Document:

Exhibit
10.4

 

 

	 	The Quadrant, 1 William Street

                                                                     Perth Western Australia 6000

	 	 
	 	Tel +61 8 9288 6000

                                                         Fax +61 8 9288 6001

	 	 
	 	lavan.com.au

 

Lease
- Office, Part Ground Floor and Mezzanine Floor, 246B

Churchill Avenue, Subiaco

 

Landville
Pty Ltd and Victor Vlahos as trustee for the Victor Vlahos Family Trust

Locafy Limited

 

    	 

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

 

Table
of contents

 

	Reference Schedule 	1
	 	 	 
	Parties 	3
	 	 	 
	1	Definitions	3
	 	Definitions	3
	 	Interpretation	9
	 	 	 
	2	Basic
    obligations	10
	 	The
    Lease	10
	 	The
    Tenant’s right to be free from interference	10
	 	The
    Tenant’s duty to pay Rent	11
	 	 	 
	3	Other
    payments to be made	11
	 	Rates
    and Taxes	11
	 	Services
    charges	11
	 	The
    Landlord’s Operating Costs	12
	 	Costs
    of this Lease	12
	 	Costs
    of insurance	13
	 	Subdivision
    levies	13
	 	 	 
	4	Bank
    guarantee	13
	 	 	 
	5	GST	14
	 	Amounts
    otherwise payable do not include GST	14
	 	Liability
    to pay GST	14
	 	Time
    for payment	14
	 	Tax
    Invoices	14
	 	Refunds	14
	 	Exclusion
    of Input Tax Credit items	14
	 	Default
    GST	15
	 	 	 
	6	Premises	15
	 	The
    Tenant’s right to have access to Premises	15
	 	The
    Tenant’s right to use Common Areas	15
	 	The
    Tenant’s right to use Services	15
	 	Adequacy
    of Services	16
	 	After
    hours air-conditioning	16
	 	Purpose
    of use of Premises	16
	 	Conduct
    of the business	16
	 	Storage
    of chemical and hazardous things	17
	 	The
    Tenant’s duty in relation to events and risk	17
	 	The
    Tenant’s duties in relation to serious infectious disease	17
	 	The
    Tenant’s duty to maintain Premises	17
	 	The
    Tenant’s duty in relation to the Tenant’s Property	18
	 	The
    Tenant’s duty to clean	18
	 	The
    Tenant’s duty to redecorate Premises	18
	 	The
    Tenant’s duty to get consent for work	18
	 	Standard
    of work	19
	 	The
    Tenant must give the Landlord evidence of completion	19
	 	The
    Tenant must pay the Landlord’s costs in relation to work	19

 

    	 

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	Signs	19
	 	The
Tenant must comply with Laws	19
	 	 Occupational Safety and Health	20
	 	Tenant must comply with rules relating to the Building	20
	 	 The Tenant’s duty in relation
    to a subdivision 	20
	 	 The Landlord’s right to inspect Premises	20
	 	Inspection by prospective tenants or purchasers	20
	 	 	 
	7	Liability,
    insurance and indemnity	21
	 	Exclusion
    of liability	21
	 	The
    Tenant’s duty to arrange insurance	21
	 	Details
    of insurance cover	21
	 	The
    Landlord’s duty to insure	22
	 	The
    Tenant’s other obligations in relation to insurance	22
	 	Indemnity	22
	 	 	 
	8	Damage
    and repairs	22
	 	The
    Tenant’s responsibilities	22
	 	The
    Landlord’s responsibilities	23
	 	The
    Landlord’s duty to fix damage	23
	 	Effect
    of major damage on Lease	23
	 	Effect
    of major damage on Rent	24
	 	Dispute
    about application of clauses 8.11 and 8.12	24
	 	 	 
	9	Environmental
    matters	24
	 	Environmental
    Rating	24
	 	Greenhouse
    gas emissions and energy reporting	25
	 	 	 
	10	Extension
    of this Lease	26
	 	The
    Tenant’s right to an extension	26
	 	How
    the Tenant may exercise its option to extend	26
	 	Loss
    of right to extend	26
	 	Terms applicable to extension 	27
	 	Documentation	27
	 	 	 
	11	Holding
    Over	27
	 	 	 
	12	Assignment
    and subletting	28
	 	No
    interest to be created without consent	28
	 	Requirements
    for assignment and Subletting	28
	 	Tenant
    remains liable	29
	 	 	 
	13	Change
    in the Tenant’s ownership or control	29
	 	 	 
	14	Trustee
    provisions	30
	 	 	 
	15	Breach
    of this Lease	31
	 	The
    Landlord’s right to require the Tenant to correct breach	31
	 	Damages
    in case of breach	31
	 	Landlord’s
    right to terminate	31
	 	The
    Landlord’s entitlement to end this Lease if this Tenant is insolvent	32
	 	Damages
    for breach of Essential Terms	33
	 	The
    Landlord’s duty to try to relet	33
	 	Tender
    of money after the Landlord ends this Lease	34
	 	No
    loss of rights	34

 

    	 

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	16	Tenant’s
    obligations at the end of this Lease	35
	 	The
    Tenant’s duties when this Lease ends or is ended	35
	 	 	 
	17	Notices	37
	 	Form
    and delivery	37
	 	Execution
    of emails	37
	 	Receipt
    and effect	38
	 	 	 
	18	Caveat	38
	 	 	 
	19	Power
    of attorney	38
	 	 	 
	20	WAPC
    consent	39
	 	 	
	21	Retail
    Shops Act	39
	 	 	 
	22	Special
    conditions	39
	 	 	 
	23	Guarantee
    and indemnity of the Tenant’s obligations under this Lease	40
	 	Guarantor’s
    main obligations	40
	 	Guarantor’s
    other obligations	41
	 	Time
    for payment	41
	 	Persons
    benefited by guarantee and indemnity	41
	 	Guarantee
    and indemnity basis of entry into Lease	42
	 	 	 
	24	General	42
	 	No
    right to set off by Tenant	42
	 	Time
    for payment	42
	 	Interest
    on overdue amounts	42
	 	Obligation
    in relation to employees, agents, contractors and others	42
	 	Variation	42
	 	Waiver	42
	 	Entire
    agreement	43
	 	Severability	43
	 	Further
    co-operation	43
	 	Relationship
    of the parties	43
	 	Governing
    law and jurisdiction	43
	 	Execution
    of separate documents	43
	 	No
    merger	43
	 	Third
    party rights	43
	 	Exclusion
    of contrary legislation	43
	 	 	 
	Execution	44
	 	 
	Schedule
    1	46
	 	 
	Schedule
    2	47
	 	 
	Schedule
    3	52

 

    	 

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Reference
Schedule

 

	Item
    1	Parties

 

	 	Landlord	Landville
                                            Pty Ltd ACN 099 096 107 and

    Victor
    Vlahos as trustee for the Victor Vlahos Family Trust

	 	 	 
	 	 	Address:	care
    of Level 25
	 	 	 	Allendale
    Square
	 	 	 	77
    St Georges Terrace
	 	 	 	PERTH
    WA 6000
	 	 	Attention:	Chris
    Zelestis
	 	 	Email:	czelestis@francisburt.com.au
	 	 	 	 
	 	Tenant	Locafy Limited
	 	 	ACN 136 737
    767
	 	 	 
	 	 	Address:	246B
    Churchill Avenue
	 	 	 	SUBIACO
    WA 6008
	 	 	Attention:	Melvin
    Tan
	 	 	Email:	melvin.tan@locafy.com
	 	 	 	 
	 	Guarantor	Not applicable

 

	Item
    2	Land

 

Lot
2 on Diagram 52017 being the whole of the land comprised in Certificate of Title Volume 1461 Folio 933.

 

Premises

 

That
part of the Building known as 246B Churchill Avenue, Subiaco having a total area of approximately 603.7 square metres consisting of approximately
419.7 square metres on the ground floor and approximately 184 square metres on the Mezzanine floor as is shown with designation “Office
2” on the Plan in Schedule 3.

 

	Item
    3	Period
    of Lease

 

	 	Term:  	Five (5) years
	 	 	 
	 	Commencement
    date:	20/11/2021	.
	 	End
    date:	Five (5) years after the Commencement Date.

 

	Item
    4	Rent
    payable

 

$45,540.00
(plus GST) per annum payable in advance by equal monthly instalments of $3,795.00 (plus GST).

 

    	 	 	1

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Dates
for review or adjustment of Rent

 

In
accordance with Schedule 1.

 

	Item
    5	The Tenant’s
    percentage of the Operating Costs at the commencement of the Lease

 

In
accordance with special condition 7.

 

	Item
    6 	Bank Guarantee

 

	 	(a)	Bank
    guarantee (clause 4.1):
	 	 	 
	 	 	Yes.
	 	 	 
	 	(b)	Bank
    guarantee amount: (clause 4.1.1):
	 	 	 
	 	 	The
    sum of $29,370.00. Equivalent to four (4) months gross Rent (Rent, Operating Costs and Licence Fees plus GST).

 

	Item
    7	Normal
    hours for air conditioning (excluding Saturdays, Sundays and public holidays)
	 	 
	 	8.00
    am to 5.30 pm.
	 	 
	Item
    8	Use
of Premises
	 	 
	 	Commercial
    Offices.
	 	 
	Item
    9	Time for
    redecoration
	 	 
	 	As
    part of the Make Good to be performed by the Tenant.
	 	 
	Item
    10	Extension

 

	 	Period
    of extension:	Not
    applicable
	 	 	 
	 	Period
    of additional extension:	Not
    applicable

 

Calculation
of Rent for extension

 

In
accordance with Schedule 1.

 

	Item
  11	 Rate
of interest

 

That
rate of interest that is 4% in excess of the interest rate quoted by the Landlord’s bank for the time being on loans not exceeding
$100,000.00.

 

	Item
  12	 Specified
Landlord’s Fixtures

 

Any
floor or window covering, partitions, light fittings and other fixtures or fittings installed by the Landlord in the Premises and any
replacement of those items.

 

    	 	 	2

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Parties

 

The
Landlord

 

The
Tenant

 

The
Guarantor

 

 

 

	1	Definitions

 

Definitions

 

	1.1	In
    this Lease the following definitions apply:

 

	AC
    Report	means
    a written report to be provided by the Tenant to the Landlord from a suitably qualified engineer approved by the Landlord (such approval
    not to be unreasonably withheld) on the condition of the air-conditioning system in the Premises.
	 	 
	Authority	includes
    a government, a local, statutory or public authority, and a person entitled to carry out a statutory function.
	 	 
	BEED
    Act	means
    the Building Energy Efficiency Disclosure Act 2010 (Cth).
	 	 
	Building	means
    the building erected on the Land described in Item 2 of the Reference Schedule in which the Premises are located.
	 	 
	Business
    Day	means
    a day other than a Saturday, Sunday or public holiday in Western Australia.
	 	 
	Carbon
    Cost	means
    any cost or tax incurred, whether directly or indirectly, in respect of the Building or the Landlord’s ownership of the Building
    arising out of, incidental to, or resulting from a Carbon Regime.
	 	 
	Carbon
    Regime	means
    any Law or any requirement or condition of an Authority in connection with the emission, monitoring, reduction, offset, removal or
    sequestration of Greenhouse Gas emissions. This includes any statutory emissions trading scheme or tax or similar charge on the emission
    of Greenhouse Gas or the carbon content of fuels.
	 	 
	Commencement Date 	means the commencement
    date of this Lease specified in Item 3 of the Reference Schedule.

 

    	 	 	3

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	Common
    Areas	includes
    any part of the Land, Building and Premises which the landlord makes available for shared use, including foyers, lifts, lobbies,
    toilets, and tea rooms.
	 	 
	Consideration	has
    the same meaning as in the GST Act.
	 	 
	Default
    GST	means
    penalties, fines, interest and additional payments required or imposed under the GST Act as a result of non-payment or late payment
    of GST under the GST Act.
	 	 
	Energy	has
    the same meaning as in the NGER Act or other relevant Sustainability Legislation.

 

	Energy
    Information	means:

 

	 	(a)	a
    record of the total:
	 	 	 
	 	 	(i)	amount
    of Greenhouse Gases emitted;
	 	 	 	 
	 	 	(ii)	the
    total amount of Energy consumed; and
	 	 	 	 
	 	 	(iii)	the
    total amount of Energy produced
	 	 	 	 
	 	 	in
    respect of the Premises, as defined in the NGER Act, including all information as to how such amounts were calculated; and
	 	 	 
	 	(b)	a
    record of the information required under the relevant Sustainability Legislation.

 

	Environmental Rating	means a rating assigned
    to a building in accordance with an industry recognised rating method which rates the building’s environmental impact, which
    may include the building’s rates of usage of any one or more of:

 

	 	(a)	energy;
	 	 	 
	 	(b)	water;
	 	 	 
	 	(c)	water
    production;
	 	 	 
	 	(d)	air
    quality and carbon;
	 	 	 
	 	(e)	waste
    generation; and
	 	 	 
	 	(f)	waste
    recycling rates.

 

	Essential
    Term	means
    any of the following obligations:
	 	 
	 	(a)	to pay Rent;
	 	 	 
	 	(b)	to
pay GST;

 

    	 	 	4

     

    

  

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	(c)	to
    make any other payments required by this Lease;
	 	 	 
	 	(d)	to
    use the Premises solely for the use specified in Item 8 of the Reference Schedule;
	 	 	 
	 	(e)	to
    comply with laws and requirements;
	 	 	 
	 	(f)	not
    to assign, mortgage, sub-let, part with possession or create in favour of any person an interest in this Lease or any part of the
    Premises in any way without prior written consent; and
	 	 	 
	 	(g)	if
    required, to arrange and maintain insurance and not to do anything to prejudice it.

 

	Financial
    Year	means
    the accounting period the Landlord chooses for calculating Operating Costs.
	 	 
	Greenhouse
    Gas	has
    the same meaning as in the NGER Act.
	 	 
	GST	has
    the same meaning as in the GST Act and includes any replacement or subsequent similar tax.
	 	 
	GST
    Act	means
    the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
	 	 
	Guarantor	means
    the guarantor (if any) described in Item 1 of the Reference Schedule.
	 	 
	Input
    Tax Credit	has
    the same meaning as in the GST Act.
	 	 
	Landlord	means
    the landlord described in Item 1 of the Reference Schedule.
	 	 
	Landlord’s
    Fixtures 	include
    any fixtures specified in Item 12 of the Reference Schedule.
	 	 
	Law	includes
    any requirement of any statute, regulation, proclamation, ordinance or by-law, present or future and whether State, Federal, local
    or otherwise.
	 	 
	Lease	means
    this document and includes any equitable lease in respect of the Premises that arises because of any one or more of the following:
	 	 	 
	 	(a)	the
    Tenant enters into possession of the Premises before this document is signed;

 

    	 	 	5

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	(b)	this
    document is not registered on the certificate of title for the Land; or
	 	 	 
	 	(c)	the
    Tenant remaining in possession of the Premises after the Lease evidenced by this document ends.

 

	Lease
    Line	means
    the line shown on the plan in Schedule 3 which shows the horizontal boundaries of the Premises.
	 	 
	Lettable
    Area	means
    the area measured in accordance with the Property Council of Australia’s Method of Measurement 1997 that is appropriate to
    the type of Premises.
	 	 
	Make
    Good	is
    defined in clause 16.1.
	 	 
	NGER
    Act	means
    the National Greenhouse and Energy Reporting Act 2007 (Cth).
	 	 
	Operating
    Costs	means
    every cost the Landlord reasonably incurs in respect of the ownership, insurance, management, operation, maintenance, use and occupation
    of the Premises including, but not limited to, the cost of:

 

	 	(a)	Rates
    and Taxes;
	 	 	 
	 	(b)	insuring
    the Premises in accordance with the provisions of this Lease and against any risk that the Landlord considers prudent to insure against;
	 	 	 
	 	(c)	employing
    a managing agent;
	 	 	 
	 	(d)	property
    management fees;
	 	 	 
	 	(e)	property
    inspection fees (initial property condition report and ongoing inspections);
	 	 	 
	 	(f)	cleaning;
	 	 	 
	 	(g)	maintaining,
    repairing, renovating, repainting, redecorating and refurbishing;
	 	 	 
	 	(h)	removing
    garbage and trade waste;
	 	 	 
	 	(i)	engaging
    professional pest control agents;
	 	 	 
	 	(j)	gardening,
    landscaping and reticulating;
	 	 	 
	 	(k)	maintaining
    and repairing car parking;
	 	 	 
	 	(l)	security
    and caretaking;
	 	 	 
	 	(m)	Carbon
    Costs;

 

    	 	 	6

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	(n)	supplying
                                            Services including the operation, inspection, maintenance and replacement and upgrading of
                                            Services to comply with the requirements or orders of any Authority or Laws;

	 	 	 
	 	(o)	audits
    carried out by the Landlord’s auditors to determine the Operating Costs payable by the Tenant;
	 	 	 
	 	(P)	legal
    fees and disbursements incurred by the Landlord;
	 	 	 
	 	(q)	contributions
    to a sinking fund established by the Landlord to cover repairs and maintenance of a substantial but infrequent nature to the Premises
    or Services (provided always that the contributions in a Financial Year do not exceed 5% of the Operating Costs for that Financial
    Year);
	 	 	 
	 	(r)	obtaining
    an Environmental Rating for the Building;
	 	 	 
	 	(s)	maintaining
    any Environmental Rating that has been given to the Building;
	 	 	 
	 	(t)	safety,
    environmental and sustainability audits and reports of the Building and the land on which the Building is located; and
	 	 	 
	 	(U)	complying
    with any Authority in relation to the Landlord’s environmental obligations under this Lease or at Law,
	 	 	 
	 	but
    excluding:
	 	 
	 	(v)	interest
    on borrowed money;
	 	 	 
	 	(w)	capital
    expenditure;
	 	 	 
	 	(x)	income
    tax and capital gains tax;
	 	 	 
	 	(y)	land
    tax in respect of the Premises in excess of the amount payable on a single property basis; and
	 	 	 
	 	(Z)	a
    cost which the Law does not allow the Landlord to recover from the Tenant.

 

	Premises	means
    the premises more particularly described in item 2 of the Reference Schedule:

 

	 	(a)	extending
    vertically from the upper surface of the floor slab to the under surface of the ceiling of the Premises: and

 

    	 	 	7

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	(b)	extending
    horizontally to the Lease Line and to the outer surface of external walls and windows extending beyond the Lease Line and to the
    middle or centre line of adjoining or intertenancy walls or partitions, 
	 	 	 
	 	and includes the Landlord’s Fixtures and any other
    improvements and other fixtures, fittings, plant and machinery of the Landlord in or on that area.

 

	Primary
    Payment	means
    payment by the Tenant to the Landlord of any Rent, Operating Costs or other amount payable by the Tenant to the Landlord under this
    Lease.
	 	 
	Rates
    and Taxes	means
    any amount charged or assessed against the Premises, the Tenant or the Landlord in respect of the ownership, occupation or use of
    the Premises by any Authority and includes, but is not limited to, each of the following:

 

	 	(a)	council
    rates and charges together with all rubbish removal rates and charges;
	 	 	 
	 	(b)	land
    tax and metropolitan region improvement tax on a single holding basis; and
	 	 	 
	 	(c)	water,
    drainage and sewerage rates and service charges including, but not limited to, meter rents, charges for the disposal of stormwater
    and water consumption charges.

 

	Reference
    Schedule	means
    the reference schedule at the front of this document.
	 	 
	Rent	means
    the rent payable by the Tenant under this Lease.
	 	 
	Services	means
    every service that is available for use in, or supplied to, the Premises. It includes air-conditioning, water, electricity, gas,
    telephone and every service that enables access to the Premises for people or goods.
	 	 
	Sustainability

                                                                       Legislation
	(a)	means:
	 	(b)	the
    NGER Act;
	 	 	 
	 	(c)	the
    BEED Act; and
	 	 	 
	 	(d)	any
    other Law relating to sustainability, energy efficiency, energy production or energy consumption.

 

	Taxable
    Supply	has
    the same meaning as in the GST Act.

 

    	 	 	8

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	Tax
    Invoice	has
    the meaning given in the GST Act and includes any document or record treated by the Commissioner of Taxation as a tax invoice.
	 	 
	Tenant	means
    the tenant described in Item 1 of the Reference Schedule.
	 	 
	Tenant’s
    Property 	includes
    property that the Tenant owns, hires or leases.
	 	 
	Term	means
    the period specified in Item 3 of the Reference Schedule and any extension of that period.
	 	 
	Value	has
    the same meaning as in the GST Act.

 

Interpretation

 

	1.2	In
    this Lease, unless the context otherwise requires:

 

	 	1.2.1	Headings
    or subheadings are for convenience only and do not affect the interpretation of any provision of this Lease.
	 	 	 
	 	1.2.2	A
    reference to any agreement or document is to that agreement or document as amended, novated, supplemented or replaced from time to
    time.
	 	 	 
	 	1.2.3	The
    singular includes the plural and vice versa.
	 	 	 
	 	1.2.4	Words
    expressed in one gender include the other gender.
	 	 	 
	 	1.2.5	A
    “person” includes an individual, partnership, firm, company, government, joint venture, association, authority, corporation
    or other body corporate.
	 	 	 
	 	1.2.6	References
    to the parties, background, parts, clauses, schedules and annexures are references to the parties, background, parts, clauses, schedules
    and annexures to this Lease
	 	 	 
	 	1.2.7	The
    expression “this Lease” includes the agreement, arrangement, understanding or transaction recorded in this Lease.
	 	 	 
	 	1.2.8	References
    to a party to this Lease include that party’s executors, administrators, substitutes, successors and permitted assigns.
	 	 	 
	 	1.2.9	A
    reference to a group of persons is a reference to all of them collectively and to each of them individually.
	 	 	 
	 	1.2.10	References
    to time are to time in Perth, Western Australia.
	 	 	 
	 	1.2.11	If
    the date on or by which any act must be done under this Lease is not a Business Day, the act must be done on or by the next Business
    Day.
	 	 	 
	 	1.2.12	A
    covenant or agreement made by, or for the benefit of, two or more persons binds, and is enforceable against, or may be exercised
    by (as the case may be), those persons jointly and each of them severally.

 

    	 	 	9

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	1.2.13	A
    reference to any statute or to any statutory provision includes any amendment, re-enactment or consolidation of it or any statutory
    provision substituted for it, and all ordinances, by-laws, regulations, rules and statutory instruments (however described) issued
    under it.
	 	 	 
	 	1.2.14	$
    or “dollars” is a reference to Australian currency.
	 	 	 
	 	1.2.15	A
    reference to a thing or an amount includes the whole or part of that thing or amount.

 

 

 

	2	Basic
    obligations

 

The
Lease

 

	2.1	The
    Landlord leases to the Tenant the Premises for the Term.

 

The
Tenant’s right to be free from interference

 

	2.2	The
    Tenant is entitled to quiet enjoyment of the Premises.
	 	 
	2.3	The
    Tenant may occupy and use the Premises free from interruption or interference by the Landlord or anyone who claims through the Landlord.
	 	 
	2.4	However,
    the Landlord reserves the right to do anything the Landlord believes necessary or desirable in relation to any of the following:

 

	 	2.4.1	maintaining,
    repairing or upgrading the Building:
	 	 	 
	 	2.4.2	providing
    or maintaining any Service to any part of the Building;
	 	 	 
	 	2.4.3	complying
    with any Law;
	 	 	 
	 	2.4.4	using
    the exterior of the Premises for signs;
	 	 	 
	 	2.4.5	creating
    any easement or other right through or around the Premises; or
	 	 	 
	 	2.4.6	subdividing
    the Building.

 

	2.5	The
    Landlord may enter the Premises at any reasonable time in order to exercise its right under clause 2.4.
	 	 
	2.6	Except
    in an emergency, the Landlord must give the Tenant reasonable notice before exercising that right.
	 	 
	2.7	The
    Landlord must exercise that right at a reasonable time and in a way which minimises any interference with the Tenant’s occupation
    and use of the Premises.
	 	 
	2.8	If,
    despite the Landlord giving reasonable notice to the Tenant under clause 2.6, the Tenant refuses or fails to provide the Landlord
    with access to the Premises, the Landlord may engage a locksmith (at the Tenant’s cost) to gain entry to the Premises.

 

    	 	 	10

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	2.9	The
    Landlord’s action under clause 2.8 is without prejudice to any of the Landlord’s rights under this Lease.

 

The
Tenant’s duty to pay Rent

 

	2.10	The
    Tenant must pay the Landlord the Rent.
	 	 
	2.11	The
    Landlord is entitled to adjust or review the Rent on the dates stated in Item 4 of the Reference Schedule in accordance with Schedule
    1.
	 	 
	2.12	The
    Tenant must pay the Rent monthly in advance on the first day of each month.
	 	 
	2.13	If
    the Lease does not begin on the first day of a month, the Tenant must pay the pro rata proportion of the Rent for the period at the
    beginning and end of the Lease that is less than a month.

 

 

 

	3	Other
    payments to be made

 

Rates
and Taxes

 

	3.1	The
    Tenant must pay Rates and Taxes.
	 	 
	3.2	If
    the Rates and Taxes are assessed directly against the Tenant or the Premises, the Tenant must pay them by the due date for payment.
	 	 
	3.3	At
    the beginning and end of the Lease, the Tenant must pay the daily pro rata proportion of the Rates and Taxes for any period that
    is less than the full rates or tax period.
	 	 
	3.4	The
    Tenant must give the Landlord copies of assessments and receipts in respect of the Rates and Taxes if the Landlord asks for them.
	 	 
	3.5	If
    the Rates and Taxes are assessed directly against the Landlord, then, at the Landlord’s election, either of the following applies:

 

	 	3.5.1	the
    Rates and Taxes will be included in the Operating Costs which the Tenant must contribute to; or
	 	 	 
	 	3.5.2	the
    Tenant must pay to the Landlord a proportion of the Rates and Taxes (being the same proportion that the Lettable Area of the Premises
    is of the Lettable Area of the Building). This proportion will increase or decrease automatically with changes in the Lettable Area
    of the Building.

 

	3.6	The
    Landlord must pay any rates, taxes and charges in respect of the Land that the Tenant and other Tenants do not have to pay.

 

Services
charges

 

	3.7	The
    Tenant must pay the charges for the Services.

 

    	 	 	11

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	3.8	If
    the Landlord elects to supply the Services to the Tenant each, of the following applies:

 

	 	3.8.1	the
    amount which the Landlord charges to the Tenant:

 

	 	(a)	may
    not be the same as that which is charged by the Service supplier to the Landlord;
	 	 	 
	 	(b)	must
    not exceed the amount which would have been payable by the Tenant if the Tenant had purchased the Service direct from the Service
    supplier on a single consumer basis (but cannot be less than the amount paid by the Landlord to the Service supplier for that Service);
    and
	 	 	 
	 	(c)	must
    not exceed that which the Law allows to be charged to the Tenant by the Landlord.

 

The
Landlord’s Operating Costs

 

	3.9	The
    Tenant must pay the Landlord the Tenant’s share of the Operating Costs. This will be based on the proportion that the Lettable
    Area of the Premises bears to the Lettable Area of the Building. The proportion at the commencement of this Lease may be set out
    in Item 5 of the Reference Schedule. It will increase or decrease automatically with changes in the Lettable Area of the Building.
	 	 
	3.10	Before
    the start of each Financial Year, the Landlord may give the Tenant a written estimate of the Operating Costs. If the Landlord does
    this, the Tenant must pay the Landlord the Tenant’s share of that estimate by monthly instalments in advance on the dates for
    payment of Rent.
	 	 
	3.11	If
    the Tenant pays its share of the Operating Costs by monthly instalments, as soon as practicable after the end of each Financial Year,
    the Landlord will give the Tenant details of the Landlord’s actual Operating Costs. The Tenant must pay the Landlord any shortfall
    between what the Tenant has paid and what is due on the basis of the Landlord’s actual costs. If the Tenant has overpaid, the
    Landlord must pay the Tenant the amount overpaid, or credit it against the Tenant’s next payment.

 

Costs
of this Lease

 

	3.12	The
    Tenant must pay:

 

	 	3.12.1	the
    Landlord’s reasonable costs for the negotiation, preparation and completion of this Lease; and
	 	 	 
	 	3.12.2	any
    charges, duties and taxes (except income tax) that are payable by either the Landlord or the Tenant in respect of each of:

 

	 	(a)	this
    Lease;
	 	 	 
	 	(b)	the
    registration of this Lease on the title to the Land; and
	 	 	 
	 	(c)	any
    payment made under this Lease.

 

    	 	 	12

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Costs
of insurance

 

	3.13	The
                                                                                                                                                                                  Tenant:

 

		3.13.1	must
                                            pay the premiums associated with the insurance policies referred to in clause 7.2; and

 

		3.13.2	is
                                            responsible for any excess payable on any claim for indemnity made on its behalf under any
                                            of the insurance policies referred to in clause 7.2.

 

Subdivision
levies

 

	3.14	If
                                            the Landlord subdivides the Building, and creates a strata company within the meaning of
                                            the Strata Titles Act 1985 (WA), the Tenant must, at the Landlord’s option,
                                            pay or reimburse the Landlord for a levy by the strata company, to the extent that it is
                                            not recoverable as an Operating Cost.

 

 

 

	4	Bank
                                            guarantee

 

	4.1	If
                                            Item 6(a) provides for a bank guarantee, on or before the Commencement Date, the Tenant must
                                            give the Landlord an unconditional bank guarantee:

 

	 	4.1.1	for the amount in Item 6(b) of the Reference Table; and

 

		4.1.2	on
                                            terms and conditions acceptable to the Landlord including a condition that the bank guarantee
                                            have no expiry date.

 

	4.2	Where
                                            the Rent and Operating Costs increase over the Term, the amount of the bank guarantee shall
                                            increase in the same proportion. The Tenant must at each rent review date, or as soon as
                                            practicable thereafter, provide to the Landlord:

 

		4.2.1	a
                                            new replacement bank guarantee for the amount specified in Item 6(b) plus the amount of any
                                            increase; or

 

	 	4.2.2	a further bank guarantee for the amount of any increase.

 

Any
replacement or further bank guarantee provided pursuant to this clause 4.2 must be in accordance with the requirements of clause 4.1.

 

	4.3	The
                                            Landlord may present the bank guarantee to recover the Landlord’s loss due to the Tenant’s
                                            breach. The Tenant must promptly replace the bank guarantee if it is presented. On or before
                                            the date which is six months after the date on which this Lease ends and provided that the
                                            Tenant has:

 

	 	4.3.1	vacated the Premises; and

 

	 	4.3.2	complied with all of the Tenant’s obligations under this
Lease, 
	 	 	 
	 	the
Landlord must return the bank guarantee to the Tenant unless it is needed to recover the Landlord’s loss.

 

    	 	 	13

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	4.4	If
                                            the Landlord sells the Premises, the Tenant must do whatever is necessary on the Tenant’s
                                            part to give the new owner the benefit of the bank guarantee and together with the Guarantor
                                            must, if requested by the Landlord, sign a deed of covenant agreeing to continue to be bound
                                            by the terms of the Lease on and from the change of ownership of the Land.

 

 

  

	5	GST

 

Amounts
otherwise payable do not include GST

 

	5.1	Subject
                                            to:

 

	 	5.1.1	express provision to the contrary; and

 

	 	5.1.2	this clause,

 

the
Consideration payable by the Tenant is exclusive of GST and represents the Value of the Taxable Supply for which payment is to be made.

 

Liability
to pay GST

 

	5.2	If
                                            the Landlord is liable by Law for GST on a Primary Payment, the Tenant must pay to the Landlord
                                            the amount of the GST.

 

Time
for payment

 

	5.3	The
                                            Tenant must pay to the Landlord any amount in respect of GST that the Tenant is required
                                            to pay under this Lease at the same time and in the same manner, as the Tenant is required
                                            to pay the Primary Payment in respect of which the GST relates.

 

Tax
Invoices

 

	5.4	The
                                            Landlord must issue to the Tenant Tax Invoices in respect of Primary Payments as and when
                                            required by the GST Act.

 

 Refunds

 

	5.5	If
                                            the Landlord refunds to the Tenant an amount under this Lease, the Landlord must also refund
                                            to the Tenant at the same time any amount paid by the Tenant under clause 5.3 with respect
                                            to the refunded amount.

 

Exclusion
of Input Tax Credit items

 

	5.6	For
                                            the purposes of this clause 5, a Primary Payment excludes any outgoing or other expense to
                                            the extent that the Landlord is entitled to an Input Tax Credit for the outgoing or expense.

 

    	 	 	14

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Default
GST

 

	5.7	Where
                                            an amount required to be paid by the Tenant under this clause 5 is not so paid when due,
                                            the Tenant must also pay to the Landlord:

 

		5.7.1	any
                                            Default GST payable by the Landlord in relation to the particular Taxable Supply for which
                                            the amount was required to be paid; and

 

		5.7.2	interest
                                            at the rate specified in Item 11 of the Reference Schedule on the amount unpaid from the
                                            due date for payment until payment.

 

	5.8	For
                                            the purposes of clause 5, it shall not be a defence to a claim against the Tenant for payment
                                            to the Landlord of Default GST that the Landlord has failed to mitigate the Landlord’s
                                            damages by paying an amount of GST when it fell due under the GST Act.

 

 

 

	6	Premises

 

The
Tenant’s right to have access to Premises

 

	6.1	The
                                            Tenant may have access to the Premises at any time. However, the Tenant must comply with
                                            the Landlord’s security arrangements and the terms of any easements burdening the Land.

 

	6.2	If
                                            the Tenant requires access after the normal business hours of the Building, the Tenant must
                                            reimburse the Landlord for any additional costs the Landlord reasonably incurs in relation
                                            to providing that access.

 

	6.3	If
                                            it is necessary to prevent a right of way being created by law, the Landlord may close access
                                            to the Premises for a period of 24 hours once a year. However, the Landlord must use its
                                            best endeavours to exercise that right in a way which the Landlord believes will cause the
                                            Tenant as little inconvenience as possible.

 

The
Tenant’s right to use Common Areas

 

	6.4	The
                                            Tenant may use the Common Areas in the Building for the purpose for which they were designed
                                            provided that the Tenant:

 

		6.4.1	ensures
                                            that any use of those areas by the Tenant, the Tenant’s employees, agents, contractors
                                            or customers is lawful; and

 

		6.4.2	complies,
                                            and uses its best endeavours to make sure that its employees, agents, contractors and customers
                                            comply, with any rules the Landlord has made or makes in relation to the use of those areas.

 

The
Tenant’s right to use Services

 

	6.5	The
                                            Tenant is entitled to use the Services that are supplied to the Premises and the Common Areas.

 

    	 	 	15

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	6.6	The
                                            Tenant must not interfere with the Services, except where it is necessary to effect routine
                                            maintenance to the Services pursuant to a maintenance contract that has received the prior
                                            written approval of the Landlord.

 

	6.7	Except
                                            to the extent directly attributable to the Landlord, the Landlord is not responsible in any
                                            way if a Service fails (wholly or partially).

 

Adequacy
of Services

 

	6.8	The
                                            Tenant acknowledges that the Services are adequate for its use of the Premises under this
                                            Lease.

 

	6.9	The
                                            Landlord is not responsible in any way if a Service is inadequate for the Tenant’s
                                            use of the Premises under this Lease.

 

After
hours air-conditioning

 

	6.10	If
                                            the Tenant wants the Landlord to provide air-conditioning outside the hours stated in Item
                                            7 of the Reference Schedule, the Tenant must ask the Landlord. The Tenant must pay separately
                                            for it. The Landlord will tell the Tenant the cost when the Tenant asks the Landlord to supply
                                            it. If the Landlord gives the Tenant a blanket consent, the Landlord can change the cost,
                                            but only after telling the Tenant.

 

Purpose
of use of Premises

 

	6.11	The
                                            Tenant must use the Premises only for the purpose stated in Item 8 of the Reference Schedule.

 

	6.12	The
                                            Landlord makes no promise or representation that the Premises are fit for that purpose.

 

	6.13	The
                                            Tenant must do everything necessary for the Tenant to use the Premises lawfully.

 

Conduct
of the business

 

	6.14	The
                                            Tenant must conduct the Tenant’s business on the Premises in accordance with best practice
                                            for that type of business.

 

	6.15	The
                                            Tenant must not do anything to or on the Premises, or allow anything to be done to or on
                                            the Premises which, in the Landlord’s reasonable opinion:

 

		6.15.1	detracts
                                            from their appearance or value;

 

		6.15.2	might
                                            detract from the value of the Building or the income derived from it;

 

		6.15.3	is
                                            dangerous to people or property;

 

		6.15.4	overloads
                                            any part of the Premises or any of the Services;

 

		6.15.5	interferes
                                            with anyone’s use or enjoyment of the Building or any other property; or

 

		6.15.6	is
                                            unlawful.

 

    	 	 	16

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Storage
of chemical and hazardous things

 

	6.16	The
                                            Tenant must not store any chemical or hazardous thing on the Premises except to the extent
                                            that it is necessary for the conduct of the type of business stated in Item 8 of the Reference
                                            Schedule.

 

The
Tenant’s duty in relation to events and risk

 

	6.17	The
                                            Tenant must immediately notify the Landlord in writing if:

 

		6.17.1	any
                                            damage or injury is caused by the condition of the Premises; or

 

		6.17.2	the
                                            Tenant becomes aware of anything that may be dangerous to people or property.

 

	6.18	The
                                            Tenant must do everything reasonable to remove the danger.

 

The
Tenant’s duties in relation to serious infectious disease

 

	6.19	The
                                            Tenant must immediately tell the Landlord, and the relevant Authorities, in writing if the
                                            Tenant becomes aware that a serious infectious disease is or has been on the Premises.

 

	6.20	If
                                            the disease results from anything the Tenant has done or not done, the Tenant must do everything
                                            necessary to remove the cause, to the satisfaction of:

 

		6.20.1	the
                                            Landlord (acting reasonably); and

 

		6.20.2	all
                                            relevant Authorities.

 

	6.21	if
                                            the Landlord has to do anything to remove the cause from the rest of the Building, the Tenant
                                            must reimburse the Landlord for the cost of doing so.

 

The
Tenant’s duty to maintain Premises

 

	6.22	The
                                            Tenant must keep the Premises and the Landlord’s property in the Premises in good and
                                            tenantable repair and in good working order and condition to the Landlord’s reasonable
                                            satisfaction.

 

	6.23	The obligation in clause 6.22 does not apply to:

 

	 	6.23.1	fair
    wear and tear;
	 	 	 
	 	6.23.2	structural
    damage not caused by the Tenant or anyone the Tenant is responsible for; or
	 	 	 
	 	6.23.3	damage
    that is not caused by the Tenant or anyone the Tenant is responsible for, and against which the Landlord is required to insure under
    this Lease.

 

	6.24	Despite
    the previous clause, the Tenant must replace light bulbs, tubes, starters and power points within the Premises that wear out.

 

    	 	 	17

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

The
Tenant’s duty in relation to the Tenant’s Property

 

	6.25	The
                                            Tenant is responsible for the repair or replacement of any part of the Tenant’s Property
                                            which wears out or becomes dilapidated.

 

	6.26	If
                                            the Tenant replaces anything under clause 6.25, it must be with something of equivalent quality
                                            to the original.

 

The
Tenant’s duty to clean

 

	6.27	The
                                            Tenant must keep the Premises clean and free of vermin and insects.

 

	6.28	If
                                            the Landlord engages cleaning contractors for the whole Building, the Tenant must allow them
                                            to clean the Premises.

 

	6.29	The
                                            Tenant must also remove rubbish from the Premises regularly and make sure that none of the
                                            Tenant’s rubbish is left anywhere in the Building except at collection points the Landlord
                                            provides.

 

The
Tenant’s duty to redecorate Premises

 

	6.30	The
                                            Landlord is entitled to require the Tenant, at any time after the date stated in Item 9 of
                                            the Reference Schedule (in a proper manner, using suitable, good quality materials of a colour
                                            and quantity first approved by the Landlord) do each of the following:

 

		6.30.1	paint
                                            with at least 2 coats those parts of the Premises usually painted;

 

		6.30.2	paper
                                            all parts of the Premises usually papered; and

 

		6.30.3	redecorate
                                            in any other fashion all parts of the Premises usually decorated.

 

The
Tenant’s duty to get consent for work

 

	6.31	The
                                            Tenant must get the Landlord’s written consent before any of the following occurs:

 

		6.31.1	work
                                            is done to the Premises;

 

		6.31.2	an
                                            application is made to an Authority for approval for work to the Premises; or

 

		6.31.3	a
                                            contractor is engaged to do work to the Premises.

 

	6.32	If
                                            the Tenant’s proposed work affects the structure of the Building or the Services to
                                            it, the Landlord may withhold consent at its absolute discretion. In other cases, the Landlord
                                            must not withhold consent unreasonably.

 

	6.33	The
                                            Landlord will require each contractor engaged to carry out any of the work to the Premises
                                            to have insurance to cover all risks associated with that work.

 

    	 	 	18

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Standard
of work

 

	6.34	Any
                                            work the Tenant does to the Premises at any time must be done to the Landlord’s reasonable
                                            satisfaction by the contractors the Landlord has approved (acting reasonably).

 

The
Tenant must give the Landlord evidence of completion

 

	6.35	When
                                            the work is complete, the Tenant must give the Landlord, at the Tenant’s expense:

 

		6.35.1	each
                                            certificate of compliance or statement of satisfactory completion that is required by each
                                            relevant Authority; and

 

		6.35.2	a
                                            certificate issued by each consultant approved by the Landlord that the work has been carried
                                            out satisfactorily.

 

The
Tenant must pay the Landlord’s costs in relation to work

 

	6.36	Notwithstanding
                                            clause 6.34, the Tenant must pay for any costs the Landlord reasonably incurs because:

 

		6.36.1	the
                                            Tenant asks for the Landlord’s permission to do work;

 

		6.36.2	work
                                            by the Tenant is not done properly; or

 

		6.36.3	the
                                            Landlord does work (to the Premises, the Building, any equipment in it, or any of its Services)
                                            because of work the Tenant has done or proposes to do.

 

	Signs	

 

	6.37	The
                                            Tenant cannot do, or allow to be done, any of the following without the Landlord’s
                                            prior written consent:

 

		6.37.1	erect
                                            any signs, notices or advertisements on the external walls or in any of the windows of the
                                            Premises;

 

		6.37.2	erect
                                            any signs, notices or advertisements within the Premises which are visible from outside the
                                            Premises; or

 

		6.37.3	install
                                            either temporarily or permanently any flashing or moving lights or signs on the external
                                            walls or in any of the windows of the Premises.

 

	6.38	The
                                            Tenant must ensure that any sign, notice or advertisement complies with the requirements
                                            of any relevant Authority.

 

The
Tenant must comply with Laws

 

	6.39	The
                                            Tenant must (at its cost) comply with any Law that:

 

		6.39.1	affects
                                            this Lease; or

 

		6.39.2	relates
                                            to the Tenant’s occupation or use of the Premises.

 

    	 	 	19

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	6.40	The
                                            Tenant must tell the Landlord immediately when the Tenant becomes aware of any such Law.

 

	6.41	Nothing
                                            in clause 6.39 requires the Tenant to perform any structural work or to install additional
                                            Services, unless such work or additional Services are required because of the Tenant’s
                                            particular use of the Premises.

 

Occupational
Safety and Health

 

	6.42	The
                                            Tenant agrees that:

 

		6.42.1	for
                                            the purposes of the Occupational Safety and Health Act 1984 (WA), it has control of
                                            the Premises; and

 

		6.42.2	it
                                            will comply with the provisions of that Act which must be complied with by a person having
                                            control of the Premises.

 

Tenant
must comply with rules relating to the Building

 

	6.43	The
                                            Tenant must comply with any rules the Landlord makes in relation to access and use of the
                                            Premises. The Tenant must also comply with any rules the Landlord has made or makes in relation
                                            to access to and use of the Building. The rules must not unreasonably affect the Tenant’s
                                            rights.

 

The
Tenant’s duty in relation to a subdivision

 

	6.44	The
                                            Tenant must consent to a subdivision of the Building if the Landlord asks the Tenant to.
                                            If the Landlord subdivides the Building and creates a strata company within the meaning of
                                            the Strata Titles Act 1985 (WA), the Tenant must comply with any Law or requirement
                                            that becomes applicable.

 

The
Landlord’s right to inspect Premises

 

	6.45	The
                                            Landlord:

 

		6.45.1	may
                                            inspect the Premises at any reasonable time; and

 

		6.45.2	must
                                            give the Tenant reasonable notice prior to making that inspection, except in an emergency
                                            (when no notice is required).

 

Inspection
by prospective tenants or purchasers

 

	6.46	The
                                            Landlord may, after giving reasonable notice to the Tenant, do each of the following:

 

		6.46.1	enter
                                            the Premises to allow prospective tenants or purchasers to inspect them;

 

		6.46.2	in
                                            order to relet the Premises, within three months before the expiration of the Term, put signs
                                            outside the Premises with information indicating the availability of the Premises for lease;
                                            or

 

		6.46.3	at
                                            any time, put a sign outside the Premises with information indicating that the Premises are
                                            for sale.

 

    	 	 	20

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	7	Liability,
    insurance and indemnity

 

Exclusion
of liability

 

	7.1	The
    Landlord is not liable for any damage or loss to any property, or injury to any person, no matter how it happens, except to the extent
    that the Landlord (or someone the Landlord is responsible for) causes that damage, loss or injury.

 

The
Tenant’s duty to arrange insurance

 

	7.2	The
    Tenant must arrange and maintain insurance on usual terms with an insurer authorised under the insurance Act 1973 (Cth) against
    each of the following:

 

	 	7.2.1	public
    liability in respect of the Premises;
	 	 	 
	 	7.2.2	damage
    to, and loss of, internal and external glass (including plate glass), doors, display cases, fittings, chattels, the Landlord’s
    Fixtures and the Tenant’s Property, that are on or in the Premises; and
	 	 	 
	 	7.2.3	employer’s
    liability in respect of the Tenant’s employees (including workers’ compensation insurance).

 

	7.3	The
    Tenant must:

 

	 	7.3.1	arrange
    for the insurance to commence from the beginning of the Lease;
	 	 	 
	 	7.3.2	maintain
    that insurance for the Term and any additional period during which the Tenant uses the Premises; and
	 	 	 
	 	7.3.3	on
    or before the earlier to occur of the:

 

	 	(a)	Commencement
    Date; or
	 	 	 
	 	(b)	the
    date the Tenant is given access to or possession of the Premises,

 

	 	give
    to the Landlord a copy of the insurance policy, certificate of currency or receipt in respect of that insurance without delay when
    requested by the Landlord.

 

Details
of insurance cover

 

	7.4	The
    following applies to the insurance the Tenant must arrange and maintain:

 

	 	7.4.1	the
    public liability insurance must be for at least $20 million or a higher amount the Landlord reasonably requires from time to time;
	 	 	 
	 	7.4.2	the
    insurance against damage or loss must:

 

	 	(a)	be
    for at least the full replacement cost of the relevant property;

 

    	 	 	21

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	(b)	include
    cover against malicious acts by third parties; and
	 	 	 
	 	(c)	contain
    such other terms as are acceptable to the Landlord (acting reasonably).

 

	7.5	The
    public liability insurance policy and the policy of insurance against damage to or loss of the property must be endorsed to note
    the interest of the Landlord in the Premises.

 

The
Landlord’s duty to insure

 

	7.6	The
    Landlord must make sure that the Building is kept insured on usual terms with an insurer authorised under the Insurance Act 1973
    (Cth). The Landlord must also insure against public liability in relation to the Building and the Common Areas.

 

The
Tenant’s other obligations in relation to insurance

 

	7.7	The
    Tenant must not do, fail to do, or allow anything to be done or not done that might:

 

	 	7.7.1	increase
    the cost of any insurance the Tenant or the Landlord arranges; or
	 	 	 
	 	7.7.2	adversely
    affect the Tenant’s or the Landlord’s rights under any insurance the Tenant or the Landlord arranges.

 

	7.8	The
    Tenant must pay the Landlord for any increase in the cost of any insurance the Landlord arranges which results from anything the
    Tenant does, fails to do, or allows to be done or not done.

 

Indemnity

 

	7.9	The
    Tenant is responsible for, and must indemnify the Landlord against, any liability, loss, claim, damage, cost or expense arising out
    of its use or occupation of the Premises.
	 	 
	7.10	This
    does not apply to the extent caused or contributed to by the Landlord or anyone for whom the Landlord is responsible.

 

	8	Damage
    and repairs

 

The
Tenant’s responsibilities

 

	8.1	The
    Tenant is responsible for all damage to the Premises, except to the extent that it is caused by the Landlord or anyone the Landlord
    is responsible for.
	 	 
	8.2	The
    Tenant is responsible for any damage to which the Tenant or anyone the Tenant is responsible for causes to the Building.

 

    	 	 	22

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

The
Landlord’s responsibilities

 

	8.3	The
    Landlord is responsible for each of the following:

 

	 	8.3.1	structural
    damage, except damage the Tenant is responsible for under the previous clause;
	 	 	 
	 	8.3.2	items
    of a capital nature; and
	 	 	 
	 	8.3.3	damage
    caused by the Landlord or by the Landlord’s employees, agents or contractors.

 

The
Landlord’s duty to fix damage

 

	8.4	The
    Landlord must repair damage that the Landlord is responsible for under the previous clause unless the Landlord reasonably believes
    it is impracticable or undesirable to do so.

 

Effect
of major damage on Lease

 

	8.5	If
    the Premises or the Building are damaged to such an extent that the Tenant is completely unable to use the Premises or to get access
    to them, the Landlord must notify the Tenant in writing within a reasonable time of what the Landlord intends to do.
	 	 
	8.6	If
    the Landlord is responsible for the damage under clause 8.5, the following rules apply:

 

	 	8.6.1	If
    the Landlord notifies the Tenant that the Landlord does not intend to repair the damage, the Lease ends on the day the Landlord states
    in the notice. It must be at least 30 days after the date the Landlord gives the Tenant the notice.
	 	 	 
	 	8.6.2	If:

 

	 	(a)	the
    Landlord does not give the Tenant the notice within a reasonable time; or
	 	 	 
	 	(b)	the
    Landlord notifies the Tenant that the Landlord intends to repair the damage but fails to do so within a reasonable time,

 

	 	the
    Tenant may end the Lease by giving the Landlord at least 30 days written notice.

 

	8.7	If:

 

	 	8.7.1	the
    Landlord is not responsible for the damage under clause 8.5; and
	 	 	 
	 	8.7.2	it
    is apparent that the Tenant will be completely unable to use the Premises for at least 6 months,

 

	 	either
    the Landlord or the Tenant may end this Lease by giving the other 30 days written notice.

 

    	 	 	23

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	8.8	Notwithstanding
    any other provision of this Lease, the Tenant is not entitled to end this Lease if the Landlord is unable to recover from its insurer
    because of something the Tenant, or someone the Tenant is responsible for, did or failed to do.

 

Effect
of major damage on Rent 

 

	8.9	If
    the Premises or the Building are damaged in such a way that the Tenant is completely unable to use the Premises or to get access
    to them, the Tenant does not have to pay Rent until the Tenant is able to use the Premises again.
	 	 
	8.10	Clause
    8.9 does not apply if:

 

	 	8.10.1	the
    Tenant is responsible for the damage under clause 8.9; or
	 	 	 
	 	8.10.2	the
    Landlord loses the benefit of the Landlord’s insurance because of something the Tenant or someone the Tenant is responsible
    for did or failed to do.

 

	8.11	The
    Tenant will have to pay a proportion of the Rent if, despite damage to the Building or the Premises, the Tenant is able to use the
    Premises to some extent.
	 	 
	8.12	The
    Landlord will set the proportion according to the effect the damage has on the Tenant’s ability to use the Premises.

 

Dispute
about application of clauses 8.11 and 8.12

 

	8.13	If
    a dispute arises in relation to the application of clauses 8.11 and 8.12, a member of the Australian Property Institute (or a successor),
    chosen by the President of the State or Territory Division, will decide it.
	 	 
	8.14	He
    or she will do so as an expert, not as an arbitrator.
	 	 
	8.15	Either
    the Landlord or the Tenant may ask the President to choose a member.
	 	 
	8.16	The
    Tenant and the Landlord must pay their own costs, and pay half each of the cost of the member.
	 	 
	8.17	Until
    the dispute is resolved, the Tenant must continue to pay the proportion of rent the Landlord has set.

 

	9	Environmental
    matters

 

Environmental
Rating 

 

	9.1	The
    Tenant must do what is reasonably necessary or reasonably desirable, at the direction of the Landlord, to assist the Landlord to:

 

	 	9.1.1	maintain
    any Environmental Rating that applies to the Building; or

 

    	 	 	24

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	9.1.2	if
    requested by the Landlord, obtain an Environmental Rating in respect of the Building.

 

	9.2	The
    Tenant’s obligations under clause 9.1 include complying with any reasonable directions of the Landlord relating to:

 

	 	9.2.1	waste
    and recycling management;
	 	 	 
	 	9.2.2	indoor
    air quality guidelines;
	 	 	 
	 	9.2.3	energy
    use guidelines;
	 	 	 
	 	9.2.4	water
    use guidelines; and
	 	 	 
	 	9.2.5	emission
    guidelines.

 

	9.3	The
    Tenant must not do anything which may:

 

	 	9.3.1	have
    a negative impact on the Building’s Environmental Rating; or
	 	 	 
	 	9.3.2	prejudice
    the Landlord’s ability to obtain an Environmental Rating for the Building.

 

	9.4	The
    Tenant will cooperate with the Landlord to enable the Landlord to maintain and improve the environmental performance of the Building.

 

Greenhouse
gas emissions and energy reporting

 

	9.5	Despite
    any other provision of this Lease, the Tenant must introduce and implement all:

 

	 	9.5.1	operating
    policies;
	 	 	 
	 	9.5.2	health
    and safety policies; and
	 	 	 
	 	9.5.3	environmental
    policies,

 

	 	relating
    to the Premises.

 

	9.6	The
    Tenant must comply with all reporting obligations imposed on the Tenant by the Sustainability Legislation relating to the Premises.
	 	 
	9.7	The
    Tenant must cooperate with the Landlord to enable the Landlord to comply with the Lessor’s obligations under the Sustainability
    Legislation including:

 

	 	9.7.1	keeping
    accurate records and making available to the Landlord all Energy Information and operating, health, safety and environmental policies
    relating to the Tenant’s use and occupation of the Premises;
	 	 	 
	 	9.7.2	providing
    all information, Energy Information and records that the Landlord reasonably requires the Tenant to provide to assist the Landlord
    to comply with its obligations under the Sustainability Legislation; and

 

    	 	 	25

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	9.7.3	providing
    the Landlord with access to the Premises for the purpose of collecting the Energy Information or otherwise in connection with the
    Landlord’s obligations under the Sustainability Legislation.

 

	9.8	The
    Landlord has the right to use the Tenant’s Energy Information, records and information obtained under this clause 9:

 

	 	9.8.1	as
    required by Law; and
	 	 	 
	 	9.8.2	in
    any way the Landlord chooses provided the identity of the Tenant is not disclosed if the Tenant requests the Landlord to keep the
    Tenant’s identity confidential.

 

	10	Extension
    of this Lease

 

The
Tenant’s right to an extension

 

	10.1	Subject
    to clause 10.2, the Tenant only has the right to extend this Lease if an extension period is stated in Item 10 of the Reference Schedule.
	 	 
	10.2	The
    Tenant does not have the right to extend this Lease if any of the following applies:

 

	 	10.2.1	the
    Landlord has given the Tenant notice of a breach and the Tenant is still in breach when the Tenant gives the Landlord the extension
    notice or when this Lease ends;
	 	 	 
	 	10.2.2	the
    Tenant has been frequently in breach during the period of this Lease and the Landlord has given the Tenant notice of those breaches;
    or
	 	 	 
	 	10.2.3	this
    Lease has ended.

 

How
the Tenant may exercise its option to extend

 

	10.3	To
    exercise the right of extension, the Tenant must give the Landlord notice in writing between 6 and 3 months before this Lease is
    due to end that it wishes to extend this Lease.

 

Loss
of right to extend

 

	10.4	If:

 

	 	10.4.1	the
    Tenant gives the notice referred to in clause 10.3 but between the date of the notice and the last day of the Term:

 

	 	(a)	the
    Tenant breaches another obligation and it is not remedied or waived; or
	 	 	 
	 	(b)	any
    of the events in clause 15.8 occurs,

 

	 	the
    Tenant will lose its right to extend this Lease.

 

    	 	 	26

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Terms
applicable to extension

 

	10.5	The
    extension of lease will be:

 

	 	10.5.1	for
    the period stated in Item 10 of the Reference Schedule; and
	 	 	 
	 	10.5.2	on
    the same conditions as this Lease except that:

 

	 	(a)	the
    extension will commence on the day after this Lease ends;
	 	 	 
	 	(b)	the
    Rent for the extension will be calculated in the way set out in Item 10 of the Reference Schedule;
	 	 	 
	 	(c)	the
    extension will not include any further right of extension (except any right stated in Item 10 of the Reference Schedule); and
	 	 	 
	 	(d)	if
    Item 10 of the Reference Schedule creates a right to more than one extension period, the extension will not include the earlier of
    those rights.

 

Documentation

 

	10.6	The
    Tenant and Guarantor must (at the Tenant’s cost) promptly sign a deed of extension, to be prepared by the Landlord’s solicitors,
    when requested to do so by the Landlord.

 

	11	Holding
    Over

 

	11.1	If
    the Tenant, with the Landlord’s consent, continues to occupy the Premises after the expiration of the Term, the Tenant is a
    monthly tenant of the Premises and:

 

	 	11.1.1	the
    monthly tenancy may be terminated by the Tenant or the Landlord giving to the other at least one month’s written notice which
    may expire on any day;
	 	 	 
	 	11.1.2	the
    monthly Rent is the same as the Rent payable immediately before the end of the Term; and
	 	 	 
	 	11.1.3	all
    the other provisions of this Lease apply to the monthly tenancy, except any right to extend this Lease, insofar as they are consistent
    with a monthly tenancy.

 

    	 	 	27

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	12	Assignment
    and subletting

 

No
interest to be created without consent

 

	12.1	Subject
    to clause 12.2, the Tenant must not:

 

	 	12.1.1	assign
    this Lease;
	 	 	 
	 	12.1.2	create
    in favour of any person an interest in this Lease or the Premises; or
	 	 	 
	 	12.1.3	allow
    any person to use or occupy the Premises,

 

	 	without
    the Landlord’s consent.

 

Requirements
for assignment and subletting

 

	12.2	The
    Tenant may assign the Lease or sublet the Premises if each of the following is done:

 

	 	12.2.1	at
    least 21 days before the date of the proposed change in the occupation of the Premises, the Tenant:

 

	 	(a)	applies
    for the Landlord’s consent;
	 	 	 
	 	(b)	supplies
    to the Landlord evidence reasonably acceptable to the Landlord that the proposed assignee or sub-tenant is:

 

	 	(i)	experienced
    in and of good reputation in relation to conducting a business permitted by this Lease; and
	 	 	 
	 	(ii)	financially
    able to conduct that business; and

 

	 	(c)	the
    Landlord consents to the assignment or sub-lease;

 

	 	12.2.2	the
    Tenant delivers to the Landlord, before the date of the proposed change in possession, a completed agreement (or deed), in a form
    prepared, or approved, by the Landlord’s solicitors, by which:

 

	 	(a)	the
    proposed assignee or sub-tenant agrees with the Landlord to be bound by this Lease as and from the date that the assignment or sub-lease
    takes effect; and
	 	 	 
	 	(b)	any
    guarantor required under clause 12.2.5 gives to the Landlord a guarantee and indemnity in the terms of that clause in respect of
    the liability of the assignee or sub-tenant;

 

	 	12.2.3	the
    Tenant is either not in breach of this Lease, has remedied any outstanding breach, or the Landlord has waived any such breach;

 

    	 	 	28

     

    

  

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	12.2.4	the
    Tenant pays to the Landlord on demand the Landlord’s costs and expenses (including legal costs on a full indemnity basis):
	 	 	 
	 	 	(a)	incurred
    in making enquiries to satisfy itself concerning the matters specified in clause 12.2.1(b); and
	 	 	 	 
	 	 	(b)	in
    connection with the preparation and completion of the assignment or sub-lease and any other documents;
	 	 	 	 
	 	12.2.5	 if
    requested by the Landlord, the Tenant arranges for the proposed assignee
    or sub-tenant to obtain from a bank or other person acceptable to the Landlord a guarantee of the obligations under this Lease to
    be assumed by the proposed assignee or sub-tenant; and
	 	 	 	 
	 	12.2.6	in
    the case of an assignment, the Tenant has withdrawn any caveat lodged by it in respect of its interest in the Premises.

 

	Tenant remains liable
	 
	12.3	The
    Tenant remains liable under this Lease if:
	 	 
	 	12.3.1	the
    Tenant assigns this Lease; or
	 	 	 
	 	12.3.2	creates
    an interest in this Lease or the Premises in favour of any person, 
	 	 	 
	 	whether or not the Tenant has complied with the requirements set out in clause 12.2.

 

 

 

	13	Change
    in the Tenant’s ownership or control
	 	 
	13.1	If
    the Tenant is a company, the Tenant must get the Landlord’s written consent to anything which changes, or which the Landlord
    reasonably believes changes:
	 	 
	 	13.1.1	the
    beneficial ownership of at least 50% of the Tenant’s shares or, if the Tenant is trustee for a trust, 50% of the units in the
    trust; or
	 	 	 
	 	13.1.2	the
    effective control of the company or the trust,
	 	 	 
	 	from
    that as at the date of execution of this Lease.
	 	 
	13.2	This does not apply in relation to the sale of shares (in the Tenant or in the Tenant’s holding company) that are listed on a recognised stock exchange.
	 	 	 
	13.3	The Landlord will give consent if each of the following conditions is met:
	 	 	 
	 	13.3.1	the
    Tenant is not in breach of this Lease;
	 	 	 
	 	13.3.2	the
    change does not affect the Tenant’s financial security or the Tenant’s ability to run the business properly;

 

    	 	 	29

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	13.3.3	the
    Tenant gives the Landlord any information the Landlord reasonably requires about the change in interest or control;

    

	 	 	 
	 	13.3.4	any
    guarantee or other security the Landlord reasonably requires is provided; and

    

	 	 	 
	 	13.3.5	the
Tenant pays the Landlord any costs the Landlord reasonably incurs In relation to the change.

 

 

 

	14	Trustee
    provisions
	 	 	 	 
	14.1	If the Tenant is a trustee, it represents and warrants in favour of the Landlord that:
	 	 	 
	 	14.1.1	 it has power under the relevant trust deed to enter into and perform its obligations under this Lease;
	 	 	 	 
	 	14.1.2	 the trust was validly created and is in existence and it was validly appointed as and is the sole trustee of the trust;
	 	 	 	 
	 	14.1.3	it has unrestricted right of indemnity out of the trust’s assets;
	 	 	 	 
	 	14.1.4	 no part of the trust’s assets have been re-settled or set aside;
	 	 	 	 
	 	14.1.5	 there has been no capital distribution from, and no beneficiary has been allowed to use or occupy, the trust’s assets;
	 	 	 	 
	 	14.1.6	 it has not blended or mixed the trust’s assets; and
	 	 	 	 
	 	14.1.7	 it is not in default of any provision of the relevant trust deed.
	 	 	 	 
	14.2	The Tenant must not do any of the following:
	 	 	 
	 	14.2.1	 default under the relevant trust deed;
	 	 	 	 
	 	14.2.2	allow its right of indemnity or subrogation to be restricted and must on demand from the Landlord exercise its rights of indemnity and subrogation against the trust’s assets;
	 	 	 
	 	14.2.3	 otherwise than in the ordinary course of business:
	 	 	 	 
	 	 	(a)	allow
the compromise of any claim relating to the trust’s assets; or
	 	 	 	 
	 	 	(b)	 part
with possession of any of the trust’s assets;
	 	 	 	 
	 	14.2.4	allow any capital distribution under the trust, exercise any power of determination, revocation, appropriation or advancement, or permit any settlement, setting aside, abandonment or transfer to other trusts of funds of the trust except the distribution of trust income in terms of the relevant trust deed or so as not to infringe the Law against perpetuities or relating to accumulation;

 

    	 	 	30

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	14.2.5	retire as trustee of the trust, permit the appointment of another trustee or allow the trust deed to be varied; or
	 	 	 	 
	 	14.2.6	blend or mix the trust’s assets.
	 	 	 	 
	14.3	 The Tenant acknowledges and agrees that this Lease will bind it both personally and in its capacity as trustee.

 

 

 

	15	Breach
    of this Lease
	 	 
	The
    Landlord’s right to require the Tenant to correct breach
	 
	15.1	If
    the Tenant breaches an obligation under this Lease, the Landlord may give the Tenant a notice that the Tenant is in breach, and require
    the Tenant to correct it within a time specified in the notice.
	 	 
	15.2	If
    the Tenant fails to remedy the breach, the Landlord may do anything that the Landlord reasonably believes is necessary or desirable
    to correct it.
	 	 
	15.3	The
    Tenant must reimburse the Landlord for any costs the Landlord incurs in correcting the breach.
	 	 
	15.4	Nothing
    in clauses 15.1-15.3 affects any other right of the Landlord in respect of that breach.

 

	Damages
    in case of breach
	 	 	 
	15.5	The Tenant must:
	 	 	 
	 	15.5.1	reimburse
    the Landlord for any costs the Landlord incurs as a result of any breach of this Lease by the Tenant; and
	 	 	 
	 	15.5.2	pay
    damages to the Landlord for any loss the Landlord suffers as a result of a breach of this Lease by the Tenant.
	 	 	 
	Landlord’s
    right to terminate
	 
	15.6	Subject to clause 15.7, if the Tenant breaches an obligation under this Lease, the Landlord may terminate this Lease by:
	 	 	 
	 	15.6.1	re-entering
    the Premises without notice; or
	 	 	 
	 	15.6.2	written
    notice to the Tenant.

 

    	 	 	31

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	15.7	When section 81 of the Property Law Act 1969 (WA) applies, the Landlord may only terminate this Lease if:
		 	 
		15.7.1 	the
    Landlord has first given to the Tenant a notice which complies with that section; and
	 	 	 
		15.7.2 	the
    Tenant has failed to comply with that notice.
	 	 	 
	The
    Landlord’s entitlement to end this Lease if this Tenant is insolvent
	 
	15.8	The
    Landlord may end this Lease if any of the following occurs:
	 	 
	 	15.8.1	the
    Tenant or a Guarantor are (or state that they are) bankrupt (as defined by the Bankruptcy Act 1966 (Cth));
	 	 	 
	 	15.8.2	the
    Tenant or a Guarantor are (or state that they are) an insolvent under administration or insolvent (each as defined by the Corporations
    Act 2001 (Cth));
	 	 	 
	 	15.8.3	the
    Tenant or a Guarantor are taken (under section 459F of the Corporations Act 2001 (Cth)) to have failed to comply with a statutory
    demand;
	 	 	 
	 	15.8.4	the
    Tenant or a Guarantor has a receiver, manager, receiver and manager or a controller (each as defined in the Corporations Act 2001
    (Cth)) appointed in respect of its business or any of its assets;
	 	 	 
	 	15.8.5	the
    Tenant or a Guarantor are taken to be in winding up (pursuant to section 513A or 513B of the Corporations Act 2001 (Cth));
	 	 	 
	 	15.8.6	the
    Tenant or a Guarantor enters into (under section 435C(1) of the Corporations Act 2001 (Cth)) any form of administration;
	 	 	 
	 	15.8.7	the
    Tenant or a Guarantor are subject to any arrangement, moratorium, protected from creditors under any statute, or in any other arrangement
    for the benefit of the creditors;
	 	 	 
	 	15.8.8	an
    application or order has been made, resolution passed, proposal put forward, or any other action taken which is preparatory to or
    could result in any of the things referred to above. This does not apply if the purpose of the order or resolution is for reconstruction
    or amalgamation and the Tenant or the Guarantor (as the case may be) has the Landlord’s consent; or
	 	 	 
	 	15.8.9	something
    having a substantially similar effect to any of these things happens in connection with the Tenant or a Guarantor under the law of
    any jurisdiction.

 

    	 	 	32

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	Damages
    for breach of Essential Terms
	 
	15.9	In addition to any other remedy or entitlement of the Landlord, including the right to end this Lease, each of the following applies:
	 	 	 	 
	 	15.9.1	 the Tenant must compensate the Landlord in respect of any breach of an Essential Term;
	 	 	 	 
	 	15.9.2	the Landlord is entitled to recover damages from the Tenant in respect of each breach;
	 	 	 	 
	 	15.9.3	the Tenant agrees with the Landlord (which agreement will survive this Lease being ended) that if this Lease is ended for:
	 	 	 	 
	 	 	(a)	breach
of an Essential Term by the acceptance by the Landlord of a repudiation of this Lease by the Tenant; or
	 	 	 	 
	 	 	(b)	following
the failure by the Tenant to comply with a notice given to the Tenant to remedy any default;
	 	 	 	 
	 	 	the Tenant must pay to the Landlord the total of:
		
	 	 	 
	 	 	(c)	the
Rent then payable under this Lease for the unexpired balance of the Term;
	 	 	 	 
	 	 	(d)	the
Operating Costs then payable under this Lease for the unexpired balance of the Term; and
	 	 	 	 
	 	 	(e)	any
loss, damage and expense incurred, or reasonably expected to be incurred, by the Landlord as a result of the ending of this Lease including
all costs of reletting or attempting to relet the Premises,
	 	 	 	 
	 	 	LESS:	 
	 	 	 	 
	 	 	(f)	the
    Rent and other money which the Landlord reasonably expects to obtain by reletting the Premises between the date the Lease is ended
    and the date on which this Lease would have ended if it had not been terminated by the Landlord;
	 	 	 	 
	 	15.9.4	the Landlord must take reasonable steps to mitigate its damages; and
	 	 	 	 
	 	15.9.5	 the Landlord is not required to offer or accept Rent or terms which are the same or similar to the Rent or terms contained or implied in this Lease.
	 	 	 	 
	15.10	A certificate given to the Tenant by the Landlord of the amount of the Rent and Operating Costs under clause 15.9 will be conclusive as between the parties except in the case of manifest error.
	 	 	 
	The
    Landlord’s duty to try to relet
	 
	15.11	If the Landlord ends this Lease in accordance with this clause 15, the Landlord must use its best endeavours to re-let the Premises.

 

    	 	 	33

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	Tender of money after the Landlord ends this Lease
	 	 	 
	15.12	If the Landlord accepts money from the Tenant after the Landlord ends this Lease, the Landlord will apply it:
	 	 
		15.12.1	first, on account of Rent and other money the Tenant owed the Landlord immediately after the Landlord ended this Lease; and
	 	 	 
		15.12.2	secondly (and only then) on account of the Landlord’s costs of re-entry.
	 	 	 
	No
    loss of rights
	 
	15.13	If the Landlord brings action against the Tenant for damages, that does not affect any other right of the Landlord, including the Landlord’s right to end the Lease. The Landlord’s right to damages is not affected by any of the following:
	 	 
		15.13.1	the Tenant abandoning the Premises;
	 	 	 
		15.13.2	the Landlord re-entering the Premises or ending this Lease;
	 	 	 
		15.13.3	the Landlord accepting the Tenant’s repudiation of this Lease; or
	 	 	 
		15.13.4	anything that amounts to a surrender of this Lease.

 

 

 

	16	Tenant’s obligations at the end of this Lease
	 	 	 
	16.1	In this clause 16, Make Good includes,
    but is not limited to, the following: 
	 	 	 	 
		16.1.1	removal from the Premises of all fixtures, fittings, furnishings, cables, conduits and wires and Tenant’s Property required by the Landlord to be removed; 
	 	 	 	 
		16.1.2	proper repair of any damage arising from the Tenant’s compliance with clause 16.1.1 of this definition;
	 	 	 	 
		16.1.3	 reinstatement of the structure of any part of the Premises which has been penetrated or altered by or on behalf of the Tenant; 
	 	 	 	 
		16.1.4	 thorough cleaning of the Premises and removal of all rubbish, waste and materials brought onto, or left in or about the Premises, by anyone other than the Landlord or someone the Landlord is responsible for; 
	 	 	 	 
		16.1.5	 decontamination and remediation of any part of the: 
	 	 	 	 
		 	(a)	Premises;
	 	 	 	 
		 	(b)	the
    Landlord’s Property; or
	 	 	 	 
		 	(c)	any
    adjoining property,
	 	 	 	 
		 	which is or becomes contaminated or polluted as a result of the Tenant’s use or occupation of the Premises;

 

    	 	 	34

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

		16.1.6	 if air-conditioning equipment in the Premises is the Landlord’s Property, the provision (at the Tenant’s cost) of an AC Report. The Tenant must comply with the Landlord’s reasonable directions in relation to any air-conditioning system at the Tenant’s cost. This includes, without limitation, carrying out any repairs and maintenance (including repairs and maintenance of a capital nature) recommended in the AC Report;
	 	 	 	 
		16.1.7	if the air-conditioning equipment is the Tenant’s Property, to remove the air-conditioning system and make good any damage caused by such removal. However, if the Tenant requests that the air-conditioning system is to remain on the Premises at the expiry or sooner determination of that term:
	 	 	 	 
		 	(a)	the
Tenant must obtain an AC Report as contemplated under clause 16.1.6; and
	 	 	 	 
		 	(b)	if
the AC Report concludes that the air-conditioning equipment is not in good working order and condition, the Landlord may require the
air-conditioning system to be removed. In that case, the Tenant must remove the air-conditioning system and make good any damage caused
by its removal; 
	 	 	 	 
		16.1.8	 to properly repair any damage to the roller doors forming part of the Premises; and 
	 	 	 	 
		16.1.9	to
replace any light globes, tubes or lamps that are not working, 
	 	 	 
	 	and, subject to fair wear and tear:
	 	 	 
		16.1.10	 to reinstate the Premises and the Services to their condition as at the Commencement Date and leave them in good repair and condition, having regard to the Tenant’s obligations under this Lease, clean and free from rubbish and in a safe condition; 
	 	 	 	 
		16.1.11	if the Landlord does not require it to be removed, to put the carpet or other floor covering in good repair, and condition, including by replacing any cut out areas with new carpet or other floor covering approved by the Landlord; and
	 	 	 	 
		16.1.12	 to put the ceiling support grid, light fittings and ceiling tiles into good repair and condition.

 

	The Tenant’s duties when this
    Lease ends or is ended
	 	 
	16.2	 When this Lease ends or is ended, and the Tenant has not obtained the Landlord’s written permission to continue to occupy and use the Premises, the Tenant must:
	 	 	 	 
	 	16.2.1	  leave the Premises;
	 	 	 	 
	 	16.2.2	hand
    over any keys and other security devices; and 
	 	 	 
	 	16.2.3	allow the Landlord to take over the Premises and the Landlord’s property
    in the Premises.

 

    	 	 	35

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	16.3	The Tenant must also do each of the following:
	 	 	 	 
	 	16.3.1	 remove the Tenant’s Property from the Premises;
	 	 	 	 
	 	16.3.2	 hand over any keys and other security devices in respect of the Premises;
	 	 	 	 
	 	16.3.3	 Make Good the Premises and the Services; and
	 	 	 	 
	 	16.3.4	  repair any damage to the Premises caused:
	 	 	 	 
	 	 	(a)	by
the removal of the Tenant’s Property; or
	 	 	 	 
	 	 	(b)	in
    Making Good the Premises and the Services.
	 	 	 	 
	16.4	The Tenant must reimburse the Landlord for any cost the Landlord incurs because the Tenant fails to do something the Tenant is required to do under clauses 16.2 or 16.3.
	 	 	 
	16.5	The
    Landlord may treat as the Landlord’s own any property the Tenant leaves behind at the Premises when this Lease ends or is ended. 

 

 

 

	17	Notices

 

Form
and delivery

 

	17.1	A
                                            notice, consent, information or request that must or may be given or made to a party under
                                            this Lease is only given or made if it is:

 

		17.1.1	delivered
                                            or posted to that party at the address stated in Item 1 of the Reference Schedule;
	 	 	 
		17.1.2	faxed
                                            to that party at the fax number stated in Item 1 of the Reference Schedule; or
	 	 	 
		17.1.3	emailed
                                            to that person at the email address stated in Item 1 of the Reference Schedule,

 

or
to such other address, fax number or email (as the case may be) that has been notified by that party to the other parties in writing,
from time to time.

 

Execution
of emails

 

	17.2	If
                                            notice is given by email, the sending party must ensure that it is either signed by means
                                            of an electronically produced signature of a person authorised by that party to send the
                                            email or states that it is being sent by a person authorised to send the email on behalf
                                            of that person.

 

    	 	 	36

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Receipt
and effect

 

	17.3	A
                                            notice, consent, information or request is to be treated as given or made at the following
                                            time if it is:

 

	 	17.3.1	delivered, when it is left at the relevant address;
	 	 	 
		17.3.2	sent
                                            by post, 3 Business Days after it is posted;
	 	 	 
	 	17.3.3	sent by fax, as soon as the sender receives from the sender’s
fax machine a report of an error free transmission to the correct fax number; or
	 	 	 
	 	17.3.4	sent by email, as soon as it enters the recipient’s information
system.

 

	17.4	If:

 

	 	17.4.1	a notice, consent, information or request is delivered;
	 	 	 
		17.4.2	an
                                            error free transmission report in relation to a fax of a notice, consent, information or
                                            request is received; or
	 	 	 
	 	17.4.3	the email enters the recipient’s information system,

 

after
the normal business hours of the party to whom it is delivered or sent, it is to be treated as having been given or made at 9.00 am the
next Business Day.

 

 

 

	18	Caveat

 

	18.1	The Tenant
  must not lodge an absolute caveat over the title of the Land to protect its interest under this Lease.

 

	18.2	The
                                            Tenant must immediately withdraw any caveat lodged by it, or on its behalf, over the title
                                            of the Land under this Lease when this Lease ends or is ended.

 

 

 

	19	Power
                                            of attorney

 

	19.1	The
                                            Tenant, for valuable consideration, irrevocably appoints the Landlord and every manager,
                                            director and secretary of the Landlord (all jointly and severally) the Tenant’s attorney
                                            for the purpose of:

 

		19.1.1	withdrawing
                                            any caveat which the Tenant is required to withdraw or which it lodges in breach of the preceding
                                            clause;
	 	 	 
		19.1.2	if
                                            this Lease is registered, surrendering this Lease after the termination of this Lease; and

 

    	 	 	37

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

		19.1.3	signing
                                            any necessary withdrawal of caveat or surrender of lease.

 

	19.2	The
                                            Landlord may register this deed as a power of attorney at any time even after the termination
                                            of this deed, if that is required for the exercise of any power.
	 	 
	19.3	The
                                            Tenant ratifies and confirms any power when exercised by the Landlord under this clause,
                                            as attorney and agent for the Tenant.
	 	 
	19.4	A
                                            statutory declaration of an officer of the Landlord concerning the circumstances in which
                                            the Landlord exercised this power will be conclusive evidence for the purpose of registration
                                            of any document.

 

 

 

	20	WAPC
                                            consent

 

	20.1	If
                                            for any reason this Lease requires by law the consent of the Western Australian Planning
                                            Commission, this Lease is made expressly subject to, and conditional upon the granting of
                                            consent of the Western Australian Planning Commission.

 

 

 

	21	Retail
                                            Shops Act

 

	21.1	If:

 

		21.1.1	at
                                            any time the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA)
                                            applies to this Lease; and
	 	 	 
		21.1.2	a
                                            provision of that Act conflicts with and prevails over a provision of this Lease,

 

each
conflicting provision of this Lease is deemed to be amended to the extent necessary to comply with that Act.

 

 

 

	22	Special
                                            conditions

 

	22.1	The
                                            special conditions specified in Schedule 2 are incorporated into, and form part of, this
                                            Lease.

 

	22.2	To
                                            the extent of an inconsistency between a special condition and another term of this Lease,
                                            the special condition will prevail.

 

    	 	 	38

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

 

 

	23	Guarantee
                                            and indemnity of the Tenant’s obligations under this Lease

 

Guarantor’s
main obligations

 

	23.1	The
                                            Guarantor:

 

		23.1.1	guarantees
                                            that the Tenant will do everything that the Tenant is required to do under this Lease; and
	 	 	 
		23.1.2	will
                                            separately continually indemnify the Landlord against any loss that the Landlord suffers
                                            because the Tenant fails to comply with this Lease.

 

	23.2	The
                                            Guarantor is liable under this guarantee and indemnity even if one or more of the following
                                            happens:

 

		23.2.1	the
                                            Landlord does not enforce this Lease against the Tenant or the Landlord delays in enforcing
                                            it;
	 	 	 
		23.2.2	the
                                            Landlord does, or fails to do, something else which, under the law in relation to guarantees
                                            and indemnities, would have affected the Guarantor’s liability;
	 	 	 
		23.2.3	the
                                            Rent is changed in accordance with the provisions governing rent review;
	 	 	 
		23.2.4	this
                                            Lease is varied, extended or assigned without the consent of the Guarantor,
	 	 	 
		23.2.5	the
                                            Landlord does not obtain a guarantee, indemnity or security which it was agreed or contemplated
                                            the Landlord would obtain;
	 	 	 
		23.2.6	The
                                            Landlord fails to give a notice the Landlord is required to give the Tenant or the Guarantor;
	 	 	 
		23.2.7	the
                                            Landlord is unable to enforce this Lease against the Tenant;
	 	 	 
		23.2.8	anyone
                                            else, including another guarantor, does not sign this Lease or is released from it or from
                                            this guarantee; and
	 	 	 
		23.2.9	this
                                            Lease is not effective as a Lease or has ended.

 

	23.3	If
                                            the Guarantor is more than one person:

 

		23.3.1	each
                                            of them is liable individually under this guarantee and indemnity; and
	 	 	 
		23.3.2	each
                                            of them is also liable jointly with any one or more of the others.

 

    	 	 	39

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Guarantor’s
other obligations

 

	23.4	The
                                            Guarantor must not do any of the following without the Landlord’s consent:

 

		23.4.1	raise
                                            a set-off or counterclaim available to it or the Tenant against the Landlord to reduce the
                                            Guarantor’s liability under this guarantee and indemnity;
	 	 	 
		23.4.2	take
                                            security from the Tenant for performance of the Tenant’s obligation to indemnify the
                                            guarantor against any liability the Guarantor incurs under this guarantee and indemnity;
	 	 	 
		23.4.3	claim
                                            to be entitled in any way (including by contribution, indemnity, subrogation and marshalling)
                                            to the benefit of a security or guarantee the Landlord holds in connection with this Lease;
	 	 	 
		23.4.4	make
                                            a claim or enforce a right against the Tenant or any property of the Tenant; or
	 	 	 
		23.4.5	prove
                                            in competition with the Landlord if a liquidator, provisional liquidator, receiver, administrator
                                            or trustee in bankruptcy is appointed in respect of the Tenant, or if the Tenant is unable
                                            to pay the Tenant’s debts as they fall due.

 

Time
for payment

 

	23.5	The
                                            Guarantor must pay any money the Landlord is entitled to under this guarantee and indemnity
                                            within 14 days after the Landlord makes a written demand.
	 	 
	23.6	The
                                            Guarantor must pay interest, calculated daily and compounded monthly, on any money that the
                                            Guarantor does not pay on lime.
	 	 
	23.7	The
                                            interest is payable on the amount outstanding from the day the money becomes due until it
                                            is paid.
	 	 
	23.8	The
                                            rate of interest is stated in Item 11 of the Reference Schedule.
	 	 
	23.9	If
                                            the Guarantor fails to comply with its obligations under any part of this clause 23, the
                                            Landlord may recover from the Guarantor any costs (including solicitor’s costs) it
                                            incurs by reason of the Guarantor’s breach.

 

Persons
benefited by guarantee and indemnity

 

	23.10	Each
                                            of the following persons are also entitled to the benefit of the Landlord’s rights
                                            under this guarantee and indemnity:

 

		23.10.1	the
                                            owner at the relevant time of the Premises; and
	 	 	 
		23.10.2	a
                                            person entitled at the relevant time to Rent or other money payable by the Tenant under this
                                            Lease.

 

	23.11	An
                                            assignment of the benefit of the Landlord’s rights under this guarantee and indemnity
                                            is not necessary.

 

    	 	 	40

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	23.12	The
                                            Landlord does not have to give the Guarantor notice of any such assignment, unless that is
                                            required by Law.

 

Guarantee
and indemnity basis of entry into Lease

 

	23.13	The
                                            Landlord enters into this Lease on the basis of this guarantee and indemnity, and at the
                                            Guarantor’s request.

 

 

 

	24	General

 

No
right to set off by Tenant

 

	24.1	The
                                            Tenant is not entitled to set off any amount the Landlord owes it (whether under this Lease
                                            or not) against any amount the Tenant owes the Landlord under this Lease.

 

Time
for payment

 

	24.2	Unless
                                            otherwise provided by this Lease, the Tenant and the Landlord must pay any amount due to
                                            the other within 14 days after being notified that the amount is due.

 

Interest
on overdue amounts

 

	24.3	The
                                            Tenant must pay interest, calculated daily and compounded monthly, on any money that the
                                            Tenant owes the Landlord but does not pay on time. The interest is payable on the amount
                                            outstanding from the day the money becomes due until it is paid. The rate of interest is
                                            stated in Item 11 of the Reference Schedule.

 

Obligation
in relation to employees, agents, contractors and others

 

	24.4	The
                                            Tenant must make sure that the Tenant’s employees, agents and contractors, and all
                                            other people on the Tenant’s Premises do not do or fail to do anything on the Premises
                                            which, if the Tenant did it or failed to do it, would be a breach of this Lease.

 

Variation

 

	24.5	This
                                            Lease, including the schedules, can only be varied by the parties in writing, signed by all
                                            of the parties.

 

Waiver

 

	24.6	The
                                            fact that a party fails to do, or delays in doing, something that party is entitled to do
                                            under this Lease does not amount to a waiver of that party’s right to do it.
	 	 
	24.7	A
                                            waiver by a party is only effective if it is in writing.
	 	 
	24.8	A
                                            written waiver by a party is:

 

		24.8.1	only
                                            effective in relation to the particular obligation or breach in respect of which it is given;
                                            and

 

    	 	 	41

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

		24.8.2	is
                                            not to be taken as an implied waiver of:

 

		(a)	any
                                            other obligation or breach; or
	 	 	 
		(b)	that
                                            obligation or breach in relation to any other occasion.

 

Entire
agreement

 

	24.9	This
                                            Lease contains everything that the parties have agreed on in relation to the matters it deals
                                            with. No party can rely on an earlier document or anything said or done by another party
                                            (or a director, officer, agent or employee of that party) before this Lease was executed.

 

Severability

 

	24.10	If:

 

		24.10.1	a
                                            clause or part of a clause can be read in a way that makes it illegal, unenforceable or invalid,
                                            but can also be read in a way that makes it legal, enforceable and valid, it must be read
                                            in the latter way;
	 	 	 
		24.10.2	any
                                            clause or part of a clause is illegal, unenforceable or invalid, that clause or part is to
                                            be treated as removed from this Lease, but the rest of this Lease is not affected; and
	 	 	 
		24.10.3	the
                                            removal of a clause or part of a clause under clause 24.10.2 materially alters the commercial
                                            allocation of benefit and risk (or management of risk) under this Lease, the parties agree
                                            to negotiate in good faith to amend or modify the terms of the Lease as may be necessary
                                            or desirable having regard to the original terms of the bargain and the prevailing circumstances.

 

Further
co-operation

 

	24.11	Each
                                            party must do anything (including executing a document) another party reasonably requires
                                            in writing to give full effect to this Lease.

 

Relationship
of the parties

 

	24.12	This
                                            Lease does not create a partnership, agency, fiduciary or any other relationship, except
                                            the relationship of contracting parties, between the parties.
	 	 
	24.13	No
                                            party is liable for an act or omission of another party, except to the extent set out in
                                            this Lease.

 

Governing
law and jurisdiction

 

	24.14	This
                                            Lease is governed by the Law of the State of Western Australia. The parties submit to the
                                            non-exclusive jurisdiction of its courts. The parties will not object to the exercise of
                                            the jurisdiction by those courts on any basis.

 

Execution
of separate documents

 

	24.15	This
                                            Lease is properly executed if each party executes this document or an identical document.
                                            In the former case, this Lease takes effect when the last party executes this document. In
                                            the latter case, this Lease takes effect when the last of the identical documents is executed.

 

    	 	 	42

     

    

 

	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	24.16	Evidence
                                            of execution of this Lease by a party may be shown by fax, email or a PDF copy of this document.

 

No
merger

 

	24.17	The
                                            provisions of this Lease do not merge with any action performed or document executed by any
                                            party for the performance of this Lease.

 

Third
party rights

 

	24.18	A
                                            person who is not a party to this Lease does not have any rights under or in connection with
                                            it.

 

Exclusion
of contrary legislation

 

	24.19	To
                                            the full extent permitted by Law, any legislation that adversely affects a right, remedy
                                            or obligation of a party, under or relating to this Lease is excluded.

 

    	 	 	43

     

    

 

 

    	 

     

    

 

 

    	 

     

    

  	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Schedule
1

 

Rent
Review

 

Fixed
Reviews of Rent

 

Definitions

 

	Fixed
    Review Date	means
    each anniversary of the Commencement Date, with the exception of the third anniversary of the Commencement Date (being the anniversary
    occurring in 2024).

 

Fixed
Adjustment

 

On
and from each Fixed Review Date, the Rent will be increased to the amount set out below next to the corresponding Fixed Review Date.

 

	Date	 	Rent per annum (plus GST)	 
	First anniversary of the Commencement Date	 	$	70,000.00	 
	Second anniversary of the Commencement Date	 	$	134,700.00	 
	Fourth anniversary of the Commencement Date	 	$	138,741.00	 

 

    	46

     

    

 	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Schedule
2

 

Special
conditions

 

	1	Condition
    Precedent - Surrender of Lease

 

	 	1.1	In this special condition, Existing
    Lease means the lease dated 9 March 2020 between the Landlord as landlord and the Tenant as tenant (formerly known as Moboom
    Limited) of “Office 1”, Part Ground Floor, 246 Churchill Avenue, Subiaco for a term of three years commencing 1 April
    2021.
	 	 	 
	 	1.2	The grant of this Lease is subject to and conditional
    upon the Tenant executing and returning to the Landlord, on or before 30 November 2021 (or any later date as may be agreed between
    the parties), a surrender of the Existing Lease with an effective date of the day before the commencement date of this lease.

 

	2	Condition
Precedent - Change of Use

 

	 	2.1	The grant of this Lease is subject
    to and conditional upon the Tenant obtaining approval from all required Authorities to a change of use in respect of the Premises
    from showroom to offices on or before 31 March 2022 (or any later date as may be agreed between the parties).
	 	 	 
	 	2.2	The Tenant must use its best endeavours to satisfy
    the condition precedent in special condition 2.1 and must, if it obtains the required approval, promptly advise the Landlord.

 

	3	Commencement
    Date
	 	 	 	 
	 	3.1	This Lease will commence 30 days after
    the later of the date on which:
	 	 	 	 
	 	 	3.1.1	this Lease is signed by both the Landlord and the Tenant;
    and
	 	 	 	 
	 	 	3.1.2	the condition precedent referred to in special condition
    2.1 is satisfied.
	 	 	 	 
	 	3.2	The parties authorise the Landlord to complete
    this Lease by inserting the Commencement Date into Item 3 of the Reference Schedule once it is known.
	 	 	 	 
	4	Premises
    as is where is
	 	 	 	 
	 	4.1	The Tenant:
	 	 	 	 
	 	 	4.1.1	accepts the Premises as is, where is at the Commencement
    Date in its current state and condition; and

 

    	47

     

    

 	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	4.1.2	acknowledges and agrees that it has:
	 	 	 	 
	 	 	(a)	undertaken its own due diligence and inspection of
    the Premises and is satisfied that the Premises is acceptable in its current form; and
	 	 	 	 
	 	 	(b)	not relied on any representations or warranties made
    by the Landlord in relation to the Premises.

 

	5	Car
    parking licence
	 	 	 
	Grant
    of parking licence
	 	 	 
	 	5.1	The Landlord grants to the Tenant an exclusive licence
    to use and occupy four (4) permanent tandem car parking bays on the western side of the car park on the Land as allocated by the
    Landlord from time to time (Car Parking Licence).

 

	Duration
    of car parking licence
	 	 	 	 
	 	5.2	The Licence in clause 5.1 is granted to
    the Tenant for the Term of this Lease and any extension of the Term.
	 	 	 	 
	Licence
    Fee
	 	 	 	 
	 	5.3	The Tenant must pay to the Landlord:
	 	 	 	 
	 	 	5.3.1	a
    licence fee of $480.00 {plus GST) per calendar month {being $120.00 (plus GST) per car parking space per calendar month) (Licence
    Fee); and
	 	 	 	 
	 	 	5.3.2	any charge imposed on the Landlord in respect of the
    Landlord’s ownership of, or the Tenant’s occupation and use of the car parking spaces.
	 	 	 	 
	 	5.4	The amounts in clause 5.3 are payable to
    the Landlord monthly in advance, at the same lime and in the same manner as, the Rent payable under this Lease.
	 	 	 	 
	Tenant’s
    obligations
	 	 	 	 
	 	5.5	 The Tenant must ensure that:
	 	 	 	 
	 	 	5.5.1	the car parking spaces are only used for the purpose
    of parking private motor vehicles.
	 	 	 	 
	 	 	5.5.2	all vehicles parked in the car parking spaces:

 

	 	(a)	are parked within
    the defined area of each of the car parking spaces;
	 	 	 
	 	(b)	are kept locked;

 

    	48

     

    

  	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	(c)	are not left with the engine running;
	 	 	 
	 	(d)	do not contain any inflammable liquid or gas except
    fuel normally used for the propulsion of the vehicle and stored in accordance with all laws in connection with the retention of fuel
    in a motor vehicle;
	 	 	 
	 	(e)	do not drip oil or any other deleterious substance
    on the floor of the car parking spaces or the Land;
	 	 	 
	 	(f)	any rubbish and debris accumulating upon the car parking
    spaces is regularly removed; and
	 	 	 
	 	(g)	that the car parking spaces and the driveways and the
    Land are kept clear and free from obstruction.

 

	Tenant’s Indemnity
	 	 	 	 
	 	5.6	The Tenant indemnifies the Landlord against
    all claims, demands and expense arising from any damage to any person or property associated with the Tenant’s use of the car
    parking spaces.
	 	 	 	 
	Compliance with Laws
	 	 	 	 
	 	5.7	The Tenant must comply with all Laws for
    the time being enacted by any Authority in connection with the use of the car parking spaces for the purpose of parking private motor
    vehicles and the rights granted to the Tenant under this clause.
	 	 	 	 
	No assignment etc
	 	 	 	 
	 	5.8	The Tenant must not assign, transfer or
    otherwise subrogate the rights of the Tenant pursuant to this clause without the prior written consent of the Landlord (which consent
    must not be unreasonably withheld) and to the extent that the same may be applicable to this clause, sections 80 and 82 of the Property
    Law Act 1969 do not apply.
	 	 	 	 
	Termination of car parking licence
	 	 	 	 
	 	5.9	This licence shall be deemed to be terminated
    by the Landlord on the occurrence of each of the following:
	 	 	 	 
	 	 	5.9.1	the Tenant being in breach of any of its obligations
    under this clause and such breach continuing for a period of 14 days after the date of service of a notice from the Landlord specifying
    such breach and requiring the same to be remedied; or
	 	 	 	 
	 	 	5.9.2	upon the end or sooner
    determination of the term of this Lease or any extension of that term notwithstanding notice thereof shall not have been given.

 

    	49

     

    

 	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	5.10	The Tenant must at the end or sooner
    determination of the term of this Lease peaceably yield up to the Landlord the car parking spaces.

 

Additional
car parking spaces

 

	 	5.11	The Landlord
    will provide the Tenant, at no additional cost, the exclusive use of six (6) additional tandem car parking spaces on the western
    side of the car park on the Land from the Commencement Date until the date that is 2 years and 6 months after the Commencement Date
    (Additional Car Parking Licence Period) on the same terms set out in this special condition in relation to the licence of
    the permanent bays.
	 	 	 
	 	5.12	On and from the expiry
    of the Additional Car Parking Licence Period, the Tenant will have an option to enter into a further licence in respect of the additional
    six (6) car parking spaces on the same terms set out in this special condition in relation to the licence of the permanent bays.
	 	 	 
	 	5.13	If the Tenant exercises
    the option to enter into a licence in respect of the six (6) additional car parking spaces, the Tenant must commence paying a licence
    fee in relation to those car parking spaces on and from the day following the expiry of the Additional Car Parking Licence Period.
    The licence fee payable will be a market licence fee agreed between the parties or, failing agreement, as determined by a valuer
    appointed by the Landlord.
	 	 	 
	 	5.14	On
the fourth anniversary of the Commencement Date the licence fee in respect of each of the six (6) additional car parking spaces will
increase by 3%.

	 	 	 
	6	Fitout	 
	 	 	 
	 	6.1	Subject to the approval
    of the Tenant’s proposed fitout by the Landlord (which approval is not to be unreasonably withheld) the Tenant is to fit out
    the Premises, at its own cost.
	 	 	 
	 	6.2	Prior to commencing its
    fitout, the Tenant must provide the Landlord with drawings and specifications of the proposed fitout for approval (Plans and Specifications).
	 	 	 
	 	6.3	The Landlord’s approval
    or refusal to approve a request for amendments to the Plans and Specifications must be given as promptly as is reasonably possible.
	 	 	 
	 	6.4	The Landlord’s approval
    may not be unreasonably withheld.
	 	 	 
	 	6.5	The Landlord’s approval
    will be indicated by the return to the Tenant of one set of the Plans and Specifications, marked to indicate the Landlord’s
    approval.
	 	 	 
	 	6.6	The Landlord’s approval
    does not mean that the Plans and Specifications are adequate or suitable for the Tenant’s purpose or comply with any statutory
    or other relevant requirements.

 

    	50

     

    

 	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

	 	6.7	As soon as the Landlord has approved the
    Plans and Specifications the Tenant must ensure that:
	 	 	 	 
	 	 	6.7.1	the Tenant’s builder and any other contractor
    employed or appointed by the Tenant to carry out the fitout works (Contractor) carries out and completes the fitout works
    expeditiously and in accordance with the Plans and Specifications;
	 	 	 	 
	 	 	6.7.2	the Contractor obtains all approvals, statutory or
    otherwise, in respect of the carrying out of the fitout works, such approvals to be produced to the Landlord by the Tenant on demand;
	 	 	 	 
	 	 	6.7.3	any alteration to the Services to or the structure
    of the Building required as part of the fitout works will be carried out by, or under the supervision of, any contractor nominated
    by the Landlord at the Tenant’s cost; and
	 	 	 	 
	 	 	6.7.4	the works are carried out in a professional and competent
    manner by reputable workmen using good quality materials.
	 	 	 	 
	7	Operating
    Costs
	 	 	 	 
	 	7.1	The parties acknowledge and agree that,
    despite the provisions of clauses 3.5.2 and 3.9, the percentage of Operating Costs payable by the Tenant during the Term are set
    out below:

 

	Year	 	Percentage of Operating Costs payable	 
		 	 	 
	Commencement Date - day preceding the first anniversary of the Commencement Date	 	 	31.7	%
	 	 	 	 	 
	First anniversary of the Commencement Date - day preceding the fifth anniversary of the Commencement Date	 	 	68.3	%

 

    	51

     

    

 	Lease: Office, Part Ground Floor and Mezzanine Floor, 246B Churchill Avenue, Subiaco	

 

Schedule
3

 

Plan

 

    	52Exhibit 10.1

 

 

Karat Packaging Inc.

 

6185 Kimball
Avenue

 

Chino, California
91708

 

EMPLOYMENT AGREEMENT

 

Dear Jian Guo ("Employee" or "you"),

 

Your employment by Karat Packaging
Inc., a Delaware corporation (the "Company"), shall be governed by the terms and conditions set forth below in this Employment
Agreement (the "Agreement"), which will be effective immediately upon execution of this Agreement by both you and the Company
(the "Effective Date").

 

WHEREAS, the Company desires
to employ you as its Chief Financial Officer with a commencement date of February 1, 2022 on the terms and conditions set forth herein;
and

 

WHEREAS, you desire to be
employed by the Company on such terms and conditions.

 

NOW, THEREFORE, in consideration
of the mutual covenants, promises, and obligations set forth herein, the parties agree as follows:

 

1.            
Duties and Scope of Employment.

 

a.                 
Position. The Company will continue to employ you in the position of Chief Financial Officer. You will report
directly to Alan Yu, the Company's Chief Executive Officer. You will perform the duties and have the responsibilities and authority customarily
performed and held by an employee in your position and such additional duties commensurate with the position as may be assigned or delegated
to you. You will act in the best interests of the Company during your employment and will comply with your fiduciary duties and duty of
loyalty during your employment with the Company. This is a full-time, exempt position.

 

b.                 
Principal Work Location. Your principal place of employment will be the Company's headquarters office, which
is currently located at 6185 Kimball Avenue, Chino, California 91708.

 

c.                 
Obligations to the Company. During your employment, you shall devote your full business efforts and time
to the Company, except as provided herein. Without express written consent of the Company's Chief Executive Officer, you shall not render
services in any capacity to any other person or entity and shall not act as a sole proprietor, board member, or partner of any other person
or entity or, except as set forth on Attachment A, own more than five percent (5%) of the stock of any other corporation. Notwithstanding
the foregoing, you may (i) serve on corporate, civic, or charitable boards or committees, including the corporate boards on which you
currently serve as set forth on Attachment A; (ii) continue to provide advisory services to the entities set forth on Attachment
A; or (iii) deliver lectures, fulfill speaking engagements, teach at educational institutions, or manage personal investments, in
the case of each of clauses (i), (ii), and (iii) of this sentence, without such advance written consent; provided that such activities
do not individually or in the aggregate interfere with the performance of your obligations and duties hereunder. You will comply with
the Company's policies and rules, as they may be in effect from time to time during your employment.

 

     

     

    

 

d.                 
No Conflicting Obligations. You represent and warrant that you are under no contractual or other obligations
or commitments that are inconsistent with your obligations under this Agreement, including but not limited to any restrictions that would
preclude you from providing services or fulfilling your duties to the Company. In connection with your employment, you shall not use or
disclose any trade secrets or other proprietary information or intellectual property in which you or any other person or entity has any
right, title, or interest. You further represent and warrant that your employment will not infringe or violate the rights of any other
person or entity. You further represent and warrant that you have not removed or taken and will not remove or take any confidential documents
or proprietary data or materials of any kind with you from any former employer to the Company without written authorization from that
employer. You are hereby notified that you may be entitled to immunity from liability for certain disclosures of trade secrets under the
Defend Trade Secrets Act, 18 U.S.C. § 1833(b).

 

e.                  
Term. Your employment with the Company is at-will, as further defined below. You have the right to terminate
your employment at any time and with or without cause, provided you give the Company's Board of Directors (the "Board") 60
days written notice provided that the quarterly earnings call for the then-current fiscal quarter is completed prior to the Termination
Date (as defined below). The Company has the right to terminate your employment at any time, with or without notice, and with or without
cause.

 

2.                 
Compensation.

 

a.                 
Salary. The Company will pay you as compensation for your services a current annual base salary of $350,000 ("Base
Salary"), payable in accordance with the Company's standard payroll procedures. Your Base Salary is determined by the Compensation
Committee of the Board of Directors ("Compensation Committee") and is subject to change at any time during your employment.
The Compensation Committee will automatically review your Base Salary for the following calendar year and will notify you of any changes
prior to the first day of the following calendar year. The Compensation Committee's automatic review does not in any way limit the Company's
ability to adjust your Base Salary at any time. This is an exempt position, which means that your Base Salary is intended to compensate
you for all hours worked, and you will not be eligible for overtime pay or other certain rights afforded by state and federal law.

 

b.                 
Bonus. The Compensation Committee retains the right in its sole discretion to issue an annual bonus, if any,
to you.

 

    Page 2 of 11

     

    

 

c.                 
RSU Grant. The Company will grant you an aggregate of 7,500 restricted stock units ("RSUs"), in which
3,750 RSUs shall be granted annually to you for two years, pursuant to the Company's Stock Incentive Plan. Any grant of RSUs shall be
pursuant to separate Restricted Stock Award Agreement and shall vest one year from the Effective Date. In the event you resign or are
terminated before two years from the Effective Date, you forfeit any RSUs that are unvested.

 

d.                
Stock Option Grant. The Company will grant you 50,000 stock options ("Options") pursuant to a Stock
Option Agreement under the Company's Stock Incentive Plan. The Options have an exercise price which is equal to the closing price of the
Company's common stock on January 31, 2022, and are scheduled to vest annually as follows:

 

1.                 
16,666 Options shall vest one (1) year from the Effective Date;

 

2.                 
16,667 Options shall vest two (2) years from the Effective Date; and

 

3.                 
16,667 Options shall vest three (3) years from the Effective Date.

 

In the event you resign or are
terminated before three years from the Effective Date, you forfeit any Options that are unvested.

 

e.                  
Relocation Expenses. In the event you and the Company agree that you will relocate your principal residence,
you will be entitled to relocation benefits in accordance with the Company's applicable relocation policy then in effect.

 

The foregoing provisions (a)-(d) are subject to
the terms and conditions of any applicable plans and/or policies of the Company, as amended from time to time. You agree to pay any income
or other taxes that are required to be paid in connection with your receipt of these benefits.

 

3.            
Paid Time Off and Employee Benefits.

 

a.                 
Paid Time Off. You will receive six (6) paid holidays per year, fifteen (15) days of paid vacation per year (which
will begin to accrue on a semi-monthly basis as of the Effective Date), and three (3) days of paid sick leave per year.

 

b.                 
Health Insurance. You (as an individual) will be eligible for the Company's employee health and dental insurance
plans, subject to the terms and conditions of the then-current plans (as may be changed by the Company from time to time), with the Company
covering 100% of you insurance premium for the health and dental plans.

 

c.                 
401k. One year from the Effective Date, you will be eligible to participate in the Company's 401k plan, subject
to the terms and conditions of the then-current plan (as may be changed from time to time) and to the determinations of any person or
committee administering the plan.

 

4.            
Business Expenses.

 

The Company will reimburse
you for your necessary and reasonable business expenses incurred in connection with performance of your duties. You must promptly submit
an itemized account of expenses and appropriate supporting documentation, in accordance with the Company's generally applicable policies.

 

    Page 3 of 11

     

    

 

5.            
Termination.

 

a.                 
Employment At-Will. Your employment is "at will," meaning that you are entitled to terminate your employment
at any time and for any reason, with or without cause provided you give the Board at least 60 day written notice in accordance
with Section 1(e) above. Additionally, the Company is entitled to terminate your employment at any time and for any reason, with or without
cause, notwithstanding any contrary representations that may have been made to you. The at-will nature of your employment is not altered
in any way by this Agreement. The at-will nature of your employment means that the Company can make other changes to the terms and conditions
of your employment (including compensation, benefits, duties, and title) with or without cause or notice. This Agreement will constitute
the full and complete understanding between you and the Company on the "at-will" nature of your employment, which may be changed
only in a writing signed by you and a duly authorized Company officer.

 

b.                 
Rights Upon Termination.

 

1.             
Termination for Any Reason. Upon the termination of your employment for any reason, you will be entitled to the compensation
and benefits earned and the reimbursements described in this Agreement through the date of termination.

 

1.1.         
Termination For Cause or Without Good Reason.

 

(a)          
If your employment is terminated by you or the Company for Cause, you will be entitled to receive:

 

(i)             
any accrued but unpaid Base Salary (as described in Section 2(a) or as otherwise agreed by you and the Company in writing, and
accrued but unused vacation which shall be paid on the Termination Date (as defined below));

 

(ii)            
reimbursement for unreimbursed business expenses properly incurred by you, which shall be subject to and paid in accordance with
the Company's expense reimbursement policy; and

 

(iii)          
such employee benefits, including equity compensation, if any, to which you may be entitled under the Company's employee benefit
plans as of the Termination Date; provided that, in no event shall you be entitled to any payments in the nature of severance or termination
payments.

 

    Page 4 of 11

     

    

 

(b)           
If your employment is terminated by the Company without Cause, you will be entitled to receive:

 

(i)               
all compensation described in Section 5(b)(1.1)(a)(i)-(iii); and

 

(ii)             
an amount equal to six (6) months of your Base Salary. Such payment shall be made in a lump sum within ten (10) business days following
the Termination Date; and

 

(iii)           
automatic and immediate vesting of any and all RSUs and Options, all within ten (10) business days following the Termination Date.

 

(c)          
The following definitions shall apply, respectively:

 

(i)                
"Cause" means the occurrence of any of the following events: (i) your conviction of, or plea of nolo contendere
to, any felony (other than a vehicular-related felony); (ii) your commission of, or participation in, intentional acts of fraud or dishonesty
against the Company that in either case results in material harm to the business of the Company; (iii) your intentional violation of any
contract or agreement between you and the Company or any statutory duty you owe to the Company that in either case results in harm to
the business of the Company; (iv) your conduct that constitutes insubordination or neglect of duties and that in either case results in
harm to the business of the Company; (v) your intentional refusal to follow the lawful directions of the Chief Executive Officer (other
than as a result of physical or mental illness); (vi) your intentional failure to follow the Company's written policies that are generally
applicable to all employees or all officers of the Company and that results in harm to the business of the Company; (vii) failure to perform
Your duties other than as a result of total or partial incapacity due to physical illness; or (viii) your disclosure of proprietary or
Confidential Information.

 

(ii)             
"Termination Date" means the date either party elects to terminate Your employment with the Company.

 

(iii)           
For purposes of this Agreement, "Confidential Information" includes, but is not limited to, all information not generally
known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business know-how,
business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques,
agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade
secrets, computer programs, computer software, applications, operating systems, software design, web design, work-in-process, databases,
manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial information, results,
accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit
information, design information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor
lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information,
revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs, inventions,
unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications,
customer information, customer lists, client information, client lists, manufacturing information, factory lists, distributor lists, and
buyer lists of the Company or its businesses or any existing or prospective customer, supplier, investor or other associated third party,
or of any other person or entity that has entrusted information to the Company in confidence.

 

    Page 5 of 11

     

    

 

You represent, understand, and agree
that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified
as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context
and circumstances in which the information is known or used.

 

You further represent, understand, and
agree that Confidential Information includes information developed by you in the course of your employment by the Company as if the Company
furnished the same Confidential Information to you in the first instance.

 

1.2.           
Resignation of All Other Positions. Upon termination of your employment hereunder for any reason, you agree
to resign, effective on the last day of employment and shall be deemed to have resigned, from all positions that you hold as an officer
or member of the Board (or a committee thereof) of the Company or any of its affiliates.

 

1.3.           
Internal Revenue Code Section 280G. If any of the payments or benefits received or to be received by you, including,
without limitation, any payment or benefits received in connection with your termination of employment, whether pursuant to the terms
of this Agreement or any other plan, arrangement, agreement, undertaking, or otherwise ("280G Payments") constitute "parachute
payments" within the meaning of Section 280G of the Internal Revenue Code ("Code") and would, but for this Section, be
subject to the excise tax imposed under Section 4999 of the Code ("Excise Tax"), then such 280G Payments shall be reduced in
a manner determined by the Company that is consistent with the requirements of Section 409A until no amount payable to you will be subject
to the Excise Tax. If two economically equivalent amounts are subject to reduction but are payable at different times, the amounts shall
be reduced on a pro rata basis.

 

6.            
Successors.

 

a.                 
Company's Successors. The terms of this Agreement will be binding upon any successor (whether direct or indirect
and whether by purchase, lease, merger, consolidation, liquidation, or otherwise) to all or substantially all of the Company's business
and/or assets. For all purposes under this Agreement, the term "Company" will include any successor to the Company's business
or assets that becomes bound by this Agreement.

 

    Page 6 of 11

     

    

 

b.                 
Your Successors. This Agreement and all of your rights hereunder will inure to the benefit of, and be enforceable
by, your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees.

 

7.            
Miscellaneous Provisions.

 

a.                 
Modifications and Waivers. No provision of this Agreement will be modified, waived, or discharged unless the
modification, waiver or discharge is reflected in a writing signed by you (or your authorized representative) and by an authorized officer
of the Company (other than you). No waiver by either party of any breach of, or of compliance with, any condition or provision of this
Agreement by the other party will be considered a waiver of any other condition or provision or of the same condition or provision at
another time.

 

b.                 
Whole Agreement. No other arrangements, agreements, representations, or understandings (whether oral or
written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party
with respect to the subject matter hereof. This Agreement and the exhibits attached hereto contain the entire understanding of the parties
with respect to the subject matter hereof and supersede any prior agreements relating to such subject matter (including any prior employment
agreements) except the the Company's arbitration agreement, any standalone, company-wide policies, any compensation agreements between
you and the Company, and any equity or equity-based award agreements.

 

c.                  
Choice of Law and Severability. This Section 7(c) does not apply to the Company's Arbitration Agreement, and
to the extent that this Section 7(c) conflicts with the Arbitration Agreement, the provisions contained in the Arbitration Agreement control.
Subject to the preceding sentence, this Agreement otherwise shall be interpreted in accordance with the Laws of the State in which you
work/last worked without giving effect to provisions governing the choice of Law, and if any provision of this Agreement becomes or is
deemed invalid, illegal, or unenforceable in any applicable jurisdiction by reason of the scope, extent, or duration of its coverage,
then such provision shall be deemed amended to the minimum extent necessary to conform to applicable law so as to be valid and enforceable
or, if such provision cannot be so amended without materially altering the intention of the parties, then such provision shall be stricken
and the remainder of this Agreement shall continue in full force and effect. If any provision of this Agreement is rendered illegal by
any present or future statute, law, ordinance, or regulation (collectively, the "Law") then that provision shall be curtailed
or limited only to the minimum extent necessary to bring the provision into compliance with the Law. All the other terms and provisions
of this Agreement shall continue in full force and effect without impairment or limitation.

 

Should any provision of this
Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be
held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of
which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally
set forth in this Agreement.

 

    Page 7 of 11

     

    

 

The parties further agree
that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable
provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision,
adding additional language to this Agreement, or by making such other modifications as it deems warranted to carry out the intent and
agreement of the parties as embodied herein to the maximum extent permitted by law.

 

The parties expressly agree
that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or
more of the provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality,
or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above,
this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein.

 

d.                 
No Assignment. This Agreement and all of your rights and obligations hereunder are personal to you and
may not be transferred or assigned by you at any time. The Company may assign its rights under this Agreement only to any entity that
assumes the Company's obligations hereunder in connection with any sale or transfer of all or a substantial portion of the Company's assets
to such entity.

 

e.                  
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

 

f.                   
Indemnification. You will be indemnified under the Company's bylaws for acts during your employment, within the
scope of your duties, and at the Company's direction. In the event that you are made a party or threatened to be made a party to any action,
suit, or proceeding, whether civil, criminal, administrative, or investigative ("Proceeding"), other than any Proceeding initiated
by you or the Company related to any contest or dispute between you and the Company or any of its affiliates with respect to this Agreement
or your employment hereunder, by reason of the fact that you are a director or officer of the Company, or any affiliate of the Company,
or are or were serving at the request of the Company as a director, officer, member, employee, or agent of another corporation or a partnership,
joint venture, trust, or other enterprise, you will be indemnified and held harmless by the Company, to the extent permitted under applicable
law and the Company's bylaws, from and against any liabilities, costs, claims, and expenses, including all costs and expenses incurred
in defense of any Proceeding. You will be named as an insured on the director and officer liability insurance policy currently maintained
by the Company or as may be maintained by the Company from time to time.

 

    Page 8 of 11

     

    

 

g.                 
Taxes; Section 409A. All forms of compensation paid to you by the Company, including any payments made pursuant
to this Agreement, are subject to reduction (or payment by you, to the extent that additional amounts are required) to reflect applicable
deductions, withholdings, and payroll taxes. You agree that the Company does not have a duty to design its compensation policies in a
manner that minimizes your tax liabilities, and you will not make any claim against the Company related to tax liabilities arising from
your compensation. The payments and benefits under this Agreement are intended, and will be construed, to be exempt from or comply with
Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"); provided, however, that nothing in this Agreement
shall be construed or interpreted to transfer any liability for any tax (including a tax or penalty due as a result of a failure to comply
with Section 409A) from you to the Company or to any other entity or person. Any payment to you under this Agreement that is subject to
Section 409A and that is contingent on a termination of employment is contingent on a "separation from service" within the meaning
of Section 409A. If, upon separation from service, you are a "specified employee" within the meaning of Section 409A, any payment
under this Agreement that is subject to Section 409A and triggered by a separation from service that would otherwise be paid within six
months after your separation from service will instead be paid in the seventh month following your separation from service or, if earlier,
upon your death (to the extent required by Section 409A(a)(2)(B)(i)). Payments pursuant to this Agreement (or referenced in this Agreement),
and each installment thereof, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under
Section 409A. To the extent any nonqualified deferred compensation subject to Section 409A payable to you could be paid in more than one
taxable year depending upon you completing certain employment-related actions, then any such payments will commence or occur in the latest
such taxable year to the extent required to avoid the adverse consequences of Section 409A. Any taxable reimbursement due under the terms
of this Agreement shall be paid no later than December 31 of the year after the year in which the expense is incurred, and all taxable
reimbursements and in-kind benefits shall be provided in accordance with Section 1.409A-3(i)(1)(iv) of the regulations under Section 409A.
The parties agree that if necessary to avoid non-compliance with Section 409A, they will cooperate in good faith to modify the terms of
this Agreement or any applicable equity award; provided, that such modification shall endeavor to maintain the economic intent of this
Agreement or any such equity award.

 

h.                 
Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience
and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

8.            
Your Representations and Warranties.

 

You represent and warrant
to the Company that:

 

a.                 
No Conflicts. Your acceptance of employment with the Company and the performance of your duties hereunder will
not conflict with or result in a violation of, a breach of, or a default under any contract, agreement, or understanding to which you
are a party or are otherwise bound.

 

Your acceptance of employment
with the Company and the performance of your duties hereunder will not violate any non-solicitation, non-competition, or other similar
covenant or agreement of a prior employer.

 

b.                 
Withholding. The Company shall have the right to withhold from any amount payable hereunder any federal, state,
and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

    Page 9 of 11

     

    

 

c.                  
Survival. Upon the expiration or other termination of this Agreement, the respective rights and obligations of
the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties
under this Agreement.

 

d.                 
Acknowledgement of Full Understanding. YOU ACKNOWLEDGE AND AGREES THAT YOU HAVE FULLY READ, UNDERSTANDS
AND VOLUNTARILY ENTER INTO THIS AGREEMENT. YOU FURTHER ACKNOWLEDGE AND AGREE THAT YOU HAVE HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT
WITH AN ATTORNEY OF YOUR CHOICE BEFORE SIGNING THIS AGREEMENT.

 

To indicate your acceptance
of the terms and conditions of this Agreement, please sign and date this Agreement in the space provided below and return it to me.

 

ACCEPTED AND AGREED: 

 

Signed:

 

	/s/ Jian Guo	 	/s/ Alan Yu
	Jian Guo	 	Alan Yu
	Chief Executive Officer	 	 
	Karat Packaging Inc.	 	 
	 	 	 
	Date:	 February 1, 2022	 	Date: 	February 1, 2022

 

    Page 10 of 11

     

    

 

ATTACHMENT A

 

Permitted
Boards

 

    Page 11 of 11

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