Document:

Master Operating Lease

 Exhibit 10.22 
  
 

 
  
 Master Operating Lease

 Agreement 
  
 Datec (PNG) Limited 
  
 Bank of South Pacific Limited 
  

					
	 4th Floor
 Mogoru Moto Building
 (PO Box 850)
 Port Moresby
 Telephone: (675) 309 2000
 Fax: (675) 309 2099
	  	 	  	 20 November 2004
 Ref: JLH:TJL:
02-1361 3306
  

	  	 	  
	  	 	  
	  	 	  

  
 © Blake Dawson Waldron 2004 

 CONTENTS 
  

							
	 1.
	  	 INTERPRETATION
	  	1
				
	 	  	 1.1
	  	 Definitions
	  	1
	 	  	 1.2
	  	 Rules for interpreting this Master Operating Lease Agreement and an Operating Lease Agreement
	  	9
	 	  	 1.3
	  	 Business Days
	  	10
	 	  	 1.4
	  	 Multiple parties
	  	10
			
	 2.
	  	 AMENDMENT AND RESTATEMENT
	  	10
				
	 	  	 2.1
	  	 Amendment and Restatement
	  	10
	 	  	 2.2
	  	 Entire Agreement
	  	10
			
	 3.
	  	 LEASE AGREEMENT AND TERM
	  	11
				
	 	  	 3.1
	  	 Master Operating Lease Agreement
	  	11
	 	  	 3.2
	  	 Operating Lease Agreement
	  	11
	 	  	 3.3
	  	 Separate agreements
	  	11
	 	  	 3.4
	  	 Term
	  	11
			
	 4.
	  	 DELIVERY, INSTALLATION AND ACCEPTANCE
	  	11
				
	 	  	 4.1
	  	 Delivery and installation
	  	11
	 	  	 4.2
	  	 Acceptance Certificate
	  	12
	 	  	 4.3
	  	 Delivery Location
	  	12
			
	 5.
	  	 ACKNOWLEDGMENTS AND UNDERTAKINGS RELATING TO GOODS
	  	12
				
	 	  	 5.1
	  	 Title
	  	12
	 	  	 5.2
	  	 No fixtures
	  	12
	 	  	 5.3
	  	 Name plates
	  	13
	 	  	 5.4
	  	 Signage and promotion
	  	13
	 	  	 5.5
	  	 Replacement parts
	  	13
	 	  	 5.6
	  	 Possession and location of Goods
	  	13
	 	  	 5.7
	  	 Notification of seizure or claim
	  	13
	 	  	 5 8
	  	 No Encumbrance or disposal
	  	13
	 	  	 5.9
	  	 Contents of Goods
	  	14
	 	  	 5.10
	  	 General
	  	14
			
	 6.
	  	 USE OF GOODS
	  	14
				
	 	  	 6.1
	  	 Lessee’s use of Goods
	  	14
	 	  	 6.2
	  	 Customer and public use of Goods
	  	14
	 	  	 6.3
	  	 Compliance with laws
	  	15
	 	  	 6.4
	  	 Quiet enjoyment
	  	15
			
	 7.
	  	 MAINTENANCE AND CARE OF GOODS
	  	15
				
	 	  	 7.1
	  	 Lessor’s obligation to service and maintain Goods
	  	15

							
	 	  	7.2	  	 Maintenance of Technical Records
	  	15
	 	  	7.3	  	 Lessee’s obligations
	  	15
	 	  	7.4	  	 No pledging of credit
	  	16
			
	8.	  	 ACCESS TO GOODS
	  	16
				
	 	  	8.1	  	 Scheduled access
	  	16
	 	  	8.2	  	 Maintenance and servicing access
	  	16
	 	  	8.3	  	 Security and related requirements and protocols
	  	16
	 	  	8.4	  	 Lessee to obtain consents
	  	16
			
	9.	  	 LOSS OR DAMAGE TO GOODS
	  	17
				
	 	  	9.1	  	 Lessee bears risk of loss
	  	17
	 	  	9.2	  	 Notification of loss
	  	17
	 	  	9.3	  	 Insurance Payments
	  	17
	 	  	9.4	  	 Payment of Casualty Value
	  	17
	 	  	9.5	  	 Refunds
	  	18
			
	10.	  	 RENT INSTALMENTS AND OTHER AMOUNTS
	  	19
				
	 	  	10.1	  	 Rent Instalments
	  	19
	 	  	10.2	  	 Rent Periods
	  	19
	 	  	10.3	  	 No security deposit
	  	19
	 	  	10.4	  	 Maintenance payments
	  	19
	 	  	10.5	  	 Net Lease
	  	19
	 	  	10.6	  	 Lease Rate Review
	  	19
			
	11.	  	 MANNER AND APPLICATION OF PAYMENTS
	  	22
				
	 	  	11.1	  	 Manner of payment
	  	22
	 	  	11.2	  	 Deductions or withholdings
	  	22
	 	  	11.3	  	 Currency of payments
	  	22
	 	  	11.4	  	 Application of payments
	  	22
			
	12.	  	 REPRESENTATIONS AND WARRANTIES
	  	23
				
	 	  	12.1	  	 Representations and warranties
	  	23
	 	  	12.2	  	 Repetition of representations and warranties
	  	24
	 	  	12.3	  	 Reliance on representations and warranties
	  	24
			
	13.	  	 UNDERTAKINGS
	  	24
				
	 	  	13.1	  	 General undertakings
	  	24
	 	  	13.2	  	 Reports and information
	  	25
			
	14.	  	 INSURANCE
	  	25
				
	 	  	14.1	  	 Lessee must maintain insurance
	  	25
	 	  	14.2	  	 Insurance Policies
	  	26
	 	  	14.3	  	 Evidence of Insurance Coverage
	  	26
	 	  	14.4	  	 Further Insurance Undertakings
	  	26

  

 ii. 

							
	 	  	14.5	  	 Notification
	  	26
	 	  	14.6	  	 Lessor’s rights to settle claims
	  	27
			
	15.	  	 DEFAULT
	  	27
				
	 	  	15.1	  	 Events of Default
	  	27
	 	  	15.2	  	 Consequences of Event of Default
	  	28
	 	  	15.3	  	 Lessor Events of Default
	  	29
	 	  	15.4	  	 Consequences of Lessor Event of Default
	  	29
			
	16.	  	 RETURN OF GOODS
	  	30
				
	 	  	16.1	  	 Redelivery of Goods
	  	30
	 	  	16.2	  	 Redelivery of records
	  	30
	 	  	16.3	  	 Lessee’s failure to return Goods
	  	30
	 	  	16.4	  	 Lessor dealing with Goods
	  	31
			
	17.	  	 CHANGE OF LAW
	  	31
				
	 	  	17.1	  	 Notice of change of law
	  	31
	 	  	17.2	  	 Early termination after change of law
	  	31
			
	18.	  	 VOLUNTARY EARLY TERMINATION
	  	32
			
	19.	  	 INDEMNITIES AND TAXES
	  	32
				
	 	  	19.1	  	 Lessee Indemnity
	  	32
	 	  	19.2	  	 Exceptions
	  	33
	 	  	19.3	  	 Lessor Indemnity
	  	34
	 	  	19.4	  	 Lessor Indemnity
	  	34
	 	  	19.5	  	 Goods and Services Tax
	  	34
	 	  	19.6	  	 Stamp Duty
	  	35
			
	20.	  	 DEFAULT INTEREST
	  	35
				
	 	  	20.1	  	 Default interest
	  	35
	 	  	20.2	  	 Interest after judgment
	  	35
	 	  	20.3	  	 Accrual and calculation of interest
	  	35
			
	21.	  	 LEGAL WARRANTIES AND LIMITATIONS
	  	35
			
	22.	  	 CONFIDENTIALITY
	  	36
			
	23.	  	 NOTICES
	  	37
				
	 	  	23.1	  	 How to give a notice
	  	37
	 	  	23.2	  	 When a notice is given
	  	37
	 	  	23.3	  	 Address for notices
	  	38
			
	24.	  	 AMENDMENT AND ASSIGNMENT
	  	38

  

 iii. 

							
	 	  	24.1	  	 Amendment
	  	38
	 	  	24.2	  	 Assignment
	  	38
			
	25.	  	 GENERAL
	  	38
				
	 	  	25.1	  	 Governing law
	  	38
	 	  	25.2	  	 Liability for expenses
	  	38
	 	  	25.3	  	 Giving effect to this Master Operating Lease Agreement
	  	39
	 	  	25.4	  	 Waiver of rights
	  	39
	 	  	25.5	  	 Operation of the Transaction Documents
	  	39
	 	  	25.6	  	 Operation of indemnities
	  	40
	 	  	25.7	  	 Consents
	  	40
	 	  	25.8	  	 Statements by the Lessor
	  	40
	 	  	25.9	  	 Set-off
	  	40
	 	  	25.10	  	 No merger
	  	40
	 	  	25.11	  	 Exclusion of contrary legislation
	  	40
	 	  	25.12	  	 Inconsistency with other documents
	  	41
	 	  	25.13	  	 No advice
	  	41
	 	  	25.14	  	 Consideration
	  	41
	 	  	25.15	  	 Counterparts
	  	41
	 	  	25.16	  	 Attorneys
	  	41
			
	 Schedules
	  	 	  	 
			
	1	  	 FORM OF SCHEDULE
	  	42
			
	2	  	 FORM OF ACCEPTANCE CERTIFICATE
	  	46
			
	3	  	 EXISTING GOODS
	  	47

  

 iv. 

 MASTER OPERATING LEASE AGREEMENT 
  

					
	DATE            20 November 2004	  	 	  	[SEAL GOES HERE]

  
 PARTIES 
  
 Datec (PNG) Limited (Lessor) 
  
 Bank of South Pacific Limited (Lessee) 
  
 RECITALS  
  

	A.	On 1 January 2004, the Lessor and the Lessee agreed the master terms and conditions that were to apply to each operating lease agreement to be entered into between the Lessor
and the Lessee in relation to certain equipment, machines and other goods (Original Master Operating Lease Agreement). The Original Master Operating Lease Agreement was not evidenced in writing at that time.

  

	B.	On 1 January 2004, the Lessee sold and transferred legal and beneficial title in and to certain of the Existing Goods to the Lessor. 

  

	C.	On or after 1 January 2004, the Lessor and the Lessee entered into 10 operating lease agreements, each in relation to certain of the Existing Goods (each an Original
Operating Lease Agreement and collectively the Original Operating Lease Agreements. The Original Operating Lease Agreements, which incorporated the master terms and conditions of the Original Master Operating Lease Agreement, were not
evidenced in writing at that time. 

  

	D.	The parties now wish to evidence in writing and to restate: 

  

	 	(1)	in this Master Operating Lease Agreement, the Original Master Operating Lease Agreement (including the terms and conditions applicable to each operating lease agreement to be
entered into between the Lessor and the Lessee in relation to certain equipment, machines and other goods on or after the date of this Master Operating Lease Agreement) as the Original Master Operating Lease Agreement has been amended and
supplemented by the Lessor and the Lessee on the date of this Master Operating Lease Agreement; and 

  

	 	(2)	in this Master Operating Lease Agreement and each applicable Schedule, the terms and conditions applicable to each of the Original Operating Lease Agreements, as such Original
Operating Lease Agreements have been amended and supplemented by the Lessor and the Lessee on the date of this Master Operating Lease Agreement and the applicable Schedules. 

  
 OPERATIVE PROVISIONS 
  

	1.	INTERPRETATION 

  

	1.1	Definitions 

  
 The following definitions apply in this Master Operating Lease Agreement (including in the Recitals). 

 Acceptance Certificate means, in respect of an Operating Lease Agreement, a certificate in or
substantially in the form set out in schedule 2. 
  
 Anniversary Date means, in respect of an Operating Lease Agreement, each date (or, if such date is not a Business Day, the Business Day immediately prior to such date) which occurs on an anniversary of the Commencement Date
corresponding to the Operating Lease Agreement. 
  
 ATM Sale
Agreement means the agreement of that title dated 1 January 2004 entered into between the Lessor and the Lessee (as evidenced in writing, amended and supplemented on or about the date of this Master Operating Lease Agreement). 

 
 Authorisation means: 
  

	 	(a)	an authorisation, consent, declaration, exemption, notarisation or waiver, however it is described; and 

  

	 	(b)	in relation to anything that could be prohibited or restricted by law if a Government Agency acts in any way within a specified period, the expiry of that period without that action
being taken, 

  
 including any renewal or amendment.

  
 Authorised Representative means, in respect of a
party, any person notified by the party to the other party in writing (in a manner that satisfies the other party of proper appointment and which includes a specimen signature of the person) as the party’s authorised representative or as one of
its authorised representatives (as the case may be). 
  
 Business Day means: 
  

	 	(a)	for determining when a notice, consent or other communication is given, a day that is not a Saturday, Sunday or public holiday in the place to which the notice, consent or other
communication is sent; and 

  

	 	(b)	for any other purpose, a day (other than a Saturday, Sunday or public holiday) on which banks are open for general banking business in Port Moresby. 

  
 Business Hours means, on any Business Day, the time period between
10.00am and 4.00pm (Port Moresby time). 
  
 Casualty Event
means, in respect of any Goods, the occurrence of one or more of the events or circumstances referred to in clause 9.2 in relation to those Goods. 
  
 Casualty Event Notice Date has the meaning given to it in clause 9.2. 
  
 Casualty Event Payment Date means, in respect of Casualty Goods, the date which is the first to occur of: 

 

	 	(a)	120 calendar days subsequent to the Casualty Event Notice Date; and 

  

 2. 

	 	(b)	3 Business Days subsequent to the Lessee or the Lessor, as the case may be, receiving a complete and final payout from insurers in respect of the Casualty Event; and

  

	 	(c)	such other date as the Lessor and the Lessee may agree.  

  
 Casualty Goods has the meaning given to it in clause 9.2.  
  
 Casualty Value means, for any Casualty Goods on a day, the sum of: 
  

	 	(a)	the Termination Value for those Casualty Goods on that day; and 

  

	 	(b)	the net present value as at that day of the Residual Value for those Casualty Goods calculated by discounting the Residual Value for those Casualty Goods at the Lease Rate.

  
 Change of Law Notice has the meaning
given to it in clause 17.1.  
  
 Change of Law Date
has the meaning given to it in clause 17.2. 
  
 Commencement Date means: 
  

	 	(a)	in respect of an Operating Lease Agreement in respect of Goods which are not Existing Goods, the date the Lessee executes and delivers an Acceptance Certificate to the Lessor in
accordance with clause 4.2; and 

  

	 	(b)	in respect of an Operating Lease Agreement in respect of Goods which are Existing Goods, the date referred to in schedule 3. 

  
 Companies Act means the Companies Act 1997. 

 
 Default Interest Period means, for an unpaid amount, a period of
30 days (or any other period the party to whom the amount is owed selects) beginning on the day on which the amount falls due, or the last day of another Default Interest Period for that amount. 
  
 Default Rate means, for any Default Interest Period, the interest
rate described as such in the Schedule. 
  
 Default
Termination Date has the meaning given to it in clause 15.2(a). 
  
 Delivery Location means, in respect of an Operating Lease Agreement, the location specified as such in the Schedule. 
  
 Encumbrance means a mortgage, charge, pledge, lien, hypothecation or title retention arrangement, a right of set-off or right to withhold payment
of a deposit or other money, a notice under section 356 of the Income Tax Act 1959 or any similar legislation, or an easement, restrictive covenant, caveat or similar restriction over property, or an agreement to create any of them or
to allow any of them to exist. 
  
 Event of Default means
an event or circumstance described in clause 15.1. 
  

 3. 

 Excluded Tax means a Tax on net income in any jurisdiction, other than: 
  

	 	(a)	a Tax that is calculated on or by reference to the gross amount of any payment derived by a party under a Transaction Document or the transactions that a Transaction Document
contemplates; or 

  

	 	(b)	a Tax that is imposed because a party is regarded as being subject to tax in a jurisdiction solely because it is a party to a Transaction Document or because it is participating in
the transactions that a Transaction Document contemplates. 

  
 Existing Goods means the equipment, machines and other goods more particularly described in schedule 3. 
  
 Financial Indebtedness means an obligation (whether present or future, actual or contingent) to pay or deliver any money or commodity under or in
respect of any financial accommodation including under or in respect of any: 
  

	 	(a)	money borrowed or raised; 

  

	 	(b)	redeemable or repurchaseable share or stock; 

  

	 	(c)	bill of exchange, promissory note or other financial instrument (whether or not transferable or negotiable); 

  

	 	(d)	put option or buyback or discounting arrangement in respect of any property; 

  

	 	(e)	lease, licence or other arrangement in respect of any property entered into primarily to raise finance or to finance the acquisition of that property (other than a lease, licence or
arrangement which may be accounted for as an operating lease under applicable generally accepted accounting principles); 

  

	 	(f)	hire purchase or deferred payment obligation for any property or service; 

  

	 	(g)	interest or currency swap or hedge arrangement, financial option, futures contract or analogous transaction; or 

  

	 	(h)	arrangement which achieves the same or a similar commercial effect as or to any of the above, 

  
 and any Guarantee of Financial Indebtedness of another person. 
  
 Goods means, in respect of or in relation to an Operating Lease
Agreement and subject in all circumstances to clause 5.9, the equipment, machines and other goods more particularly described in the Schedule applicable to the Operating Lease Agreement together with any part, component, appliance, accessory,
instrument or other item of equipment for the time being installed in or attached to the equipment, machines and other goods described in the Schedule applicable to the Operating Lease Agreement. 
  
 GST means any tax in the nature of a consumption tax, a goods and
services tax, a value added tax or similar tax, including, without limitation, any tax under the GST Act. 
  

 4. 

 GST Act means the Goods and Services Tax Act 2003.  
  
 Government Agency means: 
  

	 	(a)	a government or government department or other body; 

  

	 	(b)	a governmental, semi-governmental or judicial person; or 

  

	 	(c)	a person (whether autonomous or not) who is charged with the administration of a law. 

  
 Guarantee means a guarantee, indemnity, letter of credit, performance bond, acceptance or endorsement, or other
undertaking or obligation: 
  

	 	(a)	to provide funds (including by the purchase of property), or otherwise to make property available, in or to enable payment or discharge of; 

  

	 	(b)	to indemnify against the consequences of default in the payment of; or 

  

	 	(c)	otherwise to be responsible for, 

  
 an obligation (whether or not it involves the payment of money), or otherwise to be responsible for the solvency or financial condition, of any other
person. 
  
 Insolvency Event means, in respect of a
person: 
  

	 	(a)	the appointment of a liquidator of that person; 

  

	 	(b)	an application being made to a court for the appointment of a liquidator of that person, unless the application is withdrawn or dismissed within 45 Business Days;

  

	 	(c)	an administrator being appointed to the person; 

  

	 	(d)	(i)       the person resolving to appoint a Receiver or analogous person to the person or any of the person’s property; 

 

	 	(ii)	an application being made to a court for an order to appoint a Receiver, provisional liquidator, trustee for creditors or in insolvency or bankruptcy or analogous person to the
person or any of the person’s property, unless the application is withdrawn or dismissed within 45 Business Days; or 

  

	 	(iii)	an appointment of the kind referred to in subparagraph (i) or (ii) being made (whether or not following a resolution or application); 

  

	 	(e)	the person being taken under section 335 of the Companies Act to have failed to comply with a statutory demand; 

  

	 	(f)	the person: 

  

	 	(i)	suspending payment of its debts, ceasing (or threatening to cease) to carry on all or a material part of its business, stating that it is unable to pay its debts or being or
becoming otherwise insolvent; or 

  

 5. 

	 	(ii)	being taken by applicable law to be (or if a court would be entitled or required to presume that the person is) unable to pay its debts or otherwise insolvent;

  

	 	(g)	the person dying, ceasing to be of full legal capacity or otherwise becoming incapable of managing its own affairs for any reason; 

  

	 	(h)	being adjudicated an insolvent under the Insolvency Act Chapter No. 253 or bankrupt under any analogous legislation; 

  

	 	(i)	the person taking any step toward entering into a compromise or arrangement with, or assignment for the benefit of, any of its members or creditors; or 

  

	 	(j)	any analogous event, 

  
 unless this takes place as part of a solvent reconstruction, amalgamation, merger or consolidation that has been approved by: 
  

	 	(k)	the Lessor, if the relevant person is not the Lessor; or 

  

	 	(l)	the Lessee, if the relevant person is the Lessor. 

  
 Lease Rate means, in relation to an Operating Lease Agreement, the interest rate specified as such in the Schedule. 
  
 Lease Term means, in relation to an Operating Lease Agreement, the
period from (and including) the Commencement Date to (and including) the Termination Date. 
  
 Lessor Default Termination Date has the meaning given to it in clause 15.4(a). 
  
 Lessor Event of Default has the meaning given to it in clause 15.3.  
  
 Lessor Person has the meaning given to it in clause 8.3. 
  
 Maintenance Instalment means, in respect of a Rent Payment Date, each
amount described as such in the Schedule. 
  
 Material Adverse
Effect means, in respect of a person, a material adverse effect on its ability to perform its obligations under a Transaction Document or an Operating Lease Agreement. 
  
 Operating Lease Agreement means a lease of equipment, machines and/or other goods on the terms of this Master
Operating Lease Agreement and the schedule headed “Operating Lease Agreement – Schedule to Master Operating Lease Agreement” applicable to such equipment, machines and/or other goods. 
  

 6. 

 Original Master Operating Lease Agreement has the meaning given to it in Recital A. 

  
 Original Operating Lease Agreement has the meaning
given to it in Recital C.  
  
 Permitted Encumbrance
means: 
  

	 	(a)	an Encumbrance (if any) created under or evidenced by a Transaction Document; 

  

	 	(b)	a lien that arises by operation of law in the ordinary course of ordinary business, where the amount secured is not overdue or is being diligently contested in good
faith; or 

  

	 	(c)	an Encumbrance that the Lessor approves before it arises, where the amount secured does not increase, and the time for payment of that amount is not extended, beyond the amount and
time approved by the Lessor. 

  
 Premises
has the meaning given to it in clause 5.2. 
  
 Receiver
means, in relation to a person’s property: 
  

	 	(a)	a receiver or receiver and manager of that property; or 

  

	 	(b)	anyone else who (whether or not as agent for the person) is in possession, or has control, of that property to enforce an Encumbrance. 

  
 Redelivery Location means, in relation to an Operating Lease
Agreement, the location specified as such in the Schedule or any other location agreed between the Lessor and the Lessee. 
  
 Reference Rate means, on any day, the indicator lending rate most recently published by the Lessee on that day as its benchmark lending rate.

  
 Rent Payment Date means, in relation to an Operating
Lease Agreement, each date described as such in the Schedule. 
  
 Rent Instalment means, in respect of a Rent Payment Date, each amount described as such in the Schedule. 
  
 Rent Period means, in respect of an Operating Lease Agreement, each such period referred to in clause 10.2. 
  
 Residual Value means, in respect of any Goods, that portion of the
“Residual Value Amount” specified as such in the Schedule as is attributable to those Goods. 
  
 Schedule means, in respect of an Operating Lease Agreement, the schedule headed “Operating Lease Agreement – Schedule to Master Operating
Lease Agreement” which is part of the Operating Lease Agreement. 
  
 Scheduled Termination Date means, in respect of an Operating Lease Agreement, the date described as such in the Schedule or such other date as the Lessor and the Lessee may agree in writing. 
  

 7. 

 Security Interest means an Encumbrance that secures the payment of money or the performance of an
obligation, or any other interest or arrangement of any kind that gives a creditor priority over other creditors in relation to any property. 
  
 Side Letter means the letter agreement dated on or about the date of this Master Operating Lease Agreement entered into between the Lessor and the
Lessee in connection with this Master Operating Lease Agreement, certain Operating Lease Agreements and the ATM Sale Agreement. 
  
 Tax means a tax, levy, duty, charge, deduction or withholding, however it is described, that is imposed by law or by a Government Agency, together
with any related interest, penalty, fine or other charge. 
  
 Technical Records mean, in relation to Goods, the log books, instruction, maintenance and service manuals and other technical records and documents relating to those Goods. 
  
 Termination Date means, in respect of an Operating Lease Agreement,
the earlier to occur of: 
  

	 	(a)	the Scheduled Termination Date; or 

  

	 	(b)	the date when the leasing of the Goods pursuant to the Operating Lease Agreement is terminated in accordance with the provisions of the Operating Lease Agreement.

  
 Termination Value means, in respect of
an Operating Lease Agreement and any Goods on a day, the sum of the net present values on that day of that portion of the Rent Instalments which remain to fall due under the Operating Lease Agreement which are attributable to those Goods assuming
that the Lease Term would expire on the Scheduled Termination Date and not earlier or later, such net present values to be calculated using a discount rate equal to the Lease Rate. 
  
 Transaction Document means, in respect of an Operating Lease Agreement: 
  

	 	(a)	this Master Operating Lease Agreement; 

  

	 	(b)	the Schedule; 

  

	 	(c)	the Acceptance Certificate; 

  

	 	(d)	the Side Letter; 

  

	 	(e)	any document or agreement that the parties agree in writing is to be a Transaction Document for the purposes of an Operating Lease Agreement; and 

  

	 	(f)	any document or agreement that amends, supplements, replaces or novates any of the above. 

  
 Voluntary Early Termination Date has the meaning given to it in clause 18(a). 
  

 8. 

	1.2	Rules for interpreting this Master Operating Lease Agreement and an Operating Lease Agreement 

  
 Headings are for convenience only, and do not affect interpretation. The following rules also apply in interpreting this
Master Operating Lease Agreement and an Operating Lease Agreement, except where the context makes it clear that a rule is not intended to apply. 
  

	 	(a)	A reference to: 

  

	 	(i)	legislation (including subordinate legislation) is to that legislation as amended, re-enacted or replaced, and includes any subordinate legislation issued under it;

  

	 	(ii)	a document or agreement, or a provision of a document or agreement, is to that document, agreement or provision as amended, supplemented, replaced or novated;

  

	 	(iii)	a party to this Master Operating Lease Agreement or an Operating Lease Agreement or to any other document or agreement includes a permitted substitute or a permitted assign of that
party; 

  

	 	(iv)	a “clause” or a “schedule” (as distinct from a Schedule) is a reference to a clause of, or schedule to, this Master Operating Lease Agreement;

  

	 	(v)	a person includes any type of entity or body of persons, whether or not it is incorporated or has a separate legal identity, and any executor, administrator or successor in law of
the person; and 

  

	 	(vi)	anything (including a right, obligation or concept) includes each part of it. 

  

	 	(b)	A singular word includes the plural, and vice versa. 

  

	 	(c)	A word which suggests one gender includes the other genders. 

  

	 	(d)	If a word is defined, another part of speech has a corresponding meaning. 

  

	 	(e)	If an example is given of anything (including a right, obligation or concept), such as by saying it includes something else, the example does not limit the scope of that thing.

  

	 	(f)	The word agreement includes an undertaking or other binding arrangement or understanding, whether or not in writing. 

  

	 	(g)	The words subsidiary, holding company and related corporation have the same meanings as in the Companies Act. 

  

	 	(h)	A reference to Kina or K is to an amount in Papua New Guinea currency. 

  

	 	(i)	Words defined in the GST Act have the same meaning in this Master Operating Lease Agreement and each Operating Lease Agreement. 

  

 9. 

	1.3	Business Days 

  
 If the day on or by which a person must do something under this Master Operating Lease Agreement or an Operating Lease Agreement is not a Business Day:

  

	 	(a)	if the act involves a payment that is due on demand, the person must do it on or by the next Business Day; and 

  

	 	(b)	in any other case, the person must do it on or by the previous Business Day. 

  

	1.4	Multiple parties 

  
 If a party to this Master Operating Lease Agreement and/or an Operating Lease Agreement is made up of more than one person, or a term is used in a
Transaction Document or an Operating Lease Agreement to refer to more than one party: 
  

	 	(a)	an obligation of those persons is joint and several; 

  

	 	(b)	a right of those persons is held by each of them severally; and 

  

	 	(c)	any other reference to that party or that term is a reference to each of those persons separately, so that (for example): 

  

	 	(i)	a representation, warranty or undertaking is given by each of them separately; and 

  

	 	(ii)	a reference to that party or that term in clause 15 is a reference to each of those persons separately. 

  

	2.	AMENDMENT AND RESTATEMENT 

  

	2.1	Amendment and Restatement 

  
 The Lessor and the Lessee agree to: 
  

	 	(a)	amend and supplement the Original Master Operating Lease Agreement and to restate the Original Master Operating Lease Agreement as amended and supplemented, on the terms and subject
to the conditions now set out and evidenced in writing in this Master Operating Lease Agreement; and 

  

	 	(b)	amend and supplement each of the Original Operating Lease Agreements and to restate the Original Operating Lease Agreements as amended and supplemented, on the terms and subject to
the conditions now set out and evidenced in writing in this Master Operating Lease Agreement and each applicable Schedule. 

  

	2.2	Entire Agreement 

  
 The Lessor and the Lessee agree that for all purposes (including, but not limited to, evidentiary purposes), this Master Operating Lease Agreement, each
applicable Schedule to this Master Operating Lease Agreement, the ATM Sale Agreement and the Side Letter collectively contain and reflect the entire agreement between the Lessor and the Lessee about their respective subject matters as at the date of
this Master Operating Lease Agreement. Any previous understanding, agreement, representation or warranty relating 

  

 10. 

 
to that subject matter is replaced by this Master Operating Lease Agreement, each of those applicable Schedules, the ATM Sale Agreement and the Side Letter
and has no further effect. 
  

	3.	LEASE AGREEMENT AND TERM 

  

	3.1	Master Operating Lease Agreement 

  
 This Master Operating Lease Agreement sets out the terms and conditions applicable to each Operating Lease Agreement. 
  

	3.2	Operating Lease Agreement 

  

	 	(a)	An Operating Lease Agreement comes into existence in relation to equipment, machines and/or other goods on the terms of this Master Operating Lease Agreement and the Schedule
applicable to such equipment, machines and/or other goods: 

  

	 	(i)	on the date shown in schedule 3, where such equipment, machines and/or other goods are Existing Goods; and 

  

	 	(ii)	when both the Lessor and the Lessee have executed this Master Operating Lease Agreement and the Schedule applicable to such equipment, machines and/or other goods, where such
equipment, machines and/or other goods are not Existing Goods. 

  

	 	(b)	Upon an Operating Lease Agreement coming into existence and subject further, in the case of an Operating Lease Agreement in respect of Goods which are not Existing Goods, to the
Lessee executing and delivering an Acceptance Certificate in accordance with clause 4.2(b), the Lessor agrees to lease the Goods to the Lessee and the Lessee agrees to take the Goods on lease from the Lessor. 

  

	 	(c)	This Master Operating Lease Agreement and the Schedule applicable to Goods the subject of an Operating Lease Agreement must, once both documents have been executed, be read
together. 

  

	3.3	Separate agreements 

  
 Each Operating Lease Agreement is a separate agreement between the Lessor and the Lessee. 
  

	3.4	Term 

  
 The term of the lease of Goods pursuant to an Operating Lease Agreement is the Lease Term. 
  

	4.	DELIVERY, INSTALLATION AND ACCEPTANCE 

  

	4.1	Delivery and installation 

  
 The Lessee is responsible for: 
  

	 	(a)	obtaining the Goods; and 

  

 11. 

	 	(b)	having them delivered and installed; and 

  

	 	(c)	having them put in good working order. 

  

	4.2	Acceptance Certificate 

  
 The Lessee is to be taken to have accepted the Goods for the purpose of an Operating Lease Agreement: 
  

	 	(a)	where the Goods are Existing Goods, on the date shown in schedule 3, without the requirement for any further act to be undertaken or completed by the Lessor, the Lessee or any other
person and without the requirement for any other matter or circumstance to have occurred; and 

  

	 	(b)	where the Goods are not Existing Goods, when the Lessee delivers an executed Acceptance Certificate for the Goods to the Lessor, and not before this time. 

 

	4.3	Delivery Location 

  
 The Goods must be delivered to and installed at the Delivery Location. 
  

	5.	ACKNOWLEDGMENTS AND UNDERTAKINGS RELATING TO GOODS 

  

	5.1	Title 

  
 Subject to the provisions of clause 9.4(c): 
  

	 	(a)	the Goods will always remain the Lessor’s property, and the Lessor will always retain all legal and beneficial title in and to, and ownership of, the Goods, during and after
the Lease Term; and 

  

	 	(b)	the Lessee is a bailee of the Goods only and only has a right to use the Goods. 

  

	5.2	No fixtures 

  

	 	(a)	If the Goods are at any time affixed or attached to real property or buildings or other structures built or erected on real property (Premises), then notwithstanding
their degree of affixation or attachment to the Premises or the purposes for which they are affixed or attached to the Premises, title to and ownership of the Goods does not, subject to the provisions of clause 9.4(c), transfer from the Lessor to
the Lessee or any other person, the Goods do not become fixtures of the Premises and the Goods may be removed by the Lessor from the Premises subject to and in accordance with the provisions of the Operating Lease Agreement.

  

	 	(b)	The Lessee is responsible for obtaining all necessary acknowledgments, consents and waivers, in each case in form and substance reasonably satisfactory to the Lessor, from any
person (other than the Lessee) who is an owner, lessor, financier, mortgagee or other Security Interest holder of, in or over the Premises, confirming the matters referred to in paragraph (a). 

  

 12. 

	5.3	Name plates 

  
 The Lessee must during the Lease Term protect the Lessor’s interest in the Goods, including, if requested by the Lessor, by putting plates on the
Goods that state that the Lessor owns the Goods. 
  

	5.4	Signage and promotion 

  
 Notwithstanding the provisions of clause 5.3, the Lessee may also place, or allow to be placed, on the Goods any plates, marks or signage identifying or
promoting the Goods as relating to the business and/or operations of the Lessee. 
  

	5.5	Replacement parts 

  
 Subject to the provisions of clause 9.4(c), the Lessee must ensure that during the Lease Term any replacement part, component, appliance, accessory,
instrument or add on to the Goods becomes the Lessor’s property. Replacement parts, components, appliances, accessories, instruments and add ons form part of the Goods. 
  

	5.6	Possession and location of Goods 

  
 The Lessee must not during the Lease Term, without the Lessor’s prior consent: 
  

	 	(a)	transfer or part with possession of the Goods; or 

  

	 	(b)	remove the Goods from the Delivery Location. 

  

	5.7	Notification of seizure or claim 

  
 The Lessee must during the Lease Term immediately inform the Lessor if the Lessee becomes aware of any person seizing or attempting to seize the Goods, or
if any person makes a claim in connection with the Goods which is inconsistent with the Lessor’s or the Lessee’s rights and interests in the Goods. 
  

	5.8	No Encumbrance or disposal 

  
 The Lessee must not, during the Lease Term, without the Lessor’s prior written consent: 
  

	 	(a)	give another person, or permit another person to hold, an interest in or any form of Encumbrance (other than a Permitted Encumbrance) over the Goods, or authorise anyone else to do
so. This includes any act which might allow a lien over the Goods for repairs or service to be created; or 

  

	 	(b)	dispose of, declare a trust over or otherwise create an interest in the Goods. 

  

 13. 

	5.9	Contents of Goods 

  
 Notwithstanding any provision of an Operating Lease Agreement or any other document or agreement to the contrary, the Lessor acknowledges and agrees with
the Lessee that at all times: 
  

	 	(a)	the Lessor has no right, title, benefit or interest in and to any cash, deposits or other assets or property of any kind or nature whatsoever that may at any time be kept,
maintained, stored or otherwise physically situate in the Goods; and 

  

	 	(b)	should any of the cash, deposits, assets or property referred to in paragraph (a) at any time be in the possession, custody and/or control of the Lessor, the Lessor must:

  

	 	(i)	hold such cash, deposits, assets and property on trust for the Lessee; 

  

	 	(ii)	immediately inform the Lessee that the Lessor is holding such cash, deposits, property and assets; and 

  

	 	(iii)	take all action necessary to ensure the safe return of such cash, deposits, assets and property to the Lessee, even if an Event of Default has occurred and is continuing.

  

	5.10	General 

  

	 	The	Lessee must not during the Lease Term, without the Lessor’s prior consent: 

  

	 	(a)	expose the Goods to the risk of loss, damage or detention; or 

  

	 	(b)	allow the interests of the Lessor in the Goods to be prejudiced or expose the Lessor to liability; or 

  

	 	(c)	make any replacement, alteration or addition to the Goods which could mean that the Goods are no longer readily identifiable or which may lead to a material reduction in the value,
utility or remaining useful life of the Goods. 

  

	6.	USE OF GOODS 

  

	6.1	Lessee’s use of Goods 

  

	 	The	Lessee must during the Lease Term: 

  

	 	(a)	use the Goods only in the Lessee’s business operations and for the purpose for which the Goods are designed; and 

  

	 	(b)	ensure that other than in respect of use by the Lessee’s customers and members of the general public, the Goods are used and operated in a proper and skilful manner using only
competent and properly trained and qualified personnel and, if applicable, by recognised methods and standards of operation. 

  

	6.2	Customer and public use of Goods 

  
 The Lessee must ensure, to the extent reasonably within the Lessee’s power and control, that the Goods are used by the Lessee’s customers and
members of the general public in a manner consistent with the intended use of the Goods by such persons. 
  

 14. 

	6.3	Compliance with laws 

  

	 	(a)	The Lessee must ensure that the Goods are used in accordance with the supplier’s and manufacturer’s instructions and in compliance with all laws that apply to the Goods or
their use (including by maintaining registration of Goods where appropriate and complying with occupational health and safety legislation including when that legislation places an obligation on the Lessor). 

  

	 	(b)	The Lessor acknowledges and agrees that notwithstanding any provision of an Operating Lease Agreement or any other document or agreement to the contrary, it must not at any time
take any action, or require the Lessee to take any action, that is inconsistent with any laws that apply to the Goods or their use. 

  

	6.4	Quiet enjoyment 

  
 Provided no Event of Default has occurred and is continuing, the Lessor agrees not to, and to procure that no person (including any financier) claiming
through the Lessor does, interfere with the Lessee’s possession, use or quiet enjoyment of the Goods. 
  

	7.	MAINTENANCE AND CARE OF GOODS 

  

	7.1	Lessor’s obligation to service and maintain Goods 

  
 The Lessor agrees, at the Lessor’s cost and expense, to ensure that at all times during the Lease Term the Goods are serviced and maintained in good
and substantial working order, repair and condition (fair wear and tear excepted) so that the Goods are serviceable in all respects, such service and maintenance to be completed in accordance with the supplier’s and manufacturer’s
instructions, the Lessee’s and any insurer’s reasonable requirements and otherwise to the extent not inconsistent with the foregoing requirements in accordance with best industry practice. The Lessor must do all things necessary to
maintain any supplier’s and manufacturer’s warranties in relation to the Goods and to keep the Goods in good repair (fair wear and tear excepted). 
  

	7.2	Maintenance of Technical Records 

  
 The Lessor agrees, at all times during the Lease Term, to keep and maintain all Technical Records relating to the delivery, installation, inspection,
commissioning, alteration, maintenance, service and repair of the Goods and to make these available to the Lessee upon request by the Lessee. The Lessor may not enter into any maintenance, servicing or repair agreement with any person other than the
Lessee in relation to the Goods without the prior written consent of the Lessee. The Lessor must produce a copy of any maintenance, service or repair agreement entered into in respect of the Goods whenever the Lessee requests. 
  

	7.3	Lessee’s obligations 

  
 Without prejudice to the obligations of the Lessor in clauses 7.1 and 7.2, the Lessee agrees, at all times during the Lease Term, to take proper care of
the Goods, to keep the exterior of the Goods clean and to report any material fault with or defect in the Goods which renders the Goods inoperable to the Lessor as soon as reasonably practicable upon becoming aware of the existence of any such fault
with or defect in the Goods. 
  

 15. 

	7.4	No pledging of credit 

  
 The Lessee must not pledge the credit of the Lessor and without limiting the foregoing the Lessee must not represent, undertake, warrant or imply to any
person that the Lessor will pay or be responsible for any work done to the Goods. 
  

	8.	ACCESS TO GOODS 

  

	8.1	Scheduled access 

  
 Subject to clause 8.3 and without prejudice to clause 8.2, the Lessor may during the Lease Term, upon not less than 2 Business Days prior written notice
to the Lessee and at the Lessor’s cost, expense and risk, enter the Delivery Location on a Business Day during Business Hours to: 
  

	 	(a)	inspect and test the Goods; or 

  

	 	(b)	ascertain whether the Lessee is complying with the Operating Lease Agreement; or 

  

	 	(c)	carry out the Lessor’s rights under the Operating Lease Agreement. 

  

	8.2	Maintenance and servicing access 

  
 Subject to clause 8.3, the Lessor may enter the Delivery Location on a Business Day during Business Hours (or at such other times as the Lessee may agree)
to perform and comply with its obligations under clauses 7.1 and 7.2. Unless there is an emergency or unless the Lessor is attending at the Delivery Location at the request of the Lessee, the Lessor must give the Lessee reasonable notice before
attending at and entering the Delivery Location. 
  

	8.3	Security and related requirements and protocols 

  
 In exercising its rights pursuant to clauses 8.1 and 8.2 and any other provision of an Operating Lease Agreement, and in performing its obligations
pursuant to clauses 7.1 and 7.2 and otherwise pursuant to all other provisions of an Operating Lease Agreement, the Lessor must at all times comply, and must at all times procure that each of its directors, officers, employees, agents, contractors
and attorneys (each, a Lessor Person) comply, with all security and related requirements and protocols established: 
  
 (a) at or under law; or 
  
 (b) by the Lessee and advised to the Lessor or any Lessor Person by the Lessee, 
  
 including by permitting one or more security officers, employees or other persons nominated from time to time by the Lessee,
to accompany and be present at all times with any Lessor Person whilst the Lessor Person is exercising any of the foregoing rights or performing any of the foregoing obligations, in either case on behalf of the Lessor. 
  

	8.4	Lessee to obtain consents 

  
 For the purposes of clauses 8.1 and 8.2, the Lessee agrees to obtain all necessary consents and acknowledgments from the owner of, and each lessor,
financier, mortgagee or other person with a Security Interest in or over, the Delivery Location. 
  

 16. 

	9.	LOSS OR DAMAGE TO GOODS 

  

	9.1	Lessee bears risk of loss 

  

	 	(a)	Despite the Lessor’s ownership of the Goods, the Lessee bears the entire risk of loss arising in connection with the possession, use and storage of the Goods. This includes
loss arising because of theft, destruction or damage and loss arising out of claims of injury. 

  

	 	(b)	The Lessee must, at the Lessee’s cost and expense, protect the Goods from loss or damage. 

  

	9.2	Notification of loss 

  
 The Lessee must notify the Lessor promptly upon becoming aware that any of the Goods the subject of an Operating Lease Agreement are: 
  

	 	(a)	stolen; or 

  

	 	(b)	lost; or 

  

	 	(c)	destroyed; or 

  

	 	(d)	damaged or impaired to such an extent that the Lessee or any relevant insurer decides that repair is impractical or uneconomic, 

  
 the Goods so affected being the Casualty Goods and the date of such
notification being the Casualty Event Notice Date. 
  

	9.3	Insurance Payments 

  
 The Lessee agrees that the Lessor is entitled to receive all amounts which are payable to the Lessee by any insurer or other person because a Casualty
Event occurs in respect of Casualty Goods. 
  

	9.4	Payment of Casualty Value 

  
 Upon the occurrence of a Casualty Event in respect of Casualty Goods: 
  

	 	(a)	the leasing of the Casualty Goods will be immediately terminated and the Lease Term will immediately end in respect of the Casualty Goods on the Casualty Event Payment Date, without
prejudice, for the avoidance of doubt, to the continuation of the leasing of those remaining Goods (if any) the subject of the Operating Lease Agreement that are not Casualty Goods; and 

  

	 	(b)	the Lessee must pay to the Lessor on the Casualty Event Payment Date: 

  

	 	(i)	if the Casualty Event Payment Date is a Rent Payment Date, the Rent Instalment and the Maintenance Instalment payable on the Casualty Event Payment Date; and

  

	 	(ii)	 if the Casualty Event Payment Date is not a Rent Payment Date, that portion of the Maintenance Instalment that would have been due 

  

 17. 

	 	 
immediately subsequent to the Casualty Event Payment Date if the Lease Term had not ended on the Casualty Event Payment Date, as is properly attributable to
the period from (and including) the Rent Payment Date occurring immediately prior to the Casualty Event Payment Date to (and excluding) the Casualty Event Payment Date; and 

  

	 	(iii)	all unpaid Rent Instalments and Maintenance Instalments as at the Casualty Event Payment Date; and 

  

	 	(iv)	the Casualty Value in respect of the Casualty Goods as at the Casualty Event Payment Date less an amount equal to the sum of any money the Lessor has received from any insurer or
any other person in connection with the Casualty Goods and the occurrence of a Casualty Event; and 

  

	 	(v)	any other amounts in the relevant currencies then due and owing from the Lessee to the Lessor under the Transaction Documents and the Operating Lease Agreement as a result of the
termination of the leasing of the Casualty Goods pursuant to the Operating Lease Agreement; and 

  

	 	(c)	immediately upon payment by the Lessee of the amounts referred to in paragraph (b) (and subject to the rights of insurers), the Lessor must execute any bills of sale, title
transfer or related documents reasonably requested by the Lessee to evidence the granting, conveying, assigning and transferring of all of the Lessor’s right, title and interest in and to the Casualty Goods (or any remaining part of the
Casualty Goods) (including any salvage rights in relation to the Casualty Goods) free and clear of all Encumbrances and Security Interests to the Lessee; and 

  

	 	(d)	if the Casualty Goods are less than the total Goods the subject of the Operating Lease Agreement, the Lessor must, on the Casualty Event Payment Date, prepare and deliver to the
Lessee a replacement Schedule corresponding to the Operating Lease Agreement prepared in the same form and on the same basis as the existing Schedule but amending the Residual Value Amount, Goods, Maintenance Instalment and Rent Instalment
particulars to reflect the occurrence of the Casualty Event in respect of the Casualty Goods. Upon payment by the Lessee to the Lessor of the amounts referred to in paragraph (b) and upon execution of the replacement Schedule by the Lessor and
the Lessee, the replacement Schedule will become and be deemed to be the Schedule for all purposes of the Operating Lease Agreement. 

  

	9.5	Refunds 

  
 If the Lessor receives money from any insurer or any other person in relation to the Casualty Goods after the Lessee has paid to the Lessor the amounts
due under clause 9.4, the Lessor must refund and pay to the Lessee, up to the amount the Lessee paid to the Lessor, the amount the Lessor receives less all money then payable by the Lessee to the Lessor under the Operating Lease Agreement.

  

 18. 

	10.	RENT INSTALMENTS AND OTHER AMOUNTS 

  

	10.1	Rent Instalments 

  
 On each Rent Payment Date, the Lessee must pay the relevant Rent Instalment to the Lessor. 
  

	10.2	Rent Periods 

  
 The first Rent Period for an Operating Lease Agreement begins on the Commencement Date and ends on the first Rent Payment Date. Each subsequent Rent
Period begins on the day when the preceding Rent Period ends and ends on the next Rent Payment Date. 
  

	10.3	No security deposit 

  
 No security deposit is payable by the Lessee to the Lessor in respect of the leasing of the Goods. 
  

	10.4	Maintenance payments 

  
 On each Rent Payment Date, the Lessee must pay the relevant Maintenance Instalment to the Lessor. 
  

	10.5	Net Lease 

  

	 	(a)	Subject to clauses 7.1 and 7.2, the Operating Lease Agreement is a net lease. 

  

	 	(b)	The Lessee acknowledges and agrees that the Lessee’s obligation to pay Rent Instalments, Maintenance Instalments and other money payable under the Transaction Documents and the
Operating Lease Agreement is absolute and unconditional, and, subject to clause 11.2, the Lessee must not for any reason withhold a payment of Rent or other money payable under the Transaction Documents including, without limitation, because:

  

	 	(i)	the Goods are damaged, do not operate efficiently or at all, do not conform to specifications, or are not in the Lessee’s possession; or 

  

	 	(ii)	the Lessee claims to have a set-off, counter claim, defence or other right against the Lessor or anyone else; or 

  

	 	(iii)	the Goods are not maintained properly or maintained at all; or 

  

	 	(iv)	of a lack of title to the Goods or a defect in or the unenforceability of a Transaction Document or the Operating Lease Agreement. 

  

	10.6	Lease Rate Review 

  

	 	(a)	The Lessor and the Lessee acknowledge and agree that each Rent Instalment in respect of an Operating Lease Agreement is calculated by reference to the Lease Rate corresponding to
that Operating Lease Agreement. 

  

	 	(b)	 Subject to paragraph (f), the Lessor and the Lessee agree that if on an Anniversary Date corresponding to an Operating Lease Agreement the Reference Rate is greater

  

 19. 

	 	 
than the Reference Rate as at the immediately preceding Anniversary Date corresponding to the Operating Lease Agreement (or, if there exists no such
immediately preceding Anniversary Date, the corresponding Commencement Date), the Lessor may (but is not obliged to), by written notice to the Lessee given within 10 Business Days of the Anniversary Date, elect to increase the Lease Rate
corresponding to that Operating Lease Agreement by an amount, expressed as a percentage, which is no greater than the percentage increase in the Reference Rate for such annual period. Any notice delivered by the Lessor to the Lessee in accordance
with this paragraph (b) must: 

  

	 	(i)	state the new Lease Rate that is to apply to the Operating Lease Agreement with effect from the Anniversary Date; and 

  

	 	(ii)	state the new Default Rate that is to apply to the Operating Lease Agreement with effect from the Anniversary Date, which new Default Rate may only increase by the percentage that
the new Lease Rate increases; and 

  

	 	(iii)	state the new amount of each fixed Rent Instalment, expressed in Kina, that is to apply to each Rent Payment Date occurring subsequent to the Anniversary Date, which Rent Instalment
must be calculated on exactly the same basis as the first Rent Instalment corresponding to the Operating Lease Agreement was calculated, differing only by reference to the change in applicable Lease Rate. 

  

	 	(c)	Subject to paragraph (f), the Lessor and the Lessee agree that if on an Anniversary Date corresponding to an Operating Lease Agreement the Reference Rate is less than the Reference
Rate as at the immediately preceding Anniversary Date corresponding to the Operating Lease Agreement (or, if there exists no such immediately preceding Anniversary Date, the corresponding Commencement Date), the Lessee may (but is not obliged to),
by written notice to the Lessor given within 10 Business Days of the Anniversary Date, elect to decrease the Lease Rate corresponding to that Operating Lease Agreement by an amount, expressed as a percentage, which is no greater than the percentage
decrease in the Reference Rate for such annual period. Any notice delivered by the Lessee to the Lessor in accordance with this paragraph (c) must: 

  

	 	(i)	state the new Lease Rate that is to apply to the Operating Lease Agreement with effect from the Anniversary Date; and 

  

	 	(ii)	state the new Default Rate that is to apply to the Operating Lease Agreement with effect from the Anniversary Date, which new Default Rate may only decrease by the percentage that
the new Lease Rate decreases; and 

  

	 	(iii)	state the new amount of each fixed Rent Instalment, expressed in Kina, that is to apply to each Rent Payment Date occurring subsequent to the Anniversary Date, which Rent Instalment
must be calculated on exactly the same basis as the first Rent Instalment corresponding to the Operating Lease Agreement was calculated, differing only by reference to the change in applicable Lease Rate. 

  

 20. 

	 	(d)	Subject to paragraph (f), where the Lessor or the Lessee delivers to the other a notice of the kind referred to in paragraphs (b) or (c), as the case may be, such notice must
refer to this clause 10.6 and must not amend or purport to amend, and must not state or purport to state, any, or any new, particular, variable, term, condition or provision of or pertaining to the Operating Lease Agreement (or any other Operating
Lease Agreement), other than the new applicable “Lease Rate”, the new applicable “Default Rate” and the new applicable “Rent Instalment” as applies to the relevant Operating Lease Agreement. 

  

	 	(e)	Subject to paragraph (d) and paragraph (f), where the Lessor or the Lessee delivers to the other a notice of the kind referred to in paragraphs (b) or (c), as the case may
be, with effect from the relevant Anniversary Date and without the requirement for any further act or thing to be done by any party: 

  

	 	(i)	the Schedule corresponding to the relevant Operating Lease Agreement will be deemed to be amended in the manner set out in the notice; and 

  

	 	(ii)	all references in the corresponding Operating Lease Agreement to “Lease Rate”, “Default Rate” and “Rent Instalment” shall be read and construed as such
terms are amended in accordance with paragraph (b) or paragraph (c), as the case may be, and the preceding provisions of this paragraph (e); and 

  

	 	(iii)	all amounts under the relevant Operating Lease Agreement of or calculated by reference to “Lease Rate”, “Default Rate” and/or “Rent Instalment” shall
be amended accordingly. 

  

	 	(f)	The provisions of paragraphs (b) to (e) inclusive shall not apply, and an Operating Lease Agreement shall not be amended in the manner contemplated by paragraphs
(b) to (e) (inclusive), in circumstances where: 

  

	 	(i)	the Lessee’s then current accounting or taxation advisers issue a written advice or opinion to the Lessor and the Lessee stating that, in their opinion, an amendment to the
relevant Operating Lease Agreement in accordance with any of paragraphs (b) to (e)(inclusive) on an Anniversary Date could prejudice or otherwise adversely affect the accounting and/or taxation treatment of the relevant Operating Lease
Agreement from the perspective of the Lessee by comparison to the accounting and/or taxation treatment of the relevant Operating Lease Agreement as at the Commencement Date of the relevant Operating Lease Agreement; or 

  

	 	(ii)	an Event of Default has occurred and continues unremedied. 

  

	 	(g)	For the avoidance of doubt, the provisions of paragraphs (b) to (f)(inclusive) shall in no way act to extend the term of an Operating Lease Agreement or otherwise amend any
other term, condition or provision of an Operating Lease Agreement (or any other Operating Lease Agreement) that is not: 

  

	 	(i)	the Lease Rate, Default Rate or Rent Instalment applicable to that Operating Lease Agreement; or 

  

	 	(ii)	any other provision of the Operating Lease Agreement that is calculated by reference to Lease Rate, Default Rate or Rent Instalment. 

  

 21. 

	11.	MANNER AND APPLICATION OF PAYMENTS 

  

	11.1	Manner of payment 

  
 The Lessee must make each payment to the Lessor under the Transaction Documents and an Operating Lease Agreement by delivering an unendorsed bank cheque
to the Lessor at the place, or by direct transfer of cleared funds to the credit of the account, that the Lessor nominates at least 5 Business Days before the payment is required to be made. 
  

	11.2	Deductions or withholdings 

  

	 	(a)	Subject to paragraph (b), the Lessee must make each payment to the Lessor under the Transaction Documents and an Operating Lease Agreement without any set-off or counterclaim and
(to the extent permitted by law) free and clear of, and without deduction or withholding for or on account of, any Taxes (other than Excluded Taxes) 

  

	 	(b)	If at any time an applicable law obliges the Lessee to make a deduction or withholding in respect of Taxes from a payment to the Lessor under the Transaction Documents and/or an
Operating Lease Agreement, the Lessee: 

  

	 	(i)	must notify the Lessor of the obligation promptly after the Lessee becomes aware of it; 

  

	 	(ii)	must ensure that the deduction or withholding does not exceed the minimum amount required by law; 

  

	 	(iii)	must pay to the relevant Government Agency on time the full amount of the deduction or withholding and promptly deliver to the Lessor a copy of any receipt, certificate or other
proof of payment; and 

  

	 	(iv)	unless the Tax is an Excluded Tax, must indemnify the Lessor against the deduction or withholding by paying to the Lessor, at the time that the payment to the Lessor is due, an
additional amount that ensures that, after the deduction or withholding is made, the Lessor receives a net sum equal to the sum that it would have received if the deduction or withholding had not been made. 

  

	11.3	Currency of payments 

  
 The Lessee must pay each amount required to be paid by it under the Transaction Documents and an Operating Lease Agreement in Kina. 
  

	11.4	Application of payments 

  
 The Lessor may apply amounts paid by the Lessee in relation to the Transaction Documents and an Operating Lease Agreement towards satisfaction of the
Lessee’s obligations under the Transaction Documents and the Operating Lease Agreement in the manner the Lessor sees fit. 
  

 22. 

	12.	REPRESENTATIONS AND WARRANTIES 

  

	12.1	Representations and warranties 

  
 Each party represents and warrants to the other party (except in relation to matters disclosed to and accepted in writing by the other party) that:

  

	 	(a)	(status) it is a company under the Companies Act, 

  

	 	(b)	(power) it has full legal capacity and power to: 

  

	 	(i)	own its property and to carry on its business; and 

  

	 	(ii)	enter into the Transaction Documents and each Operating Lease Agreement and to carry out the transactions that they contemplate; 

  

	 	(c)	(corporate authority) it has taken all corporate action that is necessary or desirable to authorise its entry into the Transaction Documents and each Operating Lease
Agreement and its carrying out the transactions that they contemplate; 

  

	 	(d)	(Authorisations) it holds each Authorisation that is necessary or desirable to: 

  

	 	(i)	enable it to properly execute the Transaction Documents and to carry out the transactions that the Transaction Documents and each Operating Lease Agreement contemplate;

  

	 	(ii)	ensure that each Transaction Document and each Operating Lease Agreement is legal, valid, binding and, in the case of each Transaction Document, admissible in evidence; and

  

	 	(iii)	enable it to properly carry on its business, 

  
 and it is complying with any conditions to which any of these Authorisations is subject; 
  

	 	(e)	(documents effective) each Transaction Document and each Operating Lease Agreement constitutes its legal, valid and binding obligations, enforceable against it in accordance
with its terms (except to the extent limited by equitable principles and laws affecting creditors’ rights generally) subject to any necessary stamping or registration; 

  

	 	(f)	(no contravention) neither its execution of the Transaction Documents nor the carrying out by it of the transactions that the Transaction Documents and each Operating Lease
Agreement contemplate, does or will: 

  

	 	(i)	contravene any law to which it or any of its property is subject or any order of any Government Agency that is binding on it or any of its property; 

  

	 	(ii)	contravene any Authorisation; 

  

	 	(iii)	contravene any undertaking or instrument binding on it or any of its property; 

  

 23. 

	 	(iv)	contravene its constitution; or 

  

	 	(v)	require it to make any payment or delivery in respect of any Financial Indebtedness before it would otherwise be obliged to do so; 

  

	 	(g)	(no litigation) no litigation, arbitration, mediation, conciliation or administrative proceedings are taking place, pending, or to the knowledge of any of its officers after
due inquiry, threatened which, if adversely decided, could have a Material Adverse Effect on it; 

  

	 	(h)	(no filings or Taxes) it is not necessary or desirable, to ensure that any Transaction Document or any Operating Lease Agreement is legal, valid, binding or admissible in
evidence, that any Transaction Document or any other document be filed or registered with any Government Agency, or that any Taxes be paid (except for stamp duty); 

  

	 	(i)	(solvency) there are no reasonable grounds to suspect that an Insolvency Event has occurred in respect of it; 

  

	 	(j)	(no default) (in the case of the Lessee only) no Event of Default has occurred and is continuing; 

  

	 	(k)	(no trust or agency) it is not entering into any Transaction Document or any Operating Lease Agreement as trustee of any trust or settlement or as agent of any person;

  

	 	(1)	(no immunity) it does not have immunity from the jurisdiction of any court or from legal process. 

  

	12.2	Repetition of representations and warranties 

  
 The representations and warranties in this clause are taken to be repeated on each Rent Payment Date on the basis of the facts and circumstances as at
that date. 
  

	12.3	Reliance on representations and warranties 

  
 Each party acknowledges that the other party has executed the Transaction Documents and agreed to take part in the transactions that the Transaction
Documents and each Operating Lease Agreement contemplate in reliance on the representations and warranties that are made or repeated in this clause. 
  

	13.	UNDERTAKINGS  

  

	13.1	General undertakings 

  
 The Lessor and the Lessee must each during the Lease Term: 
  

	 	(a)	(maintain status) maintain its status as a company under the Companies Act; 

  

	 	(b)	(comply with law) comply with all applicable laws including by paying when due all Taxes for which it or any of its property is assessed or liable (except to the extent that
these are being diligently contested in good faith and by appropriate proceedings and it has made adequate reserves for them); 

  

 24. 

	 	(c)	(hold Authorisations) obtain and maintain each Authorisation that is necessary or desirable to: 

  

	 	(i)	execute the Transaction Documents and to carry out the transactions that the Transaction Documents and each Operating Lease Agreement contemplate; 

  

	 	(ii)	ensure that each Transaction Document is legal, valid, binding and admissible in evidence; or 

  

	 	(iii)	enable it to properly carry on its business, 

  
 and must comply with any conditions to which any of these Authorisations is subject; and 
  

	 	(d)	(no liquidator) not appoint a liquidator without notice to the other party. 

  

	13.2	Reports and information 

  
 Each party must during the Lease Term give to the other party: 
  

	 	(a)	(notice of default) (in the case of the Lessee only) as soon as it becomes aware that an Event of Default has occurred, full details of that Event of Default;

  

	 	(b)	(notice of litigation) full details of any litigation, arbitration, mediation, conciliation or administrative proceedings which involve a claim in relation to the Goods or
which, if adversely decided, could have a Material Adverse Effect on it, promptly upon such proceedings being commenced; and 

  

	 	(c)	(other information relating to the Goods) promptly on request (and in any event within 5 Business Days) any other information (and if requested supporting documentation)
relating to the Goods, the Transaction Documents or any Operating Lease Agreement within the possession, custody, control or actual knowledge of the party that the other party may reasonably request. 

  

	14.	INSURANCE 

  

	14.1	Lessee must maintain insurance 

  
 The Lessee must, during the Lease Term, maintain insurance against: 
  

	 	(a)	loss of or damage to the Goods caused by fire, theft, accident or the other usual risks against which a prudent owner or lessor would insure goods of their kind or type for no less
than the greater of: 

  

	 	(i)	the then replacement cost of the Goods; and 

  

	 	(ii)	the Casualty Value of the Goods, 

  
 or for such other amounts as the Lessor and the Lessee may agree; and 
  

	 	(b)	 public liability and other liability for bodily injury or damage to property arising in connection with the Goods for (except in the case of statutory insurances)
no less 

  

 25. 

	 	 
than K5,000,000 each occurrence or such other amount as may be agreed from time to time between the Lessor and the Lessee; and 

 

	 	(c)	any other risk as the Lessor may reasonably direct to protect the Lessor’s interest in the Goods. 

  

	14.2	Insurance Policies 

  
 Each insurance policy must: 
  

	 	(a)	in relation to the insurance referred to in clause 14.1(a), insure the Lessor’s interest as owner of the Goods; and 

  

	 	(b)	in relation to the insurance referred to in clause 14.1(a), name the Lessor as loss payee; and 

  

	 	(c)	to the extent not inconsistent with the express provisions of any Transaction Document, be on terms and for an amount reasonably satisfactory to the Lessor; and

  

	 	(d)	not be materially altered without the Lessor’s consent; and 

  

	 	(e)	be effected with a sound and reputable insurer licensed in Papua New Guinea. 

  

	14.3	Evidence of Insurance Coverage 

  
 The Lessee must during the Lease Term produce evidence of current insurance cover to the Lessor (including a certified copy of each policy and a
certificate of currency) whenever reasonably requested by the Lessor. 
  

	14.4	Further Insurance Undertakings 

  
 The Lessee must ensure during the Lease Term that: 
  

	 	(a)	the insurance cover is not materially reduced or cancelled without the Lessor’s prior written consent, and the Lessee must notify the Lessor if it is or could be; and

  

	 	(b)	in the event that an insurance cover is materially reduced or the policy is cancelled, it is reinstated or replaced as soon as possible; and 

  

	 	(c)	nothing reasonably within its power and control happens that could permit an insurer to decline a claim or reduce its liability for a claim or prejudice the insurance cover, and the
Lessee must notify the Lessor if anything would permit an insurer to do this. 

  

	14.5	Notification 

  
 The Lessee must notify the Lessor: 
  

	 	(a)	if an insurance claim is refused either in part or in full; or 

  

 26. 

	 	(b)	of any claim under any of the insurances required to be maintained pursuant to this clause 14. 

  

	14.6	Lessor’s rights to settle claims 

  
 If the Lessor notifies the Lessee, the Lessor may take over the Lessee’s rights to make, pursue or settle an insurance claim. The Lessor may exercise
those rights in any manner the Lessor chooses and the Lessee must comply with any directions the Lessor gives the Lessee in connection with insurance claims. The Lessee must not, without the Lessor’s consent, enforce, conduct, settle or
compromise claims under any of the insurances required to be maintained pursuant to this clause 14. 
  

	15.	DEFAULT 

  

	15.1	Events of Default 

  
 Each of these events or circumstances is an Event of Default in respect of an Operating Lease Agreement: 
  

	 	(a)	(non-payment) if the Lessee fails to pay when due any sum payable by it under the Transaction Documents or the Operating Lease Agreement, and such sum is not paid within 5
Business Days after the Lessor has notified the Lessee in writing that such sum has not been paid; 

  

	 	(b)	(other obligations) if the Lessee fails to perform or observe any of its material obligations under the Transaction Documents or the Operating Lease Agreement, requiring
performance by it (other than a failure referred to elsewhere in this clause) and such default continues for more than 30 days (or such longer period as the Lessor in its absolute discretion permits) after the Lessee receives a written notice from
the Lessor requiring that failure to be remedied provided that if such failure cannot be reasonably cured within such 30 day period, no Event of Default shall occur until the expiration of a further 90 days as long as the Lessee is diligently
attempting to cure such failure during such period; 

  

	 	(c)	(misrepresentation) if any representation, warranty or statement made or repeated by the Lessee under a Transaction Document or the Operating Lease Agreement is untrue in any
material respect when so made or repeated and the Lessee does not, within 30 days after written notice from the Lessor, remedy the circumstances that caused the representation, warranty or statement to be untrue; 

  

	 	(d)	(ceasing business) if the Lessee ceases or threatens to cease to carry on banking business without the prior written consent of the Lessor; 

  

	 	(e)	(Insolvency Event) if an Insolvency Event occurs in respect of the Lessee; 

  

	 	(f)	(Material Adverse Effect) if an event or a change occurs which has a Material Adverse Effect on the Lessee; 

  

	 	(g)	 (compulsory acquisition) if all or a material part of the property of the Lessee is compulsorily acquired by any Government Agency or the Lessee sells or
divests itself of all or a material part of its property because it is required to do so by a 

  

 27. 

	 	 
binding order from a Government Agency, and the Lessee does not receive compensation for the acquisition, sale or disposal which is acceptable to the Lessor;

  

	 	(h)	(inability to perform) if the Lessee ceases for any reason to be able lawfully to carry out all the transactions which any Transaction Document and the Operating Lease
Agreement contemplates may be carried out by it; and 

  

	 	(i)	(provisions void) if all or any material provision of any Transaction Document or the Operating Lease Agreement is or becomes void, voidable, illegal or unenforceable or of
limited force (other than because of equitable principles or laws affecting creditors’ rights generally). 

  

	15.2	Consequences of Event of Default 

  

	 	(a)	If an Event of Default has occurred and has not been remedied, the Lessor may by written notice to the Lessee terminate the leasing of the Goods pursuant to the Operating Lease
Agreement with effect from the date of the notice (Default Termination Date) whereupon the leasing of the Goods will be immediately terminated and the Lease Term will immediately end. 

  

	 	(b)	If the Lessor delivers a notice of termination of the Operating Lease Agreement in accordance with paragraph (a), the Lessee must on the Default Termination Date pay to the Lessor:

  

	 	(i)	if the Default Termination Date is also a Rent Payment Date, the Rent Instalment and the Maintenance Instalment payable on such Default Termination Date; and

  

	 	(ii)	if the Default Termination Date is not a Rent Payment Date, that portion of the Maintenance Instalment that would have been due immediately subsequent to the Default Termination
Date if the Lease Term had not ended on the Default Termination Date, as is properly attributable to the period from (and including) the Rent Payment Date occurring immediately prior to the Default Termination Date to (and excluding) the Default
Termination Date; and 

  

	 	(iii)	all unpaid Rent Instalments and Maintenance Instalments as at the Default Termination Date; and 

  

	 	(iv)	the Termination Value for the Goods calculated as at the Default Termination Date, as liquidated damages for the Lessor’s loss of bargain; and 

  

	 	(v)	any other amounts in the relevant currencies then due and owing from the Lessee to the Lessor under the Transaction Documents and the Operating Lease Agreement as a result of the
termination of the leasing of the Goods pursuant to the Operating Lease Agreement. 

  

 28. 

	15.3	Lessor Events of Default 

  
 Each of these events or circumstances is a Lessor Event of Default in respect of an Operating Lease Agreement: 
  

	 	(a)	(Lessor’s obligations) if the Lessor fails to perform or observe any of its material obligations under the Transaction Documents or the Operating Lease Agreement,
requiring performance by it (other than a failure referred to elsewhere in this clause) and such default continues for more than 30 days (or such longer period as the Lessee in its absolute discretion permits) after the Lessor receives a written
notice from the Lessee requiring that failure to be remedied provided that if such failure cannot be reasonably cured within such 30 day period, no Lessor Event of Default shall occur until the expiration of a further 90 days as long as the Lessor
is diligently attempting to cure such failure during such period; 

  

	 	(b)	(misrepresentation) if any representation, warranty or statement made or repeated by the Lessor under a Transaction Document or the Operating Lease Agreement is untrue in any
material respect when so made or repeated and the Lessor does not, within 30 days after written notice from the Lessee, remedy the circumstances that caused the representation, warranty or statement to be untrue; 

  

	 	(c)	(ceasing business) if the Lessor ceases or threatens to cease to carry on its business as it is presently being conducted without the prior written consent of the Lessee;

  

	 	(d)	(Insolvency Event) if an Insolvency Event occurs in respect of the Lessor; 

  

	 	(e)	(Material Adverse Effect) if an event or a change occurs which has a Material Adverse Effect on the Lessor; and 

  

	 	(f)	(inability to perform) if the Lessor ceases for any reason to be able lawfully to carry out all the transactions which any Transaction Document and the Operating Lease
Agreement contemplates may be carried out by it. 

  

	15.4	Consequences of Lessor Event of Default 

  

	 	(a)	If a Lessor Event of Default has occurred and has not been remedied, the Lessee may by written notice to the Lessor terminate the leasing of the Goods pursuant to the Operating
Lease Agreement with effect from the date of the notice (Lessor Default Termination Date) whereupon the leasing of the Goods will be immediately terminated and the Lease Term will immediately end. 

  

	 	(b)	If the Lessee delivers a notice of termination of the Operating Lease Agreement in accordance with paragraph (a), the Lessee must on the Lessor Default Termination Date pay to the
Lessor: 

  

	 	(i)	if the Lessor Default Termination Date is also a Rent Payment Date, the Rent Instalment and the Maintenance Instalment payable on such Lessor Default Termination Date; and

  

	 	(ii)	 if the Lessor Default Termination Date is not a Rent Payment Date, that portion of the Rent Instalment and the Maintenance Instalment that would have been due
immediately subsequent to the Lessor Default Termination 

  

 29. 

	 	 
Date if the Lease Term had not ended on the Lessor Default Termination Date, as is properly attributable to the period from (and including) the Rent Payment
Date occurring immediately prior to the Lessor Default Termination Date to (and excluding) the Lessor Default Termination Date; and 

  

	 	(iii)	all unpaid Rent Instalments and Maintenance Instalments as at the Lessor Default Termination Date; and 

  

	 	(iv)	any other amounts in the relevant currencies then due and owing from the Lessee to the Lessor under the Transaction Documents and the Operating Lease Agreement as a result of the
termination of the leasing of the Goods pursuant to the Operating Lease Agreement. 

  

	16.	RETURN OF GOODS 

  

	16.1	Redelivery of Goods 

  
 On the Termination Date, the Lessee must, unless any of the events or circumstances referred to in clause 9.2 have occurred in respect of the Goods,
return the Goods to the Lessor in good working order, and in good repair (fair wear and tear excepted) at the Redelivery Location. 
  

	16.2	Redelivery of records 

  
 The Lessee must provide to the Lessor any Technical Records in the possession, custody or control of the Lessee that relate to any Goods returned to the
Lessor in accordance with clause 16.1 at the same time as the Lessee returns the Goods to the Lessor. 
  

	16.3	Lessee’s failure to return Goods 

  

	 	(a)	Subject to paragraph (b) and clauses 5.9 and 8.3, if the Lessee fails to return any Goods or the corresponding Technical Records to the Lessor when required to in accordance
with the provisions of the Operating Lease Agreement, the Lessor will be entitled to take steps to repossess the Goods and the corresponding Technical Records and for such purposes the Lessor or any person claiming through the Lessor may enter upon
the Delivery Location or any premises belonging to or occupied or controlled by the Lessee where the Goods and/ or the Technical Records are located. 

  

	 	(b)	The Lessor agrees that when exercising its rights to repossess Goods in accordance with paragraph (a), the Lessor must take all reasonable precautions to prevent any loss or damage
to the Premises. If the Lessor or any person acting on behalf of or at the direction of the Lessor causes loss or damage to the Premises at the time of repossessing the Goods, the Lessor must, at the Lessor’s cost and expense, repair and
reinstate the Premises to the condition the Premises were in immediately prior to such loss or damage being caused. 

  

	 	(c)	 If the Lessor fails to comply with its requirements pursuant to paragraph (b), the Lessor must, as a separate and independent obligation, indemnify the Lessee, and
pay to the Lessee on demand, an amount necessary to enable the Lessee to repair 

  

 30. 

	 	 
and reinstate the Premises to the condition the Premises were in immediately prior to the loss or damage referred to in paragraph (b) being caused.

  

	16.4	Lessor dealing with Goods 

  
 At any time after any Goods and / or Technical Records are returned to the Lessor or repossessed by the Lessor in accordance with the provisions of an
Operating Lease Agreement, the Lessor may deal with the Goods and /or the Technical Records in its absolute discretion, including selling, re-leasing, re-hiring or re-renting the Goods. 
  

	17.	CHANGE OF LAW 

  

	17.1	Notice of change of law 

  
 If: 
  

	 	(a)	a law or a directive or request (whether or not having the force of law) of any Government Agency not in effect at the date of this Master Operating Lease Agreement; or

  

	 	(b)	an amendment after the date of this Master Operating Lease Agreement to, or a change after the date of this Master Operating Lease Agreement in the interpretation or application of,
a law or a directive or request (whether or not having the force of law) of a Government Agency, 

  
 makes or will make it illegal in any jurisdiction for the Lessor to fund, provide or maintain the funding of its acquisition, ownership or lease of the
Goods or otherwise perform its obligations under the Transaction Documents or the Operating Lease Agreement, the Lessor may give notice (a Change of Law Notice) to the Lessee that it considers that this has happened or that it will happen.

  

	17.2	Early termination after change of law 

  
 If the Lessor gives a Change of Law Notice, then on the next Rent Payment Date (or such earlier date as may be required by applicable law on or after the
date the Lessor gives the Change in Law Notice) (Change of Law Date): 
  

	 	(a)	the leasing of the Goods will be immediately terminated and the Lease Term will immediately end on the Change of Law Date; and 

  

	 	(b)	the Lessee must pay to the Lessor on the Change of Law Date: 

  

	 	(i)	if the Change of Law Date is a Rent Payment Date, the Rent Instalment and the Maintenance Instalment payable on the Change of Law Date; and 

  

	 	(ii)	if the Change of Law Date is not a Rent Payment Date, that portion of the Rent Instalment and the Maintenance Instalment that would have been due immediately subsequent to the
Change of Law Date if the Lease Term had not ended on the Change of Law Date, as is properly attributable to the period from (and including) the Rent Payment Date occurring immediately prior to the Change of Law Date to (and excluding) the Change of
Law Date; and 

  

 31. 

	 	(iii)	all unpaid Rent Instalments as at the Change of Law Date; and 

  

	 	(iv)	any other amounts in the relevant currencies then due and owing from the Lessee to the Lessor under the Transaction Documents and the Operating Lease Agreement as a result of the
termination of the leasing of the Goods pursuant to the Operating Lease Agreement. 

  

	18.	VOLUNTARY EARLY TERMINATION 

  

	 	(a)	The Lessee may, by prior written notice to the Lessor, elect to terminate the leasing of the Goods pursuant to the Operating Lease Agreement on any Rent Payment Date occurring more
than 90 days after the date of the Lessee’s notice (Voluntary Early Termination Date). The Lessee’s notice is effective when received by the Lessor and, once effective, is irrevocable. 

  

	 	(b)	If the Lessee delivers a notice of termination of the Operating Lease Agreement in accordance with paragraph (a): 

  

	 	(i)	the leasing of the Goods will be immediately terminated and the Lease Term will immediately end on the Voluntary Early Termination Date; and 

  

	 	(ii)	the Lessee must on the Voluntary Early Termination Date pay to the Lessor: 

  

	 	(A)	the Rent Instalment and the Maintenance Instalment payable on the Voluntary Early Termination Date; and 

  

	 	(B)	all unpaid Rent Instalments and Maintenance Instalments as at the Voluntary Early Termination Date; and 

  

	 	(C)	the Termination Value for the Goods calculated as at the Voluntary Early Termination Date, as liquidated damages for the Lessor’s loss of bargain; and 

 

	 	(D)	any other amounts in the relevant currencies then due and owing from the Lessee to the Lessor under the Transaction Documents and the Operating Lease Agreement as a result of the
termination of the leasing of the Goods pursuant to the Operating Lease Agreement. 

  

	19.	INDEMNITIES AND TAXES 

  

	19.1	Lessee Indemnity 

  
 Subject to clause 19.2, the Lessee must indemnify the Lessor against, and must pay the Lessor on demand the amount of, all losses, liabilities, expenses
(including legal expenses on a full indemnity basis) and Taxes (other than Excluded Taxes) incurred in connection with: 
  

	 	(a)	the Lessor exercising, preserving or enforcing, or attempting to exercise, preserve or enforce, rights in connection with a Transaction Document or the Operating Lease Agreement
after the occurrence of any of the events or circumstances described in clause 9.2 with respect to the Goods or after the occurrence of an Event of Default; or 

  

 32. 

	 	(b)	any indemnity the Lessor gives a Receiver of the Lessee; or 

  

	 	(c)	the Lessor doing anything the Lessee is required to do under a Transaction Document or the Operating Lease Agreement; or 

  

	 	(d)	the Lessor, without obligation on the Lessor, preventing or attempting to prevent the arrest, confiscation, seizure, taking in execution, impounding, forfeiture or detention of the
Goods or in securing the release of the Goods; or 

  

	 	(e)	the delivery, redelivery, acceptance, lease, possession, use, storage or operation of the Goods. 

  

	19.2	Exceptions 

  
 Notwithstanding any other provision set out in any Transaction Document or the Operating Lease Agreement to the contrary, the provisions of clause 19.1
will not apply to, and the Lessee will have no liability pursuant to clause 19.1 to pay and /or indemnify the Lessor in respect of any losses, liabilities, expenses (including legal expenses) and Taxes to the extent that such losses, liabilities,
expenses (including legal expenses) or Taxes are suffered, incurred or otherwise arise: 
  

	 	(a)	directly or indirectly from or as a result of the occurrence of a Lessor Event of Default; or 

  

	 	(b)	directly or indirectly from the gross negligence, wilful misconduct or fraud of the Lessor or its directors, officers, employees, contractors, attorneys or agents; or

  

	 	(c)	directly or indirectly from a failure by the Lessor to pay any amount to a third party which the Lessor is in a position to pay after the Lessor has been put in funds by the Lessee
to do so; or 

  

	 	(d)	in any jurisdiction unrelated to the transactions contemplated by the Transaction Documents and the Operating Lease Agreement; or 

  

	 	(e)	directly or indirectly in connection with any transactions unrelated to the transactions contemplated by the Transaction Documents and the Operating Lease Agreement; or

  

	 	(f)	as operating and overhead losses, liabilities, expenses and Taxes in the ordinary and usual course of business of the Lessor; or 

  

	 	(g)	as a result of the sale, transfer, assignment or other disposition (whether voluntary or involuntary) by the Lessor of the Goods or any interest in the Goods, unless such sale,
transfer, assignment or other disposition occurs following the occurrence of an Event of Default; or 

  

	 	(h)	after the expiry of the Lease Term. 

  

 33. 

	19.3	Lessor Indemnity 

  
 Subject to clause 19.4, the Lessor must indemnify the Lessee against, and must pay the Lessee on demand the amount of, all losses, liabilities, expenses
(including legal expenses on a full indemnity basis) and Taxes (other than Excluded Taxes) incurred in connection with: 
  

	 	(a)	the Lessee exercising, preserving or enforcing, or attempting to exercise, preserve or enforce, rights in connection with a Transaction Document or the Operating Lease Agreement
after the occurrence of any Lessor Event of Default; or 

  

	 	(b)	the Lessee doing anything the Lessor is required to do under a Transaction document or the Operating Lease Agreement; or 

  

	 	(c)	full legal and beneficial title to any Goods not passing from the Lessor to the Lessee free and clear of all Encumbrances and Security Interests in the circumstances contemplated in
clause 9.4(c). 

  

	19.4	Lessor Indemnity 

  
 Notwithstanding any other provision set out in any Transaction Document or the Operating Lease Agreement to the contrary, the provisions of clause 19.3
will not apply to, and the Lessor will have no liability pursuant to clause 19.3 to pay and/or indemnify the Lessee in respect of any losses, liabilities, expenses and Taxes to the extent that such losses, liabilities, expenses or Taxes are
suffered, incurred or otherwise arise: 
  

	 	(a)	directly or indirectly from or as a result of the occurrence of an Event of Default; or 

  

	 	(b)	directly or indirectly from the gross negligence, wilful misconduct or fraud of the Lessee or its directors, officers employees, contractors, attorneys or agents; or

  

	 	(c)	directly or indirectly from a failure by the Lessee to pay any amount to a third party which the Lessee is in a position to pay after the Lessee has been put in funds by the Lessor
to do so. 

  

	19.5	Goods and Services Tax 

  

	 	(a)	If GST has application to any supply made by the Lessor under or in connection with the Transaction Documents, the Lessor may, in addition to any other consideration expressed as
payable elsewhere in the Transaction Documents, recover from the Lessee, an additional amount on account of GST (plus any additional tax, penalty tax, fine or other charge in respect of that GST). The GST amount is to be calculated by multiplying
the amount or consideration payable by the Lessee for the relevant supply by the prevailing GST rate. Any additional amount recoverable from the Lessee under this clause must be calculated without any deduction or set off of any other amount and is
payable by the Lessee upon demand by the Lessor whether such demand is by means of an invoice or otherwise. 

  

	 	(b)	The Lessor will provide a tax invoice (as denned in the GST Act) to the Lessee in respect of any supply for which it recovers GST from the Lessee under clause 19.5(a).

  

 34. 

	19.6	Stamp Duty 

  
 The Lessee must indemnify the Lessor against, and must pay the Lessor on demand the amount of, all stamp duty payable on or in connection with the
Transaction Documents and the transactions contemplated by the Transaction Documents together with any related interest, penalties, fines and expenses. 
  

	20.	DEFAULT INTEREST 

  

	20.1	Default interest 

  

	 	(a)	Each party must pay interest on each amount that is not paid by it when due, from (and including) the day on which it falls due to (but excluding) the day on which it is paid in
full, at the rate calculated in accordance with paragraph (b). This interest must be paid on demand. 

  

	 	(b)	Interest on an unpaid amount accrues each day in a Default Interest Period at the Default Rate for that Default Interest Period, and is capitalised (if not paid) on the last day of
that Default Interest Period. 

  

	 	(c)	This clause does not affect a party’s obligation to pay each amount under this Master Operating Lease Agreement and the Operating Lease Agreement when it is due.

  

	20.2	Interest after judgment 

  
 If a liability of a party becomes merged in a judgment or order, the party, as an independent obligation, must pay interest on the amount of that
liability to the other party, from (and including) the date of the judgment or order until it is paid in full, at the higher of the rate that applies under the judgment or order and the rate calculated in accordance with clause 20.1. 
  

	20.3	Accrual and calculation of interest 

  
 Interest under this clause: 
  

	 	(a)	accrues daily; and 

  

	 	(b)	is calculated on the basis of the actual number of days on which interest has accrued and of a 365 day year. 

  

	21.	LEGAL WARRANTIES AND LIMITATIONS 

  

	 	(a)	To the extent permitted by law but without prejudice to any rights any party may have as against the supplier and/or manufacturer of Goods: 

  

	 	(i)	all terms which may be implied into this Master Operating Lease Agreement or the Operating Lease Agreement by any applicable law at any time do not apply to, and may not be implied
into, this Master Operating Lease Agreement or the Operating Lease Agreement except to the extent that they are included in the express terms of this Master Operating Lease Agreement and/or the Operating Lease Agreement; and

  

 35. 

	 	(ii)	without limiting the generality of sub-paragraph (i), all conditions and warranties, express or implied, whether arising by virtue of statute or otherwise, as to the condition,
specifications, quality, fitness for purpose or safety of the Goods are negatived and excluded, and the Lessor has made and makes no representation, and gives no warranty or undertaking, in relation to any of these matters. 

 

	 	(b)	The Lessee acknowledges and agrees that it alone is responsible for selecting the Goods and examining the Goods and satisfying itself about the Goods before executing and delivering
an Acceptance Certificate in relating to Goods, including satisfying itself as to: 

  

	 	(i)	the Goods compliance with their description; 

  

	 	(ii)	the Goods condition, suitability and fitness for their purposes; 

  

	 	(iii)	the Goods compliance with applicable safety laws (including occupational health and safety laws); and 

  

	 	(iv)	the validity of any supplier’s or manufacturer’s warranties in relation to the Goods. 

  

	22.	CONFIDENTIALITY 

  
 A party must not disclose any information concerning the contents of, or the transactions contemplated by, any Transaction Document or the Operating Lease
Agreement to any person who is not a party, except to the extent that: 
  

	 	(a)	(permitted by documents) the disclosure is expressly permitted by a Transaction Document; 

  

	 	(b)	(consent of other party) the other party consents to the disclosure; 

  

	 	(c)	(public domain) the information is already in the public domain, unless it entered the public domain because of a breach of confidentiality by the party;

  

	 	(d)	(employees and advisers) the disclosure is made on a confidential basis to the party’s officers, employees, agents, financiers or professional advisers, and is necessary
for the party’s business; 

  

	 	(e)	(comply with laws) the disclosure is necessary to comply with any applicable law, or an order of a court or tribunal; 

  

	 	(f)	(comply with directives) the disclosure is necessary to comply with a directive or request of any Government Agency or stock exchange (whether or not having the force of law)
so long as a responsible person in a similar position would comply; 

  

	 	(g)	(obtain Authorisations) the disclosure is necessary or desirable to obtain an Authorisation from any Government Agency or stock exchange; or 

  

	 	(h)	(discovery and litigation) the disclosure is necessary or desirable in relation to any discovery of documents, or any proceedings before a court, tribunal, other Government
Agency or stock exchange. 

  

 36. 

	23.	NOTICES 

  

	23.1	How to give a notice 

  
 Without limiting the means by which service may be effected on a company pursuant to the Companies Act, a notice, consent or other communication
under this Master Operating Lease Agreement or the Operating Lease Agreement is only effective if it is : 
  

	 	(a)	in writing, signed by or on behalf of the person giving it; 

  

	 	(b)	addressed to the person to whom it is to be given; and 

  

	 	(c)	served by being: 

  

	 	(i)	left at the address of the person; 

  

	 	(ii)	delivered or sent by pre-paid mail (by airmail, if the addressee is overseas) to that person’s postal address; or 

  

	 	(iii)	sent by fax to the fax number of that person and the machine from which it is sent produces a report that states that it was sent in full. 

  

	23.2	When a notice is given 

  
 A notice, consent or other communication that complies with this clause is regarded as given and received: 
  

	 	(a)	if any of the requirements of section 436(1) of the Companies Act apply, when those requirements are satisfied; or 

  

	 	(b)	in any other case if it is: 

  

	 	(i)	delivered to a person or left at an address: 

  

	 	(A)	by 5.00 pm (local time in the place of receipt) on a Business Day - on that day; or 

  

	 	(B)	after 5.00 pm (local time in the place of receipt) on a Business Day, or on a day that is not a Business Day - on the next Business Day; 

  

	 	(ii)	sent by mail - 5 days after it is posted; or 

  

	 	(iii)	sent by fax - on the day following the day on which it was sent. 

  

 37. 

	23.3	Address for notices 

  
 A person’s address, postal address, and fax number are those set out below, or as the person notifies the sender: 
  

			
	Datec (PNG) Limited
		
	Address:	  	Datec Building, Waigani Drive, Waigani
	 	  	(PO Box 504, Port Moresby)
		
	Fax number:	  	325 9066
		
	Attention:	  	Group General Manager
	
	Bank of South Pacific Limited
		
	Address:	  	Corner Douglas and Musgrave Streets,
	 	  	(PO Box 78), Port Moresby
		
	Fax number:	  	321 1236
		
	Attention:	  	Financial Controller

  

	24.	AMENDMENT AND ASSIGNMENT 

  

	24.1	Amendment 

  
 This Master Operating Lease Agreement and the Operating Lease Agreement can only be amended, supplemented, replaced or novated by another document signed
by the parties. 
  

	24.2	Assignment 

  
 Neither party may dispose of, declare a trust over or otherwise create an interest in its rights under a Transaction Document or the Operating Lease
Agreement without the prior written consent of the other party. 
  

	25.	GENERAL 

  

	25.1	Governing law 

  

	 	(a)	This Master Operating Lease Agreement and the Operating Lease Agreement are governed by the law in force in Papua New Guinea. 

  

	 	(b)	Each party submits to the non-exclusive jurisdiction of the courts exercising jurisdiction in Papua New Guinea for any proceedings in connection with any Transaction Document or the
Operating Lease Agreement, and waives any right it might have to claim that those courts are an inconvenient forum. 

  

	25.2	Liability for expenses 

  

	 	(a)	The Lessee must indemnify the Lessor against, and must pay the Lessor on demand the amount of, all Taxes (other than Excluded Taxes) and expenses incurred in connection with:

  

	 	(i)	the stamping and registration of each Transaction Document; and 

  

 38. 

	 	(ii)	any amendment to, or any consent, approval, waiver, release or discharge of or under, any Transaction Document or the Operating Lease Agreement requested by the Lessee,

  
 including legal expenses on a full indemnity
basis and expenses incurred in engaging consultants. 
  

	 	(b)	Each party is responsible for its own expenses (including legal expenses) incurred in connection with the negotiation, preparation and execution of each Transaction Document.

  

	 	(c)	The Lessor must indemnify the Lessee against, and must pay the Lessee on demand the amount of, all Taxes (other than Excluded Taxes) and expenses incurred in connection with any
amendment to, or any consent, approval, waiver, release or discharge of or under, any Transaction Document or the Operating Lease Agreement requested by the Lessor, including legal expenses on a full indemnity basis and expenses incurred in engaging
consultants. 

  

	25.3	Giving effect to this Master Operating Lease Agreement 

  
 Each party must do anything (including execute any document), and must ensure that its employees and agents do anything (including execute any document),
that the other party may reasonably require to give full effect to this Master Operating Lease Agreement and the Operating Lease Agreement. 
  

	25.4	Waiver of rights 

  
 A right may only be waived in writing, signed by the beneficiary of the right, and: 
  

	 	(a)	no other conduct of the beneficiary of the right (including a failure to exercise, or delay in exercising, the right) operates as a waiver of the right or otherwise prevents the
exercise of the right; 

  

	 	(b)	a waiver of a right on one or more occasions does not operate as a waiver of that right if it arises again; and 

  

	 	(c)	the exercise of a right does not prevent any further exercise of that right or of any other right. 

  

	25.5	Operation of the Transaction Documents 

  

	 	(a)	Without prejudice to clause 2.2, the Transaction Documents and the Operating Lease Agreement contain the entire agreement between the parties about their subject matter. Any
previous understanding, agreement, representation or warranty relating to that subject matter is replaced by the Transaction Documents and the Operating Lease Agreement and has no further effect. 

  

	 	(b)	Any right that a party may have under a Transaction Document and the Operating Lease Agreement is in addition to, and does not replace or limit, any other right that the party may
have. 

  

	 	(c)	 Any provision of a Transaction Document or the Operating Lease Agreement that is unenforceable or partly unenforceable is, where possible, to be severed to the

  

 39. 

	 	 
extent necessary to make the Transaction Document and/or the Operating Lease Agreement, as the case may be, enforceable, unless this would materially change
the intended effect of the Transaction Documents and/or the Operating lease Agreement. 

  

	25.6  	Operation of indemnities 

  

	 	(a)	Each indemnity in the Transaction Documents and the Operating Lease Agreement survives the expiry or termination of the Transaction Documents and the Operating Lease Agreement.

  

	 	(b)	A party may recover a payment under an indemnity in the Transaction Documents and/or the Operating Lease Agreement before it makes the payment in respect of which the indemnity is
given. 

  

	25.7  	Consents 

  
 Where a Transaction Document or the Operating Lease Agreement contemplates that a party may agree or consent to something (however it is described), the
party may: 
  

	 	(a)	agree or consent, or not agree or consent, in its absolute discretion; and 

  

	 	(b)	agree or consent subject to conditions, 

  
 unless the Transaction Document or the Operating Lease Agreement expressly contemplates otherwise. 
  

	25.8  	Statements by the Lessor

  
 A statement by an Authorised Representative of
the Lessor on any matter relating to any Transaction Document or the Operating Lease Agreement (including any amount owing by the Lessee) is conclusive absent manifest error. 
  

	25.9  	Set-off 

  
 If an Event of Default occurs, the Lessor, without notice to the Lessee, may combine any account that the Lessee holds with the Lessor with, or set off
any amount that is or may become owing by the Lessor to the Lessee against, any amount owing by the Lessee to the Lessor under any Transaction Document or the Operating Lease Agreement. 
  

	25.10 	No merger 

  
 Nothing in any Transaction Document or the Operating Lease Agreement merges with any other Security Interest, or any Guarantee, judgment or other right or
remedy, that a party may hold at any time. 
  

	25.11 	Exclusion of contrary legislation 

  
 Any legislation that adversely affects an obligation of a party, or the exercise by a party of a right or remedy, under or relating to the Transaction
Documents or the Operating Lease Agreement, is excluded to the full extent permitted by law. 
  

 40. 

	25.12 	Inconsistency with other documents 

  
 If this Master Operating Lease Agreement or the Operating Lease Agreement is inconsistent with any other document or agreement between the parties, this
Master Operating Lease Agreement or the Operating Lease Agreement, as the case may be, prevails to the extent of the inconsistency. 
  

	25.13 	No advice 

  
 Except as expressly set out in any Transaction Document to the contrary, each party acknowledges and agrees that the other party has not made any
representation or statements to it as to the accounting, legal or taxation treatment of the Transaction Documents or any Operating Lease Agreement and that it has obtained its own accounting, legal and taxation advice. 
  

	25.14 	Consideration 

  
 Each party acknowledges receipt of good and valuable consideration from the other party: 
  

	 	(a)	on 1 January 2004, for entering into the Original Master Operating Lease Agreement; and 

  

	 	(b)	on 1 January 2004, for entering into each of the Original Operating Lease Agreements; and 

  

	 	(c)	on the date of this Master Operating Lease Agreement, for entering into this Master Operating Lease Agreement. 

  

	25.15 	Counterparts 

  
 This Master Operating Lease Agreement may be executed in counterparts. 
  

	25.16 	Attorneys 

  
 Each person who executes this Master Operating Lease Agreement on behalf of a party under a power of attorney declares that he or she is not aware of any
fact or circumstance that might affect his or her authority to do so under that power of attorney. 
  

 41. 

 SCHEDULE 1 
  

FORM OF SCHEDULE 
  
 OPERATING LEASE AGREEMENT – SCHEDULE TO MASTER OPERATING LEASE 
 AGREEMENT 
  
 DATE 
  
 PARTIES 
  
 Datec (PNG) Limited (Lessor) 
  
 Bank of South Pacific Limited (Lessee) 
  
 OPERATIVE PROVISIONS 
  

	1.	Definitions 

  
 Capitalised terms and expressions used in this Schedule and not otherwise defined in this Schedule have the respective meanings given to them in the
Master Operating Lease Agreement dated [                     ] 2004 entered into between the Lessor and the Lessee (Master Operating Lease
Agreement). 
  

	2.	Operating Lease Agreement 

  

	 	The	Lessor and the Lessee acknowledge and agree that: 

  

	 	(a)	[**for good and valuable consideration received by both the Lessor and the Lessee on 1 January 2004, an Operating Lease Agreement came into existence in relation to the Goods
particularised in Annexure A to this Schedule on the terms of the Master Operating Lease Agreement and this Schedule]; 

  
 or 
  
 [**for good and valuable consideration received by both the Lessor and the Lessee on the date of this Schedule, with effect from the date of this
Schedule, an Operating Lease Agreement comes into existence in relation to the Goods particularised in Annexure A to this Schedule on the terms of the Master Operating Lease Agreement and this Schedule]; and 
  
 [**Firstpara to be deleted for Schedules relating to Goods becoming
subject to an Operating Lease Agreement only after the Master Operating Lease Agreement is executed. Second paragraph to be deleted for Schedules applying to Existing Goods and existing Operating Lease Agreements] 
  

	 	(b)	the particulars set out in Annexure A to this Schedule apply to the Operating Lease Agreement referred to in paragraph (a). 

  

 42. 

	3.	Governing law 

  
 This Schedule is governed by the law in force in Papua New Guinea. 
  

	4.	Counterparts 

  
 This Schedule may be executed in counterparts. 
  

	5.	Attorneys 

  
 Each person who executes this Schedule on behalf of a party under a power of attorney declares that he or she is not aware of any fact or circumstance
that might affect his or her authority to do so under that power of attorney. 
  

 43.Lease Agreement, dated April 1, 2005

 Exhibit 10.24 
  
 LEASE AGREEMENT 
  
 AN AGREEMENT made this 1st day of April 2005. 
  

			
	 BETWEEN:
	  	KELTON INVESTMENTS LIMITED a limited liability Company having its registered office at 51-55 Foster Road, Walu Bay, Suva, Fiji (hereinafter referred to as “the Lessor”) of
the one part
		
	 AND:
	  	DATEC FIJI LTD having their Registered Office at, CT6608 LOT 29 DP2236, 68 Gordon Street, Suva, Fiji, (hereinafter referred to as “the Lessee”) of the other
part.

  
 WHEREAS 
  

	A.	The lessor is the registered proprietor of all land and buildings contained and comprised and as described, in Schedule 1 of this agreement [“the demised premises”].

  

	B.	In this agreement and wheresoever the context admits the expression the demised premises “includes the list of furniture and chattels as is described in Schedule 2 of this
Agreement if any. It is agreed that the furniture and chattels form part of the agreement herein recorded. 

  

	C.	The Lessor has agreed to let and the lessee has agreed to take a tenancy of the demised premises for a period of three (3) years commencing from the 1st April 2005 with three (3) additional terms of three (3) years. 

  

	D.	The arrangements between the Lessor and the Lessee are set out in this agreement. 

  
 NOW IT IS AGREED as follows: 
  
 COVENANT TO LEASE 
  

	1.1	The Lessor hereby lets and the Lessee from the 1st April 2005, hereby takes on lease the demised premises for a period of three (3) years at a monthly rental of $13,750.00 plus VAT [Thirteen Thousand Seven Hundred and Fifty Dollars Plus VAT]. 

  

	1.2	Notwithstanding the provisions of Clause 1.1 hereof, but without prejudice to the term of the Lease as contained in Clause 1.1, the Lessee hereby agrees to a review of rental at the
end of every 3 years should the lease be renewed. 

  

	1.3	It is agreed that the monthly rentals shall be paid to the Lessor free of any deduction whatsoever such monthly rental to be paid in advance on the 1st business day of each and
every month to the Lessor, as the Lessor may direct from time to time. 

  

	1.4	Unless advised otherwise in writing, the Lessee shall pay monthly rentals by Cheque or in Cash to the Lessor or its authorised rent collection agent. If the rent is not paid on the
due date agreed, it shall be in default and a 10% interest will accrue to the default amount after seven (7) days. 

  

 1 

	2.	LESSEE’S COVENANTS 

  
 The Lessee hereby covenants and agrees with the Lessor as follows 
  

	 	[a]	To pay the Lessor or its authorised agent the reserved rent on the days and in the manner aforesaid free of any deductions whatsoever. 

  

	 	[b]	To pay all charges for electricity, water, and telephone rental in respect of the demised premises for the term herein created and to pay all costs of the reconnection should the
said services be disconnected through the Lessee’s act or default. 

  

	 	[c]	To keep and at the determination of this Agreement to yield up the demised premises in the same state of condition and repair as at the commencement of the lease, depreciation from
fair wear and tear weather or natural causes without the neglect of the Lessee, damage by fire, earthquake, hurricane or other act of God alone excepted. 

  

	 	[d]	To keep the garden, grounds and banks of the demised premises in a clean and tidy condition, and to keep the same including landscaping at the same positions as they are presently
positioned, if any. 

  

	 	[e]	As the arrangements herein are personal to the parties to this agreement the Lessee acknowledges and agrees not to assign underlet or part with possession of the demised premises or
any part thereof, without the consent of the lessor which will not be unreasonably withheld. 

  

	 	[f]	Not to cut or injure any of the ceiling, roof, walls partitions or doors of the demised premises nor to make any structural or other alterations or additions there to without the
written consent of the Lessor first had and obtained and to promptly replace any windows broken by the Lessee or its servants agents or invitees at the Lessee’s cost. 

  

	 	[g]	To make good reinstate and repair all damage caused or occasioned to the demised premises by the act or neglect of the lessee or any of its visitors or servants or agents.

  

	 	[h]	To permit the Lessor or its authorised agents to view and inspect the state and condition of the demised premises at all reasonable times, and on reasonable notice given before
hand, and for the purpose of enabling the lessor to carry out repairs to the demised premises, when necessary. 

  

	 	[i]	Not to do or permit to be done anything which may render any increased or extra premium payable for any insurance of the demised premises effected by the lessor or which may make
void or voidable any policy for such insurance. Such repairs to be undertaken by the lessor in such manner as to minimise impact on the lessee’s right to quiet enjoyment of the premises. 

  

	 	[j]	With regard to responsibilities of the lessee herein contained to promptly comply with all by laws regulations and requirements of the local council or other local authority in
respect of the demised premises which are not of a structural nature but which are resultant because of the manner of use of the demised premises by the lessee. 

  

 2 

	 	[k]	At its own reasonable expense replace or repair all circuit fuses, switches, electricity points, light bulbs, electrical appliances and air conditioners provided by the Lessor or
other faults in the electricity installation of the demised premises which become defective or broken on account of the Lessee’s misuse or negligence during the continuance of the tenancy and will promptly renew the washers of any leaking taps
during the said term. 

  

	 	[l]	To keep clean and clear and in good repair all taps, drains, sinks, cisterns, pipes, and appurtenances belonging to the demised premises [damage by fire, storm, earthquake or
inevitable accident and fair wear and tear without neglect or willful default of the Lessee alone excepted]. 

  

	 	[m]	To insure and keep insured all belongings of the Lessee, which are situated in or about the demised premises. 

  

	 	(n)	To compensate the Lessor for any loss of agreed rentals up to the expiration of the agreed rental period in the event of the demised premises being rendered untenantable due to the
negligence of the Lessee or its agents. 

  

	 	(o)	To reimburse the Lessor the actual cost of stamp duty paid to the Fiji Government for the registration of this Lease Agreement plus the cost of $100.00 (One Hundred Dollars) for the
preparation and stamping of this Lease. 

  

	3.	LESSOR’S COVENANTS 

  
 The lessor hereby covenants and agrees with the Lessee as follows: 
  

	 	[a]	To insure and keep insured the demised premises to its full insurable value under a reputable Brokers insurance Policy [including the Lessor’s appliances and furniture and
fittings but excluding the Lessee’s effects and also excluding all effects owned by the occupants and the invitee’s of the Lessee with respect of the demised premises] and in the case of damage or destruction of the demised premises
[unless the insurance moneys shall be found to be irrecoverable through the act or default of the Lessee] to rebuild and reinstate the demised premises. 

  

	 	[b]	To carry out all structural repairs or alterations to the demised premises which maybe necessary to comply with all by-laws, regulations or requirements of the local council, or
other Government and local Authority or as required to keep in force any insurance policy referred to in paragraph 3[a] hereof and shall promptly attend to these repairs and maintenance of the demised premises necessitated by fair wear and tear,
damage by fire, earthquake, storm, or hurricane or other inevitable accident and shall maintain the exterior structure of the demised premises including walls, doors, windows, floors, ceilings, and roof in a good and tenantable condition.

  

	 	[c]	To pay the local council or other local Authority rates assessed on the demised premises. 

  

	 	[d]	That the Lessee paying the rent hereby reserved and performing the lessee’s covenants hereinbefore contained shall and may peaceably hold and enjoy the demised premises during
the term hereby granted without any interruption or disturbance from or by the lessor or any person or persons lawfully claiming through under or in trust for it. 

  

 3 

	 	[e]	To keep in good and tenantable repair and condition all the demised premises so that the Lessee shall have the full and free use and benefit of the same and without limiting the
generality of the foregoing the Lessor will at all times maintain in good condition and proper working order the water, electricity, sewerage, and drainage installations in or serving the demised premises except in the case of defects occasioned by
the Lessee’s negligence or default. 

  

	 	[f]	During the currency of the Agreement should the demised premises be sold at anytime during the currency of this Lease the Lessor will ensure that the sale is made expressly and
unequivocally subject to this Agreement to the intent that the purchaser of the demised premises must undertake to continue with the Lessor’s obligations contained herein, and must further undertake not to prejudice the Lessee’s interests
herein. 

  

	4.	MUTUAL COVENANTS 

  
 It is mutually agreed and declared as follows 
  

	 	[a]	If the rent hereby reserved or any part thereof shall remain unpaid for fourteen [14] days after becoming payable [whether formally demanded or not] or if any other covenant on the
Lessee’s part herein contained shall not be performed or observed or if the lessee shall suffer any process by execution to be levied on the Lessee’s goods the Lessor may give not less than (14) fourteen days notice in writing to the
lessee requiring the breach to be remedied. If the breach is not remedied within that period, the Lessor may at any time thereafter re-enter upon the demised premises or any part thereof in the name of the whole and thereupon this lease shall
absolutely determine but without prejudice to the rights of the Lessor in respect of any arrears of rent or any breach of covenant. 

  

	 	[b]	If at any time during the continuance of this agreement the demised premises or any part thereof shall be destroyed or damaged from any cause whatsoever other than the act or
default of the lessee or any servant of the lessee so as to render the damaged premises unfit for occupation, either the lessor or the lessee may at any time within three months from the occurrence of such damage or destruction give to the other
such notice in writing to determine this agreement and thereupon the same and everything herein contained shall cease and be void as from the date of the occurrence of such damage or destruction but without prejudice to the rights or remedies of
either party against the other in respect of any antecedent claim or the breach of covenant or of the Lessor in respect of the rent hereby reserved until such date, provided that the right to determination on the part of the Lessor shall not arise
in the event of the destruction of or damage to the demised premises by fire or other cause in such circumstances as to give to a duty under the Lease to rebuild or reinstate the demised premises. 

  

	 	[c]	 That in the event of the demised premises being destroyed or so damaged as to render unfit for occupation and use and provided that the insurance effected by the
Lessor shall not have been vitiated or payment of the insurance money refused in whole or in part in consequence of some act or default on the part of the Lessee then the rent hereby reserved or a proportionate part thereof according to the nature
and the extent of injury sustained shall cease to be payable until the demised premises shall have been restored and reinstated and again rendered fit for occupation and use or until this agreement to lease shall have been determined under the
provisions of Clause 4[b] above. In case any 

  

 4 

	 	 
dispute shall arise as to the amount of such proportionate part of period during which such lesser or abatement of rent should be allowed, the matter shall
be referred to arbitration in accordance with the provisions as set out thereafter provided that where the demised premises are only partially destroyed or damaged but not to such an extent as to render the same untenantable the rent shall abate in
the event of the parties not agreeing the amount of abatement the same shall be determined by arbitration. 

  

	 	[d]	All dispute or differences between the Lessor and the Lessee on the operation or construction of any of the provisions of this agreement or on the rights or liabilities of either
party hereunder shall be determined by arbitration, sitting at Suva in the Republic of Fiji, which Arbitration shall be governed by the Arbitration Act of Fiji. 

  

	 	[e]	This Agreement is to be governed and construed by the Laws of the Republic of Fiji. 

  

	5.	LESSEE’S RIGHTS TO RENEW LEASE 

  
 The Lessee may, by notice in writing to the Lessor at least three (3) months before the expiration of the term hereby created, provided that at that
time there is no existing breach or non-observance of any of the covenants on the part of the Lessee hereinbefore contained, require the Lessor to Grant the Lessee a lease of the demised premises for a further similar period as from the
expiration of the term of this present Lease at a rental to be mutually agreed upon between the parties [and failing agreement, to be fixed by arbitration as provided herein] and otherwise containing the like covenants and provisos as are herein
contained, this covenant for a further renewal excluded. 
  
 Notwithstanding the above, the Lessor may, by notice in writing to the Lessee, no more than four (4) months prior to the expiration of the term hereby created request the Lessee to advise the Lessor within thirty (30) days whether
the Lessee intends to exercise the option set forth above. 
  

	6.	PAYMENT OF BOND 

  
 On execution hereof the Lessee shall as security for the due performance and observance of the covenants herein contained on its part pay to the Lessor a
“Performance Bond” of the sum equal to 1 month rent. The bond shall be retained free of interest by the Lessor until the expiry of the term hereby granted when it shall be refunded Provided nevertheless that in the event the Lessor
suffering loss by reason of default by the Lessee to observe the covenants herein on its part then the amount of such loss shall be deducted from the Bond and retained by the Lessor and the balance sum [if any] refunded to the Lessee on vacating the
demised premises. 
  

	7.	RIGHTS TO TERMINATE LEASE 

  

	 	a)	If the Lessee at the expiry date does not provide to the lessor notice in writing of its intention to terminate the lease then the lessor and the lessee agree that the lease term
will continue for a further period as under the terms and conditions of this lease, and at a new agreed rental for the renewed period. 

  

 5 

	8.	LESSEE CAN ATTACH FIXTURES ETC 

  

	 	a)	The Lessee shall have the right to attach fixtures, attach signage, make alterations and additions, erect partitions and structures in or upon the demised premises subject always to
the prior written consent of the Lessor, which shall not be unreasonably withheld. 

  

	 	b)	It is further understood that such fixtures, additions and structures so placed in or upon or attached to the demised premises shall be and remain the property of the Lessee and
must be removed therefrom prior to the expiration of the term of this Lease. 

  

	 	c)	When removing the additions and attachments as permitted under this clause the Lessee shall carry out the maintenance, repairs, reinstatement works to such part or parts as may be
necessary to be effected resulting from the Lessee’s additions, alterations, corrections and installations by the Lessee provided. However it is further understood that the Lessee shall complete the reinstatement and repair works to the
reasonable satisfaction of the Lessor’s Architects at Suva. 

  

	9.	INTERPRETATION 

  

	 	[a]	References to the parties include their respective successors in title and permitted assigns; 

  

	 	[b]	Words importing one gender includes the others; 

  

	 	[c]	Persons include corporations and vice versa; 

  

	 	[d]	Words importing the singular number or plural number shall include the plural number and singular number respectively as the case maybe. 

  

	 	[e]	The headings in this agreement are inserted for convenience only and shall not affect the interpretation of this agreement. 

  

 6 

 IN WITNESS WHEREOF these presents have been executed the day and year hereinbefore written: 
  

							
	 THE COMMON SEAL of KELTON INVESTMENTS
 LIMITED was hereunto affixed
 Pursuant to Authority of the Board
	 	 }
 }
 }
	 	 

	Director	 	

	 	 	 
				
	 Secretary
	 	

	 	 	 	 
			
	 THE COMMON SEAL of DATEC FIJI LTD
 was hereunto affixed Pursuant to Authority of the Board
	 	 }
 }
	 	 
				
	 Director
	 	

	 	 	 	 

	 Director/Secretary
	 	 	 	 	 
	 In the presence of
	 	 	 	 	 
	 	 	 	 	 	 	 

  
 SCHEDULE 1 

 
 Freehold Land & Building on CT6608 LOT 29 DP2236, 68 Gordon Street, Suva, Fiji.

  
 SCHEDULE 2 
  
 Not-Applicable 
  

 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]