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"7.7 Lease arrangements
At most of the child care centre businesses owned by G8 or the subject of Acquisition Contracts, the centre land and buildings are (and will continue to be)leased from third parties. Each lease or proposed lease requires G8 to comply with various obligations including the payment of rent and other monies due. In the event of default by G8 under a lease, the landlord may terminate the lease if the default is not remedied. There is also no guarantee that leases will be renewed at the end of their term. Termination or expiry (particularly of key centre sites) could have an adverse effect on G8’s financial performance and operations."
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