord

 

(a)                                         The Tenant must not make any claim against the Landlord, and releases and indemnifies the Landlord from and against any obligations, costs or damages, relating to:

 

(i)             any pollution, Contamination or other environmental damage to the Premises arising out of the Tenant’s use and occupation of the Premises or any licensed areas under this lease; and

 

(ii)          any notice or order issued by any authority relating to any actual or potential pollution, Contamination or other environmental damage to or from the Premises or any licensed areas under this lease arising out of the Tenant’s use and occupation of the Premises or any licensed areas under this lease;

 

(b)                                         The Landlord acknowledges that the release and indemnity by the Tenant does not apply to any pollution, Contamination or other environmental damage occurring as a result of any wilful or negligent act or omission by the Landlord done or omitted with knowledge that it was likely to cause pollution, Contamination or other environmental damage.

 

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7                                                         Repairs and alterations

 

Repair and maintenance

 

7.1                                               The Tenant must

 

(a)                                         keep the Landlord’s Fixtures and the Tenant’s Fixtures in good and substantial repair, maintenance and condition including replacing all damaged or faulty light bulbs, light globes and tubes in the Premises;

 

(b)                                         repair any damage to the Premises caused by a Tenant Cause; and

 

(c)                                          repaint the Premises to a standard acceptable to the Landlord on the End Date.

 

7.2                                               Clause 7.1 does not impose any obligation on the Tenant for:

 

(a)                                         fair wear and tear; or

 

(b)                                         structural or capital works unless rendered necessary by any Tenant Cause.

 

7.3                                               If any damage is caused to the Building or the Premises due to a Tenant Cause, the Tenant must promptly reinstate the Building or the Premises (including structural repairs) to the condition they were in before the Tenant Cause.

 

Landlord’s right of inspection

 

7.4                                               On giving the Tenant reasonable notice (being at least one Business Day’s notice) (except in an emergency when no notice is required), the Landlord may enter the Premises to:

 

(a)                                         inspect the state of repair of the Premises; and /or

 

(b)                                         inspect and/or monitor compliance with the terms of this lease (including the Rules).

 

Tenant to carry out obligations

 

7.5                                               The Landlord may serve on the Tenant a notice of any failure by the Tenant to carry out any obligation of the Tenant under clause 5 or clause 7. The notice may require the Tenant to carry out that obligation within a reasonable time. If the Tenant fails to do so, the Landlord may carry out that obligation at the Tenant’s cost.

 

Landlord’s right of entry

 

7.6                                               If:

 

(a)                                         the Landlord wishes to do works to the Premises or the Building which in the Landlord’s opinion acting reasonably are necessary to comply with its obligations under this lease, or which the Landlord is obliged to do under this lease or under any Law or Requirement;

 

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(b)                                         an Authority requires work to be done at the Building which the Landlord elects to do and which is not the Tenant’s obligation under this lease; or

 

(c)                                          the Landlord elects to carry out any obligation which the Tenant is required to carry out under this lease, but fails to do,

 

then the Landlord, on giving to the Tenant reasonable notice (being at least one Business Day’s notice) (except in an emergency when no notice is required), may enter the Premises and do those works.

 

If after the Landlord has given the Tenant reasonable notice that it requires access to the Premises and the Tenant, acting reasonably, requires the Landlord to exercise its rights under this clause at a time other than the time nominated by the Landlord (except in the case of an emergency when no notice is required), the Tenant must pay the Landlord’s additional costs as a result of the delay or overtime costs incurred in complying with the Tenant’s request.

 

Alterations to the Building

 

7.7                                               The Tenant must not:

 

(a)                                         make any alterations or additions to the Building including the intertenancy partitions or floor coverings;

 

(b)                                         interfere with, alter or make any connections to the Services, the Landlord’s Fixtures or the Facilities ; or

 

(c)                                          use, install or alter internal partitions in the Premises,

 

unless the Tenant:

 

(d)                                         obtains the Landlord’s consent; and

 

(e)                                          in all cases of such consent, the Tenant complies with the Works Conditions.

 

Landlord Access to services located in the Premises

 

7.8                                               The Tenant acknowledges that there are Building services plant located in or adjacent to the Premises which may only be access through the Premises and despite any other clause of this lease must not:

 

7.8.1                                     restrict access to the Landlord or its authorised agents or contractors at any time to attend to service and maintenance of such Building services plant; or

 

7.8.2                                     make any objection, claim, or fail to comply with its obligations under this lease in relation to the Landlord or its agents or contractors entering the Premises for the purpose of accessing such Building services plant.

 

7.9                                               The Tenant acknowledges that the Landlord and/or its authorised agents or contractors may access the Building services plant through the Premises at all times.

 

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8                                                         Assignment and sub-letting

 

Dealings not permitted

 

8.1                                               Except as otherwise stated in this clause 8, during the Term the Tenant must not Assign, sub-lease, mortgage, charge or otherwise deal with or part with possession of the Premises or this lease or any estate or interest in this lease or agree to do any of those things.

 

Sub-leases

 

8.2                                               The Tenant must not grant any sub-lease of the Premises without the Landlord’s consent. The Landlord will consent to a sub-lease of the whole or part of the Premises if the Tenant complies with the Dealing Conditions.

 

Assignment

 

8.3                                               The Tenant must not Assign this lease without the Landlord’s consent. The Landlord will consent to an Assignment if:

 

(a)                                         the Assignment relates to the whole of the Premises and the whole of the Tenant’s interest in this lease;

 

(b)                                         the Tenant complies with the Dealing Conditions;

 

(c)                                          the Tenant satisfies the Landlord that the Assignee is of equal or greater financial capacity as the Tenant and the Guarantors, and that the Assignee capable of observing and performing the Tenant’s Covenants; and

 

(d)                                         the Assignee covenants with the Landlord to perform and observe the Tenant’s Covenants after the Assignment.

 

8.4                                               An Assignment under clause 8.3 does not release the Tenant from the Tenant’s Covenants.

 

Mortgage of Tenant’s equipment etc

 

8.5                                               The Tenant must not mortgage, charge, lease or otherwise deal with any Tenant’s Fixtures without the Landlord’s consent.

 

9                                                         Insurance and damage

 

Tenant’s insurances

 

9.1                                               The Tenant must keep current during the Term:

 

(a)                                         a public risk insurance policy such policy to be for not less than the amount specified in item 11 or such other reasonable amount as the Landlord may notify the Tenant from time to time in respect of any single accident; and

 

(b)                                         plate glass insurance for all plate glass windows doors and display show cases forming part or within the Premises; and

 

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(c)                                          insurance for the Tenant’s Fixtures, stock-in-trade and other property in the Premises.

 

9.2                                               The Tenant must give to the Landlord copies of a certificate of currency in respect of the insurance referred to in clause 9.1 annually.

 

Insurance terms

 

9.3                                               All policies of insurance under this clause 9 must:

 

(a)                                         be with an insurer of sufficient standing to meet any claim and such insurer must be represented in Australia;

 

(b)                                         be for such amounts and cover such risks and contain such conditions as are reasonably acceptable to or are reasonably required by the Landlord;

 

(c)                                          have no exclusions, endorsements or alterations unless consented to by the Landlord; and

 

(d)                                         note the interest of the Landlord.

 

Not affect insurances

 

9.4                                               Without the Landlord’s consent the Tenant must not knowingly do any act or thing which may increase the cost of insurances in connection with the Building or property in the Building or affect or make void or voidable that insurance or which may conflict with Laws or Requirements relating to fires or that insurance.

 

Releases of Landlord

 

9.5                                               All property of the Tenant or of the Tenant’s Agents in the Building is at the sole risk of the Tenant.

 

9.6                                               The Tenant releases the Landlord from liability in respect of:

 

(a)                                         loss of or damage to any property of the Tenant or any other person; and

 

(b)                                         injury to or the death of any person,

 

in the Building except as a result of the negligence of the Landlord or the Landlord’s Agents.

 

Indemnities

 

9.7                                               The Tenant is liable for and must indemnify the Landlord against all Claims for which the Landlord becomes liable in connection with:

 

(a)                                         loss of or damage to the Building or to any property or injury to or the death of any person to the extent caused or contributed to by a Tenant Cause;

 

(b)                                         the negligent or careless use of the Building by the Tenant or the Tenant’s Agents;

 

(c)                                          any defect in the Building due to a Tenant Cause;

 

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(d)                                                 the Tenant’s failure to comply with any obligation of the Tenant under this lease; or

 

(e)                                                  claims against the Landlord by any other tenant in the Building as a result of a Tenant Cause.

 

9.8                                               Clause 9.7 applies even if a Claim results from any act or thing which the Tenant may be authorised or obliged to do under this lease and even if at any time waiver or other indulgence has been given to the Tenant in respect of that act or thing.

 

Damage to Building

 

9.9                                               If the Building is damaged so that the Premises are wholly or substantially unfit for the Tenant’s occupation and use or (having regard to the nature and location of the Premises and the normal means of access) wholly or substantially inaccessible, then and so often as that happens:

 

(a)                                         a proportionate part of the Base Rent and Tenant’s Proportion of Building Outgoings, according to the nature and extent of the damage, abates and all remedies for recovery of that proportionate part of that money falling due after that damage are to be suspended until the Premises have been Reinstated; and

 

(b)                                         this lease may be terminated by notice given by the Landlord or the Tenant without liability attaching to either party because of that termination, except that the Tenant may not terminate this lease if within a period of two months after the damage, the Landlord gives a Reinstatement Notice.

 

9.10                                        The Tenant is not entitled to the abatement and suspension of all remedies for recovery under clause 9.9(a) nor to terminate this lease under clause 9.9(b) if the damage is caused or contributed to by any Tenant Cause or if any policies of insurance effected on the Building have been vitiated or payment of the policy money refused due to Tenant Cause. The reduction of any abatement of the Base Rent and Tenant’s Proportion under this clause 9.10 will be proportional to the extent that the Tenant has caused or contributed to the damage.

 

9.11                                        If the Landlord gives a Reinstatement Notice so that no Tenant’s right of termination arises under clause 9.9(b) and the Landlord does not, within a reasonable time (having regard to the extent of the damage and the time expected to obtain all necessary approvals and to commence and carry out the necessary works) Reinstate, (or, if clause 9.10 applies and the Landlord fails to give a Reinstatement Notice within a period of six months after the damage or fails to commence Reinstatement within a reasonable time thereafter) the Tenant may serve on the Landlord a notice of intention to terminate this lease. If the Landlord then fails to proceed with reasonable expedition to Reinstate, the Tenant may terminate this lease by giving not less than one month’s notice to the Landlord. At the expiration of that notice this lease ends.

 

9.12                                        If in the Landlord’s opinion the damage to the Building is such that it is impractical or undesirable to Reinstate, the Landlord may terminate this lease by giving not less than one month’s notice to the Tenant. At the expiration of that notice this lease ends. No

 

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liability attaches to the Landlord because of termination of this lease under this clause or clause 9.9. Any termination is without prejudice to the rights of either party in respect of any antecedent breach of this lease.

 

9.13                                        Clauses 9.9 to 9.12 do not impose on the Landlord any obligation to Reinstate.

 

10                                                  Landlord’s Obligations

 

Quiet enjoyment

 

10.1                                        Subject to the Landlord’s rights reserved by this lease, and subject to clauses 13 and 25, while the Tenant complies with its obligations under this lease the Tenant may use and occupy the Premises during the Term without interference by or through the Landlord.

 

Facilities

 

10.2                                        The Landlord must at its cost use reasonable endeavours to ensure the Facilities and Services are functional during the Facilities Hours.

 

10.3                                        If the Landlord has complied with clause 10.2 and, despite that, at any time:

 

(a)                                         any Facilities or Services do not function;

 

(b)                                         the Landlord because of the need to repair, maintain or replace Facilities or Services or because of the operation of any Laws or Requirements is compelled to shut off or remove any Facilities or Services; or

 

(c)                                          the Landlord exercises its rights under clause 13.6 to close the Building,

 

then the Tenant is not entitled to terminate or rescind this lease nor to have any right of action or claim for compensation or damages or abatement of rent against the Landlord. The Landlord will use reasonable endeavours to rectify the failure of Services or Facilities as soon as practicable.

 

10.4                                        The Landlord may vary the Facilities Hours at its discretion.

 

11                                                  Default, termination

 

Essential terms

 

11.1                                        The following obligations of the Tenant are essential terms of this lease:

 

(a)                                         all obligations to pay money; and

 

(b)                                         the obligations under clauses 5.1(a),(l), (m) and (o), 7, 8, 9, 11.10, 15, 15A, 17, 20 and 21.4.

 

This clause does not prevent any other obligation under this lease from being an essential term.

 

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Default

 

11.2                                It is a Default under this lease if:

 

(a)                                 the Tenant does not comply with an essential term of this lease;

 

(b)                                 the Tenant does not comply with a term which is not an essential term of this lease and, if the failure to comply with the non-essential term can be remedied, it is not remedied within a reasonable time (having regard to the nature of the breach) after the Landlord asks the Tenant to remedy it;

 

(c)                                  the Tenant being a corporation, an Insolvency Event occurs in respect of the Tenant; or

 

(d)                                 the Tenant repudiates this lease.

 

Avoid default

 

11.3                                The Tenant must ensure that no Default occurs.

 

Termination of lease

 

11.4                                If the Tenant Defaults in the performance of an essential term, the Landlord may:

 

(a)                                 (unless prior demand or notice is required by Law) without any prior demand or notice, re-enter and take possession of the Premises and eject the Tenant and all other persons and repossess the Premises and terminate this lease; or

 

(b)                                 by notice to the Tenant, terminate this lease as from the date of giving that notice; or

 

(c)                                  by notice to the Tenant, elect to convert the unexpired portion of the Term into a quarterly tenancy (as to which clause 1.2 applies) and this lease is terminated from the giving of that notice.

 

If the Tenant Defaults in the performance of a non essential term, the Landlord may exercise its rights under this clause 11.4 after giving the Tenant at least 14 days written notice of its intention to do so.

 

Landlord may rectify

 

11.5                                The Landlord may remedy at any time, without notice, a Default by the Tenant. The Tenant must pay all reasonable costs incurred by the Landlord (including legal costs) in remedying a Default.

 

Tender after termination

 

11.6                                Money tendered by the Tenant after this lease is terminated and accepted by the Landlord without prejudice to the Landlord’s rights in relation to the termination may be applied in the manner the Landlord decides.

 

Damages

 

11.7                                If this lease is lawfully terminated by the Landlord

 

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(a)                                 the Tenant indemnifies the Landlord for any Claim in connection with any Default giving rise to the termination or the termination of the lease; and

 

(b)                                 the Landlord may recover damages from the Tenant for the damage suffered by the Landlord for the Term including the difference between the aggregate of the Base Rent, and other money payable by the Tenant for the unexpired residue of the Term.

 

11.8                                The Landlord’s right to recover damages from the Tenant or any other person is not affected or limited if:

 

(a)                                 the Tenant abandons or vacates the Premises;

 

(b)                                 the Landlord acting lawfully elects to re-enter the Premises or terminate the lease;

 

(c)                                  the Landlord acting lawfully accepts the Tenant’s repudiation; or

 

(d)                                 the parties’ conduct (or that of any person on their behalf) constitutes a surrender by operation of law.

 

Landlord may institute proceedings

 

11.9                                The Landlord may institute legal proceedings claiming damages against the Tenant in respect of the Term including the period before and after any repudiation, abandonment, termination, acceptance of repudiation or surrender by operation of law whether the proceedings are instituted before or after that conduct.

 

Interest on overdue money

 

11.10                         The Tenant must pay on demand interest on any money due but unpaid by the Tenant under this lease. Interest is payable at the Default Interest Rate and is to be computed on daily balances from the day after the due date for payment of the money until payment of that money in full. Interest not paid when due is to be capitalised at monthly intervals. Interest is payable on capitalised interest at the rate and in the manner referred to in this clause. Interest is recoverable in the same way as rent in arrears.

 

12                                      End Date

 

End Date obligations

 

12.1                                On the End Date the Tenant must yield up the Premises in the order and condition described in clause 7.1.

 

12.2                                On or before the End Date the Tenant:

 

(a)                                 must, but only if required by the Landlord, remove all or part of the Tenant’s Fixtures and all carpet in the Premises;

 

(b)                                 must remove all Tenant’s Signs from the Building;

 

(c)                                  must give all Keys to the Landlord;

 

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(d)                                 must if applicable, comply with clause 5.4;

 

(e)                                  must, but only if required by the Landlord, reinstate the Premises and Services to the same condition and configuration they were in as at the Commencement Date of the Initial Term;

 

(f)                                   must, if required by the Landlord, reinstate all ceiling and skirting services to the same condition they were in as at the Commencement Date of the Initial Term; and

 

(g)                                  must repaint the Premises to a standard acceptable to the Landlord; and

 

(h)                                 must have all carpets in the Premises professionally steam cleaned, have all light fittings professionally cleaned, replace all light globes and remove all rubbish from the Building.

 

Tenant not to cause damage

 

12.3                                In performing its obligations under clauses 12.2, the Tenant must comply with this lease, including clause 5.2(w) and the Tenant must make good any damage to the Building or the Premises caused by the Tenant.

 

12.4                                If the Tenant defaults under clause 12.1, 12.2 or 12.3 or if the Landlord exercises its rights under clause 11.4, then the Landlord at the Tenant’s cost may after having given the Tenant 48 hours notice of its intention to do so carry out such work under clause 12.2 or 12.3 as the Landlord in its discretion thinks fit.

 

12.5                                The Landlord is entitled to treat any Tenant’s Fixtures not removed as if the Tenant had abandoned its interest in them and they had become the property of the Landlord and the Landlord may deal with them as the Landlord thinks fit (including sale or disposal of the Tenant’s Fixtures by public auction or otherwise) without being liable in any way to account to the Tenant.

 

13                                      Landlord’s rights

 

Roof

 

13.1                                The Landlord reserves the exclusive right to use the roof of the Building or to grant leases or licences or otherwise authorise any person to use those areas for such purposes as it thinks fit.

 

Building name

 

13.2                                The Landlord reserves all rights in respect of the name of the Building and may change the name of the Building at its discretion from time to time.

 

Change of Landlord

 

13.3                                If another person becomes entitled to receive the rent payable by the Tenant under this lease, the Landlord is released from any obligation under this lease arising after that other person acquires the Landlord’s interest in this lease (and in respect of obligations prior to that date, once it has complied with those obligations) and the Tenant at the

 

23

 

Landlord’s cost must enter into such covenants with the other person as the Landlord reasonably requires.

 

13.4                                An obligation owed by the Tenant to the Landlord which is due for performance before an event in clause 13.3 (including the payment of amounts owing for Base Rent in respect of a period or date or because of an event or Market Review Date occurring before that event) remains owing to the Landlord and not to the other person and may be recovered by the Landlord in its own name.

 

Landlord’s agents

 

13.5                                The Landlord may appoint persons to exercise any of its rights or perform any of its duties under this lease. Following receipt of notification of appointment to act from the Landlord, the Tenant must treat those persons when they are exercising those rights or performing those duties as if they were the Landlord. Communications from the Landlord override those from the persons appointed if they are inconsistent.

 

Close Building

 

13.6                                The Landlord may close the Building and the Land or both in an emergency or if the Landlord otherwise deems that action reasonably necessary.

 

Premises security

 

13.7                                The Landlord may enter the Premises to lock any door or window left unlocked. The Landlord is not responsible nor liable for security in the Premises or in respect of any unauthorised entry to the Premises.

 

Rules

 

13.8                                The Landlord may introduce and vary Rules which are consistent with this lease. The Tenant must at its own cost comply with all Rules.

 

Emergency

 

13.9                                Where in this lease there is reference to an emergency the reasonable determination of the Landlord as to the existence of an emergency is conclusive.

 

Landlord access

 

13.10                         To allow the Landlord to perform its obligations under this lease or under any Laws or Requirements, the Tenant must (upon receiving reasonable notice from the Landlord except in the case of an emergency when no notice is required) give the Landlord access to the Premises during the hours as the Landlord may notify to the Tenant from time to time.

 

Structural works

 

13.11                         Where in this lease the Tenant is obliged to do any work of a structural nature or which affects the Facilities, the Services or the Landlord’s Fixtures, the Landlord may elect that that work will be carried out only by the Landlord at the Tenant’s reasonable cost (and in determining reasonable cost the Tenant accepts the need of the Landlord to have regard to factors such as the urgency of the work, the nature of the work and the need to preserve any warranty or guarantee rights or to comply with service contracts).

 

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Alterations to the Building

 

13.12                         The Landlord reserves the right from time to time to enlarge, alter or reduce the Building (other than the Premises, subject to the Landlord’s rights in relation thereto under this lease) and to carry out construction or demolition works in any part of the Building.

 

Right of Entry to Premises

 

13.13                         The Landlord reserves the right and the Tenant shall permit the Landlord with all necessary materials, machinery, equipment and appliances at all times and upon reasonable notice (but without notice in any case which the Landlord considers an emergency) to enter upon the Premises and to use the whole or any part thereof for all or any of the following purposes:

 

(a)                                 carrying out or effecting any of the works contemplated by clauses 13.14 or 25.1;

 

(b)                                 erecting, laying or installing in, under or over the Premises pipes, sewers, drains, mains, ducts, conduits, gutters, watercourses, wires, cables, channels, flues and all other conducting media which may be required for or in connection with any existing or future Services;

 

(c)                                  inspecting, removing, maintaining, repairing, altering or adding to the Services whether in the Premises or some other part of the Building;

 

(d)                                 effecting any alterations, additions, improvements, repairs, maintenance or other work:

 

(i)                  to the Building or the Premises which may be incumbent upon the Landlord under the provisions of any Laws or Requirements or which the Landlord may be entitled and elects to carry out pursuant to any provision of this lease, or

 

(ii)               to the Building which the Landlord may consider necessary or desirable.

 

Scaffolding

 

13.14                         The Landlord reserves the right and the Tenant shall permit the Landlord to erect scaffolding in or about the Building.

 

14                                Notices

 

14.1                                A Notice:

 

(a)                                 must be in writing;

 

(b)                                 must be left at the address or sent to the facsimile number of the party in item 12, as varied by notice; and

 

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(c)                                  may be sent by certified mail to the address of the party in item 12, as varied by notice.

 

14.2                                A Notice sent by certified mail and correctly addressed is taken to be received on the third (seventh, if posted to or from a place outside Australia) day after posting. A Notice sent by facsimile is taken to be received on production of a transmission report by the machine from which the facsimile was transmitted confirming that the whole facsimile was successfully transmitted to the facsimile number of the recipient notified for the purpose of this clause 14, unless the sender is aware that the transmission was impaired.

 

14.3                                A Notice by a party under this lease may be given by an Authorised Officer of the party.

 

14.4                                Unless a later time is specified in it, a Notice takes effect from the time it is received or deemed under this lease to be received.

 

14.5                                A certificate signed by the Landlord or its solicitors about a matter or about a sum payable to the Landlord in connection with this lease is sufficient evidence of the matter or sum stated in the certificate unless the matter or sum is proved to be false.

 

15                          Bank Guarantee

 

15.1                                On or before signing this lease, the Tenant must deliver to the Landlord a Bank Guarantee.

 

15.2                                The Landlord at any time may claim on the Bank Guarantee and apply any money received towards money (including damages) payable by the Tenant in connection with this lease or any Related Agreement as the Landlord determines.

 

15.3                                The Landlord may claim and the bank is entitled to pay under the Bank Guarantee without reference to the Tenant and despite any contrary objection, claim or direction by the Tenant or any other party to a Related Agreement.

 

15.4                                The Landlord’s rights under this clause 15 are in addition to the other rights and remedies of the Landlord in relation to any default of the Tenant in connection with this lease.

 

15.5                                Each time the Landlord claims on a Bank Guarantee, the Landlord may notify the Tenant to top up the Bank Guarantee in relation to the claim (and any previous claims) made by the Landlord. Within seven days of receipt of each notice the Tenant must:

 

(a)                                 reinstate the Bank Guarantee to the full amount before the claims; or

 

(b)                                 give the Landlord a supplemental Bank Guarantee equal to the amount of the claims.

 

15.6                                If requested by the Landlord after each review of the Base Rent the Tenant must give the Landlord, within 7 days of the Landlord’s request, a supplemental bank guarantee so that the Bank Guarantee at all times is equal to the amount required in item 13.

 

15.7                                The Bank Guarantee must be assignable to the Landlord’s successors and assigns.

 

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15.8                                While the Tenant is Atlassian Pty Ltd ACN 102 443 916 and provided the Tenant is not in breach of this lease then subject to the Tenant providing the Landlord with current audited accounts confirming that the Tenant’s financial position has not significantly deteriorated, the amount of the Bank Guarantee will be reduced to an amount equal to nine (9) months Base Rent (as reviewed under this lease from time to time) plus nine (9) month’s Tenant’s Proportion of Building Outgoings plus GST. This clause will only apply after 12 months of the Commencing Date of the Initial Term.

 

15.9                                While the Tenant is Atlassian Pty Ltd ACN 102 443 916 and provided the Tenant is not in breach of this lease then subject to the Tenant providing the Landlord with current audited accounts confirming that the Tenant’s financial position has not significantly deteriorated, the amount of the Bank Guarantee will be reduced to an amount equal to six (6) months Base Rent (as reviewed under this lease from time to time) plus six (6) month’s Tenant’s Proportion of Building Outgoings plus GST. This clause will only apply after 24 months of the Commencing Date of the Initial Term.

 

15.10                         The Bank Guarantee will be returned to the Tenant provided that:

 

(a)                                 the Landlord has not exercised its rights under clause 11.4 of this lease following a Tenant Default; and

 

(b)                                 the Tenant has complied with all its obligations under this lease.

 

15A                                  Security Deposit

 

15A.1                       If the Landlord agrees that the Tenant may provide a security deposit in lieu of the Bank Guarantee, this clause 15A applies.

 

15A.2                       On or before the Commencement Date the Tenant must pay the security deposit to the Landlord by bank cheque.

 

15A.3                       The security deposit must be for the amount specified in item 13.

 

15A.4                       If the Tenant does not comply with its obligations under this lease or if the Landlord suffers damage because the Landlord cannot obtain possession of the Premises, then the Landlord may use the security deposit without notice to the Tenant.

 

15A.5                       If the Landlord uses the security deposit and the Landlord gives the Tenant a notice stating the amount required to fully reinstate the security deposit, the Tenant must pay that amount by bank cheque within 7 days of the Landlord issuing the notice.

 

15A.6                       When this lease ends, the Landlord may use any part of or the full amount of the security deposit for outstanding amounts payable by the Tenant under this lease.

 

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16                       Guarantors

 

Guarantee

 

16.1                                In consideration of the Landlord agreeing to grant this lease to the Tenant at the request of the Guarantor the Guarantor enters into this guarantee (“Guarantee”) in favour of the Landlord on the terms specified in this clause 16.

 

Scope of Guarantee

 

16.2                                The Guarantor agrees to guarantee the payment of Base Rent and the observance and performance of all the Tenant’s obligations as specified in this lease throughout the Term, including during holding over as periodical tenant after the expiry of the Term by the Tenant, its successors and assignees of this lease.

 

16.3                                This Guarantee covers the whole period whilst the Tenant occupies or is entitled to occupy the Premises under this lease as the Tenant, or whilst holding an equitable interest over the Premises under an agreement for lease or as a periodical tenant.

 

16.4                                This Guarantee extends to claims by the Landlord:

 

16.4.1              for damages for breaches of covenants under this lease;

 

16.4.2              for breaches of any essential terms of this lease;

 

16.4.3              for repudiation of this lease;

 

16.4.4              for the Landlord’s loss or damage in the event of the Tenant abandoning or vacating the Premises;

 

16.4.5              in the event of the Landlord electing to re-enter or to terminate this lease;

 

16.4.6              for the Landlord’s reasonable legal and other expenses of seeking to enforce those obligations against the Tenant and the Guarantor, recovering possession and terminating this lease; and

 

16.4.7              for loss or damage consequent on disclaimer of this lease on the Tenant’s insolvency, as if this lease had not been disclaimed.

 

16.5                                This Guarantee is in favour of the Landlord and its successors and assigns being the owner of the Premises from time to time during the continuance of this Guarantee.

 

Liability of several Guarantors

 

16.6                                When there is more than one Guarantor under this lease:

 

16.6.1              the term Guarantor in this clause refers to each of the Guarantors and to all of them;

 

16.6.2              their obligations as Guarantor are joint and several;

 

16.6.3              the Landlord may enforce this Guarantee against all or any of them;

 

16.6.4              any notice or demand may be served on all of them by serving any one of them; and

 

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16.6.5              this Guarantee remains binding on the other Guarantors, even if

 

(a)                                 any Guarantor fails to execute this lease or to enter into this Guarantee;

 

(b)                                 this Guarantee is not binding on any Guarantor; or

 

(c)                                  the Landlord shall release any Guarantor from liability under this Guarantee.

 

Landlord’s covenants

 

16.7                                The Landlord covenants with the Guarantor to take reasonable steps to require the Tenant to comply with the Tenant’s obligations under this lease before seeking to enforce this Guarantee.

 

Landlord’s liability to Guarantor

 

16.8                                The Landlord’s failure to comply with the covenant in clause 16.7 shall not discharge this Guarantee, but the Guarantor may claim damages from the Landlord for any such breach and may rely on it in proceedings for injunction and for relief against forfeiture of this lease.

 

Claim under Guarantee

 

16.9                                The Landlord is entitled to require the Guarantor to pay to the Landlord any outstanding Base Rent or other amount or to compensate the Landlord for any loss or damage without the Landlord having instituted any proceedings against the Tenant in respect of such claims or breaches.

 

Guarantee not discharged

 

16.10                         This Guarantee is not discharged and the Landlord’s rights against the Guarantor are not affected by any of the following:

 

16.10.1       the granting of any indulgence or extension of time by the Landlord to the Tenant or to the Guarantor;

 

16.10.2       the Landlord’s neglect or failure to enforce covenants under this lease against the Tenant or waiver of any breaches or defaults under this lease;

 

16.10.3       the total or partial release of liability of the Tenant or of a Guarantor by the Landlord;

 

16.10.4       the entry into any arrangement, composition or compromise relating to this lease between the Landlord and the Tenant or any other person;

 

16.10.5       the variation of any provision of this lease between the Landlord and the Tenant without the Guarantor’s consent but only if they are minor and are not prejudicial to the Guarantor;

 

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16.10.6       the death or bankruptcy or winding up of the Tenant or the Guarantor;

 

16.10.7       the Tenant’s liability under this lease, or this lease, being or becoming invalid, illegal, or unenforceable, including through any act, omission or legislation; or

 

16.10.8       the disclaimer of this lease following the Tenant’s insolvency.

 

Landlord’s certificate

 

16.11                         For the purpose of this Guarantee, a certificate or statement signed by or on behalf of the Landlord or the Landlord’s solicitors relating to any sum of money claimed by the Landlord to be due from the Tenant under this lease is prima facie evidence of the amount claimed and the facts stated therein.

 

Payments

 

16.12                         In respect of any payment made by or on behalf of the Tenant under this lease which is void or is avoided for any reason, the Guarantor shall remain liable under this Guarantee as if that payment had not been made.

 

Until the Landlord’s claims against the Tenant and against the Guarantor have been fully satisfied, the Guarantor will hold on trust for the Landlord any money received by the Guarantor under any arrangement, composition, assignment, liquidation or bankruptcy of the Tenant.

 

17                                      Payments and costs

 

17.1                                Except where provided in this lease to the contrary, the Tenant must make payments under this lease without set-off or counterclaim and free and clear of any withholding or deduction.

 

17.2                                All payments by the Tenant under this lease must be paid to the Landlord or to a person nominated by the Landlord in a notice given to the Tenant.

 

17.3                                If the Tenant pays an amount and it is found later that the amount payable should have been higher, then the Landlord may demand payment of the difference even though the Landlord has given the Tenant a receipt for payment of the lower amount.

 

17.4                                The Landlord need not make demand for any amount payable by the Tenant under this lease unless this lease expressly specifies that demand must be made.

 

17.5                                All money under this lease must be paid to the address of the Landlord in item 12 or to such other place and in such manner (including by direct debit or electronic funds transfer) as the Landlord acting reasonably may direct.

 

17.6                                If the Tenant must pay to or reimburse the Landlord any cost, charge or other money under this lease, that amount is payable on demand unless otherwise provided in this lease.

 

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17.7                                The Tenant must pay all stamp duty (including penalties and fines other than penalties and fines due to the default of the Landlord), mortgagee’s consent fees and registration fees in connection with this lease.

 

17.8                                If the Tenant defaults under this lease, the Tenant must pay all costs and expenses (including legal costs) which the Landlord suffers or incurs in connection with that default.

 

17.9                                Where the Tenant is obliged under this lease to do some act or thing, it must be done at the cost of the Tenant unless otherwise provided in this lease.

 

17.10                         The Tenant’s obligation to pay under this lease is an obligation to pay to the Landlord unless otherwise provided in this lease.

 

17.11                         The Tenant must pay the Tenant’s and the Landlord’s reasonable legal costs in respect of the preparation, negotiation, stamping and registration of this lease.

 

18                                      Governing law

 

18.1                                This lease is governed by the law in force in New South Wales.

 

18.2                                Each party submits to the non-exclusive jurisdiction of the courts of New South Wales.

 

18.3                                Without preventing any other mode of service, any document in an action (including any writ of summons or other originating process or any third or other party notice) may be served on any party by being left for that party at its address for service of notices set out in item 12, as varied by notice.

 

19                                       General

 

Exercise of rights

 

19.1                                The Landlord may exercise a right, power or remedy at its discretion, and separately or concurrently with another right, power or remedy. A single or partial exercise of a right, power or remedy by the Landlord does not prevent a further exercise of that or of any other right, power or remedy.

 

19.2                                Failure by either party to exercise or delay in exercising a right, power or remedy does not prevent its exercise.

 

19.3                                The rights, powers and remedies provided in this lease are cumulative with and not exclusive of the rights, powers or remedies provided by law independently of this lease.

 

Waiver

 

19.4                                A provision of or a right created under this lease may not be waived or varied except in writing signed by the party or parties to be bound.

 

19.5                                A custom or practice which may grow up between the parties in the course of administering this lease is not to be construed to waive or to lessen:

 

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(a)                                 the right of the Landlord to insist on the performance by the Tenant of any provision of this lease; or

 

(b)                                 the Landlord’s rights, powers or remedies in respect of any default of the Tenant.

 

19.6                                A waiver by either party of a particular breach or default is not to be deemed to be a waiver of the same or any other subsequent breach or default.

 

19.7                                The demand of or subsequent acceptance of any money under this lease by the Landlord is not to be deemed a waiver of any preceding breach of this lease by the Tenant, other than the relevant Tenant’s breach to which the payment relates.

 

Legislation

 

19.8                                Any present or future legislation which operates to vary the obligations of the Tenant in connection with this lease with the result that the Landlord’s rights, powers or remedies are adversely affected (including by way of delay or postponement) is excluded except to the extent that its exclusion is prohibited or rendered ineffective by law.

 

Set-off

 

19.9                                At its sole discretion the Landlord may, upon giving the Tenant written notice, apply any credit balance in any currency in any account of the Tenant with the Landlord towards satisfaction of any amount then payable by the Tenant to the Landlord under this lease. At its sole discretion the Landlord by notice to the Tenant may reduce the amount payable at any time by the Landlord to the Tenant by the amount payable at that time by the Tenant to the Landlord under this lease. The Tenant is taken to have paid the Landlord that part of the amount then payable by the Tenant equal to the amount of the reduction. The Tenant authorises the Landlord in the name of the Tenant or the Landlord to do anything (including to execute any document) that is required for the purpose of this clause.

 

Indemnities

 

19.10                         Each indemnity in this lease is a continuing obligation, separate and independent from the other obligations of the Tenant and survives the End Date. It is not necessary for the Landlord to incur expense or make payment before enforcing a right of indemnity conferred by this lease.

 

Exclusion of statutory provisions

 

19.11                         The covenants, powers and provisions implied in leases because of sections 84, 84A, 85 and 86 of the Conveyancing Act 1919 do not apply to this lease. In this lease words used in any of the forms of words in the first column of part 2 of schedule 4 to the Conveyancing Act 1919 do not imply a covenant under section 86 of that act

 

Antecedent rights and obligations

 

19.12                         The End Date does not affect:

 

(a)                                 the Landlord’s or the Tenant’s rights in connection with a breach of this lease by the other party before the End Date; or

 

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(b)                                 the Landlord’s or the Tenant’s obligations under this lease in respect of periods before the End Date.

 

Severability

 

19.13                         If a provision of this lease is void, unenforceable or illegal in a jurisdiction it is severed for that jurisdiction. The remainder of this lease has full force and effect and the validity or enforceability of that provision in any other jurisdiction is not affected. This clause has no effect if the severance alters the basic nature of this lease or is contrary to public policy.

 

If document not a lease

 

19.14                         If this document is found not to be a lease or to be a lease for a period less than the Term, the parties are bound in contract to carry out their obligations under this document for the Term, as if this were deemed to be a lease, unless expressly released under this document from those obligations.

 

Relationship of parties

 

19.15                         This lease does not create any relationship between the parties other than the relationship of landlord and tenant on the terms of this lease.

 

Counterparts

 

19.16                         This lease may consist of a number of counterparts. The counterparts taken together constitute one instrument.

 

No caveat

 

19.17                         The Tenant must not lodge or allow to be lodged for it a caveat against the Land in relation to this lease after registration of this lease at the office of Land and Property Information — NSW.

 

Entire agreement

 

19.18                         This lease constitutes the entire agreement of the parties in relation to the matters in this lease and supersedes all prior agreements, understandings and negotiations between the parties in relation to those matters.

 

Attorneys

 

19.19                         If this lease is executed by an attorney the attorney states by such execution that as at the time of such execution the attorney has received no notice of the revocation of the power of attorney under which the attorney executed this lease.

 

Non-merger

 

19.20                         Each representation and covenant under this lease continues until satisfied or completed.

 

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20                                      GST

 

20.1                                The Base Rent and other moneys payable under this lease by the Tenant have been calculated without regard to GST. The parties intend the Landlord to be entitled to charge an additional amount if the Landlord becomes subject to GST as a result of the grant of this lease or any supply to the Tenant under or in connection with this lease. In order to give effect to this intention, the following provisions of this clause apply.

 

Passing-on provision

 

20.2                                If a supply made by the Landlord to the Tenant under this lease is subject to GST the Tenant must pay to the Landlord at the same time as payment for the supply is due an additional amount equal to 10% of the amount of the payment for the supply.

 

GST invoice

 

20.3                                The Landlord must give the Tenant the documentation in the form and containing the information required by law to enable the Tenant to claim a refund or credit of GST payable on the supply by the Landlord at the same time a request for payment for the supply is made.

 

Change in rate

 

20.4                                If the GST rate changes then, from the date of the change clause 20.2 will be deemed amended so that the new rate applies in lieu of the percentage stated in clause 20.2.

 

21                                      Strata Conversion

 

21.1                                In this clause ‘strata conversion’ means a subdivision of the Premises or the Building under the Strata Titles (Freehold Development) Act 1973 or the Community Land Development Act 1989 or the Community Land Management Act 1989 or any other legislation permitting such a subdivision.

 

21.2                                The Tenant acknowledges that the Landlord may complete a strata conversion of the Premises and the Building.

 

21.3                                The Tenant consents to the strata conversion.

 

21.4                                The Tenant will, within seven (7) days of the Landlord’s written request to do so, sign and return to the Landlord any consents and other documents necessary to enable the Landlord to carry out the strata conversion and the Tenant will make no objection or claim for compensation in relation to the strata conversion. The Tenant will be deemed to have given all such consents and approved all such other documents if the Tenant has not returned all such consents to the Landlord within seven (7) days of the Landlord’s written request to do so.

 

21.5                                When the strata conversion occurs:

 

(a)                                 any reference in this lease to the Building will be deemed to be a reference to the buildings comprised in the registered plan or plans of which the Premises form part;

 

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(b)                                 the rules and regulation made by the Landlord for the Building will be deemed to include any by-laws of the owner’s corporation;

 

(c)                                  this lease will be amended (by a variation of lease at the Landlord’s cost) in any respect that is necessary to ensure that this lease reflects the fact that the strata conversion has been carried out; and

 

(d)                                 any levies or other monies payable to the owner’s corporation will be deemed to be Building Outgoings for the purposes of this lease;

 

(e)                                  the following clause will be added to this lease:

 

‘Strata By-Laws

 

The Tenant must at all times comply with the by-laws of the Strata Plan and it is agreed between the Landlord and the Tenant that all such by-laws shall be deemed to be incorporated in this lease as covenants to apply between the Landlord and the Tenant in the same manner as such by-laws are applicable between the owners corporation of the Strata Plan and the registered proprietors of the lots in the Strata Plan.’; and

 

(f)                                   the Tenant will not be liable to pay any additional items of costs or outgoings other than as required under this lease.

 

22                                      Option to Renew

 

22.1                                If the Tenant:

 

22.1.1              has paid the Base Rent punctually during this lease;

 

22.1.2              has not failed to observe and perform its obligations during the Term which has been serious or persistent or both;

 

22.1.3              gives notice to the Lessor under clause 22.2; and

 

22.1.4              between the time of notification and the end of the Initial Term duly and punctually pays the annual rent and performs its obligations under this lease,

 

22.1.5              then at the end of the Initial Term, the Landlord must grant and the Tenant must take a further lease of the Premises in accordance with this clause 22.

 

22.2                                A notice of exercise of the Tenant’s option under this clause 22 must:

 

22.2.1              state clearly that the Tenant wishes to take a further lease of the Premises under the option contained in clause 22.1; and

 

22.2.2              be given not earlier than 18 months and not later than 12 months before the end of the Initial Term.

 

22.3                                The provisions of the further lease will be the same as the provisions of this lease with the following exceptions:

 

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22.3.1              the new lease will begin immediately after the end of the Initial Term;

 

22.3.2              the term of the new lease will be five (5) years;

 

22.3.3              the Base Rent at the commencement of the new lease will be the Base Rent for the last lease year of the Initial Term varied as provided for in clauses 3.1—3.10 inclusive; and

 

22.3.4              this clause 22 will be deleted.

 

23                                      Tenant’s Fitout

 

23.1                                In this clause:

 

“Consents” means all consents and approvals from the Authorities necessary for the carrying out of the Fitout Work including, without limit, a construction certificate; and

 

“Fitout Work” means any work to be carried out by the Tenant in fitting out the Premises including the Tenant’s Fixtures.

 

23.2                                If the Tenant completes any Fitout Work, it must not carry out the Fitout Work without obtaining the Landlord’s prior written approval and the Consents.

 

23.3                                The Tenant must, prior to obtaining the Consents and prior to commencing the Fitout Work, submit to the Landlord for the Landlord’s written approval:

 

(a)                                 detailed work drawings and specifications for completing the Fitout Work including (but without limitation) full details of fittings, proposed finishes and any alterations or additions to the Premises; and

 

(b)                                 details of all contractors and subcontractors to be employed in the carrying out of the Fitout Work. The Landlord may (acting reasonably) require the Tenant to amend the Fitout Work prior to giving the Landlord’s approval.

 

23.4                                The Tenant:

 

(a)                                 will proceed with all expedition to obtain from the Consents from all Authorities;

 

(b)                                 must complete the Fitout Work within a reasonable time;

 

(c)                                  indemnifies the Landlord from and against all claims and losses arising from the Fitout Work or the completion of the Fitout Work;

 

(d)                                 must complete the Fitout Work in accordance with the Landlord’s fitout guide issued for the Building from time to time; and

 

(e)                                  must obtain an occupation certificate from the local council before operating from the Premises.

 

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23.5                                The Tenant must after obtaining the Consents and the Landlord’s approval:

 

(a)                                 carry out the Fitout Work in a good and reasonable manner; and

 

(b)                                 at the expiration or sooner termination of this lease, unless the Landlord otherwise requires, remove those items of the Fitout Work from the Premises and promptly make good any damage caused by that removal and comply with clause 12 of this lease.

 

24                                      Deleted

 

25                                      Tenant Acknowledgements

 

25.1                                The Tenant acknowledges that:

 

(a)                                 the Landlord is in the process of completing a refurbishment of the Building;

 

(b)                                 the Landlord discloses to the Tenant the likelihood of the following occurring as a result of the refurbishment:

 

·                    access to the Premises being inhibited; and

 

·                    disruption of, or significant adverse effect on, the Tenant’s operations in the Premises;

 

(c)                                  notwithstanding any rights of quiet enjoyment of the Tenant, the Tenant cannot make any claim for compensation or damages in respect of anything disclosed in this clause for any losses, damages or costs arising from the Landlord’s refurbishment of the Building or anything arising from the likely occurrences disclosed in this clause; and

 

(d)                                 other occupants of the Building will from time to time conduct fit out work on entry, alteration or vacating their premises and unless those works and actions by other occupants materially and substantially derogate from the grant of this lease then the Tenant shall not make any objection, claim or fail to fulfil its obligations under this lease as a result of fitout works described in this clause and conducted by the Landlord or other occupants of the Building.

 

26                                  Deleted

 

27                                  Notwithstanding any other clause in this lease, the Landlord agrees that throughout the term of this lease, the Tenant is entitled to hire out the use of Level 6 of the Premises for the purposes of seminars and conferences to third parties but only in conjunction with the Tenant’s business to be conducted at the Premises.

 

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28                                      First Right of Refusal to Lease

 

28.1                                If both the options to renew contained in both leases registered number AE736051 and AF451595 in respect of suites 9.01 and 9.02 of the Building (“the Suites”) are not correctly and validly exercised then:

 

(a)                                 the Landlord must give notice to the Tenant that the options to renew have not been exercised in accordance with clause 28.1(b).

 

(b)                                 the notice referred to in clause 28.1(a):

 

(i)                                     must be in writing;

 

(ii)                                  must state that the Landlord has decided to lease the Suites; and

 

(iii)                               must state the proposed base rent payable under the leases over the Suites.

 

(c)                                  The Tenant may, but only within 20 Business Days of the date of service of the notice referred to in clause 28.1(b), serve on the Landlord a written notice to the effect that the Tenant has decided to exercise its right to lease the Suites whereupon the Landlord shall instruct their solicitor to prepare a lease over the Suites. Such leases shall be on the same terms and conditions as this lease except for:

 

(i)                                     the “Premises” shall be changed to Suites 9.01 and 9.02;

 

(ii)                                  the term will be from the date of the Tenant’s notice in accordance with clause 28.1(c) to 30 June 2017;

 

(iii)                               the option period will be 5 years;

 

(iv)                              the rent reviews during the term will be on the anniversary of the commencement date of the new lease and 1 July 2017 will be a Market Review Date;

 

(v)                                 the rent reviews during the option term will be on the anniversary of the commencement date of the option term;

 

(vi)                              the base rent payable at the commencement of the leases shall be determined by agreement between the parties in good faith, however if the parties cannot agree within 30 days of the Tenant’s notice in accordance with clause 28.1(c) then the parties will appoint a Valuer in accordance with clause 3.5 who must determine the market rent in accordance with clause 3.9 except that for the purposes of this clause 28, clause 3.9.8 is deleted and replaced with the following new clause 3.9.8;

 

“3.9.8                              take into account of any incentive paid, provided or allowed to the Tenant or which would be likely to be paid, provided or allowed to a tenant in

 

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relation to a new tenancy in respect of the Premises were they vacant.”

 

(vii)                           this first right of refusal shall be deleted; and

 

(viii)                        clause 29 shall be deleted.

 

(d)                                 Within seven days after service of the leases referred to in clause 28.1(c), the Tenant must return the duly signed leases to the Landlord’s solicitor together with the original bank guarantees required under the leases, evidence of insurances required under the lease and all cheques required by the Landlord.

 

(e)                                  In the event of the Tenant failing to give notice within the said period that it has decided to exercise its right to lease the Suites, the Landlord is at liberty to lease the Suites to other parties.

 

(f)                                   The rights contained in this clause 28 are personal to the Tenant only and are not assignable to any assignee or transferee.

 

29                                      Licensed Area

 

29.1                                “Licensed Area” in this clause means an area in the basement of the Building nominated by the Landlord from time to time.

 

29.2                                Subject to this clause 29, during the Term the Landlord grants to the Tenant a non exclusive licence to use the Licensed Area only to be used for the storage of non-motorised bicycles (“the Licence Use’).

 

29.3                                The Tenant must at its own cost:

 

29.3.1              clean the Licensed Area to the extent it is not clean or tidy due to the Licensee’s actions;

 

29.3.2              use the Licensed Area only for the Licence Use;

 

29.3.3              except as a result of the act, negligence or default of the Landlord or the Landlord’s Agents, indemnify the Landlord and the Landlord’s Agents in respect of all claims for loss or damage arising out of the Tenant’s use of the Licensed Area or the use of the Licensed Area by the Tenant’s Employees and Agents;

 

29.3.4              observe and comply with all rules and any building management statement from time to time introduced by the Landlord in relation to the Licensed Area;

 

29.3.5              use the Licensed Area at the risk of the Tenant and except as a result of the act, negligence or default of the Landlord or the Landlord’s Agents, the Tenant releases the Landlord and the Landlord’s Agents from all claims of every kind resulting from any accident, damage or injury occurring as a result of the Licensed Area or its use;

 

29.3.6              not alter, add to or in any way change the Licensed Area;

 

39

 

29.3.7                              the Tenant must at the Tenant’s cost make good and repair any damage to the Licensed Area caused or contributed to by the Tenant or the Tenant’s Employees and Agents;

 

29.3.8                              not grant rights in respect of the use of the Licensed Area, sell, sublet, Assign or otherwise part with possession of the Licensed Area or its interest in the Licensed Area or attempt or offer to do so at any time;

 

29.3.9                              remove all rubbish of the Tenant’s and leave the Licensed Area in a clean state and condition at all times after use by the Tenant;

 

29.4                                The Tenant acknowledges that its right to use and occupy the Licensed Area is a non - exclusive right. The Tenant must allow the Landlord, other tenants (and other parties permitted by the Landlord) unfettered access and use of the Licensed Area.

 

29.5                                The non-exclusive licence granted to the Lessee under this clause 29 will terminate on the Lease End Date or earlier termination of this lease.

 

29.6                                If at any time:

 

29.6.1                              the Landlord, because of the need to repair or maintain any part of the Licensed Area or Building or because of the operation of any Laws or requirement of any Authority is required to close off the Licensed Area; or

 

29.6.2                               the Landlord exercises its rights to close the Licensed Area,

 

then the Tenant is not entitled to terminate or rescind this lease and the Tenant will not have any right of action or claim for compensation or damages or abatement of rent against the Landlord. This lease is not conditional on the Licensed Area being made available to the Tenant.

 

29.7                                Notwithstanding any other provision of this clause 29 or this lease, the Tenant will not have any right of action or claim for compensation or damages or abatement of rent against the Landlord because:

 

29.7.1                              of the use of the Licensed Area by the Landlord, the general public or other tenants; or

 

29.7.2                              the Tenant’s use of any part of the Licensed Area is restricted or limited for any reason whatsoever.

 

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SCHEDULE 1 DEFINITIONS AND INTERPRETATION

 

Definitions

 

1.1                                       Unless the context otherwise requires:

 

Assign means assign, transfer or otherwise dispose of, and Assignment has a like meaning.

 

Assignee means a person to whom the Tenant proposes to assign this lease under clause 8.3.

 

Authorised Officer means:

 

for the Landlord, a director, secretary or an officer whose title contains the word ‘manager’ or a person performing the functions of any of them or any other person appointed by the Landlord to act as an Authorised Officer for the purpose of this lease; and

 

for the Tenant, a director, secretary or person appointed by the Tenant to act as an Authorised Officer for the purpose of this lease.

 

Authority means any government, statutory, public or other authority or body having jurisdiction over the Building or the Premises or any matter or thing relating to the Building or the Premises, including but not limited to WorkCover or any heritage authority or body.

 

Bank Guarantee means an irrevocable and unconditional undertaking in favour of the Landlord only issued by a bank or other person approved by the Landlord containing such terms and conditions as are acceptable to the Landlord for an amount equal to the amount in item 13 with no expiry date.

 

Base Rent means the annual rent payable by the Tenant under this lease in respect of the Premises as specified in Item 7 and varied in accordance with this lease.

 

Building means 341 George Street, Sydney and includes the Premises and includes improvements on the Land including the Landlord’s Fixtures, the Facilities, the Services, the Common Areas and the Premises, and where appropriate includes the Land.

 

Building Outgoings means the items listed in Schedule 2.

 

Claim means claim, demand, liability, loss, damages, proceedings, costs, charges and expenses.

 

Commencement Date means the date in item 3.

 

Common Areas means those parts (if any) of the Building or the Land or both designated by the Landlord from time to time for use by the tenants or other occupiers of the Building and their respective employees, invitees and licensees

 

41

 

and any other persons authorised by the Landlord in common with each other, but excluding the roof of the Building and excluding any access to the roof of the Building.

 

Consumer Price Index means the Consumer Price Index, Sydney — all groups or the index officially substituted for it.

 

Contaminate means to cause Contamination.

 

Contamination means the presence in, on or under the Land of a substance at a concentration above the concentration at which the substance is normally present in, on or under (respectively) land in the same locality, being a presence that presents a risk of harm to human health or any other aspect of the environment, including but not limited to any electromagnetic radiation or electromagnetic substances.

 

Corporations Act means the Corporations Act (Cwth), 2001.

 

Coverings means blinds, screens, awnings or other window coverings.

 

CPI Review Date means each date in item 8.

 

Current CPI means the Consumer Price Index number for the quarter ending immediately before the relevant CPI Review Date.

 

Dealing means a proposed sub-lease under clause 8.2 or a proposed assignment under clause 8.3, and Deal has a corresponding meaning.

 

Dealing Conditions means in relation to a Dealing that:

 

(a)                                 the Tenant, at the time of applying for consent and up to the date of the proposed Dealing, is not in material default in the observance and performance of the Tenant’s Covenants;

 

(b)                                 the Tenant pays the Landlord’s reasonable and proper costs (whether or not the proposed Dealing proceeds to completion) including the Landlord’s costs and legal costs of giving of their consent;

 

(c)                                  the Tenant satisfies the Landlord that the Sublessee or Assignee is a respectable, responsible and solvent person;

 

(d)                                 the Tenant and either the Sublessee or the Assignee execute a deed with the Landlord in a form approved by the Landlord acting reasonably providing among other things that;

 

(i)                                     the Sublessee or Assignee covenants with the Landlord not to cause or contribute to a breach of this lease by the Tenant;

 

(ii)                                  the Tenant and either the Sublessee or the Assignee comply with the Landlord’s reasonable requirements in relation to documenting, stamping and registering the proposed Dealing; and

 

42

 

(iii)                               in the case of an assignment the Tenant procures from the Assignee in favour of the Landlord any guarantee the Landlord requires (including without limit a bank guarantee and personal/directors’ guarantees) in a form acceptable to the Landlord of the obligations and covenants of the Sublessee or Assignee in connection with the Dealing.

 

Default means any breach of this lease by the Tenant and includes (but is not limited to) the defaults listed in clause 11.2.

 

Default Interest Rate means the rate which is two per centum above the highest overdraft rate charged by the Landlord’s Bank for commercial loans in excess of $100,000 as at the due date for payment of a relevant amount of money under this lease.

 

Dispute Notice means a notice given under and which complies strictly with clauses 3.5.

 

Dispute Period means the period commencing on the date of delivery of a Rent Review Notice and ending at 5.00 pm on the date 21 days after that date or within such extended period as the Landlord and the Tenant may agree, time being of the essence.

 

Emergency Procedures means emergency evacuation procedures and practice drills for emergency procedures in relation to the Building.

 

End Date means the earlier of the Expiry Date or the date of termination of this lease.

 

Expiry Date means the date in item 4.

 

Facilities means all facilities to the Building including car stackers, lifts, air-conditioning and toilets.

 

Facilities Hours means the times for the provision of relevant Facilities as specified in item 9.

 

Fixed Percentage Annual Review Date means each date in item 8A.

 

GST means a goods and services tax, consumption tax, value added tax or like tax.

 

Heavy Item means any thing which the Tenant proposes to bring in the Building which exceeds the stated carrying capacity of the floors as advised from time to time by the Landlord.

 

Incentive means any inducement, incentive or concession of any kind however named or structured in connection with a tenancy and includes any premium or capital payment and any period of abatement or reduction of rent or other money.

 

43

 

Inflammable Substance means any substance or thing of an inflammable nature including acetylene gas, volatile or explosive oils and alcohol which in the Landlord’s reasonable opinion might cause damage to the Building.

 

Initial Term means the lease term of two (2) years and three (3) months commencing on 1 April 2015.

 

Insolvency Event means the happening of any of these events:

 

(a)                                 an order is made that a body corporate be wound up;

 

(b)                                 an order appointing a liquidator or provisional liquidator in respect of a body corporate is made;

 

(c)                                  except to reconstruct or amalgamate while solvent on terms consented to by the Landlord acting reasonably, a body corporate enters into, or resolves to enter into, a scheme of arrangement or composition with, or assignment for the benefit of, all or any class of its creditors, or it proposes a reorganisation, moratorium or other administration involving any of them;

 

(d)                                 a body corporate resolves to wind itself up, or otherwise dissolve itself, or gives notice of intention to do so, except to reconstruct or amalgamate while solvent on terms approved by the Landlord acting reasonably or is otherwise wound up or dissolved;

 

(e)                                  a body corporate is or states that it is insolvent;

 

(f)                                   as a result of the operation of section 459F(1) of the Corporations Act, a body corporate is taken to have failed to comply with a statutory demand;

 

(g)                                  a body corporate is, or makes a statement from which it may be reasonably deduced by the Landlord that the body corporate is, the subject of an event described in section 459C(2)(b) or section 585 of the Corporations Act;

 

(h)                                 a body corporate takes any step to obtain protection or is granted protection from its creditors, under any applicable legislation or an administrator is appointed to a body corporate;

 

(i)                                     a person becomes an insolvent under administration as defined in section 9 of the Corporations Act or action is taken which could result in that event; or

 

(j)                                    anything analogous or having a substantially similar effect to any of the events specified above happens under the law of any applicable jurisdiction.

 

Institute means the Australian Property Institute Inc (NSW Division).

 

44

 

Keys means keys, access cards and other access or security devices relating to the Building.

 

Land means the land described in item 1.

 

Landlord means 341 George St Pty Ltd ACN 128 330 192 and its successors and assigns.

 

Landlord’s Agents means the Landlord’s employees, agents, contractors, consultants, invitees, sub tenants, licensees, concessionaires and others who at any time are in the Building with the consent of the Landlord express or implied.

 

Landlord’s Bank means the bank for the time being used by the Landlord.

 

Landlord’s Fixtures means the plant, equipment, fixtures, furniture, furnishings, Coverings, and light fittings in or on the Premises from time to time supplied by the Landlord.

 

Laws means statutes, rules, regulations, proclamations, ordinances or by-laws present or future and includes applicable Australian Standards and Codes of Practice.

 

Market Review Date means each of the dates in item 8.

 

Notice means a notice, approval, consent, certificate, nomination, offer or other communication in connection with this lease.

 

Permitted Use means the use in item 10.

 

Premises means the part of the Building demised by this lease as described in item 2 which:

 

(a)                                 extends up to and including:

 

(i)                      the internal face of external walls and of any internal structural walls of the Building;

 

(ii)                   the false ceiling below the internal face of the concrete ceiling;

 

(iii)                the internal face of the concrete floor; and

 

(iv)               the centre line of any partitions which separate the Premises from other parts of the Building; and

 

(b)                                 includes the Storage Areas, the Tenant’s Fixtures and the Landlord’s Fixtures in that part of the Building.

 

Previous CPI means the Consumer Price Index number for the quarter ending immediately before the Previous Rent Review Date.

 

Previous Rent Review Date means the date being the last CPI Review Date

 

45

 

before the relevant CPI Review Date (or, if there has not been one, the Commencement Date).

 

Reinstate means to reinstate the Building and make the Premises fit for occupation and use of the Tenant or accessible as the case may be following damage of the kind referred to in clause 9.9.

 

Reinstatement Notice means a notice given by the Landlord to the Tenant under clause 9.9(b) of the Landlord’s intention to Reinstate.

 

Related Agreement means any document entered into by the Landlord and the Tenant (or parties related to the Tenant) in connection with this lease.

 

Related Body Corporate means a related body corporate as defined in the Corporations Act 2001.

 

Relevant Interest means the power:

 

(a)                                 to exercise, or to control the exercise of, the right to vote attached to a share or unit; or

 

(b)                                 to dispose of, or to exercise control over the disposal of, a share or unit.

 

Rent Day means the 1st day of each month.

 

Rent Review Notice means a notice given by the Landlord under clauses 3.2 of the Landlord’s assessment of the Base Rent to apply from the relevant Market Review Date.

 

Requirements means requirements, notices, orders or directions received from or given by any Authority.

 

Review Period in respect of a Market Review Date or Licence Fee Market Review Date means the period:

 

(a)                   commencing three months before that Market Review Date or Licence Fee Market Review Date (whichever applies); and

 

(b)                   ending on the day twelve months after that Market Review Date or Licence Fee Market Review Date (whichever applies).

 

Rules means rules relating to the management and care of the Building or the conduct of tenants, occupants and other persons in the Building or the use or occupation of the Building introduced by the Landlord from time to time. As at the Commencement Date the Rules are as set out in Schedule 3.

 

Services means all services supplied to or in the Premises such as air conditioning, gas, water, drainage, fresh air, exhaust systems, electricity, sprinkler heads, heating and lighting and includes:

 

(a)                   the Facilities to the extent that those Facilities are in, connected to or

 

46

 

exclusively service the Premises; and

 

(b)                                 the Landlord’s Fixtures.

 

Sign means a sign, advertisement, notice or similar thing.

 

Storage Areas means 3 storage areas (one on each floor of the Premises) of 26m2 each.

 

Sublessee means a sublessee proposed under clause 8.2.

 

Tenant means Atlassian Pty Ltd ACN 102 443 916 and its successors and assigns.

 

Tenant’s Agents means the Tenant’s employees, agents, contractors, consultants, invitees, sublessees, licensees, concessionaires and others who at any time are in the Building with the consent of the Tenant express or implied.

 

Tenant’s Business means that business of the Tenant carried on in the Premises in compliance with the Permitted Use.

 

Tenant’s Cleaning Costs means the total costs as determined by the Landlord from time to time of providing cleaning services to the Premises.

 

Tenant Cause means:

 

(a)                 any act, omission, neglect, default or misconduct of the Tenant or of the Tenant’s Agents;

 

(b)                 the particular use or occupancy of the Premises by the Tenant or the Tenant’s Agents; or

 

(c)                  the Tenant’s Fixtures.

 

Tenant’s Covenants means the covenants, obligations and agreements on the part of the Tenant contained or implied in this lease.

 

Tenant’s Fixtures means all fixtures, fittings, plant, equipment, furniture, internal partitions, fitout and other articles in the Premises in the nature of trade or tenant’s fixtures (including any riser duct cables) in each case which are owned or leased by the Tenant or otherwise brought on to the Premises by or on behalf of the Tenant.

 

Tenant’s Proportion means the proportion in item 6.

 

Term means the term of this lease in item 5 being the period from the Commencement Date to the Expiry Date.

 

Works Conditions means that relevant works consented to by the Landlord under this lease must be carried out:

 

(a)                         at the Tenant’s cost;

 

47

 

(b)                         to a high quality of design and workmanship;

 

(b)                         by a contractor and under the supervision of persons both approved by the Landlord;

 

(c)                          in accordance with all Laws and Requirements:

 

(d)                         in accordance with plans and specifications approved by the Landlord;

 

(e)                          in accordance with and only after obtaining the approvals of all relevant Authorities;

 

(f)                           only after providing copies to the Landlord of all approvals from relevant Authorities in relation to the works prior to carrying out the works;

 

(g)                          so long as the Tenant provides as-built drawings for the Premises layout and services on completion of the works;

 

(h)                         so long as the Tenant provides copies to the Landlord of all certificates of compliance from relevant Authorities in relation to the works within a reasonable period as nominated by the Landlord (but in any event within 90 days) after the completion of the works;

 

(i)                             so long as the Tenant pays the costs of the Landlord in connection with the works including the Landlord’s costs of giving consent and the fees of any architect or other consultant used by the Landlord in connection with the works;

 

(j)                            subject to any specific conditions of the Landlord’s consent in relation to those works and subject to any fitout guide issued by the Landlord in respect of the Building; and

 

(k)                         the Tenant must ensure that its contractors do not derogate from the grant of lease and rights of quiet enjoyment of any other tenant in the Building and must use their best endeavours not to cause disruption to the business of Westpac Banking Corporation conducted in the Building or to the Landlord’s Builder or its agents.

 

Interpretation

 

1.2                               Unless the context otherwise requires:

 

(a)                                 a reference to this lease or another instrument includes any variation or replacement of any of them;

 

(b)                                 a reference to a statute, ordinance, code or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them;

 

(c)                                  the singular includes the plural and vice versa;

 

48

 

(d)                                 the word ‘person’ includes a firm, a body corporate, an unincorporated association or an authority;

 

(e)                                  a reference to a person includes a reference to the person’s executors, administrators, successors, permitted substitutes (including persons taking by novation) and permitted assigns;

 

(f)                                   an agreement, representation or warranty in favour of two or more persons is for the benefit of them jointly and severally;

 

(g)                                  an agreement, representation or warranty on the part of two or more persons binds them jointly and severally;

 

(h)                                 a reference to an accounting term is to be interpreted in accordance with approved accounting standards under the Corporations Act and, if not inconsistent with those accounting standards, generally accepted principles and practices in Australia consistently applied by a body corporate or as between bodies corporate and over time;

 

(i)                                     a reference to any thing (including any amount) is a reference to the whole and each part of it and a reference to a group of persons is a reference to all of them collectively, to any two or more of them collectively and to each of them individually;

 

(j)                                    a reference to the president of a body or authority is a reference, if there is no such person, to the senior officer of the body or authority or to the person who fulfils the duties of president;

 

(k)                                 a reference to a clause is a reference to a clause in this lease;

 

(l)                                     ‘include’ (in any form) when introducing a list of items does not limit the meaning of the words to which the list relates to those items or to items of a similar kind;

 

(m)                             a reference to this lease includes all schedules and annexures to this lease and the Rules;

 

(n)                                 a reference to ‘month’ or ‘monthly’ means respectively calendar month and calendar monthly; and

 

(o)                                 a reference to ‘day’ means any day of the week including Saturday, Sunday and public holidays.

 

1.3                                               If this lease prohibits the Tenant from doing a thing then:

 

(a)                                 the Tenant must do everything necessary to ensure that the Tenant’s Agents do not do that thing; and

 

(b)                                 the Tenant may not allow or cause any person to do that thing.

 

49

 

1.4                               If this lease requires the Tenant to do a thing then the Tenant must do everything necessary to ensure that the Tenant’s Agents also do that thing.

 

1.5                               Headings are inserted for convenience and do not affect the interpretation of this lease.

 

1.6                               In the interpretation of this lease no rule of construction applies to the disadvantage of one party on the basis that that party put forward the lease.

 

50

 

SCHEDULE 2 BUILDING OUTGOINGS

 

Statutory or regulatory

 

1.         Rates and Taxes

 

All rates, statutory charges and taxes (but only land tax on a single bolding basis, calculated on the table value of the Land and excluding the Landlord’s income tax or capital gains tax), assessments and charges (including charges for water, excess water, reticulation or discharge of water or sewerage or drainage, including meter rents and sewerage usage, drainage, trade waste and fire services), fees and levies (excluding levies for the use of areas as car parking spaces) and impositions and duties of any Authority assessed, charged, imposed or levied in respect of the building, the Land or services to the Building or the Land (regardless of ownership) or the Landlord’s ownership and operation of them including in respect of receipts of rent and other moneys under this lease (including any bank debits tax and financial institutions duty) except where the rate, tax, fee or levy arises due to the unlawful, improper or negligent act or the unlawful, improper or negligent omission of the Tenant, in which case the costs cannot be recovered by the Landlord.

 

2.         Insurance

 

Insurance premiums, stamp duty and brokers fees for:

 

(a)                                 insurance of the Building (but not to the extent that such insurance exceeds its full insurable reinstatement value),

 

(b)                                 insurance of the Building and the Landlord and the Manager against other risks relating to the Landlord’s interest in the Building as the Landlord, acting reasonably, deems necessary or desirable (including public liability, consequential and economic loss (and loss of rents and outgoings), machinery breakdown and any other insurance incidental to ownership, repair, maintenance, management and security of the Building and the Land (or either of them)) but excluding loss of rents arising from normal vacancies during letting up periods;, and

 

(c)                                  workers compensation insurance for people performing functions in relation to the Building (where applicable, adjusted equitably reflect the proportion of time spend in relation to the building and to other activities).

 

3.         Repairs and maintenance

 

(a)                                 Costs of maintaining and repairing (including repair by replacement of parts) the Common Areas, plant rooms, cleaners’ rooms, security or fire control rooms, service ducts and risers (and fixtures, fittings and furnishings in them) including painting them).

 

(b)                                 Costs of carrying out safety and environmental audits in respect of the Building or the Land, except where the audit is required due to the unlawful, improper or negligent act or the unlawful, improper omission of the Landlord.

 

51

 

4.         Services

 

Costs of maintaining and repairing (including repair by replacement of parts) the following or or of the Building or the Land and providing services in respect of:

 

(a)                                 the Elevators;

 

(b)                                 the air-conditioning plant and equipment;

 

(c)                                  the fire protection services, sprinkler and fire alarm installations;

 

(d)                                 diesel generators;

 

(e)                                  building automation systems;

 

(f)                                   landscaping, planting, weeding and maintaining any gardens, lawns, plants and flowers in Common Areas;

 

(g)                                  security, control, tenant liaison services and systems for the Building;

(h)                                 control of pests in Common Areas;

 

(i)                                     operations management and building supervision services for the Building;

 

(j)                                    the auditor’s certificate pursuant to clause 3.4(b)(2); and

 

(k)                                 all other services provided in respect of the Building and the Land (or either of them).

 

5.         Management

 

A management fee or charge to cover the Landlord’s cost of having the Building and the Land managed.

 

6.         Energy costs

 

All costs for electricity, gas, oil and any other source or type of energy, power or fuel in respect of the Building or the Land.

 

7.         Strata management costs

 

Any fees or levies payable by the Landlord under the Strata Management Statement.

 

8.         Cleaning

 

Costs of providing toilet and washroom requisites in the Building and cleaning:

 

(a)                                 all toilets, basins, taps, sanitary stacks, fountains, pipes, plumbing and associated appurtenances in the Building;

 

(b)                                 the interior and exterior surfaces of all windows in the Building; and

 

(c)                                  all Common Areas, plant rooms, cleaners’ rooms, security or fire control rooms, service ducts and risers and other areas (except those occupied for the time being

 

52

 

by a tenant or licensee) cleaned in the Building (including all fixtures, fittings and furnishings in them and garbage and refuse removal and the cost of any licence or permit for disposal of waste from the Building).

 

9                 All costs of complying with the Australian Building Greenhouse Rating Standard and maintaining the Building to that standard and all costs of complying with the requirements of the Department of the Environment and Water Resources Australian Greenhouse Office.

 

53

 

SCHEDULE 3 RULES

 

The provisions of the lease apply to these Rules.

 

1.                                      The Tenant may not:

 

(a)                                 smoke in the Building or in any place in which smoking is at any time not permitted by law or which is or may be a nuisance or injurious to the health or well being of any person; or

 

(b)                                 put up signs, notices, advertisements, blinds or awnings, antennae or receiving dishes or install vending or amusement machines without the Landlord’s approval in writing; or

 

(c)                                  hold auction, bankrupt or fire sales in the Premises; or

 

(d)                                 keep an animal or bird on the Premises; or

 

(e)                                  use a business name which includes words connecting the business name with the Building without the Landlord’s approval in writing; or

 

(f)                                   remove floor coverings from where they were originally laid in the Premises without the Landlord’s approval in writing; or

 

(g)                                  do anything to the floor coverings in the Building which affects any guarantee in connection with them if the Landlord has given the Tenant a notice setting out the relevant terms of the guarantee; or

 

(h)                                 use any method of heating, cooling or lighting the Premises other than those provided or approved by the Landlord; or

 

(i)                                     use the passenger lifts to carry goods or equipment; or

 

(j)                                    operate a musical instrument, radio, television or other equipment that can be heard outside the Premises; or

 

(k)                                 throw anything out of any part of the Building or down lift or light wells; or

 

(l)                                     move heavy or bulky objects through any part of the Building unless authorised by the Landlord, and at such times as the Landlord may demand; or

 

(m)                             obstruct or interfere with:

 

(i)                                     windows in the Premises except by internal blinds or curtains approved by the Landlord; or

 

(ii)                                  any air vents, air conditioning ducts or skylights in the Premises; or

 

(iii)                               the Common Areas; or

 

(n)                                 interfere with directory boards provided by the Landlord; or

 

(o)                                 park or permit or suffer any of the Tenant’s Employees and Agents to park or leave any motor or other vehicle in any place in which the Landlord may from time to time prohibit parking; or

 

54

 

(p)                                 store or permit any item to be left outside the Premises without the prior approval in writing of the Landlord.

 

2.                                      The Tenant must:

 

(a)                                 put up signs in the Premises prohibiting smoking if required by the Landlord; and

 

(b)                                 if the Landlord approves the Tenant’s use of a business name which is connected with the Building, terminate any right it has to use that business name on the date it must vacate the Premises; and

 

(c)                                  secure the Premises when they are unoccupied and comply with the Landlord’s directions about Building security; and

 

(d)                                 if there are directory boards, submit the form in which it requires its name and description to appear on them to the Landlord for its approval, make whatever changes the Landlord reasonably requires and pay the Landlord on demand the cost of placing that information on the directory boards; and

 

(e)                                  comply with any directions of the Landlord in connection with the disposal of or recycling of rubbish; and

 

(f)                                   comply with loading and unloading regulations for the Building which may be advised by the Landlord to the Tenant in writing from time to time.

 

55

 

Execution page

 

Certified as correct for the purposes of the Real Property Act 1900 and executed on behalf of the corporation named below by the authorised persons(s) whose signature(s) appear(s) below pursuant to the authority specified.

 

	
DATE:
    	
22/12/11
    	
 
    

 

Executed by :                    341 George St Pty Ltd

 

by its attorney pursuant to Power of Attorney Book 4572 No 894:

 

	
/s/ Andrew Wennerborn
    	
 
    	
/s/ Jeanette   Pavicic
    
	
Signature of attorney
    	
 
    	
Signature of witness
    
	
 
    	
 
    	
 
    
	
Andrew Wennerborn
    	
 
    	
Jeanette Pavicic
    
	
Name of attorney   (print)
    	
 
    	
Name of witness (print)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
131 York St, Sydney
    
	
 
    	
 
    	
Address of witness
    

 

Corporation:                     Atlassian Pty Ltd

 

Authority:                                     Section 127 of the Corporations Act 2001

 

	
/s/ Scott Farquhar
    	
 
    	
/s/ John Bruce-Smith
    
	
Signature of authorised   person
    	
 
    	
Signature of authorised   person
    
	
 
    	
 
    	
 
    
	
Scott Farquhar
    	
 
    	
John Bruce-Smith
    
	
Name of authorised   person (print)
    	
 
    	
Name of authorised   person (print)
    
	
 
    	
 
    	
 
    
	
Director
    	
 
    	
Secretary
    
	
Office Held
    	
 
    	
Office Held
    
	
(Director or Secretary   or Sole Director/Secretary)
    	
 
    	
(Director or Secretary   or Sole Director/Secretary)
    

 

56

 

Land and Property Information

 

NEW SOUTH WALES

 

I certify that the person(s) signing opposite, with whom I am personally acquainted or as to whose identity I am otherwise satisfied, signed this instrument in my presence.

 

	
Signature of witness:
    	
/s/ Charmain Jones
    	
 
    
	
Name of witness:
    	
Charmain Jones
    	
 
    
	
Address of witness:
    	
C/- Level 9, 201 Sussex St Sydney
    	
 
    

 

Certified correct for the purposes of the Real Property Act 1900 by the person(s) named below who signed this instrument pursuant to the power of attorney specified

 

	
Signature of attorney:
    	
/s/ Zac Kuzmanoski
    	
 
    
	
Attorney’s name:
    	
Zac Kuzmanoski
    	
 
    
	
Attorney’s position:
    	
Relationship Executive
    	
 
    
	
Signing on behalf of:
    	
COMMONWEALTH BANK OF AUSTRALIA ABN  48   123 123 124
    	
 
    
	
Power of attorney
    	
-Book:
    	
4548
    	
 
    
	
 
    	
- No:
    	
494
    	
 
    

 

57

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