Document:

exv4w23

 

Exhibit
4.23

James Hardie Industries N.V.

Australian Council of Trade Unions

Unions New South Wales

Bernard Douglas Banton

 

DEED OF RELEASE -

UNIONS AND BANTON

 

CONFORMED COPY

 

 

THIS
DEED is made on 21 December 2005 between:

	1.	 	James Hardie Industries N.V. ARBN 097 829 895 incorporated in the
Netherlands and with its Australian registered office at Level 3, 22
Pitt Street, Sydney (JHINV)
	 
	2.	 	Australian Council of Trade Unions of Level 2, 393 Swanston Street,
Melbourne in the State of Victoria (ACTU)
	 
	3.	 	Unions New South Wales, of 10th Floor, 377-383 Sussex Street, Sydney
in the State of New South Wales (Unions NSW)
	 
	4.	 	Bernard Douglas Banton of 133-7 Parramatta Road Granville, NSW, as the
authorised representative of the Asbestos Victims Groups named in
Schedule 1 to this Deed

RECITALS

	A.	 	This deed is entered into by the Parties described above in the following context (some of
the expressions used in these recitals being defined in clause 1 of this deed):

	 	(a)	 	in February 2004, the NSW Government established the Jackson Inquiry;
	 
	 	(b)	 	in September 2004, the Jackson Inquiry found that the MRCF was, and is,
underfunded in the sense that Amaca and Amaba, being two former subsidiaries of JHIL
which are now owned by MRCF, will not over time have sufficient funds and other assets
to meet their anticipated future liabilities:

	 	•	 	to sufferers of Asbestos disease as a result of exposure to Asbestos dust
and fibre in Australia whilst in their employ or from products manufactured by
Amaca or Amaba or otherwise from their Asbestos activities; and
	 
	 	•	 	to the relatives or estates of such sufferers,

	 	 	 	and associated costs and expense;

	 	(c)	 	in July 2004, JHINV had proposed to the Jackson Inquiry that, on certain
conditions, its directors would recommend that shareholders approve the provision of
additional funding to provide for the present and future liabilities of Amaca and Amaba
to such sufferers of Asbestos related disease;
	 
	 	(d)	 	the ABN 60 Foundation is the holding company of ABN 60, the former parent
company of the James Hardie group, which may be alleged to have Asbestos-
related personal injury liabilities arising from its own activities and from the

 

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	 	 	 	activities of Amaca and Amaba, and has (or had) payment obligations to Amaca and
Amaba under a deed of covenant and indemnity between them dated 16 February 2001;
	 
	 	(f)	 	the NSW Government requested the ACTU, Unions NSW and Banton to conduct
negotiations with JHINV in order to resolve the underfunding of the MRCF, and
subsequently the NSW Government also took part in those negotiations;
	 
	 	(g)	 	in those negotiations, the principal objective of the Initial Negotiating
Parties, for different reasons, was to achieve a binding agreement intended to ensure
that sufficient funding is made available by the JHINV Group to fully compensate, after
taking into account the existing assets of the Liable Entities, on an agreed basis, all
proven current and future Australian Asbestos personal injury and death Claimants
against the Liable Entities;
	 
	 	(h)	 	on 21 December 2004, the Initial Negotiating Parties entered into a non-binding
Heads of Agreement which set out the agreed position of the Initial Negotiating Parties
in relation to the principles on which the binding agreement would be based and the key
standing considerations relevant to implementing those principles to be reflected in
that binding agreement;
	 
	 	(i)	 	on or about the date of this deed, the NSW Government, JHINV and the Performing
Subsidiary entered into a deed (the “Final Funding Agreement”) which set out the agreed
position of those persons in relation to the basis on which, subject to the
satisfaction or waiver of the conditions set out in the Final Funding Agreement, JHINV
and/or the Performing Subsidiary will provide funding on a long-term basis to the Fund;
	 
	 	(j)	 	the JHINV Group has asserted that it has suffered damage to business operations
and sales from boycotts and other actions in relation to the distribution and sale of
its products in Australia and in other places throughout the world and is or was
subject to a number of threats relating to future action, and the JHINV Group has
sought to establish that its business operations and sales would no longer be affected
by those boycotts and other actions or the threat of them; and
	 
	 	(k)	 	the Fund is to be established under the laws of New South Wales as required
under clause 4.1 of the Heads of Agreement and it is a condition of the Final Funding
Agreement that the Trustee becomes a party to the Final Funding Agreement prior to the
Commencement Date.

	B.	 	The Parties enter into this deed to reflect:

	 	(a)	 	their formal and legally binding agreement in relation to the releases
described in clause 9.2 of the Heads of Agreement,
	 
	 	(b)	 	the agreed basis of further actions by the Parties in relation to the lifting
of boycotts, as anticipated in clause 16 of the Heads of Agreement; and
	 
	 	(c)	 	the agreed basis on which public statements may be made in relation to the
circumstances leading up to the signing of this Deed by the Parties and the Final
Funding Agreement by the parties thereto, consistent with the 

 

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	 	 	 	arrangements applicable
under clauses 16.1 and 19 of the Heads of Agreement.

THIS DEED WITNESSES that the parties agree to the following:

	1	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed and unless the context requires otherwise, terms defined in the
Principal Agreement bear their corresponding meaning and:
	 
	 	 	ABN 60 means ABN 60 Pty Limited (ABN 60 000 009 263).
	 
	 	 	ABN 60 Foundation means ABN 60 Foundation Pty Ltd (ACN 106 266 611).
	 
	 	 	Amaba means Amaba Pty Limited (ABN 98 000 387 342).
	 
	 	 	Amaca means Amaca Pty Limited (ABN 49 000 035 512).
	 
	 	 	Asbestos means the fibrous form of those mineral silicates that belong to the
serpentine or amphibole groups of rock-forming minerals, including actinolite, amosite
(brown asbestos), anthophyllite, chrysotile (white asbestos), crocidolite (blue asbestos)
and tremolite.
	 
	 	 	Asbestos Support Groups means each of The Asbestos Diseases Foundation of Australia,
Asbestos Diseases Society of Australia Inc, The Asbestos Victims Association of South
Australia, Queensland Asbestos Related Disease Support Society, Gippsland Asbestos Related
Disease Support Inc, and Asbestos Diseases Society of Victoria.
	 
	 	 	“Associated Person” means:

	 	(a)	 	in relation to the ACTU, each union affiliated to the ACTU and each of its
and their officers, members and employees;
	 
	 	(b)	 	in relation to Unions NSW, each union affiliated to Unions NSW and each of
it and their officers, members and employees;
	 
	 	(c)	 	in relation to Banton, each of the Asbestos Support Groups; and
	 
	 	(d)	 	in relation to JHINV or a Liable Entity, means each of its past and present
directors, officers, employees, agents or advisers.

	 	 	Banton means Bernard Douglas Banton of 133-7 Parramatta Road Granville, in the State
of New South Wales, as the designated representative of the Asbestos Support Groups.
	 
	 	 	Business Day means a day (not being a Saturday or a Sunday) on which banks are open
for general banking business in Sydney.
	 
	 	 	Civil Liability means any and all civil liability.
	 
	 	 	Commencement Date has the meaning given in the Final Funding Agreement.
	 
	 	 	Controlled Entity has the meaning given in the Final Funding Agreement.
	 
	 	 	Corporations Act means the Corporations Act 2001 (Cth).

 

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	 	 	Court means a court or tribunal in Australia having jurisdiction to hear and
determine common law personal injury and death claims arising from exposure to Asbestos.
	 
	 	 	Deeds of Covenant and Indemnity means:

	 	(a)	 	the deed of that name dated 16 February 2001 and entered into between JHIL,
Amaba and Amaca and any amendments thereto (including without limitation pursuant to
the amending deed dated 10 September 2001); and
	 
	 	(b)	 	the Deed of Covenant Indemnity and Access between JHINV and ABN 60 dated 31
March 2003 and any amendments thereto.

	 	 	Final Funding Agreement has the meaning given in Recital A(i).
	 
	 	 	Final Funding Agreement Date means the date on which the Final Funding Agreement is
executed by JHINV and the NSW Government.
	 
	 	 	Fund means the Trustee in its capacity as trustee of the Asbestos Injury Compensation
Foundation to be established pursuant to the Trust Deed.
	 
	 	 	Heads of Agreement means the non-binding agreement entered into on 21 December 2004
between the Initial Negotiating Parties.
	 
	 	 	Initial Negotiating Parties means each of JHINV, the NSW Government, the ACTU, Unions
NSW and Banton.
	 
	 	 	Jackson Inquiry means the inquiry referred to in paragraph (a) of recital A.
	 
	 	 	JHIL means the company formerly known as James Hardie Industries Limited (now ABN
60).
	 
	 	 	JHINV Group means JHINV and its Controlled Entities, excluding the Fund and any of
the Liable Entities, if they become such Controlled Entities.
	 
	 	 	“Jackson Inquiry” means the Special Commission of Inquiry into the Medical Research and
Compensation Foundation established by the NSW Government in February 2004.
	 
	 	 	Liable Entities means Amaca, Amaba and ABN 60.
	 
	 	 	“MRCF” means the Medical Research & Compensation Foundation (ABN 21 095 924 137).
	 
	 	 	Notice has the meaning given to it in clause 11.
	 
	 	 	Other Governments means each of the Australian government and the governments of the
states and territories of Australia other than the NSW Government.
	 
	 	 	Parties means the parties to this Deed.
	 
	 	 	Performing Subsidiary means LGTDD Pty Limited or any other subsidiary of JHINV
validly nominated under clause 6.2 of the Final Funding Agreement to perform the
obligations of the Performing Subsidiary under that deed.
	 
	 	 	Person includes any general partnership, limited partnership, corporation, limited
liability company, joint venture, trust, business trust, governmental agency, co-
operative, association, individual or other entity, and the heirs, executors,

 

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	 	 	administrators, legal representatives, successors and assigns of such a person as the
context may require.

	 	 	“Final Funding Agreement” means the deed of that name dated on or about the date of this
Deed, the initial parties to which are JHINV, the Performing Subsidiary and the NSW
Government.
	 
	 	 	“Released Claims” of a Person means any Civil Liability the Person has or may have arising
from or relating to:

	 	(i)	 	the underfunding of the MRCF; or
	 
	 	(ii)	 	the Jackson Inquiry; or
	 
	 	(iii)	 	all Relevant Matters; or
	 
	 	(iv)	 	any bans, boycotts or other action in place as a result of the
Relevant Matters on any products manufactured, distributed or sold by any
member of the JHINV Group, save that no ban, boycott or any other action shall
comprise a Released Claim to the extent it:

	 	(A)	 	is new or is put into place after the Final
Funding Agreement Date; or
	 
	 	(B)	 	persists or continues in place on or after 1 January 2006.

	 	 	“Released Party” means the ACTU, Unions NSW and Banton.
	 
	 	 	“Relevant Matters” means all matters in connection with:

	 	(a)	 	the establishment and any underfunding or funding of the MRCF and the
February 2001 ABN 60 group corporate reorganisation (including, without limitation,
the transfer of the Liable Entities out of the group, representations made to
incoming directors of the Liable Entities and other third parties regarding the
Liable Entities and their assets and liabilities, the media releases of ABN 60 of 16
February 2001 and of JHINV of 29 and 30 October 2003 and any statements made in
relation to any of the foregoing matters);
	 
	 	(b)	 	the Deeds of Covenant and Indemnity;
	 
	 	(c)	 	the transfers of assets, and the dividends and management fees paid, by the
Liable Entities as described in the report of the Jackson Commission;
	 
	 	(d)	 	the August to October 2001 ABN 60 group corporate reorganisation (including
without limitation the scheme of arrangement in relation to ABN 60 of August to
October 2001, the contemporaneous reduction of capital of (and cancellation of fully
paid ordinary shares in) ABN 60 and subscription by JHINV for partly paid shares in
ABN 60, the subsequent cancellation of those partly paid shares in ABN 60 in March
and April 2003 and representations to third parties and the court) any statements
made by any person in relation to any of the foregoing matters;

 

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	 	(e)	 	the transfer of assets from ABN 60 to JHINV, the establishment of the ABN
60 Foundation Limited and ABN 60 Foundation Trust, and the allotment of fully paid
shares in ABN 60 to ABN 60 Foundation Limited. (f).

	 	 	Trust Deed means the trust deed for the Fund.
	 
	1.2	 	Trustee means the trustee of the Fund from time to time, initially being Asbestos Injuries
Compensation Fund Limited.
	 
	1.3	 	Interpretation
	 
	 	 	In this Deed, unless the context otherwise requires:

	 	(a)	 	headings are for convenience only and do not affect the interpretation of
this agreement;
	 
	 	(b)	 	words importing the singular include the plural and vice versa;
	 
	 	(c)	 	words importing a gender include any gender;
	 
	 	(d)	 	other parts of speech and grammatical forms of a word or phrase defined in
this agreement have a corresponding meaning;
	 
	 	(e)	 	an expression importing a natural person includes any company, partnership,
joint venture, association, corporation or other body corporate and vice versa;
	 
	 	(f)	 	a reference to any thing (including, but not limited to, any right)
includes a part of that thing;
	 
	 	(g)	 	a reference to a party to a document includes that party’s successors and
permitted assigns;
	 
	 	(h)	 	a reference to a statute, regulation, proclamation, ordinance or by-law
includes all statutes, regulations, proclamations, ordinances or by-laws varying,
consolidating or replacing it, and a reference to a statute includes all regulations,
proclamations, ordinances and by-laws issued under that statute; and
	 
	 	(i)	 	a reference to a document or agreement includes all amendments or
supplements to, or replacements or novations of, that document or agreement.

	2	 	RELEASE BY JHINV AND THE LIABLE ENTITIES
	 
	2.1	 	With effect from the Final Funding Agreement Date, JHINV hereby frees, releases and
discharges each Released Party and each Associated Person of each Released Party from all
Released Claims and shall procure to the extent it is able to that each of its Associated
Persons release each of the Released Parties and each Associated Person from all Released
Claims.
	 
	2.2	 	The parties acknowledge that the Released Parties hold the benefit of the releases in favour
of each Associated Person of each Released Party set out in clause 2.1 on trust for that
Associated Person.

 

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	2.3	 	Nothing in this Deed can be taken as an admission by any of the Released Parties that it or
he has had any role in organising or procuring any unlawful action.
	 
	2.4	 	The Parties agree that the Liable Entities may, by executing a deed of accession, agree to
provide releases in favour of the Released Persons having the same scope as those given by
JHINV under this deed.
	 
	2.5	 	In consideration for the releases described in clause 2.1:

	 	(a)	 	the ACTU agrees, if requested by JHINV, that it will:

	 	(i)	 	write to persons persisting in bans or boycotts with respect to
JHINV’s products requesting that such bans or boycotts be lifted;
	 
	 	(ii)	 	participate in discussions with JHINV and such persons to seek
the lifting of such bans or boycotts;

	 	(b)	 	Unions NSW agrees, if requested by JHINV, that it will:

	 	(i)	 	write to persons persisting in bans or boycotts in New South
Wales with respect to JHINV’s products requesting that such bans or boycotts be
lifted;
	 
	 	(ii)	 	participate in discussions with JHINV and such persons to seek
the lifting of such bans or boycotts

	2.6	 	The obligations in clause 2.5 will not apply while the release from civil liability
applicable to JHINV and certain related persons of JHINV (as contemplated in the Final Funding
Agreement) have been validly suspended.
	 
	3	 	BOYCOTTS
	 
	3.1	 	From the Final Funding Agreement Date, each of the ACTU, Unions NSW and Banton agrees to use
its or his best endeavours to achieve forthwith the lifting of all bans or boycotts on any
products manufactured, produced or sold by any member of the JHINV Group.
	 
	3.2	 	Subject to clause 3.4, the obligation of each of the ACTU, Unions NSW and Banton shall be a
continuing obligation whilever any bans or boycotts remain in place.
	 
	3.3	 	It is agreed that the endeavours required of the ACTU, Unions NSW and Banton under this
clause 3 will be limited by the extent to which individuals and organisations which may have
imposed those bans or boycotts can be influenced by ACTU, Unions NSW or Banton using their
best endeavours to achieve the lifting of such bans or boycotts.
	 
	3.4	 	The obligations of the ACTU, Unions NSW and Banton under this clause 3 shall be suspended
during any period in which JHINV is in breach of its obligations under the Final Funding
Agreement and that breach has not been remedied.
	 
	3.5	 	Nothing in this Deed is intended to or does constrain the rights of the ACTU and Unions NSW
or any of their Associated Persons to act in a way which is otherwise lawful.

 

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	4	 	CONFIDENTIALITY
	 
	4.1	 	Subject to clause 4.2, each party shall keep the terms of this Deed confidential.
	 
	4.2	 	A party may make any disclosures in relation to this Deed as set out in the Annexure or as
necessary to:

	 	(a)	 	its related bodies corporate, professional advisors, bankers, financial
advisors and financiers, if those persons undertake to keep the information disclosed
confidential;
	 
	 	(b)	 	comply with any applicable law or requirement of any regulatory body
(including any relevant stock exchange) or to comply with the terms of the Final
Funding Agreement;
	 
	 	(c)	 	any of its employees to whom it is necessary to disclose the information,
on receipt of an undertaking from that employee to keep the information confidential;
or
	 
	 	(d)	 	to gain necessary approvals for the purpose of entering into this deed
provided that for any disclosure other than those described in paragraphs (a) to (c)
above, the recipient is informed at the time of such disclosure that confidentiality
restraints apply in relation to the information disclosed; or
	 
	 	(e)	 	on and from the time James Hardie has publicly released an explanatory
memorandum in relation to the proposal set out in the Final Funding Agreement, to any
of its Associated Persons to whom it is necessary to disclose the information, on
receipt of an undertaking from that Associated Person to keep the information
confidential.

	5	 	DEED MAY BE USED IN COURT

Except in relation to a breach of this Deed and the continuing obligations of the parties pursuant
to this Deed, this Deed may be pleaded as a full and complete defence by any party to any actions,
suits, or proceedings commenced, continued or taken by another party or on its behalf in connection
with any of the matters referred to this Deed.

	6	 	GOVERNING LAW

This Deed shall be construed in accordance with and be governed by the laws of the State of New
South Wales and the parties agree that the court system of that State will be forum of choice in
relation to this Deed.

	7	 	ENTRY INTO DEED

The parties acknowledge that this Deed is voluntarily entered into and that each party has obtained
their own legal advice concerning its terms.

	8	 	SEVERANCE

If any provision of this Deed is held to be invalid or unenforceable for any reason, it will, to
the extent that it is invalid or unenforceable, be treated as severed from this Deed and will not
affect the remaining provisions of this Deed.

 

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	9	 	VARIATION OF DEED

This Deed may only be varied or replaced by a deed duly executed by each of the parties.

	10	 	COUNTERPARTS

This Deed may be executed in any number of counterparts and all counterparts, taken together,
constitute one instrument. A party may execute this Deed by executing any counterpart.

	11	 	NOTICES
	 
	11.1	 	A notice, approval, consent, nomination or other communication (Notice) to a person relating
to this deed:

	 	(i)	 	must state that it is a notice relating to this deed;
	 
	 	(ii)	 	shall state the relevant clause in this deed to which the notice relates,
provided that any such failure to comply with this requirement shall not affect the
validity of any such notice;
	 
	 	(iii)	 	must be in legible writing; and
	 
	 	(iv)	 	must be in English.

	11.2	 	If the Notice is to either or both of JHINV and/or the Performing Subsidiary then it must be
addressed as follows:

	 	 	 	 	 
	 

	 	Name:
	 	James Hardie Industries NV
	 
	 	 	 	 
	 

	 	Attention:
	 	The Chairman and The Chief Financial Officer
	 
	 	 	 	 
	 

	 	Address:
	 	Level 3, 20 Pitt Street, Sydney NSW 2000
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+ 61 2 8274 5218

	11.3	 	If the Notice is to the NSW Government then it must be addressed as follows:

	 	 	 	 	 
	 

	 	Name:
	 	The State of New South Wales, c/- The Cabinet Office
	 
	 	 	 	 
	 

	 	Attention:
	 	Deputy Director-General (Legal)
	 
	 	 	 	 
	 

	 	Address:
	 	Level 39, Governor Macquarie Tower, Farrer Place, Sydney, NSW 2000
	 
	 	 	 	 
	 

	 	Facsimile:
	 	+61 2 9228 3062

	 	 	with copies to, if the NSW Government has appointed a Director or any Directors, to each
such Director as notified to the Trustee from time to time by such Director.
	 
	11.4	 	If the Notice is to the ACTU then it must be addressed as follows:

	 	 	 	 	 
	 

	 	Name:
	 	Australian Council of Trade Unions
	 
	 	 	 	 
	 

	 	Attention:
	 	The Secretary

 

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	 	Address:
	 	Level 2, 393 Swanston St, Melbourne, Victoria 3000
	 
	 	 	 	 
	 

	 	Facsimile:
	 	03 9663 8220

	11.5	 	If the Notice is to Unions NSW then it must be addressed as follows:

	 	 	 	 	 
	 

	 	Name:
	 	Unions NSW
	 
	 	 	 	 
	 

	 	Attention:
	 	The Secretary
	 
	 	 	 	 
	 

	 	Address:
	 	10th Floor, 377 – 388 Sussex St, Sydney, 2000
	 
	 	 	 	 
	 

	 	Facsimile:
	 	02 9261 305

	11.6	 	If the Notice is from a corporation then an officer of that corporation must sign the Notice.
	 
	11.7	 	Notice is sent by the sender and received by the receiver:

	 	(i)	 	if the Notice is hand delivered, upon delivery to the receiving Party;
	 
	 	(ii)	 	if the Notice is sent by facsimile, upon the successful completion of the
relevant transmission;
	 
	 	(iii)	 	if the Notice is sent by registered mail within Australia, 2 Business Days
after the registration of the notice of posting; and
	 
	 	(iv)	 	if the Notice is sent by ordinary mail within Australia, 3 Business Days
from and including the date of postage.

	11.8	 	For the avoidance of doubt, Notice shall not be sent by electronic email.
	 
	11.9	 	In this clause 11, a reference to a Party receiving a Notice includes a reference to the
receiver’s officers, agents or employees.
	 
	11.10	 	A Party may vary any of the details relating to it contained in this clause 11 at any time
by Notice to the other Parties.
	 
	11.11	 	Where a Notice to a Party must be copied to another Person, each such Notice must be
despatched on the same day (but any failure to comply with this clause 11.11 shall not affect
the validity of any such Notices).
	 
	11.12	 	Court action shall not be commenced by any party to the Deed with respect to any alleged
breach of this Deed until 10 Business Days have elapsed after the giving of Notice to each of
the ACTU and Unions NSW containing particulars of the alleged breach and an invitation to
rectify the breach.

 

EXECUTED by the parties as a Deed:

EXECUTED by

JAMES HARDIE INDUSTRIES NV

	 	 	 	 	 	 	 	 	 
	/s/
Russell Chenu

	 	 	)	 	 	/s/ Benjamin Butterfield	 	 
	  

Signature
of Director

	 	 	)	 	 	  

Signature
of Director/Secretary
	 	 
	 
	 	 	 	 	 	 	 	 
	Russell
Chenu
	 	 	 	 	 	Benjamin Butterfield	 	 
	 

Name of Director

	 	 	 	 	 	 

Name of Director/Secretary
	 	 

	 	 	 	 	 	 	 	 	 
	EXECUTED on behalf of	 	 
	THE AUSTRALIAN COUNCIL OF TRADE UNIONS by:	 	 
	(ACN 008 394 509):	 	 
	/s/ K J Fowlie

	 	 	)	 	 	/s/ Gregory Combet	 	 
	  

Signature
of witness

	 	 	)	 	 	  

Signature
of Secretary
	 	 
	K J FOWLIE

	 	 	 	 	 	GREGORY COMBET	 	 
	 
	 	 	 	 	 	 	 	 
	 

Name of witness

	 	 	 	 	 	 

Name of Secretary
	 	 

	 	 	 	 	 	 	 	 	 
	EXECUTED on behalf of	 	 
	UNIONS NEW SOUTH WALES by:	 	 
	(ACN 008 394 509):	 	 
	/s/ K J Fowlie

	 	 	)	 	 	/s/ Mark Lennon	 	 
	  

Signature
of witness

	 	 	)	 	 	  

Signature
of Assistant Secretary
	 	 
	K J FOWLIE

	 	 	 	 	 	MARK LENNON	 	 
	 
	 	 	 	 	 	 	 	 
	 

Name of witness

	 	 	 	 	 	 

Name of Assistant Secretary
	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by	 	 
	BERNARD DOUGLAS BANTON	 	 
	in the presence of:	 	 
	/s/ Kwan Cui

	 	 	 	 	 	/s/ Bernie Banton	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness

	 	 	 	 	 	 

Bernie Banton
	 	 
	KWAN CUI
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Nameexv4w24

 

Exhibit
4.24

DATED 8 JUNE 2006

Asbestos Injuries Compensation Fund Limited in its capacity as trustee for the

Asbestos Injuries Compensation Fund

as the Beneficiary

and

The State of New South Wales Government

and

James Hardie Industries N.V.

as the Guarantor

 

PARENT GUARANTEE

 

CONFORMED COPY

 

 

THIS PARENT GUARANTEE is made on 8 June 2006 in Sydney, New South Wales

BETWEEN:

	(1)	 	Asbestos Injuries Compensation Fund Limited (ACN 117 363 461, a company limited by guarantee
incorporated under the laws of the State of New South Wales, Australia, having its registered
office at Level 3, 22 Pitt Street Sydney New South Wales, in its capacity as trustee for the
Asbestos Injuries Compensation Fund, a trust established by way of trust deed dated 7 April
2006 (the “Fund Trustee”), duly represented by Peter Baker and Joanne Marchione;

and

	(2)	 	The State of New
South Wales, Level
39, Governor
Macquarie Tower,
Farrer Place,
Sydney NSW 2000,
Australia (the “NSW
Government”), duly
represented by;

and

	(3)	 	James Hardie Industries N.V., a company incorporated under the laws of the Netherlands, with
its corporate seat in Amsterdam, the Netherlands, registered with the trade register of the
Chamber of Commerce with number 34106455 (the “Guarantor”), duly represented by Meredith
Hellicar and Russell Chenu.

The aforementioned parties also collectively referred to as the “Parties” or individually as the
“Party”.

RECITALS:

	(1)	 	The NSW Government, LGTDD Pty Ltd and the Guarantor are parties to a Final Funding Agreement
dated 1 December 2005 (the “Final Funding Agreement”).
	 
	(2)	 	The Fund Trustee has become a party to the Final Funding Agreement by executing a Deed of
Accession on or about the date of this deed.
	 
	(3)	 	Pursuant to Clause 10 of the Final Funding Agreement, the Guarantor has agreed to deliver
this Guarantee to the Fund Trustee and the NSW Government.
	 
	(4)	 	The NSW Government is not a creditor of the Guarantor in relation to the payment of the
Guaranteed Obligations.

IT IS AGREED AS FOLLOWS:

	1.	 	INTERPRETATION
	 
	 	 	Capitalised terms shall be used herein as such terms are defined in the Final Funding
Agreement (and such terms will be interpreted in accordance with the

 

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	 	 	laws of New South Wales, Australia, being the governing law of the Final Funding Agreement),
unless defined otherwise in this Guarantee; and
	 
	 	 	"Guarantee” means this guarantee; and
	 
	 	 	"Guaranteed Obligations” means any of the payment obligations of the Performing Subsidiary
to the Fund Trustee under the Final Funding Agreement, including the obligation to pay the
Wind-Up or Reconstruction Amount, and “Guaranteed Obligation” means any one such payment
obligation. Where the Performing Subsidiary would have been liable to make a payment under
the Final Funding Agreement but for the Liquidation or Insolvency of the Performing
Subsidiary or the occurrence of a Wind-up Event or Reconstruction Event in respect of the
Performing Subsidiary, it will be taken still to be liable for the purposes of this
Guarantee.
	 
	2.	 	GUARANTEE
	 
	2.1	 	The Guarantor hereby irrevocably and unconditionally:

	 	(a)	 	guarantees to the Fund Trustee the due and punctual performance by the
Performing Subsidiary of the Guaranteed Obligations;
	 
	 	(b)	 	guarantees to the Fund Trustee that, whenever the Performing Subsidiary does
not pay any amount due under any of its Guaranteed Obligations, the Guarantor shall
immediately on first written demand by the Fund Trustee pay that amount to the Fund
Trustee, as if it were the principal obligor thereof; and
	 
	 	(c)	 	guarantees to the Fund Trustee that it shall immediately on first written
demand by or on behalf of the Fund Trustee pay to the Fund Trustee, all costs and
expenses incurred by the Fund Trustee in relation to the protection or enforcement of
its rights under this Guarantee and all costs and damages incurred by the Fund Trustee
as a result of the Performing Subsidiary not fulfilling one or more of the Guaranteed
Obligations when due.

	2.2	 	The obligations of the Guarantor pursuant to Clause 2.1 shall be continuing obligations and
extend to all sums payable by the Performing Subsidiary under the Guaranteed Obligations. The
obligations of the Guarantor pursuant to Clause 2.1 shall remain in full force and effect
until all the Guaranteed Obligations shall have been paid, satisfied or discharged in full.
Termination of this Guarantee is only allowed if and when the Final Funding Agreement is
terminated (otherwise than due to breach or default by the Guarantor or the Performing
Subsidiary) and the Performing Subsidiary has fully discharged all of the Guaranteed
Obligations. The obligations of the Guarantor shall remain in full force in the event that the
Performing Subsidiary is replaced by another subsidiary of the Guarantor in accordance with
clause 6.2 of the Final Funding Agreement or in the events described in Clause 2.1(d).

 

3

	2.3	 	This Guarantee is a guarantee of performance of the Guaranteed Obligations by payment of all
amounts that are the subject of the Guaranteed Obligations when due and payable.
	 
	2.4	 	This Guarantee is not a contract of surety (borgtocht). The obligations of the Guarantor
hereunder are independent of the obligations of the Performing Subsidiary and the obligations
of any other guarantor of the obligations of the Performing Subsidiary under the Final Funding
Agreement.
	 
	2.5	 	Payment by the Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no
way limit, affect, modify, abridge or extinguish the Guarantor’s liability for any portion of
the Guaranteed Obligations which has not been paid. Without limiting the generality of the
foregoing, if the Fund Trustee is awarded a judgment in any proceedings brought to enforce the
Guarantor’s obligations to pay a portion of the Guaranteed Obligations, such judgment shall
not be deemed to release the Guarantor from its obligation to pay the portion of the
Guaranteed Obligations that is not the subject of such proceedings, and such judgment shall
not, except to the extent satisfied by the Guarantor, limit, affect, modify, abridge or
extinguish any part of the Guarantor’s liability in respect of the Guaranteed Obligations.
	 
	2.6	 	This Guarantee is independent of, in addition to and shall not prejudice or affect or be
prejudiced or be affected by any other right, remedy, guarantee, indemnity or security and may
be enforced without first having recourse to the same or any other mortgage, charge, pledge or
lien now or hereafter held by or available to the Fund Trustee and/or the NSW Government.
	 
	2.7	 	If any discharge (whether in respect of the Guaranteed Obligations or any security for those
obligations or otherwise) or arrangement is made in whole or in part on the faith of any
payment, security or other disposition by the Performing Subsidiary or the Guarantor which is
subsequently avoided or which must be restored (without limitation) on bankruptcy,
liquidation, moratorium of payment or otherwise, the liability of the Guarantor will continue
or be reinstated as if the discharge or arrangement had not occurred. This clause 2.7 survives
the discharge of this Deed.
	 
	2.8	 	Unless and until all the Guaranteed Obligations have been satisfied or discharged in full,
the Guarantor shall not, after a claim has been made or by virtue of any payment or
performance under this Guarantee, in respect of any payment made to the Fund Trustee and/or
the NSW Government:

	 	(a)	 	exercise any right of subrogation in respect of or claim to be subrogated to
any rights, security or moneys held, received or receivable by the Fund Trustee;
	 
	 	(b)	 	exercise against or claim from the Performing Subsidiary any right of
contribution or recourse;
	 
	 	(c)	 	claim as a creditor of the Performing Subsidiary in competition with the Fund
Trustee; or

 

4

	 	(d)	 	have the benefit of or take any action to receive or claim any payment,
distribution or security in respect of the Guaranteed Obligations or amounts payable
under this Guarantee from or on account of the Performing Subsidiary, or exercise any
right of set-off as against the Performing Subsidiary (and the Guarantor waives any
right it would otherwise have to have the benefit of or receive or claim any such
payment, distribution or security or to exercise any such right of set-off).

	2.9	 	This Guarantee will not be discharged or otherwise affected as security for the Guaranteed
Obligations as a result of any of the following:

	 	(a)	 	bankruptcy, moratorium of payment, winding-up, reconstruction, liquidation or
similar proceedings relative to the Performing Subsidiary;
	 
	 	(b)	 	any change in the status, function, control or ownership of the Performing
Subsidiary;
	 
	 	(c)	 	any extension of time or other forbearance being granted or agreed to be
granted to the Performing Subsidiary in respect of its Guaranteed Obligations;
	 
	 	(d)	 	any amendment to, or any increase, variation, waiver or release of, any of the
Guaranteed Obligations or any termination, amendment or variation of the Final Funding
Agreement (and any reference herein to the Final Funding Agreement shall be taken as
referring to the Final Funding Agreement as amended or varied from time to time);
	 
	 	(e)	 	the taking, variation, compromise, exchange, substitution, renewal or release
of, or refusal or neglect to perfect, take up or enforce, any rights or remedies
against, or security over assets of the Performing Subsidiary or any other person, or
any non-presentment or non-observance of any formality or other requirement in respect
of any instruments or any failure to realise the full value of any security;
	 
	 	(f)	 	any present or future guarantee, indemnity, mortgage, charge, pledge, lien or
other security or right or remedy held by or available to the Fund Trustee being or
becoming wholly or in part void, voidable or unenforceable on any ground whatsoever; or
	 
	 	(g)	 	any other act, event or omission (other than performance by the Guarantor of
this Guarantee) which, but for this clause might operate to discharge, extinguish,
impair or otherwise affect any of the obligations of the Guarantor contained herein or
any of the rights, powers or remedies conferred in respect of the Guarantor upon the
Fund Trustee and/or the NSW Government by this Guarantee or by law.

	3.	 	ENFORCEMENT
	 
	3.1	 	The Fund Trustee may enforce this Guarantee only upon the occurrence of (i) a breach of any
Guaranteed Obligation by the Performing Subsidiary; (ii) a

 

5

	 	 	Wind-Up Event; or (iii) a Reconstruction Event, in accordance with and subject to clause 10
of the Final Funding Agreement.
	 
	3.2	 	A claim under this Guarantee in respect of the obligation of the Performing Subsidiary to
make Annual Payments (and/or instalments thereof) under clause 9 of the Final Funding
Agreement, can only be made if the Performing Subsidiary has been in default (verzuim) for a
period of 40 days from the date when such Annual Payment (or any instalment thereof) was due,
provided that:

	 	(a)	 	the Performing Subsidiary or the Guarantor has immediately provided to the NSW
Government reasons for the default and such reasons are reasonable in the circumstances
(for example and without limitation, that the Guarantor is experiencing temporary cash
flow difficulties and is seeking to rectify that difficulty); and
	 
	 	(b)	 	the Guarantor has promptly after that due date entered into and continued to
pursue or been ready, willing and able to enter into and pursue discussions with the
NSW Government and (if available) the Fund Trustee to remedy the breach and provides to
the Fund Trustee and NSW Government material particulars of the breach and the proposed
remedy or remedies;
	 
	 	(c)	 	the Guarantor is not and does not become Insolvent at any time during that
period; and
	 
	 	(d)	 	subject to clause 10 of the Final Funding Agreement, a Reconstruction Event
does not occur at any time during that period,

	 	 	provided that such period shall automatically expire upon any of the requirements in
paragraphs (a) to (d) inclusive (“Moratorium Requirements”) ceasing to be satisfied.
	 
	 	 	If the Moratorium Requirements remain satisfied at the expiry of the above 40 day period and
if in the opinion of the NSW Government (acting reasonably) there is a reasonable prospect
of the Guarantor or the Performing Subsidiary paying the outstanding amount within a further
period of 50 days, the initial 40 day period shall be extended once by a further 50 days,
save that such period shall automatically expire upon any of the Moratorium Requirements
ceasing to be satisfied.
	 
	3.3	 	Without prejudice to clause 3.2 above, the Fund Trustee shall not be obliged before bringing
a claim under this Guarantee:

	 	(a)	 	to take any action against the Performing Subsidiary or to obtain judgment in
any court against the Performing Subsidiary or any other person;
	 
	 	(b)	 	to file any claim in a bankruptcy, moratorium of payment, winding-up,
liquidation or similar proceedings relative to the Performing Subsidiary or any other
person; or

 

6

	 	(c)	 	to make, enforce or seek to enforce any claim against the Performing Subsidiary
or any other person under any agreement or arrangement.

	3.4	 	The restrictions to the enforcement of the Guarantee as set out in clause 3.2 of this
Guarantee do not apply in respect of claims under or in relation to the Guarantee brought by
the Fund Trustee in summary proceedings (kort geding) or other proceedings to obtain urgent
interlocutory Court relief.
	 
	3.5	 	The Guarantor waives any and all rights of set off (verrekening), counterclaim or suspension
(opschorting) it may have at any time with respect to amounts payable hereunder against
amounts owed to it by the Fund Trustee.
	 
	3.6	 	The Guarantor waives to the fullest extent allowed by the laws of the Netherlands all rights,
privileges, defences and exceptions pursuant to the Articles 6:139, 7:852, 853, 854, 855 and
856 of the Dutch Civil Code.
	 
	3.7	 	To the extent permitted by law the Guarantor hereby waives, for the benefit of the Fund
Trustee and the NSW Government:

	 	(a)	 	any right to require the Fund Trustee and/or the NSW Government, as a condition
of payment or performance by the Guarantor, to:

	 	(i)	 	proceed against or exhaust any security held from the
Performing Subsidiary, any other guarantor or any other Person,
	 
	 	(ii)	 	proceed against or have resort to any balance of any credit on
the books of the Fund Trustee and/or the NSW Government in favour of the
Performing Subsidiary or any other Person, or
	 
	 	(iii)	 	pursue any other remedy in the power of the Guarantee Trustee
and/or the NSW Government whatsoever;

	 	(b)	 	any defence arising by reason of the incapacity, lack of authority or any
disability or other defence of the Performing Subsidiary or any other guarantor,
including any defence based on or arising out of the lack of validity or the
unenforceability of the Guaranteed Obligations or any agreement or instrument relating
thereto or by reason of the cessation of the liability of the Performing Subsidiary or
any other guarantor from any cause other than payment in full of the Guaranteed
Obligations;
	 
	 	(c)	 	any defence based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in other respects more
burdensome than that of the principal;
	 
	 	(d)	 	 

	 	(i)	 	any principles or provisions of law, statutory or otherwise,
which are or might be in conflict with the terms hereof and any discharge of
the Guarantor’s obligations hereunder;

 

7

	 	(ii)	 	the benefit of any statute of limitations affecting the
Guarantor’s liability hereunder or the enforcement hereof, and
	 
	 	(iii)	 	promptness, diligence and any requirement that the Fund
Trustee and/or the NSW Government protect, secure, perfect or insure any
security interest or lien or any property subject thereto;

	 	(e)	 	notices, demands, presentments, protests, notices of protest, notices of
dishonour and notices of any action or inaction, including acceptance hereof, notices
of default hereunder, the Final Funding Agreement, any other Related Agreement or any
agreement or instrument related thereto, notices of any renewal, extension or
modification of the Guaranteed Obligations or any agreement related thereto, notices of
any extension of credit to the Performing Subsidiary and any right to consent to any
thereof; and
	 
	 	(f)	 	any defences or benefits that may be derived from or afforded by law which
limit the liability of or exonerate guarantors or sureties, or which may conflict with
the terms hereof.

	4.	 	REPRESENTATIONS AND WARRANTIES
	 
	4.1	 	The Guarantor warrants that the following is true, accurate and not misleading as of the date
of this Guarantee and will at all times after the date of this Guarantee up to and including
the Commencement Date be true, accurate and not misleading:

	 	(a)	 	The Guarantor has been duly incorporated and is validly existing under the laws
of its jurisdiction and has the necessary corporate capacity and power to enter into
the Guarantee and to perform its obligations under the Guarantee.
	 
	 	(b)	 	All corporate and other action required to be taken by the Guarantor to
authorise the execution of the Guarantee and the performance of its obligations under
the Guarantee has been duly taken.
	 
	 	(c)	 	The Guarantee has been duly executed on behalf of the Guarantor and constitutes
legal, valid and binding obligations of the Guarantor, enforceable in accordance with
their terms subject to the terms of the opinion from De Brauw Blackstone Westbroek
referred to in schedule 5 of the Final Funding Agreement.
	 
	 	(d)	 	The execution and performance of the Guarantee do not conflict with or result
in a breach of any provision of the articles of association of the Guarantor, including
but not limited to its corporate purpose, or any provision of any applicable law in
force on the date of this Guarantee or any agreement to which the Guarantor is a party.
	 
	 	(e)	 	No approval, consent, license or notice to any regulatory or governmental body
(other than such approvals, consents, licenses or

 

8

	 	 	 	notices as have been obtained or given) is necessary to ensure the validity,
enforceability or performance of the obligations of the Guarantor under the
Guarantee.

	5.	 	NOTICES
	 
	5.1	 	All notices, consents, waivers and other communications under this Guarantee must be in
writing in English and delivered by hand or sent by regular mail, registered mail, express
courier, facsimile or e-mail to the appropriate addresses and facsimile numbers set out below
or to such address and facsimile number as a Party may notify to the other Party from time to
time. A notice shall be effective upon receipt and shall be deemed to have been received at
the time of delivery (if delivered by hand, registered mail or express courier) or at the time
of successful transmission (if delivered by fax or e-mail).

	 	 	 	 	 
	 	 	To the Fund Trustee:
	 
	 	 	 	 
	 

	 	Name:
	 	Asbestos Injuries Compensation Fund Limited
	 
	 	 	 	 
	 

	 	Address:
	 	Level 3, 18-22 Pitt Street Sydney New South Wales
	 
	 	 	 	 
	 

	 	Fax number:
	 	+612 8274 5217
	 
	 	 	 	 
	 

	 	Attention:
	 	The Chairman
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	To the NSW Government:
	 
	 	 	 	 
	 

	 	Name:
	 	The State of New South Wales, c/- The Cabinet Office
	 
	 	 	 	 
	 

	 	Address:
	 	Level 39, Governor Macquarie Tower, Farrer Place, Sydney, NSW 2000
	 
	 	 	 	 
	 

	 	Fax number:
	 	+ 61 2 9228 3062
	 
	 	 	 	 
	 

	 	Attention:
	 	Deputy Director-General (Legal)
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	To the Guarantor:
	 
	 	 	 	 
	 

	 	Name:
	 	James Hardie Industries NV
	 
	 	 	 	 
	 

	 	Addresses:
	 	Atrium, 8th floor, Strawinskylaan 3077, 1077ZX Amsterdam, The Netherlands
	 
	 	 	 	 
	 

	 	 	 	Level 3, 20 Pitt Street, Sydney NSW 2000
	 
	 	 	 	 
	 

	 	Fax number:
	 	+ 61 2 8274 5218
	 
	 	 	 	 
	 

	 	Attention:
	 	The Chairman and the Chief Financial Officer

 

9

	6.	 	NSW GOVERNMENT’S RIGHT TO ENFORCE
	 
	6.1	 	The parties agree and acknowledge that clause 16.6 of the Final Funding Agreement provides
that the NSW Government shall be entitled directly to enforce all promises made by the
Guarantor to the Fund Trustee under this Guarantee to the full extent permitted by law on and
subject to the terms of clause 16.6 of the Final Funding Agreement.
	 
	6.2	 	Any person (including, but not limited to, a firm, body corporate, unincorporated
association, court or authority) who deals with the NSW Government in good faith in relation
to this Guarantee may, without enquiry, assume that the NSW Government has complied with
clause 16.6 of the Final Funding Agreement unless the contrary is proved.
	 
	6.3	 	The parties agree and acknowledge that:

	 	(a)	 	the Guarantee is a Related Agreement under the Final Funding Agreement;
	 
	 	(b)	 	under an Irrevocable Power of Attorney, a copy of which is attached as Annexure
A to this Guarantee, and in addition to its rights under clause 6.1 of this Guarantee,
the NSW Government shall have the power directly to enforce as an attorney of the Fund
Trustee under the Irrevocable Power of Attorney and on behalf of the Fund Trustee all
promises made by the Guarantor to the Fund Trustee under this Guarantee, subject to to
the terms of clause 16.6 of the Final Funding Agreement;
	 
	 	(c)	 	under the Final Funding Agreement, the NSW Government and the Fund Trustee
covenanted that they will not amend or replace that Irrevocable Power of Attorney
without the prior written consent of the Guarantor, not to be unreasonably withheld;
and
	 
	 	(d)	 	any actions taken by the NSW Government under that Irrevocable Power of
Attorney in respect of this Guarantee are valid and binding to the extent such actions
are made in accordance with that Irrevocable Power of Attorney.

	6.4	 	On the legal relationship of the Beneficiary and the NSW Government vis-à-vis the Guarantor,
article 6:16 of the Dutch Civil Code does not apply.
	 
	7.	 	CHOICE OF LAW AND JURISDICTION
	 
	 	 	This Guarantee is governed by the laws of the Netherlands, with the exception of the
Netherlands private international law. Any dispute arising out of or in connection with
this Guarantee shall be exclusively decided by the competent court in Amsterdam.
	 
	8.	 	COUNTERPARTS
	 
	 	 	This Guarantee may be executed in any number of counterparts. All counterparts together
will be taken to be one instrument.

 

10

Thus agreed and signed in Sydney on 8 June 2006.

	 	 	 	 	 	 	 	 	 
	Signed for Asbestos Injuries

	 	 	)	 	 	 	 	 
	Compensation Fund Limited by

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Peter Baker
 

Name: Peter Baker

	 	 	 	 	 	/s/ Joanne Marchione
 

Name: Joanne Marchione
	 	 
	Director / Secretary

	 	 	 	 	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by Meredith Hellicar

	 	 	)	 	 	 	 	 
	and Russell Chenu for James

	 	 	)	 	 	 	 	 
	Hardie Industries N.V.

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Meredith Hellicar
 

Meredith Hellicar

	 	 	 	 	 	/s/ Russell Chenu
 

Name: Russell Chenu
	 	 
	Chairman

	 	 	 	 	 	Director	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by Robert John Debus MP

	 	 	)	 	 	 	 	 
	for the State of New South Wales

	 	 	)	 	 	 	 	 
	in the presence of

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Leigh Rae Sanderson
 

Signature of Witness

	 	 	 	 	 	/s/ Robert John Debus
 

Name:
	 	 
	 
	 	 	 	 	 	 	 	 
	Leigh Rae Sanderson
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Name of Witness

	 	 	 	 	 	 	 	 

 

11

Annexure A

Irrevocable Power of Attorney

(attached)

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