Document:

exv10w14

 

Exhibit 10.14

12 March 2007

Arthur P. Bertolino, MD, PhD

PO Box 296

Northville, MI 48167 USA

Dear Art,

Offer of employment, Chief Medical Officer and Vice President, Medical Affairs

We are pleased to offer you employment in the role of Chief Medical Officer and Vice President,
Medical Affairs of Peplin Operations USA, Inc. (the “Company”) based in the San Francisco Bay Area
and reporting to the CEO of Peplin Limited (“Peplin”) at a starting salary of $280,000 per annum.
You will be an officer of the Company and have accountability principally for all medical
activities of the Company. You will sit on Peplin’s executive committee with the other executive
management of Peplin and Peplin’s drug development committee, together with the Chief Scientific
Officer and Vice President, Regulatory Affairs. This role encompasses responsibility for all of
Peplin’s later stage clinical trial capability, both internally and through consultants, as the
Company’s products progress and evolve.

Your commencement date is on or before the first day of April 2007; these arrangements shall remain
confidential and incomplete until that date.

The Company will assist with the relocation of you and your immediate family to the Bay Area. Full
details of these relocation arrangements are contained in Article 4.

	1.	 	Employment
	 
	1.1	 	You will be an “at will employee” of the Company. This means that either you or the Company
may terminate your employment at any time, for any reason or no reason, with or without cause
or notice. Regular employment at Peplin Operations USA, Inc. is for no specified period of
time and the Company makes no guarantee or contract of continued employment. Although your
job duties, title, compensation and benefits, as well as the Company’s personnel policies, may
change from time to time, the “at will” nature of your employment may not be changed except in
an express written agreement signed by you and the CEO of Peplin Limited.
	 
	1.2	 	If either you or the Company decides to terminate your employment with the Company without
Cause, 3 months prior written notice of termination must be given by the party seeking to
terminate.

 

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	1.3	 	The Company will pay, in addition to any compensation earned prior to the date of
termination, a lump sum cash payment equal to 12 months base salary in the following
situations:

	 	(a)	 	The Company terminates your employment without Cause
	 
	 	(b)	 	There is a change in control of the Company such as by acquisition and you
choose to terminate employment
	 
	 	(c)	 	The principal site for your duties is relocated to outside the United States
and, prior to relocating, you choose to terminate employment.

	1.4	 	The Company may terminate your employment immediately for Cause if you:

	 	(a)	 	engage in misconduct;
	 
	 	(b)	 	commit a willful breach of or willfully neglect to perform or observe any of
your obligations under this letter;
	 
	 	(c)	 	fail to observe or perform any of the duties or obligations imposed on you
under your conditions of employment and do not correct such failure within 7 days of
being instructed to do so in writing by the Company;
	 
	 	(d)	 	are convicted of or plead nolo contender to any felony or crime of moral
turpitude; or
	 
	 	(e)	 	refuse to carry out the lawful directions of a superior.

	2.	 	Employment details

	2.1	 	Attached to this letter is Schedule 1. Schedule 1 sets out your current:

	 	(a)	 	commencement date;
	 
	 	(b)	 	workplace;
	 
	 	(c)	 	salary;
	 
	 	(d)	 	medical and other benefit plans;
	 
	 	(e)	 	leave entitlements;
	 
	 	(f)	 	manner of salary payment; and
	 
	 	(g)	 	any other benefit that may be applicable to your employment.

	2.2	 	To the extent that a matter is not addressed in this offer of employment, your engagement is
governed by detailed policies applying from time to time to the conditions of staff
employment, currently set out in the Company’s Policies and Procedures, copies of which are
available for your inspection.

	3.	 	Place of work

	3.1	 	Your place of work is listed in Schedule 1. You acknowledge however that you may, from time
to time, be requested to work temporarily at locations other than the place of work listed in
Schedule 1. You will also be required to travel nationally and internationally as part of
your duties.

 

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	4.	 	Relocation benefits

	4.1	 	To assist with the costs of relocation to the San Francisco bay area, the Company will pay or
reimburse to the employee where appropriate on presentation of a valid invoice or receipt up
to $131,000 relevant to the following expenses incurred in the first 24 months of employment:

	 	(a)	 	Relocation expenses for up to six months while the Employee is based in
Michigan and is required to commute.
	 
	 	(b)	 	Transportation and storage of your furniture and household effects.
	 
	 	(c)	 	Sales commissions applicable to the sale of your home in Michigan.
	 
	 	(d)	 	Temporary accommodation for the Employee and immediate family in the San
Francisco bay area for up to an additional six months.
	 
	 	(e)	 	Miscellaneous expenses related to the relocation and establishment of permanent
accommodation.

	4.2	 	In the event that you terminate your employment with the Company within 18 months from the
commencement date, you may, at Company’s discretion, be required to repay to the Company the
actual costs incurred by the Company in providing relocation assistance as outlined in this
clause, prorated for that portion of the 18 months already worked.

	4.3	 	Where the benefits described above are taxable to the Employee, the Company will pay the
value of such tax in addition to the cost of the benefit.

	5.	 	Hours of work

	5.1	 	From time to time you may be required to work outside your normal hours of work in order to
meet our business needs and your individual objectives. The expectation that your work hours
will vary has been taken into consideration when determining your salary.

	6.	 	Remuneration and performance

	6.1	 	Your salary and performance will be reviewed regularly. There is no guarantee of an increase
in your salary at each review.

	6.2	 	The Company shall reimburse or meet the reasonable cost of expenses which are necessarily
incurred by you in the performance of your duties and the discharge of your responsibilities
in accordance with criteria determined from time to time by the Company. You must provide
receipts or other evidence of payment and the purpose of each expense to support each claim or
outlay.

	6.3	 	You may elect certain benefits from time to time at your own expense. In the event you do
so, you authorize the Company to deduct the expense from your regular pay.

	7.	 	Bonuses and incentives

 

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	 	 	Options
	 
	7.1	 	You will receive, subject to Peplin Ltd board approval, 1,800,000 one-off ‘sign-on’
options in Peplin Ltd. Subject to your continuing employment with the Company these options
will vest in four tranches of 200,000, 533,334, 533,333 and 533,333 with the grant and first
vesting on the date of the first Peplin Board meeting following your commencement date and
each subsequent vesting on the anniversary of your commencement date. These options will have
a strike price equal to the average of the closing share price of Peplin Ltd shares as quoted
on the Australian Securities Exchange over the five trading days following the date of grant
and an expiration date of five years thence. The terms of these options are appended and
include provisions which result in a vesting of unvested options on a change of control.
	 
	 	 	STI and LTI
	 
	7.2	 	You shall, in addition to the salary detailed in the Schedule 1, be eligible to
participate in annual short term incentive (“STI”) and long term incentive (“LTI”)
arrangements based upon a complete year in your position as follows:

	 	(a)	 	Thirty per cent (30%) of your base salary will be available in addition to your
base salary as a maximum incentive on the achievement of individual, team and Company
goals agreed by you and the CEO. In broad terms, this bonus element will be
apportionable over these goals in the ratio 50:25:25. Your maximum STI for 2007 is 30%
x $280,000 = $84,000, and will be calculated on the basis that you had commenced
employment on January 1 2007. Your annual STI is payable on or before March 15 of the
year following the services performed.
	 
	 	(b)	 	From time to time as determined by the Board of Peplin Limited, an additional
LTI may be made available to you based upon the level of achievement of personal and
corporate performance. This LTI will be expressed as a right to shares, performance
rights or options in Peplin Limited at a determination point or points in the future.
Participation by eligible persons employed by the Company must be approved by the Board
of Peplin Limited. Peplin Operations USA’s policy in this respect is that target LTI’s
in general should be equal to twice the annual STI.

	8.	 	Vacation entitlements
	 
	8.1	 	You will be entitled to 20 days vacation per year to be taken at a time mutually agreeable to
you and the Company. In addition, you will receive 8 paid public holidays per year together
with 2 floating holidays.
	 
	8.2	 	You may not accrue more than 30 days of accrued, unused vacation time. In the event you
accrue 30 days of unused vacation time, you will not accrue further vacation time until you
have used some of the accrued, unused vacation time.
	 
	8.3	 	Accrued, unused vacation time is paid upon termination of employment.
	 
	9.	 	Sick/carer’s leave
	 
	9.1	 	You are entitled to 10 days paid sick leave in any year. Sick leave entitlements are
cumulative.
	 
	9.2	 	Sick leave is not paid out upon termination of employment.

 

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	9.3	 	For an absence in excess of five days, you must provide a medical certificate which sets out
the nature of your illness and the approximate period of absence from work.

	9.4	 	You are entitled to family and medical care leave in accordance with US federal and
California state law as in effect from time to time.

	10.	 	Your duties

	10.1	 	The duties of your position are set out in Schedule 2 and include those advised by us from
time to time.

	10.2	 	While employed by us, you are expected to devote your full working time and attention to us,
and you will not:

	 	(a)	 	perform your duties other than for us or on our behalf; or
	 
	 	(b)	 	engage in any other employment, business or profession, without written
permission.

	10.3	 	You will at all times act in the best interests of our business. You must comply with all
lawful and reasonable directions we give you.

	10.4	 	You will not accept any payment or other benefit from any person as an inducement or reward
for any act or forbearance in connection with any matter or business transacted by us or on
our behalf. You must disclose to us any of your interests which may compete or conflict with
our interests.

	11.	 	When your employment ends
	 
	 	 	On termination, you will immediately return all property belonging to us, including any
Confidential Information, documents, records, computer disks, keys and any other property.

	12.	 	Protection of our goodwill

	12.1	 	In consideration of your employment and to protect our goodwill, you agree that you will not
in any capacity, directly or indirectly:

	 	(a)	 	for the period of employment and for a period of 6 months after termination of
employment, solicit or entice or endeavor to solicit or entice, any director, manager,
officer, employee, or contractor of ours to terminate his or her relationship with us
or become employed by or a contractor to any other person or entity that would
reasonably be expected to result in termination of the relationship with us; or
	 
	 	(b)	 	for the period of employment and any time thereafter, use any of the Company’s
Confidential Information, as defined in section 12 below, belonging to us to:

	 	•	 	solicit or entice or endeavor to solicit or entice from us using any trade
secret of the company, the business of any person who, during your employment,
has been a customer, supplier, distributor or licensee of ours, and who you
have had dealings with in the 12 months prior to termination;

 

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	 	•	 	solicit or persuade using any trade secret of the company any person who has
dealt with us during the term of your employment, or is in the process of
negotiating with us at the date of termination or completion of this Agreement,
to cease doing business with us; or
	 
	 	•	 	solicit or entice using any trade secret of the company or endeavor to
solicit or entice any person to do business with yourself or any other person
or entity.

	12.2	 	You acknowledge that any of the activities described in 12.1(a) or (b) is unfair competition.
Article 12.1 will have a cumulative effect of several separate restraints for each activity
listed in 12.1 (a) and (b). All possible combinations must be complied with.
	 
	12.3	 	The validity of each separate restraint will not be affected by the invalidity, if any, of
any other restraint.
	 
	12.4	 	You may seek our consent in writing to be released from any restraint contained in this
Article 12.
	 
	13.	 	Policies
	 
	13.1	 	To help our business operate lawfully, safely and efficiently, we have policies and
procedures (including but not limited to those referred to at Articles 14 and 15 below) which
set out various rights, obligations duties and procedures relevant to your employment. You
will be expected to comply with these policies and procedures. Serious breaches of our
policies and procedures could result in termination of your employment.
	 
	13.2	 	To meet the changing environment in which we operate, it will be necessary to change these
policies and procedures from time to time. You will be given notice of the changes and will
be required to follow the changed policies and procedures.
	 
	14.	 	Intellectual property
	 
	 	 	You must comply with the Company’s policy on intellectual property.
	 
	15.	 	Confidential information
	 
	 	 	You must comply with the Company’s policy on confidential information.
	 
	16.	 	Interpretation
	 
	16.1	 	If any term of your contract of employment is found to be or becomes unenforceable or
contrary to law, it will be severed and this will not in any way affect the enforceability of
the remaining terms.
	 
	16.2	 	The formation, construction, and performance of this Agreement shall be construed in
accordance with the laws of California.

 

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	16.3	 	You and the Company agree that, if a dispute arises concerning or relating to your
employment with the Company, the dispute shall be submitted to binding arbitration pursuant
to the Federal Arbitration Act using the rules for the resolution of employment disputes of
the American Arbitration Association then in effect. The arbitration shall take place in San
Francisco County, California, and both you and the Company agree to submit to the
jurisdiction of the arbitrator selected in accordance with American Arbitration Association
(“AAA”) rules and procedures. Any arbitration under this Article shall be conducted in
accordance with the AAA rules and procedures then applicable to employment disputes except
as otherwise specified in this Article, and shall provide for reasonable discovery. The
cost of any arbitration under this Article shall be born equally by the parties; provided,
however, to the extent any costs are unique to arbitration and/or would exceed the costs you
would incur in a court of competent jurisdiction, those costs shall be born by the Company.
Except as set forth in this Article, you and the Company agree that this arbitration
procedure will be the exclusive means of redress for any disputes relating to or arising
from your employment with the Company, including disputes over rights provided by federal,
state, or local statutes, regulations, ordinances, and common law, including all laws that
prohibit discrimination based on any protected classification. The parties expressly waive
the right to a jury trial, and agree that the arbitrator’s award shall be rendered in
writing, final and binding on both parties, and nonappealable. The arbitrator shall have
discretion to award monetary and other damages, or to award no damages, and to fashion any
other relief the arbitrator deems appropriate. The parties shall each bear their own
attorney’s fees, provided however, that the arbitrator shall have discretion to award the
prevailing party reasonable costs and attorney fees to the extent authorized by applicable
law.
	 
	16.4	 	Subject to our right to amend our policies and procedures and change your duties, any
amendment to this agreement is not binding unless agreed between you and the Company and
recorded in writing.
	 
	16.5	 	This letter together with our policies and procedures is the entire agreement and
understanding between you and the Company on everything connected with your employment.
	 
	16.6	 	Any prior agreement or understanding on anything connected with your employment is superseded
by this letter.
	 
	17.	 	Obligations owed to related entities bodies corporate
	 
	17.1	 	Throughout this letter are references to ‘we’, ‘us’, ‘our business’, ‘our goodwill’, ‘our
employees’ and ‘our customers, clients or suppliers’. These references are references not
only to Peplin Operations USA, Inc. but also to any of our affiliates, so that your duties and
obligations set out in the following Articles of this letter apply not only to Peplin
Operations USA, Inc. but also to our affiliates:

	 	(a)	 	Article 12 – Protection of our goodwill.
	 
	 	(b)	 	Article 13 – Policies.
	 
	 	(c)	 	Article 14 – Intellectual property.
	 
	 	(d)	 	Article 15 – Confidential Information.

 

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	18.	 	Obligations of parent company, Peplin Ltd.

	18.1	 	In the event Peplin Operations USA, Inc. is unable to meet the obligations contained in this
offer of employment, Peplin Ltd will assume these obligations.

Please confirm your acceptance of the terms of your employment by signing and returning this copy.
You should retain a copy for your records.

You acknowledge that you have been given the opportunity by us to seek independent advice prior to
entering into this agreement.

Yours sincerely,

	 	 	 
	/s/ Michael Aldridge
 

	 	 
	Michael Aldridge, President and Director, Peplin Operations USA, Inc.
	 
	 	 
	/s/ Michael Aldridge
 

	 	 
	Michael Aldridge, Managing Director and CEO of Peplin Ltd.

I, Arthur P. Bertolino, MD, PhD accept that the contents of this letter represent the terms of my
employment.

	 	 	 
	/s/ Arthur P. Bertolino
	 
	 

Arthur P. Bertolino, MD, PhD

	 	Date:___/___/___ 

 

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SCHEDULE 1

	 	 	 
	Employer:

	 	Peplin Operations USA, Inc.
	 
	 	 
	Employee’s full name:

	 	Arthur P. Bertolino, MD, PhD
	 
	 	 
	Date of agreement:

	 	Date of acceptance indicated by signature above
	 
	 	 
	Date of commencement:

	 	On or before the first day of April 2007.
	 
	 	 
	Workplace:

	 	6475 Christie Ave, Emeryville, CA
	 
	 	 
	Remuneration:

	 	US$280,000 base salary per annum
	 
	 	 
	Manner of salary
payment:

	 	Bi-monthly in arrears, into an account nominated by you
	 
	 	 
	Benefit plans:

	 	Employee, employee’s dependents and domestic partner
shall be entitled to participate in all medical
benefit plans, including dental and vision plans, when
and as such plans are implemented and generally made
available to officers of the Company. In addition
employee will receive life insurance, short-term
disability, long-term disability, and accidental death
or dismemberment coverage at no cost and may
participate in 401(k), savings and investment plans
and flexible spending accounts. Please refer to the
Company’s policies and procedures for further
information on such plans. Health insurance of the PPO
type will be available as of the commencement of
employment or employee will be compensated for COBRA
coverage until such time as such plan is in effect.
	 
	 	 
	Cell phone, laptop
computer and home
internet:

	 	Employee will be provided with a cell phone, at no
cost to Employee, to be used for Company related calls
or will be eligible to claim reimbursement for
reasonable Company related call costs from using
Employee’s personal cell phone.

Employee will be provided with a laptop computer, at
no cost to the Employee, to be used for Company
related business.

Employee will be entitled to claim reimbursement of
the cost of installing and maintaining internet access
at your home
	 
	 	 

 

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	Other benefits:

	 	Other than as set forth in this Schedule 1 and the
accompanying offer letter, there are no other
benefits.
	 
	 	 
	Paid leave entitlements:

	 	Paid leave entitlements shall be as set forth in the
accompanying offer letter.
	 
	 	 

 

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SCHEDULE 2

Position Description

Your position is ‘Chief Medical Officer and Vice President, Medical Affairs’ based in the San
Francisco Bay Area and reporting to Chief Executive Officer of Peplin Limited. In this role, you
have accountability for:

	 	(a)	 	You will be an officer of the Company and have accountability principally for the the
later stage clinical development activities of the Company.
	 
	 	(b)	 	You will sit on the Peplin’s drug development committee, together with the Chief
Scientific Officer and Vice President Regulatory Affairs and be a member of the global
product development team.
	 
	 	(c)	 	You will have the responsibility to build a complete medical affairs capability, both
internally and through consultants, as the Company’s medical and clinical development
requirements grow and evolve.
	 
	 	(d)	 	You will represent Peplin together with the Vice President Regulatory Affairs in all
FDA and other relevant regulatory interactions.

 

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SCHEDULE 3

Terms of options

TERMS AND CONDITIONS

	1.	 	DEFINITIONS
	 
	 	 	In these terms and conditions, except to the extent the context otherwise requires:
	 
	 	 	‘ASX’ means Australian Securities Exchange Limited ACN 008 624 691;
	 
	 	 	‘Board’ means the board of directors of the Company;
	 
	 	 	‘Company’ means Peplin Limited ACN 090 819 275;
	 
	 	 	‘Control’ has the meaning given in section 50AA Corporations Act;
	 
	 	 	‘Employee’ means the employee of the Company or its related bodies corporate who is the
holder of the Option;
	 
	 	 	‘Exercise Date’ means the date after which the Employee may exercise an Option;
	 
	 	 	‘Exercise Price’ means the price at which an Option may be exercised;
	 
	 	 	‘Grant Date’ means the date on which the Employee is granted an Option;
	 
	 	 	‘Expiry Date’ means the date by which an Employee must exercise an Option;
	 
	 	 	‘Listing Rules’ means the Listing Rules of ASX as varied from time to time;
	 
	 	 	‘Option’ means an option to acquire a Share;
	 
	 	 	‘Related Body Corporate’ has the meaning given to it by the Corporations Law;
	 
	 	 	‘Share’ means a fully paid ordinary share in the Company.
	 
	2.	 	Exercise of Options

	 	(a)	 	An Option will entitle the holder of that Option to acquire a Share:

	 	(i)	 	at any time after the Exercise Date but subject to the Company’s
share trading policy; and
	 
	 	(ii)	 	at the Exercise Price.

	 	(b)	 	Subject to the Company’s share trading policy, the holder of an Option may
exercise the Option from the Exercise Date until the Expiry Date.
	 
	 	(c)	 	If during the period between the Grant Date and the Exercise Date:

	 	(i)	 	the Employee is lawfully terminated, the Option will immediately
lapse;
	 
	 	(ii)	 	the Employee resigns, the Option will immediately lapse;
	 
	 	(iii)	 	the Employee dies, the Option will immediately lapse (unless within
90 days of the Employee’s death the Board in its absolute discretion decides to
allow the representative of the Employee’s estate to exercise the Option within a
specified number of days of the Employee’s death or by the Expiry Date);
	 
	 	(iv)	 	the Employee becomes disabled and (in the opinion of a medical
practitioner nominated by the Board) is unable to perform their normal duties, the
Option will immediately lapse (unless within 90 days of the Employee’s disability
the Board in its absolute discretion decides to allow the Employee to

 

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	 	 	 	exercise the Option within a specified number of days of the Employee’s disability
or by the Expiry Date);

	 	(d)	 	If during the period between the Exercise Date and the Expiry Date:

	 	(i)	 	the Employee is lawfully terminated, the Employee may exercise the
Option within 90 days of the date of termination;
	 
	 	(ii)	 	the Employee resigns, the Employee may exercise the Option within 90
days of the date of resignation;
	 
	 	(iii)	 	the Employee dies, the representative of the Eligible Employee’s
estate may exercise the Option by the Expiry Date;
	 
	 	(iv)	 	the Employee becomes disabled and (in the opinion of a medical
practitioner nominated by the Board) is unable to perform their normal duties, the
Employee may exercise the Option within 90 days or such additional specified
number of days (determined by the Board) of the Employee becoming disabled;

	3.	 	Rights Attaching to Options

	 	(a)	 	In the event of any reconstruction (including consolidation, sub-division, reduction
or return) of the issued capital of the Company, the number of Options or the Exercise
Price or both will be adjusted (as appropriate) to the extent necessary to comply with
the Listing Rules applying to a reorganisation of capital at the time of the
reorganisation. In all other respects the terms for the exercise of the Options shall
remain unchanged.
	 
	 	(b)	 	Until Shares are issued pursuant to the exercise of Options, the holders of an
Option shall not participate in dividends on Shares or new issues of securities by the
Company.
	 
	 	(c)	 	In the event of any pro rata bonus or cash issues of securities by the Company,
the number of Shares over which an Option exists and the Exercise Price will be adjusted
in the manner specified in Listing Rule 6.22 and in writing to the Employee at the time
the Option is issued.
	 
	 	(d)	 	Options may be transferred only with the prior written consent of the Board. The
Company will not apply to the ASX for official quotation of any of the Options.

	4.	 	Issue of Shares

	 	(a)	 	The Board will issue Shares after Options have been exercised, in accordance with
clause 2, once the relevant Exercise Price has been paid to the Company, at the next
succeeding Board meeting and, in any event, within 30 business days after receiving
notice of the exercise of the Options
	 
	 	(b)	 	If the Company’s shares are officially quoted by ASX at the time any Shares are
issued pursuant to the exercise of Options, the Company will apply to ASX for official
quotation of such Shares issued pursuant to the exercise of Options within the time
prescribed by the Listing Rules and, in any event, within 10 business days of the issue
of those Shares.
	 
	 	(c)	 	A Share issued pursuant to the exercise of any Options will rank equally in all
respects with existing Shares.

	5.	 	CHANGE OF CONTROL

	 	(a)	 	A Change of Control Event occurs where (‘Change of Control Event’):

	 	 	 	A            Control of the Company changes;

 

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	 	 	 	B            the Company becomes a subsidiary of another corporation;
	 
	 	 	 	C            there is a sale of the business of the Company other than
to a group company;
	 
	 	 	 	D            where a company which is a subsidiary ceases to be a
subsidiary of the Company; or
	 
	 	 	 	E            any other reorganisation of the group which results in
Employee ceasing to be an employee of the group.

	 	(b)	 	Where a Change of Control Event has occurred the Employee may immediately
exercise either all or a proportion of the Options, notwithstanding applicable vesting,
performance or other conditions may not otherwise have been satisfied.

	6.	 	INTERPRETATION
	 
	 	 	In these terms and conditions, except to the extent the context otherwise requires:

	 	(i)	 	Words importing the singular include the plural and vice versa, words
importing any gender include other genders and ‘person’ includes a corporation.
	 
	 	(ii)	 	Headings are for convenience only and do not affect the
interpretationexv10w15

 

Exhibit 10.15

LEASE/

Form 7 Version 5

Page 1 of 36

QUEENSLAND LAND REGISTRY

Land Title Act 1994, Land Act 1994 and Water Act 2000

Dealing Number

707830925

Privacy Statement

The Information from this form is collected under the authority of the Land Title Act 1994 the Land
Act 1994 and the Water Act 2000 and is used for the purpose of maintaining the publicly
searchable registers in the land registry and the water register.

      

Queensland
Stamp Duty Paid $2,024.40
 On the Amount of [ILLEGIBLE] Duty Code LEES

TRIPLICATE

13A:BNE: [ILLEGIBLE] Transaction
Number 035/04

Signed:
/s/ [ILLEGIBLE] 10/6/04

	 	 	 	 	 	 	 	 	 
	 
	 
	1.

	 	Lessor
	 	Lodger (Name, address & phone number)
	 	 	Lodger

	 

	 	
	 	
	 	 	Code 172

	 

	 	Pine Waters Pty Ltd ACN 008 427 398
	 	Stubbs Barbeler, Lawyers
	 	 

	 

	 	 	 	PO Box 12242, George Street	 	 	 	 
	 

	 	 	 	Brisbane Qld 4003
	 	 	 	 
	 

	 	 	 	Tel: (07) 3210 3210	 	 	 	 
	 

	 	 	 	Ref: FRS:14152	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.
	 	Lot on Plan Description	 	County	 	Parish	 	 	Title Reference
	 	 	Lot [ILLEGIBLE]	 	Stanley	 	North Brisbane	 	 	50501503	 
	 
	 
	3.
	 	Lessee	 	Given names	 	Surname/Company name and number	 	(include tenancy if more than one)
	 	 	 	 	 	 	Peplin Biotech Ltd ACN 090 819 275	 	 	 	 
	 

	4.	 	Interest being leased

Fee Simple

 

	5.	 	Description of premises being leased

Part of the second level of the Building erected on the Land hatched in black on the plan
attached hereto.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	6.

	 	Term of lease
	 	5 years
	 	 	7.	 	Rental/Consideration
	 

	 	Commencement date:
	 	18 June, 2004
	 	 	 	 	See attached plan.
	 

	 	*Expiry date:
	 	14 June, 2009	 	 	 	 	 	 
	 

	 	**Options on page 23	 	 	 	 	 	 	 	 
	 	 	*not required for
leases in a retirement village **insert nil if no option
	 

	8.	 	Grant/Execution
	 

The Lessor leases the premises described in item 5 to the Lessee for the term stated in item 6
subject to the covenants and conditions contained in the attached schedule.

     Witnessing
officer must be aware of his/her obligations under section 162 of the Land Title Act
1994

Witnessing Officer

	 	 	 
	 

	 	signature
	 

	 	 
	 

	 	full name
	 

	 	 
	 

	 	qualification
	 

	 	 
	(Witnessing officer must be in accordance with Schedule 1 of Land
Title Act 1994 eg Legal Practitioner, JP, C Dec)

Execution Date

 10/6/04

Lessor’s Signature

	 
	/s/ [ILLEGIBLE]

 

(Secretary)

	 

	/s/ Murray Raymond Boyte

 

(Director)

	Pine Waters Pty Ltd

	ACN 008 427 398

 

	9.	 	Acceptance
	 

The lessee accepts the lease and acknowledges the amount payable or other considerations for the
lease.

Witnessing Officer

	 	 	 
	 

	 	signature
	 

	 	 
	 

	 	full name
	 

	 	 
	 

	 	qualification
	 

	 	 
	(Witnessing officer must be in accordance with Schedule 1 of Land
Title Act 1994 eg Legal Practitioner, JP, C Dec)

Execution Date

25/5/04

Lessee’s Signature

	 
	/s/ [ILLEGIBLE]

 

(Secretary)

	 

	/s/ [ILLEGIBLE]

 

(Director)

Peplin Biotech Ltd

ACN 090819275

 

			
	FORM 20 Version 1 

Land Title Act 1994 and Land Act 1994
	 	QUEENSLAND LAND REGISTRY

Page 2 of 37

SCHEDULE

Title Reference 50501503

REFERENCE SCHEDULE

	 	 	 	 	 
	Item 1

	 	Rent:
	 	 $ 275.00 per m2 per annum for the Lease Year
	 
	 	 	 	 
	Item 2

	 	Rent Review Dates:
	 	(a) CPI Review Dates: Each anniversary of the
Commencement Date of the Term and the New
Term.
	 
	 	 	 	 
	 

	 	 	 	(b) Percentage Review Dates: Not applicable
	 
	 	 	 	 
	 

	 	 	 	(c) Market Review Dates: Commencement Date of
the New Term.
	 
	 	 	 	 
	Item 3

	 	Percentage Review:
	 	Not applicable
	 
	 	 	 	 
	Item 4

	 	Permitted Use:
	 	Commercial Office
	 
	 	 	 	 
	Item 5

	 	New Term:
	 	5 years
	 
	 	 	 	 
	Item 5A

	 	Further New Term:
	 	Not applicable
	 
	 	 	 	 
	Item 6

	 	Name and Address of
Guarantors:
	 	 

Not applicable
	 
	 	 	 	 
	Item 7

	 	Notices:	 	 
	 
	 	 	 	 
	 

	 	Landlord	 	 
	 

	 	Address:
	 	Pine Waters Pty Ltd

ACN 008 427 398

c/- Ariadne Australia Limited

Level 14, Central Plaza One

345 Queen Street

BRISBANE QLD 4000
	 

	 	Facsimile No:
	 	 (07) 3220 1211
	 
	 	 	 	 
	 

	 	Tenant:	 	 
	 

	 	Address:
	 	Peplin Biotech Limited

ACN 090 819 275

G South Tower, 527 Gregory Terrace

Bowen Hills, BRISBANE QLD 4006
	 

	 	Facsimile No:
	 	 (07) 3854 0989
	 
	 	 	 	 
	Item 8

	 	Bank Guarantee/Deposit:
	 	The amount equivalent to 6 months Rent

 

 

			
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	1.	 	DEFINITIONS AND INTERPRETATIONS

	 	1.1	 	In this lease:
	 
	 	 	 	Bank Guarantee means an unconditional and irrevocable undertaking (or any replacement
or addition to it under clause 18) by a bank and on terms acceptable to the Landlord acting
reasonably to pay on demand the amount in Item 8.
	 
	 	 	 	Base Outgoings Amount means:

	 	(a)	 	during the Term the amount of outgoings payable during the
Financial Year ending 30 June 2004 and
	 
	 	(b)	 	during the New Term the amount of outgoings payable during
the Financial Year ending 30 June 2008.

Building means the building erected or to be erected on the Land including all
fixtures, fittings, plant and other structures at any time in the Building and any
modifications to them.

Building Rules means the rules in Appendix 1 (if any), or any other rules notified by
the Landlord to the Tenant from time to time.

Business Day means any day in Brisbane that is not a Saturday, Sunday or public
holiday.

Carpark means the part of the Complex provided by the Landlord from time to time for
the parking of vehicles and includes the associated driveways, exits and entrances.

Common Areas means those parts of the Complex which the Landlord intends for common
use by the tenants of the Building and Complex and their employees invitees and
tenants.

Commencement Date means that date stated as the commencement date in Item 6 of the
Form 7.

Complex means collectively the Land, the Building, together with such other land or
improvements either adjacent to or in the vicinity of the Land in which the Landlord, at any time,
has an estate, interest or right of occupation or use and which the Landlord considers can be
conveniently incorporated into or used for the purpose of the Complex and all buildings and other
structures and improvements erected at any time thereon.

CPI Review Date means each of the dates in Item 2(a).

Designated Carpark means the carparks hatched in black on the annexed plan or the
carparks allocated by the Landlord from time to time.

Expiry Date means that date stated as the expiry date in Item 6 of the Form 7.

Fire Equipment means all stop-cocks hydrants fire hoses or other fire prevention,
detection and extinguishing equipment in the Building.

Further New Term means the period stated in Item 5A.

 

 

			
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Title Reference 50501503

Guarantor means the person or persons named in Item 6, anybody who becomes a
guarantor at any time during the Term, and the Guarantor’s executors,
administrators, successors and permitted assigns.

GST will have the meaning as given to that term under the GST Act.

GST Act means A New Tax System (Goods and Services Tax) Act 1999 and related legislation.

Index Number means the Consumer Price Index (All Groups) Brisbane or the index
officially substituted for it.

Land means the land described in Item 2 of the Form 7.

Lease Year means each period of 12 months ending at midnight on the day
immediately before the anniversary of the Commencement Date or any broken period
if the Term does not end on such an anniversary.

Market Review Date means each of the dates in
Item 2(c).

Month means calendar month and the term “monthly” means at intervals of I calendar month.

New Term means the period stated in Item 5.

Non-Statutory Outgoings means the Landlord’s reasonable expenses directly
attributable to the operation, maintenance or repair of the Building and
non-statutory charges, levies, premiums, rates or taxes payable by the Landlord
because it is the owner occupier of the Complex or the Land and such expenses
include, but will not be limited to, all costs associated with:-

	 	(a)	 	Cleaning costs and materials;
	 
	 	(b)	 	Rubbish removal;
	 
	 	(c)	 	Light and power charges;
	 
	 	(d)	 	Airconditioning and ventilation;
	 
	 	(e)	 	Fire protection and prevention;
	 
	 	(f)	 	Security;
	 
	 	(g)	 	Repairs and maintenance;
	 
	 	(h)	 	Costs for the control of pests, vermin or insects or other
similar infestation;
	 
	 	(i)	 	Costs of maintaining gardens and
landscaped areas;
	 
	 	(j)	 	Reasonable management costs including property
management and wages and entitlements paid to any employee of the
Landlord engaged in Building repair, management or maintenance;
	 
	 	(k)	 	Any other reasonable charges incurred by the Landlord in
relation to the Complex or the Land.

 

 

			
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	 	Page 5 of 37

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Title Reference 50501503

Outgoings Contribution means the Lessee’s proportion of the increase in
Outgoings over the
Base Outgoings Amount. The Lessee’s proportion will be the proportion, expressed as a
percentage, that the area of the Premises bears to the total area of all premises in
the Building that
are leased or occupied or available for lease or occupation and which enjoy or share
the benefit
resulting from the Outgoings or any part thereof from time to time.

Outgoings Year means each year commencing on the first anniversary of the
Commencement Date and thereafter on each anniversary of the Commencement Date after
the first anniversary.

Outgoings means the Landlord’s reasonable expenses directly attributable to the
operation,
maintenance or repair of the Building and charges, levies, premiums, rates or taxes
payable by the
Landlord because it is the owner or occupier of the Complex or the Land and such
expenses
include, but will not be limited to the aggregate of Non-Statutory Outgoings and
Statutory
Outgoings.

Percentage Review Date means each of the dates in Item 2(b).

Permitted Use means the use stated in Item 4.

Premises means the premises described in Item 5 of the Form 7 and includes all
Services which are exclusive to the Premises and all partitions, fixtures, floor
coverings, blinds, fittings, equipment and other property at any time provided by the
Landlord including prior to the Commencement Date and other fixtures, fittings
and chattels of the Landlord from time to time installed in the Premises.

Rent means the yearly amount in Item 1 as varied under this lease.

Rent Review Date means a CPI Review Date, Percentage Review Date or Market Review
Date.

Services means all water closets, lavatories, grease, traps, water apparatus, wash
basins, washrooms, gas fittings, electrical fittings, Fire Equipment, air conditioning
equipment, elevators and apparatus utilities and other plant and equipment or services
connected to or provided to the
Complex.

Statutory Outgoings means the Landlord’s reasonable expenses directly attributable to
the operation, maintenance or repair of the Building and charges, levies, premiums, rates or
taxes payable by the Landlord because it is the owner or occupier of the Complex or
the Land and such expenses include, but will not be limited to, all costs associated
with:-

(a) Rates, taxes and charges payable to any government or other authority;

(b) Insurance premiums;

(c) Any other reasonable charges incurred by the Landlord in relation to the Complex or
the Land.

Supply will have the meaning given to that term under any statute pursuant to which a
GST is levied or imposed.

Term means the period from and including the Commencement Date to and including the
Expiry Date.

 

 

			
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	 	Page 6 of 37

SCHEDULE

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	 	1.2	 	In this lease unless the contrary intention appears:

	 	(a)	 	the singular includes the plural and vice versa;
	 
	 	(b)	 	person includes a firm, a body corporate, an unincorporated association or an authority,
	 
	 	(c)	 	an agreement, representation or warranty:

	 	(i)	 	in favour of two or more persons is for the benefit of them
jointly and severally; and
	 
	 	(ii)	 	on the part of two or more persons binds them jointly and severally;

	 	(d)	 	a reference to:

	 	(i)	 	an Item is a reference to an item in the Reference Schedule;
	 
	 	(ii)	 	a person includes the person’s executors,
administrators, successors, substitutes (including persons taking by
novation) and assigns;
	 
	 	(iii)	 	a document includes any Variation or replacement of it;
	 
	 	(iv)	 	a law includes regulations and other instruments under it and amendments or
replacement of any of
them;
	 
	 	(v)	 	a group of persons includes all of them
collectively, any two or more of them collectively and each of them
individually; and
	 
	 	(vi)	 	any gender includes each other gender; and
	 
	 	(vii)	 	where the day on or by which any thing is to be done is not a
Business Day, that thing must be done on or by the next succeeding day which is a
Business Day.

	 	1.3	 	Headings are inserted for convenience and do not affect the
interpretation of this lease.

	2.	 	RENT

Payment of Rent

	 	2.1	 	The Tenant must pay to the Landlord or to such person, company or bank in
Queensland by
way of credit to the Landlord’s nominated bank account as the Landlord may from time
to
time direct or by such other means as the Landlord may from time to time reasonably
direct
the Rent by equal monthly instalments in advance on the first day of each month with
the first
instalment to be paid on the Commencement Date.
	 
	 	2.2	 	The Tenant must make payments under this lease to the Landlord (or as directed by the Landlord) without set-off, counterclaim, withholding or deduction by the method the
Landlord
reasonably requires.
	 
	 
	 	2.3	 	The Landlord need not make demand for any money payable by the Tenant unless this
lease states that demand must be made.

 

 

			
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	 	Page 7 of 37

SCHEDULE

Title Reference 50501503

Rent Review

	 	2.4	 	On each CPI Review Date, the Rent will be reviewed to an amount represented by A where:

	 	 	 	 	 	 	 	 	 
	 

	 	A
	 	=
	 	B x C
 

D
	 	 

	 	 	 	 	 	 	 
	 

	 	Where B
	 	=	 	the Index Number for the whole quarter year before
the relevant CPI Review Date;
	 
	 	 	 	 	 	 
	 

	 	Where C
	 	=
	 	 the Rent for the immediately preceding Lease
Year; and
	 
	 	 	 	 	 	 
	 

	 	Where D
	 	=	 	is the Index Number for the
whole quarter year before the commencement date of the immediately
preceding Lease Year.

PROVIDED that the Rent calculated by the above formula shall not be less than the
Rent payable for the immediately preceding Lease Year increased by 104%.

	 	2.5	 	On each Percentage Review Date, the Rent will be reviewed to an amount
represented by A where:

	 	 	 	 	 	 	 
	 

	 	A = B x C	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Where B
	 	=	 	 the Rent immediately prior to the relevant Percentage Review
Date.
	 
	 	 	 	 	 	 
	 

	 	Where C
	 	=	 	the percentage in Item 3.

	 	2.6	 	 

	 	(a)	 	On each Market Review Date the Rent will be an amount equal to the market rent of the
Premises as agreed in writing between the Landlord and the Tenant. In default of agreement
within one (1) month before the Market Review Date the Rent will be determined by an expert
being a registered valuer nominated by the president for the time being of the Australian
Institute of Valuers (Queensland Branch).
	 
	 	(b)	 	The fees of the valuer shall be paid equally by the Landlord and Tenant.
	 
	 	(c)	 	The Landlord and the Tenant may make written submissions to
the valuer as to the market rent within ten (10) Business Days of the valuer’s appointment.
	 
	 	(d)	 	The valuer shall provide to the Landlord and the Tenant written
notice of the market rent determined by the valuer and the basis upon which that determination was made.

	 	2.7	 	For the purposes of Clause 2.6 the valuer shall take into account the following criteria:

	 	(a)	 	an assumption (if not a fact) that the Premises are available
for leasing with vacant
possession by a willing Landlord to a willing Tenant at the relevant date;
	 
	 	(b)	 	that the tenancy is on the terms and conditions contained in this lease;

 

 

			
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	 	(c)	 	an assumption (if not a fact) that the Tenant’s covenants and
obligations have been fully performed at the relevant review date;
	 
	 	(d)	 	that no account be taken of the value of any improvements or
fixtures erected at the Tenant’s expense and which the Tenant is permitted to remove at the termination of
this lease;
	 
	 	(e)	 	that no account be taken of any deleterious condition of the
Premises if that condition results from any breach of any term of this lease by Tenant;
	 
	 	(f)	 	that no reduction is to be made on account of any
incentive given or concession made by the Landlord to secure a tenant or period
of rent abatement;
	 
	 	(g)	 	that regard be had to rental values of comparable Premises but
excluding any subletting or other arrangement entered into by the Tenant pursuant to Clause
14.2;
	 
	 	(h)	 	that no account be taken of the value of the carparks licensed to the Tenant
pursuant to
Clause 23 of this lease.

	 	2.8	 	Notwithstanding any Rent review on any Rent Review Date the Rent payable by the Tenant
at any time shall in no case be less than the Rent payable during the immediately
preceding
Lease Year.
	 
	 	2.9	 	In the event of the Term of the lease commencing on a day other than the first day of a
month or expiring or determining on a day other than the last day of a month, the Tenant
shall pay to the Landlord in respect of the broken periods prior to the first complete
month and subsequent to the last complete month, on the first day of each of such
broken periods, a proportionate part of the monthly instalments payable on account of
the Rent.
	 
	 	2.10	 	Until the Rent is determined under Clause 2.6, the Tenant must continue to pay
the Rent payable for the previous Lease Year. An appropriate adjustment will be made when the
Rent for the current year is determined by the payment of any deficiency by the Tenant or
the crediting or holding of any overpayment by the Landlord on account of any other
money payable by Tenant.

3. OUTGOINGS

	 	3.1	 	The Tenant must pay the Outgoings Contribution for each Outgoings Year.
	 
	 	3.2	 	Before the start of each Outgoings Year, the Landlord may give the Tenant a
notice for that Outgoings Year stating the Landlord’s estimates of the Outgoings and of the Outgoings
Contribution for that Outgoings Year. At any time the Landlord may revise those
estimates
by giving the Tenant a notice.
	 
	 	3.3	 	The Tenant must pay in the same manner and at the same times as the Rent is
payable (under
Clause 2.1) the Outgoings Contribution as estimated by the Landlord and notified to
the
Tenant as provided in Clause 3.2 or alternatively the full amount of any Outgoings
which has
been issued.
	 
	 	3.4	 	Within 30 days after the Landlord gives the Tenant a notice of actual Outgoings,
the Tenant
must pay the Landlord (or the Landlord must credit the Tenant with) the difference
between

 

 

			
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SCHEDULE

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	 	 	 	what the Tenant has paid on account of the Outgoings Contribution for the Outgoings
Year to which the notice applies and what the notice states is payable.
	 
	 	3.5	 	In the event of the Term of the lease commencing on a day other than the
first day of a month or expiring or determining on a day other than the last day of a
month, the Tenant shall pay to the Landlord in respect of the broken periods prior to
the first complete month and subsequent to the last complete month, on the first day of
each of such broken periods, aproportionate part of the monthly instalments payable on
account of the Outgoings Contribution.

	4.	 	OTHER CHARGES AGAINST TENANT

	 	4.1	 	The Tenant must pay to the Landlord:

	 	(a)	 	all reasonable costs (as between solicitor and client and expenses incurred by the
Landlord associated with the preparation, negotiations and finalisation of the
Lease including the stamping and registration of the Lease;
	 
	 	(b)	 	all stamp duties payable in respect of this Lease, registration
fees and cost of obtaining
the survey plan of the Premises;
	 
	 	(c)	 	the costs impose by the mortgagee to consent to this lease;
	 
	 	(d)	 	all reasonable costs (as between solicitor and client) and expenses incurred by
the Landlord because of any breach by the Tenant under this lease (including
without
limitation the cost of any lawful termination of this lease, the re-entry
by the Landlord
into the Premises or the surrender of this lease) and in relation to the
granting, refusing or obtaining of any Consents by the Landlord;
	 
	 	(e)	 	upon demand by the Landlord the amount of any additional or
unusual costs charges
and expenses incurred by the Landlord at the request of the Tenant in having
any alterations repairs or maintenance to the Premises or to the Services effected
outside of the normal working hours of the tradesmen concerned or in providing any special
additional or unusual services or facilities for the Tenant;
	 
	 	(f)	 	all legal fees and disbursements (as between solicitor and client)
incurred by the Landlord if the Landlord without fault on its part is made a party to any
litigation commenced by or against the Tenant (other than litigation between
the Landlord and the Tenant) and arising directly or indirectly out of the Tenant’s
occupancy of the
Premises;
	 
	 	(g)	 	interest on overdue rent and other moneys from the due date until
actually paid and also upon any judgment which the Landlord obtains against the
Tenant from the date of the judgment until satisfied at the rate of 2% above the
Landlord’s bank overdraft rate for each month or part of a month during which any
payment is overdue or any judgment unsatisfied;
	 
	 	(h)	 	all rates, taxes, charges and assessment, except income tax
and capital gains tax, of any kind not existing at the Commencement Date but
which may at any time be assessed, charged or imposed with respect to the
Tenant’s use and occupation of the Premises. If they are paid by the Landlord,
the Tenant must reimburse the Landlord upon demand.

 

 

			
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Title Reference 50501503

GST and other taxes:

	 	4.2	 	The amounts payable under this lease do not include any GST. Notwithstanding any
other
provision in this lease, the amount payable in relation to the a Supply made under or
in
connection with this lease will be increased by the amount of the GST levied imposed
on that Supply and the increased amount must be paid accordingly.
	 
	 	4.3	 	The party making the Supply must provide on or before the date for payment of
the Supply
tax invoices that comply with the GST Act to the recipient of that Supply in respect
of each
amount payable pursuant to this lease.
	 
	 	4.4	 	Despite any other provision in this lease, if an amount under this lease is a
reimbursement or
indemnification by one party of an expense, loss or liability incurred or to be
incurred by the
other party, the amount payable will exclude any part of the amount to be reimbursed
or
indemnified for which the other party can claim an input tax credit. The other party
will
assumed to be entitled to full input tax credits unless it can establish otherwise.

5. USE OF PREMISES

	 	5.1	 	The Tenant must use the Premises only for the Permitted Use.
	 
	 	5.2	 	The Landlord does not warrant that the Premises may be used for, or are suitable
for use as the
Permitted Use.
	 
	 	5.3	 	The Tenant must obtain and keep current any permits to carry on the Permitted
Use and
comply with all laws and requirements applying to the Premises or to the Permitted Use.
The
failure to obtain any consent will not relieve the Tenant of its obligations to pay
the Rent and
otherwise comply with its obligations under this lease.
	 
	 	5.4	 	The Tenant is not required under Clause 5.3 to make any structural or capital
improvements or
alterations unless they are required or made necessary by reason of any neglect or
default by
the Tenant or any person claiming under the Tenant or by reason of the Tenant’s manner
of
use and occupation of the Premises or the number or sex of the employees or persons at the
Premises.
	 
	 	5.5	 	The Landlord may permit other people to conduct such businesses in the Complex as it
thinks
fit even though they are similar to, or the same as, the Permitted Use. 

6. TENANT’S OBLIGATIONS

	 	6.1	 	The Tenant must not:

	 	(a)	 	do anything which is annoying dangerous, offensive or illegal;
	 
	 	(b)	 	use the facilities or Services on the Land for any purposes other
than those for which
they were installed or constructed;
	 
	 	(c)	 	overload or interfere with any Services;
	 
	 	(d)	 	erect any signs or notices on the Premises or on any other part of the Complex
without the prior written consent of the Landlord. Such consent will not be
unreasonably withheld provided they are customary and/or incidental to the
Tenant’s class of

 

 

			
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business and they strictly comply with the Building Rules and all
by-laws of the local or other authorities;

	 	(e)	 	damage any of the walls ceilings or other parts of the Premises;
	 
	 	(f)	 	bring or store in the Premises any explosive inflammable or corrosive
substances
except as are normally used by the Tenant in the conduct of its business;
	 
	 	(g)	 	do anything which may in any way make void or voidable any policy
of insurance
applicable to the Premises or which may in any way increase the premium
payable in
respect of any insurance policy. Without prejudice to the rights of the
Landlord to
determine this lease, the Tenant will pay to the Landlord on demand any
increase of
premium which may be occasioned by a breach of this subclause;
	 
	 	(h)	 	obstruct the entrances exits and driveways in and to the
Carpark or any part of the Common Areas;
	 
	 	(i)	 	use any form of light power or heat other than electric current or
gas supplied through
meters;
	 
	 	(j)	 	install any electrical equipment on the Premises that
overloads the cables switchboards or sub-boards through which electricity is
conveyed to the Premises;
	 
	 	(k)	 	heat or air condition the Premises (other than that
installed by the Landlord) without the prior written consent of the Landlord and
then only in the manner approved by the Landlord and the Tenant’s expense;
	 
	 	(l)	 	operate any radio or television receiver, loud speaker or
similar device in such manner which is a nuisance to any other tenant of the
Complex.

	 	6.2	 	The Tenant must.

	 	(a)	 	keep all pipes drains and conduits within the
Premises clear at all times and any blockages which may occur in any waste pipes drains and conduits originating within
the Premises between their points of origin and their entry into any trunk drain must be
cleared by the Tenant using licensed tradesmen approved by the Landlord;
	 
	 	(b)	 	keep the Premises clean and tidy and at its own expense engage
contractors for the
regular cleaning of the Premises and the interior surfaces of the windows;
	 
	 	(c)	 	at its own cost and expense keep the Premises free of
rodents termites and
cockroaches and other vermin;
	 
	 	(d)	 	observe the maximum floor loading weights nominated by the Landlord;
	 
	 	(e)	 	in the event of any notifiable disease happening upon the Premises
give all the
necessary notices to the proper authorities and give notice in writing to the
Landlord
and at its own expense thoroughly fumigate and disinfect the Premises;
	 
	 	(f)	 	advise the Landlord promptly in writing of any damage sustained to
the Premises or
the defective operation of any of the Services;

 

 

			
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	 	(g)	 	keep the Premises securely locked when not in use;
	 
	 	(h)	 	pay promptly to the assessing authority on or before the due
date if assessed directly
against the Tenant but otherwise to the Landlord within 14 days of being billed
by the
Landlord all charges including charges for connection and metering in respect of
the
Premises for:

	 	(i)	 	electricity; and
	 
	 	(ii)	 	gas; and
	 
	 	(iii)	 	water; and
	 
	 	(iv)	 	any cleansing or refuse service (if requested by the Tenant
or directed by the Brisbane City Council); and
	 
	 	(v)	 	telephone or other utility.

	 	(i)	 	pay all charges for electricity consumed in the operation of any fan
and heating elements within the Premises and the Landlord may apportion (and the Tenant
must pay as apportioned) the electricity charges, expenses and outgoings in
respect of the working and maintenance of the airconditioning system that are (in the
reasonable opinion of the Landlord) required to provide an airconditioning
service for the Premises;
	 
	 	(j)	 	ensure that the Tenant’s employees, customers, visitors or
others within its control do not smoke in the Premises or other parts of the
Building;
	 
	 	(k)	 	observe the Building Rules;
	 
	 	(l)	 	observe any reasonable requirements of the Landlord in
relation to the Common Areas, the Complex or the Services;
	 
	 	(m)	 	comply with the Landlord’s requirements for fire safety and fire drills which
relate to the Premises and pay the cost of any attendance at the Complex by the fire
brigade or fire rescue service because of the Tenant’s acts or omissions; and
	 
	 	(n)	 	comply with the Landlord’s reasonable security requirements
regulating access to the Building; and
	 
	 	(o)	 	trade from the Premises under a trade name that has received
the Landlord’s prior consent. If the trade name includes words which incorporate
the name of the Complex, the Landlord must, upon expiration or termination of
this lease, deregister that name.

 

 

			
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	7.	 	TENANT’S OBLIGATION TO REPAIR

	 	7.1	 	The Tenant must:

	 	(a)	 	keep the Premises and any fixtures, fittings, furnishings and
other property by owned by
the Tenant in good repair, working order and condition, excluding fair wear and
tear
and damage by fire, flood, storm, tempest, explosion, riot, civil commotions,
war or
otherwise by inevitable accident or act of God;
	 
	 	(b)	 	replace damaged items in the Premises including plate glass, any
property owned by the Tenant and floor coverings. In the case of floor coverings, if required by
the Lessor
but not more than once during the term of the Lease.

	 	7.2	 	The exception in respect of fair wear and tear will apply only in the absence of neglect
or
default on the Tenant’s part and only if the Tenant has taken all reasonable measures
and precautions to ensure that any damage defect or dilapidation which at any time
is occasioned by fair wear and tear, does not give rise to or cause or contribute to
any injury to the Premises.
	 
	 	7.3	 	The Tenant is not required to effect any repairs of a structural nature, unless
they are caused,
either directly or indirectly, by the Tenant’s default, neglect, act or omission.

	8. ALTERATIONS TO PREMISES

	 	8.1	 	The Tenant must not make any alterations or additions, nor
install or alter any internal
partitions to the Premises without the Landlord’s approval. The Landlord’s approval
may be
given subject to terms and conditions the Landlord (acting reasonably) decides are
appropriate.
	 
	 	8.2	 	Any application for the Landlord’s consent must include all plans,
specifications and finishes
for the proposed works.
	 
	 	8.3	 	If alterations to the Services are required by the Tenant then the Landlord may require
that work to be carried out or supervised by its own contractor, at the Tenant’s cost.
	 
	 	8.4	 	The Tenant must pay all costs of any works it does pursuant to this
clause including the Landlord’s reasonable costs in approving and supervising
those works.
	 
	 	8.5	 	The Tenant must obtain any necessary approvals from authorities for
any works.

	9. DAMAGE OR DESTRUCTION OF PREMISES

	 	9.1	 	If the Building is damaged or destroyed and as a result the Premises are unfit for
the Tenant’s
use and occupation, the Landlord is not liable to pay the Tenant compensation but a
proportionate part of the Rent, according to the nature and extent of the damage
sustained, and
the covenants to repair, maintain and clean will be suspended until this lease is
terminated or
until the Premises have been restored or made fit for occupation and use by the
Tenant.
	 
	 	9.2	 	The Tenant must continue to use any part of the Premises that is useable, safe
and accessible
and to comply with the lease as far as possible.

 

 

			
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	 	9.3	 	If the Building is damaged so that the Tenant’s use of the Premises is
substantially adversely
affected and the Landlord receives a request from the Tenant to rebuild the Building,
the
Landlord must give the Tenant a notice within 6 weeks after that notice either:

	 	(a)	 	terminating this lease on a date not less than 2 weeks after the
date the Landlord gives
the notice; or
	 
	 	(b)	 	stating that the Landlord intends to make the Premises fit
for the Tenant’s use.
	 
	 	This clause does not impose an obligation on the Landlord rebuild or reinstate
the Building or
the Premises.

	 	9.4	 	If the Landlord does not rebuild the Premises within twelve (12) months after giving
the notice, the Tenant may give the Landlord a notice stating that the Tenant will
terminate this
lease.
	 
	 	9.5	 	The Tenant may not terminate this lease or reduce payments under this clause
if the damage is
caused by the Tenant or the Landlord’s rights to claim under an insurance policy are
prejudiced by any act, negligence or default of the Tenant or of its employees and
agents.
	 
	 	9.6	 	Notwithstanding Clause 9.3, if in the Landlord’s opinion, the Premises or the Building are
damaged to such an extent that it is impractical or undesirable to restore the
Premises or they have been rendered wholly or substantially unfit for occupation and
use, the Landlord may terminate this lease by giving at least 30 days notice to the
Tenant.
	 
	 
	 	9.7	 	If at any time the whole or any part of the Land is lawfully resumed by any
authorised
authority under the relevant legislation so that the Tenants use of the Premises is
substantially adversely affected:

	 	(a)	 	the Landlord may terminate this lease by giving at least 30 days notice to the
Tenant;
	 
	 	(b)	 	the Landlord will have exclusive rights to any compensation
payable;
	 
	 	(c)	 	upon gazetting of the resumption the Rent and other moneys payable under this Lease
will be reduced proportionally in accordance with the portion of the lettable area of the
premises affected.

	 	9.8	 	No liability will attach to either party if this lease is terminated under this
clause, provided
that such termination will be without prejudice to the rights of either party accrued
prior to the
termination of this lease.
	 
	 	9.9	 	Nothing will oblige the Landlord to restore the Premises or the Building to their
former
specifications. However, the floor area of the Premises and the Services must not be
substantially less than those before the event of damage and the materials used must
not be of
inferior quality or aesthetic appearance to those formerly used.

	10.	 	LANDLORD’S RIGHTS

	 	10.1	 	The Landlord may:

	 	(a)	 	with contractors and workmen enter upon the Premises to do any works to the
Premises or the Building or its Services. Except in an emergency when this right
of

 

 

			
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	 	 	 	entry may be exercised at any time, the Landlord will carry out works after
reasonable written notice to the Tenant and in such a manner as to minimise as
practicable any inconvenience or interruption to the Tenant.

	 	(b)	 	with its agents and workmen at all reasonable times having given
reasonable written
notice (no notice required in the case of emergency) enter and view the state
of repair
of the Premises and leave upon the Premises a notice in writing requiring the
Tenant
to repair within a reasonable time any defects which are the obligation of the
Tenant.
	 
	 	(c)	 	install and maintain in the Premises pipes cables wires and other
means of conveyance
of water, sewage, gas, electricity, telephone, communications and other
services
through and for the Building.
	 
	 	(d)	 	grant to any tenant of the Land a licence to use any parking bay in the Carpark
or any other part of the Common Areas (other than toilets) either exclusively or
in common
with others for such purposes for such period and upon such terms and
conditions as
the Landlord thinks fit.
	 
	 	(e)	 	do any works (including alterations or additions) to the Building
or on the Land or any
adjoining land.
	 
	 	(f)	 	may for the purposes of sub-clause (e) of this clause 10.1
interrupt the water gas
electrical and other services to the Premises. The Landlord must only carry out
works
in a manner as to cause as little inconvenience or interruption to the business of
the
Tenant as is reasonably practicable.
	 
	 	(g)	 	grant easements or other rights over the Land or adjoining land.
	 
	 	(h)	 	after reasonable notice, permit prospective purchasers of
the Building (and, if the Option has not been exercised, also prospective
tenants of the Premises during the last 6 months of the Term) to view the
Premises.
	 
	 	(i)	 	during the last 6 months of the Term display a letting sign in or adjacent to
the Premises, unless the Tenant has exercised an option to renew.
	 
	 	(j)	 	establish Building Rules not inconsistent with this lease
relating to the use and occupation of the Complex. Any such rules may
from time to time be repealed
amended or added to at the discretion of the Landlord and upon notice in
writing to the Tenant shall be and become as binding upon the Tenant as if they
were set out in this lease as covenants on the part of the Tenant.
	 
	 	(k)	 	at the Tenant’s cost (after reasonable notice to the Tenant
and allowing the Tenant a reasonable time to comply), do anything which the
Tenant should have done under this lease but which it has not done or has not
done properly (in the Landlord’s reasonable opinion).
	 
	 	(l)	 	name the Building and grant to a tenant naming
rights to the building or erect advertising signs on any part of the
Building or Land.
	 
	 	(m)	 	appoint a building manager for the purpose of:

 

 

			
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	 	(i)	 	collection of rent and other moneys;
	 
	 	(ii)	 	enforcement of Building Rules; and
	 
	 	(iii)	 	caretaking and management of the Building.

The Tenant acknowledges that the building manager will not (in the absence
of the Landlord’s prior written authority) have authority to:

	 	(i)	 	waive breaches of this lease;
	 
	 	(ii)	 	make representations on the Landlord’s behalf concerning the Land, the Building or the
Premises; or
	 
	 	(iii)	 	contractually bind the Landlord in any
way.

	 	(n)	 	erect and maintain a tenant directory board in the foyer or adjacent to
the Building entrance and any entry of the Tenant’s name will be placed on the
directory at the Tenant’s cost.
	 
	 	(o)	 	reconfigure the Land into separate lots and if so the Landlord
reserves the right to sell each lot as it sees fit.
	 
	 	(p)	 	use the roof and exterior walls of the Complex
for any purpose including, without limitation the erection and display
of sign or advertisement.
	 
	 	(q)	 	remove or relocate any of the Common Areas or the Carpark or erect
and remove kiosks, signs, seats and other structures or additional buildings and grant to
any person the exclusive use of any Common Areas. However, in removing or relocating them,
the Landlord must cause as little inconvenience or interruption to the Tenant’s business or
its employees as it reasonably can.
	 
	 	(r)	 	restrict access to the Common Areas at any time outside the normal business hours of the
Complex.
	 
	 	(s)	 	designate those parts of the Carpark that may be used by the Tenant, and the days
and hours during which it may or may not be used.
	 
	 	(t)	 	permit any person to hold any function, exhibition
or display in the Common Areas upon such terms and conditions as the
Landlord decides.
	 
	 	(u)	 	install a public address system throughout the
Common Areas and broadcast recorded music or announcements.
	 
	 	(v)	 	for so long as the Landlord decides, exclude and
restrain any person from entering the Complex or from using or occupying the
Common Areas if that person has breached the Building Rules and, after
having been notified of such breach, has committed a further breach (whether
of the same nature or not).
	 
	 	(w)	 	alter, add to, extend, vary, or reduce the size,
height and/or layout of the Complex and in doing so may:

 

 

			
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	 	(i)	 	permanently encroach upon the Carpark
and Common Areas;
	 
	 	(ii)	 	use the airspace above or
below any part of the Complex;
	 
	 	(iii)	 	erect additional floors above or below the
Complex including multi-storey parking facilities;
	 
	 	(iv)	 	interrupt the water, electricity, or
other Services to the Premises.

However, in carrying out such work, the Landlord must cause as little inconvenience
or interruption to the Tenant’s business as it reasonably can have regard to the
effective and economical conduct of those works.

	11.	 	LANDLORD’S OBLIGATIONS

	 	11.1	 	Subject to the Landlord’s rights under the lease while the Tenant
complies with its obligations under this lease, it may occupy the
Premises during the Term without interference from the Landlord.
	 
	 	11.2	 	Subject to this lease and any Building Rules, the Landlord will permit the Tenant
in common with others having the same rights to exercise and enjoy the right to use the
Common Areas for such purposes for such periods and upon such terms and conditions as
the Landlord in its absolute discretion may think fit.
	 
	 	11.3	 	The Landlord will use best endeavours to keep the Services operating so far as
provided at the Commencement Date including elevators to reasonably serve the Premises
during the hours when the Building is open to the public (as established under the
Building Rules) and for those persons under the control of the Tenant having access keys
authorising access outside of those hours.

After Hours Airconditioning

11.4

	 	(a)	 	The airconditioning equipment will operate in the Building between 7.00am and
6.00pm on each Business Day.
	 
	 	(b)	 	The Landlord shall provide the ability to the Tenant to operate the air
conditioning equipment by means of after hours air conditioning switches installed in the Premises.
	 
	 	(c)	 	The Landlord may apportion the electricity charges, expenses and
outgoings in respect of the working and maintenance of the air conditioning
equipment and payment of overtime for employees or service providers that are (in
the reasonable opinion of the Landlord) needed to provide an air conditioning
service for the Premises outside of the hours 7.00am to 6.00pm.
	 
	 	(d)	 	The Landlord shall notify the Tenant of the amount of the charges
described in clause 11.4(c) in writing from time to time and usually as a rate per
hour per floor that the after hours airconditioning is used by the Tenant and the
Tenant shall pay the amount of those charges.

 

 

			
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	 	(e)	 	Any amount payable by the Tenant pursuant to this clause
must be paid within 14 days of issue of a tax invoice.

	12.	 	LANDLORD’S LIABILITIES AND INDEMNITIES

	 	12.1	 	The Landlord does not expressly or impliedly warrant that the Premises are at the
Commencement Date or will remain fit suitable or adequate for any of the purposes of the
Tenant and any warranties as to the suitability fitness and adequateness of the Premises
implied by law are negatived.
	 
	 	12.2	 	The Tenant agrees to occupy and use the Premises at its risk.
	 
	 	12.3	 	The Landlord will not in any circumstances be liable to the Tenant
(except where the Landlord or its appointed agent, its agents or employees has been
negligent) for any loss or damage suffered by the Tenant for any failure or
interruption of the facilities and Services in the Building or on the Land.
	 
	 	12.4	 	The Landlord will not be liable for any damage or loss the Tenant may
suffer by reason of the neglect or omission of the Landlord to do anything to or in
respect of the Premises or the Building and which (as between the Landlord and the
Tenant) the Landlord might be legally liable to do unless the Tenant is aware or
should reasonably be aware of that thing and has given to the Landlord notice in
writing of such act or omission and the Landlord has without reasonable cause
failed within a reasonable time to take proper steps to rectify such act or
omission.
	 
	 	12.5	 	The Tenant indemnifies the Landlord against all claims losses damages costs (and in
the case of legal costs, such costs are to be reasonable costs) and expenses which the
Landlord may incur whether during or after the Term arising from:

	 	(a)	 	failure to observe or perform any of the covenants of the Tenant under this
lease;
	 
	 	(b)	 	the negligent use or misuse by the Tenant or any servant agent or other person
claiming through or under the Tenant of any water gas or electricity or other Services to
the Premises or to the Building;
	 
	 	(c)	 	the overflow leakage or escape of water fire gas electricity or any
other harmful agent in or from the Premises caused or contributed to by any
act or omission on the part of the Tenant its servants or agents;
	 
	 	(d)	 	the failure of the Tenant to notify the Landlord of any defect
in any of the Fire Equipment or any facilities or Services in the Premises of
which the Tenant becomes aware;
	 
	 	(e)	 	the use of the Premises by the Tenant or any servant or agent or other person;
	 
	 	(f)	 	any personal injury sustained by any person in or about the Premises;

except, in all cases, to the extent caused or contributed to by the negligence or default of the
Landlord, its agents or employees.

 

 

			
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	13.	 	INSURANCES

	 	13.1	 	The Tenant must maintain policies of insurance in the name of the Tenant,
and noting the respective interests of the Landlord and the Landlord’s mortgagee (if
any):

	 	(a)	 	public risk insurance for at least $10,000,000 (or as
varied by notice from the Landlord); and
	 
	 	(b)	 	plate glass insurance against any damage to plate glass
caused from within the Premises. The Landlord agrees that any damage to
plate glass caused from outside the Premises will be the Landlord’s
responsibility;
	 
	 	(c)	 	fixtures and fittings installed by the Tenant in the Premises and
all partitions, fixtures, floor coverings, blinds, fittings and other
equipment in the Premises at any time provided by the Landlord for their full
replacement value; and
	 
	 	(d)	 	other insurances which are required by law or which, in the
Landlord’s reasonable opinion, are required in connection with the Tenant’s
business.

	 	13.2	 	The Tenant will comply with clause 13. 1 if it has an umbrella policy of
insurance for the types of insurance required and which notes the Premises, the
Landlord and the Landlord’s mortgagee (if any).
	 
	 	13.3	 	The Tenant must give the Landlord a certificate of currency of any insurance
required by this clause when asked to do so.
	 
	 	13.4	 	The Tenant must not enforce,
conduct, settle or compromise claims under any insurance policy required by this lease
without the Landlord’s consent.

	14.	 	ASSIGNMENT SUBLEASES AND MORTGAGES

	 	14.1	 	The Tenant will not assign this lease or sub-let the Premises without
the prior written consent of the Landlord. The Landlord’s consent will not be
unreasonably withheld if:

	 	(a)	 	the Tenant satisfies the Landlord that the proposed assignee is a respectable
and financially responsible person of similar financial standing to the Tenant in the
case of an assignment of the lease; and
	 
	 	(b)	 	the Tenant pays any legal fees incurred by the
Landlord in connection with the investigation of the proposed assignee
and otherwise relating to the proposed assignment; and
	 
	 	(c)	 	all rent due or payable has been paid by the
Tenant and there is no existing unremedied breach of this lease; and
	 
	 	(d)	 	the proposed assignee provides (at the Landlord’s discretion) a
Bank Guarantee in the amount reasonably required by the Landlord and/or
personal guarantees by its directors; and
	 
	 	(e)	 	the Tenant, the Guarantor and the proposed assignee sign a deed
with the Landlord whereby the proposed assignee covenants to comply with this
lease and appoints the Landlord its attorney for the purpose of surrendering
the lease and the Tenant and

 

 

			
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Guarantor covenant not to be released from their obligations for the balance
of the Term and any holding over period. The deed is to be prepared by the
Landlord’s solicitors at the expense of the Tenant and will otherwise be on
such terms as the Landlord reasonably requires; and

	 	(f)	 	all other reasonable requirements of the Landlord are complied with.

	 	14.2	 	The Tenant must not sublet, or grant any licence over the Tenant’s interest in
this lease, or in any manner part with possession of the Premises or any part of it
without the prior written consent of the Landlord which consent will not be
unreasonably withheld where the conditions set out in the preceding clause are
satisfied.
	 
	 	14.3	 	Where the Tenant is a corporation other than a company listed on the Australian
Stock Exchange, any change in a principal shareholding of the Tenant or in any holding
company of the Tenant altering the effective control of the Tenant or its holding
company is deemed to be an assignment of this lease requiring the consent of the
Landlord.
	 
	 	14.4	 	The Tenant must not mortgage charge or otherwise encumber its estate or
interest in this lease without the prior written consent of the Landlord.
	 
	 	14.5	 	If the Tenant requests the Landlord to consent to any assignment or sub-letting of the
Premises pursuant to this cause the Tenant will pay any reasonable legal or other fees
incurred by the Landlord in connection with the investigation of the proposed assignee or
sub-Tenant and otherwise relating to the proposed assignment or subletting whether or not
the Landlord consents to the proposed assignment or sub-letting.

	15.	 	DEFAULT OF TENANT
	 
	 	 	Default

	 	15.1	 	The Tenant will be in breach or default:

	 	(a)	 	if the Rent is not paid when it is due; or
	 
	 	(b)	 	if any other moneys payable by the Tenant to the Landlord have not been paid when due or
(if payable on demand) after the making of the demand; or
	 
	 	(c)	 	if the Tenant has not effected the repairs required by any
notice given by the Landlord within the time prescribed; or
	 
	 	(d)	 	if the Tenant fails to observe perform or fulfil any of the other
terms covenants conditions and restrictions in this lease on the part of the
Tenant (whether positive or negative) after reasonable notice to the Tenant and
providing the Tenant reasonable time to remedy any breach or default; or
	 
	 	(e)	 	if the Tenant being a company enters into liquidation (otherwise
than for the purpose of reconstruction) or if a receiver or official manager or
an administrator is appointed; or
	 
	 	(f)	 	if the interest of the Tenant under this lease is attached or taken
in execution under any legal process; or

 

 

			
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	 	(g)	 	if the Tenant proposes to or enters into any arrangement or
composition with its creditors; or
	 
	 	(h)	 	if the Tenant being an individual commits any act of bankruptcy
pursuant to the Bankruptcy Act 1966 (as amended) or becomes a bankrupt.

     Non-Waiver

     15.2

	 	(a)	 	No delay or omission by the Landlord to exercise a right or remedy will impair
any such right or remedy or be construed as a waiver of the breach or an acquiescence
of any subsequent similar breach despite any custom or practice which may have
developed between the parties.
	 
	 	(b)	 	Any waiver of any breach or of any provision of this lease must
be in writing and will be effective only to the extent it is specifically stated.

The waiver by the Landlord of any breach by the Tenant will not in any
circumstances be construed to permit the Tenant to repeat or continue that breach or
any other.

	 	(c)	 	The Landlord’s acceptance of rent or other money under this lease (before or
after termination) is not a waiver of a breach or any acceptance of the repudiation of
this lease by the Tenant.

     Forfeiture of Lease

	 	15.3	 	If the Tenant has made default and has failed to remedy the default in
accordance with any mandatory notice the Landlord is required to give under the
Property Law Act 1974 (in which case 14 days notice deemed reasonable for the purposes
of that Act) the Landlord may, in addition to any other remedies it may have, at its
option:

	 	(a)	 	re-enter into and take possession of the Premises(by force if
necessary) and eject the Tenant and all other persons from them; or
	 
	 	(b)	 	by notice in writing to the Tenant terminate this lease and from
the date of giving such notice this lease will be terminated; or
	 
	 	(c)	 	by notice in writing to the Tenant elect to convert the
Term into a monthly tenancy and this lease will be terminated from such notice
and the Tenant will hold the Premises as monthly tenant at a monthly rental
equal to one twelfth of the Rent and Outgoings payable under this lease at the
date of giving the notice but otherwise on the terms and conditions of this
lease so far as they can be applied to a monthly tenancy.

	 	15.4	 	Any moneys tendered by the Tenant after the termination of this lease may
be and (in the absence of any express election by the Landlord) will be accepted
and applied firstly on account of the Landlord’s costs of re-entry and secondly on
account of any Rent and other moneys due but unpaid at the date of termination.

 

 

			
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	 	15.5	 	If the Landlord exercises its right of re-entry or otherwise terminates this
lease then the Landlord may recover from the Tenant damages for breach of this Lease
including compensation for loss or bargain being the difference between Rent and other
monies that would have been payable after the date of termination until the Expiry Date
and the rent received or likely to be received from any other tenant to whom the
Premises are, or may be, relet.
	 
	 	15.6	 	Each obligation of the Tenant to pay money and its obligations to only use the
Premises for the permitted use, not to assign or sublet without consent, to keep the
Premises in repair, not to make alterations to the Premises without consent, and to
take out the insurance policies required under this lease are essential terms of this
lease. Other obligations under this lease may also be essential terms.
	 
	 	15.7	 	If the Tenant abandons the Premises or repudiates this lease prior to the
expiration of the Term then the Tenant will remain liable for the payment of the Rent and the
payment of the other monies payable until the Landlord finds another person who is
prepared to accept a lease of the Premises on terms and conditions satisfactory to the
Landlord in which case the Landlord may terminate this lease and lease the Premises to
that person.
	 
	 	15.8	 	The Landlord may without prejudice to any other remedy sue the Tenant for any
moneys which may from time to time become due and owing by the Tenant to the Landlord
and in particular the Landlord may sue for any instalments of rent and outgoings as
and when they become due and later may separately sue for any further sum or sums which
are due and owing by the Tenant to the Landlord.
	 
	 	15.9	 	Expiry or termination of this lease does not affect any rights in connection
with an existing breach of this lease.

	16.	 	EXPIRATION OF TERM

	 	16.1	 	The Tenant must at the expiration or earlier determination of the Term:

	 	(a)	 	yield up the Premises in the order and condition described in clause 7 and return all keys
access cards and similar devices;
	 
	 	(b)	 	remove all signs attached to the Premises by the Tenant and rectify all
damage as a result of the removal;
	 
	 	(c)	 	remove the Tenant’s chattels from the Premises and rectify
damage done to the Premises as a result of the removal;
	 
	 	(d)	 	if required by the Landlord, reinstate any alterations (including
structural alternations) to the Premises made on or after the Commencement Date so that the Premises are
in the same condition as at the Commencement Date fair wear and tear excepted; and
	 
	 	(e)	 	remove all fixtures and fittings (except floor coverings) which
have been installed by the Tenant on or after the Commencement Date and rectify
all damage as a result of the removal.

	 	16.2	 	Any fittings or fixtures or other property not removed by the Tenant will be
deemed abandoned and will be and become the property of the Landlord and the Landlord
may deal

 

 

			
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with them in any way it sees fit, at the Tenant’s expense, without the Landlord
becoming liable as a result of such dealing. Nothing will relieve the Tenant from
the cost and expense of and associated with any removal by the Landlord of fittings
and fixtures not removed by the Tenant from the Premises and the cost and expense of
and associated with the making good of any damage to the Premises caused by the
removal by the Landlord.

	 	16.3	 	If the Tenant, with the consent of the Landlord, remains in
occupation of the Premises after the Expiry Date the Tenant will hold the
Premises as a monthly tenant at a monthly rental equal to one twelfth of the
Rent and Outgoings payable under this lease at the Expiry Date but otherwise
on the terms and conditions of this lease so far as they can be applied to a
monthly tenancy.

	17.	 	OPTION FOR RENEWAL

	 	17.1	 	If the Tenant:

	 	(a)	 	is not in default of this lease on the Expiry
Date and
	 
	 	(b)	 	has given notice in writing of its intention to the Landlord not less than 3 months nor more than 9 months
prior to the Expiry Date,

the Tenant will be granted a further lease of the Premises for the
term set out in Item 5 commencing on the day after the Expiry Date on the
same terms and conditions as this lease except for:

	 	(c)	 	this clause 17.1 which will be deleted; and
	 
	 	(d)	 	the Rent which will be determined in the manner provided in clause 2.6; and
	 
	 	(e)	 	items 5 is deleted;

	 	17.2	 	If the Tenant:

	 	(a)	 	has validly exercised the option for renewal contained in Clause 17.1;
	 
	 	(b)	 	is not in default of this lease on the Expiry Date of the New Term; and
	 
	 	(c)	 	has given notice in writing of its intention to the Landlord
not less than 3 months nor more than 9 months prior to the Expiry Date of the New
Term,

the Tenant will be granted a further lease of the Premises for the term set out in
Item 5A commencing on the day after the Expiry Date of the New Term on the same
terms and conditions as this lease except for:

	 	(d)	 	this clause 17.2 which will be deleted;
	 
	 	(e)	 	the Rent for the first year of the Further New Term wilt be an
amount determined in the manner provided in clause 2.6;
	 
	 	(f)	 	Item 5A is deleted.

 

 

			
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	 	17.3	 	If any option is exercised, the parties will sign a new lease or a form of
renewal to be prepared stamped and registered by the Landlord’s solicitors at the
cost of the Tenant.
	 
	 	17.4	 	If the Rent for the New Term has not been determined by the commencement
date of the New Term the Tenant will, pending the execution of the new lease, pay
rent at the previous years rate and the Rent for the New Term will be deemed to be
paid and will be credited against the rental for the New Term and the amount of any
deficiency will be paid by the Tenant to the Landlord.

	18.	 	BANK GUARANTEE

	 	18.1	 	On or before the Commencement Date, the Tenant must deliver the
Bank Gurantee to the Landlord. Within 14 days after the Rent is increased under
this lease, the Tenant must deliver to the Landlord a replacement or additional
Bank Guarantee so that the amount guaranteed is always the amount stated in Item 8.
	 
	 	18.2	 	Within 14 days after the Landlord’s written request, the Tenant must deliver to
the Landlord a replacement Bank Guarantee in favour of the purchaser of the
Landlord’s interest in the Premises or this lease whereupon the Landlord will return
to the Tenant the Bank Guarantee it holds. The Landlord agrees to pay the Tenant’s
reasonable costs associated with obtaining the replacement Bank Guarantee.
	 
	 	18.3	 	If the Tenant does not comply with any of its obligations under this lease,
the Landlord may call on the Bank Guarantee, without notice to the Tenant. Within 7
days after the Landlord gives the Tenant a notice asking for it, the Tenant must
deliver a replacement or additional Bank Guarantee so that the amount guaranteed is
always the amount stated in Item 8.

	19.	 	NOTICES

	 	19.1	 	A notice or approval in this lease must be in writing.
	 
	 	19.2	 	Notices are effectively given if:

	 	(a)	 	Addressed to the other party stated in item 7;
	 
	 	(b)	 	Delivered or posted to the other party or its solicitor;
	 
	 	(c)	 	Sent to the last known facsimile number or postal address of the other
party.

	 	19.3	 	Posted notices will be treated as given two (2) business days after
posting. Notices sent by facsimile will be treated as given when the sender obtains a
clear transmission report.

	20.	 	GENERAL PROVISIONS

	 	20.1	 	The application to this lease of any moratorium or other act having the
effect of extending the Term reducing or postponing the payment of the Rent or otherwise
affecting the operation of the covenants of the Tenant or providing for compensation
rights or privileges at the expense of the Landlord in favour of the Tenant or any
other person is expressly excluded and negatived.

 

 

			
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	 	20.2	 	A provision of or of a right under this lease may not be waived or varied
except in writing signed by whoever is to be bound.
	 
	 	20.3	 	If either party must or must not do something:

	 	(a)	 	it must do everything necessary to ensure that
its employees and agents comply with that obligation; and
	 
	 	(b)	 	it may not allow or cause it to be done or do
or omit to do anything which results in it happening.

	 	20.4	 	The Landlord (acting reasonably) may give approval conditionally or
unconditionally or withhold approval in its reasonable discretion unless
this lease expressly says otherwise.
	 
	 	20.5	 	Time is of the essence in connection with the Tenant’s obligations under this lease
including the payment of money.
	 
	 	20.6	 	If this lease is registered, the Tenant must not lodge a caveat on the Land.
	 
	 	20.7	 	If any part of this lease is void, unenforceable or illegal, it is severed and
the remainder of this lease has full force and effect. This clause has no effect if the
severance alters the basic nature of this lease or is contrary to public policy.
	 
	 	20.8	 	This lease constitutes the entire agreement of the parties about its subject
matter. Any previous agreements understanding and negotiations on that subject matter,
cease to have any effect.
	 
	 	20.9	 	This lease is governed by Queensland law.

	21.	 	DISPUTE

	 	21.1	 	In the event of any dispute under this lease, either party may request the
President for the time being of the Queensland Law Society to appoint an independent
person appropriately qualified to resolve the dispute (“the Expert”).
	 
	 	21.2	 	The expert will act as an expert and not an arbitrator and must give a written decision
including reasons. Unless there is a manifest error, the Expert’s decision is final and
binding on both parties.
	 
	 	21.3	 	The Expert may hear representations from both parties and take advice from
people that person considers appropriate.
	 
	 	21.4	 	Each party must pay its own costs of the dispute and the costs of the
Expert are at the discretion of the Expert.

	22.	 	POWER OF ATTORNEY

	 	22.1	 	The Tenant irrevocably appoints:

	 	(a)	 	the Landlord; and
	 
	 	(b)	 	its directors and secretary

 

 

			
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	 	jointly and severally to be the true and lawful attorneys and attorney of the
Tenant to:
	 
	 	(c)	 	execute on behalf of and in the name of and as the act
and deed of the Tenant a
surrender of this lease; and
	 
	 	(d)	 	to do all such things and sign all documents as may be
necessary to obtain registration of that surrender and otherwise required to be done by the Tenant under this lease
including but not limited to signing a Lot Lease (under clause 24) and withdrawals of
caveats.

	 	22.2	 	The power of attorney will not be exercised unless this lease has been terminated by the
Landlord in accordance with the powers of the Landlord sufficient proof to the
Registrar of Titles will be the declaration of the attorney exercising the power.
	 
	 	22.3	 	The Tenant hereby ratifies and confers in and agrees at all times to
ratify and confirm all the attorney does by virtue of this clause.

	23.	 	CARPARK LICENCE

	 	23.1	 	For so long as this Lease has not been validly terminated or expired the Landlord
grants the Tenant a licence to enter and leave the Carpark and to park 1 motor vehicle in
each of the 4 Designated Carparks during all hours the premises may be lawfully
occupied. The 4 Designated Carparks are as follows:

	 	(a)	 	2 under cover secured Designated Carparks at no additional cost for the Term of
the Lease; and
	 
	 	(b)	 	2 additional under cover secured Designated Carparks at no
additional cost on a month to month licence basis. Either party may at
any time during the Term on one (1)months’ notice in writing to the other terminate this monthly
licence.

	 	23.2	 	The licence to park contained in subclause 1 is granted by the
Landlord to the Tenant and subject to the conditions contained in Appendix 2.

	24.	 	CONVERSION TO STRATA TITLE

	 	24.1	 	Subject to the Lot Lease being on terms similar to this Lease and there
being no substantial derogation of the Tenant’s rights as contained in this Lease:

	 	(a)	 	The Landlord may subdivide the Land and/or Building or
amalgamate the Land with other land by registration of one or more Survey Plans to create a Community
Titles Scheme. To facilitate registration of a Survey Plan the Tenant will surrender
this lease. The Landlord will grant and the Tenant will accept a Lot Lease in
accordance with this Clause.
	 
	 	(b)	 	If at any time the Landlord serves a Strata Notice on the
Tenant then the Tenant will
execute, and return to the Landlord’s solicitors within seven (7) days of
receipt from
them, the Surrender Documents and Lot Lease (previously prepared and
submitted by
the Landlord or its solicitors). The Lot Lease shall be delivered to the
Tenant at the
time the Landlord serves a Strata Notice.

 

 

			
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	 	(c)	 	The Landlord will as soon as practicable and in any event
within 12 months attend to
the registration of the Survey Plan but may at any time withdraw the Survey
Plan from
registration or cancel the Strata Notice by written notice to the Tenant, at
the same
time returning to it the Surrender Documents.
	 
	 	(d)	 	The Landlord and Tenant agree that this lease will be deemed
surrendered only if
registration of the Survey Plan occurs, with effect from the Surrendered Date
and the Tenant will hold as tenant from the Surrender Date until registration
of the Survey
Plan as a tenant at will at law but on the same terms and conditions in this
lease
(including payment of rent) and subject to the covenants of the parties
constituting an
agreement to lease in the following sub-clause.
	 
	 	(e)	 	The Landlord will grant and the Tenant will accept a Lot Lease
as from the Survey
Plan registration date and as and from that date the parties will be bound to
its terms
as if the Lot Lease had been signed, stamped and registered in the Department
of
Natural Resources immediately upon registration of the Survey Plan.
	 
	 	(f)	 	The Tenant will execute and return to the Landlord’s solicitors
within fourteen (14)
days following notification by them that the Survey Plan has registered in
the
Department of Natural Resources a Lot Lease in triplicate signed by the
Tenant.
	 
	 	(g)	 	The Landlord will bear the costs of the Landlord’s
solicitors in preparation of all
required documents, the stamping of the Lot Lease and Surrender
Documents and
registration of the Lot Lease and Survey Plan (including mortgagee’s
consent).
	 
	 	(h)	 	The Landlord will bear the reasonable legal costs
of the Tenant to review the Surrender,Documents and the Lot Lease.
	 
	 	(i)	 	The Tenant shall not be entitled to make any objection or claim any
compensation if the subdivision under this clause 24 results in a variation in the
area the Premises to comply with the requirements of the Department of Natural
Resources and/or the provisions of any statute.
	 
	 	(j)	 	For the purpose of this clause the terms listed below have the following meanings:-
	 
	 	 	 	“Lot Lease” shall mean a lease on the same terms and conditions as this lease
with the amendments deemed reasonably necessary by the Landlord to take into account
the Body Corporate Community Management Act (Qld) and any other relevant
legislation including but not limiting the requirement to obtain body
corporate consent when required, the payment of administrative fund and
sinking fund levies and the obligation to comply with the relevant
community management statement.
	 
	 	 	 	“Strata Notice” means a notice in writing by the Landlord to the Tenant
confirming the Landlord’s intention to register a Survey Plan of Land;
	 
	 	 	 	“Surrender Date” means the date immediately preceding the Survey Plan
registration date.
	 
	 	 	 	“Surrender Documents” means a surrender of the lease (in the form of a Deed
and registrable instrument if this lease is registered) and all such
declarations as may be required to facilitate assessment of stamp duty with
respect to the Surrender;

 

 

			
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	 	 	 	“Survey Plans” means a survey plan within the meaning of the Land Titles Act
(Qld) and the Body Corporate and Community Management Act (Qld) and includes
the resubdivision of lots on a survey plan.

	 	24.2	 	The Landlord is entitled to subdivide the Land and/or the Building by
way of registration of a
volumetric plan of subdivision and a Building Management Statement and the
provisions of
clause 24.1 shall apply mutatis mutandis to such a subdivision.

	25.	 	STAGED DEVELOPMENT

	 	25.1	 	The Tenant acknowledges that the Building is part of a staged development and as such
construction and other works will be undertaken by the Landlord as part of the
further development on the balance of the Land (“Works”). The Landlord discloses
that it may develop (with related entities, by joint venture or some other
arrangement) adjacent land.
	 
	 	25.2	 	The Landlord must during the hours of 8:00am to 6.00pm Monday to Friday (excluding
public holidays) take all reasonable steps to limit:

	 	(a)	 	disruption of the Tenant’s use of the Premises or interference
with the Tenant’s quiet enjoyment of the Premises, including, without
limitation any:

	 	(i)	 	interruption to the electricity supply, water supply or any other service provided
in respect of the Premises;
	 
	 	(ii)	 	interference caused by water, noise
or dust; and
	 
	 	(iii)	 	interference to the Tenant’s access to any
car parking facilities provided in respect of the Premises; or

	 	(b)	 	disruption of the Tenant’s business,

as a result of the Works, or as a result of any development of adjacent land
undertaken by the Landlord (whether alone or

with related entities, by joint venture
of some other arrangement).

	 	25.3	 	The Landlord shall from time to time upon request and upon reasonable notice inform
the Tenant as to how the works are being managed.
	 
	 	25.4	 	Subject to the Landlord complying with its obligations under this clause, the
Tenant will not object to any disruption or disturbance caused by or incidental to the Works and
any such disruption or disturbance shall not constitute a breach of clause
11 of this Lease.
	 
	 	25.5	 	The Tenant acknowledges that during construction of the Works, the
Landlord shall be entitled to temporarily change the access into the Premises
through the Common Areas provided a reasonable alternative is provided.

	26.	 	TRUSTEE CAPACITY

	 	26.1	 	If the Premises are at any time held by the Tenant upon the terms of or
are subject to any trust (the “Trust”) and whether or not the Landlord is aware of
the Trust:

	 	(a)	 	the Tenant accepts this lease both as trustee of the Trust
and in his personal capacity. The Tenant is personally liable for the
performance observance and fulfilment of this lease on the Tenant’s part;

 

 

			
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	 	(b)	 	in the event of any unremedied default under this lease by the
Tenant, the Tenant must
take all necessary steps and proceedings to ensure that the Trust assets are
made
available for rectifying such default and compensating the Landlord for claims
for
such default. The Tenant must assign to the Landlord upon demand all rights of
indemnity which the Tenant may have against the assets of the Trust; and
	 
	 	(c)	 	the Tenant covenants that it has power and authority to enter into this lease
under the Trust and that the entering into of this lease is in the due administration of
the Trust.

	27.	 	SALE BY LANDLORD

	 	27.1	 	If the Landlord sells an interest in the Land or in this lease, to the extent
that the purchaser or assignee is responsible for compliance with the
Landlord’s convenants and obligations, the
Landlord, without further written agreement, will be relieved of liability under this lease. In
the event of such a sale, the Tenant shall provide a replacement Bank Guarantee in favour of
the new owner, if required by the Landlord.
	 
	 	27.2	 	The Landlord must procure the execution by the purchaser or assignee covenants
(“Purchaser’s Covenant”) in favour of the Tenant that the purchaser or assignee is
bound by
the provisions of the covenants in this Lease granting an option of renewal to the
same extent
as if the purchaser or assignee was named as the landlord in this Lease and that such
purchaser or assignee will not sell or dispose of the Land or its interest in the Land until the
purchaser procures covenants from his purchasers or assignee in terms identical with the
Purchaser’s Covenant in favour of the Tenant.

	28.	 	MORTGAGE OF THE LAND

	 	28.1	 	In consideration of the landlord granting this lease, the Tenant agrees that
the consent of any mortgagee, of the Landlord (“the Mortgagee”) is subject to the
following:

	 
	 	(a)	 	such consent will not prejudice the Mortgagee’s rights, powers
and remedies under the relevant bill of mortgage which will remain in full force and effect as if the
consent had not been given. However, for so long as the Rent is paid strictly in accordance with
this lease and this lease is duly observed and performed, the Mortgagee will only exercise
its power of sale and any other remedy for default under the relevant bill of 
mortgage subject to the then subsisting rights of the Tenant;
	 
	 	(b)	 	the Tenant will also obtain the Mortgagee’s consent or approval
in all cases where the
Landlord’s consent or approval is required. Any consent or approval given by
the
Landlord will be subject to the consent or approval of the Mortgagee;
	 
	 	(c)	 	upon the Mortgagee giving notice to the Tenant of taking
receipt of the rents and
profits of the Land:

	 	(i)	 	the Tenant’s covenants in this lease will be
deemed to have been entered into by the Tenant with the Mortgagee; and
	 
	 	(ii)	 	all the rights, powers and remedies of the Landlord will vest in and
be exercisable by the Mortgagee until such notice is withdrawn or the
relevant mortgage is discharged;

 

 

			
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	 	(d)	 	unless the Mortgagee is in possession of the Land, the Mortgagee
will not be bound to
perform and will not incur any liability for the provisions of this lease
which are on
the part of the Landlord to be performed and observed;
	 
	 	(e)	 	such consent will, at the Mortgagee’s option, be void and of
no effect if the Tenant
fails to observe and perform any of the conditions in this Clause provided
that the Mortgagee has given the Tenant reasonable notice and time to rectify any
defect or default and the Tenant fails to do so.

	 	28.2	 	This lease is subordinate to every mortgage that at any time affects the Land
The Tenant must agree with the Mortgagee that if the Mortgagee becomes a mortgagee in
possession or takes action to realise the security of the mortgage, the Tenant will
attorn to the Mortgagee, as a Tenant, all the provisions of this Lease, if the
Mortgagee agrees in writing to accept the attornment and allow the Tenant to continue in
occupation of the Premises until this lease is lawfully terminated. The Tenant appoints
the Landlord its agent or attorney, at its option, to sign all documents in
confirmation of the subordination and an attornment. The Tenant must, if asked by the
Mortgagee, promptly sign a document in confirmation of this provision.

	29.	 	SPECIAL CONDITION — FITOUT

	 	29.1	 	The Tenant acknowledges and agrees that:

	 	(a)	 	it must submit to the Landlord for the ‘Landlord’s approval the
Tenant’s fitout plans.
The Landlord must promptly review the Tenant’s fitout plans and advise the
Tenant
within seven (7) days of their submission as to whether or not the Landlord
approves
of them;
	 
	 	(b)	 	the Landlord will not unreasonably withhold its approval to the
Tenant’s fitout plans
however, in granting its approval, the Landlord may impose reasonable
conditions
with which the Tenant must comply;
	 
	 	(c)	 	the Tenant must, at its own cost, apply for and diligently pursue all necessary
approvals of all relevant authorities for the constructions and installation of the
Tenant’s fitout according to the fitout plans approved by the Landlord; and
	 
	 	(d)	 	 the Tenant agrees to keep and maintain the Tenant’s fitout in good repair and
condition and to ensure that the Tenant’s insurance covers the fitout.

	 	29.2	 	The Landlord agrees that the Landlord will at its cost construct in a good
and workmanlike
manner and within a reasonable time the inter-tenancy walls and provision of
associated
ancillary works to create the Premises.
	 
	 	29.3	 	The Landlord and Tenant agree to cooperate with each other in relation to the
construction of
the inter-tenancy walls and associated works to create the Premises in conjunction
with the
Tenant’s fitout.
	 
	 	29.4	 	The Landlord agrees that the Landlord will, at its costs, establish and secure the
Premises.

	30.	 	SPECIAL CONDITION — FITOUT CONTRIBUTION

	 	30.1	 	The Landlord agrees to contribute the sum of $85,000.00 (exclusive of GST)
towards the Tenant’s fitout costs (“the Landlord’s Fitout Contribution”). The Landlord and Tenant
agree:

 

 

			
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	(a)	 	the Landlord shall retain ownership of the fitout to the value
of the Landlord’s Fitout
Contribution;
	 
	(b)	 	the Landlord’s Fitout Contribution shall first be applied to
building works and any
balance to individual fixtures, fittings and equipment; and
	 
	(c)	 	the Tenant must provide the Landlord with valid tax invoices for the payment of
the Landlord’s Fitout Contribution. The Landlord must attend to payment of the tax
invoices within fourteen (14) days of receipt of the same by the Landlord.

On completion of the Tenant’s fitout, the Tenant shall provide to
the Landlord an itemized account of the Landlord’s fitout as certified by the Tenant’s architect.

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