Document:

exv10w12

Exhibit 10.12

	 	 	 	 	 
	QUEENSLAND LAND REGISTRY

	 	LEASE
	 	Form 7 Version 6
	Land Title Act 1994, Land Act 1994 and Water Act 2000

	 	 	 	Page 1 of 50

	 	 	 
	Dealing Number
	 	Duty Imprint

	 	 	 
	OFFICE
USE ONLY

Privacy Statement

Collection of this information is authorised by the Land Title Act 1994 the Land Act 1994 and the
Water Act 2000 and is used to maintain the publicly searchable registers in the land registry and
the water register. For more information about privacy in NR&W see the department’s website.

	 	 

	 	 	 	 	 	 	 
	1.

	 	Lessor
	 	Lodger (Name, address & phone number)
	 	Lodger Code
	 

	 	MULTIPLEX CAROLE PARK LANDOWNER PTY LIMITED 

ABN 15 784 933 895
	 	Deacons

Level 17, 175 Eagle Street	 	 
	 

	 	 	 	Brisbane QLD 4000	 	 
	 

	 	 	 	3309 0888 2576695	 	 

	 	 	 	 	 	 	 	 	 	 	 
	2.

	 	Lot on Plan Description
	 	County
	 	Parish
	 	Title Reference

	 

	 	LOT 108 ON CPSL 7249
	 	STANLEY
	 	WOOGAROO
	 	 	15798160	 

	 	 	 	 	 	 	 
	3.

	 	Lessee      Given names
	 	Surname/Company name and number
	 	(include tenancy if more than one)
	 
	 

	 	 	 	JAMES HARDIE AUSTRALIA PTY LIMITED ACN 084 635 558	 	 

	 	 	 	 	 
	4.

	 	Interest being leased
	 	 
	 

	 	FEE SIMPLE	 	 

	 	 	 	 	 
	5.

	 	Description of premises being leased
	 	 
	 

	 	PART OF THE LAND BEING ALL OF THE BUILDINGS LOCATED ON THE LAND

	 	 	 	 	 	 	 	 	 
	6.

	 	Term of lease
	 	 	7.	 	 	Rental/Consideration
	 

	 	Commencement date/event: 20 November 2007
	 	 	 	 	 	See attached schedule
	 

	 	Expiry date: 23/03/2019 and/or Event:	 	 	 	 	 	 
	 

	 	#Options: 2 X 10 YEARS	 	 	 	 	 	 
	 

	#

	 	Insert nil if no option or insert option period (eg 3 years or 2 x 3 years)

	 	 	 	 	 
	8.

	 	Grant/Execution
	 	 

The Lessor leases the premises described in item 5 to the Lessee for the term stated in item 6 subject to the covenants and conditions contained in the attached schedule.

Witnessing officer must be aware of his/her obligations under section 162 of the Land Title Act 1994

	 	 	 	 	 	 	 
	  /s/ Philippa Cass

	 	signature	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	  Philippa Cass

	 	full name
	 	 	 	/s/ Ian Robert O’Toole
	 	 	 	 	 
	 

	 	 	 	 	 	Director
	 
	 	 	 	 	 	 
	   Solicitor

	 	qualification
	 	 	 	/s/ Alex Carrodus
	 	 	 	 	 
	 

	 	 	 	18/10/2007
	 	Secretary

	 	 	 	 	 
	Witnessing Officer

	 	Execution Date
	 	Lessor’s Signature
	(Witnessing officer must be in accordance with Schedule 1
of the Land Title Act 1994 eg Legal Practitioner, JP, C Dec)

	 	 	 	MULTIPLEX CAROLE PARK LANDOWNER PTY LIMITED ABN 15 784 033 895

	 	 	 	 	 
	9.

	 	Acceptance
	 	 
	 

The lessee accepts the lease and acknowledges the amount payable or other considerations for the
lease.

 

 

Form 20 Version 2

Page 2 of 50

	 	 	 	 	 	 	 
	  /s/ Bruce J.W. Potts

	 	signature	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	  Bruce J. W. Potts

	 	full name
	 	 	 	/s/ Joanne Marchione
	 	 	 	 	 
	 

	 	 	 	 	 	Director James Hardie Australia Pty Limited Attorney by its attorney,
	  Legal Practitioner

	 	qualification	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	18/10/2007
	 	Secretary Joanne Marchione, under power of
attorney registered number 70756440 dated 12 March 2004

	 	 	 	 	 
	Witnessing Officer

	 	Execution Date
	 	Lessee’s Signature
	(Witnessing officer must be in accordance with Schedule 1
of the Land Title Act 1994 eg Legal Practitioner, JP, C Dec)

	 	 	 	JAMES HARDIE AUSTRALIA PTY LIMITED ACN 084 635 558

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	           SCHEDULE
	 	Form 20 Version 2

Page 3 of 50

Title Reference 15798160

Schedule of Terms

Operative Provisions

	 	 	 	 	 
	Item	 	Term	 	Definition
	1.

	 	Lessor
	 	Multiplex Carole Park Landowner Pty Limited (ABN 15 784 033 895) of 1 Kent Street, Sydney, NSW
	 
	 	 	 	 
	2.

	 	Lessee
	 	James Hardie Australia Pty Limited (ACN 084 635 558) of Level 3, 22
Pitt Street, Sydney, NSW
	 
	 	 	 	 
	3.

	 	Land
	 	Certificate of Title 15798160
	 
	 	 	 	 
	4.

	 	Premises
	 	All of the Buildings situated at the Corner of Cobalt and Silica
Streets, Carole Park, QLD as hatched on the Plan in Annexure D in
the condition in which they exist as at the Effective Date and
includes the Lessor’s Fixtures
	 
	 	 	 	 
	5.

	 	Term
	 	11 Years 4 months 4 days
	 
	 	 	 	 
	6.

	 	Commencing Date
	 	20 November 2007
	 
	 	 	 	 
	7.

	 	Terminating Date
	 	23 March 2019
	 
	 	 	 	 
	8.

	 	Further Term
	 	2 further terms each of 10 years, the last expiring on 23 March 2039.
	 
	 	 	 	 
	9.

	 	Rent
	 	$1,092,726.96 per annum, (excluding GST) payable as prescribed in
clauses 4.1 and 4.2, and subject to review as specified in clauses
4.4, 4.5, 4.6 and 4.7
	 
	 	 	 	 
	10.

	 	Review Dates
	 	The Review Dates for review of the Rent are as follows:
	 
	 	 	 	 
	 

	 	 	 	(a)   Fixed Review Dates shall be each anniversary of the Effective
Date during the Term other than the Commencing Date of a Further
Term; and

	 
	 	 	 	 
	 

	 	 	 	(b)   Market Review Dates shall be the seventh anniversary of the
Effective Date.

	 
	 	 	 	 
	11.

	 	Permitted Use
	 	Manufacture, warehousing, distribution and sales of fibre cement
products and systems and all associated activities (including
offices) and any other use for which the Lessee may lawfully use the
Premises.
	 
	 	 	 	 
	12.

	 	Public Risk Insurance
	 	$50,000,000
	 
	 	 	 	 
	13.

	 	Review Dates for the

Further term
	 	The Review Dates for the review of the Rent in each Further Term and
the method of review shall be as follows:
	 
	 	 	 	 
	 

	 	 	 	(a)   Fixed Review Dates shall be on each anniversary of the
Commencing Date of that Further Term other than the Commencing Date
of a Further Term; and

	 
	 	 	 	 
	 

	 	 	 	(b)   Market Reviews Dates shall be the Commencing Date of that
Further Term and the fifth anniversary of the Commencing Date of
that Further Term.

	 
	 	 	 	 
	14.

	 	Lessee’s Proportion
	 	79.20%

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	      SCHEDULE
	 	Form 20 Version 2

Page 4 of 50

Title Reference 15798160

	1.	 	Interpretation
	 
	1.1	 	Definitions
	 
	 	 	The following definitions together with those in the Schedule apply unless the context
requires otherwise.
	 
	 	 	Appurtenance includes any drain, basin, sink, toilet or urinal.
	 
	 	 	Australian Institute means the Australian Property Institute Inc. (Queensland Division).
	 
	 	 	Authorisation includes any authorisation, approval, consent, licence, permit, franchise,
permission, filing, registration, resolution, direction, declaration or exemption.
	 
	 	 	Authorised Officer means any director or secretary, or any person from time to time nominated
as an Authorised Officer by a party by a notice to the other party accompanied by specimen
signatures of all new persons so appointed.
	 
	 	 	Authority includes:

	 	(a)	 	(government) any government in any jurisdiction, whether federal, state,
territorial or local;
	 
	 	(b)	 	(public utility) any provider of public utility services, whether statutory or
not; and
	 
	 	(c)	 	(other body) 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).

	 	 	Building means those improvements (if any) described or referred to in Item 4.
	 
	 	 	Business Day means any day except Saturday or Sunday or a day that is a public holiday
throughout Queensland.
	 
	 	 	Claim includes any claim, demand, remedy, suit, injury, damage, loss, Cost, liability,
action, proceeding, right of action, claim for compensation and claim for abatement of rent
obligation.
	 
	 	 	Competitor means any person engaged in the manufacture, distribution or sale of fibre cement
products and underground drainage pipes made of concrete or fibre cement and:

	 	(a)	 	includes persons engaged in the businesses known as or trading under names which
include the words “Lafarge”, “CSR” and “BGC”; but
	 
	 	(b)	 	excludes any third party logistics operator.

	 	 	Consent means prior written consent.
	 
	 	 	Council means lpswich City Council.
	 
	 	 	Cost includes any reasonable cost, charge, expense, outgoing, payment or other expenditure of
any nature (whether direct, indirect or consequential and whether accrued or paid) including
where appropriate all rates and all reasonable legal fees.

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	      SCHEDULE
	 	Form 20 Version 2

Page 5 of 50

Title Reference 15798160

	 	 	Effective Date means 24 March 2004.
	 
	 	 	Employees means employees, agents, invitees and contractors.
	 
	 	 	Environment means components of the earth, including

	 	(a)	 	land, air and water;
	 
	 	(b)	 	any layer of the atmosphere;
	 
	 	(c)	 	any organic or inorganic matter and any living organism; and
	 
	 	(d)	 	human-made or modified structures and areas, and includes interacting natural
ecosystems that include components referred to in paragraphs (a) to (c).

	 	 	Environmental Law means a provision of Law, or a Law, which provision or Law relates to any
aspect of the Environment, safety, health or the use of Substances or activities which may
harm the Environment or be hazardous or otherwise harmful to health.
	 
	 	 	Event of Default means any event referred to in clause 12.1.
	 
	 	 	Fixed Review means a review of the Rent in accordance with clause 4.7.
	 
	 	 	Fixed Review Dates means a date on which a Fixed Review is to occur as set out in Item 10.
	 
	 	 	Further Term means the further term or terms (as the case may be), specified in Item 8.
	 
	 	 	GST means the goods and services tax as imposed by the GST Law including, where relevant, any
related interest, penalties, fines or other charge to the extent caused by any default or
delay by the Lessee.
	 
	 	 	GST Amount means, in relation to a Payment, an amount arrived at by multiplying the Payment
(or the relevant part of a Payment if only part of a Payment is the consideration for a
Taxable Supply) by the appropriate rate of GST (being 10% when the GST Law commenced).
	 
	 	 	GST Law has the meaning given to that term in A New Tax System (Goods and Services Tax) Act
1999, or, if that Act is not valid or does not exist for any reason, means any Act imposing
or relating to the imposition or administration of a goods and services tax in Australia and
any regulation made under that Act.
	 
	 	 	Guarantor means James Hardie Industries N.V.
	 
	 	 	Initial Term means 11 years, 3 months and 23 days
	 
	 	 	Interest Rate means the minimum rate of interest charged by the Commonwealth Bank of
Australia, on an overdraft of $100,000 plus 2%.
	 
	 	 	Land means the land described in Item 3.
	 
	 	 	Land Tax means land taxes or taxes in the nature of a tax on land.

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	       SCHEDULE
	 	Form 20 Version 2

Page 6 of 50

Title Reference 15798160

	 	 	Law includes any requirement of any statute, rule, regulation, proclamation, ordinance or
by-law, present or future, and whether state, federal or otherwise.
	 
	 	 	Lease means this lease between the Lessor and the Lessee.
	 
	 	 	Lease Year means every 12 month period commencing on and from the Commencing Date.
	 
	 	 	Lessee means the party specified in Item 2, its successors and assigns.
	 
	 	 	Lessee’s Business means the business carried on or entitled to be carried on in the Premises
in compliance with the Permitted Use of the Premises.
	 
	 	 	Lessee’s Fitout and Fittings means all fixtures, fittings, plant, equipment, partitions or
other articles and chattels of all kinds (other than stock-in-trade) which satisfy all of the
following:

	 	(a)	 	they are owned by or leased by third parties to the Lessee; and
	 
	 	(b)	 	they are, at any time, in or attached to the Premises or the Licensed Area.

	 	 	Lessee’s Proportion means that proportion which the Lettable Area of the Premises and the
Licensed Areas bears to the area of the Land determined in accordance with the Method of
Measurement from time to time and which at the Commencing Date of the lease for the Initial
Term is that proportion set out in Item 14.
	 
	 	 	Lessor means the party specified in Item 1 or the party for the time being entitled to the
reversion expectant upon expiration or prior determination of the Lease.
	 
	 	 	Lessor’s Asset Register means the list of items in the Premises or the Licensed Area
contained in Annexure A.
	 
	 	 	Lessor’s Fixtures means all fixtures in the Premises owned by the Lessor including the items
listed in the Lessor’s Asset Register and:

	 	(a)	 	(general) all plant and equipment, mechanical or otherwise which forms part of
the base Building, fittings, fixtures, furniture, furnishings of any kind, including
window coverings, blinds and light fittings; and
	 
	 	(b)	 	(fire fighting) all stop cocks, fire hoses, hydrants, other fire prevention aids
and all fire fighting systems from time to time located in the Premises or which may
service the Premises and be on the Land.

	 	 	Lettable Area means the gross lettable area determined in accordance with the Method of
Measurement.
	 
	 	 	Licensed Area means the area the subject of the licence granted under clause 22 being that
part of the Land and the improvements hatched on the plan in Annexure C.
	 
	 	 	Liquidation includes liquidation, official management, receivership, compromise, arrangement,
amalgamation, administration, reconstruction, winding up, dissolution, assignment for the
benefit of creditors, arrangement or compromise with creditors, bankruptcy or death.

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	      SCHEDULE
	 	Form 20 Version 2

Page 7 of 50

Title Reference 15798160

	 	 	Make Good Buildings means the buildings and other improvements hatched on the plan in
Annexure B.
	 
	 	 	Market Rent means the Rent which could be obtained with respect to the Premises as at a
particular Market Review Date in an open market by a willing but not anxious Lessor assessed
using the criteria in clause 4.5(g).
	 
	 	 	Market Review means a review of the Rent in accordance with clause 4.4 and (if applicable)
clauses 4.5 and 4.6.
	 
	 	 	Market Review Date means a date on which a Market Review is to occur as set out in Item 10.
	 
	 	 	Method of Measurement means the Method of Measurement of Buildings (1997 Revision) adopted by
the Property Council of Australia Limited (formerly the Building Owners and Managers
Association of Australia Limited). The Method of Measurement shall remain fixed for the term
of this Lease and any Further Term despite any subsequent editions or variations which may be
issued.
	 
	 	 	Non-Make Good Buildings means the buildings and other improvements crosshatched on the plan
in Annexure B.
	 
	 	 	Outgoings means:

	 	(a)	 	(council rates) all charges payable to the Council:

	 	(i)	 	levied or charged with respect to the Land or the Premises or their
use or occupation;
	 
	 	(ii)	 	for any services to the Land or the Premises of the type from time
to time provided by the Council; and/or
	 
	 	(iii)	 	for waste and general garbage removal from the Land or the
Premises (including any excess);

	 	(b)	 	(water rates) all charges payable to an Authority:

	 	(i)	 	levied or charged with respect to the Land or the Premises or their
use or occupation; and
	 
	 	(ii)	 	for the provision, reticulation or discharge of water and/or
sewerage and/or drainage (including meter rents) to the Land or the Premises;

	 	(c)	 	(management fees) reasonable fees for management of the Premises, capped at 1% of
the Rent and Outgoings from time to time; and
	 
	 	(d)	 	(insurances) where the Lessor has effected the policy, all insurance premiums
payable in respect of insurances for the Premises for its full insurable or replacement
value to cover damage by fire, storm, tempest, impact and other usually insured risks of
that nature, including loss of rent insurance (capped at 18 months cover),
	 
	 	 	 	but excluding from this Paragraph any amount which is:

	 	(i)	 	(already included) already included by virtue of another Paragraph
of this definition;

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	       SCHEDULE
	 	Form 20 Version 2

Page 8 of 50

Title Reference 15798160

	 	(ii)	 	(otherwise payable) otherwise payable by the Lessee pursuant to the
provisions of this Lease;
	 
	 	(iii)	 	(tax) Land Tax, income tax and capital gains tax of any nature; or
	 
	 	(iv)	 	(payable by the Lessor) otherwise payable by the Lessor with
respect to its obligations under this Lease.

	 	 	Payment means:

	 	(a)	 	the amount of any monetary consideration (other than a GST Amount payable under
this clause); and
	 
	 	(b)	 	the GST Exclusive Market Value of any non-monetary consideration,

	 	 	paid or provided by the Lessee for this Lease or by the Lessor or the Lessee for any other
Supply made under or in connection with this Lease and includes:

	 	(c)	 	any Rent or contribution to Outgoings; and
	 
	 	(d)	 	any amount payable by way of indemnity, reimbursement, compensation or damages.

	 	 	Permitted Use means the use of the Premises specified in Item 11.
	 
	 	 	Premises means part of the Land being the buildings and other improvements specified in Item
4, and includes any of the Lessor’s Fixtures from time to time in or on them.
	 
	 	 	Proposed Work includes any proposed sign, work, alteration, addition or installation in or to
the Premises, the Lessor’s Fixtures and/or to the existing Lessee’s Fitout and Fittings by
the Lessee and/or by the Lessee’s Employees.
	 
	 	 	Related Body Corporate has the same meaning as given to that term in the Corporations Act
2001.
	 
	 	 	Rent means the rent specified in Item 9 as varied from time to time in accordance with this
Lease.
	 
	 	 	Requirement includes any notice, order, direction, stipulation or similar notification
received from or given by any Authority pursuant to and enforceable under any Law (including
Environmental Law), whether in writing or otherwise, and regardless of to whom it is
addressed or directed.
	 
	 	 	Review Date means a date on which either a CPI Review or a Market Review is to occur as set
out in Item 10.
	 
	 	 	Services means electricity, gas, sewerage, water and telephone services.
	 
	 	 	Substance includes:

	 	(a)	 	any form of organic or chemical matter whether solid, liquid or gas; and
	 
	 	(b)	 	radiation, radioactivity and magnetic activity.

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	        SCHEDULE
	 	Form 20 Version 2

Page 9 of 50

Title Reference 15798160

	 	 	Tax Act means the Income Tax Assessment Act 1936 (Cth) and/or the Income Tax Assessment Act
1997 (Cth) (as the case may require).
	 
	 	 	Terminating Date means:

	 	(a)	 	the date specified in Item 7;
	 
	 	(b)	 	any earlier date on which this Lease is determined;
	 
	 	(c)	 	the date of expiration or earlier termination of the Further Term or, if more
than one, the last Further Term; or
	 
	 	(d)	 	the end of any period of holding over under clause 3.3,

	 	 	as appropriate.
	 
	 	 	Termination Payment means:

	 	(a)	 	in respect of clause 7.1(e)(i)(A), the net present value of the aggregate of:

	 	(i)	 	the Rent and the Lessee’s Proportion of Outgoings payable for the
balance of the Term calculated from the date of termination; and
	 
	 	(ii)	 	the cost of compliance with the Lessee’s obligations in clause 13,

using the 10 year Commonwealth of Australia Government bond interest rate plus 115
basis points; and

	 	(b)	 	in respect of clauses 7.1(e)(i)(B)and 7.1(e)(ii), the net present value of the
aggregate of:

	 	(i)	 	the Rent and the Lessee’s Proportion of Outgoings payable for the
balance of the Term with respect to the proportionate area of the Premises
surrendered calculated from the date of the surrender; and
	 
	 	(ii)	 	the cost of compliance with the Lessee’s obligations in clause 13,

using the 10 year Commonwealth of Australia Government bond interest rate plus 115
basis points.

	 	 	Trust means the Multiplex Carole Park Landowning Trust.
	 
	 	 	Umpire means a person who:

	 	(a)	 	is at the relevant time a Valuer;
	 
	 	(b)	 	is appointed under clause 4.5;
	 
	 	(c)	 	accepts his appointment in writing; and
	 
	 	(d)	 	undertakes to hand down his determination of the Rent within 20 Business Days
after being instructed to proceed.

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	        SCHEDULE
	 	Form 20 Version 2

Page 10 of 50

Title Reference 15798160

	 	 	Valuer means a person who:

	 	(a)	 	is a full member of the Australian Institute and has been for the last 5 years;
	 
	 	(b)	 	holds a licence to practise as a valuer of premises of the kind leased by this Lease;
	 
	 	(c)	 	is active in the relevant market at the time of his appointment;
	 
	 	(d)	 	has at least 3 years experience in valuing premises of the kind leased by this Lease; and
	 
	 	(e)	 	undertakes to act promptly in accordance with the requirements of this Lease.

	1.2	 	General

	 	 	Headings are for convenience only and do not affect interpretation. The following rules of
interpretation apply unless the context requires otherwise.

	 	(a)	 	(Plurals) The singular includes the plural and conversely.
	 
	 	(b)	 	(Gender) A gender includes all genders.
	 
	 	(c)	 	(Other grammatical forms) Where a word or phrase is defined, its other
grammatical forms have a corresponding meaning.
	 
	 	(d)	 	(Person) A reference to a person, corporation, trust, partnership, unincorporated
body or other entity includes any of them.
	 
	 	(e)	 	(clause) “clause”, “Paragraph”, “Schedule” or “Annexure” refers to this Lease and
“Item” refers to the Schedule of Terms forming part of this Lease.
	 
	 	(f)	 	(Successors and assigns) A reference to any party to this Lease or any other
agreement or document includes the party’s successors and substitutes or assigns.
	 
	 	(g)	 	(Joint and several obligations) A reference to a right or obligation of any two
or more persons confers that right, or imposes that obligation, as the case may be,
jointly and severally.
	 
	 	(h)	 	(Extrinsic terms) Subject to the provisions of any written material to which the
Lessor and the Lessee are parties, the Lessor and the Lessee agree that:

	 	(i)	 	(whole agreement) the terms contained in this Lease cover and
comprise the whole of the agreement in respect of the Premises between the Lessor
and the Lessee; and
	 
	 	(ii)	 	(no collateral agreement) no further terms, whether in respect of
the Premises or otherwise, shall be implied or arise between the Lessor and the
Lessee by way of collateral or other agreement made by or on behalf of the Lessor
or by or on behalf of the Lessee on or before or after the execution of this
Lease, and any implication or collateral or other agreement is excluded and
negatived.

	 	(i)	 	(Amendments and variations) A reference to an agreement or document (including
this Lease) is to the agreement or document as amended, novated, supplemented, varied or
replaced from time to time, except to the extent prohibited by this Lease.

 

 

					
	QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	       SCHEDULE
	 	Form 20 Version 2

Page 11 of 50

Title Reference 15798160

	 	(j)	 	(Legislation) A reference to legislation or to a provision of legislation
includes a modification, re-enactment of or substitution for it and a regulation or
statutory instrument issued under it.
	 
	 	(k)	 	(Australian currency) A reference to “dollars” or “$” is to Australian currency.
	 
	 	(l)	 	(Schedules and annexures) Each schedule of/or annexure to this Lease forms part
of it.
	 
	 	(m)	 	(Conduct) A reference to conduct includes any omission, statement or undertaking,
whether or not in writing.
	 
	 	(n)	 	(Writing) A reference to “writing” includes a facsimile transmission and any
means of reproducing words in a tangible and permanently visible form.
	 
	 	(o)	 	(Event of Default) An Event of Default “subsists” until it has been waived by or
remedied to the reasonable satisfaction of the Lessor.
	 
	 	(p)	 	(Includes) A reference to “includes” or “including” means “includes, without
limitation” or “including, without limitation,” respectively.
	 
	 	(q)	 	(Whole) Reference to the whole includes part.
	 
	 	(r)	 	(Due and punctual) All obligations are taken to be required to be performed duly
and punctually.
	 
	 	(s)	 	(Permit or omit) Words importing “do” include do, permit or omit, or cause to be
done or omitted.
	 
	 	(t)	 	(Bodies and Authorities)

	 	(i)	 	(Successors) Where a reference is made to any person, body or
Authority that reference, if the person, body or Authority has ceased to exist,
will be to the person, body or Authority as then serves substantially the same
objects as that person, body or Authority.
	 
	 	(ii)	 	(President) Any reference to the President of that person, body or
Authority, in the absence of a President, will be read as a reference to the
senior officer for the time being of the person, body or Authority or any other
person fulfilling the duties of President.

	 	(u)	 	(Consent of Lessor) Unless stated otherwise in this Lease, where the Lessor has a
discretion or its consent or approval is required for anything the Lessor:

	 	(i)	 	shall not unreasonably withhold, delay or condition its decision,
consent or approval; and
	 
	 	(ii)	 	must exercise its discretion acting reasonably.

	 	(v)	 	(Relevant date) Where the day or last day for doing anything or on which an
entitlement is due to arise is not a Business Day that day or last day will be the
immediately following Business Day.
	 
	 	(w)	 	(Month) Month means calendar month.

 

 

	 	 	 	 	 
	QUEENSLAND LAND REGISTRY

	 	SCHEDULE
	 	Form 20 Version 2
	Land Title Act 1994, Land Act 1994 and Water Act 2000

	 	 	 	Page 12 of 50

Title Reference 15798160

	 	(x)	 	(Areas) Unless otherwise stated in this Lease or the context otherwise requires,
where the area whether gross or net and whether the whole or part of the Land is to be
calculated or measured for the purposes of this Lease, those calculations and
measurements shall be in accordance with the Method of Measurement.
	 
	 	(y)	 	(Third parties) Any clause which requires that a third party act or refrain from
acting will be read (where the context permits) that the party to this Lease appointing
or otherwise having control of that third party shall cause or procure that third party
to act or refrain from acting.

	2.	 	Exclusion of Statutory Provisions
	 
	2.1	 	Relevant Acts
	 
	 	 	To the extent permitted by Law or as may be contradicted by this Lease, the covenants, powers
and provisions (if any) implied in leases by virtue of any Law are expressly negatived.
	 
	3.	 	Term
	 
	3.1	 	Term of Lease
	 
	 	 	Subject to this Lease the Lessor leases to the Lessee and the Lessee takes a lease of the
Premises for the Term.
	 
	3.2	 	Option of renewal

	 	(a)	 	(Grant of further lease) If:

	 	(i)	 	(Further Term) a Further Term is specified in Item 8;
	 
	 	(ii)	 	(Lessee gives notice) the Lessee notifies the Lessor not more than
12 months nor less than 9 months before the Terminating Date that it requires a
further lease for the Further Term; and
	 
	 	(iii)	 	(no default) at the date of that notice and at the Terminating
Date there is no subsisting Event of Default by the Lessee of which the Lessee
has been notified by the Lessor and:

	 	(A)	 	(if capable of remedy) which has not been remedied to
the reasonable satisfaction of the Lessor within the time specified in a
notice given under clause 12.1 or waived in writing by the Lessor; or
	 
	 	(B)	 	(if not capable of remedy) if not capable of remedy,
for which the Lessee has not paid the Lessor reasonable compensation,

	 	 	 	the Lessor shall grant to the Lessee a lease of the Premises for the Further Term
commencing on the day after the Terminating Date.
	 
	 	(b)	 	(Conditions of further lease) That lease for a Further Term will be on the same
conditions as this Lease except that:

 

 

	 	 	 	 	 
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	 	(i)	 	(term) the term to be specified in Item 5 of the lease for the
Further Term will be the relevant period specified in Item 8;
	 
	 	(ii)	 	(commencing date) the date to be specified in Item 6 of the lease
for the Further Term will be the day after the Terminating Date of the
immediately preceding Term;
	 
	 	(iii)	 	(terminating date) the date to be specified in Item 7 of the lease
for each Further Term will be the last day of the term specified in Item 8
calculated from the commencing date of the lease for that Further Term determined
under Paragraph (ii);
	 
	 	(iv)	 	(Rent) the amount of Rent to be specified in Item 9 of the lease
for the Further Term will be as agreed under clause 3.2(c) or if no agreement is
reached under that clause as determined under clauses 4.4, 4.5 and 4.6 as if the
commencing date of the lease for the Further Term was a Market Review Date;
	 
	 	(v)	 	(Review Dates) the Review Dates specified in Item 10 shall be
omitted and replaced with the Review Dates specified in Item 13;
	 
	 	(vi)	 	(further options) the number of Further Terms specified in Item 8
shall be reduced by one from the number specified in Item 8 of this Lease; and
	 
	 	(vii)	 	(last further lease) if in any lease for the Further Term the
number of Further Terms specified in Item 8 would by the operation of Paragraph
(vi) be zero, then Item 13 and this clause 3.2 will not be included in that
further lease so that the last further lease will end on the last day of the last
occurring Further Term specified in Item 8 of this Lease.

	 	(c)	 	(Early determination of Market Rent)

	 	(i)	 	If the Lessee wishes to know the Rent for the first year of the
Further Term prior to exercising its option for a Further Term, the Lessee may
give notice to the Lessor seeking a determination of the Market Rent for the
Further Term (such notice being given no earlier than 15 months and no later than
12 months prior to the Terminating Date of the Lease).
	 
	 	(ii)	 	The Lessor must give the Lessee a notice with the Lessor’s
assessment of the Market Rent to apply in the first year of the Further Term
within 10 Business Days after the Lessee gives a notice under clause 3.2(c)(i).
	 
	 	(iii)	 	Upon receipt of the Lessor’s assessment of Market Rent under
clause 3.2(c)(ii), the parties agree to negotiate in good faith to agree upon the
Market Rent to apply in the first year of the Further Term for a period of up to
3 months after the Lessor’s notice of assessment of Market Rent is received by
the Lessee.
	 
	 	(iv)	 	If the parties fail to reach agreement under clause 3.2(c)(iii),
clause 3.2(b) (iv) continues to apply.

	3.3	 	Holding over
	 
	 	 	If the Lessor does not indicate refusal to the Lessee continuing to occupy the Premises
beyond the Terminating Date (otherwise than under a lease for a Further Term) then:

 

 

	 	 	 	 	 
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	 	(a)	 	(monthly tenancy) the Lessee does so as a monthly tenant and shall pay Rent and
Outgoings:

	 	(i)	 	monthly in advance, the first payment to be made on the day
following the Terminating Date; and
	 
	 	(ii)	 	equal to one-twelfth of the annual rate of Rent and Outgoings
payable immediately prior to the Terminating Date;

	 	(b)	 	(determination) the monthly tenancy is determinable at any time by either the
Lessor or the Lessee by one month’s notice given to the other, to end on any date, but
otherwise the tenancy will continue on the conditions of this Lease as far as they may
apply to a monthly tenancy.

	4.	 	Rent
	 
	4.1	 	Payment of Rent

	 	(a)	 	(Rent) The Lessee shall pay Rent to the Lessor at the relevant rate from time to
time:

	 	(i)	 	(no demand) without demand;
	 
	 	(ii)	 	(no deduction) without any deduction, abatement, counterclaim or
right of set-off except to the extent that it is expressly provided for in this
Lease; and
	 
	 	(iii)	 	(instalments) by equal monthly instalments (and proportionately
for any part of a month) in advance on the first Business Day of each month.

	 	(b)	 	(As directed by Lessor) All instalments of Rent shall be paid to the place and in
the manner directed by the Lessor from time to time provided at least 10 Business Days
notice of any change in the place or manner of payment is given.

	4.2	 	Rent Commencement
	 
	 	 	The first instalment of Rent shall be paid on the Commencing Date.
	 
	4.3	 	Deleted
	 
	4.4	 	Market review of Rent
	 
	 	 	Should the Lessor wish to review the Rent as at a Market Review Date, then not earlier than 3
months before and not later than 3 months after the Market Review Date (time being of the
essence) the Lessor may notify the Lessee of the Lessor’s assessment of the Market Rent for
the Premises at the particular Market Review Date. This assessment shall take into account
the criteria contained in clause 4.5(g) which apply at that particular Market Review Date
and, if applicable, clause 4.6.
	 
	4.5	 	Lessee’s dispute of Rent
	 
	 	 	If the Lessee disagrees with the Lessor’s assessment of the Market Rent and the Lessor and
the Lessee are unable to agree on the Market Rent to apply from a particular Market Review
Date then the following procedure applies.

 

 

	 	 	 	 	 
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	 	(a)	 	(Lessee to give notice) The Lessee shall within 30 Business Days of being
notified of the Lessor’s assessment of the Market Rent (time being of the essence)
notify the Lessor that the Lessee requires the Market Rent to be determined in
accordance with this clause 4.5.
	 
	 	(b)		(i)      (Nomination of Valuers) Each of the Lessee and the Lessor shall, within 10
Business Days of service of the Lessee’s notice under clause 4.5(a), by notice nominate
a Valuer to the other and shall formally appoint that Valuer.

	 
	 	(ii)	 	(Nomination of Umpire) Where two Valuers have been nominated they
shall, within 5 Business Days of the date of the later nomination and prior to
making their determination as to the Market Rent for the Premises, agree upon and
nominate an Umpire to determine any disagreement which may arise between them.
	 
	 	(iii)	 	(Failure to agree) If the Valuers cannot agree on or fail to
nominate an Umpire within 5 Business Days of the date of the later nomination
then either Valuer, the Lessor or the Lessee may request the President of the
Australian Institute to nominate the Umpire.

	 	(c)	 	(Valuer’s determination) Subject to clauses 4.5(d), (e) and (f), the nominated
Valuers shall within 20 Business Days of the later nomination jointly determine the
Market Rent of the Premises having regard to clause 4.5(g) as at that particular Market
Review Date.
	 
	 	(d)	 	(Consequences of Lessee’s failure) If the Lessee fails to nominate a Valuer in
accordance with clause 4.5(b) within the time required:

	 	(i)	 	(determination by Lessor’s Valuer) the determination of the Market
Rent shall be made by the Lessor’s Valuer within 20 Business Days after being
nominated, and his determination will be final and binding on the parties as if
he had been appointed by Consent; and
	 
	 	(ii)	 	(Costs) the Costs of the Lessor’s Valuer’s determination shall be
apportioned equally between the Lessor and Lessee.

	 	(e)	 	(Consequences of Lessor’s failure to nominate Valuer) If the Lessee nominates a
Valuer under clause 4.5(b) within the time required, but the Lessor fails to do so:

	 	(i)	 	(determination by Lessee’s Valuer) the determination of the Market
Rent shall be made by the Lessee’s Valuer within 20 Business Days after being
nominated, and his determination will be final and binding on the parties as if
he had been appointed by Consent; and
	 
	 	(ii)	 	(Costs) the Costs of the Lessee’s Valuer’s determination shall be
apportioned equally between the Lessor and Lessee.

	 	(f)	 	(i)      (Procedure in event of disagreement between Valuers) Should the Valuers be
unable to agree on the Market Rent for the Premises within the time required then the
Market Rent shall be determined by the Umpire under clause 4.5(f)(iii).

	 
	 	(ii)	 	(Procedure where Valuer fails to assess) If either or both of the
Valuers for any reason fail to assess the Market Rent within the time required
for them to make a determination, then either Valuer, the Lessor or the Lessee
may request the Umpire to determine the Market Rent.

 

 

	 	 	 	 	 
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	 	(iii)	 	(Umpire’s determination) If it becomes necessary for the Umpire to
determine the Market Rent, his determination will be final and binding on the
parties and:

	 	(A)	 	(evidence of Valuers) in making his or her
determination the Umpire shall have regard to any evidence submitted by the
Valuers as to their assessments of the Market Rent;
	 
	 	(B)	 	(written determination) the Umpire shall give his
determination and the reason for it in writing to the Lessor and the Lessee
within 20 Business Days of request for it in accordance with this Lease by
the Lessor, the Lessee or the Valuers (or any of them); and
	 
	 	(C)	 	(Umpire’s maximum) the Umpire’s determination shall not
be more than the highest Market Rent as assessed by either Valuer under
this clause 4.5.

	 	(g)	 	(Market Rent criteria) In determining the Market Rent each Valuer (including the
Umpire) shall be taken to be acting as an expert and not as an arbitrator, and shall
determine the Market Rent for the Premises as at the particular Market Review Date
having regard to the terms of this Lease and shall:

	 	(i)	 	(exclusions) disregard:

	 	(A)	 	(goodwill) the value of any goodwill of the Lessee’s
Business, the Lessee’s Fitout and Fittings and any other interest in the
Premises created by this Lease; and
	 
	 	(B)	 	(money from occupational arrangement) any sublease or
other sub-tenancy agreement or occupational arrangement in respect of any
part of the Land and any rental, fees or money payable under any of them;
and

	 	(ii)	 	(considerations) have regard to:

	 	(A)	 	(length of term) the length of the whole of the Term,
disregarding the fact that part of the Term will have elapsed at the Market
Review Date, and have regard to the provisions of any options for a Further
Term;
	 
	 	(B)	 	(comparable premises and locations) the rates of rent
payable for comparable premises in comparable locations;
	 
	 	(C)	 	(all covenants observed) all covenants on the part of
the Lessee and the Lessor in this Lease and assume that all covenants on
the part of the Lessee have been fully performed and observed on time; and
	 
	 	(D)	 	(Outgoings) the Lessee’s obligation to pay the Lessee’s
Proportion of Outgoings; and
	 
	 	(E)	 	(Rent Review) the frequency of market and other Rent
reviews; and

	 	(iii)	 	(assumptions) assume that:

 

 

	 	 	 	 	 
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	 	(A)	 	the Premises are available for use for the primary
purpose for which the Premises may be used in accordance with this Lease;
	 
	 	(B)	 	there has been no fair wear and tear of the Premises
since the Effective Date; and
	 
	 	(C)	 	any buildings which have been removed pursuant to
clause 7.11(d) have not been removed.

	 	(h)	 	(Costs of Valuers) The Costs incurred in the determination of the Market Rent
under this clause 4.5 shall be borne by the Lessor and by the Lessee in the following
manner:

	 	(i)	 	(Valuer) subject to clauses 4.5(d)(ii) and 4.5(e)(ii), for the
Costs of each Valuer appointed by a party, by the party who appoints that Valuer;
and
	 
	 	(ii)	 	(Umpire) for the Costs of the Umpire, by the parties equally.

	 	(i)	 	(Date of effect of determination of Market Rent) Subject to clauses 4.5(j) and
4.6, any variation in the Rent resulting from a determination of the Market Rent under
clause 4.4 and/or 4.5 (as appropriate) will be effective on and from that particular
Market Review Date.
	 
	 	(j)	 	(Payment of Rent pending review) Where there is a dispute as to the Market Rent
under clause 4.4 after the relevant Market Review Date or the revised Rent is not known
at a Market Review Date then the amount of Rent payable by the Lessee from the Market
Review Date pending the resolution of that dispute or the determination of the Market
Rent shall be the Rent payable immediately before the relevant Market Review Date.
	 
	 	(k)	 	(Adjustment) On resolution of the dispute or the Market Rent being determined, if
the Rent payable for the period commencing on the Market Review Date is determined to be
greater than that paid by the Lessee since the Market Review Date, then the Lessee shall
pay the deficiency to the Lessor within 10 Business Days of the date of determination of
the Market Rent under clause 4.4 or the determination of the Market Rent by the Valuers
or by the Umpire under this clause 4.5 (as the case may be).

	4.6	 	Maximum increase on review
	 
	 	 	Despite any other provision of this Lease the annual Rent payable from any Review Date
following a review of the Rent under clause 4.4 (and, if applicable, clause 4.5) shall in no
circumstances be:

	 	(a)	 	less than the annual Rent payable in the Lease Year immediately prior to that
Review Date; or
	 
	 	(b)	 	in the case of a Market Review (other than at the Commencing Date of a Further
Term):

	 	(i)	 	greater than the Rent payable in the Lease Year immediately prior
to the Market Review Date plus 10%; or
	 
	 	(ii)	 	less than the annual Rent determined under clause 4.7.

 

 

	 	 	 	 	 
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	4.7	 	Fixed Review
	 
	 	 	On each Fixed Review Date, the Rent shall increase to 103% of the Rent payable immediately
prior to that Fixed Review Date.
	 
	5.	 	Outgoings
	 
	5.1	 	Services

	 	(a)	 	(Meters) The Lessor shall ensure that all Services supplied to the Premises are
separately metered.
	 
	 	(b)	 	(Costs) The Lessee shall pay all Costs for all Services supplied to the Premises
(but with respect to water, the obligation under this clause 5.1(b) is limited to water
usage and consumption charges).

	5.2	 	Cleaning
	 
	 	 	The Lessee shall at its own Cost ensure that the Premises are kept clean.
	 
	5.3	 	Outgoings
	 
	 	 	The Lessee shall pay to the Lessor for each Lease Year an amount equal to the Lessee’s
Proportion of the Outgoings in accordance with this clause 5. This obligation shall not
extend to any fines, penalties or interest on the Outgoings which arise because of the
Lessor’s delay in payment or the Lessor’s delay in providing relevant invoices and accounts
to the Lessee for payment.
	 
	5.4	 	Lessor’s estimate
	 
	 	 	The Lessor may:

	 	(a)	 	(notification of estimate) before or during each Lease Year notify the Lessee of
the Lessor’s reasonable estimate of the Lessee’s Proportion of Outgoings for that Lease
Year; and
	 
	 	(b)	 	(adjustment of estimate) from time to time during that Lease Year by notice to
the Lessee adjust the reasonable estimate of the Lessee’s Proportion of Outgoings as may
be appropriate to take account of changes in any of the Outgoings.

	5.5	 	Payments on account
	 
	 	 	The Lessee shall pay on account the amount of the estimates of the Lessee’s Proportion of
Outgoings provided for in clause 5.4 by equal monthly instalments in advance on the same days
and in the same manner as the Lessee is required to pay Rent.
	 
	5.6	 	Yearly adjustment

	 	(a)	 	(Lessor’s notice) As soon as practicable after the end of each Lease Year the
Lessor shall give to the Lessee a notice with reasonable details and reasonable evidence
of the Outgoings for that Lease Year.

 

 

	 	 	 	 	 
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	 	(b)	 	(Adjustment of payments on account) The Lessee shall within 10 Business Days
after the date of the notice referred to in clause 5.6(a) pay to the Lessor or the
Lessor shall pay to the Lessee (as appropriate) the difference between the amount paid
on account of the Lessee’s Proportion of Outgoings during that Lease Year and the amount
actually payable in respect of it by the Lessee, so that the Lessee shall have paid the
correct amount of the Lessee’s Proportion of Outgoings for that Lease Year.
	 
	 	(c)	 	(Audited statement) If the Lessee disagrees with the details, amounts or
calculations contained in the notice referred to in clause 5.6(a), the Lessee may
require the Lessor to give the Lessee an audited statement of the Outgoings for that
Lease Year prepared by a chartered accountant reasonably approved by the Lessee (or
failing approval within 5 Business Days of the request for the statement, selected by
the President of the Institute of Chartered Accountants at the request of either the
Lessor or the Lessee). The Lessor shall have 20 Business Days after a request from the
Lessee within which to provide the statement.
	 
	 	(d)	 	(Readjustment) If the amounts shown in the audited statement are different from
the amounts shown in the Lessor’s notice given under clause 5.6(b), the amount of
Outgoings shall be readjusted so that the Lessee shall have paid the correct amount of
the Lessee’s Proportion of Outgoings for that Lease Year.

	5.7	 	GST

	 	(a)	 	(General) Capitalised expressions which are not defined in this clause but which
have a defined meaning in the GST Law have the same meaning in this clause.
	 
	 	(b)	 	(Payment of GST) The parties agree that:

	 	(i)	 	all Payments have been set or determined without regard to the
impact of GST;
	 
	 	(ii)	 	if the whole or any part of a Payment is the consideration for a
Taxable Supply for which the payee is liable for GST, the GST Amount in respect
of the Payment must be paid to the payee as an additional amount, either
concurrently with the Payment or as otherwise agreed in writing; and
	 
	 	(iii)	 	the payee will provide to the payer a Tax Invoice.

	 	(c)	 	(Net of credits) Despite any other provision of this lease, if a Payment due
under this lease (including any contribution to Outgoings) is a reimbursement or
indemnification by one party of an expense, loss or liability incurred or to be incurred
by the other party, the Payment shall exclude any part of the amount to be reimbursed or
indemnified for which the other party can claim an Input Tax Credit.
	 
	 	(d)	 	(TPA) Each party will comply with its obligations under the Trade Practices Act
1974 in respect of any Payment to which it is entitled under this lease.

	6.	 	Use of Premises
	 
	6.1	 	Permitted use
	 
	 	 	The Lessee shall:

 

 

	 	 	 	 	 
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	 	(a)	 	(Lessee’s Business) not without the Lessor’s Consent use the Premises for any
purpose other than those specified in Item 11;
	 
	 	(b)	 	(non residence) not use the Premises as a residence;
	 
	 	(c)	 	(no animals or birds) not keep any animals or birds in the Premises; and
	 
	 	(d)	 	(pests and vermin) at its own Cost keep the Premises free and clear of pests,
insects and vermin.

	6.2	 	Overloading
	 
	 	 	The Lessee shall not during the Term place or store any heavy articles or materials on any of
the floors of, the Premises or the Building in a manner significantly differently from that
at the Effective Date, without the Lessor’s consent.
	 
	6.3	 	Other activities by Lessee
	 
	 	 	The Lessee shall:

	 	(a)	 	(Appurtenances) not use the Appurtenances in the Premises for any purpose other
than those for which they were designed, and shall not place in the Appurtenances any
substance which they were not designed to receive;
	 
	 	(b)	 	(air-conditioning and fire alarm equipment) where any air conditioning or fire
alarm system of the Lessor is installed in the Premises, not interfere (other than in
accordance with clause 7.1) with that system nor obstruct or hinder access to it;
	 
	 	(c)	 	(not accumulate rubbish) keep the Premises reasonably clean;
	 
	 	(d)	 	(not throw items from windows) not throw anything out of the windows or doors of
the Building or down the lift shafts, passages or skylights or into the light areas of
the Building (if they exist), or deposit waste paper or rubbish anywhere except in
proper receptacles, or place anything on any sill, ledge or other similar part of the
exterior of the Building; and
	 
	 	(e)	 	(infectious diseases) if any infectious illness occurs in the Premises:

	 	(i)	 	(notify Lessor) immediately notify the Lessor and all the proper
Authorities; and
	 
	 	(ii)	 	(fumigate) where that illness is confined to the Premises, at its
Cost thoroughly fumigate and disinfect the Premises to the satisfaction of the
Lessor and all relevant Authorities.

	6.4	 	For sale/to let
	 
	 	 	The Lessor is entitled:

	 	(a)	 	(advertising for lease) where the Lessee has not given notice under clause
3.2(a)(ii), but only during the last three months of the Term, to place advertisements
and signs on the part(s) of the Premises as are reasonably appropriate to indicate that
the Premises are available for lease;

 

 

	 	 	 	 	 
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	 	(b)	 	(inspection by prospective tenants) subject to the same limitations as in
Paragraph (a), at all reasonable times and on reasonable notice (but where possible
outside the usual trading hours of the Lessee) to show prospective tenants through the
Premises;
	 
	 	(c)	 	(advertising for sale) to place advertisements and signs on the part(s) of the
Premises as it reasonably considers appropriate to indicate that the Premises are for
sale; and
	 
	 	(d)	 	(inspection by prospective purchasers) at all reasonable times and on reasonable
notice (but where possible outside the usual trading hours of the Lessee), to show
prospective purchasers through the Premises.

	 	 	The Lessor may only exercise its rights under this clause 6.4 in the presence of a
representative of the Lessee after signing and/or procuring signing by the Lessor’s invitees
of such confidentiality agreements as the Lessee may reasonable require. In exercise of those
rights the Lessor must minimise any inconvenience or disruption to the Lessee or the Lessee’s
Business.
	 
	7.	 	Maintenance, Repairs, Alterations and Additions
	 
	7.1	 	Repairing obligations

	 	(a)	 	(General) The Lessee:

	 	(i)	 	Must, during the Term and any extension or Further Term or any
holding over, keep the Premises in good repair and condition including any
structural or capital maintenance, replacement or repair having regard to their
state of repair and condition at the Effective Date; and
	 
	 	(ii)	 	acknowledges and agrees that subject to clauses 5.4, 5.6, 9.2, 11,
12.4, 15.2 and 15.5(b) and (c) the Lessor is not responsible for any costs and
expenses in relation to the Premises during the Term and any extension or Further
Term or any holding over.

	 	(b)	 	(Exclusions) Despite clause 7.1, the Lessee has no obligation to carry out any
works which relate to:

	 	(i)	 	(fair wear and tear) fair wear and tear;
	 
	 	(ii)	 	(insurance) damage to the Premises caused by fire, storm or tempest
or any other risk covered by any insurance taken out by the Lessor in respect of
the Premises (other than where any insurance money is irrecoverable through the
act, omission, neglect, default or misconduct of the Lessee or the Lessee’s
Employees);
	 
	 	(iii)	 	(Lessor’s act or omission) patent or latent damage to the Premises
caused or contributed to by any wilful or negligent act or omission of the Lessor
or its Employees;
	 
	 	(iv)	 	(Non-Make Good Building) any works to the Non Make Good Buildings,
except to the extent required by clause 7.1(d) and clause 13.

	 	(c)	 	(Structural repair) Subject to clauses 15.2 and 15.5(c), nothing in this Lease
requires the Lessor to carry out any structural or capital maintenance, replacement or
repair except where rendered necessary by any wilful or negligent act or omission of the
Lessor or the Lessor’s

 

 

	 	 	 	 	 
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	 	 	 	Employees, which maintenance, replacement or repair the Lessor must attend to promptly
after notice from the Lessee.
	 
	 	(d)	 	(Compliance with Laws and Requirements) The Lessee shall, during the Term,
subject to clauses 7.1(b)(i), (ii) and (iii), 7.1(e), 7.11, 15.2 and 15.5(c), comply
with any Law or Requirement affecting the Premises (including any underground storage
tanks and any Environmental contamination associated with them), the Lessee’s use of the
Premises and the Lessee’s Fitout and Fittings, except that the Lessor must, at its Cost,
promptly comply with these Laws or Requirements if:

	 	(i)	 	the Lessor or the Lessor’s Employees have taken action or refrained
from taking action that directly or indirectly has a material effect in causing
the Law or Requirement to apply, be issued or enforced;
	 
	 	(ii)	 	the Lessor or the Lessor’s Employees have taken action or refrained
from taking action that directly or indirectly has a material effect in causing
the Law or Requirement to apply, be issued or enforced by doing works on the Land
or any adjoining land; or
	 
	 	(iii)	 	the Lessor or the Lessor’s Employees have taken action or
refrained from taking action that directly or indirectly has a material effect in
causing the Law or Requirement to apply, be issued or enforced because of any
subdivision, re-configuration of other dealing with the Land.

	 	 	 	However, the Lessor is not obliged to comply with the Law or Requirement where the Law
or Requirement applies, is issued or enforced solely as a result of the Lessor or the
Lessor’s Employees making any applications to Authorities with respect to
redevelopment of that part of the Land which is not or will no longer be included in
the Premises as anticipated by the terms of this Lease or because of the terms of any
consents, approvals or permits granted by those Authorities in response to those
applications.

	 	(e)	 	(Options to terminate or surrender)

	 	(i)	 	If there is a change in Law or a Requirement requiring the
demolition or substantial upgrade of Buildings on the Premises, then the Lessee
may at its option:

	 	(A)	 	terminate this Lease by giving notice to the Lessor
together with the Termination Payment; or
	 
	 	(B)	 	partially surrender this Lease by giving to the Lessor
a surrender of lease in registrable form with respect to the relevant part
of the Premises (and any ancillary areas) affected by the change in Law or
Requirement together with the Termination Payment. Unless access can be
provided to the surrendered area in accordance with clause 7.1(e)(iv)(B),
in determining the area to be partially surrendered the Lessee must ensure
that the surrendered area is not landlocked.

	 	(ii)	 	At any time during the Term the Lessee may at its option and at its
Cost:

	 	(A)	 	partially surrender this Lease by giving to the Lessor
a surrender of lease in registrable form with respect to any Non-Make Good
Buildings together with the Termination Payment; and

 

 

	 	 	 	 	 
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	 	(B)	 	in determining the area to be partially surrendered the
Lessee must:

	 	(1)	 	ensure that there is 6 metres clearance
from the perimeter of the surrendered area to the nearest building;
and
	 
	 	(2)	 	unless access can be provided to the
surrendered area in accordance with clause 7.1(e)(iv)(B) ensure that
the surrendered area is not landlocked.

	 	(iii)	 	Neither party will have any further obligation to the other under
this Lease following the date of service on the Lessor of the termination notice
or partial surrender of lease and the relevant Termination Payment under clause
7.1(e)(i) or 7.1(e)(ii) (but limited with respect to the area of the Premises
surrendered in the case of clauses 7.1(e)(i)(B) and 7.1(e)(ii)), except for any
pre-existing breach.
	 
	 	(iv)	 	If clauses 7.1(e)(i)(B) or 7.1(e)(ii) applies:

	 	(A)	 	the Rent and Outgoings under this Lease shall reduce
proportionately by reference to the area of the Premises surrendered (with
any dispute to be determined under clause 14) with effect from the date of
service on the Lessor of the notice of termination or partial surrender of
lease and the relevant Termination Payment (as the case may be);
	 
	 	(B)	 	the Lessee must permit the Lessor and persons
authorised by it to have a reasonable means of access through the Premises
to the surrendered area, so long as that means of access and the use of it
do not have a material adverse impact on the Lessee’s use or operation of
the Premises; and
	 
	 	(C)	 	the definition of Outgoings will be amended to include
reasonable security costs actually incurred by the Lessor arising from
multiple occupancies of the Land.

	7.2	 	Lessor’s right of inspection
	 
	 	 	The Lessor may in the presence of a responsible officer of the Lessee at all reasonable times
on giving to the Lessee reasonable notice enter the Premises and view the state of repair and
condition.
	 
	7.3	 	Enforcement of repairing obligations
	 
	 	 	The Lessor may:

	 	(a)	 	(serve notice) notify the Lessee of any failure by the Lessee to carry out within
the time allowed by this Lease any repair, replacement or cleaning of the Premises which
the Lessee is obliged to do under this Lease; and/or
	 
	 	(b)	 	(carry out repair) require the Lessee to carry out that repair, replacement or
cleaning within a reasonable time. If the Lessee fails to do so within a reasonable time
having regard to the nature of the defect complained of and the length of time
reasonably required to remedy that defect, the Lessor may elect to carry out that
repair, replacement or cleaning at the Lessee’s Cost (but wherever possible outside the
usual operating hours of the Lessee). The Lessee shall on demand reimburse the Lessor
for those Costs. The Lessor in exercise of its rights under this clause 7.3(b) shall:

 

 

	 	 	 	 	 
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	 	(i)	 	sign and/or procure signing by the Lessor’s invitees of such
confidentiality agreements as the Lessee may reasonably require;
	 
	 	(ii)	 	endeavour not to cause any undue inconvenience to the Lessee and
the conduct of the Lessee’s Business; and
	 
	 	(iii)	 	make good any damage caused to the Premises without delay.

	7.4	 	Lessor may enter to repair, decontaminate
	 
	 	 	If:

	 	(a)	 	(Lessor wishes to repair) the Lessor wishes to carry out any repairs to the
Premises considered necessary or desirable by the Lessor or in relation to anything
which the Lessor is obliged to do under this Lease; or
	 
	 	(b)	 	(Requirements of Authority) any Authority requires any repair or work to be
undertaken on the Premises (including any decontamination, remediation or other cleanup)
which the Lessor must or in its absolute discretion elects to do and for which the
Lessee is not liable under this Lease,

	 	 	then the Lessor, its architects, workmen and others authorised by the Lessor may at all
reasonable times on giving to the Lessee reasonable notice enter and carry out any of those
works and repairs. In so doing the Lessor shall:

	 	(c)	 	sign and/or procure signing by the Lessor’s Employees of such confidentiality
agreements as the Lessee may reasonably require;
	 
	 	(d)	 	endeavour not to cause undue inconvenience to the Lessee and the conduct of the
Lessee’s Business, and
	 
	 	(e)	 	make good any damage caused to the Premises without delay.

The Lessor shall indemnify the Lessee on demand in respect of all Claims incurred or suffered
by the Lessee as a consequence of the carrying out of works under this clause 7.4.

	7.5	 	Deleted
	 
	7.6	 	Alterations to Premises

	 	(a)	 	(No Consent required) The Lessee is entitled to carry out any Proposed Work on or
to the Premises without the need to seek or obtain Lessor’s Consent except that the
Lessee must obtain the Lessor’s Consent prior to carrying out any structural Proposed
Works:

	 	(i)	 	on or to any Make Good Buildings; or
	 
	 	(ii)	 	which materially increase the footprint of the Non-Make Good
Buildings,

	 	 	 	such Consent not to be unreasonably withheld or delayed.

 

 

	 	 	 	 	 
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	 	(b)	 	(Deemed Consent) If the Lessor does not respond conclusively to a request for
Consent within 20 Business Days of the written request being served on it, the Lessor is
deemed to have Consented to the relevant request.
	 
	 	(c)	 	(Approvals) The Lessee shall obtain all necessary approvals or permits before
carrying out the Proposed Work.
	 
	 	(d)	 	(Lessor to assist) The Lessor shall at the Lessee’s Cost without delay do all
acts and sign all documents to enable the Lessee to obtain the approvals and permits
referred to in clause 7.6(c) and otherwise to enable the Lessee to carry out any
Proposed Work in accordance with this Lease.
	 
	 	(e)	 	(Specific Proposed Works) Despite clause 7.6(a), the Lessor gives its consent to
Proposed Work which relates to installation and removal of the Lessee’s plant and
equipment, including bolting or affixing to the floors of the Premises, subject to
clauses 6.2 and 13.
	 
	 	(f)	 	(Condition) The Lessor, acting reasonably, may require the Lessee to carry out
remediation works as a condition of the Lessor’s Consent to Proposed Work where Consent
is required under clause 7.6(a) if the Proposed Works will, if implemented:

	 	(i)	 	trigger a Requirement to carry out those remediation works; or
	 
	 	(ii)	 	render the Premises unsuitable for the Permitted Use unless the
remediation works are carried out with the Proposed Work.

	7.7	 	Notice to Lessor of damage, accident etc.
	 
	 	 	The Lessee shall notify the Lessor of any:

	 	(a)	 	(accident) accident to or in the Premises; and/or
	 
	 	(b)	 	(notice) circumstances reasonably likely to cause any damage or injury to occur
within the Premises,

		 	of which the Lessee has actual notice.
	 
	7.8	 	Maintenance contracts
	 
	 	 	The Lessee shall at its own Cost enter into maintenance contracts for the fire fighting
services and equipment servicing the Premises with contractors approved by the Lessee and in
a form and on terms (whether as to cost, standard of service or otherwise) reasonably
acceptable to the Lessee.
	 
	7.9	 	Deleted
	 
	7.10	 	Lessee’s Fitout and Fittings
	 
	 	 	The Lessee’s Fitout and Fittings shall at all times be and remain the property of the Lessee
(or the lessor of the Lessee’s Fitout and Fittings, if applicable) despite any particular
method of annexation to the Premises.

 

 

	 	 	 	 	 
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	7.11	 	Timing for works and compliance with Requirements
	 
	 	 	Despite any other provision of this Lease:

	 	(a)	 	the Lessee may carry out any maintenance, repair or replacement or other works or
comply with any Law or Requirement which it is required under this Lease to do or comply
with at such time as the Lessee (acting reasonably) determines except that the Lessee
must still comply with:

	 	(i)	 	the timetable set out in the relevant Requirement to which any
works relate; and
	 
	 	(ii)	 	clause 13; and

	 	(b)	 	subject to clause 7.11(a)(i), the Lessor agrees that the mere issue of a
Requirement or the existence of a non-compliance with Law does not of itself:

	 	(i)	 	trigger the Lessee’s obligation to comply with it; or
	 
	 	(ii)	 	constitute a timetable to do any works; or
	 
	 	(iii)	 	constitute a breach of this Lease by the Lessee;

	 	(c)	 	the Lessor cannot (and shall not) take any steps or exercise any rights under
this Lease or otherwise to cause the Lessee to remedy the non-compliance with Law or
comply with the Requirement (or do so itself under clause 7.3 or otherwise), unless:

	 	(i)	 	clauses 7.11(a)(i) or (ii) apply; or
	 
	 	(ii)	 	the relevant Authority is taking active steps to require the Lessor
to remedy the non-compliance or comply with the Requirement and the Lessor will
be exposed to liability or Cost if it does not do so; and

	 	(d)	 	the Lessee may, in its absolute discretion, elect to demolish any asbestos clad
or roofed Buildings rather than comply with the relevant Law or Requirement but the Rent
will not be reduced if the Lessee does so.

	7.12	 	Set off procedure

	 	(a)	 	(Notice) If the Lessee wishes to set off any amount against the Rent, the
Outgoings or any other amounts under this Lease in exercise of its rights under this
Lease to do so, then the Lessee must give notice to the Lessor of the amount involved,
reasonable detail of what the set off relates to and the provision of this Lease with
respect to which the right is proposed to be exercised.
	 
	 	(b)	 	(No response) If the Lessor does not respond to this notice within 20 Business
Days of service of it (time being of the essence), the Lessee is entitled to exercise
the set off rights referred to in the notice in accordance with this Lease.
	 
	 	(c)	 	(Dispute) If the Lessor by notice to the Lessee disputes the Lessee’s notice
given under clause 7.12(a) within 20 Business Days of service of it (time being of the
essence) and that dispute is not resolved within 5 Business Days of service of the
Lessor’s notice, either party may refer the matter to an appropriate independent person
for determination under clause 14. The

 

 

	 	 	 	 	 
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	 	 	 	Lessee may not exercise any set off rights until any dispute under this clause has
been determined or resolved.

	8.	 	Assignment And Sub-Letting
	 
	8.1	 	No disposal of Lessee’s interest without Consent

	 	(a)	 	The Lessee may assign, transfer, sublet, licence or otherwise deal with or part
with possession of the Premises or this Lease or any part of or any interest in them
with the Consent of the Lessor which shall not be unreasonably withheld.
	 
	 	(b)	 	The Lessor Consents to all sub-leases, sub-licences or other sub-rights to occupy
the Premises which are in existence as at the Effective Date, whether or not those
arrangements have been documented or disclosed.

	8.2	 	Lessor’s obligation to Consent
	 
	 	 	The Lessor must give the Consent referred to in clauses 8.1 and 8.5 if the Lessee proves to
the reasonable satisfaction of the Lessor that the incoming tenant is a respectable,
responsible and solvent Person and, in the case of an assignment or transfer, who is
reasonably capable of performing the Lessee’s obligations under this Lease.
	 
	8.3	 	James Hardie Industries N.V. Provisions
	 
	 	 	Despite clause 8.1, whilst the Lessee is James Hardie Australia Pty Limited or James Hardie
Industries N.V. or a Related Body Corporate of either of those companies:

	 	(a)	 	(subletting) the Lessee may sublet, licence or otherwise part with possession of
the Premises without obtaining the Lessor’s Consent if the proposed sublessee or
licensee is James Hardie Australia Pty Limited or James Hardie Industries N.V. or a
Related Body Corporate of either of those companies. The Lessee shall notify the Lessor
upon granting a sublease or licence of this nature;
	 
	 	(b)	 	(assignment) the Lessee may assign this Lease to a Related Body Corporate of
James Hardie Australia Pty Limited or James Hardie Industries N.V. or to either of those
companies without obtaining the Lessor’s Consent but notice of the assignment must be
given to the Lessor;
	 
	 	(c)	 	(sale of business) if there is a sale to a purchaser of the business carried on
by James Hardie Australia Pty Limited or James Hardie Industries N.V. (as the case may
be) then the Lessor gives its consent to an assignment of this Lease to the purchaser;
	 
	 	(d)	 	(short term sublease or licence) the Lessee may sublet or licence up to
1,000m2 of the Premises without the Lessor’s Consent where the term of that
sublease or licence (excluding any renewal or holding over period) does not exceed 12
months; and
	 
	 	(e)	 	(novation) the Lessee may novate this Lease to a Related Body Corporate of James
Hardie Australia Pty Limited or James Hardies Industries N.V. as long as at the same
time the novation occurs the Lessee procures that a guarantee of the obligations of the
new tenant under this Lease is given by James Hardie Industries N.V. in a form
satisfactory to the Lessor (acting reasonably).

 

 

	 	 	 	 	 
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	8.4	 	Deed
	 
	 	 	If the Lessor requests it, the Lessee shall procure that any assignee or transferee of this
Lease executes a direct covenant with the Lessor to observe the terms of this Lease in such
forms as the Lessor may reasonably require including payment of reasonable legal costs.
	 
	8.5	 	Change in Control

	 	(a)	 	If:

	 	(i)	 	the Lessee is a company which is neither listed nor directly or
indirectly wholly-owned by a company which is listed on any recognised Stock
Exchange; and
	 
	 	(ii)	 	there is a proposed change in the shareholding of the Lessee or its
holding company so that a different person or group of people will control the
composition of the board of directors or more than 50% of the shares giving a
right to vote at general meetings of the Lessee,

	 	 	 	then that proposed change in control is treated as a proposed assignment of this Lease
and the Lessors Consent must be obtained prior to the change in control taking effect.
	 
	 	(b)	 	The Lessor agrees that clause 8.5(a)will not apply to a change in shareholding or
control where James Hardie Australia Pty Limited or a Related Body Corporate of James
Hardie Australia Pty Ltd or James Hardie Industries N.V. remains or becomes:

	 	(i)	 	the owner or ultimate holding company of the Lessee; or
	 
	 	(ii)	 	in control of the composition of the board of directors of the
Lessee; or
	 
	 	(iii)	 	in control of more than 50% of the shares giving a right to vote
at general meetings of the Lessee.

	9.	 	Insurance and Indemnities
	 
	9.1	 	Insurances to be taken out by Lessee
	 
	 	 	The Lessee shall:

	 	(a)	 	(public risk) keep current during the Term (including any extension or Further
Term or holding over) a public risk insurance policy with respect to the Premises, such
policy to be for an amount of not less than the amount specified in Item 12;
	 
	 	(b)	 	(approved insurers) ensure that all insurance policies maintained for the
purposes of clause 9.1(a):

	 	(i)	 	(insurance company) are taken out with an independent and reputable
insurer; and
	 
	 	(ii)	 	(amount) are for amounts and contain conditions reasonably
acceptable to or reasonably required by the Lessor and/or the Lessor’s
insurer(s); and

 

 

	 	 	 	 	 
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	 	(c)	 	(evidence of insurance) in respect of any policy of insurance to be effected by
the Lessee under this clause 9.1, whenever reasonably required by the Lessor (but not
more than once annually), give to the Lessor a copy of the certificate of currency; and
	 
	 	(d)	 	(interest of Lessor) in respect of the policy of insurance to be effected by the
Lessee under clause 9.1(a), ensure that the interest of the Lessor is noted,

	 	 	except that the Lessee will be deemed to have complied with clauses 9.1(a) to (d) if James
Hardie Australia Pty Limited or James Hardie Industries N.V. or a Related Body Corporate of
either of those companies is the Lessee and that Lessee is insured under the global insurance
arrangements of either of those companies.
	 
	9.2	 	Insurances to be taken out by Lessor
	 
	 	 	The Lessor shall:

	 	(a)	 	(property insurance) keep current during the Term including any extension or
Further Term or holding over the property insurance for the Premises including loss of
rent cover (capped at 18 months) referred to in paragraph (e) of the definition of
Outgoings;
	 
	 	(b)	 	(approved insurers) ensure that all insurance policies maintained for the
purposes of clause 9.2(a):

	 	(i)	 	(insurance company) are taken out with an independent and reputable
insurer; and
	 
	 	(ii)	 	(amount) are for amounts and contain conditions reasonably
acceptable to or reasonably required by the Lessee and/or the Lessee’s
insurer(s); and

	 	(c)	 	(evidence of insurance) in respect of any policy of insurance to be effected by
the Lessor under this clause 9.2, whenever reasonably required by the Lessee (but not
more than once annually), give to the Lessee a copy of the certificate of currency and
reasonable details of the policy coverage; and
	 
	 	(d)	 	(interest of Lessee) in respect of the policy of insurance to be effected by the
Lessor under clause 9.2(a), ensure that any interest of the Lessee is noted.

	9.3	 	Deductibles
	 
	 	 	The Lessor will not object to any reasonable deductibles contained in any insurances effected
or required to be effected by the Lessee pursuant to clause 9.1 provided that the Lessee will
indemnify the Lessor to the extent of the deductible applicable under a Claim to which those
insurances apply.
	 
	9.4	 	Inflammable substances
	 
	 	 	The Lessee shall not:

	 	(a)	 	(reasonable quantities) other than as is necessary for the Lessee’s Business,
store chemicals, inflammable liquids, acetylene gas or alcohol, volatile or explosive
oils, compounds or substances on or in the Premises; or

 

 

	 	 	 	 	 
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	 	(b)	 	(use) use any of those substances or fluids in the Premises for any purpose other
than the Lessee’s Business.

	 	 	This clause 9.4 does not apply to anything in underground storage tanks on the Premises which
exist at the Effective Date.
	 
	9.5	 	Effect on Lessor’s insurances
	 
	 	 	The Lessee shall not without the Lessor’s Consent, do anything to or on the Premises which
will or may:

	 	(a)	 	(increase the rate of insurance) increase the rate of any insurance on the
Premises or on any property in them, of which the Lessee has been notified by the
Lessor, without paying to the Lessor an amount equal to the amount of that increase; or
	 
	 	(b)	 	(avoid insurance) vitiate or render void or voidable any insurance, of which the
Lessee has been notified by the Lessor, in respect of the Premises or any property in
them.

	9.6	 	Insurance Proposal by the Lessee

	 	(a)	 	If the Lessee is of the opinion that the Lessee will be able to procure the same
insurance required to be obtained by the Lessor under clause 9.2(a) at a more
competitive premium or on better terms, the Lessee may by notice in writing to the
Lessor propose that it take out a policy for the insurance referred to in clause 9.2(a),
noting the Lessor’s interests as landlord (Insurance Proposal). The Lessee can only
submit an Insurance Proposal once per year.
	 
	 	(b)	 	The insurer proposed must be either rated A or higher by S&P or Moodys or a
global insurer with respect only to the industrial special risks component of the
Insurance Proposal.
	 
	 	(c)	 	The Lessor must not unreasonably withhold, condition or delay its approval of an
Insurance Proposal.
	 
	 	(d)	 	If the Lessor approves the Insurance Proposal, the Lessee must promptly take out
the insurance policy proposed under the Insurance Proposal (or, if the Lessor has failed
to effect insurance under clause 9.2(a), the Lessee may take out the insurance policy
anticipated by that clause) noting the Lessor’s interests as landlord and, if required
by the Lessor in writing, must note the interest of any financier to the Lessor and any
mortgagee of the Land.
	 
	 	(e)	 	If the Lessee effects insurance under clause 9.6(d) and the Lessor is not named
as an insured party, the Lessee shall reimburse the Lessor for any premiums for
“difference in cover” insurance the Lessor is required to effect as a result of the
requirements of its financiers, capped at 3% of the premiums payable by the Lessee under
its Insurance Proposal.

	9.7	 	Indemnities
	 
	 	 	Even if:

	 	(a)	 	(authorisation) a Claim results from something the Lessee may be authorised or
obliged to do under this Lease; and/or

 

 

	 	 	 	 	 
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	 	(b)	 	(waiver) a waiver or other indulgence has been given to the Lessee in respect of
an obligation of the Lessee under this clause 9.7,

	 	 	the Lessee, except to the extent caused or contributed to by the Lessor or its Employees but
only to the extent caused or contributed to by the Lessee or its Employees, shall indemnify
the Lessor in respect of all Claims for which the Lessor will or may be or become liable,
whether during or after the Term, in respect of or arising directly or indirectly from:

	 	(c)	 	(injury to property or person) any loss, damage or injury to property or person,
in on or near the Premises caused or contributed to by:

	 	(i)	 	(negligence) any wilful or negligent act or omission;
	 
	 	(ii)	 	(default) any default under this Lease; and/or
	 
	 	(iii)	 	(use) the use of the Premises,

	 	 	 	by or on the part of the Lessee or the Lessee’s Employees;
	 
	 	(d)	 	(abuse of services) the negligent or careless use or neglect of the Services and
facilities of the Premises or the Appurtenances by the Lessee or the Lessee’s Employees
or any other person claiming through or under the Lessee;
	 
	 	(e)	 	(water leakage) any overflow or leakage (including rain water or from any
Service, Appurtenance or the Lessor’s Fixtures) whether originating inside or outside
the Premises; and
	 
	 	(f)	 	(plate glass) any loss, damage or injury relating to plate and other glass caused
or contributed to by any act or omission on the part of the Lessee or the Lessee’s
Employees,

	 	 	but excluding any consequential loss.
	 
	10.	 	Damage, Destruction and Resumption
	 
	10.1	 	Damage to or destruction of Premises
	 
	 	 	If at any time the Premises or any part of them are damaged or destroyed so that the Premises
or any part of them are wholly or substantially unfit for the occupation and use of the
Lessee or (having regard to the nature and location of the Premises and the normal means of
access) are wholly or substantially inaccessible then, save where such damage or destruction
arises out of the wilful or negligent act or omission of the Lessee or its Employees:

	 	(a)	(i)	 (Rent and Outgoings abatement) the Rent, the Outgoings and any other money
payable periodically under this Lease, or a proportionate part of that Rent, the
Lessee’s Proportion of Outgoings or other moneys according to the nature and extent of
the damage or destruction sustained, will abate; and

	 	  (ii)	 	(remedies suspended) all remedies for recovery of Rent, the
Lessee’s Proportion of Outgoings and other moneys (or that proportionate part of
them, as the case may be) falling due after that damage or destruction will be
suspended,

 

 

					
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	 	 	 	until the Premises have been restored or made fit for the occupation and use or made
accessible to a standard equivalent to that at the Effective Date and all Services,
air conditioning and air ventilation systems and fire fighting services and equipment
for the Premises have been repaired so that they operate at a standard not less than
as at the Effective Date;
	 
	 	(b)	 	(termination by Lessee) if the Premises are substantially destroyed, damaged or
rendered inaccessible due to the wilful or negligent act or omission of the Lessor or by
default by the Lessor under the Lease, the Lessee shall have the right to terminate the
Lease by notice to the Lessor and to claim damages;
	 
	 	(c)	 	(reinstatement by Lessor) unless:

	 	(i)	 	(no insurance moneys) the Lessor’s insurance policies have been
invalidated or payment of insurance moneys under the policies refused because of
some wilful act or omission of the Lessee or the Lessee’s Employees;
	 
	 	(ii)	 	(Lessee insures) if clause 9.6(d) applies, the Lessee does not
make the proceeds of the insurance referred to in clause 9.2(a) available to the
Lessor for reinstatement of the Premises; or
	 
	 	(iii)	 	(agreement) the parties agree otherwise,

	 	 	 	the Lessor shall proceed with all reasonable expedition and diligence to reinstate the
Premises and/or make the Premises fit for the occupation and use of and/or accessible
to the Lessee to the standard required by clause 10.1(a);
	 
	 	(d)	 	(determination by Lessee) where it is required under clause 10.1(c), unless the
Lessor obtains all necessary development consents to authorise the necessary works to be
done and provides reasonable written evidence of that to the Lessee within 6 months of
the destruction or damage first occurring, then the Lessee may terminate this Lease by
giving not less than one month’s notice to the Lessor. At the end of that notice period
this Lease will be at an end;

	 
	 	(e)	 	(i)	 	 (delay in repair) if the Lessor is obliged under clause 10.1(c) to do so,
but does not:

	 	(A)	 	substantially commence the necessary works to make good
the destruction or damage within 8 weeks, subject to any reasonable
extension necessary to obtain approvals from any relevant Authority; and/or
	 
	 	(B)	 	complete the necessary works to make good the
destruction or damage within 9 months, subject to any reasonable extension
necessary to obtain approvals from any relevant Authority,

	 	 	 	of it first occurring, then the Lessee may (by notice to the Lessor) proceed to
cause the necessary works to be carried out and the Lessor shall allow the
Lessee, its Employees, contractors and workmen access to the Land for that
purpose; and
	 
	 	(ii)	 	(Costs) all Costs of any kind incurred by the Lessee under clause
10.1(e)(i) shall at the Lessee’s option (but subject to clause 7.12):

 

 

					
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	 	(A)	 	(demand) be payable by the Lessor to the Lessee on
demand on a full indemnity basis;
	 
	 	(B)	 	(proceeds) be paid from available proceeds of the
insurance effected under clause 9.2(a), which the Lessor must promptly
make available to the Lessee; or
	 
	 	(C)	 	(combination) be accounted for by a combination of the
above in the Lessee’s discretion,

	 	 	 	until all Costs incurred by the Lessee have been recovered; and

	 	(f)	 	(no obligation to re-instate) if the circumstances in clauses 10.1(c)(i) or
(ii) exist, then the Lessor shall be under no obligation to reinstate the Premises or
the means of access to them. In that case, either party may terminate this Lease by
giving not less than one month’s notice to the other.

10.2 Resumption of Premises

If at any time the whole or any part of the Premises is resumed so that the residue of them
is wholly or partially unfit for the occupation and use of the Lessee or (having regard to
the nature and location of the Premises and the normal means of access) is wholly or
partially inaccessible, then:

	 	(a)	 	(Rent abatement) a proportionate part of the Rent, the Lessee’s Proportion of
Outgoings, and any other moneys payable periodically under this Lease, according to the
nature and extent of the resumption and having regard to the resultant impact on the
Lessee’s trade and takings, will abate; and
	 
	 	(b)	 	(remedies suspended) all remedies for recovery of that proportionate, part of the
Rent, the Lessee’s Proportion of Outgoings, and other moneys falling due after that
resumption will be suspended.

10.3 Liability

Except under clause 10.1(b) neither the Lessor or the Lessee is liable because of the
determination of this Lease under this clause 10. That determination will be without
prejudice to the rights of either party in respect of any preceding breach or non-observance
of this Lease.

10.4 Dispute

Any dispute-arising under clauses 10.1 or 10.2 shall be determined by an appropriate
independent person under clause 14.

11. Lessor’s Covenants and Warranties

11.1 Quiet enjoyment

If the Lessee pays the Rent and other money payable under this Lease and observes and
performs its obligations under this Lease, the Lessee may occupy and enjoy the Premises
during the Term and any extension or Further Term or holding over without any interruption by
the Lessor or by any person rightfully claiming through, under or in trust for the Lessor, or
the Lessor’s Employees.

 

 

					
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11.2 Outgoings

Without limiting the Lessor’s rights of recovery under this Lease, and except where directly
payable by the Lessee under this Lease, the Lessor shall pay all Outgoings promptly and,
where applicable, by any due date for payment.

11.3 Consent of Mortgagee

The Lessor warrants that it has obtained all Consents (including Consents from any mortgagee
of the Land) necessary for it to enter into this Lease.

11.4 Deleted

11.5 Access

The Lessor must provide the Lessee with access to the Premises 24 hours a day, 7 days a week.

11.6 Management of Land

The Lessor covenants with the Lessee that it will not subdivide or reconfigure the Land or
create any easement, covenant or other right unless it obtains the Consent of the Lessee
(which Consent shall not be unreasonably withheld). The Lessee may only withhold its Consent
under this clause 11.6 if the actions proposed by the Lessor will have a material adverse
impact on the Lessee’s rights under this Lease or the Lessee’s Business or the Lessee’s use
of the Premises or the Land. Any dispute under this Clause 11.6 may be referred by either
party for determination under Clause 14.

11.7 Construction

The Lessee acknowledges that during the Term the Lessor may (if clause 18.2(a) applies)
redevelop parts of the Land which are no longer included in this Lease and that it may be
disturbed by resulting construction dust and noise. However, during any construction or
redevelopment on the Land, the Lessor must:

	 	(a)	 	(access) do all things necessary to minimise disturbance to the Lessee in its
access to, use and occupation of the Premises except that the Lessor may interrupt
Services for a maximum period of 24 hours during non-shift time after consultation with
and prior agreement of the Lessee or at other times as the Lessee may agree:
	 
	 	(b)	 	(Business) do all things necessary to minimise disruption to the Lessee’s
Business conducted in the Premises.

11.8 Competitors

The Lessor covenants with the Lessee that it will not grant any lease or right of occupancy
of or right to erect, install, affix, paint or otherwise display signage or advertising on
any part of the Land or sell the Land or any part of it to any Competitor without the Consent
of the Lessee.

11.9 Breach of warranty or covenant

If the Lessor breaches clauses 11.5, 11.6, 11.7 or 11.8 then, without prejudice to any
other rights or remedies the Lessee may have, the Lessee at any time and in its absolute
discretion shall be entitled to

 

 

					
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give the Lessor notice of an intention to terminate this Lease unless the Lessor satisfies
the conditions contained in the notice within 20 Business Days or such longer period as may
be reasonably required having regard to the nature of the breach and the time reasonably
required to remedy the breach (the Remedy Period). If the conditions are not satisfied within
the Remedy Period, the Lessee may in its absolute discretion terminate this Lease at any time
after that.

12. Default and Determination

12.1 Default

Each of the following is an Event of Default (whether or not it is in the control of the
Lessee):

	 	(a)	 	(Rent in arrears) the Rent or any part of it or any other money is in arrears and
unpaid for 15 Business Days after it is due and has been demanded:
	 
	 	(b)	 	(failure to perform other covenants) subject to clause 7.11, the Lessee fails to
perform or observe any of its other obligations under this Lease within 15 Business Days
or such longer period that may be reasonable in the circumstances after service of a
notice requiring performance of the covenants: and
	 
	 	(c)	 	(Liquidation) the Liquidation of the Lessee.

12.2 Forfeiture of Lease

If an Event of Default occurs the Lessor may, without prejudice to any other Claim which the
Lessor has or may have or could otherwise have against the Lessee or any other person in
respect of that default, at any time:

	 	(a)	 	(determination by re-entry) subject to any prior demand or notice as is required
by Law and wherever possible, outside the normal trading hours of the Lessee, re-enter
into and take possession of the Premises or any part of them (by force if necessary) and
eject the Lessee and all other persons from them, in which event this Lease will be at
an end; and/or
	 
	 	(b)	 	(determination by notice) by notice to the Lessee determine this Lease, and from
the date of giving that notice this Lease will be at an end.

12.3 Waiver

	 	(a)	 	(Waiver by Lessor) No consent or waiver express or implied by the Lessor to or of
any breach of any covenant, condition, or duty of the Lessee shall be construed as a
consent or waiver to or of any breach of the same or any other covenant, condition or
duty.
	 
	 	(b)	 	(Waiver by Lessee) No consent or waiver express or implied by the Lessee to or of
any breach of any covenant, condition, or duty of the Lessor shall be construed as a
consent or waiver to or of any breach of the same or any other covenant, condition or
duty.

 

 

					
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12.4 Lessor to mitigate damages

If the Lessee vacates the Premises, whether with or without the Lessor’s Consent, or the
Lessor terminates or forfeits this Lease, the Lessor shall take all reasonable steps to
mitigate its loss and shall as soon as possible endeavour to re-let the Premises at a
reasonable rent and on reasonable terms.

12.5 Recovery of damages

	 	(a)	 	(Fundamental terms) The obligations contained in clauses 4.1, 4.2, 4.3, 4.4,
4.5, 5.3, 5.5, 6.1(a), 7.1(a) and (d), 7.6(a), 8.1, 9.1, 10.1 and 10.3 are
agreed by the Lessor and the Lessee to be fundamental to this Lease.
	 
	 	(b)	 	(Damages) If the Lessor determines this Lease pursuant to this clause 12 as a
consequence of or in reliance upon a breach by the Lessee of one or more of the
obligations contained in the provisions of this Lease referred to in clause 12.5(a)
(whether alone or together with other obligations contained in this Lease) the Lessor
shall, subject to clause 12.4, be entitled to damages for loss of the benefits which
performance of all of the obligations and provisions of this Lease would, but for the
determination, have conferred upon the Lessor, subject to the Lessor’s duty to mitigate
its loss.

12.6 Interest on overdue money

	 	(a)	 	(Interest) The Lessee shall pay to the Lessor interest at the Interest Rate on
any Rent or other money due under this Lease (including money or Costs which are
expressed to be payable or reimbursable to the Lessor on demand) but unpaid for 5
Business Days.
	 
	 	(b)	 	(Conditions) That interest shall:

	 	(i)	 	(accrual) accrue on a daily basis and be calculated on daily rests;
	 
	 	(ii)	 	(payment) be payable on demand or, if no earlier demand is made, on
the first Business Day of each month where an amount arose in the preceding month
or months;
	 
	 	(iii)	 	(calculation) be calculated from the due date for payment of the
Rent or other money (as appropriate) or, in the case of an amount payable by way
of reimbursement or indemnity, the date of outlay or loss, if earlier, until the
date of actual payment; and
	 
	 	(iv)	 	(recovery) be recoverable in the same manner as Rent in arrears.

13. Termination

13.1 Yield up

In relation to the Premises (other than the Non Make Good Buildings), the Lessee shall at the
Terminating Date:

	 	(a)	 	(yield up) yield them up in the state of repair and condition described in and on
the terms set out in clause 7.1 except that the Lessee is not obliged to remove any
Proposed Work it has done during the Term nor to reinstate the Premises to their former
condition unless that was a condition of the Lessor’s Consent to that Proposed Work
being carried out by the Lessee; and

 

 

					
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	 	(b)	 	(remove Lessee’s Fitout and Fittings) if the Lessor so requests or if the Lessee
wishes to, remove from the Premises (other than the Non-Make Good Buildings) all the
Lessee’s Fitout and Fittings and any other property of the Lessee and repaint those
parts of the Premises (other than the Non-Make Good Buildings) which were previously
painted and recarpet those parts of the Premises (other than the Non-Make Good
Buildings) which were carpeted at the Effective Date with carpet of such quality as was
installed at the Effective Date.

13.2 Non Make Good Buildings

In relation to the Non Make Good Buildings:

	 	(a)	 	(remove Lessee’s Fitout and Fittings) if the Lessor so requests the Lessee shall
or if the Lessee wishes to the Lessee may, remove from the Premises all the Lessee’s
Fitout and Fittings and any other property of the Lessee; and
	 
	 	(b)	 	(any condition) the Lessee can deliver them up to the Lessor in any condition,
subject to performance of the Lessee’s obligations in clause 7.1(d) which are due to be
performed prior to the Terminating Date and under clause 13.2(a).

13.3 Lessee not to cause damage

The Lessee shall:

	 	(a)	 	(not cause damage) not cause or contribute to any damage to the Premises (other
than the Non Make Good Buildings) in the removal of the Lessee’s Fitout and Fittings and
other property of the Lessee. If it does, however, it shall make good that damage; and
	 
	 	(b)	 	(leave Premises in good state) leave the Premises in a clean state and Condition.

If the Lessee fails to comply with clauses 13.1, 13.2 and 13.3(a) and (b) within a
reasonable time of the Terminating Date, the Lessor may make good and/or clean the Premises
to the extent the Lessee was obliged to do so at the Cost of and as agent for the Lessee and
recover from the Lessee the Cost to the Lessor of doing so as a liquidated debt payable on
demand. The Lessee must also pay Rent and the Lessee’s Proportion of Outgoings for any
reasonable period in which the Lessor undertakes the Lessee’s obligations under this clause
13.3.

13.4 Failure by Lessee to remove Lessee’s Fitout and Fittings

If the Lessee fails to remove the Lessee’s Fitout and Fittings and other property of the
Lessee when required to do so under clauses 13.1 or 13.2 or following determination under
clause 12.2, within 30 Business Days of notice to do so, the Lessor may cause the Lessee’s
Fitout and Fittings and other property of the Lessee to be removed and stored in such manner
as the Lessor in its discretion thinks fit at the risk and Cost of the Lessee. The Lessee
must also pay Rent and the Lessee’s Proportion of Outgoings for any reasonable period in
which the Lessor undertakes the Lessee’s obligations under this clause 13.4.

13.5 Failure to remove

If the Lessee fails to remove the Lessee’s Fitout and Fittings and other property of the
Lessee by the Terminating Date under clauses 13.1 and 13.2 where the Lessor has not
requested in writing that it do so, it shall then become the property of the Lessor.

 

 

					
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14. Disputes

14.1 Appointment of expert

Any dispute arising under this Lease may at the request of either party be referred for
determination by an appropriate independent person who is:

	 	(a)	 	(agreed by parties) agreed between the Lessor and the Lessee; or
	 
	 	(b)	 	(failing agreement) if they cannot agree, a member of a professional body
nominated at the request of either the Lessor or the Lessee by the President of the
Property Council of Australia Limited.

14.2 Qualifications of expert

The appointed person:

	 	(a)	 	(experience) must have substantial experience in relation to disputes in the
nature of the matter in dispute and where appropriate, in relation to premises of a
similar type within the area in which the Premises are located or other comparable
areas; and
	 
	 	(b)	 	(expert) in making his determination shall act as an expert and not as an
arbitrator.

His determination will be final and binding on the parties.

14.3 Cost of determination

The Cost of the appointed person’s determination shall be borne by either or both of the
parties (as determined by the appointed person) and if by both of the parties in the
proportion between them as the person making the determination decides.

15. Environmental Contamination

15.1 Lessee’s responsibility

Despite any other provision of this Lease except clauses 15.4 and 15.5(b) and 15.5(c) and
the Lessee’s obligations with respect to underground storage tanks and any Environmental
contamination associated with them under clause 7.1(d), the Lessee is not responsible for:

	 	(a)	 	in ground Environmental contamination of the Land or migrating onto or from the
Land which exists at the Effective Date; or
	 
	 	(b)	 	for any Environmental contamination in, on, under’ or migrating onto or from the
Land which occurs on and after the Effective Date which is not caused by the Lessee or
its Employees.

15.2 Lessor’s obligations and indemnity

The Lessor shall:

	 	(a)	 	(comply) without delay, but subject to clauses 15.4 and 15.5(b) and (c):

 

 

					
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	 	(i)	 	remediate any Environmental contamination referred to in clause
15.1 and which:

	 	(A)	 	any Authority requires remediated; or
	 
	 	(B)	 	the parties agree or the expert under clause 14
determines is required pursuant to clause 15.2(c); and

	 	(ii)	 	comply with the Requirements of any Authority and the Law with
respect to the Environmental contamination referred to in clause 15.1; and

	 	(b)	 	(indemnify) indemnify the Lessee against all Claims arising from the matters set
out in clause 15.2(a) including any Costs arising from any agreement negotiated by or
with the consent of the Lessor acting reasonably with any Authority relating to the
matters referred to in clause 15.2(a) except to the extent that:

	 	(i)	 	other than with respect to Environmental contamination which
constitutes a health and safety risk which the Lessee is required to notify to an
Authority by Law, the Lessee or the Lessee’s Employees have taken action with the
intention of causing a Claim to be made or a notice or other Requirement issued
and that action directly or indirectly has a material effect in causing the Claim
to be made or the notice or other Requirement to be issued;
	 
	 	(ii)	 	the Claim relates to Remediation to a standard higher than that
required for industrial use (which the parties agree is the standard appropriate
for the-Permitted Use) whether arising from a rezoning of the Premises or
otherwise; and/or
	 
	 	(iii)	 	any disposition by the Lessee of a legal or equitable interest
which the Lessee has in the Premises is made on terms which include an indemnity
in respect of the Environment which is materially more advantageous to the person
receiving that interest from the Lessee than the indemnity included in this
clause 15.2, including in respect of the qualifications applicable to the
indemnity contained in this clause 15.2(b).

	 	(c)	 	(i)	 	If there is any Environmental contamination referred to in clause 15.1
which:

	 	(A)	 	prevents the Lessee operating from the Premises in the
manner used at the Effective Date; or
	 
	 	(B)	 	otherwise constitutes a health and safety risk, then
the Lessee may give notice to the Lessor with reasonable details of the
Environmental contamination and requesting that the Lessor remediate that
contamination.

	 	(ii)	 	If the Lessor disputes whether the remediation requested by the
Lessee is reasonably necessary, it must give notice to the Lessee within 20
Business Days of the date of service of the Lessee’s notice under paragraph (i).
	 
	 	(iii)	 	If the Lessor and the Lessee cannot agree on whether the
remediation requested by the Lessee is reasonably necessary within 25 Business
Days of the date of service of the Lessee’s notice under paragraph (i) above,
then either party may refer the matter for dispute resolution under clause 14.

 

 

					
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15.3 Remediation by the Lessee if Lessor defaults

If:

	 	(a)	 	(Lessor’s failure) the Lessor fails to comply with clause 15.2(a) in accordance
with the Requirements of any Authority and the Law (or, if no time is specified, within
a reasonable time of notice from the Lessee, having regard to the nature of the
remediation or the Law or Requirement and the period of time reasonably required to
carry out the remediation or comply with the Law or Requirement); or
	 
	 	(b)	 	(emergency) any emergency arises which requires the immediate or urgent
remediation of Environmental contamination or compliance with a Requirement or the Law
which the Lessor is required to remediate or comply with under this Lease,

then the Lessee may remediate the Environmental contamination or comply with the Law or the
Requirement and the Cost of so doing and of all Claims incurred by the Lessee in properly
complying with that Law or Requirement or arising from the Lessor’s failure to do so and any
reasonable Costs arising from temporary relocation of all or part of the Lessee’s Business
shall, at the Lessee’s option be (but subject to clause 7.12):

	 	(c)	 	(on demand) payable by the Lessor to the Lessee on demand on a full indemnity
basis;
	 
	 	(d)	 	(set off) be set off against the Rent, the Lessee’s Proportion of Outgoings and
any other moneys payable by the Lessee under this Lease; or
	 
	 	(e)	 	(combination) accounted for by a combination of the above in the Lessee’s
discretion,

until all Costs incurred by the Lessee have been recovered.

15.4 Pre-existing UST’s

The Lessee must by the Terminating Date remove any underground storage tanks existing on the
Land at the Effective Date or installed by the Lessee during the Term and remediate or
otherwise deal with any Environmental contamination associated with them to the extent
required to enable the Land to continue to be used for industrial purposes following the
Terminating Date.

15.5 Specific obligations

	 	(a)	 	Subject to clause 7.11, the Lessee must effect and maintain all Environmental
management plans relating to the Environmental condition of the Buildings on the
Premises which are Required by Law or any Authority during the Term.
	 
	 	(b)	 	Subject to clauses 7.11 and 15.5(c), the Lessee shall contribute up to a
maximum of $40,000 per annum (increased by 3% per annum on each anniversary of the
Effective Date) towards the Costs of:

	 	(i)	 	day to day repair and maintenance of the pumping out equipment (but
not capital or structural Costs); and
	 
	 	(ii)	 	any pumping out of mobile contaminants (including petroleum
hydrocarbons) identified in the groundwater of that part of the Land included in
the Premises,

 

 

					
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	 	which is Required by Law or any Authority during the Term or any balance in excess of
this amount per annum shall be payable by the Lessor within 5 Business Days of receipt
of a tax invoice and reasonable details of the amount claimed.

	 	(c)	 	The Lessor must pay all capital Costs associated with the purchase, commissioning
and, subject to the Lessee performing the repair and maintenance obligation referred to
in clause 15.5(b), replacement of the remediation equipment required for the purposes
of pumping out from the Premises and which i is Required by Law or any Authority during
the Term, within 5 Business Days of receipt of a tax invoice and reasonable details of
the amounts claimed.

15.6 Recovery from polluter

The Lessor must:

	 	(a)	 	include any pumping out Costs paid by the Lessee under clause 15.5(b) in any
Claim against the polluter; and
	 
	 	(b)	 	reimburse to the Lessee any of those Costs recovered from the polluter within 5
Business Days of receipt (capped at the amounts actually incurred by the Lessee).

15.7 Acknowledgement

Without limiting any other provision of this clause 15, the Lessee acknowledges that the
Premises are at the Effective Date subject to Environmental contamination and accepts the
Premises in that state.

16. Miscellaneous

16.1 Notices

All notices, requests, demands, consents, approvals, agreements or other communications to or
by a party to this Lease:

	 	(a)	 	(writing) must be in writing;
	 
	 	(b)	 	(signed) must be signed by the sender, or if a company, by its Authorised
Officer; and
	 
	 	(c)	 	(served) will be taken to have been served:

	 	(i)	 	(personal) in the case of delivery in person, when delivered to or
left at the address of the recipient shown in this Lease (as the case may be) or
at any other address which the recipient may have notified to the sender;
	 
	 	(ii)	 	(fax) in the case of facsimile transmission, when recorded on the
transmission result report unless:

	 	(A)	 	within 24 hours of that time the recipient informs the
sender that the transmission was received in an incomplete or garbled form;
or
	 
	 	(B)	 	the transmission result report indicates a faulty or
incomplete transmission; and

 

 

					
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	 	(d)	 	(mail) in the case of mail, on the third Business Day after the date on which the
notice is accepted for posting by the relevant postal authority,

but if service is on a day which is not a Business Day in the place to which the
communication is sent or is later than 4.00pm (local time) on a Business Day, the notice will
be taken to have been served on the next Business Day in that place.

16.2 Stamp Duty, Costs and Registration

	 	(a)	 	(Stamp Duty and registration fees) The Lessee shall pay to the Lessor on demand
all stamp duty (including penalties and fines other than those incurred due to the fault
of the Lessor) and all registration fees (if applicable) with respect to this Lease.
	 
	 	(b)	 	(Legal costs) Each party shall pay their own legal Costs with respect to this
Lease.
	 
	 	(c)	 	(Lessor to stamp and register) The Lessor shall (subject to receipt of necessary
funds from the Lessee) attend to payment of stamp duty on and registration of this Lease
at the Department of Natural Resources and Mines, Brisbane as soon as possible after the
Effective Date.

16.3 Severance

Any provision of this Lease which is prohibited or unenforceable in any jurisdiction will be
ineffective in that jurisdiction to the extent of the prohibition or unenforceability. That
will not invalidate the remaining provisions of this Lease nor affect the validity or
enforceability of that provision in any other jurisdiction.

16.4 Entire agreement

This Lease contains all the contractual arrangements of the parties with respect to the
transaction to which it relates. No representations or warranties made by either party with
respect to the transaction to which this Lease relates shall be actionable or enforceable
except to the extent that they are contained in this Lease.

16.5 Governing law

This Lease is governed by the laws of Queensland. The parties submit to the non-exclusive
jurisdiction of courts exercising jurisdiction there.

17. Confidentiality

	 	(a)	 	(Duty) Unless the parties otherwise agree in any particular instance, the
provisions of this Lease and all information disclosed to or obtained by the parties in
relation to each other and this Lease and which is not in public knowledge (or which is
in public knowledge only as a consequence of a breach of this clause) must be kept
confidential to the parties and may not be disclosed (unless otherwise required by Law)
except to any bona fide consultants retained by a party in relation to this Lease, or to
bona fide purchasers, financiers, assignees or sub occupants (as the case may be) and
any such consultant or other person must be provided only with that information which he
needs to know for the purposes of reviewing this Lease and he must undertake in writing
to maintain the confidentiality of that information.

 

 

					
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	 	SCHEDULE
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	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 43 of 50
	 	 	 	 	 

Title Reference 15798160

	 	(b)	 	(Indemnity) The parties shall indemnify each other and must keep each other
indemnified against all Claims suffered or incurred as a consequence of any breach of
clause 17(a) by the Lessor or the Lessee or their respective Employees, consultants or
other reasons for whom they are responsible.

18. Surrender of Lease

18.1 Definitions

Ausco Sublease means the sublease between the Lessee and Ausco Pty Limited which commenced on
1 March 2004, including the further term under the put and call option contained in that
sublease.

Ausco Sublease Expiry Date means 30 March 2010.

Ausco Sublease Premises means the premises subleased to Ausco Pty Limited pursuant to the
Ausco Sublease.

18.2 Partial surrender

	 	(a)	 	At any time after the Ausco Sublease Expiry Date, the Lessee may surrender its
interest in this Lease with respect to the Ausco Sublease Premises by notice to the
Lessor. The Lessee is released from all obligations with respect to the Ausco Sublease
Premises which arise after the date of service of that notice, subject to clause
18.2(b) and (c).
	 
	 	(b)	 	Despite any other provision of this Lease, on the date of service of the notice
referred to in clause 18.2(a), the Lessee’s Proportion of Outgoings payable under this
Lease shall be reduced by an amount equal to the outgoings payable under the Ausco
Sublease but the Rent will not reduce.
	 
	 	(c)	 	If the Lessee has exercised its right under clause 18.2(a), the Rent shall
reduce by the amount which is 50% of the per annum rent payable in the last year of the
Ausco Sublease on the date of practical completion of a new building on all or any part
of the Ausco Sublease Premises. The Lessor must promptly give notice to the Lessee when
the new lease commences.
	 
	 	(d)	 	The parties shall promptly do all things necessary to prepare, execute and
register any documentation relevant to the surrender referred to in clause 18.2(a) and
the variations to the Lease arising under clause 18.2(b) and 18.2(c).
	 
	 	(e)	 	The parties agree that despite any other provision of this Lease, the Lessor’s
Consent to any holding over, renewal, extension or new lease to Ausco of all or any part
of the Ausco Sublease Premises is not required.

18.3 Deleted

19. Limitation of liability

	19.1	 	The Lessor enters into this Lease only in its capacity as trustee of the Trust (Trustee).

 

 

					
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	 	SCHEDULE
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	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 44 of 50
	 	 	 	 	 

Title Reference 15798160

	19.2	 	Subject to clause 19.4:

	 	(a)	 	a liability arising under or in connection with this Lease (or the transactions
contemplated by it) is limited and can be enforced against the Trustee only to the
extent to which it can be satisfied out of property of the Trust out of which the
Trustee is actually indemnified for the liability; and
	 
	 	(b)	 	the limitation in clause 19.2(a) applies despite any other provisions of this
Lease.

	19.3	 	Subject to clause 19.4 no party shall:

	 	(a)	 	sue the Trustee in any capacity other than as Trustee of the Trust;
	 
	 	(b)	 	seek to appoint or take any steps to procure or support the appointment of a
receiver, a receiver and manager, a liquidator, a provisional liquidator, an
administrator or similar person to the Trustee or prove in any liquidation,
administration or arrangement of or affecting the Trustee (except in relation to the
property of the Trust);
	 
	 	(c)	 	enforce or seek to enforce any judgment in respect of any liability arising under
or in connection with this Lease (or the transactions contemplated by it) against any
property of the Trustee other than property held by the Trustee as responsible entity of
the Trust.

	19.4	 	The limitations in clauses 19.1, 19.2 and 19.3 do not apply to any liability of the
Trustee to the extent that the liability is not satisfied because, under the constitution of
the Trust or by operation of law there is a reduction in the extent of the Trustee’s
indemnification out of the assets of the Trust, as a result of the Trustee’s fraud, negligence
or breach of trust .

20. Trust warranties

Where the Lessor is a trustee and/or responsible entity of a Trust, the Lessor warrants in
its personal capacity that:

	 	(a)	 	(trustee) it is the sole trustee of the Trust;
	 
	 	(b)	 	(power) it, in its capacity as trustee of the Trust, is entitled and competent
and has absolute and complete authority, power and capacity to enter into and perform
its obligations under this Lease and is not in breach of any Law or court order relating
to its acting as trustee of the Trust;
	 
	 	(c)	 	(indemnity) its right of indemnity out of; and lien over, the assets of the Trust
has not been limited in any way and that right has priority over the right of the
beneficiaries to the Trust assets;
	 
	 	(d)	 	(enforceable) the deed establishing the Trust (Trust Deed) is enforceable in
accordance with the Law applicable to it;
	 
	 	(e)	 	(consent) the consent of each of the beneficiaries, unitholders or other persons
whose consent is required under the Trust Deed has been obtained;
	 
	 	(f)	 	(no breach) the entry into this Lease by the Lessor does not conflict with or
result in a breach of, or default under, any provision of the Trust Deed or any other
agreement to which the Lessor is a party (whether in its capacity as trustee of the
Trust or its personal capacity);

 

 

					
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	 	SCHEDULE
	 	Form 20 Version 2
	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 45 of 50
	 	 	 	 	 

Title Reference 15798160

	 	(g)	 	(Trust extant) the Trust has not at the Effective Date been terminated nor has
the date or any event for the vesting of the assets subject to the Trust occurred.

21. Guarantee and Indemnity

21.1 Consideration

The Guarantor gives this guarantee and indemnity in consideration of the Lessor agreeing to
enter into this Lease at the request of the Guarantor. The Guarantor acknowledges the receipt
of valuable consideration from the Lessor for the Guarantor incurring obligations and giving
rights under this guarantee and indemnity.

21.2 Guarantee

The Guarantor unconditionally and irrevocably guarantees to the Lessor the due and punctual
performance and observance by the Lessee of its obligations:

	 	(a)	 	under this Lease, even if this Lease is not registered or is found not to be a
lease or is found to be a lease for a term less than the Term; and
	 
	 	(b)	 	in connection with its occupation of the Premises,

including the obligations to pay money.

21.3 Indemnity

As a separate undertaking, the Guarantor unconditionally and irrevocably indemnifies the
Lessor against all liability or loss arising from, and any costs, charges or expenses
incurred in connection with:

	 	(a)	 	the Lessee’s breach of this Lease; or
	 
	 	(b)	 	the Lessee’s occupation of the Premises,

including a breach of the obligations to pay money; or

	 	(c)	 	a representation or warranty by the Lessee in this Lease being incorrect or
misleading when made or taken to be made; or
	 
	 	(d)	 	a liquidator disclaiming this Lease.

It is not necessary for the Lessor to incur expense or make payment before enforcing that
right of indemnity.

21.4 Interest

The Guarantor agrees to pay interest on any amount payable under this guarantee and indemnity
from when the amount becomes due for payment until it is paid in full. The Guarantor must pay
accumulated interest at the end of each month without demand. lnterest is payable as set out
in clause 12.6.

 

 

					
	QUEENSLAND LAND REGISTRY
	 	SCHEDULE
	 	Form 20 Version 2
	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 46 of 50
	 	 	 	 	 

Title Reference 15798160

21.5 Enforcement of rights

The Guarantor waives any right it has of first requiring the Lessor to commence proceedings
or enforce any other right against the Lessee or any other person before claiming under this
guarantee and indemnity.

21.6 Continuing security

This guarantee and indemnity is a continuing security and is not discharged by any one payment.

21.7 Guarantee not affected

The liabilities of the Guarantor under this guarantee and indemnity as a guarantor,
indemnifier or principal debtor and the rights of the Lessor under this guarantee and
indemnity are not affected by anything which might otherwise affect them at law or in equity
including, but not limited to, one or more of the following:

	 	(a)	 	the Lessor granting time or other indulgence to, compounding or compromising with
or releasing the Lessee or any other Guarantor;
	 
	 	(b)	 	acquiescence, delay, acts, omissions or mistakes on the part of the Lessor;
	 
	 	(c)	 	any transfer of a right of the Lessor;
	 
	 	(d)	 	the termination, surrender or expiry of, or any variation, assignment,
subletting, licensing, extension or renewal of or any reduction or conversion of the
Term of this Lease;
	 
	 	(e)	 	the invalidity or unenforceability of an obligation or liability of a person
other than the Guarantor;
	 
	 	(f)	 	any change in the Lessee’s occupation of the Premises;
	 
	 	(g)	 	this Lease not being registered;
	 
	 	(h)	 	this Lease not being effective as a lease;
	 
	 	(i)	 	this Lease not being effective as a lease for the Term;
	 
	 	(j)	 	any person named as Guarantor not executing or not executing effectively this
guarantee and indemnity;
	 
	 	(k)	 	a liquidator disclaiming this Lease.

21.8 Suspension of Guarantor’s rights

The Guarantor may not:

	 	(a)	 	raise a set-off or counterclaim available to it or the Lessee against the Lessor
in reduction of its liability under this guarantee and indemnity; or
	 
	 	(b)	 	claim to be entitled by way of contribution, indemnity, subrogation, marshalling
or otherwise to the benefit of any security or guarantee held by the Lessor in
connection with this Lease; or

 

 

					
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	 	SCHEDULE
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	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 47 of 50
	 	 	 	 	 

Title Reference 15798160

	 	(c)	 	make a claim or enforce a right against the Lessee or its property; or
	 
	 	(d)	 	prove in competition with the Lessor if a liquidator, provisional liquidator,
receiver, administrator or trustee in bankruptcy is appointed in respect of the Lessee
or the Lessee is otherwise unable to pay its debts when they fall due,

until all money payable to the Lessor in connection with the lease or the Lessee’s occupation
of the Premises is paid.

21.9 Reinstatement of guarantee

If a claim that a payment to the Lessor in connection with this Lease or this guarantee and
indemnity is void or voidable (including, but not limited to, a claim under laws relating to
liquidation, administration, insolvency or protection of creditors) is upheld, conceded or
compromised then the Lessor is entitled immediately as against the Guarantor to the rights to
which it would have been entitled under this guarantee and indemnity if the payment had not
occurred.

21.10 Costs

The Guarantor agrees to pay or reimburse the Lessor on demand for:

	 	(a)	 	the Lessor’s costs, charges and expenses in making, enforcing and doing anything
in connection with this guarantee and indemnity including, but not limited to, legal
costs and expenses on a full indemnity basis; and
	 
	 	(b)	 	all stamp duties, fees, taxes and charges which are payable in connection with
this guarantee and indemnity or a payment, receipt or other transaction contemplated by
it.

Money paid to the Lessor by the Guarantor must be applied first against payment of costs,
charges and expenses under this clause 21.10 then against other obligations under this
guarantee and indemnity.

21.11 Lessor may assign

The Lessor may assign its rights under this guarantee and indemnity to a purchaser or
transferee of the Land.

22. Licence of Licensed Area

22.1 Grant of Licence

The Lessor grants to the Lessee a non-exclusive licence to use the Licensed Area for purposes
associated with the Permitted Use.

22.2 Lessor to retain legal possession

This clause 22 does not give the Lessee any interest in the Licensed Area or any part of it
and the legal possession and control of it is at all times is vested in the registered
proprietor for the time being of the Licensed Area.

 

 

					
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	 	SCHEDULE
	 	Form 20 Version 2
	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 48 of 50
	 	 	 	 	 

Title Reference 15798160

22.3 Term

The term of the licence is from the Commencing Date to the Terminating Date.

22.4 Other conditions

	 	(a)	 	The lessee shall not be required to pay any licence fee with respect to the
Licensed Area in addition to the Rent.
	 
	 	(b)	 	The Lessee shall indemnify the Lessor on demand against all Claims which the
Lessor may sustain or incur in relation to:

	 	(i)	 	the Lessee’s use of the Licensed Area; and
	 
	 	(ii)	 	any breach of this clause 22 by the Lessee,

	 	 	 	except to the extent that any such Claim is caused or contributed to by any act or
omission on the part of the Lessor or its Employees.
	 
	 	(c)	 	The terms of this Lease (other than clauses 4 and 5.3 to 5.6) apply to the
licence of the Licensed Area granted under this clause 22.

22.5 On sale

If the Lessor sells the Land, it shall procure from the purchaser prior to completion of the
sale deed in favour of the Lessee to observe and perform the provisions of this clause 22.
This clause will only apply to the extent that the Lessee has or will have an interest in the
Licensed Area at the date of completion of the sale.

 

 

					
	QUEENSLAND LAND REGISTRY
	 	SCHEDULE
	 	Form 20 Version 2
	Land Title Act 1994, Land Act 1994 and Water Act 2000
	 	 	 	Page 49 of 50
	 	 	 	 	 

Title Reference 15798160

Executed as a deed and delivered on the date shown on the first page.

Executed by Multiplex Carole Park

Landowner Pty Limited in accordance

with section 127 of the

Corporations Act 2001:

	 	 	 	 	 	 	 
	/s/ Alex Carrodus
 

Director/Company Secretary

	 	 	 	/s/ Ian Robert O’Toole
 

Director
	 	 
	 
	 	 	 	 	 	 
	Alex Carrodus
 

Name of Director/Company Secretary

	 	 	 	Ian Robert O’Toole
 

Name of Director
	 	 
	(BLOCK LETTERS)

	 	 	 	(BLOCK LETTERS)	 	 
	 
	 	 	 	 	 	 
	Signed for and on behalf of James Hardie

	 	 	 	James Hardie Australia Pty Limited	 	 
	Australia Pty Limited by its attorney Joanne

	 	 	 	by its attorney	 	 
	Marchione under power of attorney registered
	 	 	 	 	 	 
	number 707564405 dated 12 March 2004 in the
	 	 	 	 	 	 
	presence of:

	 	 	 	/s/ Joanne Marchione	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Bruce J.W. Potts
 

Signature of witness

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Bruce J. W. Potts
 

Name of witness (BLOCK LETTERS)

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Level 3, 22 Pitt Street, Sydney 2000
 

Address of witness

	 	 	 	 	 	 

 

 

					
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	 	SCHEDULE
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Title Reference 15798160

	 	 	 	 	 	 	 
	Signed for and on behalf of James Hardie

	 	 	 	James Hardie Industries N.V.  by	 	 
	Industries N.V. by its attorney Joanne

	 	 	 	 its attorney	 	 
	Marchione under power of attorney registered
	 	 	 	 	 	 
	number 707564412 dated 12 March 2004 in the
	 	 	 	 	 	 
	presence of:

	 	 	 	/s/ Joanne Marchione
 

	 	 
	 
	 	 	 	 	 	 
	/s/ Bruce J.W. Potts
 

Signature of witness

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Bruce J.W. Potts
 

Name of witness (BLOCK LETTERS)

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Level 3, 22 Pitt Street, Sydney 2000
 

Address of witnessexv10w14

Exhibit 10.14

Lease

Welshpool Landowner Pty Ltd

(“Lessor”)

and

James Hardie Australia Pty Limited

(“Lessee”)

 

	 	 	 	 	 
	 	 	Lease	 
	
	
	Clause	 	Page 	 
	Table of contents
	 	 	 	 
	1 Definitions
	 	 	1	 
	 
	 	 	 	 
	2 Grant of Lease
	 	 	6	 
	 
	 	 	 	 
	3 Quiet enjoyment
	 	 	7	 
	 
	 	 	 	 
	4 Easements
	 	 	7	 
	 
	 	 	 	 
	4.1 Purposes for which Lessor may act
	 	 	7	 
	4.2 Rights of Lessor in respect of easements
	 	 	7	 
	4.3 Easements may not substantially derogate from Lessee’s Rights
	 	 	7	 
	 
	5 Rent
	 	 	7	 
	 
	 	 	 	 
	6 Rent review
	 	 	8	 
	 
	 	 	 	 
	6.1 Definitions
	 	 	8	 
	6.2 Method of review the rent
	 	 	9	 
	 
	 	 	 	 
	7 Not to cause rent reduction
	 	 	9	 
	 
	 	 	 	 
	8 Goods and services tax
	 	 	10	 
	 
	 	 	 	 
	8.1 Definitions
	 	 	10	 
	8.2 Lessee must pay GST
	 	 	10	 
	8.3 Lessee must pay GST at same time
	 	 	10	 
	8.4 Prices do not include GST
	 	 	10	 
	8.5 Apportionment of GST
	 	 	10	 
	8.6 Statement of GST paid is conclusive
	 	 	10	 
	 
	 	 	 	 
	9 Variable Outgoings
	 	 	11	 
	 
	 	 	 	 
	9.1 Estimate of Lessee’s Proportion of Variable Outgoings
	 	 	11	 
	9.2 Issue of statement of Variable Outgoings
	 	 	11	 
	9.3 Issue of statement of Rates and Taxes
	 	 	11	 
	9.4 Apportionment for periods less than TWELVE (12) months
	 	 	11	 
	9.5 Changes to Variable Outgoings
	 	 	11	 
	9.6 Payment by Lessee
	 	 	11	 
	9.7 Lessor to pay Rates and Taxes
	 	 	11	 
	9.8 Lessor to refund overpayment
	 	 	12	 
	9.9 Lessor may recover taxes
	 	 	12	 
	 
	 	 	 	 
	10 Outgoings separately assessed
	 	 	12	 
	 
	 	 	 	 
	11 Costs and expenses
	 	 	12	 
	 
	 	 	 	 
	11.1 Definition
	 	 	12	 
	11.2 Payment of costs
	 	 	12	 
	 
	 	 	 	 
	12 Interest on overdue money
	 	 	13	 
	 
	 	 	 	 
	13 Lessor to maintain building
	 	 	13	 

page 1

 

	 	 	 	 	 
	 	 	Lease	 
	
	
	Clause	 	Page	 
	14 Lessee to maintain premises
	 	 	14	 
	 
	 	 	 	 
	14.1 General
	 	 	14	 
	14.2 Floor covering
	 	 	14	 
	14.3 Repair promptly
	 	 	14	 
	14.4 Paint and decorate
	 	 	15	 
	14.5 Clean and free from rubbish
	 	 	15	 
	14.6 Pest control
	 	 	15	 
	 
	 	 	 	 
	15 Lessor’s fixtures and the facilities in the premises
	 	 	15	 
	 
	 	 	 	 
	15.1 Maintain
	 	 	15	 
	15.2 Replacements
	 	 	15	 
	15.3 Facilities
	 	 	16	 
	 
	 	 	 	 
	16 Alterations
	 	 	16	 
	 
	 	 	 	 
	16.1 Restriction on alterations
	 	 	16	 
	16.2 Consent to alterations
	 	 	16	 
	16.3 Other work necessitated by alteration
	 	 	16	 
	16.4 Asbestos and other harmful substances
	 	 	17	 
	 
	 	 	 	 
	17 Use of the premises
	 	 	17	 
	 
	 	 	 	 
	17.1 Purpose
	 	 	17	 
	17.2 No warranty as to use
	 	 	17	 
	17.3 Premises subject to restrictions
	 	 	17	 
	17.4 Consent of authority needed
	 	 	17	 
	 
	 	 	 	 
	18 Floor overloading
	 	 	18	 
	 
	 	 	 	 
	19 Chemicals and inflammable substances
	 	 	18	 
	 
	 	 	 	 
	20 Environmental covenant
	 	 	18	 
	 
	 	 	 	 
	20.1 Definition
	 	 	18	 
	20.2 Environment
	 	 	18	 
	 
	 	 	 	 
	21 Use of other parts of the Building
	 	 	19	 
	 
	 	 	 	 
	21.1 Restrictions on use
	 	 	19	 
	21.2 Common Areas
	 	 	19	 
	 
	 	 	 	 
	22 Use and enjoyment affecting occupiers
	 	 	19	 
	 
	 	 	 	 
	22.1 Offensive activities
	 	 	19	 
	22.2 Aerials and amplified noise
	 	 	19	 
	22.3 Infectious diseases
	 	 	20	 
	22.4 No smoking
	 	 	20	 
	22.5 Not to cause obstruction
	 	 	20	 
	 
	 	 	 	 
	23 Miscellaneous restrictions on use
	 	 	20	 
	 
	 	 	 	 
	23.1 Advertisements or notices
	 	 	20	 
	23.2 Rubbish
	 	 	20	 
	 
	 	 	 	 
	24 Security of the building and the Premises
	 	 	21	 

page 2

 

	 	 	 	 	 
	 	 	Lease	 
	
	
	Clause	 	Page 	 
	24.1 Lock Premises
	 	 	21	 
	24.2 Outside doors of Building
	 	 	21	 
	 
	 	 	 	 
	25 Entry by Lessor
	 	 	21	 
	 
	 	 	 	 
	25.1 General
	 	 	21	 
	25.2 Inspect state of repair
	 	 	21	 
	25.3 Comply with authorities
	 	 	21	 
	25.4 Maintenance, modifications or extensions
	 	 	21	 
	25.5 Plant and Equipment
	 	 	21	 
	25.6 Interested persons
	 	 	22	 
	25.7 Affix notices
	 	 	22	 
	 
	 	 	 	 
	26 Unauthorised purpose
	 	 	22	 
	 
	 	 	 	 
	27 Plant and equipment
	 	 	22	 
	 
	 	 	 	 
	28 Electrical circuits
	 	 	22	 
	 
	 	 	 	 
	28.1 Not overload
	 	 	22	 
	28.2 Consent to install equipment
	 	 	22	 
	 
	 	 	 	 
	29 Insurance
	 	 	23	 
	 
	 	 	 	 
	29.1 Public liability insurance
	 	 	23	 
	29.2 Insurance of Lessee’s Fixtures
	 	 	23	 
	29.3 Workers’ compensation insurance
	 	 	23	 
	29.4 Glass
	 	 	23	 
	29.5 Supply details etc.
	 	 	23	 
	29.6 Not to invalidate insurance
	 	 	23	 
	 
	 	 	 	 
	30 Lessee’s indemnities
	 	 	24	 
	 
	 	 	 	 
	30.1 Indemnities paramount
	 	 	24	 
	30.2 Indemnity in respect of Lessor’s expenses
	 	 	24	 
	30.3 General indemnity
	 	 	24	 
	 
	 	 	 	 
	31 Lessee’s obligations at risk and expense of Lessee
	 	 	24	 
	 
	 	 	 	 
	32 Limit of Lessor’s liability
	 	 	24	 
	 
	 	 	 	 
	33 Report to Lessor
	 	 	25	 
	 
	 	 	 	 
	33.1 Damage to or defect in Premises
	 	 	25	 
	33.2 Broken glass
	 	 	25	 
	33.3 Malfunction of Plant and Equipment or Facility
	 	 	25	 
	33.4 Circumstance likely to cause damage or danger
	 	 	25	 
	 
	 	 	 	 
	34 Caveats
	 	 	25	 
	 
	 	 	 	 
	34.1 Not lodge absolute caveat
	 	 	25	 
	34.2 Withdraw caveat on Termination
	 	 	25	 
	 
	 	 	 	 
	35 Not impede exercise of Lessor’s rights
	 	 	25	 
	 
	 	 	 	 
	36 Compliance with statutes
	 	 	25	 

page 3

 

	 	 	 	 	 
	 	 	Lease	 
	
	
	Clause	 	Page 	 
	37 Default by Lessee
	 	 	26	 
	 
	 	 	 	 
	37.1 Events of default
	 	 	26	 
	37.2 Lessor may retake possession
	 	 	26	 
	37.3 Acceptance of Money Payable not to prejudice Lessor’s Rights
	 	 	27	 
	37.4 Lessor may remedy Lessee’s default
	 	 	27	 
	37.5 Exercise of Lessor’s Rights
	 	 	27	 
	37.6 Essential terms
	 	 	27	 
	37.7 Damages for breach of essential terms
	 	 	28	 
	37.8 Certificate to be conclusive
	 	 	29	 
	37.9 Separate suits
	 	 	29	 
	 
	 	 	 	 
	38 Destruction or damage to building or premises
	 	 	29	 
	 
	 	 	 	 
	38.1 Major Rebuilding Required
	 	 	29	 
	38.2 Abatement of Rent
	 	 	30	 
	38.3 Lessee may Terminate
	 	 	30	 
	 
	 	 	 	 
	39 Option to renew
	 	 	30	 
	 
	 	 	 	 
	40 Holding over
	 	 	30	 
	 
	 	 	 	 
	41 Termination
	 	 	31	 
	 
	 	 	 	 
	41.1 Restoration of the Premises on Termination
	 	 	31	 
	41.2 Yield up and surrender keys
	 	 	31	 
	41.3 Removal of Lessee’s Fixtures
	 	 	31	 
	 
	 	 	 	 
	42 Lessee’s goods left in common areas
	 	 	31	 
	 
	 	 	 	 
	43 Lessee’s fixtures not removed at termination
	 	 	32	 
	 
	 	 	 	 
	43.1 Lessor may remove
	 	 	32	 
	43.2 Lessee to indemnify
	 	 	32	 
	43.3 Property may be sold
	 	 	32	 
	 
	 	 	 	 
	44 Assigning and charging
	 	 	32	 
	 
	 	 	 	 
	44.1 No assignment without consent
	 	 	32	 
	44.2 Exclusion of the Property Law Act
	 	 	32	 
	44.3 Changes in beneficial ownership of shares
	 	 	32	 
	44.4 Consent to assignment
	 	 	32	 
	44.5 Directors or shareholders must guarantee
	 	 	33	 
	44.6 Assignee substitutes for assignor
	 	 	33	 
	44.7 Consent to charge
	 	 	33	 
	44.8 Costs in respect of assigning
	 	 	33	 
	44.9 Consent to sublet
	 	 	33	 
	 
	 	 	 	 
	45 Consents
	 	 	33	 
	 
	 	 	 	 
	46 Act by agents
	 	 	33	 
	 
	 	 	 	 
	47 Lessee liable for permitted persons
	 	 	34	 

page 4

 

	 	 	 	 	 
	 	 	Lease	 
	
	
	Clause	 	Page	 
	48 Notice
	 	 	34	 
	 
	48.1 Definition
	 	 	34	 
	48.2 Form and Service
	 	 	34	 
	 
	 	 	 	 
	49 Proper law
	 	 	35	 
	 
	 	 	 	 
	50 Arbitration
	 	 	35	 
	 
	50.1 Dispute referred to single arbitrator
	 	 	35	 
	50.2 No abatement
	 	 	35	 
	 
	 	 	 	 
	51 Accrual on daily basis
	 	 	35	 
	 
	 	 	 	 
	52 Statutory powers
	 	 	36	 
	 
	 	 	 	 
	53 Moratorium not to apply
	 	 	36	 
	 
	 	 	 	 
	54 Severance
	 	 	36	 
	 
	 	 	 	 
	55 Waivers
	 	 	36	 
	 
	 	 	 	 
	55.1 Failure or delay is not waiver
	 	 	36	 
	55.2 Partial exercise does not preclude further exercise
	 	 	36	 
	 
	 	 	 	 
	56 Variation
	 	 	36	 
	 
	 	 	 	 
	57 Further assurances
	 	 	36	 
	 
	 	 	 	 
	58 Counterparts
	 	 	36	 
	 
	 	 	 	 
	59 Payment of money
	 	 	37	 

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Lease

	 	 	This lease

	 	 	 	is made on      3 April 2009      between the following parties:

	 	 	 	Welshpool Landowner Pty Ltd

ACN 108 198 778

of Suite 1, 567 Hay Street Daglish, Western Australia 6008

(Lessor)

	 	2.	 	James Hardie Australia Pty Limited

ACN 084 635 558

of 10 Colquhoun Street Rosehill, New South Wales 2142

(Lessee)

The parties agree

	1	 	Definitions

	 	 	 	Unless otherwise required by the context or subject matter:
	 
	 	 	 	Address means the address specified in Item 8 of the Schedule or any other address
which the Lessor by notice to the Lessee nominates;
	 
	 	 	 	Building means the building situated at the corner of Briggs Street and Rutland
Avenue, Welshpool, WA and all associated improvements;
	 
	 	 	 	Business Day means a day other than a Saturday, Sunday or public holiday in Western
Australia;
	 
	 	 	 	Common Areas means the parts of the Land and the Building from time to time set aside
by the Lessor:

	 	(a)	 	as areas open to the public;
	 
	 	(b)	 	for common use by the Occupiers; or
	 
	 	(c)	 	for common amenity or convenience;

	 	 	 	Costs and Expenses means the costs and expenses mentioned in clause 11;
	 
	 	 	 	Date of Commencement means the date specified in Item 4 of the Schedule;
	 
	 	 	 	Document means this deed as supplemented, amended or varied from time to time;
	 
	 	 	 	Encumbrance means a mortgage, charge, bill of sale, lien, pledge, easement,
restrictive covenant, writ, warrant or caveat and the claim stated in that caveat
affecting the Land or the Building;
	 
	 	 	 	Event of Default means an event specified in clause 37.1;
	 
	 	 	 	Facility means a lavatory, sink, drain or other sewerage or plumbing facility, and a
gas or electrical fitting or appliance in or on the Land or the Building;
	 
	 	 	 	Final Period means the period from the first day of the final Lease Year to the date
of Termination;

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Lease

	 	 	 	Further Term means each further term specified in Item 5 of the Schedule;
	 
	 	 	 	Holding Over means holding over by the Lessee under clause 40;
	 
	 	 	 	Insured Risk means an event against which property owners customarily insure
including, but not limited to, fire, explosion, earthquake, aircraft, riot, civil
commotion, lightning, storm, tempest, act of God, fusion, smoke, rainwater, water
leakage, impact by vehicles, machinery breakdown and malicious acts or omissions;
	 
	 	 	 	Interest means interest at the rate specified in Item 10 of the Schedule;
	 
	 	 	 	Land means the land described in Item 2 of the Schedule;
	 
	 	 	 	Lease Year means a period of TWELVE (12) months commencing on July 1 in any year of
the Term or any other period of TWELVE (12) months specified by the Lessor, and
includes where appropriate the Preliminary Period and the Final Period;
	 
	 	 	 	Lessee’s Covenants means the covenants, agreements and obligations contained or
implied in this Document or imposed by law to be observed and performed by the Lessee;
	 
	 	 	 	Lessee’s Fixture means each fixture installed in or on the Premises by the Lessee or a
previous occupier of the Premises or any part of the Premises;
	 
	 	 	 	Lessee’s Proportion means:

	 	(a)	 	in respect of land tax and metropolitan region improvement tax;

	 	(1)	 	if land tax and metropolitan region improvement tax
are separately charged or assessed in respect of the Premises, the amount
levied, assessed or charged in respect of the Premises; or
	 
	 	(2)	 	if land tax and metropolitan region improvement tax
are not separately charged or assessed in respect of the Premises, an
amount which bears the same ratio to the land tax and metropolitan region
improvement tax as the land area of the Premises bears to the total land
area of the Land; and

	 	(b)	 	in respect of local authority and water authority charges;

	 	(1)	 	if local authority and water authority charges are
separately charged or assessed in respect of the Premises, the amount
levied, assessed or charged in respect of the Premises; or
	 
	 	(2)	 	if local authority and water authority charges are
not separately charged or assessed in respect of the Premises, an amount
which bears the same ratio to the local authority and water authority
charges as the Building area of the Premises bears to the total Building
area of the Land; and

	 	(c)	 	in respect of Variable Outgoings, an amount which bears the same
ratio to the Variable Outgoings as the Building area of the Premises bears to the
total Building area of the Land;

	 	 	 	Lessee’s Rights means the right to use:

	 	(a)	 	the Lessor’s Fixtures from time to time in the Premises;
	 
	 	(b)	 	the Facilities in the Premises; and

page 2

 

Lease

	 	(c)	 	the Services supplied to the Premises;
	 
	 	 	 	exclusively; and:
	 
	 	(d)	 	the Common Areas;
	 
	 	(e)	 	the Facilities in the Common Areas; and
	 
	 	(f)	 	the Services supplied to:

	 	(1)	 	the Common Areas; and
	 
	 	(2)	 	the Facilities in the Common Areas;

	 	 	 	in common with other persons having a similar right;
and:

	 	(g)	 	all rights in favour of the Lessee contained or implied in this
Document; and
	 
	 	(h)	 	the right to install cables in the Building subject to the approval
of the Lessor;

	 	 	 	Lessor’s Covenants means the covenants, agreements and obligations contained or
implied in this Document or imposed by law to be observed and performed by the Lessor;
	 
	 	 	 	Lessor’s Fixtures includes:

	 	(a)	 	floor or window coverings;
	 
	 	(b)	 	partitioning;
	 
	 	(c)	 	light fittings; and
	 
	 	(d)	 	any other fixture or fitting;
	 
	 	 	 	installed by the Lessor in the Premises and any replacement of any item
mentioned in this definition;

	 	 	 	Lessor’s Rights means:

	 	(a)	 	the right to install in the Premises cables, pipes and wires for
the supply of a Service, Facility, telephone or electronic communication for the
Building, the Land or any Occupier; and
	 
	 	(b)	 	all rights in favour of the Lessor contained or implied in this
Document or granted by law;

	 	 	 	Lettable Parts means those parts of the Building or the Land designated by the Lessor
from time to time as being intended for letting;
	 
	 	 	 	Losses includes claims, demands, losses, damages, Costs and Expenses;
	 
	 	 	 	Managing Agent means the person specified in Item 9 of the Schedule or any person,
firm or corporation as the Lessor by notice to the Lessee nominates;
	 
	 	 	 	Money Payable means the Rent and any other money payable by the Lessee under this
Document;
	 
	 	 	 	Occupier means a lessee, licensee or other person having the right to occupy any part
of the Building;
	 
	 	 	 	Painting and Decorating Intervals means the intervals specified in Item 11 of the
Schedule;

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Lease

	 	 	 	Party means the Lessor or the Lessee according to the context;
	 
	 	 	 	Permitted Person means:

	 	(a)	 	an agent, employee, licensee, or invitee of the Lessee; and
	 
	 	(b)	 	any person visiting the Building with the express or implied
consent of any person mentioned in paragraph (a);

	 	 	 	Permitted Use means the use specified in Item 13 of the Schedule;
	 
	 	 	 	Plant and Equipment means plant and equipment for or in connection with any:

	 	(a)	 	Service; or
	 
	 	(b)	 	heating, cooling, lighting, power or plumbing;
	 
	 	 	 	serving the Land or the Building;

	 	 	 	Preliminary Period means the period from midnight on the day before the Date of
Commencement until midnight on the last day of the first Lease Year;
	 
	 	 	 	Premises means the Lettable Parts as shown on the plan annexed to this Document
including:

	 	(a)	 	the internal finished surface of the permanent walls;
	 
	 	(b)	 	where exterior windows are double glazed, the interior glazing and
the area between the interior and exterior glazing;
	 
	 	(c)	 	the internal finished surface of interior walls or partitions
except in the case of inter-tenancy walls or partitions where the facing part of
those walls to the centre line is included;
	 
	 	(d)	 	the surface of the floor slabs, whether or not there is a raised
floor; and
	 
	 	(e)	 	if there is a suspended ceiling, the upper surface of the suspended
ceiling, or if there is no suspended ceiling, the lower surface of the ceiling
slab or roof;
	 
	 	 	 	but excluding:
	 
	 	(f)	 	if the exterior windows are double glazed, the exterior glazing;
and
	 
	 	(g)	 	if the exterior windows are not double glazed, the exterior
windows;

	 	 	 	Public Liability Insurance Amount means the amount specified in Item 12 of the
Schedule;
	 
	 	 	 	Rates and Taxes means:

	 	(a)	 	council rates and charges including, but not limited to, rubbish
removal rates and charges;
	 
	 	(b)	 	land tax and metropolitan region improvement tax on a single
holding basis;
	 
	 	(c)	 	water, drainage and sewerage rates including, but not limited to,
meter rents, charges for the disposal of stormwater, and excess water charges;
and
	 
	 	(d)	 	all other similar rates, taxes, charges, assessments and
impositions; levied, charged, assessed or imposed in respect of any part of the
Land or the Building or the ownership or occupation of any part of the Land or
the Building but excluding any tax imposed by the Income Tax Act 1936 and any
other

page 4

 

Lease

	 	 	 	statute from time to time in force imposing a tax on income or capital
increase;

	 	 	 	Rent means the rent specified in Item 6 of the Schedule as varied from time to time
under this Document;
	 
	 	 	 	Schedule means the schedule to this Document;
	 
	 	 	 	Service means electricity, gas, oil, fuel, water or other like service;
	 
	 	 	 	Term means the term specified in Item 3 of the Schedule and any Further Term;
	 
	 	 	 	Termination means the expiry or earlier determination of the Term or any period of
Holding Over;
	 
	 	 	 	Unfit for Occupation means that the Premises or the Building, or any part of the
Premises or the Building are so destroyed or damaged as to:

	 	(a)	 	render the Premises substantially unfit for occupation and use; or
	 
	 	(b)	 	interfere substantially with the Lessee’s Rights; and

	 	 	 	Variable Outgoings means all outgoings, costs and expenses of the Lessor assessed,
charged, payable or incurred in respect of the Land or the Building or in the
maintenance, repair, renovation, replacement, decoration, refurbishment, management,
administration, control, supervision and security of the Land or the Building
including, but not limited to, the cost of:

	 	(a)	 	insuring the Building or any part of the Building and any equipment
or appliance in or on the Land or the Building against:

	 	(1)	 	fire, explosion, earthquake, aircraft, riot, civil
commotion, flood, lightning, storm, tempest, act of God, fusion, smoke,
rainwater, water leakage, impact by vehicles, machinery breakdown and
malicious acts or omissions;
	 
	 	(2)	 	loss of rent for a period of TWELVE (12) months;
	 
	 	(3)	 	demolition and removal of debris;
	 
	 	(4)	 	architects’ and other consultants’ fees;
	 
	 	(5)	 	claims under workers’ compensation legislation and
statutory liability by employees of the Lessor working in or about the
Building; and
	 
	 	(6)	 	owner’s third party liability; and
	 
	 	(7)	 	all other risks which the Lessor insures against;

	 	(b)	 	maintaining, repairing, renovating, replacing, decorating and
refurbishing the Building and the Land but excluding:

	 	(1)	 	work of a structural or capital nature; or
	 
	 	(2)	 	work which is or would be the responsibility of any
Occupier under the terms of this Document;

	 	(c)	 	providing, operating, maintaining, repairing, renovating,
replacing, decorating, refurbishing, managing, administering, controlling,
supervising and securing:

page 5

 

Lease

	 	(1)	 	Services to the Common Areas and to the Facilities
within the Common Areas;
	 
	 	(2)	 	any consumable item or service provided by the Lessor
to or for the Common Areas or for the benefit of the Occupiers and not
separately charged to any Occupier;
	 
	 	(3)	 	services to the Building including, but not limited
to, lighting, fire fighting and prevention systems, music and public
address systems and emergency generators; and
	 
	 	(4)	 	security systems for the Land or the Building;

	 	(d)	 	cleaning the Common Areas other than the Lettable Areas;
	 
	 	(e)	 	compacting, storing and removing rubbish;
	 
	 	(f)	 	landscaping and maintaining any part of the Land and the Building;
	 
	 	(g)	 	providing, maintaining, repairing, renovating, replacing,
decorating, refurbishing, managing, administer, controlling, supervising and
securing any service or thing which the Lessor considers necessary or expedient
or an improvement to the amenities of the Building or the Land; but excluding:

	 	(1)	 	work of a structural or capital nature; or
	 
	 	(2)	 	work which is or would be the responsibility of any
Occupier under the terms of this Document;

	 	(h)	 	employing the Managing Agent and employing and providing facilities
for staff for the matters mentioned in this definition;
	 
	 	(j)	 	legal fees and disbursements in relation to the matters mentioned
in this definition;
	 
	 	(j)	 	providing motor vehicles, plant, equipment, tools and materials for
the matters mentioned in this definition; and
	 
	 	(k)	 	taxes and statutory charges associated with the matters mentioned
in this definition including, but not limited to, payroll tax, financial
institutions duty, bank debits tax, tax on goods or services and taxes of a type
not charged at the Date of Commencement.
	 
	 	(l)	 	Rates and Taxes.

	2	 	Grant of Lease

	 	 	 	The Lessor:

	 	(a)	 	LEASES the Premises; and
	 
	 	(b)	 	GRANTS the Lessee’s Rights;

	 	 	 	to the Lessee subject to all Encumbrances for the term specified in Item 3 of the
Schedule and subject to:

	 	(c)	 	the payment of the Money Payable; and

page 6

 

Lease

	 	(d)	 	the observance and performance of the Lessee’s Covenants;

	 	 	 	but RESERVING to the Lessor the Lessor’s Rights.

	3	 	Quiet enjoyment

	 	 	 	Except as provided in this Lease and subject to the observance and performance of the
Lessee’s Covenants, the Lessee may quietly hold the Premises and enjoy the Lessee’s
Rights during the Term without any interruption or disturbance from the Lessor or any
person lawfully claiming through or under the Lessor.

	4	 	Easements

	 	4.1	 	Purposes for which Lessor may act
	 
	 	 	 	The Lessor may for the purpose of providing:

	 	(a)	 	a public or private entrance to or exit from;
	 
	 	(b)	 	a support for a structure erected on;
	 
	 	(c)	 	the supply of a Service, a Facility, or telephone or electronic
communication to; or
	 
	 	(d)	 	any other right, privilege or facility for;

	 	 	 	the Building, the Land or any other land, do any of the things specified in clause
4.2.
	 
	 	4.2	 	Rights of Lessor in respect of easements
	 
	 	 	 	The Lessor may for the purposes detailed in clause 4.1 and subject to clause 4.3;

	 	(a)	 	grant rights of support to or enter into any arrangement or
agreement with:

	 	(1)	 	any owner, lessee, tenant, occupier, or other person,
interested in land adjacent to or near to the Building; or
	 
	 	(2)	 	any public authority;

	 	(b)	 	dedicate or transfer any part of the Land; or
	 
	 	(c)	 	grant or create any easement or privilege in favour of any person
or public authority over or affecting the Premises, the Land or the Building.

	 	4.3	 	Easements may not substantially derogate from Lessee’s Rights
	 
	 	 	 	The Lessor may not without the Lessee’s consent, which consent may not be unreasonably
withheld, dedicate, transfer, grant or create any easement, right or privilege which
substantially and permanently derogates from the Lessee’s Rights.

	5	 	Rent

	 	 	 	The Lessee must pay to the Lessor the Rent without deduction or set off including but
not limited to equitable setoff at the times and in the manner specified in Item 6 of
the

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Lease

	 	 	 	Schedule during the Term except that the first and last payments will be apportioned
on a daily basis if they are in respect of periods of less than a month.

	6	 	Rent review

	 	6.1	 	Definitions
	 
	 	 	 	In this clause:
	 
	 	 	 	Consumer Price Index means the index published by the Australian Bureau of Statistics
as the Consumer Price Index for Perth for all groups or if that index is suspended or
discontinued, the index substituted for it by the Australian Statistician;
	 
	 	 	 	Current Market Rental Value means the best current open market annual rental value
that can be reasonable obtained for the Premises:-

	 	(a)	 	on the basis that the Premises are available for leasing between a
willing lessor and a willing lessee;
	 
	 	(b)	 	on the terms and conditions contained in this Lease (except as to
rental payable);
	 
	 	(c)	 	on the basis that the Lessee’s Lease covenants and obligations have
been fully performed at the Rent Review Date (herein defined);
	 
	 	(d)	 	without taking into account the Lessee’s trade fixtures and
fittings any improvements fixtures and fittings erected or installed at the
Lessee’s expense;
	 
	 	(e)	 	having regard to the current market rental for the average of three
comparable premises in the area in which the Premises are located; and
	 
	 	(f)	 	disregarding the value of any incentive offered to the Lessee to
enter into this Lease.

	 	 	 	Rent Notice means a notice given by the Lessor to the Lessee under clause 6.2(d)(1).
	 
	 	 	 	Rent Review Dates means the dates specified in Item 7 of the Schedule.
	 
	 	 	 	President means the President or the person acting or deputising for the President for
the time being of the Australian Property Institute (Inc) (Western Australian
Division); and
	 
	 	 	 	Valuer means a valuer who:

	 	(a)	 	is licensed and being a member of the Australian Institute for
Valuer and Land Administrators;
	 
	 	(b)	 	is a fellow or associate of the Australian Property Institute (Inc)
(WA Division) of not less than FIVE (5) years standing; and
	 
	 	(c)	 	has had not less than FIVE (5) years practical experience in
Western Australia in the valuation of properties of the same general
classification as the Premises.

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Lease

	 	6.2	 	Method of review the rent

	 	(a)	 	On the dates specified in Item 7(a) of the Schedule the Rent shall
be reviewed to Consumer Price Index (CPI) Perth or THREE PERCENT (3%) whichever
is greater.
	 
	 	(b)	 	On the dates specified in Item 7(b) of the Schedule the Rent shall
be reviewed to the Current Market Rental Value of the Premises.
	 
	 	(c)	 	In no event shall the Current Market Rental Value be less than a
CPI review or THREE PERCENT (3%) whichever is greater of the Rent payable
immediately prior to the Rent Review Date.
	 
	 	(d)	 	In reviewing the rent to the Current Market Rental Value the
following shall apply:

	 	(1)	 	Not less than SIX (6) months prior to the Rent Review
Date the Lessor shall give to the Lessee notice (Rent Notice) in writing
of the annual Rent proposed by the Lessor to become payable from the Rent
Review Date (Lessor’s Proposed Rent).
	 
	 	(2)	 	Within TWENTY ONE (21) days of service of that notice
on the Lessee if the Lessee is not agreeable, the Lessee shall be entitled
to give to the Lessor notice in writing disputing the amount of the
Lessor’s Proposed Rent and stating the amount which the Lessee considers
to be the Rent that should be payable from the Rent Review Date (Lessee’s
Proposed Rent).
	 
	 	(3)	 	If the Lessee does not give the notice referred to in
paragraph (2) above within the time therein specified the Lessee shall be
deemed to have accepted that the Lessor’s Proposed Rent shall be the Rent
payable by the Lessee to the Lessor on and from the Rent Review Date.
	 
	 	(4)	 	If the Lessee gives notice referred to in paragraph
(2) above within the time therein specified the Lessor may accept the
Lessee’s Proposed Rent as the rent payable by the Lessee to the Lessor on
and from the Rent Review Date but if not so accepted or otherwise agreed
prior to the Rent Review Date then the annual Rent payable from the Rent
Review Date shall be determined by a Valuer appointed by the President for
the time being of the Australian Property Institute (Inc) Western
Australian Division and the Valuer shall be deemed to be acting as an
expert whose decision shall be final and binding on both the Lessor and
the Lessee. The cost of the Valuer’s determination shall be borne equally
by the Lessee and the Lessor.
	 
	 	(5)	 	Until the annual Rent from the Rent Review Date is
agreed or determined the Lessee shall pay to the Lessor a rental
equivalent to the Rent immediately prior to the Rent Review Date. Any
further sum which shall be payable by the Lessee from the Rent Review Date
as a result of an agreement or determination as the case may be shall be
paid in full to the Lessor immediately such sum is known.

	7	 	Not to cause rent reduction

	 	 	 	The Lessee must not by any act or omission:

	 	(a)	 	cause, directly or indirectly the Rent to be reduced; or

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Lease

	 	(b)	 	impose on the Lessor any liability of the Lessee under this
Document except:

	 	(1)	 	if obliged to do so by any statute from time to time
in force; or
	 
	 	(2)	 	with the consent of the Lessor.

	8	 	Goods and services tax

	 	8.1	 	Definitions
	 
	 	 	 	Unless the contrary intention appears, in this clause:
	 
	 	 	 	GST means a tax levied on the value of a good or service or property supplied,
including but not limited to the value represented by the Rent and the amount of
Variable Outgoings, Rates & Taxes or other Money Payable to the Lessor for goods or
services or property.
	 
	 	 	 	Supply means a good or service or property supplied under this Document, including but
not limited to the Premises, Utilities and other goods or services or property the
cost of which comprises part of the Variable Outgoings or Rates and Taxes.
	 
	 	8.2	 	Lessee must pay GST
	 
	 	 	 	The Lessee must pay to the Lessor the amount of any GST the Lessor pays or is liable
to pay on a Supply.
	 
	 	8.3	 	Lessee must pay GST at same time
	 
	 	 	 	Subject to receipt of a tax invoice, the Lessee must pay to the Lessor the amount of
the GST that the Lessee is liable to pay:

	 	(a)	 	at the same time; and
	 
	 	(b)	 	in the same manner

	 	 	 	as the Lessee is obliged to pay for that Supply, including in relation to Rent,
Variable Outgoings and Rates and Taxes, at the time the Lessee is obliged to pay those
amounts.
	 
	 	8.4	 	Prices do not include GST
	 
	 	 	 	The price for each Supply, including Rent, fixed or determined under this Document
does not include GST on that Supply and the Lessee must pay the amount of GST in
addition to the price for that Supply fixed or determined under this Document.
	 
	 	8.5	 	Apportionment of GST
	 
	 	 	 	Where a Supply is not separately supplied to the Lessee, the liability of the Lessee
for any amount for GST in relation to that Supply is determined on the same basis as
the Lessee’s Proportion of Variable Outgoings is determined.
	 
	 	8.6	 	Statement of GST paid is conclusive
	 
	 	 	 	A written statement given to the Lessee by the Lessor of the amount of GST that the
Lessor pays or is liable to pay is conclusive as between the Parties except in the
case of an obvious error.

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Lease

	9	 	Variable Outgoings

	 	9.1	 	Estimate of Lessee’s Proportion of Variable Outgoings
	 
	 	 	 	In respect of each Lease Year, the Lessor may estimate the Variable Outgoings and
advise the Lessee of the amount estimated. In respect of the first Lease Year the
Lessor’s estimate is $74,400 (the “Base Amount”).
	 
	 	9.2	 	Issue of statement of Variable Outgoings
	 
	 	 	 	After the expiry of each Lease Year the Lessor must issue to the Lessee a statement
giving reasonable details of the Variable Outgoings and the calculation of the
Lessee’s Proportion of Variable Outgoings.
	 
	 	9.3	 	Issue of statement of Rates and Taxes
	 
	 	 	 	If the Premises are not separately assessed in respect of Rates and Taxes, the Lessor
must issue to the Lessee a statement giving reasonable details of the Rates and Taxes
and the calculation of the Lessee’s Proportion of Rates and Taxes.
	 
	 	9.4	 	Apportionment for periods less than TWELVE (12) months
	 
	 	 	 	The Lessee’s Proportion of Rates and Taxes and the Lessee’s Proportion of Variable
Outgoings for the Preliminary Period and the Final Period will be apportioned on a
daily basis in respect of periods of less than TWELVE (12) months.
	 
	 	9.5	 	Changes to Variable Outgoings
	 
	 	 	 	Notwithstanding any other term of this agreement, the Lessor shall not, in the second
and subsequent years of this Lease increase the Variable Outgoings above the Base
Amount (i.e. the original $74,400) unless the Lessor has experienced an increase in
any of the cost inputs that comprised the Base Amount and then any such increase shall
be limited to the amount by which that individual cost increased.
	 
	 	9.6	 	Payment by Lessee
	 
	 	 	 	The Lessee must pay to the Lessor:

	 	(a)	 	the Lessee’s Proportion of Variable Outgoings within TWENTY (20)
business days of service by the Lessor on the Lessee of each statement of
Variable Outgoings;
	 
	 	(b)	 	on account of the Lessee’s Proportion of Variable Outgoings, the
amount estimated by the Lessor in respect of each Lease Year, by equal monthly
payments on the first day of each month;
	 
	 	(c)	 	on demand, the Lessee’s Proportion of Rates and Taxes; and
	 
	 	(d)	 	on demand, the Lessee’s Proportion of Rates and Taxes estimated for
the Final Period.

	 	9.7	 	Lessor to pay Rates and Taxes
	 
	 	 	 	The Lessor must pay all Rates and Taxes promptly.

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	 	9.8	 	Lessor to refund overpayment
	 
	 	 	 	If in any Lease Year the amount paid by the Lessee under clause 9.6 above exceeds the
Lessee’s Proportion of Variable Outgoings, the Lessor must credit to the Lessee the
overpayment except at the end of the Final Period when the Lessor must pay the
overpayment to the Lessee within TEN (10) Business Days of service by the Lessor on
the Lessee of the statement of Variable Outgoings disclosing the overpayment.
	 
	 	9.9	 	Lessor may recover taxes
	 
	 	 	 	If the Lessee’s Proportion of Variable Outgoings includes any tax on goods or
services, the Lessee must pay that tax.

	10	 	Outgoings separately assessed

	 	 	 	The Lessee must pay:

	 	(a)	 	to the Lessor; or
	 
	 	(b)	 	if the demand is made to the Lessee by any statutory authority,
then to that authority;

	 	 	 	on demand all outgoings separately assessed or charged in respect of the Premises
including, but not limited to:

	 	(c)	 	electricity, gas and other power and light charges and expenses
including, but not limited to:

	 	(1)	 	charges and assessments for use under assessments or
meter readings;
	 
	 	(2)	 	meter rents;
	 
	 	(3)	 	the cost of installation of any meter, wiring or
other apparatus necessitated by the use of electricity, gas and other
power, and
	 
	 	(4)	 	the cost of cleaning the Premises; and

	 	(d)	 	the operation, maintenance and repair of fire sprinklers,
monitoring and protection, air-conditioning, heating, cooling, ventilation plant,
and roller doors servicing the Building.

	11	 	Costs and expenses

	 	11.1	 	Definition
	 
	 	 	 	In this clause:

Legal Fees means reasonable amounts which are payable or have been paid
by the Lessor to the Lessor’s solicitor.

	 	11.2	 	Payment of costs

	 	(a)	 	The Lessee must pay to the Lessor all the costs, outgoings, fees,
Legal Fees and disbursements, and payments, which the Lessor pays or is liable to
pay in connection with or incidental to:

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	 	(1)	 	the stamping, and any necessary registration, of this
Document;
	 
	 	(2)	 	the Money Payable;
	 
	 	(3)	 	any breach of the Lessee’s Covenants;
	 
	 	(4)	 	the exercise or purported or attempted exercise of
the Lessor’s Rights;
	 
	 	(5)	 	any work done at the request of the Lessee; and
	 
	 	(6)	 	obtaining or attempting to obtain payment of the
Money payable;
	 
	 	(7)	 	any action, suit or proceeding arising out of,
concerned with, or incidental to:

	 	(A)	 	any of the matters referred to in
subparagraphs (1) to (6); or
	 
	 	(B)	 	any other matter connected with,
incidental to or arising out of this Document;

	 	 	 	unless costs are awarded to the Lessee against the Lessor in that
action, suit or proceeding;

	 	 	 	if they are of a reasonable amount and have been reasonably incurred;
	 
	 	(b)	 	the Lessee must pay, or if demand is made by the Lessor, must pay
to the Lessor:

	 	(1)	 	all filing and registration fees in connection with
this Document; and
	 
	 	(2)	 	all duty, fines and penalties payable under the Stamp
Act 1921, if not caused by any act or omission of the Lessor, financial
institutions duty, debits tax, and other statutory duties or taxes on or
in respect of:

	 	(A)	 	this Document;

	12	 	Interest on overdue money

	 	 	 	Without affecting the rights, powers and remedies of the Lessor under this Document,
the Lessee must pay to the Lessor on demand Interest on any Money Payable which is
unpaid for SEVEN (7) days computed from the due date for payment until payment.

	13	 	Lessor to maintain building

	 	 	 	Subject to the Lessee performing and observing the Lessee’s Covenants, the Lessor must
maintain:

	 	(a)	 	the structure of the Building; and
	 
	 	(b)	 	the Common Areas

	 	(1)	 	to a standard reasonably commensurate with the
standard of the Building as at the commencement of this lease (fair wear
and tear excepted);
	 
	 	(2)	 	to a standard reasonably commensurate with equivalent
buildings (being buildings that would be relevant for the purposes of
determining the Current Market Rent pursuant to clause 6.2); and

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	 	(3)	 	in a safe condition.

	14	 	Lessee to maintain premises

	 	14.1	 	General

	 	(a)	 	The Lessee must maintain the Premises in good condition except in
respect of:

	 	(1)	 	fair wear and tear;
	 
	 	(2)	 	structural damage not caused by an act or omission of
the Lessee or a Permitted Person; and
	 
	 	(3)	 	damage caused by an event which is the subject of an
Insured Risk, but if payment of the insurance money under the Lessor’s
insurance policy in respect of that damage is refused or reduced by reason
of an act or default of the Lessee, the Lessee must in respect of that
damage maintain the Premises in good condition to the extent that the
insurance money is refused or reduced; but

	 	(b)	 	the Lessee’s obligation under this clause is diminished to the
extent that payment of insurance money under the Lessor’s insurance policy in
respect of that obligation is:

	 	(1)	 	received by the Lessor; or
	 
	 	(2)	 	refused or reduced by reason of an act or default of
the Lessor; and

	 	(c)	 	the Lessee must replace all broken or damaged glass in the doors,
walls or windows of or to the Premises irrespective of the cause of breakage or
damage.

	 	14.2	 	Floor covering
	 
	 	 	 	The Lessee must:

	 	(a)	 	maintain the floor covering in the Premises in good and clean
condition;
	 
	 	(b)	 	make good all damage to the floor covering, fair wear and tear
excepted;
	 
	 	(c)	 	replace any area of floor covering in the Premises which is unduly
worn having regard to the rest of the floor covering in the Premises;
	 
	 	(d)	 	protect the floor covering from excessive wear by the use of
protective devices approved by the Lessor from time to time; and
	 
	 	(e)	 	on Termination, have the floor covering in the Premises
professionally steam or dry cleaned.

	 	14.3	 	Repair promptly
	 
	 	 	 	The Lessee must promptly:

	 	(a)	 	repair to the satisfaction of the Lessor any damage to the Premises
for which the Lessee is liable; and

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	 	(b)	 	replace all electric globes and fluorescent tubes in the Premises,
which fail for any reason.

	 	14.4	 	Paint and decorate
	 
	 	 	 	At the Painting and Decorating Intervals the Lessee must paint with TWO (2) coats at
least those parts of the Premises usually painted (i.e. office internal and external
walls and external dado panels) in a proper manner, using suitable, good quality
materials of a colour and quality first approved by the Lessor in writing.
	 
	 	14.5	 	Clean and free from rubbish
	 
	 	 	 	The Lessee must keep the Premises clean and free from rubbish.
	 
	 	14.6	 	Pest control
	 
	 	 	 	The Lessee must take reasonable precautions to keep the Premises free of animals,
birds and insects, and if required by the Lessor, at the cost of the Lessee employ
from time to time pest exterminators approved by the Lessor.

	15	 	Lessor’s fixtures and the facilities in the premises

	 	15.1	 	Maintain

	 	(a)	 	The Lessee must maintain the Lessor’s Fixtures and the Facilities
in the Premises in good condition and must replace any damaged items except in
respect of:

	 	(1)	 	fair wear and tear; and
	 
	 	(2)	 	damage caused by an event which is the subject of an
Insured Risk, but if payment of the insurance money under the Lessor’s
insurance policy in respect of that damage is refused or reduced by reason
of an act or default of the Lessee, the Lessee must in respect of that
damage maintain the Premises in good condition to the extent that the
insurance money is refused or reduced; but

	 	(b)	 	the Lessee’s obligation under this clause is diminished to the
extent that payment of insurance money under the Lessor’s insurance policy in
respect of the obligation is:

	 	(1)	 	received by the Lessor; or
	 
	 	(2)	 	refused or reduced by reason of an act or default of
the Lessor.

	 	15.2	 	Replacements
	 
	 	 	 	If the Lessee is liable to replace any of the Lessor’s Fixtures or the Facilities in
the Premises, the Lessee must:

	 	(a)	 	replace that Lessor’s Fixture or Facility with an item of similar
quality, colour, and design; and
	 
	 	(b)	 	carry out the replacement to the reasonable satisfaction of the
Lessor.

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Lease

	 	15.3	 	Facilities
	 
	 	 	 	The Lessee must keep the Facilities within the Premises unobstructed.

	16	 	Alterations

	 	16.1	 	Restriction on alterations
	 
	 	 	 	The Lessee must not:

	 	(a)	 	make any alteration or addition to or demolish any part of the
Premises;
	 
	 	(b)	 	remove, alter or add to any of the Lessor’s Fixtures, the Plant and
Equipment or any Facility in the Premises;
	 
	 	(c)	 	install any fixture or partitioning in the Premises;
	 
	 	(d)	 	make any hole in the walls of the Premises;
	 
	 	(e)	 	drive nails or other objects into the walls or other parts of the
Building;
	 
	 	(f)	 	cut, alter, remove or replace any carpet in the Premises; or
	 
	 	(g)	 	install any curtain, blind or other window treatment in or outside
the Premises;

	 	 	 	without the prior consent of the Lessor and subject to:

	 	(h)	 	the requirements of any statute in force from time to time, the
insurer of any of the Insured Risks and the Insurance Council of Australia; and
	 
	 	(i)	 	any condition imposed by the Lessor.

	 	16.2	 	Consent to alterations
	 
	 	 	 	In giving consent to any alteration, the Lessor may impose any condition, including,
but not limited to, a condition that:

	 	(a)	 	the work be carried out:

	 	(1)	 	in accordance with drawings or specifications
approved by the Lessor; or
	 
	 	(2)	 	under the supervision of the Lessor’s architect or
other consultant;

	 	(b)	 	the Lessee pays the costs and fees of the Lessor in supervising or
inspecting the work; and
	 
	 	(c)	 	the Lessor requires the Lessee to carry out other work to or in the
Building as a consequence of the alteration, addition, demolition or installation
requested by the Lessee;

	 	 	 	but in regard to the installation, alteration or addition of partitioning within the
Premises, the consent of the Lessor may not be unreasonably withheld.
	 
	 	16.3	 	Other work necessitated by alteration
	 
	 	 	 	If any other work is:

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	 	(a)	 	required by the Lessor as a condition of giving consent as
mentioned in clause 16.1; or
	 
	 	(b)	 	necessary to comply with a statute for the time being in force or
the requirement of an insurer of the Insured Risks or the Insurance Council of
Australia;

	 	 	 	the Lessee must at the option of the Lessor either:

	 	(c)	 	carry out that other work; or
	 
	 	(d)	 	permit the Lessor to carry out that other work;

	 	 	 	at the cost of the Lessee in accordance with any requirement imposed by the Lessor in
respect of that other work.
	 
	 	16.4	 	Asbestos and other harmful substances
	 
	 	 	 	The Lessee must:

	 	(a)	 	not install in the Premises:

	 	(1)	 	asbestos; or
	 
	 	(2)	 	any other material having the potential to harm the
health or safety of persons in the Building; and

	 	(b)	 	at the Lessee’s cost remove from the Premises and make good any
damage caused by the removal of:

	 	(1)	 	any asbestos brought onto the Land by the Lessee; or
	 
	 	(2)	 	any other material having the potential to harm the
health or safety of persons in the Building brought onto the Land by the
Lessee.

	17	 	Use of the premises

	 	17.1	 	Purpose
	 
	 	 	 	The Lessee must not use any part of the Premises for any purpose other than the
Permitted Use.
	 
	 	17.2	 	No warranty as to use
	 
	 	 	 	The Lessor gives no warranty as to the use to which the Premises may be put.
	 
	 	17.3	 	Premises subject to restrictions
	 
	 	 	 	The Lessee accepts the Premises for the Term with full knowledge of and subject to any
existing prohibition or restriction on the use of the Premises.
	 
	 	17.4	 	Consent of authority needed
	 
	 	 	 	If the business carried on by the Lessee at the Premises is permissible only with
consent, license or authority under any statute, the Lessee must obtain that consent,
license or authority and comply with that statute.

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	18	 	Floor overloading

	 	 	 	The Lessee will not bring onto the Premises any heavy machinery or other plant or
equipment not necessary or proper for the Lessee’s use of or its conduct of the
business conducted from the Premises and in no event will any machinery, plant or
equipment be of a nature or size that will cause or be likely to cause any structural
damage to any part of the Premises.

	19	 	Chemicals and inflammable substances

	 	 	 	The Lessee must not, except for reasonable quantities for normal applications in
connection with the cleaning of the Premises or any equipment in the Premises, or the
operation of forklifts, use or store any chemical or inflammable substance within the
Building.

	20	 	Environmental covenant

	 	20.1	 	Definition
	 
	 	 	 	In this clause:
	 
	 	 	 	Authorisation includes:

	 	(a)	 	a consent, authorisation, registration, agreement, certificate,
permission, licence, approval, authority or exemption from, by or with a
Government Agency; or
	 
	 	(b)	 	in relation to anything which will be prohibited or restricted in
whole or part by law if a Government Agency intervenes or acts in any way within
a specified period after lodgement, filing, registration or notification, the
expiry of that period without that intervention or action;

	 	 	 	under an Environmental Law;
	 
	 	 	 	Contaminant means a noxious or hazardous substance which, having regard to the
quantity and location of the substance and other substances in conjunction with which
it is stored or used, is capable of causing material harm to the environment;
	 
	 	 	 	Environmental Law means a law relating to any aspect of the environment or health; and
	 
	 	 	 	Government Agency means a government or governmental, semi-governmental, or judicial
entity or authority.
	 
	 	20.2	 	Environment
	 
	 	 	 	The Lessee must:

	 	(a)	 	use the Premises in a manner, which complies with each
Environmental Law and each Authorisation;
	 
	 	(b)	 	ensure that each Authorisation, of any conduct or activity in
relation to the Premises is obtained before that conduct or activity and kept in
full force and effect;

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Lease

	 	(c)	 	not do or omit to do any act which might directly or indirectly
result in the revocation, suspension or modification of an Authorisation in
relation to the Premises or any conduct or activity in relation to the Premises;
	 
	 	(d)	 	give to the Lessor notice immediately on becoming aware of:

	 	(1)	 	the existence of a Contaminant affecting the
Premises; or
	 
	 	(2)	 	the filing of a complaint or the commencement of
proceedings against the Lessee in relation to an alleged failure to
observe or perform obligations under an Environmental Law or
Authorisation;

	 	(e)	 	provide to the Lessor on demand:

	 	(1)	 	a report on the effect of any Environmental Law or
Authorisation applicable to the Premises or any conduct or activity on the
Premises prepared by an expert nominated by the Lessor at the expense of
the Lessee; and
	 
	 	(2)	 	copies of all Authorisations relating to the
Premises;

	 	 	 	within a reasonable time after receipt by the Lessee of that request.

	21	 	Use of other parts of the Building

	 	21.1	 	Restrictions on use
	 
	 	 	 	The Lessee must not enter on or use the roof of the Building or any other part of the
Building outside the Premises except the Common Areas.
	 
	 	21.2	 	Common Areas
	 
	 	 	 	The Lessee must not do or omit any act or thing, which might cause or allow the Common
Areas:

	 	(a)	 	to deteriorate or become impaired except for fair wear and tear;
	 
	 	(b)	 	to be in a condition other than a good and sanitary condition; or
	 
	 	(c)	 	to be obstructed.

	22	 	Use and enjoyment affecting occupiers

	 	22.1	 	Offensive activities
	 
	 	 	 	The Lessee must not do or carry on in the Premises:

	 	(a)	 	any harmful, offensive or illegal act, matter or thing; or
	 
	 	(b)	 	any act or thing which causes nuisance, damage, or disturbance to
the Lessor or any Occupier.

	 	22.2	 	Aerials and amplified noise

	 	(a)	 	The Lessee must not:

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Lease

	 	(1)	 	construct or place outside the Premises any radio or
television aerial or antenna (other than any telecommunications equipment
which might reasonably be required by the Lessee in order to receive
wireless telecommunications services from a telecommunications provider);
or
	 
	 	(2)	 	use any sound producing equipment so as to be audible
from outside the Premises;

	 	 	 	without the prior consent of the Lessor or after that consent is withdrawn.
	 
	 	(b)	 	The Lessor may at any time withdraw a consent given under this
subclause if the Lessor reasonably so determines, having regard to the rights or
interests of the Lessor, the Occupiers and the owners or occupiers of nearby
properties in which case the Lessee must remove the equipment (other than any
telecommunications equipment which might reasonably be required by the Lessee in
order to receive wireless telecommunications services from a telecommunications
provider).

	 	22.3	 	Infectious diseases
	 
	 	 	 	If any notifiable infectious disease occurs in the Premises, the Lessee must:

	 	(a)	 	notify each proper public authority; and
	 
	 	(b)	 	comply with each requirement of each proper public authority.

	 	22.4	 	No smoking
	 
	 	 	 	The Lessee must not smoke tobacco or any other substance in any part of the Building.
	 
	 	22.5	 	Not to cause obstruction
	 
	 	 	 	The Lessee must not do anything, which may cause an obstruction in the Facilities in
any part of the Building.

	23	 	Miscellaneous restrictions on use

	 	23.1	 	Advertisements or notices
	 
	 	 	 	The Lessee must not display from or affix to the Premises or any other part of the
Building any advertisement or notice visible from outside the Premises without the
prior consent of the Lessor which the Lessor may not unreasonably withhold in the case
of a notice:

	 	(a)	 	stating the name and business of the Lessee;
	 
	 	(b)	 	affixed in a place immediately adjacent to the Premises.

	 	23.2	 	Rubbish
	 
	 	 	 	The Lessee must not:

	 	(a)	 	place any rubbish in any part of the Building or the Land except in
a place and receptacle designated by the Lessor for disposal of that type of
rubbish;

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	 	(b)	 	burn any rubbish in the Building or on the Land; or
	 
	 	(c)	 	fail to remove on a regular basis any rubbish of a kind not removed
by the local authority.

	24	 	Security of the building and the Premises

	 	24.1	 	Lock Premises
	 
	 	 	 	The Lessee must not leave the Premises unattended unless every door of the Premises
giving access to a Common Area or an adjoining part of the Building is securely
fastened and locked.
	 
	 	24.2	 	Outside doors of Building
	 
	 	 	 	The Lessee must not possess any key to any lock or security access device to an
outside door of the Building except as provided by the Lessor.

	25	 	Entry by Lessor

	 	 	 	The Lessee must permit entry to the Premises by the Lessor:

	 	25.1	 	General

	 	(a)	 	at all reasonable times on the Lessor giving to the Lessee
reasonable notice; or
	 
	 	(b)	 	on demand in the case of emergency; with or without:
	 
	 	(c)	 	workmen and others; and
	 
	 	(d)	 	plant, equipment and materials:

	 	 	 	for the purposes mentioned in this clause;

	 	25.2	 	Inspect state of repair
	 
	 	 	 	To inspect the state of repair of the Premises and to ensure compliance with the
Lessee’s Covenants;
	 
	 	25.3	 	Comply with authorities
	 
	 	 	 	To comply with any requirement, notification or order of an authority having
jurisdiction or authority over or in respect of the Premises for which the Lessor is
liable under this Document;
	 
	 	25.4	 	Maintenance, modifications or extensions
	 
	 	 	 	To carry out maintenance, repair, renovation, replacement, modifications,
installations or extensions to the Building, the Plant and Equipment, or any other
equipment, cables, pipes or wires within the Premises or the Building, on condition
that the Lessor uses its reasonable endeavours not to cause any undue inconvenience to
the Lessee;
	 
	 	25.5	 	Plant and Equipment
	 
	 	 	 	To maintain, service, install or remove any Plant and Equipment provided that the

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	 	 	 	Lessor uses its reasonable endeavours not to cause any undue inconvenience or
disruption to the Lessee;

	 	25.6	 	Interested persons
	 
	 	 	 	To view the Premises with:

	 	(a)	 	persons having or seeking an interest in the Building or any part
of the Building;
	 
	 	(b)	 	financiers;
	 
	 	(c)	 	insurers; and

	 	 	 	other similarly interested persons; or

	 	25.7	 	Affix notices
	 
	 	 	 	To affix re-letting notices to the Premises during the last SIX (6) months of the Term.

	26	 	Unauthorised purpose

	 	 	 	The Lessee must not use the Facility, item of Plant and Equipment or Lessor’s Fixture
for a purpose other than for which it was designed or for which it is designated by
the Lessor.

	27	 	Plant and equipment

	 	 	 	The Lessee must:

	 	(a)	 	comply with and observe the reasonable requirements of the Lessor
relating to the Plant and Equipment;
	 
	 	(b)	 	not do anything which might interfere with or impair the
efficient operation of the Plant and Equipment; and
	 
	 	(c)	 	when conditioned air is available, not obstruct that airflow
through the ducting of the Premises; nor use any other method of
air-conditioning, heating or cooling without the prior consent in writing of the
Lessor.

	28	 	Electrical circuits

	 	28.1	 	Not overload
	 
	 	 	 	The Lessee must not install any electrical equipment on the Premises, which might
overload the cables, switchboards, or sub-boards, through which electricity is
connected to the Premises without the prior consent of the Lessor and under any
condition imposed by the Lessor.
	 
	 	28.2	 	Consent to install equipment
	 
	 	 	 	If the Lessee wishes to install any electrical equipment on the Premises which might
overload the cables, switchboards or sub-boards through which electricity is
connected to the Premises and:

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Lease

	 	(a)	 	the Lessor grants its consent; and
	 
	 	(b)	 	the Lessor considers that any alteration is necessary to comply
with the requirements of the Lessor’s insurance underwriters or with any statute
in force from time to time;

	 	 	 	then:

	 	(c)	 	that alteration will be effected by the Lessor at the expense of
the Lessee;
	 
	 	(d)	 	the Lessee must pay the entire cost of the alteration to the Lessor
on demand by the Lessor; and
	 
	 	(e)	 	if required by the Lessor the Lessee must deposit with the Lessor
the estimated cost of the alteration before commencement of any work.

	29	 	Insurance

	 	29.1	 	Public liability insurance
	 
	 	 	 	The Lessee effect and maintain with an insurance company in respect of the Premises
adequate public liability insurance in an amount not less than the Public Liability
Insurance Amount in respect of any one claim.
	 
	 	29.2	 	Insurance of Lessee’s Fixtures
	 
	 	 	 	The Lessee must insure and keep insured to the full insurable value on a replacement
or reinstatement basis the Lessee’s Fixtures.
	 
	 	29.3	 	Workers’ compensation insurance
	 
	 	 	 	The Lessee must effect and maintain workers’ compensation insurance in respect of all
employees of the Lessee employed in, about or from the Premises.
	 
	 	29.4	 	Glass
	 
	 	 	 	The Lessee must effect and maintain with an insurance company a policy of insurance
against all risks in respect of the glass in the doors, walls or windows of or to the
Premises.
	 
	 	29.5	 	Supply details etc.
	 
	 	 	 	The Lessee must in respect of the insurance mentioned in this clause:

	 	(a)	 	supply to the Lessor details;
	 
	 	(b)	 	produce annually each certificates of currency issued by an
Insurance Company;
	 
	 	(c)	 	deliver promptly to the Lessor particulars of any alteration of the
terms and conditions of each policy.

	 	29.6	 	Not to invalidate insurance
	 
	 	 	 	The Lessee must:

	 	(a)	 	not do or omit to do any act or thing or bring or keep anything in
the Building:

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	 	(1)	 	which might render the insurance on the Building void
or voidable; or
	 
	 	(2)	 	which might cause the rate of premium to be
increased; and

	 	(b)	 	if the Lessor approves in writing any proposal of the Lessee to add
to or increase any risk, which is covered by insurance, pay all additional
premiums resulting from the additional or increased risk.

	30	 	Lessee’s indemnities

	 	30.1	 	Indemnities paramount
	 
	 	 	 	The obligation of the Lessee to indemnify the Lessor:

	 	(a)	 	under this Document; or
	 
	 	(b)	 	by law;

	 	 	 	is unaffected by the obligation of the Lessee to effect insurance and the obligation
of the Lessee to indemnify is paramount.

	 	30.2	 	Indemnity in respect of Lessor’s expenses
	 
	 	 	 	To the extent permitted by law, the Lessee must on demand pay to the Lessor an amount
equal to all money paid by the Lessor in respect of any liability of the Lessee under
this Document.
	 
	 	30.3	 	General indemnity
	 
	 	 	 	The Lessee INDEMNIFIES the Lessor against all Losses for which the Lessor becomes
liable in respect of loss or damage to property or death or injury of any nature or
kind and however or wherever sustained:

	 	(a)	 	caused or contributed to by the use or occupancy of the Premises
except to the extent caused or contributed to by the act or omission of the
Lessor;
	 
	 	(b)	 	resulting from an act or omission of the Lessee or the Lessee’s
Permitted Person; or
	 
	 	(c)	 	resulting from a notice, claim or demand to pay, do or perform any
act or thing to be paid, done or performed by the Lessee under this Document
except to the extent that the Lessor is obliged under the provisions of this
Document to pay for or contribute to that cost.

	31	 	Lessee’s obligations at risk and expense of Lessee

	 	 	 	Unless this Document otherwise provides, whenever the Lessee is obliged or required by
this Document to do or omit to do any act or thing, the doing or the omission of that
act or thing will be at the sole risk and expense of the Lessee.

	32	 	Limit of Lessor’s liability

	 	 	 	Each Lessor is only liable for breaches of the Lessor’s Covenants occurring while that
person is the registered proprietor of the Land.

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	33	 	Report to Lessor

	 	 	 	The Lessee must report promptly to the Lessor or the Managing Agent in writing and in
the case of emergency, verbally:
	 
	 	33.1	 	Damage to or defect in Premises
	 
	 	 	 	Any damage to or defect in the Premises, the Lessor’s Fixtures, the Plant and
Equipment or the Facilities in the Premises of which the Lessee is or ought to be
aware;
	 
	 	33.2	 	Broken glass
	 
	 	 	 	Any breakage of glass in an exterior or inter-tenancy window or door in the Building;
	 
	 	33.3	 	Malfunction of Plant and Equipment or Facility
	 
	 	 	 	Any malfunction of any Plant and Equipment or Facility either within the Premises or
used by the Lessee; and
	 
	 	33.4	 	Circumstance likely to cause damage or danger
	 
	 	 	 	Any circumstance likely to:

	 	(a)	 	be a danger; or
	 
	 	(b)	 	cause any damage or danger;

	 	 	 	to the Premises, the Building, or any person on or in the Premises, the Building or
the Land of which the Lessee is aware.

	34	 	Caveats

	 	34.1	 	Not lodge absolute caveat
	 
	 	 	 	The Lessee must not lodge an absolute caveat over the Land to protect the interest of
the Lessee under this Document.
	 
	 	34.2	 	Withdraw caveat on Termination
	 
	 	 	 	The Lessee must withdraw any caveat lodged by or on behalf of the Lessee over the Land
on or before Termination.

	35	 	Not impede exercise of Lessor’s rights

	 	 	 	The Lessee must not impede the exercise of the Lessor’s Rights.

	36	 	Compliance with statutes

	 	 	 	Notwithstanding anything to the contrary contained or implied in this Document, the
Lessee must comply promptly with all statutes from time to time in force relating to
the Premises or the use of the Premises except for any imposing an obligation to carry
out structural work which the Lessee is not required to carry out under this Document.

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Lease

	37	 	Default by Lessee

	 	37.1	 	Events of default
	 
	 	 	 	An Event of Default occurs if:

	 	(a)	 	any Rent or Variable Outgoings is unpaid for SEVEN (7) days after
becoming due whether or not demand for payment is made;
	 
	 	(b)	 	the Lessee is in breach of any of the Lessee’s Covenants other than
covenants to pay Rent or Variable Outgoings for FOURTEEN (14) days after notice
has been given to the Lessee;
	 
	 	(c)	 	the Lessee is a body corporate and:

	 	(1)	 	an application is made, a resolution is passed, or a
meeting is convened for the purpose of considering a resolution, for the
Lessee to be wound up unless the winding up is for the purpose of
reconstruction or amalgamation; or
	 
	 	(2)	 	a resolution is passed, or a meeting is convened for
the purpose of considering a resolution, for the appointment of an
administrator of the affairs of the Lessee;

	 	(d)	 	the Lessee admits in writing its inability to pay its debts;
	 
	 	(e)	 	 

	 	(1)	 	a compromise or arrangement is made between the
Lessee and its creditors; or
	 
	 	(2)	 	an application is made to a Court for an order
summoning a meeting of any class of creditors of the Lessee;

	 	(f)	 	a controller, as defined by the Corporations Law, is appointed in
respect of any property of the Lessee;
	 
	 	(g)	 	a mortgagee takes possession of any property of the Lessee;
	 
	 	(h)	 	any execution or similar process is made against the Premises or
the property of the Lessee;
	 
	 	(i)	 	an application is made or notice given or other procedure commenced
for the dissolution or cancellation of the registration of the Lessee under the
Corporations Law or any analogous process;
	 
	 	(j)	 	the Lessee, being a natural person, commits an act of bankruptcy;
or
	 
	 	(k)	 	the Lessee is in breach of a provision of an instrument other than
this Document giving the Lessee a right to occupy any part of the Land or the
Building.

	 	37.2	 	Lessor may retake possession
	 
	 	 	 	After an Event of Default has occurred and without any notice or demand, the Lessor
may at any time enter the Premises, and on re-entry the Term will immediately
determine but without affecting any of the Lessor’s Rights.

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Lease

	 	37.3	 	Acceptance of Money Payable not to prejudice Lessor’s Rights
	 
	 	 	 	Demand by the Lessor for, or acceptance of, Money Payable after an Event of Default
has occurred will not:

	 	(a)	 	affect the exercise by the Lessor of the Lessor’s Rights; or
	 
	 	(b)	 	operate as an election by the Lessor either to exercise or not to
exercise the Lessor’s Rights.

	 	37.4	 	Lessor may remedy Lessee’s default
	 
	 	 	 	If the Lessee:

	 	(a)	 	omits or neglects to pay any Money Payable; or
	 
	 	(b)	 	does or fails to do anything which constitutes a breach of the
Lessee’s Covenants;

	 	 	 	the Lessor may on each occasion without affecting any right, remedy or power arising
from that default:

	 	(c)	 	 

	 	(1)	 	pay that Money Payable;
	 
	 	(2)	 	do or cease the doing of that thing; or
	 
	 	(3)	 	both; as if it were the Lessee; and

	 	(d)	 	enter and remain on the Premises for that purpose;

	 	 	 	and the Lessee must pay to the Lessor on demand the Lessor’s cost of remedying each
breach or default.
	 
	 	37.5	 	Exercise of Lessor’s Rights
	 
	 	 	 	The Lessor may exercise the Lessor’s Rights:

	 	(1)	 	without notice being required other than as provided
in this Document; and
	 
	 	(2)	 	notwithstanding laches, neglect or previous waiver by
the Lessor in respect of any breach of the Lessee’s Covenants or the
exercise of the Lessor’s Rights.

	 	37.6	 	Essential terms
	 
	 	 	 	Each of the Lessee’s Covenants which are specified in:

	 	(a)	 	clauses 5 (‘RENT’), 8 (‘GST’) and 9.6 (‘VARIABLE OUTGOINGS’);
	 
	 	(b)	 	clauses 14.1 and 14.3 (‘LESSEE TO MAINTAIN PREMISES’ ‘General’ and
‘Repair promptly’);

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Lease

	 	(c)	 	clause 16 (‘ALTERATIONS’);
	 
	 	(d)	 	clause 17.1 (‘USE OF PREMISES’ ‘Purpose’);
	 
	 	(e)	 	clause 22.1 (‘USE AND ENJOYMENT AFFECTING OCCUPIERS’ ‘Offensive
Activities’);
	 
	 	(f)	 	clause 29 (‘INSURANCE’); and
	 
	 	(g)	 	clause 44 (‘ASSIGNING AND CHARGING’);

	 	 	 	are essential terms of this Document but this subclause does not mean or imply that
there are no other essential terms in this Document.
	 
	 	37.7	 	Damages for breach of essential terms
	 
	 	 	 	In addition to any other remedy or entitlement of the Lessor including the right to
terminate the estate granted by this Document:

	 	(a)	 	the Lessee must compensate the Lessor in respect of any breach of
an essential term;
	 
	 	(b)	 	the Lessor is entitled to recover damages from the Lessee in
respect of such breaches; and
	 
	 	(c)	 	the Lessee COVENANTS with the Lessor, which covenant will survive
the Termination or any deemed surrender at law of the estate granted by this
Document, that if the Term is determined:

	 	(1)	 	for breach of an essential term by the acceptance by
the Lessor of a repudiation of this Document by the Lessee; or
	 
	 	(2)	 	following the failure by the Lessee to comply with a
notice given to the Lessee to remedy any default;

	 	 	 	the Lessee must pay to the Lessor on demand the total of:

	 	(3)	 	 

	 	(A)	 	the Rent then payable under this
Document; and
	 
	 	(B)	 	the Lessor’s reasonable estimate of the
Variable Outgoings and Rates and Taxes which would have been
payable by the Lessee;

	 	 	 	for the unexpired balance of the Term if the Term had expired by effluxion of
time; and

	 	(4)	 	Losses incurred by the Lessor as a result of that
early determination including, but not limited to, all costs of reletting
or attempting to relet the Premises;

	 	 	 	less the rent and other money which the Lessor reasonably expects to obtain by
reletting the Premises between the date of Termination and the date on which
the Term would have expired by effluxion of time; but the Lessor:

	 	(5)	 	must take reasonable steps to mitigate its Losses and
endeavour to relet the Premises at a reasonable rent and on reasonable
terms; and
	 
	 	(6)	 	is not required to offer or accept rent or terms
which are the same or

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Lease

	 	 	 	similar to the rent or terms contained or implied in this Document.

	 	37.8	 	Certificate to be conclusive
	 
	 	 	 	A certificate given to the Lessee by the Lessor of the amount of the Rent, Variable
Outgoings and Rates and Taxes under 37.7(c) will be conclusive as between the Parties
except in the case of manifest error.

	 	37.9	 	Separate suits
	 
	 	 	 	The Lessor may without prejudice to any other remedy, sue the Lessee for any Money
Payable which may from time to time become due and owing by the Lessee to the Lessor
and in particular, the Lessor may:

	 	(a)	 	sue for any instalments of Rent, Variable Outgoings or Rates and
Taxes as and when those instalments become due; and
	 
	 	(b)	 	by a separate suit or suits sue for any further sum or sums which
may be found to be due or owing by the Lessee to the Lessor on the completion of
the calculations made at the end of each Lease Year; and

	 	 	 	neither the institution of any suit nor the entering of judgment in any suit will bar
the Lessor from bringing a separate or subsequent suit or suits for the balance of any
Money Payable.

	38	 	Destruction or damage to building or premises

	 	38.1	 	Major Rebuilding Required
	 
	 	 	 	If the Building or any part of the Building is so destroyed or damaged:

	 	(a)	 	as to require major rebuilding of the Building;
	 
	 	(b)	 	that the Premises are Unfit for Occupation;
	 
	 	(c)	 	as to inhibit access to the Premises by the Lessee or the customers
of the Lessee’s business in any substantial manner; or
	 
	 	(d)	 	as to cause significant disruption to the Lessee’s business;

	 	 	 	the Lessor:

	 	(e)	 	may within THREE (3) months of the destruction or damage terminate
the Term with immediate effect by notice to the Lessee;
	 
	 	(f)	 	will not be obliged to rebuild the Building or that part damaged;
and
	 
	 	(g)	 	unless the Lessor has Terminated the Term, must within THREE (3)
months of the destruction or damage, give notice to the Lessee advising the
Lessee:

	 	(1)	 	whether or not the Lessor intends to rebuild; and
	 
	 	(2)	 	if the Lessor intends to rebuild, how long that
rebuilding is estimated to take.

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Lease

	 	38.2	 	Abatement of Rent
	 
	 	 	 	If:

	 	(a)	 	the Premises are Unfit for Occupation; and
	 
	 	(b)	 	payment of insurance money in respect of the damage or destruction
causing the Premises to be Unfit for Occupation is not at any time refused or
withheld in whole or in part as a result of any act or omission of the Lessee;

	 	 	 	the Rent or a fair and just proportion according to the nature and extent of the
damage sustained will from the date of damage or destruction until the Premises are
reinstated and are no longer Unfit for Occupation abate and cease to be payable.

	 	38.3	 	Lessee may Terminate
	 
	 	 	 	If the Premises are Unfit for Occupation and:

	 	(a)	 	the Lessor has given the Lessee notice under clause 38.1 that it
does not intend to rebuild; or
	 
	 	(b)	 	the Premises remain Unfit for Occupation for a period of at least
THREE (3) months;

	 	 	 	the Lessee may give the Lessor notice to terminate the Term with immediate effect but
without affecting the rights of the Lessor in respect of any unpaid Money Payable or
any antecedent breach by the Lessee of any of the Lessee’s Covenants.

	39	 	Option to renew

	 	 	 	If:

	 	(a)	 	the Lessee at least NINE (9) months prior to the date for
commencement of a Further Term gives the Lessor notice to grant the Further Term;
and
	 
	 	(b)	 	there is no subsisting default by the Lessee at the date of service
of the notice and at the date for commencement of that Further Term in:

	 	(1)	 	the payment of the Money Payable; or
	 
	 	(2)	 	the performance or observance of the Lessee’s
Covenants;

	 	 	 	the Lessor must grant to the Lessee that Further Term at the Rent and on the terms
and conditions of this Document.

	40	 	Holding over

	 	 	 	If the Lessee remains in possession of the Premises after expiry of the Term with the
consent of the Lessor, the Lessee will be a monthly tenant of the Lessor at a rent
equivalent to:

	 	(a)	 	the Rent for the period immediately preceding expiry of the Term
increased by CPI or 3%, whichever is the greater; and
	 
	 	(b)	 	 

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Lease

	 	(1)	 	the Lessee’s Proportion of the Rates and Taxes; and
	 
	 	(2)	 	the Lessee’s Proportion of the Variable Outgoings
which would have been payable by the Lessee if a Further Term had been
granted at expiry of the Term;

	 	 	 	and otherwise on the same terms and conditions as this Document.

	41	 	Termination

	 	41.1	 	Restoration of the Premises on Termination
	 
	 	 	 	Prior to Termination, the Lessee at the Lessee’s cost must restore

	 	(a)	 	the Premises; and
	 
	 	(b)	 	 

	 	(1)	 	the Facilities
	 
	 	(2)	 	the Building; and
	 
	 	(3)	 	those parts of the Plant and Equipment;

	 	 	 	affected by anything done by the Lessee,

	 	 	 	to its original state having regard to the age of the Premises and the Lessee’s
Covenants.

	 	41.2	 	Yield up and surrender keys
	 
	 	 	 	On Termination the Lessee must:

	 	(a)	 	peaceably surrender and yield up to the Lessor the Premises in a
condition consistent with observance and performance of the Lessee’s Covenants;
	 
	 	(b)	 	surrender to the Lessor all keys and security access devices
providing access to or within the Building held by the Lessee whether or not
provided by the Lessor.

	 	41.3	 	Removal of Lessee’s Fixtures
	 
	 	 	 	Prior to Termination, the Lessee must remove from the Premises and the Building all
the Lessee’s Fixtures and property of the Lessee and promptly make good to the
reasonable satisfaction of the Lessor any damage caused by that removal.

	42	 	Lessee’s goods left in common areas

	 	 	 	After termination the Lessor may remove at the Lessee’s expense and risk any goods or
furniture of the Lessee left in the Common Areas and may sell them and use the money
from the sale to offset any unpaid Money Payable

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Lease

	43	 	Lessee’s fixtures not removed at termination

	 	43.1	 	Lessor may remove
	 
	 	 	 	On re-entry the Lessor will have the right to remove any property of the Lessee left
in or about the Premises.

	 	43.2	 	Lessee to indemnify
	 
	 	 	 	The Lessee INDEMNIFIES the Lessor against all damage caused by the removal of and the
cost of storing that property.
	 
	 	43.3	 	Property may be sold
	 
	 	 	 	All Lessee’s Fixtures and property belonging to the Lessee not removed at Termination
will, at the Lessor’s option become the absolute property of the Lessor and may be
disposed of by the Lessor as the Lessor thinks fit.

	44	 	Assigning and charging

	 	44.1	 	No assignment without consent
	 
	 	 	 	The Lessee must not assign, mortgage or charge the leasehold estate in the Premises
nor sublet, part with possession, or dispose, of the Premises or any part of the
Premises without the consent of the Lessor and except under this clause.

	 	44.2	 	Exclusion of the Property Law Act
	 
	 	 	 	Sections 80 and 82 of the Property Law Act 1969 are excluded.
	 
	 	44.3	 	Changes in beneficial ownership of shares
	 
	 	 	 	If the Lessee is a corporation the shares in which are not quoted on any stock
exchange in Australia, any change in the beneficial ownership, issue or cancellation
of shares in that corporation or any holding company of that corporation within the
meaning of the Corporations Law will be deemed to be an assignment of the leasehold
estate created by this Document.
	 
	 	44.4	 	Consent to assignment
	 
	 	 	 	The Lessor may not unreasonably withhold its consent to an assignment of the leasehold
estate created by this Document if:

	 	(a)	 	the proposed assignee is a respectable and responsible person of
good financial standing, the onus of satisfying the Lessor in respect of those
criteria being on the Lessee;
	 
	 	(b)	 	all Money Payable then due or payable has been paid and there is no
existing unremedied breach of the Lessee’s Covenants;
	 
	 	(c)	 	the Lessee procures the execution by the proposed assignee of a
deed of assignment to which the Lessor is a party prepared and completed by the
Lessor’s solicitors at the cost of the Lessee in all respects;
	 
	 	(d)	 	the assignment contains a covenant by the assignee with the Lessor
to pay all Money Payable and to perform and observe all the Lessee’s Covenants;
and

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Lease

	 	(e)	 	the Lessee pays to the Lessor the amounts specified in clause 44.8.

	 	44.5	 	Directors or shareholders must guarantee
	 
	 	 	 	If the assignee is a corporation the shares in which are not quoted on any stock
exchange in Australia, it will be a term of the Lessor’s consent to the deed of
assignment that the directors or the substantial shareholders at the option of the
Lessor of that corporation guarantee to the Lessor the observance and performance by
the assignee of the Lessee’s Covenants including payment of all Money Payable.

	 	44.6	 	Assignee substitutes for assignor
	 
	 	 	 	Subject to the proposed assignee being of similar financial standing as the assignor
Lessee, upon the completion of any assignment of this Lease to an assignee all
obligations of the assignor Lessee under this Lease shall cease.
	 
	 	44.7	 	Consent to charge
	 
	 	 	 	If the Lessor consents to a charge, that consent will be in a form approved by the
Lessor.
	 
	 	44.8	 	Costs in respect of assigning
	 
	 	 	 	If the Lessee wishes to assign the leasehold estate created by this Document the
Lessee must pay to the Lessor:

	 	(a)	 	all professional and other costs, charges and expenses on a full
indemnity basis incurred by the Lessor of and incidental to:

	 	(1)	 	the enquiries made by or on behalf of the Lessor as
to the respectability, responsibility and financial standing of each
proposed assignee; and
	 
	 	(2)	 	all other matters relating to the proposed
assignment;

	 	 	 	whether or not the assignment proceeds; and

	 	(b)	 	if required by the Lessor, a sum nominated by the Lessor on account
of the amounts mentioned in paragraph (a).

	 	44.9	 	Consent to sublet
	 
	 	 	 	The Lessor may not unreasonably withhold its consent to the subletting of the Premises
or any part of the Premises.

	45	 	Consents

	 	 	 	Unless this Document otherwise expressly provides, the Lessor may withhold consent to
any matter requiring consent without specifying any reason.

	46	 	Act by agents

	 	 	 	All acts and things which the Lessor is required or empowered to do under this
Document may be done by the Lessor or the solicitor, agent, contractor or employee of
the Lessor.

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	47	 	Lessee liable for permitted persons

	 	 	 	The Lessee is liable for the acts or omissions of Permitted Persons arising out of and
in connection with the rights and obligations created by this Document.

	48	 	Notice

	 	48.1	 	Definition
	 
	 	 	 	In this clause Notice includes each notice, demand, consent or authority given or
made to any person under this Document.

	 	48.2	 	Form and Service
	 
	 	 	 	A Notice to a person:

	 	(a)	 	must be in writing;
	 
	 	(b)	 	may be given or made by:

	 	(1)	 	delivering it to that person personally;
	 
	 	(2)	 	addressing it to that person and leaving it at or
posting it to:

	 	(A)	 	the address of that person appearing in
this Document;
	 
	 	(B)	 	that person’s usual or last known place
of residence;
	 
	 	(C)	 	if that person is in business as a
principal, that person’s usual or last known place of business;
	 
	 	(D)	 	if that person is a corporation, its
registered office or principal place of business; or
	 
	 	(E)	 	any other address nominated by that
person by notice to the person giving the Notice; or

	 	(3)	 	sending a facsimile copy of the Notice to the
facsimile copier number specified in Item 14 of the Schedule or any other
number nominated by that person by notice to the person giving the Notice;

	 	(c)	 	will be deemed to be given or made:

	 	(1)	 	if by personal delivery, when delivered;
	 
	 	(2)	 	if by leaving the Notice at an address specified in
paragraph (b), when left at that address unless the time of leaving the
Notice is:

	 	(A)	 	not on a Business Day; or
	 
	 	(B)	 	after FIVE (5) o’clock in the afternoon
on a Business Day;

	 	 	 	when it will be deemed to be given or made on the next following
Business Day;

	 	(3)	 	if by post, on the second Business Day following the
date of posting of the Notice to an address specified in paragraph (b);
and

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Lease

	 	(4)	 	if by facsimile, when despatched by facsimile to a
number specified in paragraph (b)(3), unless the time of dispatch is:

	 	(A)	 	not on a Business Day; or
	 
	 	(B)	 	after FIVE (5) o’clock in the afternoon
on a Business Day;

	 	 	 	when it will be deemed to be given or made on the next following
Business Day; and

	 	(d)	 	may be signed:

	 	(1)	 	if given by an individual, by the person giving the
Notice;
	 
	 	(2)	 	if given by a corporation, by a director, secretary
or manager of that corporation; or
	 
	 	(3)	 	by a solicitor or other agent of the person giving
the Notice.

	49	 	Proper law

	 	 	 	This Document is governed by, and to be interpreted in accordance with, the laws of
Western Australia and where applicable the laws of the Commonwealth of Australia.

	50	 	Arbitration

	 	50.1	 	Dispute referred to single arbitrator
	 
	 	 	 	Except as otherwise provided, any dispute arising out of this Document is to be
determined by a single arbitrator under the provisions of the Commercial Arbitration
Act 1985 and the Lessor and Lessee may each be represented by a legal practitioner of
their choice.

	 	50.2	 	No abatement
	 
	 	 	 	The Lessee must pay the Money Payable without abatement or deduction until whichever
is the earlier of:

	 	(a)	 	the date of the award of the arbitrator; or
	 
	 	(b)	 	agreement between the parties;
	 
	 	(c)	 	when the Lessor will refund to the Lessee any money paid by the
Lessee not required to be paid within the terms of the award of the arbitrator or
the agreement between the Lessor and Lessee.

	51	 	Accrual on daily basis

	 	 	 	Money Payable accrues on a daily basis.

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Lease

	52	 	Statutory powers

	 	 	 	The powers conferred on the Lessor by or under any statute for the time being in force
are, except to the extent inconsistent with the terms and provisions expressed in this
Document, in augmentation of the powers conferred on the Lessor by this Document.

	53	 	Moratorium not to apply

	 	 	 	To the fullest extent permitted by law, the provisions of a statute which would, but
for this clause:

	 	(a)	 	extend or postpone the date of payment of money
	 
	 	(b)	 	reduce the rate of Interest; or
	 
	 	(c)	 	abrogate, nullify, postpone or otherwise affect any condition

	 	 	 	under this Document do not apply to limit or affect the terms of this
Document.

	54	 	Severance

	 	 	 	If any part of this Document is, or becomes, void or unenforceable that part is or
will be, severed from this Document to the intent that all parts that are not, or do
not become, void or unenforceable remain in full force and effect and are unaffected
by that severance.

	55	 	Waivers

	 	55.1	 	Failure or delay is not waiver
	 
	 	 	 	Failure to exercise or delay in exercising any right, power or privilege in this
Document by the Lessor does not operate as a waiver of that right, power or privilege.

	 	55.2	 	Partial exercise does not preclude further exercise
	 
	 	 	 	A single or partial exercise of any right, power or privilege does not preclude:

	 	(a)	 	any other or further exercise of that right, power or privilege; or
	 
	 	(b)	 	the exercise of any other right, power or privilege.

	56	 	Variation

	 	 	 	This Document may be varied only by deed executed by the Parties.

	57	 	Further assurances

	 	 	 	Each Party must execute and do all acts and things necessary or desirable to implement
and give full effect to the provisions and purpose of this Document.

	58	 	Counterparts

	 	 	 	This Document may be executed in any number of counterparts each of which is an

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	 	 	 	original and all of which constitute one and the same instrument.

	59	 	Payment of money

	 	 	 	Any sum of money to be paid to the Lessor must be paid to the Lessor at the Address or
as otherwise directed by the Lessor by notice from time to time.

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Schedule

	1	 	Premises

	 	 	 	The premises situated on the Land comprising of:

	 	•	 	Office / amenities	200 m2 approximately 	 
	 
	 	•	 	Training room / amenities 	200 m2 approximately	 
	 
	 	•	 	Warehouse 	6,112 m2 approximately	 
	 
	 	•	 	Canopy 	576 m2 approximately	 

	 	 	 	as shown on the attached plan.

	2	 	Land

	 	 	 	Lot 53 on Plan 12387, being the whole of the land comprised in Certificate of Title
Volume 1770 Folio 067.

	3	 	Term

	 	 	 	A Term of Ten (10) years commencing on the Date of Commencement and expiring on 28
February 2019

	4	 	Date of Commencement

	 	 	 	1 March 2009

	5	 	Further Term

	 	(a)	 	A Further Term of Five (5) years commencing on 1 March 2019 and
expiring on 28 February 2024
	 
	 	(b)	 	A Further Term of Five (5) years commencing on 1 March 2024 and
expiring on 28 February 2029

	6	 	Rent

	 	 	 	From the Date of Commencement the Rent is $585,400.00 per annum, payable by
instalments of $48,783.33 per month in advance on the first day of each month.

	7	 	Rent Review Dates

	 	(a)	 	CPI review dates:
	 
	 	 	 	Every TWELVE (12) months from the Date of Commencement (other than the dates
on which a market review is conducted).

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	 	(b)	 	Market review dates:
	 
	 	 	 	Every FIVE (5) years from the Date of Commencement.

	8	 	Address

	 	 	 	Suite 1, 567 Hay Street Daglish, Western Australia

	9	 	Managing Agent

	 	 	 	As notified by the Lessor to the Lessee from time to time.

	10	 	Rate Of Interest

	 	 	 	FOUR PERCENT (4%) above the Westpac Indicator Lending Rate published by
Westpac from time to time.

	11	 	Painting and Decorating Intervals

	 	 	 	THREE (3) months prior to the expiry of the Term

	12	 	Public Liability Insurance Amount:

	 	 	 	TWENTY MILLION DOLLARS ($20,000,000)

	13	 	Permitted Use

	 	 	 	Administration, warehousing, distribution, sales and manufacturing of fibre cement
products and systems and all associated activities

	14	 	Facsimile Number

	 	Lessor: 	 	 (08) 9388 0577
	 
	 	Lessee:  	 	(02) 9638 9299

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Executed as a deed:

Executed by Welshpool Landowner Pty Ltd

ACN 108 198 778 in accordance with section 127(1)

of the Corporations Act 2001 by authority of its Directors:

	 	 	 
	/s/ Ian Beacham

	 	/s/ Michael W Hodgson
	 

	 	 
	Secretary/Director

	 	Director
	 
	 	 
	Ian Beacham

	 	/s/ Michael W Hodgson
	 

	 	 
	Name (please print)

	 	Name (please print)

Executed by James Hardie Australia Pty Limited

ACN 084 635 558 in accordance with its constitution:

	 	 	 
	/s/ Marcin Firek

	 	/s/ Shane Dias
	 

	 	 
	Secretary/Director

	 	Director
	 
	 	 
	Marcin Firek

	 	Shane Dias
	 

	 	 
	Name (please print)

	 	Name (please print)

page 40

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