Document:

Exhibit 4(A).2

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”), dated as of August 6, 2012, by and between Phenogen Sciences Inc., a Delaware corporation (the “Company”) and a wholly-owned subsidiary of Genetic Technologies Limited (hereinafter referred to together with the Company and its other subsidiaries and affiliates, the “GTG Group”), and Mark Ostrowski (the “Executive”) of 586 Notre Dame St, Grosse Pointe, MI 48230.

 

W I T N E S S E T H :

 

WHEREAS, the Executive has certain experiences relating to the business of the Company; and

 

WHEREAS, the Company desires to retain the services of the Executive; and

 

WHEREAS, the Company and the Executive desire to enter into this Agreement to set forth the terms and conditions of the employment relationship between the Company and the Executive;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.                                       Nature of Employment.

 

(a)                                    The Company hereby engages the Executive as a full-time employee to hold the office of Senior Vice President Sales & Marketing Molecular Diagnostics for the term of the Agreement (the “Employment Period”), and the Executive accepts such employment, on the terms and conditions set forth in this Agreement.  Throughout the Employment Period, subject to the direction of the GTG Group Chief Executive Officer (“CEO”), the Executive shall perform and discharge well and faithfully the duties associated with the position and that may be assigned to him from time to time by the Company in connection with the Senior Vice President Sales & Marketing Molecular Diagnostics position.  If the Executive is elected or appointed a director of the Company or any subsidiary or affiliate thereof during the Employment Period, the Executive will serve in such capacity without further compensation, unless otherwise specified. During his employment, the Executive will report to the GTG Group CEO.

 

(b)                                    Your ordinary hours of work will be 37.5  hours a week averaged over a 12 month period. However, the Company may require you to work reasonable  additional hours to perform your duties in a satisfactory manner.  Your remuneration includes compensation for work outside normal hours and you will not be entitled to any additional remuneration or other benefit for work outside these hours. Throughout the Employment Period, the Executive will: (i) devote the Executive’s full employment energies, interests, abilities and time to the performance of the Executive’s duties (as further defined in the Executive’s Position Description, as agreed between the parties and updated from time to time, which shall be incorporated herein by reference) and shall not render to others any service of any kind for compensation, unless the Executive receives written consent of the Company; (ii) not engage in any business activities that

 

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are directly or indirectly competitive with any business conducted by the Company or any of its subsidiaries or affiliates; (iii) observe and carry out such reasonable rules, regulations, policies, directions and restrictions as may be established from time to time, including but not limited to, the standard policies and procedures of the Company as in effect from time to time; and (iv) do such traveling as may reasonably be required in connection with the performance of such duties and responsibilities.

 

(c)                                     Notwithstanding the foregoing, the Executive may manage personal investments; provided that such activities do not individually or in the aggregate conflict or interfere with the performance of Executive’s duties under this Agreement.

 

(d)                                    The Executive acknowledges that Sections 5, 6 and 7 of this Agreement contain non-competition and non-disclosure or proprietary information provisions, and the Executive agrees to comply with these provisions. The Executive understands that entering into and complying with these provisions is a condition to the Executive’s continued employment with the Company and that failure to comply with the terms and conditions of these provisions may result in termination “for cause” under this Agreement.

 

2.                                       Compensation and Benefits

 

(a)                                    Salary.   The Executive shall receive an annual salary in the amount of $220,000, less statutory and customary deductions, which shall be payable on the first and fifteenth of each month (bi-monthly) (“Salary”). The Executive’s remuneration will be reviewed on the six month anniversary of the Start Date; and, pending the successful outcome of the six month review, the Executive’s salary shall be increased to $250,000.  Salary reviews shall be on an annual basis thereafter, or such other times as the Company may determine in its sole discretion, together with a performance appraisal. Any increase in the Executive’s compensation is at the sole discretion of the Company.

 

(b)                                    Bonus.   In addition to the Salary, the Executive may receive a discretionary bonus (the “Bonus”) of up to $50,000  as solely determined by the Company, based on achieving exceptional performance in relation to key performance indicators to be mutually agreed upon in writing and signed by the Executive and the Company.  Notwithstanding the forgoing, the failure of the Company to award a Bonus and/or other incentive compensation, in its sole discretion, shall not give rise to any claim against the Company.

 

(c)                                     Stock Options.   During the Employment Period, the Executive shall be eligible to participate in the Company’s long term incentive plan (stock option program)  at a level commensurate with a senior executive of the Company reporting directly to the CEO. Participation shall be subject to and set out in the Rules governing the Genetic Technologies Limited Employee Option Plan as modified by the Company from time to time.

 

(d)                                    Fringe Benefits.   The Company shall also make available to the Executive, throughout the period of his employment hereunder benefits made generally available to its employees in the United States, if any, including but not limited to health care, dental, disability insurance, and 401(k) retirement savings plan, provided, however, that nothing herein contained shall be deemed to require the Company to adopt or maintain any particular plan or

 

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policy or restrict the right of the Company or any of its affiliates to amend, modify, or terminate any such benefit plan, policy or arrangement.

 

(e)                                     Expenses.   The Company will provide the Executive with a Phone/Mobile Handset (or equivalent device) and a laptop computer, and the Company will reimburse the Executive for all reasonable costs associated with these items. Additionally, the Company shall reimburse the Executive, upon delivery by the Executive to the Company of all appropriate receipts and vouchers therefor, for any reasonable out-of-pocket business expenses, which are pre-approved by the Company in writing, and incurred by the Executive in connection with the performance of his duties hereunder and costs associated with promoting the Company’s business such as travel, meals, accommodation, and other reasonable out-of-pocket expenses, in accordance with the Company’s standard policies and procedures (including but not limited to the Company’s travel and out of pocket expenses policies) in effect as modified by the Company from time to time. The Company will also reimburse the Executive for mileage associated with promoting the Company’s business according to Company policy (but not for travel to and from the workplace).

 

3.                                    Vacation, Personal Days and Sick Days

 

The Executive will be entitled to twenty (20) days of vacation each year during the Employment Period, to be taken at such time or times as shall be mutually agreed upon between Executive and the Company’s CEO, and the Executive’s vacations must be approved in advance by the GTG Group’s CEO. Unused vacation time may be carried over to the following year but may not exceed thirty (30) days of vacation. The Executive will also be entitled to ten (10) days of personal leave. Unused personal days may be carried over to the following year, but accrued unused personal days will not be paid out upon termination of the Agreement.  The Executive shall also receive annual holidays in accordance with the Company’s standard policies and procedures as updated from time to time.

 

4.                                       Term and Termination of Employment.

 

(a)                                    Term: Subject to prior termination in accordance with this Section 4 below, the term of this Agreement and the Executive’s employment hereunder shall commence on September 7, 2012 (the “Start Date”) and shall continue until terminated by either party in accordance with this Agreement.  Upon termination of employment for any reason, the Executive will take all steps and sign any and all documentation to effectuate his resignation from all offices the Executive holds with the Company and/or the Company’s (or subsidiaries or affiliates) Board of Directors.

 

(b)                                    By Company With Cause.

 

(1)                                 During the Employment Period, the Company may terminate Executive’s employment at any time for cause.

 

(2)                                 As used herein, the term “for cause” shall include but is not limited to: (i) any willful and material breach of this Agreement by the Executive; (ii) any willful or gross neglect by the Executive of his duties and responsibilities hereunder; (iii) any fraud, criminal misconduct, breach of fiduciary duty, dishonesty, or gross and willful misconduct by the

 

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Executive in connection with the performance of his duties and responsibilities hereunder; (iv) the Executive being legally intoxicated or under the influence of illegal or illegally obtained drugs during business hours or being habitually drunk or addicted to drugs (provided that this shall not restrict the Executive from taking physician-prescribed medication in accordance with the applicable prescription); (v) the commission by the Executive of any felony or crime of moral turpitude; (vi) any action by the Executive which may materially impair or damage the reputation of the Company; (vii)  insubordinate disregard of any lawful direction given to the Executive by the GTG Group’s CEO or the Board of Directors; or (viii) repeated failure or refusal to comply with the Company’s policies and procedures.

 

(3)                                     Upon termination by Company for cause, Executive shall be entitled only to accrued and unpaid Salary through the date of termination and payment for any unused vacation leave accrued through the date of termination of employment.

 

(c)                                     By Either Party Without Cause Upon Three (3) Months Notice

 

During the Employment Period, the Company or the Executive may terminate the Agreement by giving three (3) months’ written notice of termination to the other party (the “Notice Period”).  The Executive’s termination shall not be effective until the end of the applicable Notice Period. The Company, at its sole discretion, may elect to make a payment in lieu of all or part of any such Notice Period or require the Executive to not attend or come into the office and/or perform any duties during all or part of the Notice Period. The Company shall not be required to provide any notice to Executive if Executive is terminated for Cause (as defined above). Upon termination of the Notice Period, the Executive shall be entitled only to accrued and unpaid Salary through the date of termination and payment for any unused vacation leave accrued through the date of termination of employment

 

(e)                                     Termination of Employment by Reason of Death.

 

The Agreement shall terminate on the date of Executive’s death, in which event Salary and benefits owing to Executive through the date of Executive’s death shall be paid to his estate. Executive’s estate will not be entitled to any other compensation under this Agreement.

 

(f)                                      Termination of Employment by Reason of Disability.

 

(1)                                 As used herein, the term “disability” shall mean, and be limited to, any physical or mental illness, disability or impairment that prevents or may reasonably be expected to prevent the Executive from continuing for the performance of his normal duties and responsibilities hereunder for a period of sixty (60) days in the aggregate during any twelve (12) month period.

 

(2)                                 Upon any termination of this Agreement as hereinabove provided (for a disability), the Company’s obligations under this Agreement to pay further compensation shall cease forthwith, except that Executive shall be entitled to receive Salary, benefits, and approved reimbursable expenses owing to Executive through the date of termination of employment. The Company shall have no further obligation to Executive.

 

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(g)                                     In the event of a termination of employment for any reason, all unvested stock options shall be void as of the date of termination and have no further effect.

 

5.                                       Nondisclosure of Confidential and Proprietary Information

 

(a)                                    The Executive acknowledges that during the term of the Employment Period, Executive will have access to and possession of trade secret, confidential information, and proprietary information (collectively, as defined more extensively below, “Confidential Information”) of the Company, the GTG Group, and their respective clients.  The Executive recognizes and acknowledges that this Confidential Information is valuable, special, and unique to the Company’s business, and that access to and knowledge thereof are essential to the performance of the Executive’s duties to the Company.  During the Employment Period and thereafter, Executive will keep secret and will not use or disclose to any person or entity other than the Company, in any fashion or for any purpose whatsoever, any Confidential Information relating to the Company, its parents, subsidiaries, affiliates, or its clients, except at the request or the Company.

 

(b)                                    The term “Confidential Information” means confidential data and confidential information relating to the business of the Company, the GTG Group and their respective clients, that is or has been disclosed to Executive or of which Executive became aware as a consequence of or through Executive’s employment with the Company and that has value to the Company and is not generally known to the competitors of the Company and includes but is not limited to information written, in digital form, in graphic form, electronically stored, orally transmitted or memorized concerning the Company’s business or operations plans, strategies, portfolio, prospects or objectives, technical or market analyses, structure, products, product development or specifications, interest in activities carried on by the Company, technology, distribution, trading, sales, services, research data, support and marketing plans, practices, and operation, research and development, financial records and information, and client lists.

 

(c)                                     The Executive further recognizes that the Company has received and in the future will receive from third parties confidential or proprietary information (“Third  Party Information”) subject to a duty on the Company’s or the GTG Group’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  During the Employment Period and thereafter, Executive will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for the Company) or use, except in connection with work for the Company, Third Party Information unless expressly authorized by the Company in writing.

 

(d)                                    The Executive further agrees to store and maintain all Confidential Information in a secure place.  On the termination of the relationship, the Executive agrees to deliver all records, data, information, and other documents produced or acquired during the Employment Period, and all copies thereof, to the Company.  Such material at all times will remain the exclusive property of the Company, unless otherwise agreed to in writing by the Company. Upon termination of the relationship, the Executive agrees to make no further use of any Confidential Information on the Executive’s own behalf or on behalf of any other person or entity other than the Company.

 

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(e)                                     At no time will the Executive improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom the Executive has an obligation of confidentiality, nor bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom the Executive has an obligation of confidentiality unless consented to in writing by that former employer or person.

 

6.                                    Assignment Of Inventions and Intellectual Property

 

In consideration of the Executive’s employment, the Executive acknowledges and agrees that the Company shall have exclusive, unlimited ownership rights to all materials, information and other items created, prepared, derived or developed in connection with or arising from the Executive’s employment relationship with the Company (or engagement with any member of the Company), whether individually or jointly with others, whether original or considered enhancements, improvement or modifications, whether or not completed, and whether or not protectable as trade secrets, service or trademarks, or through patent, copyright, mask work or any other intellectual, industrial or other form of property protection or proprietary rights (“Inventions”). The Executive further agrees that all Inventions shall be deemed made in the course and scope of the Executive’s employment with the Company and shall belong exclusively to the Company, with the Company having the sole right to obtain, hold and renew, in its own name and for its own benefit, all registrations and other protections that may be available by contract, license, law, equity and/or regulation. To the extent that exclusive title or ownership rights do not originally vest in the Company as contemplated, the Executive hereby irrevocably assigns, transfers and conveys (and agrees to assign, transfer and convey in the future) to the Company all such rights. The Executive agrees to give the Company all reasonable assistance and execute all documents reasonably necessary to assist and enable the Company to perfect, preserve, enforce, register and record its rights, without additional payment to the Executive.

 

7.                                    Agreement Not to Compete

 

(a)                                    The Executive agrees with the Company that the services which the Executive will render during the Employment Period are unique, special and of extraordinary character, that the Company will be substantially dependent upon such services to develop and market its products and to earn a profit, and that the application of the Executive’s knowledge and services to any competitive business would be substantially detrimental to the Company. Accordingly, in consideration for employment by the Company and compensation and other benefits pursuant to this Agreement, the Executive will not compete or interfere with those entities within the Company or any affiliate of the Company (or any of their successors or assigns), directly or indirectly during the Employment Period or for the six (6) month period following termination of the Executive’s employment (the “Restricted Period”) that the Executive had material  contact or dealings with during the course of the Executive’s employment or where the Executive had access to confidential information concerning that entity during the course of the Executive’s employment (“Relevant GTG Entities”), anywhere in the USA, Europe, Australia, or anywhere that the Company conducts business.

 

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The term “compete” as used herein means to engage in, assist, or have any interest in, including without limitation as a principal, consultant, employee, owner, shareholder, director, officer, partner, member, advisor, agent, or financier, any entity that is, or that is about to become engaged in, any activity that is in competition with, or competes with any of the Relevant GTG Entities.

 

(b)                                    Furthermore, during the Restricted Period, the Executive shall not, directly or indirectly, with respect to the Relevant GTG Entities (including any parents, subsidiaries or affiliates of the Company), or any successors or assigns:

 

1.                                          Solicit any of the Relevant GTG Entities’ customers (including any person or entity which prior to termination of the Agreement was a customer, client, supplier, agent, distributor, officer or employee of the Company, or its parents, subsidiaries, or affiliates) on the Company’s behalf, or direct any current or prospective customer to anyone other than the Company for goods or services that the Company provides;

 

2.                                          Directly or indirectly influence any of the Relevant GTG Entities’ employees to terminate their employment with the Company or accept employment with any of the Company’s competitors; or

 

3.                                          Interfere with any of the Relevant GTG Entities’ business relationships, including without limitation those with customers, suppliers, consultants, attorneys, or other agents, whether or not evidenced by written or oral agreements.

 

(c)                                     The Executive agrees that any breach of this Section 7 shall cause the Company substantial and irrevocable damage and therefore, in the event of any such breach, the Executive agrees that (i) the Executive shall not be entitled to any further payments due under the terms of this Agreement, and (ii) any stock option granted but not exercised shall be void and have no further force or effect. Furthermore, in addition to any other remedies that may be available, the Company shall have the right to seek specific performance and injunctive relief as set forth in Section 9, without the need to post a bond or other security.

 

(d)                                    The Executive further acknowledges and agrees that such covenants are reasonable and necessary in terms of time, area and line of business to protect the Company’s legitimate business interests, which include its interests in protecting the Company’s (i) valuable Confidential Information, (ii) substantial relationships with customers, and (iii) customer goodwill associated with the ongoing business of the Company. To the extent that the covenant provided for in this Section may later be  deemed by a court to be too broad to be enforced with respect to its duration or with respect to any particular activity or geographic area, the court making such determination shall have the power to reduce the duration or scope of the provision, and to add or delete specific words or phrases to or from the provision.  The provision as modified shall then be enforced.

 

(e)                                     The Executive further acknowledges that the covenants contained in this Section 7 are a material part of this Agreement and if this Agreement is terminated for any reason, Executive will be able to earn a livelihood without violating these provisions.

 

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8.                                    Return of Company Property

 

When the Executive leaves the employ of the Company, the Executive will deliver to the Company (and will not keep in his possession, recreate or deliver to anyone else) any and all devices, records, recordings, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, computer materials, laptop, PDA, Phone, equipment, other documents or property, together with all copies thereof (in whatever medium recorded), belonging to the Company, its successors or assigns. The Executive further agrees that any property situated on the Company’s premises and owned by the Company, including computer disks and other digital, analog or hard copy storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice.

 

9.                                    Legal and Equitable Remedies

 

Because the Executive’s services are personal and unique and because the Executive may have access to and become acquainted with the Confidential Information of the Company, and because the parties agree that irrepressible harm would result in the event of a breach of Sections 5, 6, 7 and 8 by the Executive, the Company may not have an adequate remedy at law, the Company will have the right to enforce Sections 5, 6, 7 and 8 and any of their provisions by injunction, restraining order, specific performance or other injunction relief, without bond, and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.  The Company’s remedies under this Section 9 are not exclusive and shall not prejudice or prohibit any other rights or remedies under this Agreement or otherwise.

 

10.                                No Conflicting Obligations

 

The Executive represents that Executive’s compliance with the terms of this Agreement and Executive’s performance as an executive of the Company does not and shall not breach any agreement to keep in confidence information acquired by the Executive in confidence or in trust prior to employment by the Company. The Executive has not entered into, and agrees not to enter into, any agreement, either written or oral, in conflict herewith.

 

11.                                Notification of New Employer

 

In the event that the Executive leaves the employ of the Company, the Executive hereby agrees to notify the Executive’s new employer of those obligations that  are continuing under this Agreement after termination.

 

12.                                Notices

 

Any notice of communication permitted or required by this Agreement shall be in writing and delivered personally or via overnight courier or certified mail, return receipt requested:

 

	
 
    	
If to the Company:
    	
c/o   Genetic Technologies Limited
    
	
 
    	
PO Box   115
    

 

8

 

	
 
    	
Fitzroy   Victoria 3065 Australia
    
	
 
    	
Attention:   The Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
If to the Executive:
    	
Mark   Ostrowski
    
	
 
    	
586   Notre Dame St
    
	
 
    	
Grosse   Pointe MI 48230
    
			

 

13.                                General

 

(a)                                    No waiver by the Company of any breach of this Agreement will be a waiver of any preceding or subsequent breach. No waiver by the Company of any right under this Agreement will be construed as a waiver of any other right. The Company will not be required to give notice to enforce strict adherence to all terms of this Agreement.

 

(b)                                    Neither this Agreement, nor any of the Executive’s rights, powers, duties, or obligations hereunder, may be assigned by the Executive. This Agreement shall be binding upon and inure to the benefit of Executive and Executive’s heirs and legal representatives and the Company and its successors. Successors of the Company shall include, without limitation, any company or companies acquiring, directly or indirectly, all or substantially all of the assets of the Company, whether by merger, consolidation, purchase, lease or otherwise, and successor shall thereafter be deemed “the Company” for the purpose hereof.

 

(c)                                     The captions and Section headings used in this Agreement are for convenience of reference only, and will not affect the construction or interpretation of this Agreement or any of the provisions hereof.

 

(d)                                    The validity and construction of this Agreement or any of its provisions will be governed by and constructed in accordance with the laws of the State of North Carolina without regard to its conflicts of law.  Each of the parties hereto submits to the exclusive jurisdiction of the United States District Court for the Western District of North Carolina, or if such court lacks subject matter jurisdiction, to the jurisdiction of the Supreme Court of the State of North Carolina, County of Iredell.  Each of the parties hereto specifically waives any objection that it may otherwise have to the jurisdiction or venue of any such Courts or that such Courts are an inconvenient forum and acknowledges that service of process may be made by mailing a copy thereof in accordance with the provisions of Section 12. However, any dispute arising under, out of, in connection with, or in relation to: the Executive’s employment with the Company; the termination of that employment; this Agreement, or the making, validity, interpretation or breach thereof, will be determined and settled by arbitration before a single arbitrator at the offices of the American Arbitration Association (“AAA”) pursuant to the employment  dispute rules then in effect of the AAA.  Any award rendered will be final and conclusive upon the parties, and judgment thereon may be entered in any court of competent jurisdiction.  The arbitrator will have no authority to add to or to modify any provision of this Agreement. Nothing in this Section 13(d) will preclude the Company from obtaining injunctive relief as set forth in Section 9 above.

 

(e)                                     This Agreement may be executed in counterparts, each of which will be deemed to be an original hereof, but all of which together will constitute one and the same instrument.

 

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(f)                                      This Agreement constitutes the sole and entire agreement and understanding between the parties hereto as to the subject matter hereof, and supersedes all prior discussions, agreements and understandings of every kind and nature between them as to such subject matter specifically excluding the Consultancy Agreement executed between the parties which shall expire on 6 September 2012.

 

(g)                                     This Agreement is intended for the sole and exclusive benefit of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns, and no other person or entity will have any right to rely on this Agreement or to claim or derive any benefit herefrom absent the express written consent of the party to be charged with such reliance or benefit.

 

(h)                                    If any provision of this Agreement is held invalid or unenforceable, either in its entirety or by virtue of its scope or application to given circumstances, such provision will thereupon be deemed modified only to the extent necessary to render same valid, or not applicable to given circumstances, or excised from this Agreement, as the situation may require; and this Agreement will be construed and enforced as if such provision had been included herein as so modified in scope or application, or had not been included herein, as the case may be.

 

(i)                                        The provisions of this Agreement will survive the termination of the Executive’s employment and the assignment of this Agreement by the Company to any successor in interest or other assignee.

 

The Executive has read this Agreement carefully and fully understands its terms.

 

IN WITNESS THEREOF, the parties have executed and delivered this Agreement on the date first written above.

 

 

	
 
    	
Phenogen   Sciences Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dr   Paul D R MacLeman
    
	
 
    	
 
    	
Name: 
    	
Dr Paul   D R MacLeman
    
	
 
    	
 
    	
Title: 
    	
Director
    

 

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Mark   Ostrowski
    

 

11Exhibit 4(B).1

 

 

Dated 31 August 2012

 

Crude Pty Ltd

ACN 124 327 920
 (Landlord)

 

Genetic Technologies Limited

ACN 009 212 328
 (Tenant)

 

Lease

 

60-66 and Part 68-70 Hanover Street, Fitzroy

 

	
©   Holding Redlich 2012
    	
Contact
    Melbourne
   Kathy Roberts
   12 50 0737
   M4144674
    

 

Melbourne . Sydney . Brisbane

www.holdingredlich.com

 

 

 

	
3   September 2012

 

Ms   Alison Mew

Chief   Operating Officer

Genetic   Technologies Limited

60-66   Hanover Street

FITZROY VIC 3065
    	
Contact

Direct   Line

Email

Partner

Our   Ref
    	
Kathy Roberts

(03) 9321 9703 kathy.roberts@holdingredlich.com.au

Margot Sharpe

KAR:LD:12500737
    
	
 
    	
 
    	
 
    
	
 
    	
By courier
    	
 
    

 

Dear Ms Mew

 

Lease: Crude Pty Ltd to Genetic Technologies Limited
 Premises: 60-66 and Part 68-70 Hanover Street, Fitzroy

 

Further to previous correspondence we enclose for the Tenant’s safekeeping executed Lease dated 31 August 2012.

 

Please acknowledge receipt of the document by signing and returning to us the attached copy of this letter.

 

	
Yours   sincerely
    	
 
    
	
 
    	
 
    
	
/s/   [ILLEGIBLE]
    	
 
    
	
HOLDING   REDLICH
    	
 
    
	
 
    	
 
    
	
Enclosures:   1
    	
 
    
	
 
    	
 
    
	
Copy   to: R Nguyen, DeGroup Pty Ltd
    	
 
    

 

Melbourne . Sydney . Brisbane

 

Level 8 555 Bourke Street Melbourne Vic 3000 DX 422 Melbourne
 GPO Box 2154 Melbourne Vic 3001 T +61 3 9321 9999 www.holdingredlich.com

[ILLEGIBLE]

 

 

TABLE OF CONTENTS

 

	
1
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
2
    	
DISCLOSURE STATEMENT
    	
2
    
	
 
    	
 
    	
 
    
	
3
    	
LANDLORD’S WORKS
    	
2
    
	
 
    	
 
    	
 
    
	
4
    	
TENANT’S WORKS
    	
2
    
	
 
    	
 
    	
 
    
	
5
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
6
    	
RENEWAL
    	
3
    
	
 
    	
 
    	
 
    
	
 
    	
6.1
    	
Option   to renew this Lease
    	
3
    
	
 
    	
6.2
    	
Changes   to this Lease on renewal
    	
3
    
	
 
    	
6.3
    	
If   Tenant is in breach of this Lease
    	
3
    
	
 
    	
 
    	
 
    
	
7
    	
MONTHLY TENANCY
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
PAYMENTS
    	
4
    
	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
What   the Tenant must pay the Landlord
    	
4
    
	
 
    	
8.2
    	
The   Landlord may charge interest if payments are late
    	
4
    
	
 
    	
8.3
    	
Adjustments
    	
4
    
	
 
    	
8.4
    	
Goods   and Services Tax
    	
4
    
	
 
    	
 
    	
 
    
	
9
    	
THE TENANT MUST PAY RENT
    	
4
    
	
 
    	
 
    	
 
    
	
10
    	
MARKET RENT REVIEW
    	
4
    
	
 
    	
 
    	
 
    
	
 
    	
10.1
    	
Notice   of increased market rent
    	
4
    
	
 
    	
10.2
    	
Disputes
    	
5
    
	
 
    	
10.3
    	
Review   procedure
    	
5
    
	
 
    	
10.4
    	
New   rent applies from the Market Review Date
    	
5
    
	
 
    	
10.5
    	
Valuer’s   decision
    	
5
    
	
 
    	
10.6
    	
Valuing   the current market rent
    	
5
    
	
 
    	
10.7
    	
The   Valuer’s costs
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
RENT REVIEW
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.1
    	
Formula   for CPI rent increases
    	
6
    
	
 
    	
11.2
    	
Changes   made by the ABS
    	
6
    
	
 
    	
11.3
    	
New   rent applies from CPI Review Date
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
12
    	
OUTGOINGS
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
12.1
    	
The   Tenant must pay the Tenant’s share of outgoings
    	
7
    
	
 
    	
12.2
    	
Meaning   of Outgoings
    	
7
    
	
 
    	
12.3
    	
Items   excluded from Outgoings
    	
8
    
	
 
    	
12.4
    	
Meaning   of costs
    	
8
    
	
 
    	
12.5
    	
Landlord   to estimate Tenant’s share of Outgoings
    	
8
    
	
 
    	
12.6
    	
Landlord’s   statement of Outgoings
    	
8
    
	
 
    	
12.7
    	
Adjustment
    	
9
    

 

 

	
13
    	
OTHER AMOUNTS PAYABLE BY THE TENANT
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
13.1
    	
Statutory   Charges
    	
9
    
	
 
    	
13.2
    	
Services   to the Premises
    	
9
    
	
 
    	
13.3
    	
Landlord’s   legal and other costs
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
14
    	
SECURITY DEPOSIT
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
15
    	
THE TENANT’S OBLIGATIONS GENERALLY
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
15.1
    	
The   Tenant must obey the law
    	
9
    
	
 
    	
15.2
    	
Using   this Lease as security
    	
10
    
	
 
    	
15.3
    	
Caveats
    	
10
    
	
 
    	
15.4
    	
The   Tenant’s behaviour
    	
10
    
	
 
    	
15.5
    	
Danger   or risk
    	
10
    
	
 
    	
15.6
    	
The   Tenant must obey fire regulations
    	
10
    
	
 
    	
15.7
    	
The   Tenant must pay for damage
    	
10
    
	
 
    	
15.8
    	
Workplace   health and safety
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
16
    	
USING THE PREMISES
    	
10
    
	
 
    	
 
    	
 
    
	
17
    	
ASSIGNING OR DEALING WITH THE PREMISES
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
17.1
    	
Tenant   must not assign without consent
    	
11
    
	
 
    	
17.2
    	
When   the Landlord will consent to an assignment
    	
11
    
	
 
    	
17.3
    	
Change   in control of the Tenant
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
18
    	
MAINTAINING THE PREMISES AND THE TENANT’S PROPERTY
    	
12
    
	
 
    	
 
    	
 
    
	
 
    	
18.1
    	
Tenant’s   maintenance responsibilities
    	
12
    
	
 
    	
18.2
    	
Structural   repairs
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
19
    	
ALTERING THE PREMISES
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
20
    	
WHEN THIS LEASE ENDS
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
21
    	
THE LANDLORD’S RIGHTS AND OBLIGATIONS
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
21.1
    	
The   Tenant’s quiet enjoyment
    	
13
    
	
 
    	
21.2
    	
Roof   and external walls
    	
14
    
	
 
    	
21.3
    	
Landlord’s   maintenance
    	
14
    
	
 
    	
21.4
    	
The   Landlord may enter the Premises
    	
14
    
	
 
    	
21.5
    	
The   Landlord may give the Tenant notice to do work
    	
14
    
	
 
    	
21.6
    	
The   Landlord may do things on the Tenant’s behalf
    	
14
    
	
 
    	
21.7
    	
The   Landlord may erect signs
    	
14
    
	
 
    	
21.8
    	
Subdivision
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
22
    	
LANDLORD’S REPAIRS OR BUILDING WORK
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
22.1
    	
The   Landlord may do repairs
    	
15
    
	
 
    	
22.2
    	
The   Landlord may do building work
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
23
    	
IF THE PREMISES ARE DAMAGED OR DESTROYED
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
23.1
    	
Tenant   may ask Landlord to rebuild
    	
15
    
	
 
    	
23.2
    	
When   Tenant or Landlord may end this Lease
    	
15
    
	
 
    	
23.3
    	
Landlord   is not liable to pay compensation
    	
15
    
	
 
    	
23.4
    	
If   insurer is not obliged to pay for reinstatement
    	
16
    

 

ii

 

	
24
    	
IF PREMISES ARE RESUMED
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
25
    	
RISKS AND INSURANCE
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
25.1
    	
The   Tenant must have insurance
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
26
    	
THE TENANT RELEASES AND INDEMNIFIES THE LANDLORD
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
26.1
    	
Tenant   occupies the Premises at its own risk
    	
16
    
	
 
    	
26.2
    	
Release
    	
17
    
	
 
    	
26.3
    	
The   Tenant indemnifies the Landlord
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
27
    	
HOW THE TENANT BREACHES THIS LEASE
    	
17
    
	
 
    	
 
    	
 
    
	
28
    	
IF THE TENANT BREACHES THIS LEASE
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
28.1
    	
What   the Landlord may do if the Tenant is in breach
    	
18
    
	
 
    	
28.2
    	
Breach   of an essential term
    	
18
    
	
 
    	
28.3
    	
If   the Tenant vacates the Premises before the Expiry Date
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
29
    	
GUARANTEE AND INDEMNITY BY THE GUARANTOR
    	
19
    
	
 
    	
 
    	
 
    
	
30
    	
NOTICES
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
30.1
    	
Notices   to be writing
    	
19
    
	
 
    	
30.2
    	
Serving   Notices
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
31
    	
LANDLORD’S CONSENT AND APPROVAL
    	
20
    
	
 
    	
 
    	
 
    
	
32
    	
SPECIAL CONDITIONS
    	
20
    
	
 
    	
 
    	
 
    
	
33
    	
GENERAL
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
33.1
    	
Individual   and joint liability
    	
20
    
	
 
    	
33.2
    	
Waiver
    	
20
    
	
 
    	
33.3
    	
Warranties   by the parties
    	
20
    
	
 
    	
33.4
    	
Victorian   law applies
    	
20
    
	
 
    	
33.5
    	
Severability
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
34
    	
INTERPRETATION
    	
21
    
	
 
    	
 
    	
 
    
	
35
    	
TIME FOR DOING ACTS
    	
21
    
	
 
    	
 
    	
 
    
	
36
    	
CAR PARKING LICENCE
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
36.1
    	
Definitions
    	
21
    
	
 
    	
36.2
    	
Licence
    	
21
    
	
 
    	
36.3
    	
Holding   Over
    	
22
    
	
 
    	
36.4
    	
Use   of the Car Spaces
    	
22
    
	
 
    	
36.5
    	
Assignment   and Sub-Licensing
    	
22
    
	
 
    	
36.6
    	
Landlord’s   right of entry
    	
22
    
	
 
    	
36.7
    	
Risk
    	
23
    
	
 
    	
36.8
    	
Release
    	
23
    
	
 
    	
36.9
    	
Indemnity
    	
23
    
	
 
    	
36.10
    	
Security   cards
    	
23
    
	
 
    	
36.11
    	
End   of licence
    	
23
    
	
 
    	
36.12
    	
Parking   Fee
    	
24
    

 

iii

 

	
 
    	
36.13   
    	
Parking   levy
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
37
    	
DEMOLITION
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
37.1
    	
Landlord   may terminate for demolition
    	
24
    
	
 
    	
37.2
    	
Notice   of termination
    	
24
    

 

iv

 

THIS LEASE is dated 31 August 2012

 

PARTIES:

 

CRUDE PTY LTD (ACN 006 042 995) of Suite 1 Mezzanine Level, 550 Lonsdale Street, Melbourne in its capacity as trustee of the Trust (Landlord which, where relevant, includes the Landlord’s servants and agents and any person authorised by the Landlord)

 

THE PERSON DESCRIBED IN ITEM 1 (Tenant which, where relevant includes the Tenant’s employees, agents or any person the Tenant allows on the Premises)

 

INTRODUCTION:

 

The Landlord leases the Premises to the Tenant on the terms and conditions set out in this Lease.

 

IT IS AGREED:

 

1                                         DEFINITIONS

 

In this Lease unless the context clearly indicates otherwise:

 

Authority means any government or governmental, semi-governmental, local, administrative or statutory body, department, commission, authority, tribunal or other similar entity;

 

Car Park means the car park on the Land;

 

Common Areas means the areas of the Complex the Landlord provides for common use and includes the accessways, entrances, stairs, elevators, toilets and the Car Park;

 

Complex means the property known as 60-70 Hanover Street, Fitzroy in which the Premises are located, and includes the Land and all improvements on the Land;

 

Expiry Date means the date specified in item 9; 

 

financial year means 1 July to 30 June;

 

item means an item in the schedule;

 

Land means the land described in certificates of title volume 4169 folio 613, volume 4330 folio 930, volume 9235 folio 918, volume 9829 folio 140, volume 8077 folio 965 and volume 5346 folio 043;

 

Landlord means the Landlord and any other person who will be entitled to possession of the Premises when this Lease ends;

 

Landlord’s installations means the equipment, fixtures and fittings set out in item 4 and any other property installed by the Landlord in the Premises;

 

1

 

law means any act, regulation, by-law, ordinance or rules made by any Parliament; 

 

Lease means this Lease and the schedule;

 

Mechanical Services means all air conditioning, heating or ventilation equipment and fire protection equipment or systems in the Premises;

 

Outgoings is defined in clauses 12.2 and 12.3;

 

Premises means that part of the Complex described in item 3 and includes the Landlord’s installations;

 

schedule means the schedule forming part of this Lease; 

 

Start Date means the date specified in item 7;

 

Statutory Charges means all rates, taxes and other duties of every description which are separately assessed, metered or levied by any Authority in respect of the Premises including land tax calculated on the basis that the Complex is the only property owned by the Landlord;

 

Tenant’s Property means all property owned or leased by the Tenant which is inside the Premises including all fixtures, fittings, signs, equipment and goods;

 

Tenant’s share, unless otherwise stated, means the proportion that the floor area of the Premises bears to the lettable area of the Complex;

 

Trust means the Victoria Street Unit Trust; and

 

Valuer means a valuer having not less than 5 years experience in valuing premises similar to the Premises.

 

2                                         DISCLOSURE STATEMENT

 

Intentionally deleted.

 

3                                         LANDLORD’S WORKS

 

Intentionally deleted.

 

4                                         TENANT’S WORKS

 

Intentionally deleted.

 

5                                         TERM

 

This Lease starts on the date stated in item 7. It runs for the term set out in item 8 ending at midnight on the Expiry Date stated in item 9.

 

2

 

6                                         RENEWAL

 

6.1                               Option to renew this Lease

 

If the Tenant tells the Landlord by notice before the date set out in item 14 that the Tenant wishes to renew this Lease the Landlord must grant the Tenant a new lease for the option period set out in item 15 (but see clause 6.3). The new lease must:

 

(a)                                  commence on the day after the Expiry Date;

 

(b)                                 be at the rent set out in item 16; and

 

(c)                                  otherwise be on the same terms and conditions as this Lease except for those changes that can be made by virtue of clause 6.2.

 

6.2                               Changes to this Lease on renewal

 

The Landlord:

 

(a)                                  will delete this clause from the new lease if the new lease is for the final option period set out in item 15; or

 

(b)                                 will delete the first option period specified in item 15 from the new lease if there is more than one option period specified in that item; and

 

(c)                                  may vary the new lease to accommodate any change that needs to be made because of any law dealing with or affecting retail tenancies or the rights and interests of landlords and tenants under retail tenancy leases.

 

6.3                               If Tenant is in breach of this Lease

 

The Landlord does not have to grant the Tenant the new lease if:

 

(a)                                  at the time the Tenant gives the Landlord the notice the Tenant has not remedied any breach under this Lease (see clause 27) about which the Landlord has given the Tenant notice; or

 

(b)                                 the Tenant has persistently breached this Lease and the Landlord has given the Tenant notice of the breaches.

 

7                                         MONTHLY TENANCY

 

If the Tenant occupies the Premises after the Expiry Date with the Landlord’s consent it will do so as a monthly tenant at a rent increased by CPI using the formula set out in clause 11 and otherwise on the same terms as at the Expiry Date of this Lease. The Landlord or the Tenant may end the monthly tenancy on any day by giving at least one month’s notice to the other party.

 

3

 

8                                         PAYMENTS

 

8.1                               What the Tenant must pay the Landlord

 

The Tenant must pay the Landlord the rent, its share of the Outgoings, Statutory Charges and any other money the Tenant must pay the Landlord under this Lease on time and in full without deduction or set-off.

 

8.2                               The Landlord may charge interest if payments are late

 

(a)                                  If the Tenant is late in paying rent or any other money to the Landlord, the Landlord may charge interest on that money at a rate equal to 2% above the rate that applies under section 2 of the Penalty Interest Rates Act 1983.

 

(b)                                 The Landlord will calculate the interest on any unpaid money from the day the unpaid money was due until the day it and all interest accrued on it is paid in full.

 

8.3                               Adjustments

 

If money payable by the Tenant is calculated using a time period and this Lease starts or ends during that time period, the amount payable must be calculated proportionately and the Landlord must make any necessary proportional adjustment.

 

8.4                               Goods and Services Tax

 

If a goods and services tax or similar value added tax (GST) is at any time levied or imposed on or in respect of any supply by the Landlord to the Tenant made under or in accordance with this Lease (including but not only the leasing of the Premises), the amount payable for that supply under this Lease will be increased by the amount of the GST so levied or imposed and the Tenant must pay that amount upon provision of a valid tax invoice.

 

9                                         THE TENANT MUST PAY RENT

 

The Tenant must pay the rent set out in item 10 to the Landlord in equal monthly instalments in advance and on or before the first day of each month.

 

10                                  MARKET RENT REVIEW

 

10.1                        Notice of increased market rent

 

(a)                                  If item 10 or item 16 says that the rent for any year is to be the market rent for the Premises, the Landlord must give the Tenant notice of what the Landlord says is the current market rent for the Premises as at the first day of that year (Market Review Date). The Landlord must give the Tenant this notice not later than 12 months after the Market Review Date.

 

4

 

(b)                                 Until the Landlord gives the Landlord’s notice under clause 10.1, the Tenant must pay the old rent and any adjustment will be calculated from the Market Review Date.

 

10.2                        Disputes

 

If the Tenant disputes the rent notified by the Landlord under clause 10.1, the procedure in clause 10.3 must be followed. Each time limit is consecutive. Each time limit in clause 10.3 is of the essence. This means that if a time limit is not kept, the right attached is lost.

 

10.3                        Review procedure

 

(a)                                  If the Tenant disputes the rent notified by the Landlord under clause 10.1, the Tenant must give the Landlord notice of that dispute by not later than 28 days after the Landlord gives the Landlord’s notice.

 

(b)                                 The Tenant and the Landlord must negotiate in good faith to try to agree on a new rent within 14 days or if a new base rent is not agreed, on the appointment of a Valuer to decide the new rent.

 

(c)                                  If the Tenant and the Landlord do not agree on the new rent or on the appointment of a Valuer within the time set out in clause10.3(b), either the Tenant or the Landlord may ask the President of the Australian Property Institute Inc – Victorian Division (or the president nominee) to appoint a Valuer to decide the new rent. The Valuer must decide the new rent based on the current market rent.

 

10.4                        New rent applies from the Market Review Date

 

The Tenant must pay the new rent from the Market Review Date. Until any dispute is resolved or a right is lost, the Tenant must pay the old rent. Any adjustment will be calculated from the Market Review Date and made when the Tenant’s next monthly payment is due.

 

10.5                        Valuer’s decision

 

The Valuer will act as an independent expert and not as an arbitrator. He or she must:

 

(a)                                  give his or her decision in writing;

 

(b)                                 give detailed reasons for his or her decision; and

 

(c)                                  specify the matters to which he or she had regard in making the decision.

 

10.6                        Valuing the current market rent

 

In the valuation the current market rent is to be taken as the rent obtainable at the time of the review in a free and open market, between a willing landlord and a willing tenant in an arm’s length transaction, having regard to these matters:

 

5

 

(a)                                  the provisions of this Lease;

 

(b)                                 the rent that would reasonably be expected to be paid for the Premises if they were unoccupied and offered for lease for the same, or a substantially similar, use to that set out in item 12;

 

(c)                                  the Landlord’s outgoings to the extent to which the Tenant is liable to contribute to those outgoings.

 

(d)                                 rent concessions and other benefits offered to prospective tenants of unoccupied premises,

 

but the current market rent is not to take account of the value of goodwill created by the Tenant’s occupation or the value of the Tenant’s fixtures and fittings.

 

10.7                        The Valuer’s costs

 

The Tenant and the Landlord must share the Valuer’s costs equally.

 

11                                  RENT REVIEW

 

11.1                        Formula for CPI rent increases

 

If item 10 or item 16 says the rent for any year is to be increased by CPI the rent will be increased on and as at the first day of that year (CPI Review Date) to a new rent calculated using the formula:

 

	
NMR   = CMR x
    	
A
    
	
B
    

 

where:

 

NMR                   is the new rent

 

CMR                   is the rent payable immediately before the CPI Review Date;

 

A                                       is the level of the CPI at the end of the calendar quarter immediately preceding the CPI Review Date;

 

B                                       is the level of the CPI at the end of the calendar quarter immediately preceding the date which is 12 months before the CPI Review Date; and

 

CPI                           is the Consumer Price Index Melbourne, All Groups as published quarterly by the Australian Bureau of Statistics (ABS).

 

11.2                        Changes made by the ABS

 

(a)                                  If the ABS updates the base year of the CPI a conversion will be made to preserve the intended continuity of calculation by using the appropriate arithmetical factor determined by the ABS.

 

6

 

(b)                                 If the ABS stops publishing the CPI the Landlord and the Tenant will agree to replace the CPI with any other index which is published to replace the CPI.

 

(c)                                  If the Landlord and the Tenant cannot agree on a replacement index, the Landlord may ask the person who is then president of the Australian Property Institute Inc – Victorian Division (or the president’s nominee) (President) to select an index which appropriately reflects increases in the cost of living in Melbourne. The President will make the selection as an expert and not as an arbitrator and the selection will be final and binding on the Landlord and the Tenant who must share the President’s costs equally.

 

11.3                        New rent applies from CPI Review Date

 

The Tenant must pay the new rent from the CPI Review Date. If the new rent is not calculated until after the CPI Review Date the Tenant must pay the old rent until the new rent is calculated. Any adjustment will be calculated from the CPI Review Date and made when the Tenant’s next monthly payment is due.

 

12                                  OUTGOINGS

 

12.1                        The Tenant must pay the Tenant’s share of outgoings

 

The Tenant must pay the Tenant’s share of the Outgoings for the Complex. If an Outgoing is only referable to some of the premises in the Complex, including the Premises, then the Tenant’s share of that outgoing will be the proportion that the lettable area of the Premises bears to the total of lettable areas of the premises in the Complex which receive the benefit of the outgoing.

 

12.2                        Meaning of Outgoings

 

Outgoings means all costs the Landlord incurs in relation to the ownership, occupation, use, conduct, management and maintenance of the Complex, including:

 

(a)                                  rates or assessments or other fees payable to an Authority (for example: council rates, water rates, electricity, gas, sewerage);

 

(b)                                 taxes including the Landlord’s land tax and excluding income tax and capital gains tax;

 

(c)                                  premiums for insurance against all risks concerning the Complex or the Landlord’s employees and contractors including insurance against loss of rent and consequential loss;

 

(d)                                 costs the Landlord incurs in the maintenance of and repairs to the Complex;

 

(e)                                  costs of operating, repairing and servicing the Mechanical Services;

 

(f)                                    costs relating to cleaning, pest control, liquid removal, waste removal and fire prevention for the Complex;

 

7

 

(g)                                 costs the Landlord incurs in maintaining the security and control of the Complex;

 

(h)                                 costs relating to the provision of water, gas, electricity, telephone, power and other services to the Complex; and

 

(i)                                     costs of gardening, landscaping and installing, maintaining and cleaning signage and decorative features at the Complex.

 

12.3                        Items excluded from Outgoings

 

Outgoings does not include:

 

(a)                                  any costs due solely to any other tenant’s use of its premises;

 

(b)                                 expenditure on capital account or of a capital nature;

 

(c)                                  any costs the Landlord recovers from the Tenant under clause 13.1 or 13.2; or

 

(d)                                 any costs which the Landlord is not permitted by law to recover from the Tenant.

 

12.4                        Meaning of costs

 

The term costs when used in clauses 12.2 and 12.3 means all costs, expenses, fees, payments, wages, rates, taxes and other charges whether incurred directly or indirectly or through the engagement of independent contractors.

 

12.5                        Landlord to estimate Tenant’s share of Outgoings

 

(a)                                  On or before each 30 June the Landlord may give the Tenant the Landlord’s estimate of the Tenant’s share of the Outgoings for the next financial year.

 

(b)                                 The Tenant must if requested by the Landlord, pay the Landlord the estimated share of the Outgoings in equal monthly instalments, in advance and on or before the first day of each month.

 

12.6                        Landlord’s statement of Outgoings

 

(a)                                  On or before each 30 September the Landlord must give the Tenant a written statement that details:

 

(i)                                     all the Landlord’s expenditure on account of the Outgoings to which the Tenant is liable to contribute for the previous financial year; and

 

(ii)                                  the Tenant’s share of these, 

 

accompanied by a report prepared by a registered company auditor.

 

8

 

12.7                        Adjustment

 

If the Tenant pays its estimated share of the Outgoings in equal monthly instalments under clause 12.5(b) and the Outgoings are greater than the estimated Outgoings paid, the Tenant must pay the Landlord any difference with the Tenant’s next monthly payment. It if is less, the Landlord must refund the Tenant the difference.

 

13                                  OTHER AMOUNTS PAYABLE BY THE TENANT

 

13.1                        Statutory Charges

 

The Tenant must pay the Landlord all Statutory Charges for the Premises not later than 7 days after the Landlord gives the Tenant a notice asking for any of them. If any Statutory Charge is not separately assessed on or in respect of the Premises, the Tenant must pay the Tenant’s share of that Statutory Charge.

 

13.2                        Services to the Premises

 

The Tenant must pay on time for all services (including electricity, gas, oil, water and telephone services) supplied separately to the Premises.

 

13.3                        Landlord’s legal and other costs

 

The Tenant must pay:

 

(a)                                  the Landlord’s reasonable legal and other costs incurred in any dealing under clause 17 (for example: assignment or subletting);

 

(b)                                 any stamp duty on this Lease or any other document arising under this Lease;

 

(c)                                  the Landlord’s reasonable costs of considering any request made by the Tenant for the Landlord’s approval or consent; and

 

(d)                                 the Landlord’s costs incurred if the Tenant is in breach of this Lease.

 

14                                  SECURITY DEPOSIT

 

Intentionally omitted.

 

15                                  THE TENANT’S OBLIGATIONS GENERALLY

 

15.1                        The Tenant must obey the law

 

(a)                                  The Tenant must obey all laws relating to, and the directions of any Authority that requires the Tenant to do, anything concerning the Premises, the Tenant’s use of the Premises or this Lease.

 

(b)                                 The Tenant must give the Landlord copies of any notices or written directions given by any Authority concerning the Premises, the Tenant’s use of the Premises or this Lease.

 

9

 

15.2                        Using this Lease as security

 

The Tenant must not use this Lease as security. The Tenant must get the Landlord’s consent before the Tenant uses the Tenant’s Property as security.

 

15.3                        Caveats

 

The Tenant must not lodge a caveat against the title to the Land.

 

15.4                        The Tenant’s behaviour

 

The Tenant must not do any thing that is or may be dangerous, annoying or offensive to, or that does or may interfere with, adjacent occupiers.

 

15.5                        Danger or risk

 

The Tenant must promptly tell the Landlord about any accident to or problem with any of the Mechanical Services or other services, facilities or equipment in the Premises that needs repair, especially if the Tenant is aware, or ought reasonably to be aware, that this may be a danger or risk to the Complex or any person in the Complex.

 

15.6                        The Tenant must obey fire regulations

 

The Tenant must not store or use inflammable or explosive substances on the Premises, except as required in the normal course of the Tenant’s business.

 

15.7                        The Tenant must pay for damage

 

The Tenant must pay for the cost of repairing any damage the Tenant causes to the Complex.

 

15.8                        Workplace health and safety

 

Without limiting any other provision of this lease, the Tenant must comply at all times with all laws applicable to workplace health and safety. The Tenant must ensure that its employees, agents and contractors (and the contractor’s employees agents and contractors) and persons under its control also comply with those laws.

 

16                                  USING THE PREMISES

 

(a)                                  The Tenant may only use the Premises for the purposes set out in item 12.

 

(b)                                 The Tenant must operate its business at the Premises in accordance with best practice for a business of that nature.

 

(c)                                  The Tenant must obtain and keep current all licences, consents or permits required for operating its business.

 

(d)                                 The security of the Premises is the Tenant’s responsibility. The Tenant must keep the Premises safe and secure and protect them against theft.

 

10

 

(e)                                  The Tenant must get the Landlord’s consent before the Tenant erects any signs or advertisements on or about the Premises.

 

(f)                                    If the Tenant plays music or uses any audio or audio-visual equipment (including television and computer equipment) in the Premises, the Tenant must make sure that the music or noise from that equipment cannot be heard outside the Premises.

 

(g)                                 The Tenant must not have any electronic games, vending machines or similar equipment in the Premises.

 

(h)                                 The Tenant must get the Landlord’s consent before the Tenant uses any services or equipment for cooling, heating, lighting or circulating air in the Premises other than those the Landlord supplies. However this clause does not apply to heating equipment, fans and fume cupboards which are reasonably necessary for the Tenant’s business.

 

(i)                                     The Tenant must store and keep all waste and rubbish in proper receptacles and make sure the rubbish is removed regularly.

 

(j)                                     The Tenant must, at the Tenant’s expense, keep the Premises free from animals, rodents and pests.

 

(k)                                  The Tenant must only use electrical, plumbing or other facilities (for example toilets, sinks, basins or drains) in the Premises for their proper purpose. The Tenant must not deposit any rubbish or foreign material in any of the facilities.

 

(l)                                     The Tenant must not burn any rubbish or any other material on the Complex.

 

(m)                               The Tenant must not conduct any auction, liquidation or fire sale on the Premises.

 

17                                  ASSIGNING OR DEALING WITH THE PREMISES

 

17.1                        Tenant must not assign without consent

 

The Tenant must not assign, sub-lease, share, mortgage or otherwise deal with this Lease or the Premises without the Landlord’s prior consent (which will not be unreasonably withheld).

 

17.2                        When the Landlord will consent to an assignment

 

The Landlord will consent to an assignment of this Lease if the Tenant is not in breach of this Lease and if the Tenant does all of the following:

 

(a)                                  asks in writing for the Landlord’s consent;

 

(b)                                 gives the Landlord any information the Landlord reasonably requires about the financial resources and business experience of the person who wishes to be assigned this Lease (new person);

 

11

 

(c)                                  otherwise proves to the Landlord that the person who wishes to be assigned this Lease is respectable and responsible and has the financial resources or business experience necessary to meet the obligations under this Lease;

 

(d)                                 delivers to the Landlord any personal guarantees, security deposit or any other security the Landlord reasonably requires;

 

(e)                                  signs and has the new Tenant sign a document recording the assignment in a form approved by the Landlord’s lawyers, and which records that the Tenant is not released from the Tenant’s obligations under this Lease; and

 

(f)                                    pays the Landlord’s reasonable costs of making enquiries about the new person as well as the Landlord’s legal fees incurred on the assignment.

 

17.3                        Change in control of the Tenant

 

If the Tenant is a corporation (other than a corporation whose shares are listed on any Stock Exchange in Australia) and the Tenant intends to take any action which has or will have the effect that the legal or beneficial ownership or control of more than 50% of the Tenant’s shareholding changes, the Tenant must seek the Landlord’s consent to the change before taking that action as if that change is an assignment of this Lease.

 

18                                  MAINTAINING THE PREMISES AND THE TENANT’S PROPERTY

 

18.1                        Tenant’s maintenance responsibilities

 

At the Tenant’s cost the Tenant must:

 

(a)                                  keep the Premises clean and tidy;

 

(b)                                 keep the Premises in good condition, except for fair wear and tear and carry out all repairs to the Premises and fix any damage to the Premises;

 

(c)                                  maintain, repair and keep the Tenant’s property in good condition; and

 

(d)                                 keep the gardens and lawns of the Premises (if any) tidy and attractive.

 

18.2                        Structural repairs

 

The Tenant is not required to carry out structural repairs or repairs of a capital nature unless the need for them arises from:

 

(a)                                  the Tenant’s negligence;

 

(b)                                 the Tenant’s failure to obey this Lease; or

 

(c)                                  the Tenant’s use of the Premises.

 

12

 

19                                  ALTERING THE PREMISES

 

(a)                                 The Tenant must get the Landlord’s consent before the Tenant alters, installs any equipment in, re-designs the interior of, paints or does any other work in or to the Premises (Tenant’s Works).

 

(b)                                 Before the Tenant starts the Tenant’s Works it must submit plans and specifications for that work to the Landlord for the Landlord’s approval.

 

(c)                                  When the Landlord gives that approval and before the Tenant starts the works, the Tenant must get the approval of all relevant Authorities to the fitout plans approved by the Landlord and deliver evidence of that approval to the Landlord.

 

(d)                                 The Tenant must carry out the Tenant’s Works as shown on the plans approved by the Landlord and the relevant Authorities.

 

(e)                                  The Tenant must reimburse the Landlord for any costs incurred by the Landlord in considering the plans including any reasonable fees charged by the Landlord’s architects or consultants. The Tenant must make that reimbursement when requested by the Landlord.

 

20                                  WHEN THIS LEASE ENDS

 

When this Lease ends:

 

(a)                                 the Tenant must vacate the Premises and give them back to the Landlord in the same condition as they were in at the starting date, except for fair wear and tear;

 

(b)                                 the Tenant must make sure all the Tenant’s property is removed and must fix any damage caused by the removal; and

 

(c)                                  anything left at the Premises will become the Landlord’s property and the Landlord may keep it or dispose of it.

 

The Tenant must pay the Landlord one day’s rent for each day that there is anything left on the Premises after this Lease ends until the Landlord is able to dispose of all that property.

 

21                                  THE LANDLORD’S RIGHTS AND OBLIGATIONS

 

21.1                        The Tenant’s quiet enjoyment

 

If the Tenant does not breach this Lease, the Landlord must allow the Tenant to occupy and use the Premises without the Landlord interrupting or disturbing the Tenant, except where this Lease allows the Landlord to do so.

 

13

 

21.2                        Roof and external walls

 

The Landlord has the sole right to use the roof and external walls of the Complex.

 

21.3                        Landlord’s maintenance

 

The Landlord must maintain the structure of the Premises and the Landlord’s installations in the Premises in a condition consistent with the condition they were in on the date the Tenant first occupied the Premises unless the need for the repair arises out of the Tenant’s misuse.

 

21.4                        The Landlord may enter the Premises

 

(a)                                 The Landlord may enter the Premises for inspection or to carry out maintenance, repairs or other building work and at any reasonable time after giving the Tenant reasonable notice. If there is an emergency, the Landlord may enter at any time without giving the Tenant notice.

 

(b)                                 The Landlord may enter the Premises at any time to show them to prospective purchasers or tenants during business hours after giving the Tenant reasonable notice.

 

21.5                        The Landlord may give the Tenant notice to do work

 

The Landlord may give the Tenant notice which requires the Tenant to do any work to the Premises which is the Tenant’s responsibility under this Lease, within a reasonable time.

 

21.6                        The Landlord may do things on the Tenant’s behalf

 

The Landlord may carry out any of the Tenant’s obligations on the Tenant’s behalf if the Tenant does not carry it out on time (for example: if the Tenant does not do repairs). The Tenant must promptly reimburse the Landlord’s costs of doing this.

 

21.7                        The Landlord may erect signs

 

The Landlord may erect any of the following:

 

(a)                                 signs advertising the Premises for lease during the 3 months before this Lease ends; and

 

(b)                                 signs advertising the Premises for sale at any time,

 

but in doing so the Landlord must not interfere with the Tenant’s business.

 

21.8                        Subdivision

 

(a)                                 The Landlord may at any time subdivide the Complex and may sell any lot of the subdivided Complex. If the Landlord asks, the Tenant will sign a consent

 

14

 

to the subdivision prepared by the Landlord. The Landlord must pay the Tenant’s reasonable costs of doing so.

 

(b)                                 The Landlord will ensure that there is no interference to the Tenant’s business caused by the subdivision.

 

(c)                                  The Tenant must not object to or obstruct any subdivision, sale or consolidation of the Complex.

 

(d)                                 The Tenant must obey any body corporate rules which apply to the Complex after the subdivision as if those rules were part of this Lease, but the Tenant will not have to pay any additional costs or body corporate fees which it would not otherwise have to pay under this Lease.

 

(e)                                  The Landlord must not subdivide that part of the Premises described in Item 3(a) if that subdivision would result in that part of the Premises being owned by more than one party.

 

22                                  LANDLORD’S REPAIRS OR BUILDING WORK

 

22.1                        The Landlord may do repairs

 

The Landlord may do any repairs or maintenance to the Complex.

 

22.2                        The Landlord may do building work

 

The Landlord may do any building work to extend or change the Complex or any part of it (excluding the Premises) but if the Landlord does the Landlord must cause as little disruption as the Landlord reasonably can to the Tenant’s use of the Premises

 

23                                  IF THE PREMISES ARE DAMAGED OR DESTROYED

 

23.1                        Tenant may ask Landlord to rebuild

 

If the Premises are damaged or destroyed and as a result the Tenant cannot use or have access to the Premises the Tenant may ask the Landlord to re-build them. Meanwhile the Tenant must continue to use any part of the Premises that is useable, safe and accessible.

 

23.2                        When Tenant or Landlord may end this Lease

 

If the Landlord does not re-build the Premises within a reasonable time after the Tenant asks or if the Landlord decides not to re-build them, the Tenant or the Landlord may end this Lease by giving not less than 7 days’ notice to the other.

 

23.3                        Landlord is not liable to pay compensation

 

The Landlord will not be liable to pay the Tenant compensation but the Landlord must reduce the Tenant’s rent and any other money payable by the Tenant under this Lease by a reasonable amount, depending on the type and extent of the damage or

 

15

 

destruction, from the date on which the damage or destruction occurs until the Premises are again fit for use and accessible or this Lease is ended.

 

23.4                        If insurer is not obliged to pay for reinstatement

 

The Tenant cannot end this Lease and must continue to pay rent and all other money payable by the Tenant under this Lease up to the Expiry Date if the Landlord’s insurer is not legally required to pay to reinstate the Premises because of anything done or not done by the Tenant.

 

24                                  IF PREMISES ARE RESUMED

 

If an Authority resumes the Premises or any part and this makes the Premises unfit for the Tenant’s use, the Landlord or the Tenant may end this Lease by notice to the other. The Landlord will not be liable to pay the Tenant any compensation in these circumstances.

 

25                                  RISKS AND INSURANCE

 

25.1                        The Tenant must have insurance

 

(a)                                 The Tenant must have throughout the period of this Lease current insurance for all of the following:

 

(i)                                  public liability insurance policy for the amount in item 13;

 

(ii)                               insurance covering the Tenant’s property for its full value; and

 

(iii)                            plate glass insurance for its replacement value.

 

(b)                                 The Tenant must take out the Tenant’s insurance with an insurer approved by the Landlord.

 

(c)                                  The Landlord’s interest must be noted on each insurance policy.

 

(d)                                 The Tenant must give the Landlord evidence of the insurance before the start of this Lease and at the start of each financial year.

 

(e)                                  The Tenant must not do anything that may make the Landlord’s insurance invalid or able to be cancelled or that may increase the Landlord’s insurance premium. If the Landlord’s insurance premium does increase and the Landlord accepts that increase, the Tenant must pay the amount of the increase.

 

26                                  THE TENANT RELEASES AND INDEMNIFIES THE LANDLORD

 

26.1                        Tenant occupies the Premises at its own risk

 

The Tenant occupies and uses the Premises at the Tenant’s own risk. The Tenant will also carry out any building work in the Premises at the Tenant’s own risk.

 

16

 

26.2                        Release

 

The Tenant releases the Landlord from any action or demand due to any damage, destruction, loss, injury or death occurring in the Premises or the Complex except to the extent that the Landlord causes this by the Landlord’s negligence.

 

26.3                        The Tenant indemnifies the Landlord

 

The Tenant indemnifies the Landlord against any action or demand due to any damage, loss, destruction, injury or death caused by:

 

(a)                                 the Tenant’s wilful act or negligence;

 

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

 

(c)                                  the use by the Tenant of services to the Premises,

 

except to the extent that the Landlord caused this by the Landlord’s negligence.

 

27                                  HOW THE TENANT BREACHES THIS LEASE

 

The Tenant will be in breach of this Lease if:

 

(a)                                 the Tenant does not pay the Landlord any part of the rent on time and whether or not the Landlord has asked the Tenant to pay that rent; or

 

(b)                                 the Tenant does not pay the Landlord on time any other money which the Tenant must pay to the Landlord under this Lease and does not make that payment within 14 days after the Landlord gives the Tenant a notice requiring that payment; or

 

(c)                                  the Tenant disobeys any other term of this Lease and the Tenant does not remedy that breach within 14 days after the Landlord gives the Tenant a notice specifying that breach and asking the Tenant to remedy it; or

 

(d)                                 if the Tenant is a natural person and proceedings are commenced for either the Tenant’s voluntary or compulsory bankruptcy;

 

(e)                                  if the Guarantor is a natural person and:

 

(i)                                     becomes a bankrupt;

 

(ii)                                  proceedings are commenced for the Guarantor’s voluntary or compulsory bankruptcy; or

 

(iii)                               enters into or tries to enter into any scheme of arrangement or other compromise with the Guarantor’s creditors;

 

(f)                                   if the Tenant or a Guarantor is a corporation and:

 

17

 

(i)            proceedings are commenced for either the voluntary or compulsory winding-up of the Tenant or the Guarantor;

 

(ii)           an order is made for the appointment of a provisional liquidator to the Tenant or the Guarantor;

 

(iii)          a controller within the meaning of Section 9 of the Corporations Act is appointed over any property or business of the Tenant or the Guarantor;

 

(iv)          a resolution is passed that the Tenant or the Guarantor be wound up; or

 

(v)           an administrator is appointed under Part 5.3A of the Corporations Act to the Tenant or the Guarantor or the directors of the Tenant or the Guarantor pass a resolution to appoint an administrator; or

 

(vi)          the Tenant or the Guarantor enters into or tries to enter into any scheme of arrangement or other compromise with the Tenant’s or the Guarantor’s creditors.

 

28                                  IF THE TENANT BREACHES THIS LEASE

 

28.1                        What the Landlord may do if the Tenant is in breach

 

If the Tenant is in breach of this Lease and does not remedy the breach as required, the Landlord may do any one or more of the following:

 

(a)                                 re-enter and take possession of the Premises;

 

(b)                                 end this Lease (see clause 20);

 

(c)                                  recover from the Tenant any loss or damage the Landlord suffers due to the Tenant’s breach;

 

(d)                                 use the security deposit (see clause 14) to recover any loss or damage the Landlord suffers due to the Tenant’s breach; or

 

(e)                                  exercise any of the Landlord’s other legal rights.

 

28.2                        Breach of an essential term

 

If the Tenant breaches an essential term of this Lease and the Landlord re-enters and takes possession of the Premises or ends this Lease, the Landlord may recover all money payable by the Tenant under this Lease up to the expiry date. The essential terms are clauses 9, 12, 13, 14 (if applicable), 16, 17, 18, 19 and 25.1.

 

18

 

28.3                        If the Tenant vacates the Premises before the Expiry Date

 

If the Tenant vacates the Premises before the Expiry Date, whether or not it ceases to pay rent, the Landlord may:

 

(a)                                 accept the keys for the Premises; or

 

(b)                                 enter the Premises to inspect or repair them or to show them to prospective tenants; or

 

(c)                                  advertise the Premises for re-letting

 

without this being re-entry or waiver of the Landlord’s rights to recover the rent or other money under this Lease. This Lease continues until a new tenant takes possession of the Premises, unless the Landlord accepts a surrender of or ends this Lease.

 

29                                  GUARANTEE AND INDEMNITY BY THE GUARANTOR

 

Intentionally deleted.

 

30                                  NOTICES

 

30.1                        Notices to be writing

 

A notice, request, consent, approval, demand or statement (notice) required by this Lease must be in writing.

 

30.2                        Serving Notices

 

(a)                                 The Landlord may serve a notice on the Tenant by:

 

(i)                                  giving it to the Tenant personally;

 

(ii)                               leaving it at the Premises; or

 

(iii)                            leaving it at, posting it to or faxing it to the Tenant’s address set out in this Lease or to the Tenant’s registered office or the Tenant’s business address as last known to the Landlord.

 

(b)                                 The Landlord may serve a notice on the Guarantor by:

 

(i)                                  giving it to the Guarantor personally; or

 

(ii)                               leaving it at, posting it to or faxing it to the Guarantor’s address set out in this Lease.

 

(c)                                  The Tenant may serve a notice on the Landlord by leaving it at, posting it to or faxing it to:

 

(i)                                  the Landlord’s address set out in this Lease; or

 

19

 

(ii)                               any other address that the Landlord nominates.

 

31                                  LANDLORD’S CONSENT AND APPROVAL

 

Unless this Lease says otherwise, if the Tenant asks for the Landlord’s consent or approval for something, the Landlord must act promptly but the Landlord may give or withhold its consent or approval at the Landlord’s choice. The Landlord may also require the Tenant to obey any terms before the Landlord gives, or as a condition of, the Landlord’s consent or approval.

 

32                                  SPECIAL CONDITIONS

 

The special conditions set out in item 18 bind the Tenant and the Landlord. If any special condition is inconsistent with a term of this Lease, the special condition will prevail.

 

33                                  GENERAL

 

33.1                        Individual and joint liability

 

If two or more people are described in item 1 or item 2, each person described in the item is liable for all of the obligations under this Lease of the persons named in that item both individually and together with each other person described in that item.

 

33.2                        Waiver

 

A waiver by the Landlord will only be enforceable against the Landlord if the waiver is in writing and signed by the Landlord.

 

33.3                        Warranties by the parties

 

This Lease and the disclosure statement contain the whole agreement of the parties. Neither party is entitled to rely on any warranty or statement in relation to:

 

(a)                                 the conditions on which this Lease has been agreed;

 

(b)                                 the provisions of this Lease; or

 

(c)                                  the Premises

 

which is not contained in those documents.

 

33.4                        Victorian law applies

 

This Lease is governed by Victorian law.

 

33.5                        Severability

 

If any term of this Lease is made void or unenforceable, the remaining terms will not be affected.

 

20

 

34                                  INTERPRETATION

 

In this Lease:

 

(a)                                 an obligation not to do something includes the obligation not to allow or permit that thing to be done;

 

(b)                                 unless it is clearly not the intention, an obligation is an obligation for the entire term of this Lease;

 

(c)                                  a word or expression in the singular includes the plural and the plural includes the singular;

 

(d)                                 a reference to a person includes an individual, a corporation and any other organisation having a legal entity;

 

(e)                                  examples are descriptive only and not exhaustive;

 

(f)                                   headings are inserted for convenience only and are not to be used to interpret this Lease;

 

(g)                                  a reference to a clause is a reference to a clause in this Lease;

 

(h)                                 a reference to any thing (including any place or money) includes a reference to a part of that thing; and

 

(i)                                     the expression at any time means at any time and from time to time.

 

35                                  TIME FOR DOING ACTS

 

If the date by which or the period in which anything must be done under this Lease ends on a Sunday or a public holiday in Melbourne, the date or period will be extended to the next day that is not a Sunday or a public holiday.

 

36                                  CAR PARKING LICENCE

 

36.1                        Definitions

 

In this clause 36:

 

Car Spaces means the number of car spaces set out in Item 17 in the location as designated by the Landlord from time to time by notice in writing to the Tenant.

 

Parking Fee means the monthly amount set out in Item 17 as varied under this Lease.

 

36.2                        Licence

 

(a)                                 Subject to the provisions of this clause 36 the Landlord grants to the Tenant a non-exclusive licence to use the Car Spaces from the date this Lease starts until the earlier of the Expiry Date and the date this Lease ends.

 

21

 

(b)                                 The Landlord may restrict access to the Car Park:

 

(i)                                  if required by any Authority; or

 

(ii)                               due to any cause which in the reasonable opinion of the Landlord endangers or may endanger the Car Spaces, the Complex or any person or property in the Complex.

 

36.3                        Holding Over

 

If the Tenant continues to occupy the Premises under clause 2 this licence continues until the Tenant’s occupation of the Premises ends.

 

36.4                        Use of the Car Spaces

 

The Tenant:

 

(a)                                 must not use the Car Spaces other than to park one car in each Car Space;

 

(b)                                 must not bring any vehicle into the Complex or onto the Land which is unsafe or which drips oil or fluid;

 

(c)                                  must comply with any law relating to the Tenant’s use of the Car Spaces except where such a law requires the Tenant to carry out structural works or alterations to the Car Spaces or the Complex;

 

(d)                                 must not clean, grease, oil, service or wash cars in the Car Park or otherwise use the Car Park in a way which would cause damage, nuisance or disturbance to occupants of the Complex or an adjoining property;

 

(e)                                  must, if requested by the Landlord, promptly give to the Landlord details (including registration numbers) of the cars the Tenant will park in the Car Spaces from time to time.

 

36.5                        Assignment and Sub-Licensing

 

The Tenant may:

 

(a)                                 assign this licence to a person to whom the Tenant assigns the Lease; or

 

(b)                                 sub-licence the Car Spaces to a person to whom the Tenant has sub-let the Premises

 

if that assignment of the Lease or sub-lease of the Premises has been approved by the Landlord.

 

36.6                        Landlord’s right of entry

 

The Landlord may enter the Car Spaces at reasonable time after giving the Tenant reasonable notice or, in the case of emergencies, without notice to:

 

22

 

(a)                                 install, maintain, repair, alter or inspect the Car Park or the services in or to the Car Park;

 

(b)                                 carry out repairs, renovations, maintenance or alterations to the Car Spaces which are reasonably necessary;

 

(c)                                  stop any actual or potential damage to the Complex occurring in or about the Car Spaces; and

 

(d)                                 comply with any laws or the requirements of any relevant Authority that are not the Tenant’s responsibility to comply with.

 

In exercising the Landlord’s rights under this clause 36, the Landlord must cause as little inconvenience to the Tenant as is practicable in the circumstances.

 

36.7                        Risk

 

The Tenant uses the Car Park and the Car Spaces at the Tenant’s own risk.

 

36.8                        Release

 

(a)                                 The Landlord is not responsible and has no liability to the Tenant for any claim by the Tenant against the Landlord as a consequence of the use of the Car Park or Car Spaces by the Tenant except to the extent that that claim arises because of the Landlord’s default or negligence.

 

(b)                                 Without limiting the release in clause 36.8(a) the Landlord will not be responsible for:

 

(i)                                     the theft of any cars the parts, equipment or contents of any cars while the cars are on the Land; or

 

(ii)                                  damage whether malicious or accidental that any cars may sustain while entering or leaving the Complex or within the Complex.

 

36.9                        Indemnity

 

The Tenant indemnifies and will keep indemnified the Landlord from and against all claims made against the Landlord as a consequence of the use of the Car Park or Car Spaces by the Tenant except to the extent that that claim arises because of the Landlord’s default or negligence.

 

36.10                 Security cards

 

The Landlord may restrict access to the Car Park by means of security cards. 

 

36.11                 End of licence

 

(a)                                 When this licence ends the Tenant must:

 

23

 

(i)                                     remove the cars from the Car Park and make good any damage caused or contributed to by the Tenant; and

 

(ii)                                  leave the Car Spaces in a neat and tidy state, clean and free of rubbish.

 

(b)                                 The Landlord may remove and store at the Tenant’s Cost the cars not removed by the Tenant in accordance with clause 36.11(a).

 

36.12                 Parking Fee

 

(a)                                 The Tenant must pay to the Landlord the Parking Fee:

 

(i)                                     by equal monthly instalments in advance; and

 

(ii)                                  at the same time and in the same manner as the Rent.

 

(b)                                 The Parking Fee will be reviewed at the same time and in the same manner as the Rent.

 

36.13                 Parking levy

 

(a)                                 Any levy, rate, charge or assessment imposed by any Authority in respect of a Car Space is not included in the Parking Fee.

 

(b)                                 In addition to the Parking Fee, the Tenant must pay any levy rate, charge or assessment in respect of each Car Space upon demand by the Landlord.

 

37                                  DEMOLITION

 

37.1                        Landlord may terminate for demolition

 

If the Landlord wishes to carry out building work to extend, improve or change the premises or the Complex the Landlord may terminate this Lease.

 

37.2                        Notice of termination

 

(a)                                 The Landlord must give the Tenant atleast 9 months’ notice of the termination under clause 37.1 (termination notice), but cannot give a termination notice before 31 January 2015.

 

(b)                                 The termination notice must state the date (termination date) by which the Tenant needs to leave the premises and this Lease will end and the Tenant must leave the premises on the termination date.

 

EXECUTED as a deed.

 

24

 

	
The   COMMON SEAL of CRUDE PTY LTD
    	
)
    	

    
	
(ACN   124 327 920) is affixed in accordance
    	
)
    
	
with   its constitution in the presence of:
    	
)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   [ILLEGIBLE]
    
	
 
    	
 
    	
Signature   of Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   [ILLEGIBLE]
    
	
 
    	
 
    	
Name   of Director
    

 

 

	
EXECUTED by GENETIC
    	
)
    	
 
    
	
TECHNOLOGIES LIMITED (ACN 009 212
    	
)
    	
 
    
	
328)   in accordance with section 127 of the Corporations Act:
    	
)
    	
 
    

 

 

	
/s/ [ILLEGIBLE]
    	
 
    	
/s/   [ILLEGIBLE]
    
	
Signature of Director
    	
 
    	
Signature   of Director/Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MELVYN J BRIDGES
    	
 
    	
Thomas G. Howitt
    
	
Name of Director
    	
 
    	
Name   of Director/Secretary
    

 

25

 

SCHEDULE

 

	
Item   1:
   (Tenant)
    	
 

GENETIC TECHNOLOGIES LIMITED (ACN 009 212 328) of 60-66   Hanover Street, Fitzroy, Victoria, 3065
    
	
 
    	
 
    
	
Item   2:
   (Guarantor)
    	
Not   applicable
    
	
 
    	
 
    
	
Item   3:
   (Premises)
    	
Those   parts of the Complex being:
    
	
 
    	
(a)                            the area known as 60-66 Hanover   Street, Fitzroy Victoria measuring approximately 1,302 square metres; and

 

(b)                            the area being part of 68-70   Hanover Street, Fitzroy measuring approximately 104 square metres

being the areas shown hatched   on the plans in Annexure A.
    
	
 
    	
 
    
	
Item   4:
    	
 
    
	
(Landlord’s   installations)
    	
1                                         Floor coverings – vinyl and   carpet;

2                                         Laboratory benches;

3                                         Sinks and taps;

4                                         Safety shower/s;

5                                         Built in cupboards;

6                                         Fume cupboards x 3;

7                                         Venetian blinds;

8                                         Dexion shelving located in   south west room;

9                                         Reception desk;

10                                  Zip hot water units x 1;

11                                  Fire alarm systems;

12                                  Security alarm systems;

13                                  Fire extinguishers & hose   reels;

14                                  Remote electronic gate openers;

15                                  Light fittings;

16                                  Staff room kitchen cupboards;

17                                  Granite board room table and   sideboard, 12 matching chairs, 2 refrigerators, kitchen cupboards, safe;

18                                  All Abloy locks, padlocks and   keys;

19                                  Airconditioning units.

 
    
	
 
    	
 
    
	
Item   5:
    (Landlord’s   works)
    	
Not   applicable
    
	
 
    	
 
    
	
Item   6:
    (Tenant’s   works)
    	
Not   applicable
    
	
 
    	
 
    
	
Item   7:
    (Lease   Start Date)
    	
1 September 2012
    
	
 
    	
 
    
	
Item   8:
    (Duration   of Lease)
    	
3 years
    

 

1

 

	
Item   9:
    (Lease   Expiry Date)
    	
31   August 2015
    
	
 
    	
 
    
	
Item   10
    	
 
    	
 
    
	
(Rent)
    	
Year 1:

 

 

 

 

Year 2:
    	
(a)                                 In respect of that part of the   Premises described in Item 3(a): $294,697.52

(b)                                 In respect of that part of the   Premises described in Item 3(b): $13,451.36

 

 

 

The rent is to be increased by   4%
    
	
 
    	
 
    	
 
    
	
 
    	
Year   3:
    	
The   rent is to be increased by 4%
    
	
 
    	
 
    	
 
    
	
Item   11
    (Security   deposit)
    	
Not   applicable
    
	
 
    	
 
    
	
Item   12:
    	
 
    
	
(Use   of Premises)
    	
Offices,   Commercial and Research Laboratories and any ancillary uses of the Tenant
    
	
 
    	
 
    
	
Item   13:
    (Public   Liability Insurance)
    	
$10   million
    
	
 
    	
 
    
	
Item   14:
    (Last   date to renew Lease)
    	
31   January 2015
    
	
 
    	
 
    
	
Item   15:
   (Option term)
    	
1   option term of 2 years
    
	
 
    	
 
    
	
Item   16:
    (Rent   during option term)
    	
Year   1:
    	
The   rent is to be the market rent for the premises (see clause 10)
    
	
 
    	
 
    	
 
    
	
 
    	
Year   2:
    	
The   rent is to be the rent for year 1 of the option term increased by 4%
    
	
 
    	
 
    	
 
    
	
Item   17:
    (Car   spaces and fee)
    	
26   Car Spaces at an initial Parking Fee of $100 per space per month
    
	
 
    	
 
    	
 
    
	
Item   18:
    (Special   conditions)
    	
1
    	
Upon   execution of this Lease by both parties, the Lease for the Premises dated 4   November 2010 will automatically end with effect on and from 31 August 2012,   without prejudice to either party’s rights in respect of a prior breach under   that lease.
    
	
 
    	
 
    	
 
    
	
 
    	
2
    	
The   Landlord will use all reasonable endeavours to ensure

that   the Tenant has reasonable access to that part of the
    

 

2

 

	
 
    	
 
    	
Premises   described in Item 3(b) through the area shaded green on the plans attached in   Annexure A during the Tenant’s usual business hours.
    
	
 
    	
 
    	
 
    
	
 
    	
3
    	
Despite   clause 15.2, while Genetic Technologies Limited (ACN 009 212 328) is the   Tenant, the Landlord’s consent is not required to any fixed and floating   charge over all of the Tenant’s assets.
    

 

3

 

ANNEXURE A

Plans showing Premises

 

 

4

 

 

5

 

 

	
3   September 2012

 

Ms   Alison Mew

Chief   Operating Officer

Genetic   Technologies Limited

60-66   Hanover Street

FITZROY VIC 3065
    	
Contact

Direct   Line

Email

Partner

Our   Ref
    	
Kathy   Roberts

(03) 9321 9703
   kathy.roberts@holdingredlich.com.au

Margot Sharpe

KAR:LD:12500737
    
	
 
    	
 
    	
 
    
	
 
    	
By courier
    	
 
    

 

Dear Ms Mew

 

Lease: Crude Pty Ltd to Genetic Technologies Limited

Premises: 60-66 and Part 68-70 Hanover Street, Fitzroy

 

Further to previous correspondence we enclose for the Tenant’s safekeeping executed Lease dated 31 August 2012.

 

Please acknowledge receipt of the document by signing and returning to us the attached copy of this letter.

 

	
Yours   sincerely
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   [ILLEGIBLE]
    	
 
    
	
HOLDING   REDLICH
    	
 
    
	
 
    	
 
    
	
Enclosures:   1
    	
 
    
	
 
    	
 
    
	
Copy   to: R Nguyen, DeGroup Pty Ltd
    	
 
    

 

Melbourne . Sydney . Brisbane

 

Level 8 555 Bourke Street Melbourne Vic 3000 DX 422 Melbourne

GPO Box 2154 Melbourne Vic 3001 T +61 3 9321 9999 www.holdingredlich.com

[ILLEGIBLE]

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