queensland land registry lease/sub lease form 7 …

QUEENSLAND LAND REGISTRY LEASE/SUB LEASE FORM 7 Version 6

Land Title Act 1994, Land Act 1994 and Water Act 2000 of 48

Dealing Number OFFICE USE ONLY

Privacy Statement Collection of this information is authorised by the Land Title Act 1994 the Land Act 1994 and the Water Act 2000 and is used to maintain the publicly searchable registers in the land registry and the water register. For more information about privacy in NR&W see the department’s website.

1. Lessor

HINCHINBROOK SHIRE COUNCIL

Lodger (Name, address, E-mail & phone number)

Lodger Code

2. Lot on Plan Description Title Reference

Lot 18 on SP 169627 50513290

3. Lessee Given names Surname/Company name and number (include tenancy if more than one)

4. Interest being leased FEE SIMPLE

5. Description of premises being leased

The whole of the Land

6. Term of lease

Commencement date/event: Expiry date and/or Event: #Options:

#Insert nil if no option or insert option period (eg 3 years or 2 x 3 years)

7. Rental/Consideration

See attached schedule

8. Grant/Execution

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

contained in:- *the attached schedule; *the attached schedule and document no. ;

* document no. ; *Option in registered Lease no. has not been exercised.

* delete if not applicable

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

.............................................................................. signature .............................................................................. full name .............................................................................. qualification / / ................................................................... Witnessing Officer Execution Date Lessor’s Signature

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

9. Acceptance

The Lessee accepts the lease and acknowledges the amount payable or other considerations for the lease. .............................................................................. signature .............................................................................. full name .............................................................................. qualification / / ................................................................... Witnessing Officer Execution Date Lessee’s Signature

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

QUEENSLAND LAND REGISTRY SCHEDULE Form 20 Version 2

Land Title Act 1994, Land Act 1994 of 48 and Water Act 2000

Title Reference

50513290

INDEX

SECTION I - REFERENCE SCHEDULE ........................................................................................................... 4

SECTION II - GENERAL................................................................................................................................... 5

1. DEFINITIONS AND INTERPRETATIONS ................................................................................................................. 5

SECTION III - LESSEE'S COVENANTS ........................................................................................................... 9

2. RENT ......................................................................................................................................................................... 9 3. OUTGOINGS ........................................................................................................................................................... 10 4. GOODS AND SERVICES TAX ................................................................................................................................ 12 5. FUTURE TAXES ...................................................................................................................................................... 12 6. ELECTRICITY CHARGES ....................................................................................................................................... 13 7. OBLIGATION TO REPAIR ....................................................................................................................................... 13 8. LESSOR'S RIGHT OF ENTRY ................................................................................................................................ 14 9. REQUIREMENTS OF AUTHORITIES ..................................................................................................................... 14 10. RULES AND REGULATIONS .................................................................................................................................. 15 11. RELEASE AND INDEMNITY ................................................................................................................................... 15 12. LESSEE TO INSURE ............................................................................................................................................... 16 13. LESSEE TO PAY INCREASES IN LESSOR'S INSURANCE .................................................................................. 16 14. LESSEE NOT TO VOID INSURANCE ..................................................................................................................... 16 15. CLEANING AND OTHER SERVICES ...................................................................................................................... 16 16. LESSEE TO KEEP DEMISED PREMISES CLEAN ................................................................................................. 17 17. CARE OF SERVICES FACILITIES AND EQUIPMENT ........................................................................................... 17 18. NO OVERLOADING OR DAMAGING FLOORS ...................................................................................................... 17 19. LICENCES AND BUSINESS NAMES ...................................................................................................................... 18 20. PERMISSIBLE USE ................................................................................................................................................. 18 21. NO NOISE, DAMAGE, ANNOYING OR INJURIOUS CONDUCT ............................................................................ 18 22. LESSEE NOT TO CONDUCT AUCTIONS .............................................................................................................. 19 23. LESSEE NOT TO DEFACE WALLS ........................................................................................................................ 19 24. LESSEE NOT TO LODGE CAVEAT ........................................................................................................................ 19 25. CONDUCT OF BUSINESS ...................................................................................................................................... 19 26. LIGHT, POWER AND HEATING .............................................................................................................................. 22 27. PEST CONTROL, INFECTIOUS DISEASES AND PREPARATION OF FOOD ...................................................... 22 28. ERECTION OF SIGNS ............................................................................................................................................. 22 29. FIXTURES, FITTINGS, FLOOR COVERINGS AND PARTITIONS ......................................................................... 22 30. INFLAMMABLE SUBSTANCES .............................................................................................................................. 23 31. NOTICE OF DAMAGE ............................................................................................................................................. 23 32. SECURITY ............................................................................................................................................................... 23 33. TOWN PLANNING CONSENTS .............................................................................................................................. 23 34. KEYS ........................................................................................................................................................................ 24 35. ASSIGNMENT AND SUBLETTING ......................................................................................................................... 24 36. ALTERATIONS TO DEMISED PREMISES ............................................................................................................. 25

SECTION IV - LESSOR'S COVENANTS ........................................................................................................ 27

37. QUIET ENJOYMENT ............................................................................................................................................... 27 38. SUITABILITY OF PREMISES .................................................................................................................................. 27 39. ASSUMPTION OF RISK BY LESSEE ...................................................................................................................... 28 40. INTERRUPTION OF SERVICES ............................................................................................................................. 28 41. CONDITION OF LESSOR'S LIABILITY ................................................................................................................... 28 42. DAMAGE OR DESTRUCTION OF DEMISED PREMISES ...................................................................................... 28 43. LESSOR MAY CARRY OUT WORKS...................................................................................................................... 29 44. RIGHTS RESERVED TO LESSOR.......................................................................................................................... 29

SECTION V - MUTUAL AND OTHER COVENANTS ..................................................................................... 31

45. DEFAULT OF LESSEE ............................................................................................................................................ 31



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46. INTEREST ON OVERDUE MONIES ....................................................................................................................... 34 47. DETERMINATION OF TERM .................................................................................................................................. 35 48. POWER OF ATTORNEY ......................................................................................................................................... 36

SECTION VI - GENERAL ............................................................................................................................... 37

49. COSTS ..................................................................................................................................................................... 37 50. MISCELLANEOUS .................................................................................................................................................. 37 51. OPTION FOR RENEWAL ........................................................................................................................................ 39 52. LESSEE AS TRUSTEE ............................................................................................................................................ 40 53. SALE BY LESSOR ................................................................................................................................................... 41

SECTION VII - DEED OF GUARANTEE ........................................................................................................ 42



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SECTION I - REFERENCE SCHEDULE

ITEM 1: Commencing GST Rate: (Clause 1.1(f)

Ten Percent (10%)

ITEM 2: Term of the Lease: (Clause 1.1(pp))

ITEM 3: Lessor’s Outgoings and Lessee’s Outgoings Proportion:

(Clause 1.1(cc) & 1.1(z))

Clause 3.3 (e), (g) and (h) – 100%

ITEM 4: Annual Rental for the Term of the lease (inclusive of GST):

(Clause 2.1(a))

$ per annum

ITEM 5: Rent Review Method for Subsequent Rental Years

(including Option Periods): (Clause 2.2)

ITEM 6: Lessor’s bank account details: (Clause 2.7)

Account name:

Bank name:

Branch:

BSB number:

Account number:

ITEM 7: Public risk insurance policy amount:

(Clause 12.1(a))

$20,000,000.00

ITEM 8: Permissible use of the Demised Premises:

(Clause 20)

Public swimming pool and aquatic centre, food and drink kiosk, sale of equipment clothing related to swimming and residence

ITEM 9: Payment of Lease costs: (Clause 49.1)

ITEM 10: Lessee’s address and facsimile number and email address:

(Clause 50.1(f))

ITEM 11: Lessor’s address and facsimile number and email address:

(Clause 50.1(f))

Fax: 07 4776 3233 Email address: [email protected]

ITEM 12: Option Period: (Clause 51.3(d))

ITEM 13: Guarantor:



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SECTION II - GENERAL

1. DEFINITIONS AND INTERPRETATIONS

1.1 Definitions

These definitions apply unless they are inconsistent with the context.

(a) "Appurtenances" means all stop-cocks, hydrants, fire hoses, alarm systems or other fire prevention and extinguishing equipment, toilets, water apparatus and wash basins, washrooms, electrical fittings and apparatus, airconditioning equipment and other services contained in or about the Building or the Demised Premises as the context requires;

(b) "Building" means the premises within which the Demised Premises are located. It includes any land, carparks and improvements used with the Building or added to it;

(c) "Claims" means every claim, action, suit or demand for any kind of legal, equitable or administrative relief whatsoever and including all costs and expenses assessed on a full indemnity basis;

(d) “Cleaning Schedule” means Schedule 2 to this Lease;

(e) "Commencement Date" means the date of commencement of the Lease, being the date specified as the Commencement Date in Item 6 of the Form 7 Lease attached;

(f) "Commencing GST Rate" means:

(i) if the Rent has not previously been reviewed in accordance with clause 4, the rate of GST specified in Item 1; or

(ii) if the Rent has previously been reviewed in accordance with clause 4, the rate of GST as identified as C in the last review to have taken place pursuant to clause 4;

(g) "Common Areas" means all those parts of the Land, Building and carpark not leased or licensed to any person and designed and intended for use by the lessees of the Building and their respective employees, invitees and licensees in common with each other. They include entrances, exits, carparks, pathways, foyers, malls, corridors, toilets, lifts, escalators and stairways of the Building and any areas the Lessor may designate;

(h) "CPI Method" means the rental review method contained in clause 2.2(a);

(i) "Current Market Rent Method" means the rental review method contained in clause 2.2(b);

(j) "Default Rate" means three percent (3%) above the rate charged from time to time by the Commonwealth Bank of Australia on overdrafts of $100,000.00;

(k) "Demised Premises" means in the land described in Item 5 of the Form 7 and includes the Land and the Building;

(l) "Expiry Date" means the date of expiry of the Lease, being the date specified as the Expiry Date in Item 6 of the Form 7 Lease attached;

(m) "Fixed Increase Method" means the rental review method contained in clause 2.2(d);

(n) "Future Taxes" means all rates, taxes, charges, assessments, outgoings and impositions whatsoever (whether parliamentary, municipal or otherwise and whether assessed, charged or imposed by or under Federal or State law or by Federal, State or local authorities and whether on a capital or revenue value or any other basis and even though of a novel character);



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(o) "GST" means a tax, levy, duty, charge or deduction together with any related additional tax, interest, penalty, fine or other charge imposed by the GST Law;

(p) "GST Amount" means an amount equal to the GST determined to be payable by the Lessor under the GST Law in respect of any taxable supply made by the Lessor to the Lessee under the Lease;

(q) "GST Law" means A New Tax System (Goods & Services Tax) Act 1999;

(r) "GST Rate" means the rate of GST specified in the GST Law from time to time;

(s) "Guarantor" means the person/s specified in Item 13;

(t) "Index Number" means the Consumer Price Index (All Groups) for Brisbane published from time to time by the Australian Statistician, if the Australian Statistician updates the reference base of the Index Number, the Index Number will be appropriately adjusted so as to preserve the intended continuity of calculation by using the appropriate arithmetical factor determined by the Australian Statistician;

(u) "Item" means the relevant item set out in the Reference Schedule unless otherwise specified;

(v) "Land" means the land described in Item 2 of the Form 7 Lease attached and includes all improvements on the Land unless the context otherwise requires;

(w) "Lease" means depending on the context:

(i) this document including but not limited to the Form 7 Lease attached, the Form 20 Schedule, any sketch plan and guarantees; or

(ii) the leasehold estate arising on the execution or registration of this document; or

(iii) any other legal or equitable interest such as an agreement for lease, an equitable lease, a periodic tenancy, a tenancy at will or other tenancy arising from entry into possession of the leased premises or the payment or acceptance of money for the right to occupy and use the Demised Premises or both resulting from or relating to this document, the leasehold estate or any agreement, arrangement or negotiations relating to this document or the leasehold estate; or

(iv) if the Lessee holds over under clause 45.8 at the end of the term of the leasehold estate then the term will be extended for as long as the Lessee holds over and the expression the "Lease" will include the leasehold estate during the holding over period;

(x) "Lessee" means the Lessee described in Item 3 of the Form 7 Lease attached and where the context allows extends to and includes in the case of a corporation its successors and permitted assigns and in the case of a natural person or persons their and each of their executors, administrators, successors and permitted assigns;

(y) "Lessee’s Goods" means any contents of every description including but not limited to all plant and equipment, stock-in-trade, fixtures and fittings of the Lessee in or about the Demised Premises;

(z) "Lessee’s Outgoings Proportion" means:

(i) if a percentage is specified in Item 3, the specified percentage;

(ii) if no percentage is specified in Item 3, the percentage calculated by dividing the lettable area of the Demised Premises by the total lettable area of the Building;

(aa) "Lessee’s Works" means the works (if any) required to complete and fit-out the interior of the Demised Premises to the occupational requirements of the Lessee. Unless otherwise expressly stated in the Lease, it includes but is not limited to:



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(i) the erection of signs in addition to those provided by the Lessor;

(ii) the installation of moveable display cabinets;

(iii) the installation of show counters;

(iv) the installation of air conditioning equipment;

(v) the supply of furniture and furnishings; and

(vi) the stocking of the Demised Premises ready for business;

(bb) "Lessor" means the registered proprietor of the Land being the person described in Item 1 of the Form 7 Lease attached and where the context allows extends to and includes in the case of a corporation its successors and assigns and in the case of a natural person or persons their and each of their executors, administrators, successors and assigns;

(cc) "Lessor’s Outgoings" means those outgoings detailed in the clauses specified in Item 3. Where no outgoings are specified or where the outgoings are specified as nil or not applicable or words to that effect then the provisions of clause 3 will not apply;

(dd) "Lessor’s Works" means any works on the Building other than the Demised Premises which the Lessor reasonably thinks should be carried out and includes but is not limited to:

(i) demolishing any part of the Building;

(ii) reconstructing any part of the Building;

(iii) extending or reducing the size of the Building;

(iv) renovation or refurbishment;

(v) altering the size, location, composition and arrangement of any parts of the Building;

(vi) altering the size, location, composition and arrangement of any parts of the Common Areas; and

(vii) altering the means of access to the Building or to the Demised Premises;

(ee) "Quarter" means the period of three (3) months ending on 31 March, 30 June, 30 September and 31 December in any year;

(ff) "Reference Schedule" means the schedule in Section I of the Lease;

(gg) "Rent" means the annual rental for the first Rental Year specified in Item 4 as reviewed from time to time in accordance with the Lease and includes any GST;

(hh) "Rental Year" means each separate year of the Term and any extended term. The first Rental Year commences on the Commencement Date and each subsequent Rental Year commences on the corresponding day of each succeeding year;

(ii) “Repair Schedule” means Schedule 1 to this Lease;

(jj) “RLSSA” means the Royal Lifesaving Society of Australia;

(kk) "Specified Percentage" means the percentage/s, if any, specified in Item 5;

(ll) "Specified Percentage Method" means the rental review method contained in clause 2.2(c);



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(mm) "Statute" includes regulation, ordinance, by-law and any other delegated legislation;

(nn) "Taxable Supply" has the meaning given to that term in the GST Law and includes any supply of goods and/or services by or on behalf of the Lessor to the Lessee under the Lease or otherwise to the Lessee in respect of the Demised Premises;

(oo) "Tax Invoice" means the invoice that must be issued by the Lessor to the Lessee under the GST Law;

(pp) "Term" means the term of the Lease specified in Item 2 beginning on the Commencement Date and terminating unless sooner determined on the Expiry Date;

(qq) "Valuer" means a valuer willing to act nominated by the President for the time being of the Queensland Division of the Australian Institute of Valuers.

1.2 Interpretation

In the interpretation of this Lease:

(a) singular includes plural and vice versa;

(b) any gender includes every gender;

(c) references to a person include a corporation, association, partnership, Government Authority, or any legal entity;

(d) references to statutes include statutes amending, consolidating or replacing the statutes referred to and all regulations, orders in council, rules, by-laws and ordinances made under those statutes;

(e) headings and the table of contents (if any) are used for convenience only and are to be disregarded in interpretation;

(f) references to the Demised Premises or the Building include references to part of them;

(g) covenants implied by law (statutory or otherwise) are not negatived but will be deemed to have been modified (where so permitted) to the extent of any inconsistency with the provisions of the Lease;

(h) where any word or phrase is given a defined meaning, any other grammatical form of that word or phrase has a corresponding meaning;

(i) covenants by each party include an obligation to procure compliance by each of the party’s employees and all other persons under the control of that party;

(j) where a party consists of more than one person the covenants on the part of the party bind each two or more persons jointly and each person severally. The release of one of the persons from an obligation does not release any other person who may be jointly liable;

(k) any undertaking by a party not to do any act or thing is taken to include an undertaking not to permit or suffer the doing of the act or thing;

(l) where under this Lease the day on or by which any act or thing is to be done is not a Business Day that act or thing must be done on the next Business Day following the due day;

(m) all annexures, schedules and other attachments (if any) form part of this Lease;

(n) reference to "writing" include all means of reproducing words in a tangible, permanently visible form in the English language;

(o) reference to anything after the words "including" or "includes" does not limit what else may be included.



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SECTION III - LESSEE'S COVENANTS

2. RENT

2.1 Annual Rent

(a) For the term of the Lease the Lessee must pay to the Lessor the Rent.

(b) The Rent is inclusive of GST and the Lessor must provide to the Lessee a tax invoice containing the particulars required by the GST Law prior to or contemporaneously with payment of Rent by the Lessee to the Lessor.

2.2 Rent Review Methods

All rent reviews under the Lease will be conducted in accordance with the following methods:

(a) CPI Method

(i) The following formula will be used in the application of the CPI Method:

A = B x CPI(2) CPI(1) where: A = the Rent to be determined; B = the Rent for the previous Rental Year; CPI(1) = the Index Number for the Quarter immediately before commencement of the

previous Rental Year; CPI(2) = the Index Number for the Quarter immediately before the commencement of the

Rental Year in respect of which the Rent is to be determined.

(ii) If the Consumer Price Index (All Groups for Brisbane) is discontinued, modified, publication of it ceases or the basis of calculating it is substantially changed at any time during the Term, then the rent review method to be applied will be the Current Market Rent Method.

(b) Current Market Rent Method

(i) Subject to clause 2.2(b)(ii), in the application of the Current Market Rent Method the Rent will be determined by a Valuer upon the requirement for such determination by either the Lessor or the Lessee. The Valuer must make the determination as an expert and not as an arbitrator. The costs of the Valuer appointed pursuant to this clause 2.2(b)(i) will be borne by the Lessor and the Lessee in equal shares.

(ii) The provisions of clause 2.2(b)(i) will not apply if the Lease is governed by the Retail Shop Leases Act 1994, in which event the Rent will be determined in accordance with the provisions of the Retail Shop Leases Act 1994 applicable to current market rent reviews.

(c) Specified Percentage Method

The following formula will be used in the application of the Specified Percentage Method:

A = (B x C) + B



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where:

A = the Rent to be determined;

B = the Rent for the previous Rental Year;

C = the Specified Percentage.

(d) Fixed Increase Method

Where the Rent is to be increased by a fixed amount then the Rent for each subsequent Rental Year will be specified in Item 5.

2.3 No Reduction

The Rent payable in any Rental Year shall never be less than the Rent payable for the previous Rental Year.

2.4 Payment of Rent

The Rent is payable monthly in advance by calendar monthly instalments, each being equal to one twelfth of the Rent. The first of those instalments is to be paid on the Commencement Date and then on the first day of each and every month in advance.

2.5 Broken Periods

If the Term does not commence on the first day of a month or expire on the last day of a month then the Lessee will pay to the Lessor in respect of the broken periods before the first complete month of the Term and after the last complete month of the Term on the first day of each of those broken periods, a proportionate part of the monthly instalments payable on account of the Rent.

2.6 Rent Not Known

If the amount of Rent is not known at a time when payment of Rent is due to be paid then the Lessee must on or before the due date for payment of that Rent, pay to the Lessor the same amount as was payable for Rent for the last preceding calendar month in which the amount of Rent was known. The Lessor or the Lessee as the case warrants must then make and pay any necessary adjustment to the party entitled within fourteen (14) days after the Rent becomes known.

2.7 Where Payment Made

The Lessee must pay the Rent and any other amounts payable by the Lessee to the Lessor under the Lease (without any deduction or right of set-off) and, unless otherwise agreed, each monthly instalment is to be paid from the Lessee’s bank account by direct debit authority to the Lessor’s nominated bank account as detailed in Item 6.

3. OUTGOINGS

3.1 The Lessee must pay to the Lessor the Lessee's Outgoings Proportion of the Lessor's Outgoings. Any moneys so payable by the Lessee must be paid within fourteen (14) days of being notified by the Lessor of the amount payable.



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3.2 If this Lease comes to an end before the end of any period which is the subject of the assessment the Lessee must pay that proportion of the Lessor’s Outgoings which the period of currency of the Lease bears to the period of the assessment.

3.3 For the purposes of clause 1.1(cc) and Item 3 of the Reference Schedule, the following are the clauses specifying various outgoings of which some or all may be listed in Item 3 of the Reference Schedule to constitute the Lessor’s Outgoings:

(a) Rates and Taxes

all rates, taxes, assessments, levies, duties, impositions and charges payable by the Lessor in respect of the Land, the Building and/or the Demised Premises (as applicable) or in respect of the Lessor’s ownership or occupancy excluding land tax, income tax and capital gains tax;

(b) Rates and Taxes Increases

all increases in rates, taxes, assessments, levies, duties, impositions and charges payable by the Lessor in respect of the Land, the Building and/or the Demised Premises (as applicable) or in respect of the Lessor’s ownership or occupancy excluding land tax, income tax and capital gains tax, over and above those levied, charged or imposed for the half year ending immediately prior to the Commencement Date, or which are levied, charged or imposed as a result of the Lessee’s changed use of the Demised Premises;

(c) Insurance Premiums

all insurance premiums and other costs of any insurance directly or indirectly relating to the Land, the Building and/or the Demised Premises or the fixtures and fittings of the Lessor therein which the Lessor reasonably thinks should be taken out;

(d) Insurance Premium Increases

all increases in insurance premiums and other costs of any insurance directly or indirectly relating to the Land, the Building and/or the Demised Premises or the fixtures and fittings of the Lessor therein which the Lessor reasonably thinks should be taken out over and above those charged for the year ending immediately prior to the Commencement Date;

(e) Trade Waste Charges

all costs of garbage and trade waste disposal from the Land;

(f) Excess Water Charges

all excess water charges in respect of the Land;

(g) Utility Charges

subject to clause 6, all charges assessed by the relevant authority for utility services furnished to or used upon the Demised Premises or charged, levied or assessed in respect of the Demised Premises or the business carried on in the Demised premises by the Lessee;

(h) Business Costs

all licence fees, outgoings, levies or assessments in respect of the business carried on by the Lessee in the Demised Premises.

3.4 To avoid doubt, the Lessor and Lessee agree that the Lessor will pay for the cost of all water consumed on the Land, and that those costs will not constitute Lessor’s Outgoings recoverable from the Lessee.



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4. GOODS AND SERVICES TAX

4.1 Change in GST Rate

If the GST Rate increases or decreases from the Commencing GST Rate then the Rent will be reviewed in accordance with the following formula:

A = E + (C x E) where: A = the Rent to be determined; B = the Rent immediately prior to the increase in the GST Rate; C = the GST Rate; D = the Commencing GST Rate; E = the GST exclusive Rent calculated as follows: E = B

(D/100) + 1 4.2 Rent Adjustment

Until such time as the Rent has been determined in accordance with this clause 4, the Lessee shall continue to pay monthly instalments of Rent at the rate payable immediately prior to the increase or decrease in the GST Rate, as the case may be. An adjustment for any increase or decrease shall be made by the Lessor within fourteen (14) days of the determination of the Rent in accordance with this clause 4.

4.3 Lessor’s Expenses and other Outgoings

If pursuant to the Lease the Lessee is required to pay for, including by way of reimbursement or contribution, any expense, loss or outgoing of the Lessor ("Reimbursable Expense") the amount required to be paid is the sum of:

(a) the amount of the Reimbursable Expense net of input tax credits (if any) to which the Lessor is entitled in respect of the Reimbursable Expense ("Net Amount"); and

(b) if the Lessor’s entitlement to payment is by virtue of a taxable supply by the Lessor, any GST payable for that supply,

so that after the Lessor pays the GST liability, it retains the Net Amount.

5. FUTURE TAXES

The Lessee must pay and discharge without exception all Future Taxes which are not payable by the Lessor at the Commencement Date, but which may at any time during the Term be assessed, charged or imposed upon or in respect of:

(a) the Demised Premises; or

(b) the Lessor’s use of the Demised Premises; or

(c) the supply of the Demised Premises to the Lessee under the Lease.



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6. ELECTRICITY CHARGES

6.1 The Lessor will ensure the Demised Premises are separately metered for the supply of all electricity to the Demised Premises.

6.2 The Lessee will pay all accounts for the supply of all separately metered electricity to the Demised Premises through the following meters:

(a) the meter for the supply of electricity to the dwelling located on the Demised Premises; and

(b) the meter for the supply of electricity to the kiosk,

on their due date. To remove doubt the Lessor will pay all accounts from the meter for the supply of electricity to the pool filtration equipment, pool lighting, heating equipment for the 25 meter pool, the water playground filtration equipment, amenities building and hot water systems.

6.3 If the Lessor is assessed for any electricity supplied to the Demised Premises then the Lessee will pay any amount owing to the Lessor for that electricity within fourteen (14) days of being billed for that electricity by the Lessor.

6.4 Any bills raised by the Lessor to the Lessee in accordance with clause 6.3 must be in accordance with the Schedule of Tariffs issued by the appropriate electric authority.

7. OBLIGATION TO REPAIR

7.1 General Obligation

During the Lease at the Lessee's own expense the Lessee must keep, repair and maintain the Demised Premises in good and substantial repair having regard to the condition of the Demised Premises at the Commencement Date but need not carry out:

(a) any structural works unless caused by negligence or misconduct on the part of the Lessee or those for whom the Lessee is responsible;

(b) repairs due to fair wear and tear, unless expressly required to do so in the Repair Schedule; or

(c) repairs due to some natural disaster or other serious event which is beyond the reasonable control of the Lessee; or

(d) repairs which are expressed to be the Lessor’s responsibility in the Repair Schedule.

7.2 Limitation for Fair Wear and Tear

The exception in respect of fair wear and tear contained in clause 7.1(b) will apply only if the Lessee has taken all reasonable precautions to ensure that any damage, defect or dilapidation which may be attributable to fair wear and tear does not cause or contribute to any further damage to the Demised Premises.

7.3 More Specific Obligations

Without affecting the generality of the Lessee's obligation to repair contained in clause 7.1, the Lessee must at the Lessee's own expense carry out the maintenance and repairs and effect the replacements expressed to be the Lessee’s responsibility in the Repair Schedule.

7.4 Closure for Maintenance

(a) The Lessor may from time to time direct the Lessee to close the Demised Premises to the public in accordance with this clause to allow the Lessor to carry out maintenance or repairs required to be carried out by the Lessor. The Lessee must comply with the Lessor’s direction.



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(b) The Lessor and the Lessee must first confer with a view to reaching agreement on the time and period of the closure.

8. LESSOR'S RIGHT OF ENTRY

8.1 The Lessor may:

(a) at any reasonable time;

(b) on giving reasonable written notice; and

(c) being accompanied by a person appointed by the Lessee if required by the Lessee;

enter the Demised Premises for any of the following reasons:

(d) to inspect the state of repair of the Demised Premises at intervals of not less than three (3) months;

(e) to re-inspect where after an inspection pursuant to clause 8.1(d) a notice has been served on the Lessee by the Lessor requiring the Lessee to carry out any work of repair; or

(f) to carry out repairs, maintenance or alteration of the Demised Premises if the notice given to the Lessee has specified the nature of the work to be carried out and the work:

(i) in the case of repairs for which the Lessee is liable and which have not been carried out in accordance with a notice given to the Lessee under clause 8.1(e);

(ii) is required by law to be carried out to the Demised Premises; or

(iii) is required to be carried out for the safety of the Demised Premises.

8.2 The Lessor may in an emergency:

(a) at any time;

(b) without notice to the Lessee; and

(c) unaccompanied;

enter the Demised Premises for the following reasons:

(d) to ascertain the cause of the emergency; or

(e) to remedy the emergency.

8.3 If the Lessor has entered the Demised Premises according to clause 8.2, the Lessor will promptly inform the Lessee in writing of the entry.

8.4 In exercising the Lessor's rights of entry under the Lease, the Lessor will use its best endeavours not to cause undue interference to the occupation, use or enjoyment of the Demised Premises by the Lessee.

9. REQUIREMENTS OF AUTHORITIES

9.1 The Lessee will comply with all Statutes dealing with the Demised Premises and the Lessee's use of the Demised Premises that are binding on the Lessee (including, without limitation, the Work Health and Safety Act 2011 (Qld) and the Work Health and Safety Regulation 2011 (Qld)) provided that if the Statutes require:

(a) structural alteration of the Demised Premises;



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(b) structural additions to the Demised Premises; or

(c) the installation of equipment in the Demised Premises,

the Lessee must not effect the alteration, addition or installation without first obtaining the Lessor's consent.

9.2 For the purposes of the application of local laws to the Demised Premises, the Lessee is taken to be the manager or operator of the facility (however that person is described) and must comply with the obligations imposed on such a person by the local laws.

10. RULES AND REGULATIONS

10.1 The Lessee will observe and obey all rules and regulations made by the Lessor provided those rules are:

(a) reasonably necessary for the safety, care and cleanliness of the Demised Premises;

(b) for the preservation of good order in the Demised Premises; or

(c) for the comfort of the occupants of the Demised Premises;

and they:

(d) are consistent with the Lessee's rights, powers and privileges under the Lease; and

(e) will not interfere with the permitted use of the Demised Premises in accordance with clause 20 of the Lease.

10.2 The Lessor may amend the rules and regulations provided by the Lessor provided that any amendment complies with clause 10.1 and:

(a) the Lessor gives the Lessee at least thirty (30) days notice in writing before the proposed amendments come into force and such notice gives the Lessee an opportunity to comment on the proposed amendment;

(b) the Lessor has considered the Lessee's comments on the proposed amendments in determining the final form of the amendments; and

(c) an amendment does not vary a covenant of the Lease.

11. RELEASE AND INDEMNITY

11.1 The Lessee releases the Lessor from and indemnifies the Lessor against all Claims arising in any way out of or in connection with:

(a) the presence of any person on the Demised Premises;

(b) the use or occupation of the Demised Premises, the Services and the Appurtenances;

(c) overflow or leakage of water in or from the Demised Premises; and

(d) any breach of this Lease by the Lessee.

11.2 For the purposes of this clause:

(a) reference to "Lessor" includes the Lessor’s agents and if the Lessor is not a natural person, the directors and officers of the Lessor; and



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(b) reference to "Lessee" includes the Lessee’s licensees and invitees and any other person for whose acts or omissions the Lessee is responsible.

11.3 To the extent that the provisions of clause 11.1 constitute a promise for the benefit of a third party within the meaning of the Property Law Act 1974:

(a) the Lessor is taken to be the agent of each beneficiary of the promise; and

(b) execution of this Lease by the Lessor is taken to constitute acceptance of the promise by each beneficiary.

11.4 The indemnity in clause 11.1 does not apply to the extent that a Claim is caused by the negligence of the Lessor others for whom the Lessor is responsible at law.

12. LESSEE TO INSURE

12.1 The Lessee must take out and keep current at its own expense the following insurance policies in relation to the Demised Premises:

(a) a public risk policy which provides for a minimum cover for each accident claim or event of an amount specified in Item 7. The cover provided under this policy must not be contributory with any policy taken out by the Lessor;

(b) a plate glass policy if there is any plate glass in the Demised Premises;

(c) a policy covering fixtures, fittings, accessories, Appurtenances and stock contained in or about the Demised Premises or associated with the business conducted by the Lessee in the Demised Premises. The policy must provide cover for the full insurable value of these things against loss or damage resulting from fire and other risks including but not limited to water, storm, flood and rain water damage.

12.2 The policies referred to in clause 12.1 must be in the name of the Lessee, must note the Lessor as an interested party, and must be with an insurance company approved by the Lessor for their respective rights and interests.

13. LESSEE TO PAY INCREASES IN LESSOR'S INSURANCE

If any increased insurance premiums or charges are incurred by the Lessor during the Term as a result of any conduct on the part of the Lessee or the persons for whom the Lessee is responsible, the Lessee must pay that extra amount.

14. LESSEE NOT TO VOID INSURANCE

The Lessee must not do anything or allow anything to be done which might result in any insurances on or relating to the Demised Premises or the Building becoming void or voidable or which might increase the premium on any policy.

15. CLEANING AND OTHER SERVICES

15.1 Cleaning Services

If the local or other authority provides cleaning or refuse services to the Demised Premises at the request of either the Lessee or the Lessor, or at the direction of any officer of any local or other authority, then the Lessee will pay the costs of those services:

(a) to the authority providing those services by the due date for payment if assessed directly against the Lessee; or



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(b) to the Lessor within fourteen (14) days of the Lessor billing the Lessee for those costs if assessed against the Lessor.

15.2 Special Services

The Lessee will pay the Lessor upon demand the amount of any additional or unusual costs or charges incurred by the Lessor at the request of the Lessee for:

(a) providing any special, additional or unusual services for the Lessee; or

(b) having any alterations, repairs or maintenance to the Demised Premises or any services in the Demised Premises (including Appurtenances) effected outside of the normal working hours of the tradesman concerned.

16. LESSEE TO KEEP DEMISED PREMISES CLEAN

16.1 The Lessee will keep the Demised Premises and the exterior facade and the exterior and interior of all windows, doors and other glass and other fixtures in a neat and clean condition.

16.2 The Lessee will keep the footpath in front of the Demised Premises clean at all times.

16.3 The Lessee must not accumulate any rubbish in the Demised Premises or in the Building unless confined in suitable containers which are located so as not to be visible to members of the public whilst they are in the Building.

16.4 Without limiting the Lessee’s obligations in clause 16.1, the Lessee must comply with the specific obligations set out in the Cleaning Schedule.

16.5 The Lessee will at its cost keep and maintain the lawns and/or gardens forming part of the Demised Premises, and those situated at the Fraser Street footpath and frontage in a clean, tidy and healthy condition and will regularly remove from the Demised Premises and any surrounding fences, all overgrowth, weeds and rubbish. If in the Lessor’s opinion the Lessee has failed to observe this obligation, the Lessor shall be at liberty to retain the services of a contractor to carry out the Lessee’s obligations herein at the cost of the Lessee payable upon demand by the Lessor.

17. CARE OF SERVICES FACILITIES AND EQUIPMENT

17.1 The Lessee will not use or allow the use of the pipes, drains, Appurtenances, fittings and accessories in the Demised Premises or the Building for any purpose other than those for which they were constructed or installed.

17.2 The Lessee will not throw or place in any of the services and facilities mentioned in clause 17.1 any sweepings, rubbish or other unsuitable substances.

17.3 The Lessee is to pay to the Lessor on demand the cost of repairing any damage to the services and facilities mentioned in clause 17.1 resulting from any misuse by the Lessee or those for whom the Lessee is responsible.

17.4 The Lessee must not interfere with or attempt to control any part of the fire alarm, sprinkler systems, airconditioning equipment or any other machinery or equipment of the Lessor installed in the Demised Premises or Building.

18. NO OVERLOADING OR DAMAGING FLOORS

18.1 The Lessee must not overload the floors of the Demised Premises or allow them to be overloaded by placing on them heavy articles whose individual or combined weights exceed the limits permitted by the design and construction of the Demised Premises.



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18.2 The Lessor may prescribe the weight and position of safes and other heavy articles or goods in the Demised Premises.

18.3 The Lessee must not use any furniture, furnishings, plant or equipment mounted on roll casters or similar equipment which may cause damage to the floor of the Demised Premises.

19. LICENCES AND BUSINESS NAMES

The Lessee must take out and keep current all licences and permits required to carry on the business conducted in the Demised Premises.

20. PERMISSIBLE USE

The Lessee will not use the Demised Premises for any purpose other than the permissible use specified in Item 8, or any other purpose to which the Lessor has first given its consent in writing.

21. NO NOISE, DAMAGE, ANNOYING OR INJURIOUS CONDUCT

21.1 The Lessee must not cause or allow any noise or other nuisance disturbance or annoyance to be made on or to emanate from the Demised Premises.

21.2 The Lessee must not carry on or permit to be carried on in the Demised Premises any annoying, noxious, offensive or illegal business, occupation or practice.

21.3 The carrying on of the business specifically permitted by the Lessor under clause 20 in a regular orderly and lawful manner will be considered not to breach the provisions of clauses 21.1 and 21.2.

21.4 (a) The Lessee’s right to determine who may enter and be upon those parts of the Demised Premises usually open to members of the public is subject to this clause.

(b) Subject to clause 21.4(g), the Lessee must not remove a person from or deny a person entry to any part of the Demised Premises usually open to members of the public, without first obtaining the Lessor’s approval. The Lessor may impose conditions on its approval and the Lessee must comply with any conditions imposed by the Lessor.

(c) If the Lessor does not give approval or the Lessee does not agree with the conditions imposed by the Lessor on its approval, the Lessee may refer the matter to a person (“Independent Expert”) for determination under this clause.

(d) The Independent Expert:

(i) must be a solicitor of at least ten (10) years standing agreed to by the Lessor and the Lessee or failing agreement, appointed by the president for the time being of the Queensland Law Society;

(ii) acts as an expert and not as an arbitrator;

(iii) is required to determine whether or not it is reasonable, having regard to all the circumstances, for the Lessee to exercise the rights proposed to be exercised by the Lessee;

(iv) may impose conditions on the exercise of any rights by the Lessee under this clause.

(e) The Independent Expert’s determination is final and binding on the parties.

(f) The costs of the Independent Expert must be shared equally by the Lessor and the Lessee.



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(g) The Lessee is not required to comply with this clause if the immediate removal of or immediate denial of entry to a person is necessary to protect the safety or property of any person.

22. LESSEE NOT TO CONDUCT AUCTIONS

The Lessee will not conduct or allow any auction sale, fire sale, warehouse sale or liquidation sale in the Demised Premises without the written consent of the Lessor.

23. LESSEE NOT TO DEFACE WALLS

The Lessee must not mark, paint, drill, write on or in any way deface any wall, ceiling, floor, wood, stone or ironwork of the Demised Premises or the Building unless permitted by the Lessor.

24. LESSEE NOT TO LODGE CAVEAT

The Lessee must not lodge any caveat on the title of the Land for the purpose of recording the Lessee’s interest in the Lease.

25. CONDUCT OF BUSINESS

25.1 The Lessee will at all times operate the permitted business in and from the Demised Premises during normal trading hours in a proper orderly and businesslike manner.

25.2 Without limiting clause 25.1, the Lessee must keep the swimming pools, associated parts of the Demised Premises and the kiosk open for public use for a minimum period of ten (10) hours each day throughout September to April and six (6) hours per day throughout May to August, unless otherwise agreed to by Council, except:

(a) during any period when, with the Lessor’s approval, the Demised Premises are used for a carnival, special function or club assembly; and

(b) on Christmas Day, Labour Day and Good Friday.

25.3 The Lessee will ensure the Lessee's business is staffed and, where appropriate, stocked adequately and the Lessee must not allow the Demised Premises to remain vacant nor can the Lessee stop conducting its business from the Demised Premises. The Lessee may employ a person to manage its day to day obligations in conducting its business (“pool manager”).

25.4 Nothing contained in clauses 25.1 or 25.3 requires the Demised Premises to be open for business in excess of any trading hours prescribed by law.

25.5 The Lessee must, in the operation and supervision of the swimming pools which form part of the Demised Premises, comply at all times with the RLSSA “Guidelines for Safe Pool Operation”.

25.6 Without limiting clause 25.5, the Lessee must:

(a) participate in the Lessor’s promotion of RLSSA “Water Watch” program and campaign during the Term;

(b) provide Learn to Swim programs during the Term;

(c) not permit a child under 10 years of age to enter the Demised Premises unless the child is under the supervision of a person 16 years of age or older;

(d) erect clearly displayed signage at the Demised Premises, and ensure that the signage clearly displayed at all times during the Term, which reads as follows:



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“This pool is operating under low patronage guidelines. There is no roving lifeguard on duty. For emergency assistance see a staff member.”

25.7 The Lessee must ensure that an Approved Person is in attendance at the Demised Premises, and supervises the swimming pools which form part of the Demised Premises, at all times when they are open for use by the public or for the holding of a carnival, special function or club assembly.

25.8 For the purposes of clause 25.7, “Approved Person” means a person who:

(a) holds a current RLSSA Pool Lifeguard Award qualification or a current RLSSA Bronze Medallion qualification;

(b) is a competent swimmer;

(c) is trained in first aid, including cardio-pulmonary resuscitation;

(d) has a good working knowledge of the equipment associated with the operations conducted on the Demised Premises and its use;

(e) has a child safety suitability “blue card” issued to the person pursuant to the Working with Children (Risk Management and Screening) Act 2000 (Qld); and

(f) is capable of properly supervising the use and operation of the Demised Premises.

25.9 The Lessee must ensure that all Approved Persons who are, at any time, in attendance at the Demised Premises, undertake all further training recommended by the RLSSA from time to time.

25.10 The Lessor may require the Lessee to replace an Approved Person if the Lessor determines, in its absolute discretion, that the person does not adequately meet the criteria set out in clause 25.8.

25.11 (a) The Lessee must from time to time determine the charges to be made for admission to or use of those parts of the Demised Premises usually made available for public use.

(b) The Lessee must display a notice setting out the charges determined under this clause and the period of time for which those charges are to apply.

25.12 (a) The Lessor may from time to time require the Lessee to make any part of the Demised Premises usually made available for public use (other than the kiosk), available for the holding of a Designated Event or a carnival, special event, club assembly or the like by some person or body nominated by the Lessor.

(b) For the purposes of this clause, “Designated Event” means a special purpose approved by the Lessor for a duration not exceeding two (2) days in each Rental Year, and may include the occasion of visits to Ingham by leading swimmers.

(c) The Lessee must comply with the Lessor’s requirement under this clause. For a Designated Event, the charge payable to the Lessee is to be determined by the Lessor. In all other cases, the charge is to be determined by the Lessee but the Lessee is not entitled to charge an amount greater than the charges determined under clause 25.11.

25.13 Subject to clauses 25.14 and 25.15, the Lessee has the sole and exclusive right to provide services by way of swimming coaching or teaching (“Swimming Instruction”) at the Demised Premises. The Lessee must provide such swimming coaching or teaching programs during the Term either direct by the Lessee itself, or by way of sub-lease or sub-contract arrangement to the satisfaction of the Lessor.

25.14 (a) Any swimming club registered with the Queensland Amateur Swimming Association based in Hinchinbrook Shire may from time to time appoint up to three (3) suitably qualified persons who may provide Swimming Instruction at the Demised Premises in accordance with this clause.



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(b) Swimming Instruction may only be provided by persons and at times agreed between the Lessee and the swimming club or failing agreement by persons and at times to be determined from time to time by the Lessor. The Lessee must comply with any determination by the Lessor.

25.15 Nothing in this Lease prevents a parent or guardian from giving Swimming Instruction to his or her child.

25.16 (a) The Lessor will provide such life saving equipment as the Lessor considers appropriate for use at the Demised Premises.

(b) The Lessee must ensure that the life saving equipment is:

(i) at all times maintained in a serviceable condition; and

(ii) readily available where and when it may be required.

25.17 The Lessee must:

(a) properly and accurately maintain such records of the use of the Demised Premises as the Lessor may from time to time require; and

(b) produce those records to the Lessor at such times as the Lessor may reasonable require; and

(c) permit the Lessor to make copies of them.

25.18 The Lessee must not permit:

(a) any person to have access to or egress from the Demised Premises other than via the openings designed for that purpose;

(b) any person to bring any bicycle or animal on to the Demised Premises, or any animal to remain upon the Demised Premises; or

(c) access to the Demised Premises by vehicle other than to the extent reasonably necessary for the proper operation of the Lessee’s business from the Demised Premises.

25.19 The Lessee must, during the Term:

(a) submit written monthly activity reports to the Lessor no later than close of business on the third day of each month which addresses the following:

(i) records of patronage including numbers of adult and child swimmers, number of spectators, number of season passes issued and numbers of schools, groups and carnivals hosted;

(ii) the number of classes held in the preceding month, including learn to swim, aerobics, coaching sessions and the like; and

(iii) other matters as requested by the Lessor from time to time;

(b) within thirty (30) days after the end of each year of the Term, provide a written report to the Lessor which specifies the program of events and activities that the Lessee proposes to offer at the Demised Premises for the next year of the Term.

25.20 The Lessor will provide the Lessee with training in the proper operation of the pool entry lift located at the 25 metre pool.



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26. LIGHT, POWER AND HEATING

26.1 The Lessee will not use any form of light, power or heat other than electric current or gas supplied through meters.

26.2 Clause 26.1 does not prevent the Lessee from using auxiliary power or lighting (other than an exposed flame) during any period of power failure or power restrictions.

26.3 The Lessee must not use any apparatus which radiates heat (other than apparatus for the heating of food and beverages for staff meal requirements) without first obtaining the written consent of the Lessor.

26.4 The Lessor is entitled to specify in what positions the heating apparatus is to be placed and what conditions attach to the use of the heating apparatus and the Lessor may withdraw consent to the use of heating apparatus at any time.

26.5 The Lessee must not without first obtaining the written consent of the Lessor install any electrical equipment in the Demised Premises that overloads the cables, switchboards or sub-boards through which electricity is conveyed to the Demised Premises.

26.6 If the Lessor grants consent pursuant to clause 26.5 then any alterations which may be necessary to comply with the Lessor's insurer's requirements and any applicable Statutes in particular those dealing with the installation and maintenance of fire fighting and prevention equipment will be effected by the Lessor at the expense of the Lessee.

26.7 The entire cost to the Lessor of the alterations referred to in clause 26.6 must be paid by the Lessee upon demand by the Lessor and the Lessor may require the Lessee to deposit with the Lessor the estimated cost of the alterations before those alterations are commenced.

27. PEST CONTROL, INFECTIOUS DISEASES AND PREPARATION OF FOOD

27.1 The Lessee must at its own expense keep the Demised Premises free of pests, rodents and vermin and at least once annually during the Term engage a licensed pest control operator to conduct a full fumigation of the Demised Premises against all pests, rodents and vermin commonly found in the locale of the Demised Premises.

27.2 The Lessee must give notice in writing to the Lessor and to the proper authorities of any infectious disease happening on the Demised Premises which requires notification by Statute.

27.3 The Lessee must at its own expense thoroughly fumigate and disinfect the Demised Premises upon the happening of any infectious disease.

27.4 The Lessee must not permit the preparation of any food (other than for customary staff meal requirements) on the Demised Premises other than in accordance with a permit or approval issued by the relevant competent authority.

28. ERECTION OF SIGNS

28.1 The Lessee must not paint, erect or affix any signs, notices or advertisements to the Demised Premises, Building or Land without first obtaining the consent in writing of the Lessor.

28.2 The Lessor's consent referred to in clause 28.1 may be granted absolutely or with conditions or may be refused in the absolute discretion of the Lessor but the Lessor's consent will not be unreasonably withheld nor will unreasonable or arbitrary conditions be attached with respect to the Lessee's trading signage.

29. FIXTURES, FITTINGS, FLOOR COVERINGS AND PARTITIONS

29.1 The Lessee must obtain the consent of the Lessor to:



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(a) erect or affix any blinds or awnings to the outside of the Demised Premises;

(b) erect or affix any blinds (venetian or otherwise) to the interior of the windows, display windows or doors of the Demised Premises;

(c) affix any shop fittings to the exterior walls or ceilings of the Demised Premises;

(d) affix to the floor of the Demised Premises any floor covering;

(e) install any internal partitions in the Demised Premises;

(f) make any alterations or modifications to any internal partitions installed in the Demised Premises; or

(g) hang or attach anything from or otherwise bring a load burden on the ceiling of the Demised Premises.

29.2 The Lessor's consent to the matters contained in clause 29.1 will not be unreasonably withheld and such consent may be granted absolutely or subject to conditions.

29.3 Any partitions and other fixtures erected by the Lessee will remain the property of the Lessee who will remain responsible for all maintenance and insurances of the partitions and fixtures.

30. INFLAMMABLE SUBSTANCES

30.1 The Lessee will not without the prior consent in writing of the Lessor use or store or permit to be used or stored in or about the Demised Premises any explosive, inflammable or corrosive fluids or chemicals other than those normally used or sold by the Lessee in the lawful conduct of the Lessee's business.

30.2 All explosive, inflammable or corrosive fluids or substances normally used or sold by the Lessee in the lawful conduct of the Lessee's business must be confined in the containers in which they are normally purchased by the Lessee or sold by the Lessee to the public.

31. NOTICE OF DAMAGE

The Lessee will advise the Lessor immediately in writing of:

(a) any incident as a result of which any person suffers any injury or harm; or

(b) any damage sustained to the Demised Premises which is reasonably apparent; or

(c) the defective operation of any of the services, Appurtenances or facilities in the Demised Premises.

32. SECURITY

32.1 The Lessee will ensure that all exterior doors and windows in the Demised Premises are securely locked and fastened at all times when not being used.

32.2 The Lessee authorises the Lessor's representative to enter the Demised Premises for the purpose of locking any door or window left unlocked or unfastened.

33. TOWN PLANNING CONSENTS

33.1 If the Lessee's use or intended use of the Demised Premises requires the consent of the Local Authority under its Planning Scheme, the Lessee will at the Lessee's own cost and expense apply for such consent.

33.2 The Lessor as the registered proprietor of the Demised Premises will consent to any application by the Lessee under clause 33.1.



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33.3 The failure of the Lessee to obtain Local Authority consent under clause 33.1 does not in any way affect the obligations of the Lessee under this Lease.

34. KEYS

34.1 The Lessee will be supplied with keys to the Demised Premises.

34.2 The Lessee will not permit duplicates of any keys to the Demised Premises to be made without the written consent of the Lessor.

35. ASSIGNMENT AND SUBLETTING

35.1 Assignment

(a) If the Lessor consents in writing the Lessee may assign the Lease.

(b) The Lessor will not arbitrarily or unreasonably withhold or delay the Lessor's consent to assignment of the Lease provided the following conditions set out in clauses 35.1(c) to 35.1(j) inclusive are met.

(c) In determining whether or not to consent to a proposed assignment of the Lease by the Lessee the Lessor is entitled to take into account:

(i) whether or not the proposed assignee is a respectable and financially responsible person; and

(ii) whether or not the proposed assignee has at least equal trading and turnover potential in conducting a business substantially similar to that of the Lessee;

(d) The onus of proving the matters contained in clauses 35.1(c)(i) and 35.1(c)(ii) to the satisfaction of the Lessor is on the Lessee.

(e) The Lessee must pay the legal and other costs which the Lessor reasonably incurs:

(i) in investigating a proposed assignee;

(ii) in preparing, stamping and registering any documents required for the assignment including stamp duty and all registration fees; and

(iii) in obtaining the necessary consents to the assignment.

(f) The Lessor is entitled to refuse consent to the assignment if:

(i) the Lessee has not paid all Rent and other monies due at the date of the assignment; or

(ii) there exists any unremedied breach of any term, covenant, condition or restriction contained in the Lease which has not been waived by the Lessor.

(g) The proposed assignee must by deed, covenant with the Lessor to observe and perform all of the terms, covenants, conditions and restrictions on the part of the Lessee under the Lease whether express or implied, positive or negative.

(h) The deed of covenant referred to in clause 35.1(g) will be prepared and stamped by the Lessor's solicitors at the cost of the Lessee and will be in the form reasonably required by the Lessor's solicitors.

(i) Where the proposed assignee is a corporation the Lessor may as a condition of the Lessor's consent to the assignment require that the covenants on the part of the assignee referred to in clause 35.1(g) be guaranteed by the directors or principal shareholders of that corporation or both.



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(j) The guarantee referred to in clause 35.1(i) will be prepared and stamped by the Lessor's solicitors at the cost of the Lessee.

(k) Where the Lessee is a corporation any changes in the principal shareholding of the Lessee or any change in the principal shareholding of any holding company of the Lessee which has the effect of altering the effective control of the Lessee will for the purpose of this paragraph be considered to be an assignment of the Lease and will require the consent of the Lessor in accordance with clause 35.1.

35.2 Subletting

(a) The Lessee will not sublet or part with possession of the Demised Premises or any part of it without the Lessor’s approval.

(b) Without limiting clause 35.2(a), the Lessee must not permit any person other than an Approved Person to occupy the dwelling house on the Demised Premises.

(c) For the purposes of clause 35.2(b), “Approved Person” means:

(i) if the Lessee is a natural person, the Lessee and members of the Lessee’s immediate family;

(ii) if the Lessee is a company, a director of the company and members of his or her immediately family; or

(iii) in either case, a person, and members of that person’s immediate family, who is employed by the Lessee as the Lessee’s pool manager pursuant to clause 25.3.

(d) Notwithstanding the preceding provisions of this clause 35.2, if the Lessee or any Approved Person is not occupying the dwelling house, the Lessor will be authorised to use that dwelling house for its own purposes.

35.3 Licensees or Concessionaires

(a) The Lessee will not permit any licensee or concessionaire to conduct business in any part of the Demised Premises without first obtaining the written consent of the Lessor.

(b) The Lessor may grant absolutely, grant subject to conditions or refuse the consent referred to in clause 35.3(a) at the absolute discretion of the Lessor.

35.4 Mortgaging

(a) The Lessee will not mortgage, charge or otherwise encumber the Lessee's estate or interest in this Lease without first obtaining the written consent of the Lessor.

(b) The Lessor may grant subject to conditions or refuse the consent referred to in clause 35.4(a) if the security documents entitle the mortgagee to enter into possession of the Demised Premises but otherwise the consent shall not be unreasonably withheld by the Lessor.

36. ALTERATIONS TO DEMISED PREMISES

36.1 Alterations Required by Law not Related to Lessee's Business

(a) If:

(i) the Lessor effects any alterations or additions to the Demised Premises, the Building or their services, Appurtenances or facilities pursuant to a requirement of any future or existing Statute; and



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(ii) in the Lessor’s reasonable opinion the Lessee receives a benefit from the alterations or additions;

the Rent from the date of completion of the alterations or additions may be increased by a sum to be negotiated and agreed upon by the parties on or before the commencement of the alterations or additions.

(b) The total costs of the alterations or additions referred to in clause 36.1(a) will include all fees paid to architects, surveyors, engineers or other consultants.

(c) If alterations or additions are required to be made because of the nature of the Lessee's business or the number or sex of the Lessee's employees then clause 36.1(a) will not apply.

(d) If any alterations or additions referred to in clause 36.1(a) are in respect of any other leased premises in the Building as well as the Demised Premises then the Rent for the Demised Premises will only be increased by twelve per centum (12%) of that proportion of the total cost of the alterations or additions which the floor area of the Demised Premises bears to the floor area of all such leased premises altered or added.

(e) Nothing in this clause 36.1 requires the Lessor to effect alterations or additions which are the obligation of the Lessee.

36.2 Alterations Required by Law Related to the Lessee's Business

(a) The Lessee must not make or permit to be made any alterations, additions or improvements of a structural nature to the Demised Premises or to the services or facilities in or to the Demised Premises unless those alterations, additions or improvements are required by law as a result of:

(i) the nature of the Lessee's business; or

(ii) the number or sex of the Lessee's employees.

(b) If clause 36.2(a) applies then:

(i) the Lessee must submit detailed drawings and other specifications of the proposed works to the Lessor;

(ii) the proposed works will be considered for approval by the Lessor's architect who will have regard to the following when considering whether or not to approve the works:

(A) the extent to which the works will affect the Building and Demised Premises;

(B) the extent to which the facilities, Appurtenances and services in the Demised Premises and Building will be affected; and

(C) any likely affects on air circulation, airconditioning, fire alarm or sprinkler systems;

(iii) the works must be carried out at the cost of the Lessee by licensed contractors who have a current public liability policy for an amount (to be approved by the Lessor) and who have been approved in writing by the Lessor or the Lessor's architect;

(iv) the works must be carried out in a proper and workmanlike manner to the satisfaction of the Lessor's architect and, if required by the Lessor, under the supervision of the Lessor's architect;

(v) the Lessee must pay to the Lessor upon demand by the Lessor the costs of the Lessor's architect relating to the approval (whether the proposed works are approved or not) and supervision;



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(vi) if required by the Lessor, the Lessee must furnish an undertaking that the Lessee will reinstate the Demised Premises at the expiration of the Term to the condition in which they were before the works were effected;

(vii) any undertaking required by clause 36.2(b)(v) will be prepared by the Lessor's solicitors at the cost of the Lessee;

(viii) the Lessee indemnifies and keeps indemnified the Lessor from and against all actions, claims, demands, losses, damages, costs and expenses (including rent losses) that the Lessor may suffer or incur as a result of the construction or installation of the works.

36.3 Other Alterations

(a) The Lessee will not make or cause to be made any alterations, additions or improvements of any kind not referred to in clause 36.2 without first obtaining the written consent of the Lessor.

(b) The Lessor's consent to the alterations, additions or improvements in clause 36.3(a) will not be unreasonably withheld.

(c) The alterations, additions or improvements must be made in accordance with the provisions of clauses 36.2(b)(i) to 36.2(b)(viii) unless compliance with any of these requirements is expressly waived in writing by the Lessor.

36.4 Future Capital Improvements

Subject to clause 36.3, the Lessee may propose certain capital improvements to the Land after the first year of the Term has passed, and the Lessee has had the opportunity to consider the needs of the public. The Lessor and Lessee will consider any such proposed improvements in accordance with clause 36.3.

SECTION IV - LESSOR'S COVENANTS

37. QUIET ENJOYMENT

37.1 If the Lessee pays the Rent and does not breach the Lease the Lessee may use and occupy the Demised Premises during the Term peaceably without any interference from the Lessor or any person lawfully claiming under the Lessor.

37.2 Clause 37.1 is subject to the provisions of the Lease and the Lessor's rights under it.

37.3 The Lessor is not to inhibit in any substantial manner the access of the Lessee to the Demised Premises.

37.4 The Lessor is not to take any action that would substantially alter or inhibit the flow of customers to the Demised Premises without the Lessee's consent.

37.5 If any breach of clauses 37.1, 37.3 or 37.4 should occur then the Lessor will take all reasonable steps to bring the interference to an end as quickly as possible.

38. SUITABILITY OF PREMISES

38.1 The Lessor does not warrant that the Demised Premises are at the Date of Commencement or will remain fit, suitable or adequate for all or any of the purposes of the Lessee.

38.2 All warranties as to the suitability, fitness and adequateness of the Demised Premises implied by law are expressly negatived.



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39. ASSUMPTION OF RISK BY LESSEE

39.1 The Lessee agrees to occupy and use the Demised Premises at the risk of the Lessee.

39.2 The Lessor will not in any circumstances be liable to the Lessee for any loss or damage (or loss of profits resulting from any loss or damage) to any property of the Lessee contained in or about the Demised Premises caused by any of the following:

(a) water from any source;

(b) heat or fire;

(c) electricity;

(d) vermin;

(e) any natural disaster; or

(f) explosion, riot or civil commotion,

except where such loss or damage is caused by the negligence of the Lessor.

40. INTERRUPTION OF SERVICES

The Lessor will not in any circumstances be liable to the Lessee for any loss or damage suffered by the Lessee for:

(a) the malfunction, failure or interruption of the airconditioning equipment, water, gas or facilities in the Building or the Demised Premises; or

(b) any blockage of any sewers, wastes, drains, gutters, downpipes or storm water drains.

41. CONDITION OF LESSOR'S LIABILITY

In the case of a breach able to be remedied the Lessor will not be considered to be in default of any obligations under the Lease unless:

(a) the Lessee has given notice in writing of the default to the Lessor; and

(b) the Lessor has failed within a reasonable time to take proper steps to rectify it.

42. DAMAGE OR DESTRUCTION OF DEMISED PREMISES

42.1 Abatement

If at any time during the Term some natural disaster or other serious event occurs which is beyond the reasonable control of the Lessee and, as a result, the Demised Premises are destroyed or damaged wholly or in part or the usual access to them is obstructed wholly or in part and because of such destruction, damage or obstruction the Lessee cannot conduct its business in the Demised Premises reasonably, then the Lessee's obligations under the Lease to pay Rent, outgoings or other charges will abate proportionally to the effect on the Lessee's business until either the Demised Premises or the access to it are repaired or restored to a condition in which the Lessee can conduct its business in the Demised Premises reasonably.

42.2 Dispute

Any dispute arising out of the provisions of clause 42.1 will be referred to arbitration under the Commercial Arbitration Act 1990.



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42.3 Termination

If the events referred to in clause 42.1 occur and after one (1) month the Demised Premises or the access to it has not been reconstructed to a condition in which the Lessee can reasonably conduct its business then either the Lessor or the Lessee may notify the other in writing of its intention to end the Lease and the Lease will end one (1) month after the date of notification.

42.4 Continuation of Business

The Lessee will, during any period of reconstruction or repair of the Demised Premises, continue the operation of the Lessee's business in the Demised Premises so far as it may be reasonably practicable for the Lessee to do so having regard to the nature of the Lessee's business and the nature and extent of the damage sustained.

43. LESSOR MAY CARRY OUT WORKS

43.1 The Lessor may carry out the Lessor’s Works at any time during the Term.

43.2 If the Lessor employs reputable contractors or trades people to carry out the Lessor’s Works and if they do so during hours and using methods and practices that are not unusual for work of the kind they are doing the Lessor will not be in breach of clause 37 of the Lease and will not be liable to the Lessee for nuisance, negligence, any other sort or any other breach of the Lease for carrying out the works or for anything related to doing so.

44. RIGHTS RESERVED TO LESSOR

44.1 The Lessor may:

(a) Use External Walls and Roof

use the outside of the external walls and the roof of the Building and of the Demised Premises for any purpose;

(b) View Premises

show prospective lessees through the Demised Premises and put "To Let" or "For Lease" notices on the Demised Premises during the three (3) months before the end of the Lease;

(c) Use Demised Premises for Services

use the Demised Premises for the passage of airconditioning equipment, fire and sprinkler systems, pipes, services ducts, cables, electric wiring, water sewerage and drainage connections and any other services;

(d) Enter to Maintain and Repair

enter the Demised Premises at all reasonable times to install, maintain or repair any of the items referred to in clause 44.1(c);

(e) Deal with Common Areas

erect and remove kiosks, shops, signs, seats and other structures in any parts of the Common Areas and grant to any person the exclusive use of any of those structures on such terms and conditions as the Lessor in the Lessor's absolute discretion may think fit;



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(f) Licence the Use of Common Areas

grant to any person a licence to use any parking bay or any other part of the Common Areas (other than the toilets) either exclusively or in common with others on such terms and conditions as the Lessor in the Lessor's absolute discretion may think fit;

(g) Grant Easements

enter into any arrangements or agreements with or dedicate, transfer, grant or create easements to:

(i) owners, lessees or occupiers of lands adjacent to the Building; or

(ii) any public or other authority

(iii) for the purpose of:

(iv) providing public or private access to or egress from the Building or adjacent land;

(v) support of structures erected or to be erected on adjacent land; or

(vi) the provision of services (including but not limited to water, drainage, gas, electricity, telephonic and electronic communications) to the Building or to adjacent land;

upon such terms and conditions as the Lessor thinks fit.

44.2 Limitation of Lessee’s Interest

The estate or interest of the Lessee under the Lease is subject to the matters contained in clause 44.1.

44.3 Non Derogation from Grant

The Lessor in exercising the rights reserved by clause 44.1 must not enter into any arrangement or agreement or dedicate, grant or create any easement rights or privilege in favour of any person other than the Lessee which substantially and permanently derogate from the enjoyment of the rights conferred on the Lessee by the Lease.

44.4 Other Interests

The Lessee will permit any person having an estate or interest in the Demised Premises superior to or concurrent with the Lessor to exercise the Lessor's or that other person's powers to:

(a) enter and view the Demised Premises;

(b) enter and carry out repairs, maintenance and other work to the Demised Premises; and

(c) otherwise to exercise or perform their lawful rights or obligations in relation to the Demised Premises.

44.5 Benefit of Lessee's Covenants

If a person other than the Lessor becomes entitled to receive the Rent either by operation of law or otherwise, that person will have the benefit of all covenants and agreements on the part of the Lessee under the Lease and the Lessee must at the cost of the Lessor enter into those covenants with that person as required by the Lessor.



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SECTION V - MUTUAL AND OTHER COVENANTS

45. DEFAULT OF LESSEE

45.1 Default

If:

(a) the Rent or any part of it or any other monies owing to the Lessor under the Lease is or are in arrears for fourteen (14) days whether formally demanded or not;

(b) the Lessee breaches the Lease or any rule or regulation made under the Lease;

(c) the Lessee fails to carry out any repairs properly required by any notice within the time specified in the notice;

(d) any assignment of the Lessee's property is made for the benefit of creditors;

(e) the Lessee is a corporation and an order is made or a resolution is passed for its winding up except for reconstruction or amalgamation;

(f) the Lessee is a corporation and it ceases or threatens to cease to carry on business or goes into liquidation whether voluntary or otherwise or is wound up or if a liquidator or receiver (in both cases whether provisional or otherwise) is appointed;

(g) the Lessee is a corporation and is placed under official management under the Corporations Act 2001 or enters a composition or scheme of arrangement;

(h) the interest of the Lessee under the Lease is taken in execution;

(i) the Lessee or any person claiming through the Lessee conducts any business from the Demised Premises after the Lessee has committed an act of bankruptcy,

then the Lessee will be considered to have made default.

45.2 Lessor may Remedy

(a) The Lessor may, but is not obliged to, remedy at any time without notice any default by the Lessee under the Lease.

(b) All reasonable costs incurred by the Lessor (including legal costs and expenses) in remedying a default of the Lessee will constitute a liquidated debt and must be paid by the Lessee to the Lessor on demand.

45.3 Termination of Lease

(a) Subject to any requirement of any Statute, if the Lessee has made default as specified in clause 45.1 the Lessor may end the Lease by:

(i) notifying the Lessee in writing that the Lessor is ending the Lease and from the date of giving that notice the Lease will be determined absolutely;

(ii) re-entering the Demised Premises with force if necessary and ejecting the Lessee and all other persons from the Demised Premises and repossessing them subject to any prior demand or notice required by law and upon so doing the Lease will be absolutely determined;



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(iii) notice in writing to the Lessee electing to convert the Term into a tenancy from month to month in which event the Lease will be determined as and from the giving of that notice.

(b) If the Lessor ends the Lease under clause 45.3(a) the Lessee will not be released from liability for any prior breach of the Lease or the breach which caused the default and any other remedies available to the Lessor for recovery of arrears or Rent or for breach of the Lease will not be prejudiced.

45.4 Essential Terms

(a) Each of the following obligations of the Lessee are essential terms of the Lease:

(i) the obligation to pay Rent throughout the Lease;

(ii) the obligation to pay any amount of money due and payable by the Lessee to the Lessor pursuant to this Lease within fourteen (14) days of written notice by the Lessor requesting or demanding payment;

(iii) the obligation to keep, repair and maintain the Demised Premises in good and substantial repair provided in clause 7;

(iv) the obligation to use the Demised Premises for the permitted use only as provided in clause 20 and any other covenants dealing with the use of the Demised Premises;

(v) the obligations specified in clauses 25.5, 25.6 and 25.7;

(vi) the obligations in relation to assignment and subletting referred to in clause 35.

(b) In respect of the Lessee's obligation to pay Rent, the acceptance by the Lessor of arrears or any late payment of the Rent does not constitute a waiver of the essentiality of the Lessee's obligation to pay Rent in respect of:

(i) those arrears;

(ii) the late payment of those arrears; or

(iii) the Lessee's continuing obligation to pay Rent during the Term.

(c) The Lessee agrees to compensate the Lessor for any breach of an essential term of the Lease and the Lessor is entitled to recover damages from the Lessee in respect of those breaches.

(d) The Lessor's entitlement under clause 45.4(c) is in addition to any other remedy or entitlement to which the Lessor is entitled at law or in equity or under the Lease (including the entitlement to terminate the Lease).

(e) If the Lessee's conduct whether by act or omission constitutes a repudiation of the Lease or a breach of any of the Lessee's obligations under the Lease then the Lessee agrees to compensate the Lessor for any loss or damage suffered by reason of the repudiation or breach.

(f) The Lessor is entitled to recover damages (such damages to include, without limitation, all costs incurred by the Lessor in re-leasing the Demised Premises) against the Lessee for repudiation or breach of covenant for damage suffered by the Lessor during the Term.

(g) The Lessor's entitlement to recover damages is not affected or limited by:

(i) the Lessee abandoning or vacating the Demised Premises;

(ii) the Lessor electing to re-enter or terminate the Lease;

(iii) the Lessor accepting the Lessee's repudiation; or



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(iv) the parties' conduct constituting a surrender of the Lease by operation of law.

(h) The Lessor is entitled to institute legal proceedings claiming damages against the Lessee for the entire Term including the periods before and after:

(i) the Lessee vacates the Demised Premises;

(ii) the abandonment;

(iii) the termination;

(iv) the repudiation;

(v) the acceptance of repudiation; or

(vi) the surrender by operation of law

(i) referred to in this clause whether proceedings are instituted before or after that conduct.

(j) If the Lessee vacates the Demised Premises whether with or without the Lessor's consent the Lessor must take reasonable steps to mitigate the Lessor's damages and endeavour to lease the Demised Premises at a reasonable rent and on reasonable terms.

(k) A certificate by a real estate agent nominated by the Lessor conducting business in the same Local Government area as the Demised Premises is conclusive evidence for the purpose of clause 45.4(j) of what is a reasonable rent and what are reasonable terms.

(l) The Lessor's entitlement to damages will be assessed on the basis that the Lessor should have observed the Lessor's obligation to mitigate damages contained in clause 45.4(j).

(m) The Lessor's conduct in pursuing the duty to mitigate damages is not by itself to be considered to constitute an acceptance of the Lessee's breach or repudiation or a surrender by operation of law.

45.5 Removal of Lessee’s Goods

(a) The Lessor may upon re-entry remove from the Demised Premises the Lessee’s Goods and:

(i) store those contents in such manner as the Lessor in the Lessor’s absolute discretion deems fit;

(ii) treat the Lessee’s Goods as if the Lessee had abandoned the Lessee’s interest in them and they had become the property of the Lessor and deal with them in such manner as the Lessor thinks fit.

(b) The Lessor's conduct pursuant to clause 45.5(a) is not to be considered to be an act of conversion and the Lessor will not be liable for any loss or damage caused by such removal or storage.

(c) Any costs incurred by the Lessor in the removal and storage of the contents pursuant to clause 45.5(a) shall be paid by the Lessee to the Lessor upon demand in writing by the Lessor.

45.6 Tender after Determination

(a) Any demand or acceptance of Rent by the Lessor after default by the Lessee under the Lease:

(i) will not affect any of the Lessor's powers under clause 45.3 or any other right, power or privilege of the Lessor under the Lease; and

(ii) will not operate as an election by the Lessor to exercise or not any of the Lessor's rights, powers or privileges under the Lease.



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(b) Any monies tendered by the Lessee after determination of the Lease under clause 45.3 and accepted by the Lessor may be and, in the absence of any express election of the Lessor, will be applied:

(i) on account of any Rent and other monies accrued and due under the Lease but unpaid at the date of determination or the termination date (whichever is appropriate); and

(ii) on account of the Lessor's costs of re-entry;

in whichever priority or order the Lessor considers fit.

45.7 Waiver

(a) No failure, delay, relaxation or indulgence by a party in exercising any right arising under this Lease and no custom or practice which exists between the parties operates as a waiver of that right.

(b) If any rights arise from a breach by a party and these rights are waived, this waiver does not operate as a waiver of rights which arise from any later continuation of that breach or any further breach of the same or any other term.

(c) This clause cannot be waived except in writing.

45.8 Holding Over

(a) If the Lessor permits the Lessee to continue to occupy the Demised Premises after the expiration of the Term (otherwise than pursuant to the exercise of any option period) or if the Lessor converts the Term under clause 45.3(a)(iii), then the Lessee will be considered to hold the Demised Premises as a monthly tenant only.

(b) The rental payable by the Lessee for any period during which the Lessee holds over as a monthly tenant as provided in clause 45.8(a) will be a monthly rental equal to the monthly instalments on account of the Rent payable under the Lease at the date of expiration of the Term and that rental will be payable monthly in advance.

(c) The amount and rate of rental for the monthly tenancy may be reviewed whenever the Lessor determines it appropriate in the Lessor’s absolute discretion and any provision in this Lease relating to a mechanism for the calculation of or any limitation on or right of review of any rental will not apply in the circumstances of this clause.

(d) The remaining terms and conditions applicable to the monthly tenancies referred to in clause 45.8(a) will be the terms and conditions of the Lease so far as they can be applied to a monthly tenancy.

46. INTEREST ON OVERDUE MONIES

46.1 The Lessee must pay to the Lessor interest at the Default Rate on:

(a) any Rent or other monies due by the Lessee to the Lessor remaining unpaid for seven days from the due date for payment; and

(b) any judgement from the date of such judgement until the same shall be satisfied.

46.2 Rent or other monies falling due for payment but unpaid as a result of consecutive breaches of the same covenant shall bear interest at the rate applicable to the Rent or other monies which were due and unpaid on the breach of the covenant which first occurred.

46.3 The interest shall:

(a) accrue from day to day;



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(b) be capitalised on the last day of each month;

(c) be payable on the first day of each month where an amount arose in the preceding month or months;

(d) be computed from the due date for payment of the Rent or other monies until payment of such Rent or other monies in full; and

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

47. DETERMINATION OF TERM

47.1 Lessee to Yield Up

The Lessee must at the expiration or earlier determination of the Term yield up the Demised Premises in the order and in the condition required by clause 7 of the Lease.

47.2 Removal of Signs

(a) On the expiration or earlier determination of the Lease, the Lessee must, at the Lessee’s expense, remove all signs, paintings and markings and restore the Demised Premises to its former condition.

(b) The Lessee must also remove all signs, paintings and markings from the exterior of the Building, from the Common Areas and from any other areas where they may have been installed.

(c) If the Lessee fails to comply with clauses 47.2(a) and 47.2(b) to the reasonable satisfaction of the Lessor with seven (7) days of determination of the Lease, then the Lessor may without notice to the Lessee carry out and complete that work and recover the cost of it from the Lessee as a liquidated sum.

47.3 Removal of Lessee's Goods

The Lessee may, if not having breached the terms of the Lease, during the last fourteen (14) days of the Term and must if so required by the Lessor on the expiration or earlier determination of the Lease, remove all the Lessee's Goods from the Demised Premises.

47.4 Lessee not to Cause Damage

(a) The Lessee must not cause or contribute to any damage to the Demised Premises or the Building in the removal of the Lessee's Goods.

(b) If the Lessee does cause or contribute to damage to the Demised Premises or Building in the removal of the Lessee's Goods then the Lessee must immediately make good that damage.

(c) The Lessee must leave the Demised Premises in a clean state and condition.

(d) If the Lessee does not leave the Demised Premises undamaged and in a clean state and condition then the Lessor may make good the damage and clean the Demised Premises at the cost of and as agent for the Lessee and recover from the Lessee all such costs as a liquidated debt payable on demand.

47.5 Failure by the Lessee to Remove Lessee's Goods

If the Lessee fails to remove the Lessee's Goods as required by clause 47.3 or if the Lessor re-enters the Demised Premises pursuant to clause 45.3(a)(ii) the Lessor may at the Lessor's option:

(a) remove any of the Lessee's Goods and store them in a manner that the Lessor thinks fit in the Lessor's absolute discretion and at the cost of the Lessee; or



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(b) treat the Lessee's Goods as if the Lessee has abandoned the Lessee's interest in them and they have become the property of the Lessor and the Lessor may then deal with them in such manner as the Lessor thinks fit (including sale) without being liable in any way to account to the Lessee for them or any proceeds from their sale.

47.6 Lessee to Indemnify Lessor

The Lessee agrees to:

(a) indemnify the Lessor in respect of the removal and storage of the Lessee's Goods and also for all claims which the Lessor may be subject to at the suit of any person other than the Lessee claiming an interest in the Lessee's Goods by reason of the Lessor acting pursuant to clause 47.5;

(b) pay to the Lessor as a liquidated debt payable on demand any costs incurred by the Lessor in acting under clause 47.5 which will include any excess of costs over monies received by the Lessor in disposal of the Lessee's Goods pursuant to the Lessor's rights contained in clause 47.5.

47.7 Prior Breaches

The determination of the Lease will not prejudice or affect any rights or remedies of the Lessor against the Lessee on account of any prior breaches of the Lease by the Lessee.

48. POWER OF ATTORNEY

48.1 The Lessee irrevocably from the Commencement Date:

(a) nominates and appoints the Lessor, the Lessor's officers and the Lessor's nominees severally to be the lawful attorneys of the Lessee to act at any time after the power to determine the Lease has been exercised to:

(i) execute a transfer of the Lease;

(ii) execute a surrender of the Lease; or

(iii) execute a withdrawal of any caveat lodged to record the Lessee's interest in the Lease;

(b) and produce and register any of those documents and for that purpose to use the name of the Lessee and generally to do anything relating to the Demised Premises as fully and effectually as the Lessee could do;

(c) covenants for the Lessee and the Lessee's successors and assigns to ratify and confirm whatever any of the attorneys or any substitute or nominee as referred to in paragraph 48.1(a) lawfully do or cause to be done relating to the Demised Premises;

(d) authorises the Lessor as the Lessee's attorney to sign all documents and do all acts and things as may be necessary to de-register any business or trade name which the Lessee is no longer by the terms of the Lease permitted to use; and

(e) authorises the Lessor as the Lessee's attorney to substitute as the Lessee's attorney the purchaser (and the nominated officers of that purchaser) of the reversion of the Lease.

48.2 A statutory declaration by the Lessor will be sufficient proof that the Lease has been determined for the purpose of clause 48.1 and the Registrar of Titles is authorised to act on that statutory declaration and accept it as sufficient evidence of the determination of the Lease.



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SECTION VI - GENERAL

49. COSTS

49.1 Costs of Lease

(a) If in Item 9 the words "Lessee Pays Costs" or words to that effect appear then the Lessee will pay the Lessor’s legal fees and costs on a solicitor and own client basis of and incidental to the drafting, negotiations, engrossment, execution of the Lease and the Lessee must also pay all registration, survey and mortgagee’s consent fees which may be required. All such costs and expenses will be paid by the Lessee in full as a pre-condition to the Lessee’s right to use and occupy the Demised Premises pursuant to the Lease.

(b) If in Item 9 the words "Each Party Pays Costs" or words to that effect appear then the Lessor and the Lessee will each bear their own fees and costs of and incidental to the negotiation, drafting, engrossment, execution of the Lease. The Lessee will also pay all registration, survey and mortgagee’s consent fees.

49.2 Costs of Determination

The Lessee must upon demand by the Lessor pay all fees and costs (as between solicitor and own client) and expenses incurred by the Lessor in relation to any action, notice or procedure lawfully taken by the Lessor in accordance with the Lease for any of the following:

(a) any lawful determination or attempted determination of the Lease;

(b) any lawful re-entry or attempted re-entry by the Lessor into the Demised Premises;

(c) the surrender of the Lease (including any duty and registration fees);

(d) the granting or obtaining of any consents by the Lessor (except for the purpose of consent to the grant of the Lease);

(e) any action lawfully taken by the Lessor as a consequence either directly or indirectly of the Lessee making default in the performance or observance of any covenant of the Lease; or

(f) any proceedings lawfully brought by the Lessor to enforce the performance by the Lessee of the Lessee's covenants or obligations under the Lease.

49.3 Legal Fees

If the Lessor not being in default under the Lease is made a party to any litigation commenced by or against the Lessee (other than litigation directly between the Lessor and Lessee) which arises directly or indirectly out of the Lessee's occupancy of the Demised Premises, then the Lessee will pay to the Lessor on demand all legal fees and costs (as between solicitor and own client) incurred by the Lessor as a result.

50. MISCELLANEOUS

50.1 Notices

(a) Any notice, request, consent or other communication in connection with this Lease ("Notice"):

(i) must be in writing; and

(ii) must be served in accordance with this clause.

(b) A Notice may be left at the address of the addressee, or sent by prepaid ordinary post (airmail if posted to or from a place outside Australia) or sent by facsimile or email to:



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(i) the address of the addressee or the facsimile number of the addressee or the email address of the addressee which is specified in this clause; or

(ii) if the addressee has in writing notified another address or facsimile number or email address then to that address or facsimile number or email address.

(c) A Notice takes effect from the time it is received unless a later time is specified in it.

(d) A notification of change of address does not take effect until each other party notifies the party changing its address that the notice of change of address has been received.

(e) A letter or facsimile or email is taken to be received:

(i) in the case of a posted letter, on the second (seventh, if posted to or from a place outside Australia) day after posting; and

(ii) in the case of a facsimile, on production of a successful transmission report by the machine from which the facsimile was sent in its entirety to the facsimile number of the recipient PROVIDED THAT where transmission is completed after 5.00pm on a business day or is sent on a day that is not a business day, the message will not be deemed to have been received until the next business day; and

(iii) in the case of an email, when the email becomes capable of being retrieved by the addressee at the addressee’s email address provided that if such retrieval becomes possible only after 5.00pm on a business day, or upon a day that is not a business day, the email will not be deemed to have been received until the next business day.

(f) The address and facsimile number and email address of each party is as specified in the Reference Schedule.

50.2 Moratorium Negatived

Any Statute, proclamation, order, regulation or moratorium present or future will not apply to the Lease so as to in any way prejudicially affect or extinguish any of the Lessor's rights, powers or remedies unless the application of it is mandatory.

50.3 Entire Agreement

(a) This Lease constitutes the entire agreement between the parties, and supersedes all prior communications, negotiations, arrangements and agreements, whether oral or written, with respect to the subject matter.

(b) No agreement or understanding varying, extinguishing or extending this Lease is legally binding unless it is in writing signed by each party or on behalf of a party by a duly authorised representative.

50.4 Severability of Provisions

50.5 Any provision of this Lease which is illegal, void or unenforceable is ineffective to the extent only of such illegality, voidness or unenforceability without invalidating any of the remaining provisions of this Lease.

50.6 Proper Law

(a) This Lease must be construed in accordance with and governed by the Laws of Queensland.

(b) Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of Queensland and courts of appeal therefrom. Each party waives any right it has to object to an action being brought in those courts including, without limitation, by claiming that the action has been brought in an inconvenient forum or that those courts do not have jurisdiction.



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50.7 Discontinuance of Bodies and Associations

(a) This clause applies to any references to any authority, institute, association or body whether statutory or otherwise ("a Body") if:

(i) the Body ceases to exist;

(ii) the Body is reconstituted, renamed or replaced; or

(iii) its powers or functions are transferred to another organisation.

(b) A reference to the Body is taken to include a reference to the organisation established or constituted in lieu of it or to which its powers or functions are transferred, or, in the absence of either of the above, to the organisation which most closely serves the same purposes as the Body.

50.8 Non-Merger

None of the terms of this Lease nor any act, matter or thing done under this Lease operates as a merger of any of the rights and remedies of the parties under this Lease those rights and remedies continue in full force and effect until the rights and obligations of the parties under this Lease have been fully satisfied and performed.

51. OPTION FOR RENEWAL

51.1 If the Lessee:

(a) has paid the Rent regularly during the Lease in accordance with clause 2;

(b) has not breached the Lease seriously or persistently;

(c) notifies the Lessor according to clause 51.2 of the exercise of option; and

(d) between the time of notification and the time the Lease ends pays Rent and other payments punctually and does not breach the Lease;

then subject to clause 51.4 at the end of the Term the Lessor will grant and the Lessee will take a further lease of the Demised Premises in accordance with the provisions set out in clause 51.3.

51.2 A notice of exercise of option:

(a) must state clearly that the Lessee wishes to take a further lease of the Demised Premises according to the option contained in the Lease; and

(b) must be served not earlier than six (6) months and not later than three (3) months before the end of the Term.

51.3 The provisions of the further lease will be the same as the provisions of the Lease with the following exceptions:

(a) the further lease will begin the day after the Expiry Date;

(b) the Rent at the commencement of the further Lease will be as agreed between the Lessor and the Lessee no later than one (1) month prior to the Expiry Date failing which the Rent at the commencement of the further lease will be determined in accordance with the CPI Method;

(c) it will not contain the provisions of this clause 51;

(d) the term of the further lease will be for the period specified in Item 12 as the Option Period.



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51.4 If there is a Guarantor of the Lease, the Lessor need not grant a further lease of the Demised Premises unless the Lessee obtains a further guarantee of the due and punctual observance and performance of its obligations under the further lease either by the Guarantor or by other guarantors acceptable to the Lessor on terms similar to the guarantee in the Lease.

51.5 (a) This clause 51.5 applies despite anything to the contrary.

(b) The Lessor may invoke the provisions of this clause, by giving notice in writing (“Show Cause Notice”) to the Lessee, if, in the Lessor’s reasonable opinion, the Lessee has not operated the Demised Premises as a public swimming facility:

(i) to a reasonable standard; or

(ii) in a manner which is in the best interest of the community.

(c) If the Lessor wishes to give a Show Cause Notice it must do so within thirty (30) days of receiving the notice of exercise of option.

(d) A Show Cause Notice must contain reasonable particulars of the basis for the Lessor’s opinion under clause 51.5(b).

(e) If a Show Cause Notice is given the Lessee must, within fourteen (14) days, show cause as to why the Lessor should not revoke the option under clause 51.5(f). The Lessor must make a decision under clause 51.5(f) within thirty (30) days of the issue of a Show Cause Notice.

(f) Unless the Lessor is reasonably satisfied that the Lessee will, if a further lease is granted, operate the Demised Premises as a public swimming facility to a reasonable standard and in a manner which is in the best interests of the community, the Lessor may, by notice in writing to the Lessee (“Revocation Notice”), revoke the option otherwise provided for in clause 51.1.

(g) If a Revocation Notice is given:

(i) despite anything to the contrary, no further lease of the Demised Premises is granted to the Lessee;

(ii) this Lease comes to an end on the Expiry Date; and

(iii) no compensation or damages are payable to the Lessee.

51.6 If the option for renewal contained in this clause 51 is exercised, then the parties will execute a fresh lease or Deed of Extension of the Lease at the Lessor’s option to be prepared, stamped and if necessary registered by the Lessor’s solicitors at the Lessee’s cost.

51.7 If the Rent for the first Rental Year of the Option Period has not been determined by the due date for commencement of the Option Period then the Lessee will, pending execution of the fresh lease or Deed of Extension referred to in clause 51.5, continue to pay the monthly instalments on account of the Rent payable under the Lease at the Expiry Date of the Term and the Rent paid will be credited against the Rent for the first Rental Year of the Option Period and the amount of any deficiency will be paid by the Lessee to the Lessor immediately when the further lease is executed.

51.8 For the second and subsequent Rental Years of the Option Period the Lessee must pay to the Lessor the Rent calculated in accordance with the rent review method specified in Item 5.

52. LESSEE AS TRUSTEE

52.1 If the Lessee has entered into the Lease in the capacity of a trustee or if the Demised Premises are held by the Lessee upon the terms of any trust or are subject to any trust (all or any of those trusts being referred in this



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clause as "the Trust") then whether or not the Lessor has notice of the Trust the provisions of this clause will apply.

52.2 If the Lessee is in any way in default under the Lease the Lessee will upon demand by the Lessor exercise all rights of indemnity which the Lessee may possess in relation to the assets of the Trust and all rights against the beneficiaries or unit holders or both.

52.3 Upon demand by the Lessor, the Lessee will assign to the Lessor all rights of indemnity which the Lessee may have against the assets of the Trust and the Lessee charges all assets of the Trust and all the Lessee's rights of indemnity and other rights mentioned above in favour of the Lessor with the payment of any amount which is or may become payable to the Lessor under the Lease.

52.4 The Lessee irrevocably appoints the Lessor and (if the Lessor is a corporation) the directors, the general manager and secretary of the Lessor jointly and severally to be the true and lawful attorney of the Lessee after default occurs and in the name of the Lessee to execute all documents and do all acts the attorney(s) may deem necessary to exercise the rights of indemnity and otherwise.

52.5 The Lessee warrants that:

(a) it is the sole trustee under the Trust;

(b) it has disclosed the full terms of the Trust to the Lessor;

(c) it has full and unfettered power to enter into the Lease, and enters into the Lease in accordance with its powers under the Trust validly exercised;

(d) the Lease is executed and entered into as part of the proper administration of the Trust;

(e) the transaction evidenced by the Lease is for the benefit of the beneficiaries of the Trust; and

(f) it has entered into the Lease to the intent and effect that all the provisions of the Lease will be binding on it both in its personal capacity and in its capacity as trustee of the Trust.

53. SALE BY LESSOR

Before transferring any interest in the Land, the Lessor must obtain a signed deed from the transferee of the Land containing covenants in favour of the Lessee that the transferee will be bound by the terms of the Lease and will not transfer its interest in the Land unless it obtains a similar deed from its transferee. The provisions of this clause will not apply if the Lease is registered in the Department of Natural Resources and Mines, nor to any transfer of the Land to the Lessee.



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SECTION VII - DEED OF GUARANTEE

1. In consideration of the Lessor granting the Lease to the Lessee, the Guarantor:

1.1 guarantees to the Lessor that the Lessee will pay the Rent and other monies payable under the Lease; 1.2 guarantees to the Lessor that the Lessee will observe and perform its obligations; and 1.3 undertakes to the Lessor that with the Lessee the Guarantor will be jointly and severally liable for the

payment of Rent and other monies and for any loss or damage suffered by the Lessor as a result of the Lessee’s failure to observe and perform the Lessee’s obligations under the Lease.

2. The Guarantor’s liability will not be reduced or discharged by:

2.1 the Lessor granting any time concession or indulgence to the Lessee; 2.2 the Lessor entering into any composition or scheme of arrangement with the Lessee; 2.3 the Lessor waiving any breach or default by the Lessee; 2.4 the Lessor failing to enforce the terms of the Lease against the Lessee; 2.5 the disclaimer of the Lease on the insolvency of the Lessee; 2.6 any payment by the Lessee that is avoided or set aside under any Statute relating to insolvency or

under any other Statute. 3. If the terms of the Lease are not enforceable against the Lessee for any reason the Guarantor will indemnify the

Lessor against any loss it may suffer as a result. That loss will include all monies that would have been payable by the Lessee had the Lease been fully enforceable against the Lessee.

4. On assignment of the Lease the Lessor may require the Lessee to obtain a further guarantee for the observance

and performance of the Lessee’s obligations by guarantors acceptable to the Lessor on terms similar to the guarantee in the Lease. When the further guarantee has been obtained and delivered to the Lessor any further liability of the Guarantor under the Lease will be discharged.

5. The guarantee and indemnity:

5.1 apply to any holding over by the Lessee named in the Lease; 5.2 do not apply to any holding over by an assignee unless the assignee is also a Lessee named in the

Lease; and 5.3 do not apply to any further leases granted after the end of the Lease.

6. In the event that the Lessor assigns the freehold of the Land subject to the Lease then the Lessor may assign

the benefit of this guarantee and indemnity to the assignee of the freehold and the Guarantor/s must enter into a deed with such assignee in terms similar to this guarantee and indemnity.

7. In this guarantee a reference to Rent (whether or not it is a reference to rent due or payable under the Lease)

includes:

7.1 Rent as defined in the Lease; 7.2 money for the right to occupy and use the Demised Premises;



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7.3 other money; and 7.4 damages for breach of or failure to perform the Lease.

8. If the Guarantor comprises more than one (1) person:

8.1 each is liable even if the others do not execute the guarantee; 8.2 each becomes liable when he or she executes the guarantee; and 8.3 the liability of those that execute the guarantee will be joint and several.

EXECUTED by as Guarantor as a ) Deed this day of ) 20 in the presence of: ) ...................................................................... Witness EXECUTED by ) Guarantor as a Deed this ) day of 20 in the ) presence of: ) ...................................................................... Witness



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SCHEDULE 1 – REPAIR SCHEDULE

ITEM LESSEE RESPONSIBILITY LESSOR RESPONSIBILITY

1. Notice stating charges in force

Maintain and repair so as to keep in a sightly and serviceable condition and replace as and when required by reason of loss or damage beyond reasonable repair.

Nil

2. Notice stating hours

Maintain and repair so as to keep in a sightly and serviceable condition and replace as and when required by reason of loss or damage beyond reasonable repair.

Nil

3. Life saving equipment

(2 life rescue tubes)

Maintain and repair so as to keep in a safe and serviceable condition and replace if and when required due to loss or damage beyond reasonable repair other than through fair wear and tear.

Replace as required arising out of fair wear and tear.

4. Electric

(2 Speedo timing clocks, 12 pole mounted spot lights, 3 lighting standards)

Maintain and repair so as to keep in a safe and serviceable condition and replace if and when required due to loss or damage beyond reasonable repair other than through fair wear and tear.


5. Garbage bins, trash cans

(6 mini wheelie bins, 5 regular sized wheelie bins)

Maintain and repair so as to keep in a safe, sightly and serviceable condition and replace as required by reason of loss or damage beyond reasonable repair and replace as required arising out of fair wear and tear

Nil

6. Tools

(1 algae broom scraper, 2 manhole lifters)

Maintain and repair so as to keep in a safe, sightly and serviceable condition and replace if and when required due to loss or damage beyond reasonable repair other than through fair wear and tear




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7. Dwelling Keep and maintain so as to keep in a safe, sightly and serviceable condition and in good repair as at the date hereof together with all attachments and appurtenances and repair or replace any damage caused otherwise than by fair wear and tear.

Repair and repaint as and when required arising out of fair wear and tear.

8. Fixtures, fittings, clothes, pegs, mirrors and doors situated internally in dressing rooms, ablution rooms and toilet

Maintain and repair so as to keep in a safe, sightly and serviceable condition as replace as required by reason of loss or damage beyond reasonable repair other than through fair wear and tear.


9. Kiosk Building internally

Nil Maintain, repair and repaint so as to keep in a safe, sightly and serviceable condition the whole of the Kiosk building internally including walls, doors, windows, floors and ceilings.

10. Kiosk furnishing and fixtures, including counters and cupboards

(1 double bowl stainless steel sink with built in cupboards, 2 sets of cupboards, 2 hot water systems)

Maintain and repair so as to keep in a safe, sightly and serviceable condition and replace as required by reason of loss or damage beyond reasonable repair other than through fair wear and tear.


11. Café equipment supplied by Lessee

Maintain and repair so as to keep in a safe, sightly and serviceable condition and replace as required by reason of loss or damage beyond reasonable repair.

Nil



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12. Refrigerator (purchased 2001) and freezer

(Kelvinator Model HC500C Serial No. 54180359)



13. Electrical fittings and lamps within the Kiosk, within electrical circuits connected to the kiosk meter



14. Water testing equipment

Replace as and when required by reason of loss or damage beyond reasonable repair other than through fair wear and tear.


15. Suction cleaner tool and fittings (1 pump, 1 dolphin wave 300 with cover)



16. 50 metre pool, 25 metre pool, pumps, structures and play area

Subject to the Lessor paying the costs thereof, service, maintain and repair as needed

Payment of the costs of servicing, maintaining and repairs as needed, including such works as carried out by the Lessee.



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17. Swimming pool lane ropes, reels and stands - competitor starting stands and umpire stand

50m Pool

(6 competition lane ropes with attached floats, 1 mobile roller, 14 competitor starting stands, 6 reels, 2 stands for reels)

25m Pool

(4 lane ropes, 1 mobile roller, 2 heated pool blankets, 1 removable steps, 1 fixed disability hoist, 3 wheel chairs)



18. Seating

(4 grandstands)





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SCHEDULE II – CLEANING SCHEDULE CLEANING The lessee shall clean the floors of the 50 metre and 25 metre swimming pools and the water playground properly and effectively using the approved suction cleaner tool supplied by the Lessor for this purpose, twice in each week and at such further times as may be directed by an authorised officer of the Lessor. The Lessee shall carry out adequate preventative measures and work, as may be required, or as may be ordered by an authorised officer of the Lessor, to control the growth of algae on the floor and/or the walls of the 50 metre and 25 metre swimming pools and water playground. Cleaning of the walls is to be done by brushing them in association with the operation of the suction cleaner as required herein. The Lessee shall clean the scum gutter and tiled area of the pools above the water line as frequently as is reasonably required. The Lessee shall keep the demised premises including the drains and fences appurtenant thereto, and all adjacent footpaths, clean and tidy and free of litter of any type. The Lessee shall maintain all concrete footpaths, floors, pool surrounds, pathways, passage ways, including floors within dressing rooms, toilets, plant room and chemical room in a clean and non-slippery condition by washing down and brooming. Walls of shower areas are to be thoroughly wiped and cleaned down, urinal and shower cubical floors are to be scrubbed; toilet pedestals are to be scrubbed as often as required and not less than twice weekly. The Lessee shall keep the entrance and kiosk in a clean and tidy condition at all times. The Lessee shall keep all seating in a clean and tidy condition at all times. The Lessee shall as often as may be directed by an authorised officer of the Lessor empty the swimming pools and thoroughly clean all surfaces in a proper and effective manner. The Lessee shall not under any circumstances cause nor permit nor allow the swimming pools to be emptied without the prior permission of an authorised officer of the Lessor. The Lessee must keep adequate records of its compliance with the cleaning schedule and must provide copies of those records to the Lessor whenever requested by the Lessor. WATER QUALITY CONTROL The Lessee shall ensure that the whole of the water in the 50 metre, 25 metre swimming pools and the water playground is cleaned, chlorinated and chemically treated as often as is necessary to ensure that the water does not constitute a risk to the health of any person using the pools, and for this purpose shall properly operate, control, clean and service in accordance with the operational chart and instructions for such purpose provided by the Lessor and kept at the demised premises, the equipment for the filtration, chlorinating and chemical dosing of water in the 50 metre, 25 metre swimming pools and water playground, and shall make on not less than four occasions each day, tests for each parameter as per the layout of the testing sheet as published by Queensland Health Swimming and Spa Pool Water Quality and Operational Guidelines (October 2004) – Category One Pool. Any consequential cleaning, regulation or adjustment of the operation of the equipment, or of the amount of chemical dosage, shall be made forthwith after such tests as is necessary to have the pools’ water conform to the required standards of quality for swimming pool water. The Lessee shall regularly enter in a book kept by it in a form to the Lessor’s approval, the time that each test is made and result thereof. Such book shall be open to inspection by an authorised officer of the Lessor at any reasonable time. The Lessee shall provide all such chemicals as are required for the chlorination and treatment of water, and for the conduct of required testing. The Lessee shall forthwith report to the Lessor any failure or unsatisfactory operation of the chlorinating and chemical dosing equipment. PUMP OPERATIONS The Lessee shall cause the pump to be operated so as to circulate swimming pool water during the hours that the swimming pools are in use, and for any such additional periods as may be ordered by an authorised officer of the Lessor. The Lessee shall forthwith report to the Lessor any failure or unsatisfactory operation of the pump. If the lessee has not completed a “Swimming Pool Plant Operation Course” approved by the Lessor at the Commencement Date, the Lessee shall at the first available course after the Commencement Date, but in any event within six (6) months of the Commencement Date, successfully complete such a course.

queensland land registry lease/sub lease form 7 …

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