Document:

exv10w23

Exhibit 10.23

MICHAEL FERRARO [or his nominee]

(‘Landlord’)

COMWELD GROUP PTY LTD

ACN 007 226 815

(‘Tenant’)

AGREEMENT FOR LEASE

PART 73 GOWER STREET, PRESTON

MINTER ELLISON

Lawyers

Rialto Towers, 525 Collins Street

MELBOURNE VIC 3000

DX 204 Melbourne

Telephone (03) 9229 2000

Facsimile (03) 9229 2666

Reference DJMC 1320080

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	RECITALS
	 	 	1	 
	 
	 	 	 	 
	OPERATIVE PART
	 	 	1	 
	 
	 	 	 	 
	1.
DEFINITIONS, INTERPRETATION AND CONSTRUCTION
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Interpretation
	 	 	3	 
	1.3 Deed Prevails
	 	 	4	 
	1.4 Applicable law
	 	 	4	 
	1.5 Severability
	 	 	4	 
	1.6 Time of the Essence
	 	 	4	 
	 
	 	 	 	 
	2. CONSTRUCTION
	 	 	4	 
	2.1 Description and Completion of Construction Works
	 	 	4	 
	2.2 Tenant’s Variations
	 	 	4	 
	2.4 Tenant’s Fit-Out
	 	 	5	 
	 
	 	 	 	 
	3. COMPLETION
	 	 	5	 
	 
	 	 	 	 
	4. EXTENSION OF ANTICIPATED COMPLETION DATE
	 	 	5	 
	 
	 	 	 	 
	5. LEASE
	 	 	6	 
	5.1 Possession and Grant
	 	 	6	 
	5.2 Completion and Execution of Lease
	 	 	6	 
	5.3 Obligations Pending Execution
	 	 	6	 
	 
	 	 	 	 
	6. DEFAULT
	 	 	7	 
	6.1 Events of Default
	 	 	7	 
	6.2 Termination on default
	 	 	7	 
	 
	 	 	 	 
	7. DISPUTE DETERMINATION
	 	 	7	 
	7.1 Referral of dispute to Expert
	 	 	7	 
	7.2 Conditions of referral
	 	 	7	 
	 
	 	 	 	 
	8. DEFECTS LIABILITY PERIOD AND COMPLETION
	 	 	8	 
	8.1 Landlord to remedy
	 	 	8	 
	8.2 Access to Premises
	 	 	8	 
	8.3 Maintenance Warranties
	 	 	8	 
	 
	 	 	 	 
	9. GENERAL PROVISIONS
	 	 	9	 
	9.1 Tenant not to deal with interest
	 	 	9	 
	9.2 Costs and Stamp Duty
	 	 	9	 
	9.3 Tenant to reimburse Landlord
	 	 	9	 
	9.4 Notices
	 	 	9	 
	 
	 	 	 	 
	10. CONSENT OF MORTGAGEE
	 	 	10	 
	 
	11. RIGHT OF INSPECTION
	 	 	10	 

 

ii

	 	 	 	 	 

	12. INSURANCE
	 	 	10	 
	 
	 	 	 	 
	13. ENVIRONMENTAL WARRANTIES
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 1
	 	 	11	 
	 
	 	 	 	 
	SCHEDULE 2
	 	 	12	 
	 
	 	 	 	 
	SCHEDULE 3
	 	 	13	 
	 
	 	 	 	 
	SCHEDULE 4
	 	 	14	 

 

 

	 	 	 	 	 

	THIS DEED is made on

	 	 	2000	 

	 	 	 

	BETWEEN

	 	MICHAEL FERRARO
	 

	 	of 78 Chifley Drive, Preston, Victoria (‘Landlord’)
	 
	 	 
	AND

	 	COMWELD GROUP PTY LTD ACN 007 226 815
	 

	 	of 85 Chifley Drive, Preston, Victoria (‘Tenant’)

RECITALS

	A.	 	The Landlord is the purchaser under a contract of sale for
the Land dated ##.

	B.	 	Upon settlement of the contract of sale settling, the Landlord will be entitled to be the
registered proprietor of the Land.

	C.	 	Subject to the provisions of this Deed, the Landlord:

	 	(a)	 	has agreed to construct a facility on the Land for the Tenant; and

	 	(b)	 	will lease the Premises to the Tenant and the Tenant will accept a lease
of the Premises from the Landlord on the terms of this Deed and of the Lease.

OPERATIVE PART

	1.	 	DEFINITIONS, INTERPRETATION AND CONSTRUCTION

	1.1	 	Definitions

	 	 	In this Deed:

	 	 	‘Anticipated Completion Date’ means the date set out in Item 1 of Schedule 1;

	 	 	‘Approval’ means any approval, permit, authorisation, consent or registration required
by an Authority, under a Statute or otherwise for the Construction
Works.

	 	 	‘Authority’ means any statutory, public or other authority and (without limitation)
includes any government, semi or local government, city, municipal, health, licensing or
civic authority or body or any consultant or representative acting on behalf of any of
those authorities or bodies.

	 	 	‘Commencing Rent’ means the amount of rent specified in Item 2 of Schedule 1.

	 	 	‘Completion’ means the date determined by the Landlord’s consultant and notified to the
Tenant in accordance with clause 3.1 PROVIDED THAT the determination shall not be valid
or effective unless the following conditions and requirements have been complied with
and fulfilled:

	 	(a)	 	on or before the date so determined an occupancy permit has issued in
respect of the Construction Works on the Land by the relevant Authority; and

	 	(b)	 	on or before the date so determined a certificate of practical completion
has been issued by the Landlord’s Consultant in respect of the Construction Works

 

2

	 	 	 	PROVIDED THAT if the Tenant disputes that the certificate should have been
issued the dispute may be referred by either party to an expert in accordance with clause 7
to decide if the certificate should have been issued on the date, and if not, the date on
which the certificate should have been issued and Completion achieved.

	 	 	‘Construction Works’ means the work to be completed by the Landlord in accordance with the
Approvals and the Plans & Specifications.

	 	 	‘Deed’ means this deed and each Schedule described in this deed as well as any amendment to any of
them in writing signed by the parties.

	 	 	‘Defect Period’ means the period of twelve (12) calendar months commencing on the Lease
Commencement Date.

	 	 	‘Expert’ means a person to whom a Dispute is referred under clause 7.

	 	 	‘Land’ means Lot 4 on proposed plan of subdivision PS434873R, a copy of which is attached as
Schedule 2 and being part of the land described in certificate of title Volume
10484 Folio 758.

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

	 	 	‘Lease’ means a lease in the form of the lease in Schedule 3 completed in accordance with this
Deed.

	 	 	‘Lease Commencement Date’ means the day on which Completion occurs.

	 	 	‘Landlord’ means the Landlord and his heirs, executors and permitted transferees or where a
corporation its successors and transferees.

	 	 	‘Landlord’s Consultant’ means a person appointed by the Landlord who is suitably qualified to
supervise carrying out of the Construction Works.

	 	 	‘Minor Defects’ means any omissions and defects in the Construction Works that in the Landlord’s
reasonable opinion:

	 	(a)	 	are of a minor nature; and

	 	(b)	 	may be completed after the Lease Commencement Date without unreasonably interfering with the
Tenant’s use of the Premises.

	 	 	‘Plans and Specifications’ means the plans and specifications detailing the Construction Works
attached as Schedule 4 and includes any variations or additions made or required in accordance
with this Deed. [# to be attached]

	 	 	‘Premises’ means the Land and any improvements.

	 	 	‘Statute’ includes an act, by-law, order-in-council, ordinance, proclamation,
regulation and rule.

 

3

	 	 	‘Term’ means the term stated in
Item 3 of Schedule 1.

	1.2	 	Interpretation

	 	 	In interpreting this Deed and unless necessarily excluded by the context:

	 	(a)	 	one gender includes each other gender;

	 	(b)	 	the singular number includes the plural number and conversely (including
in a defined expression);

	 	(c)	 	unless defined in this Deed, a word defined in the Lease has the same
meaning in this Deed;

	 	(d)	 	a covenant by more than one person is joint and several;

	 	(e)	 	emboldening and each clause heading are ignored;

	 	(f)	 	a derivative of a defined word has a corresponding meaning;

	 	(g)	 	a reference to a Statute includes:

	 	(i)	 	an Act amending the Statute and an Act substituted for a Statute;

	 	(ii)	 	an award, employment agreement and industrial agreement;

	 	(iii)	 	a notice given under a Statute; and

	 	(iv)	 	a requirement of a person under a Statute;

	 	(h)	 	a reference to a party comprising more than one person includes
any one or more of those persons;

	 	(i)	 	a reference to a thing includes the whole as well as any one or
more parts of the thing;

	 	(j)	 	a covenant by a person not to do something includes a covenant
by that person not to allow, attempt, permit or suffer the doing of that thing;

	 	(k)	 	a reference to a bank means a bank licensed to carry on the
business of a Trading Bank or a Savings Bank in Australia;

	 	(l)	 	a reference to a period in days means calendar days;

	 	(m)	 	a reference to a business day means any day on which banks are
normally open for business in Victoria;

	 	(n)	 	a reference to ‘person’ includes a body corporate.

	 	(o)	 	a reference to ‘execute’ means:

 

4

	 	(i)	 	in the case of a deed, to execute in the form required to bind
the person executing by deed and to deliver; and

	 	(ii)	 	otherwise, to execute in the form required to
bind the person executing according to the tenor of the instrument;

	 	(p)	 	a reference to ‘observe’ includes to comply with, discharge,
fulfil, keep and perform; and

	 	(q)	 	a reference to a party includes each party’s administrator,
executor, successor and permitted assign.

	1.3	 	Deed Prevails

	 	 	In the event of any inconsistency between the provisions of this Deed and the Schedules
which form part of it, this Deed will prevail so far as is necessary to resolve the
inconsistency.

	1.4	 	Applicable law

	 	 	This Deed will be construed, applied and will take effect as a contract made in the
State of Victoria, and will be governed by and performed according to the law of that
State.

	1.5	 	Severability

	 	 	Any provision of this Deed which is prohibited or unenforceable in any jurisdiction
will, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Deed or affecting
the validity or enforceability of such provision in any other jurisdiction.

	1.6	 	Time of the Essence

	 	 	Time is of the essence in all respects in relation to this Deed.

	2.	 	CONSTRUCTION

	2.1	 	Description and Completion of Construction Works

	2.1.1	 	By executing this Deed, the parties are deemed to have agreed to the scope of the
Construction Works and to the Plans & Specifications.

	2.1.2	 	Subject to the provisions of this Deed, the Landlord at its sole cost will cause the
completion of the Construction Works in a good and workmanlike manner with due expedition and
on or before the Anticipated Completion Date and in compliance with the requirements of any
Authority and any Approval.

	2.2	 	Tenant’s Variations

	 	(a)	 	The Tenant may request that the Plans & Specifications are varied and the
Landlord must not unreasonably withhold its consent to such request.

 

5

	 	(b)	 	The Tenant will pay for the additional cost incurred including finance
and legal costs as a result of any variation or addition by capitalising such cost
at 9.85% as rent. For the purposes of this clause the additional cost incurred means
the net additional costs actually incurred by the Landlord (excluding the Landlord’s
overheads and any GST).

	2.3	 	Dispute

	 	 	If a dispute arises between the parties relating to the cost of any variation or
additional work requested by the Tenant, then the Landlord must appoint an expert to
determine the dispute in accordance with the provisions of clause 7.

	2.4	 	Tenant’s Fit-Out

	 	(a)	 	The Tenant shall be entitled to access the Land for a period of no less than
60 days prior to Completion or such other time as agreed between the parties for the
purposes of carrying out any Tenant’s fit-out for the Premises. The Landlord must
give to the Tenant not less than 28 days’ notice in writing of the date upon which
the Premises will be available for the carrying out of the Tenant’s fit-out.

	 	(b)	 	The Tenant agrees to indemnify and keep indemnified the Landlord against
any loss or damage suffered by the Landlord as a result of the Tenant carrying out
any fit-out referred to in clause 2.4(a) except to the extent such loss or damage is
caused or contributed to by the Landlord’s negligence or default.

	3.	 	COMPLETION

	3.1	 	The Landlord or the Landlord’s Consultant must notify the Tenant in writing that
Completion will occur on the day l4 days after the date of that notice.

	3.2	 	The existence of any Minor Defects at the relevant date does not prevent Completion being
deemed to have occurred under clause 3.1 and cannot be used by the Tenant to dispute that the
certificate of practical completion referred to in clause 1.1 should have been issued.

	3.3	 	The Landlord must:

	 	(a)	 	remedy any Minor Defects as soon as practicable after Completion;

	 	(b)	 	cause as little interruption as possible to the Tenant’s use of the
Premises whilst so doing.

	4.	 	IF the Landlord is unable to achieve Completion by the Anticipated Completion Date (as
extended pursuant to this Deed) in addition to any other remedies the Tenant may have against
the Landlord under this Deed, the Tenant has the right at any time
thereafter but
prior to Complection to terminate this Agreement upon 7 days’ written notice with no
compensation payable to the Landlord. It is acknowledged by the Landlord that the Tenant will
suffer substantial loss and damages if Completion is not achieved by the Anticipated
Completion Date, including without limitation, the

 

6

	 	 	costs of alternative accommodation and disruption to its day to day business.
DELETED

	5.	 	LEASE

	5.1	 	Possession and Grant

	 	 	On the Lease Commencement Date:

	 	(a)	 	the Landlord must deliver and the Tenant must take possession of the
Premises on the terms and conditions contained in the Lease; and

	 	(b)	 	the Landlord grants, and the Tenant accepts, the Lease of the Premises
for the Term at the Commencing Rent and on the other terms contained in the Lease.

	5.2	 	Completion and Execution of Lease

	5.2.1	 	The Tenant must execute each execution copy of the Lease upon receipt from the Landlord,
and deliver them to the Landlord promptly.

	5.2.2	 	The Tenant irrevocably authorises the Landlord to complete the execution copies of the
Lease under this clause.

	5.2.3	 	The Landlord must, prior to the submission of the Lease to the Tenant, complete the Lease by
inserting or varying as necessary:

	 	(a)	 	the description of and title particulars to the Land current at
the Lease Commencement Date as the Land (as defined in the Lease) together with a
substitute plan of the Premises (as defined in the Lease) reflecting the Premises as
constructed;

	 	(b)	 	the Lease Commencement Date as the Commencement Date (as defined in the
Lease);

	 	(c)	 	the Termination Date (as defined in the Lease);

	 	(d)	 	the Commencing Rent as Annual Rent (as defined in the Lease);

	 	(e)	 	the applicable details for each other variable in the Lease; and

	 	(f)	 	each other detail, item of information or modification required
to complete, stamp, perfect and (if appropriate) register the Lease.

	5.3	 	Obligations Pending Execution

	 	If the parties have not executed the Lease on the Lease Commencement Date, the
Landlord and the Tenant must observe their respective obligations under the Lease on and
from the Lease Commencement Date until the date the last party executes the Lease, as if
each party executed the Lease (completed in accordance with this Deed) before the Lease
Commencement Date.

 

7

	6.	 	DEFAULT

	6.1	 	Events of Default

	6.1.1	 	A party is in default under this Deed if that party:

	 	(a)	 	does not pay any sum payable under this Deed;

	 	(b)	 	does not observe a term of this Deed and fails to remedy the default
within 14 days after delivery of the notice;

	 	(c)	 	is a corporation that:

	 	(i)	 	is wound up;

	 	(ii)	 	becomes subject to an order for winding-up or
reconstruction (except for voluntary winding up or reconstruction);

	 	(iii)	 	comes under administration under the Corporations Law; or

	 	(iv)	 	has a controller appointed.

	6.2	 	Termination on default

	 	 	If a party defaults under this Deed the other party may immediately terminate this Deed
by notice in writing to the relevant party.

	7.	 	DISPUTE DETERMINATION

	7.1	 	Referral of dispute to Expert

	7.1.1	 	Where under this Deed the Landlord is required to refer a dispute to an Expert:

	 	(a)	 	subject to clause 7.1.1(b), the Expert must be an architect with
experience in commercial property, appointed by the President of the Royal
Australian Institute of Architects (Victorian Chapter); and

	 	(b)	 	if the Dispute is as to cost, the Expert must be a quantity surveyor with
experience in commercial property, appointed by the President of the Australian
Institute of Quantity Surveyors (Victorian Chapter).

	7.1.2	 	The Expert must act as an expert and not as an arbitrator.

	7.1.3	 	The Landlord must give the Tenant a copy of the notice referring the dispute to the
Expert within 5 business days after the acceptance by the Expert of the appointment.

	7.2	 	Conditions of referral

	7.2.1	 	The Landlord and the Tenant must expeditiously and at their individual cost, provide any
information, document or reasonable assistance required by the Expert to decide the dispute.

 

8

	7.2.2	 	Both parties are entitled to make submissions in writing to the Expert, and must act
expeditiously in this regard.

	7.2.3	 	The Expert will provide written reasons for his or her determination as soon as possible
after appointment, as a condition of his or her appointment and take into account any relevant
provisions of this Deed.

	7.2.4	 	The determination of the Expert will be final and binding on the parties.

	7.2.5	 	The Expert must apportion the costs of the determination, including the Expert’s fees and
expenses for deciding the dispute, as he or she considers appropriate.

	8.	 	DEFECTS LIABILITY PERIOD AND COMPLETION

	8.1	 	Landlord to remedy

	 	 	The Landlord must remedy all defects in the Construction Works due to:

	 	(a)	 	faulty workmanship; or

	 	(b)	 	faulty materials,

	 	 	which are notified to the Landlord by the Tenant in writing before the expiration of the
Defect Period.

	8.2	 	Access to Premises

	8.2.1	 	The Tenant must permit any person nominated by the Landlord at all times including (without
limitation) during normal working hours, on reasonable notice and with or without plant,
contractors, architects, workmen and others, to enter the Premises or any part to examine and
where necessary to remedy alleged defects in the Construction Works or for such other purposes
as deemed necessary or desirable by the Landlord.

	8.2.2	 	This clause 8 will not merge in the grant of the Lease.

	8.3	 	Maintenance Warranties

	 	 	If the Construction Works or any part of the Construction Works or any fixtures,
fittings, plumbing, heating, lighting, airconditioning or other equipment installed are
the subject of any maintenance obligation or warranty given by a supplier or installer
to the Landlord, the Landlord hereby assigns the benefit of that maintenance obligation
or warranty and will take all reasonable steps to enforce the maintenance obligation or
warranty against the installer or supplier obligated under the maintenance obligation or
warranty.

 

 

9

	9.	 	GENERAL PROVISIONS
	 
	9.1	 	Landlord not to deal with interest
	 
	9.1.1	 	The Landlord must not:

	 	(a)	 	assign, convey, dispose of, license or grant any personal right in respect of
its estate, interest, rights or obligations under this Deed;
	 
	 	(b)	 	sell, transfer, dispose of, encumber, mortgage, charge, lease or licence or
otherwise dispose of the Land.

	 	 	without first obtaining the Tenant’s written consent.
	 
	9.1.2	 	Notwithstanding clause 9.1.1 the Landlord has the right to mortgage, encumber or charge the
Land without obtaining the Tenant’s consent for the purpose only of obtaining finance prior to
completion of the Construction Works.
	 
	9.2	 	Costs and Stamp Duty

	 	(a)	 	Each party must
The Tenant will bear its own the costs in relation
to the preparation, negotiation and settling of this Deed and of this document and
the Lease.
	 
	 	(b)	 	The Tenant must pay all stamp duty assessed on this Deed or the grant of the
Lease.

	9.3	 	Tenant to reimburse Landlord
	 
	 	 	The Tenant must reimburse to the Landlord on demand any amount payable by the Tenant
under this Deed which is paid by the Landlord.
	 
	9.4	 	Notices
	 
	9.4.1	 	A party notifying or giving notice under this Lease must do so:

	 	(a)	 	in writing, signed by:

	 	(i)	 	that party; or
	 
	 	(ii)	 	that party’s attorney, solicitor, agent, director, manager,
secretary or other duly authorised officer.

	 	(b)	 	addressed to the facsimile number or address of the recipient specified in
Item 4 of Schedule 1 or as altered by notice given in accordance with this clause; and
	 
	 	(c)	 	hand delivered or sent by facsimile to that facsimile number or by prepaid
post to that address.

	9.4.2	 	A notice given in accordance with clause 9.4.1 will be deemed received: 

	 
	 	(a)	 	if
hand delivered, on the date of delivery; and

 

10

	 	(b)	 	if sent by prepaid post, when it would be delivered in the ordinary course
of post; and
	 
	 	(c)	 	if sent by facsimile transmission, shall in the absence of proof to the
contrary be deemed to have been received by the party to whom it was sent on the date
of despatch provided that:

	 	(i)	 	the recipient’s acknowledgement of receipt appears on the
sender’s copy
of the notice or on the activity record print-out of the sender’s machine or
the activity record print-out of the sender’s machine shows a successful
transmission of any appropriate sized document to the recipient’s facsimile
machine on the date indicated on the print-out; and
	 
	 	(ii)	 	if the time of despatch is later than 4.00pm in the place to
which the facsimile is sent it shall be deemed to have been received at the
commencement of business on the next business day in that place.

	9.4.3	 	Where a party comprises more than one person, service on one may be relied on as service
on all.
	 
	10.	 	CONSENT OF MORTGAGEE
	 
	 	 	The Landlord shall at its own expense obtain from any mortgagee of the Landlord
holding a mortgage over the Premises or any part an unconditional consent to the execution
of this Deed and granting of the Lease.
	 
	11.	 	RIGHT OF INSPECTION
	 
	 	 	The Tenant shall at all reasonable times be entitled to inspect the Premises during the
course of the Construction Works.
	 
	12.	 	INSURANCE
	 
	 	 	The Landlord must insure the Premises for contractors all risk insurance in respect of the
Construction Works, public liability risk for no less than $10,000,000 in respect of a
single claim and workers compensation insurance as required by statute to the reasonable
satisfaction of the Tenant.

 

11

SCHEDULE 1

REFERENCE SCHEDULE

ITEM 1: ANTICIPATED COMPLETION DATE

	 	 	1 June 31 August 2000

ITEM 2: COMMENCING RENT

	 	 	$514.000.00 per annum

ITEM 3: TERM

	 	 	10 years with the option for one further term of 10 years

ITEM 4: ADDRESS FOR SERVICE

	 	(a)	 	Landlord
	 
	 	 	 	Michael Ferraro

of 78 Chifley Drive, Preston, Victoria
	 
	 	(b)	 	Tenant
	 
	 	 	 	Comweld Group Pty Ltd ACN 007 226 815
 of 85 Chifley Drive, Preston,
Victoria

 

12

SCHEDULE 2

LAND

(see attached plans)

 

13

SCHEDULE 3

LEASE

 

 

MICHAEL FERRARO

(the ‘Landlord’)

COMWELD GROUP PTY LTD

ACN 007 226 815

(the ‘Tenant’)

LEASE

PART 73 GOWER STREET, PRESTON

MINTER ELLISON

Lawyers

Rialto Towers

525 Collins Street

MELBOURNE VIC 3000

DX 204 MELBOURNE

Telephone (03) 9229 2000

Facsimile (03) 9229 2666

Reference DJMC 1320080

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	 
	 	 	 	 
	1. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	2. SEVERANCE
	 	 	2 3	 
	 
	 	 	 	 
	3. TERM AND HOLDING OVER
	 	 	3	 
	3.1 Term
	 	 	3	 
	3.2 Monthly tenancy
	 	 	4	 
	3.3 Reservation
	 	 	3 4	 
	 
	 	 	 	 
	4. ANNUAL RENT
	 	 	3 4	 
	4.1 Tenant’s covenant
	 	 	3 4	 
	4.2 Payment of rent
	 	 	3 4	 
	4.5 Invoice 4
	 	 	 	 
	 
	 	 	 	 
	5. RENT REVIEW
	 	 	4 6	 
	5.1 Market Rent Review
	 	 	4 6	 
	 
	 	 	 	 
	6. OPTION TO RENEW
	 	 	5 7	 
	6.1 Exercise of option
	 	 	5 7	 
	6.2 Terms of renewed lease
	 	 	5 7	 
	 
	 	 	 	 
	7. OUTGOINGS
	 	 	6 8	 
	7.1 Tenant to pay Outgoings
	 	 	6 8	 
	7.2 Tenant to pay for services to the Premises
	 	 	6 8	 
	7.4 Tenant to pay for services to the Premises
	 	 	7 9	 
	 
	 	 	 	 
	8. DAMAGE OR DESTRUCTlON
	 	 	7 9	 
	8.1 Suspension of rent
	 	 	7 9	 
	8.2 Damage or destruction
	 	 	8 9	 
	8.3 Dispute
	 	 	8 10	 
	 
	 	 	 	 
	9. ASSIGNMENT AND MORTGAGES
	 	 	8 10	 
	9.1 Transfers and dealings
	 	 	8 10	 
	9.2 Agreement between the parties
	 	 	10 10	 
	 
	 	 	 	 
	10. REPAIRS AND MAINTENANCE
	 	 	10 11	 
	10.1 Tenant to repair the Premises
	 	 	10 11	 
	10.2 Tenant to maintain the Premises
	 	 	10 12	 
	 
	 	 	 	 
	11. INSURANCE
	 	 	11 12	 
	11.1 Insurance
	 	 	11 12	 
	11.2 Evidence of insurance
	 	 	11 13	 
	11.3 Tenant to pay premiums
	 	 	11 13	 
	11.4 Tenant is to pay extra premiums
	 	 	11 13	 
	11.5 Landlord to keep premises insured
	 	 	11 13	 
	11.6 Inflammable substances
	 	 	11 13	 

 

ii

	 	 	 	 	 

	11.7 Compliance with regulations concerning partitioning
	 	 	12 13	 
	 
	 	 	 	 
	12. INDEMNITY
	 	 	12 14	 
	12.1 Release of Landlord from liability
	 	 	12 14	 
	12.2 Specific indemnities
	 	 	13 14	 
	12.3 Negligence or default of the Landlord
	 	 	13 15	 
	 
	 	 	 	 
	13. USE OF PREMISES AND CONDUCT OF BUSINESS
	 	 	13 15	 
	13.1 Permitted use of the Premises
	 	 	13 15	 
	13.2
Compliance with Statutes and Requirements - Tenant
	 	 	14 16	 
	13.3 Failure by Tenant to comply
	 	 	14 16	 
	13.4 Overloading
	 	 	14 16	 
	13.5 Securing of the Premises
	 	 	14 16	 
	13.6 Use of appurtenances
	 	 	14 16	 
	13.7 Alterations and installations
	 	 	15 17	 
	13.8 Heating and cooling
	 	 	15 17	 
	13.9 Prohibition of smoking of tobacco or other plant products
	 	 	15 17	 
	13.10 Rodents and vermin
	 	 	15 17	 
	13.11 Infectious illness
	 	 	15 17	 
	13.12 Blocking windows
	 	 	16 18	 
	 
	 	 	 	 
	14. LANDLORD’S COVENANTS
	 	 	16 18	 
	 
	 	 	 	 
	15. DEFAULT AND TERMINATION
	 	 	16 18	 
	15.1 Tenant in default
	 	 	16 18	 
	15.2 Landlord’s right of re-entry
	 	 	16 18	 
	15.3 Interest on overdue moneys
	 	 	17 19	 
	15.4 Fundamental and essential terms
	 	 	17 19	 
	15.5 Landlord to mitigate damages
	 	 	17 19	 
	 
	 	 	 	 
	16. DETERMINATION OF TERM
	 	 	17 19	 
	16.1 Removal of Tenant’s Fixtures and Fittings
	 	 	17 19	 
	16.2 Tenant to yield up Prermises
	 	 	18 20	 
	16.3 Failure by Tenant to remove its Fixtures and Fittings
	 	 	18 20	 
	 
	 	 	 	 
	17. RIGHTS RESERVED BY LANDLORD
	 	 	18 20	 
	17.1 Landlord’s right to enter, view and repair
	 	 	18 20	 
	17.2 Tenant to reimburse Landlord
	 	 	19 21	 
	17.3 Tenant to permit inspection and display of signs
	 	 	19 21	 
	17.4 Landlord to minimise disturbances
	 	 	19 21	 
	 
	 	 	 	 
	18. COSTS AND STAMP DUTY
	 	 	19 21	 
	18.1 Costs
	 	 	19 21	 
	18.2 Stamp duty
	 	 	20 22	 
	 
	 	 	 	 
	19. GOVERNING LAW AND JURISDICTION
	 	 	20 22	 
	19.1 Governing law
	 	 	20 22	 

 

iii

	 	 	 	 	 

	19.2 Jurisdiction
	 	 	20 22	 
	 
	 	 	 	 
	20. MISCELLANEOUS
	 	 	20 22	 
	20.1 Notices
	 	 	20 22	 
	20.2 Naming Rights
	 	 	20 22	 
	 
	 	 	 	 
	21. INTERPRETATION
	 	 	21 23	 

 

 

			
	LEASE dated
	 	2000

	 	 	 

	BETWEEN

	 	MICHAEL FERRARO

of 68 Chifley Drive. Preston, Victoria (‘Landlord’)
	 	 	 
	AND

	 	COMWELD GROUP PTY LTD ACN 007 226 815

of 85 Chifley Drive. Preston, Victoria (‘Tenant’)

	1.	 	DEFINITIONS
	 
	 	 	In this lease:
	 
	 	 	‘Authority’ means any statutory, public or other authority and (without limitation) includes
any government, semi or local government, city, municipal, health, licensing or civic
authorities or body or any consultant or representative acting on behalf of any of those
authorities or bodies;

	 	 	‘Annual Rent’ means the amount set out in Item 5 as varied in accordance with the provisions
of this lease which for the avoidance of doubt is the amount without regard to any
amount required to be paid because of the application of clause 4.3
of this Lease;
	 
	 	 	‘Commencement Date’ means the date set out
in Item 2; 

‘Corporation’ means a
corporation as defined in the Corporations Law; 

‘Fixed Review Date’ means each of
the dates set out in Item 6(b);
	 
	 	 	‘Fixtures and Fittings’ means the Tenant’s Fixtures and Fittings and the Landlord’s
Fixtures and Fittings:

‘GST Review Date’ means each date on which a Change occurs in the rate of GST in respect of taxing
supplies made by the Landlord under this lease;

	 	 	‘Institute’ means the Victorian Division of the Australian Property Institute (Inc);

‘Item’ means an item in the schedule forming part of this lease;

‘Land’ means the Land
described in Item 1;
	 
	 	 	‘Landlord’ includes the person entitled to
possession of the Premises when this lease ends;
	 
	 	 	‘Landlord’s Employees’ includes the Landlord’s employees, agents, contractors, invitees
or others who may at any time be authorised by the Landlord to be in
the Premises;
	 
	 	 	‘Landlord’s Fixtures and Fittings’ includes but is not limited to all plant and equipment
mechanical or not mechanical, fixtures, furniture, furnishings of whatever nature including
window coverings, blinds and light fittings in the Premises at the Commencement Date or from
time to time supplied by the Landlord;
	 
	 	 	‘Market Review Date’ means each of the dates set out in Item 6(a);

 

2

	 	 	‘Outgoings’ means all rates, taxes (excluding income tax and other taxes of like nature and
excluding any tax in the nature-of-a-goods and services tax, value added tax or consumption tax)
and-charges at any time the total costs of all outgoings, costs and expenses of the Landlord
now or in the future properly assessed, charged or chargeable paid or payable to any Authority
or otherwise incurred upon or in respect of the Premises or any part of the Premises and
charges Land or upon the Landlord in relation to the Land and in particular without limitation
includes:

	 	(a)	 	all taxes payable in respect of the Promises of a recurrent and non-capital
nature. Land tax will be Land or in respect of the Landlord’s ownership or occupancy
calculated on the basis that the Premises is the only land owned Land is not subject to a
special trust as defined in the Land Tax Act 1958 and calculated on a single holding basis
(including all State and Federal Land Tax but excluding Income Tax payable by the Landlord
in Victoria;
on its income);
	 
	 	(b)	 	all rates, charges, assessments, duties, impositions and fees of any public
municipal government or statutory body, authority or department charged imposed or assessed
on or in respect of the Land PROVIDED THAT such rates and charges are of a non capital and
recurrent nature;
	 
	 	(c)	 	all insurance premiums and associated charges payable by the Landlord in
respect of the Premises, its fixtures and fittings and installed plant against damage by
fire water damage and other casualty risks and other insurance including accident
compensation, third party liability, liability for loss injury or damage to persons or
property (including the Landlord’s fixtures and fittings), damage to or destruction of plate
glass to full replacement value, loss of rent in an amount equal to 1 years rental,
consequential loss and such other usual risks as the Landlord may deem reasonable necessary
in relation to the Premises or the Landlord’s ownership or
interest in the Land;
	 
	 	(d)	 	all charges for or in respect of water, gas, electricity, light, power, fuel,
telephone, sewage, garbage, pest control and extermination caretaker costs, garden and
horticultural maintenances expenses and other services or
requirements furnished or supplied to
the Premises for the general benefit_or purpose of the Premises;
	 
	 	(e)	 	all costs of repairs painting and maintenance of the Premises but excluding
work of a structural and expenses incurred of a capital nature;
	 
	 	(f)	 	all operating and runnings costs of lighting, fire fighting equipment,
sprinklers, thermal alarms, pumps, ventilating equipment, lifts, hot water service, air
conditioning, heating or cooling or any other plant, equipment or services in
the premises;

	 	 	‘Premises’ means the Land and improvements and includes the Landlord’s Fixtures and Fittings;
	 
	 	 	‘Related Corporation’ means a related body
corporate under the Corporations Law;
	 
	 	 	‘Requirement’ means any requirement notice order or direction received from or given by any
Authority;

 

3

	 	 	‘Specified Rate’ means interest at the rate for the time being fixed under section 2 of the
Penalty lnterest Rate Act 1983;
	 
	 	 	‘State’ means the State of Victoria;
	 
	 	 	‘Statute’ means any legislation in force of the Parliament of the Commonwealth of Australia
or the State and any rule, regulation, ordinance, by-law, statutory instrument, order or
notice made under legislation;
	 
	 	 	‘Tenant’s Employees’ means the Tenant’s employees, agents, contractors, invitees,
sub-tenants or others allowed by the Tenant to be in or on the Premises;
	 
	 	 	‘Tenant’s Fixtures and Fittings’ includes all fixtures, fittings, plant, equipment and other
articles in the Premises in the nature of trade or tenants fixtures and chattels which are
not Landlord’s Fixtures and Fittings;
	 
	 	 	‘Term’ means the term of this lease as set out in Item 4 commencing on the
Commencement Date and expiring on the Termination Date;
	 
	 	 	‘Termination Date’ means the date set out in
Item 3; and
	 
	 	 	‘Valuer’ means a valuer who is a full member of the Institute and with a minimum of five
years experience in valuations of premises of a similar nature to the Premises.
	 
	2.	 	SEVERANCE

	 	(a)	 	A construction of this lease that results in all provisions being enforceable
is to be preferred to a construction that does not so result.
	 
	 	(b)	 	If despite the application of paragraph (a), a provision of this document
is illegal or unenforceable:

	 	(i)	 	and it would be legal and enforceable if a word or words were
omitted, that word or those words are severed; and
	 
	 	(ii)	 	in any other case, the whole provision is severed;

	 	 	 	and the remainder of this document continues in force.

	3.	 	TERM AND HOLDING OVER
	 
	3.1	 	Term
	 
	 	 	The Landlord leases to the Tenant the Premises for the Term starting on the
Commencement Date and ending on the Termination Date unless terminated earlier in accordance
with the provisions of this lease.

 

4

	3.2	 	Monthly tenancy
	 
	 	 	The Tenant will be a monthly Tenant subject to the provisions of this lease if the
Landlord allows the Tenant to continue to occupy the Premises after the Termination Date
without a further lease being entered into. The monthly tenancy may be terminated by
either party giving the other party one month’s written notice.
	 
	3.3	 	Reservation
	 
	 	 	The Landlord reserves to itself and any person authorised by it the use of the exterior
walls and the roof and the right to install maintain, use, repair, alter and replace
pipes, ducts, conducts and wires. The Landlord also reserves itself and any person
authorised by it to enter the Premises for these purposes. In exercising these rights the
Landlord will not interfere with the Tenant in its use of the Premises more than is
necessary.
	 
	4.	 	ANNUAL RENT
	 
	4.1	 	Tenant’s covenant

	 	(a)	 	The Tenant must pay the Annual Rent to the Landlord during the Term.

	 	(b)	 	Despite clause 4.1(a), the Tenant is not required to pay that part of the
Annual Rent attributable to the first month of the Term;

	4.2	 	Payment of rent
	 
	 	 	The Annual Rent must be paid:

	 	(a)	 	by consecutive monthly instalments in advance;
	 
	 	(b)	 	on the Rent Commencement Date and then on the first day of each month
during the Term;
	 
	 	(c)	 	with each payment equal to one twelfth of the Annual Rent (excluding the
first and last payment which must be proportionate if necessary); and
	 
	 	(d)	 	to the Landlord at the address set out in Item 10 or to any other
payee or address as indicated in writing by the Landlord to the Tenant.

	4.3	 	Increase by GST

	 	(a)	 	The parties agree that;

	 	(i)	 	all Payments have been calculated without regard to the impact of GST;
	 
	 	(ii)	 	if the whole_or any part of any Payment is the Despite the other
provisions of this lease, each payment of Annual Rent and any other
consideration for a supply subject to GST the Landlord makes under this
Iease-except-for the fcimburscment of Outgoings under clause 7.1
increases by Taxable Supply, the payer must pay to the payee an
additional amount equal to the GST Rate from and
including 1 July 

 

5

2010 and each GST Review Date. Amount, either concurrently with that
Payment or as otherwise agreed in writing; and

4.4-Refund (iii) the payee will provide to the payer a Tax Invoice
at the same time as which any GST Amount is payable.

The-Landlord shall refund to the Tenant all or part of any amount the Tenant-pays
during the New Tax System Transition Period having regard to the mailer to which
the

	 	(b)	 	The Landlord is obliged at law-to-have-regard to pursuant to
the-provisions of Part VB of
will comply with its
obligations under the Trade Practices Act 1974 when calculating the amount of any Payment.

	 	(c)	 	The Landlord will provide to the Tenant any information reasonably
requested by the Tenant relating to the Lessor’s Input Tax
Credits and the amount of any
costs incurred by the Landlord in connection with supplies made by the Landlord under
this Lease.

	 	(d)	 	In this clause, the following definitions shall apply
	 
	 	 	 	GST means the goods and services tax as imposed by
the GST Law together with
any related interest, penalties, fines or other charges to the extent that they
arise from the Tenant’s failure to pay when due.
	 
	 	 	 	GST Amount means any Payment (or the relevant party of the Payment)
multiplied by the appropriate rate of GST (currently 10%).
	 
	 	 	 	GST
Law has the meaning given to the term in A New Tax System (Goods and
Services Tax) Act 1999, or if that Act does not exist for any reason, means any
Act imposing or related to the imposition or administration of a goods and
services tax in Australia and any regulation made under that Act.
	 
	 	 	 	Input
Tax Credit has the meaning given to that term by the GST Law.
	 
	 	 	 	Outgoings
excludes any GST forming part of the relevant expense when incurred
by the Lessor for which the Landlord can claim_an Input Tax Credit._ The Landlord
will be assumed to be entitled to full Input_Tax Credits unless it can claim
otherwise prior to the date of any Payment.
	 
	 	 	 	Payment means:

	 	(a) 	 	any Rent or contribution to Outgoings; and

	 	(b) 	 	any other amount payable under or in connection with this lease,
by the Landlord or the Tenant, including any amount payable by way of
indemnity, reimbursement or otherwise, other than a GST Amount:

Tax
Invoice has the meaning given to that term by the GST Law.

Taxable
Supply has the meaning given to that term by the GST Law..

4.5 Invoice

 

6

The Landlord must give the Tenant a tax invoice for any payment relating to a period
spanning or after I July 2000 before the Tenant is obliged to make that payment.

	5.	 	RENT REVIEW
	 
	5.1	 	Market Rent Review
	 
	 	 	The Annual Rent must be reviewed on each Market Review Date as follows:

	 	(a)	 	at least 60 days prior to a Market Review Date the Landlord must notify the
Tenant of the amount in writing (‘Landlord’s Amount’) which it considers should be
the Annual Rent market rental value as from the Market Review Date of
each-further term (‘Landlord’s Notice’); and
	 
	 	(b)	 	the Tenant must advise the Landlord in writing of its
objection (‘Tenant’s
Notice’) within 30 days of receiving the Landlord’s Notice if the Tenant
disputes the Landlord’s Amount. The Tenant’s Notice must set out an alternative
sum which the Tenant considers should be the Annual Rent as from the Market
Review Date of such further term
	 
	 	(c)	 	the Annual Rent market rental value will be determined by a Valuer
appointed by the President of the Institute at the request of either the Landlord or
the Tenant if within 30 days of receiving the Tenant’s Notice, the Landlord and
Tenant cannot agree on the Annual Rent market rental value;
	 
	 	(d)	 	the Valuer will determine the Annual Rcnt at the Market Review Date of such
further term. The market rental value on a GST exclusive basis;
	 
	 	(e)	 	the determination of
 the valuer will be final and binding
on the parties;
	 
	 	(e)(f)	 	in determining the Annual Rent market rental
value the Valuer must:

	 	(i)	 	act as an expert and not as an arbitrator;
	 
	 	(ii)	 	have regard to:

	 	(A)	 	the length of the Term;
	 
	 	(B)	 	the provisions of this lease with
vacant possession of the Premises;
	 
	 	(C)	 	the rental of comparable premises,
discounted where necessary for any GST payable in respect of the
supplies for which such rent is the consideration;

(D) the fact that the Landlord-may be required to pay GST in respect of supplies made by it
undcr-or-in connection with this lease and for which-the-Annual-Rent is the consideration;

	 	(iii)	 	and must disregard:

 

7

	 	(A)	 	the value of any goodwill attributable to any
business conducted by the Tenant in the Premises;
	 
	 	(B)	 	the value of the Tenant’s Fixtures and
Fittings or any other improvements voluntarily made by the Tenant;
and
	 
	 	(C)	 	any failure by the Tenant to
comply with the provisions contained in this lease.
	 
	 	(D)	 	the fact that the Landlord may be required to pay GST in
respect of supplies made by it under or in connection with this
lease and for which the Annual Rent is the consideration;

	 	(g)(f)	 	Before the resolution and determination of the Annual Rent the Tenant
must continue to pay the Annual Rent payable immediately before the Commencement Date
of such further term Market Review Date. Within seven days of the
determination of the Annual Rent any adjustment must be made between the parties.
	 
	 	(g)(h)	 	The rent as determined must not be less than the Annual Rent for
the year immediately preceding the relevant Market Review Date.

	5.2	 	Fixed Rent Review
	 
	 	 	The Annual Rent must be increased on each Fixed Review Date by an amount equal to
103% of the Annual Rent for the year immediately preceding the relevant Fixed Review Date.
	 
	6.	 	OPTION TO RENEW
	 
	6.1	 	Exercise of option
	 
	 	 	The Tenant must notify the Landlord in writing at least three eight months before
the Termination Date if the Tenant wishes to lease the Premises for the further term set
out in Item 9.
	 
	6.2	 	Terms of renewed lease
	 
	 	 	After the exercise of the option referred to in clause 6.1 (Exercise of option), the
Landlord will grant to the Tenant a further lease of the Premises for the period set out
in Item 9 provided the Tenant is not in breach either at the time of exercising its option
(of which breach it has been given a reasonable period to rectify and has failed to do
so). The further term commences on the day following the Termination Date and will contain
the same provisions as this lease except that:

	 	 (a)	 	if this is the last of the further terms referred to in Item 9 this clause
must be deleted;
	 
	 	 (b)	 	the Annual Rent for the first year of the further term will be
determined in accordance with clause 5.1;

 

8

	 	 (c)	 	the dates set out in Items 2 and 3 will be replaced with the Commencement
Date and Termination Date of the renewed lease;
	 
	 	 (d)	 	the Term in Item 4 will be replaced by the further term set out in Item 10.
If there is more than one further term in Item 10 then Item 10 will be amended to
reduce the further terms by one; and
	 
	 	 (e)	 	Item 6 will be amended so that the Market Review Dates and Fixed Review
Dates are in accordance with the exercise of the option.

	7.	 	OUTGOINGS
	 
	7.1	 	Tenant to pay Outgoings

	 	 (a)	 	The Tenant must pay all Outgoings when due.
	 
	 	 (b)	 	The Landlord may pay any of the Outgoings which the Tenant has failed to
pay. If the Landlord does pay those Outgoings the Tenant must immediately pay to the
Landlord when requested the amounts which the Landlord has paid.

	7.2	 	Tenant to pay for services to the Premises
	 
	 	 	The Tenant must pay all charges for the supply of any service to the Premises when due
including gas, electricity, water and telephone.
	 
	7.3	 	Tenant to pay Outgoings

	 	 (a)	 	The Tenant must pay all Outgoings when due as from the Commencement Date,
provided that if the notice for payment is sent to the Landlord, the Landlord may
either pay such Outgoing and seek reimbursement from the Tenant or request the Tenant
to pay such Outgoing direct, in either case such payment must be made by the Tenant
within 14 days of receipt of notice of such Outgoing.
	 
	 	 (b)	 	The Landlord may pay any of the Outgoings which the Tenant has failed to
pay. If the Landlord does pay those Outgoings the Tenant must immediately pay to the
Landlord when requested the amounts which the Landlord has paid.

(c) The cost of each-component of Outgoings to the Landlord is to-be calculated as follows:

(A - B) x (1 ÷ C ÷ D)

where:

A the GST—inclusive price of the component for Outgoings, being the amount paid-by-the Landlord:

B — the GST input tax credit for which the Landlord is eligible on the component of Outgoings:

C the GST Adjustment Amount expressed as a decimal, and

 

9

D — the sum of all Further GST Adjustment Amounts expressed as a decimal.

For the purpose of applying-(the-formula set-out immediately above, the Landlord must upon demmand
provide the Tenant-with sufficient evidence to enable the Tenant to determine, to the Tenant’s
reasonable satisfaction.-the amount of the input tax credit for which the Landlord is
eligible.

	7.4	 	Tenant to pay for services to the Premises
	 
	 	 	The Tenant must pay all charges for the supply of any service to the Premises
including gas, electricity, water and telecommunications when due.
	 
	8.	 	DAMAGE OR DESTRUCTION
	 
	8.1	 	Suspension of rent

	 	 (a)	 	The whole or a proportionate part of the Annual Rent or Outgoings will
be suspended if:

	 	 (i)	 	the whole or part of the Premises is damaged resulting in whole or
part of the Premises being unfit for the occupation and use of the
Tenant; or
	 
	 	 (ii)	 	access to the Premises is interrupted
making the Premises inaccessible.

The amount suspended will be determined by reference to the nature and extent of
the damage sustained.

	 	 (b)	 	The suspension of the Annual Rent or Outgoings will continue
until:

	 	 (i)	 	the Premises are made fit for the occupation of the Tenant;
	 
	 	 (ii)	 	the Premises are accessible to the Tenant;
	 
	 	 (iii)	 	the lease terminated under the provisions of this lease.

	 	 (c)	 	The Annual Rent or Outgoings will not be suspended if payment of the
Landlord’s insurance claim in respect of the damage or destruction is properly
refused because of any wilful or negligent act or omission by the Tenant or the
Tenant’s Employees.

	8.2	 	Damage or destruction

	 	 (a)	 	If the whole or part of the Premises is damaged or unfit for occupation by
the Tenant the Tenant may at its election terminate this Lease by notice in writing
within 30 days of the event of damage or subject to clause 8.2(b), require the
Landlord to rebuild the Premises within a reasonable time.
	 
	 	 (b)	 	The Landlord is under no obligation to rebuild the Premises if:

 

10

	 	 (i)	 	the estimated cost of rebuilding and/or reinstating the Premises
exceeds the amount received by the Landlord under any insurance policy
taken out by the Landlord over the Premises provided the inadequacy of
such insurance is not due to the fault of the Landlord;
or
	 
	 	 (iv)	 	rebuilding the Premises in the same or substantially the same
construction materials, or to the same or substantially the same dimensions,
or at all, is prohibited under any statues in force at the relevant time.

	 	 (c)	 	If the Landlord is obliged to rebuild the Premises it must do so with due

expedition and in a proper and workmanlike manner failing which the Tenant may
end this Lease on 14 days prior written notice.
	 
	 	 (d)	 	If the Landlord is not obliged to rebuild the Premises under sub-clause (b)
then either party may forthwith terminate this Lease without compensation payable to
the other.
	 
	 	 (e)	 	Any termination referred to in this clause will be without prejudice to the
rights of either party in respect of any previous breach of any provisions of this
Lease.

	8.3	 	Dispute
	 
	 	 	Any dispute arising under this clause will be determined by a Valuer appointed by the
President for the time being of the Institute. In determining the dispute the Valuer must
act as an expert and not as an arbitrator. The determination of the Valuer appointed under
this clause is final and binding on both parties. The parties will equally share the
costs incurred in determining the dispute.

	9.	 	ASSIGNMENT AND MORTGAGES
	 
	9.1	 	Transfers and dealings
	 
	 	 	The Tenant must not assign, transfer, sublet, part with, share the possession of,
grant any licence, mortgage, charge or otherwise deal with the whole or part of the
Premises or this lease without the Landlord’s prior written consent.
	 
	9.2	 	Agreement between the parties
	 
	 	 	It is agreed between the parties:

	 	 (a)	 	that section 144(1) of the Property Law Act 1958 (Vic) does not apply; and
	 
	 	 (b)	 	that the Landlord will not unreasonably withhold its consent to the
Tenant assigning, transferring, licensing or subleasing where:

	 	 (i)	 	at the time the Tenant notifies the Landlord of its wish to assign or
transfer the lease or sublease the Premises the Tenant is not in default
under this lease;

 

11

	 	 (ii)	 	there are no subsequent defaults by the Tenant;
	 
	 	 (iii)	 	the Tenant pays the costs and disbursements
incurred by the Landlord in giving its consent: and
	 
	 	 (iv)	 	the Tenant proposes to assign, transfer, sublease
or grant or licence to a person who:

	 	 (A)	 	proves to the reasonable satisfaction
of the Landlord that he or she is a responsible, respectable and
solvent person;
	 
	 	 (B)	 	enters into an agreement with the
Landlord and the Tenant in a form approved by the Landlord that he
or she will comply with the provisions of this lease;
	 
	 	 (C)	 	if the proposed assignee or sub-tenant
is a company (not listed on the Australian Stock Exchange) provides
the Landlord with a guarantee by the directors of the proposed
assignee or sub-tenant of the performance of its obligations under
this lease if the Landlord requests this;

	 	 (c)	 	notwithstanding anything contained in this Lease the Tenant may assign or
sub-let to Related Corporation of the Tenant without the Landlord’s written consent;
	 
	 	 (d)	 	that if the Tenant assigns, sublets or otherwise deals with this lease or the
Premises under this clause 9, the Tenant will remain liable under this lease and will
not be released from its obligations whether in respect of past, present or future
breaches of its obligations under this lease.

	10.	 	REPAIRS AND MAINTENANCE
	 
	10.1	 	Tenant to repair the Premises

	 	 (a)	 	The Tenant will keep the Premises and all Fixtures and Fittings in good
repair and in the same condition as at the Commencement Date or the date on which the
Tenant entered into occupation of the Premises (whichever is the earlier). At the
expiration or sooner determination of the Term (unless there is a further lease in
place) the Tenant must give up the Premises to the Landlord in good repair.
	 
	 	 (b)	 	The obligations of the Tenant under this clause 10 and clause 13.2
(Compliance with Statutes and Requirements) do not require the Tenant to:

	 	 (i)	 	repair damage arising from fair wear and tear except in the
circumstances referred to in clause 10.2 (Tenant to maintain the
Premises):
	 
	 	 (ii)	 	repair damage caused by risks against which the Landlord has insured
unless payment under the insurance has been lawfully refused because

 

12

	 		 	of the wilful or negligent acts or omissions of the Tenant or the
Tenant’s Employees; and
	 
	 	 (iii)	 	repair or make alterations or additions to the
structure of the Premises or spend money on items of a capital nature unless
this work or expense is necessary because:

	 	 (A)	 	the Tenant or the Tenant’s Employees have been negligent;
	 
	 	 (B)	 	the Tenant is in breach of its obligations under this lease;
	 
	 	 (C)	 	of the installation of machinery on the Premises;
	 
	 	 (D)	 	of the number of persons or sex of
those persons employed by the Tenant; or
	 
	 	 (E)	 	of the Tenant’s particular use or occupation of the Premises.

	10.2	 	Tenant to maintain the Premises
	 
	 	 	Despite the fact that any damage or disrepair is attributable to fair wear and tear the
Tenant must at its own cost and using tradesmen approved by the Landlord:

	 	 (a)	 	keep the Premises in a thorough state of cleanliness at all times and ensure that
all waste is placed regularly in suitable containers and removed from the
Premises;
	 
	 	 (b)	 	where there is any damage done to the Premises as a result of any wilful or
negligent act or omission of the Tenant or the Tenant’s Employees immediately
repair the Premises to its former condition;
	 
	 	 (c)	 	immediately replace all glass broken by the Tenant or the Tenant’s Employees;
	 
	 	 (d)	 	replace all damaged or non-operative light globes and tubes in the Premises;
	 
	 	 (e)	 	at all times during the Term and as long as the Tenant remains in
possession or occupation keep and maintain clean and in good and substantial working
order and condition the airconditioning plant on the Premises. The Tenant must, at
its own cost, enter into, maintain and enforce a service contract with an
airconditioning contractor approved by the Landlord under which the contractor will
attend to regular periodic preventative maintenance and servicing of the
airconditioning plant. The Tenant will not be liable to repair or replace major
component parts such as major fans, chillers, compressors, motors, pumps and control
equipment.

	11.	 	INSURANCE
	 
	11.1	 	Insurance
	 
	 	 	The Tenant must take out and maintain the following insurance:

 

13

	 	 (a)	 	a public risk insurance policy applicable to the Premises for an amount not
less than the amount set out in Item 9 in respect of any single claim or a higher
amount where the Landlord notifies the Tenant in writing of this amount; and
	 
	 	 (b)	 	an insurance policy against the breakage of glass; and
	 
	 	 (c)	 	an insurance policy covering the Tenant’s Fixtures and Fittings and stock in the
Premises. This insurance must be for their full insurable value against damage
or destruction caused by fire, flood and any other insurable risk applicable to
the Tenant’s Fixtures and Fittings and stock.

	11.2	 	Evidence of insurance
	 
	 	 	The Tenant will when requested by the Landlord show the Landlord a certificate of
currency for the insurance policies taken out the by Tenant.
	 
	11.3	 	Tenant to pay premiums
	 
	 	 	The Tenant will pay all premiums and other moneys payable for the insurance policies
referred to in this clause when they become due and payable.
	 
	11.4	 	Tenant is to pay extra premiums
	 
	 	 	The Tenant must reimburse the Landlord for all extra premiums resulting from the
Tenant’s use of the Premises.
	 
	11.5	 	Landlord to keep premises insured
	 
	 	 	The Landlord will take out and maintain insurance over the Premises for their full
insurable value against damage or destruction caused by fire, explosion, lightning, flood,
storm and tempest, malicious action, impact of vehicles, earthquake, damage by aircraft,
breakdown of plant and equipment and other insurable risks applicable to the Premises.
The Tenant will immediately on request reimburse to the Landlord the amount of the
insurance premium.
	 
	11.6	 	Inflammable substances
	 
	 	 	The Tenant must not store chemicals, inflammable liquids, acetylene gas or alcohol,
volatile or explosive oils, compounds  substances on the Premises without the Landlord’s
prior written consent save for such storage as is necessary in the normal
course of the Tenant’s business.
	 
	11.7	 	Compliance with regulations concerning partitioning
	 
	 	 	The Tenant must comply with all insurance, sprinkler and fire alarm regulations in
respect of any partitions which may be erected by or on behalf of the Tenant on the
Premises. The Tenant must pay to the Landlord the cost of any alteration to the sprinkler
or fire alarm installation which may become necessary because of the Tenant not complying
with the requirements of the Landlord’s insurer or any Authority.

 

14

	12.	 	INDEMNITY
	 
	12.1	 	Release of Landlord from liability
	 
	 	 	The Tenant:

	 	(a)	 	acknowledges that:

	 	(i)	 	all property or effects which may be in the Premises during the Term
are at the sole risk of the Tenant; and
	 
	 	(ii)	 	the Landlord is not liable for any injury,
damage or loss that the Tenant suffers by reason of:

	 	(A)	 	the state or repair of the Premises;
	 
	 	(B)	 	leakage or condensation from the water
supply or from any sprinkler device or apparatus from the roof,
walls, gutter, downpipes:
	 
	 	(C)	 	any defect in the gas, water,
sewerage, heating, oil, electricity or air-conditioning fittings
or appliances or sprinkler systems in the Premises; or
	 
	 	(D)	 	the flooding of any part of the Premises;

	 	 	 	except as a result of the negligent or wilful act, omission or default
of the Landlord;

	 	(b)	 	agrees that the Landlord must not be responsible for and releases the
Landlord and the Landlord’s Employees from liability in respect of, injury to, loss
of or damage to

	 	(i)	 	any property or effects in the Premises;
	 
	 	(ii)	 	any person from or in the Premises;
	 
	 	(iii)	 	any person or property in the street, lanes
or lands adjacent to or adjoining the Premises;

	 	 	 	except as a result of the negligent or wilful act, omission or default of
the Landlord.

	12.2	 	Specific indemnities
	 
	 	 	The Tenant indemnifies the Landlord against all liabilities, losses, damages and costs
incurred or suffered directly or indirectly concerning:

	 	(a)	 	any loss, damage, death or injury to property or person inside or
outside the Premises caused by the neglect or default of the Tenant;

 

15

	 	(b)	 	the negligent or careless use, misuse, waste or abuse of the water,
gas, electricity, lighting or other services and facilities of the Premises
by the Tenant or the Tenant’s Employees;
	 
	 	(c)	 	any defect in the gas, electricity, water, sewerage or drainage supply
connections or fittings or appliances or services or other plant or equipment
including airconditioning fittings or appliances used in connection with the Premises
caused or contributed by any act or omission on the part of the Tenant or the
Tenant’s Employees;
	 
	 	(d)	 	failure of the Tenant to notify the Landlord of any defect, of which the
Tenant is actually aware, in any of the mechanical or other services in the Premises;
	 
	 	(e)	 	any faulty Tenant’s Fittings and Fixtures;
	 
	 	(f)	 	any damage, expense, loss or liability to property or person or suffered or
incurred by any persons arising out of the use of the Premises by the Tenant or
the Tenant’s Employees; or
	 
	 	(g)	 	any damage, expense, loss or liability to property or person
suffered as a result of the items set out in clause 12.2(a)(ii) (Release of Landlord
from liability);

	12.3	 	Negligence or default of the Landlord
	 
	 	 	The releases, responsibilities and indemnities in clause 12 do not apply to any act,
matter, thing or consequence if it arises out of the negligent or wilful act, omission or
default of the Landlord or the Landiord’s Employees.

	13.	 	USE OF PREMISES AND CONDUCT OF BUSINESS
	 
	13.1	 	Permitted use of the Premises
	 
	 	 	The Tenant must not:

	 	(a)	 	use or allow anyone else to use the Premises for any purpose other than the
permitted use as described in Item 8 or such other use as permitted by law;
	 
	 	(b)	 	use or allow anyone else to use the Premises for any illegal, noxious,
offensive or unpleasant trade or business;
	 
	 	(c)	 	without the prior written consent of the Landlord conduct or allow anyone
else to conduct in the Premises any auction sale; and
	 
	 	(d)	 	do anything in the Premises which is or may become an annoyance, nuisance,
grievance or disturbance to any owner or occupier of adjacent premises.

 

16

	13.2	 	Compliance with Statutes and Requirements — Tenant

	 	(a)	 	The Tenant must comply with all Statutes and Requirements relating to or
affecting:

	 	(i)	 	the Premises or any Tenant’s Fixtures and Fittings; or
	 
	 	(ii)	 	the use or occupation of the Premises;

	 	 	 	at its own expense unless clause 10.1(b) (Tenant to repair the Premises)
applies.
	 
	 	(b)	 	Where any Requirement is served on the Tenant, the Tenant shall promptly
give the Landlord a copy.

	13.3	 	Failure by Tenant to comply
	 
	 	 	If the Tenant fails to comply with or observe its obligations under clause 13.2
(Compliance with Statutes and Requirements) within a reasonable time of receiving written
notice from the Landlord to do so, the Landlord may exercise and use its rights powers and
privileges for the purpose of complying with or observing the Statute or Requirement.
The Landlord’s reasonable costs incurred in exercising its rights under this clause must be
reimbursed by the Tenant immediately on request.
	 
	13.4	 	Overloading
	 
	 	 	The Tenant must not bring onto or allow to be brought onto the Premises any heavy
machinery, plant or equipment without the Landlord’s prior written consent. Any damage caused
to the Premises by bringing them onto or removing them from the Premises will be repaired
by the Tenant.
	 
	13.5	 	Securing of the Premises
	 
	 	 	The Tenant must ensure that all exterior doors and windows in the Premises are
securely locked and fastened at all times when the Premises are not occupied.
	 
	13.6	 	Use of appurtenances
	 
	 	 	The Tenant and the Tenant’s Employees will not:

	 	(a)	 	use the appurtenances in the Premises for any purpose other than those for
which they were constructed; or
	 
	 	(b)	 	place any items or substances in the toilets, urinals, drains, basins
or sinks which they were not designed to receive;

	 	 	and the Tenant will pay to the Landlord, immediately on receiving an invoice, the
Landlord’s costs incurred by repairing all damage to the appurtenances from any misuse
caused by the Tenant or the Tenant’s Employees.

 

17

	13.7	 	Alterations and installations
	 
	 	 	The Tenant will not without the Landlord’s prior written consent which cannot
be unreasonably withheld:

	 	(a)	 	alter or make any additions to the Premises;
	 
	 	(b)	 	partition the Premises; or
	 
	 	(c)	 	change the partitions in the Premises.

	 	 	The Tenant must give the Landlord drawings and specifications prepared by a qualified
consultant when it asks for the Landlord’s consent under this clause. Any work must be
carried out by qualified contractors in accordance with the requirements of the
Authorities;
	 
	13.8	 	Heating and cooling
	 
	 	 	The Tenant must not use any method of heating cooling or lighting the Premises:

	 	(a)	 	other than appliances or equipment powered by electricity supplied through
the meters; or
	 
	 	(b)	 	which is in contravention of any insurance policy over the Premises.

	13.9	 	Prohibition of smoking of tobacco or other plant products
	 
	 	 	The Tenant must not smoke tobacco or any other plant products in the Premises.       
	 
	13.10	 	Rodents and vermin
	 
	 	 	The Tenant must take all reasonable precautions to keep the Premises free of
rodents, vermin, insects, pests, birds and animals. The Tenant must employ at it own
cost pest exterminators approved :by the Landloard if required by the
Landlord.
	 
	13.11	 	Infectious illness
	 
	 	 	The Tenant must:

	 	(a)	 	notify the Landlord and the relevant Authorities;
	 
	 	(b)	 	at the expense of the Tenant, fumigate and disinfect the Premises to the
satisfaction of the Landlord and the relevant Authorities; and
	 
	 	(c)	 	comply with any other reasonable and lawful requirements of the Landlord and
the proper Authorities.

	 	 	if any infectious illness occurs in the Premises.

 

18

	13.12	 	Blocking windows
	 
	 	 	The Tenant must not cover or obstruct any sky lights, glass panels,
ventilators or windows that reflect or admit light or air into the Premises.
	 
	14.	 	LANDLORD’S COVENANTS

	 	(a)	 	The Landlord will subject to the provisions of this lease allow the Tenant to
peaceably hold and enjoy the Premises during the Term without any interruption by the
Landlord or by any person claiming through the Landlord.
	 
	 	(b)	 	The Landlord covenants with the Tenant to keep and maintain the Premises in
good structural repair and condition and weatherproof.
	 
	 	(c)	 	The Landlord must comply with all statutes, regulations, orders, notices,
requirements or demands of any government, statutory, municipal or other public
authority affecting the Premises which are not otherwise the Tenant’s obligation
hereunder.
	 
	 	(d)	 	The Landlord must repair or replace airconditioning and fire services,
plant or capital items of such plant upon such plant being incapable of
repair. For the purposes of this clause capital items of airconditioning plant means
major fans, chillers, compressors, motors, pumps and control equipment.

	15.	 	DEFAULT AND TERMINATION
	 
	15.1	 	Tenant in default
	 
	 	 	The Tenant is in default of the lease if:

	 	(a)	 	the Annual Rent or any other moneys
owing by the Tenant to the Landlord is not paid within 14 days whether or not formal
demand for payment has been made;
	 
	 	(b)	 	the Tenant is in breach of any of its obligations under this lease;
	 
	 	(c)	 	the Tenant being a company enters into liquidation whether voluntary,
compulsory or provisional or is wound up or dissolved (other than for the
purposes of amalgamation or reconstruction); or
	 
	 	(d)	 	the Tenant stops or threatens to stop carrying on its Business.

	15.2	 	Landlord’s right of re-entry
	 
	 	 	The Landlord may re-enter the Premises if the default is because:

	 	(a)	 	the Tenant has not paid any rent which it is required to pay
under this lease within 14 days of the due date; or
	 
	 	(b)	 	the Tenant is in breach of any of its other obligations under this lease and has
not remedied the breach if the breach is capable of being remedied or made

 

19

	 	 	 	compensation in money for the breach if the breach is not capable of being
remedied within a reasonable time as set out in a notice given to the Tenant by
the Landlord setting out the default and requesting the Tenant to remedy the
breach or make compensation in money for the breach.

	 	 	Once the Landlord re-enters the Premises, the lease will end but the Landlord’s right to
recover moneys owing under this lease or to recover damages will not be affected.
	 
	15.3	 	Interest on overdue moneys
	 
	 	 	Without prejudice to the rights, powers and remedies of the Landlord under this
lease, the Tenant will pay interest at the Specified Rate to the Landlord from the due
date until the date such moneys are paid. Interest will be recoverable in the same way as
rent in arrears.
	 
	15.4	 	Fundamental and essential terms
	 
	 	 	Failure by the Tenant to perform and observe any of the
Tenant’s obligations under;

	 	(i)	 	clause 4 -  Rent;
	 
	 	(ii)	 	clause 7 -  Outgoings; 
	 
	 	(iii)	 	clause 9 -  Assignment and mortgages;
	 
	 	(iv)	 	clause 10 -  Repairs and maintenance;
	 
	 	(v)	 	clause 11 -  Insurance; or
	 
	 	(vi)	 	clause 13 -  Use of Premises and conduct of business;

	 	 	is a breach of an essential term of this lease.
	 
	15.5	 	Landlord to mitigate damages
	 
	 	 	If the Tenant vacates the Premises whether with or without the Landlord’s consent, the
Landlord must take reasonable steps to mitigate its damages and to lease the Premises at a
reasonable rent and on reasonable terms. In doing this the Landlord will not be
considered to be accepting the Tenant’s breach and the lease will not be considered
repudiated or surrendered by operation of law.
	 
	16.	 	DETERMINATION OF TERM
	 
	16.1	 	Removal of Tenant’s Fixtures and Fittings

	 	(a)	 	At or before the Termination Date (unless there is a further lease in place) or
sooner determination of this lease the Tenant may remove from the Premises the
Tenant’s Fixtures and Fittings.

 

20

	 	(b)	 	The Tenant must not cause any damage to the Premises when removing the
Tenant’s Fixtures and Fittings. If any damage is caused the Tenant will repair
the damage.

	16.2	 	Tenant to yield up Premises
	 
	 	 	The Tenant must on the Termination Date or sooner determination of this lease return
possession of the Premises to the Landlord in a state of repair which complies with the
Tenant’s obligations under this lease.
	 
	16.3	 	Failure by Tenant to remove its Fixtures and Fittings
	 
	 	 	If the Tenant does not remove its Fixtures and Fittings at the end of the lease the
Landlord may without being liable in any way to the Tenant:

	 	(a)	 	deal with the Tenant’s Fixtures and Fittings as if it were the Landlord’s
property;
	 
	 	(b)	 	remove and store the Tenant’s Fixtures and Fittings in such a way as the
Landlord thinks fit or
	 
	 	(c)	 	treat the Tenant’s Fixtures and Fittings as abandoned.

	17.	 	RIGHTS RESERVED BY LANDLORD
	 
	17.1	 	Landlord’s right to enter, view and repair
	 
	 	 	The Landlord and the Landlord’s Employees have the right to enter onto the Premises with
all necessary equipment at all reasonable times after giving notice except in the case of
an emergency when no notice need be given:

	 	(a)	 	to ascertain whether or not there has been any breach of the provisions of
this lease;
	 
	 	(b)	 	to carry out repairs or other works to the Premises or any services in the
Premises or to any adjacent building which the Landlord considers is reasonably
necessary or in relation to any matter or thing which the Landlord is obliged to do
under the lease;
	 
	 	(c)	 	to carry out any work required to remedy a breach of the Tenant’s repairing
obligations, if the Tenant has not taken steps to remedy the breach within a
reasonable time from the date of receiving written notice by the Landlord requesting
the breach to be remedied;
	 
	 	(d)	 	for the purpose of complying with the terms of any Statute or Requirement
affecting the Premises or of any notice served on the Landlord or the Tenant by any
Authority.
	 
	 	(e)	 	if the Premises are either destroyed or damaged for the purposes of
rebuilding or restoration; and
	 
	 	(f)	 	to carry out any repairs alterations or other works to the services
provided to the Tenant.

 

21

	17.2	 	Tenant to reimburse Landlord
	 
	 	 	The Tenant must reimburse to the Landlord immediately on request the costs
incurred by the Landlord in carrying out the works referred to in clauses 17.1(c) and
17.1(f).
	 
	17.3	 	Tenant to permit inspection and display of signs
	 
	 	 	The Tenant will:

	 	(a)	 	permit the Landlord to show the Premises to prospective purchasers at
all reasonable times and on reasonable notice;
	 
	 	(b)	 	permit the Landlord (acting reasonably) to affix and exhibit
‘For Sale’
signs; and
	 
	 	(c)	 	allow the Landlord (acting reasonably) to affix ‘To Let’ signs and show the
Premises to prospective tenants during the period commencing three months prior to
the Termination Date (if the option for a further term has not been exercised);

	17.4	 	Landlord to minimise disturbances
	 
	 	 	In exercising the rights set out in this clause the Landlord will minimise as far as
is reasonably possible any disturbance caused to the Tenant in its occupation and use of
the Premises.
	 
	18.	 	COSTS AND STAMP DUTY
	 
	18.1	 	Costs
	 
	 	 	The Tenant must pay to the Landlord on demand all costs and charges incurred by or on the
Landlord’s behalf in relation to:

	 	(a)	 	any consent required under this lease;
	 
	 	(b)	 	any assignment subletting or similar arrangement;
	 
	 	(c)	 	any surrender or ending of this lease unless the lease ends because the Term
ends;
	 
	 	(d)	 	in or in connection with the preservation of the rights of the Landlord;
	 
	 	(e)	 	in relation to any breach by the Tenant of its obligations under this lease; and (0
any document setting out the adjustment in the Annual Rent under this lease.
	 
	 	(f)	 	any document setting out the adjustment in the Annual Rent under this lease.

 

22

	18.2	 	Stamp duty
	 
	 	 	The Tenant must pay all stamp duty on this lease and any other document arising from
this lease to which the Landlord is a party
	 
	19.	 	GOVERNING LAW AND JURISDICTION
	 
	19.1	 	Governing law
	 
	 	 	This lease is governed by and construed in accordance with the laws of the State.
	 
	19.2	 	Jurisdiction
	 
	 	 	The Tenant submits to and accepts the non-exclusive jurisdiction of the courts of the
State.
	 
	20.	 	MISCELLANEOUS
	 
	20.1	 	Notices
	 
	 	 	A party giving notice or notifying under this lease must do so in writing and:

	 	(a)	 	the notice will be considered served, given or made in relation to a party if it is:

	 	(i)	 	delivered to the address of that party set out in this lease or at such
other address as notified in writing by that party to the other party
from time to time; or
	 
	 	(ii)	 	posted by pre-paid post to the relevant address; or
	 
	 	(iii)	 	sent by facsimile to the machine situated at the relevant address;

	 	(b)	 	is sufficient if executed by the party giving serving or making the notice
or on its behalf by any attorney director secretary or other duly authorised officer
or solicitor of such party; and
	 
	 	(c)	 	is considered to be given, served or made;

	 	(i)	 	in the case of pre-paid post, when it would be delivered in the
ordinary course of the post;
	 
	 	(ii)	 	in the case of facsimile, on receipt of a
transmission report confirming successful receipt at the conclusion of the
transmission; and
	 
	 	(iii)	 	in the case of delivery by hand, on delivery.

	20.2	 	Naming Rights
	 
	 	 	The Tenant may name or create a logo for the Premises and may change that name or the logo
at any time

 

23

	21.	 	INTERPRETATION
	 
	 	 	In this lease unless the contrary intention appears:

	 	(a)	 	headings are for ease of reference only and do not affect the meaning of
this lease;
	 
	 	(b)	 	the singular includes the plural and vice versa and words importing a
gender include other genders;
	 
	 	(c)	 	other grammatical forms of defined words or expressions have corresponding
meanings;
	 
	 	(d)	 	a reference to a clause, paragraph, schedule or annexure is a reference to a
clause or paragraph of or schedule or annexure to this lease and a reference to
this lease includes any schedules and annexures;
	 
	 	(e)	 	a reference to a document or agreement, including this lease includes a
reference to that document or agreement as novated, altered or replaced from time to
time;
	 
	 	(f)	 	a reference to a party includes its executors, administrators, successors
and permitted assigns;
	 
	 	(g)	 	an obligation imposed by this lease on more than one person binds them
jointly and severally;
	 
	 	(h)	 	words and expressions indicating natural persons include
partnerships, bodies corporate associations, governments and local authorities and
agencies; and
	 
	 	(i)	 	unless otherwise defined in this lease, words and expressions used in this lease
which are defined in A New Tax System (Goods and Services Tax) Act 1999 or Part
VB of the Trade Practices Act 1974 have the same meaning in
this lease.

	 	 	 	 	 	 	 

	EXECUTED as a deed.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	THE
COMMON SEAL of COMWELD

	 	 	)	 	 	 
	GROUP PTY LTD is fixed to this

	 	 	)	 	 	 
	document in accordance with its constitution

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Signature of director

	 	 	 	Signature of director/company secretary
	 	 
	 

	 	 	 	(Please delete as applicable)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name of director (print)

	 	 	 	Name of director/company secretary (print)	 	 

 

24

	 	 	 	 	 

	 

	 	 	)	 
	SIGNED
SEALED and DELIVERED by

	 	 	)	 
	MICHAEL FERRARO in the presence of

	 	 	)	 

	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Signature of witness

	 	 	 	MICHAEL FERRARO
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name of witness (print)
	 	 	 	 	 	 

 

25

SCHEDULE

	 	 	 

	ITEM 1:

	 	The Land
	[Clause 1]
	 	 
	 

	 	The land in Certificate of Title 

Volume # Folio # [title description to be inserted when
registered]
	 
	 	 
	ITEM 2:

	 	Commencement Date
	[Clause 1]
	 	 
	 
	 	 
	ITEM 3:

	 	Termination Date
	[Clause 1]
	 	 
	 

	 	10 years after the Commencement Date
	 
	 	 
	ITEM 4:

	 	Term
	[Clause 1]
	 	 
	 

	 	10 years
	 
	 	 
	ITEM 5:

	 	Annual Rent
	[Clause 1]
	 	 
	 

	 	$514,000 per annum payable by equal monthly instalments
	 
	 	 
	ITEM 6:

	 	Market Review Dates
	[Clause 5]
	 	 
	 

	 	(a)  The start of the sixth year of the Lease and if the Option to Renew under clause 6 is
exercised, the Commencement Date of any such further term and the
sixth year of the Commencement Date of such
further term.

	 
	 	 
	 

	 	Fixed Review Date
	 
	 	 
	 

	 	(b)  The start of the 2nd, 3rd, 4th, 5th, 7th, 8th, 9th and 10th years of the Lease (which includes
any further term).

	 
	 	 
	ITEM 7:

	 	Permitted Use of the Premises
	[Clause 13]
	 	 
	 

	 	Laboratory, offices, warehouse and any other use permitted by law.
	 
	 	 
	ITEM 8:

	 	Public Risk Insurance
	[Clause 11]
	 	 
	 

	 	 $10,000,000
	 
	 	 
	ITEM 9:

	 	Further Term(s)
	[Clause 6.2]
	 	 
	 

	 	One option of 10 years
	 
	 	 
	ITEM 10

	 	The Landlord’s Address
	[Clause 4.2]
	 	 
	 

	 	Michael Ferraro
	 

	 	78-82 Chifley Drive
	 

	 	PRESTON##

 

14

SCHEDULE 4

PLANS AND SPECIFICATIONS

 

	 	 	 	 	 	 	 

	EXECUTED as a deed
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SIGNED
SEALED and DELIVERED by
	 	 	)	 	 	 
	MICHAEL FERRARO in the presence of

	 	 	)	 	 	 

	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Signature of witness

	 	 	 	MICHAEL FERRARO
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name of witness (print)
	 	 	 	 	 	 

	 	 	 	 	 	 	 

	THE
COMMON SEAL of COMWELD

	 	 	)	 	 	 
	GROUP PTY LTD is affixed in accordance

	 	 	)	 	 	 
	with its articles of association

	 	 	)	 	 	 

	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Director/Secretary

	 	 	 	Director
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name of secretary (print)

	 	 	 	Name of director (print)exv10w24

Exhibit 10.24

DEED OF EXTENSION OF LEASE

73 GOWER STREET, PRESTON VIC

MELBOURNE PROPERTY DEVELOPERS PTY LTD

A.C.N. 082 250 093

(Landlord)

CIGWELD PTY. LTD.

A.C.N. 007 226 815

(Tenant)

	 	 	 

	SCOMPARIN & BERNARDI
	Lawyers
	173 Queens Parade
	CLIFTON HILL 3068
	 
	Telephone: 9489 2488
	Facsimile: 9481 7319
	Reference: CB:MB:3211
	melissabencic@pacific.net.au

 

 

CONTENTS

1. Defined meanings

2. Extension of Lease

3. No Other Amendments to Lease

4. General provisions

5. Definitions and interpretation

 

 

DEED OF EXTENSION OF LEASE

Dated the           DAY OF           2010

Parties

	1.	 	MELBOURNE PROPERTY DEVELOPERS PTY LTD. (A.C.N. 082 250 093) of 78 Chifley Drive, Preston,
Victoria

(“Lessor”)

	2.	 	CIGWELD PTY LTD. (A.C.N. 007 226 815) of 85 Chifley Drive, Preston,
Victoria (“Lessee”)

Background

	A.	 	By an undated Lease (“the Lease”) the Lessor leased
to the Lessee premises known as and situated at 73 Gower Street, Preston in
the State of Victoria (“the premises”), for a term as stated therein.
	 
	B.	 	The Lessor and the Lessee have agreed to extend the term of the Lease for a further term of ten
(10) years commencing on 7 August 2010 and terminating on 6 August 2020 as set out in this Deed.

Operative provisions

	1.	 	Defined meanings
	 
	1.1	 	Words used in this document and the rules of interpretation that apply are set out and
explained in the definitions and interpretation Clause 6 at the back of this document.
	 
	2.	 	Extension of Lease
	 
	2.1	 	The Lessor and the Lessee agree that the Lease is extended for a further term of ten (10) year
commencing on 7 August 2010 (“the commencement date”) and terminating on 6 August 2020 (“the extended
term).
	 
	2.1.1	 	Annual rental payable for the first year of the extended term shall be $715,477.20 + G.S.T.
payable by equal calendar monthly instalments of $59,623.10 + G.S.T. commencing on 7 August 2010,
to be reviewed annually in accordance with Item 6 (a) and 6 (b) of the Schedule of the Lease.
	 
	3.	 	No Other Amendments to Lease
	 
	 	 	Except for the amendments to the Lease set out in Clause 2, the terms of the Lease remain
unchanged and in full force and effect.

 

 

	4.	 	General provisions
	 
	4.1	 	Duties

	 	(a)	 	The Lessee must promptly within the initial applicable period prescribed by law pay any
duty payable in relation to the execution, performance and registration of this document,
or any agreement or document executed or effected under this document.
	 
	 	(b)	 	The Lessee must indemnify the Lessor against any loss incurred by the Lessor in
relation to any duty specified in this provision, whether through default by the Lessee
under this provision or otherwise.
	 
	 	(c)	 	Any notice is effective for the purposes of this document upon delivery to the
recipient or production to the sender of a facsimile transmittal confirmation report before
4.00 p.m. local time on a day in the place in or to which the written notice is delivered
or sent or otherwise at 9.00 a.m. on the next day following delivery or receipt.

	4.2	 	Governing Law and Jurisdiction

	 	(a)	 	This document is governed by and construed under the law in the State of Victoria.
	 
	 	(b)	 	Any legal action in relation to this document against any party or its property may be
brought in any court of competent jurisdiction in the State of Victoria.
	 
	 	(c)	 	Each party by execution of this document irrevocably, generally and unconditionally
submits to the non-exclusive jurisdiction of any court specified in this provision in
relation to both itself and its property.

	4.3	 	Amendments
	 
	 	 	Any amendment to this document has no force or effect, unless effected by a document
executed by the parties.
	 
	4.4	 	Third parties
	 
	 	 	This document confers rights only upon a person expressed to be a party, and not upon any
other person.
	 
	4.5	 	Precontractual negotiation
	 
	 	 	This document:

	 	(a)	 	expresses and incorporates the entire agreement between the parties in relation to its
subject-matter, and all the terms of this agreement; and
	 
	 	(b)	 	supersedes and excludes any prior or collateral negotiation, understanding,
communication or agreement by or between the parties in relation to that subject matter or
any term of this agreement.

 

 

	4.6	 	Further assurance
	 
	 	 	Each party must execute any document and perform any action necessary to given full effect
to this document, whether before or after performance of this document.
	 
	4.7	 	Continuing performance

	 	(a)	 	The provisions of this document do not merge with any action performed or document
executed by any party for the purposes of performance of this document.
	 
	 	(b)	 	Any representation in this document survives the execution of any document for the
purposes of, and continues after, performance of this document.
	 
	 	(c)	 	Any indemnity agreed by any party under this document:
	 
	 	 	 	Constitutes a liability of that party separate and independent from any other
liability of that party under this document or any other agreement; and survives
and continues after performance of this document.

	4.8	 	Waivers
	 
	 	 	Any failure by any party to exercise any right under this document does not operate as a
waiver and the single or partial exercise of any right by that party does not preclude any
other or further exercise of that or any other right by that party.
	 
	4.9	 	Remedies
	 
	 	 	The rights of a party under this document are cumulative and not exclusive of any rights
provided by law.
	 
	4.10	 	Severability
	 
	 	 	Any provision of this document which is invalid in any jurisdiction is invalid in that
jurisdiction to that extent, without invalidating or affecting the remaining provisions of
this document or the validity of that provision in any other jurisdiction.
	 
	4.11	 	Counterparts
	 
	 	 	This document may be executed in any number of counterparts, all of which taken together
are deemed to constitute one and the same document.
	 
	4.12	 	Party Acting as Trustee
	 
	 	 	If a party enters into this document as trustee of a trust, that party and its successors
as trustee of the trust will be liable under this document in its own right and as trustee
of the trust. Nothing releases the party from any liability in its personal capacity. The
party warrants that at the date of this document:

	 	(a)	 	all the powers and discretions conferred by the deed establishing the trust are capable
of being validly exercised by the party as trustee and have not been varied or revoked and
the trust is a valid and subsisting trust;

 

 

	 	(b)	 	the party is the sole trustee of the trust and has full and unfettered power under the
terms of the deed establishing the trust to enter into and be bound by this document on
behalf of the trust and that this document is being executed and entered into as part of
the due and proper administration of the trust and for the benefit of the beneficiaries of
the trust;
	 
	 	(c)	 	no restriction on the party’s right of indemnity out of or lien over the trust’s assets
exists or will be created or permitted to exist and that right will have priority over the
right of the beneficiaries to the trust’s assets.

	5.	 	Definitions and interpretation
	 
	5.1	 	Definitions
	 
	 	 	In this document unless the context otherwise requires:
	 
	 	 	Business Day means a day that is not a Saturday, Sunday, public holiday or bank holiday in
Victoria;
	 
	5.2	 	Interpretation
	 
	 	 	In this document unless the context otherwise requires:

	 	(a)	 	clause and subclause headings are for reference purposes only;
	 
	 	(b)	 	the singular includes the plural and vice versa;
	 
	 	(c)	 	words denoting any gender include all genders;
	 
	 	(d)	 	reference to a person includes any other entity recognised by law and vice versa;
	 
	 	(e)	 	where a word or phrase is defined its other grammatical forms have a corresponding
meaning;
	 
	 	(f)	 	any reference to a party to this document includes its successors and permitted
assigns;
	 
	 	(g)	 	any reference to any agreement or document includes that agreement or document as
amended at any time;
	 
	 	(h)	 	the use of the word includes or including is not to be taken as limiting the meaning of
the words preceding it;
	 
	 	(i)	 	the expression at any time includes reference to past, present and future time and the
performance of any action from time to time;
	 
	 	(j)	 	an agreement, representation or warranty on the part of two or more persons binds them
jointly and severally;
	 
	 	(k)	 	an agreement, representation or warranty on the part of two or more persons is for
the benefit of them jointly and severally;

 

 

	 	(l)	 	reference to an item is a reference to an item in the schedule to this document;
	 
	 	(m)	 	reference to an exhibit, annexure, attachment or schedule is a reference to the
corresponding exhibit, annexure, attachment or schedule in this document;
	 
	 	(n)	 	reference to a provision described, prefaced or qualified by the name, heading or
caption of a clause, subclause, paragraph, schedule, item, annexure, exhibit or attachment
in this document means a cross reference to that clause, subclause, paragraph, schedule,
item, annexure, exhibit or attachment;
	 
	 	(o)	 	when a thing is required to be done or money required to be paid under this document on
a day which is not a Business Day, the thing must be done and the money paid on the
immediately preceding Business Day; and
	 
	 	(p)	 	reference to a statute includes all regulations and amendments to that statute and any
statute passed in substitution for that statute or incorporating any of its provisions to
the extent that they are incorporated.

EXECUTED as a Deed.

	 	 	 	 	 

	EXECUTED by MELBOURNE PROPERTY

	 	 	)	 
	 
	DEVELOPERS PTY. LTD. A.C.N. 082 250 093

	 	 	)	 
	 
	by being signed by those persons who are

	 	 	)	 
	 
	authorised to sign for the company:

	 	 	)	 

	 	 	 	 	 

	 

Signature of Director

	 	 

Signature of Director
	 	 
	 
	 	 	 	 
	 

Full name

	 	 

Full name
	 	 
	 
	 	 	 	 
	 

Address

	 	 

Address
	 	 

 

 

	 	 	 	 	 

	EXECUTED by CIGWELD PTY LTD      )

	 	 	 	 
	A.C.N. 007 226 815 by being signed by those persons

	 	 	)	 
	who are authorised to sign for the company:

	 	 	)	 

	 	 	 	 	 

	 

Director

	 	 

Director
	 	 
	 
	 	 	 	 
	 

Full name

	 	 

Full name
	 	 
	 
	 	 	 	 
	 

Address

	 	 

Address
	 	 

 

 

	 	 	 	 	 

	DATED THE
	 	DAY OF
	 	2010

 

DEED OF EXTENSION OF

LEASE

73 GOWER STREET, PRESTON VIC

 

MELBOURNE PROPERTY DEVELOPERS PTY LTD

A.C.N. 082 250 093

(Landlord)

CIGWELD PTY. LTD.

A.C.N. 007 226 815

(Tenant)

	 	 	 

	SCOMPARIN & BERNARDI
	Lawyers
	173 Queens Parade
	CLIFTON HILL 3068
	 
	Telephone: 9489 2488
	Facsimile: 9481 7319
	Reference: CB:MB:3211
	melissabencic@pacific.net.au

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