Document:

Australian Sale and Leaseback Agreement

Table of Contents

 Exhibit 10.1
 PROPERTY ACQUISITION AGREEMENT
  THIS PROPERTY ACQUISITION AGREEMENT is made the ________________________ day of _____________________, 2000.

	  BETWEEN:
 	  SIZZLER AUSTRALIA PTY LTD ACN 010 060 876 (“SA”)of 16 Edmondstone Street, Newmarket, Brisbane in the State of Queensland.
 
	  
 	  (“Vendor”)
 
	  
 	  
 
	  AND:
 	  CRANPORT PTY LTD ACN 010 271 271 as Trustee for THE THIE FAMILY TRUST of Lot 12 Enkleman Road, Yatala in the State of Queensland
 
	  
 	  (“Purchaser”)
 
	  
 	  
 
	 WHEREAS:
 
	  
 
	  A.
 	  SA is the registered proprietor of the Land.
 
	  
 	  
 
	  B.
 	  SA wishes to sell and the Purchaser wishes to purchase an estate in fee simple in the Land subject to the terms and conditions in this Agreement.
 
	  
 	  
 
	  NOW THIS DEED WITNESSES AS FOLLOWS:-
 	  
 
	  
 	  
 
	  
 	  
 
	  1.
 	 
DEFINITIONS
 
	  
 	  
 
	 1.1
 	  In the Agreement, unless the subject or context is inconsistent, each of the following expressions shall have the meaning assigned to it below:-
 
	  
 	  
 
	  
 	  Adjustment Date:  the Date for Completion
 
	  
 	  
 
	  
 	  Agreement:  this agreement for sale and all Schedules and Annexures to this agreement and any variations hereof in writing and signed by the
parties.
 
	  
 	  
 
	  
 	  Balance Purchase Price:  $810,000.00
 
	  
 	  
 
	  
 	  Business Days:  any day on which trading banks are open for business in Brisbane
 
	  
 	  
 
	  
 	 Completion:  completion of the sale and purchase of the Land as detailed in this Agreement.
 
	  
 	  
 
	  
 	  Date for Completion:  the date 30 days after the date of this Agreement.
 
	  
 	  
 
	  
 	  Deposit:  $90,000.00
 
					

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 	  Encumbrance:  an interest or power:-
 
	  
 	  
 
	  
 	  (a)
 	  reserved in or over any interest in any part of the Land including, without limitation, any retention of title; or
 
	  
 	  
 	  
 
	  
 	 (b)
 	  created or otherwise arising in or over any interest in any part of the Land under a bill of sale, mortgage, charge, lien, pledge, trust or power by way of security
for the payment of debt or any other monetary obligation or the performance of any other obligation and whether existing or agreed to be granted or created.
 
	  
 	  
 	  
 
	  
 	  Finance Date:  21 days from the date hereof.
 
	  
 	  
 
	  
 	  Foreign Acquisitions and Takeovers Act:  the Foreign Acquisitions and Takeovers Act 1975.
 
	  
 	  
 
	  
 	  Governmental Agency:  any:-
 
	  
 	  
 
	  
 	 (a)
 	  state, commonwealth or local government or governmental, semi-governmental or judicial entity or authority; or
 
	  
 	  (b)
 	  minister, department, office, commission, delegate, instrumentality, agency, board, authority or organisation of any government.
 
	  
 	  
 	  
 
	  
 	  It also includes any regulatory organisation established under statute or any stock exchange.
 
	  
 	  
 
	  
 	  Land:  the property described in Schedule 1.
 
	  
 	  
 
	  
 	  Land Title Act: the Land Title Act 1994 (Qld).
 
	  
 	  
 
	  
 	 Lease: the lease contained in Schedule 2
 
	  
 	  
 
	  
 	  Permit to Enter:  the document entitled “Lessor’s Consent and Permit to Enter” to be given in favour of Westpac Banking Corporation, an
example of which is set out in Schedule 5.
 	  
 
	  
 	  
 
	  
 	  Property Law Act:  the Property Law Act 1974 (Qld)
 
	  
 	  
 
	  
 	  Purchase Price:  $900,000.00
 
	  
 	  
 
	  
 	  Purchaser:  Cranport Pty Ltd ACN 010 271 271 as Trustee for The Thie Family Trust of Lot 12 Enkleman Road, Yatala
 
	  
 	  
 
	  
 	 Purchaser’s Solicitors:  Birch & Co Solicitors, PO Box 6089, Upper Mt Gravatt
 
	  
 	  
 
	  
 	  SA:  Sizzler Australia Pty Ltd ACN 010 060 876
 
	  
 	  
 
	  
 	  Stakeholder:  the Vendor’s Solicitors
 
	  
 	  
 
	  
 	  Vendor:  SA
 
	  
 	  
 
	  
 	  Vendor’s F F & E: the fixtures, fittings, furniture, plant, equipment, partitions and chattels of all kinds including those which are described in
Schedule 4.
 
				

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 	  Vendor’s Solicitors:  Hogan Besley Boyd, Second Floor, 169 Mary Street, Brisbane
 
	  
 	  
 
	  
 	  
 
	  2.
 	  INTERPRETATION

 
	  
 	  
 
	  2.1
 	  In this Agreement headings are for convenience only and shall not affect its interpretation.  Except to the extent that the context otherwise
requires:-
 
	  
 	  
 
	  
 	  (a)
 	  reference to any statute or statutory provisions shall include any modification or re-enactment of, or any legislative provisions substituted for, and all legislation and
statutory instruments issued under such legislation or such provision;
 
	  
 	  
 	  
 
	  
 	 (b)
 	  words denoting the singular shall include the plural and vice versa;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  words denoting individuals shall include corporations, associations, trustees, instrumentalities and partnerships and vice versa;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  words denoting any gender shall include all genders;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  references to Parties, Parts, Clauses, Annexures and Schedules are references to Parties, Parts, Clauses, Annexures and Schedules to this Agreement as modified or varied from time
to time;
 
	  
 	  
 	  
 
	  
 	 (f)
 	  references to any document, deed or agreement shall include references to such document or agreement as amended, novated, supplemented, varied or replaced from time to
time;
 
	  
 	  
 	  
 
	  
 	  (g)
 	  references to any party to this Agreement or any other document, deed or agreement shall include its successors or permitted assigns;
 
	  
 	  
 	  
 
	  
 	  (h)
 	  all references to dates and times are to Brisbane time; and
 
	  
 	  
 	  
 
	  
 	  (i)
 	  all references to “$” and “dollars” are references to the lawful currency of Australia.
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	 3.
 	  SALE AND PURCHASE

 
	  
 	  
 
	  3.1
 	  The Vendor shall sell to the Purchaser and the Purchaser shall purchase from the Vendor on the Date for Completion an estate in fee simple in the Land on the terms and
conditions in this Agreement.
 
	  
 	  
 
	  3.2
 	  The Land shall be sold and transferred to the Purchaser free from Encumbrances except as set out in this Agreement and subject to easements and other encumbrances
noted or shown on the registered plan for the Land, and always subject to the conditions appearing in this Agreement.
 
	  
 	  
 
	  
 	  
 
	 4.
 	  PURCHASE PRICE

 
	  
 	  
 
	  4.1
 	  The Purchaser shall pay the Deposit to the Stakeholder on or before the date of this Agreement.
 

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	  4.2
 	  The Purchaser must pay the Balance Purchase Price on the Date for Completion.
 
	  
 	  
 
	  4.3
 	  Payment or tender of any moneys payable under this Agreement by the Purchaser to the Vendor shall be made by telegraphic transfer (into an account or accounts
designated by the payee) of cleared funds which are confirmed as cleared by the payee’s bank, or by bank cheque drawn by a bank carrying on the business of banking in Queensland under the laws of the Commonwealth of Australia or the State of
Queensland and any such payment or tender shall be good and sufficient payment or tender of any moneys payable under this Agreement.
 
	  
 	  
 
	  
 	  
 
	 5.
 	  INVESTMENT OF DEPOSIT

 
	  
 	  
 
	  
 	  Intentionally deleted.
 
	  
 	  
 
	  
 	  
 
	  6.
 	 
LEASE
 
	  
 	  
 
	  6.1
 	  The Land is sold subject to the Lease.
 
	  
 	  
 
	  6.2
 	  Promptly after the date of this Agreement, the Vendor’s solicitors shall make available to the Purchaser 3 copies of the Lease for signing purposes.

	  
 	  
 
	 6.3
 	  The Purchaser shall promptly execute the Lease and return it to the Vendor’s Solicitors within seven (7) days of receipt.
 
	  
 	  
 
	  6.4
 	  The Vendor shall promptly execute and, at its expense, stamp the Lease.
 
	  
 	  
 
	  6.5
 	  The Purchaser shall obtain the unconditional written consent to the terms of the Lease from its incoming Mortgagee (if any) and shall deliver a copy of that consent to
the Vendor’s Solicitors on or before the Date for Completion.  The Vendor shall not be required to sign any Deed or Covenant in favour of the Purchaser’s incoming Mortgagee.
 
	  
 	  
 
	  6.6
 	  The Purchaser shall, immediately following Completion, register the Lease (after the Transfer in its favour and its Mortgage to the incoming Mortgagee) and deliver the
Vendor’s (lessee’s) copy to it.  The registration fee shall be paid by the Vendor by way of an adjustment in favour of the Purchaser on Completion.
 
	  
 	  
 
	 6.7
 	  For the purposes of the Retail Shop Leases Act 1994 (Qld) the parties agree that:-
 
	  
 	  
 
	  
 	  (a)
 	  The Vendor shall be deemed to have been given a copy of the draft Lease in Schedule 2 and the Disclosure Statement in Schedule 3, on the date of this Agreement;
and
 
	  
 	  
 	  
 
	  
 	  (b)
 	  The Vendor shall be deemed to have entered into the Lease as lessee on the Date for Completion.
 
	  
 	  
 	  
 
	  6.8
 	  The Purchaser acknowledges that the Vendor will be required to grant a mortgage over the Lease in favour of Westpac Banking Corporation.  As part of those
arrangements, Westpac Banking Corporation will require the Purchaser to sign the Permit to Enter.  The Purchaser agrees to sign the Permit to Enter after it is made available by the Vendor’s Solicitors.  No amendment to the format of
the Permit to Enter will be made by the Purchaser, and the Vendor shall not be required to pay any legal costs or other 
 

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 	  expenses relative to the signing and return of that document by the Purchaser to the Vendor’s Solicitors, whether at or prior to Completion.
 
	  
 	  
 
	  
 	  
 
	  7.
 	 
COMPLETION
 
	  
 	  
 
	  7.1
 	  In exchange for payment of the Purchase Price by the Purchaser to the Vendor in accordance with Clause 4 and the performance and observance by the Purchaser of the
balance of its obligations under this Agreement, the events set out in Clauses 7.3 and 7.4 shall occur.
 
	  
 	  
 
	  7.2
 	  Completion shall be effected on the Date for Completion at such time between 9:00am and 5:00pm at such place in Brisbane as may be nominated by the Vendor’s
Solicitors by notice in writing to the Purchaser’s Solicitors which may be given at any time prior to the Date for Completion.  In the absence of such nomination, Completion shall be effected at the office of the Vendor’s Solicitors
at 3:00pm on the Date for Completion.
 
	  
 	  
 
	 7.3
 	  On the Date for Completion the Vendor shall:-
 
	  
 	  
 
	  
 	  
 
	  
 	  (a)
 	  deliver to the Purchaser an executed Transfer of the Land in favour of the Purchaser capable of immediate registration after the payment of stamp duty;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  deliver to the Purchaser a completed Form 24 for the Transfer;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  deliver to the Purchaser any instruments of title for the Land required to register the Transfer;
 
	  
 	  
 	  
 
	  
 	 (d)
 	  deliver to the Purchaser the executed, stamped but unregistered Lease;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  deliver to the Purchaser all plans, drawings and documents in the possession or control of the Vendor which the Purchaser would reasonably require to enable the Purchaser to
manage the Land; and
 
	  
 	  
 	  
 
	  
 	  (f)
 	  deliver to the Purchaser all other instruments (which shall be duly stamped) in the possession or control of the Vendor evidencing estates and interests affecting the Land and
which are exclusive to the Land.
 
	  
 	  
 
	  
 	 The Transfer and Form 24 shall be prepared by and at the expense of the Purchaser and delivered to the Vendor’s Solicitors within a reasonable time prior to
Completion to permit execution of the same by the Vendor.
 
	  
 	  
 
	  7.4
 	  On (or before) the Date for Completion, the Purchaser shall deliver to the Vendor’s Solicitors, the signed Permit to Enter.
 
	  
 	  
 
	  7.5
 	  If, on Completion, the Land is subject to any mortgages, charges or encumbrances then the Purchaser will accept unstamped but duly executed Releases or partial
Releases of such mortgages, charges or encumbrances and a stamp duty declaration Form G (if applicable) and to obtain those releases the Vendor may apply the whole or any part of the moneys paid by the Purchaser.
 
				

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	 8.
 	 
TITLE
 
	  
 	  
 
	  8.1
 	  The title of the Vendor to the Land will as at the Date for Completion be under the Land Title Act. The Purchaser shall take title to the Land subject to that Act and
subject to all notifications, easements and restrictions (other than any mortgage) now noted on the Certificate of Title for the Land.
 
	  
 	  
 
	  
 	  
 
	  9.
 	  ERRORS AND MISDESCRIPTIONS

 
	  
 	  
 
	  9.1
 	  Any mistake or error in the description of the particulars of the Land shall not annul this Agreement but (unless the party’s remedies are limited, excluded or
otherwise dealt with elsewhere in this Agreement) compensation or equivalent shall be given or taken by the relevant party.  Where the parties cannot agree as to the compensation to be made or given as required then such compensation shall be
fixed by an expert to be appointed for that purpose  by the President for the time being of the Queensland Law Society Incorporated at the instance of either party.
 
	  
 	  
 
	  
 	  
 
	 10.
 	 
APPORTIONMENT OF OUTGOINGS
 
	  
 	  
 
	  10.1
 	  Subject to the terms of the Lease, all rates, taxes (other than land tax), assessments, insurance premiums and other outgoings in respect of the Land shall be borne
and paid by the Vendor up until and including the Adjustment Date and the same shall if necessary be apportioned between the Vendor and the Purchaser.
 
	  
 	  
 
	  10.2
 	  Land tax shall be similarly apportioned based on a calculation of the land tax which is payable by the Vendor on a single-holding basis.
 
	  
 	  
 
	  10.3
 	  Unless and until separate assessments of rates, taxes (including land tax assessments) and other outgoings are issued or available in respect of the Land all necessary
adjustments between the parties shall be made on the basis that the Land shall be liable for that proportion thereof levied or paid against the property in respect of which the assessment has issued (which amount shall be calculated proportionately
by reference to the proportion which the area of the Land bears to the area of that property as a whole).
 
	  
 	  
 
	 10.4
 	  Where there is a statutory charge on the Land for land tax at the Date for Completion, then the Purchaser may request that an amount of the Purchase Price be retained
and, when appropriate paid to the Office of State Revenue to obtain a land tax clearance, with such amount to be retained being determined by agreement between the parties by reference to any recommendation of the Commissioner of Land
Tax.
 
	  
 	  
 
	  
 	  
 
	  11.
 	  PURCHASER’S DEFAULT

 
	  
 	  
 
	  11.1
 	  If the Purchaser fails to pay the Deposit, the Balance Purchase Price or any part of the Purchase Price or otherwise fails to comply with any of the terms and
conditions of this Agreement then the Vendor in addition to any other rights which are conferred upon it by this Agreement, at law or equity, may:-
 
	  
 	  
 	  
 
	  
 	 (a)
 	  affirm this Agreement and sue the Purchaser for damages for breach; or
 
				

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 	  (b)
 	  affirm this Agreement and sue the Purchaser for specific performance and damages in addition to or in lieu thereof; or
 
	  
 	  
 	  
 
	  
 	  (c)
 	  terminate this Agreement and declare the Deposit forfeited and/or sue the Purchaser for damages for breach; or
 
	  
 	  
 	  
 
	  
 	 (d)
 	  terminate this Agreement and declare the Deposit  forfeited and at its election may re-sell the Land and any deficiency arising from or incidental to such re-sale and any
cost or expense arising from such re-sale shall be recoverable by the Vendor from the Purchaser as liquidated damages.
 
	  
 	  
 	  
 
	  
 	  
 
	  12.
 	  PURCHASER’S RISK

 
	  
 	  
 
	  12.1
 	  The Land shall remain at the risk of the Vendor at all times and the Vendor shall maintain all insurances required pursuant to the terms of the Lease.
 
	  
 	  
 
	  12.2
 	  On or before the Date for Completion, the Vendor shall provide to the Purchaser Certificates of Currency for all relevant insurances, which Certificates will nominate
the Purchaser and its Mortgagee (if any) to allow coverage for the respective rights and interests of all parties.
 
	  
 	  
 
	  
 	  
 
	 13.
 	 
COSTS
 
	  
 	  
 
	  13.1
 	  The Vendor and the Purchaser shall each pay their own costs of and incidental to the sale and purchase, but all stamp duty on this Agreement and any duplicate of this
Agreement pursuant to the Stamp Act 1894 (Qld) and any duty in respect of the sale and purchase by the Vendor to the Purchaser and all registration fees on the Transfers shall be paid by the Purchaser and if not paid by the Purchaser 
may be paid by the Vendor and recovered from the Purchaser.  The Vendor shall, following execution of the Transfers (if required) and if so requested by the Purchaser and upon payment by the Purchaser of the normal production fee, cause the
Transfers to be produced to the Office of State Revenue for stamping.
 
	  
 	  
 
	  
 	  
 
	 14.
 	  VENDOR’S STATEMENT

 
	  
 	  
 
	  14.1
 	  The Vendor states that, except as disclosed in this Agreement, each of the following statements is accurate at the time the Vendor executes this Agreement:-

	  
 	  
 	  
 
	  
 	  (a)
 	  the Vendor has free and unqualified capacity and power to contract and to complete this Agreement;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  the Vendor is not under any legal disability which affects the Vendor’s capacity to contract and to complete this Agreement.
 
	  
 	  
 	  
 
	 14.2
 	  If a statement contained in Clause 14.1 is not accurate then the Purchaser may at any time prior to the Date for Completion terminate this Agreement by notice in
writing to the Vendor.
 
	  
 	  
 
	  14.3
 	  If this Contract is terminated pursuant to Clause 14.2 then the Deposit and other moneys paid under this Agreement shall be refunded to the Purchaser by the
Stakeholder and the 
 
				

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 	  Vendor shall be liable by way of damages as compensation for the loss suffered by the Purchaser in such sum as at the time this Agreement was made was reasonably
foreseeable as the loss liable to result, and which does result from a termination of this Contract due to a statement contained in Clause 14.1 not being accurate.
 
	  
 	  
 
	  
 	  
 
	 15.
 	  TIME OF THE ESSENCE

 
	  
 	  
 
	  15.1
 	  Time shall in all cases and in every respect be deemed to be of the essence of this Agreement.
 
	  
 	  
 
	  
 	  
 
	  16.
 	 
NOTICES
 
	  
 	  
 
	  16.1
 	  Any notice required or permitted or desired to be given by either party to the other pursuant to this Agreement must be in writing and may be given by that party or
its solicitor.  Any such notice may be delivered to or forwarded by prepaid post to the person intended to receive the notice at its address shown in this Agreement or such other address as may have been notified in writing for that purpose or
at the usual business or residential address of that party or solicitor.  Any notice sent by post shall be deemed to have been given or delivered on the second Business Day after the notice was posted.  Any notice may be sent by facsimile
transmission and shall in that case be deemed to have been received after completion of the transmission of such notice by the party for whose benefit it was given or sent.  In addition any notice in writing may be given or document delivered
in the manner prescribed in Section 257 of the Property Law Act.  For the purposes of this Agreement any notice or advice given by a party’s solicitor shall be deemed to have been given with the authority of that party.

	  
 	  
 
	  
 	  
 
	 17.
 	  PROPERTY ADVERSELY AFFECTED

 
	  
 	  
 
	  17.1
 	  If it is established that at the date of this Agreement:-
 
	  
 	  
 	  
 
	  
 	  (a)
 	  the access to the Land is other than by way of an adjoining road dedicated for public use as a road or by way of a registered easement to a road dedicated for public
use;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  the Land was affected by a proposal of any competent authority for the re-alignment, widening, re-siting or altering of the then level or direction of any road or railway abutting
the Land;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  any electricity, telephone, water supply, sewerage or drainage service to the Land which passes through other land is not protected by a registered easement or a statutory
authority;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  there is current in respect of the whole or part of the Land, a notice to treat or notice of intention to resume issued by a competent authority;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  the Land is dedicated as a protected area of any class mentioned in Section 14 of the Nature Conservation Act 1992 or is affected by a conservation agreement or
conservation plan pursuant to that Act;
 
				

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 	  (f)
 	  the Land is entered on the Heritage Register or is the subject of a stop order, restoration order, or non-development order, or is in a declared protected area or in a restricted
zone pursuant to the Queensland Heritage Act 1992;
 
	  
 	  
 	  
 
	  
 	  (g)
 	  the Land is entered on the Contaminated Sites Register as a probable, confirmed or restricted site pursuant to the Contaminated Land Act 1991 or has ever been utilised for
any of the purposes listed as prescribed purposes in Schedule 1 of the Contaminated Land Regulation 1991 and the Land is not a released or a former site;
 
	  
 	  
 	  
 
	  
 	  (h)
 	  there exists any claim for an interest in the Land by any Australian Aboriginal people pursuant to the Aboriginal Land Act 1991, the Native Title Act 1993
(Cwth) or the Native Title (Queensland) Act 1993; or
 
	  
 	  
 	  
 
	  
 	 (i)
 	  the Land is included in the World Heritage List compiled under the Convention for the Protection of World’s Cultural and Natural Heritage 1972;
 
	  
 	  
 	  
 
	  
 	  and any such facts are not disclosed in this Agreement the Purchaser may by notice in writing to the Vendor given on or before the Date for Completion terminate this
Agreement in which event the Stakeholder shall refund the Deposit to the Purchaser.
 
	  
 	  
 
	  17.2
 	  The Vendor authorises the Purchaser or the Purchaser’s Solicitor to inspect all records relating to the Land held by the Governmental Agency maintaining any such
records and will if requested by the Purchaser sign an appropriate authority to the Governmental Agency for the purposes of this Clause 17.
 
	  
 	  
 
	  
 	  
 
	 18.
 	  SURVEY & INSPECTION

 
	  
 	  
 
	  18.1
 	  The Purchaser shall be entitled to conduct a survey of the Land to ascertain the boundaries and area of the Land and to establish the location of structures purporting
to be on the Land or on adjoining land.
 
	  
 	  
 
	  18.2
 	  If there is any immaterial error in the boundaries or area of the Land or any immaterial encroachment, the Purchaser shall not be entitled to terminate this Agreement
but shall be entitled to such compensation (if demanded in writing on or before the Date for Completion) as the case may require.  The Purchaser shall not be entitled to delay Completion or to withhold any part of the Purchase Price by reason
of any such claim for compensation.
 
	  
 	  
 
	  18.3
 	  If there is any material error in the boundaries or area of the Land or any material encroachment, the Purchaser shall be entitled to elect by notice in writing to the
Vendor given on or before the Date for Completion either:-
 
	  
 	  
 	  
 
	  
 	 (a)
 	  to terminate this Agreement in which event the Stakeholder shall refund the Deposit to the Purchaser; or
 
	  
 	  
 	  
 
	  
 	  (b)
 	  to complete this Agreement with compensation, in which event the Purchaser shall be entitled to such compensation as the case may require and shall not be entitled to delay
Completion or to withhold any part of the Purchase Price by reason of  any such claim for compensation.
 

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	  19.
 	  VENDOR’S F F & E

 
	  
 	  
 
	  19.1
 	  The Vendor shall retain ownership of the Vendor’s F F & E.
 
	  
 	  
 
	  
 	  
 
	 20.
 	  JOINT AND SEVERAL LIABILITY

 
	  
 	  
 
	  20.1
 	  Any covenant or agreement on the part of two or more persons shall be deemed to bind them jointly and each of them severally.
 
	  
 	  
 
	  
 	  
 
	  21.
 	  ENTIRE AGREEMENT

 
	  
 	  
 
	  21.1
 	  This Agreement constitutes the full and complete understanding between the parties with respect to the subject matter of this Agreement.  There is no other oral
understanding, agreement, warranty or representation whether expressed or implied in any way extending, defining or otherwise relating to the provisions of this Agreement or binding on the parties with respect to any of the matters to which the
terms of this Agreement relate.
 
	  
 	  
 
	 21.2
 	  Each of the parties covenants and irrevocably acknowledges that it has not been induced to enter into this Agreement by any statement, warranty, representation, understanding,
act, omission, fact, matter, thing or conduct by or on behalf of any person including the other party, other than as expressly recorded in this Agreement.
 
	  
 	  
 
	  21.3
 	  The provisions of Clauses 21.1 and 21.2 shall operate and remain in full force and effect, except in the case of fraud by another party to this Agreement.  No other fact,
matter or circumstance including breach of the provisions of Part 5 of the Trade Practices Act by a party to this Agreement shall interfere with or any way derogate from the operation and effect of Clauses 21.1 and 21.2.
 
	  
 	  
 
	  
 	  
 
	  22.
 	 
GOVERNING LAW
 
	  
 	  
 
	 22.1
 	  This Agreement shall be governed by and construed in accordance with the law of Queensland and each of the parties submits to the non-exclusive jurisdiction of the Queensland
Courts.
 
	  
 	  
 
	  
 	  
 
	  23.
 	 
NO MERGER
 
	  
 	  
 
	  23.1
 	  The representations, warranties, undertakings and covenants given by the parties which are expressed in this Agreement to continue beyond Completion shall not merge on
Completion.
 
	  
 	  
 
	  
 	  
 
	  24.
 	  PERFORMANCE ON BUSINESS DAYS

 

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	  24.1
 	  Except where the Vendor and the Purchaser otherwise agree, where the Date for Completion falls on a day which is not a Business Day, or any other obligation is to be
observed or performed on or before a certain day, or within a certain period, and that date or certain day or the last day of that period is not a Business Day then (as the case may require);
 
	  
 	  
 	  
 
	  
 	  (a)
 	  the Date for Completion;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  that certain day; or
 
	  
 	  
 	  
 
	  
 	  (c)
 	  the last day of that period
 
	  
 	  
 	  
 
	  
 	 shall be deemed to be the next following Business Day.
 
	  
 	  
 
	  
 	  
 
	  25.
 	 
FURTHER ASSURANCES
 
	  
 	  
 
	  25.1
 	  Subject to compliance by the Purchaser with its obligations under this Agreement, the Vendor shall, as required, do all acts and execute all necessary documents and
paper writings for the purpose of completing the sale and ensuring that the Purchaser obtains a good and valid title to the Land, but all transfer documents shall be prepared by and at the expense of the Purchaser and delivered to the Vendor within
a reasonable time prior to the Date for Completion.
 
	  
 	  
 
	  
 	  
 
	 26.
 	 
AMENDMENTS
 
	  
 	  
 
	  26.1
 	  Subject to Clause 26.2 no modification or alteration of this Agreement shall be valid or binding upon any party unless made in writing and duly executed or signed on
behalf of such party under its seal or by its officers or representatives or attorneys or, in the case of an individual, by such party under his hand.
 
	  
 	  
 
	  26.2
 	  The Vendor and the Purchaser each acknowledge and agree that any date stipulated in this Agreement for the fulfillment of any condition or the performance of any act
may be modified or varied by an exchange of written correspondence specifying such modified or varied date between the Vendor’s Solicitors and the Purchaser’s Solicitors, and any such modification or variation shall be deemed to have been
made with the authority of each party.
 
	  
 	  
 
	  
 	  
 
	 27.
 	  FOREIGN ACQUISITIONS AND TAKEOVERS ACT

 
	  
 	  
 
	  27.1
 	  The Purchaser represents and warrants either that:-
 
	  
 	  
 	  
 
	  
 	  (a)
 	  the Purchaser has the written approval to the transactions contained in this Agreement from the Australian Treasury under the provisions of the Foreign Acquisitions and
Takeovers Act; or
 
	  
 	  
 	  
 
	  
 	  (b)
 	  the Purchaser is ordinarily resident in Australia within the meaning of the Foreign Acquisitions and Takeovers Act and the provisions of Section 21A, 25 and 26A of the
Foreign Acquisitions and Takeovers Act do not apply to the Purchaser.
 
	  
 	  
 
				

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 -12-

	  27.2
 	  If there is a breach of the representation and warranty in Clause 27.1, the Purchaser hereby indemnifies the Vendor from and against any loss, damage, penalty, fine or
cost which may be suffered or incurred by the Vendor as a consequence.
 
	  
 	  
 
	  27.3
 	  The warranty and indemnity in this Clause 27 shall not merge on Completion.
 
	  
 	  
 
	  
 	  
 
	  28.
 	  COUNTERPARTS AND FACSIMILE

 
	  
 	  
 
	 28.1
 	  This Agreement may be executed in counterparts.  Each counterpart constitutes one and the same document.
 
	  
 	  
 
	  28.2
 	  Evidence of this Agreement may be provided by facsimile on the condition that, when providing the facsimile copy, the sending party undertakes to courier the original
document by overnight courier to the recipient.
 
	  
 	  
 
	  
 	  
 
	  29.
 	 
GUARANTEE
 
	  
 	  
 
	  29.1
 	  In the event that the Purchaser is a company whether acting in the capacity as trustee or otherwise (other than a public company listed on any board of any associated
Australian Stock Exchange) then the directors of that company at the time this agreement is entered into shall be deemed by reason of the execution of this Agreement by or on behalf of the Purchaser company to have personally guaranteed the
performance by that company of its obligations under this Agreement to the intent that should the Purchaser company fail or refuse to meet its obligations under this Agreement then the directors and each of them jointly and severally shall be liable
to perform the said obligations and to be sued in their own names for performance thereof and/or for damages as if they were (severally and jointly) the Purchaser under this Agreement.
 
	  
 	  
 
	  
 	  
 
	 30.
 	 
FINANCE
 
	  
 	  
 
	  30.1
 	  This Agreement is conditional on the Purchaser obtaining approval of a loan for an amount sufficient to enable it to complete this Agreement from a financial
institution by the Finance Date on terms satisfactory to the Purchaser.  The Purchaser must take all reasonable steps to obtain approval.
 
	  
 	  
 
	  30.2
 	  The Purchaser must give notice to the Vendor that:-
 
	  
 	  
 	  
 
	  
 	  (a)
 	  approval has not been obtained by the Finance Date and the Agreement is terminated; or
 
	  
 	  
 	  
 
	  
 	 (b)
 	  the finance condition has been either satisfied or waived by the Purchaser.
 
	  
 	  
 	  
 
	  
 	  
 
	  30.3
 	  The Vendor may terminate this Agreement by notice to the Purchaser if notice is not given under Clause 30.2 by 5:00pm on the Finance Date.  This is the
Vendor’s only remedy for the Purchaser’s failure to give notice.
 
	  
 	  
 
	  30.4
 	  The Vendor’s right under Clause 30.3 is subject to the Purchaser’s continuing right to terminate this Agreement under Clause 30.2(a).
 

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  -13-

	 31.
 	  FURTHER INVESTIGATIONS BY PURCHASER

 
	  
 	  
 
	  31.1
 	  This Agreement is also subject to and conditional upon the Purchaser satisfying itself by the Finance Date:-
 
	  
 	  
 
	  
 	  (a)
 	  as to the provisions of any easement registered on the title to the Land;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  as to the boundaries of the Land and as to any encroachments;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  as to the terms of the release of any charge registered over the Vendor at the Australian Securities and Investment Commission so far as such release may affect the
land;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  as to the results of its searches of the Environmental Management Register and of the Contaminated Land Register;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  as to the results of its land tax search;
 
	  
 	  
 	  
 
	  
 	  (f)
 	  as to the results of its searches with the local authority concerning town planning and developments, building, health, plumbing, sewerage and drainage, rates, resumptions or
realignments, outstanding charges, flood and access details (road maintenance) (if applicable);
 
	  
 	  
 	  
 
	  
 	 (g)
 	  as to the results of its Main Roads search;
 
	  
 	  
 	  
 
	  
 	  (h)
 	  as to the results of an inspection of the air conditioning equipment servicing the buildings erected on the land by AHW (Queensland) Pty Ltd, Engineering Consultants;

	  
 	  
 	  
 
	  
 	  (i)
 	  as to the terms of the Certificates of Currency of Insurance to be provided by the Lessee to the Lessor pursuant to the provisions of Clause 7.2 of the Lease.
 
	  
 	  
 	  
 
	  31.2
 	  If the Purchaser does not obtain satisfactory search results by the Finance Date, or such additional time as may be agreed by the parties, the Purchaser may give
notice of termination of this Contract to the Vendor.  In that event, the Stakeholder will account to the Purchaser for the Deposit within 3 working days of receiving a copy of the relevant notice of termination.
 
	  
 	  
 
	  
 	  
 
	 32.
 	 
DEPRECIATION SCHEDULE
 
	  
 	  
 
	  32.1
 	  On or before the date which is 3 business days prior to the Date for Completion, the Vendor must provide to the Purchaser details of the construction and fitout costs
of the Premises (“the Schedule”) sufficient to enable the Purchaser properly to calculate the depreciation allowable to the Purchaser under Division 43 of the Income Tax Assessment Act 1997 (Cth), such Schedule to be satisfactory to
the Purchaser’s accountant.
 
	  
 	  
 
	  32.2
 	  In the event that the Vendor fails to provide the Schedule to the Purchaser in accordance with this Clause 32 the Purchaser may terminate this Agreement by written
notice to the Vendor in which event all moneys previously paid by the Purchaser to the 
 

Table of Contents

 -14-

	  
 	  Vendor or to the Stakeholder as the case may be must be refunded to the Purchaser by the Vendor or Stakeholder as the case may be.
 

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  -15-

	  THIS AGREEMENT has been signed on the date specified at the commencement of this Agreement.
 	  
 
	  
 	  
 
	  
 	  
 
	  THE COMMON SEAL of SIZZLER
 	  )
 	 
 
	  AUSTRALIA PTY LTD
 	  )
 	  Director
 
	 ACN 010 060 876 is affixed as required
 	  )
 	  
 
	  by the terms of its Constitution:-
 	  )
 	  
 
	  
 	  )
 	  
 
	  
 	  )
 	 
 
	  
 	  
 	  Director/Secretary
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	 THE COMMON SEAL of  CRANPORT
 	  )
 	 
 
	  PTY LTD ACN 010 271 271 as Trustee for
 	  )
 	  Director
 
	  THE THIE FAMILY TRUST is affixed as
 	  )
 	  
 
	  required by the terms of its Constitution:-
 	  )
 	  
 
	  
 	  )
 	  
 
	  
 	  )
 	 
 
	  
 	  
 	  Director/Secretary
 
				

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 -16-
 
 SCHEDULE 1 – LAND

	  Address:
 	  Sizzler Ipswich – Cnr Brisbane Road & Barrett Street, Ipswich
 
	  
 	  
 
	  Description:
 	  - Lot -
 	  1
 
	  
 	  - Plan -
 	  RP 209332
 
	  
 	  - Title Reference -
 	  16965059
 
	  
 	  - County -
 	  Stanley
 
	  
 	 - Parish -
 	  Ipswich
 
	  
 	  
 
	  Encumbrances 
 	  (if any)
 
	  
 	  
 
	  Easement No 602424322
 	  Drainage Easement to the Council of the City of Ipswich
 
				

Table of Contents

  -17-
 
 SCHEDULE 2 - LEASE

Table of Contents

  -18-
 
 SCHEDULE 3 – DISCLOSURE STATEMENT

Table of Contents

  -19-
 
 SCHEDULE 4 – VENDOR’S F F & E

	  
 	 •
 	  Auto urn
 
	  
 	  •
 	  Chip freezer
 
	  
 	  •
 	  Chip fryers and timers
 
	  
 	  •
 	  Cold room and store room shelving
 
	  
 	  •
 	  Corporate signage and menu boards
 
	  
 	  •
 	  Counter cache
 
	  
 	  •
 	  Counters and associated refrigeration
 
	  
 	 •
 	  Dishwasher and hoodwork
 
	  
 	  •
 	  Display cabinets
 
	  
 	  •
 	  Electric range
 
	  
 	  •
 	  Facsimile
 
	  
 	  •
 	  Finishing and holding cabinet
 
	  
 	  •
 	  Fire extinguishers
 
	  
 	  •
 	  Freestanding miscellaneous electrical equipment
 
	  
 	 •
 	  Furniture (loose) and screens
 
	  
 	  •
 	  Glass washer
 
	  
 	  •
 	  Grills and cook line equipment
 
	  
 	  •
 	  Hand dryers
 
	  
 	  •
 	  Icemaker
 
	  
 	  •
 	  Insect exterminators
 
	  
 	  •
 	  Internal plants
 
	  
 	 •
 	  Kitchen stainless steel and benches
 
	  
 	  •
 	  Mechanical ventilation
 
	  
 	  •
 	  Microwaves
 
	  
 	  •
 	  Miscellaneous free standing refrigeration
 
	  
 	  •
 	  Mixer and slicer
 
	  
 	  •
 	  Music system
 
	  
 	  •
 	  Office computer equipment
 
	  
 	 •
 	  Ovens and complementary accessories (trolley)
 
	  
 	  •
 	  Point of sale equipment
 
	  
 	  •
 	  Post mix equipment
 
	  
 	  •
 	  Poster holders
 
	  
 	  •
 	  Prints
 
	  
 	  •
 	  Safe
 
	  
 	  •
 	  Salad and food bars
 
	  
 	 •
 	  Security system
 
	  
 	  •
 	  Shortening tender
 
	  
 	  •
 	  Small wares
 
	  
 	  •
 	  Steam kettles
 
	  
 	  •
 	  Steamers
 
	  
 	  •
 	  Time clock
 
	  
 	  •
 	  Equipment which replaces any aforementioned item of equipment during the Term
 

 
SCHEDULE 5 – PERMIT TO ENTER

Table of Contents

  -20-
  

Table of Contents

   TABLE OF CONTENTS

	  CLAUSE
 	  PAGE
 
	 
 	  
 	 
 
	  
 	   
 	   
 
	  1.
 	  
DEFINITIONS
 	  1
 
	  
 	  
 	  
 
	 2.
 	  
INTERPRETATION
 	  3
 
	  
 	  
 	  
 
	  3.
 	  
SALE AND PURCHASE
 	  3
 
	  
 	  
 	  
 
	  4.
 	  
PURCHASE PRICE
 	  3
 
	  
 	  
 	  
 
	  5.
 	  
INVESTMENT OF DEPOSIT
 	  4
 
	  
 	  
 	  
 
	 6.
 	  
LEASE
 	  4
 
	  
 	  
 	  
 
	  7.
 	  
COMPLETION
 	  5
 
	  
 	  
 	  
 
	  8.
 	  
TITLE
 	  6
 
	  
 	  
 	  
 
	  9.
 	  
ERRORS AND MISDESCRIPTIONS
 	  6
 
	  
 	  
 	  
 
	 10.
 	  
APPORTIONMENT OF OUTGOINGS
 	  6
 
	  
 	  
 	  
 
	  11.
 	  
PURCHASER’S DEFAULT
 	  6
 
	  
 	  
 	  
 
	  12.
 	  
PURCHASER’S RISK
 	  7
 
	  
 	  
 	  
 
	 13.
 	  
COSTS
 	  7
 
	  
 	  
 	  
 
	  14.
 	  
VENDOR’S STATEMENT
 	  7
 
	  
 	  
 	  
 
	  15.
 	  
TIME OF THE ESSENCE
 	  8
 
	  
 	  
 	  
 
	  16.
 	  
NOTICES
 	  8
 
	  
 	  
 	  
 
	 17.
 	  
PROPERTY ADVERSELY AFFECTED
 	  8
 
	  
 	  
 	  
 
	  18.
 	  
SURVEY & INSPECTION
 	  9
 
	  
 	  
 	  
 
	  19.
 	  
VENDOR’S F F & E
 	  10
 
	  
 	  
 	  
 
	 20.
 	  
JOINT AND SEVERAL LIABILITY
 	  10
 
	  
 	  
 	  
 
	  21.
 	  
ENTIRE AGREEMENT
 	  10
 
	  
 	  
 	  
 
	  22.
 	  
GOVERNING LAW
 	  10
 
	  
 	  
 	  
 
	  23.
 	  
NO MERGER
 	  10
 
	  
 	  
 	  
 
	 24.
 	  
PERFORMANCE ON BUSINESS DAYS
 	  10
 
	  
 	  
 	  
 
	  25.
 	  
FURTHER ASSURANCES
 	  11
 
	  
 	  
 	  
 
	  26.
 	  
AMENDMENTS
 	  11
 
				

Table of Contents

	 27.
 	  
FOREIGN ACQUISITIONS AND TAKEOVERS ACT
 	  11
 
	  
 	  
 	  
 
	  28.
 	  
COUNTERPARTS AND FACSIMILE
 	  12
 
	  
 	  
 	  
 
	  29.
 	  
GUARANTEE
 	  12
 
	  
 	  
 	  
 
	  30.
 	  
FINANCE
 	  12
 
	  
 	  
 	  
 
	 31.
 	  
FURTHER INVESTIGATIONS BY PURCHASER
 	  13
 
	  
 	  
 	  
 
	  32.
 	  
DEPRECIATION SCHEDULE
 	  13
 
	  
 	  
 	  
 
	  
SCHEDULE 1 – LAND
 	  16
 
	  
 	  
 
	  
SCHEDULE 2 - LEASE
 	  17
 
	  
 	  
 
	 
SCHEDULE 3 – DISCLOSURE STATEMENT
 	  18
 
	  
 	  
 
	  
SCHEDULE 4 – VENDOR’S F F & E
 	  19
 
	  
 	  
 
	  
SCHEDULE 5 – PERMIT TO ENTER
 	  19
 

Table of Contents

  BETWEEN
  SIZZLER AUSTRALIA PTY LTD ACN 010 060 876
(“Vendor”)
  AND
  CRANPORT PTY LTD ACN 010 271 271
 as Trustee for THE THIE FAMILY TRUST
(“Purchaser”)
  PROPERTY ACQUISITION AGREEMENT
 SIZZLER IPSWICH
 HoganBesleyBoyd
Second
Floor 169 Mary Street (Edward Street Entrance) Brisbane
GPO Box 458 Brisbane Queensland 4001
Telephone  (07) 3229 4408 • Facsimile  (07) 3229 0590

Table of Contents

	  FORM 7 Version 3
 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1994
 	  LEASE/SUB LEASE
 	  Page 1 of 33
 
	  Dealing No.
 	  Stamp Duty Imprint
 
	  
 	  
 
	  1.
 	  Lessor
 	  Lodger Name, address & phone number Lodger Code
 
	  
 	  
 	  
 
	  
 	 Cranport Pty Ltd ACN 010 271 271 atf The Thie Family Trust under instrument number 701678780
 	  
 
	  
 	  
 
	  
 	  
 	  Telephone:
 	  
 
	  
 	  
 	  Facsimile:
 	  
 
	 
 
	  2.
 	  Description of Lot
 	  County
 	  Parish
 	  Title Reference
 
	  
 	  
 	  
 	  
 	  
 
	  
 	 Lot 1 on RP 209332 
 	  Stanley
 	  Ipswich
 	  16965059
 
	 
 
	  
 	  
 	  
 	  
 	  
 
	  3.
 	  Lessee     Given names
 	  Surname/Company name and number
 	  (include tenancy if more than one)
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	 Sizzler Australia Pty Ltd ACN 010 060 876
 	  
 
	 
 
	  4.
 	  Interest being leased
 
	  
 	  
 
	  
 	  Fee Simple
 
	 
 
	  5.
 	  Description of premises being leased
 
	  
 	  
 
	  
 	  The whole of the Land
 
	 
 
	  
 	  
 
	 6.
 	  Term of lease
 	  7.
 	  Rental/Consideration
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  Commencement date:           03.05.2000
 	  
 	  $99,996.00
 	  
 
	  
 	  *Expiry date:
                         02.05.2008
 	  
 	  
 	  
 
	  
 	  *not required for leases in a retirement village
 	  
 	  
 
	 
 
	  
 	  
 
	 8.
 	  Grant/Execution 
 
	  
 
	  The Lessor leases the premises described in item 5 to the lessee for the term stated in item 6 subject to the covenants and conditions contained in the attached
schedule and acknowledges the debt or liability secured by this lease.
 
	  
 	  
 	  
 	  
 
	  Witnessing Officer
 	  Execution Date
 	  
 	  Lessor’s Signature
 
	  
 	  
 	  
 	  
 
	 
 	   signature
 	  /
 	  /
 	  See Enlarged Panel
 	  
 
	  
 	  
 	   
 	  
 	  
 	  
 
	 
 	    full name
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	 
 	    qualification
 	  
 	  
 	  
 
	 as per Schedule 1 of Land Title Act 1994 (eg Legal Practitioner, JP, C.Dec)
 
	 
 
	  9.
 	  Acceptance
 
	  
 
	  The Lessee accepts the lease and acknowledges the amount payable or other considerations for the lease.
 
	  
 
	  Witnessing Officer
 	  Execution Date
 	  
 	  Lessee’s Signature
 
	  
 	  
 	  
 	  
 
	 
 	    signature
 	  /
 	  /
 	  See Enlarged Panel
 	  
 
	  
 	  
 	   
 	  
 	  
 	  
 
	 
 	   full name
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	 
 	    qualification
 	  
 	  
 	  
 
	  as per Schedule 1 of Land Title Act 1994 (eg Legal Practitioner, JP, C.Dec)
 
	 
 
																					

Table of Contents

	 FORM 20 Version 1
 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
 	  ENLARGED PANEL
 	  Page 2 of 33
 
	 
 
	   
 
	  Title Reference:  16965059
 
	   
 
	   
 
	  8.
 	  Grant/Execution
 	  
 
	  
 	  
 	  
 	  
 
	 The Lessor leases the premises described in item 5 to the lessee for the term stated in item 6 subject to the covenants and conditions contained in the attached
schedule and acknowledges the debt or liability secured by this lease.
 
	  
 	  
 	  
 	  
 
	  Witnessing Officer
 	  Execution Date
 	  
 	  Lessor’s Signature
 
	  
 	  
 	  
 
	 
 	    signature
 	  /
 	  /2000
 	 
 
	  
 	  
 	   
 	  
 	 Director
 
	 
 	    full name
 	  
 	  
 
	  
 	  
 	  
 	  
 
	 
 	    qualification
 	  
 	 
 
	  as per Schedule 1 of Land Title Act 1994 (eg Legal Practitioner, JP, C.Dec)
 	  Director/Secretary
 
	 
 
	 9.
 	  Acceptance
 	  
 
	  
 	  
 	  
 	  
 
	  The Lessee accepts the lease and acknowledges the amount payable or other considerations for the lease.
 
	  
 	  
 	  
 	  
 
	  Witnessing Officer
 	  Execution Date
 	  
 	  Lessee’s Signature
 
	  
 	  
 	  
 
	  
 	  
 	 
 
	 
 	   signature
 	  /
 	  /2000
 	  Director
 
	  
 	  
 	   
 	  
 	  
 
	 
 	    full name
 	  
 	  
 
	  
 	  
 	  
 	  
 
	 
 	    qualification
 	  
 	 
 
	 as per Schedule 1 of Land Title Act 1994 (eg Legal Practitioner, JP, C.Dec)
 	 Director/Secretary
 
	 
 
										

Table of Contents

	  FORM 20 Version 1
 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
 	  SCHEDULE
 	  Page 3 of 33
 
	 
 
	  
 
	  Title Reference:  16965059
 
	   
 
	  
 
	 1.
 	 
REFERENCE DATA
 
	  
 	  
 
	  ITEM 1
 	  PARTIES
 
	  
 	  
 	  
 
	  
 	  Lessor:
 	  Cranport Pty Ltd ACN 010 271 271
 
	  
 	  
 	  atf The Thie Family Trust
 
	  
 	  
 	  
 
	  
 	  Address for Notices:
 	  Lot 12 Enkleman Road
 
	  
 	  
 	 YATALA  QLD  4207
 
	  
 	  Telephone:
 	  
 
	  
 	  Facsimile:
 	  
 
	  
 	  Solicitors for Lessor:
 	  Birch & Co
 
	  
 	  
 	  PO Box 6089
 
	  
 	  
 	  Upper Mt Gravatt
 
	  
 	  
 	  
 
	  
 	  Lessee:
 	  Sizzler Australia Pty Ltd
 
	  
 	  
 	  
 
	  
 	 Address for Notices
 	  16 Edmondstone Street
 
	  
 	  
 	  NEWMARKET  QLD  4051
 
	  
 	  
 	  
 
	  
 	  Telephone:
 	  3352 0800
 
	  
 	  Facsimile:
 	  3352 0894
 
	  
 	  Solicitors for the Lessee:
 	  Hogan Besley Boyd
 
	  
 	  
 	 GPO Box 458
 
	  
 	  
 	  BRISBANE  QLD  4001
 
	  
 	  
 	  
 
	  ITEM 2
 	  TERM
 	  
 
	  
 	  
 	  
 
	  
 	  Term:
 	  8 years
 
	  
 	  Commencement Date:
 	  03.05.2000
 
	  
 	  Termination Date:
 	  02.05.2008
 
	  
 	  
 	  
 
	 ITEM 3
 	  PREMISES
 	  
 
	  
 	  
 	  
 
	  
 	  Premises:
 	  The whole of the Land including the Sizzler Restaurant building and other improvements constructed on the Land.
 
	  
 	  
 	   
 
	  
 	  Address:
 	  Cnr Brisbane Road and Barrett Street, Ipswich
 
	  
 	  
 	   
 
	  
 	 Real Property Description:
 	  Lot 1 on RP 209332
 
	  
 	  
 	  
 
	  ITEM 4
 	  ANNUAL RENT
 	  
 
	  
 	  
 	  
 
	  
 	  Annual Rent:
 	  $99,996.00
 	  )
 	  Subject to Clauses 3.1 and 3.2
 
	  
 	  Monthly Rent:
 	  $8,333.00
 	  )
 
	  
 	  
 	  
 
	 ITEM 5
 	  ANNUAL RENT REVIEW PROCEDURE
 	  
 
	  
 	  
 	  
 
	  
 	  In accordance with Clause 3.2
 	  
 
								

Table of Contents

	  FORM 20 Version 1
 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
 	  SCHEDULE
 	  Page 4 of 33
 
	 
 
	  
 
	 Title Reference:  16965059
 
	   
 
	  
 
	  ITEM 6
 	  RENT REVIEW DATES
 	  
 
	  
 	  
 	  
 
	  
 	  At the commencement of the second and subsequent Lease Years
 
	  
 	  
 	  
 
	  
 	  Market Review Date:  the first day of the first Lease Year of the Option Term (if exercised)
 
	  
 	  
 	  
 
	 ITEM 7
 	  PERCENTAGE OF OUTGOINGS PAYABLE BY LESSEE
 
	  
 	  
 	  
 
	  
 	  100%
 	  
 
	  
 	  
 	  
 
	  ITEM 8
 	  PERCENTAGE RENT
 	  
 
	  
 	  
 	  
 
	  
 	  5% of Gross Sales in excess of the Percentage Rent Qualification Threshold.
 
	  
 	  
 	  
 
	  
 	  Percentage Rent Qualification Threshold for Year 1:  $2,032,375.00
 
	  
 	  
 
	 ITEM 9
 	  USE OF PREMISES
 	  
 
	  
 	  
 	  
 
	  
 	  Restaurant
 	  
 
	  
 	  
 	  
 
	  ITEM 10
 	  INSURANCE REQUIREMENTS
 	  
 
	  
 	  
 	  
 
	  
 	  As per Clause 7
 	  
 
	  
 	  
 	  
 
	 ITEM 11
 	  FIRST OPTION TO RENEW
 	  
 
	  
 	  
 	  
 
	  
 	  First Option Term:
 	  5 years
 
	  
 	  
 	  
 
	  
 	  Date of Commencement of  First Option Term:
 	  03.05.2008
 
	  
 	  
 	  
 
	  
 	  Date by which First Option
 must be exercised in writing: Three months prior to Termination Date
 
	  
 	  
 	  
 
	 ITEM 12
 	  SECOND OPTION TO RENEW
 	  
 
	  
 	  
 	  
 
	  
 	  Second Option Term:
 	  5 years
 
	  
 	  
 	  
 
	  
 	  Date of Commencement of
 	  
 
	  
 	  
 	  
 
	  
 	  Second Option Term:
 	  03.05.2013
 
	  
 	  
 	  
 
	  
 	 Date by which Second Option
 must be exercised in writing: Three months prior to Termination Date
 
	  
 	  
 	  
 
	  ITEM 13
 	  GUARANTOR
 	  
 
	  
 	  
 	  
 
	  
 	  Collins Foods International Pty Ltd ARBN 009 980 250
 
					

Table of Contents

	  FORM 20 Version 1
 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
 	  SCHEDULE
 	  Page 5 of 33
 
	 
 
	   
 
	 Title Reference : 16965059
 
	   
 
	   
 
	  
 	  
 
	  2.
 	 
DEFINITIONS AND INTERPRETATIONS
 
	  
 	  
 
	  2.1
 	 
Definitions
 
	  
 	  
 
	  
 	  “Annual Rent” is the amount stated in Item 4.
 
	  
 	  
 
	  
 	  “Annual Rent Review Procedure” is set out in Item 5.
 
	  
 	  
 
	  
 	 “Air Conditioning Equipment” means the plant, electrical installations, ductwork and diffusers used for the manufacture and reticulation of conditioned
air throughout the Premises and includes all mechanical ventilation.
 
	  
 	  
 
	  
 	  “Building” means the improvements and structures erected on the Land, including the Air Conditioning Equipment.
 
	  
 	  
 
	  
 	  “Commencement Date” means the date stated in Item 2 as the Commencement Date.
 
	  
 	  
 
	  
 	  “Company” means a company other than a company whose shares are listed on any Australian Stock Exchange.
 
	  
 	  
 
	  
 	 “Consumer Price Index” means the All Groups Index for the city of Brisbane; provided that if the All Groups Index is discontinued or suspended, then
the Lessor may select another index which is the closest to the discontinued or suspended All Groups Index.
 
	  
 	  
 
	  
 	  “Essential Term” means Clauses 3.1, 3.3, 5.1, 7.1 and 10.1.
 
	  
 	  
 
	  
 	  “First Option Term” means the period of the extended lease term referred to in Item 11 and Clause 13.
 
	  
 	  
 
	  
 	  “Guarantor”means the person or persons named in Item 13 and each of their respective successors and assigns.
 
	  
 	  
 
	  
 	  “Gross Sales” means the aggregate of all money and the money value of non-monetary items received or receivable, and any other remuneration for all
goods and services sold or otherwise disposed of on or from the Premises for cash or credit or otherwise by the Lessee or any permitted licensee or concessionaire, without reserve or deduction for bad debts, including but not limited to:-

	  
 	  
 	  
 
	  
 	 (a)
 	  Order(s) which originate from or are accepted at the Premises but delivery or performance is made at or from any place other than the Premises and vice
versa;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Sales made as a result of business obtained away from the Premises by persons operating from or reporting to the Premises;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Mail, telephone, facsimile transmissions or other similar orders received, submitted or completed at or from the Premises;
 
						

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 	  (d)
 	  All sales made or services provided by means of mechanical or other vending devices in the Premises;
 
	  
 	  
 	  
 
	  
 	 (e)
 	  Any sales made or services provided which are the result of transactions originating on the Premises of stock provided but not kept at the Premises;
 
	  
 	  
 	  
 
	  
 	  (f)
 	  Any sale made or services provided which in the normal course of business would or should be credited or attributed to the business effected on the
Premises;
 
	  
 	  
 	  
 
	  
 	  (g)
 	  Any other money and monetary value of non-monetary items received by the Lessee in the course of business in the Premises which are not included or excluded by the
other provisions of this Lease.
 
	  
 	  
 	  
 
	  
 	 Gross Sales do not include:
 
	  
 	  
 	  
 
	  
 	  (a)
 	  The net amount of discounts reasonably and properly allowed to any customer in the usual course of business;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  The amount of losses incurred in the resale or disposal of goods reasonably and properly purchased from customers as trade-ins in the usual course of
business;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  The amount of uncollected credit accounts written off by the Lessee;
 
	  
 	  
 	  
 
	  
 	 (d)
 	  The amount of any cash or credit refund allowed on a sale of goods or services the proceeds of which have previously been included as gross receipts where the
merchandise is returned and the sale cancelled or fees for the services are refunded wholly or partly;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  The amount of any instalment of purchase monies refunded to customers where a layby transaction is cancelled;
 
	  
 	  
 	  
 
	  
 	  (f)
 	  The amount of any purchase, goods and services, sales, receipts or other similar tax imposed upon the purchase price or cost of hire of merchandise or services at the
point of sale or hire;
 
	  
 	  
 	  
 
	  
 	 (g)
 	  The cost of delivery;
 
	  
 	  
 	  
 
	  
 	  (h)
 	  The price of merchandise exchanged between stores of the Lessee made solely for the convenient operation of the business of the Lessee and not for the purpose of
concluding a sale made at or from the Premises;
 
	  
 	  
 	  
 
	  
 	  (i)
 	  The price of merchandise returned to shippers, wholesalers or manufacturers;
 
	  
 	  
 	  
 
	  
 	  (j)
 	  The amount received from the sale of the fixtures and fittings of the Lessee from the Premises; and
 
	  
 	  
 	  
 
	  
 	 (k)
 	  Receipts from lottery sales made on a commission basis other than amounts derived as commission or fees from those sales.
 
						

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 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
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 	 “Gross Sales Certificate” means a Statement of the Lessee’s Gross Sales for a particular period certified by the Lessee.
 
	  
 	  
 
	  
 	  “Land” means the land described in Item 2 of the Form 7.
 
	  
 	  
 
	  
 	  “Lease Year” means each separate year of the Term (including any broken periods).  For the purposes of this Lease, the first Lease Year commences
on the Commencement Date and ends on the following June 30.  Each successive Lease Year commences on July 1 and ends on June 30, apart from the final Lease Year, which ends on the Termination Date.
 
	  
 	  
 
	  
 	  “Lessee” means the Lessee named in Item 3 of the Form 7 together with its executors, administrators and permitted assigns.  Unless inconsistent
with the context, the term includes the Lessee’s employees, agents, customers and invitees.
 
	  
 	  
 
	  
 	 “Lessor” means the Lessor referred to in Item 1 of the Form 7, together with its successors and assigns. Unless inconsistent with the context the term
includes all persons authorised by the Lessor to act on its behalf.
 
	  
 	  
 
	  
 	  “Option Term” means the period of the extended lease term referred to in either Item 11 and/or Item 12 and Clause 13.
 
	  
 	  
 
	  
 	  “Outgoings” means the following expenses which the Lessor shall be entitled to recover from the Lessee:-
 
	  
 	  
 
	  
 	  (a)
 	  rates, levies and other charges imposed by the Local Authority with relation to the occupation of the Land;
 
	  
 	  
 	  
 
	  
 	 (b)
 	  Body Corporate Administrative Levies payable in respect of the Land (if applicable).
 
	  
 	  
 
	  
 	  “Percentage Rent Qualification Threshold” means the amount set out in Item 8, as varied in each subsequent Lease Year by the same proportion as the
rental is varied in accordance with the formulae set out in Clause 3.2.
 
	  
 	  
 
	  
 	  “Premises” means the whole of the Land.
 
	  
 	  
 
	  
 	  “Removable Equipment” includes fixtures, fittings, furniture, plant, equipment, partitions and chattels of all kinds which have been brought into or
on the Premises by the Lessee, including (inter alia):
 
	  
 	  
 	  
 
	  
 	 •
 	  Auto urn
 
	  
 	  •
 	  Chip freezer
 
	  
 	  •
 	  Chip fryers and timers
 
	  
 	  •
 	  Cold room and store room shelving
 
	  
 	  •
 	  Corporate signage and menu boards
 
	  
 	  •
 	  Counter cache
 
	  
 	 •
 	  Counters and associated refrigeration
 
	  
 	  •
 	  Dishwasher and hoodwork
 
						

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 	 •
 	  Display cabinets
 
	  
 	  •
 	  Electric range
 
	  
 	  •
 	  Facsimile
 
	  
 	  •
 	  Finishing and holding cabinet
 
	  
 	  •
 	  Fire extinguishers
 
	  
 	  •
 	  Freestanding miscellaneous electrical equipment
 
	  
 	 •
 	  Furniture (loose) and screens
 
	  
 	  •
 	  Glass washer
 
	  
 	  •
 	  Grills and cook line equipment
 
	  
 	  •
 	  Hand dryers
 
	  
 	  •
 	  Icemaker
 
	  
 	  •
 	  Insect exterminators
 
	  
 	  •
 	  Internal plants
 
	  
 	 •
 	  Kitchen stainless steel and benches
 
	  
 	  •
 	  Microwaves
 
	  
 	  •
 	  Miscellaneous free standing refrigeration
 
	  
 	  •
 	  Mixer and slicer
 
	  
 	  •
 	  Music system
 
	  
 	  •
 	  Office computer equipment
 
	  
 	  •
 	  Ovens and complementary accessories (trolley)
 
	  
 	 •
 	  Point of sale equipment
 
	  
 	  •
 	  Post mix equipment
 
	  
 	  •
 	  Poster holders
 
	  
 	  •
 	  Prints
 
	  
 	  •
 	  Safe
 
	  
 	  •
 	  Salad and food bars
 
	  
 	  •
 	  Security system
 
	  
 	 •
 	  Shortening tender
 
	  
 	  •
 	  Small wares
 
	  
 	  •
 	  Steam kettles
 
	  
 	  •
 	  Steamers
 
	  
 	  •
 	  Time clock
 
	  
 	  •
 	  Equipment which replaces any aforementioned item of equipment during the Term
 
	  
 	  
 	  
 
	  
 	 “Rent” has the same meaning as Annual Rent.
 
	  
 	  
 
	  
 	  “Second Option Term” means the period of the extended lease term referred to in Item 12 and Clause 13.
 
	  
 	  
 
	  
 	  “Stipulated Rate” means the annual interest rate equal to the total of two per centum (2%) and the highest rate from time to time charged by the
Lessor’s bankers to its customers on overdraft accounts in excess of One hundred thousand dollars ($100,000.00).
 
	  
 	  
 
	  
 	  “Termination Date” means the date stated in Item 2 as the Termination Date.
 
	  
 	  
 
	  
 	  “Trading Hours” means the hours of business generally adopted by Sizzler Restaurants operating in the State of Queensland.
 
						

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 	  Title Reference : 16965059
 
	  
 	  
 	   
 
	  
 	  
 	   
 
	 2.2
 	 
Interpretation
 
	  
 	  
 
	  
 	  (a)
 	  A reference to the singular number only includes the plural number and vice versa.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  A reference to any gender includes all genders.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Words denoting individuals include corporations.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  A reference to an Act of Parliament (or any section in an Act) includes any statutory modification or replacement of that Act.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Any provision in this Lease referring to the consent or approval of the Lessor includes the consent or approval of any mortgagee of the Land and any superior
Lessor.  Any consent or approval must be in writing.
 
	  
 	  
 	  
 
	  
 	  (f)
 	  The terms “Parties” or “Party” mean the Lessor and/or the Lessee.
 
	  
 	  
 	  
 
	  
 	  (g)
 	  References to any clause, sub-clause or schedule refers to the corresponding clause, sub-clause or schedule in this Lease.
 
	  
 	  
 	  
 
	  
 	 (h)
 	  The headings or marginal notes in this Lease are included for convenience only and shall not affect the construction of this Lease.
 
	  
 	  
 	  
 
	  
 	  (i)
 	  References in this Lease to an “Item” refer to the corresponding Item number in the Reference Data.
 
	  
 	  
 	  
 
	  
 	  
 
	  3.
 	  RENT

 
	  
 	  
 	  
 
	 3.1
 	 
Rent
 
	  
 	  
 	  
 
	  
 	  (a)
 	  The Lessee must pay the Annual Rent to the Lessor in equal monthly instalments in advance on the first day of each month.  The Lessor shall accept payment by
means of electronic banking.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  The first instalment must be paid on the Commencement Date.  (Monthly Rent must be paid at the rate specified in Item 4 until the end of the first Lease
Year.)
 
	  
 	  
 	  
 
	  
 	  (c)
 	  If the first and last instalments are for a period less than one month, those instalments will be calculated on a daily basis.
 
	  
 	  
 
	 3.2
 	 
Rent Review
 
	  
 	  
 	  
 
	  
 	  (a)
 	  For the second Lease Year, the Annual Rent will be the amount derived by application of the following formula:
 
								

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 	  R  =  A  x  B
              C
 
	  
 	  
 	  
 
	  
 	  
 	  Where:
 
	  
 	  
 	  
 
	  
 	  
 	  R  =
 	  Annual Rent for the subject year;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 A  =
 	  Annual Rent as specified in Item 4;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  B  =
 	  the Consumer Price Index for the March Quarter 2000; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  C  =
 	  the Consumer Price Index for the December Quarter 1999.
 
	  
 	  
 	  
 	  
 
	  
 	 (b)
 	  For each successive Lease Year, the Annual Rent will be the amount derived by application of the following formula:-
 
	  
 	  
 	  
 
	  
 	  
 	  R  =  A  x  B
              C
 
	  
 	  
 	  
 
	  
 	  
 	  Where:
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  R  =
 	  Annual Rent for the subject year;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 A  =
 	  Annual Rent for the immediately preceding year;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  B  =
 	  the Consumer Price Index for the March Quarter preceding the commencement of the subject year; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  C  =
 	  the Consumer Price Index for the corresponding March Quarter but one (1) year earlier than the quarter referred to in B.
 
	  
 	  
 	  
 	  
 
	  
 	 (c)
 	  Annual Rent for the final Lease Year will be paid on a pro rata basis until the Termination Date.
 
	  
 	  
 	  
 	  
 
	  3.3
 	 
Percentage Rent
 
	  
 	  
 	  
 
	  
 	  (a)
 	  The Lessee must also pay Percentage Rent (if applicable) for each Lease Year.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Calculation of Percentage Rent
 
	  
 	  
 	  
 
	  
 	  
 	 Percentage Rent is the amount (if any) calculated by applying the percentage stated in Item 8 to the amount by which the Gross Sales for the Lease Year exceed the
Percentage Rent Qualification Threshold.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Lessee to Provide Gross Sales Certificate
 
	  
 	  
 	  
 
	  
 	  
 	  Within 21 days after the end of each Lease Year the Lessee must provide the Lessor with a Gross Sales Certificate signed by the Lessee detailing the Lessee’s
Gross Sales for that Lease Year.
 
							

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 	  (d)
 	  Notice of Percentage Rent
 
	  
 	  
 	  
 
	  
 	  
 	 Within 30 days from the receipt of the Gross Sales Certificate for the Lease Year, the Lessor must advise the Lessee of the amount of Percentage Rent payable for that
Lease Year (“the Notice of Percentage Rent”).
 
	  
 	  
 	  
 
	  
 	  (e)
 	  Apportionment
 
	  
 	  
 	  
 
	  
 	  
 	  Percentage Rent shall be calculated on a pro rata basis for each of the first Lease Year and the final Lease Year.  The Percentage Rent Qualification Threshold
applicable during each of the first Lease Year and the final Lease Year will also be applied on a pro rata basis for the purposes of Percentage Rent calculations.
 
	  
 	  
 	  
 
	  
 	  (f)
 	  Payment of Percentage Rent
 
	  
 	  
 	  
 
	  
 	  
 	 The Lessee must pay the Percentage Rent to the Lessor within 30 days from receipt of the Notice of Percentage Rent.
 
	  
 	  
 	  
 
	  
 	  (g)
 	  Records and Accounting
 
	  
 	  
 	  
 
	  
 	  
 	  The Lessee must keep proper accounting records including all sales slips, cash register rolls, page stripes and any other evidence of Gross Sales for a period of 18
months after the end of each Lease Year.
 
	  
 	  
 	  
 
	  
 	  (h)
 	  Audit of Records
 
	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  The Lessor may request an audit of all the books of account and records relating to Gross Sales.  The Lessee must provide such records immediately on the request
of the Lessor to the Lessor or its representative for audit at a place mutually agreed between the Lessor and Lessee.
 
	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  If the audit reveals that the Gross Sales shown on the Lessee’s Gross Sales Certificate for any month is understated by more than 5% then the Lessee must pay the
costs of the audit.
 
	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  The Lessor may request an audit within 18 months after the end of a Lease Year but this right expires after such 18 month period.
 
	  
 	  
 	  
 	  
 
	  
 	 (i)
 	  Errors in Gross Sales Certificate
 
	  
 	  
 	  
 
	  
 	  
 	  If it is revealed by audit or otherwise that any Gross Sales Certificate delivered to the Lessor contains inaccurate information, then the parties must do everything
necessary to correct the inaccuracy.  An adjustment will be made and the appropriate party will pay to the other on demand the amount of the adjustment.
 
							

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 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
 	  SCHEDULE
 	  Page 12 of 33
 
	 
 
	   
 
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	  3.4
 	 
Interest on Arrears
 
	  
 	  
 
	  
 	  The Lessee must pay to the Lessor interest on any rent or other moneys which are in arrears for more than fourteen (14) days calculated at the Stipulated Rate from the
due date until the date of payment.
 
	  
 	  
 
	  
 	  
 
	  4.
 	 
OUTGOINGS
 
	  
 	  
 
	 4.1
 	 
Lessee’s Percentage of Outgoings
 
	  
 	  
 
	  
 	  The Lessee must pay the Percentage of Outgoings specified in Item 7 to the Lessor on demand.
 
	  
 	  
 
	  4.2
 	 
Lessor to Provide Annual Estimate
 
	  
 	  
 
	  
 	  The Lessor must (if requested by the Lessee) provide the Lessee with an annual estimate of Outgoings at least one month prior to the Lease Year to which it relates.
(The Parties acknowledge that this shall not be required in respect of the first Lease Year.)
 
	  
 	  
 
	 4.3
 	 
Audited Statement of Outgoings
 
	  
 	  
 
	  
 	  Within three months after the end of each Lease Year, the Lessor must (if requested by the Lessee) provide the Lessee with an audited statement of Outgoings for that
Lease Year.
 
	  
 	  
 
	  4.4
 	 
Utilities & Services
 
	  
 	  
 
	  
 	  The Lessee must pay to the relevant assessing authority by the due date, all water, gas, heat, electricity, telephone and any other charges relating specifically to
the Premises.
 
	  
 	  
 
	  4.5
 	 
Air Conditioning
 
	  
 	  
 
	  
 	 The Lessee must pay for air conditioning to the Premises.  The cost of air conditioning includes electricity, maintenance, insurance and repairs (but not
replacement of major components) of the Air Conditioning Equipment.
 
	  
 	  
 
	  
 	  
 
	  5.
 	 
USE OF PREMISES
 
	  
 	  
 
	  5.1
 	 
Permitted Use
 
	  
 	  
 
	  
 	  The Lessee must use the Premises only for the purpose stated in Item 9.
 
	  
 	  
 
	 5.2
 	 
No Warranty
 
	  
 	  
 
	  
 	  The Lessor does not warrant the suitability of the use of the Premises for the Lessee’s business.
 
					

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 	  QUEENSLAND LAND REGISTRY
 
	  Land Title Act 1994 and Land Act 1962
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	 5.3
 	 
Limitations on Use
 
	  
 	  
 
	  
 	  The Lessee must:-
 
	  
 	  
 	  
 
	  
 	  (a)
 	  comply with the terms of any Statute and all orders and regulations of all relevant authorities relating to use of the Premises;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  not cause any annoyance, damage or disturbance to the Lessor, other lessees or any other person;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  not use anything  in the Premises for any purpose other than that for which it is intended;
 
	  
 	  
 	  
 
	  
 	  (d)
 	  subject to Clause 6.1, not interfere with any drains, water supply, gas, electrical, plumbing or other services contained in the Premises without the Lessor’s
consent;
 
	  
 	  
 	  
 
	  
 	  (e)
 	  not alter the walls, ceilings or other parts of the Premises (fair wear and tear excepted) without the Lessor’s consent;
 
	  
 	  
 	  
 
	  
 	 (f)
 	  keep the Premises clean and tidy;
 
	  
 	  
 	  
 
	  
 	  (g)
 	  keep the Premises free of insects and pests;
 
	  
 	  
 	  
 
	  
 	  (h)
 	  advise the Lessor promptly in writing of any damage sustained to the Premises or the defective operation of any equipment or services therein;
 
	  
 	  
 	  
 
	  
 	  (i)
 	  keep the Premises secure;
 
	  
 	  
 	  
 
	  
 	 (j)
 	  ensure it holds all necessary current licences and permits required to operate the Lessee’s business;  and
 
	  
 	  
 	  
 
	  
 	  (k)
 	  ensure the Premises are not used for living or sleeping or any other unlawful purpose.
 
	  
 	  
 	  
 
	  5.4
 	 
Inspection by Lessor
 
	  
 	  
 
	  
 	  The Lessee must permit the Lessor to show the Premises to prospective lessees and allow the Lessor to affix “To Let” notices on the Premises for the three
month period prior to the Termination Date.
 
	  
 	  
 	  
 
	  
 	  
 
	 6.
 	 
MAINTENANCE, REPAIR AND REDECORATION
 
	  
 	  
 
	  6.1
 	 
Maintenance
 
	  
 	  
 
	  
 	  The Lessee must maintain the Premises in good repair and condition, fair wear and tear excepted.  (For these purposes, the Lessee acknowledges that this
obligation includes a requirement to maintain the driveways, garden beds and other elements of landscaping which are situated on the Land.)  The Lessee shall in all cases be entitled 
 
						

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 	  to appoint its own employees or contractors to carry out all aspects of maintenance works and the Lessee shall be responsible for payment of all expenses incurred by
it in that regard.
 
	  
 	  
 
	  6.2
 	 
Lessor’s Right to Inspect
 
	  
 	  
 
	  
 	 The Lessor may, at all reasonable times, inspect the Premises and if notice is given to the Lessee by the Lessor to carry out reasonable repairs, the Lessee must do so
at its own expense and within a reasonable time.
 
	  
 	  
 
	  6.3
 	 
Lessor’s Right to Repair
 
	  
 	  
 
	  
 	  If the Lessee does not carry out reasonable repairs, the Lessor may carry out those repairs at the expense of the Lessee.
 
	  
 	  
 
	  6.4
 	 
Lessor to Repair Building
 
	  
 	  
 
	  
 	  Subject to Clauses 6.5, 6.7 and 8.1, the Lessor must maintain and keep in good repair the roofs, exterior surfaces  and structural elements of the Premises and
the Lessor’s plant and equipment (excluding Air Conditioning Equipment).  The Lessor shall be responsible for the replacement of any major components of Air Conditioning Equipment.  If the occupation or use or enjoyment of the
Premises has, in the reasonable opinion of the Lessee, been diminished  to a material extent as a result of the failure of the Lessor to comply with its obligations under this Clause 6.4, and such failure continues for a period of 14 days after
service on the Lessor of a written notice specifying the default, then the Lessee may carry out the necessary repairs and recover the cost by way of a set-off against Rent payable to the Lessor.
 
	  
 	  
 
	 6.5
 	 
Exception
 
	  
 	  
 
	  
 	  The Lessor is not required to repair the Premises to the extent that any relevant damage to the Building is caused by the Lessee.
 
	  
 	  
 
	  6.6
 	 
Lessee to Notify
 
	  
 	  
 
	  
 	  The Lessor will not be in breach of Clause 6.4 unless:-
 
	  
 	  
 
	  
 	  (a)
 	  the Lessee has given the Lessor written notice to carry out repair;  and
 
	  
 	  
 	  
 
	  
 	 (b)
 	  the Lessor has not carried out the repair within a reasonable time after receipt of that notice.
 
	  
 	  
 	  
 
	  6.7
 	 
Lessee to Redecorate
 
	  
 	  
 
	  
 	  Subject to Clause 15.1, the Lessee must, not less than once during every six years of the Term or any extension thereof, Redecorate the Premises.  (For the
purposes of this Clause, “Redecorate” means painting the interior and exterior surfaces of the Premises and replacing the floor coverings if they are worn or damaged.)
 
						

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6.8
 	  Alterations
 
	  
 	  
 
	  
 	  The Lessee may not make any alteration to the Premises without first submitting full detailed drawings to the Lessor and obtaining the Lessor’s
consent.
 
	  
 	  
 
	  
 	  
 
	 
7.
 	  INSURANCES
 
	  
 	  
 
	 
7.1
 	  Lessee’s Insurances
 
	  
 	  
 
	  
 	  The Lessee must obtain and keep in effect for the duration of the Term in the name of the Lessee, and noting the interest of the Lessor and any other person named by
the Lessor (for their respective interests) the following insurances:-
 
	  
 	  
 
	  
 	  (a)
 	  Building [including plant, fixtures and fittings and all other contents excluding stock]
 
	  
 	  
 	  
 
	  
 	  
 	 Insurance covering all loss or damage for replacement value resulting from any cause.  This insurance may exclude:
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  the cost of making good fair wear and tear or gradual deterioration;
 
	  
 	  
 	  (ii)
 	  the cost of making good faulty design, workmanship and materials;
 
	  
 	  
 	  (iii)
 	  consequential loss of any kind.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Public Risk
 
	  
 	  
 	  
 
	  
 	  
 	 Insurance for a minimum of $10,000,000.00 for any one occurrence and unlimited in all
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Plate Glass
 
	  
 	  
 	  
 
	  
 	  
 	  Insurance covering all plate glass for replacement value.
 
	  
 	  
 	  
 
	  
 	  Policies referred to in Clauses 7.1(a) and (b) shall contain a cross liability clause in which the insurer agrees to waive all rights of subrogation or action against
any of the persons comprising the insured.
 
	  
 	  
 
	 
7.2
 	  Lessee to Provide Copies
 
	  
 	  
 
	  
 	  The Lessee must provide copies of the certificates of insurance to the Lessor as soon as practicable after they are taken out and (if requested by the Lessor) each
time the insurances are renewed.  These certificates must contain an undertaking to notify the Lessor and its mortgagee in writing not less than thirty (30) days prior to any material change in terms, cancellation or termination.

							

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7.3
 	  Lessor’s Right to Effect Insurances
 
	  
 	  
 
	  
 	  If the Lessee does not take out or keep in force any such insurance the Lessor may effect such insurance.  The cost of that insurance must be paid by the Lessee
immediately upon demand by the Lessor.
 
	  
 	  
 
	  
 	  
 
	 
8.
 	  DAMAGE OR DESTRUCTION OF PREMISES
 
	  
 	  
 
	 
8.1
 	  Consequence of Damage or Destruction
 
	  
 	  
 
	  
 	  If the Premises are damaged so that they are substantially unfit for the permitted use, then, within 21 days after the damage occurs, the Lessee must give notice to
the Lessor that either:-
 
	  
 	  
 
	  
 	  (a)
 	  the Lease will end on the date which is 14 days after the date of the notice PROVIDED THAT the Lessee shall only be entitled to give such notice in the event that
relevant damage to the Premises occurs within 6 months prior to the Termination Date; or
 
	  
 	  
 	  
 
	  
 	  (b)
 	  the Lessee will restore the Premises (utilising any insurance proceeds recovered by it from any insurer which has issued a policy referred to in Clause
7.1).
 
	  
 	  
 	  
 
	 
8.2
 	  Rent Payments to Continue
 
	  
 	  
 
	  
 	  Notwithstanding the extent of the damage to the Premises, the Lessee shall continue to pay Rent up until and including the Termination Date, or such earlier date as
the Lease is surrendered in accordance with Clause 8.1(a).
 
	  
 	  
 
	 
8.3
 	  Restriction on Termination
 
	  
 	  
 
	  
 	  The Lessee may not terminate this Lease if any significant part of the damage or destruction was caused or contributed to by the Lessee.
 
	  
 	  
 
	 
8.4
 	  Utilisation of Insurance Proceeds by Lessor
 
	  
 	  
 
	  
 	  If the Lessee does give notice under the terms of Clause 8.1(a), the Lessee shall immediately pay to the Lessor (when received) the proceeds of any insurance claim
under a policy referred to in Clause 7.1(a).  The Lessee shall also be liable to pay any excess which may apply to the relevant policy.
 
	  
 	  
 
	  
 	  
 
	 
9.
 	  RESUMPTION OF THE PREMISES
 
	  
 	  
 
	 
9.1
 	  Notification of Resumption
 
	  
 	  
 
	  
 	 If either party receives notification that any part of the Premises are to be taken for any public purpose, then that party must notify the other party
immediately.
 
						

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9.2
 	  Compensation Payment
 
	  
 	  
 
	  
 	 In the event that the Lessor receives a payment of compensation moneys from a Government Department or Governmental Authority after a resumption of any property
including all or part of the Premises, the Lessor shall account to the Lessee for such proportion of those moneys that relates to compensation for loss of the business formerly conducted by the Lessee at the Premises.
 
	  
 	  
 
	  
 	  
 
	 
10.
 	  ASSIGNMENT AND SUB-LETTING
 
	  
 	  
 
	 
10.1
 	  Lessor’s Consent
 
	  
 	  
 
	  
 	  The Lessee must not assign, sublet or grant any licence over all or any part of the Premises without obtaining the Lessor’s consent.
 
	  
 	  
 
	 
10.2
 	  Requirements for Consent
 
	  
 	  
 
	  
 	  Prior to granting its consent, the Lessor may require:-
 
	  
 	  
 
	  
 	  (a)
 	  that the assignee or sublessee enter into a covenant to observe all of the Lessee’s obligations under this Lease;
 
	  
 	  
 	  
 
	  
 	  (b)
 	  that the assignee or sublessee sign a Power of Attorney in favour of the Lessor in the form required by the Lessor; and
 
	  
 	  
 	  
 
	  
 	 (c)
 	  provision of a Bank Guarantee equivalent to not less than 3 months rental and outgoings (in substitution for the guarantee provided by Collins Foods Australia Pty Ltd
at the Commencement Date, which guarantee is to be released by the Lessor in the event of an actual or deemed assignment to any entity which is not a subsidiary of Collins Foods International Pty Ltd).
 
	  
 	  
 
	 
10.3
 	  Costs of Assignment
 
	  
 	  
 
	  
 	  All costs associated with requesting and obtaining the Lessor’s consent are payable by the Lessee.
 
	  
 	  
 
	 
10.4
 	  Lessor’s Restrictions
 
	  
 	  
 
	  
 	 The Lessor must not unreasonably refuse its consent in the case of a financially secure assignee or sublessee.
 
	  
 	  
 
	 
10.5
 	  Transfer of Shares
 
	  
 	  
 
	  
 	  If the Lessee is a Company, any proposed dealing which will alter the effective control of the shareholding of the Lessee is deemed an assignment requiring the consent
of the Lessor.
 
						

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10.6
 	  Assignment by lessor
 
	  
 	  
 
	  
 	  Subject to the provisions of the Retail Shop Leases Act, if the Lessor transfers its interest in the Premises or in this Lease it will be relieved of its
obligations and liability under this Lease.
 
	  
 	  
 
	  
 	  
 
	 
11.
 	  INDEMNITY AND COSTS
 
	  
 	  
 
	 
11.1
 	  Indemnity
 
	  
 	  
 
	  
 	  The Lessee indemnifies the Lessor from any liability or loss or costs and expenses:-
 
	  
 	  
 
	  
 	  (a)
 	  caused or contributed to (but only to the extent of such contribution) by the neglect or default of the Lessee; and
 
	  
 	  
 	  
 
	  
 	  (b)
 	  incurred as a result of any action taken by the Lessor to rectify any breach of the provisions of this Lease by the Lessee.
 
	  
 	  
 	  
 
	 
11.2
 	  Costs
 
	  
 	  
 
	  
 	  The Lessee must pay the following costs in relation to this Lease:-
 
	  
 	  
 
	  
 	  (a)
 	  the cost of obtaining the consent of any Mortgagee of the Land (for any purpose other than the registration of this Lease and the mortgage over the Lease to be given
by the Lessee in favour of Westpac Banking Corporation);
 
	  
 	  
 	  
 
	  
 	  (b)
 	  all stamp duty, registration fees and other necessary disbursements;
 
	  
 	  
 	  
 
	  
 	 (c)
 	  the costs of upstamping of this Lease; and
 
	  
 	  
 	  
 
	  
 	  (d)
 	  the Lessor’s costs and expenses associated with the enforcement of this Lease against the Lessee.
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	 
12.
 	  LESSOR’S COVENANTS
 
	  
 	  
 
	 
12.1
 	  Quiet Enjoyment
 
	  
 	  
 
	  
 	 Provided that the Lessee is not in breach of this Lease, the Lessor must not unreasonably interrupt the Lessee’s use of the Premises.
 
	  
 	  
 
	 
12.2
 	  Lessor to Pay Rates
 
	  
 	  
 
	  
 	  Subject to Clauses 16 and 17, the Lessor must pay all rates, taxes and, where applicable, body corporate levies payable in respect of the Land.  The Lessor must
attend to payments on a timely basis so as to take advantage of any available discounts, rebates and reductions.
 
						

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12.3
 	  Lessee to Have Access
 
	  
 	  
 
	  
 	  Provided that the Lessee is not in breach of the terms of this Lease, the Lessee is entitled to have full and free access to the Premises for the duration of this
Lease.
 
	  
 	  
 
	  
 	  
 
	 
13.
 	  OPTIONS
 
	  
 	  
 
	 
13.1A
 	  Grant of First Option
 
	  
 	  
 
	  
 	  Provided the Lessee is not in breach of this Lease, the Lessor agrees to grant the Lessee an option to renew the Lease for the term specified in Item 11 on the same
terms and conditions of this Lease (subject to the provisions of Clauses 13.3, 13.6, 13.7 and 13.8).
 
	  
 	  
 
	 
13.1B
 	  Grant of Second Option
 
	  
 	  
 
	  
 	  Provided the Lessee is not in breach of this Lease, the Lessor agrees to grant the Lessee an option to renew the Lease for the term specified in Item 12 on the same
terms and conditions of this Lease excluding this Clause 13 (subject also to the provisions of Clauses 13.3, 13.6, 13.7 and 13.8).
 
	  
 	  
 
	 
13.2
 	  Time for Exercise
 
	  
 	  
 
	  
 	  The Lessee must exercise the option at least three months prior to the Termination Date.
 
	  
 	  
 
	 
13.3
 	  Annual Rent for Option Term
 
	  
 	  
 
	  
 	  The Annual Rent for the first Lease Year of the Option Term will be calculated in accordance with Clause 13.4.  (Once determined, the new Annual Rent and Monthly
Rent figures will be inserted in Item 4 in substitution for the amounts originally specified in this Lease.)  The Annual Rent for the subsequent Lease Years of the Option Term, will be calculated in accordance with Clause 3.2.
 
	  
 	  
 
	 
13.4
 	  Market Rent Review
 
	  
 	  
 
	  
 	 For the first Lease Year of the Option Term, the Annual Rent will be the annualised amount calculated by review of the rent to market as follows:-
 
	  
 	  
 
	  
 	  (a)
 	  At any time not later than four (4)  months prior to the first day of the Option Term (“Market Review Date”) the Lessor will notify the Lessee in
writing of the market rent for the Premises for that Lease Year (“Lessor’s Notice”).
 
	  
 	  
 	  
 
	  
 	  (b)
 	  If the Lessee does not agree that the amount stated in the Lessor’s Notice is the market rent for the Premises, the Lessee may, within 21 days of receipt of the
Lessor’s Notice, give the Lessor a notice in writing requiring that the market rent be determined in accordance with Clause 13.5 (“Lessee’s Notice”).
 
						

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 	  (c)
 	  If the Lessee does not issue a Lessee’s Notice within the time stipulated in Clause 13.4(b), the Parties agree that the amount stated in the Lessor’s Notice
is the market rent for the Premises and will be the Annual Rent from the Market Review Date.
 
	  
 	  
 	  
 
	 
13.5
 	  Dispute as to Rent
 
	  
 	  
 
	  
 	  (a)
 	  If, after one month following receipt by the Lessor of the Lessee’s Notice the Parties have not agreed upon the market rent for the Premises, then either party
may request the Executive Officer of the Retail Shop Lease Tribunal to appoint an independent specialist Retail Valuer (“Umpire”) to make a final determination of the market rent of the Premises (“Determination”), pursuant to the
provisions of Division 4 of Part 6 of the Retail Shop Leases Act.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  The Determination is to reflect the rent that would reasonably be expected to be paid for the Premises if they were unoccupied and offered for leasing for the use
specified in Item 9 or a substantially similar use.  The Determination must not have regard to the value of the goodwill of the Lessee’s business or any leasehold improvements owned by the Lessee.
 
	  
 	  
 	  
 
	  
 	 (c)
 	  The Determination shall be final and binding on the Parties.  The Umpire shall give his/her determination and basis for that valuation in writing.

	  
 	  
 	  
 
	  
 	  (d)
 	  The costs incurred in the Determination are to be paid equally by the Lessor and the Lessee.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  The rent payable until the Determination is the rent payable immediately prior to the Market Review Date
 
	  
 	  
 	  
 
	  
 	  (f)
 	  Any variation in rent resulting from the Determination shall take effect on and from the Market Review Date and any differential amount must be paid by the appropriate
Party to the other within 14 days of the Determination.
 
	  
 	  
 
	 
13.6
 	  Percentage Rent for Option Term
 
	  
 	  
 
	  
 	  For the purpose of calculation of Percentage Rent in the first year of the Option Term, the Percentage Rent Qualification Threshold will be the amount applicable in
the final Lease Year of the Term as increased or decreased by the same percentage factor as applies to the new market rental (as compared to the rental which applied in the final Lease Year of the Term).  The resulting figure shall be specified
at the end of the second sentence in Item 8 in lieu of the figure which applied for the first Lease Year of the Term.
 
	  
 	  
 
	 
13.7A
 	  Schedule of Changes for First Option Term Lease
 
	  
 	  
 
	  
 	  The lease to be prepared in accordance with the terms of Clause 13.1A will incorporate the following amendments:-
 
	  
 	  
 
	  
 	  
 	 Item 2:
 	  the date to be specified as the “Commencement Date” will be the first day of the First Option Term; the date to be specified
 
							

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 	 as the “Termination Date” will be the last day of the First Option Term.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Item 4:
 	  the “Annual Rent” and the “Monthly Rent” figures shall be inserted, as referred to in Clause 13.3.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Item 8:
 	  the Percentage Rent Qualification Threshold is to be inserted, as detailed in Clause 13.6.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Item 11:
 	  details concerning the “First Option to Renew” are to be deleted.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Clause 3.2(a):
 	  in the definition of “B”, the reference to the year “2000” is to be deleted and replaced with the words “in the year that the Option Term
commences”.  In the definition of “C”, the reference to the year “1999” is to be deleted and replaced with the words “in the year preceding the year in which the Option Term commences”.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Clause 4.2:
 	  the second sentence in this clause is to be deleted.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Clause 13.1A:
 	  this clause is to be deleted.
 
	  
 	  
 	  
 	  
 
	 
13.7B
 	  Schedule of Changes for Second Option Term Lease
 
	  
 	  
 
	  
 	  The lease to be prepared in accordance with the terms of Clause 13.1B will incorporate the following amendments:-
 
	  
 	  
 
	  
 	  
 	  Item 2:
 	  the date to be specified as the “Commencement Date” will be the first day of the Second Option Term; the date to be specified as the “Termination
Date” will be the last day of the Second Option Term.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Item 4:
 	  the “Annual Rent” and the “Monthly Rent” figures shall be inserted, as referred to in Clause 13.3.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Item 6:
 	  the reference to “Market Review Date” is to be removed.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Item 8:
 	  the Percentage Rent Qualification Threshold is to be inserted, as detailed in Clause 13.6.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 Item 12:
 	  details concerning the “Second Option to Renew” are to be deleted.
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  Clause 13:
 	  this clause is to be deleted entirely.
 
	  
 	  
 	  
 	  
 
	 
13.8
 	  Lessor’s Covenant
 
	  
 	  
 
	  
 	  So long as any option for renewal remains open for exercise and unexercised by the Lessee, the Lessor must not transfer its interest in the Land without first
obtaining a
 
							

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 	  covenant from the transferee in favour of the Lessee acknowledging that it is bound by the option/s for renewal and agreeing to obtain a similar covenant from any
further  transferee of the Land.
 
	  
 	  
 
	  
 	  
 
	 
14.
 	  DEFAULT BY LESSEE
 
	  
 	  
 
	 
14.1
 	  Events of Default
 
	  
 	  
 
	  
 	  If:-
 	  
 
	  
 	  
 	  
 
	  
 	  (a)
 	  any part of the Annual Rent is unpaid 14 days after it has become due; or
 
	  
 	  
 	  
 
	  
 	 (b)
 	  judgment is obtained against the Lessee in any Court and the Lessee does not satisfy it within 21 days; or
 
	  
 	  
 	  
 
	  
 	  (c)
 	  the Lessee, being a corporation, becomes liable to be wound up or liquidated or to have a Receiver or Manager appointed; or
 
	  
 	  
 	  
 
	  
 	  (d)
 	  the Lessee, being an individual, becomes liable to be declared bankrupt; or
 
	  
 	  
 	  
 
	  
 	  (e)
 	  the Lessee ceases to carry on its business from the Premises without the Lessor’s consent; or
 
	  
 	  
 	  
 
	  
 	 (f)
 	  the Lessee breaches any term of this Lease;
 
	  
 	  
 	  
 
	  
 	  the Lessee will be in default.
 
	  
 	  
 
	 
14.2
 	  Consequences of Default
 
	  
 	  
 
	  
 	  (a)
 	  If the Lessee is in default and does not remedy its default within 14 days after notification from the Lessor to do so, the Lessor may:-
 
	  
 	  
 	  
 
	  
 	  
 	 (i)
 	  re-enter and take possession of the Premises;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  terminate this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  exercise any other legal remedy.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  If the Lessee breaches an Essential Term, the Lessor may recover all money payable by the Lessee up to the Termination Date.
 
	  
 	  
 	  
 
	 
14.3
 	  Non-Waiver
 
	  
 	  
 
	  
 	  (a)
 	  No delay by the Lessor in acting in response to a default by the Lessee will constitute a waiver of the Lessor’s rights under Clause 14.2.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Exercise by the Lessor of its rights under Clause 14.2 for a later default will not amount to a waiver by the Lessor of any earlier default by the Lessee.

							

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15.
 	  TERMINATION
 
	  
 	  
 
	 
15.1
 	  Condition of Premises
 
	  
 	  
 
	  
 	  On the Termination Date (or earlier termination of this Lease) the Lessee must deliver up the Premises to the Lessor in the same condition as at the Commencement Date,
fair wear and tear excepted.
 
	  
 	  
 
	 
15.2
 	  Removal of Lessee’s Property
 
	  
 	  
 
	  
 	  Prior to the Termination Date, the Lessee may, at its discretion, remove all or part of its Removable Equipment from the premises and rectify any damage caused to the
Premises by that removal.  The Lessee shall only be entitled (but shall not be required) to remove any additional item of plant and equipment owned by it if it has obtained the prior written consent of the Lessor.
 
	  
 	  
 
	 
15.3
 	  Consequences of Non-Removal
 
	  
 	  
 
	  
 	  If  the Lessee does not remove its property from the Premises within 14 days after the Termination Date, the Lessor may treat the Lessee’s property as
abandoned and deal with it in any way it chooses.  The Lessee will have no claim for any proceeds received on the sale of the Lessee’s property by the Lessor.
 
	  
 	  
 
	 
15.4
 	  Holding Over
 
	  
 	  
 
	  
 	  If the Lessee, with the consent of the Lessor, occupies the Premises after the Termination Date (other than pursuant to the grant of a further lease), the Lessee will
do so as a monthly tenant on the same terms and conditions as this Lease as far as they apply to a monthly tenancy.
 
	  
 	  
 
	  
 	  
 
	 
16.
 	  CHANGES IN TAXATION
 
	  
 	  
 
	 
16.1
 	  Parties to Confer
 
	  
 	  
 
	  
 	 If and whenever during the term of this Lease the system of taxation in Australia is changed so that the amount of the Gross Sales on which Percentage Rent is
calculated is varied, the parties shall at the written request of either of them to the other confer in good faith with a view to reaching agreement on an alternative formula for the calculation of Percentage Rent which removes so far as is
reasonably practicable any disadvantage which either party may suffer (or if that is not achievable, which disadvantages neither party more than the other) from any such change in the system of taxation.  Any such request shall be made not
earlier than three (3) months and not later than twelve (12) months after the change in the system of taxation becomes effective.  Only one request may be made in respect of each change.
 
					

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16.2
 	  Failure to Agree
 
	  
 	  
 
	  
 	  If the parties have not reached agreement on an alternative formula within sixty (60) days after service of the request to confer, either party may at any time
thereafter prior to reaching agreement (evidenced in writing) by notice in writing to the other require that an alternative formula be determined by an independent assessor in accordance with the following provisions:-
 
	  
 	  
 
	  
 	  (a)
 	  If the parties have not agreed upon an independent assessor and/or agreed with the independent assessor upon the terms and conditions of his appointment within
fourteen (14) days after the service of the notice requiring an independent assessor, either party may at any time thereafter request the President for the time being of the Queensland Division of the Australian Property Institute to appoint an
assessor and/or to fix the terms and conditions of his appointment.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  The conditions of appointment of the assessor shall require the assessor to give his ruling in writing stating his reasons within sixty (60) days of his
appointment.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  The independent assessor shall act as an expert and not as an arbitrator.
 
	  
 	  
 	  
 
	  
 	  (d)
 	  Each party may within thirty (30) days of the appointment but not thereafter make one written submission to the assessor and shall contemporaneously forward a copy of
that submission to the other party.
 
	  
 	  
 	  
 
	  
 	 (e)
 	  Each party may within fourteen (14) days of the receipt of a copy of the other party’s submission but not thereafter forward to the assessor one written response
to the other party’s submission.
 
	  
 	  
 	  
 
	  
 	  (f)
 	  No other submission shall be made by either party to the assessor unless requested by the assessor.  The assessor shall not be obliged to have regard to any
submission or response not given within the prescribed time.
 
	  
 	  
 	  
 
	  
 	  (g)
 	  The preferred form of alternative formula is one which adjusts the rates used for the calculation of Percentage Rent and/or adjusts the threshold figures used for the
calculation of Percentage Rent but the assessor shall be at liberty to depart from the preferred form if the preferred form is not practicable having regard to the nature of the changes to the system of taxation.
 
	  
 	  
 	  
 
	  
 	 (h)
 	  Each party shall be bound by the ruling of the assessor which shall not be challenged by either party except to correct a manifest error in law made by the
assessor.
 
	  
 	  
 	  
 
	  
 	  (i)
 	  The fees and expenses of any assessor shall be paid one-half by the Lessor and one-half by the Lessee and either party paying the full amount thereof may recover
one-half of such amount from the other as a debt.
 
						

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16.3
 	  Variation of Lease
 
	  
 	  
 
	  
 	  The alternative formula (whether agreed between the parties or determined by an independent assessor) shall be embodied in a memorandum of variation of lease in
registrable form to be prepared, stamped and registered by the Lessor’s lawyers at the cost of the party which first requested an alternative formula.
 
	  
 	  
 
	 
16.4
 	  Transitional Provisions
 
	  
 	  
 
	  
 	 Pending agreement (or determination) of an alternative formula, the Lessee shall continue to pay Percentage Rent in accordance with the then existing formula but on
reaching agreement (or determination), such agreement (or determination) shall apply retrospectively to the date on which the change in the system of taxation becomes effective and any necessary adjustments shall be made between the
parties.
 
	  
 	  
 
	 
16.5
 	  Examples of Changes Invoking Clause
 
	  
 	  
 
	  
 	  Changes in the system of taxation referred to in clause 16.1 include, but are not limited, to:-
 
	  
 	  
 
	  
 	  (a)
 	  the imposition of a consumption tax or goods and services tax or value added tax or tax in the nature of a tax on goods and services imposed at the point of retail
sale and which is required to be remitted to the taxing authority;
 
	  
 	  
 	  
 
	  
 	 (b)
 	  the discontinuance of any tax of general application imposed on goods prior to the point of retail sale known at the date hereof as sales tax;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  the reduction in the rate of any tax of general application imposed on goods prior to the point of retail sale known at the date hereof as sales tax.
 
	  
 	  
 	  
 
	 
16.6
 	  Examples of Changes Not Invoking Clause
 
	  
 	  
 
	  
 	  Changes in the system of taxation to which clause 16.1 does not apply include, but are not limited, to:-
 
	  
 	  
 
	  
 	 (a)
 	  the discontinuance of or variations in the rates of sales tax on selected goods (as distinct from a discontinuance or variation of general application);

	  
 	  
 	  
 
	  
 	  (b)
 	  taxes imposed on the Lessor on rents and other monies recoverable by the Lessor from the Lessee under this Lease which are intended as a tax on income or profits
arising from the business activities of the Lessor;
 
	  
 	  
 	  
 
	  
 	  (c)
 	  taxes imposed on the Gross Receipts of the Lessee which are intended as a tax on the income or profits arising from the business activities of the Lessee.

						

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17.
 	  GST
 
	  
 	  
 
	 
17.1
 	  Definition
 
	  
 	  
 
	  
 	 In this clause, “GST” means a goods and services tax or any similar tax, impost or duty introduced by the Commonwealth of Australia or any State or Territory
of Australia.
 
	  
 	  
 
	 
17.2
 	  GST Payments
 
	  
 	  
 
	  
 	  If any supply under this Lease (including the supply of the right to occupy the Premises and the supply of any goods, services, rights, benefits or other things) is or
becomes subject to GST the Lessor may, in addition to any amount or consideration payable or to be provided under this Lease, recover from the Lessee an additional amount on account of GST, such amount to be calculated by multiplying the value of
the consideration payable or to be provided by the Lessee for the relevant supply by the prevailing GST rate.  Any additional amount recoverable by the Lessor under this clause is payable by the Lessee at the same time as the consideration for
the relevant supply is payable or to be provided.
 
	  
 	  
 
	  
 	  
 
	 
18.
 	  LAND TAX
 
	  
 	  
 
	 
18.1
 	  Adjustment of Land Tax Payable by Lessor
 
	  
 	  
 
	  
 	  In the event that the Queensland Government ceases to charge land tax to (or adjusts the amount of land tax payable by) owners of freehold properties in Queensland,
the Annual Rent payable by the Lessee to the Lessor will be adjusted by an amount agreed by the Lessor and Lessee as representing the extent of the change in the Lessor’s land tax liability.
 
	  
 	  
 
	  
 	  This clause will be applied on each occasion on which the Lessor’s land tax liability is adjusted.
 
	  
 	  
 
	 
18.2
 	  Failure to Agree
 
	  
 	  
 
	  
 	  If the parties are unable to agree on the amount of the rental adjustment to be made under Clause 18.1, the matter will be referred to an independent assessor for
determination.  Such assessment will be conducted in the same manner as is set out in Clause 16.2, with the exception of sub-clause (g) of that provision.
 
	  
 	  
 
	 
18.3
 	  Rental Adjustment
 
	  
 	  
 
	  
 	  Any rental adjustment referred to in either of Clauses 18.1 or 18.2 will be made as from the effective date on which the Lessor is no longer liable for payment of the
relevant amount of land tax.
 
					

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19.
 	  MISCELLANEOUS PROVISIONS
 
	  
 	  
 
	 
19.1
 	  Notices
 
	  
 	  
 
	  
 	 (a)
 	  Any notice or approval must be given in writing and signed by the party giving the notice or its authorised Agent.
 
	  
 	  
 	  
 
	  
 	  (b)
 	  Any notice must be delivered to the receiving party personally or posted to the address or sent to the facsimile number of that party set out in Item 1.

	  
 	  
 	  
 
	  
 	  (c)
 	  The notice or approval will be deemed to have been received:-
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  if sent by post, on the second business day after posting; or
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  if sent by facsimile, on receipt by the sender of a successful transmission report.
 
	  
 	  
 	  
 	  
 
	 
19.2
 	  Assumption of Risk by Lessee
 
	  
 	  
 
	  
 	  The Lessee will occupy and use the Premises at its own risk.  The Lessor will not in any circumstances be liable to the Lessee for any damage to the Lessee or any
person or any property, unless such damage is caused directly by the wilful neglect or default of the Lessor.
 
	  
 	  
 
	 
19.3
 	  Interruption of Services
 
	  
 	  
 
	  
 	 Except in the case of the Lessor’s wilful neglect or default, the Lessor will not be liable to the Lessee for any loss or damage suffered by the Lessee due to any
malfunction or interruption of or to the water, gas or electricity services or the fire equipment or for the blockage of any sewers, wastes, drains, gutters, downpipes or storm water drains.
 
	  
 	  
 
	 
19.4
 	  Time to be of the Essence
 
	  
 	  
 
	  
 	  Time is of the essence with respect to all obligations of the Parties and all time periods referred to in this Lease.
 
	  
 	  
 
	 
19.5
 	  Entire Agreement
 
	  
 	  
 
	  
 	 The terms and conditions set out in this Lease contain the entire agreement between the Parties.
 
	  
 	  
 
	 
19.6
 	  Severability
 
	  
 	  
 
	  
 	  If it is held by any Court that -
 
	  
 	  
 
	  
 	  (a)
 	  any part of this Lease is unenforceable; or
 
	  
 	  
 	  
 
	  
 	  (b)
 	  this Lease would be unenforceable unless any part of this Lease was deleted,
 
							

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 	  that part must be deleted from this Lease without affecting the rest of this Lease.
 
	  
 	  
 
	 
19.7
 	  Completion of Lease and Registration Requirements
 
	  
 	  
 
	  
 	  The Lessee and the Guarantor (if any) hereby expressly authorise the Lessor and/or the Lessor’s Solicitors to:-
 
	  
 	  
 
	  
 	  (a)
 	  complete all blanks in this Lease including but not limited to the Commencement Date, Termination Date, and area;  and
 
	  
 	  
 	  
 
	  
 	  (b)
 	  make any minor changes to this Lease to enable registration with the Department of Natural Resources.
 
	  
 	  
 	  
 
	 
19.8
 	  Governing Law
 
	  
 	  
 
	  
 	  This Lease is governed by the law in force in Queensland.
 
	  
 	  
 
	  
 	  
 
	 
20.
 	  POWER OF ATTORNEY
 
	  
 	  
 
	  
 	  (a)
 	  The Lessee hereby appoints the Lessor to be the Attorney of the Lessee at any time after the power to re-enter has become exercisable to:-
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  sign a transfer or a surrender of this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ii)
 	  effect registration of a surrender of this Lease; and
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iii)
 	  do any act or thing relative to the Premises as effectually as the Lessee could do.
 
	  
 	  
 	  
 	  
 
	  
 	  (b)
 	  The Lessee must ratify and confirm anything the Lessee lawfully does with respect to the Premises.
 
	  
 	  
 
	  
 	  
 
	 
21.
 	  GUARANTEE
 
	  
 	  
 
	 
21.1
 	  Guarantee
 
	  
 	  
 
	  
 	  The Guarantor guarantees the payment of all moneys to be paid by the Lessee under this Lease and the performance of all obligations of the Lessee under this
Lease.
 
	  
 	  
 
	 
21.2
 	  Indemnity
 
	  
 	  
 
	  
 	  The Guarantor indemnifies the Lessor against all losses and expenses which the Lessor may incur as a result of any default by the Lessee.
 
							

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21.3
 	  Guarantor’s Liability
 
	  
 	  
 
	  
 	  (a)
 	  In the event of default by the Lessee the Guarantor must on demand by the Lessor remedy the default of the Lessee and compensate the Lessor for all losses and expenses
incurred by the Lessor as a consequence of that default.
 
	  
 	  
 	  
 
	  
 	 (b)
 	  The Guarantor’s liability will not be affected by:-
 
	  
 	  
 	  
 
	  
 	  
 	  (i)
 	  the granting of time or any other indulgence to the Lessee;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (ii)
 	  any assignment or purported assignment of the Lessee’s interest under this Lease (subject to Clause 10.2(c), in the event that Sizzler Australia Pty Ltd is the
actual or deemed assignor);
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (iii)
 	  any waiver or variation of the rights of the Lessor against the Lessee;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (iv)
 	  any variation of this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (v)
 	  any neglect or omission to enforce any rights by the Lessor;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (vi)
 	  any notice to quit given by either party to this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (vii)
 	  the death, insolvency, liquidation or dissolution of the Lessee or any of the Guarantors;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (viii)
 	  the unenforceability of any part of this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	 (ix)
 	  the exercise of any option period under this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (x)
 	  the lawful Termination of this Lease;
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  (xi)
 	  non-execution of this Guarantee by any Guarantor or unenforceability of this Guarantee and Indemnity against any Guarantor.
 
	  
 	  
 	  
 
	  
 	  (c)
 	  Subject to Clause 10.2(c), the Guarantor’s liability will continue until all obligations of the Lessee have been performed by the Lessee.
 
	  
 	  
 	  
 
	  
 	 (d)
 	  To the fullest extent permitted by law, the Guarantor waives such of its rights which may at any time be inconsistent with any of the provisions of this Guarantee and
Indemnity.
 
	  
 	  
 	  
 
	  
 	  (e)
 	  In the event of the liquidation of the Lessee and disclaimer by the Liquidator of this Lease, the Guarantor will accept from the Lessor a lease of the Premises for a
term equal to the remaining unexpired term of this Lease and on the same terms and conditions as this Lease.  The Guarantor must pay all costs of and incidental to the new lease.
 
	  
 	  
 	  
 
	  
 	  (f)
 	  Where there is more than one Guarantor to this Lease, the obligations and liabilities of each and every Guarantor are joint and several.
 
								

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 	  (g)
 	  The Guarantor must not prove or claim in any liquidation, composition or assignment for the benefit of creditors until the Lessor has received all monies owing to it
by the Lessee.
 
	  
 	  
 	  
 
	 THE COMMON SEAL of COLLINS
 	  )
 	 
 	  
 	 
 
	  FOODS INTERNATIONAL PTY LTD
 	  )
 	  Authorised Officer
 	  
 	 
 
	  ARBN 009 980 250 is affixed as required
 	  )
 	  
 	  
 	 
 
	  by the terms of its Constitution:-
 	  )
 	  
 	  
 	 
 
	  
 	 )
 	  
 	  
 	 
 
	  
 	  )
 	 
 	  
 	 
 
	  
 	  
 	  Authorised Officer
 	  
 	 
 
										

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 	  INDEX
 	   
 
	  
 	  
 	  
 
	  CLAUSE
 	  
 	  PAGE
 
	 
 	 
	 
 
	  
 	  
 	   
 
	  1.
 	  
REFERENCE DATA
 	  3
 
	  
 	  
 	  
 
	 2.
 	  
DEFINITIONS AND INTERPRETATIONS
 	  5
 
	  
 	  
 	  
 
	  2.1
 	  
Definitions
 	  5
 
	  2.2
 	  
Interpretation
 	  9
 
	  
 	  
 	  
 
	  3.
 	  
RENT
 	  9
 
	  
 	  
 	  
 
	 3.1
 	  
Rent
 	  9
 
	  3.2
 	  
Rent Review
 	  9
 
	  3.3
 	  
Percentage Rent
 	  10
 
	  3.4
 	  
Interest on Arrears
 	  12
 
	  
 	  
 	  
 
	  4.
 	  
OUTGOINGS
 	  12
 
	  
 	  
 	  
 
	 4.1
 	  
Lessee’s Percentage of Outgoings
 	  12
 
	  4.2
 	  
Lessor to Provide Annual Estimate
 	  12
 
	  4.3
 	  
Audited Statement of Outgoings
 	  12
 
	  4.4
 	  
Utilities & Services
 	  12
 
	  4.5
 	  
Air Conditioning
 	  12
 
	  
 	  
 	  
 
	 5.
 	  
USE OF PREMISES
 	  12
 
	  
 	  
 	  
 
	  5.1
 	  
Permitted Use
 	  12
 
	  5.2
 	  
No Warranty
 	  12
 
	  5.3
 	  
Limitations on Use
 	  13
 
	  5.4
 	  
Inspection by Lessor
 	  13
 
	  
 	  
 	  
 
	 6.
 	  
MAINTENANCE, REPAIR AND REDECORATION
 	  13
 
	  
 	  
 	  
 
	  6.1
 	  
Maintenance
 	  13
 
	  6.2
 	  
Lessor’s Right to Inspect
 	  14
 
	  6.3
 	  
Lessor’s Right to Repair
 	  14
 
	 6.4
 	  
Lessor to Repair Building
 	  14
 
	  6.5
 	  
Exception
 	  14
 
	  6.6
 	  
Lessee to Notify
 	  14
 
	  6.7
 	  
Lessee to Redecorate
 	  14
 
	  6.8
 	  
Alterations
 	  15
 
	  
 	  
 	  
 
	 7.
 	  
INSURANCES
 	  15
 
	  
 	  
 	  
 
	  7.1
 	  
Lessee’s Insurances
 	  15
 
	  7.2
 	  
Lessee to Provide Copies
 	  15
 
	  7.3
 	  
Lessor’s Right to Effect Insurances
 	  16
 
						

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	  8.
 	  
DAMAGE OR DESTRUCTION OF PREMISES
 	  16
 
	  
 	  
 	  
 
	 8.1
 	  
Consequence of Damage or Destruction
 	  16
 
	  8.2
 	  
Rent Payments to Continue
 	  16
 
	  8.3
 	  
Restriction on Termination
 	  16
 
	  8.4
 	  
Utilisation of Insurance Proceeds by Lessor
 	  16
 
	  
 	  
 	  
 
	  9.
 	  
RESUMPTION OF THE PREMISES
 	  16
 
	  
 	  
 	  
 
	 9.1
 	  
Notification of Resumption
 	  16
 
	  9.2
 	  
Compensation Payment
 	  17
 
	  
 	  
 	  
 
	  10.
 	  
ASSIGNMENT AND SUB-LETTING
 	  17
 
	  
 	  
 	  
 
	  10.1
 	  
Lessor’s Consent
 	  17
 
	 10.2
 	  
Requirements for Consent
 	  17
 
	  10.3
 	  
Costs of Assignment
 	  17
 
	  10.4
 	  
Lessor’s Restrictions
 	  17
 
	  10.5
 	  
Transfer of Shares
 	  17
 
	  10.6
 	  
Assignment by lessor
 	  18
 
	  
 	  
 	  
 
	 11.
 	  
INDEMNITY AND COSTS
 	  18
 
	  
 	  
 	  
 
	  11.1
 	  
Indemnity
 	  18
 
	  11.2
 	  
Costs
 	  18
 
	  
 	  
 	  
 
	  12.
 	  
LESSOR’S COVENANTS
 	  18
 
	  
 	  
 	  
 
	 12.1
 	  
Quiet Enjoyment
 	  18
 
	  12.2
 	  
Lessor to Pay Rates
 	  18
 
	  12.3
 	  
Lessee to Have Access
 	  19
 
	  
 	  
 	  
 
	  13.
 	  
OPTIONS
 	  19
 
	  
 	  
 	  
 
	  13.1A
 	  
Grant of First Option
 	  19
 
	 13.1B
 	  
Grant of Second Option
 	  19
 
	  13.2
 	  
Time for Exercise
 	  19
 
	  13.3
 	  
Annual Rent for Option Term
 	  19
 
	  13.4
 	  
Market Rent Review
 	  19
 
	  13.5
 	  
Dispute as to Rent
 	  20
 
	  13.6
 	  
Percentage Rent for Option Term
 	  20
 
	 13.7A
 	  
Schedule of Changes for First Option Term Lease
 	  20
 
	  13.7B
 	  
Schedule of Changes for Second Option Term Lease
 	  21
 
	  13.8
 	  
Lessor’s Covenant
 	  21
 
	  
 	  
 	  
 
	  14.
 	  
DEFAULT BY LESSEE
 	  22
 
	  
 	  
 	  
 
	 14.1
 	  
Events of Default
 	  22
 
	  14.2
 	  
Consequences of Default
 	  22
 
	  14.3
 	  
Non-Waiver
 	  22
 

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	  15.
 	  
TERMINATION
 	  23
 
	  
 	  
 	  
 
	  15.1
 	  
Condition of Premises
 	  23
 
	  15.2
 	  
Removal of Lessee’s Property
 	  23
 
	  15.3
 	  
Consequences of Non-Removal
 	  23
 
	 15.4
 	  
Holding Over
 	  23
 
	  
 	  
 	  
 
	  16.
 	  
CHANGES IN TAXATION
 	  23
 
	  
 	  
 	  
 
	  16.1
 	  
Parties to Confer
 	  23
 
	  16.2
 	  
Failure to Agree
 	  24
 
	  16.3
 	  
Variation of Lease
 	  25
 
	 16.4
 	  
Transitional Provisions
 	  25
 
	  16.5
 	  
Examples of Changes Invoking Clause
 	  25
 
	  16.6
 	  
Examples of Changes Not Invoking Clause
 	  25
 
	  
 	  
 	  
 
	  17.
 	  
GST
 	  26
 
	  
 	  
 	  
 
	  17.1
 	  
Definition
 	  26
 
	 17.2
 	  
GST Payments
 	  26
 
	  
 	  
 	  
 
	  18.
 	  
LAND TAX
 	  26
 
	  
 	  
 	  
 
	  18.1
 	  
Adjustment of Land Tax Payable by Lessor
 	  26
 
	  18.2
 	  
Failure to Agree
 	  26
 
	  18.3
 	  
Rental Adjustment
 	  26
 
	  
 	  
 	  
 
	 19.
 	  
MISCELLANEOUS PROVISIONS
 	  27
 
	  
 	  
 	  
 
	  19.1
 	  
Notices
 	  27
 
	  19.2
 	  
Assumption of Risk by Lessee
 	  27
 
	  19.3
 	  
Interruption of Services
 	  27
 
	  19.4
 	  
Time to be of the Essence
 	  27
 
	 19.5
 	  
Entire Agreement
 	  27
 
	  19.6
 	  
Severability
 	  27
 
	  19.7
 	  
Completion of Lease and Registration Requirements
 	  28
 
	  19.8
 	  
Governing Law
 	  28
 
	  
 	  
 	  
 
	  20.
 	  
POWER OF ATTORNEY
 	  28
 
	  
 	  
 	  
 
	 21.
 	 
GUARANTEE
 	 28
 
	  
 	  
 	  
 
	 21.1
 	 
Guarantee
 	 28
 
	 21.2
 	 
Indemnity
 	 28
 
	 21.3
 	 
Guarantor’s Liability
 	 29Performance-based Stock Option Agreement between Registrant and John Dorman

EXHIBIT 10.9 
 
DIGITAL INSIGHT CORPORATION 
1999 STOCK PLAN (as amended) 
STOCK OPTION AGREEMENT

 
Capitalized terms used and not otherwise
defined shall have the meaning assigned by the Digital Insight 1999 Stock Plan, as amended (the “Plan”). 
 
NOTICE OF STOCK OPTION GRANT 
 
John Dorman 
[Address] 
[Address] 
 
The Optionee named above (the “Optionee”) has been granted a Stock Option (the “Option”) by the Company to purchase
authorized but unissued or treasury shares of Digital Insight Corporation’s (the “Company”) Common Stock. The Option is granted pursuant to and subject to the Plan and to vesting, and the terms and conditions of this Stock Option
Agreement (also referred to as the “Terms”) that follow: 
 

	           Grant Number: 
	 2247 & 2248 

 

	           Date of Grant: 
	 May 28, 2002 

 

	           Vesting Commencement Date: 
	 May 28, 2002 

 

	           Exercise Price per Share:1 
	 $14.15 

 
          Total Number of Shares 

	           Subject to Option:1 
	 100,000 

 

	           Total Exercise Price:1 
	 $1,415,000 

 

	           Type of Option: 
	         X        Incentive Stock Option

 

	 	 The Company intends that the Option will be treated as an Incentive Stock Option within the meaning of Section 422 of the Code (an
“ISO”) to the maximum extent permissible under all of the ISO rules and restrictions. The balance of any shares acquired upon exercise of the Option (plus shares acquired that no longer qualify as shares acquired upon exercise of an ISO
because of acceleration of vesting of this or other Options), and any shares acquired upon exercise of the Option without compliance with all applicable ISO rules, will be treated as acquired upon exercise of a Nonqualified Stock Option.2 

 

	 Expiration Date:3 
	 May 27, 2012 

 

1 

 

	         Vesting Schedule: 
	 The Option shall vest and first become exercisable on November 28, 2006, subject to the Optionee’s continuing to be a Service
Provider on the applicable date, and subject to acceleration of vesting upon achievement of performance goals, as set forth below. 

 
Performance-Based Acceleration of Vesting: 
 
Vesting of the Option may accelerate with respect to up to 25% of the total Shares subject to the Option in each of the fiscal years 2003,
2004, 2005 and 2006, based on the Company’s achievement of cumulative year-end Revenue Targets and Earnings Per Share (“EPS”) Targets under the Company’s Profit Plan (as defined below) in the preceding fiscal year (the
“Period”), as set forth in more detail below. The Board of Directors will determine the percentage of the Revenue Target and the EPS Target achieved in the preceding Period, and the extent of any Performance-Based Acceleration of vesting
for such Periods no later than March 30 following the end of such Period. 
 
Revenue Targets. Vesting of the Option will accelerate with respect to 12.5% of the total Shares subject to the Option (the “Option Shares”) each year if the Company achieves 100% or more of its Revenue
Target for the preceding Period. If the Company achieves at least 95% but less than 100% of its Revenue Target during such Period, vesting of the Option will accelerate with respect to that percentage of the total Option Shares indicated in the
Partial Acceleration Formula table below. 
 
EPS
Targets. Vesting of the Option will accelerate with respect to 12.5% of the Option Shares each year if the Company achieves 100% or more of its EPS Target for the preceding Period. If the Company achieves at least 90% but less than 100% of the
EPS Target during such Period, vesting of the Option will accelerate with respect to that percentage of the total Option Shares indicated in the table below. 
 
Partial Acceleration Formula 
 

	 	  	 Percent of Target Achieved

	 	  	 90.0%-94.9%

	  	 95.0%-96.9%

	  	 97.0%-98.9%

	  	 99.0%-99.9%

	 Revenue Target Vesting
	  	 0
	  	 2.5% of Option
 Shares
	  	 5% of Option
 Shares
	  	 10% of Option
 Shares

	
	 EPS Target Vesting
	  	 2.5% of Option
 Shares
	  	 5% of Option
 Shares
	  	 7.5% of Option
 Shares
	  	 10% of Option
 Shares

 
Recoup Vesting. Option Shares that are eligible for accelerated vesting based on the Company’s performance during each of the fiscal years 2002, 2003 and 2004 (each, a “Performance Period”), but which do not
vest because the applicable Target is not fully achieved (“Recoup Shares”), carry over to the subsequent year and may vest in the immediately following Period (“Recoup Vesting”), as set forth in more detail below. Recoup Vesting
is permitted only in the Period immediately following the Period in which the Recoup Shares first were eligible for accelerated vesting; Recoup Vesting is not permitted after the second year following the Performance Period. 
 

2 

 
Recoup
Vesting Based on Revenue Target.    If the applicable Revenue Target is not achieved in any Performance Period, then 50% of the Revenue Target Recoup Shares may vest in the Period immediately following the Period in which
such Recoup Shares were first eligible for accelerated vesting (e.g., 2003, 2004 or 2005). Fifty percent of the Revenue Target Recoup Shares will vest with respect to the subsequent Period if Revenues for the subsequent Period exceed that
year’s Profit Plan Revenue Target by 5%. Accelerated vesting of Revenue Target Recoup Shares is in addition to accelerated vesting of the Option Shares that are first eligible to vest as a result of achievement of the Revenue Target in that
Period. 
 
Recoup Vesting Based on EPS
Target.    If the applicable EPS Target is not achieved in any Performance Period, then 50% of the EPS Target Recoup Shares may vest in the Period immediately following the Period in which such Recoup Shares first were
eligible for accelerated vesting (e.g., 2003, 2004 or 2005). Fifty percent of the Recoup Shares will vest with respect to the subsequent Period if EPS results for the subsequent Period exceed that year’s Profit Plan EPS Target by 10%.
Accelerated vesting of EPS Target Recoup Shares is in addition to accelerated vesting of the Option Shares that are first eligible to vest as a result of achievement of the EPS Target in that Period. 
 
Example of Recoup Vesting: 
 
The Company achieves 89% of its Revenue Target during
2002. Vesting does not accelerate with respect to any Option Shares, as determined no later than March 30, 2003. The Company achieves 107% of its Revenue Target during 2003. By March 30, 2004 the Board of Directors determines that 18.75% of the
Option Shares have vested: the 6.25% that are Recoup Shares (50% of the 12.5% that were eligible to accelerate based on 2002 performance) and the 12.5% eligible to accelerate based on 2003 performance. 
 
Definitions: 
 
The following definitions apply for purposes of this Stock
Option Agreement: 
 
“EPS” means the
fully diluted earnings per share of the Company’s stock calculated on the weighted average number of shares outstanding as reported in the Company’s Annual Report based on consolidated net income (before extraordinary items and income
taxes related thereto) of the Company, as determined by the Company’s independent public accountants. Such determination and report shall be made as of the end of each Performance Period with respect to such Period in conformity with generally
accepted accounting principles consistently applied. In the event that the Company adopts the FASB 123 method of accounting for stock option grants during the term of the Option, the Board of Directors may adjust EPS or the applicable EPS Target(s)
to exclude the impact of compensation charges for stock options, in order that the definition of EPS and the determination of achievement of the EPS Target be consistently applied during the term of the Option. 
 
“Profit Plan” means the Company’s annual
consolidated business, operating, financial and sales plan as prepared by management and as may be amended and approved by the Board of Directors. 
 

3 

 
“Revenues” means the gross revenue (whether in cash, barter, property or other consideration) received by the Company as determined by the Company’s independent public accountants. Such determination and report shall
be made as of the end of each annual performance period with respect to such period in conformity with generally accepted accounting principles consistently applied. 
 

	

 
 

4 

 
ADDITIONAL TERMS AND CONDITIONS 
 
1.  Grant of Option.    The Plan Administrator of the Company hereby grants to the Optionee an option to purchase the number of Shares set forth in the Notice of Grant, at the exercise
price per Share set forth in the Notice of Grant (the “Exercise Price”), and subject to the terms and conditions of the Plan, which is incorporated herein by reference. If there is any conflict or inconsistency between these Terms and
those of the Plan, the terms and conditions of the Plan shall govern. 
 
2.   Exercisability of Option.    The Option shall vest and become exercisable during its term in percentage installments of the aggregate number of shares of Common Stock of the
Company in accordance with the Vesting Schedule as set forth in the Notice of Grant and with the applicable provisions of the Plan and this Stock Option Agreement. The Option may be exercised only to the extent the Option is exercisable and vested,
and, during the Optionee’s lifetime, only by the Optionee. In no event may the Optionee exercise the Option after the Expiration Date as provided above. 
 
(a)  Cumulative Exercisability.    To the extent the Optionee does not at the
time of a particular exercise purchase all the shares that the Optionee may then exercise, the Optionee has the right cumulatively thereafter to purchase any of such shares not so purchased until the Option terminates or expires. 
 
(b)  No Fractional
Shares.    Fractional share interests shall be disregarded, but may be cumulated and (to the extent permitted under Section 9) settled in cash. 
 
3.  Exercise of Option.    To the extent exercisable, the Option
may be exercised by the delivery to the Company of an exercise notice in the form attached as Exhibit A (the “Exercise Notice”) which shall state the election to exercise the Option, the number of Shares with respect to which the
Option is being exercised, and such other representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares and the payment or provision
for any applicable employment or other taxes or withholding for taxes thereon. The Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price and any other
payments so required. 
 
No Shares shall be issued
pursuant to the exercise of an Option unless the issuance and exercise complies with Applicable Law. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares. 
 
4.  Method of Payment of Option.    Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee: 
 

	 	•	 	by electronic funds transfer, or by check payable to the order of the 

 

5 

 
Company, in
the full amount of the purchase price of the shares and the amount (if any) required to satisfy any applicable withholding taxes; 4 or 
 

	 	•	 	by notice and third party payment in such manner as may be authorized by the Administrator under a formal cashless exercise program adopted by the Company in
connection with the Plan; or 

 

	 	•	 	by surrender of other Shares which (i) in the case of Shares acquired from the Company, have been owned by the Optionee for more than six (6) months on the date of
surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares. 

 
Other payment methods may be permitted only if expressly authorized by the Administrator with respect to the Option or all options under
and consistent with the terms of the Plan. 
 
5.  Continuance of Employment Required.    The vesting schedule requires continued service through each applicable vesting date as a condition to the vesting of the applicable installment
and rights and benefits under this Agreement. Partial service, even if substantial, during any vesting period will not entitle the Optionee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a
termination of employment or service as provided in Section 6 below or under the Plan. 
 
6.  Effect of Termination of Employment or Death.    If the Optionee ceases to be a Service Provider (including for any parent or any subsidiary), the Option
and all other rights and benefits under this Agreement terminate except that if the termination was not a termination for Cause (as defined below), the Optionee may, at any time within the applicable period below after the date of such termination
(“Severance Date”), exercise the Option to the extent the Option was exercisable on the Severance Date and does not otherwise expire or terminate: 
 

	 	•	 	Termination by the Company or a subsidiary (other than a Termination for Cause (as defined below)), voluntary resignation, which includes a retirement (in either
case other than in anticipation of or in connection with a Termination for Cause) —a period of 3 months. 

 

	 	•	 	Disability (as defined in the Plan) or death of the Optionee —a period of 12 months. 5 

 
Notwithstanding the foregoing exercise periods after the Severance Date, the Option will qualify as an ISO under Section 422 of the Code only if it is exercised within the applicable exercise periods
for ISOs and meets all other requirements of the Code for ISOs. In the case of a Disability that is not a permanent and total disability within the meaning of Section 22(e)(3) of 
 

6 

 
the Code, the Option also must
be exercised within three months of the Severance Date in order to qualify as an “incentive stock option” under Section 422 of the Code. If an Option is not exercised within the applicable exercise periods or does not meet such other
requirements, the Option will be rendered a Nonqualified Stock Option (the “NQSO”). 
 
In case of a Termination for Cause or a voluntary resignation in anticipation of or in connection with a Termination for Cause, the Option shall terminate immediately, in its entirety with respect to
all shares, whether vested or unvested, that remain unexercised at the time of termination. “Termination for Cause” means a termination of service, based upon a finding by the Company, acting in
good faith and based on its reasonable belief at the time, that the Optionee: 
 

	 	•	 	is or has been dishonest, incompetent, or negligent in the discharge of his or her duties to the Company or has refused to perform stated or assigned duties; or

 

	 	•	 	has committed a theft or embezzlement, or a breach of confidentiality or unauthorized disclosure or use of inside information, customer lists, trade secrets or other
confidential information, or a breach of fiduciary duty involving personal profit, or a willful or negligent violation of any law, rule or regulation or of Company rules or policy, in any material respect; or has been convicted of a felony or
misdemeanor (other than minor traffic violations or similar offenses); or 

 

	 	•	 	has materially breached any of the provisions of any agreement with the Company or an affiliated entity; or 

 

	 	•	 	has engaged in unfair competition with, or otherwise acted intentionally in a manner injurious to the reputation, business or assets of the Company; or has induced a
customer to break or terminate any contract with the Company or an affiliate; or has induced any principal for whom the Company (or an affiliate) acts as agent to terminate such agency relationship. 

 
A Termination for Cause shall be deemed to occur (subject to reinstatement
upon a contrary final determination by the Board or Administrator) on the date when the Company first delivers notice to the Participant of a decision to invoke a Termination for Cause and shall be final in all respects on the date final written
notice of a Termination for Cause is delivered to the Participant. 
 
7.  Change in Subsidiary’s Status; Leaves of Absence.    If the Optionee is employed only by an entity that ceases to be a subsidiary, this event is deemed for purposes of
this Option Agreement to be a Termination of the Optionee’s employment by the Company (other than a Termination for Cause), voluntary resignation, or Retirement of the Optionee. Absence from work caused by military service, authorized sick
leave or other leave approved in writing by the Company or the Administrator shall not be 
 

7 

considered a termination of employment by the Company for purposes of Section 6; provided that
unless reemployment upon the expiration of such leave is required by contract or law, such leave is for a period of not more than 90 days. Vesting of the Option shall continue during any paid leave of absence, but shall be tolled during any unpaid
leave of absence; provided, in either case, that the Optionee returns to status as a Service Provider. Unless otherwise provided by the Administrator, if the Optionee does not return to status as a Service Provider following the
Optionee’s leave of absence, the Optionee’s Severance Date shall be deemed to be the date upon which the Company receives notice from the Optionee to that effect or otherwise determines that the Optionee will not be returning to service.
As of such Severance Date, the Option shall be exercisable only to the extent it is vested as of the Severance Date and only to the extent provided in Section 6 hereof. 
 
8.  Additional ISO Provisions. 
 
(a)  ISO Value
Limit.    The completed cover page of the Option identifies the maximum extent to which this Option is intended as an ISO and, to the extent it becomes vested in the ordinary course, may be exercised as an ISO. The
vesting schedule applies first to the ISOs, if any, permitted under this Option. The Option will be a Nonqualified Stock Option, however, as to any additional amount or (as to both the ISO amount stated and any additional shares) if any conditions
to ISO treatment under applicable law are not satisfied for other reasons. 
 
(b)  Notice of Sale.    The Participant agrees to notify the Chief Financial Officer of Digital Insight Corporation of any sale or other disposition of any
Shares if such sale or disposition of any Shares occurs within two years after the Grant Date or within one year after the date of exercise of any Option intended as an ISO. The Optionee understands that such a disposition will disqualify the ISO
and result in different tax consequences to the Optionee. 
 
(c)  Transferability.    In accordance with Section 12 of the Plan and the Code, an ISO is not transferable by the Optionee other than by will or the laws of descent and
distribution, and is exercisable during the Optionee’s lifetime only by the Optionee. 
 
(d)  Tax Withholding.    If any portion of the Option is rendered a NQSO in
accordance with the terms hereof or applicable law, the Participant shall pay or make provision for the payment of any applicable withholding and employment taxes upon exercise of the Option. 
 
9.  Optionee not a
Stockholder.    Neither the Optionee nor any other person entitled to exercise the Option shall have any of the rights or privileges of a stockholder of the Company as to any shares of Common Stock until the issuance and
delivery to him or her of a certificate evidencing the shares registered in his or her name. No adjustment will be made for dividends or other rights as a stockholder as to which the record date is prior to such date of delivery. 
 

8 

 
10.  No Guarantee of Continued Service.    The Optionee acknowledges and agrees that the vesting of Shares pursuant to the Vesting Schedule hereof is earned only by continuing as a Service
Provider at the will of the Company (not through the act of being hired, being granted this Option or acquiring Shares hereunder). The Optionee further acknowledges and agrees that this Option Agreement, the transactions contemplated hereunder and
the vesting schedule set forth herein: (a) do not constitute an express or implied promise of continued engagement as a Service Provider for the vesting period, for any period, or at all, (b) will not interfere in any way with the Optionee’s
right or the Company’s or any of its subsidiary’s right to terminate the Optionee’s relationship as a Service Provider at any time, with or without cause, or for no reason, (c) will not change affect the Optionee’s status as an
employee at will, and (d) will not limit the Company’s right to increase or decrease the Optionee’s other compensation. 
 
11.  Restrictions on Exercise.    The Option may not be exercised if the issuance of such
Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any Applicable Law. 
 
12.  Non-Transferability of Option.    Except as permitted by the Administrator and Applicable
Law, the Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee. The terms of the Plan and this Stock Option
Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 
 
13.  Notices.    Any notice to be given shall be in writing and addressed to the Company at
its principal office, to the attention of the Secretary, and to the Optionee at his or her address of record as it appears on the Notice of Grant, or at such other address as either party may hereafter designate in writing to the other for purposes
of notices in respect of the Option. The Optionee agrees to notify the Company upon any change in the address of record as it appears on the Notice of Grant. 
 
14.  Effect of Award Agreement.    The Option Agreement shall be binding upon and inure to the
benefit of any successor or successors of the Company, except to the extent the Administrator determines otherwise and subject to adjustments under or pursuant to Section 13 of the Plan. 
 
15.  Entire Agreement; Governing Law.    The Plan is incorporated
herein by reference. The Plan and this Stock Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the
Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and the Optionee. The constructive interpretation, performance and enforcement
of this Stock Option Agreement and the Option shall be governed by the internal substantive laws but not the choice of law rules of the State of California. 
 

9 

 
16.  Interpretation; Disputes.    Any dispute regarding the interpretation of this Stock Option Agreement or the Plan shall be submitted by the Optionee or by the Company forthwith to the
Administrator of the Plan which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on all parties. The Optionee hereby agrees to submit any disputes concerning this
Agreement to the Administrator and to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Stock Option Agreement or the Option, including but not limited to,
questions concerning its vesting, exercise or termination, and the Optionee’s rights and duties. 
 
17.  Plan.    The Option and all rights of the Optionee thereunder are subject to, and the
Optionee agrees to be bound by, all of the adjustment and other terms and conditions of the provisions of the Plan. Unless otherwise expressly provided in these Terms, provisions of the Plan that confer discretionary authority on the Administrator
do not (and shall not be deemed to) create any additional rights in the Optionee not expressly set forth in this Stock Option Agreement or in a written amendment hereto signed by or on behalf of the Administrator. The Optionee acknowledges receipt
of a copy of the Plan and accepts the Option subject to all of the Terms. The Optionee acknowledges the Optionee’s review of the Plan and this Stock Option Agreement in their entirety, the opportunity to obtain the advice of counsel prior to
signing this Stock Option Agreement, and a full understanding of it and the Plan. 
 

	 DIGITAL INSIGHT CORPORATION,
 a Delaware corporation
	 	 	 	 AGREED AND ACKNOWLEDGED: 

	
	 By:
	 	 	 	 	 	

	 Its:
	 	 	 	 	 	 (Optionee’s Signature)

	
	 	 	 	 	 	 	 (Address)

	
	 	 	 	 	 	 	 (City, State, Zip Code)

 
CONSENT OF SPOUSE 
 
In consideration of the execution of the foregoing Stock Option Agreement by the Company, I, the spouse of the employee named above, join with my spouse in executing this Agreement and agree to be bound by all of the terms and
provisions of this Agreement and of the Plan. 
 

	
	 Date:
	 	
	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Signature of Spouse

 

10 

 
EXHIBIT A

 
 
DIGITAL INSIGHT CORPORATION 
 
IRREVOCABLE EXERCISE NOTICE 
1999 STOCK PLAN (AS AMENDED)

 
Digital Insight Corporation 
26025 Mureau Road 
Calabasas, CA
91302 
Attention:                                   
      
 
OPTIONEE’S
INFORMATION 
 
 

	
	
	 	 	 	 	 	

	 (Print Name)
	 	 	 	 	 	 (Sign Name)

 
Option No.:
                                        
     
 

	
	 Taxpayer ID No.:                                
    
	  	 	  	 Date:
                                       
 

 
EXERCISE INFORMATION

 
Effective as of today,
            , 20            , the undersigned (the “Optionee”) hereby elects to exercise the
Optionee’s option to purchase the following shares of Common Stock (the “Shares”) of Digital Insight Corporation under and pursuant to the Plan and the Stock Option Agreement dated
            , 20             (the “Stock Option Agreement”): 
 

	 Date of Grant

	    	 Exercise Price
 Per Share

	    	 No. of Shares
 Exercised

	    	 Remaining
 Shares*

	  	 NQSO or
 ISO

	
	
	    	
	    	
	    	
	  	

 
* If the number of
shares exercised is less than all of the shares under this Stock Option Agreement, the Optionee represents that the Optionee will make (and the Optionee authorizes the Company to likewise make) a notation of the partial exercise (indicating the
number of shares and date) on the Optionee’s executed copy of this Stock Option Agreement. 
 
TOTAL PURCHASE PRICE 
 
The total exercise cost for which the Optionee may purchase the shares equals A x B or 
 
$
                                        ,
where: 
 
 

	 	 	 	 	 A =
	  	 No. of Shares Exercised:
                                        ,
and

	
	 	 	 	 	 B =
	  	 Exercise price of $             per
share.

 
 

11 

 
EXHIBIT A

 
APPLICABLE TAX WITHHOLDING (NQSO
ONLY) 
 
The Optionee agrees to remit payment
in full for any applicable withholding or other employment taxes as soon as the Company informs the Optionee of the amount of such taxes due and in no event later than the close of business on the effective date of exercise. 
 
REPRESENTATIONS OF OPTIONEE 
 
The Optionee acknowledges that Optionee has received, read and
understood the Plan and this Stock Option Agreement, incorporated herein by this reference, and is bound by them. 
 
RIGHTS AS SHAREHOLDER 
 
Until the issuance of Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of
the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the optioned shares, notwithstanding the exercise of the Option. The Shares shall be issued to the Optionee as soon as practicable
after the Option is exercised. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 13 of the Plan. 
 
TAX CONSULTATION 
 
The Optionee understands that the Optionee may incur taxes or
otherwise suffer adverse tax consequences as a result of the Optionee’s purchase or disposition of the Shares. The Optionee represents that the Optionee has consulted with such tax and financial consultants the Optionee deems advisable in
connection with the purchase or disposition of the Shares. 
 
DELIVERY AND FORM OF PAYMENT 
 
The
Optionee has enclosed payment in full for the shares as follows: (check applicable box) 
 

	 ̈	 	by cash payment (electronic funds transfer) in the amount of
$                        . 

 

	 	 ̈	 	by check made payable to “Digital Insight Corporation” in the amount of $
                    . 

 

	 	 ̈	 	if approved by the Administrator (such approval to be evidenced by completion of the confirmation below), by delivery of
             shares with a value of $              per share, or $
                     in the aggregate. (If these shares were acquired from the Company, the Optionee represents that they have been owned by
the Optionee for at least six months.) 

 
Administrator Authorization Confirmed By: 
 

12 

 
Name: 
Title: General Counsel 
 
 ̈ by “cashless exercise” through a broker. 
 
Financing for this exercise will be provided by the broker designated below, who will be forwarding to the Company an amount covering the
total exercise cost and all applicable withholding taxes. The Optionee understands that this exercise will not be effective and the shares will not be issued until the Company has received the full amount payable described above, and all
other conditions of any applicable cashless exercise program have been satisfied. 
 
REGISTRATION/DELIVERY INSTRUCTIONS 
 
The certificate representing the shares issuable shall be registered in the Optionee’s name as follows: 
 
Name:
                                        
                                        

 
Address:
                                        
                                     
 
City, State & Zip:
                                        
                     
 
Delivery of the Optionee’s stock certificate(s) is to go to: (check applicable box) 
 
 ̈ Optionee’s address as indicated above. 
 
 ̈
Optionee’s broker at the address indicated below. 
 
The
Optionee hereby authorizes the Company to forward the Optionee’s stock certificate(s) and a copy of these irrevocable delivery instructions to the following: 
 
Broker Name: 
 
Address: 
 
City, State & Zip: 
 
My Account Number: 
 
SHARE REGISTRATION STATUS 
 
I understand that the issuance of the shares as to which the Option is exercised is covered by a current SEC registration on Form S-8. I
represent that I have received and read the 
 

13 

 
Prospectus dated June 21,
2002, as it may be supplemented from time to time. 
 

	 Submitted by:
  
 OPTIONEE:
	 	 	 	 Accepted by:
  
 DIGITAL INSIGHT CORPORATION:

	
	 	 	 	 	 	 	 By:

	 Signature
	 	 	 	 Its: 
	 	 
	 	 	 	 	 	 	 Print Name: 

 
 

	 Address:
	 	 	 	 Address:

	
	 	 	 	 	 	 	 26025 Mureau Road
 Calabasas, CA 91302

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	                                      
                Date Received

 

FOR COMPANY USE ONLY 
Aggregate Exercise
Price: $                                      

 
Withholding Amount: $
                                        
     
 
Total Amount
Received: $
                                       
  
 
Receipt Of Funds Confirmed
By: 
DIGITAL INSIGHT CORPORATION 
 
By:
                                        
                     
 
Its:
                                        
                     
 
 
 

 

	

 
 

14 

 
1 Subject to adjustment under Section 13 of the Plan. 
 
2 Shares subject to the Option intended to be treated as acquired upon the exercise of an ISO may cease to be ISOs for various reasons. The ISO limit for these purposes is a maximum of $100,000 in each calendar year divided by the
applicable exercise price for the Option and any concurrent or previously granted options that are intended as ISOs under this Plan or any other plan of the company or any parent or subsidiary or predecessor company and that first vest in the
applicable year. Also see Section 6(a) of the Plan. 
 
3 Represents date no later than the day prior to the 10th anniversary of the Date of Grant, subject, however, to early termination if the Optionee’s employment terminates or in certain other circumstances. See
Sections 8, 10, 13 and 17 of the Plan and Sections 5, 6 and 7 of the Terms for exceptions and additional details regarding possible early termination of the Option. 
 
4 Under current laws and regulations, withholding for income, franchise and FICA taxes is not required at the time of exercise if and to the extent the Option is exercised as an ISO. Changes to these laws and regulations have been
proposed. See also Section 8 and the Stock Option Agreement ISO schedule. 
 
5 ISO restrictions and the terms of this Option limit exercise as an ISO to the
following post-employment periods: retirement, resignation, or discharge—3 months; death or disability—12 months. 
 

15

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