COMMERCIAL LEASE AGREEMENT
Gross Lease · Victoria, Australia
LANDLORD
Harbour Property Group Pty Ltd
88 William Street, Melbourne VIC 3000
ABN 12 345 678 901
By: Thomas A. Reynolds, Director
+61 3 9876 5432
leasing@harbourproperty.com.au
By: Thomas A. Reynolds, Director
TENANT
Southern Ventures Pty Ltd
45 Chapel Street, South Yarra VIC 3141
ABN 98 765 432 109
By: Natalie J. Wong, Chief Executive Officer
+61 412 345 678
natalie@southernventures.com.au
By: Natalie J. Wong, Chief Executive Officer
200 Queen Street, Level 2
350 sqm · Gross Lease
This Commercial Lease Agreement ("Lease") is entered into by and between Harbour Property Group Pty Ltd (ABN 12 345 678 901) (the "Landlord") and Southern Ventures Pty Ltd (ABN 98 765 432 109) (the "Tenant"). This Lease governs a commercial tenancy not subject to residential tenancy legislation; rights and obligations arise under common law and applicable commercial tenancy legislation. The parties agree as follows:
The Landlord hereby leases to the Tenant the commercial premises located at 200 Queen Street, Level 2, Victoria, Australia, comprising approximately 350 square metres of leasable floor area (the "Premises"). The Premises are leased as commercial premises on a Gross Lease basis. This Lease is not subject to the applicable state residential tenancy legislation.
The Tenant shall use and occupy the Premises solely for the following purpose(s): General office use, software development, and client meetings. The Tenant must not use the Premises for any other purpose without the prior written consent of the Landlord. The Tenant must comply with all applicable Commonwealth, state, and local government laws, regulations, by-laws, and codes. All licences, permits, and approvals required to conduct the Tenant's business are the Tenant's sole responsibility.
The term of this Lease shall commence on 1 July 2026 and expire on 30 June 2031 (the "Term"), unless earlier terminated in accordance with this Lease. Upon expiry of the Term, unless the Tenant exercises any option to renew (if applicable) or the parties agree in writing to an extension, the Tenant must vacate and surrender possession of the Premises to the Landlord.
4.
BASE RENT AND OUTGOINGS
The Tenant shall pay to the Landlord a monthly base rent of 8,500.00 AUD plus GST (currently 10%) pursuant to the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The Landlord shall issue a valid Tax Invoice for each rental period. This is a Gross Lease: all outgoings, including council rates, water rates, building insurance, and common area maintenance, are included in the base rent. The Tenant pays base rent only (plus any applicable GST).
All amounts payable by the Tenant under this Lease (including rent, outgoings contributions, and any other charges) are expressed exclusive of Goods and Services Tax (GST) unless otherwise stated. If GST is applicable, the Tenant must pay GST in addition to the amount, on receipt of a valid Tax Invoice. The Landlord represents that it is (or will be) registered for GST purposes under the A New Tax System (Goods and Services Tax) Act 1999 (Cth). Each party is responsible for its own income tax obligations. Stamp duty (if any) on this Lease is the Tenant's responsibility unless otherwise agreed.
The base rent shall be reviewed annually on each anniversary of the commencement date by reference to the Consumer Price Index (All Groups, capital city for the applicable state) published by the Australian Bureau of Statistics ("CPI"). The rent increase shall be calculated as: (CPI at review date − CPI at prior review date) ÷ CPI at prior review date × 100, applied to the preceding year's base rent. Any CPI-based increase shall be subject to any cap on rent increases prescribed by the applicable commercial tenancy legislation.
Upon execution of this Lease, the Tenant shall provide the Landlord with a cash bond in the amount of 17,000.00 AUD as security for the faithful performance of the Tenant's obligations (the "Security"). The cash bond shall be held by the Landlord as security and shall not be placed in a statutory trust account (unlike residential bonds). The bond is not governed by the residential tenancy bond legislation. The Security, less any lawful deductions, shall be returned to the Tenant within 30 days of the expiry or earlier termination of this Lease. Commercial security deposits are not subject to statutory interest obligations.
8.
FIT-OUT AND LEASEHOLD IMPROVEMENTS
The Tenant is permitted to install internal partitions, carpet, and LED lighting at its own cost, subject to Landlord approval of plans prior to commencement of works. All leasehold improvements and fit-out works must be carried out with the prior written consent of the Landlord, in accordance with any Landlord's Works specification, and in compliance with all applicable building codes, Development Consents, and local council requirements. All approved improvements become the property of the Landlord upon expiry or termination of this Lease unless otherwise agreed in writing. The Tenant shall indemnify the Landlord against any claims arising from fit-out works.
At the expiry or earlier termination of this Lease, the Tenant must: (a) vacate the Premises and yield up vacant possession to the Landlord; (b) remove all of the Tenant's property, goods, trade fixtures, and equipment; (c) restore the Premises to base building condition, including removal of all partitions and fit-out, with all surfaces painted in the Landlord's standard colour; (d) repair any damage caused during the make-good works; and (e) return all keys, access cards, and security devices. The Landlord may engage contractors to carry out any uncompleted make-good at the Tenant's cost if the Tenant fails to comply.
10.
MAINTENANCE AND REPAIRS
The Landlord shall maintain the structural elements of the building (including the roof, foundations, external walls, and building services common to all tenants) in good repair. The Tenant shall maintain the interior of the Premises, including all fixtures, fittings, and equipment within the Premises, in good condition and repair. The Tenant shall promptly notify the Landlord in writing of any structural deficiency. HVAC, plumbing, and electrical systems serving solely the Premises shall be the Tenant's maintenance responsibility unless this Lease specifies otherwise. The Tenant must not conduct any structural work.
The Tenant shall at its own cost maintain during the Term: (a) public liability insurance of not less than 20,000,000.00 AUD per occurrence, naming the Landlord as an additional insured; (b) plate glass insurance (if applicable); (c) contents and trade fixture insurance at full replacement value; and (d) workers' compensation insurance as required by law. The Tenant must provide copies of current insurance certificates of currency to the Landlord on request. The Landlord shall maintain building insurance. The Tenant's insurance shall not be cancelled or materially varied without at least 30 days' prior written notice to the Landlord.
12.
ASSIGNMENT AND SUBLETTING
The Tenant must not assign this Lease or sublet the Premises, or any part thereof, without the prior written consent of the Landlord, which shall not be unreasonably withheld or delayed. The Landlord may condition consent on the proposed assignee's financial capability and covenant strength. Any assignment does not release the Tenant from its obligations under this Lease unless the Landlord specifically agrees in writing. A change of control of the Tenant entity is deemed an assignment requiring consent.
The Tenant shall be in default if: (a) the Tenant fails to pay rent or any other amount due within 14 days of the due date; (b) the Tenant breaches any other material obligation under this Lease and fails to remedy the breach within 30 days of written notice from the Landlord (or such longer period as is reasonably required); (c) the Tenant becomes insolvent, enters into administration, receivership, or liquidation; or (d) the Tenant abandons the Premises. Upon default, the Landlord may terminate this Lease, re-enter the Premises, and pursue all remedies available at law or in equity. Commercial distress remedies vary by state — the Landlord should obtain legal advice regarding remedies available in Victoria. The Landlord must take reasonable steps to mitigate its loss.
14.
PRIVACY AND PERSONAL INFORMATION
Each party shall handle the other party's personal information (as defined in section 6 of the Privacy Act 1988 (Cth)) in accordance with the Privacy Act, the Privacy Regulations 2025, and the Australian Privacy Principles (APPs) in Schedule 1 to the Privacy Act — to the extent applicable. The Landlord may collect, hold and use the Tenant's and authorised representative's personal information for purposes including tenancy application assessment, ongoing administration of this Lease, rent collection, references to and from third parties, and compliance with statutory obligations. Each party shall comply with the Notifiable Data Breach scheme (Part IIIC of the Privacy Act) in respect of any suspected eligible data breach affecting the other party's personal information.
15.
WORK HEALTH AND SAFETY OBLIGATIONS
The Landlord, as a person conducting a business or undertaking (PCBU) responsible for the workplace, and the Tenant, as a PCBU operating from the workplace, each have non-delegable duties under the harmonised Work Health and Safety Act 2011 (Cth) and equivalent State and Territory legislation. The Landlord shall ensure that the structural elements of the building and any building services for which the Landlord is responsible comply with applicable WHS legislation and any current Code of Compliance. The Tenant shall ensure that its use of the Premises, fit-out, equipment, and operations comply with applicable WHS legislation including the 2022-2023 regulatory amendments addressing psychosocial hazards. Each party shall promptly notify the other of any notifiable incident under WHS legislation arising on or in respect of the Premises.
16.
UNFAIR CONTRACT TERMS — SMALL BUSINESS TENANT ACKNOWLEDGEMENT
The parties acknowledge that the Tenant has confirmed it is a small business within the meaning of section 23 of the Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth)) — employing fewer than 100 full-time equivalent employees or with annual turnover below AUD$10 million. Following the reforms commenced on 9 November 2023, the Unfair Contract Terms (UCT) regime under ACL sections 23–28 applies to any standard-form provision of this Lease, and a term held to be unfair is void and may attract civil penalties of up to AUD$2.5 million for individuals or, for body corporates, the greater of AUD$50 million / three times the value of any benefit obtained / 30% of adjusted turnover. The parties have negotiated this Lease so that no term is intended to operate beyond what is reasonably necessary to protect the Landlord's legitimate interests; any term held to be unfair shall be severed without affecting the remainder.
The Tenant shall have an option to renew this Lease for a further term of 5 year(s) on the same terms and conditions (except for this option and base rent, which shall be agreed or determined at market rent). To exercise this option, the Tenant must: (a) not be in default under this Lease at the time of exercise; (b) provide written notice to the Landlord at least 6 months before expiry of the Term; and (c) have substantially complied with all obligations throughout the Term. Failing agreement on renewal rent, the rent shall be determined at fair market rent by a licensed valuer in accordance with the applicable legislation.
18.
DAMAGE, DESTRUCTION AND RENT ABATEMENT
If the Premises are damaged or destroyed by fire, storm, or other insured risk so as to render them wholly or partially unfit for the Tenant's use: (a) the Landlord shall use reasonable endeavours to reinstate the Premises within a reasonable time; (b) rent shall abate proportionally to the extent the Premises cannot be used during the period of reinstatement; and (c) if the Premises are so substantially destroyed that reinstatement is impossible or takes more than 6 months, either party may terminate this Lease by not less than 30 days' written notice. The Tenant shall have no claim against the Landlord for loss of business, profits, or other consequential damages arising from damage or destruction to the Premises.
19.
GOVERNING LAW AND JURISDICTION
This Lease is governed by and construed in accordance with the laws of Victoria and, where applicable, the laws of the Commonwealth of Australia. The parties submit to the exclusive jurisdiction of the courts of Victoria for any dispute arising under or in connection with this Lease.
Entire Agreement: This Lease constitutes the entire agreement between the parties with respect to the Premises and supersedes all prior negotiations, representations, and understandings. Amendment: No amendment is valid unless in writing and signed by both parties. Severability: If any provision is found to be invalid or unenforceable, the remaining provisions continue in full force. Notices: All notices must be in writing and served personally, by express post, or by email with acknowledgment of receipt, to the addresses specified in this Lease. Electronic Execution: This Lease may be signed electronically; electronic signatures are valid under the Electronic Transactions Act 1999 (Cth) and state equivalents. Waiver: A party's failure to exercise a right does not constitute a waiver of that right.
Tenant is entitled to use of 2 allocated car park spaces in the building car park at no additional cost during the Term.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.
Thomas A. Reynolds
Director
Harbour Property Group Pty Ltd
Date: ____________________
Natalie J. Wong
Chief Executive Officer
Southern Ventures Pty Ltd
Date: ____________________