Document:

exv10w1

Exhibit 10.1

EXECUTION COPY

Commercial
Paper Dealer Agreement

4(2) Program

Between:

Dr Pepper Snapple Group, Inc., as Issuer

and

J.P. Morgan Securities LLC, as Dealer

Concerning Notes to be issued pursuant to an

Issuing and Paying Agency Agreement dated as of December 10, 2010

between the Issuer and

JPMorgan Chase Bank, National Association, as Issuing and Paying Agent

Dated as of December 10, 2010

 

 

Commercial Paper Dealer Agreement

4(2) Program

This agreement (the “Agreement”) sets forth the understandings between the Issuer and the Dealer,
each named on the cover page hereof, in connection with the issuance and sale by the Issuer of its
short-term promissory notes (the “Notes”) through the Dealer.

Certain terms used in this Agreement are defined in Section 6 hereof.

The Addendum to this Agreement, and any Annexes or Exhibits described in this Agreement or such
Addendum, are hereby incorporated into this Agreement and made fully a part hereof.

	1.	 	Offers, Sales and Resales of Notes.

	 	1.1	 	While (i) the Issuer has and shall have no obligation to sell the Notes to the
Dealer or to permit the Dealer to arrange any sale of the Notes for the account of the
Issuer, and (ii) the Dealer has and shall have no obligation to purchase the Notes from
the Issuer or to arrange any sale of the Notes for the account of the Issuer, the
parties hereto agree that in any case where the Dealer purchases Notes from the Issuer,
or arranges for the sale of Notes by the Issuer, such Notes will be purchased or sold
by the Dealer in reliance on the representations, warranties, covenants and agreements
of the Issuer contained herein or made pursuant hereto and on the terms and conditions
and in the manner provided herein.
	 
	 	1.2	 	So long as this Agreement shall remain in effect, and in addition to the
limitations contained in Section 1.7 hereof, the Issuer shall not, without the consent
of the Dealer, offer, solicit or accept offers to purchase, or sell, any Notes except
(a) in transactions with one or more dealers which may from time to time after the date
hereof become dealers with respect to the Notes by executing with the Issuer one or
more agreements which contain provisions substantially identical to those contained in
Section 1 of this Agreement, of which the Issuer hereby undertakes to provide the
Dealer prompt notice or (b) in transactions with the other dealers listed on the
Addendum hereto, which are executing agreements with the Issuer which contain
provisions substantially identical to Section 1 of this Agreement contemporaneously
herewith. In no event shall the Issuer offer, solicit or accept offers to purchase, or
sell, any Notes directly on its own behalf in transactions with persons other than
broker-dealers as specifically permitted in this Section 1.2.
	 
	 	1.3	 	The Notes shall be in a minimum denomination of $250,000 or integral multiples
of $1,000 in excess thereof, will bear such interest rates, if interest bearing, or
will be sold at such discount from their face amounts, as shall be agreed upon by the
Dealer and the Issuer, shall have a maturity not exceeding 364 days from the date of
issuance and may
have such terms as are specified in Exhibit C hereto or the Private Placement
Memorandum. The Notes shall not contain any provision for extension, renewal or
automatic “rollover.”
	 
	 	1.4	 	The authentication and issuance of, and payment for, the Notes shall be
effected in accordance with the Issuing and Paying Agency Agreement, and the Notes
shall be either individual physical certificates or book-entry notes evidenced by one
or more master notes (each, a “Master Note”) registered in the name of The Depository
Trust Company

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	 	 	 	(“DTC”) or its nominee, in the form or forms annexed to the Issuing and
Paying Agency Agreement.
	 
	 	1.5	 	If the Issuer and the Dealer shall agree on the terms of the purchase of any
Note by the Dealer or the sale of any Note arranged by the Dealer (including, but not
limited to, agreement with respect to the date of issue, purchase price, principal
amount, maturity and interest rate or interest rate index and margin (in the case of
interest-bearing Notes) or discount thereof (in the case of Notes issued on a discount
basis), and appropriate compensation for the Dealer’s services hereunder) pursuant to
this Agreement, the Issuer shall cause such Note to be issued and delivered in
accordance with the terms of the Issuing and Paying Agency Agreement and payment for
such Note shall be made by the purchaser thereof, either directly or through the
Dealer, to the Issuing and Paying Agent, for the account of the Issuer. Except as
otherwise agreed, in the event that the Dealer is acting as an agent and a purchaser
shall either fail to accept delivery of or make payment for a Note on the date fixed
for settlement, the Dealer shall promptly notify the Issuer, and if the Dealer has
theretofore paid the Issuer for the Note, the Issuer will promptly return such funds to
the Dealer against its return of the Note to the Issuer, in the case of a certificated
Note, and upon notice of such failure in the case of a book-entry Note. If such
failure occurred for any reason other than default by the Dealer, the Issuer shall
reimburse the Dealer on an equitable basis for the Dealer’s loss of the use of such
funds for the period such funds were credited to the Issuer’s account.
	 
	 	1.6	 	The Dealer and the Issuer hereby establish and agree to observe the following
procedures in connection with offers, sales and subsequent resales or other transfers
of the Notes:

	 	(a)	 	Offers and sales of the Notes by or through the Dealer shall be
made only to: (i) investors reasonably believed by the Dealer to be Qualified
Institutional Buyers or Institutional Accredited Investors and (ii) non-bank
fiduciaries or agents that will be purchasing Notes for one or more accounts,
each of which is reasonably believed by the Dealer to be an Institutional
Accredited Investor.
	 
	 	(b)	 	Resales and other transfers of the Notes by the holders thereof
shall be made only in accordance with the restrictions in the legend described
in clause (e) below.
	 
	 	(c)	 	No general solicitation or general advertising shall be used in
connection with the offering of the Notes. Without limiting the generality of
the foregoing, without the prior written approval of the other party hereto,
neither party hereto shall issue any press release or place or publish any
“tombstone” or other advertisement relating to the Notes.
	 
	 	(d)	 	No sale of Notes to any one purchaser shall be for less than
$250,000 principal or face amount, and no Note shall be issued in a smaller
principal or face amount. If the purchaser is a non-bank fiduciary acting on
behalf of others, each person for whom
such purchaser is acting must purchase at least $250,000 principal or face
amount of Notes.
	 
	 	(e)	 	Offers and sales of the Notes by the Issuer through the Dealer
acting as agent for the Issuer shall be made in accordance with Section 4(2) of
the Securities Act, and shall be subject to the restrictions described in the
legend appearing on Exhibit A hereto. A legend substantially to the effect of
such Exhibit A shall appear as part of the Private Placement Memorandum used in
connection with offers and sales of Notes

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	 	 	 	hereunder, as well as on each
individual certificate representing a Note and each Master Note representing
book-entry Notes offered and sold pursuant to this Agreement.
	 
	 	(f)	 	The Dealer shall furnish or make available or shall have
furnished or made available to each purchaser of Notes for which it has acted
as the dealer a copy of the then-current Private Placement Memorandum unless
such purchaser has previously received or had made available to it a copy of
the Private Placement Memorandum as then in effect. The Private Placement
Memorandum shall expressly state that any person to whom Notes are offered
shall have an opportunity to ask questions of, and receive information from,
the Issuer and the Dealer and shall provide the names, addresses and telephone
numbers of the persons from whom information regarding the Issuer may be
obtained.
	 
	 	(g)	 	The Issuer agrees, for the benefit of the Dealer and each of
the holders and prospective purchasers from time to time of the Notes that, if
at any time the Issuer shall not be subject to Section 13 or 15(d) of the
Exchange Act, the Issuer will furnish, upon request and at its expense, to the
Dealer and to holders and prospective purchasers of Notes information required
by Rule 144A(d)(4)(i) in compliance with Rule 144A(d).
	 
	 	(h)	 	In the event that any Note offered or to be offered by the
Dealer would be ineligible for resale under Rule 144A, the Issuer shall
immediately notify the Dealer (by telephone, confirmed in writing) of such fact
and shall promptly prepare and deliver to the Dealer an amendment or supplement
to the Private Placement Memorandum describing the Notes that are ineligible,
the reason for such ineligibility and any other relevant information relating
thereto.
	 
	 	(i)	 	The Issuer represents that it is not currently issuing
commercial paper in the United States market in reliance upon the exemption
provided by Section 3(a)(3) of the Securities Act. The Issuer agrees that, if
it shall issue commercial paper after the date hereof in reliance upon such
exemption (a) the proceeds from the sale of the Notes will be segregated from
the proceeds of the sale of any such commercial paper by being placed in a
separate account; (b) the Issuer will institute appropriate corporate
procedures to ensure that the offers and sales of notes issued by the Issuer
pursuant to the Section 3(a)(3) exemption are not integrated with offerings and
sales of Notes hereunder; and (c) the Issuer will comply with each of the
requirements of Section 3(a)(3) of the Securities Act in selling commercial
paper or other short-term debt securities other than the Notes in the United
States.

	 	1.7	 	The Issuer hereby represents and warrants to the Dealer, in connection with
offers, sales and resales of Notes, as follows:

	 	(a)	 	The Issuer hereby confirms to the Dealer that (except as
permitted by Section 1.6(i)) within the preceding six months neither the Issuer
nor any person other than the Dealer or the other dealers referred to in
Section 1.2 hereof acting on behalf of the Issuer has offered or sold any
Notes, or any substantially similar security of the Issuer (including, without
limitation, medium-term notes issued by the Issuer), to, or solicited offers to
buy any such security from, any person other than the Dealer or the other
dealers referred to in Section 1.2 hereof. The Issuer also agrees that (except
as permitted by Section 1.6(i)), as long as the Notes are being offered for
sale by the

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	 	 	 	Dealer and the other dealers referred to in Section 1.2 hereof as
contemplated hereby and until at least six months after the offer of Notes
hereunder has been terminated, neither the Issuer nor any person other than the
Dealer or the other dealers referred to in Section 1.2 hereof (except as
contemplated by Section 1.2 hereof) will offer the Notes or any substantially
similar security of the Issuer for sale to, or solicit offers to buy any such
security from, any person other than the Dealer or the other dealers referred
to in Section 1.2 hereof, it being understood that such agreement is made with
a view to bringing the offer and sale of the Notes within the exemption
provided by Section 4(2) of the Securities Act and Rule 506 thereunder and
shall survive any termination of this Agreement. The Issuer hereby represents
and warrants that it has not taken or omitted to take, and will not take or
omit to take, any action that would cause the offering and sale of Notes
hereunder to be integrated with any other offering of securities, whether such
offering is made by the Issuer or some other party or parties.
	 
	 	(b)	 	The Issuer represents and agrees that the proceeds of the sale
of the Notes are not currently contemplated to be used for the purpose of
buying, carrying or trading securities within the meaning of Regulation T and
the interpretations thereunder by the Board of Governors of the Federal Reserve
System. In the event that the Issuer determines to use such proceeds for the
purpose of buying, carrying or trading securities, whether in connection with
an acquisition of another company or otherwise, the Issuer shall give the
Dealer at least five Business Days’ prior written notice to that effect. The
Issuer shall also give the Dealer prompt notice of the actual date that it
commences to purchase securities with the proceeds of the Notes. Thereafter,
in the event that the Dealer purchases Notes as principal and does not resell
such Notes on the day of such purchase, to the extent necessary to comply with
Regulation T and the interpretations thereunder, the Dealer will sell such
Notes either (i) only to offerees it reasonably believes to be Qualified
Institutional Buyers or to Qualified Institutional Buyers it reasonably
believes are acting for other Qualified Institutional Buyers, in each case in
accordance with Rule 144A or (ii) in a manner which would not cause a violation
of Regulation T and the interpretations thereunder.

	2.	 	Representations and Warranties of Issuer.
	 
	 	 	The Issuer represents and warrants that:

	 	2.1	 	The Issuer (i) is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, except where the
failure to be in good standing would not have a material adverse effect on the
business, financial position, results of operations or prospects of the Issuer and its
subsidiaries, taken as a whole, or on the performance by the Issuer of its obligations
under the Notes, and (ii) has all the requisite power and authority to execute, deliver
and perform its obligations under the Notes, this Agreement and the Issuing and Paying
Agency Agreement.
	 
	 	2.2	 	This Agreement has been duly authorized, executed and delivered by the Issuer
and constitutes a legal, valid and binding obligation of the Issuer enforceable against
the Issuer in accordance with its terms, subject to applicable bankruptcy, insolvency
and similar laws affecting creditors’ rights generally and general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at law) and
except as rights to indemnity and contribution may be limited by federal or state law.

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	 	2.3	 	The Issuing and Paying Agency Agreement has been duly authorized, executed and
delivered by the Issuer and constitutes a legal, valid and binding obligation of the
Issuer enforceable against the Issuer in accordance with its terms, subject to
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and general principles of equity (regardless of whether enforcement is sought
in a proceeding in equity or at law).
	 
	 	2.4	 	The Notes have been duly authorized, and when issued as provided in the Issuing
and Paying Agency Agreement, will be duly and validly issued and will constitute legal,
valid and binding obligations of the Issuer enforceable against the Issuer in
accordance with their terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law).
	 
	 	2.5	 	The offer and sale of the Notes in the manner contemplated hereby do not
require registration of the Notes under the Securities Act, pursuant to the exemption
from registration contained in Section 4(2) thereof, and no indenture in respect of the
Notes is required to be qualified under the Trust Indenture Act of 1939, as amended.
	 
	 	2.6	 	The Notes will rank at least pari passu with all other unsecured and
unsubordinated indebtedness of the Issuer.
	 
	 	2.7	 	No consent or action of, or filing or registration with, any governmental or
public regulatory body or authority, including the SEC, is required to authorize, or is
otherwise required on the part of the Issuer in connection with the execution, delivery
or performance of, this Agreement, the Notes or the Issuing and Paying Agency
Agreement, except as may be required by the securities or Blue Sky laws of the various
states in connection with the offer and sale of the Notes.
	 
	 	2.8	 	Neither the execution and delivery of this Agreement and the Issuing and Paying
Agency Agreement, nor the issuance of the Notes in accordance with the Issuing and
Paying Agency Agreement, nor the fulfillment of or compliance with the terms and
provisions hereof or thereof by the Issuer, will (i) result in the creation or
imposition of any mortgage, lien, charge or encumbrance of any nature whatsoever upon
any of the properties or assets of the Issuer, which mortgage, lien, charge or
encumbrance would have a material adverse effect on the business, financial position,
results of operations or prospects of the Issuer and its subsidiaries, taken as a
whole, or on the performance by the Issuer of its obligations under this Agreement, the
Notes or the Issuing and Paying Agency Agreement, or (ii) violate or result in a breach
or a default under any of the terms of the charter documents or by-laws of the Issuer,
any contract or instrument to which the Issuer is a party or by which it or its
property is bound, or any law or regulation, or any order, writ, injunction or decree
of any court or government instrumentality, to which the Issuer is subject or by which
it or its property is bound, which violation, breach or default would have a material
adverse effect on the business, financial position, results of
operations or prospects of the Issuer and its subsidiaries, taken as a whole, or the
ability of the Issuer to perform its obligations under this Agreement, the Notes or
the Issuing and Paying Agency Agreement.
	 
	 	2.9	 	Except as may be described in the Company Information, there is no litigation
or governmental proceeding pending, or to the knowledge of the Issuer threatened,
against or affecting the Issuer or any of its subsidiaries which would result in a
material adverse

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	 	 	 	change in the business, financial position, results of operations or
prospects of the Issuer and its subsidiaries, taken as a whole, the ability of the
Issuer to perform its obligations under this Agreement, the Notes or the Issuing and
Paying Agency Agreement.
	 
	 	2.10	 	The Issuer is not an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.
	 
	 	2.11	 	Neither the Private Placement Memorandum nor the Company Information, in each
case, taken as a whole, contains any untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.
	 
	 	2.12	 	Each (a) issuance of Notes by the Issuer hereunder and (b) amendment or
supplement of the Private Placement Memorandum shall be deemed a representation and
warranty by the Issuer to the Dealer, as of the date thereof, that, both before and
after giving effect to such issuance and after giving effect to such amendment or
supplement, (i) the representations and warranties given by the Issuer set forth in
this Section 2 remain true and correct on and as of such date as if made on and as of
such date, (ii) in the case of an issuance of Notes, the Notes being issued on such
date have been duly and validly issued and constitute legal, valid and binding
obligations of the Issuer, enforceable against the Issuer in accordance with their
terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding in equity or at
law) and (iii) in the case of an issuance of Notes, since the date of the most recent
Private Placement Memorandum, there has been no material adverse change in the
business, financial position, results of operations or prospects of the Issuer and its
subsidiaries, taken as a whole, which has not been disclosed to the Dealer in writing.

	3.	 	Covenants and Agreements of Issuer.
	 
	 	 	The Issuer covenants and agrees that:

	 	3.1	 	The Issuer will give the Dealer prompt notice (but in any event prior to any
subsequent issuance of Notes hereunder) of any amendment to, modification of or waiver
with respect to, the Notes or the Issuing and Paying Agency Agreement, including a
complete copy of any such amendment, modification or waiver.
	 
	 	3.2	 	The Issuer shall, whenever there shall occur any change in the business,
financial position, results of operations or prospects of the Issuer and its
subsidiaries, taken as a whole, or any development or occurrence in relation to the
Issuer that would be material to holders of the Notes or potential holders of the Notes
(including any downgrading or receipt of any notice of intended or potential
downgrading or any review for potential change in the rating accorded any of the
securities of the Issuer by any nationally recognized statistical rating organization
which has published a rating of the Notes),
promptly, and in any event prior to any subsequent issuance of Notes hereunder,
notify the Dealer (by telephone, confirmed in writing) of such change, development
or occurrence.
	 
	 	3.3	 	The Issuer, subject to compliance with any applicable confidentiality
restrictions, shall from time to time furnish to the Dealer such information as the
Dealer may reasonably request, including, without limitation, any press releases or
material provided by the

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	 	 	 	Issuer to any national securities exchange or rating agency,
regarding (i) the Issuer’s operations and financial condition, (ii) the due
authorization and execution of the Notes and (iii) the Issuer’s ability to pay the
Notes as they mature.
	 
	 	3.4	 	The Issuer will take all such action as the Dealer may reasonably request to
ensure that each offer and each sale of the Notes will comply with any applicable state
Blue Sky laws; provided, however, that the Issuer shall not be obligated to file any
general consent to service of process or to qualify as a foreign corporation in any
jurisdiction in which it is not so qualified or subject itself to taxation in respect
of doing business in any jurisdiction in which it is not otherwise so subject.
	 
	 	3.5	 	The Issuer will not be in default of any of its obligations hereunder or under
the Notes or the Issuing and Paying Agency Agreement, at any time that any of the Notes
are outstanding.
	 
	 	3.6	 	The Issuer shall not issue Notes hereunder until the Dealer shall have received
(a) an opinion of counsel to the Issuer (which counsel may be in-house counsel except
with respect to matters of the laws of the State of New York), addressed to the Dealer,
satisfactory in form and substance to the Dealer, (b) a copy of the executed Issuing
and Paying Agency Agreement as then in effect, (c) a copy of the resolutions adopted by
the Board of Directors of the Issuer, satisfactory in form and substance to the Dealer
and certified by the Secretary or similar officer of the Issuer, authorizing execution
and delivery by the Issuer of this Agreement, the Issuing and Paying Agency Agreement
and the Notes and consummation by the Issuer of the transactions contemplated hereby
and thereby, (d) prior to the issuance of any book-entry Notes represented by a master
note registered in the name of DTC or its nominee, a copy of the executed Letter of
Representations among the Issuer, the Issuing and Paying Agent and DTC and of the
executed master note, (e) prior to the issuance of any Notes in physical form, a copy
of such form (unless attached to this Agreement or the Issuing and Paying Agency
Agreement) and (f) such other certificates, opinions, letters and documents as the
Dealer shall have reasonably requested.
	 
	 	3.7	 	The Issuer shall reimburse the Dealer for all of the Dealer’s reasonable
out-of-pocket expenses related to this Agreement, including expenses incurred in
connection with its preparation and negotiation, and the transactions contemplated
hereby (including, but not limited to, the printing and distribution of the Private
Placement Memorandum), and, if applicable, for the reasonable and documented fees and
out-of-pocket expenses of the Dealer’s counsel.

	4.	 	Disclosure.

	 	4.1	 	The Private Placement Memorandum and its contents (other than the Dealer
Information) shall be the sole responsibility of the Issuer. The Private Placement
Memorandum shall contain a statement expressly offering an opportunity for each
prospective purchaser to
ask questions of, and receive answers from, the Issuer concerning the offering of
Notes and to obtain relevant additional information which the Issuer possesses or
can acquire without unreasonable effort or expense.
	 
	 	4.2	 	The Issuer agrees to promptly furnish the Dealer the Company Information as it
becomes available.

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	 	4.3	 	(a) The Issuer further agrees to notify the Dealer promptly upon the
occurrence of any event relating to or affecting the Issuer that would cause the
Company Information then in existence, taken as a whole, to include an untrue statement
of a material fact or to omit to state a material fact necessary in order to make the
statements contained therein, in light of the circumstances under which they are made,
not misleading.

	 	(b)	 	In the event that the Issuer gives the Dealer notice pursuant
to Section 4.3(a) and the Dealer notifies the Issuer that it then has Notes it
is holding in inventory, the Issuer agrees promptly to supplement or amend the
Private Placement Memorandum so that the Private Placement Memorandum, as
amended or supplemented, shall not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and the Issuer shall make such supplement or amendment available to
the Dealer.
	 
	 	(c)	 	In the event that (i) the Issuer gives the Dealer notice
pursuant to Section 4.3(a), (ii) the Dealer does not notify the Issuer that it
is then holding Notes in inventory and (iii) the Issuer chooses not to promptly
amend or supplement the Private Placement Memorandum in the manner described in
clause (b) above, then all solicitations and sales of Notes shall be suspended
until such time as the Issuer has so amended or supplemented the Private
Placement Memorandum, and made such amendment or supplement available to the
Dealer.

	5.	 	Indemnification and Contribution.

	 	5.1	 	The Issuer will indemnify and hold harmless the Dealer, each individual,
corporation, partnership, trust, association or other entity controlling the Dealer,
any affiliate of the Dealer or any such controlling entity and their respective
directors, officers, employees, partners, incorporators, shareholders, servants,
trustees and agents (hereinafter the “Indemnitees”) against any and all liabilities,
penalties, suits, causes of action, losses, damages, claims, costs and expenses
(including, without limitation, fees and disbursements of counsel) or judgments of
whatever kind or nature (each a “Claim”), imposed upon, incurred by or asserted against
the Indemnitees arising out of or based upon (i) any allegation that the Private
Placement Memorandum, the Company Information or any information provided by the Issuer
to the Dealer included (as of any relevant time) or includes an untrue statement of a
material fact or omitted (as of any relevant time) or omits to state any material fact
necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading or (ii) arising out of or based upon the breach by the
Issuer of any agreement, covenant or representation made in or pursuant to this
Agreement. This indemnification shall not apply to the extent that the Claim arises
out of or is based upon Dealer Information.
	 
	 	5.2	 	Provisions relating to claims made for indemnification under this Section 5 are
set forth in Exhibit B to this Agreement.
	 
	 	5.3	 	In order to provide for just and equitable contribution in circumstances in
which the indemnification provided for in this Section 5 is held to be unavailable or
insufficient to hold harmless the Indemnitees, although applicable in accordance with
the terms of this Section 5, the Issuer shall contribute to the aggregate costs
incurred by the Dealer in connection with any Claim in the proportion of the respective
economic interests of the Issuer and the Dealer; provided, however, that such
contribution by the Issuer shall be in

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	 	 	 	an amount such that the aggregate costs incurred
by the Dealer do not exceed the aggregate of the commissions and fees earned by the
Dealer hereunder with respect to the issue or issues of Notes to which such Claim
relates. The respective economic interests shall be calculated by reference to the
aggregate proceeds to the Issuer of the Notes issued hereunder and the aggregate
commissions and fees earned by the Dealer hereunder.

	6.	 	Definitions.

	 	6.1	 	“Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in New York are generally authorized
or obligated by law or executive order to close.
	 
	 	6.2	 	“Claim” shall have the meaning set forth in Section 5.1.
	 
	 	6.3	 	“Company Information” at any given time shall mean the Private Placement
Memorandum together with, to the extent applicable, (i) the Issuer’s most recent report
on Form 10-K filed with the SEC and each report on Form 10-Q or 8-K filed by the Issuer
with the SEC since the most recent Form 10-K, (ii) the Issuer’s most recent annual
audited financial statements and each interim financial statement or report prepared
subsequent thereto, if not included in item (i) above, (iii) the Issuer’s other
publicly available recent reports, including, but not limited to, any publicly
available filings or reports provided to its shareholders, (iv) any other information
or disclosure prepared pursuant to Section 4.3 hereof and (v) any information prepared
or approved by the Issuer for dissemination to investors or potential investors in the
Notes.
	 
	 	6.4	 	“Dealer Information” shall mean material concerning the Dealer provided by the
Dealer in writing expressly for inclusion in the Private Placement Memorandum.
	 
	 	6.5	 	“Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended.
	 
	 	6.6	 	“Indemnitee” shall have the meaning set forth in Section 5.1.
	 
	 	6.7	 	“Institutional Accredited Investor” shall mean an institutional investor that
is an accredited investor within the meaning of Rule 501 under the Securities Act and
that has such knowledge and experience in financial and business matters that it is
capable of evaluating and bearing the economic risk of an investment in the Notes,
including, but not limited to, a bank, as defined in Section 3(a)(2) of the Securities
Act, or a savings and loan association or other institution, as defined in Section
3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary
capacity.
	 
	 	6.8	 	“Issuing and Paying Agency Agreement” shall mean the issuing and paying agency
agreement described on the cover page of this Agreement, as such agreement may be
amended or supplemented from time to time.
	 
	 	6.9	 	“Issuing and Paying Agent” shall mean the party designated as such on the cover
page of this Agreement, as issuing and paying agent under the Issuing and Paying Agency
Agreement, or any successor thereto in accordance with the Issuing and Paying Agency
Agreement.

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	 	6.10	 	“Non-bank fiduciary or agent” shall mean a fiduciary or agent other than (a) a
bank, as defined in Section 3(a)(2) of the Securities Act, or (b) a savings and loan
association, as defined in Section 3(a)(5)(A) of the Securities Act.
	 
	 	6.11	 	“Private Placement Memorandum” shall mean offering materials prepared in
accordance with Section 4 (including materials referred to therein or incorporated by
reference therein, if any) provided to purchasers and prospective purchasers of the
Notes, and shall include amendments and supplements thereto which may be prepared from
time to time in accordance with this Agreement (other than any amendment or supplement
that has been completely superseded by a later amendment or supplement).
	 
	 	6.12	 	“Qualified Institutional Buyer” shall have the meaning assigned to that term in
Rule 144A under the Securities Act.
	 
	 	6.13	 	“Rule 144A” shall mean Rule 144A under the Securities Act.
	 
	 	6.14	 	“SEC” shall mean the U.S. Securities and Exchange Commission.
	 
	 	6.15	 	“Securities Act” shall mean the U.S. Securities Act of 1933, as amended.

	7.	 	General

	 	7.1	 	Unless otherwise expressly provided herein, all notices under this Agreement to
parties hereto shall be in writing and shall be effective when received at the address
of the respective party set forth in the Addendum to this Agreement.
	 
	 	7.2	 	This Agreement shall be governed by and construed in accordance with the laws
of the State of New York, without regard to its conflict of laws provisions.
	 
	 	7.3	 	The Issuer agrees that any suit, action or proceeding brought by the Issuer
against the Dealer in connection with or arising out of this Agreement or the Notes or
the offer and sale of the Notes shall be brought solely in the United States federal
courts located in the Borough of Manhattan or the courts of the State of New York
located in the Borough of Manhattan. EACH OF THE DEALER AND THE ISSUER WAIVES ITS
RIGHT TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.
	 
	 	7.4	 	This Agreement may be terminated, at any time, by the Issuer, upon one Business
Day’s prior notice to such effect to the Dealer, or by the Dealer upon one Business
Day’s prior notice to such effect to the Issuer. Any such termination, however, shall
not affect the obligations of the Issuer under Sections 3.7, 5 and 7.3 hereof or the
respective representations, warranties, agreements, covenants, rights or
responsibilities of the parties made or arising prior to the termination of this
Agreement.
	 
	 	7.5	 	This Agreement is not assignable by either party hereto without the written
consent of the other party; provided, however, that, upon 15 days’ prior written notice
to the Issuer, the
Dealer may assign its rights and obligations under this Agreement to any affiliate
of the Dealer.

11

 

	 	7.6	 	This Agreement may be signed in any number of counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.
	 
	 	7.7	 	This Agreement is for the exclusive benefit of the parties hereto, and their
respective permitted successors and assigns hereunder, and shall not be deemed to give
any legal or equitable right, remedy or claim to any other person whatsoever.
	 
	 	7.8	 	The Issuer acknowledges and agrees that (i) the purchase and sale of the Notes
pursuant to this Agreement is an arm’s-length commercial transaction between the
Issuer, on the one hand, and the Dealer, on the other, (ii) in connection therewith and
with the process leading to such transaction the Dealer is acting solely as a principal
and not the agent or fiduciary of the Issuer, (iii) the Dealer has not assumed an
advisory or fiduciary responsibility in favor of the Issuer with respect to the
offerings contemplated hereby or the process leading thereto (irrespective of whether
the Dealer has advised or is currently advising the Issuer on other matters) or any
other obligation to the Issuer except the obligations expressly set forth in this
Agreement and (iv) the Issuer has consulted its own legal and financial advisors to the
extent it deemed appropriate. The Issuer agrees that it will not claim that the Dealer
has rendered advisory services of any nature or respect, or owes a fiduciary or similar
duty to the Issuer, in connection with such transaction or the process leading thereto.
	 
	 	7.9	 	In the case of any agreement by a Dealer to purchase a Note hereunder (other
than as agent) which provides for a settlement date that is three Business Days or more
after the date of such agreement, the obligation of the Dealer to purchase the Note
under such agreement shall be subject to the following conditions:

	 	(a)	 	the representations and warranties given by the Issuer set
forth above in Section 2 shall be true and correct on and as of the settlement
date as if made on and as of such date, and the Issuer shall have performed
all of its obligations hereunder to be performed as of such date,
	 
	 	(b)	 	since the date of the most recent Company Information, there
shall have been no material adverse change in the business, financial position,
results of operations or prospects of the Issuer and its subsidiaries, taken as
a whole, (whether occurring before or after such agreement was entered into)
which was not disclosed to the Dealer in writing prior to the time such
agreement was entered into, and the Issuer shall not be in default of any of
its obligations hereunder, under the Notes or under the Issuing and Paying
Agency Agreement,
	 
	 	(c)	 	on or after the date of such agreement there shall not have
occurred any of the following: (i) a suspension or material limitation in
trading in securities generally on the New York Stock Exchange; (ii) a
suspension or material limitation in trading in the Issuer’s securities on the
New York Stock Exchange; (iii) a general moratorium on commercial banking
activities declared by either Federal or New York State authorities or a
material disruption in commercial banking or securities settlement or clearance
services in the United States; (iv) the outbreak or escalation of hostilities
involving the United States or the declaration by the United States of a
national
emergency or war or (v) the occurrence of any other calamity or crisis or any
change in financial, political or economic conditions in the United States or
elsewhere, if the effect of any such event specified in clause (iv) or (v) in
the judgment of the Dealer

12

 

	 	 	 	makes it impracticable or inadvisable to proceed with
the offering or the delivery of the Note on the terms and in the manner
contemplated in the Private Placement Memorandum,
	 
	 	(d)	 	on or after the date of such agreement, (i) no downgrading
shall have occurred in the rating accorded the Issuer’s debt securities by any
nationally recognized statistical rating organization and (ii) no such
organization shall have publicly announced that it has under surveillance or
review, with possible negative implications, its rating of any of the Issuer’s
debt securities.

This Agreement supersedes all prior agreements and understandings (whether written or oral) between
the Issuer and the Dealer with respect to the subject matter hereof.

13

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date and year first above written.

	 	 	 	 	 	 	 

	Dr Pepper Snapple Group, Inc., as Issuer	 	J.P. Morgan Securities LLC, as Dealer
	 
	By: 	 /s/ Martin M. Ellen	 	By: 	 /s/ Johanna C. Foley
	 	Name: 	 Martin M. Ellen	 	 	Name: 	 Johanna C. Foley
	 	Title:	 Executive Vice President & Chief Financial Officer	 	 	Title:	 Executive Director

14

 

Addendum

The following additional clauses shall apply to the Agreement and be deemed a part thereof.

	1.	 	The other dealers referred to in clause (b) of Section 1.2 of the Agreement are Goldman,
Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

	2.	 	The addresses of the respective parties for purposes of notices under Section 7.1 are as
follows:

For the Issuer:

Address: Dr Pepper Snapple Group, Inc., 5301 Legacy Drive, Plano, Texas 75024

Attention: James L. Baldwin, Jr., Executive Vice President and General Counsel

Telephone number: 972-673-8784

Fax number: 972-673-8130

For the Dealer:

Address: 383 Madison Avenue, 3rd Floor, New York, New York 10179

Attention: Short Term Fixed Income Division

Telephone number: 212-834-5543

Fax number: 212-834-6172

 

 

Exhibit A

Form of Legend for Private Placement Memorandum and Notes

THE NOTES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY OTHER APPLICABLE SECURITIES LAW, AND OFFERS AND SALES THEREOF MAY BE MADE ONLY IN COMPLIANCE
WITH AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER WILL BE DEEMED TO REPRESENT THAT (I)
IT HAS BEEN AFFORDED AN OPPORTUNITY TO INVESTIGATE MATTERS RELATING TO THE ISSUER AND THE NOTES,
(II) IT IS NOT ACQUIRING SUCH NOTE WITH A VIEW TO ANY DISTRIBUTION THEREOF AND (III) IT IS EITHER
(A)(1) AN INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)
UNDER THE ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”) AND (2)(i) PURCHASING NOTES FOR ITS OWN
ACCOUNT, (ii) A BANK (AS DEFINED IN SECTION 3(a)(2) OF THE ACT) OR A SAVINGS AND LOAN ASSOCIATION
OR OTHER INSTITUTION (AS DEFINED IN SECTION 3(a)(5)(A) OF THE ACT) ACTING IN ITS INDIVIDUAL OR
FIDUCIARY CAPACITY OR (iii) A FIDUCIARY OR AGENT (OTHER THAN SUCH A BANK OR SAVINGS AND LOAN
ASSOCIATION OR OTHER INSTITUTION) PURCHASING NOTES FOR ONE OR MORE ACCOUNTS EACH OF WHICH ACCOUNTS
IS SUCH AN INSTITUTIONAL ACCREDITED INVESTOR; OR (B) A QUALIFIED INSTITUTIONAL BUYER (“QIB”) WITHIN
THE MEANING OF RULE 144A UNDER THE ACT THAT IS ACQUIRING NOTES FOR ITS OWN ACCOUNT OR FOR ONE OR
MORE ACCOUNTS, EACH OF WHICH ACCOUNTS IS A QIB; AND THE PURCHASER ACKNOWLEDGES THAT IT IS AWARE
THAT THE SELLER MAY RELY UPON THE EXEMPTION FROM THE REGISTRATION PROVISIONS OF SECTION 5 OF THE
ACT PROVIDED BY RULE 144A. BY ITS ACCEPTANCE OF A NOTE, THE PURCHASER THEREOF SHALL ALSO BE DEEMED
TO AGREE THAT ANY RESALE OR OTHER TRANSFER THEREOF WILL BE MADE ONLY (A) IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE ACT, EITHER (1) TO THE ISSUER OR TO ONE OF THE PLACEMENT AGENTS
DESIGNATED BY THE ISSUER AS A PLACEMENT AGENT FOR THE NOTES (COLLECTIVELY, THE “PLACEMENT AGENTS”),
NONE OF WHICH SHALL HAVE ANY OBLIGATION TO ACQUIRE SUCH NOTE, (2) THROUGH A PLACEMENT AGENT TO AN
INSTITUTIONAL ACCREDITED INVESTOR OR A QIB, OR (3) TO A QIB IN A TRANSACTION THAT MEETS THE
REQUIREMENTS OF RULE 144A AND (B) IN MINIMUM AMOUNTS OF $250,000.

 

 

Exhibit B

Further Provisions Relating to Indemnification

	(a)	 	The Issuer agrees to reimburse each Indemnitee for all expenses (including reasonable fees
and disbursements of internal and external counsel) as they are incurred by it in connection
with investigating or defending any loss, claim, damage, liability or action in respect of
which indemnification may be sought under Section 5 of the Agreement (whether or not it is a
party to any such proceedings).

	(b)	 	Promptly after receipt by an Indemnitee of notice of the existence of a Claim, such
Indemnitee will, if a claim in respect thereof is to be made against the Issuer, notify the
Issuer in writing of the existence thereof; provided that (i) the omission so to notify the
Issuer will not relieve the Issuer from any liability which it may have hereunder unless and
except to the extent it did not otherwise learn of such Claim and such failure results in the
forfeiture by the Issuer of substantial rights and defenses, and (ii) the omission so to
notify the Issuer will not relieve it from liability which it may have to an Indemnitee
otherwise than on account of this indemnity agreement. In case any such Claim is made against
any Indemnitee and it notifies the Issuer of the existence thereof, the Issuer will be
entitled to participate therein, and to the extent that it may elect by written notice
delivered to the Indemnitee, to assume the defense thereof, with counsel reasonably
satisfactory to such Indemnitee; provided that if the defendants in any such Claim include
both the Indemnitee and the Issuer, and the Indemnitee shall have concluded that there may be
legal defenses available to it which are different from or additional to those available to
the Issuer, the Issuer shall not have the right to direct the defense of such Claim on behalf
of such Indemnitee, and the Indemnitee shall have the right to select separate counsel to
assert such legal defenses on behalf of such Indemnitee. Upon receipt of notice from the
Issuer to such Indemnitee of the election of the Issuer so to assume the defense of such Claim
and approval by the Indemnitee of counsel, the Issuer will not be liable to such Indemnitee
for expenses incurred thereafter by the Indemnitee in connection with the defense thereof
(other than reasonable costs of investigation) unless (i) the Indemnitee shall have employed
separate counsel in connection with the assertion of legal defenses in accordance with the
proviso to the next preceding sentence (it being understood, however, that the Issuer shall
not be liable for the expenses of more than one separate counsel (in addition to any local
counsel in the jurisdiction in which any Claim is brought), approved by the Dealer,
representing the Indemnitee who is party to such Claim), (ii) the Issuer shall not have
employed counsel reasonably satisfactory to the Indemnitee to represent the Indemnitee within
a reasonable time after notice of existence of the Claim or (iii) the Issuer has authorized in
writing the employment of counsel for the Indemnitee. The indemnity, reimbursement and
contribution obligations of the Issuer hereunder shall be in addition to any other liability
the Issuer may otherwise have to an Indemnitee and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the Issuer and any
Indemnitee. The Issuer agrees that without the Dealer’s prior written consent, it will not
settle, compromise or consent to the entry of any judgment in any Claim in respect of which
indemnification may be sought under the indemnification provision of the Agreement (whether or
not the Dealer or any other Indemnitee is an actual or potential party to such Claim), unless
such settlement, compromise or consent (i) includes an unconditional release of each
Indemnitee from all liability arising out of such Claim and (ii) does not include a statement
as to or an admission of fault, culpability or failure to act, by or on behalf of any
Indemnitee.

 

 

Exhibit C

Statement of Terms for Interest —

Bearing Commercial Paper Notes of Dr Pepper Snapple Group, Inc.

THE PROVISIONS SET FORTH BELOW ARE QUALIFIED TO THE EXTENT APPLICABLE BY THE TRANSACTION

SPECIFIC [PRICING] [PRIVATE PLACEMENT MEMORANDUM] SUPPLEMENT (THE “SUPPLEMENT”) (IF ANY) SENT TO
EACH PURCHASER AT THE TIME OF THE TRANSACTION.

1. General. (a) The obligations of the Issuer to which these terms apply (each a
“Note”) are represented by one or more Master Notes (each, a “Master Note”) issued in the name
of (or of a nominee for) The Depository Trust Company (“DTC”), which Master Note includes the
terms and provisions for the Issuer’s Interest-Bearing Commercial Paper Notes that are set forth
in this Statement of Terms, since this Statement of Terms constitutes an integral part of the
Underlying Records as defined and referred to in the Master Note.

(b) “Business Day” means any day other than a Saturday or Sunday that is neither a legal
holiday nor a day on which banking institutions are authorized or required by law, executive
order or regulation to be closed in New York City and, with respect to LIBOR Notes (as defined
below) is also a London Business Day. “London Business Day” means, a day, other than a Saturday
or Sunday, on which dealings in deposits in U.S. dollars are transacted in the London interbank
market.

2. Interest. (a) Each Note will bear interest at a fixed rate (a “Fixed Rate Note”)
or at a floating rate (a “Floating Rate Note”).

(b) The Supplement sent to each holder of such Note will describe the following terms: (i)
whether such Note is a Fixed Rate Note or a Floating Rate Note and whether such Note is an
Original Issue Discount Note (as defined below); (ii) the date on which such Note will be issued
(the “Issue Date”); (iii) the Stated Maturity Date (as defined below); (iv) if such Note is a
Fixed Rate Note, the rate per annum at which such Note will bear interest, if any, and the
Interest Payment Dates; (v) if such Note is a Floating Rate Note, the Base Rate, the Index
Maturity, the Interest Reset Dates, the Interest Payment Dates and the Spread and/or Spread
Multiplier, if any (all as defined below), and any other terms relating to the particular method
of calculating the interest rate for such Note; and (vi) any other terms applicable specifically
to such Note. “Original Issue Discount Note” means a Note which has a stated redemption price
at the Stated Maturity Date that exceeds its Issue Price by more than a specified de minimis
amount and which the Supplement indicates will be an “Original Issue Discount Note”.

(c) Each Fixed Rate Note will bear interest from its Issue Date at the rate per annum specified
in the Supplement until the principal amount thereof is paid or made available for payment.
Interest on each Fixed Rate Note will be payable on the dates specified in the Supplement (each
an “Interest Payment Date” for a Fixed Rate Note) and on the Maturity Date (as defined below).
Interest on Fixed Rate Notes will be computed on the basis of a 360-day year of twelve 30-day
months.

 

 

If any Interest Payment Date or the Maturity Date of a Fixed Rate Note falls on a day that is
not a Business Day, the required payment of principal, premium, if any, and/or interest will be
payable on the next succeeding Business Day, and no additional interest will accrue in respect
of the payment made on that next succeeding Business Day.

(d) The interest rate on each Floating Rate Note for each Interest Reset Period (as defined
below) will be determined by reference to an interest rate basis (a “Base Rate”) plus or minus a
number of basis points (one basis point equals one-hundredth of a percentage point) (the
“Spread”), if any, and/or multiplied by a certain percentage (the “Spread Multiplier”), if any,
until the principal thereof is paid or made available for payment. The Supplement will
designate which of the following Base Rates is applicable to the related Floating Rate Note: (a)
the CD Rate (a “CD Rate Note”), (b) the Commercial Paper Rate (a “Commercial Paper Rate Note”),
(c) the Federal Funds Rate (a “Federal Funds Rate Note”), (d) LIBOR (a “LIBOR Note”), (e) the
Prime Rate (a “Prime Rate Note”), (f) the Treasury Rate (a “Treasury Rate Note”) or (g) such
other Base Rate as may be specified in such Supplement.

The rate of interest on each Floating Rate Note will be reset daily, weekly, monthly, quarterly
or semi-annually (the “Interest Reset Period”). The date or dates on which interest will be
reset (each an “Interest Reset Date”) will be, unless otherwise specified in the Supplement, in
the case of Floating Rate Notes which reset daily, each Business Day, in the case of Floating
Rate Notes (other than Treasury Rate Notes) that reset weekly, the Wednesday of each week; in
the case of Treasury Rate Notes that reset weekly, the Tuesday of each week; in the case of
Floating Rate Notes that reset monthly, the third Wednesday of each month; in the case of
Floating Rate Notes that reset quarterly, the third Wednesday of March, June, September and
December; and in the case of Floating Rate Notes that reset semiannually, the third Wednesday of
the two months specified in the Supplement. If any Interest Reset Date for any Floating Rate
Note is not a Business Day, such Interest Reset Date will be postponed to the next day that is a
Business Day, except that in the case of a LIBOR Note, if such Business Day is in the next
succeeding calendar month, such Interest Reset Date shall be the immediately preceding Business
Day. Interest on each Floating Rate Note will be payable monthly, quarterly or semiannually (the
“Interest Payment Period”) and on the Maturity Date. Unless otherwise specified in the
Supplement, and except as provided below, the date or dates on which interest will be payable
(each an “Interest Payment Date” for a Floating Rate Note) will be, in the case of Floating Rate
Notes with a monthly Interest Payment Period, on the third Wednesday of each month; in the case
of Floating Rate Notes with a quarterly Interest Payment Period, on the third Wednesday of
March, June, September and December; and in the case of Floating Rate Notes with a semiannual
Interest Payment Period, on the third Wednesday of the two months specified in the Supplement.
In addition, the Maturity Date will also be an Interest Payment Date.

If any Interest Payment Date for any Floating Rate Note (other than an Interest Payment Date
occurring on the Maturity Date) would otherwise be a day that is not a Business Day, such
Interest Payment Date shall be postponed to the next day that is a Business Day, except that in
the case of a LIBOR Note, if such Business Day is in the next succeeding calendar month, such
Interest Payment Date shall be the immediately preceding Business Day. If the Maturity Date of
a Floating Rate Note falls on a day that is not a Business Day, the payment of principal and
interest will be made on the next succeeding Business Day, and no interest on such payment shall
accrue for the period from and after such maturity.

 

 

Interest payments on each Interest Payment Date for Floating Rate Notes will include accrued
interest from and including the Issue Date or from and including the last date in respect of
which interest has been paid, as the case may be, to, but excluding, such Interest Payment Date.
On the Maturity Date, the interest payable on a Floating Rate Note will include interest
accrued to, but excluding, the Maturity Date. Accrued interest will be calculated by
multiplying the principal amount of a Floating Rate Note by an accrued interest factor. This
accrued interest factor will be computed by adding the interest factors calculated for each day
in the period for which accrued interest is being calculated. The interest factor (expressed as
a decimal) for each such day will be computed by dividing the interest rate applicable to such
day by 360, in the cases where the Base Rate is the CD Rate, Commercial Paper Rate, Federal
Funds Rate, LIBOR or Prime Rate, or by the actual number of days in the year, in the case where
the Base Rate is the Treasury Rate. The interest rate in effect on each day will be (i) if such
day is an Interest Reset Date, the interest rate with respect to the Interest Determination Date
(as defined below) pertaining to such Interest Reset Date, or (ii) if such day is not an
Interest Reset Date, the interest rate with respect to the Interest Determination Date
pertaining to the next preceding Interest Reset Date, subject in either case to any adjustment
by a Spread and/or a Spread Multiplier.

The “Interest Determination Date” where the Base Rate is the CD Rate or the Commercial Paper
Rate will be the second Business Day next preceding an Interest Reset Date. The Interest
Determination Date where the Base Rate is the Federal Funds Rate or the Prime Rate will be the
Business Day next preceding an Interest Reset Date. The Interest Determination Date where the
Base Rate is LIBOR will be the second London Business Day next preceding an Interest Reset Date.
The Interest Determination Date where the Base Rate is the Treasury Rate will be the day of the
week in which such Interest Reset Date falls when Treasury Bills are normally auctioned.
Treasury Bills are normally sold at auction on Monday of each week, unless that day is a legal
holiday, in which case the auction is held on the following Tuesday or the preceding Friday. If
an auction is so held on the preceding Friday, such Friday will be the Interest Determination
Date pertaining to the Interest Reset Date occurring in the next succeeding week.

The “Index Maturity” is the period to maturity of the instrument or obligation from which the
applicable Base Rate is calculated.

The “Calculation Date,” where applicable, shall be the earlier of (i) the tenth calendar day
following the applicable Interest Determination Date or (ii) the Business Day preceding the
applicable Interest Payment Date or Maturity Date.

All times referred to herein reflect New York City time, unless otherwise specified.

The Issuer shall specify in writing to the Issuing and Paying Agent which party will be the
calculation agent (the “Calculation Agent”) with respect to the Floating Rate Notes. The
Calculation Agent will provide the interest rate then in effect and, if determined, the interest
rate which will become effective on the next Interest Reset Date with respect to such Floating
Rate Note to the Issuing and Paying Agent as soon as the interest rate with respect to such
Floating Rate Note has been determined and as soon as practicable after any change in such
interest rate.

All percentages resulting from any calculation on Floating Rate Notes will be rounded to the
nearest one hundred-thousandth of a percentage point, with five-one millionths of a percentage
point rounded

 

 

upwards. For example, 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655). All
dollar amounts used in or resulting from any calculation on Floating Rate Notes will be rounded,
in the case of U.S. dollars, to the nearest cent or, in the case of a foreign currency, to the
nearest unit (with one-half cent or unit being rounded upwards).

CD Rate Notes

“CD Rate” means the rate on any Interest Determination Date for negotiable certificates of
deposit having the Index Maturity as published by the Board of Governors of the Federal Reserve
System (the “FRB”) in “Statistical Release H.15(519), Selected Interest Rates” or any successor
publication of the FRB (“H.15(519)”) under the heading “CDs (Secondary Market)”.

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, the CD
Rate will be the rate on such Interest Determination Date set forth in the daily update of
H.15(519), available through the world wide website of the FRB at
http://www.federalreserve.gov/releases/h15/Update, or any successor site or publication or other
recognized electronic source used for the purpose of displaying the applicable rate (“H.15 Daily
Update”) under the caption “CDs (Secondary Market)”.

If such rate is not published in either H.15(519) or H.15 Daily Update by 3:00 p.m. on the
Calculation Date, the Calculation Agent will determine the CD Rate to be the arithmetic mean of
the secondary market offered rates as of 10:00 a.m. on such Interest Determination Date of three
leading nonbank dealers1 in negotiable U.S. dollar certificates of deposit in New
York City selected by the Calculation Agent for negotiable U.S. dollar certificates of deposit
of major United States money center banks of the highest credit standing in the market for
negotiable certificates of deposit with a remaining maturity closest to the Index Maturity in
the denomination of $5,000,000.

If the dealers selected by the Calculation Agent are not quoting as set forth above, the CD Rate
will remain the CD Rate then in effect on such Interest Determination Date.

Commercial Paper Rate Notes

“Commercial Paper Rate” means the Money Market Yield (calculated as described below) of the rate
on any Interest Determination Date for commercial paper having the Index Maturity, as published
in H.15(519) under the heading “Commercial Paper-Nonfinancial”.

If the above rate is not published in H.15(519) by 3:00 p.m. on the Calculation Date, then the
Commercial Paper Rate will be the Money Market Yield of the rate on such Interest Determination
Date for commercial paper of the Index Maturity as published in H.15 Daily Update under the
heading “Commercial Paper-Nonfinancial”.

If by 3:00 p.m. on such Calculation Date such rate is not published in either H.15(519) or H.15
Daily Update, then the Calculation Agent will determine the Commercial Paper Rate to be the
Money Market Yield of the arithmetic mean of the offered rates as of 11:00 a.m. on such Interest
Determination Date of three leading dealers of U.S. dollar commercial paper in New York City
selected by the Calculation Agent for commercial paper of the Index Maturity placed for an
industrial

 

			
	1	 	Such nonbank dealers referred to in
this Statement of Terms may include affiliates of the Dealer.

 

 

issuer whose bond rating is “AA,” or the equivalent, from a nationally recognized statistical
rating organization.

If the dealers selected by the Calculation Agent are not quoting as mentioned above, the
Commercial Paper Rate with respect to such Interest Determination Date will remain the
Commercial Paper Rate then in effect on such Interest Determination Date.

“Money Market Yield” will be a yield calculated in accordance with the following formula:

	 	 	 	 	 	 	 

	 

	 	Money Market Yield =

	 	D x 360	 	x 100

	 

	 	 	360 – (D x M)	 
	 

	 	 	 

where “D” refers to the applicable per annum rate for commercial paper quoted on a bank discount
basis and expressed as a decimal and “M” refers to the actual number of days in the interest
period for which interest is being calculated.

Federal Funds Rate Notes

“Federal Funds Rate” means the rate on any Interest Determination Date for federal funds as
published in H.15(519) under the heading “Federal Funds (Effective)” and displayed on Reuters
Page (as defined below) FEDFUNDS1 (or any other page as may replace the specified page on that
service) (“Reuters Page FEDFUNDS1”) under the heading EFFECT.

If the above rate does not appear on Reuters Page FEDFUNDS1 or is not so published by 3:00 p.m.
on the Calculation Date, the Federal Funds Rate will be the rate on such Interest Determination
Date as published in H.15 Daily Update under the heading “Federal Funds/(Effective)”.

If such rate is not published as described above by 3:00 p.m. on the Calculation Date, the
Calculation Agent will determine the Federal Funds Rate to be the arithmetic mean of the rates
for the last transaction in overnight U.S. dollar federal funds arranged by each of three
leading brokers of Federal Funds transactions in New York City selected by the Calculation Agent
prior to 9:00 a.m. on such Interest Determination Date.

If the brokers selected by the Calculation Agent are not quoting as mentioned above, the Federal
Funds Rate will remain the Federal Funds Rate then in effect on such Interest Determination
Date.

“Reuters Page” means the display on the Reuters 3000 Xtra Service, or any successor service, on
the page or pages specified in this Statement of Terms or the Supplement, or any replacement
page on that service.

 

 

LIBOR Notes

The London Interbank offered rate (“LIBOR”) means, with respect to any Interest Determination
Date, the rate for deposits in U.S. dollars having the Index Maturity that appears on the
Designated LIBOR Page as of 11:00 a.m., London time, on such Interest Determination Date.

If no rate appears, LIBOR will be determined on the basis of the rates at approximately 11:00
a.m., London time, on such Interest Determination Date at which deposits in U.S. dollars are
offered to prime banks in the London interbank market by four major banks in such market
selected by the Calculation Agent for a term equal to the Index Maturity and in principal amount
equal to an amount that in the Calculation Agent’s judgment is representative for a single
transaction in U.S. dollars in such market at such time (a “Representative Amount”). The
Calculation Agent will request the principal London office of each of such banks to provide a
quotation of its rate. If at least two such quotations are provided, LIBOR will be the
arithmetic mean of such quotations. If fewer than two quotations are provided, LIBOR for such
interest period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in
New York City, on such Interest Determination Date by three major banks in New York City,
selected by the Calculation Agent, for loans in U.S. dollars to leading European banks, for a
term equal to the Index Maturity and in a Representative Amount; provided, however, that if
fewer than three banks so selected by the Calculation Agent are providing such quotations, the
then existing LIBOR rate will remain in effect for such Interest Payment Period.

“Designated LIBOR Page” means the display on the Reuters 3000 Xtra Service (or any successor
service) on the “LIBOR01” page (or any other page as may replace such page on such service) for
the purpose of displaying the London interbank rates of major banks.

Prime Rate Notes

“Prime Rate” means the rate on any Interest Determination Date as published in H.15(519) under
the heading “Bank Prime Loan”.

If the above rate is not published in H.15(519) prior to 3:00 p.m. on the Calculation Date, then
the Prime Rate will be the rate on such Interest Determination Date as published in H.15 Daily
Update opposite the caption “Bank Prime Loan”.

If the rate is not published prior to 3:00 p.m. on the Calculation Date in either H.15(519) or
H.15 Daily Update, then the Calculation Agent will determine the Prime Rate to be the arithmetic
mean of the rates of interest publicly announced by each bank that appears on the Reuters Screen
US PRIME1 Page (as defined below) as such bank’s prime rate or base lending rate as of 11:00
a.m., on that Interest Determination Date.

If fewer than four such rates referred to above are so published by 3:00 p.m. on the Calculation
Date, the Calculation Agent will determine the Prime Rate to be the arithmetic mean of the prime
rates or base lending rates quoted on the basis of the actual number of days in the year divided
by 360 as of the close of business on such Interest Determination Date by three major banks in
New York City selected by the Calculation Agent.

 

 

If the banks selected are not quoting as mentioned above, the Prime Rate will remain the Prime
Rate in effect on such Interest Determination Date.

“Reuters Screen US PRIME1 Page” means the display designated as page “US PRIME1” on the Reuters
Monitor Money Rates Service (or such other page as may replace the US PRIME1 page on that
service for the purpose of displaying prime rates or base lending rates of major United States
banks).

Treasury Rate Notes

“Treasury Rate” means:

(1) the rate from the auction held on the Interest Determination Date (the “Auction”) of direct
obligations of the United States (“Treasury Bills”) having the Index Maturity specified in the
Supplement under the caption “INVEST RATE” on the display on the Reuters Page designated as
USAUCTION10 (or any other page as may replace that page on that service) or the Reuters Page
designated as USAUCTION11 (or any other page as may replace that page on that service), or

(2) if the rate referred to in clause (1) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield (as defined below) of the rate for the applicable
Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Auction High”, or

(3) if the rate referred to in clause (2) is not so published by 3:00 p.m. on the related
Calculation Date, the Bond Equivalent Yield of the auction rate of the applicable Treasury Bills
as announced by the United States Department of the Treasury, or

(4) if the rate referred to in clause (3) is not so announced by the United States Department of
the Treasury, or if the Auction is not held, the Bond Equivalent Yield of the rate on the
particular Interest Determination Date of the applicable Treasury Bills as published in
H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”, or

(5) if the rate referred to in clause (4) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date of the applicable
Treasury Bills as published in H.15 Daily Update, under the caption “U.S. Government
Securities/Treasury Bills/Secondary Market”, or

(6) if the rate referred to in clause (5) is not so published by 3:00 p.m. on the related
Calculation Date, the rate on the particular Interest Determination Date calculated by the
Calculation Agent as the Bond Equivalent Yield of the arithmetic mean of the secondary market
bid rates, as of approximately 3:30 p.m. on that Interest Determination Date, of three primary
United States government securities dealers selected by the Calculation Agent, for the issue of
Treasury Bills with a remaining maturity closest to the Index Maturity specified in the
Supplement, or

(7) if the dealers so selected by the Calculation Agent are not quoting as mentioned in clause
(6), the Treasury Rate in effect on the particular Interest Determination Date.

 

 

“Bond Equivalent Yield” means a yield (expressed as a percentage) calculated in accordance with the
following formula:

	 	 	 	 	 

	Bond Equivalent Yield =

	 	D x N	 	x 100

	 	360 – (D x M)	 
	 	 	 

where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount
basis and expressed as a decimal, “N” refers to 365 or 366, as the case may be, and “M” refers
to the actual number of days in the applicable Interest Reset Period.

	3.	 	Final Maturity. The Stated Maturity Date for any Note will be the date so
specified in the Supplement, which shall be no later than 364 days from the date of issuance.
On its Stated Maturity Date, or any date prior to the Stated Maturity Date on which the
particular Note becomes due and payable by the declaration of acceleration, each such date
being referred to as a Maturity Date, the principal amount of each Note, together with accrued
and unpaid interest thereon, will be immediately due and payable.

	4.	 	Events of Default. The occurrence of any of the following shall constitute an
“Event of Default” with respect to a Note: (i) default in any payment of principal of or
interest on such Note (including on a redemption thereof); (ii) the Issuer or any Significant
Subsidiary (as defined below) or a group of Subsidiaries (as defined below) that, taken
together (as of the latest available consolidated financial results of the Issuer), would
constitute a Significant Subsidiary makes any compromise arrangement with its creditors
generally including the entering into any form of moratorium with its creditors generally;
(iii) a court having jurisdiction shall enter a decree or order for relief in respect of the
Issuer or any Significant Subsidiary in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or there shall be appointed a
receiver, administrator, liquidator, custodian, trustee or sequestrator (or similar officer)
with respect to the whole or substantially the whole of the assets of the Issuer and any such
decree, order or appointment is not removed, discharged or withdrawn within 60 days
thereafter; or (iv) the Issuer or any Significant Subsidiary or a group of Subsidiaries that,
taken together (as of the latest available consolidated financial results of the Issuer),
would constitute a Significant Subsidiary shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or consent to the
appointment of or taking possession by a receiver, administrator, liquidator, assignee,
custodian, trustee or sequestrator (or similar official), with respect to the whole or
substantially the whole of the assets of the Issuer, such Significant Subsidiary or such group
of Subsidiaries, as applicable, or make any general assignment for the benefit of its
creditors. Upon the occurrence of an Event of Default, the principal of each obligation
evidenced by such Note (together with interest accrued and unpaid thereon) shall become,
without any notice or demand, immediately due and payable. “Significant Subsidiary” means any
Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of
Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date of this Agreement. “Subsidiary” of any specified Person means any corporation,
association or other business entity of which more than 50% of the total voting power of
shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person
or a combination thereof. “Person” means any individual, corporation, partnership, joint
venture, association, joint-stock

 

 

	 	 	company, trust, unincorporated organization, limited liability company or government or other
entity. “Capital Stock” means: (1) in the case of a corporation, corporate stock; (2) in the
case of an association or business entity, any and all shares, interests, participations, rights
or other equivalents (however designated) of corporate stock; (3) in the case of a partnership
or limited liability company, partnership interests (whether general or limited) or membership
interests; and (4) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the issuing Person,
but excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

	5.	 	Obligation Absolute. No provision of the Issuing and Paying Agency Agreement
under which the Notes are issued shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on each Note at the times,
place and rate, and in the coin or currency, herein prescribed.

	6.	 	Supplement. Any term contained in the Supplement shall supersede any conflicting
term contained herein.exv4w2

Exhibit 4.2

	Form: 07L
Licence: 05-11-667
Licensee: Softdocs
Matthews Folbigg Pty Limited

	PRIVACY NOTE: Section 31B of the Real Property Act 1900 (RP Act) authorises the Registrar
General to collect the information required by this form for the establishment and maintenance of
the Real Property Act Register. Section 96B RP Act requires that the Register is made available
to any person for search upon payment of a fee, if any.

	(B) LODGED BY
(C) LESSOR

	NOVOGEN LABORATORIES PTY LTD ABN 42 002 489 947 TENANCY:

	STAMP DUTY

	Office of State Revenue use only

	Property leased: if appropriate, specify the part or premises

	Folio Identifier 2/204204

	Document Collection Box Name. Address or DX, Telephone and Customer Account Number if any CODE
307V Acc. No. 123198L Matthews Folbigg Pty Limited DX 8233 PARRAMATTA L
Tel: 9635 7966
Reference (optional): TJD.100203

	HYPERION PROPERTY SYNDICATES LIMITED ACN 108 292 717

	(A) TORRENS TITLE

	The lessor leases to the lessee the property referred to above.

	(D) Encumbrances (if applicable):

	(E) LESSEE

	hereto.

	in the Department of

	(F)

	(G) 1. TERM Five (5) years

	2. COMMENCING DATE 1 September 2010

	3. TERMINATING DATE 31 August 2015

	4. With an OPTION TO RENEW for a period of N/A set out in clause N/A of N/A

	5. With an OPTION TO PURCHASE set out in clause            N/A of N/A

	6. Together with and reserving the RIGHTS set out in clause N/A of N/A

	7.Incorporates the provisions or additional material set out in ANNEXURE(S)A

	8.Incorporates the provisions set out in            N.A. Lands, Land and Property Information Division as No(s). N/A
LEASE            Leave this space clear. Affix additional
_ ,., , pages to the left-hand corner. New South Wales
Real Property Act 1900

	9. The RENT is set out in            item 11 of Reference Schedule to Annexure “A”

Page 1

 

	Form: 07L

	DATE / /

	(H) Certified correct for the purposes of the Real Property’ Act 1900 SEE ANNEXURE A FOR
EXECUTION and executed on behalf of the corporation named below by the authorised person(s)
whose signature(s) appear(s) below pursuant to the authority specified.

	Corporation: HYPERION PROPERTY SYNDICATES LIMITED ACN
108 292 717

	Authority: Section 127(1) of the Corporations Act 2001

	Signature of authorised person:

	Signature of authorised person:

	Name of authorised person: Name of authorised person: Office held :

	Office held:

	Note: where applicable, the lessor must complete the statutory declaration
below

	Certified correct for the purposes of the Real Property Act 1900 SEE
ANNEXURE A FOR EXECUTION and executed on behalf of the corporation named below by the
authorised person(s) whose signature(s) appear(s) below pursuant to the authority specified.

	Corporation: NOVOGEN LABORATORIES PTY LTD ABN 42 002 489 947

	Authority: Section 127(1) of the Corporations Act 2001

	Signature of authorised person:

	Signature of authorised person:

	Name of authorised person: Name of authorised person: Office held:

	Office held:

	(I) STATUTORY DECLARATION*

	I,
solemnly and sincerely declare that -
1. The time for the exercise of option to renew/purchase in expired lease No .. has ended; and

	Page 2 of 57
Number additional pages sequentially

	All handwriting must be in block capitals.

	2. The lessee under that lease has not exercised the option.

	I make this solemn declaration conscientiously believing the same to be true and by virtue of
the provisions of the Oaths Act 1900 and I certify this lease correct for the purposes of the
Real Property Act 1900.

	Made and subscribed at .. in the State of New South Wales
on ...................... in the presence of:
Signature of witness: Signature of lessor:

	Name of witness: Address of witness:

	Qualification of witness: ? Justice of Peace ? Practising Solicitor ? Other qualified witness
[specify]

	* As the Department of Lands may not be able to provide the services of a justice of the
peace or other qualified witness, the statutory declaration should be signed and witnessed
prior to lodgment of the form at Land and Property Information Division.

Page 2

 

THIS PAGE AND THE FOLLOWING PAGES CONSTITUTE ANNEXURE “A” TO LEASE BETWEEN HYPERION PROPERTY
SYNDICATES LIMITED ACN 108 292 717 (LESSOR) AND NOVOGEN LABORATORIES PTY LTD ABN 42 002 489 947
(LESSEE)

					
	 	 	 	 	 
	DATED THIS
	 	DAY OF
	 	2010
	 

SUMMARY OF LEASE PARTICULARS

	 	 	 

	Item 1

	 	The Lessor (Clause 1.1):
	 
	 	 
	 

	 	HYPERION PROPERTY SYNDICATES LIMITED ACN 108 292 717 of Level 2, 24 Ross Street,
North Parramatta NSW 2151
	 
	 	 
	Item 2

	 	The Lessee (Clause 1.1):
	 
	 	 
	 

	 	NOVOGEN LABORATORIES PTY LTD ABN 42 002 489 947 of 140 Wicks Road, North Ryde NSW
2113
	 
	 	 
	Item 3

	 	The Guarantor (Clause 1.1 and 13):
	 
	 	 
	 

	 	NOVOGEN LIMITED ABN 37 063 259 754
	 
	 	 
	Item 4

	 	The Land (Clause 1.1):
	 
	 	 
	 

	 	The whole of the land in Certificate of Title Folio Identifier 2/204204
	 
	 	 
	Item 5

	 	The Premises (Clause 1.1):
	 
	 	 
	 

	 	The Land together with the building constructed thereon known as 140 Wicks Road,
North Ryde
	 
	 	 
	Item 6

	 	The State/Territory (Clause 1.1):
	 
	 	 
	 

	 	New South Wales
	 
	 	 
	Item 7

	 	The Term (Clause 1.1):
	 
	 	 
	 

	 	Five (5) years
	 
	 	 
	Item 8

	 	Commencement Date (Clause 1.1):
	 
	 	 
	 

	 	1 September 2010
	 
	 	 
	Item 9

	 	Termination Date (Clause 1.1):
	 
	 	 
	 

	 	31 August 2015
	 
	 	 
	Item 10

	 	Further Term (Clause 3.2):
	 
	 	 
	 

	 	N/A
	 
	 	 
	Item 11

	 	Base Rent (Clauses A and B.1):
	 
	 	 
	 

	 	$222,473.16 plus GST per annum

Page 3

 

	 	 	 

	Item 12

	 	Percentage Increase Dates (Clauses A and B.5):
	 
	 	 
	 

	 	1 September 2011, 1 September 2012, 1 September 2013
	 
	 	 
	 

	 	Recalculation Dates (Clauses A and B.2):
	 
	 	 
	 

	 	Not applicable
	 
	 	 
	 

	 	Review Dates (Clauses A and B.3):
	 
	 	 
	 

	 	1 September 2014,
	 
	 	 
	Item 13

	 	Lessee’s Business (Clauses 1.1 and 4.1(a)):
	 
	 	 
	 

	 	Pharmaceutical research and development Laboratories and associated office storage and
manufacturing
	 
	 	 
	Item 14

	 	Redecoration Dates (Clause 5.3):
	 
	 	 
	 

	 	Not applicable
	 
	 	 
	Item 15

	 	Public Risk Insurance (Clause 7.1(a)):
	 
	 	 
	 

	 	Twenty Million Dollars ($20,000,000)
	 
	 	 
	Item 16

	 	Bank Guarantee (Clauses 1.1 and 13.1):
	 
	 	 
	 

	 	The amount of the Bank Guarantee at the commencement of this Lease shall be Two Hundred and
Fifty Thousand Dollars ($250,000)
	 
	 	 
	Item 17

	 	Outgoings Year (Clause A):
	 
	 	 
	 

	 	The 30th day of June

Page 4

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 

	GENERAL LEASE CONDITIONS	 	 	7	 
	 
	 	 	1. DEFINITIONS AND INTERPRETATION	 	 	7	 
	 

	 	 	 	 	1.1.	 	 	Definitions
	 	 	7	 
	 

	 	 	 	 	1.2.	 	 	Interpretation
	 	 	11	 
	 
	 	 	2. EXCLUSION OF STATUTORY PROVISIONS	 	 	14	 
	 

	 	 	 	 	2.1.	 	 	Conveyancing Act:
	 	 	14	 
	 

	 	 	 	 	2.2.	 	 	Moratorium
	 	 	14	 
	 
	 	 	3. TERM	 	 	15	 
	 

	 	 	 	 	3.1.	 	 	Term of Lease
	 	 	15	 
	 

	 	 	 	 	3.2.	 	 	Intentionally deleted
	 	 	15	 
	 

	 	 	 	 	3.3.	 	 	Holding over
	 	 	15	 
	 
	 	 	4. USE OF PREMISES AND BUILDING	 	 	15	 
	 

	 	 	 	 	4.1.	 	 	Permitted Use
	 	 	15	 
	 

	 	 	 	 	4.2.	 	 	No warranty as to use
	 	 	16	 
	 

	 	 	 	 	4.3.	 	 	Compliance with Laws and Requirements
	 	 	16	 
	 

	 	 	 	 	4.4.	 	 	Overloading
	 	 	17	 
	 

	 	 	 	 	4.5.	 	 	Airconditioning and fire alarm equipment
	 	 	18	 
	 

	 	 	 	 	4.6.	 	 	Use of Appurtenances
	 	 	18	 
	 

	 	 	 	 	4.7.	 	 	Not affix antennae
	 	 	18	 
	 

	 	 	 	 	4.8.	 	 	Operation of sound or picture equipment
	 	 	18	 
	 

	 	 	 	 	4.9.	 	 	Not erect awning
	 	 	18	 
	 

	 	 	 	 	4.10.	 	 	Not damage
	 	 	19	 
	 

	 	 	 	 	4.11.	 	 	Not accumulate rubbish
	 	 	19	 
	 

	 	 	 	 	4.12.	 	 	Not throw items from windows
	 	 	19	 
	 

	 	 	 	 	4.13.	 	 	Signs:
	 	 	19	 
	 

	 	 	 	 	4.14.	 	 	Infectious illness
	 	 	19	 
	 

	 	 	 	 	4.15.	 	 	For sale/to let
	 	 	19	 
	 
	 	 	5. MAINTENANCE REPAIRS ALTERATIONS AND ADDITIONS	 	 	20	 
	 

	 	 	 	 	5.1.	 	 	Repair obligations
	 	 	20	 
	 

	 	 	 	 	5.2.	 	 	Lessors right of inspection
	 	 	21	 
	 

	 	 	 	 	5.3.	 	 	Lessee to Redecorate
	 	 	21	 
	 

	 	 	 	 	5.4.	 	 	Failure of Lessee to Redecorate
	 	 	21	 
	 

	 	 	 	 	5.5.	 	 	Enforcement of repair obligations
	 	 	22	 
	 

	 	 	 	 	5.6.	 	 	Lessor may enter to repair
	 	 	22	 
	 

	 	 	 	 	5.7.	 	 	Alterations to Premises
	 	 	22	 
	 

	 	 	 	 	5.8.	 	 	Alterations or additions to Lessor’s Fixtures and Services
	 	 	23	 
	 

	 	 	 	 	5.9.	 	 	Notice to Lessor of damage, accident etc.
	 	 	23	 
	 
	 	 	6. ASSIGNMENT AND SUBLETTING	 	 	24	 
	 

	 	 	 	 	6.1.	 	 	No disposal of Lessee’s interest
	 	 	24	 
	 

	 	 	 	 	6.2.	 	 	Assignments and subleases
	 	 	24	 
	 

	 	 	 	 	6.3.	 	 	Corporate ownership
	 	 	25	 
	 

	 	 	 	 	6.4.	 	 	Mortgaging Lessee’s interest in Premises
	 	 	25	 
	 

	 	 	 	 	6.5.	 	 	Leasing and charging Lessee’s Fittings
	 	 	25	 
	 
	 	 	7. INSURANCE AND INDEMNITIES	 	 	25	 
	 

	 	 	 	 	7.1.	 	 	Insurances to be taken out by Lessee
	 	 	25	 
	 

	 	 	 	 	7.2.	 	 	Effect on Lessor’s insurances
	 	 	26	 
	 

	 	 	 	 	7.3.	 	 	Inflammable substances
	 	 	27	 
	 

	 	 	 	 	7.4.	 	 	Compliance with fire regulations
	 	 	27	 
	 

	 	 	 	 	7.5.	 	 	Exclusion of Lessor’s liability
	 	 	27	 
	 

	 	 	 	 	7.6.	 	 	Indemnities
	 	 	28	 
	 
	 	 	8. DAMAGE AND DESTRUCTION	 	 	29	 
	 

	 	 	 	 	8.1.	 	 	Damage to or destruction of Building/Premises
	 	 	29	 
	 

	 	 	 	 	8.2.	 	 	Lessor’s right to terminate
	 	 	29	 

Page 5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	8.3.	 	 	Liability
	 	 	30	 
	 

	 	 	 	 	8.4.	 	 	Dispute
	 	 	30	 
	 

	 	 	 	 	8.5.	 	 	Lessor not obliged to reinstate
	 	 	30	 
	 
	 	 	9. LESSOR’S COVENANT	 	 	30	 
	 

	 	 	 	 	9.1.	 	 	Quiet Enjoyment
	 	 	30	 
	 
	 	 	10. DEFAULT, TERMINATION	 	 	30	 
	 

	 	 	 	 	10.1.	 	 	Default
	 	 	30	 
	 

	 	 	 	 	10.2.	 	 	Forfeiture of Lease
	 	 	31	 
	 

	 	 	 	 	10.3.	 	 	Lessor may rectify
	 	 	31	 
	 

	 	 	 	 	10.4.	 	 	Waiver
	 	 	31	 
	 

	 	 	 	 	10.5.	 	 	Tender after determination
	 	 	32	 
	 

	 	 	 	 	10.6.	 	 	Interest on overdue moneys
	 	 	32	 
	 

	 	 	 	 	10.7.	 	 	Damages for breach
	 	 	33	 
	 

	 	 	 	 	10.8.	 	 	Lessor may institute proceedings at any time
	 	 	33	 
	 

	 	 	 	 	10.9.	 	 	Lessor to mitigate damages
	 	 	33	 
	 

	 	 	 	 	10.10.	 	 	 Essential terms and damages
	 	 	33	 
	 
	 	 	11. DETERMINATION OF TERM	 	 	34	 
	 

	 	 	 	 	11.1.	 	 	Lessee to yield up
	 	 	34	 
	 

	 	 	 	 	11.2.	 	 	Passing of title to Lessee’s fittings
	 	 	34	 
	 

	 	 	 	 	11.3.	 	 	Lessee not to cause damage
	 	 	34	 
	 

	 	 	 	 	11.4.	 	 	Failure to Make Good
	 	 	34	 
	 

	 	 	 	 	11.5.	 	 	Lessee to indemnify and pay Lessor’s Costs
	 	 	34	 
	 

	 	 	 	 	11.6.	 	 	Earlier breaches
	 	 	35	 
	 
	 	 	12. MISCELLANEOUS	 	 	35	 
	 

	 	 	 	 	12.1.	 	 	Notices:
	 	 	35	 
	 

	 	 	 	 	12.2.	 	 	Costs
	 	 	36	 
	 

	 	 	 	 	12.3.	 	 	The Lessee shall pay to the Lessor on demand:
	 	 	36	 
	 

	 	 	 	 	12.4.	 	 	Reservations
	 	 	36	 
	 

	 	 	 	 	12.5.	 	 	Easements
	 	 	37	 
	 

	 	 	 	 	12.6.	 	 	Power of attorney
	 	 	37	 
	 
	 	 	13. GUARANTEES AND INDEMNITIES	 	 	37	 
	 

	 	 	 	 	13.1.	 	 	Bank Guarantee:
	 	 	37	 
	 

	 	 	 	 	13.2.	 	 	Personal guarantee
	 	 	38	 
	 

	 	 	 	 	13.3.	 	 	Indemnity
	 	 	38	 
	 

	 	 	 	 	13.4.	 	 	Liability of Guarantor:
	 	 	38	 
	 

	 	 	 	 	13.5.	 	 	Guarantee to enure
	 	 	40	 
	 
	RENT SCHEDULE	 	41	 
	ANNEXURE B	 	 	 	52	 
	ANNEXURE C	 	 	 	54	 
	ANNEXURE D	 	 	 	56	 

Page 6

 

GENERAL LEASE CONDITIONS

	1.	 	DEFINITIONS AND INTERPRETATION

Note: Definitions and most operative provisions dealing with rent, operating expenses and cleaning
are contained in the Rent Schedule.

	1.1.	 	Definitions
	 
	 	 	In this Lease the following terms have the following meanings unless the context
otherwise requires:
	 
	 	 	“Appurtenance” includes any drain, basin, sink, toilet or urinal;
	 
	 	 	“Australian Institute” means The Australian Institute of Valuers and Land Economists Inc.
(State Division);
	 
	 	 	“Authority” includes any state or federal government, any semi or local government, any
statutory, public or any other Person, authority, instrumentality or body having
jurisdiction over the Building and/or the Land or any part of them or anything in
relation to them and includes the Insurance Council;
	 
	 	 	“Bank Guarantee” means an irrevocable and unconditional undertaking without an expiry
date by a trading bank or other financial organisation approved by the Lessor to pay an
amount of money to the Lessor upon demand and containing such terms and conditions as are
acceptable to the Lessor and as the Lessor may determine in its absolute discretion;
	 
	 	 	“Building” means those improvements (if any) described in Item 5;
	 
	 	 	“Claim” includes any claim, demand, remedy, suit, injury, damage, loss, Cost, liability,
action, proceeding, right of action, claim for compensation and claim for abatement of
rent obligation;
	 
	 	 	“Clause” means a clause of this Lease; (“sub-clause” has a similar meaning); a reference
to a Clause followed by a number refers to the relevant Clause in this Lease; a reference
to a Clause followed by a letter of the alphabet refers to the relevant Clause in the
Rent Schedule;
	 
	 	 	“Commencement Date” means the date of commencement of this Lease as set out in Item 8;
	 
	 	 	“Condition Report” means a report prepared by the Lessor’s Project Manager exhibited to
and signed by the parties to this Lease at the time of signing this Lease and
acknowledged by the parties as stating the condition in which the Premises must be
reinstated when the Make Good Works are carried out under Clause 11 of this Lease.
	 
	 	 	“Corporation” — see Clause 1.2(n);
	 
	 	 	“Cost” includes any cost, charge, expense, outgoing, payment or other expenditure of any
nature (whether direct, indirect or consequential and whether accrued or

Page 7

 

	 	 	paid), including where appropriate all Rates and all reasonable and proper legal fees;
	 
	 	 	“Dangerous Goods” means any item substance or article which is either:

	 	(a)	 	prescribed as dangerous goods under the Dangerous Goods Act (1975), or
	 
	 	(b)	 	capable of constituting a risk threat or menace to persons or property.

	 	 	“Default Rate” means the rate which is two per cent (2%) per annum above the highest overdraft
rate charged at the due date for payment of the relevant money by the Lessor’s Bank for commercial
loans in excess of $100,000. A Notice by any Manager of the Lessor’s Bank shall in the absence of
manifest error be conclusive evidence of such rate;
	 
	 	 	“Environmental Law” means:

	 	(a)	 	all planning, environmental, noise, development, health, contamination, radiation,
pollution, waste disposal laws, land management and all laws relating to Dangerous Goods, or
Hazardous Materials;
	 
	 	(b)	 	all conditions of all consents, approvals, licences, permissions, permits issued under any
such law, and
	 
	 	(c)	 	regulations and any order notice direction or requirement of any Authority in relation to
such matters.

	 	 	“Guarantor” means each Guarantor (if any) named in this Lease (as identified in Item 3) and
includes any:

	 	(a)	 	successor or permitted assign of any corporate Guarantor;
	 
	 	(b)	 	executor, administrator or permitted assign of any natural Person that is a Guarantor; and
	 
	 	(c)	 	Person that may from time to time be included as a Guarantor;

	 	 	“Hazardous Materials” means:

	 	(a)	 	any substance, gas, liquid, chemical, mineral or other physical or biological matter which
is or may become toxic, flammable, inflammable; or
	 
	 	(b)	 	which is otherwise harmful to the environment or any life form or which may cause pollution,
contamination or any hazard or increase in toxicity in the environment or may leak or
discharge or otherwise cause damage to any person, property or the environment; or
	 
	 	(c)	 	any items which are Dangerous Goods; or
	 
	 	(d)	 	is a material or compound controlled prohibited or regulated from time to time by any
Environmental Law.

	 	 	“Incoming Tenant” means the proposed assignee or sublessee as referred to in Clause 6;

Page 8

 

	 	 	“Insurance Council” means the Insurance Council of Australia Ltd;
	 
	 	 	“Item” means the relevant item in the Summary of Lease Particulars;
	 
	 	 	“Keys” means keys, access cards or other methods of access from time to time used for the Building
or any part of it;
	 
	 	 	“Land” means the land in the Certificate(s) of Title or Conveyance(s) specified in Item 4;
	 
	 	 	“Law” includes any requirement of any statute, rule, regulation, proclamation, ordinance or
by-law, present or future, and whether state, federal or otherwise;
	 
	 	 	“Lessee” means the Lessee named in this Lease (as identified in Item 2) and includes in the case
of a:

	 	(a)	 	corporation the Lessee, its successors and permitted assigns;
	 
	 	(b)	 	natural Person the Lessee, his executors, administrators and permitted assigns; “Lessees
Business” means that business carried on or which may be carried on in the Premises in
compliance with the permitted use of the Premises specified in Item 13;

	 	 	“Lessee’s Employees’ includes the Lessee’s sublessees, licensees and concessionaires, and the
employees, agents, contractors, consultants, customers, workmen, invitees, clients and visitors of
them or of the Lessee, who may at any time be in or upon the Premises, the Building or the Land,
whether with or without invitation;
	 
	 	 	“Lessee’s Fittings” includes all fixtures, fittings, plant, equipment, partitions or other
articles and chattels of all kinds (other than stock-in-trade) which are not owned by the Lessor
and at any time are in the Premises;
	 
	 	 	“Lessor” means, subject to Clause 1.2(e)(2), the Lessor named in this Lease (as identified in Item
1) and includes the case of a:

	 	(a)	 	corporation the Lessor, its successors and assigns;
	 
	 	(b)	 	natural Person the Lessor, his executors, administrators and assigns;

	 	 	“Lessor’s Bank” means the financial institution which at the relevant time the Lessor uses as a
bank and which, in the event of more than one, shall be the financial institution from time to
time selected by the Lessor in its absolute discretion;
	 
	 	 	“Lessor’s Fixtures” includes:

	 	(a)	 	general: all plant and equipment, mechanical or otherwise, fittings, fixtures, furniture,
furnishings of any kind, including window coverings, blinds and light fittings from time to
time in the Premises or any part of them and owned or supplied by the Lessor;
	 
	 	(b)	 	fire fighting: all stop cocks, fire hoses, hydrants, other fire prevention aids and all fire
fighting Services from time to time located in the Premises or which may service the Premises and
be in Common Areas near the Premises;

Page 9

 

	 	 	“Make Good” means to reinstate the Premises to the order and condition described in the
Condition Report and includes, without limitation:

	 	(a)	 	the decontamination and remediation (using contractors having expertise in the
decontamination and remediation of buildings and land) of any part of the Building or the
Land which is or becomes contaminated or polluted or in need of decontamination or
remediation pursuant to any Environmental Law as a result of the Lessee’s use or occupation
of the Premises or the Lessee’s Business.

	 	 	but excludes any repainting of the Premises other than repainting required to rectify any damage
to the Premises in accordance with Clause 11.3 of this Lease.
	 
	 	 	“Make Good Works’ means the works carried out under Clause 11.1 to Make Good the Premises;
	 
	 	 	“Month” or “Monthly” means respectively calendar month and calendar monthly;
	 
	 	 	“Notice” means any notice in writing, any statement in writing, any written material and any other
written communication;
	 
	 	 	“Officer” includes any director, alternate director, secretary, assistant secretary, executive
officer, attorney and managing agent of the particular Party;
	 
	 	 	“Paragraph” means a paragraph of a Clause of this Lease; (“sub-paragraph” has a similar meaning);
	 
	 	 	“Party” means a party to this Lease and includes any Guarantor;
	 
	 	 	“Person” includes a natural person and a corporation;
	 
	 	 	“Premises” means the Building and, if so specified in Item 5, the Land and includes any of the
Lessor’s Fixtures from time to time in them;
	 
	 	 	‘Proposed Work” means any proposed work, alteration, addition or installation in or to the
Premises and/or to the Building and/or to the Lessor’s Fixtures and/or to the existing Lessee’s
Fittings by the Lessee and/or by the Lessee’s Employees. For the avoidance of doubt, the Lessor
and the Lessee agree that Proposed Works does not include (and clause 5.7 of the Lease does not
apply to) the refurbishment works to the Building and Premises completed in 2006, and the Lessor
acknowledges that the Lessee’s obligations under clause 5.7 have been satisfied and the Lessor has
no further requirements in relation to these refurbishment works;
	 
	 	 	“Redecorate” means:

	 	(a)	 	washing down: the washing down of the tiled surfaces in the interior of the Premises
and the panels forming part of the exterior of the Building but not the brickwork;
	 
	 	(b)	 	painting: the treatment as previously treated of those internal surfaces of
the Premises which are damaged by painting, staining, polishing or otherwise; and/or

Page 10

 

	 	(c)	 	replacement of worn furnishings: the replacing of all floor coverings,
window coverings or blinds which in the reasonable opinion of the Lessor are worn or
damaged otherwise than by fair wear and tear, and in need of replacement;

	 	 	“Reinstatement Notice” means any Notice given by the Lessor to the Lessee of its intention
to re-instate the Building and/or make the Premises fit for occupation and use of and/or
accessible to the Lessee (as appropriate);
	 
	 	 	“Rent” means and includes each of the rents and any other moneys that may at any time be
payable on any account by or on behalf of the Lessee, including such rents or other moneys
referred to in the Rent Schedule;
	 
	 	 	“Rent Schedule” means the Schedule to this Lease which includes provisions dealing with
Rent;
	 
	 	 	“Requirement” includes any requirement, notice, order, direction, recommendation,
stipulation or similar notification received from or given by any Authority or pursuant to
any Law, whether in writing or otherwise and notwithstanding to whom such Requirement is
addressed or directed;
	 
	 	 	“Services” means all services or systems of any nature from time to time provided to the
Building and/or to the Land or available for use, and includes the provisions of any
electronic medium, energy source, lighting, gas, fuel, power, water, sewerage, drainage,
loading docks, plant rooms, storage areas, fire services, sprinkler systems or devices,
lifts, escalators, air-conditioning and the fittings, fixtures, appliances, plant and
equipment utilised for any such Services, and includes any services or systems from time
to time utilised for access to the Building;
	 
	 	 	“State” means the State or territory of Australia specified in Item 6;
	 
	 	 	“Summary of Lease Particulars” means the Summary of Lease Particulars to this Lease and
includes all the information from time to time contained or deemed to be contained in it;
	 
	 	 	“Term” means the term of this Lease as specified in Item 7 and shall be deemed to comprise
that period from and including the Commencement Date to and including the Termination
Date;
	 
	 	 	“Termination Date” means the date of termination of this Lease as specified in Item 9;
	 
	 	 	“this Lease” or “the Lease” means and includes this lease and all schedules, appendices,
annexures and exhibits to it and the Rules (if any) from time to time current;
	 
	 	 	“Writing” and words of similar output — see Clause 1.2(l).
	 
	1.2.	 	Interpretation

	 	(a)	 	Plurals: Words importing the singular number include the plural and vice
versa.
	 
	 	(b)	 	Gender: Words importing any particular gender include all genders.
	 
	 	(c)	 	Parties jointly and severally bound: Where

Page 11

 

	 	(1)	 	the Lessee or the Guarantor comprises more than one Person; and
	 
	 	(2)	 	a covenant or agreement is made by or on behalf of such Party,

	 	 	 	such covenant or agreement on their part shall bind such Persons jointly and each of them
severally.
	 
	 	(d)	 	Statutes and regulations: Reference to statutes, regulations, ordinances or by-laws includes
all statutes, regulations, ordinances or by-laws amending, consolidating or replacing them.
	 
	 	(e)	 	Covenants:

	 	(1)	 	Generally: Every obligation undertaken by any of the Parties or arising from
this Lease or the Agreement shall:

	 	a.	 	deemed covenant: subject to sub-paragraph (2) of this Paragraph
(e), and notwithstanding the form or context of the wording, be deemed to be and
be construed as a covenant by the Party undertaking such obligation; and
	 
	 	b.	 	enure: unless the context otherwise requires and subject to
subparagraph (2) of this Paragraph (e), be construed as continuing throughout
the Term and any holding over period and thereafter so far as the obligation
remains to be observed or performed.

	 	(2)	 	Lessor’s covenants:

	 	a.	 	Lessor’s obligations limited: Every obligation of or agreement on
the part of the Lessor, including the Lessor named in this Lease, shall bind
such Person only during such period(s) as it is entitled to receive the rents
and profits of that part of the Building in which the Premises are situated;
	 
	 	b.	 	transfer of Land: subject to Paragraph (A), the covenants on the
part of the Lessor shall bind the Person from time to time immediately expectant
on the reversionary estate in the Land or part of it (as appropriate).

	 	(3)	 	Lessee’s covenants: Every covenant by the Lessee shall be deemed to include a
covenant by the Lessee to procure compliance with the covenant by each of the Lessee’s
Employees.

	 	(f)	 	Severability: All provisions of this Lease shall so far as possible be construed so as not
to be invalid, illegal or unenforceable in any respect but, if any provision on its true
interpretation is illegal, invalid or unenforceable, that provision shall so far as possible
be read down to such extent as may be necessary to ensure that it is not illegal, invalid or
unenforceable and as may be reasonable in all the circumstances so as to give it a valid
operation of a partial character. If any such provision or part of it cannot be so read down,
such provision or part shall be deemed to be void and severable and the remaining provisions
of this Lease shall not in any way be affected or impaired.

Page 12

 

	 	(g)	 	No limitation: No word, words or provision of this Lease shall operate to limit or in any
way prejudice the effect of any other word, words or provisions of this Lease unless it is
expressly provided otherwise.
	 
	 	(h)	 	Extrinsic terms: Subject to the provisions of any written material entered into and approved
by the Lessor and to which the Lessor and the Lessee are parties, the Lessor and the Lessee
agree that:

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

	 	(i)	 	Headings: Headings, bold lettering and the Table of Contents to this Lease have been
inserted for guidance only, and shall not form part of the context and shall not limit or
govern the construction of this Lease.
	 
	 	(j)	 	Bodies and Authorities:

	 	(1)	 	Bodies and Authorities: Where a reference is made to any Person, body or
Authority such reference shall, if the Person, body or Authority has ceased to exist,
be deemed a reference to the Person, body or Authority as then serves substantially
the same objects as that Person, body or Authority.
	 
	 	(2)	 	President: Any reference to the President of such Person, body or Authority
shall, in the absence of a President, be read as a reference to the senior officer for
the time being of the Person, body or Authority or such other Person fulfilling the
duties of President.

	 	(k)	 	Consent of Lessor: Unless the context otherwise requires, where the Lessor has a discretion
or its consent or approval is required for anything the Lessor shall, consistent with its
rights and obligations as Lessor, not unreasonably withhold or delay its decision, consent or
approval.
	 
	 	(l)	 	Writing: A reference to “writing” or “written” and any words of similar import include
printing, typing, lithography and any other means of reproducing characters in tangible and
visible form, including any communication effected through any electronic medium if such
communication is subsequently capable of reproduction in tangible or visible form.
	 
	 	(m)	 	Corporation: A reference to “corporation” and any other words or expressions used or defined
in the Corporations Act (2001) shall, unless the context otherwise requires, have the same
meaning as given in the Corporations Act (2001).
	 
	 	(n)	 	Consent of mortgagee: Notwithstanding:

	 	(1)	 	any other provision of this Lease;

Page 13

 

	 	(2)	 	execution of this Lease or of the Agreement by any one or more of the
Parties;
	 
	 	(3)	 	the payment and acceptance of any Rent or other moneys of any
nature to the Lessor or any other Person; and/or
	 
	 	(4)	 	the entry into possession of the Premises;

	 	 	 	this Lease shall not bind the Lessor unless and until consent in a form
satisfactory to the Lessor for this Lease by any relevant mortgagee has been
procured.
	 
	 	(o)	 	Emergency: Where anything is permitted in an “emergency” the opinion of the
Lessor as to the existence or non-existence of such state of affairs shall be
conclusive.
	 
	 	(p)	 	Upon demand: A reference to “on demand”, “of demand” or “upon demand” and
any other words of similar import shall, unless the context otherwise requires, mean
whichever is the earlier of:

	 	(1)	 	formal demand: the date on which the Lessor makes formal
demand (whether oral or in writing); and
	 
	 	(2)	 	due payment: the date on when the moneys ought in the
circumstances to have been paid by or on behalf of the Lessee.

	 	(q)	 	Liquidation: A reference to “liquidation” and words of similar import
excludes any liquidation for the purpose of reconstruction or amalgamation previously
approved in writing by the Lessor.
	 
	 	(r)	 	Proper Law: This Lease shall be governed by the laws of the State and the
Parties irrevocably submit to the non-exclusive jurisdiction of the courts of the
State and where applicable the Federal Courts of Australia.
	 
	 	(s)	 	Relevant date: Where the day or last day for doing anything or on which an
entitlement is due to arise is a Saturday, Sunday or public holiday in the State, the
day or last day for doing the thing or date on which the entitlement arises shall for
the purposes of this Lease be the immediately following day that is not a Saturday,
Sunday or public holiday.

	2.	 	EXCLUSION OF STATUTORY PROVISIONS
	 
	2.1.	 	Conveyancing Act:
	 
	 	 	The covenants, powers and provisions implied in leases by virtue of any Law are expressly
negatived.
	 
	2.2.	 	Moratorium
	 
	 	 	To the extent permitted by law the application to this Lease or to any Party of any Law or
any Requirement or any moratorium having the effect of extending or reducing the Term,
reducing or postponing the payment of Rent or any part(s) of it or

Page 14

 

	 	 	otherwise affecting the operation of the terms of this Lease or its application to any
Party is excluded and negatived.
	 
	3.	 	TERM
	 
	3.1.	 	Term of Lease
	 
	 	 	This Lease starts on the Commencement Date and its provisions bind the parties on and from
that date, whenever this Lease is executed or dated. It ends at midnight on the
Termination Date.
	 
	3.2.	 	Intentionally deleted.
	 
	3.3.	 	Holding over
	 
	 	 	If the Lessor permits the Lessee to continue to occupy the Premises beyond the Termination
Date (otherwise than pursuant to the grant of a further lease) then:

	 	(a)	 	Monthly tenancy: the Lessee shall do so as a Monthly tenant only at a total
rental payable Monthly in advance, the first of such payments to be made on the day
following the Termination Date, and being an amount equal to one-twelfth of the
aggregate of the Rent and any other moneys payable by the Lessee to the Lessor
pursuant to this Lease as at the Termination Date or as appropriate such earlier date
as the Lessor sees fit;
	 
	 	(b)	 	right to review Rent: the amount and rate of such Rent or any part of it for
the Monthly tenancy may be reviewed whenever the Lessor determines it appropriate in
its absolute discretion, and any provisions in this Lease relating to a mechanism for
the calculation of or any limitation on or right of review of any Rent or part(s) of
it shall not apply in the circumstances of this Clause 3.3;
	 
	 	(c)	 	determination: the Monthly tenancy so created shall be determinable at any
time by either the Lessor or the Lessee by one (1) Month’s Notice given to the other,
to expire on any date, but otherwise the tenancy shall continue on the same terms and
conditions so far as applicable to a Monthly tenancy as are contained in this Lease.
Where the Lessee is in default in the observance or performance of its obligations,
then such Monthly tenancy may be determined by the Lessor giving Notice to the Lessee
expiring at any time after the expiration of seventy-two (72) hours from the date of
service of such Notice.

	4	 	USE OF PREMISES AND BUILDING
	 
	4.1.	 	Permitted Use
	 
	 	 	The Lessee shall:

	 	(a)	 	Lessee’s Business: not without the prior written consent of the Lessor
(which consent may be withheld at the absolute discretion of the Lessor) use the
Premises for any purpose other than that specified in Item 13;
	 
	 	(b)	 	conduct of business: at all times conduct the Lessee’s Business in the
Premises;
	 
	 	(c)	 	non-residence: not use the Premises for the purposes of a residence;

Page 15

 

	 	(d)	 	no animals or birds: not keep any animals or birds in the Premises except as
required for the Lessee’s Business or the Building;
	 
	 	(e)	 	rodents and vermin: at its own cost keep the Premises free and clear of
pests, insects and vermin except as required for the Lessee’s Business;
	 
	 	(f)	 	not cause disturbance: not (and disregarding any other provision of this
Lease or of any consent or of any permission granted pursuant to this Lease) do or
carry on in the Premises or any part of them any harmful or offensive trade,
business or occupation or anything whatever which shall or may cause annoyance,
nuisance, damage or disturbance to the occupiers or owners of any nearby premises or
to the Lessor or to any Tenant;
	 
	 	(g)	 	auction sale: not hold any auction, bankrupt or fire sale on the Premises;
	 
	 	(h)	 	use of cooking facilities: not prepare or cook food except in any areas
which may be provided and which are approved by the Lessor for that purpose.

	4.2.	 	No warranty as to use
	 
	 	 	The Lessor gives no warranty (either present or future) as to the suitability
of the
Premises for the use to which the Premises may be put. The Lessee shall:

	 	(a)	 	Lessee to satisfy itself: be deemed to have accepted this Lease with full
knowledge of and subject to any prohibitions or restrictions on the use of the
Premises from time to time under or in pursuance of any Laws or any Requirements;
	 
	 	(b)	 	consents: obtain, maintain and comply with at the Lessee’s Cost the
Requirements of any Laws and all consents or approvals from all Authorities which
may from time to time be necessary or appropriate for the Lessee’s Business;
	 
	 	(c)	 	revocation: not by any act or omission cause or permit any consent or
approval as referred to in Clause 4.2(b) to lapse or be revoked.

	4.3.	 	Compliance with Laws and Requirements

	 	(a)	 	Lessee to comply: The Lessee shall:

	 	(1)	 	compliance: comply with and observe at the Lessee’s own Cost
all Laws and all Requirements in relation to or affecting:

	 	a.	 	Premises and Lessee’s Fittings: the Premises or
any of the Lessee’s Fittings installed in them; and/or
	 
	 	b.	 	use and occupation: the use or occupation of the
Premises from time to time, including such as arise as a result of the
sex or number of Persons in the Premises,

	 	 	 	whether or not any such Laws or Requirements are addressed to or required to
be complied with by either or both of the Lessor and the Lessee or by any
other Person. Where any such Laws or Requirements

Page 16

 

	 	 	 	are notified to or served upon the Lessee the Lessee shall forthwith provide
a complete copy of them to the Lessor;

	 	(2)	 	consent of Lessor: before complying with any Laws or
Requirements as referred to in this Clause 4.3 obtain the written consent of
the Lessor and otherwise observe the provisions of this Lease.

	 	(b)	 	Lessor’s rights if Lessee fails to comply: The Lessor may:

	 	(1)	 	carry out at Lessee’s Cost: (without prejudice to any of the
Lessor’s other rights in respect of non-compliance) elect at the Lessee’s Cost
to comply with any such Laws or Requirements (as referred to in this Clause
4.3) either in part or whole, including where the Lessee fails to comply
within the appropriate time with any of its obligations; and
	 
	 	(2)	 	partial compliance: where the Lessor does exercise any rights
as referred to in Paragraph (1), elect to have the balance of any such Laws or
Requirements complied with by the Lessee.

	 	(c)	 	Structural alterations: The Lessee shall not be required pursuant to this
Clause 4.3 to effect structural alterations or additions except those caused by,
contributed to or arising from the nature of the Lessee’s Business, the number or sex
of the Lessee and Lessee’s Employees or from any deliberate or negligent act or
omission on the part of the Lessee or of the Lessee’s Employees.
	 
	 	(d)	 	Cost: The Lessee shall upon demand pay to the Lessor all reasonable Costs
incurred by or on behalf of the Lessor in complying with any such Laws or
Requirements as referred to in this Clause 4.3 as if such moneys were Rent in
arrears.

	4.4.	 	Overloading
	 
	 	 	The Lessee shall not:

	 	(a)	 	overloading of floor and movement of heavy articles: place or store any
heavy articles or materials on any of the floors of the Building without the prior
written consent of the Lessor, which consent shall only be given where the articles
of materials are reasonably necessary and proper for the conduct of the Lessee’s
Business and are of such nature and size as will not in the Lessor’s opinion cause or
be likely to cause any structural or other damage to the floors or walls or any other
part of the Premises or of the Building. The Lessor shall in all cases be entitled to
prescribe the maximum weight for and proper location of such heavy articles or
materials in the Premises or the Building, and any damage done to the Building or any
part of it by taking in or removing them or during the time they are in the Building
shall be made good and/or paid for upon demand by the Lessee (as appropriate). Before
any heavy article or material (including any safe) is moved into or out of or within
the Building, at least twenty-four (24) hours’ prior Notice of the intention to move
such heavy article or material shall be given by the Lessee to the Lessor and such
movement shall if required by the Lessor only be carried out under the supervision of
the Lessor. The Lessor may direct the routing, installation and location of all heavy
articles and materials and the Lessee shall comply with all such directions. Where
such moving is done outside the hours during which access to the Building is freely
available the Lessee shall reimburse the

Page 17

 

	 	 	 	Lessor on demand for the reasonable Costs incurred by the Lessor in its
supervision; or

	 	(b)	 	overloading of electrical circuits: install any equipment or system in the
Premises that overloads or may overload the electrical or other Services to the
Premises. If the Lessor at the request of the Lessee upgrades the Services to
accommodate any equipment or system which the Lessee wishes to install, the Lessee
shall pay to the Lessor upon demand the entire Cost to the Lessor of such
alterations (including consultants’ fees) and the Lessor may require the Lessee to
deposit with the Lessor the estimated cost of them before any such alterations are
commenced. The Lessor gives no warranty as to the suitability of any such
alterations.

	4.5.	 	Airconditioning and fire alarm equipment
	 
	 	 	Where any airconditioning or fire alarm system of the Lessor is installed in the Premises,
the Lessee shall not in any way interfere with any such system and shall not in any manner
obstruct or hinder access to it.
	 
	4.6.	 	Use of Appurtenances
	 
	 	 	The Lessee shall:

	 	(a)	 	purpose: not use the Appurtenances in the Premises for any purpose other
than those for which they were designed;
	 
	 	(b)	 	substances: not place in the Appurtenances any substances which they were
not designed to receive; and
	 
	 	(c)	 	damage by Lessee: pay to the Lessor any reasonable Costs of making good
any damage to any Appurtenances arising from any misuse caused by the Lessee or by
the Lessee’s Employees.

	4.7.	 	Not affix antennae
	 
	 	 	The Lessee shall not without the consent in writing of the Lessor affix any television or
radio mast, antennae or satellite dish to any part of the Building.
	 
	4.8.	 	Operation of sound or picture equipment
	 
	 	 	The Lessee shall not use or operate any musical instruments, gramophones, radios,
amplifiers, televisions, audio-visual or other sound or picture producing equipment in the
Premises or in any part of the Building if such equipment is audible or visible from
outside the Premises.
	 
	4.9.	 	Not erect awning
	 
	 	 	The Lessee shall not erect or install window coverings, blinds, screens or awnings without
the prior written consent of the Lessor, and any window coverings, blinds, screens or
awnings hung, erected or installed in or near the Premises shall be of non-inflammable
materials and shall comply with all relevant prescribed or recommended standards of the
Australian Standards Association and of all other Authorities.

Page 18

 

	4.10	 	Not damage
	 
	 	 	The Lessee shall not damage or deface or mark, or drive any nails, screws or hooks into,
any part of the Building. If the Lessee or the Lessee’s Employees damage, deface or mark
any part or parts of the Building, the Lessee shall forthwith upon demand pay to the
Lessor all Costs in repairing and/or reinstating such part or parts of the Building to
their former condition.
	 
	4.11.	 	Not accumulate rubbish
	 
	 	 	The Lessee shall keep the Premises clean and shall not permit any accumulation of useless
property or rubbish in them. No rubbish or waste shall at any time be burned upon the
Premises or the Building by the Lessee.
	 
	4.12.	 	Not throw items from windows
	 
	 	 	The Lessee shall not throw anything out of the windows or doors of the Premises or the
Building or down the lift shafts, passages or skylights or into the light areas of the
Building, or deposit waste paper or rubbish anywhere except in proper receptacles, or
place anything upon any sill, ledge or other similar part of the Building.
	 
	413.	 	Signs:

	 	(a)	 	Affixing of signs: The Lessee may write, paint, display or affix any sign,
advertisement, name, flagpole, flag or Notice (Signage”) on any part of the outside
or inside of the Building if it first obtains the consent of any relevant Authority
to the installation of the Signage.
	 
	 	(b)	 	Removal: At the Termination Date or other determination of this Lease the
Lessee shall at its sole Cost remove the Signage and all lettering and other
distinctive marks from the Premises and the Building and shall make good any damage
caused by such removal.

	4.14.	 	Infectious illness
	 
	 	 	If any infectious illness occurs in the Premises or the Building the Lessee shall
forthwith give Notice of such event to the Lessor and to all proper Authorities, and
where any such infectious illness is confined to the Premises and has resulted from the
use of them by the Lessee or by the Lessee’s Employees the Lessee at its Cost shall
thoroughly fumigate and disinfect the Premises to the satisfaction of the Lessor and of
all relevant Authorities.
	 
	4.15.	 	For sale/to let
	 
	 	 	The Lessor shall be entitled at such times as the Lessor reasonably considers appropriate
to:

	 	(a)	 	advertising: place advertisements and signs on such part(s) of the Premises
as it reasonably considers appropriate where the Building or the Premises are either
for sale or available for lease; and
	 
	 	(b)	 	inspection: show interested Persons through the Premises accompanied by a
representative of the Lessee provided at least 48 hours’ notice is provided by the
Lessor to the Lessee. The Lessee may in its discretion, acting reasonably, refuse to
allow access to certain areas of the Premises hatched on the plan

Page 19

 

	 	 	 	attached as Annexure C that may contain commercially-sensitive material,
confidential information or trade secrets.

	 	 	The Lessor in exercising its rights under this Clause shall endeavour to minimise any
inconvenience to the Lessee or the Lessee’s Business.
	 
	5.	 	MAINTENANCE REPAIRS ALTERATIONS AND ADDITIONS
	 
	5.1.	 	Repair obligations

	 	(a)	 	General repair obligation: The Lessee shall during the Term and any holding
over keep the Premises, the Lessee’s Fittings and all the Lessor’s Fixtures in the
Premises in good repair and condition having regard to their state of repair and
condition on completion of the refurbishment works in 2006 as documented in the
Condition Report. This obligation excludes:

	 	(1)	 	fair wear and tear: fair wear and tear; and
	 
	 	(2)	 	insurance: damage to the Premises covered by the insurance
taken out by the Lessor in respect of the Building (other than where any
insurance moneys are irrecoverable through the act, omission, neglect, default
or misconduct of the Lessee or the Lessee’s Employees)

	 	(b)	 	Structural repair: Nothing in this Clause 5.1 shall impose any obligation
upon the Lessee in respect of any structural maintenance, replacement or repair
except where rendered necessary by any act, omission, neglect, default or misconduct
of the Lessee or the Lessee’s Employees or by its or their use or occupancy of the
Premises or by the installation, use or removal of the Lessee’s Fittings.
	 
	 	(c)	 	Particular repair obligations: The Lessee shall, or the Lessor may at the
Lessee’s Cost:

	 	(1)	 	Lessee’s wilful/negligent act: (without prejudice to any other
right or remedy of the Lessor) immediately make good any damage to the
Premises or any other part of the Building caused by the wilful or negligent
act of the Lessee or of the Lessee’s Employees;
	 
	 	(2)	 	replace broken glass: immediately replace all glass broken by
the Lessee or by any of the Lessee’s Employees;
	 
	 	(3)	 	light fittings: replace all damaged or non-operative electric
light bulbs, globes, tubes and other means of illumination within the
Premises;
	 
	 	(4)	 	repair Lessor’s Fixtures: repair or where appropriate replace
any of the Lessor’s Fixtures which are broken or damaged by the Lessee or by
any of the Lessee’s Employees. Unless the Lessor notifies the Lessee in
writing to the contrary the Lessee agrees that such repairs or replacements
shall only be carried out by the Lessor but at the Lessee’s Cost;
	 
	 	(5)	 	maintenance of Lessor’s Fixtures: keep such of the Lessor’s
Fixtures or Services located within and exclusively serving the Premises

Page 20

 

	 	 	 	maintained, serviced and in good repair, and shall enter into and keep
current at the Lessee’s Cost such maintenance, service and repair contracts
as are reasonably required by the Lessor for that purpose with contractors
approved by the Lessor PROVIDED THAT while ever the Lessor is Hyperion
Property Syndicates Limited in relation to the service and management of the
air-conditioning equipment, the Lessor will enter into a maintenance,
service and repair contract with a contractor appointed by the Lessor and
the reasonable contract costs will be borne by the Lessee as an Operating
Expense but only if:

	 	A.	 	the scope of maintenance, service and repairs
meets or exceeds the maintenance services set out in the Customised
Professional Maintenance Project II in Annexure B; and
	 
	 	B.	 	the Lessor keeps the maintenance, service and
repair contract current at all times during this Lease and provides a
copy of the current contract to the Lessee from time to time.

	 	 	 	For the avoidance of doubt the Lessor will be responsible at its cost for
all capital replacement costs for the air-conditioning equipment;

	 	(d)	 	Repair of roof: The roof plan in Annexure D sets out those areas on the roof
that each of the Lessor and the Lessee are separately responsible for during the
Lease limited to the maintenance and replacement of the roof sheeting to prevent and
repair leaks or as a result of damage to the roof sheeting. The Lessor is responsible
for area “Z” and the Lessee is responsible for area “X” provided that the Lessee is
not required to replace sheeting or repair roof sheeting on area “X” if the damage to
the roof sheeting is covered by the Lessor’s building insurance. For the avoidance of
any doubt, nothing in this sub-clause imposes any other obligation on the Lessee in
respect of any structural repair or replacement as set out in clause 5.1(b). The
Lessor must insure the Building for its full insurable value with a reputable insurer
and keep current a policy for the Building during the term of this Lease and any
holding over period.

	5.2.	 	Lessors right of inspection
	 
	 	 	The Lessor may at all reasonable times upon giving to the Lessee reasonable notice (except
in the case of emergency when no notice shall be required) enter the Premises and view
their state of repair and condition.
	 
	5.3.	 	Lessee to Redecorate
	 
	 	 	The Lessee shall Redecorate the Premises throughout before each of the dates specified in
Item 14 and the Termination Date or other determination of this Lease. If there is any
disagreement between the Lessee and the Lessor regarding the Lessee’s obligation to
Redecorate, the parties agree to rely on the Condition Report as to the condition of the
Premises on commencement of this Lease.
	 
	5.4.	 	Failure of Lessee to Redecorate
	 
	 	 	If the Lessee fails to Redecorate the Premises by the dates referred to in Clause 5.3 the
Lessor may Redecorate at the Lessee’s Cost (and shall have access to the Premises for its
agents, employees and contractors for this purpose). The Lessee shall reimburse on demand
all Costs so expended by the Lessor.

Page 21

 

	5.5.	 	Enforcement of repair obligations
	 
	 	 	The Lessor may:

	 	(a)	 	serve Notice: serve upon the Lessee a Notice of any failure by the Lessee to
carry out any repair, replacement, cleaning or Redecoration of the Premises which is
the Lessee’s obligation under this Lease; and/or
	 
	 	(b)	 	carry out repair: require the Lessee to carry out such repair, replacement,
cleaning or Redecoration within a reasonable time and, in default of the Lessee doing
so, the Lessor may elect to carry out such repair, replacement, cleaning or
Redecoration and any Costs whether incidental or otherwise shall be payable on demand
by the Lessee to the Lessor.

	5.6.	 	Lessor may enter to repair
	 
	 	 	If:

	 	(a)	 	Lessor wishes to repair: the Lessor wishes to carry out any repairs to the
Premises considered necessary or desirable by the Lessor or in relation to anything
which the Lessor is obliged to do under this Lease;
	 
	 	(b)	 	Requirements of Authority: any Authority requires any repair or work to be
undertaken on the Premises or the Building which the Lessor in its discretion elects
to do and for which the Lessee is not liable under this Lease; and/or
	 
	 	(c)	 	Lessee fails to repair: the Lessor elects to carry out any repair work which
the Lessee is required or liable to do under this Lease by any Law or by any
Requirement but fails to do so,

	 	 	then the Lessor, its architects, workmen and others authorised by the Lessor may at all
reasonable times upon giving to the Lessee reasonable notice (except in the case of
emergency when no notice shall be required) enter and carry out any such works and
repairs. In so doing the Lessor shall endeavour not to cause undue inconvenience to the
Lessee and the conduct of the Lessee’s Business.
	 
	5.7.	 	Alterations to Premises
	 
	 	 	The Lessee shall not make or permit to be made any Proposed Work (including inter-tenancy
partitions and floor coverings) without the Lessors prior written approval and:

	 	(a)	 	details of Proposed Work: in seeking the Lessors approval to a Proposed Work
the Lessee shall submit plans and specifications of the Proposed Work together with a
list of the Persons (if any) from whom the Lessee proposes to call tenders for the
Proposed Work;
	 
	 	(b)	 	conditions for Lessor’s approval: the Lessor will (unless it notifies
otherwise) require as a condition of its approval that:

	 	(1)	 	supervision: any Proposed Work shall be supervised by a Person
approved by the Lessor;

Page 22

 

	 	(2)	 	execution: any Proposed Work shall be executed by contractors
or tradesmen approved by the Lessor, but no objection shall be made by the
Lessor to any Person whose name appears on the list provided pursuant to
paragraph (a) and who has been approved by the Lessor;
	 
	 	(3)	 	Costs of Lessor’s approval: the Lessee pays on demand all
reasonable Costs incurred by the Lessor in considering the Proposed Work and
its supervision, including the fees of architects or other building
consultants engaged by or on behalf of the Lessor;
	 
	 	(4)	 	approvals: the Lessee shall obtain and keep current all
necessary approvals or permits from all Authorities necessary to enable any
Proposed Work to be lawfully effected, and shall on request by the Lessor
produce for inspection by the Lessor copies of all such approvals and permits;
	 
	 	(5)	 	completion certificates: upon completion of the Proposed Work
the Lessee shall forthwith obtain and produce to the Lessor any unconditional
certificates of compliance or of satisfactory completion available from any
such Authority;
	 
	 	(6)	 	cost of modification to Building: the Lessee shall forthwith
repay on demand by the Lessor any Cost incurred by the Lessor as a result of
any alteration, addition or installation to or in the Premises resulting from
the Proposed Work, including any resulting modification or variation to the
Building resulting from the Proposed Work; and
	 
	 	(7)	 	reinstatement: at the expiration or sooner determination of
the Term the Lessee restores the Premises and all Services to them to their
configuration and condition immediately before the Proposed Work was carried
out but subject to the Lessee’s Make Good obligations in clauses 11.1 and 11.2
and the Condition Report; and

	 	(c)	 	Lessee to comply: the Lessee shall at its own expense comply with all
conditions on which the Lessor consents to any Proposed Work.

	5.8.	 	Alterations or additions to Lessor’s Fixtures and Services
	 
	 	 	Subject to Clause 5.7 the Lessee will not without the prior written approval of the Lessor
install, interfere with or make any connections to the Lessor’s Fixtures, Services and/or
Appurtenances, including existing water, gas or electrical fixtures, equipment or
appliances or any apparatus for illuminating, air-conditioning, heating, cooling or
ventilating the Premises.
	 
	5.9.	 	Notice to Lessor of damage, accident etc
	 
	 	 	The Lessee shall forthwith give Notice to the Lessor of any:

	 	(a)	 	defects: damage, accident to or defects in the Premises or in the Building; or
	 
	 	(b)	 	notice of damage: circumstances likely to cause any damage or injury occurring
within the Premises or the Building of which the Lessee has notice (actual or
constructive).

Page 23

 

	6.	 	ASSIGNMENT AND SUBLETTING
	 
	6.1.	 	No disposal of Lessee’s interest
	 
	 	 	The Lessee shall not during the continuance of this Lease assign, transfer or otherwise
deal with or part with possession of the Premises or this Lease or any part of them or any
interest in them or attempt to do any of the foregoing, or by any act procure the Premises
or this Lease or any part of them or any interest in them to be assigned, transferred or
otherwise dealt with or disposed of.
	 
	6.2.	 	Assignments and subleases
	 
	 	 	The Lessee shall not be in breach of Clause 6.1 if:

	 	(a)	 	Lessee not in default: the Lessee is not in default in the timely
observance or performance of each of the covenants and agreements on the Lessee’s
part, and in particular all Rent and all other moneys payable by the Lessee to the
Lessor up to the date of the proposed assignment or sublease have been paid;
	 
	 	(b)	 	Lessee to pay Lessor’s Costs: the Lessee pays to the Lessor all reasonable
Costs incurred by the Lessor (whether or not the proposed assignment or sublease
proceeds to completion) including the Lessor’s administrative and other legal costs
of and incidental to the proposed assignment or sublease;
	 
	 	(c)	 	responsible and respectable Person: the Lessee proves to the satisfaction
of the Lessor that the Incoming Tenant is a respectable, responsible and solvent
Person;
	 
	 	(d)	 	current market rent: in the case of a proposed sublease:

	 	(1)	 	the Lessee proves to the satisfaction of the Lessor (by
valuation or valuations if so required) that the rent payable by the Incoming
Tenant under the sublease is at a rate not less than the then current market
rent for the Premises;
	 
	 	(2)	 	the Lessor may in its absolute discretion approve a sublease
at a rate less than the then current market rent for the Premises if the
Lessee provides a written acknowledgment in a form satisfactory to the Lessor
that the rate is below current market rent for the Premises;

	 	(e)	 	Incoming Tenant to enter into covenant: the Lessee and the Incoming Tenant
enter into a deed with the Lessor in the form required by the Lessor which includes
provisions that the Incoming Tenant, if an assignee, will comply with all the
Lessee’s obligations under this Lease on and from the date of assignment or, if a
sublessee, will not cause or contribute to a breach of this Lease;
	 
	 	(f)	 	documentation requirements: the Lessee and the Incoming Tenant comply with
the Lessor’s requirements in relation to the documentation, stamping and
registration of the proposed assignment or sublease; and
	 
	 	(g)	 	guarantees: if the Incoming Tenant is a company, other than a company
whose shares are listed on any Australian Stock Exchange, the Lessee provides and/or
procures in favour of the Lessor such guarantees as may be

Page 24

 

	 	 	 	required by the Lessor, in a form acceptable to the Lessor, of the obligations and
covenants of the Incoming Tenant.

	6.3.	 	Corporate ownership
	 
	 	 	If the Lessee is a company, other than a company whose shares are listed on any Australian
Stock Exchange, any change in the shareholding of the Lessee altering the effective
control of the Lessee shall be deemed a proposed assignment of this Lease, and the Lessee
shall not register, record or enter in its books any transfer of any share or shares in
the capital of the Lessee, or deal with any beneficial interest in any such share or
shares, or issue any new share or shares, or take or attempt to take any action having the
effect of altering the effective control of the Lessee or having the effect that the
shareholders of the Lessee at the date of this Lease together beneficially hold or control
less than fifty one per cent (51%) of the voting rights of capital in the Lessee, unless
the Lessee complies with the conditions of Clause 6.2.
	 
	6.4.	 	Mortgaging Lessee’s interest in Premises
	 
	 	 	The Lessee shall not mortgage or charge this Lease or the Lessee’s interest in the
Premises without first obtaining the consent of the Lessor, which consent will not be
unreasonably withheld where the Lessee is a company and wishes to enter into a proper
fixed and/or floating charge over its assets in good faith as a means of securing a bank
overdraft facility.
	 
	6.5.	 	Leasing and charging Lessee’s Fittings
	 
	 	 	The Lessee shall not mortgage, charge, lease or otherwise deal with any Lessee’s Fittings
or anything else which requires or may require the Lessor to sign a landlord’s waiver or
any similar written material without first obtaining the consent of the Lessor, which
consent will not be unreasonably withheld where:

	 	(a)	 	financing: the Lessee wishes to enter into a proper mortgage, charge or
lease in good faith as a means of financing such Lessee’s Fittings; and
	 
	 	(b)	 	waiver: the Lessee uses the standard form of waiver prepared by the Lessor
and pays the Lessor’s reasonable Costs (including legal Costs where applicable) in
relation to it.

	7.	 	INSURANCE AND INDEMNITIES
	 
	7.1.	 	Insurances to be taken out by Lessee
	 
	 	 	The Lessee shall:

	 	(a)	 	public risk: effect on or before the Commencement Date and keep current
during the Term (including any extension or renewal or holding over) a public risk
insurance policy bearing an endorsement whereby the indemnity under the policy is
extended to include the risks referred to in Clause 7.6 and all other Claims arising
out of or in connection with this Lease, such policy to be for an amount of not less
than the amount specified in Item 15 or such other amount as the Lessor may notify
the Lessee from time to time in respect of any single accident;

Page 25

 

	 	(b)	 	plate glass: insure in such amount (not being less than the full insurable
value of them) and against such risks as the Lessor may require all plate glass
windows (other than external windows), doors and display show-cases forming part of
or within the Premises;
	 
	 	(c)	 	insurers: ensure that all policies of insurance effected or required to be
effected by the Lessee pursuant to this Clause 7, whether in respect of the property
or risk either of the Lessor or the Lessee:

	 	(1)	 	insurance company: are taken out with a reputable insurance
office or company and the Lessor agrees that the policies required in the
Lease can be included in the Lessee’s group policy;
	 
	 	(2)	 	amount: are for such amounts and cover such risks and contain
such conditions as are acceptable to or required by the Lessor acting
reasonable and/or the Lessor’s insurer(s);
	 
	 	(3)	 	exclusions: have no exclusions, endorsements or alterations
unless first approved in writing by the Lessor; and
	 
	 	(4)	 	insured: are taken out in the names of the Lessor and the
Lessee for their respective rights and interests:

	 	(d)	 	evidence of insurance: in respect of any policy of insurance to be effected
by the Lessee pursuant to this Clause 7, whenever reasonably required by the Lessor
produce to the Lessor the policy of insurance, the receipt for the last premium and a
certificate of currency; and
	 
	 	(e)	 	Lessee to pay premiums: pay all premiums and other moneys payable in respect
of any such policy whenever they shall become due and payable.

	7.2.	 	Effect on Lessor’s insurances

	 
	 	(a)	 	Not to prejudice insurances: The Lessee shall not without the prior consent
in writing of the Lessor bring, keep, do or permit to be brought, kept or done
anything to or upon the Premises or the Building which shall or may:

	 	(1)	 	increase the rate of insurance: increase the rate of any
insurance on the Premises or the Building or on any property in them; or
	 
	 	(2)	 	avoid insurance: vitiate or render void or voidable any
insurance in respect of the Premises or the Building or any property in them;
or
	 
	 	(3)	 	conflict: conflict with any Laws or any Requirements or with
any requirements of the Lessor’s insurer(s) relating to fires or fire safety
or fire prevention or with any insurance policy in respect of the Premises or
the Building or any property in them.

	 	(b)	 	Extra Costs of insurance: The Lessee shall pay to the Lessor on demand all
extra Costs of insurance (including any Rates) on the Premises or the Building and on
any property in them (if any are required) on account of the extra risk caused by the
Lessee’s use or occupation of the Premises.

Page 26

 

	7.3.	 	Inflammable substances
	 
	 	 	The Lessee shall not:

	 	(a)	 	reasonable quantities: other than as is necessary and proper for the
Lessee’s Business, and then only in such quantities as are reasonably appropriate,
store chemicals, inflammable liquids, acetylene gas or alcohol, volatile or explosive
oils, compounds or substances upon the Premises and/or the Building; or
	 
	 	(b)	 	use: use any of such substances or fluids in the Premises for any purpose
other than the Lessee’s Business.

	7.4.	 	Compliance with fire regulations
	 
	 	 	The Lessee shall:

	 	(a)	 	partitions: comply with insurance, sprinkler or fire alarm regulations in
respect of any partitions which may be erected by or on behalf of the Lessee in the
Premises; and
	 
	 	(b)	 	Cost of alterations to Services: pay to the Lessor upon demand the Cost of
any alteration to any Services, sprinkler or fire prevention equipment and
installations (including alarms) which may become necessary by reason of the
non-compliance by the Lessee or by the Lessee’s Employees with any Requirements,
including those of any insurer of partitions in the Premises PROVIDED THAT if any
Requirement to install sprinkler systems to the Premises arises for any reason other
than the Lessee’s use of the Premises then the Lessor will be responsible for the
Costs of installation of the sprinkler systems and for the costs of complying with
the requirement of any Authority and any regulation in relation to the sprinkler
system including service, maintenance, repair and replacement obligations.

	7.5.	 	Exclusion of Lessor’s liability
	 
	 	 	The Lessee:

	 	(a)	 	Lessee’s risk: acknowledges that all property which may be in the Premises
during the continuance of this Lease shall be at the sole risk of the Lessee, and the
Lessor shall not be liable for any Claim that the Lessee or the Lessee’s Employees or
any Person claiming by, through or under the Lessee may incur or make or any which
arises from:

	 	(1)	 	repair: any fault in the construction or state of repair of
the Building or the Premises or any part of them or the Lessor’s Fixtures; or
	 
	 	(2)	 	defect in Services: any defect in any Service or any
Appurtenance; or
	 
	 	(3)	 	overflow: the flow, overflow, leakage, condensation or
breakdown of any water, air-conditioning, gas, oil or other sources of energy
or fuel, whether from the roof, walls, gutter, downpipes or other parts of the
Building;

	 		 	or from any other cause except as a result of the negligence of any servant or
agent of the Lessor; and

Page 27

 

	 	(b)	 	release: agrees that the Lessor shall not be responsible for and
releases the Lessor from liability in respect of any:

	 	(1)	 	Lessee’s property: Claim relating to any property of the
Lessee or any other Person in the Building or any part of it however
occurring; or
	 
	 	(2)	 	damage: damage or injury to any Person or property in the
Building or on any land near the Building, unless the claim, damage or injury
results from the negligence of any servant or agent of the Lessor.

	7.6.	 	Indemnities
	 
	 	 	Notwithstanding that:

	 	(A)	 	authorisation: any Claims shall have resulted from anything which the Lessee
may be authorised or obliged to do under this Lease; and/or
	 
	 	(B)	 	waiver: at any time any waiver or other indulgence has been given to the
Lessee in respect of any obligation of the Lessee under this Clause 7.6,

	 	 	the Lessee shall indemnify and keep indemnified the Lessor from and against all
Claims for which the Lessor shall or may be or become liable, whether during or after
the Term, in respect of or arising from:

	 	(a)	 	injury to property or person: any loss, damage or injury to property or
Person caused or contributed to by any wilful or negligent act or omission, any
default under this Lease, and/or the use of the Premises, by or on the part of the
Lessee or the Lessee’s Employees except to the extent caused by the Lessor, its
servants or agents;
	 
	 	(b)	 	abuse of services: the negligent or careless use or neglect of the Services
and facilities of the Premises or the Building or the Appurtenances by the Lessee or
the Lessee’s Employees or any other Person claiming through or under the Lessee or of
any trespasser while such trespasser is in the Premises;
	 
	 	(c)	 	water leakage: overflow or leakage of water (including rain water) or from
any Services or from any of the Appurtenances or the Lessor’s Fixtures, whether
originating inside or outside the Premises or caused or contributed to by any act or
omission on the part of the Lessee or the Lessee’s Employees or other Person claiming
through or under the Lessee;
	 
	 	(d)	 	notification of defects: failure of the Lessee to give Notice to the Lessor
of any defect of which the Lessee is aware or should have been aware in any of the
mechanical or any other Services in, to or near the Premises;
	 
	 	(e)	 	plate glass: all Claims relating to plate and other glass caused or
contributed to by any act or omission on the part of the Lessee or the Lessee’s
Employees.

Page 28

 

	8.	 	DAMAGE AND DESTRUCTION
	 
	8.1.	 	Damage to or destruction of Building/Premises
	 
	 	 	If the Building or the Premises or any part of them shall at any time be damaged or
destroyed by any disabling cause so as to render the Premises or any part wholly or
substantially unfit for the occupation and use of the Lessee or (having regard to the
nature and location of the Premises and the normal means of access) wholly or
substantially inaccessible then:

	 	(a)	 	Rent abatement: the Rent or a proportionate part of the Rent according to
the nature and extent of the damage or destruction sustained shall abate, and all
remedies for recovery of such Rent falling due after such damage or destruction shall
be suspended until the Premises have been restored or made fit for the occupation and
use of or accessible to the Lessee (as appropriate);
	 
	 	(b)	 	either Party may terminate: unless the Lessor:

	 	(1)	 	within three (3) Months after the occurrence of any such
destruction or damage shall have given a Reinstatement Notice; and
	 
	 	(2)	 	shall thereafter with all reasonable expedition (and subject
to all necessary approvals first being obtained) proceed to reinstate the
Building and make the Premises fit for occupation and use or accessible to the
Lessee (as appropriate),

	 	 	 	this Lease may be determined by Notice either by the Lessor or by the Lessee to the
other Party;
	 
	 	(c)	 	Lessee may terminate: if the Lessor gives a Reinstatement Notice to the
Lessee and thereafter does not within a reasonable time (having regard to the nature
and extent of the damage or destruction and the time expected to commence and to
carry out the necessary works) reinstate the Premises or make them fit for the
occupation and use of, or render them accessible to, the Lessee (as appropriate), the
Lessee may serve on the Lessor notice of intention to terminate this Lease (the
“First Notice”), and unless the Lessor shall upon receipt of the First Notice proceed
with reasonable expedition and diligence to reinstate the Premises or make them fit
for the occupation and use of, or render them accessible to, the Lessee (as
appropriate), the Lessee may terminate this Lease by giving not less than one (1)
Month’s Notice to the Lessor (the “Second Notice”) and at the expiration of the
Second Notice this Lease shall be at an end;
	 
	 	(d)	 	exceptions: the provisions of Paragraphs (a), (b) and (c) shall not apply
where such damage or destruction has been caused or contributed to, or arises from,
any act or omission of the Lessee or the Lessee’s Employees and any policy or
policies of insurance effected on the Building shall have been avoided, or payment of
the policy moneys refused or reduced, in consequence of any act or default of the
Lessee or of the Lessee’s Employees.

	8.2.	 	Lessor’s right to terminate
	 
	 	 	If in the Lessor’s absolute unfettered opinion (which may be formed at any time including
before or after any Notice referred to in Clause 8.1) the damage or

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	 	 	destruction to the Building or the Premises is such that it is impractical or undesirable
to reinstate the Premises or make them fit for the occupation and use of, or render them
accessible to, the Lessee (as appropriate), the Lessor may terminate this Lease by giving
not less than one (1) Month’s Notice to the Lessee and at the expiration of that Notice
this Lease shall be at an end.
	 
	8.3.	 	Liability
	 
	 	 	No liability shall attach to the Lessor or to the Lessee by reason of termination of this
Lease pursuant to Clause 8.1 or Clause 8.2. Any such termination shall be without
prejudice to the rights of either Party in respect of any preceding breach or
non-observance of any covenant or provision of this Lease.
	 
	8.4.	 	Dispute
	 
	 	 	Any dispute arising under Clause 8.1 shall be determined by a loss assessor being a member
of the Insurance Council appointed by its President for the time being. The Person so
appointed shall be an assessor having substantial experience in assessing buildings of a
similar type within the area in which the Building is located or other comparable area and
shall in making his determination act as an expert and not as an arbitrator and his
determination shall be final and binding on the Parties. The Cost of any such
determination shall be borne by either or both of the Lessor or the Lessee (and if by both
of the Parties in the proportion between them) as the Person making the determination
shall decide.
	 
	8.5.	 	Lessor not obliged to reinstate
	 
	 	 	Nothing in this Lease shall oblige the Lessor to reinstate the Building or the Premises or
the means of access to them.
	 
	9.	 	LESSOR’S COVENANT
	 
	9.1.	 	Quiet Enjoyment
	 
	 	 	Subject to the rights, powers, remedies and reservations of or to the Lessor, including
Clause 1.2(e)(2), the Lessor covenants that, if the Lessee pays the Rent and observes and
performs in a timely fashion the covenants and conditions on its part contained in this
Lease, the Lessee may occupy and enjoy the Premises during the Term without any
interruption by the Lessor or by any Person rightfully claiming through, under or in trust
for the Lessor.
	 
	10.	 	DEFAULT, TERMINATION
	 
	10.1.	 	Default
	 
	 	 	If:

	 	(a)	 	Rent in arrears: the Rent or any part of it is in arrears and unpaid for
fourteen (14) days next after any of the due dates for payment (whether demanded or
not); or
	 
	 	(b)	 	failure to pay other moneys: any moneys (other than Rent) payable by the
Lessee to the Lessor on demand are not paid within fourteen (14) days of the

Page 30

 

	 	 	 	Lessor demanding payment, or if any other moneys payable by the Lessee to the
Lessor are not paid by the due date for payment; or
	 
	 	(c)	 	failure to effect repairs: the Lessee fails or refuses to carry out any
repairs properly required by any Notice within the time specified in the Notice; or
	 
	 	(d)	 	failure to perform other covenants: the Lessee fails to perform or observe
in a timely fashion any of the covenants or conditions contained in this Lease which
ought to be performed or observed by the Lessee; or
	 
	 	(e)	 	assignment for benefit of creditors: any assignment is made of the property
of the Lessee for the benefit of creditors; or
	 
	 	(f)	 	insolvency: the Lessee, being a company, enters into liquidation (whether
voluntary, compulsory or provisional), or is wound-up or dissolved, or enters into a
scheme of arrangement for creditors, or is placed under official management, or a
receiver and/or manager of any of its assets is appointed,

then and in any of such cases the Lessee shall be deemed to have made default. The Lessor
may elect to treat any such default as a repudiation of this Lease by the Lessee.

	10.2.	 	Forfeiture of Lease
	 
	 	 	If the Lease has made default as specified in Clause 10.1 the Lessor may, without
prejudice to any other Claim which the Lessor has or may have or could otherwise have
against the Lessee or any other Person in respect of such default, at any time:

	 	(a)	 	determination by re-entry: subject to any prior demand or Notice as is
required by Law, re-enter into and take possession of the Premises or any part of
them (by force if necessary) and eject the Lessee and all other Persons from them,
and thereupon this Lease shall be absolutely determined;
	 
	 	(b)	 	determination by notice: by Notice to the Lessee determine this Lease, and
from the date of giving such Notice this Lease shall be absolutely determined; and/or
	 
	 	(c)	 	conversion to monthly tenancy: by Notice to the Lessee elect to convert the
unexpired portion of the Term into a tenancy from Month to Month, in which event this
Lease shall be determined as from the giving of such Notice, and thereafter until the
tenancy is determined the Lessee shall hold the Premises from the Lessor as tenant
from Month to Month pursuant to Clause 3.3.

	10.3.	 	Lessor may rectify
	 
	 	 	The Lessor may, but shall not be obliged to, remedy at any time without notice any default
by the Lessee under this Lease, and whenever the Lessor so elects all reasonable Costs
incurred by the Lessor (including legal costs and expenses) in remedying a default shall
constitute a liquidated debt and shall be paid by the Lessee to the Lessor on demand.

	10.4.	 	Waiver

	 	(a)	 	No waiver: The Lessor’s failure to take advantage of any default or breach
of covenant on the part of the Lessee shall not be or be construed as a waiver of

Page 31

 

	 	 	 	it, nor shall any custom or practice which may grow up between any of the
Parties in the course of administering this Lease be construed to waive or to lessen
the right of the Lessor to insist upon the timely performance or observance by the
Lessee of any covenant or condition of this Lease or to exercise any rights given to
the Lessor in respect of any such default.
	 
	 	(b)	 	Waiver of individual default: A waiver by the Lessor of a particular beach
or default shall not be deemed to be a waiver of the same or any other subsequent
breach or default.
	 
	 	(c)	 	Acceptance or demand for rent not waiver: The demand by the Lessor for, or
subsequent acceptance by or on behalf of the Lessor of, Rent or any other moneys
payable under this Lease shall not constitute a waiver of any earlier breach by the
Lessee of any covenant or condition of this Lease, other than the failure of the
Lessee to make the particular payment or payments of Rent or other moneys so
accepted, regardless of the Lessor’s knowledge of any earlier breach at the time of
acceptance of such Rent or other moneys.

	10.5.	 	Tender after determination
	 
	 	 	Any moneys tendered by the Lessee after the determination of this Lease in the
manner described in Clause 10.2(a) or in Clause 10.2(b) and accepted by the Lessor
may be and (in the absence of any express election of the Lessor) shall be
applied:

	 	(a)	 	first: on account of any Rent and other moneys accrued and due pursuant to
this Lease but unpaid at the Termination Date or date of determination of this Lease
(as appropriate); and
	 
	 	(b)	 	secondly: on account of the Lessor’s Costs of re-entry.

	10.6. 	 	Interest on overdue moneys

	 	(a)	 	Interest: The Lessee shall pay to the Lessor interest at the Default Rate on
any Rent or other moneys due by the Lessee to the Lessor on any account whatever
(including all moneys or Costs which are expressed to be payable or reimbursable to
the Lessor upon demand) but unpaid for fourteen (14) days pursuant to this Lease.
	 
	 	(b)	 	Rate: Rent or moneys falling due for payment but unpaid as a result of
consecutive breaches of the same covenant shall bear interest at the rate applicable
to the Rent or other moneys (as appropriate) which were due and unpaid on the breach
of the covenant which first occurred.
	 
	 	(c)	 	Conditions: Such interest shall:

	 	(1)	 	accrue from day to day;
	 
	 	(2)	 	be capitalised on the last day of each Month;
	 
	 	(3)	 	be payable on the first day of each Month where an amount
arose in the preceding Month or Months;
	 
	 	(4)	 	be computed from the due date for payment of the Rent or other
moneys (as appropriate) until payment of such Rent or other moneys in full;
and

Page 32

 

	 	(5)	 	be recoverable in the same manner as Rent in arrears.

	10.7.	 	Damages for breach
	 
	 	 	The Lessee agrees that:

	 	(a)	 	repudiation: if the Lessee’s conduct (whether by act or omission)
constitutes a repudiation of this Lease (or of the Lessee’s obligations under this
Lease), or constitutes a breach of any lease covenants, or the Lessor elects to treat
any default as a repudiation pursuant to Clause 10.1, the Lessee shall compensate the
Lessor for all Costs suffered by reason of or arising from any such repudiation or
breach;
	 
	 	(b)	 	Costs of repudiation: the Lessor shall be entitled to recover Costs against
the Lessee in respect of repudiation or breach of covenant for the damage suffered by
the Lessor for the Term;
	 
	 	(c)	 	Lessors entitlement to damages: the Lessor’s entitlement to recover damages
from the Lessee or any other Person shall not be limited for any reason or affected
by any of the following:

	 	(1)	 	abandonment: if the Lessee abandons or vacates the Premises;
	 
	 	(2)	 	termination: if the Lessor elects to re-enter the Premises or
terminate this Lease;
	 
	 	(3)	 	repudiation: if the Lessor accepts the Lessee’s repudiation; or
	 
	 	(4)	 	conduct: if the Parties’ conduct (or that of any of their
servants or agents) constitutes or may constitute a surrender by operation of
law.

	10.8.	 	Lessor may institute proceedings at any time
	 
	 	 	The Lessor shall be entitled at any time in the Lessor’s absolute discretion to institute
legal proceedings claiming damages against the Lessee in respect of the Term, including
the period before and after the repudiation, abandonment, termination, acceptance of
repudiation or surrender by operation of law referred to in Clause 10.7, whether the
proceedings are instituted either before or after such conduct.
	 
	10.9.	 	Lessor to mitigate damages
	 
	 	 	If the Lessee vacates the Premises, whether with or without the Lessor’s consent, the
Lessor shall take responsible steps to mitigate its loss and to endeavour to release the
Premises at a reasonable rent and on reasonable terms. The Lessor’s conduct taken in
pursuance of this duty to mitigate damages shall not of itself constitute acceptance of
the Lessee’s breach or repudiation or a surrender by operation of law.

	10.10.	 	Essential terms and damages

	 	(a)	 	Essential terms: The following are essential terms of this
Lease:
	 
	 	 	 	Clause 4.1 (permitted use)
	 
	 	 	 	Clause 4.3(a) (compliance with Laws and Requirements)
	 
	 	 	 	Clause 6.1 (no disposal of Lessee’s interest)

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	 	 	 	Clause 6.4 (no mortgage etc)
	 
	 	 	 	Clause 13.1 (bank guarantee)
	 
	 	 	 	Payment of the Base Rent under Clause B.1 of, or of other moneys under, the Rent
Schedule within 14 days of the due date.

	 	(b)	 	Calculation: Should the Lessor terminate this Lease following any breach of
an essential term then, without prejudice to any other right or remedy of the Lessor,
the Lessor shall be entitled to recover from the Lessee the difference between the
net present value (as determined by a member of the Institute of Chartered
Accountants in Australia appointed at the request of the Lessor by the President of
that Institute) of the aggregate of Rent and other moneys payable by the Lessee under
this Lease for the unexpired residue of the Term less the net present value of the
aggregate of Rent and other money expected to be received from a new tenant or
tenants of the Premises during the unexpired residue of the Term. In addition the
Lessee shall pay all fees charged by the experts appointed under this clause.

	11.	 	DETERMINATION OF TERM
	 
	11.1.	 	Lessee to yield up
	 
	 	 	The Lessee shall at the expiration or sooner determination of the Term vacate the Premises
and Make Good.

	11.2.	 	Passing of title to Lessee’s fittings
	 
	 	 	The Lessee acknowledges and agrees that title to the Lessee’s Fittings (other than those
of the Lessee’s Fittings which must be removed from the Premises under Clause 11.1) passes
to the Lessor at the Terminating Date or the date of sooner determination of this Lease
and such fittings are deemed to be Lessor’s Fixtures as and from the expiry of the
relevant date on which the Lease ends. The Lessor accepts those fittings in the state of
repair and condition as of the relevant date on which the Lease ends.

	11.3.	 	Lessee not to cause damage
	 
	 	 	The Lessee shall not cause or contribute to any damage to the Premises or to the Building
in carrying out the Make Good Works. Should the Lessee cause any damage to the Premises or
to the Building in the carrying out of the Make Good Works the Lessee shall make good any
such damage and in any event shall leave the Premises in the order and condition required
under this Lease.

	11.4.	 	Failure to Make Good
	 
	 	 	If the Lessee fails to comply with Clause 11 .1, the Lessor may carry out the Make Good
Works at the risk and at the Cost of the Lessee.

	11.5.	 	Lessee to indemnify and pay Lessor’s Costs
	 
	 	 	The Lessee shall:

	 	(a)	 	Indemnity: indemnify and keep indemnified the Lessor in respect of the Make
Good Works or any breach of this Clause 11 and also in respect of all Claims

Page 34

 

	 	 	 	which the Lessor may suffer or incur at the suit of any Person (other than the
Lessee) claiming an interest in the Lessee’s Fittings by reason of the Lessor acting
in any manner permitted in Clause 11.4; and
	 
	 	(b)	 	Costs: pay to the Lessor as a liquidated debt payable on demand any Costs
incurred by the Lessor in exercising its rights pursuant to Clause 11.4, including
any excess of Costs over moneys received in carrying out the Make Good Work.

	11.6.	 	Earlier breaches
	 
	 	 	The termination or determination of this Lease shall not prejudice or affect any rights or
remedies of the Lessor against the Lessee in respect of any earlier breach by the Lessee
of any covenants and conditions on the part of the Lessee.

	12.	 	MISCELLANEOUS
	 
	12.1.	 	Notices:

	 	(a)	 	Execution of Lessor’s Notice: Any Notice served or given by the Lessor
pursuant to this Lease shall be valid and effectual if signed by any Officer or
solicitors for the time being of the Lessor or any other Person nominated from time
to time by the Lessor.
	 
	 	(b)	 	Notice of Lessee’s address: The Lessee shall forthwith provide the Lessor
with a Notice containing full particulars of the address, telex and facsimile
information of the Lessee and of any Guarantors, and shall update such Notice in the
event of any change.
	 
	 	(c)	 	Service of Notice on Lessee: Any Notice required to be served or which the
Lessor may elect to serve on the Lessee shall be sufficiently served if:

	 	(1)	 	personal: served personally or if left addressed to the Lessee
on the Premises;
	 
	 	(2)	 	telex or facsimile: sent by telex or facsimile machine to the
Lessee’s telex or facsimile machine; or
	 
	 	(3)	 	prepaid post: forwarded by prepaid security post to the last
known place of business or abode of the Lessee or the Lessee’s registered
office if the Lessee is a corporation.

	 	(d)	 	Service of Notice on Lessor Any Notice required to be served on the Lessor
shall be sufficiently served if:

	 	(1)	 	personal: served personally;
	 
	 	(2)	 	telex or facsimile: sent by telex or facsimile machine to the
Lessors telex or facsimile machine; or
	 
	 	(3)	 	prepaid post: forwarded by prepaid security post addressed to
the Lessor.

Page 35 

 

All such Notices must be addressed to the Lessor at the address specified in this
Lease or at such other address as the Lessor shall from time to time nominate.

	 	(e)	 	Time of service: Any Notice sent by:

	 	(1)	 	post: post shall be deemed to be served on the second business
day after the day it was posted;
	 
	 	(2)	 	telex or facsimile: telex or facsimile shall be deemed to have
been served at the time and on the day that the whole of the Notice has been
transmitted from the sending telex or facsimile machine and in the case of:

	 	a.	 	telex: a telex — the answerback of the receiving
machine has been received by the sending machine; or
	 
	 	b.	 	facsimile: a facsimile — the receiving machine
does not forthwith indicate any malfunction in the transmission.

	2.2.	 	Costs
	 
	12.3.	 	The Lessee shall pay to the Lessor on demand:

	 	(a)	 	stamp duty: all stamp duty (including penalties and fines other than
penalties and fines due to the default of the Lessor); and
	 
	 	(b)	 	Lessor’s other Costs: all the Lessors reasonable legal and other Costs of
and incidental to:

	 	(1)	 	this Lease: the stamping and registration of this Lease and
any certified copy of it required by the Lessor;
	 
	 	(2)	 	consent: any consent required under this Lease;
	 
	 	(3)	 	assignment or subletting: any assignment or subletting;
	 
	 	(4)	 	surrender or termination: any surrender or termination of this
Lease otherwise than by effluxion of time; and
	 
	 	(5)	 	default: default by the Lessee or the Lessee’s Employees in
observing or performing any covenants contained or implied in this Lease;
	 
	 	(6)	 	enforcement: the actual or contemplated enforcement of, or
actual or contemplated exercise, preservation or consideration of any rights,
powers or remedies under this Lease.

	12.4	 	Reservations
	 
	 	 	The Lessor reserves to itself and all Persons claiming by, through or under the Lessor,
after reasonable notice (except in the case of an emergency when no notice shall be
necessary) the right to install, maintain, use, repair, alter, service and replace any
Services or any part of them including any pipe, duct, wire and plant for the Land and/or
for the Building.

Page 36 

 

	12.5.	 	Easements
	 
	 	 	The Lessor may, for the purpose of the provision of public or private access to the
Premises or the Building, or for the purpose of rectifying any encroachment, or for the
support of structures hereafter erected on or from adjoining land, or for any Services,
dedicate land or transfer, grant or create any easement or other right in favour of, or
enter into any arrangement or agreement with, any owners, lessees or occupiers or others
having an interest in any land (including the Land) near the Premises or with any
Authority (pursuant to any valid and enforceable requirement of any such Authority) as the
Lessor thinks fit. This Lease shall be deemed to be subject to any such easement or other
right as envisaged by this Clause 12.4 and the Lessee shall promptly upon request by the
Lessor confirm to the Land Titles Office or other relevant Authority its consent to that
easement or other right.
	 
	12.6.	 	Power of attorney
	 
	 	 	The Lessee from the Commencement Date irrevocably:

	 	(a)	 	appointment: nominates and appoints the Lessor and/or its officers and/or
its nominees severally to be the lawful attorney(s) of the Lessee to act, at any time
after the power to re-enter contained in this Lease has been exercised (a sufficient
proof of which for any purpose shall be a statutory declaration of the Lessor or of
any Officer of the Lessor), to execute a transfer or a surrender of this Lease or
withdrawal of caveat (as appropriate) and to procure the same to be registered, and
for this purpose to use the name of the Lessee and generally to do anything relating
to the Premises as fully and effectually as the Lessee could do; and
	 
	 	(b)	 	ratification: covenants for itself, its successors and assigns to ratify and
confirm whatever any of the Attorney(s) or any substitute or any nominee as referred
to in Paragraph (a) lawfully does or causes to be done relating to the Premises. The
Director of Land Titles is authorised to act upon the said statutory declaration and
to accept it as sufficient evidence of the determination of this Lease.

	13.	 	GUARANTEES AND INDEMNITIES
	 
	13.1.	 	Bank Guarantee:

	 	(a)	 	Lessee to provide: The Lessee must:

	 	(1)	 	amount: on or before the Commencement Date give to the Lessor
a Bank Guarantee for the amount specified in Item 16;
	 
	 	(2)	 	additional guarantee: whenever the Base Rent is reviewed
following a Review Date, if so required by the Lessor, provide an additional
Bank Guarantee for an amount calculated in accordance with the following
formula:

	 
	 	 	A =	R + O – G where in this clause:
	 
	 	 	A =	Amount of the additional Bank Guarantee;

Page 37

 

 

	 	 	R =	Base Rent payable for the Lease Year following
the relevant Review Date;
	 
	 	 	O =	Lessee’s Operating Expense Contribution for
the Outgoings Year ending next before the relevant Review Date;
	 
	 	 	G =	the total amount of the Bank Guarantees given
by the Lessee to the Lessor pursuant to clauses 13.1(a)(1) and
13.1(a)(2) as at the relevant Review Date.

	 	(3)	 	keep current: at all times ensure that any Bank Guarantee is
kept current and enforceable; and
	 
	 	(4)	 	replace: where the Lessor makes demand on any Bank Guarantee,
provide a replacement Bank Guarantee equal to the amount from time to time
properly claimed by the Lessor.

	 	(b)	 	Lessor may demand: If the Lessee breaches or fails to comply with any of the
Lessee’s obligations under this Lease, the Lessor may without limiting any other
available remedy demand payment under the Bank Guarantee to recover the whole or any
part of any loss suffered as a result of the Lessee’s default.
	 
	 	(c)	 	Intentionally deleted.

	13.2.	 	Personal guarantee
	 
	 	 	The Guarantor guarantees to the Lessor:

	 	(a)	 	Rent: the due payment by the Lessee of the Rent and other moneys covenanted
or agreed to be paid; and
	 
	 	(b)	 	other covenants: the timely performance and observance of all the covenants
and conditions contained or implied in this Lease and to be performed and observed by
the Lessee.

	13.3.	 	Indemnity
	 
	 	 	The Guarantor indemnifies the Lessor and agrees at all times to keep the Lessor
indemnified from and against all Claims which the Lessor may suffer or incur consequent
upon or arising directly or indirectly out of any breach or non-observance by the Lessee
of any of the covenants or conditions contained or implied in this Lease or any extension
or renewal of it and to be performed or observed by the Lessee.
	 
	13.4.	 	Liability of Guarantor:

	 	(a)	 	Liability of Guarantor: The rights, remedies and recourse of the Lessor
pursuant to Clauses 13.2 and 13.3 shall not in any way be prejudiced or affected and
shall remain fully enforceable, and the liability of the Guarantor under Clauses 13.2
and 13.3 shall not be prejudiced or affected, notwithstanding any one or more or all
of the following circumstances:

Page 38

 

 

	 	(1)	 	forbearance: the granting of any time, credit, forbearance, indulgence or concession at any
time by the Lessor to the Lessee or to any Guarantor;
	 
	 	(2)	 	release: any absolute or partial release of the Lessee or any Guarantor or any compromise
with the Lessee or any Guarantor;
	 
	 	(3)	 	variation of this Lease: any variation of the provisions of this Lease or any extension or
renewal of it and any extension or renewal or holding over of the Term or other continued
occupation of the Premises by the Lessee;
	 
	 	(4)	 	composition: any composition, compromise, release, discharge, arrangement, abandonment,
waiver, variation, relinquishment or renewal of any security or right by the Lessor;
	 
	 	(5)	 	assignment of Lease: any assignment of this Lease or sublease of the Premises or any part of
them;
	 
	 	(6)	 	determination: any termination or determination of this Lease (whether by effluxion of time,
re-entry, forfeiture, surrender or otherwise);
	 
	 	(7)	 	non-recoverability: the fact that the Rent or any other moneys or any part of them may not
be recoverable or may cease to be recoverable or may never have been recoverable, or that any
transaction affecting in any way the Rent or the obligations contained or secured by this
Lease is void, voidable or unenforceable in whole or in part whether initially or otherwise;
	 
	 	(8)	 	waiver: any failure or agreement not to sue, exchange or modification made or any other
dealing, act or omission (whether constituting a waiver, election, estoppel or otherwise) by
the Lessor with respect to any judgment, order for payment of moneys, specialty instrument,
negotiable or otherwise, or other security whatever recovered, held or enforceable by the
Lessor or with respect to any obligation or liability whatever in respect of all or any of
the Rent and other moneys payable under this Lease or the obligations contained in this
Lease.
	 
	 	(9)	 	disability or death: the death, disability, bankruptcy, infancy, deed or arrangement,
assignment or composition for the benefit of creditors, winding-up, scheme of arrangement,
reduction of capital, capital reconstruction or the appointment of receiver and/or manager
(whether by the court or under the powers contained in any instrument) or official management
of the Lessee or any Guarantor or notice of any of these circumstances;
	 
	 	(10)	 	non-execution: the fact that one or more of the Persons named in this Lease as a Guarantor
may never execute this Lease as Guarantor or that the execution of this Lease by any one or
more of the Guarantor (other than the Person sought to be made liable under Clause 13.2 or
Clause 13.3) is or may become unenforceable, void or voidable; or
	 
	 	(11)	 	exercise of right of re-entry: any exercise or purported exercise by the Lessor of its right
of re-entry.

Page 39

 

 

	 	(b)	 	Irrevocable: This guarantee and indemnity shall be irrevocable and
continuing and shall extend to cover all obligations of the Lessee to the
Lessor however arising, and they shall continue and remain in full force and
effect until the due performance and observance by the Lessee of all the
covenants and conditions to be performed and observed by the Lessee in
accordance with the terms of this Lease.
	 
	 	(c)	 	Guarantee not prejudiced: Neither the Guarantor’s liability
nor the Lessor’s rights under this guarantee and indemnity or otherwise shall
be prejudiced or discharged by any act or omission or any event or securities
of any description which might otherwise have the effect (whether at law in
equity or under any Law) of prejudicing or discharging the liability of the
Guarantor, either as guarantor or principal debtor or as an indemnifier.
	 
	 	(d)	 	Guarantor liable notwithstanding any Law: The Guarantor
further agrees that any payment made to the Lessor and later avoided by
provisions of any Law shall be deemed not to have discharged the Guarantor’s
liability, and in any such event
the Lessor, the Lessee and the Guarantor shall be restored to the
rights which each respectively would have had if the payment had not
been made.
	 
	 	(e)	 	Indemnity on disclaimer: The Guarantor agrees to indemnify
and keep indemnified the Lessor against all Claims, direct or indirect,
sustained or incurred by the Lessor consequent upon any disclaimer of this
Lease by a liquidator of the Lessee for the residue of the Term which would
have remained if there had been no disclaimer.
	 
	 	(f)	 	Guarantor not prove in liquidation: The Guarantor shall not
prove or claim in any such liquidation, composition, arrangement or
assignment or in respect of such appointment until the Lessor has received
one hundred cents in the dollar in respect of the moneys due, owing or
payable by the Lessee to the Lessor, and the Guarantor shall hold in trust
for the Lessor such proof and claim and any dividend received on it.

	13.5.	 	Guarantee to enure
	 
	 	 	If this Lease is transferred or assigned to any Person or Persons the benefit
of this guarantee and indemnity shall extend to the transferee or assignee and the
benefit of this guarantee and indemnity shall continue to enure concurrently for
the benefit of the Lessor notwithstanding any such transfer or assignment.
	 
	13.6.	 	Notwithstanding any other provision of this Lease, the Guarantor’s liability under Clauses
13.2 to 13.4 shall cease upon the date that the Lessee gives to the Lessor the Bank Guarantee
referred to in Clause 13.1(a)(1). Nothing in Clauses 13.2 to 13.5 shall affect the Lessee’s
obligation to give such Bank Guarantee to the Lessor prior to the Commencement Date which
obligation is an essential term of this Lease.

Page 40

 

RENT SCHEDULE

	A.	 	DEFINITIONS
	 
	 	 	In this Lease the following terms have the following meanings unless the
context otherwise requires:
	 
	 	 	“Base Rent” means the amount of the annual base rent specified in Item
11 as varied from time to time in accordance with the provisions of this Lease:
	 
	 	 	“Dispute Notice” means the Notice given by the Lessee to the Lessor
within the Dispute Period disputing the assessment of the Base Rent in the
Lessor’s Rent Review Notice;
	 
	 	 	“Dispute Period” means the period of twenty-eight (28) days (in which
respect time shall be of the essence) which immediately follows the date on which
the Lessor’s Rent Review Notice is served on the Lessee or such further period
(if any, and in respect of which time shall be Of the essence) as the Lessor may
in its absolute discretion by Notice on any particular occasion grant to the
Lessee;
	 
	 	 	“Index Number” means:

	 	(a)	 	Consumer Price Index: the Consumer Price Index Sydney All Groups number
published from time to time by the Australian Bureau of Statistics, but if
such Index is
suspended or discontinued then:
	 
	 	(b)	 	Average Weekly Earnings: the State Average Weekly Earnings
of All Employees published from time to time by the Australian Bureau of
Statistics; or
	 
	 	(c)	 	other cost of living index: if the system or practice of
the determination of the State Average Weekly Earnings of All Employees
ceases, the index published by the Australian Bureau of Statistics which
reflects changes in the cost of living in Sydney at the date of this Lease
and at the time of variation of the rental, as determined by:

	 	(1)	 	as agreed: agreement between the
Parties, or
	 
	 	(2)	 	as determined: if the Parties
are unable to agree, the President of the Australian Institute
or by some person nominated by him, whose decision shall be
conclusive and binding;

“Lease Year” means each period of twelve (12) Months commencing on and
from the Commencement Date;

“Lessee’s Operating Expense Contribution” means the amount from time to
time payable by the
Lessee to the Lessor under Clause C.1;

“Lessor’s Rent Review Notice” means a Notice issued under Clause B.3(a)
containing the Lessor’s assessment of Base Rent;

“Nomination Period” means the period of fourteen (14) days (in which
respect time shall be of the essence) which immediately follows the date on which
the Dispute

Page 41

 

Notice is given or such extended period (if any, and in respect of which time shall be of the
essence) which the Lessor and the Lessee may agree in writing;

“Operating Expenses” means the total of all amounts paid by the Lessor (or for the
payment of which the Lessor may be or become liable) in any Outgoings Year in respect of the
Building and/or the Land, whether by direct assessment or by virtue of any covenant in any head
lease or otherwise, including:

	 	(a)	 	statutory or regulatory: all Rates payable to any Authority or under any Law in
respect of:

	 	(1)	 	the Building or any part of it;
	 
	 	(2)	 	the Land or any part of it;
	 
	 	(3)	 	the Lessors ownership and operation of the whole or any part of
the Building and/or the Land; and/or
	 
	 	(4)	 	receipts of Rent and other moneys payable in respect of the whole
or any part of the Building and/or the Land;

including:

	 	(A)	 	council rates: all Rates payable to any Authority relating to the
use and occupation of the Building and/or for any Services of the type from time
to time provided by the local government Authority for the locality in which the
Building is
situated, and for waste and general garbage removal from the Building,
including any excess;
	 
	 	(B)	 	water rates: all Rates payable to any Authority for the provision,
reticulation or discharge of water and/or sewage and/or drainage, including
excess water or water or other usage charges and meter rents; and
	 
	 	(C)	 	land tax: land taxes or taxes of the nature of a tax on land,
computed on the taxable value of the Land at the rate which would be payable by
the Lessor if the Land were the only land owned by the Lessor in the state;

	 	(b)	 	insurances: all insurance premiums and amounts payable in respect of
insurance:

	 	(1)	 	building: on the Building or any part of it for its full insurable
value;
	 
	 	(2)	 	loss of rents: (subject to the exclusion of any rents arising from
normal vacancies during letting up periods) for loss of any rents or other
moneys (whether separate or otherwise included in any rents or other moneys
payable in respect of any tenancy or occupation of the Building) arising from
damage or destruction of the Building or any part of it or arising from
diminution or loss
of any means of access or other similar causes;
	 
	 	(3)	 	public liability: for public liability;
	 
	 	(4)	 	workers’ compensation: for workers’ compensation for all employees
of the Lessor engaged in employment in connection with the Building, but

Page 42

 

	 	 	 	where any such employee is engaged in connection with other buildings of
the Lessor the Cost of workers’ compensation insurance shall be
apportioned by the Lessor on a equitable pro rata basis; and
	 
	 	(5)	 	other risks: for such other insurable risks (including machinery
breakdown and boiler explosion) as the Lessor reasonably deems appropriate from
time to time subject to the Lessor providing details to the Lessee of the
item(s) insured and the cost of the premium(s).

In relation to the insurances referred to in Clause A(b)(2) and (4) the Lessor shall
from time to time obtain multiple quotes and shall provide copies to the Lessee
together with the Lessor’s reasons for selecting the insurances chosen by him.

	 	(c)	 	other Costs: any other Costs properly incurred by the Lessor in the management, operation
and maintenance of the Building and/or the Land;

“Outgoings Year” means each period of twelve (12) Months ending on the date in each year
specified in Item 17, notwithstanding that part of any such twelve (12) Month period does not fall
within the Term (or any period of holding over as appropriate);

“Percentage Increase Date” means each of the dates (if any) so specified as a
“Percentage Increase Date” in Item 12;

“Rates” includes all rates, taxes, charges, Costs, assessments, duties, impositions,
levies, surcharges, fees, bank debits, tax or financial institution duty of any Authority or of
any Law but excludes any:

	 	(a)	 	income tax: tax on the assessable income of the Lessor; or
	 
	 	(b)	 	Rates assessed on the Premises: Rates assessed directly in respect of the Premises and paid
by the Lessee;

“Recalculation Date” means each of the dates (if any) so specified as a “Recalculation
Date” in Item 12;

“Review Date” means each of the dates (if any) so specified as a “Review Date” in Item
12;

“Umpire” means a Person who:

	 	(a)	 	a Valuer: is at the relevant time a Valuer;
	 
	 	(b)	 	appointment: is appointed pursuant to Clause B.4;
	 
	 	(c)	 	acceptance: accepts his appointment in writing; and
	 
	 	(d)	 	undertaking: undertakes to hand down his determination of the Base Rent within twenty-eight
(28) days of his being instructed to proceed;

“Valuer” means a Person who:

	 	(a)	 	full member: is a full member of not less than five (5) years standing of the Australian
Institute;

Page 43

 

	 	(b)	 	licence: is the holder of a licence to practice as a
valuer of the kind of premises leased by this Lease;
	 
	 	(c)	 	active: is active in the relevant market at the time of his
appointment; and
	 
	 	(d)	 	experience: has at least three (3) years experience in
valuing premises of the nature of the Premises;

“Valuer’s Review Period’’ means the period of twenty-eight (28) days
which immediately follows the Nomination Period or such extended period as the
Lessor and the Lessee may agree in writing.

	B.	 	BASE RENT
	 
	B.1 	 	Payment of Base Rent: The Lessee covenants with the Lessor to pay to the Lessor, without
demand and without any deduction or right of set-off whatever, the Base Rent reserved by this
Lease by equal Monthly instalments (and proportionately for any part of a Month) in advance
on the first day of each Month. The first instalment shall be paid on the Commencement Date.
All such instalments shall be paid to such place and by such means as the Lessor may from
time to time direct.
	 
	B.2 	 	Index review of Base Rent: The Base Rent shall be varied on each Recalculation Date in
accordance with the following formula:

	 	R = 	 	r x N where in this clause:

   n
	 
	 	R = 	 	Base Rent payable for the following Lease Year;
	 
	 	r = 	 	Base Rent payable during the Lease Year just ended;
	 
	 	n = 	 	Index Number last published before the commencement of
the Lease Year just ended.
	 
	 	N = 	 	 Index Number last published before the expiration of the
Lease Year just ended or n, whichever is the greater.

	B.3	 	Market review of Base Rent: Should the Lessor wish to review the Base Rent as at any Review
Date then the following procedure shall apply:

	 	(a)	 	Lessor’s Rent Review Notice: Not earlier than three (3)
Months before and not later than three (3) Months after each Review Date the
Lessor may by Notice notify the Lessee of the Lessor’s assessment of the
Base Rent appropriate to the Premises, having regard to the criteria
contained in Clause B.4(h) (other than Paragraph (1)) and the terms of
Clause B.4(j) which are to apply to a review of the Base Rent from that
particular Review Date.
	 
	 	(b)	 	Consequences of Lessor failing to give timely Review
Notice: Provided any such review is undertaken before the immediately
following Review Date the Lessee agrees that:

	 	(1)	 	Lessor’s right to later review: the Lessor shall not, by reason
of its failure to give the Lessor’s Rent Review Notice during the
period

Page 44

 

	 	 	 	specified in Clause B.3(a) in relation to any Review
Date, forfeit its right to have the Base Rent reviewed
as from any such Review Date;
	 
	 	(2)	 	acceptance of Rent: the payment
of and receipts for Base Rent at a lesser amount due to the
Lessor’s failure to review during the period specified in
Clause B.3(a) shall not prejudice the Lessor’s right
subsequently to demand payment of any additional rent payable
by the Lessee as a result of such review and whether pursuant
to the provisions of this Clause B.3 or of Clause B.4; and
	 
	 	(3)	 	retrospective effect: the
reviewed Base Rent which should have been paid shall date back
to and be payable from the particular Review Date.

	B.4 	 	Lessee’s dispute of Base Rent: If the Lessee disagrees with the Base Rent in the
Lessor’s Rent Review Notice and the Lessor and the Lessee are unable to agree
upon the Base Rent to apply from a particular Review Date then
the following
procedure shall apply:

	 	(a)	 	Lessee to give Dispute Notice: The Lessee shall within the
Dispute Period give the Dispute Notice to the Lessor that the Lessee
disputes the Base Rent assessed by the Lessor and requires the review of the
Base Rent to be determined in accordance with this Clause B.4.
	 
	 	(b)	 	Lessee to nominate Valuer: The Lessee shall within the
Nomination Period by Notice to the Lessor nominate a Valuer.
	 
	 	(c)	 	Lessor to nominate Valuer: The Lessor shall within the
Nomination Period by Notice to the Lessee nominate a Valuer.
	 
	 	(d)	 	Valuer’s determination: Subject to Clause B.4(e), to
Clause B.4(f) and to Clause B.4(g), the Valuers so nominated shall within
the Valuer’s Review Period jointly determine the current market rent of the
Premises as at that particular Review Date.
	 
	 	(e)	 	Consequences of Lessee’s failure: If the Lessee fails:

	 	(1)	 	to object: to give the Dispute
Notice to the Lessor within the Dispute Period; and/or
	 
	 	(2)	 	to nominate Valuer: to nominate
a Valuer in accordance with Clause B.4(b) within the Nomination
Period;

the
Base Rent shall be as stated in the Lessor’s Rent Review Notice and shall be payable by the Lessee accordingly.

	 	(f)	 	Consequences of Lessor’s failure to nominate Valuer: If
the Lessor fails to nominate a Valuer pursuant to Clause B.4(c) within the
Nomination Period:

	 	(1)	 	determination by Lessee’s
Valuer: the determination of the Base Rent shall be made by the
Lessee’s Valuer within the Valuer’s Review Period, and his
determination shall be final and binding on the Parties as if
he had been appointed by consent; and

Page 45

 

	 	(2)	 	Costs: subject to Clause B.4(j)(2) the Costs of the Lessee’s
Valuer’s determination, if pursuant to Clause B.4(f)(1), shall be apportioned
equally between the Lessor and the Lessee.

	 	(g)	 	Procedure in event of disagreement between Valuers: Should the Valuers be unable to agree on
the Base Rent of the Premises within the Valuers Review Period then:

	 	(1)	 	Lessee’s Valuer’s determination greater: if the Base Rent as
assessed by the Valuer nominated by the Lessee is more than that assessed by the
Valuer nominated by the Lessor, then the Base Rent of the Premises shall be as
determined by the Lessee’s Valuer;
	 
	 	(2)	 	difference between assessment not greater than 3%: if the
difference between the respective assessments of the Valuers is not greater than
three per cent (3%) of the aggregate of their assessments, then the Base Rent of
the Premises from the particular Review Date shall be deemed to be one half of
the aggregate of their assessments;
	 
	 	(3)	 	appointment of Umpire: in all circumstances other than those
covered by Paragraphs (1) and
(2) of this Clause B.4(g), the Valuers shall agree upon and appoint an
Umpire;
	 
	 	(4)	 	consequence of Valuer’s failure: if either or both of the Valuers
for any reason whatsoever fail:

	 	(A)	 	to appoint Umpire: to appoint the Umpire
within the period of seven (7) days immediately following the
Valuer’s Review Period (including any failure to agree upon the
nomination of the Umpire); or
	 
	 	(B)	 	to assess: to assess the Base Rent
within the Valuer’s Review Period;

then
either Valuer or any Party may request the President of the Australian Institute to appoint the Umpire;

	 	(5)	 	Umpire’s determination of Base Rent: if it becomes necessary for
the Umpire to determine the Base Rent his determination shall be final and
binding on the Parties and in considering his determination the Umpire shall:

	 	(A)	 	evidence of Valuers: have regard to any
evidence submitted by the Valuers as to their assessments of the
Base Rent; and
	 
	 	(B)	 	written determination: give his
determination and the reason for it in
writing to the Lessor and to the Lessee.

	 	(h)	 	Market rent criteria: In determining the Base Rent any Valuer or Valuers (including the
Umpire) shall determine the current market rent for the Premises as at the particular Review
Date having regard to the terms and conditions of this Lease and shall:

	 	(1)	 	experts: each be deemed to be acting as an expert and not as an
arbitrator;

Page 46

 

	 	(2)	 	exclusions: disregard:

	 	(A)	 	goodwill: the value of any goodwill
attributable to the Lessee’s Business and the value of the Lessee’s
Fittings or any other interest in the Premises created by this
Lease;
	 
	 	(B)	 	condition of premises: any impaired
condition of the Premises if such condition results from any work
carried out or not carried out on the Premises by the Lessee or
from any breach of any term of this Lease by the Lessee; and
	 
	 	(C)	 	occupational arrangement: any sublease
or other sub-tenancy agreement or occupational arrangement in
respect of any part of the Building and any rental, fees or moneys
payable under any of them;

	 	(3)	 	length of term: have regard to the length of the whole of the
Term, disregarding the fact that part of the Term will have elapsed at the
Review Date, and have regard to the provisions of any options for extension of
the Term;
	 
	 	(4)	 	comparable premises and locations: subject to Paragraph
(8), have regard to the rental value of comparable premises in
comparable locations;
	 
	 	(5)	 	use of premises: consider the Premises as available for use for
any purpose for which the Premises may be used in accordance with all relevant
Laws and the provisions of this Lease;
	 
	 	(6)	 	all covenants observed: assume that all covenants on the part of
the Lessee and the Lessor contained in this Lease have been fully performed in a
timely manner;
	 
	 	(7)	 	concessions: disregard the existence of any rent-free period,
financial contribution, allowance or inducement, whether in cash or kind, or
other concession given to the Lessee to secure the tenancy the subject of this
Lease, or given to the lessee of any comparable premises, or customarily or
likely to be offered to tenants; and
	 
	 	(8)	 	deemed reinstatement: in the event that the Premises or the
Building have been damaged, destroyed or rendered inaccessible in whole or part,
assume that the Premises or the Building have been reinstated or made accessible
(as appropriate).

	 	(i)	 	Costs of Valuers: Subject to Clause B.4(f)(2) and to Clause B.4(j)(2) the Costs
incurred in the determination of the Base Rent pursuant to Clause B4 shall be
borne by the Lessor and by the Lessee in the following manner:

	 	(1)	 	Valuer: the Costs of each Valuer appointed by a Party — by the
Party so appointing the particular Valuer;
	 
	 	(2)	 	Umpire: the Costs of the Umpire — by the Parties equally.

	 	(j)	 	After review:
Notwithstanding any other provision of this Lease:

Page 47

 

	 	(1)	 	Base Rent payable after review:
the Base Rent payable for the period from any Review Date until
the next Review Date or next variation under Clause B.2 or
Termination Date or other determination of this Lease (as
appropriate) shall be the greater of:

	 	(A)	 	the
lesser of the Base Rent determined pursuant to
Clause B.3 or Clause B.4 (as appropriate) and the
Base Rent payable immediately before the relevant
review increased by ten percent (10%); and
	 
	 	(B)	 	the
Base Rent payable immediately before the relevant
review increased by five percent (5%).

	 	(k)	 	Date of effect of determination of Base Rent: Subject to
Clause B.4(l) any variation in the Base Rent resulting from a determination
under Clause B.3 and/or Clause B.4 (as appropriate) shall be effective on and
from that particular Review Date.
	 
	 	(I)	 	Payment of Base Rent pending review: Where a review pursuant
to Clause B.3 and/or Clause B.4 of the Base Rent is completed after the
relevant Review Date then the Base Rent from the Review Date shall be paid by
the Lessee at the rate calculated as follows:

	 	B = 	 	R + (L - R) where in this clause:

           2
	 
	 	B = 	 	Base Rent payable by the Lessee pending review;
	 
	 	R = 	 	Base Rent payable immediately
before the relevant Review Date;
	 
	 	L = 	 	the rent specified in the
Lessor’s Rent Review Notice;

and
on the completion of the review if the Base Rent payable in respect of the period commencing on the Review Date is determined to

be:

	 	(1)	 	less: less than that paid by the
Lessee since the Review Date, then the Lessor shall at its
election either:

	 	(A)	 	credit the account of the Lessee; or
	 
	 	(B)	 	refund to the Lessee;

the
amount of any excess Base Rent so paid by the Lessee within one
(1) Month of the date of determination of the Base Rent by the
Valuers or by the Umpire (as appropriate); or

	 	(2)	 	greater: greater than that paid
by the Lessee since the Review Date, then the Lessee shall pay
to the Lessor the deficiency in Base Rent so paid within
fourteen (14) days of the date of determination of the Base
Rent by the Valuers or by the Umpire (as appropriate).

	B.5	 	Percentage Increase of Base Rent: The Base Rent shall be increased on each Percentage
Increase Date by three and a half percent (3.5%).

Page 48

 

	C.	 	OPERATING EXPENSES
	 
	C.1	 	Lessee’s Operating Expense Contribution: In addition to the Base Rent the Lessee shall
pay to the Lessor the Lessee’s Operating Expense Contribution for each Outgoings Year, the
amount of which shall be calculated as follows:

	 	C = 	 	N x I where in this clause:

   Y
	 
	 	C = 	 	Lessee’s Operating Expense Contribution;
	 
	 	N = 	 	the number of days of the Term or holding over (as
appropriate) falling within the relevant Outgoings Year;
	 
	 	I = 	 	the amount (to the nearest dollar) of the Operating
Expenses for the relevant Outgoings Year;
	 
	 	Y = 	 	365 (or 366 in the case of a leap year).

	C.2	 	Lessor’s estimate: The Lessor may:

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

	C.3	 	Payments on account: The Lessee shall pay on account of the Lessee’s Operating Expense
Contribution (subject to this Clause C, without
demand and without any deduction or right of set off whatever) the estimates
provided for in Clause C.2 by equal Monthly instalments in advance on the same
days and in the same manner as the Lessee is required to pay Base Rent.
	 
	C.4	 	Lessor’s Notice:

	 	(a)	 	Lessor’s Notice: As soon as practicable after the end of
each Outgoings Year the Lessor shall furnish to the Lessee a Notice giving
reasonable details of the Operating Expenses for that Outgoings Year and the
Lessee’s Operating Expense Contribution.
	 
	 	(b)	 	Adjustment of payments on account: The Lessee shall within
twenty eight (28) days after the date of the Notice referred to in Clause
C.4(a) pay to the Lessor or the Lessor shall credit to the Lessee’s account
(as appropriate) the difference between the amount paid on account of the
Lessee’s Operating Expense Contribution during that Outgoings Year and the
amount actually payable in respect of it by the Lessee, so that the Lessee
shall have paid the correct amount of the Lessee’s Operating Expense
Contribution for that Outgoings Year. In the
absence of patent error such Notice shall be sufficient evidence of
the matters contained in it unless the contrary is proved.

Page 49

 

	C.5	 	Payment notwithstanding termination:

	 	(a)	 	Payment notwithstanding termination: Subject to Clause C.4,
Clause C.5(b) and to Clause C.6 the Lessee’s Operating Expense Contribution
shall be payable notwithstanding that the Term may have expired or been
determined before the Lessee’s Operating Expense Contribution for any
particular Outgoings Year is capable of being finally calculated.
	 
	 	(b)	 	Estimate conclusive in certain circumstances: The Lessor’s
reasonable estimate of the Lessee’s Operating Expense Contribution as at the
Termination Date or other determination of this Lease (as appropriate) shall
as between the Lessor and the Lessee be deemed to be the actual Lessees
Operating Expense Contribution payable by the Lessee to the relevant date
without any further adjustment.

	C.6	 	Lessor’s rights not diminished: Nothing in Clauses C.1 to C.5 shall prevent the
Lessor:

	 	(a)	 	recovery: recovering from the Lessee the Lessee’s Operating
Expense Contribution where the Lessor has failed to notify the Lessee of an
estimate or of the actual amount of such Lessee’s
Operating Expense Contribution in a timely manner (including failure
to notify prior to the Termination Date or other determination of
this Lease); or
	 
	 	(b)	 	lump sum payment: requiring the Lessee in any Notice to pay
to the Lessor a lump sum in respect of the Lessee’s Operating Expense
Contribution for a period the commencement of which pre-dates the date of any
such Notice.

	D.	 	SERVICE CHARGES
	 
	D.1	 	Lessee to pay charges levied on Premises: The Lessee shall forthwith pay all:

	 	(a)	 	Rates: Costs, rates, taxes or imposts of any nature imposed
or separately charged by any Law or by any Authority to the Premises or in
respect of the conduct of the Lessee’s Business in the Premises; and
	 
	 	(b)	 	Cost of Services: Costs for all Services, including for all
sources of energy, electricity, gas, oil, water and telephone, separately
supplied, metered, consumed or connected (as appropriate) to, in or on the
Premises.

	E.	 	GOODS AND SERVICES TAX
	 
	E.1	 	Goods and Services Tax: The amounts payable by any party receiving a taxable supply under
this Lease (Recipient) to the party making that taxable supply (Supplier) do not include any
goods and services, consumption, value added or similar tax (GST”). If any GST is or becomes
payable with respect to anything supplied by the Supplier to the Recipient under this Lease,
then the Recipient must forthwith upon demand by the Supplier, pay the GST or reimburse the
Supplier for any GST paid or payable by the Supplier with respect to that supply.

Page 50

 

EXECUTED as a Deed

Executed
by HYPERION PROPERTY

SYNDICATES LIMITED ACN 108 292 717 in

accordance with section 127 of the

Corporations Act 2001 (C’th):

	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	 

Director/Secretary [if not Sole Director]

	 	 	 	 

Director/Sole Director
	 	 
	 
	 	 	 	 	 	 
	 

Name [BLOCK LETTERS]

	 	 	 	 

Name [BLOCK LETTERS]
	 	 

Executed
by NOVOGEN LABORATORIES 

LIMITED ABN 42 002 489 947 in accordance 

with section 127 of the Corporations Act
2001 
(C’th):

	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	 

Director/Secretary [if not Sole Director]

	 	 	 	 

Director/Sole Director
	 	 
	 
	 	 	 	 	 	 
	/s/ Ronald Lea Erratt
 

Name [BLOCK LETTERS]

	 	 	 	/s/ Philip A. Johnston
 

Name [BLOCK LETTERS]
	 	 

Executed
by NOVOGEN LIMITED ABN 37

063 259 754 in accordance with section 127

of the Corporations Act 2001 (C’th):

	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	 

Director/Secretary [if not Sole Director]

	 	 	 	 

Director/Sole Director
	 	 
	 
	 	 	 	 	 	 
	/s/ Ronald Lea Erratt
 

Name [BLOCK LETTERS]

	 	 	 	/s/ Philip A. Johnston
 

Name [BLOCK LETTERS]
	 	 

Page 51

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