Document:

Separation deed, as amended and restated on 25 October 2011

 Exhibit 4.21 
 Telecom Corporation of New Zealand Limited 
 Chorus Limited

 Chorus New Zealand Limited 

 
  

DEED OF AMENDMENT AND RESTATEMENT 
 OF SEPARATION DEED 
  

 

					
	DEED dated	 	25 October 2011	  	

 PARTIES 
 Telecom Corporation of New Zealand Limited (“Telecom”) 
 Chorus
Limited (“Chorus”) 
 Chorus New Zealand Limited (“Chorus New Zealand”) 

INTRODUCTION 
  

	A.	The parties to this deed are parties to the Separation Deed dated 12 September 2011 (“Separation Deed”) which sets out the terms and conditions on
which certain assets and liabilities of the Telecom group of companies will be transferred to Chorus New Zealand as part of the demerger of, what will become, the Chorus business from the Telecom business. 

 

	B.	The parties have agreed to amend and restate the Separation Deed in the manner set out in this deed. 

IT IS AGREED as follows: 
  

	1.	AMENDMENTS AND RESTATEMENT 

  

	1.1	With effect from the date of this deed, the Separation Deed is amended in the manner set out in the schedule to this deed (shown in mark-up) and restated.

  

	2.	CONFIRMATIONS 

  

	2.1	Other than as amended by this deed, the Separation Deed remains in full force and effect. 

 

	3.	MISCELLANEOUS 

  

	3.1	Counterparts: This deed may be signed in any number of counterparts, all of which will together constitute one and the same instrument, and any of the parties
may execute this deed by signing any such counterpart. 

  

	3.2	Governing law: This deed shall be governed by and construed in accordance with New Zealand law. 

  
 1 

					
	SIGNED AS A DEED	 		 	
			
	TELECOM CORPORATION OF NEW ZEALAND LIMITED by:	 		 	
			
	 /s/ Wayne Boyd
	 		 	 /s/ Paul Reynolds

	Signature of director	 		 	Signature of director
			
	 Wayne Boyd
	 		 	 Paul Reynolds

	Name of director	 		 	Name of director
			
	CHORUS LIMITED by:	 		 	
			
	 /s/ Wayne Boyd
	 		 	 /s/ Paul Reynolds

	Signature of director	 		 	Signature of director
			
	 Wayne Boyd
	 		 	 Paul Reynolds

	Name of director	 		 	Name of director
			
	CHORUS NEW ZEALAND LIMITED by:	 		 	
			
	 /s/ Wayne Boyd
	 		 	 /s/ Paul Reynolds

	Signature of director	 		 	Signature of director
			
	 Wayne Boyd
	 		 	 Paul Reynolds

	Name of director	 		 	Name of director

  
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 SCHEDULE 
 (Attached) 

  
 3 

 EXECUTION VERSION - AMENDED AND RESTATED AS AT 25 OCTOBER 2011 

TELECOM CORPORATION OF NEW ZEALAND LIMITED 
 CHORUS LIMITED 
 CHORUS NEW ZEALAND LIMITED 

 
  

SEPARATION DEED 
  

 

 CONTENTS 

 

					
	 1. INTERPRETATION
	  	 	444	  
	 2. DEMERGER
	  	 	16616	  
	 3. CONDITIONS TO THE DEMERGER
	  	 	17617	  
	 4. CONDUCT OF THE PARTIES
	  	 	18617	  
	 5. TRANSFER OF ASSETS AND LIABILITIES
	  	 	21620	  
	 6. PURCHASE PRICE
	  	 	22622	  
	 7. CONTRACTS
	  	 	24623	  
	 8. MISPLACED ASSETS AND LIABILITIES
	  	 	27627	  
	 9. INTELLECTUAL PROPERTY
	  	 	27627	  
	 10. EMPLOYEES
	  	 	31630	  
	 11. ENVIRONMENTAL MATTERS
	  	 	33633	  
	 12. LITIGATION
	  	 	35634	  
	 13. CROSS INDEMNITIES
	  	 	45645	  
	 14. LIMITATION OF INDEMNITIES
	  	 	46645	  
	 15. PAYMENT
	  	 	46646	  
	 16. TAXATION
	  	 	47647	  
	 17. CONFIDENTIALITY
	  	 	48648	  
	 18. DISPUTE RESOLUTION
	  	 	51651	  
	 19. NOTICES
	  	 	52652	  
	 20. GENERAL
	  	 	54654	  
	 SCHEDULE 1
	  	 	58658	  
	 SEPARATION ARRANGEMENT PLAN
	  	 	58658	  
	 SCHEDULE 2
	  	 	88688	  
	 CONDITIONS
	  	 	88688	  
	 SCHEDULE 3
	  	 	89689	  
	 TRANSITIONAL AND LONG TERM SERVICES AGREEMENTS
	  	 	89689	  
	 SCHEDULE 4
	  	 	91691	  
	 MISPLACED ASSETS AND LIABILITIES
	  	 	91691	  
	 SCHEDULE 5
	  	 	1006100	  
	 NEW CHORUS REGISTERED IP
	  	 	1006100	  
	 SCHEDULE 6
	  	 	1106110	  
	 NEW CHORUS REGISTERED IP ASSIGNMENT
	  	 	1106110	  
	 SCHEDULE 7
	  	 	1296129	  
	 LITIGATION
	  	 	1296129	  
	 SCHEDULE 8
	  	 	1316131	  
	 TRANSFERRING CONTRACTS
	  	 	1316131	  
	 SCHEDULE 9
	  	 	1326132	  
	 TELECOM’S AMENDING CONTRACTS
	  	 	1326132	  

 DEED dated        September 2011 

PARTIES 
 TELECOM
CORPORATION OF NEW ZEALAND LIMITED (“Telecom”) 
 CHORUS LIMITED (“Chorus”) 

CHORUS NEW ZEALAND LIMITED (“Chorus NZ”) 
 INTRODUCTION 
  

	A.	Telecom, the ultimate holding company of the Telecom Group, proposes to demerge into two listed companies, namely: 

 

	 	(i)	New Telecom, which from the Demerger Date will conduct the business currently conducted by the Retail, Gen-i, AAPT and International business units, and certain aspects
of the business currently conducted by the Corporate, Technology and Shared Services, and Wholesale business units, and which will focus on providing fixed line, mobile and information and communication technology products and services; and

  

	 	(ii)	New Chorus, which from the Demerger Date will conduct the business currently conducted by the Chorus business unit, and certain aspects of the business currently
conducted by the Corporate, Technology and Shared Services, and Wholesale business units, as conducted in accordance with, and subject to, relevant provisions of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011, together
with the Telecommunications Act 2001, and which will own the fixed line telecommunications infrastructure and will focus on providing fixed access and aggregation services in New Zealand and be an integral part of the New Zealand government’s
ultra-fast broadband initiative. 

  

	B.	The Demerger will be implemented through a Court approved scheme of arrangement under Part XV of the Companies Act. 

	C.	The boards of directors of Telecom and Chorus have determined that it is in the best interests of their respective companies, Subsidiaries, and shareholders to enter
into this deed and to implement the Demerger. 

  

	D.	The parties have agreed to implement the Demerger and other transactions on the terms set out in this deed. 

AGREEMENT 
  

	1.	INTERPRETATION 

  

	1.1	Definitions: In this deed, unless otherwise specified or the context otherwise requires: 

“$ or NZ$ or dollars” means the lawful currency of New Zealand; 

“agreement” includes a contract, licence, franchise, undertaking, arrangement or understanding (in each case whether oral
or written), deed or other document recording obligations (whether mutual or otherwise), and includes that agreement as modified, supplemented, novated or substituted from time to time; 

“Amendinged Contract” means a Contract that, on and from the Demerger Date: 

 

	 	(a)	is necessary for New Telecom to provide services to New Chorus under one or more of the Transitional and Long Term Service Agreements; or 

 

	 	(b)	is necessary for New Chorus to provide services to New Telecom under one or more of the Transitional and Long Term Service Agreements; 

“Asset Allocation Plan” means the asset allocation plan required to be prepared by Telecom under section 32 of the
Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011, as approved under section 36 of that Act, and as updated under section 38 of that Act on the day before the Demerger Date; 

“ASX” means ASX Limited (ABN 98 008 624 691), or the financial market operated by the Australian Securities Exchange;

 “brought”, in relation to a Claim, means any circumstance where a Claim is made or threatened in writing (and
is not limited to formal proceedings or similar steps having been commenced); 

  
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 “Business Day” means any day (other than a Saturday or a Sunday) on which
banks are generally open for business in Auckland, Wellington and Sydney; 
 “Chorus Litigation Matter” means
any Claims brought on or before the Demerger Date by or against any member of the Telecom Group in relation to the Demerged Business, as contemplated by the Asset Allocation Plan (under the heading “Lawsuits and Other Claims”) and other
than Joint Litigation Matters and Vested Litigation Matters and includes any Claim or matter which is deemed to be a Chorus Litigation Matter for the purposes of this deed pursuant to clause 10.7; 

“Chorus Related Claim” has the meaning given in clause 12.8; 

“Claim” means any allegation, investigation or inquiry, cause of action, claim, litigation, proceeding, demand, judgment,
award, claim for contribution or indemnity, suit or demand of any nature which exists now or at any time in the future, whether at law, under contract, in equity, due to negligence of a party, under statute or otherwise; 

“Companies Act” means the Companies Act 1993 of New Zealand; 

“Conditions” means the conditions set out in Schedule 2; 

“Confidential Information” means Telecom Information or New Chorus Information, as the context requires; 

“Contracts” means all contracts, deeds, agreements and arrangements, (including all rights and/or obligations relating
thereto) to which a member of the Telecom Group is a party immediately before the Demerger Date; 
 “Costs”
means external legal costs and expenses (including, without limitation, solicitors’ and counsels’ fees, expert costs, court costs and fees, arbitrators’ or mediators’ fees, and in each case on a full indemnity basis and including
GST that is not otherwise recoverable), penalties, fines and any other like costs directly associated with a matter; 

“Demerged Business” means: 
  

	 	(a)	the business conducted by the Chorus business unit prior to the Demerger Date; 

  
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	 	(b)	aspects of the business conducted by the Wholesale business unit prior to the Demerger Date relating to the provision of layer 2 wholesale local access copper and fibre
services and related backhaul services, but not including those parts of the Wholesale business unit prior to the Demerger Date which supported international services, interconnect, PSTN resale services, wholesale mobile services, national transport
and point to point backhaul; 

  

	 	(c)	aspects of the business conducted by the Technology and Shared Services which prior to the Demerger Date supported the Chorus business unit and the relevant part of the
Wholesale unit described in paragraph (b) above, 

 to the extent necessary to enable New Chorus to conduct
the business that the Asset Allocation Plan anticipates will be undertaken by New Chorus, including those aspects necessary to exercise the rights and meet the obligations associated with the Transferringed Assets and
Transferringed Liabilities on and from the Demerger Date. 
 “Demerger” means the Court
approved arrangement to effect the demerger of New Chorus from Telecom, the key elements of which are described in the Separation Arrangement Plan, subject to any amendments or variations made in accordance with the Initial Court Orders, this deed,
and/or required by the Court; 
 “Demerger Claim” has the meaning given in clause 4.5(a); 

“Demerger Date” means the date on which the Demerged Business is acquired by Chorus NZ under the Demerger and this deed,
expected to be 30 November 2011 or such other date as is determined by the board of directors of Telecom and notified by Telecom to NZX and ASX and any reference to anything occurring “on and from” the Demerger Date shall mean that
that thing occurs at the end of the day that is the Demerger Date; 
 “Environmental Liability” means any
liability arising from any act or omission that contravenes the provisions of the RMA, a rule in a District or Regional Plan, a resource consent, an abatement notice or an enforcement order, or any act or omission that causes an adverse effect on
the environment (which is not otherwise lawfully authorised), including the contamination of any land or site; 

“event” includes any act, omission, transaction or other occurrence, or any series of events, but excludes completion of
the transactions contemplated by this deed; 
 “Final Court Orders” means the final orders of the High Court
approving the Demerger made under Part XV of the Companies Act; 

  
 6 

 “Fixed Assets” means all assets including vehicles, fixtures, fittings,
plant, equipment, and machinery (which, to avoid doubt, includes all computing and information technology hardware and software) that are included in the Asset Allocation Rian and that are identified or designated in the Fixed Asset Allocation
Spreadsheet as being referable to a member of the New Chorus Group; 
 “Fixed Asset Allocation Spreadsheet”
means one or more spreadsheets designated as such and prepared by the Group Finance division of Telecom using source data from the General Ledger and the Fixed Asset Register, for the purposes of identifying or designating the Fixed Assets as at the
Demerger Date that are referable to a member of the New Chorus Group; 
 “Fixed Asset Register” means a
sub-ledger of the General Ledger that records the Fixed Assets of the Telecom Group for accounting purposes; 
 “General
Ledger” means the record of accounting entries relating to the Telecom Group contained in its SAP general ledger system; 
 “GST” has the meaning given in clause 16.2(c)(i); 

“include”, “including” or similar words do not imply any limitation; 

“Initial Court Orders” means the interim orders of the High Court in respect of the Demerger made under section 236(2) of
the Companies Act, including any amendments or variations thereto; 
 “Intellectual Property” means all
intellectual property rights owned by a member of the Telecom Group immediately prior to the Demerger Date, whether conferred by statute, at common law or in equity, including: 

 

	 	(a)	all copyright and similar rights that may subsist in works or other subject matter; 

 

	 	(b)	rights in relation to inventions (including all patents and patent applications); 

 

	 	(c)	trade secrets and know-how; 

  

	 	(d)	rights in relation to designs (whether registrable or not); 

  

	 	(e)	rights in relation to registered and unregistered trade marks; 

  

	 	(f)	business names; and 

  
 7 

	 	(g)	rights in relation to domain names; 

 “Interests in Land” means any real property, or interest in real property, which is included in the Asset Allocation Plan, or which is included in the Shared Asset Schedule, and
identified or designated as being referable to a member of the New Chorus Group, and includes Transferring Resource Management Processes; 
 “Inventory” means the maintenance materials and consumables, goods held for sale, and work in progress that are identified or designated in the General Ledger as being referable to a
member of the New Chorus Group; 
 “Joint Litigation Matter” means any Claim brought on or before the Demerger
Date by or against any member of the Telecom Group that relates both to the Retained Business and the Demerged Business {excluding, for the avoidance of doubt, Vested Litigation Matters, Chorus Litigation Matters and Telecom Litigation Matters);

 “Legacy Separation Undertakings” means the Telecom separation undertakings provided to the Minister of
Communications on 25 March 2008 in accordance with section 69K(2)(c) of the Telecommunications Act 2001 (as that provision was in force at the relevant date), together with any subsequent variations and/or alterations; 

“Legislation” means the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011, together with the
Telecommunications Act 2001 as amended by that Act, and any relevant regulations, Orders in Council or other instruments made under either Act; 
 “Long Term Debt Arrangements” means the European Medium Term Notes and Telebonds described in Section Five, Part A of the Asset Allocation Plan, and the Cross- Currency Interest Rate
Swaps and Interest Rate Swaps described in Section Five, Part B of the Asset Allocation Plan and includes any accrued interest payable in relation to such arrangements (and which, for the avoidance of doubt, is not transferred or in any way dealt
with under this deed); 
 “Misplaced Asset” has the meaning given in Schedule 4; 

“Misplaced Liability” has the meaning given in Schedule 4; 

“New Chorus” means Chorus from the Demerger Date; 

  
 8 

 “New Chorus Allocated IP” means the Intellectual Property in the
Transferring Assets or otherwise allocated to New Chorus under the Asset Allocation Plan, but excludes the New Chorus Registered IP; 
 “New Chorus Group” means New Chorus and its Subsidiaries from the Demerger Date and, thereafter, from time to time; 

“New Chorus Information” means all confidential, non-public or proprietary information, regardless of how the information
is stored or delivered, relating to, and including, the business, technology or other affairs of the New Chorus Group; 

“New Chorus Intellectual Property” means all New Chorus Registered IP and New Chorus Allocated IP; 

“New Chorus Names” means the names, brands, trade marks, logos and domain names listed in Schedule 5; 

“New Chorus Open Access Deeds of Undertakings” means any undertakings supplied by New Chorus pursuant to section 41 of
the Telecommunications (TSO, Broadband and other Matters) Amendment Act 2011 and sections 156AH and 156AZ of the Telecommunications Act 2001, or any successor documents; 
 “New Chorus Registered IP” means the New Chorus Names and all other intellectual property rights listed in Schedule 5 to the extent they are included in the Asset Allocation Plan;

 “New Chorus Registered IP Assignment” means the deed of assignment set out in Schedule 6; 

“New Chorus Retained Contract Payment” means any payment made by or to New Chorus or Chorus NZ under, or in respect of, a
Retained Contract; 
 “New Chorus Share” means a fully paid ordinary share in New Chorus; 

“New Telecom” means Telecom from the Demerger Date; 

“New Telecom Group” means New Telecom and its Subsidiaries from the Demerger Date; 

“New Telecom Names” means the names, brands, trade marks, logos and domain names owned by New Telecom or its Subsidiaries
immediately after the Demerger Date; 

  
 9 

 “Notice” has the meaning given in clause
19.119.119.1; 
 “NZSX” means the main board equity security
market operated by NZX; 
 “NZX” means NZX Limited; 

“Other Assets” means any asset which is allocated to New Chorus in the Asset Allocation Plan (excluding Long Term Debt
Arrangements), but which is not otherwise included in the Transferring Assets; 
 “Other Liabilities” means any
liability which is allocated to New Chorus in the Asset Allocation Plan (excluding Long Term Debt Arrangements) but which is not otherwise included in the Transferring Liabilities; 

“Permitted Encumbrances” means any reservation of title by suppliers in the ordinary course of business; 

“properly attributable” has the meaning set out in Schedule 4. 

“Property Separation Agreement” means the property separation agreement dated on or about 13 September 2011 between
Telecom, Chorus and Chorus NZ; 
 “Purchase Price” means the aggregate purchase price payable by Chorus NZ in
accordance with clause 6.1; 
 “Record Date” means the date upon which the entitlement of Telecom Shareholders
to participate in the Demerger Distribution (as defined in the Separation Arrangement Plan) is determined, expected to be 7.00pm on 25 November 2011 or such other date as determined by the board of directors of Telecom and notified by Telecom
to NZX and ASX; 
 “Records” means all records of, and information relating to, the Retained Business and/or the
Demerged Business (as the context may require), together with all media or systems containing any such records or information; 

“Related Company” has the same meaning as in section 2(3) of the Companies Act (read as if the expression
“company” in that subsection included any body corporate of any jurisdiction); 

  
 10 

 “relief” includes: 

 

	 	(a)	any relief, loss, allowance, credit, deduction, rebate, set-off or other relief taken into account in computing any tax liability, or any grant conferred on any person;
or 

  

	 	(b)	any right to repayment of taxation (whether or not including interest) available to that person, 

whether in New Zealand or elsewhere; 
 “Representative” means, in relation to an entity, a director, officer, employee, agent, partner, contractor or adviser of that entity; 

“Retained Business” means the business conducted by Telecom prior to the Demerger Date, excluding the Demerged Business;

 “Retained Contract” means a Contract which is not a Transferring Contract or Transitional and Long Term
Services Agreement; 
 “RMA” means the Resource Management Act 1991, as amended from time to time; 

“Selected Employees” has the meaning given in clause 10.1; 

“Separation Arrangement Plan” means the separation arrangement plan set out in Schedule 1 to this deed, subject to any
amendments or variations made in accordance with the Initial Court Orders and/or the Final Court Orders, this deed, and/or otherwise required by the Court; 
 “Shared Asset Schedule” means the document agreed between the parties, as at the Demerger Date, which identifies those property interests in respect of which each of, or both, Telecom and
Chorus NZ will, following Demerger, have an interest, pursuant to and in accordance with this deed; 

“Subsidiary” means, in relation to any person: 

 

	 	(a)	a subsidiary within the meaning of section 5 of the Companies Act and read, where applicable, as if the entity concerned were a company incorporated under the Companies
Act; or 

  

	 	(b)	a subsidiary in accordance with generally accepted accounting practice in New Zealand; 

  
 11 

 “tax” or “taxation” includes: 

 

	 	(a)	all forms of taxation, withholdings, duties, dues, imposts, levies and rates imposed in New Zealand or elsewhere; 

 

	 	(b)	loss of relief; and 

  

	 	(c)	all interest, penalties and fines relating to or arising in connection with any such taxes or loss of relief; 

“Telecom Financing Statement” means a financing statement (under which a member of the Telecom Group is, as at the
Demerger Date, recorded as the secured party) registered on the Personal Property Securities Register that contains a description of collateral (within the meaning of the Personal Property Securities Act 1999) to be included in the Transferring
Assets; 
 “Telecom Group” means Telecom and its Subsidiaries from time to time; 

“Telecom Information” means all confidential, non-public or proprietary information, regardless of how the information is
stored or delivered, relating to and including the business, technology or other affairs of the Telecom Group (or New Telecom Group as the context requires); 
 “Telecom Litigation Matters” means the litigation matters listed in Part B of Schedule 7 and any other matters listed in the Asset Allocation Plan under the heading “Lawsuits and
Other Claims” which are allocated to New Telecom, as at the Demerger Date; 
 “Telecom Related Claim” has
the meaning given in clause 12.9(c); 
 “Telecom Share” means a fully paid ordinary share in Telecom;

 “Telecom Shareholder” means a registered holder of Telecom Shares; 

“Telecom Transferring Contract Payment” means any payment made by or to any member of the Telecom Group or the New
Telecom Group under or in respect of a Transferring Contract which relates to the period on and from the Demerger Date; 

“Telecom’s Amending Contracts” means the Amending Contracts listed in Schedule 9; 

  
 12 

 “Telecom’s Amending Contracts Schedule” means Schedule 9,
subject to any amendment or variations made in accordance with clause 5.6; 
 “Transaction Documents”
means: 
  

	 	(a)	this deed; 

  

	 	(b)	the New Chorus Registered IP Assignment; 

  

	 	(c)	the Property Separation Agreement; 

  

	 	(d)	the Transitional and Long Term Services Agreements; and 

  

	 	(e)	any other document, agreement or instrument that the parties agree is a Transaction Document for the purposes of this deed; 

“Transferring Assets” means all: 
  

	 	(a)	Fixed Assets; 

  

	 	(b)	New Chorus Intellectual Property; 

  

	 	(c)	Interests in Land; 

  

	 	(d)	Inventory; 

  

	 	(e)	Transferring Contracts; and 

  

	 	(f)	Other Assets; 

“Transferring Contracts” means: 
  

	 	(a)	the Contracts listed in Schedule 8; 

  

	 	(b)	any Contracts that prior to the Demerger Date related solely to the Demerged Business; 

 

	 	(c)	any Contracts that the parties agree should be transferred to Chorus under the Demerger; and 

  
 13 

	 	(d)	any Contract that: 

  

	 	(i)	prior to the Demerger Date wholly, or partly, related to the Demerged Business; and 

 

	 	(ii)	New Chorus will require the benefit of in order to operate the Demerged Business, 

provided that, if any of the Transitional and Long Term Services Agreements include, or New Telecom agrees to add to a Transitional and
Long Term Services Agreement, a service which provides Chorus with benefits equivalent to those required by New Chorus, that Contract shall not be a Transferring Contract; 
 but excludes: 
  

	 	(a)	Contracts referred to in sub-paragraph (a) of the Amendinged Contract definition; 

 

	 	(b)	Telecom’s Amending Contracts; and 

  

	 	(c)	Transitional and Long Term Services Agreements, 

 provided that, where the relevant member of the New Chorus Group requires only a part of any Contract (and a member of the New Telecom Group also requires a part of that Contract), only that part of the
Contract which that relevant member of the New Chorus Group requires is a Transferring Contract; 
 “Transferring
Contracts Schedule” means Schedule 8, subject to any amendment or variations made in accordance with clause 5.5; 

“Transferring Employees” means the Selected Employees who accept offers of employment with Chorus NZ and commence
employment with Chorus NZ; 
 “Transferring Environmental Liability” means any Environmental Liability which is
allocated to New Chorus under the Asset Allocation Plan or which is otherwise referable to the Demerged Business or the Transferring Assets; 
 “Transferring Liabilities” means all: 
  

	 	(a)	Transferring Environmental Liabilities; 

  

	 	(b)	Vested Litigation Matters; 

  
 14 

	 	(c)	Chorus Litigation Matters; and 

  

	 	(d)	Other Liabilities; 

“Transferring Resource Management Processes” means any application for a notice of requirement, resource consent, private
plan change or submission or appeal lodged by Telecom, or any of its Subsidiaries, which is attributable to the Demerged Business but not yet finally determined under the RMA as at the Demerger Date; 

“Transitional and Long Term Services Agreements” means the transitional and long term services agreements listed in
Schedule 3; 
 “Vested Litigation Matters” means the litigation matters listed in Part A of Schedule 7, and
as specifically identified in the Asset Allocation Plan under the heading “Lawsuits and Other Claims” which are allocated to New Chorus. 
 “written” and “in writing” include any means of reproducing words, figures or symbols in a tangible and visible form; 

 

	1.2	Interpretation: In this deed, unless the context otherwise requires, or is specifically stated otherwise: 

 

	 	(a)	headings are to be ignored in construing this deed; 

  

	 	(b)	the singular includes the plural and vice versa; 

  

	 	(c)	one gender includes the other genders; 

  

	 	(d)	references to individuals include companies and other corporations and vice versa; 

 

	 	(e)	a reference to a statute or other law includes regulations and other instruments under it and consolidations, amendments, re-enactments or replacements of any of them
(whether before or after the date of this deed); 

  

	 	(f)	reference to any document includes reference to that document (and, where applicable, any of its provisions) as amended, novated, supplemented, or replaced from time to
time; 

  
 15 

	 	(g)	reference to a party, person or entity includes: 

  

	 	(i)	an individual, partnership, firm, company, body corporate, corporation, association, trust, estate, state, government, governmental agency, municipal or local
authority, elected or appointed public official, domestic or foreign court or tribunal or other regulatory authority, administrative agency, or commission, and any other entity, whether incorporated or not (in each case whether or not having a
separate legal personality); and 

  

	 	(ii)	an employee, agent, successor, permitted assign, executor, administrator and other representative of such party, person or entity; 

 

	 	(h)	references to money are to New Zealand dollars; 

  

	 	(i)	references to times of day or dates are to New Zealand times and dates; 

  

	 	(j)	each Schedule or other attachment forms part of this deed; 

  

	 	(k)	a right or power may be exercised from time to time and at any time; 

  

	 	(l)	any word or expression cognate with a definition in this deed has a meaning corresponding or construed to the definition; and 

 

	 	(m)	reference to a clause, sub-clause, Schedule or a party is a reference to that clause, sub-clause, Schedule or party in this deed. 

 

	2.	DEMERGER 

  

	2.1	Demerger: Subject to the provisions of this deed, the Initial Court Orders, the Final Court Orders, the Legislation and the agreements contemplated by this deed
(including the Transaction Documents), Telecom will separate its Demerged Business from its Retained Business in accordance with the Separation Arrangement Plan, such that: 

 

	 	(a)	Telecom and its relevant Subsidiaries will, subject to any third party rights: 

 

	 	(i)	dispose of the Transferring Assets to Chorus NZ; 

  

	 	(ii)	transfer the Transferring Liabilities to Chorus NZ; 

  

	 	(iii)	transfer all rights and benefits (and, to the extent possible, the obligations) under each of the Transferring Contracts to Chorus NZ; and 

  
 16 

	 	(b)	Chorus NZ will, subject to any third party rights: 

  

	 	(i)	acquire the Transferring Assets from Telecom; 

  

	 	(ii)	assume the Transferring Liabilities from Telecom; and 

  

	 	(iii)	have and assume all rights and benefits (and, to the extent possible, the obligations) under each of the Transferring Contracts from Telecom. 

 

	3.	CONDITIONS TO THE DEMERGER 

  

	3.1	Conditions: Subject to clause 3.2, the respective obligations of Telecom (including as New Telecom), Chorus (including as New Chorus) and Chorus NZ to complete
the transactions contemplated by this deed are subject to the fulfilment, or the waiver by each of them, of the Conditions on or before the Demerger Date, and in any event before 30 June 2012. 

 

	3.2	For the avoidance of doubt, the obligations set out in the following clauses are not subject to the fulfilment or waiver of the Conditions, but will apply to the
parties on and from the date of this deed: 4.1(a); 4.1(c); 4.1(d); 4.1(e); 4.1(f); 4.5, 7.1; 7.2(a); 7.2(b); 7.2(c); 10.1; 10.2; 17; 20.2; 20.3; 20.4; 20.5; and 20.11. 

 

	3.3	Termination on non-fulfilment: If any Condition is not satisfied (or waived) on or before the Demerger Date, each of Telecom and New Chorus (in its absolute and
unfettered discretion) may by written notice to the other of them terminate its obligations under this deed at any time. In the event that this deed is terminated, the Property Separation Agreement, and each party’s obligations in the same,
shall automatically terminate. 

  

	3.4	Satisfaction, waiver and release of conditions: On the acquisition of the Transferring Assets by Chorus NZ under the Demerger in accordance with the Final Court
Orders, and the payment of the Purchase Price, the Conditions will be deemed conclusively to have been satisfied, waived or released for the purposes of this deed. 

  
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	4.	CONDUCT OF THE PARTIES 

  

	4.1	Mutual obligations: Subject to the tennis of this deed: 

  

	 	(a)	on the date of this deed, each of Telecom and Chorus and Chorus NZ (as applicable) will execute, and deliver to the other party, each of the Transaction Documents
(including this deed but excluding the Transitional and Long Term Services Agreements); 

  

	 	(b)	on or by the Demerger Date, each of Telecom, Chorus and Chorus NZ (as applicable) will execute, and deliver to the other party, each of the Transitional and Long Term
Services Agreements; 

  

	 	(c)	Telecom (including as New Telecom) and Chorus (including as New Chorus) agree that, upon execution of each Transaction Document by all parties, they will, and will
cause their respective Subsidiaries to, perform and comply with all of their respective obligations under that Transaction Document; 

  

	 	(d)	each of Telecom and Chorus will, and will cause their respective Subsidiaries to, use all reasonable efforts to satisfy each of the Conditions to be satisfied by it, as
soon as is practical, and in any event before the Demerger Date; 

  

	 	(e)	each of Telecom (including as New Telecom) and Chorus (including as New Chorus) will take, or cause to be taken (including by their respective Subsidiaries), all other
actions necessary or expedient to permit the completion of the Demerger and related transactions in accordance with this deed, the agreements that it contemplates and applicable law, and to co-operate with each other in connection with the Demerger,
and 

  

	 	(f)	Telecom (including as New Telecom) and Chorus (including as New Chorus) will not, and will not permit their respective Subsidiaries to, take any action that would
preclude a party from fulfilling its obligations under this deed and (without limiting the foregoing) neither Telecom nor Chorus will, or will permit their respective Subsidiaries (as applicable) to, take any steps that might interfere with existing
contractual relationships of the other (except as contemplated by this deed). 

  

	4.2	Businesses of Telecom prior to the Demerger Date: Prior to the Demerger Date, Telecom will conduct, and cause its Subsidiaries to conduct, the Demerged Business
in a manner consistent with previous practices and policies of Telecom but in such a manner which will accommodate the demerger of the Demerged Business from the Telecom Group. 

  
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	4.3	Dealing with customers and suppliers from the Demerger Date: 

  

	 	(a)	Subject to clause 4.3(b) from the Demerger Date, and except as anticipated by any Transitional and Long Term Services Agreement referred to in paragraph (d) of Schedule
3, each of New Telecom and New Chorus will (and agrees to procure that other members of the New Telecom Group and New Chorus Group as applicable will): 

  

	 	(i)	if a third party (including a customer or supplier of a member of the New Chorus Group) contacts a member of the New Telecom Group in relation to the Demerged Business,
direct that third party to contact a member of the New Chorus Group; and 

  

	 	(ii)	if a third party (including a customer or supplier of a member of the New Telecom Group) contacts a member of the New Chorus Group in relation to the Retained Business,
direct that customer or supplier to contact a member of the New Telecom Group. 

  

	 	(b)	From the Demerger Date, if a customer or supplier contacts a member of the New Chorus Group in relation to a supply by or to a member of the Telecom Group which
occurred, in whole or in part (in which case, this clause applies only in respect of that part), prior to the Demerger Date: 

  

	 	(i)	New Chorus will, or will procure that a member of the New Chorus Group will, as soon as reasonably practicable following that contact, contact an appropriate person at
the New Telecom Group; and 

  

	 	(ii)	the parties will, and will procure that their respective Subsidiaries will, consult as to the manner of dealing with that customer or supplier in relation to that
supply and will deal with that customer or supplier in a manner which is reasonable and which ensures that the reputation and profitability of each of the Demerged Business and the Retained Business is promoted or preserved to the greatest extent
reasonably possible, or as otherwise agreed. 

  
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	4.4	Assistance: Telecom (including as New Telecom) and Chorus (including as New Chorus) acknowledge that there may be unforeseen complications with regard to the
performance of the obligations of the members of Telecom Group, the New Telecom Group and the New Chorus Group under this deed or in connection with the implementation of the Demerger. In the event that, as a result of such unforeseen complications,
Telecom (including as New Telecom) or Chorus (including as New Chorus) is not able to operate its business, or any part of its business, in any material respect, the other party will, until 30 June 2012, provide all assistance to that party as
may reasonably be required to minimise any business disruption arising from the relevant unforeseen complications and to facilitate the orderly implementation of the Demerger and any other transactions contemplated by this deed, provided that if
such assistance will be a sharing arrangement, as that term is defined in section 69C of the Telecommunications Act 2001 (as amended by the Telecommunications (TSO, Broadband, and Other Matters) Act 2011), it will be provided only in accordance with
that Act. 

  

	4.5	Defence of proceedings: Subject to clause 12 of this deed: 

  

	 	(a)	each of Telecom (including as New Telecom) and Chorus (including as New Chorus) will vigorously defend, or cause to be defended, any lawsuits or other legal proceedings
brought against it or any of its Subsidiaries challenging this deed or the completion of the Demerger or the transactions contemplated by this deed (a “Demerger Claim”); 

 

	 	(b)	no party will settle or compromise (or permit any of its Subsidiaries to settle or compromise) any Demerger Claim without the prior written consent of the other parties
(such consent not to be unreasonably withheld); and 

  

	 	(c)	each party will extend to the other party or parties (as the case may be) reasonable cooperation in relation to any Demerger Claim. 

 

	4.6	Registrar and transfer agent: Telecom will permit the registrar and transfer agent for the Telecom Shares to act as depository in connection with the Demerger
and instruct that transfer agent to provide to Chorus (and such persons as it may designate) at such times as it may request such information and such other assistance as it may reasonably request in connection with the implementation and completion
of the Demerger. 

  
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	5.	TRANSFER OF ASSETS AND LIABILITIES 

  

	5.1	Transfer of Transferring Assets: 

  

	 	(a)	Telecom (including as New Telecom) will, and will procure that its Subsidiaries will, (subject to obtaining any necessary consents and subject, in the case of those
Transferring Assets which comprise Transferring Contracts, to clause 7) with effect from and including the Demerger Date, transfer title to, assign, or novate to Chorus NZ, subject to any third party rights, all of the Telecom Group’s property
and contractual rights in, and to the extent possible, the obligations in respect of, the Transferring Assets, including the benefit of all rights of the Telecom Group against third parties relating to the Transferring Assets.

  

	 	(b)	Telecom (including as New Telecom) will and will procure that its Subsidiaries will, (subject to obtaining any necessary consents and subject, in the case of those
Transferring Assets which comprise Transferring Contracts, to clause 7), as soon as reasonably practicable following the Demerger Date, give physical possession or deliver to Chorus NZ, such Transferring Assets and Records relating to the
Transferring Assets or the Demerged Business as Telecom or its Subsidiaries possess and which it is possible to give physical possession of or deliver, including by giving possession and operational control of Transferring Assets at the respective
places where they are normally located (other than such Transferring Contracts and Records which Telecom or its Subsidiaries are required by law to retain in their possession, in which case, Telecom and its Subsidiaries will provide copies of such
Transferring Contracts and Records to Chorus NZ to the extent that they are lawfully able to do so). 

  

	5.2	Acceptance of Transferring Liabilities: On and from the Demerger Date, subject to the terms of the Transaction Documents and any third party rights, Chorus NZ
will assume, and indemnify each member of the Telecom Group against, the Transferring Liabilities on the terms set out in this deed. 

  

	5.3	Assumption of employee obligations: Without limiting clause 5.2, Chorus NZ will, on and from the Demerger Date, assume the obligations of any member of the
Telecom Group to pay any accrued obligations (including any amount of accrued salary and wages, annual leave, alternative holidays, long service leave and sick leave) in respect of the Transferring Employees. 

  
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	5.4	Damage to Transferring Assets before Demerger: Where any of the Transferring Assets have been or are lost, destroyed or damaged at any time before the Demerger
Date (including prior to the date of this deed), then Telecom (including as New Telecom) will, and will procure that any other member of the Telecom Group and the New Telecom Group will; 

 

	 	(a)	take such reasonable steps as Chorus NZ may require it to take (but at Chorus NZ’s cost) to enforce any insurance policies applicable in respect of such loss,
destruction or damage and consequences of such damage; 

  

	 	(b)	hold on bare trust for, and promptly pay to, Chorus NZ (or New Chorus if applicable) the insurance monies received by it in respect of such loss, destruction or damage,
and the consequences of such damage, under those insurance policies; and 

  

	 	(c)	take such other steps as may reasonably be required in respect of those insurance policies in order to place the parties in the position they would have been in had
such loss, destruction or damage occurred subsequent to the Demerger Date and had Chorus NZ been party to those insurance policies. 

  

	5.5	Transferring Contracts Schedule: The parties agree that the Transferring Contracts Schedule may need to be updated prior to the Demerger Date to include any
Contracts which are determined in the period between the date of this deed and the Demerger Date to be Transferring Contracts. Therefore the Transferring Contracts Schedule which details the Transferring Contracts to be transferred subject to and in
accordance with this deed will be the updated Transferring Contracts Schedule as at the Demerger Date. 

5.6 Telecom’s Amending Contracts Schedule: The parties agree that the Telecom’s Amending Contracts Schedule may
need to be updated prior to the Demerger Date to include any Amending Contracts which are determined in the period between the date of this deed and the Demerger Date to be Telecom’s Amending Contracts. Therefore the Telecom’s Amending
Contracts Schedule which details Telecom’s Amending Contracts will be the updated Telecom’s Amending Contracts Schedule, as at the Demerger Date. 
  

	6.	PURCHASE PRICE 

  

	6.1	Consideration for Transferring Assets and Transferring Liabilities: Chorus NZ shall, on the Demerger Date, pay the Purchase Price to Telecom in consideration for
the Transferring Assets and the Transferring Liabilities. 

  
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	6.2	Purchase Price calculation: The Purchase Price will be the amount determined by Telecom no later than five Business Days prior to the Demerger Date in accordance
with the following formula: 

 Purchase Price = A – B 

Where: 
 A
is the aggregate of each balance as at the Demerger Date determined in accordance with clause 6.3 in respect of the relevant account codes in the General Ledger for the Transferring Assets (other than deferred tax), reduced, where applicable, by the
balance of any provision or impairment recorded against one or more account codes in respect of those assets. 
 B is the
aggregate of each balance as at the Demerger Date determined in accordance with clause 6.3 in respect of the relevant account codes in the General Ledger for the Transferring Liabilities (other than deferred tax). 

 

	6.3	Use of projected balances: in determining the balances referred to in the formula in clause 6.2, Telecom will use projected balances for the Demerger Date, being
the: 

  

	 	(a)	actual balances as at a given month-end prior to the Demerger Date or, in respect of a particular Transferring Asset or Transferring Liability, such other date as
Telecom may determine is appropriate in respect of such assets or liabilities; reduced or increased, as appropriate, by 

  

	 	(b)	reasonable estimates of any expected movements in those balances (including depreciation that would otherwise be charged) between the date of the balances in paragraph
(a) and the Demerger Date. 

  

	6.4	No adjustment for differences between actual and projected balances: The parties agree and acknowledge that the Purchase Price determined in accordance with
clauses 6.2 and 6.3, will be the final Purchase Price, that no adjustment will be made to the Purchase Price by reason of any difference between the actual balances as at the Demerger Date and the balances determined in accordance with clause 6.3,
and that no party shall have recourse to any other party pursuant to this deed in respect of any such difference. 

  
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	7.	CONTRACTS 

  

	7.1	Identification and consent: The parties will, as soon as reasonably practicable, work together to identify any Transferring Contract under which the consent of
the counterparty is required to an assignment or novation (in whole or in part) to Chorus NZ. 

  

	7.2	Agreements in respect of Transferring Contracts: 

  

	 	(a)	Each of Telecom (including as New Telecom) and Chorus (including as New Chorus) must use, and must procure that each other member of the Telecom Group, the New Telecom
Group and the New Chorus Group (as applicable) uses, its reasonable endeavours to assign or novate each Transferring Contract such that Chorus NZ, with effect on and from the Demerger Date, obtains the full benefit of, and must perform the
obligations in respect of, that Transferring Contract, including, where necessary, by: 

  

	 	(i)	executing all agreements and doing all things reasonably required in connection with the assignment or novation of the Transferring Contracts; and

  

	 	(ii)	seeking to obtain the consent of the other parties to any Transferring Contract, if required, to the assignment or novation of that Transferring Contract to Chorus NZ,
unless the parties agree otherwise. 

  

	 	(b)	Each of Telecom including as New Telecom, Chorus (including as New Chorus) and Chorus NZ must, if required by any member of the Telecom Group which is to transfer the
relevant Transferring Contract to Chorus NZ, use reasonable endeavours to assist that member of the Telecom Group to obtain an assignment or novation of any Transferring Contract, including by providing: 

 

	 	(i)	any information reasonably required by a third party; and 

  

	 	(ii)	in the case of Chorus NZ, guarantees, letters of comfort or other security from Chorus NZ or New Chorus where reasonably requested by a third party.

  
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	 	(c)	Prior to the Demerger Date, Telecom: 

  

	 	(i)	will not (and must procure that each other member of the Telecom Group will not), except in furtherance of the Demerger, wilfully do or omit to do anything that would
cause a breach of any Transferring Contract or any Contract that is to be assigned or novated to New Chorus in part; and 

  

	 	(ii)	must, except in furtherance of the Demerger, exercise all rights and discretions (and cause each member of the Telecom Group that is a party to the relevant
Transferring Contract to exercise all rights and discretions) that Telecom would otherwise exercise in the ordinary course of its business in respect of its performance under a Transferring Contract. 

 

	 	(d)	Telecom (including as New Telecom) indemnifies, and must procure that each relevant other member of the New Telecom Group that is a party to the relevant Transferring
Contract indemnifies, each of New Chorus and Chorus NZ in respect of any liability or loss arising directly or indirectly from a breach by a member of the Telecom Group of any of its obligations under clause
7.2(c)7.2(c)7.2(c). 

  

	7.3	Transferring Contracts not assigned or novated: For the avoidance of doubt, if any of the Contracts that are intended to be Transferring Contracts cannot be
assigned or novated to Chorus NZ with effect on and from the Demerger Date as contemplated under this deed, that Contract will be dealt with under, or pursuant to, the relevant Transitional and Long Term Services Agreement 

 

	7.4	Rights and obligations from the Demerger Date: With effect on and from the Demerger Date, Chorus NZ will, as between Chorus NZ and the relevant member of the New
Telecom Group and if, to the extent necessary or unless otherwise agreed, third party consents have been or are obtained: 

  

	 	(a)	have the benefit of each of the Transferring Contracts to the exclusion of New Telecom and its Subsidiaries (except as may be required in order for a member of the New
Chorus Group to provide services to a member of the New Telecom Group under, or pursuant to, any Transitional and Long Term Service Agreement); 

  
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	 	(b)	where a Transferring Contract has been assigned: 

  

	 	(i)	subject to 7.4(b)(ii) below, perform ail the obligations of New Telecom or its Subsidiaries (as the case may be) under each of the Transferring Contracts which are
required to be performed on and from the Demerger Date; 

  

	 	(ii)	the obligations in clause 7.4(b)(i) shall not apply in respect of any additional obligation or liability attributable to any breach by Telecom, or any of its
Subsidiaries (as the case may be), of any Transferring Contract before the Demerger Date, and New Telecom will indemnify the New Chorus group for any liability (including Costs) or loss incurred by any member of the New Chorus Group arising out of
any such breach by Telecom, or any of its Subsidiaries; and 

  

	 	(c)	indemnify New Telecom and its Subsidiaries in respect of any liability (including Costs) or loss arising directly or indirectly from a breach by Chorus NZ of any of its
obligations under this clause. 

  

	7.5	Receipts and payments under Transferring Contracts: Unless otherwise provided for in the Asset Allocation Plan: 

 

	 	(a)	New Telecom will, or (where applicable) will procure that its relevant Subsidiaries will hold on bare trust for, and as soon as is reasonably practicable account to,
New Chorus or Chorus NZ in respect of any Telecom Transferring Contract Payment received by New Telecom or its relevant Subsidiaries, and will take such other steps as shall be reasonably necessary to put the parties in the position they would have
been in if that payment had been received by New Chorus or Chorus NZ under that Transferring Contract. 

  

	 	(b)	New Chorus or Chorus NZ as applicable will indemnify New Telecom (or its relevant Subsidiaries) in respect of any Telecom Transferring Contract Payment made by New
Telecom or its relevant Subsidiaries and will take such other steps as will be reasonably necessary to put the parties in the position they would have been in if that payment had been made by New Chorus or Chorus NZ under that Transferring Contract.

  
 26 

	7.6	Receipts and payments under Retained Contracts: Unless otherwise provided for in the Asset Allocation Plan: 

 

	 	(a)	New Chorus or Chorus NZ, as applicable, will hold on bare trust for and as soon as is reasonably practicable account to New Telecom or its relevant Subsidiaries in
respect of any New Chorus Retained Contract Payment received by New Chorus or Chorus NZ and will take such other steps as will be reasonably necessary to put the parties in the position they would have been in if that payment had been received by
New Telecom (or its relevant Subsidiaries) under the Retained Contract. 

  

	 	(b)	New Telecom shall, or (where applicable) will procure that its relevant Subsidiaries will, indemnify New Chorus or Chorus NZ as applicable in respect of any New Chorus
Retained Contract Payment made by New Chorus or Chorus NZ as applicable and will take such other steps as will be reasonably necessary to put the parties in the position they would have been in if that payment had been made by New Telecom (or its
relevant Subsidiaries) under the Retained Contract. 

  

	8.	MISPLACED ASSETS AND LIABILITIES 

  

	8.1	Allocation process: If after the Demerger Date a party identifies any asset or liability (excluding any Claim) that is not included in or identified by the Asset
Allocation Plan, and which that party considers should have been transferred as part of the Demerger, the process for allocation set out in Schedule 4 will apply. 

 

	9.	INTELLECTUAL PROPERTY 

  

	9.1	Ownership of New Chorus Registered IP: 

  

	 	(a)	On and from the Demerger Date, Chorus NZ will own the New Chorus Registered IP. 

 

	 	(b)	Telecom agrees to, and agrees to ensure its Subsidiaries, do all things and execute all deeds, instruments, transfers or other documents reasonably requested by Chorus
NZ to transfer all rights, title and interest in the New Chorus Registered IP that are owned by Telecom or its Subsidiaries prior to the Demerger Date to Chorus NZ and to allow or assist Chorus NZ to obtain, perfect, assert, enforce or defend its
interest in, and ability to exercise its rights in relation to, the New Chorus Registered IP including by executing the New Chorus Registered IP Assignment in accordance with this deed. 

  
 27 

	9.2	Ownership of New Chorus Allocated IP: 

  

	 	(a)	On and from the Demerger Date, Chorus NZ will own and receive the benefit of all New Chorus Allocated IP. 

 

	 	(b)	Telecom agrees to, and agrees to ensure its Subsidiaries, do all things and execute all deeds, instruments, transfers or other documents reasonably requested by Chorus
NZ to transfer all rights, title and interest in the New Chorus Allocated IP that is owned by Telecom or its Subsidiaries prior to the Demerger Date to Chorus NZ and to allow or assist Chorus NZ to receive the benefit of and obtain, perfect, assert,
enforce or defend its interest in, and ability to exercise its rights in relation to, the New Chorus Allocated IP. 

  

	9.3	Prohibition on use of New Chorus Names: Subject to clause 9.4, on and from the Demerger Date, New Telecom must not, and must ensure that each other member of the
New Telecom Group does not: 

  

	 	(a)	use any New Chorus Name; 

  

	 	(b)	apply to register any New Chorus Name; or 

  

	 	(c)	attempt to assign or license to another party (other than New Chorus or Chorus NZ) any rights in relation to any New Chorus Name, 

or any confusingly similar name, whether as a trade mark, company name, business name, Internet domain name, product description or in any
other manner. 
  

	9.4	Transitional use of New Chorus Names: 

  

	 	(a)	Subject to clause 9.4(c), each of New Chorus and Chorus NZ agrees that it will not take any action against New Telecom or any other member of the New Telecom Group in
respect of any breach of clause 9.3(a) (other than a breach of the nature referred to in clause 9.4(b)), provided that New Telecom or the relevant member of the New Telecom Group has used all reasonable endeavours to avoid, or to minimise the extent
of, the breach and any confusion or deception that may arise as a result of the breach. 

  
 28 

	 	(b)	Subject to clause 9.4(c), each of New Chorus and Chorus NZ agrees that it will not take any action against New Telecom or any other member of the New Telecom Group in
respect of any breach of clause 9.3(a) that occurs in relation to the continued use of a New Chorus Name on a physical asset owned by a member of the New Telecom Group where that New Chorus Name was already applied to that asset prior to the
Demerger Date and where it would be impractical or unreasonable to cease that use, provided that New Telecom or the relevant member of the New Telecom Group: 

 

	 	(i)	ceases such use at the next reasonable opportunity; and 

  

	 	(ii)	uses all reasonable endeavours to avoid, or to minimise the extent of, the breach and any confusion or deception that may arise as a result of the breach.

  

	 	(c)	The agreement of New Chorus and Chorus NZ in clauses 9.4(a) and 9.4(b) is provided on the basis that New Chorus and Chorus NZ may, upon 6 months’ written notice to
New Telecom, withdraw their respective agreement in clauses 9.4(a) or 9.4(b) if, in the reasonable opinion of New Chorus and Chorus NZ, any use of a New Chorus Name by New Telecom or any other member of the New Telecom Group, may adversely affect:

  

	 	(i)	the reputation of the New Chorus Group or of the Demerged Business; or 

  

	 	(ii)	the capacity of New Chorus and Chorus NZ to effectively protect their rights in relation to the New Chorus Name. 

 

	9.5	Prohibition on use of New Telecom Names: Subject to clause 9.6, from the Demerger Date, New Chorus and Chorus NZ must not: 

 

	 	(a)	use any New Telecom Name; 

  

	 	(b)	apply to register any New Telecom Name; or 

  

	 	(c)	attempt to assign or license to another party (other than any member of the New Telecom Group) any rights in relation to any New Telecom Name, 

or any confusingly similar name, whether as a trade mark, company name, business name, domain name, product description or in any other
manner. 

  
 29 

	9.6	Transitional use of New Telecom Names: 

  

	 	(a)	Subject to clause 9.6(c), New Telecom agrees that neither it, nor any other member of the New Telecom Group, will take any action against New Chorus or Chorus NZ in
respect of any breach of clause 9.5(a) (other than a breach of the nature referred to in clause 9.6(b)), provided that New Chorus and/or Chorus NZ (as applicable) has used all reasonable endeavours to avoid, or to minimise the extent of, the breach
and any confusion or deception that may arise as a result of the breach. 

  

	 	(b)	Subject to clause 9.6(c), New Telecom agrees that neither it, nor any other member of the New Telecom Group, will take any action against New Chorus or Chorus NZ in
respect of any breach of clause 9.5(a) that occurs in relation to the use of a New Telecom Name on a physical asset owned by Chorus NZ where that New Telecom Name was already applied to that asset prior to the Demerger Date and where it would be
impractical or unreasonable to cease that use, provided that New Chorus and/or Chorus NZ (as applicable); 

  

	 	(i)	ceases such use at the next reasonable opportunity; and 

  

	 	(ii)	uses all reasonable endeavours to avoid, or to minimise the extent of, the breach and any confusion or deception that may arise as a result of the breach.

  

	 	(c)	The agreement of New Telecom in clause 9.6(a) and 9.6(b) is provided on the basis that New Telecom may, upon 6 months’ written notice to New Chorus and Chorus NZ,
withdraw its agreement in clause 9.6(a) and 9.6(b) if, in the reasonable opinion of New Telecom, any use of a New Telecom Name by New Chorus or Chorus NZ may adversely affect: 

 

	 	(i)	the reputation of the New Telecom Group or of the Retained Business; or 

  

	 	(ii)	New Telecom’s capacity to effectively protect its rights in relation to the New Telecom Name. 

 

	9.7	Distinguish businesses: Except to the extent expressly recognised by clauses 9.4(b) and 9.6(b), New Telecom and New Chorus will use their respective best
endeavours to distinguish their respective businesses from each other with effect on and from the Demerger Date. 

  
 30 

	10.	EMPLOYEES 

  

	10.1	Selection: At least 40 Business Days prior to the Demerger Date, Telecom will determine which of the members of the Telecom Group’s employees required to
operate the Demerged Business will be offered employment by Chorus NZ (“Selected Employees”). 

  

	10.2	Offer of employment: At least 30 Business Days prior to the Demerger Date, Chorus NZ shall offer employment to all of the Selected Employees, with effect on and
from the Demerger Date, on terms and conditions of employment that will ensure, to the greatest extent possible, that the Selected Employees will not be entitled to redundancy compensation upon termination of their employment with the relevant
member of the Telecom Group. Telecom shall use reasonable endeavours to persuade all of the Selected Employees to accept the offer of employment from Chorus NZ. The offer of employment will be conditional upon the Selected Employee providing a
written waiver of redundancy compensation, notice of termination of employment and the right to raise any grievance/claim in relation to termination of employment. 

 

	10.3	Accrued benefits: On and from the Demerger Date, Chorus NZ will assume, and indemnify the members of the New Telecom Group against, the obligations of any member
of the Telecom Group to pay any accrued obligations (including any amount of accrued salary and wages, annual leave, alternative holidays, long service leave and sick leave) in respect of the Transferring Employees. 

 

	10.4	Recognition of service: From the Demerger Date, Chorus NZ shall treat service by any of the Transferring Employees with the members of the Telecom Group as
service with Chorus NZ for all employment related purposes. 

  

	10.5	Redundancy: If: 

  

	 	(a)	the employment of any employee of a member of the Telecom Group is terminated due to redundancy prior to the Demerger Date and the employee is then offered employment
with a member of the New Chorus Group within three months of the Demerger Date, New Chorus must (or must procure that the relevant member of the New Chorus Group must) ensure that any offer of employment to the employee is conditional on the
employee either waiving in writing his or her right to redundancy compensation from Telecom or any other relevant member of the New Telecom Group (if he or she has not been paid any such compensation) or reimbursing Telecom or New Telecom for any
redundancy compensation he or she has received. 

  
 31 

	 	(b)	the employment of any employee of a member of the New Telecom Group or a member of the New Chorus Group is terminated due to redundancy within three months following
the Demerger Date and such employee is then offered employment with a member of the New Chorus Group or a member of the New Telecom Group respectively, that entity must ensure that any offer of employment to the employee is conditional on the
employee either waiving his or her right to redundancy compensation (if he or she has not been paid any such compensation) or reimbursing New Chorus or New Telecom any redundancy compensation he or she has received. 

 

	10.6	Government Superannuation Fund: Telecom is party to a deed with the Crown dated 25 May 1990 which relates to the Government Superannuation Fund pursuant to
the Government Superannuation Fund Act 1956 (“Superannuation Deed”). New Chorus has agreed to enter into a deed with the Crown which mirrors certain provisions of the Superannuation Deed prior to the Demerger Date. New Telecom and
New Chorus agree that, on and from the Demerger Date, where Transferring Employees are contributors to the Government Superannuation Fund pursuant to the Government Superannuation Fund Act 1956: 

 

	 	(a)	New Telecom will be liable for that proportion of employer payments to the Government Superannuation Fund in relation to the Transferring Employees that relates to the
period up to the Demerger Date, including any payment that may subsequently be required by the Government Superannuation Fund Authority to the extent relating to this period; and 

 

	 	(b)	New Chorus will be liable for that proportion of employer payments to the Government Superannuation Fund in relation to the Transferring Employees that relates to the
period on and from the Demerger Date, including any payment that may subsequently be required by the Government Superannuation Fund Authority to the extent relating to this period. 

 

	10.7	Personal grievances (or other employment claims): Should an employee of a member of the New Chorus Group raise a personal grievance (or other employment related
Claim), it will be deemed to be a Chorus Litigation Matter for the purposes of this deed and, for the avoidance of doubt, the relevant member of the New Chorus Group will be liable for all Costs, and any amount paid to the employee, incurred in
relation to personal grievance (or other employment related Claim). 

  
 32 

	10.8	Incentive Scheme Accruals: The parties agree that the Purchase Price reflects Chorus NZ’s assumption, on and from the Demerger Date, of a Transferring
Liability which reflects all accruals made by the members of the Telecom Group for Transferring Employees under Telecom’s 2011-2012 Short Term Incentive Scheme, the 2009-2010 Chorus Cash Long Term Incentive Scheme, the 2010-2011 Telecom Cash
Long Term Incentive Scheme and the 2011-2012 Equity Link Scheme and any other incentive scheme under which the Transferring Employees are entitled to benefit. On and from Demerger Date, New Chorus will, on written demand, indemnify the members of
the New Telecom Group against, all liability for any payments to Transferring Employees in relation to such incentive schemes. For the purpose of this clause, “accrual” means the amount accrued by Telecom in its latest management accounts
as at the Demerger Date in respect of any grants/awards to Transferring Employees for the proportion of the vesting period of each grant/award that is complete as at the Demerger Date. The parties acknowledge that the rates of accrual (for example,
at 1.0 times the applicable target value of a grant/award) may differ for different incentive schemes/grants, and that any actual difference (i.e. shortfall or surplus) in the amount ultimately accrued in respect of a grant/award and the amount
ultimately required to satisfy that grant/award that arises from the rate of the accrual recorded in the management accounts (for example, because the ultimate payment is at a higher or lower rate than 1.0 times the applicable target value of a
grant/award) will be to the account of New Chorus. 

  

	11.	ENVIRONMENTAL MATTERS 

  

	11.1	Acceptance of Transferring Environmental Liability: Chorus NZ will, on and from the Demerger Date, assume liability for, and will indemnify New Telecom against,
any Transferring Environmental Liability or any Claim in respect of a Transferring Environmental Liability. 

  

	11.2	Retention of Environmental Liability: Telecom acknowledges that New Telecom will retain responsibility for any Environmental Liability other than a Transferring
Environmental Liability and, on and from the Demerger Date, will indemnify New Chorus and Chorus NZ from and against any such Environmental Liability. 

  

	11.3	Transferring Resource Management Processes: The parties acknowledge that they will co-operate fully and communicate in a timely, open and honest manner to ensure
that all actions necessary to obtain and implement the Transferring Resource Management Processes in an effective and appropriate manner are completed. 

  
 33 

	11.4	Overlapping designations: The Legislation provides a mechanism for identifying the existing designations for which Telecom is responsible, those which are to be
transferred to New Chorus or Chorus NZ, and those which are to be granted back to New Telecom. The result is that both New Chorus or Chorus NZ and New Telecom will in some instances both hold a designation in respect of the same land and on the same
terms, but with the designations transferred to New Chorus or Chorus NZ being treated as earlier designations (“Earlier Designation”) under section 177 of the RMA and the designations granted back to New Telecom being treated as
later designations. Where New Chorus or Chorus NZ is responsible for an Earlier Designation: 

  

	 	(a)	New Chorus or Chorus NZ shall not unreasonably withhold its approval, as requiring authority, under section 177 of the RMA, for any activity sought to be undertaken by
New Telecom on land subject to an Earlier Designation; 

  

	 	(b)	New Chorus or Chorus NZ shall use reasonable endeavours to accommodate a request by New Telecom to undertake an activity on land subject to the Earlier Designation and
both parties shall in good faith use all reasonable endeavours to resolve a dispute before any appeal is lodged under section 179 of the RMA; and 

  

	 	(c)	prior to New Chorus or Chorus NZ undertaking, pursuant to its Earlier Designation, any activities that will prevent or hinder the activities of New Telecom in any
material way, it shall give reasonable notice to New Telecom of its intention to undertake such activities and give New Telecom a reasonable opportunity to respond. If New Telecom: 

 

	 	(i)	requests any modifications to the activities proposed by New Chorus or Chorus NZ to avoid or minimise interference with the activities of New Telecom, the parties shall
in good faith discuss any increase in cost arising from the modifications and who should bear those costs; and 

  

	 	(ii)	agrees to pay all costs (including Costs) reasonably attributable to the modifications it has requested, or as otherwise agreed by the parties, and it is practicable
for New Chorus or Chorus NZ to modify its proposed activity, then New Chorus or Chorus NZ shall undertake its activities in accordance with those modifications. 

  
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	12.	LITIGATION 

  

	12.1	Management of litigation: This clause 12 governs: 

  

	 	(a)	the ongoing management of Claims brought before the Demerger Date relating to the Demerged Business; 

 

	 	(b)	the management of certain Claims brought on and from the Demerger Date; and 

 

	 	(c)	related matters. 

  

	12.2	Management: In this clause 12, “management” includes decision-making and actions concerning the commencement, continuation and/or resolution
(and the terms thereof), resisting, defending, disputing, avoiding, counterclaiming, setting off, settling, compromising, appealing, or taking any relevant step in the Claim; and “manage” shall have a corresponding meaning.

  

	12.3	No right to bring Claims: The parties acknowledge that no member of the New Telecom Group or the New Chorus Group has any right to make a Claim against a member
of the New Chorus Group or the New Telecom Group (as the case may be) in respect of any liability (including Costs) or loss arising directly or indirectly in connection with Vested Litigation Matters, Chorus Litigation Matters, Telecom Litigation
Matters, Joint Litigation Matters, Chorus Related Claims or Telecom Related Claims, except: 

  

	 	(a)	as provided in or to enforce the provisions of this deed; 

  

	 	(b)	as provided in a Transaction Document; 

  

	 	(c)	as provided in an arrangement that is conducted on the basis of commercial, arms’ length terms and conditions between a member of the New Telecom Group and the New
Chorus Group; or 

  

	 	(d)	as provided in an arrangement that is expedient for the completion of the Demerger. 

  
 35 

	12.4	Indemnity in favour of Telecom: 

  

	 	(a)	Subject to clause 12.12(a) below and to the extent permitted by law, New Chorus will indemnify New Telecom and each member of the New Telecom Group against any
liability (including Costs) or loss incurred by any member of the New Telecom Group on and from the Demerger Date in connection with: 

  

	 	(i)	any Vested Litigation Matter; 

  

	 	(ii)	any Chorus Litigation Matter; 

  

	 	(iii)	any Joint Litigation Matter, but only to the extent that the relevant liability (including Costs) or loss relates to the Demerged Business; and

  

	 	(iv)	any Chorus Related Claim, or Telecom Related Claim, but in each case only to the extent the relevant liability (including Costs) or loss relates to the Demerged
Business. 

  

	 	(b)	The covenants of New Chorus in clause 12.4(a)(i), insofar as they apply to any judgment (including any orders as to interest and/or Costs) made by any competent court
against any member of the New Telecom Group are given for the benefit of, and are enforceable in terms of the Contracts (Privity) Act 1982 by the parties to the Vested Litigation Matters (the “Litigation Counterparties”). This deed
may be varied by the parties to it without the approval of the Litigation Counterparties. 

  

	12.5	Indemnity in favour of New Chorus: Subject to clause 12.12(a) below and to the extent permitted by law, Telecom (including as New Telecom) will indemnify New
Chorus and each member of the New Chorus Group against any liability (including Costs) or loss incurred by the New Chorus Group on and from the Demerger Date in connection with: 

 

	 	(a)	any Telecom Litigation Matter; 

  

	 	(b)	any Joint Litigation Matter, but only to the extent that the relevant liability (including Costs) or loss relates to the Retained Business; and

  

	 	(c)	any Chorus Related Claim or Telecom Related Claim, but in each case only to the extent the relevant liability (including Costs) or loss relates to the Retained
Business. 

  
 36 

	12.6	Management and Costs of Vested Litigation Matters and Chorus Litigation Matters: On and from the Demerger Date and subject to clause 12.12:

  

	 	(a)	New Chorus is to manage and bear the Costs incurred after the Demerger Date of, each Vested Litigation Matter and Chorus Litigation Matter; and

  

	 	(b)	New Chorus must keep New Telecom fully informed of and facilitate New Telecom’s involvement in such matters relating to Chorus Litigation Matters and Vested
Litigation Matters as are appropriate, having regard to New Telecom’s interest in the relevant matter. 

  

	 	(c)	In the management of such matters, New Chorus shall act in a manner that does not unreasonably prejudice New Telecom’s reputation or position and shall take into
account New Telecom’s reasonable requests in this regard. 

  

	 	(d)	If there is any disagreement between New Chorus and New Telecom in relation to the management by New Chorus of a Vested Litigation Matter or a Chorus Litigation Matter,
the reasonable requirements and directions of New Chorus will prevail. 

  

	12.7	Management and Costs of Joint Litigation Matters: 

  

	 	(a)	On and from the Demerger Date, and subject to clause 12.12, New Telecom or New Chorus (as appropriate) will cause each Joint Litigation Matter to be managed by New
Chorus (if the Joint Litigation Matter relates primarily to the Demerged Business) or New Telecom (if the Joint Litigation Matter relates primarily to the Retained Business). 

 

	 	(b)	To the extent that there is any disagreement between New Telecom and New Chorus in relation to any aspect of the management of the Joint Litigation Matter, the
reasonable requirements and directions of the party managing the Joint Litigation Matter are to prevail. 

  

	 	(c)	New Telecom and New Chorus will share the Costs incurred in relation to each Joint Litigation Matter on and from the Demerger Date in proportion to the extent to which
the benefits or liabilities accruing from such Joint Litigation Matter relate to the Retained Business, or to the Demerged Business (as the case may be). 

  
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	12.8	Claims against New Telecom on and from the Demerger Date relating to the Demerged Business 

 

	 	(a)	This clause does not apply to Vested Litigation Matters or Telecom Litigation Matters. 

 

	 	(b)	A member of the New Telecom Group will be responsible for the management of, and liability (including Costs) or loss associated with any Claim brought against it on and
from the Demerger Date, except in the circumstances set out in this clause 12.8. 

  

	 	(c)	If, on and from the Demerger Date, and subject to clause 12.12: 

  

	 	(i)	a Claim is brought against New Telecom or another member of the New Telecom Group by a third party other than New Chorus or Chorus NZ; or 

 

	 	(ii)	New Telecom or another member of the New Telecom Group becomes aware of a fact or matter which could reasonably be expected to give rise to a Claim by a third party
other than New Chorus or Chorus NZ against New Telecom or another member of the New Telecom Group, 

 and the
subject matter of that Claim relates partly or wholly to the Demerged Business, or the Claim is one in respect of which New Telecom or a member of the New Telecom Group has or may have an indemnity from New Chorus (but for the avoidance of doubt
excluding Telecom Litigation Matters) (a “Chorus Related Claim”), then (whether or not New Chorus or Chorus NZ has also been or may be joined as a party in respect of that Claim): 

 

	 	(iii)	subject to clause 17, New Telecom must promptly provide to New Chorus a copy of the documentation that constitutes the Chorus Related Claim, together with all other
information in the possession, custody or control of the New Telecom Group which is relevant to the Chorus Related Claim; 

  
 38 

	 	(iv)	to the extent permitted by law, and with the consent of any required parties, if the Chorus Related Claim relates wholly to the Demerged Business, New Telecom will,
acting reasonably, assign that Chorus Related Claim to New Chorus or Chorus NZ, in which case New Chorus will be solely responsible for the Costs and management of the Chorus Related Claim, and, subject to clause 12.12(a), will indemnify New Telecom
and each member of the New Telecom Group against any liability (including Costs) or loss incurred by New Telecom or another member of the New Telecom Group on and from the Demerger Date in connection with that Chorus Related Claim;

  

	 	(v)	unless a Chorus Related Claim has been assigned in accordance with clause 12.8(c)(iv): 

 

	 	(aa)	New Telecom may, in its absolute discretion, either retain responsibility for the management of the Chorus Related Claim or require New Chorus to assume responsibility
for the management of the Chorus Related Claim; 

  

	 	(bb)	New Telecom and New Chorus will share the Costs of the Chorus Related Claim in proportion to the extent to which the liabilities and benefits in connection with the
Chorus Related Claim relate to the Retained Business, or to the Demerged Business; and 

  

	 	(cc)	if there is any disagreement between New Chorus and New Telecom in relation to a Chorus Related Claim: 

 

	 	(A)	if the Chorus Related Claim relates primarily to the Demerged Business, the reasonable requirements and directions of New Chorus are to prevail;

  

	 	(B)	if the Chorus Related Claim relates primarily to the Retained Business, the reasonable requirements and directions of New Telecom are to prevail.

  

	12.9	Claims against New Chorus on and from the Demerger Date relating to the Retained Business: 

 

	 	(a)	This clause does not apply to Vested Litigation Matters or Telecom Litigation Matters. 

 

	 	(b)	The New Chorus Group will be responsible for the management of, and liability (including Costs) or loss associated with any Claim brought against New Chorus or Chorus
NZ on and from the Demerger Date, except in the circumstances set out in this clause 12.9. 

  
 39 

	 	(c)	If, after the Demerger Date and subject to clause 12.12: 

  

	 	(i)	a Claim is brought against New Chorus or Chorus NZ by a third party other than New Telecom or another member of the New Telecom Group; or 

 

	 	(ii)	New Chorus or Chorus NZ becomes aware of any fact or matter which could reasonably be expected to give rise to a Claim by a third party other than New Telecom or
another member of the New Telecom Group against New Chorus or Chorus NZ, 

 and the subject matter of that Claim
relates partly or wholly to the Retained Business, or the Claim is one in respect of which New Chorus or Chorus NZ has or may have an indemnity from New Telecom (but for the avoidance of doubt, excluding Vested Litigation Matters) (a
“Telecom Related Claim”), then, (whether or not New Telecom or another member of the New Telecom Group has also been or may be joined as a party in respect of that Claim): 

 

	 	(iii)	subject to clause 17, New Chorus must promptly provide a copy of the documentation that makes up the Telecom Related Claim to New Telecom, together with all other
information in the possession, custody or control of the New Chorus Group which is relevant to the Claim; 

  

	 	(iv)	to the extent permitted by law, and with the consent of any required parties, if the Telecom Related Claim relates wholly to the Retained Business, New Chorus will,
acting reasonably, assign that Telecom Related Claim to New Telecom or another member of the New Telecom Group, in which case New Telecom will be solely responsible for the Costs and management of the Telecom Related Claim, and subject to clause
12.12(a), will indemnify New Chorus and Chorus NZ against any liability (including Costs) or loss incurred by New Chorus or Chorus NZ in connection with that Telecom Related Claim; 

  
 40 

	 	(v)	unless a Telecom Related Claim has been assigned in accordance with clause 12.9(c)(iv): 

 

	 	(aa)	New Chorus may, in its absolute discretion, either retain responsibility for the management of the Telecom Related Claim or require New Telecom to assume responsibility
for the management of the Telecom Related Claim; 

  

	 	(bb)	New Telecom and New Chorus will share the Costs of the Telecom Related Claim in proportion to the extent to which the liabilities and benefits in connection with the
Telecom Related Claim relate to the Retained Business, or to the Demerged Business; and 

  

	 	(cc)	if there is any disagreement between New Chorus and New Telecom in relation to a Telecom Related Claim: 

 

	 	(A)	if the Telecom Related Claim relates primarily to the Demerged Business, the reasonable requirements and directions of New Chorus are to prevail;

  

	 	(B)	if the Chorus Related Claim relates primarily to the Retained Business, the reasonable requirements and directions of New Telecom are to prevail.

  

	12.10	Principles applying to management of certain Claims 

  

	 	(a)	The party having responsibility for the management of a Claim under clauses 12.7 to 12.9 (in this clause 12.10 the “first party”) agrees not to do, and
must not permit any of its Representatives to do, any of the following things in respect of the Claim without the prior written consent of the party who is to bear the greater proportion of the Costs in respect of the Claim under clause 12.7(c),
12.8(c)(v)(bb)or 12.9(c)(v)(bb)(respectively) (in this clause 12.10 the “second party”) (which consent must not be unreasonably withheld): 

 

	 	(i)	admit, compromise, settle or pay the Claim; or 

  

	 	(ii)	take any other steps which may in any way prejudice the prosecution, defence or challenge of the Claim including the discontinuation of any proceeding or appeal
instituted or defended by the second party in the name of the first party. 

  
 41 

	 	(b)	The first party must consult with the second party in relation to: 

  

	 	(i)	the terms of the Claim; and 

  

	 	(ii)	any action in the name of the first party to resist, defend, dispute, avoid, counterclaim, set off, settle, compromise or appeal the Claim. 

 

	 	(c)	The first party must keep, at ail times, the second party fully informed of and facilitate the second party’s involvement in all matters relating to the Claim
including: 

  

	 	(i)	retainer of solicitors and counsel; 

  

	 	(ii)	preparation and calling of evidence and the making of submissions; 

  

	 	(iii)	provision of ail documents relating to the Claim; and 

 if an appeal is to be made, all matters relating to the appeal (including the matters specified in sub-paragraphs 12.10(c)(i) to (iii)). 

 

	 	(d)	If the party having responsibility for the management of a Claim under clauses 12.7 to 12.9 is also the party which is to bear the greater proportion of the Costs in
respect of the Claim under clause 12.7(c), 12.8(c)(v)(bb) or 12.9(c)(v)(cc)(respectively), then that party must keep the other party fully informed of and facilitate the other party’s involvement in such matters relating to the Claim as are
appropriate having regard to the other party’s interest in the Claim. 

  

	12.11	Access and cooperation: Save for when the relevant Claim has been validly assigned pursuant to clause 12.8(c)(iv) or 12.9(c)(iv), in connection with any Chorus
Litigation Matter, Joint Litigation Matter, Vested Litigation Matter, Chorus Related Claim, Telecom Related Claim, or Telecom Litigation Matter to which clause 12.12(b) applies: 

 

	 	(a)	New Telecom and New Chorus must ensure that the other party and its respective Subsidiaries (and their Representatives) are given: 

 

	 	(i)	full and timely access to, and are permitted to take copies of, all relevant Records in the possession, custody or control of the party and each of its Subsidiaries for
the purposes of assessing and prosecuting or defending the Claim; 

  
 42 

	 	(ii)	reasonable and timely access to appropriate Representatives of the party and each of its Subsidiaries for the purposes of assessing the Claim or preparing evidence,
analysis, factual research and extracting data for use in or in connection with the Claim; and 

  

	 	(iii)	all other reasonable and timely assistance in relation to the Claim, 

 and each of Telecom and New Chorus agrees to take, and must procure that its relevant Subsidiaries take, reasonable steps to minimise disruption caused to the Retained Business or the Demerged Business
(as the case may be). 
  

	 	(b)	For the avoidance of doubt, New Telecom and New Chorus must ensure that their Representatives and the Representatives of each of their Subsidiaries who are potential
witnesses relevant to a Claim are made available to prepare evidence for the Claim (including, for example, meeting with counsel as necessary) and to appear and give evidence at any hearing in the Claim. 

 

	 	(c)	In the event of a disagreement between the parties as to what comprises reasonable and timely access or assistance under this clause 12.11, the reasonable directions of
the party managing the Claim shall prevail. 

  

	 	(d)	New Telecom and New Chorus must, and must ensure their respective Subsidiaries (and their Representatives) take all necessary steps and actions to enable the management
of Claims as envisaged in this clause 12. 

  

	12.12	Excluded Litigation Matters: 

  

	 	(a)	Despite the provisions of clause 7.6(b), this clause 12 and Schedule 4, Telecom and New Chorus agree that the indemnities in clauses 7.4(b), 7.4(c), 12.4, 12.5,12.8 and
12.9 do not apply to: 

  

	 	(i)	any Claim to the extent, and only to the extent, that the Claim contains any allegation of fraud made against either: 

 

	 	(aa)	a member of the Telecom Group; 

  

	 	(bb)	a member of the New Telecom Group; or 

  
 43 

	 	(cc)	a member of the New Chorus Group; 

  

	 	(ii)	any criminal prosecution against a member of the Telecom Group or the New Telecom Group (and not against the New Chorus Group); 

 

	 	(iii)	any criminal prosecution against the New Chorus Group (and not against a member of the Telecom Group or the New Telecom Group); or 

 

	 	(iv)	any dispute with any governmental agency concerning taxation (including a Claim made by a party against a governmental agency concerning taxation).

  

	 	(b)	In the case of any dispute with any governmental agency concerning taxation (including a Claim made by a party against a governmental agency concerning taxation), the
Claim will be managed by the party against which the Claim is brought or by the party by whom the Claim against the governmental agency is made (as the case may be), at its own cost, and no other provision of this clause 12 will apply to any such
dispute or Claim, except that clause 12.11 will apply to any dispute with any governmental agency concerning taxation that is a Telecom Litigation Matter. 

  

	 	(c)	Where the predominant aspect of a Claim is an allegation of fraud, or the Claim is a criminal prosecution, the Claim will be managed by the party against which the
Claim is brought, at its own cost. 

  

	12.13	Assignment of litigation proceeds: New Telecom must, and must procure that each other member of the New Telecom Group, acting reasonably and to the extent
permitted by law, assigns to New Chorus or Chorus NZ (as directed by New Chorus): 

  

	 	(a)	the proceeds of any Chorus Litigation Matter; and 

  

	 	(b)	the proceeds of any Vested Litigation Matter. 

  

	12.14	Disclosure of information: 

  

	 	(a)	Any information obtained under this clause 12 must be retained, managed and disposed of in a manner consistent with any Legacy Separation Undertakings obligations or
obligations on New Chorus to protect “Commercial Information” and “Access Seeker Confidential information”, as defined by the New Chorus Open Access Deeds of Undertakings. 

  
 44 

	 	(b)	To the extent any of the information to be provided between the parties pursuant to this clause 12 is privileged, privilege is not waived by such provision of
information. 

  

	13.	CROSS INDEMNITIES 

  

	13.1	Cross indemnity: In addition to, and without limiting, the provisions of clauses 7.6(b), and 12 except as provided for in clause 13.3, on and from the
Demerger Date: 

  

	 	(a)	New Telecom will indemnify the New Chorus Group from and against any and all losses, damages, liabilities, Claims, Costs and expenses (but excluding, for the avoidance
of doubt, any liability of the New Chorus Group to a governmental agency in respect of taxation) sustained or incurred by New Chorus or Chorus NZ on and from the Demerger Date that relate to the conduct of the Retained Business;

  

	 	(b)	New Chorus will indemnify each member of the New Telecom Group from and against any and all losses, damages, liabilities, Claims, Costs and expenses (but excluding, for
the avoidance of doubt, any liability of a member of the New Telecom Group to a governmental agency in respect of taxation) sustained or incurred by New Telecom or any of its Subsidiaries on and from the Demerger Date in connection with the
Transferring Liabilities, or that relate to conduct of the Demerged Business. 

  

	13.2	No indemnity for shares held: For the avoidance of doubt, it is acknowledged that the indemnities in clause 13.1 do not apply to any losses, damages,
liabilities, Claims, Costs or expenses to the extent they relate to any holding of shares in New Chorus by New Telecom or vice versa. 

  

	13.3	Exclusions: The parties acknowledge that the indemnities in clause 13.1 do not apply to: 

 

	 	(a)	the matters to which the indemnities in clause 7.4(b) and 7.4(c) apply; 

  

	 	(b)	any Claims referred to in clause 12.12(a) and 12.12(b); and 

  
 45 

	 	(c)	Vested Litigation Matters and Telecom Litigation Matters (to which the indemnities in clauses 12.4 and 12.5 apply) 

 

	14.	LIMITATION OF INDEMNITIES 

  

	14.1	Minimum amount of indemnity: No member of the New Chorus Group and no member of the New Telecom Group may make a Claim, including under the indemnities
contained in this deed unless: 

  

	 	(a)	the amount of any individual Claim exceeds $2,000,000; or 

  

	 	(b)	the amount of any related Claims, brought at the same time, exceeds $3,000,000. 

 

	14.2	Maximum amount of indemnity and any other Claims: The total liability of the New Telecom Group to the New Chorus Group, or of the New Chorus Group to the
New Telecom Group, under the indemnities contained in this deed and under any other Claim in relation to this deed (other than a Claim in relation to the payment of the Purchase Price), shall be limited to $300,000,000. 

 

	14.3	Indemnity period: No member of the New Chorus Group and no member of the New Telecom Group may make any Claim in connection with the indemnities contained in
this deed (but excluding the indemnities in clause 12) unless that Claim is brought prior to 30 June 2014. 

  

	15.	PAYMENT 

  

	15.1	Payment obligations: Telecom (including as New Telecom) and Chorus (including as New Chorus) will, and will procure the members of the New Telecom Group
or the New Chorus Group (as applicable) to, make all payments referred to in this deed: 

  

	 	(a)	on the date specified; and 

  

	 	(b)	in immediately available funds. 

  

	15.2	Payments to be free and clear: Each payment under this deed is to be made: 

 

	 	(a)	free of any restriction or condition; and 

  
 46 

	 	(b)	free and clear of, and (except to the extent required by law) without any deduction or withholding for or on account of, tax or on any other account, whether by way of
set-off, counterclaim or otherwise. 

  

	15.3	Indemnities on an after-tax basis: Any payment made under an indemnity contained in this deed shall be calculated and paid on an after-tax basis, taking into
account the tax consequences for the recipient of the loss, damage, cost, expense, liability or other matter giving rise to the indemnity payment and the tax consequences for the recipient of the indemnity payment. 

 

	16.	TAXATION 

  

	16.1	Lowest Price: For the purposes of the financial arrangements rules in the Income Tax Act 2007: 

 

	 	(a)	the consideration payable for any property that is to be transferred under this deed is the lowest price that the transferee and transferor would have agreed for the
property, on the day this deed was entered into, on the basis of payment in full at the time at which the first right in the property is to be transferred; and 

 

	 	(b)	the consideration payable does not include any capitalised interest. 

  

	16.2	GST: 

  

	 	(a)	Any consideration payable for a supply made pursuant to this deed is stated exclusive of GST. The party to this deed which is, or a Subsidiary of which is, the
recipient of a supply (the “Recipient”) will pay (and/or, as the case may require, the party will procure the relevant Subsidiary to pay) to the supplier of that supply (the “Supplier”), in addition to the
consideration otherwise payable for that supply, the amount of any GST chargeable on that supply. The Recipient will also pay to the Supplier the amount of any GST Penalties imposed on the Supplier as a consequence of the Recipient not having paid
within the time permitted any GST or GST Penalties payable by the Recipient under this clause 16.2. 

  

	 	(b)	Any GST payable pursuant to this clause 16.2 is payable within 14 days of presentation of a Tax Invoice issued by the Supplier to the Recipient. Any GST Penalties
payable pursuant to this clause 16.2 are payable within 14 days of presentation by the Supplier to the Recipient of a document issued by the relevant tax authority specifying the amount of the GST Penalties payable. 

  
 47 

	 	(c)	For the purposes of this clause 16.2: 

  

	 	(i)	“GST” means tax charged in New Zealand under the Goods and Services Tax Act 1985 (New Zealand) and any similar value added tax charged or levied in any
other jurisdiction; 

  

	 	(ii)	“GST Legislation” means legislation which charges or imposes GST; 

 

	 	(iii)	“GST Penalties” means any fines, penalties, additional taxes, interest or similar charges imposed by any relevant tax authority in respect of the late
payment or non-payment of any GST; and 

  

	 	(iv)	“Tax Invoice” means: 

  

	 	(aa)	for a supply subject to the Goods and Services Tax Act 1985 (New Zealand), the meaning given to the term in that legislation; or 

 

	 	(bb)	for any supply subject to GST under another jurisdiction, a document in a form prescribed by the relevant GST Legislation notifying or confirming an obligation to make
a payment and which may be necessary for the recipient of the supply to claim a credit for the GST paid or payable. 

  

	17.	CONFIDENTIALITY 

  

	17.1	Confidentiality obligation: Subject to clause 17.217.217.2: 

 

	 	(a)	each of Chorus (including as New Chorus) and Chorus NZ must, and must procure each other member of the New Chorus Group to, keep confidential and make no disclosure of:

  

	 	(i)	the existence and contents of this deed or any other Transaction Document; and 

  
 48 

	 	(ii)	Telecom Information, irrespective of how or when the information became known to New Chorus or another member of the New Chorus Group. 

 

	 	(b)	Telecom (including as New Telecom) must, and must procure each other member of the Telecom Group or the New Telecom Group to, keep confidential and make no disclosure
of: 

  

	 	(i)	the existence and contents of this deed or any other Transaction Document; and 

 

	 	(ii)	New Chorus Information, irrespective of how or when the information became known to Telecom (including as New Telecom), another member of the Telecom Group or the New
Telecom Group. 

  

	17.2	Exceptions: Confidential Information may be disclosed by a member of the New Chorus Group, a member of the Telecom Group or the New Telecom Group if:

  

	 	(a)	disclosure is required by law or in order to obtain the benefit of any exemption under the Securities Act 1978, or is necessary to comply with the listing rules of any
recognised stock exchange or is made for the purposes of obtaining any ruling or approval from any Government or regulatory authority (whether or not in New Zealand); or 

 

	 	(b)	that Confidential Information is provided in confidence to the Commerce Commission or a Government Department in order to assist that entity to carry out its public
functions; 

  

	 	(c)	disclosure is necessary to obtain the benefits of, and fulfil obligations under, this deed or any other Transaction Document; or 

 

	 	(d)	that Confidential Information already is, or becomes, public knowledge other than as a result of a breach of clause
17.117.117.1 by that party: or 

  

	 	(e)	disclosure is made to a bona fide financier or potential financier of that party or a bona fide purchaser of all of the shares, or a more than de minimis, number
of shares, or all, or a more than de minimis, part of the business, of that party, so long as: 

  

	 	(i)	that party has notified the other party of the proposed disclosure; and 

  
 49 

	 	(ii)	the person to which disclosure is to be made has entered into a confidentiality agreement in a form reasonably acceptable to the other party; or

  

	 	(f)	disclosure is made to a lawyer or accountant for that party; or 

  

	 	(g)	the parties otherwise consent to the disclosure in writing. 

  

	17.3	Disclosure of Confidential Information: Any party disclosing Confidential Information under clause 17.217.217.2
must use all reasonable endeavours to ensure that the persons receiving that Confidential Information from it do not disclose the information except in the circumstances permitted in clause 17.2(a). 

 

	17.4	Use of Confidential Information: Subject to clause 17.617.617.6: 

 

	 	(a)	each of New Chorus and Chorus NZ must not, and must procure that each other member of the New Chorus Group does not, make use of Telecom Information or any part of it;
and 

  

	 	(b)	Telecom (including as New Telecom) must not, and must procure that each other member of the Telecom Group and each other member of the New Telecom Group does not, make
use of New Chorus information or any part of it, 

 except, 

 

	 	(c)	for the performance of obligations or the exercise of rights under this deed, or any other Transaction Document; or 

 

	 	(d)	with the prior written consent of New Chorus, Chorus NZ or the relevant other member of the New Chorus Group in respect of New Chorus Information or Telecom or the
relevant other member of the Telecom Group or the New Telecom Group in respect of Telecom Information. 

  

	17.5	Return of Confidential Information: Subject to clause 17.617.617.6, a party who has received Confidential
Information from another party under this deed or other Transaction Document must, on the request of the other party, immediately deliver to that party all documents or other materials containing or referring to that information which are in its
possession, power or control or in the possession, power or control of persons who have received Confidential Information from it. 

  
 50 

	17.6	Use and disclosure of combined Confidential Information: 

  

	 	(a)	Any member of the New Chorus Group may use Confidential Information which is both Telecom information and New Chorus Information, and disclose such Confidential
Information to the extent necessary, for the purposes of the Demerged Business, in a manner consistent with any Legacy Separation Undertakings obligations, but must not otherwise use or disclose such Confidential Information.

  

	 	(b)	Any member of the Telecom Group or the New Telecom Group (as applicable) may use the Confidential Information which is both Telecom Information and New Chorus
Information, and disclose such Confidential Information to the extent necessary, for the purposes of the Retained Business, in a manner consistent with any Legacy Separation Undertakings obligations or obligations on New Chorus to protect
“Commercial Information” and “Access Seeker Confidential Information”, as defined by the New Chorus Open Access Deeds of Undertakings, but must not otherwise use or disclose such Confidential Information.

  

	17.7	No waiver of privilege: For the avoidance of doubt, all confidential information provided pursuant to this deed is provided on the basis that any applicable
privilege is not waived and that the information remains confidential in accordance with the provisions of clause 17. 

  

	18.	DISPUTE RESOLUTION 

  

	18.1	Mutual review: If on and from the Demerger Date either New Telecom or New Chorus considers there may be a disagreement or dispute which arises out of or in
connection with this deed, including any dispute as to its existence or validity, (“Dispute”), that party will give the other party written notice setting out the details of the disagreement or dispute and both parties will designate a
senior manager to review and use every reasonable effort to develop a resolution to the Dispute. If the Dispute remains unresolved for a period of 10 Business Days after delivery of the written notice, each party will refer the Dispute to their
respective Chief Executive who will use every reasonable effort to develop a workable resolution to the Dispute within a further period of 10 Business Days. If at the end of that period, the Dispute remains unresolved, the following provisions of
this clause 18 will apply. 

  
 51 

	18.2	Disputes to be arbitrated: Subject to clause 18.1, any Dispute, but excluding any dispute covered by clause 7 of Schedule 4, shall be referred to and finally
resolved by arbitration by a sole arbitrator under the Arbitration Act 1996. 

  

	18.3	Commencement: The arbitral proceedings shall commence on the date that a written request for the Dispute to be referred to arbitration, stating the subject
matter of the Dispute, is received by the respondent(s). 

  

	18.4	Appointment: The arbitrator shall be appointed by the parties to the Dispute. Failing agreement within three Business Days after, and exclusive of, the date of
receipt of the written request, the arbitrator shall be appointed by the president or vice-president for the time being of the Arbitrators’ and Mediators’ Institute of New Zealand or the nominee or such president or vice-president.

  

	18.5	Place: The place of the arbitration shall be Auckland, New Zealand. 

 

	18.6	Second Schedule: Clauses 2, 3, and 6 of the Second Schedule of the Arbitration Act 1996 shall apply to any arbitral proceedings under this deed and any party may
appeal to the High Court on any question of law arising out of an award. All other clauses in the Second Schedule shall not apply. 

  

	19.	NOTICES 

  

	19.1	Notice: Every notice or other communication (“Notice”) for the purposes of this agreement shall: 

 

	 	(a)	be in writing; and 

  

	 	(b)	be delivered in accordance with clause 19.2. 

  

	19.2	Method of service: A Notice may be given by: 

  

	 	(a)	delivery to the physical address of the relevant party; or 

  

	 	(b)	posting it by pre-paid post to the postal address of the relevant party; or 

 

	 	(c)	sending it by facsimile transmission to the facsimile number of the relevant party, so long as clause 19.4 is complied with; or 

 

	 	(d)	sending it by email to the email address of the relevant party, so long as clause 19.4 is complied with. 

  
 52 

	19.3	Time of receipt: A Notice given in the manner: 

  

	 	(a)	specified in clause 19.2(a) is deemed received at the time of delivery; 

  

	 	(b)	specified in clause 19.2(b) is deemed received three Business Days after (but exclusive of) the date of posting; 

 

	 	(c)	specified in clause 19.2(c) or clause 19.2(d) is deemed (subject to clause 19.4) received: 

 

	 	(i)	if sent between the hours of 9am and 5pm on a Business Day in the locality of the recipient, at the time of transmission; or 

 

	 	(ii)	if sub-clause (i) does not apply, at 9am on the Business Day in the locality of the recipient most immediately after the time of sending. 

 

	19.4	Facsimile and email notice: A Notice given: 

  

	 	(a)	by facsimile, is not deemed received unless (if receipt is disputed) the party giving Notice produces a facsimile transmission report of the device from which the
transmission was made which evidences full transmission, free of errors, to the facsimile number of the party given Notice; 

  

	 	(b)	by email, is not deemed received unless (if receipt is disputed) the party giving Notice produces a printed copy of the email which evidences that the email was sent to
the email address of the party given Notice. 

  

	19.5	Addresses: For the purposes of this clause the address details of each party are: 

 

	 	(a)	the details set out below; or 

  

	 	(b)	such other details as any party may notify to the other by Notice given in accordance with this clause. 

Telecom (including as New Telecom): 
 Telecom Corporation of New Zealand Limited 
 Level 2, Telecom Place 

167 Victoria Street West 
 Auckland 1142 
 New Zealand 

Facsimile No.: (64) (9) 303 3430 
 Attention: Group Company Secretary 

  
 53 

 Chorus (including as New Chorus) and Chorus NZ: 

Chorus Limited 

Level 2, Telecom Place 
 167 Victoria Street West 
 Auckland 1142 

New Zealand 

Facsimile No.: (64) (4) 472 4795 
 Attention: General Counsel and Company Secretary 
  

	20.	GENERAL 

  

	20.1	Entire agreement: This deed and the documents referred to in this deed constitute the entire obligation of the parties with respect to their subject matter and
supersede any prior expression of intent or understandings with respect to such subject matter. 

  

	20.2	Further assurances: Telecom, New Chorus and Chorus NZ will do (and will cause their respective Subsidiaries to do) all acts and things reasonably necessary to
give full effect to the transactions contemplated in this deed and, where appropriate, co-operate with each other in doing those acts and things. 

  

	20.3	Further assurance in respect of Telecom Financing Statements: In respect of each Telecom Financing Statement, New Telecom shall, as soon as reasonably
practicable after the Demerger Date, register (or procure the registration of) a financing change statement to amend the collateral description and/or secured party information contained in the Telecom Financing Statement to the extent necessary to
reflect the Demerger. 

  

	20.4	Security interests: Telecom will, and will procure that the members of the Telecom Group will, with effect on and from the Demerger Date secure releases and
discharges of any security interests (other than Permitted Encumbrances) over the Transferring Assets. 

  
 54 

	20.5	Release of guarantees and indemnities: Telecom and Chorus will, and will procure that their respective Subsidiaries will, use their best endeavours to obtain a
release of Telecom and its Subsidiaries, with effect on and from the Demerger Date, from all guarantees, indemnities and similar obligations under which they may be liable (actually or contingently) as at the Demerger Date in respect of the
Transferring Assets and Transferring Liabilities. For that purpose Chorus (including as New Chorus) will, if necessary, provide satisfactory alternative guarantees and security. If a release of any such guarantee, indemnity or similar obligation
cannot be obtained, Chorus (including as New Chorus) will indemnify Telecom (including as New Telecom) and its Subsidiaries against ail liability arising on and from the Demerger Date under that guarantee, indemnity or other obligation.

  

	20.6	Survival: Notwithstanding any other provision of this deed, if this deed is validly terminated: 

 

	 	(a)	this deed shall be of no effect, except to the extent that Claims under it arose prior to termination; and 

 

	 	(b)	the provisions of clauses 1, 17, 18, 19 and 20 shall remain in full force and effect. 

 

	20.7	Assignment: This deed is not assignable by any party. 

  

	20.8	Contracts Privity: The provisions of this deed that are expressed to confer rights on any Subsidiary of any party or any other person are for the benefit of, and
intended to be enforceable by, each such Subsidiary or other person in accordance with the Contracts (Privity) Act 1982. Notwithstanding the foregoing, the provisions of clause 7.6(b) and Schedule 4 are not intended to create any obligation for the
benefit of, or be enforceable by, any third person to whom any obligations are owed in respect of any Misplaced Asset or Misplaced Liability. This deed may be varied by the parties without the approval of any person who has a right to enforce the
provisions of this deed by virtue of this clause 20.8. 

  

	20.9	Waiver: No failure or forbearance by a party to exercise, or delay in exercising (in whole or in part), any right, power or remedy under, or in connection with,
this deed shall operate as a waiver of that right, power or remedy. A waiver of any breach of any provision of this deed shall not be effective unless that waiver is in writing and is signed by the party against whom that waiver is claimed. A
waiver of any breach shall not be, or be deemed to be, a waiver of any other or subsequent breach. 

  
 55 

	20.10	Severance: If any provision of this deed is or becomes unenforceable, illegal or invalid for any reason it shall be deemed to be severed from this deed without
affecting the validity of the remainder of this deed and shall not affect the enforceability, legality, validity or application of any other provision of this deed. 

 

	20.11	Counterparts: This deed may be signed in two counterparts (by facsimile or otherwise), each of which is deemed to be an original and both of which, when taken
together, is deemed to constitute one and the same instrument. 

  

	20.12	Governing law: This deed is governed by the laws of New Zealand. 

  

					
	EXECUTION	 		 	
			
	Executed as a deed	 		 	
			
	TELECOM CORPORATION OF NEW ZEALAND LIMITED by:	 		 	
			
	  
	 		 	  

	Signature of director	 		 	Signature of director
			
	  
	 		 	  

	Name of director	 		 	Name of director

  
 56 

					
	CHORUS LIMITED by:	 		 	
			
	  
	 		 	  

	Signature of director	 		 	Signature of director
			
	  
	 		 	  

	Name of director	 		 	Name of director
			
	CHORUS NEW ZEALAND LIMITED by:	 		 	
			
	  
	 		 	  

	Signature of director	 		 	Signature of director
			
	  
	 		 	  

	Name of director	 		 	Name of director

  
 57 

 SCHEDULE 1 
 SEPARATION ARRANGEMENT PLAN 
  

	1.	INTERPRETATION 

  

	  	Definitions 

  

	1.1	In this Separation Arrangement Plan: 

  

	 	(a)	“ASX” means ASX Limited (ABN 98 008 624 691), or the financial market operated by the Australian Securities Exchange. 

 

	 	(b)	“Bridge Facility” means the NZ$2,000,000,000 facility agreement to be entered into between Chorus as borrower and ANZ National Bank Limited, Citibank,
N.A., New Zealand branch and Westpac Banking Corporation as lenders, the proceeds of which will be used to fund the acquisition by the Chorus Group of the assets and liabilities of the Demerged Business and for general corporate purposes.

  

	 	(c)	“Business Day” means any day (other than a Saturday or a Sunday) on which banks are generally open for business in Auckland, Wellington and Sydney.

  

	 	(d)	“CFH” means Crown Fibre Holdings Limited, incorporated in New Zealand on 29 October 2009 with company number 2346751. 

 

	 	(e)	“Chorus” means Chorus Limited, incorporated in New Zealand on 1 July 2011 with company number 3454251. 

 

	 	(f)	“Chorus Constitutional Provisions” means the provisions contained in Appendix B and to be included in the revised constitution to be adopted by Chorus
in accordance with the Final Court Orders. 

  

	 	(g)	“Chorus Group” means Chorus, Chorus NZ and any company that will be a Subsidiary of Chorus immediately after the implementation of the Demerger.

  

	 	(h)	“Chorus NZ” means Chorus New Zealand Limited, incorporated in New Zealand on 1 July 2011 with company number 3454256. 

  
 58 

	 	(i)	“Chorus NZ Share” means a fully paid ordinary share in Chorus NZ. 

 

	 	(j)	“Chorus Share” means a fully paid ordinary share in Chorus. 

 

	 	(k)	“Companies Act” means the New Zealand Companies Act 1993, as amended from time to time. 

 

	 	(l)	“Court” means the High Court of New Zealand. 

  

	 	(m)	“Crown” means Her Majesty the Queen acting in right of New Zealand. 

 

	 	(n)	“Deed of Operational and Governance Undertakings” means the deed to be entered into by Chorus following the issuance of the Final Court Orders and
containing certain operational and governance undertakings given by Chorus in favour of the Crown in the form agreed between Telecom and CFH. 

  

	 	(o)	“Demerged Business” means the business conducted by the Chorus business unit prior to the Demerger Date, and certain aspects of the business currently
conducted by the Wholesale business unit prior to the Demerger Date (including: fixed line telecommunications infrastructure, fixed access and aggregation services in New Zealand) and certain aspects of the New Zealand government’s ultra-fast
broadband initiative; and certain aspects of the business conducted by the Technology and Shared Services and Corporate business units prior to the Demerger Date. 

 

	 	(p)	“Demerger” means the Court approved arrangement to effect the demerger of Chorus from Telecom, the key elements of which are described in this
Separation Arrangement Plan, subject to any amendments or variations made in accordance with the Separation Deed and/or as may be required by the Court. 

  

	 	(q)	“Demerger Date” means the date on which the Demerged Business is acquired by Chorus NZ under the Demerger and the Separation Deed and on which the
Demerger Distribution is made to Telecom Shareholders, expected to be 30 November 2011 or such other date as is determined by the board of directors of Telecom and notified by Telecom to NZX and ASX. 

 

	 	(r)	“Demerger Distribution” means the entitlement of each Telecom Shareholder to the distribution of an amount equal to the volume weighted average price
of one Chorus Share as traded on the NZSX over the last five trading days prior to the Demerger Date, for each five Telecom Shares held by that Telecom Shareholder as at 7:00 p.m. on the Record Date (subject to rounding in accordance with this
Separation Arrangement Plan), which Telecom will apply to pay for the Chorus Shares to be transferred pursuant to this Separation Arrangement Plan to Eligible Shareholders and the Sale Agent. 

  
 59 

	 	(s)	“Eligible Shareholder” means a Telecom Shareholder whose registered address as at 7:00 p.m. on the Record Date is in: 

 

	 	(i)	New Zealand, Australia, the United States, the United Kingdom, Canada, Germany, Hong Kong, Japan, Luxembourg, Norway, the Netherlands, Singapore or Switzerland; or

  

	 	(ii)	a jurisdiction in which Telecom reasonably believes that it is not prohibited and not unduly onerous or impracticable to distribute Chorus Shares to a Telecom
Shareholder pursuant to the Demerger. 

  

	 	(t)	“Final Court Orders” means the final orders of the Court approving the Demerger made under Part XV of the Companies Act. 

 

	 	(u)	“Ineligible Overseas Shareholder” means a Telecom Shareholder as at 7:00 p.m. on the Record Date that is not an Eligible Shareholder.

  

	 	(v)	“Kiwi Share Conversion Deed” means the Kiwi Share Conversion Deed dated 11 July 2011 between Telecom and the Kiwi Shareholder.

  

	 	(w)	“Kiwi Shareholder” means the Crown acting by and through the Minister of Finance. 

 

	 	(x)	“NZ$” or “NZD” means the lawful currency of New Zealand. 

 

	 	(y)	“NZSX” means the main board equity security market operated by NZX. 

 

	 	(z)	“NZX” means NZX Limited. 

  

	 	(aa)	“Property Separation Agreement” means the property separation agreement dated on or about 13 September 2011 between Telecom, Chorus and Chorus NZ.

  

	 	(bb)	“Record Date” means the date upon which the entitlement of Telecom Shareholders to participate in the Demerger Distribution is determined, expected to
be 25 November 2011 or such other date as is determined by the board of directors of Telecom and notified by Telecom to NZX and ASX. 

  
 60 

	 	(cc)	“Sale Agent” means the nominee appointed by Telecom to sell or facilitate the transfer of Chorus Shares on behalf of ineligible Overseas Shareholders.

  

	 	(dd)	“Separation Arrangement Plan” means this separation arrangement plan. 

 

	 	(ee)	“Separation Deed” means the separation deed dated on or about 13 September 2011 between Telecom, Chorus and Chorus NZ. 

 

	 	(ff)	“Subsidiary” means, in relation to any person: 

  

	 	(i)	a subsidiary within the meaning of section 5 of the Companies Act and, read where applicable, as if the entity concerned were a company incorporated under the Companies
Act; or 

  

	 	(ii)	a subsidiary in accordance with generally accepted accounting practice in New Zealand. 

 

	 	(gg)	“Telecom” means Telecom Corporation of New Zealand Limited (company number 328287 and ARBN 050 611 277). 

 

	 	(hh)	“Telecom Constitutional Provisions” means the provisions contained in Appendix A and to be included in the revised constitution to be adopted by
Telecom in accordance with the Final Court Orders. 

  

	 	(ii)	“Telecom Share” means a fully paid ordinary share in Telecom. 

 

	 	(jj)	“Telecom Shareholder” means a registered holder of Telecom Shares. 

 

	 	(kk)	“TNZL” means Telecom New Zealand Limited (company number 391406). 

 

	 	(ll)	“Trading Arrangements” means the Property Separation Agreement, the Transitional and Long Terms Services Agreements entered into, or to be entered
into, between Telecom and Chorus and their respective Subsidiaries. 

  
 61 

 Headings and references 

 

	1.2	In this Separation Arrangement Plan: 

  

	 	(a)	references to any document includes reference to that document (and, where applicable, any of its provisions) as amended, novated, supplemented, or replaced from time
to time; 

  

	 	(b)	references to times of day or dates are to New Zealand times and dates; 

  

	 	(c)	references to a clause or sub-clause is a reference to that clause or sub-clause in this Separation Arrangement Plan. 

 

	2.	SEPARATION ARRANGEMENT 

  

	2.1	Subject to any amendments or variations made in accordance with the Separation Deed and/or as may be required by the Court, the following will occur on the dates
specified and in the sequential order specified below: 

 Issuance of Final Court Orders and settlement on
exchanges 
  

	 	(a)	In accordance with the Final Court Orders, and with effect from the date of the Final Court Orders, Chorus will; 

 

	 	(i)	adopt a revised constitution that includes the Chorus Constitutional Provisions; and 

 

	 	(ii)	contemporaneously execute the Deed of Operational and Governance Undertakings. 

 

	 	(b)	In accordance with the Final Court Orders, and with effect from the date of the Final Court Orders, a revised constitution of Telecom, that includes the Telecom
Constitutional Provisions, will replace the existing constitution of Telecom. 

  

	 	(c)	Following the issuance of the Final Court Orders, the board of directors of Telecom will confirm, or otherwise determine, the Record Date and notify NZX and ASX of the
issuance of the Final Court Orders and of such Record Date accordingly. 

  
 62 

	 	(d)	On the Business Day falling seven Business Days prior to the Demerger Date (expected to be 21 November 2011): 

 

	 	(i)	Telecom will trade on the ASX on an “ex-demerger entitlements” basis. 

 

	 	(ii)	Chorus will commence trading on the ASX on a deferred settlement basis. 

  

	 	(e)	On the Business Day falling five Business Days prior to the Demerger Date (expected to be 23 November 2011): 

 

	 	(i)	Telecom will trade on the NZSX on an “ex-demerger entitlements” basis. 

 

	 	(ii)	Chorus will trade on the NZSX on a deferred settlement basis for two Business Days. 

 

	 	(f)	On the Business Day falling three Business Days prior to the Demerger Date (expected to be 25 November 2011), Chorus will recommence trading on the NZSX on a
standard settlement basis. 

  

	 	(g)	On or before 9:00 a.m. on the Record Date, the Kiwi Shareholder will provide written notice to Telecom for the conversion of the Kiwi Share into a Telecom Share in
accordance with the terms of the Kiwi Share Conversion Deed and Telecom’s constitution. 

 Demerger Date -
funding and transfer of assets 
  

	 	(h)	On the Demerger Date, Telecom will subscribe for such number of Chorus Shares as will, together with the existing Chorus Shares, enable Telecom to make the pro rata
distribution referred to in step (i) below, in consideration for an aggregate issue price to be determined having regard to each of the purchase price payable by Chorus NZ under the Separation Deed and the amount Chorus will have available from
borrowings. The share register of Chorus will be updated to record the issuance of Chorus Shares accordingly. 

  

	 	(i)	Chorus will in turn subscribe for an equivalent number of Chorus NZ Shares in consideration for an equivalent aggregate issue price. The share register of Chorus NZ
will be updated to record the issuance of Chorus NZ Shares accordingly. 

  
 63 

	 	(j)	Chorus will provide a loan to Chorus NZ of an amount sufficient (when considered together with the subscription amount received for the Chorus NZ Shares) for Chorus NZ
to pay the purchase price under the Separation Deed for the assets and liabilities of the Demerged Business (referred to in paragraph (k) below). Chorus will obtain the funds for the loan to Chorus NZ from sources which include a drawdown under
the Bridge Facility. 

  

	 	(k)	The Separation Deed becomes unconditional and legally effective as between Telecom, New Chorus and Chorus NZ and in accordance with its terms: 

 

	 	(i)	The assets and liabilities of the Demerged Business will be transferred to Chorus NZ by TNZL in consideration for payment by Chorus NZ to TNZL of the purchase price.

  

	 	(ii)	The purchase price will be determined in accordance with the Separation Deed, which requires the purchase price to be determined based on accounting book values.

  

	 	(iii)	The Trading Arrangements will be entered into and/or become legally effective. 

 Demerger Date - Demerger Distribution 
  

	 	(l)	On the Demerger Date, Telecom will make the Demerger Distribution by the following mechanism: 

 

	 	(i)	Telecom will make a pro rata distribution on the Demerger Date to Telecom Shareholders, conferring on such holders an entitlement to an amount to be ascertained by
reference to the volume weighted average price of the Chorus Shares as traded on the NZSX over the last five trading days prior to the Demerger Date (and in accordance with the ratio of Telecom Shares to Chorus Shares and the approach to rounding
described below). 

  

	 	(ii)	Each Eligible Shareholder’s entitlement to the pro rata distribution amount will be automatically applied to acquire from Telecom the relevant number of Chorus
Shares to be distributed to that Telecom Shareholder. Each Eligible Shareholder will receive a distribution of one Chorus Share for every five Telecom Shares held, with the number of Chorus Shares to be rounded if necessary to the nearest whole
number in circumstances where there may otherwise be fractional interests in Chorus Shares. 

  
 64 

	 	(iii)	In the case of Ineligible Overseas Shareholders, the Chorus Shares that such holders would otherwise have been entitled to receive as a result of the Demerger
Distribution will be transferred to the Sale Agent, who will then sell them and pay to each Ineligible Overseas Shareholder its share of the net proceeds of sale of those Chorus Shares. 

 

	 	(iv)	The share register of Chorus will be updated to record the change in its shareholding as a consequence of the Demerger Distribution. 

 

	 	(m)	Telecom will record the Demerger Distribution in its accounts partly as a return of capital and partly as a distribution of retained earnings. The amount of the return
of capital part will be calculated by: 

  

	 	(i)	dividing an amount “A” (being the number of Chorus Shares on issue immediately following the Demerger Distribution multiplied by the volume weighted average
price of Chorus Shares as traded on the NZSX over the last five trading days prior to the Demerger Date); by 

  

	 	(ii)	the sum of amount “A” referred to in subparagraph (i) and an amount “B” (being the number of Telecom Shares on issue immediately following the
Demerger Distribution multiplied by the volume weighted average price of Telecom Shares as traded on the NZSX over the last five trading days prior to the Demerger Date on the basis that the Telecom Shares trade on an ex-demerger entitlements basis
on the NZSX for the whole of this period); and 

  

	 	(iii)	multiplying the result by the balance of Telecom’s share capital account immediately before the Demerger Date. 

The part of the distribution that is not a return of capital (as calculated above) will be a dividend for financial reporting purposes.

  
 65 

	 	(n)	On the Business Day immediately following the Demerger Date (expected to be 1 December 2011), Chorus will recommence trading on the ASX on a standard settlement
basis. 

  
 66 

 APPENDIX A 
 TELECOM CONSTITUTIONAL PROVISIONS 
 PART A: Definitions 

Defined Terms 
  

 
 The following expressions have the following
meanings: 
 “Chorus Group” means Chorus Limited, and Chorus New Zealand Limited (the New Zealand company that
undertakes the business of the supply of fixed access and aggregation services in New Zealand, as the owner and/or operator of a telecommunications network) which have been established in connection with Structural Separation; 

“Crown” means Her Majesty the Queen in right of New Zealand acting by and through the Minister of Finance; 

“Deed” means the Deed Relating to Conversion of Kiwi Share dated 11 July 2011 between the Company and the Crown, and
includes that document as amended, varied, novated or substituted from time to time; 
 “Final Court Orders”
means the final orders of the Court in respect of Structural Separation made under Part XV of the Act (as amended); 

“special resolution” means: 
  

	 	(a)	subject to paragraph (b) below, a resolution approved by a majority of 75 percent of the votes of those shareholders entitled to vote and voting on the question;
and 

  

	 	(b)	following any conversion of the Kiwi Share upon receipt of written notice in accordance with clause 3.5 of the First Schedule to the constitution, but for so long only
as Structural Separation has not occurred and been effected in accordance with the Final Court Orders, on any resolution to amend or remove clause 10 of the First Schedule or any of the definitions or clauses listed in clause 10.1(a) of the First
Schedule, or any resolution to revoke this constitution or adopt a constitution which has the effect of altering or removing clause 10 of the First Schedule or any of the definitions or clauses listed in clause 10.1(a) of the First Schedule, a
resolution approved by a majority of 100 percent (or, if specified in the Deed at any time, 75 percent) of the votes of those shareholders entitled to vote and voting on the question; 

  
 67 

 “Structural Separation” means the Court approved arrangement to effect the
demerger and structural separation of the Chorus Group from the Company. 

  
 68 

 PART B: Operative Provisions Relevant to Ownership Restrictions 

Entrenchment 
  

 
  

	10.	No amendment to the Constitution 

  

	10.1	The clauses and definitions of this constitution to which paragraph (b) of the definition of “special resolution” applies are: 

 

	 	(a)	the following definitions in clause 1.1 of this constitution, or defined by reference to the Rules in clause 1.2 of this constitution or by reference to the Act in
clause 1.3 of this constitution: “this constitution”, “Board”, “Chorus Group”, “Company”, “Crown”, “Deed”, “director”, “Final Court Orders”, “holding company”,
“New Zealand citizen”, “share register”, “the Secretary”, “security”, “share”, “shareholder”, “special resolution”, “Structural Separation”; 

 

	 	(b)	clause 7 of this constitution; 

  

	 	(c)	clause 8 of this constitution; 

  

	 	(d)	clause 12.5 of this constitution; 

  

	 	(e)	clause 18.3 and 18.4 of this constitution; 

  

	 	(f)	the First Schedule; and 

  

	 	(g)	clause 21 and 22 of the Fifth Schedule. 

  

	10.2	No act or omission to act that contravenes or fails to comply with any of the clauses or provisions specified in clause 10.1, whether or not the act or omission is that
of the Board or the shareholders in a meeting and whether or not the act or omission has been approved by a special resolution of shareholders, may be undertaken by the Board or the Company. 

 

	7.	Compliance with Deed 

 The Company must
comply with all of its obligations under the Deed (unless, for the avoidance of doubt, it has been terminated with the consent of the Crown). Notwithstanding this clause 7, the Deed may be cancelled or terminated, or varied, at any time by the
parties to it by written agreement without the consent or approval of shareholders under the Act or this constitution. 

  
 69 

	8.	Entrenchment provisions 

 Upon Structural
Separation having occurred and having been effected in accordance with the Final Court Orders: 
  

	(a)	the definition of “Deed” and paragraph (b) of the definition of “special resolution” in clause 1.1; 

 

	(b)	clause 7; 

  

	(c)	clause 6 of the First Schedule; 

  

	(d)	clause 10 of the First Schedule, 

 shall cease
to apply and all references to the same in this constitution shall cease to have any further effect or application. 

  
 70 

 PART C: Amended Provisions 
 First Schedule: Kiwi Share and rights of Kiwi Shareholder and other matters 
 Conversion
of Kiwi Share 
  
  

 

	3.5	The Kiwi Shareholder may convert the Kiwi Share into an ordinary share at any time, by notice in writing to the Secretary. In that event the Kiwi Share shall be
converted into an ordinary share as from the date of receipt of the notice by the Secretary, the rights and limitations relating to ordinary shares shall be attached to the share in place of the rights and limitations specified in this clause 3,
there shall cease to be a Kiwi Share and a Kiwi Shareholder, clauses 3 (except this clause 3.5) 4 and 5 shall cease to apply, and all references to the Kiwi Share and the Kiwi Shareholder in this constitution shall cease to have any application.

 Shareholding of non-New Zealand national 

 
  
  

	6.2	No person who is not a New Zealand national shall have a relevant interest in more than 49.9 percent of the total voting shares for the time being without, and except
in accordance with the terms of, the prior written approval of the Board given under this clause 6.2. 

  
 71 

 APPENDIX B 
 CHORUS CONSTITUTIONAL PROVISIONS 
 PART A: Definitions 

Defined Terms 
  

 
 In this constitution the following expressions
have the following meanings: 
 “the Act” means the Companies Act 1993; 

“ASX” means ASX Limited or the financial market operated by ASX Limited, as the context requires; 

“ASX Rules” means the listing rules of ASX and any other rules of ASX or its subsidiaries which are applicable while the
Company is admitted to the official list of ASX, each as amended or replaced from time to time, except to the extent of any express written waiver; 
 “Crown” means Her Majesty the Queen in right of New Zealand; 

“the Company” means Chorus Limited; 
 “this constitution” means this constitution as it may be altered from time to time in accordance with the Act; 
 “Deed” means the deed relating to certain operational and governance undertakings between the Company and the Crown entered into, or to be entered into, by the Company following the
issuance of the Final Court Orders, and includes that document as amended, varied, novated or substituted from time to time; 

“New Zealand citizen” means any New Zealand citizen, or any person who has attained the age of 18 years and is of full
capacity who would, in the opinion of the Board, meet the requirements for citizenship set out in section 8(2) of the Citizenship Act 1977 (or any provision enacted in substitution for that section) if that person made an application for citizenship
on the date on which his or her status is considered for the purposes of this constitution; 

  
 72 

 “NZX” means NZX Limited, its successors and assigns and, as the context
permits, includes any duly authorised delegate of NZX; 
 “ordinary resolution” has the same meaning in relation
to the Company as the expression “Ordinary Resolution of the Issuer” under the Rules; 
 “the Rules”
means the Listing Rules applying to the NZSX and NZDX markets (or any successor to those markets) as altered or substituted from time to time by NZX; 
 “Secretary” means any person or persons appointed as Secretary of the Company pursuant to clause 27 of this constitution, and includes a deputy secretary; 

“special resolution” means: 
  

	 	(a)	subject to paragraph (b) below, a resolution approved by a majority of 75 percent of the votes of those shareholders entitled to vote and voting on the question;
and 

  

	 	(b)	for so long as clauses 4.4 and 4.5 of the Deed remain in full force and effect, on any resolution to amend or remove clause 6 of the First Schedule or any of the
definitions or clauses listed in clause 6.1 of the First Schedule, or any resolution to revoke this constitution or adopt a constitution which has the effect of altering or removing clause 6 of the First Schedule or any of the definitions or clauses
listed in clause 6.1 of the First Schedule, a resolution approved by a majority of 100 percent (or, if specified in the Deed at any time, 75 percent) of the votes of those shareholders entitled to vote and voting on the question;

 “written” or “in writing” in relation to words, figures and symbols includes
all modes of presenting or reproducing those words, figures and symbols in a tangible and visible form. 

  
 73 

 PART B: Operative Provisions Relevant to Ownership Restrictions 

Shares 
  

 
  

	11.4.	Board must refuse or delay a transfer 

 The Board must refuse or delay the registration of any transfer of equity securities if permitted to do so by the Act, Rules, ASX Rules, in any of the following circumstances: 

 

	 	(a)	when it must do so under clause 4 of the First Schedule; or 

  

	 	(b)	when the registration of the transfer would or would be likely to breach clause 4 of the First Schedule. 

 

	11.5	The Board may require forfeiture of securities 

 The Board may by notice to a holder of securities require the forfeiture of that holder’s securities where those securities have been registered under a system of transfer approved under section 7 of
the Securities Transfer Act 1991 and the Board has reasonable grounds to believe that it would have had grounds under clause 11.3 or 11.4 to refuse to register the transfer at the time the transfer was registered. 

 

	11.6	Registration not to affect other powers 

 The registration of any transfer shall not prejudice or affect in any way the powers exercisable by the Board under clause 2 of the First Schedule or otherwise. 

  
 74 

 Board Composition 
  

 
 Half of Board to be New Zealand citizens

  

	17.4	A person who is not a New Zealand citizen shall not be eligible for appointment or election as a director if, immediately after his or her appointment or election as
such, the number of directors who are New Zealand citizens would be less than one half of the total number of directors then in office. 

  

	17.5	If at any time the number of directors who are New Zealand citizens is reduced below one half of the total number of directors then in office, the Board shall ensure
(whether by exercising its powers under clause 17.12 or otherwise) that within two months of the date of that reduction, sufficient directors are appointed so that not less than one half of the total number of directors then in office are New
Zealand citizens. 

  
 75 

 Voting 
 Fifth Schedule: Proceedings of the Board 
  

 
  

	21.1	Voting on resolutions 

Subject to clause 22.1, each director has one vote. However, a director must not vote where that director is not permitted to vote by the
Rules or this constitution. A resolution of the Board is passed if it is agreed to by all directors present without dissent or if a majority of the votes cast on it are in favour of it. A director present at a meeting of the Board may abstain from
voting on a resolution, and any director who abstains from voting on a resolution will not be treated as having voted in favour of it for the purposes of the Act. 
  

	22.1	Chairperson shall not have a casting vote 

 The chairperson shall not have a casting vote. 

  
 76 

 Entrenchment 
  

 
  

	6	No amendment to the Constitution 

  

	6.1	The clauses and definitions of this constitution to which paragraph (b) of the definitions of “special resolution” applies are: 

 

	 	(a)	the following definitions in clause 1.1 of this constitution, or defined by reference to the Rules in clause 1.2 of this constitution or the Act in clause 1.3 of this
constitution: “this constitution”, “Board”, “Company”, “director”, “holding company”, “New Zealand citizen”, “share register”, “the Secretary”, “security”,
“share”, “shareholder”, “special resolution”; 

  

	 	(b)	clause 7 of this constitution (Compliance with Deed); 

  

	 	(c)	clause 11.6 of this constitution (Registration not to affect other powers); 

 

	 	(d)	clauses 17.4 and 17.5 of this constitution (Half of Board to be New Zealand citizens); 

 

	 	(e)	this Schedule; 

  

	 	(f)	clause 21 (Voting on resolutions) and 22 (Chairperson shall not have a casting vote) of the Fifth Schedule (Proceedings of the Board). 

 

	6.2	No act or omission to act that contravenes or fails to comply with any of the clauses or provisions specified in clause 6.1, whether or not the act or omission is that
of the Board or the shareholders in a meeting and whether or not the act or omission has been approved by a special resolution of shareholders, may be undertaken by the Board or the Company. 

 

	7.	Compliance with Deed 

  

	7.1	The Company must comply with all of its obligations under the Deed (unless, for the avoidance of doubt, it has been terminated with the consent of the Crown).
Notwithstanding this clause 7.1, the Deed may be cancelled or terminated, or varied, at any time by the parties to it by written agreement without the consent or approval of shareholders under the Act or this Constitution. 

  
 77 

 PART C: OWNERSHIP RESTRICTIONS SCHEDULE 
 First Schedule: Ownership restrictions 
  

	1	Definitions 

 In this
Schedule, if not inconsistent with the context: 
 “affected share” means any share which is treated as such
pursuant to clause 3; 
 “capital” means the share capital of the Company; 

“employee” means an employee or officer of the Company or of any subsidiary or associated company of the Company, a
labour-only contractor, consultant, or consultant company who or which contracts with the Company or with any subsidiary or associated company of the Company, any person whose services are provided or are to be provided to the Company or to any
subsidiary or associated company of the Company pursuant to any contract or other arrangement, any trustee or trustees on behalf of any of the above persons, and any trustee or trustees of or in respect of any pension, superannuation or like fund
established for the benefit of any of the above persons; 
 “New Zealand business” means, for the purposes of
paragraph (d) of the definition of the term New Zealand national, any one or more of the following: 
  

	 	(a)	a person exempted from the requirements of Parts 2 and 3 of the Overseas Investment Regulations 2005 by virtue of an exemption notice issued under those regulations;

  

	 	(b)	any person named in, or in a schedule to, any such exemption notice; 

  

	 	(c)	if the regulations referred to in paragraph (a) of this definition are revoked, any person falling within that paragraph or paragraph (b) of this definition
at the date of the revocation; 

  

	 	(d)	any subsidiary of any person referred to in paragraph (a) or paragraph (b) or paragraph (c) of this definition; 

 

	 	(e)	underwriters or sub-underwriters of any offer of voting shares for subscription or purchase; 

  
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 “New Zealand national” means: 

 

	 	(a)	any New Zealand citizen, or any person who has attained the age of 18 years and is of full capacity who would, in the opinion of the Board, meet the requirements for
citizenship set out in section 8(2) of the Citizenship Act 1977 (or any provision enacted in substitution for that section) if that person made an application for citizenship on the date on which his or her status as a New Zealand national is
considered for the purposes of this constitution; 

  

	 	(b)	the Crown or any department or instrument of the executive government of New Zealand or any person acting on behalf of the Crown or any such department or instrument;

  

	 	(c)	any municipal, local, statutory or other authority formed or established in New Zealand or any instrument of local government in New Zealand; 

 

	 	(d)	any New Zealand business; 

  

	 	(e)	any company, or other body corporate, that - 

  

	 	(i)	is established in New Zealand and has its registered office in New Zealand and that is substantially owned and effectively controlled by persons coming within any of
paragraphs (a) to (d) of this definition; or 

  

	 	(ii)	is not an overseas person within the meaning of the Overseas Investment Act 2005; 

 

	 	(f)	the trustees of any employee share purchase scheme operated by way of a trust for the benefit of any employees, where all the trustees are persons coming within any of
paragraphs (a) to (e) of this definition and where all voting rights in respect of all shares to which the scheme relates are held by the trustees; 

 “person” includes a natural person, a company, a corporation, and any combination or association of natural persons or corporate or unincorporated bodies (in each case whether or not
having a separate legal identity); 
 “relevant interest” has the meaning set out in clause 5; 

“representative” means a person authorised by a corporation in accordance with clause 49 of the Fourth Schedule;

  
 79 

 “subsidiary” has the meaning set out in section 5 of the Act (read as if
the expression “company” in that subsection included any body corporate, wherever incorporated); 
 “voting
share” means a security that confers a right to vote at meetings of the shareholders of the Company (whether or not there is any restriction or limitation on the number of votes that may be cast by or on behalf of the holder of the
security), not being a right to vote that, under the conditions attached to the security, is exercisable only in one or more of the following circumstances: 
  

	 	(a)	during a period in which a dividend (or part of a dividend) in respect of the security is in arrears; 

 

	 	(b)	on a proposal to reduce the capital; 

  

	 	(c)	on a proposal that affects rights attached to the security; 

  

	 	(d)	on a proposal to put the Company into liquidation; 

  

	 	(e)	on a proposal for the disposal of the whole of the property, business, and undertaking of the Company; 

 

	 	(f)	during the liquidation of the Company; 

 For the purposes of this Schedule, a body corporate is related to another body corporate if: 
  

	 	(a)	the other body is its holding company or subsidiary; or 

  

	 	(b)	there is another body corporate to which both bodies are related by virtue of paragraph (a) of this definition, and related body corporate has a corresponding
meaning. 

  

	2	Limitation on shareholdings 

  

	2.1	No person shall have a relevant interest in 10 percent or more of the total voting shares for the time being without, and except in accordance with, the prior written
approval of the Crown given under the Deed (unless it has been terminated with the consent of the Crown). 

  

	2.2	No person who is not a New Zealand national shall have a relevant interest in more than 49.9 percent of the total voting shares for the time being without, and except
in accordance with the terms of, the prior written approval of the Crown given under the Deed (unless it has been terminated with the consent of the Crown). 

  
 80 

	3	Power to sell where clause 2 breached 

  

	3.1	The provisions of clauses 3.2 to 3.11 inclusive shall apply if the Board or, pursuant to the Deed (unless it has been terminated with the consent of the Crown), the
Crown, determines that there are reasonable grounds for believing that a person has a relevant interest in voting shares in breach of clause 2. 

  

	3.2	After such determination, the Board must (except where the prior written approval of the Crown has been given under the Deed), by notice in writing served on any
registered holder of voting shares to which the determination relates, require that holder to lodge with the Board within 21 days of the date on which such notice is served by the Board, a statutory declaration (or other disclosure if required by
the Board) giving such information as the Board may reasonably require for the purposes of determining whether to exercise its powers under this clause 3. 

  

	3.3	Where the registered holder of any voting shares does not comply with clause 3.2, or the Board in its discretion considers that any disclosure required by clause 3,2 or
other information reveals that any person, without the written consent of the Crown, holds a relevant interest in any voting shares in contravention of clause 2, the Board must (except where the prior written approval of the Crown has been given
under the Deed (unless it has been terminated with the consent of the Crown)), subject to clause 3.4, serve a notice on the registered holder of those voting shares declaring those voting shares to be affected shares. 

 

	3.4	The Board shall serve notice upon the registered holder of any voting shares of its intention to declare those shares to be affected shares. The holder may make
representations to the Board as to why any such voting shares should not be treated as affected shares, within 14 days of receiving the above mentioned notice from the Board. If after taking into consideration any such representations, the Board in
its discretion (but acting reasonably on the basis of evidence available and resulting from the Board’s due enquiry, which inquiry must be made by it) determines that such shares shall be treated as affected shares, it must (except where the
prior written approval of the Crown has been given under the Deed (unless it has been terminated with the consent of the Crown)) immediately serve a notice on the registered holder declaring those voting shares to be affected shares.

  
 81 

	3.5	A registered holder of affected shares shall, unless the prior written approval of the Crown has been given under the Deed (unless it has been terminated with the
consent of the Crown), not be entitled to vote in respect of such affected shares at any shareholders’ or class meeting of the Company and in that event the votes attached to such affected shares shall vest in and may be exercised by the
chairperson of any such meeting who may act entirely at his or her discretion. This shall be without prejudice to the right of any such registered holder to attend or speak at any shareholders’ or class meeting of the Company.

  

	3.6	A registered holder of affected shares shall, within three months (or such longer period as the Board, may determine, provided that such determination by the Board is
the subject of a written approval of the Crown given under the Deed (unless it has been terminated with the consent of the Crown)), of receiving the notice declaring those voting shares to be affected shares, ensure that either the affected shares
or one or more persons’ relevant interests therein are disposed of, in whole or in part, so that no person has a relevant interest in the affected shares in breach of clause 2. If, after three months (or such longer period determined as
set out above), the Board is not satisfied that such a disposal has been made, the Board must (except where the prior written approval of the Crown has been given under the Deed (unless it has been terminated with the consent of the Crown)) arrange
for the sale of some or all of the affected shares on behalf of the registered holder at the best price reasonably obtainable at the relevant time, based upon advice obtained by it for the purpose, so that no person has a relevant interest in the
affected shares in breach of clause 2. For this purpose, the registered holder shall be deemed to have appointed, and does hereby appoint, the Company as its agent and its attorney, in each case with full authority to act on its behalf in
relation to the sale of the affected shares and to sign all documents relating to such sale and transfer of the affected shares and the Board must (except where the prior written approval of the Crown has been given under the Deed (unless it has
been terminated with the consent of the Crown)) register a transfer of the affected shares so sold, whether or not the transfer has been properly completed. 

 

	3.7	If the Board considers that no person has a relevant interest in breach of clause 2, in any voting shares which have been declared to be affected shares, (whether
because of the sale of the affected shares or otherwise), it shall withdraw the declaration. On withdrawal, those voting shares shall cease to be affected shares. The Board shall serve notice on the then holder of those voting shares of such
withdrawal within 14 days of having so resolved. 

  
 82 

	3.8	The Board shall not be obliged to serve any notice required under this clause to be served upon any person if it does not know either the identity or address of the
person. The absence of service of such a notice in such circumstances, and any accidental error in or failure to give any notice to any person upon whom notice is required to be served under this clause shall not prevent the implementation of or
invalidate any procedure under this clause. Clauses 29.1 to 29.8 of this constitution shall apply to the service on persons of notices required under this clause 3 as if references in clauses 29.1 to 29.8 of this constitution to shareholders were
references to those persons and references to the registered addresses of shareholders were references to the last addresses of those persons known to the Company. 

 

	3.9	Any resolution or determination of, or decision or declaration or exercise of any discretion or power by, the Board or by the chairman of any meeting under or pursuant
to this clause 3 shall, provided the prior written approval of the Crown to such resolution or determination of, or decision or declaration has been given under the Deed (unless it has been terminated with the consent of the Crown) be final and
conclusive; and any disposal or transfer made, or other things done, by or on behalf of, or on the authority of, the Board pursuant to this clause 3, and which is strictly in accordance with the written approval of the Crown given under the Deed
(unless it has been terminated with the consent of the Crown), shall be conclusive and binding on all persons concerned and shall not be open to challenge, whether as to its validity or otherwise on any ground whatsoever. 

 

	3.10	The proceeds of sale of any voting shares sold on behalf of the registered holder under this clause 3 shall be applied as follows: 

 

	 	(a)	first, in payment of any expenses incurred in regard to the sale; 

  

	 	(b)	the residue (if any) shall be paid to, or in accordance with a direction of, the person who was the registered holder of the voting shares immediately before the sale.

  

	3.11	A certificate signed by a director and countersigned by the Secretary, or by a second director, that a power of sale under this clause 3 has arisen and is exercisable
by the Board, or that a voting share has been duly transferred under this clause 3 on the date stated therein, shall be conclusive evidence of the facts stated therein. 

  
 83 

	3.12	Any approval or consent required of the Crown under the Deed (unless it has been terminated with the consent of the Crown) may be given or withheld in the sole
discretion of the Crown and on such terms and conditions as the Crown thinks fit. The giving of any such approval or consent shall not derogate from the need to obtain any approval or consent of the Crown under any enactment.

  

	4	Transfers of shares 

  

	4.1	The Board must (except where the prior written approval of the Crown has been given under the Deed (unless it has been terminated with the consent of the Crown))
decline to register a transfer of any voting shares if, in the reasonable opinion of the Board after due enquiry by it (which inquiry must be made by the Board), any person would, upon transfer, have a relevant interest in those voting shares in
breach of clause 2. 

  

	4.2	The Board shall, if it is able to do so, decline to register a transfer of voting shares if it is aware that the acquisition of the voting shares by the transferee
results, or would result, in a breach of clause 2. 

  

	5	Meaning of “relevant interest” 

  

	5.1	For the purpose of this constitution, a person has a relevant interest in a voting share (whether or not that person is the registered holder of it) if that person:

  

	 	(a)	is a beneficial owner of the voting share; or 

  

	 	(b)	has the power to exercise any right to vote attached to the voting share; or 

 

	 	(c)	has the power to control the exercise of any right to vote attached to the voting share; or 

 

	 	(d)	has the power to acquire or dispose of the voting share; or 

  

	 	(e)	has the power to control the acquisition or disposition of the voting share by another person; or 

 

	 	(f)	under, or by virtue of, any trust, agreement, arrangement, or understanding relating to the voting share (whether or not that person is a party to it):

  

	 	(i)	may at any time have the power to exercise any right to vote attached to the voting share; or 

  
 84 

	 	(ii)	may at any time have the power to control the exercise of any right to vote attached to the voting share; or 

 

	 	(iii)	may at any time have the power to acquire or dispose of the voting share; or 

 

	 	(iv)	may at any time have the power to control the acquisition or disposition of the voting share by another person. 

 

	5.2	For the purposes of this constitution, where two or more persons act jointly or in concert in respect of the exercise of the rights attaching to a voting share in which
any one or more of those persons has a relevant interest, then each of those persons shall be deemed to have a relevant interest in the voting share. 

  

	5.3	A body corporate or other body has a relevant interest in a voting share in which another body corporate that is related to that body corporate or other body has a
relevant interest. 

  

	5.4	A person who has, or may have, a power referred to in any of clauses 5.1.1 to 5.1.6 has a relevant interest in a voting share regardless of whether the power:

  

	 	(a)	is expressed or implied; 

  

	 	(b)	is direct or indirect; 

  

	 	(c)	is legally enforceable or not; 

  

	 	(d)	is related to a particular voting share or not; 

  

	 	(e)	is subject to restraint or restriction or is capable of being made subject to restraint or restriction; 

 

	 	(f)	is exercisable presently or in the future; 

  

	 	(g)	is exercisable only on the fulfilment of a condition; 

  

	 	(h)	is exercisable alone or jointly with another person or persons. 

  

	5.5	A power referred to in clause 5.1 exercisable jointly with another person or persons is deemed to be exercisable by either or any of those persons.

  
 85 

	5.6	A reference to a power includes a reference to a power that arises from, or is capable of being exercised as the result of, a breach of any trust, agreement,
arrangement, or understanding, or any of them, whether or not it is legally enforceable. 

  

	5.7	For the purposes of clause 2, notwithstanding clauses 5.1 to 5.6, no account shall be taken of a relevant interest of a person in a voting share if:

  

	 	(a)	the ordinary business of the person who has the relevant interest consists of, or includes, the lending of money or the provision of financial services, or both, and
that person has the relevant interest only as security given for the purposes of a transaction entered into in the ordinary course of the business of that person; or 

 

	 	(b)	that person has the relevant interest by reason only of acting for another person to acquire or dispose of that voting share on behalf of the other person in the
ordinary course of business of a sharebroker and that person is a member of a stock exchange; or 

  

	 	(c)	that person has the relevant interest solely in its capacity as a recognised clearing house, a nominee of a recognised clearing house, a recognised stock or investment
exchange or a nominee of a recognised stock or investment exchange; or 

  

	 	(d)	that person has the relevant interest solely in its capacity as a custodian or depository under arrangements whereby that person holds shares in the Company and either
itself or some other person issues receipts or other securities evidencing the right to receive such shares; or 

  

	 	(e)	that person has the relevant interest solely in its capacity as an underwriter in respect of obligations (whether contingent or otherwise) to acquire or subscribe for
shares in the Company pursuant to an underwriting or subscription agreement; or 

  

	 	(f)	that person has the relevant interest by reason only that he or she has been authorised by resolution of the directors or other governing body of a body corporate to
act as its representative at any meeting of shareholders or class of shareholders of the Company; or 

  

	 	(g)	that person has the relevant interest solely by reason of being appointed as a proxy in accordance with clause 43 of the Fourth Schedule to vote at any meeting of
shareholders, or of a class of shareholders, of the Company; or 

  
 86 

	 	(h)	that person: 

  

	 	(i)	is a trustee corporation or a nominee company; and 

  

	 	(ii)	has the relevant interest by reason only of acting for another person in the ordinary course of business of that trustee corporation or nominee company; or

  

	 	(i)	the person has the relevant interest by reason only that the person is a bare trustee of a trust to which the voting share is subject; or 

 

	 	(j)	that person has the relevant interest solely in its capacity as a trustee of an employee share purchase scheme of the Company. 

 

	5.8	For the purposes of clause 5.7(i), a trustee may be a bare trustee notwithstanding that he or she is entitled as a trustee to be remunerated out of the income or
property of the trust. 

  
 87 

 SCHEDULE 2 
 CONDITIONS 
 The obligations of Telecom, New Telecom, Chorus, New Chorus and Chorus NZ to
complete the transactions contemplated by this deed will be subject to the fulfilment, or the waiver (where applicable) by each of them, of each of the following conditions at or prior to the Demerger Date: 

 

	(a)	an Order in Council having been made under section 36 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011; 

 

	(b)	an Order in Council having been made under section 46 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 approving a proposal signed by or
on behalf of Telecom and Chorus; 

  

	(c)	an Order in Council having been made under section 46 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 approving any further proposal
signed by or on behalf of Telecom and Chorus prior to the application for Final Court Orders having been filed; 

  

	(d)	the Final Court Orders having been obtained in form and substance satisfactory to each of them, acting reasonably; and 

 

	(e)	conditional approval of listing of New Chorus on the NZSX and ASX having been obtained. 

  
 88 

 SCHEDULE 3 
 TRANSITIONAL AND LONG TERM SERVICES AGREEMENTS 
  

	(a)	Chorus Services Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(b)	Chorus Wholesale Commercial Services Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(c)	The general terms of the Crown Fibre Holdings Limited Wholesale Services Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited.

  

	(d)	Agency Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(e)	Gen-i Business Agreement to be entered into by Gen-i (a division of Telecom New Zealand Limited) and Chorus NZ. 

 

	(f)	Shared Systems Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(g)	Third Party Fibre Sharing Agreements to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(h)	Network Electronics Sharing Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(i)	Fibre Repair Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(j)	Transitional Services Agreement to be entered into by Chorus NZ and Telecom New Zealand Limited. 

 

	(k)	T2/C2 Master Lease to be entered into by Telecom New Zealand Limited (or Telecom Corporation of New Zealand Limited where this company owns, or leases, the relevant
site) (as landlord) and Chorus NZ (as tenant). 

  

	(l)	C2/T2 Master Lease to be entered into by Chorus NZ (as landlord) and Telecom New Zealand Limited (as tenant). 

  
 89 

	(m)	Deed of Lease (People Lease) to be entered into by Telecom New Zealand Limited (or Telecom Corporation of New Zealand Limited where this company owns, or leases, the
relevant site) (as landlord) and Chorus NZ (as tenant). 

  

	(n)	Deed of Lease (People Lease) to be entered into by Chorus NZ (as landlord) and Telecom New Zealand Limited (as tenant). 

 

	(o)	An Exchange Space Service agreement to be entered into by Chorus NZ (as the service provider) and Telecom New Zealand Limited. 

 

	(p)	An Exchange Space Service agreement to be entered into by Telecom New Zealand Limited (or Telecom Corporation of New Zealand Limited where this company owns, or leases,
the relevant site) (as the service provider) and Chorus NZ. 

  

	(q)	A Commercial Wireless Co-location Service agreement to be entered into by Chorus NZ (as the service provider) and Telecom New Zealand Limited. 

 

	(r)	A Commercial Wireless Co-location Service agreement to be entered into by Telecom New Zealand Limited (or Telecom Corporation of New Zealand Limited where this company
owns, or leases, the relevant site) (as the service provider) and Chorus NZ. 

  
 90 

 SCHEDULE 4 
 MISPLACED ASSETS AND LIABILITIES 
  

	1.	INTERPRETATION 

  

	1.1	Definitions: In this Schedule 4, unless the context otherwise requires: 

 “Asset” includes the whole or any part of the relevant person’s business, undertaking, property, revenues or chose in action, in each case, present or future, and a reference to an
Asset also includes any legal or equitable interest in it, but for the avoidance of doubt excludes all Claims (whether present or future, actual or contingent, secured or unsecured, joint or several, as principal, surety by way of guarantee or
otherwise); 
 “Actual Asset Holder” means, in respect of any Misplaced Asset, the party that is (or the
Subsidiary of which is) the holder of the Misplaced Asset; 
 “Actual Liability Holder” means, in respect of any
Misplaced Liability, the person that is (or the Subsidiary of which is) the obligor of the Misplaced Liability; 

“Claim” means any allegation, investigation or inquiry, cause of action, claim, litigation, proceeding, demand, judgment,
award, claim for contribution or indemnity, suit or demand of any nature which exists now or at any time in the future, whether at law, under contract, in equity, due to negligence of a party, under statute or otherwise; 

“Group Actual Holder” has the meaning given in clause 6 of this Schedule; 

“Intended Holder” means, in respect of any Misplaced Asset or Misplaced Liability, the party that is carrying on the
business to which the Misplaced Asset or Misplaced Liability is properly attributable; 
 “Liability” includes
any obligation of a person but for the avoidance of doubt excluding all Claims (whether present or future, actual or contingent, secured or unsecured, joint or several, as principal, surety by way of guarantee or otherwise) whether for the payment
of money or otherwise; 
 “Misplaced Asset” has the meaning given in clause 2.1 of this Schedule; 

“Misplaced Liability” has the meaning given in clause 3.1 of this Schedule; 

“Notification Date” means the date on which notification is received by a notified party pursuant to clauses 2.1 and 3.1
of this Schedule; and 

  
 91 

 “properly attributable” means, in respect of a given asset, that the asset
is attributable to either the Retained Business or the Demerger Business, as the case may be, in respect of which the asset is used principally or arises principally and, in respect of a given liability, that the liability is attributable to either
the Retained Business or the Demerger Business, as the case may be, in respect of which the liability arises principally, subject to the principles for the allocation of assets and liabilities set out in the Asset Allocation Plan (where applicable).

  

	1.2	Construction of certain references: in this Schedule 4, unless the context otherwise requires: 

 

	 	(a)	any reference to an Actual Asset Holder, Actual Liability Holder or Intended Holder, or a party, taking or omitting to take any action includes that person procuring
any of its Subsidiaries to take or omit to take that action; and 

  

	 	(b)	if a Subsidiary of an Intended Holder has been identified by the Intended Holder as the appropriate holder of a Misplaced Asset or Misplaced Liability, as contemplated
in clauses 2 or 3 of this Schedule, without prejudice to the obligations under this Schedule 4 of the Intended Holder, references to the Intended Holder, in that context, shall be to that Subsidiary as appropriate. 

 

	2.	MISPLACED ASSETS 

  

	2.1	Misplaced Assets: If after the Demerger Date a party identifies any Asset that is not included in, or identified by, the Asset Allocation Plan (a
“Misplaced Asset”), and which that party considers should have been transferred as part of the Demerger, it will notify the other parties not later than 10 days after the date on which such identification is made.

  

	2.2	Transfer and assignment of Misplaced Assets: Following the identification of a Misplaced Asset in accordance with clause 2.1 of this Schedule, the parties will
then: 

  

	 	(a)	use their reasonable endeavours to determine whether the Misplaced Asset is properly attributable to the Demerged Business or the Retained Business;

  

	 	(b)	following a determination made in accordance with clause 2.2(a) or clause 7 of this Schedule (as the case may be), that the Misplaced Asset is properly attributable to
the Intended Holder and is not currently held by the Intended Holder, respectively procure the transfer and assignment, with effect on and from the Demerger Notification Date, of all the right, title and interest in and to
the Misplaced Asset and any rights or obligations relating thereto to the Intended Holder as the recipient of the Misplaced Asset in the particular case; and 

  
 92 

	 	(c)	in consideration for the performance by New Chorus or New Telecom (or any of their respective Subsidiaries) of its obligations in clause 2 of this Schedule as Actual
Asset Holder in respect of the Misplaced Asset referred to in clause 2.1 of this Schedule, New Telecom (or any Subsidiary thereof nominated by New Telecom), or Chorus NZ, as the recipient or holder of the Misplaced Asset in the particular case shall
pay to Chorus NZ or New Telecom (as applicable) an amount equal to the net book value of the relevant Misplaced Asset for financial reporting purposes at the date of payment in accordance with this clause, as agreed by the parties and having regard
to the application of clause 6.3 of this Schedule, not later than 30 days after the date on which a determination is made, in accordance with clause 2.2(a) or clause 7 of this Schedule (as may be applicable), that the Misplaced Asset is properly
attributable to the Intended Holder and it is not currently held by the intended Holder. 

 For this purpose, the
Actual Asset Holder shall, as soon as reasonably practicable, execute and deliver to the Intended Holder such documents and take such steps as may be reasonably required by the Intended Holder to vest in the Intended Holder legal title to the
Misplaced Asset, provided that if no such documents or steps are required by this clause, the Actual Asset Holder transfers and assigns, with effect on and from the Notification Date, all its right, title and interest in and to the Misplaced Asset
to the Intended Holder. 
  

	2.3	Consents or waivers; novation: If any Misplaced Asset cannot effectively be assigned or transferred without first obtaining a consent or waiver from a third
person or except by agreements of novation, the Actual Asset Holder shall (upon request of the Intended Holder) take all reasonable steps to procure that any necessary consent or waiver is obtained or any agreement of novation is entered into, and
the Intended Holder shall cooperate with the Actual Asset Holder and any of its Subsidiaries for such purpose. 

  

	2.4	Continuing arrangements: 

  

	 	(a)	To the extent that the legal and beneficial right, title and interest in any Misplaced Asset has not been, or cannot be, transferred and assigned to the Intended Holder
with effect on and from the Notification Date pursuant to clause 2.2 of this Schedule, the provisions of the relevant Transitional and Long Term Services Agreement(s) will apply in respect of that Misplaced Asset until such transfer and assignment
occurs. 

  
 93 

	 	(b)	Clauses 2.2 and 2.4(a) of this Schedule shall not apply to any Misplaced Asset where this would result in the Actual Asset Holder being in breach of any terms on which
the Misplaced Asset is held, but in such case the Actual Asset Holder and the Intended Holder, each acting reasonably, shall use all reasonable endeavours to conclude (at the cost of the Intended Holder) a further arrangement which enables the
Intended Holder (or nominated Subsidiary of the Intended Holder) as the appropriate holder of the Misplaced Asset to obtain the benefit of the Misplaced Asset with effect on and after the Notification Date. 

 

	2.5	Costs: All Costs and expenses (including legal expenses on a solicitor and own client basis and any tax) incurred by the Actual Asset Holder or any of its
Subsidiaries in the performance of the obligations of the Actual Asset Holder under this clause 2 will be paid by the Intended Holder, or reimbursed to the Actual Asset Holder or such Subsidiary (as applicable), upon demand and presentation of such
documentation as may be reasonably required to evidence such Costs and expenses. 

  

	3.	MISPLACED LIABILITIES 

  

	3.1	Misplaced Liabilities: If after the Demerger Date a party identifies any Liability that is not included in, or identified by, the Asset Allocation Plan (a
“Misplaced Liability”), and which that party considers should have been transferred as part of the Demerger, it will notify the other parties not later than 10 days after the date on which the identification is made.

  

	3.2	Novation of obligations under Misplaced Liability: The parties will then: 

 

	 	(a)	use their reasonable endeavours to determine whether the Misplaced Liability is properly attributable to the Demerged Business or the Retained Business;

  

	 	(b)	following a determination made in accordance with clause 3.2(a) or clause 7 of this Schedule (as the case may be), that the Misplaced Liability is properly attributable
to the Intended Holder, but that the obligations under the Misplaced Liability are not currently the obligations of the Intended Holder, respectively take such steps as may be reasonably required (and permitted by law) to obtain the consent of each
relevant obligee under the Misplaced Liability to the entry into arrangements whereby the obligations of the Actual Liability Holder are novated on and from the Demerger Notification Date to the Intended Holder or to such
Subsidiary of the Intended Holder as the Intended Holder shall identify as the appropriate holder of that Misplaced Liability and as shall be acceptable to the relevant obligee; and 

  
 94 

	 	(c)	to the extent that such consents are obtained, enter into agreements of novation with any relevant obligees under which, with effect as of the Notification Date, the
relevant novatees shall assume the obligations of the relevant novators under the Misplaced Liability and the relevant novators are released from their obligations in respect of the Misplaced Liability; and 

 

	 	(d)	in consideration for the performance by the intended Holder of the obligations in clause 3 of this Schedule in respect of any Misplaced Liability, the Actual Liability
Holder shall pay to the Intended Holder an amount equal to the net book value of the relevant Misplaced Liability for financial reporting purposes at the date of payment in accordance with this clause, as agreed by the parties and having regard to
the application of clause 6.3 of this Schedule not later than 30 days after the date on which a determination is made, in accordance with clause 3.2(a) or clause 7 of this Schedule (as may be applicable), that the Misplaced Liability is properly
attributable to the Intended Holder, but that the obligations under the Misplaced Liability are not currently the obligations of the Intended Holder. 

  

	3.3	Continuing arrangements: To the extent that any Misplaced Liability is not, or cannot be, novated to the Intended Holder with effect on and from the Notification
Date pursuant to clause 3.2 of this Schedule, the provisions of the relevant Transitional and Long Term Services Agreement(s) will apply in respect of that Misplaced Liability until such novation occurs. 

 

	3.4	Costs: All Costs and expenses (including any tax) incurred by the Actual Liability Holder or any of its Subsidiaries in the performance of the obligations of the
Actual Liability Holder under this clause 3 will be paid by the intended Holder, or reimbursed to the Actual Liability Holder or such Subsidiary (as applicable), upon demand and presentation of such documentation as may be reasonably required to
evidence such Costs and expenses. 

  

	4.	RETURN OF WRONGLY TRANSFERRED ASSETS AND LIABILITIES 

  

	4.1	If after the Demerger Date a party identifies an Asset or Liability that was transferred (including solely by giving physical possession) other than in accordance with
the provisions of this deed (ie it is not a Transferring Asset or Transferring Liability, and it is not subject to the provisions applying to Misplaced Assets and Misplaced Liabilities), the parties will do all things necessary to transfer that
Asset or Liability to the party that should have retained it. 

  
 95 

	5.	LIMITATION ON OBLIGATIONS 

  

	5.1	Limitation on obligations of Actual Asset Holder or Actual Liability Holder: Notwithstanding any other provision of this Schedule 4, the Actual Asset Holder (in
respect of any Misplaced Asset) or the Actual Liability Holder (in respect of any Misplaced Liability) shall not have any obligation to the Intended Holder under this Schedule 4 to perform or comply with any obligations it or any of its Subsidiaries
may have in relation to the Misplaced Asset or Misplaced Liability respectively in excess of the obligation the Intended Holder would have if the Intended Holder was directly responsible for such obligation. 

 

	6.	PRESERVATION OF RIGHTS AND OBLIGATIONS 

  

	6.1	Not alter position: Where the Actual Asset Holder or Actual Liability Holder (the “Group Actual Holder”) holds any Misplaced Assets or Misplaced
Liabilities which are Transferring Contracts to which the Group Actual Holder is a party or other chose in action under which the Group Actual Holder has rights or obligations, it will not, at any time after the Notification Date or any earlier time
at which the Group Actual Holder becomes aware that it holds a Misplaced Asset or a Misplaced Liability, except with the prior consent of the intended Holder or to the extent necessary to give effect to the provisions of this deed, or as required by
law: 

  

	 	(a)	except as expressly contemplated in this deed, amend or vary, or consent to any amendment or variation of, any such Transferring Contract or other chose in action;

  

	 	(b)	avoid, terminate, rescind, repudiate, discharge (other than by performance) or accept the termination, rescission, repudiation or discharge (other than by performance)
of any such Transferring Contract or other chose in action; 

  

	 	(c)	expressly or impliedly waive any right, or grant any consent under any such Transferring Contract or other chose in action; or 

 

	 	(d)	release any party from any of its obligations under any such Transferring Contract or other chose in action. 

 

	6.2	Assistance/information: Each party shall co-operate with, and render such assistance, make such disclosures and, subject to any confidentiality restrictions,
provide such information to, the other and its Subsidiaries as will ensure that after the Notification Date, as far as reasonably practicable in respect of any Misplaced Asset or Misplaced Liability, the Intended Holder or such Subsidiary will be
able to deal with the Misplaced Asset or Misplaced Liability, and generally so conduct themselves in relation to such Misplaced Asset or Misplaced Liability, as if it was the legal and beneficial owner or obligor (as the case may be) thereof.

  
 96 

	6.3	Taxation: The parties shall co-operate in effecting any transfer of the ownership of or obligations under any assets or liabilities described in this Schedule 4
in the most tax effective manner reasonably available to the parties having regard to the following principles: 

  

	 	(a)	to the extent an asset or liability is a designated asset or designated liability as defined in section 69XM of the Telecommunications Act 2001 the tax consequences of
the transfer should, to the extent reasonably possible be as provided in, or consistent with, Subpart 6 of Part 2A of that Act; 

  

	 	(b)	if necessary to ensure that a transfer attracts the tax consequences provided for in Subpart 6 of Part 2A of that Act, the parties will use reasonable endeavours to
amend a proposal previously approved under section 46 of the Telecommunications (TSO, Broadband and Other Matters) Amendment Act 2011 and to secure the approval of that amendment under that provision; 

 

	 	(c)	if it is not reasonably possible (having regard to paragraphs (a) and (b) above) for the tax consequences of the transfer to be as provided in Subpart 6 of
Part 2A of the Telecommunications Act 2001, the transfer should be made so as to be tax neutral to both parties as far as is reasonably possible. 

  

	7.	DISPUTE RESOLUTION IN RESPECT OF PROPER ATTRIBUTION OF ASSETS OR LIABILITIES 

 

	7.1	Specific dispute resolution provisions in respect of proper attribution of Assets or Liabilities: Where a dispute arises between the parties in connection with
the attribution of any Asset or Liability notified pursuant to clauses 2.1 or 3.1 of this Schedule, clause 18.1 of this deed shall apply. If the dispute remains unresolved after the application of that clause, this clause 7 prevails over the
remaining general dispute resolution provisions contained in clause 18 of this deed, unless otherwise agreed in writing by Telecom (including as New Telecom), New Chorus and Chorus NZ. 

 

	7.2	Dispute resolution: If a party acting in good faith disputes the proper attribution of any Asset or Liability notified to it pursuant to clauses 2.1 or 3.1 of
this Schedule, it shall give written notice (including sufficient detail of the reasons for the dispute) to the other parties not later than 30 days after the date on which notification of such Asset or Liability is received by the notified party,
setting out sufficient detail to enable the other parties to respond. If the parties then cannot agree the proper attribution of such Asset or Liability within 21 days of the date of receipt of the dispute notice, or if the parties cannot agree the
net book value of any Misplaced Asset or Misplaced Liability within 21 days of the date on which notification of the Misplaced Asset pursuant to clause 2.1, or Misplaced Liability pursuant to clause 3.1, of this Schedule is received by the relevant
party, the matter (the “Attribution Dispute”) shall be referred on the application of any party for determination by a single expert. 

  
 97 

	7.3	Expert determination: The referral to expert determination will be commenced by a party giving notice to the other party stating the subject matter and details
of the Attribution Dispute and requiring the Attribution Dispute to be referred to the determination of an expert to be appointed by the parties (“Referral Notice”). Failing agreement as to the identity of the expert within 10
Business Days after the date of giving the notice, the expert will be appointed at the request of a party by the president or the vice-president for the time being of the New Zealand Institute of Chartered Accountants or the nominee of such
president or vice-president. The expert must make its determination by reference to the terms of this Schedule 4. 

  

	7.4:	Guidelines: The guidelines which will govern the proceedings for determining the Dispute will be set by the parties. Failing agreement on the guidelines within
seven days after the appointment of the expert, a party may request the expert to set the guidelines which will govern the proceedings for determining the Attribution Dispute. 

 

	7.5	Decision: The expert will determine the Attribution Dispute and deliver to each party a written decision. The decision must specify brief reasons for the
decision. The decision will be final and binding on the parties. 

  

	7.6	Confidentiality: The parties and the expert will keep confidential and will not disclose to anyone not involved in the expert determination any information
contained in the decision unless such disclosure is required by law, is necessary to comply with the listing rules of any recognised stock exchange, or is made in any subsequent proceedings to enforce the expert’s decision.

  

	7.7	Arbitration statutes not to apply: Referral of the Attribution Dispute to the expert will not be an arbitration agreement for the purposes of the Arbitration Act
1996 and the provisions of that Act will not apply to or govern such referral. 

  

	7.8	Costs: The parties will bear their own Costs and an equal share of the costs and expenses of the expert. 

  
 98 

	8.	COSTS 

  

	8.1	Without prejudice to clauses 2.6, 3.4, 7.3 and 7.8 of this Schedule, all reasonable costs (including all costs, losses, damages, liabilities, Claims, tax and expenses)
incurred as a result of the matters contemplated in this Schedule 4 in relation to any Misplaced Asset or Misplaced Liability shall be for the account of the Intended Holder that is carrying on the business to which the Misplaced Asset or Misplaced
Liability is properly attributable. Such Intended Holder shall indemnify the other party and its respective Subsidiaries from and against any and all such costs. 

  
 99 

 SCHEDULE 5 
 NEW CHORUS REGISTERED IP 
 Trade Marks 

 

			
	CHORUS	 	FIBRE FURTHER FASTER
		
	HUMMING ALONG	 	NZ IS FIBRE COUNTRY
		
	FULLFORCE	 	A SAFE PAIR OF HANDS
		
		 	FIBRE READY

			
		
	CHORUS logo	 	Partial Chorus logo
		
	

	 	

 Partial Chorus logo 
  

 
 Trade Mark Applications and Registrations 

 

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	780244	  	CHORUS	  	09	  	Registered
					
	 New Zealand
	  	780245	  	CHORUS	  	37	  	Registered

  
 100

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	780246	  	CHORUS	  	38	  	Registered
					
	 New Zealand
	  	780247	  	CHORUS	  	42	  	Registered
					
	 New Zealand
	  	782614	  	

	  	09	  	Registered
					
	 New Zealand
	  	782615	  	

	  	37	  	Registered

  
 101

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
		  		  	

	  		  	
					
	 New Zealand
	  	782616	  	

	  	38	  	Registered

  
 102

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	782617	  	

	  	42	  	Registered
					
	 New Zealand
	  	799139	  	

	  	09	  	Registered
					
	 New Zealand
	  	799140	  	

	  	37	  	Registered

  
 103

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	799141	  	

	  	38	  	Registered
					
	 New Zealand
	  	799142	  	

	  	42	  	Registered
					
	 New Zealand
	  	799143	  	

	  	09	  	Registered
					
	 New Zealand
	  	799144	  	

	  	37	  	Registered
					
	 New Zealand
	  	799145	  	

	  	38	  	Registered
					
	 New Zealand
	  	799146	  	

	  	42	  	Registered
					
	 New Zealand
	  	816599	  	FIBRE FURTHER FASTER	  	09, 37, 38	  	Registered
					
	 New Zealand
	  	825337	  	HUMMING ALONG	  	09, 37, 38	  	Registered
					
	 New Zealand
	  	831721	  	NZ IS FIBRE COUNTRY	  	09, 37, 38	  	Registered
					
	 New Zealand
	  	826234	  	FULLFORCE	  	38	  	Registered
					
	 New Zealand
	  	845924	  	CHORUS	  	 09, 16, 35, 37, 38, 41,

42
	  	Examination in progress

  
 104

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	845925	  	

	  	16, 35, 41	  	Published
					
	 New Zealand
	  	845926	  	

	  	16, 35, 41	  	Published
					
	 New Zealand
	  	845927	  	

	  	16, 35, 41	  	Published
					
	 New Zealand
	  	845928	  	FIBRE FURTHER FASTER	  	 16, 35, 41,
 42
	  	Published
					
	 New Zealand
	  	845929	  	HUMMING ALONG	  	 16, 35, 41,
 42
	  	Published

  
 105

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	845930	  	NZ IS FIBRE COUNTRY	  	16, 35, 41, 42	  	Published
					
	 New Zealand
	  	845931	  	A SAFE PAIR OF HANDS	  	 09, 16, 35, 37, 38, 41,

42
	  	Examination in progress
					
	 New Zealand
	  	845932	  	FIBRE READY	  	 09, 16, 35, 37, 38, 41,

42
	  	Examination in progress

  
 106

 Domain Names 
  

					
	 Owner
	 	 Domain Name
	 	 Status

			
	 Telecom IP Limited
	 	openet.co.nz	 	Registered
			
	 Telecom IP Limited
	 	openet.net.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus.net.nz	 	Registered
			
	 Telecom IP Limited
	 	ngen.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusdesign.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruscomms.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruscommunications.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruslive.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruscable.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusbuild.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorustv.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusnetwork.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusnet.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus-online.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusonline.co.nz	 	Registered
			
	 Telecom IP Limited
	 	124location.co.nz	 	Registered
			
	 Telecom IP Limited
	 	ans.net.nz	 	Registered
			
	 Telecom IP Limited
	 	accessnetworkservices.co.nz	 	Registered
			
	 Telecom IP Limited
	 	accessnetworkservices.net.nz	 	Registered

  
 107

					
	 Owner
	 	 Domain Name
	 	 Status

			
	 Telecom IP Limited
	 	brightspark.org.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus.tel	 	Registered
			
	 Telecom New Zealand
	 	accessnetworkservices.com	 	Registered
			
	 Telecom New Zealand
	 	accessnetworkservices.net	 	Registered
			
	 Telecom IP Limited
	 	bbmaps.co.nz	 	Registered
			
	 Telecom IP Limited
	 	bbcheck.co.nz	 	Registered
			
	 Telecom IP Limited
	 	broadbandmaps.co.nz	 	Registered
			
	 Telecom IP Limited
	 	ucll.co.nz	 	Registered
			
	 Telecom IP Limited
	 	dialogue.org.nz	 	Registered
			
	 Telecom IP Limited
	 	fibretothehome.co.nz	 	Registered
			
	 Telecom IP Limited
	 	fibretoyourhome.co.nz	 	Registered

 Patent Applications 
  

									
	 Country
	  	 Application
Number
	  	 Title
	  	 Date Filed
	  	 Status

					
	 Australia
	  	2010210008	  	Service delivery point accessory, network and method	  	09/08/2010	  	Filed
					
	 New Zealand
	  	578934	  	Service delivery point accessory, network and method	  	08/11/2010	  	Examination in progress

  
 108

 SCHEDULE 6 
 NEW CHORUS REGISTERED IP ASSIGNMENT 

  
 109

 TELECOM CORPORATION OF NEW ZEALAND LIMITED 

TELECOM IP LIMITED 
 TELECOM NEW ZEALAND LIMITED 
 CHORUS NEW ZEALAND LIMITED 

 
  

DEED OF ASSIGNMENT OF 
 INTELLECTUAL PROPERTY RIGHTS 
  

 

  
 110

 PARTIES 
 TELECOM CORPORATION OF NEW ZEALAND LIMITED (“Telecom”) 

TELECOM IP LIMITED (“Telecom IP”) 
 TELECOM NEW ZEALAND LIMITED (“Telecom NZ”) 
 CHORUS NEW ZEALAND
LIMITED (“Chorus”) 
 INTRODUCTION 
  

	A.	Telecom, Telecom IP and Telecom NZ are the respective owners of the New Chorus Registered IP. 

 

	B.	Telecom agreed under the Separation Deed to: 

  

	 	(i)	assign its rights, title and interest in the New Chorus Registered IP to Chorus; and 

 

	 	(ii)	procure that its Subsidiaries assign their rights, title and interest in the New Chorus Registered IP to Chorus. 

 

	C.	Telecom, Telecom IP and Telecom NZ each acknowledge that Chorus is or should be the legal and beneficial owner of the New Chorus Registered IP.

  

	D.	To the extent that Telecom, Telecom IP or Telecom NZ own any of the New Chorus Registered IP, they each agree to assign all of their rights, title and interest in the
New Chorus Registered IP subject to the terms and conditions of this deed. 

  
 111

 COVENANTS 
  

	1.	DEFINITIONS 

  

	1.2	In this deed, including the Introduction, the following words will have the following meanings: 

“Assignors” means Telecom, Telecom IP and Telecom NZ and “Assignor” means any of them as the context
requires; 
 “Copyright” means: 
  

	 	(a)	all copyrights and all rights in the nature of copyright, in any original artistic, literary and other works; and 

 

	 	(b)	any database rights, 

 comprising
or relating to the Trade Marks, Domain Names and/or Patent Rights as may exist anywhere in the world; 
 “deed”
means this deed and includes the Schedule; 
 “Domain Names” means the domain names listed in the Schedule;

 “Goodwill” means the goodwill symbolised by and associated with the Trade Marks, including the whole of the
goodwill arising from the use of the Trade Marks; 
 “Invention” means any and all inventions the subject of the
Patent Applications as improved, modified, developed or amended at any time up to the date of signing of this deed; 

“New Chorus Registered IP” means the: 
  

	 	(a)	Trade Marks; 

  

	 	(b)	Domain Names; 

  

	 	(c)	Patent Rights; 

  

	 	(d)	Copyright; and 

  

	 	(e)	Goodwill; 

 “Patent
Applications” means the patent applications listed in the Schedule; 

  
 112

 “Patent Rights” means all patent rights in and to the Invention as may
exist or come into existence anywhere in the world including, but not limited to: 
  

	 	(a)	the right to apply for and obtain patents or other similar forms of protection in respect of the Invention in any country; 

 

	 	(b)	the right to claim priority under any international convention or agreement including the Paris Convention (as amended) from any such application or applications
referred to in paragraph (a) above; 

  

	 	(c)	all rights conferred by any such patent(s) or similar forms of protection when granted; and 

 

	 	(d)	the Patent Applications together with: 

  

	 	(i)	any patent that may be granted pursuant to the Patent Application; and 

  

	 	(ii)	any future patent(s) and patent application(s) that are based on or derive priority from or have equivalent claims to the Patent Applications in any country in the
world (including divisionals, continuations, continuations in part, supplementary protection certificates, reissues, extensions, innovation patents and petty patents); 

“Separation Deed” means the Separation Deed between Telecom and Chorus dated on or about the date of this deed;

 “Subsidiaries” has the meaning given to that term in the Separation Deed; and 

“Trade Marks” means the trade marks, logos, trade mark applications and trade mark registrations listed in the Schedule.

  

	2.	ASSIGNMENT 

  

	2.1	Assignment: In consideration of the sum of NZ$1.00 paid by Chorus to each Assignor and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by each Assignor, each Assignor hereby assigns to Chorus absolutely all of that Assignor’s rights, title and interest in and to the New Chorus Registered IP. 

 

	2.2	Rights of action: The assignments effected by clause 2.1 include, without limitation, the assignment and transfer of all rights of action, powers and benefits
arising from the ownership of the New Chorus Registered IP including, without limitation, the right to sue for damages and other legal and equitable remedies in respect of all causes of action arising before, on or after the date of this deed.

  
 113

	2.3	Further actions: If requested by Chorus, each Assignor will, at Chorus’s expense, execute all documents, give such assistance and do all other acts and
things as may be necessary or desirable to: 

  

	 	(a)	record this assignment on any intellectual property register anywhere in the world; 

 

	 	(b)	prosecute, maintain, renew, enforce and defend the New Chorus Registered IP; or 

 

	 	(c)	otherwise implement and carry out that Assignor’s obligations under this deed. 

 

	3.	GENERAL 

  

	3.1	Waiver: No failure or delay by any party in exercising any right, power or privilege under this deed will operate as a waiver of such right, power or privilege,
nor will any single or partial exercise preclude any other or further exercise of any right, power or privilege under this deed. 

  

	3.2	Facsimile counterparts: 

  

	 	(a)	This deed may be executed in any number of counterparts (including facsimile copies) all of which, when taken together, will constitute one and the same instrument.

  

	 	(b)	A party may enter into this deed by executing any counterpart. The parties acknowledge that this deed may be executed on the basis of an exchange of facsimile copies
and confirm that their respective execution of this deed by such means will be a valid and sufficient execution. 

  

	3.3	Governing law: New Zealand law governs the formation, validity, construction and performance of this deed. This deed is subject to the non-exclusive jurisdiction
of the New Zealand courts, and the parties submit to that jurisdiction. 

  
 114

					
	SIGNED AS A DEED	 		 	
			
	SIGNED by TELECOM CORPORATION OF NEW ZEALAND LIMITED by:	 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date
			
		 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date

  
 115

					
	SIGNED by TELECOM IP LIMITED by:	 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date
			
		 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date
			
	SIGNED by TELECOM NEW ZEALAND LIMITED by:	 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date
			
		 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date

  
 116

					
	SIGNED by CHORUS NEW ZEALAND LIMITED by:	 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date
			
		 		 	  

		 		 	Signature of Director
			
		 		 	  

		 		 	Name of Director
			
		 		 	  

		 		 	Date

  
 117

 SCHEDULE 
 NEW CHORUS REGISTERED IP 
 Trade Marks 

 

			
	CHORUS	 	FIBRE FURTHER FASTER
		
	HUMMING ALONG	 	NZ IS FIBRE COUNTRY
		
	FULLFORCE	 	A SAFE PAIR OF HANDS
		
		 	FIBRE READY

			
		
	CHORUS logo	 	Partial Chorus logo
		
	

	 	

 Partial Chorus logo 
  

 

  
 118

 Trade Mark Applications and Registrations 

 

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	780244	  	CHORUS	  	09	  	Registered
					
	 New Zealand
	  	780245	  	CHORUS	  	37	  	Registered
					
	 New Zealand
	  	780246	  	CHORUS	  	38	  	Registered
					
	 New Zealand
	  	780247	  	CHORUS	  	42	  	Registered
					
	 New Zealand
	  	782614	  	

	  	09	  	Registered
					
	 New Zealand
	  	782615	  	

	  	37	  	Registered

  
 119

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
		  		  	

	  		  	
					
	 New Zealand
	  	782616	  	

	  	38	  	Registered

  
 120

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
		  		  	

	  		  	
					
	 New Zealand
	  	782617	  	

	  	42	  	Registered
					
	 New Zealand
	  	799139	  	

	  	09	  	Registered

  
 121

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	799140	  	

	  	37	  	Registered
					
	 New Zealand
	  	799141	  	

	  	38	  	Registered
					
	 New Zealand
	  	799142	  	

	  	42	  	Registered
					
	 New Zealand
	  	799143	  	

	  	09	  	Registered
					
	 New Zealand
	  	799144	  	

	  	37	  	Registered
					
	 New Zealand
	  	799145	  	

	  	38	  	Registered
					
	 New Zealand
	  	799146	  	

	  	42	  	Registered
					
	 New Zealand
	  	816599	  	FIBRE FURTHER FASTER	  	09, 37, 38	  	Registered
					
	 New Zealand
	  	825337	  	HUMMING ALONG	  	09, 37, 38	  	Registered

  
 122

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
	 New Zealand
	  	831721	  	NZ IS FIBRE COUNTRY	  	09, 37, 38	  	Registered
					
	 New Zealand
	  	826234	  	FULLFORCE	  	38	  	Registered
					
	 New Zealand
	  	845924	  	CHORUS	  	 09, 16, 35, 37, 38, 41,

42
	  	Examination in progress
					
	 New Zealand
	  	845925	  	

	  	16, 35, 41	  	Published
					
	 New Zealand
	  	845926	  	

	  	16, 35, 41	  	Published

  
 123

									
	 Country
	  	 Number
	  	 Trade Mark
	  	 Class
	  	 Status

					
		  		  	

	  		  	
					
	 New Zealand
	  	845927	  	

	  	16, 35, 41	  	Published
					
	 New Zealand
	  	845928	  	FIBRE FURTHER FASTER	  	 16, 35, 41,
 42
	  	Published
					
	 New Zealand
	  	845929	  	HUMMING ALONG	  	 16, 35, 41,
 42
	  	Published
					
	 New Zealand
	  	845930	  	NZ IS FIBRE COUNTRY	  	 16, 35, 41,
 42
	  	Published
					
	 New Zealand
	  	845931	  	A SAFE PAIR OF HANDS	  	 09, 16, 35, 37, 38, 41,

42
	  	Examination in progress
					
	 New Zealand
	  	845932	  	FIBRE READY	  	 09, 16, 35, 37, 38, 41,

42
	  	Examination in progress

  
 124

 Domain Names 
  

					
	 Owner
	 	 Domain Name
	 	 Status

			
	 Telecom IP Limited
	 	openet.co.nz	 	Registered
			
	 Telecom IP Limited
	 	openet.net.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus.net.nz	 	Registered
			
	 Telecom IP Limited
	 	ngen.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusdesign.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruscomms.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruscommunications.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruslive.co.nz	 	Registered
			
	 Telecom IP Limited
	 	choruscable.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusbuild.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorustv.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusnetwork.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusnet.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus-online.co.nz	 	Registered
			
	 Telecom IP Limited
	 	chorusonline.co.nz	 	Registered
			
	 Telecom IP Limited
	 	124location.co.nz	 	Registered
			
	 Telecom IP Limited
	 	ans.net.nz	 	Registered

  
 125

					
	 Owner
	 	 Domain Name
	 	 Status

			
	 Telecom IP Limited
	 	accessnetworkservices.co.nz	 	Registered
			
	 Telecom IP Limited
	 	accessnetworkservices.net.nz	 	Registered
			
	 Telecom IP Limited
	 	brightspark.org.nz	 	Registered
			
	 Telecom IP Limited
	 	chorus.tel	 	Registered
			
	 Telecom New Zealand
	 	accessnetworkservices.com	 	Registered
			
	 Telecom New Zealand
	 	accessnetworkservices.net	 	Registered
			
	 Telecom IP Limited
	 	bbmaps.co.nz	 	Registered
			
	 Telecom IP Limited
	 	bbcheck.co.nz	 	Registered
			
	 Telecom IP Limited
	 	broadbandmaps.co.nz	 	Registered
			
	 Telecom IP Limited
	 	ucll.co.nz	 	Registered
			
	 Telecom IP Limited
	 	dialogue.org.nz	 	Registered
			
	 Telecom IP Limited
	 	fibretothehome.co.nz	 	Registered
			
	 Telecom IP Limited
	 	fibretoyourhome.co.nz	 	Registered

  
 126

 Patent Applications 
  

									
	 Country
	  	 Application
Number
	  	 Title
	  	 Date Filed
	  	 Status

					
	 Australia
	  	2010210008	  	Service delivery point accessory, network and method	  	09/08/2010	  	Filed
					
	 New Zealand
	  	578934	  	Service delivery point accessory, network and method	  	08/11/2010	  	Examination in progress

  
 127

 SCHEDULE 7 
 LITIGATION 
  

	A.	VESTED LITIGATION MATTERS 

  

	•	 	 Any residual issues arising out of: 

  

	 	•	 	 Vodafone v Telecom/Commerce Commission – Vodafone appeal against Commerce Commission’s determination of the 2003/4 Telecommunication
Service Obligation (“TSO”) cost and liable person payments (Supreme Court). 

  

	 	•	 	 Telecom v Vodafone/ Commerce Commission – Telecom appeal against High Court decision upholding Vodafone’s appeal against the Commerce
Commission’s determination of the 2004/5 and 2005/6 TSO cost and liable person payments and Telecom’s appeal against the High Court’s decision declining Telecom’s judicial review and appeal of the 2004/5 and 2005/6 TSO
determination (Supreme Court). 

  

	 	•	 	 Telecom v Vodafone/ Commerce Commission; Vodafone v Telecom/Commission – appeal and judicial review by both Telecom and Vodafone against
the Commerce Commission’s determination of the 2006/7 and 2007/8 TSO cost and liable person payments (High Court). 

 not covered by the settlement entered into between Telecom and Vodafone announced on or about 2 August 2011. 
  

	•	 	 Webster and others v Collins Paper Haulage Ltd & Ors – Telecom is the 15th Respondent in a claim for recovery of losses in
connection with the Ellerslie Park complex in Auckland. (Claim lodged through the Weathertight Homes Resolution Service). 

  

	•	 	 Commission v Telecom – The enforcement proceedings announced by the Commission on 26 May 2011 under the Act for alleged breach of the
non discrimination obligation in the Separation Undertakings regarding the provision of UBA with SLU and SLES (and all steps prior or ancillary to enforcement proceedings, for example discussions or negotiations with the Commission), and any claims
by Kordia (Orcon), CallPlus, Vodafone and/or other service providers related to these allegations or facts on which these allegations are based. 

  
 128

	B.	LITIGATION MATTERS ALLOCATED TO NEW TELECOM 

  

	•	 	 Commerce Commission v Telecom – All matters related to the Claim currently under appeal from the High Court decision that Telecom breached
section 36 of the Commerce Act in respect of the provision of data tails between 2001 and 2004 and is appealing the $12m pecuniary penalty imposed by the High Court (currently in the Court of Appeal). 

 

	•	 	 Brisbane Digital Communications Limited v AAPT – Claim for alleged breach of contract (currently in the Supreme Court of Queensland).

  

	•	 	 Unauthorised database access investigations – All matters concerning the alleged unauthorised third party access to Telecom’s Wireline
database (discovered by Telecom in January 2011), including any claim by Telecom against third parties in respect of the loss of the customers whose Wireline information was accessed and who subsequently left Telecom Retail, and the related
investigation by the Privacy Commission. 

  

	•	 	 Tax Dispute – The IRD has taken the position (in a Notice of Proposed Adjustment (NOPA) issued on 11 August 2011 in respect of the
2008 income year) that the income in question should be taxed as if it had been earned by a New Zealand tax resident. Telecom will be responding to the IRD NOPA by challenging the IRD position. If Telecom’s position is not accepted by the IRD,
amended assessments will be issued by the IRD, in which case it will be necessary for Telecom to bring proceedings before the Court seeking to have the amended assessments set aside. 

  
 129

 SCHEDULE 8 
 TRANSFERRING CONTRACTS 

  
 130

 SCHEDULE 9 

TELECOM’S AMENDING CONTRACTS 

  
 131Chorus UFB Services Agreement

 Exhibit 4.22 

 
 

 
 Chorus UFB Services Agreement 
 General Terms 

 CONTENTS 
  

					
	 AGREEMENT
	  	 	3	  
	 CONTACT DETAILS
	  	 	4	  
	 Chorus contact details
	  	 	4	  
	 Service Provider contact details
	  	 	4	  
	 1. CONSTRUCTION
	  	 	5	  
	 2. INITIATION
	  	 	8	  
	 3. CONNECTING TO THE LFC NETWORK
	  	 	8	  
	 4. ORDERING SERVICES
	  	 	10	  
	 5. SUPPLY OF SERVICES
	  	 	11	  
	 6. FAULTS
	  	 	12	  
	 7. PAYMENT
	  	 	13	  
	 8. SECURITY REQUIREMENTS
	  	 	15	  
	 9. THE SERVICE PROVIDER’S RESPONSIBILITIES
	  	 	16	  
	 10. END USERS
	  	 	17	  
	 11. FORECASTING
	  	 	18	  
	 12. LFC EQUIPMENT
	  	 	18	  
	 13. PERSONAL PROPERTY RIGHTS
	  	 	20	  
	 14. INTELLECTUAL PROPERTY RIGHTS
	  	 	20	  
	 15. INFORMATION
	  	 	21	  
	 16. RECORDS
	  	 	22	  
	 17. INDEMNITIES
	  	 	22	  
	 18. LIABILITY
	  	 	23	  
	 19. FORCE MAJEURE
	  	 	24	  
	 20. DISPUTE RESOLUTION
	  	 	24	  
	 21. SUSPENSION OF SERVICES
	  	 	26	  
	 22. TERMINATION
	  	 	26	  
	 23. CONSEQUENCES OF TERMINATION
	  	 	27	  
	 24. CHANGES
	  	 	28	  
	 25. PRODUCT FORUM
	  	 	30	  
	 26. GENERAL
	  	 	31	  
	 27. DEMERGER OF TELECOM
	  	 	33	  

  
  

2 

			
	Chorus UFB Services Agreement	  	
		  	General Terms

  

					
	AGREEMENT	  		  	
			
	Between:	  		  	
			
	Chorus (the LFC)	  		  	a New Zealand registered company (Chorus New Zealand Limited (company number 3454256)).
			
	Signature of authorised person:	  		  	 

			
	Name of authorised person:	  		  	  

			
	Position of authorised person:	  		  	  

			
	Date:	  		  	  

			
	And	  		  	
			
	Telecom (the Service Provider)	  		  	a New Zealand registered company (Telecom New Zealand Limited (company number 391406)).
			
	Signature of authorised person:	  		  	 /s/ DAVID HAVERCROFT

			
	Name of authorised person:	  		  	 DAVID HAVERCROFT

			
	Position of authorised person:	  		  	 GROUP CHIEF TECHNOLOGY OFFICER

			
	Date:	  		  	  

			
	Chorus UFB Services Agreement	  	
		  	General Terms

  

 CONTACT DETAILS 
 Chorus contact details 
  

			
	Contact person:	  	
		
	Address for service:	  	 Chorus House, Level 3
 9
Hopetoun Street
 Auckland

		
	Postal address:	  	 P O Box 6640
 Wellesley
Street
 Auckland

		
	Fax number:	  	+64 9 300 1070
	
	Service Provider contact details
		
	Company name:	  	 Telecom New Zealand Limited

		
	Company number:	  	 391406

		
	Contact person:	  	 Chief Product Officer (currently Rod Snodgrass)

		
	Address for service:	  	 Level 2, Telecom Place

		
		  	 167 Victoria Street West

		
		  	 Auckland 1142

		
	Postal address:	  	 Level 2, Telecom Place

		
		  	 167 Victoria Street West

		
		  	 Auckland 1142

		
	Fax number:	  	  

			
	Chorus UFB Services Agreement	  	
		  	General Terms

  

	1.	CONSTRUCTION 

  

	1.1	Agreement: This Agreement comprises the attached cover pages (signed by both parties), these General Terms, the Price List and each Service Order.

  

	1.2	Precedence: If there is any conflict or inconsistency between any of the documents forming part of this Agreement, the order of precedence is:

  

	 	(a)	any Agreement Change, Required Change or Core Price Change (each as defined in clause Error! Reference source not found.), unless the parties otherwise agree in
writing; 

  

	 	(b)	these General Terms; 

  

	 	(c)	the Price List; 

  

	 	(d)	each Service Order (in order of acceptance, with the most recent Service Order having the highest precedence) and, in relation to the documents forming part of the
Service Order: 

  

	 	(i)	the base terms of that Service Order; 

  

	 	(ii)	the applicable Service Level Terms; 

  

	 	(iii)	the applicable Service Description; and 

  

	 	(iv)	the applicable Operations Manual; and 

  

	 	(e)	the cover pages. 

  

	1.3	Defined terms: In this Agreement, unless the context requires otherwise: 

 Agreement has the meaning given in clause 1.1; 
 Ancillary Charges
means all amounts payable under this Agreement by the Service Provider for Ancillary Services, as further described in the Price List; 
 Ancillary Service means a service or equipment set out in the Service List supplied in connection with a Wholesale Service; 
 Base Wholesale Services means: 
  

	 	(a)	the Baseband Service and ATA Voice Service; 

  

	 	(b)	the following Bitstream 2 Service templates: 

  

	 	(i)	GPON Residential Entry (30/10 with 2.5 Mbps CIR symmetrical); 

  

	 	(ii)	GPON Residential Entry - Triple Play (30/10 with 10 Mbps down/2.5 Mbps up CIR); 

 

	 	(iii)	GPON Business Entry (30/10 with 5 Mbps CIR symmetrical); 

  

	 	(iv)	GPON 100/50 - Triple Play (100/50 with 10 Mbps down/2.5 Mbps up CIR); 

  

	 	(c)	the following Bitstream 3 Service template: 

  

	 	(i)	GPON 100/100 (with 2.5 Mbps CIR symmetrical); 

  

	 	(d)	the following Bitstream 3A Service template: 

  

	 	(i)	GPON 100/100 (HP 2.5 Mbps CIR symmetrical; LP 2.5 Mbps CIR symmetrical); 

  

	 	[(ii)	P2P 100/100 Mbps; 

  

	 	(iii)	P2P 1 Gbps; 

  

	 	(e)	the Direct Fibre Access Service; 

  

	 	(f)	the following Bitstream 4 Service templates: 

  

	 	(i)	P2P 100/100 Mbps; 

  

	 	(ii)	P2P 1 Gbps; 

  

	 	(iii)	P2P 10Gbps; 

  

	 	(g)	UFB Handover Connection Service including the 1 Gbps and 10 Gbps E-NNI ports; and 

 

	 	(h)	the Central Office and POI Co-location Service; 

 which are each further described in their applicable Service Descriptions; 

			
	Chorus UFB Services Agreement	  	
		  	General Terms

  

 Bill Rate means the average 90 day bank bill mid rate as quoted on Reuters Screen
page BKBM or the equivalent page replacing page BKBM (known at the date of these terms as the FRA rate) at or about 10.45 am on the relevant date or, if at that time page BKBM or the equivalent replacement page is not available, the last rate quoted
on that page before it became unavailable; 
 Business Day means a calendar day, other than a Saturday, a Sunday, a New
Zealand public holiday, or a regional anniversary day in the region in which the Service Provider is providing services (as the context requires); 
 Business Hours means 8 a.m. to 5 p.m. on a Business Day; 
 Candidate
Area means, in relation to a Wholesale Service, a part of the geographic area in which the Wholesale Service is available, as described in the applicable Operations Manual; 
 CFH means Crown Fibre Holdings Limited, a New Zealand registered company (number 2346751); 
 Core Charges means all amounts payable under this Agreement by the Service Provider for Wholesale Services, as further described in the Price List; 

Core Service Level has the meaning set out in the applicable Service Level Terms; 

Charges means the Core Charges and the Ancillary Charges; 
 Effective Date means the date that this Agreement is signed by both parties or, if two dates, the later date; 
 Emergency means an event or circumstance requiring the LFC to take immediate action: 
  

	 	(a)	to protect the LFC Network, the Services or the network of another service provider; or 

 

	 	(b)	to respond to an actual or suspected Network Threat, or to comply with an order or instruction of CFH, a Crown agency or any other competent authority in connection
with a Network Threat which the LFC is required to comply with as a matter of law; or 

  

	 	(c)	to provide or safeguard network access and capacity for essential services; or 

 

	 	(d)	to mitigate or eliminate a threat to the safety or health of any person or property; 

End User means the recipient of a retail service dependent on a Service; 

External Event means an event that is caused by an act or omission of, or by any equipment of, any person other than the LFC and
its contractors and agents; 
 Force Majeure Event means an event or circumstance beyond the reasonable control of either
party that makes it impossible or illegal to perform, or prevents compliance with or the performance of, a party’s obligations under this Agreement, including: 
  

	 	(a)	fire, flood, storm, tempest, earthquake or other act of God; 

  

	 	(b)	any act of a public enemy, war, riot, or act of civil or military authority; 

 

	 	(c)	nuclear, chemical or biological contamination; and 

  

	 	(d)	any act of a third party (not being an employee, agent or contractor of that party) engaged in subversive or terrorist activity or sabotage; 

but does not include an event to the extent that: 
  

	 	(e)	the effect of that event could have been substantially prevented, avoided or mitigated by; 

 

	 	(i)	implementing any contracted business continuity or disaster recovery service or any contingency plan agreed between the parties or that a party has represented it has
in place; or 

  

	 	(ii)	exercising a reasonable standard of care; or 

  

	 	(iii)	using information provided by the other party or information that is available in the public domain; or 

 

	 	(f)	it is an event that the party affected is or was directly responsible for; or 

 

	 	(g)	that event is constituted or caused by any failure of a contractor or supplier of the party seeking to rely on clause 19 unless and to the extent that the contractor or
supplier was itself affected by an event that, if it occurred in relation to either party, would have been a Force Majeure Event; or 

  

	 	(h)	the event is constituted or caused by the insolvency of either party or a contractor or supplier of the party seeking to rely on clause 19, or lack of funds for any
reason; or 

  

	 	(i)	risks associated with the event have been accepted by the affected party by the terms of this Agreement; or 

 

	 	(j)	the event is constituted or caused by a change in law; 

 General Terms means clauses 1 to 27 of this Agreement, including LFC (End User) Terms which are referred to in the General Terms; 

GPON Wholesale Services means the following subset of the Base Wholesale Services: 

 

	 	(a)	the following Bitstream 2 Service templates: 

  

	 	(i)	GPON Residential Entry (30/10 with 2.5 Mbps CIR symmetrical); 

  
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	 	(ii)	GPON Residential Entry -Triple Play (30/10 with 10Mbps down/2.5 Mbps up CIR); 

 

	 	(iii)	GPON Business Entry (30/10 with 5 Mbps CIR symmetrical); 

  

	 	(iv)	GPON 100/50 Triple Play (100/50 with 10 Mbps down/ 2.5 Mbps up CIR); 

  

	 	(b)	the following Bitstream 3 Service template: 

  

	 	(i)	GPON 100/100 (with 2.5 Mbps CIR symmetrical); 

  

	 	(c)	the following Bitstream 3A Service template: 

  

	 	(i)	GPON 100/100 (HP 2.5 Mbps CIR symmetrical; LP 2.5 Mbps CIR symmetrical); 

 GST means goods and services tax, as defined in the Goods and Services Tax Act 1985; 
 Interconnection Point means, in respect of any dark fibre Wholesale Services, the central office or point of interconnection to the LFC Network and, in respect of all other Wholesale Services, the
point of interconnection to the LFC Network, each as described in the applicable Service Description; 
 LFC (End User)
Equipment means any connecting line and ail associated equipment and infrastructure that the LFC installs or provides (or any of the LFC’s predecessors has installed or provided) on premises occupied by an End User, excluding equipment
provided to the LFC by the Service Provider for installation at the premises; 
 LFC (End User) Terms means the LFC’s
standard terms for use of LFC (End User) Equipment, available at www.chorus.co.nz/lfc equipment and as amended from time to time by the LFC; 
 LFC Equipment means the LFC (End User) Equipment and the LFC (Service Provider) Equipment; 
 LFC (Service Provider) Equipment means any equipment (including software) that the LFC provides to the Service Provider in connection with a Wholesale Service; 

LFC Network means the telecommunications network that the LFC uses to provide Wholesale Services to the Service Provider, including
the LFC (End User) Equipment but excluding the LFC (Service Provider) Equipment and anything on the Service Provider’s side of the Interconnection Point; 
 Minimum Service Term means the minimum term for supply by the LFC of a Wholesale Service, being: 
  

	 	(a)	the period of 12 months following the applicable Service Start Date; or 

  

	 	(b)	any longer period specified in the applicable Service Order or otherwise agreed between the parties in writing; 

Minimum Standard means a G.711A codec standard, a packetisation rate of 10ms and a maximum delay allowance for jitter of 20ms, and
providing an analogue interface compliant with PTC 220 Section 5; 
 Multi Dwelling Unit has the meaning given to
that term in the Operations Manuals; 
 NBAP has the meaning given to that term in the Operations Manuals; 

Network Threat means any External Event that is likely to result in harm, degradation or loss of service to the LFC Network, the
Service Provider, Resellers or End Users or a threat to national security if allowed to spread or continue; 
 Operational
Readiness Programme means the programme of work to be undertaken by the Service Provider to prepare for connection to the LFC Network, including the testing and commissioning of processes, products and interfaces, as described in the Operations
Manuals; 
 Operations Manual means the operations manual for a Wholesale Service, maintained by the LFC and available at
www.chorus.co.nz/operations manual as amended from time to time; 
 Price Cap means a price cap published by
CFH on its website; 
 Price List means the list of Charges payable by service providers for Wholesale Services and
Ancillary Services which is available at www.chorus.co.nz/price list as amended from time to time by the LFC; 

Product Forum has the meaning given in clause 25.1(a); 
 Reseller means any customer receiving Services from the Service Provider, other than an End User; 
 Security Requirements means the requirement under clause Error! Reference source not found. to either have an Acceptable Credit Rating or provide a Security; 

Service means a Wholesale Service or an Ancillary Service; 
 Service Description means the detailed description of a Service, including the applicable specifications which is available at www.chorus.co.nz as amended from time to time by the LFC;

 Service Level Terms means the description of the service levels and service rebates applicable to a Service;

 Service List means the list of Services comprised in the Service Descriptions and the Price List, as amended from time
to time by the LFC; 

  
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 Service Order means a Service Request accepted by the LFC in accordance with
clause 4.4(b)(i), and includes the Service Description, Service Level Terms, Operations Manual and Charges applicable to the Services to be provided by the LFC that are the subject of that Service Request; 

Service Request means a written or electronic request for the supply of a new Wholesale Service or Ancillary Service, or a move,
add, change or termination of an existing Wholesale Service or Ancillary Service provided by the LFC under this Agreement, issued by the Service Provider to the LFC in accordance with the Operations Manual applicable to that Service; 

Service Start Date means the date that the LFC activates or otherwise makes available a Service ordered by the Service Provider;

 Single Dwelling Unit has the meaning given that term in the Operations Manuals; 

Term means the duration of this Agreement, described in clause 2.1; and 

Wholesale Services means any or all of the wholesale telecommunications services (and may include (where the context permits) any
other services or equipment associated with the supply of those services) set out in the Service List, but does not include Ancillary Services. 
  

	2.	INITIATION 

  

	2.1	Term: This Agreement has effect from the Effective Date and will continue until terminated in accordance with clause Error! Reference source not found.

  

	2.2	Conditions: The LFC’s performance of any obligations under this Agreement is conditional upon the Service Provider: 

 

	 	(a)	completing the Operational Readiness Programme to the reasonable satisfaction of the LFC; 

 

	 	(b)	fulfilling the Security Requirements; 

  

	 	(c)	connecting to the LFC Network at the applicable Interconnection Point; and 

 

	 	(d)	demonstrating, to the reasonable satisfaction of the LFC, that the Service Provider has taken steps to ensure that all End Users will be bound by the LFC (End User)
Terms. 

  

	2.3	Reasonable assistance: The LFC will provide the Service Provider with such assistance as the Service Provider reasonably requires to comply with the conditions
in clauses 2.2(a) and (c). 

  

	2.4	Failure of conditions: The LFC may terminate this Agreement for irremediable breach under clause 22.1(a) if: 

 

	 	(a)	the Service Provider has not continued to meet the Security Requirements during the Term, and the Service Provider has not remedied that breach within the period of 20
Business Days following the date that the LFC has given the Service Provider notice of such failure; or 

  

	 	(b)	the condition set out in clause 2.2(d) has not been met by the Service Provider, or waived by the LFC, within the period of 20 weeks following the Effective Date (or
such later date as the LFC may agree). 

  

	2.5	Contract Management: Each party will appoint and maintain throughout the Term a suitably qualified and experienced person as account manager. Each account
manager will supervise the performance of his or her appointing party’s obligations under, and liaise with the other party’s account manager regarding all aspects of, this Agreement. The initial account managers appointed by each party are
named on the cover page of this Agreement. 

  

	3.	CONNECTING TO THE LFC NETWORK 

  

	3.1	Interconnection Point: The Service Provider is responsible for connecting to the LFC Network at the Interconnection Point. The LFC may only change an
Interconnection Point if a change is necessary to protect the security or integrity of that interconnection Point in order to maintain the continuity of supply of the Wholesale Services. In the event of any such change: 

 

	 	(a)	the LFC will give the Service Provider not less than six months’ notice, unless the change is required to respond to an Emergency (in which case the LFC will give
the Service Provider as much notice as is practicable in the circumstances, acting reasonably); 

  
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	 	(b)	the LFC will consult in good faith with the Service Provider during the notice period to understand the implications of the change for the Service Provider and will use
all reasonable endeavours to mitigate the cost to the Service Provider of reconnection to a new Interconnection Point, and will not charge the Service Provider any fee for that reconnection; 

 

	 	(c)	the Service Provider will be responsible, at its own cost, for reconnecting to the LFC Network at the new Interconnection Point or Interconnection Points, including
managing customer migration and data transfers; and 

  

	 	(d)	the change management process set out in clause 24 will not apply, except for the consultation provisions in clause 24.5. 

If a negligent act or omission of the LFC or its contractors or agents has directly given rise to the need for a change to the
Interconnection Point to protect the security or integrity of that Interconnection Point, then clauses 3.1(a), (b) and (d) (but not clause 3.1(c)) will apply, and: 

 

	 	(e)	the LFC will reimburse the Service Provider for its reasonable costs in reconnecting to the LFC Network at the new Interconnection Point or Interconnection Points,
including managing customer migration and data transfers; and 

  

	 	(f)	such reconnection, migration and transfers will be carried out in the way (consistent always with good industry practice) that the LFC considers to be the most
efficient. 

  

	3.2	Network management: The LFC will pass through to the Service Provider signalling and network management information delivered to its ports, so that the Service
Provider has transparency of information between the UNI port and the Interconnection Point to the extent reasonably required to enable the Service Provider to manage its services. The LFC may, with the Service Provider’s consent, delegate
management control of the relevant UNI ports to the Service Provider (while retaining overall management control). 

  

	3.3	Service Provider equipment: In relation to all equipment (including software): 

 

	 	(a)	used by the Service Provider or Resellers to connect to the LFC Network or the LFC Equipment; or 

 

	 	(b)	provided to End Users by the Service Provider or Resellers; 

 the Service Provider (in the case of Service Provider equipment (including software)): 
  

	 	(c)	is responsible for selecting, supplying and maintaining that equipment, and will ensure that each item of equipment meets applicable standards set out in the Operations
Manuals; 

  

	 	(d)	will test that equipment to ensure that it will work in connection with the LFC Network; 

 

	 	(e)	will follow the LFC’s reasonable directions in relation to the connection of that equipment; and 

 

	 	(f)	will make any modifications to that equipment that the LFC reasonably requires to avoid any danger or interference that equipment may cause to the Wholesale Services,
other network operators, other service providers’ services, the LFC Equipment or the LFC Network; 

 and in
the case of Reseller equipment (including software), the Service Provider will procure that the Reseller carries out each of the obligations in clauses 3.3(c) to (f). 
  

	3.4	LFC Equipment: If an End User causes any damage to any LFC Equipment or the LFC Network, then subject to the Service Provider having complied at all relevant
times with clauses 2.2(d) and 10.2(d), the Service Provider will only be responsible to the LFC for damage to the Optical Network Termination unit caused by the End User and not to any other part of the LFC Equipment or the LFC Network. The Service
Provider will discharge this responsibility by reimbursing the LFC for the reasonable cost of repairing or replacing the Optical Network Termination unit. 

  

	3.5	LFC premises: 

  

	 	(a)	If the supply of any Service requires the location of Service Provider equipment (which for these purposes includes Reseller equipment) on the LFC’s premises, the
LFC will: 

  

	 	(i)	ensure that the Service Provider’s representatives have safe access to those premises at any time in accordance with the applicable Operations Manual so that they
can install, inspect, maintain, replace or remove the equipment; 

  

	 	(ii)	provide a safe and secure operating environment for the equipment; 

  

	 	(iii)	use its best endeavours to protect the equipment from environmental hazards (including radio or electrical interference, power fluctuations and other abnormal
environmental conditions); 

  

	 	(iv)	use all reasonable endeavours to protect the equipment from alteration, repair, movement or other interference, except by the Service Provider or with the Service
Provider’s prior written consent; 

  
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	 	(v)	immediately notify the Service Provider if it becomes aware: 

  

	 	(A)	of any damage or unauthorised access to the equipment; or 

  

	 	(B)	that the equipment requires maintenance; 

  

	 	(vi)	not damage or interfere with the equipment, and promptly notify the Service Provider if it is lost, stolen or damaged; and 

 

	 	(vii)	not sell, lease, encumber, or part with possession of, that equipment 

  

	 	(b)	The Service Provider will ensure that, when attending the LFC’s premises, its representatives comply with the LFC’s reasonable directions, and all health,
safety and security policies and procedures notified to the Service Provider by the LFC during the Term. 

  

	3.6	Capacity: The parties acknowledge that the Service Provider is responsible for maintaining sufficient equipment, processes and capacity (including spares,
redundancy and backhaul) to operate and maintain its network and services. 

  

	3.7	LFC consents: Subject to clauses 12.2 and 12.3, the LFC will be responsible for obtaining and maintaining any and all third party authorisations, licences and
consents required by the LFC generally to operate the LFC Network, including local territorial authority, council and Land Transport Agency consents for network construction and civil works. 

 

	3.8	Service Provider consents: Subject to clause 3.7, if the Service Provider needs a third party authorisation, licence or consent to supply a Service (or another
service dependent on that Service) to a Reseller or End User: 

  

	 	(a)	it will be responsible for obtaining that authorisation, licence or consent; and 

 

	 	(b)	the LFC will promptly notify the Service Provider if it becomes aware that the Service Provider does not have that authorisation, licence or consent.

  

	4.	ORDERING SERVICES 

  

	4.1	Service List: The Service List describes the Wholesale Services and Ancillary Services available to be provided by the LFC under this Agreement. During the Term
the Service Provider may request the supply of a Service in accordance with the terms of this clause Error! Reference source not found. 

  

	4.2	Pre-qualification system: The LFC will maintain a pre-qualification system in accordance with the Operations Manuals. 

 

	4.3	Service Request: The Service Provider may: 

  

	 	(a)	request the supply of a Service; or 

  

	 	(b)	request a change to an existing Service; or 

  

	 	(c)	terminate an existing Service, 

by completing and delivering to the LFC a Service Request, in accordance with the process set out in the Operations Manual applicable to
that Service. 
  

	4.4	Service Order: The following process will govern the formation of Service Orders, except to the extent expressly varied by the Operations Manual applicable to
the Wholesale Service and associated Ancillary Services that are the subject of the Service Order. 

  

	 	(a)	Within four Business Hours following receipt of a Service Request the LFC will acknowledge receipt. 

 

	 	(b)	Following acknowledgement of receipt of a Service Request the LFC will, within the timeframe set out in the applicable Operations Manual, notify the Service Provider
that either: 

  

	 	(i)	the Service Request is accepted (and becomes a Service Order), setting out the order number and the planned Service Start Date for the new or changed Wholesale Service
and associated Ancillary Services (as applicable); or 

  

	 	(ii)	further information is reasonably required before the Service Request can be accepted, identifying the information required; or 

  
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	 	(iii)	if it has good cause to reject the Service Request (acting reasonably), that the Service Request is rejected, giving reason(s). 

 

	 	(c)	The Service Provider may withdraw a Service Request by notice to the LFC at any time before the Service Request is accepted in accordance with clause 4.4(b)(i).

  

	 	(d)	A Service Order will bind the LFC and the Service Provider, and form part of this Agreement, from the date that the Service Request that constitutes the Service Order
is accepted by the LFC in accordance with clause 4.4(b)(i). 

  

	 	(e)	Unless specifically agreed otherwise in a Service Order, the Service Provider may request a change to a Service Order at any time prior to the planned Service Start
Date, by notice to the LFC. Clause 4.4(b) will apply to that change request as if it was a Service Request. 

  

	 	(f)	If the actual Service Start Date for a Service is later than the planned Service Start Date set out in a Service Request accepted under clause 4.4(b)(i), any service
rebate payable under clause 6.5 in relation to that Service will be calculated from the planned Service Start Date. 

  

	4.5	Availability: The Service Provider acknowledges that inclusion of a Service in the Service List does not guarantee that the Service will be available to be
provided at the time when a Service Request is issued. In particular, Services may not be available due to the geographic or technical capability of the LFC Network, because the Service has not yet been launched by the LFC, or because LFC Equipment
is temporarily unavailable due to, for example, network build and deployment. The LFC will, from time to time, advise the Service Provider of the geographic locations in which the Services are available. 

 

	4.6	Specifications: The specifications of a Service are set out in the applicable Service Description. The LFC will provide the Service to meet those specifications.
The LFC is free to determine the manner in which it uses technology to provide a Service. The LFC will commence consulting with the Service Provider through the Product Forum at a reasonable time in advance of any material change to the technology
used to provide a Service which may affect the Service Provider. 

  

	5.	SUPPLY OF SERVICES 

  

	5.1	Start supply: The LFC will make the supply of the Wholesale Service and associated Ancillary Services available to the Service Provider on the Service Start Date
specified in the applicable Service Order or, if no Service Start Date is specified, in accordance with the provisioning service level under the applicable Service Level Terms. 

 

	5.2	End supply: 

  

	 	(a)	Subject to clause 5.2(d), from 1 June 2014 the LFC may end the supply of a Wholesale Service if: 

 

	 	(i)	the Wholesale Service is no longer viable or the LFC is otherwise unable to continue to provide the Wholesale Service, by giving not less than 24 months’ notice to
the Service Provider; or 

  

	 	(ii)	the LFC decides, in its sole discretion, to withdraw the Wholesale Service from general availability and replace it with a new Wholesale Service, by giving not less
than 12 months’ notice to the Service Provider. 

  

	 	(b)	If the LFC gives notice under clause 5.2(a) of its intention to end the supply of a Wholesale Service it will: 

 

	 	(i)	attach to that notice a plan for the migration of the Service Provider from that Wholesale Service to (at the Service Provider’s election) another Wholesale
Service or, where applicable, to any replacement wholesale telecommunications services (Replacement Wholesale Service); 

  

	 	(ii)	provide reasonable assistance to the Service Provider to assist the Service Provider in migrating from that Wholesale Service to (at the Service Provider’s
election) another Wholesale Service or, where applicable, to any Replacement Wholesale Service; 

  

	 	(iii)	not accept any new Service Request for the supply of the Wholesale Service if that Service Request is received on or after the date on which the LFC makes the supply of
the Replacement Wholesale Service available to the Service Provider or, where no Replacement Wholesale Service is being provided, 12 months after the date of the LFC’s notice under clause 5.2(a); and 

 

	 	(iv)	if the notice period expires during the Minimum Service Term applicable to the Wholesale Service, continue to supply the Wholesale Service on the terms of the
applicable Service Order until the expiry of that Minimum Service Term, unless the parties agree otherwise. 

  

	 	(c)	Early termination charges will not apply if the LFC ends the supply of a Wholesale Service under this clause 5.2. 

  
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	 	(d)	The LFC may not end supply of a Base Wholesale Service before 31 December 2019 unless, subject to clause 5.2(e), the LFC provides a replacement service approved by
CFH that delivers at least those performance characteristics at the same price as the withdrawn Base Wholesale Service. If CFH approves any replacement service in accordance with this clause then this clause will continue to apply to that
replacement service. 

  

	 	(e)	A GPON Wholesale Service (or a replacement of that GPON Wholesale Service) may be withdrawn by the LFC on or after 1 January 2015 (and not be replaced) if, over
the preceding 12 month period, the relevant service has been supplied (as an input service) to less than 5% of the end users receiving GPON Wholesale Services (from all service providers) over the LFC Network in that period.

  

	5.3	Continuity of supply: A Service Order will continue until terminated in accordance with this Agreement. A change to a Service Order will not initiate a new
Service Order, or cause the existing Service Order to terminate, unless expressly agreed in writing. In particular, a change to a Service Order that is implemented by the LFC electronically and does not require a physical visit to a site or
Interconnection Point will not cause the Service Order to terminate. 

  

	5.4	Service standards: When providing a Service the LFC will: 

  

	 	(a)	use reasonable care and skill; 

  

	 	(b)	meet the specifications for that Service, as set out in the applicable Service Description; and 

 

	 	(c)	meet the Core Service Levels for that Service, as set out in the applicable Service Level Terms and including any specific service levels that the parties have agreed
in writing will apply in respect of an individual Reseller or End User (subject always to the LFC’s obligation to provide Wholesale Services on a non-discriminatory basis). 

 

	5.5	Maintaining the LFC Network: Without prejudice to the LFC’s obligations to meet the availability service levels specified in the Service Level Terms, the
LFC may temporarily suspend or restrict a Service in order to carry out maintenance or development work on the LFC Network. In doing so the LFC will, unless the suspension or restriction is required to respond to an Emergency:

  

	 	(a)	give the Service Provider not less than five Business Days’ notice of the suspension or restriction; 

 

	 	(b)	use best endeavours to ensure that the suspension or restriction takes place during the planned outage window for that Service, as specified in the applicable
Operations Manual; 

  

	 	(c)	use its best endeavours to minimise disruption to the Service Provider, Resellers and End Users; and 

fully reinstate the Service as soon as the maintenance or development work is completed. 

 

	6.	FAULTS 

  

	6.1	Responsibility for Faults: 

  

	 	(a)	The LFC is responsible for monitoring, diagnosing, repairing and resolving any fault in a Wholesale Service, the LFC Network or the LFC Equipment (a Fault) in
accordance with the procedures set out in each applicable Operations Manual. 

  

	 	(b)	The LFC is not responsible for any fault in the Service Provider’s equipment or network but may, at the Service Provider’s request and cost, agree to fix such
faults. Where that fault arises as a result of a breach of this Agreement by the LFC or any of its contractors or agents, the cost of fixing such faults will be borne by the LFC. 

 

	 	(c)	The LFC will provide such access to the LFC’s operational support systems and business support systems, documentation and training as is necessary for the Service
Provider to meet its clause 6.2 obligations. 

  

	6.2	Reporting of Faults: 

  

	 	(a)	The Service Provider will use its best endeavours to operate, throughout the Term, a competent and sufficiently resourced Fault reporting service for its Resellers and
End Users. 

  

	 	(b)	Before reporting a Fault to the LFC the Service Provider will: 

  

	 	(i)	confirm the presence of the Fault; 

  

	 	(ii)	perform an initial diagnosis to identify where the Fault has arisen; 

  

	 	(iii)	use its reasonable endeavours to investigate the Fault and to find out all relevant information from Resellers and End Users; and 

  
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	 	(iv)	use its reasonable endeavours to confirm that the fault is a Fault that the LFC is responsible for under clause 6.1. 

 

	 	(c)	If the Service Provider’s diagnosis of a fault indicates that it is a Fault that the LFC is responsible for, the Service Provider will report that Fault to the LFC
in accordance with the procedure set out in the applicable Operations Manual. 

  

	6.3	Fault affecting a Wholesale Service: If the LFC discovers a Fault that affects a Wholesale Service provided to the Service Provider under this Agreement, it will
promptly notify the Service Provider of that Fault. 

  

	6.4	Resolution of Faults: 

  

	 	(a)	The LFC will use its best endeavours to diagnose and resolve each Fault promptly, and in any event will diagnose and resolve each Fault in accordance with the
applicable Core Service Levels set out in the Service Level Terms for the applicable Wholesale Service. 

  

	 	(b)	The Service Provider will give the LFC and its representatives such access to the Service Provider’s premises as the LFC considers reasonably necessary to diagnose
and resolve a Fault, and will use all reasonable endeavours to ensure that Resellers and End Users do the same (which may require the LFC entering the Reseller’s premises as a contractor to the Service Provider). 

 

	6.5	Service rebate: 

  

	 	(a)	The LFC will provide each Service to meet or exceed the Core Service Levels set out in the Service Level Terms applicable to that Service, in accordance with clause
5.4. 

  

	 	(b)	If the LFC fails to meet a Core Service Level it will, subject to clause 6.5(c) and the applicable Service Level Terms, credit an amount equal to the applicable service
rebate set out in the Service Level Terms (a service rebate) to the next invoice payable for that Service. 

  

	 	(c)	No service rebate will be payable for a failure to meet a Core Service Level if that failure was caused by the suspension, restriction or cessation of the applicable
Service in accordance with clauses 5.2(a), 21 (excluding clause 21.1(a)) or Error! Reference source not found.. 

  

	 	(d)	If, as a result of one incident or set of circumstances, the LFC fails to meet two or more Core Service Levels in respect of an instance of a Service provided in
respect of the same End User, the LFC will only be obliged to provide a rebate for the failure to meet one of those Core Service Levels (the greater of the rebates). 

 

	7.	PAYMENT 

  

	7.1	Charges: 

  

	 	(a)	The Service Provider will pay the Charges, plus GST (if any) in accordance with this clause 7. 

 

	 	(b)	Except as expressly provided otherwise in this Agreement, recurring Charges (as indicated in the Price List) will be invoiced in advance, and transactional and
ancillary Charges (as indicated in the Price List) will be invoiced in arrears. 

  

	 	(c)	The LFC will ensure that the Charges do not exceed the Price Caps. 

  

	7.2	Additional charges: The LFC may charge (as part of the Ancillary Charges) the Service Provider on a time and materials basis, in accordance with the schedule of
hourly rates for LFC personnel set out in the Price List, to recover any costs that it incurs (acting reasonably): 

  

	 	(a)	as a direct result of any rework required to implement a change to a Service Order made in accordance with clause 4.4(e), where the LFC has commenced fulfilment of the
Service Order before the change request is made; 

  

	 	(b)	in the identification, diagnosis and resolution of any fault, and restoration of the Wholesale Service, LFC Network or LFC Equipment (as applicable), if the fault:

  

	 	(i)	is caused by an act or omission of, or by any equipment of, the Service Provider, a Reseller or an End User; or 

 

	 	(ii)	fails outside the scope of the LFC’s responsibilities (set out in clause 6.1); or 

 

	 	(iii)	is reported by the Service Provider but cannot be identified or replicated by the LFC, 

but will seek the Service Provider’s express authorisation before diagnosing or resolving a clause 7.2(b)(ii) fault unless the
diagnosis or resolution is required to respond to an Emergency. The LFC will reimburse the Service Provider for any amount charged by the LFC to the Service Provider for any clause 7.2(b)(ii) or 7.2(b)(iii) fault that is subsequently found to be a
Fault for which the LFC is responsible; 

  
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	 	(c)	as a direct result of any Fault that the Service Provider has knowledge of, but fails to diagnose and report in accordance with clauses 6.2(b) and 6.2(c); and

  

	 	(d)	as a direct result of any failure by the Service Provider to give to, or procure for, the LFC and its representatives such access (at the appointed time(s) agreed
between the LFC and the Service Provider) to the Service Provider’s, Reseller’s or End User’s premises as the LFC considers necessary to diagnose and resolve a Fault or perform a Service Order., 

 

	7.3	Invoices: The LFC will issue a valid GST invoice to the Service Provider for the Charges and GST each month in accordance with the billing procedure set out in
the Operations Manual. The Service Provider will be liable for all Charges and GST applicable to each Service provided from the later of each applicable Service Start Date or any other date agreed between the parties in writing as the date the
Service is to be activated or otherwise made available. The Service Provider will provide the LFC with sufficient information to allow the LFC to allocate any amount received to a particular invoice. 

 

	7.4	Expiry of right to issue an invoice: 

  

	 	(a)	Subject to clause 7.4(b), the LFC will not issue an invoice for any Charges more than 99 days after the date of supply of the Service to which those Charges relate.

  

	 	(b)	If the LFC (acting reasonably) requires additional information from the Service Provider to prepare an invoice: 

 

	 	(i)	it will, promptly following the date of supply of the applicable Service (and in any event no more than 60 days after that date), notify the Service Provider of its
requirements, clearly specifying the additional information required; and 

  

	 	(ii)	the Service Provider will, within 20 days following the date of receipt of the LFC’s notice, provide such information as is reasonably within the scope of the
LFC’s requirements. 

  

	 	(c)	If the Service Provider fails to comply with clause 7.4(b)(ii), the 99 day period set out in clause 7.4(a) will be extended by a period equal to the additional number
of days it takes the Service Provider to provide the information (so that the LFC has a further 20 days following receipt of the information to issue an invoice). 

 

	7.5	Payment: 

  

	 	(a)	 Subject to clause 7.6, the Service Provider will pay each invoice issued by the LFC on or before the 20th day of the month following the month in which the invoice is issued
without withholding any amount or making any deduction. 

  

	 	(b)	The LFC may apply any payment received in reduction of any amount that the Service Provider owes to the LFC, and may set off any amount that the Service Provider owes
to the LFC against any amount payable by the LFC to the Service Provider. 

  

	 	(c)	The Service Provider may apply any payment received in reduction of any amount that the LFC owes to the Service Provider, and may set off any amount that the LFC owes
to the Service Provider against any amount payable by the Service Provider to the LFC. 

  

	 	(d)	No payment will be made by credit card. 

  

	7.6	Dealing with Invoice Error disputes: 

  

	 	(a)	If the Service Provider reasonably and in good faith believes there is a manifest error in either the Charges in an invoice or in the calculation of the amount of an
invoice (Invoice Error), the Service Provider may give notice to the LFC before the due date setting out in full details of: 

  

	 	(i)	the invoice; 

  

	 	(ii)	the Invoice Error; 

  

	 	(iii)	the grounds for the Service Provider’s belief that the Invoice Error exists; and 

 

	 	(iv)	the amount by which the Service Provider believes that the LFC has overcharged or undercharged it by reason of the Invoice Error. 

 

	 	(b)	Where the Service Provider believes the LFC has overcharged it by reason of an Invoice Error, the Service Provider may withhold payment of the amount it believes it has
been overcharged until the issue has been resolved in accordance with this clause 7.6. Whenever payment is withheld under this clause 7.6(b) the Service Provider must, within 10 Business Days after the due date, give the LFC a full extract detailing
each withheld Charge. 

  

	 	(c)	If the Service Provider fails to follow the notice requirements set out in clause 7.6(a), then any right under clause 7.6 to withhold payment of the amount it believes
it has been overcharged does not apply. 

  
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	 	(d)	Following the giving of any notice of an Invoice Error, the Service Provider and the LFC must treat that notice as a dispute notice and resolve the dispute in
accordance with clause 20. If the parties cannot resolve the dispute in accordance with the procedure in clause 20.2, the Service Provider and the LFC must refer the dispute to expert decision under clause 20.4. 

 

	 	(e)	If it is agreed by the parties or decided under clause 20 that an Invoice Error exists in an invoice, depending on whether the amount properly payable by the Service
Provider is more than the amount paid (an underpayment) or less than the amount paid (an overpayment), then: 

  

	 	(i)	in the case of an underpayment, the Service Provider must forthwith pay to the LFC the amount of the difference between the amount paid and the amount properly payable,
plus interest on that amount at the Bill Rate (as at the date the Service Provider made the underpayment) plus 2% for the period from the date the Service Provider made the underpayment to the date of payment, or the date clause 7.8(a) becomes
applicable, whichever is earlier; 

  

	 	(ii)	in the case of an overpayment, the LFC must forthwith pay to the Service Provider the amount of the difference between the amount paid and the amount properly payable,
plus interest on that amount at the Bill Rate (as at the date the Service Provider made the overpayment) plus 2% for the period from the date the Service Provider made the overpayment to the date of payment, or the date clause 7.8(a) becomes
applicable, whichever is earlier; or 

  

	 	(iii)	in the case of an Invoice Error that affects three or more of any five consecutive invoices and constitutes an overpayment by the Service Provider that is more than 5%
of the amount properly payable by the Service Provider under such invoices, the LFC must forthwith pay to the Service Provider the amount of the difference between the amount paid and the amount properly payable, plus interest on that amount at the
Bill Rate (as at the date the Service Provider made the first overpayment) plus 4% for the period from the date the Service Provider made the first overpayment to the date of payment, or the date clause 7.8 becomes applicable, whichever is the
earlier. 

  

	 	(f)	If it is agreed by the parties or decided under clause 20 that an Invoice Error does not exist, the Service Provider must forthwith pay any amount withheld plus
interest on the amount withheld at the Bill Rate (as at the date of the invoice) plus 2% for the period from the day after the due date to the date of payment of the amount withheld, or the date clause 7.8 becomes applicable, whichever is earlier.

  

	7.7	Other invoice disputes: 

  

	 	(a)	Regardless of whether or not the Service Provider has previously given notice of an Invoice Error in relation to any invoice, the Service Provider may give the LFC a
dispute notice in respect of that invoice, provided that a dispute notice cannot be given later than 99 days after the date of the invoice. Any dispute notice under this clause 7.7(a) must comply with clause 20.2 and set out details of the invoice,
the disputed amount and the grounds for the dispute together with any available supporting evidence. The Service Provider and the LFC must resolve the dispute in accordance with section 20. 

 

	 	(b)	If a dispute under clause 7.7(a) is resolved in favour of the Service Provider, the LFC must forthwith pay the amount agreed or found to have been overpaid plus
interest at the Bill Rate (as at the date of the overpayment) plus 2% on the overpaid amount for the period from the date the overpayment was made to the date of refund of the overpayment or the date clause 7.8 becomes applicable, whichever is
earlier. 

  

	 	(c)	If a dispute under clause 7.7(a) is resolved in favour of the LFC, the Service Provider must forthwith pay the amount agreed or found to have been underpaid plus
interest at the Bill Rate (as at the date the underpayment became due) plus 2% on the underpaid amount for the period from the date the underpayment was paid to the date of payment of the balance or the date clause 7.8 becomes applicable, whichever
is earlier. 

  

	7.8	Interest on unpaid amounts: Where an amount due from the LFC or the Service Provider under clause 7.6(e), 7.7(a), 7.7(b), or 7.7(c) remains unpaid on the 20th
Business Day after the date the dispute is resolved, that party must pay interest on that amount at the Bill Rate (as at that 20th Business Day) plus 5% for the period from that 20th Business Day to the date of payment of that amount, in addition to
the amount due under clauses 7.6(e), 7.7(a), 7.7(b), or 7.7(c). 

  

	8.	SECURITY REQUIREMENTS 

  

	8.1	Acceptable Credit Rating: 

  

	 	(a)	The Service Provider will have an Acceptable Credit Rating if it has a credit rating of not less than BBB (Standard & Poors), Baa (Moody’s Investor
Services) or BBB (Fitch). 

  

	 	(b)	If the Service Provider has a credit rating that meets or exceeds the Acceptable Credit Rating, it will provide to the LFC documentary evidence, to the LFC’s
reasonable satisfaction, that the Service Provider has a credit rating that meets or exceeds the Acceptable Credit Rating, within 20 Business Days following the Effective Date. The LFC may subsequently require that the Service Provider provide that
documentary evidence again at any time that the LFC has reasonable grounds to believe that the Service Provider does not have an Acceptable Credit Rating. 

  

  
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	8.2	Security: 

  

	 	(a)	If the Service Provider: 

  

	 	(i)	has not provided the documentary evidence required by the LFC to the LFC’s satisfaction in accordance with clause 8.1; or 

 

	 	(ii)	fails to pay an undisputed invoice by its due date without an explanation reasonably satisfactory to the LFC, 

the LFC may require the Service Provider to provide, and maintain until further notice, security to cover amounts payable by the Service
Provider under this Agreement (Security). The Security is to be in the form of (at the Service Provider’s discretion) either: 
  

	 	(iii)	a cash prepayment; or 

  

	 	(iv)	a bank guarantee, letter of credit or performance bond, in a form acceptable to the LFC (acting reasonably) and, in the case of a bank guarantee or a letter of credit,
from a bank with a credit rating that meets or exceeds the Acceptable Credit Rating; or 

  

	 	(v)	with the LFC’s approval (not to be unreasonably withheld) a guarantee from the parent company of the Service Provider in a form reasonably acceptable to the LFC,
provided that the parent company has a credit rating that meets or exceeds the Acceptable Credit Rating. 

  

	 	(b)	The LFC will specify the amount of the Security, provided that the LFC may not specify an amount greater than the LFC’s reasonable estimate of the total value of
Charges likely to be payable by the Service Provider under this Agreement: 

  

	 	(i)	in the case of the Security to be provided for the period of three months following the Effective Date, during the fourth and fifth months, taking into account the
forecasts provided by the Service Provider under clause 11; and 

  

	 	(ii)	in the case of any other period, based on the Charges payable by the Service Provider under this Agreement during the previous two consecutive month period.

  

	 	(c)	If this Agreement is terminated, the LFC will return to the Service Provider any Security that is not required to cover any amount owed by the Service Provider to the
LFC. 

  

	8.3	Provide Security: 

  

	 	(a)	The Service Provider will provide Security (including any adjusted Security required under clause 8.3(b)) to the LFC within 20 Business Days of the LFC’s notice to
the Service Provider that the Security (or additional Security) is required. 

  

	 	(b)	At six month intervals after the Security is provided the Service Provider may request, or the LFC may require, the amount of the Security to be adjusted. The adjusted
Security is to meet the requirements of clause 8.2. 

  

	8.4	Apply Security: The LFC may, without recourse to the Service Provider, deduct any overdue amount owed by the Service Provider under this Agreement (other than
amounts that are subject to a dispute in accordance with clauses 7.6 or 7.7) from any Security, and if it does so it will promptly notify the Service Provider of the amount deducted. Any such deduction will be without prejudice to the Service
Provider’s continuing obligation to maintain the Security in accordance with the requirements of clause 8.2. The Service Provider will ensure that, within 10 Business Days of receiving notice of such deduction, it provides any additional
Security required to restore compliance with clause 8.2. 

  

	9.	THE SERVICE PROVIDER’S RESPONSIBILITIES 

  

	9.1	General responsibilities: The Service Provider will: 

  

	 	(a)	not interfere with the reasonable use of Wholesale Services by the other customers of the LFC or any other network operator; 

 

	 	(b)	only use the Wholesale Services for the provision of telecommunications services to Resellers and End Users, and any other purposes contemplated by this Agreement and,
for the avoidance of doubt, not for any purpose that could interfere with or damage the LFC Network; and 

  

	 	(c)	not infringe or otherwise diminish any of the LFC’s intellectual property rights in relation to the Wholesale Services. 

  
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	9.2	Voice service: If the Service Provider offers a voice service to End Users: 

 

	 	(a)	the LFC will, on request by the Service Provider, provide an ATA voice port meeting the Minimum Standard at an End User’s premises to enable the Service Provider
to provide the voice service; and 

  

	 	(b)	the Service Provider may, by notice to the LFC, request that the LFC provide an alternative codec or design to that offered by the LFC under clause 9.2(a). The LFC will
consider any request in good faith and charge reasonable set-up fees at the rates set out in the Price List for testing and commissioning that new ATA configuration. 

 

	9.3	Multiple Service Providers: 

  

	 	(a)	In this clause 9.3: 

 Primary
Service Provider means a provider of a Residential Service to an End User, either directly or via a Reseller, that uses a UFB Standard Wholesale Service as an input; 
 Residential Service means a bitstream service provided to residential End Users, or to Resellers for provision to residential End Users; 

Secondary Service Provider means a provider of a service (such as Multicast) to the same End User, either directly or via a
Reseller, as the Primary Service Provider that uses the same physical infrastructure as the UFB Standard Wholesale Service purchased by the Primary Service Provider; and 
 UFB Standard Wholesale Service means a Wholesale Service of a standard that meets or exceeds the minimum standard for the residential Wholesale Service (being 30Mbps downstream, 10 Mbps upstream
with 2.5 Mbps CIR symmetrical). 
  

	 	(b)	If a Primary Service Provider requests cancellation of the UFB Standard Wholesale Service for an End User (and it is the only Primary Service Provider to the relevant
End User), the LFC will notify the Secondary Service Provider that the Primary Service Provider has cancelled the UFB Standard Wholesale Service for that End User. 

 

	 	(c)	Upon receipt of the notification under clause 9.3(b), the Secondary Service Provider may, by notifying the LFC within five Business Days: 

 

	 	(i)	become the Primary Service Provider for the End User and provide a Residential Service that uses a UFB Standard Wholesale Service as an input to that End User; or

  

	 	(ii)	cancel the Wholesale Service that the Secondary Service Provider was purchasing to service that End User. 

 

	 	(d)	If the Secondary Service Provider does not make an election within the timeframe required under clause 9.3(c), the LFC may cancel the Secondary Service Provider’s
Wholesale Service in respect of the relevant End User on five Business Days’ notice. 

  

	 	(e)	If the Secondary Service Provider’s Wholesale Service is cancelled under clause 9.3(c) or 9.3(d), no early termination charges will apply.

  

	10.	END USERS 

  

	10.1	Responsibility: The Service Provider: 

  

	 	(a)	is responsible, and acknowledges that the LFC is not responsible, for all interactions with Resellers and End Users, including provisioning, billing, customer services,
contact with the police and other government authorities, fault reporting and dispute management; and 

  

	 	(b)	acknowledges that the LFC is not responsible for the use of Wholesale Services by Resellers, End Users and any other third parties (whether authorised by the Service
Provider or not), including the content of any data or information that they send or receive using Wholesale Services. 

  

	10.2	Supply of services: 

  

	 	(a)	The Service Provider will ensure that each contract it has with a Reseller (in this clause 10.2, a counterparty) for the supply or use of a Wholesale Service, or
a service dependent on a Wholesale Service, contains terms with the effect that: 

  

	 	(i)	the counterparty consents to the Service Provider sharing information about that counterparty with the LFC, to the extent necessary for the LFC to provide the Services;

  

	 	(ii)	the counterparty will not damage or tamper with any device provided by the LFC for the delivery of that service and will follow the Service Provider’s instructions
in relation to all such devices; 

  

	 	(iii)	the LFC does not confer any right or benefit on the counterparty; and 

  
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	 	(iv)	all liability of the LFC is excluded, to the maximum extent permitted by law. 

 

	 	(b)	The Service Provider will ensure that its contract with the counterparty requires the counterparty to ensure that each contract it has with a Reseller for the supply or
use of a Service, or a service dependent on a Service, contains terms equivalent to those required by clause 10.1(a), as if the Reseller was a counterparty. 

 

	 	(c)	If the Service Provider includes in any contract with an End User terms that limit or exclude the liability of the Service Provider or any other person in connection
with the provision of services, then the Service Provider will ensure that the LFC, its contractors and agents receive the benefit of a substantially similar limit or exclusion in connection with the construction, installation, inspection,
maintenance, replacement or removal of LFC (End User) Equipment. 

  

	 	(d)	The Service Provider will procure that each End User agrees to be bound by the LFC (End User) Terms in a manner which is enforceable directly against the End User by
LFC. 

  

	10.3	Representations: The Service Provider will not: 

  

	 	(a)	represent that the LFC participates in the supply of services to the Service Provider’s Resellers or End Users, other than as a wholesale supplier to the Service
Provider; or 

  

	 	(b)	represent that there will be a continuing relationship between the LFC and any of the Service Provider’s Resellers or End Users, 

and neither the LFC nor the Service Provider will attribute blame for a fault, the need for maintenance of a network or the suspension of
a Service to the other party if it would be misleading, unethical, deceptive or defamatory to do so. 
  

	10.4	No relationship with the LFC: No obligation or other legal relationship is created between the LFC and the Service Provider’s Resellers or End Users by this
Agreement. This Agreement does not confer any right, benefit or privilege on any such Reseller or End User. 

  

	10.5	No contact: The LFC will not contact any Reseller or End User in relation to any service (dependent on a Service) that is provided to that Reseller or End User
without the Service Provider’s prior consent, except to the extent provided for in the Operations Manual. 

  

	11.	FORECASTING 

  

	11.1	Forecasting Report: Within 10 Business Days following each of: 

  

	 	(a)	the Effective Date; and 

  

	 	(b)	the last day of each subsequent calendar month during the Term, 

 (each a Month End), the Service Provider will provide a report to the LFC setting out its forecast for the volume of orders applicable to each Wholesale Service for each month of the period of 6
consecutive months following Month End (Forecasting Report). 
  

	11.2	Scope of Forecasting Report: Each Forecasting Report is to set out, for each Wholesale Service, the Service Provider’s forecast for that Wholesale Service
by reference to each applicable Candidate Area. The requirements of the Forecasting Report are set out further in the Operations Manuals. 

  

	12.	LFC EQUIPMENT 

  

	12.1	Title: 

  

	 	(a)	Title to all LFC Equipment will remain with the LFC at all times unless otherwise expressly agreed in writing. The parties acknowledge that, although the LFC will
retain title to LFC Equipment, this will not prevent or restrict the Service Provider’s access to the services provided under this Agreement in anyway. 

 

	 	(b)	The Service Provider will not: 

  

	 	(i)	enter into any agreement dealing with the LFC Equipment, other than to grant the End User the right to use the LFC (End User) Equipment in connection with the provision
of services to the End User; or 

  

	 	(ii)	encumber the LFC’s title to the LFC Equipment or expose that title to third party claims, and will notify the LFC if the Service Provider becomes aware of any
third party claim; or 

  

	 	(iii)	do any other thing that might affect the LFC’s ownership of the LFC Equipment. 

  
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	12.2	Access to Service Provider or any Reseller Premises: 

 If the supply of any Service requires any LFC Equipment to be located and used on the premises of the Service Provider or any Reseller, the Service Provider will: 

 

	 	(a)	obtain any third party authorisation, licence or consent necessary for the LFC to construct, install, inspect, maintain or replace that LFC Equipment at, or remove it
from, those premises including, if the Service Provider or Reseller is in rented or Multi Dwelling Unit, the consent of the owner or body corporate (as applicable) and any similar consent needed for the LFC to access, and locate LFC (Service
Provider) Equipment at, common areas. The LFC will promptly notify the Service Provider if the LFC becomes aware of a required authorisation, licence or consent; and 

 

	 	(b)	ensure that the LFC’s representatives have safe access to those premises so that they can construct, install, inspect, maintain, replace or remove LFC Equipment.

 In accessing the premises of the Service Provider or any Reseller, the LFC will comply with the Service
Provider’s or the Reseller’s reasonable policies and procedures for access provided that copies of such policies and procedures are given to the LFC in advance. 

 

	12.3	Access to End User Premises 

 If the supply of any Service requires any LFC Equipment to be located and used on the premises of an End User or an NBAP: 
  

	 	(a)	the Service Provider will have responsibility for obtaining any End User consent necessary for the LFC to construct, install, inspect, maintain or replace that LFC
Equipment at, or remove it from, those premises; 

  

	 	(b)	in the case of a Single Dwelling Unit or an NBAP, the Service Provider will have responsibility for obtaining any building owner authorisation, licence or consent
necessary for the LFC to construct, install, inspect, maintain or replace that LFC Equipment at, or remove it from, those premises, subject to the LFC providing template authorisations, licences or consents for use by the Service Provider for this
purpose; 

  

	 	(c)	in the case of a Multi Dwelling Unit: 

  

	 	(i)	the Service Provider will provide to the LFC contact information for the relevant building owner or body corporate (as applicable); 

 

	 	(ii)	if the Service Provider has a conditional agreement with an End User in the Multi Dwelling Unit to take Services, then on receipt of the information from the Service
Provider: 

  

	 	(A)	the LFC will use reasonable endeavours to obtain the required third party authorisation, licence or consent necessary for the LFC to construct, install, inspect,
maintain or replace that LFC Equipment at, or remove it from, those premises. The LFC will make the initial written request of the building owner or body corporate (as applicable) for required authorisation, licence or consent. If the LFC elects,
such letter may be a preliminary notice issued in accordance with section 155F of the Telecommunications Act 2001; and 

  

	 	(B)	the LFC will have sole discretion as to the extent to which it uses any rights or powers available to it under the Telecommunications Act 2001 to obtain such required
authorisation, licence or consent; 

 the Service Provider acknowledges that until all required authorisations,
licences or consents are obtained, the LFC will be unable to supply Services to the premises; and 
  

	 	(d)	the Service Provider will use its reasonable endeavours to ensure that the LFC’s representatives have safe access to those End User premises so that they can
construct, install, inspect, maintain, replace or remove LFC Equipment. 

  

	12.4	LFC (Service Provider) Equipment: 

  

	 	(a)	The Service Provider will, in relation to all LFC (Service Provider) Equipment located on premises not owned or controlled by the LFC: 

 

	 	(i)	provide a safe and secure operating environment; 

  

	 	(ii)	use its best endeavours to protect the LFC (Service Provider) Equipment (including protection from radio or electrical interference, power fluctuations and other
abnormal environmental conditions) and ensure that the LFC (Service Provider) Equipment is not altered, repaired, serviced, removed or moved, except with the LFC’s prior written consent; 

 

	 	(iii)	not use the LFC (Service Provider) Equipment other than in accordance with the terms of the applicable Operations Manual; 

 

	 	(iv)	immediately notify the LFC if it becomes aware of any damage or unauthorised access to the LFC (Service Provider) Equipment or if the LFC (Service Provider) Equipment
requires maintenance; and 

  
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	 	(v)	if requested by the LFC, return the LFC (Service Provider) Equipment to the LFC when it is no longer required by the Service Provider, and take reasonable care to
ensure that the LFC (Service Provider) Equipment is not damaged while being returned. 

  

	12.5	Fit for purpose: The LFC will ensure that all LFC Equipment is safe, free from material defects and fit for the purpose of providing the applicable Wholesale
Services. 

  

	12.6	Changes to LFC Equipment: 

  

	 	(a)	The LFC may, without limiting its obligation to meet the Core Service Levels, modify or substitute any of the LFC Equipment if it considers that such modification or
substitution is reasonably required. The LFC will commence consulting with the Service Provider through the Product Forum at a reasonable time in advance of any material change to the LFC Equipment which may affect the Service Provider.

  

	 	(b)	In making any modification or substitution of any of the LFC Equipment, the LFC will use reasonable efforts to ensure that any such modified or substituted LFC
Equipment is fully compatible with the LFC Network and all other equipment, software and technology that the LFC Equipment interoperates with. 

  

	13.	PERSONAL PROPERTY RIGHTS 

  

	13.1	Interpretation: Terms used in this clause Error! Reference source not found. have the meaning given in the Personal Property Securities Act 1999
(PPSA). 

  

	13.2	No beneficial interest: Acquiring a Service does not give the Service Provider any property rights or beneficial interest in any part of the LFC Network. Neither
the supply of any LFC Equipment to, nor use of any LFC Equipment by, the Service Provider or any End User gives any beneficial interest in that LFC Equipment. 

 

	13.3	Security interest: If any lease or bailment of LFC Equipment to the Service Provider or any End User constitutes a security interest for the purposes of the
PPSA, the LFC may perfect its security interest by registering a financing statement in the Personal Property Securities Register. This clause 13.3 constitutes a security agreement for the purposes of the PPSA. 

 

	13.4	Waiver: The Service Provider waives its PPSA rights: 

  

	 	(a)	to receive a copy of any verification statement in respect of any financing statement or financing change statement registered by the LFC; 

 

	 	(b)	to receive a notice that the LFC intends to sell any personal property over which a security interest is granted (Goods), or to retain the Goods on enforcement
of the security interest granted to the LFC under this Agreement; 

  

	 	(c)	to object to a proposal by the LFC to retain Goods in satisfaction of any obligation owed by the Service Provider to the LFC; 

 

	 	(d)	to receive a statement of account on the sale of Goods; 

  

	 	(e)	to redeem Goods; and 

  

	 	(f)	where any Goods become installed in or affixed to other goods, to receive notice of removal of the accession and to apply to the Court for an order relating to removal
of the accession. 

  

	13.5	Further assistance: The Service Provider will provide all information and do all things reasonably required by the LFC to ensure that the LFC has a perfected
security interest in the Wholesale Service and LFC Equipment under the PPSA, including by registration of a financing statement. 

  

	14.	INTELLECTUAL PROPERTY RIGHTS 

  

	14.1	Rights: 

  

	 	(a)	All property rights (including copyright, trade marks, design and other intellectual property rights) contained in or relating to any software, equipment or other
materials forming part of a Service, or otherwise provided by the LFC under a Service Order, belong to the LFC or its licensors (LFC IP). 

  
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	 	(b)	Subject to clause 10.3, neither party will use the name, trade name or logo of the other party without that party’s prior written consent, except that the Service
Provider may use the name, trade mark or logo of the LFC in referring to the LFC as a wholesale supplier to the Service Provider. 

  

	14.2	LFC IP (excluding software): The LFC grants to the Service Provider a non-exclusive, non-transferable licence to use, subject to clause 14.1(b), the LFC IP
(excluding software) during the Term, only to the extent required to exercise its rights and perform its obligations under this Agreement and for no other purpose. To the extent that a Reseller or an End User requires a right to use the LFC IP
(excluding software) in order to use the services provided by the Service Provider which have the Services as an input, then the LFC grants to the Service Provider the right to sub-licence the use of the LFC IP (excluding software) to that Reseller
or End User. 

  

	14.3	Software: If the LFC provides any software to the Service Provider in connection with the supply of Services: 

 

	 	(a)	the LFC grants a non-exclusive, non-transferable licence to the Service Provider to use that software during the Term for the purposes of providing telecommunications
services using the Services, and such other purposes expressly contemplated by this Agreement, in accordance with this Agreement and any other terms on which the software is ordinarily licensed or that the LFC notifies to the Service Provider in
writing prior to making available that Service to the Service Provider. To the extent that a Reseller or an End User requires a right to use the software in order to use the services provided by the Service Provider which have the Services as an
input, then the LFC grants to the Service Provider the right to sub-licence the use of the software to that Reseller or End User; 

  

	 	(b)	the Service Provider will not copy, modify or reverse assemble the software except as expressly agreed with the LFC; and 

 

	 	(c)	the Service Provider will implement any software upgrades provided by the LFC within the timeframe reasonably specified by the LFC. 

 

	14.4	IP indemnity: The LFC will indemnify the Service Provider against any cost, damage or loss (including reasonable legal costs) suffered or incurred by the Service
Provider as a direct result of any claim by a third party that the Service Provider’s use of any software licensed by the LFC in accordance with this Agreement infringes any patent, copyright, design, trade name, trade mark or service mark of
that third party (a claim), provided that the Service Provider: 

  

	 	(a)	gives the LFC written notice of the claim within five Business Days of becoming aware of it; 

 

	 	(b)	does not admit liability or settle any claim without the LFC’s prior written consent; and 

 

	 	(c)	permits the LFC (at the LFC’s cost) to defend the claim, and renders all reasonable assistance to the LFC for that purpose. 

 

	15.	INFORMATION 

  

	15.1	Confidential Information: Each party will treat the arrangements contemplated by this Agreement and all information (in whatever form) of a confidential nature
provided under or in connection with it (together, Confidential Information) as confidential and will not use that information or disclose it to any person except: 

 

	 	(a)	as required by law or by the rules of any stock exchange, provided that (where possible) the party required to disclose the information will notify the other party
beforehand; or 

  

	 	(b)	to its employees, agents and contractors to the extent necessary to perform its obligations under this Agreement or exercise any rights under this Agreement; or

  

	 	(c)	where the information is already in the public domain (but not where it is in the public domain as a result of a breach of this clause Error! Reference source not
found.); or 

  

	 	(d)	with the other party’s prior written consent. 

  

	15.2	General disclosure: 

  

	 	(a)	Notwithstanding clause 15.1, the LFC may disclose the Service Provider’s Confidential Information: 

 

	 	(i)	to third party suppliers (including other network operators) only to the extent necessary to enable those suppliers to supply all or part of a Service;

  

	 	(ii)	to comply with its obligations under the Deed of Undertaking between the LFC and the Crown; 

 

	 	(iii)	to CFH and Government agencies for reporting purposes; 

  

	 	(iv)	to credit reporting organisations so that they can run credit checks on the LFC’s behalf; and 

  
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	 	(v)	to other third parties solely on a need to know basis for the purposes of billing and credit management, planning, provisioning, operating, maintaining or reconfiguring
the LFC Network, and to otherwise give effect to the purpose that the Confidential Information was provided for; 

provided that LFC may not disclose the Service Provider’s Confidential Information under clause 15.2(a)(i) to any service provider
competitor of the Service Provider in any part of New Zealand, without the Service Provider’s prior written consent. 
  

	 	(b)	The LFC will not disclose the Service Provider’s Confidential Information to any third party other than under clauses 15.2(a)(ii) and 15.2(a)(iii) without first
informing the recipient of the confidential nature of the information and requiring them to comply with the terms of this clause 15. 

  

	15.3	Privacy: The LFC will not collect and hold information about Resellers and End Users, including generating information within the LFC Network when a Service is
used, or provide this information to the LFC’s employees, contractors, agents, suppliers and network operators except for lawful purposes connected with the LFC’s business operations and in full compliance with clauses 15.1 and 15.2 and
the Privacy Act 1993 (including its applicable codes). 

  

	15.4	Announcements: Neither party will issue any press release or public announcement concerning this Agreement without the other party’s prior written consent.
The Service Provider acknowledges that the LFC intends to publish a copy of this Agreement on its website. This clause Error! Reference source not found. will not apply to limit that publication. 

 

	16.	RECORDS 

  

	16.1	Maintain records: The LFC will, at all times, use reasonable endeavours to maintain, store and archive up to date, accurate and complete records of all invoices,
reports, Services ordered and supplied, operating processes and procedures and other records relating to its performance under this Agreement. The Service Provider will, at all times, use reasonable endeavours to maintain, store and archive up to
date, accurate and complete records of all Services ordered and supplied, in accordance with normal commercial practices. 

  

	16.2	Assistance: Each party will provide any information (including copies of any records to be maintained under clause 16.1) and other assistance that the other
party may reasonably require to perform its obligations under this Agreement, and ensure that all such information provided to the other party is correct and complete. 

 

	17.	INDEMNITIES 

  

	17.1	Common indemnity: Each party (the indemnifying party) will indemnify the other party against any cost, damage or loss suffered or incurred by the other
party under or in connection with this Agreement as a result of any: 

  

	 	(a)	unlawful or malicious act or omission of the indemnifying party; 

  

	 	(b)	personal injury or death caused by a negligent act or omission of the indemnifying party; or 

 

	 	(c)	breach by the indemnifying party of clauses 15.1 and 15.3. 

  

	17.2	LFC indemnity: 

  

	 	(a)	The LFC will, subject to clause 17.2(b), indemnify the Service Provider (including its personnel, contractors, agents and representatives) against any loss of, or
damage to, tangible property (to the extent only of the Service Provider’s loss, including arising from any third party claims) arising as a direct result of: 

 

	 	(i)	the LFC’s breach of clause 3.5; or 

  

	 	(ii)	any wilful or negligent act or omission of the LFC or any contractor or agent of the LFC in their installation, inspection, maintenance, replacement or removal of any
LFC Equipment in the premises of a third party (including an End User). 

  

	 	(b)	The aggregate liability of the LFC for all costs, damages and losses arising under or in connection with this clause 17.2 is limited to $50,000,000.

  
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	17.3	Service Provider indemnity: 

  

	 	(a)	The Service Provider will, subject to clause 17.3(b), indemnify the LFC (including its personnel, contractors, agents and representatives) against:

  

	 	(i)	any loss of, or damage to, tangible property (to the extent only of the LFC’s loss, including arising from any third party claims) arising as a direct result of
any wilful or negligent act or omission of the Service Provider or any contractor or agent of the Service Provider; or 

  

	 	(ii)	any claim by any Reseller or End User relating to any services dependent on a Service, except where that claim is a direct result of any wilful or negligent act or
omission of the LFC or any contractor or agent of the LFC. 

  

	 	(b)	The aggregate liability of the Service Provider for all costs, damages and losses arising under or in connection with clause 17.3(a) is limited to $50,000,000.

  

	17.4	Parties to mitigate: Each party will take reasonable steps to mitigate any loss incurred as a result of any act or omission by the other party (whether or not
claimable under an indemnity). 

  

	17.5	Contribution: The obligations to indemnify set out in clauses 17.1 to 17.3 (inclusive) will not apply to the extent that the other party directly contributes to
the applicable cost, damage or loss. 

  

	18.	LIABILITY 

  

	18.1	Maximum liability: 

  

	 	(a)	The aggregate liability of the LFC to the Service Provider for all costs, damages and losses arising under or in connection with this Agreement during any 12 month
period is limited to the lesser of: 

  

	 	(i)	the aggregate value of the Charges paid and payable by the Service Provider during that period; and 

 

	 	(ii)	$500,000. 

  

	 	(b)	The aggregate liability of the Service Provider to the LFC for all costs, damages and losses arising under or in connection with this Agreement during any 12 month
period is limited to the lesser of: 

  

	 	(i)	the aggregate value of the Charges paid and payable by the Service Provider during that period; and 

 

	 	(ii)	$500,000. 

  

	 	(c)	Clauses 18.1(a) and 18.1(b) will not limit the liability of: 

  

	 	(i)	each party for fraud; 

  

	 	(ii)	the Service Provider to pay the Charges; and 

  

	 	(iii)	each party under the clause 17.1 indemnity, the LFC under the clause 14.4 and 17.2 indemnities, and the Service Provider under the clause 17.3 indemnity.

  

	18.2	Exclusions: Neither party has any liability to the other in contract, tort (including negligence), equity, under statute or otherwise for any economic loss, loss
of data, loss of revenue, loss of anticipated profit or savings, or for any indirect or consequential loss or damage, however caused. 

  

	18.3	No other warranties: All representations and warranties not expressly set out in this Agreement, whether implied by law or based on any oral or written
representations not expressed in this Agreement or otherwise, are excluded to the maximum extent permitted by law. 

  

	18.4	Consumer Guarantees Act: The Service Provider: 

  

	 	(a)	acknowledges that it is acquiring the Services for the purposes of a business and that the Consumer Guarantees Act 1993 does not apply; and 

 

	 	(b)	will, to the maximum extent permitted by law, exclude the application of the Consumer Guarantees Act 1993 from all agreements between the Service Provider and its
Resellers and End Users that in any way relate to the Services. 

  
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	18.5	No liability to third parties: 

  

	 	(a)	Neither the LFC nor any other network operator or third party service provider (including their officers, employees, contractors and agents) (each an interested
party): 

  

	 	(i)	confers any benefit, right or privilege on any person other than the Service Provider under this Agreement; or 

 

	 	(ii)	except where the LFC is the interested party, will be liable to the Service Provider for loss or damage of any kind arising from the Service Provider’s use of
Services. 

  

	 	(b)	For the purposes of the Contracts (Privity) Act 1982, clause 18.5(a) confers a benefit upon each interested party. 

 

	18.6	Insurance: 

  

	 	(a)	During the Term, and for a period of two years following the effective date of termination, the Service Provider will, at its own expense, ensure that it maintains
adequate insurance in respect of its potential liability for loss or damage under this Agreement, including: 

  

	 	(i)	public liability insurance for a sum of not less than $50,000,000 for any claim or series of claims arising out of one event; and 

 

	 	(ii)	property insurance for the reinstatement value of all assets in the possession of, the control of, or used by, the Service Provider that are or will be used in
connection with the Services and the LFC Network, including any Service Provider premises at which LFC (Service Provider) Equipment is located from time to time. 

 

	 	(b)	The Service Provider will, at the LFC’s request, promptly provide such evidence as the LFC may reasonably require (including a copy of each insurance policy and
certificate of currency) to demonstrate that the Service Provider has complied with clause 18.6(a). 

  

	19.	FORCE MAJEURE 

  

	19.1	Obligations suspended: Neither party will be liable to the other party for any failure to perform its obligations under this Agreement (other than the Service
Provider’s obligation to pay the Charges for Services already provided) during the time and to the extent that such performance is prevented by reason of a Force Majeure Event. 

 

	19.2	Required actions: The party affected by the Force Majeure Event will notify the other party as soon as practicable after the Force Majeure Event occurs and use
reasonable endeavours to: 

  

	 	(a)	provide information regarding the extent of its inability to perform and an estimate of the time required to overcome the Force Majeure Event; 

 

	 	(b)	remedy or mitigate the effect of the Force Majeure Event; 

  

	 	(c)	complete its obligations under this Agreement to the greatest extent practicable, as quickly as is practicable, with regard to the nature and effect of the Force
Majeure Event; and 

  

	 	(d)	upon cessation of the effects of a Force Majeure Event, give notice to the other party of such cessation as quickly as practicable. 

 

	19.3	Charges: The Service Provider will not be required to pay any Charges for a Service to the extent that the Service is not provided due to a Force Majeure Event.

  

	20.	DISPUTE RESOLUTION 

  

	20.1	Compliance: If any dispute arises out of this Agreement, neither party will commence proceedings relating to the dispute unless that party has first complied
with this clause 20. The parties will continue to comply with their obligations under this Agreement during the dispute resolution process. 

  

	20.2	Notice of dispute: The party claiming a dispute has arisen will give notice to the other party setting out full particulars of the dispute. The parties will use
all reasonable endeavours to resolve the dispute by discussion, negotiation or other informal means, including by escalation to the Chief Executive of each party if the dispute is not resolved within the period of 10 Business Days following the date
of the notice of dispute. 

  

	20.3	Mediation: If the parties do not resolve the dispute within 20 Business Days of the date of the clause 20.2 notice (or any longer period agreed in writing) then
the parties may agree to refer the dispute to mediation by a single mediator. The mediator, and location of the mediation, will be appointed by the chairperson of LEADR New Zealand Inc., or the nominee of that chairperson. The dispute will be
mediated in accordance with the standard mediation agreement of the New Zealand chapter of LEADR. 

  
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	20.4	Expert Decision: 

  

	 	(a)	Where the parties must in accordance with this Agreement, or have agreed in writing to, refer a dispute to expert decision (Expert Referral Agreement), the
following provisions will apply: 

  

	 	(i)	the expert will be appointed by agreement between the parties. However, if the parties cannot agree on the expert within five Business Days of the Expert Referral
Agreement, then an appropriately qualified and experienced expert will be appointed at the written request of either party by the Chair of the Telecommunications Carriers’ Forum. The party making this request will use, and where possible ensure
that the Chair of the Telecommunications Carriers’ Forum uses, best endeavours to ensure that the appointment of the expert occurs no later than 15 Business Days from the date of the Expert Referral Agreement. The party making this request must
copy the request to the other party; 

  

	 	(ii)	to be eligible for appointment, the expert must be independent and impartial, experienced in the relevant area of telecommunications and will preferably be experienced
in dispute resolution procedures. Unless the parties agree otherwise, he or she must not have performed any duties, whether as an employee, consultant or contractor, for any of the parties or any related company (as defined in section 2(3) of the
Companies Act 1993) during a 12 month period prior to the date the dispute notice was given; 

  

	 	(iii)	the expert may seek independent legal advice regarding the appropriate procedures for resolution of the dispute; 

 

	 	(iv)	the expert must adopt a procedure which, in the expert’s opinion, is the most simple and expeditious procedure practicable in the circumstances;

  

	 	(v)	the parties will provide the expert with any information that the expert reasonably requires in a timely manner. The expert is entitled to make a decision in the
absence of the information requested being provided, but subject to a reasonable time being given to the relevant party to provide that information; 

  

	 	(vi)	the expert will act as an expert and not as an Arbitrator under the Arbitration Act 1996. The expert will be entitled to rely on the expert’s own judgement and
opinion; 

  

	 	(vii)	the expert will provide the parties with a draft decision for comment prior to finalising it. The expert must provide the parties with a reasonable period in which to
comment on the draft decision and must take any comments received during that period into account in finalising a decision; 

  

	 	(viii)	the expert must provide a decision (which must include reasons for that decision) to the parties in writing as soon as reasonably practicable and, in the absence of
manifest error or bad faith, that decision will be final and binding upon the parties. Either party has 10 Business Days from the date the decision is provided to assert that the expert’s decision contains a manifest error or the expert has
acted in bad faith; 

  

	 	(ix)	the expert must use all reasonable endeavours to reach a final decision within 40 Business Days after appointment, and the parties must co-operate reasonably with the
expert to achieve that timetable; 

  

	 	(x)	except as set out in clause 20.4(a)(xi), the costs of the expert will be borne equally by the parties. Each party will bear its own costs in relation to the
expert’s decision; and 

  

	 	(xi)	where a party has asserted that the expert’s decision contains a manifest error or the expert has acted in bad faith, and such assertion is not upheld in that
party’s favour by the relevant court or other authority, then the party making the assertion will bear the costs (that is, all court or other authority costs) of both parties. 

 

	20.5	Arbitration: If the parties do not resolve the dispute within 20 Business Days of the date of the clause 20.2 notice (or any longer period agreed in writing)
then (except where the dispute has been referred to expert decision under clause 20.4) either party may refer the dispute to arbitration, in accordance with the current protocol of the Arbitrators’ and Mediators’ Institute of New Zealand
Inc. (AMINZ). The arbitration will be conducted by a single arbitrator appointed by the president of AMINZ, as soon as possible at Auckland in accordance with the provisions of the Arbitration Act 1996. The award of the arbitrator will be an award
with reasons and the reasons will form part of the award. The award of the arbitrator will be final and binding on the parties and, to the extent that it is lawful to do so, the parties waive any right of appeal or review. 

 

	20.6	Costs: The parties will bear their own costs and an equal share of the expenses of the mediation or the arbitration unless, in the context of an arbitration, the
arbitrator determines that a party will bear some proportion or all of the costs of the other party. 

  

	20.7	Urgent relief: Nothing in this clause 20 prevents either party from seeking urgent injunctive or interlocutory relief. 

  
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	21.	SUSPENSION OF SERVICES 

  

	21.1	Suspension: The LFC may, subject to clause 21.2, immediately and without liability suspend or restrict any or all of the Services at any time:

  

	 	(a)	in response to an Emergency; or 

  

	 	(b)	if the Service Provider has committed a material and irremediable breach of this Agreement, or a material remediable breach that is not remedied in accordance with
clause 22.1(b); or 

  

	 	(c)	if the LFC reasonably suspects fraud or any other illegal activity by the Service Provider (or its employees, agents or contractors) in connection with any Service; or

  

	 	(d)	if an insolvency event (defined in clause 22.1(d)) occurs in relation to the Service Provider; or 

 

	 	(e)	if the Service Provider fails to maintain compliance with the Security Requirements. 

 

	21.2	Proportionate response: The LFC may only exercise its rights under clause 21.1 to suspend or restrict a Service to the extent, and for the period of time, that
such suspension or restriction is reasonably necessary. 

  

	21.3	Notice: The LFC will provide as much prior notice of the suspension as is possible in the circumstances or, if no prior notice is possible, will notify the
Service Provider as soon as possible after the suspension commences. 

  

	21.4	Recommencement: The LFC will recommence providing a suspended Service as soon as reasonably possible in the circumstances after it decides, in its sole
discretion (but acting reasonably), that the reason for the suspension has ceased. 

  

	21.5	Continued payment: If any Services are suspended or restricted in accordance with clause 21.1, the Service Provider will not pay the Charges for the Services
that have been suspended and will continue to pay the Charges for the Services that have not been suspended. 

  

	22.	TERMINATION 

  

	22.1	Immediate termination: Either party (the terminating party) may terminate this Agreement or any Service Order at any time by giving the other party notice
in writing if: 

  

	 	(a)	the other party commits a material breach of this Agreement that is not capable of being remedied; or 

 

	 	(b)	the other party commits a material breach of this Agreement that is capable of being remedied, but that is not rectified within 20 Business Days of that party receiving
written notice of the material breach from the terminating party; or 

  

	 	(c)	a Force Majeure Event substantially prevents, hinders or delays the other party from performing its obligations under this Agreement for 60 consecutive days; or

  

	 	(d)	an insolvency event occurs in relation to the other party, being: 

  

	 	(i)	the presentation of an application for its liquidation that is not discharged within 30 days of filing or demonstrated to the terminating party to be frivolous or
vexatious before the expiry of that 30 day period; or 

  

	 	(ii)	any step taken in or toward the making of any compromise, proposal or deed of arrangement with all or some of its creditors; or 

 

	 	(iii)	the appointment of a liquidator, receiver, statutory manager, or similar official, to that party; or 

 

	 	(iv)	the suspension or threatened suspension of the payment of its debts; or 

  

	 	(v)	cessation of a whole or any relevant part of its business in New Zealand; or 

 

	 	(vi)	the enforcement of any security against the whole or a substantial part of its assets; or 

 

	 	(vii)	any analogous insolvency event or proceedings. 

  

	22.2	Minor breaches: For the purpose of clauses 22.1(a) and 22.1(b), repeated breaches or a series of minor breaches may constitute a material breach of this
Agreement. 

  
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	22.3	Termination of this Agreement by notice: 

  

	 	(a)	Subject to clause 22.3(b), the LFC may terminate this Agreement by 12 months’ notice to the Service Provider, but if it does so any Service Order with a Minimum
Service Term that has not yet expired will continue until the expiry of that Minimum Service Term (subject to the Service Provider’s continued payment of the Charges). 

 

	 	(b)	The LFC may not issue a notice to terminate this Agreement pursuant to clause 22.3(a) before 1 January 2020. 

 

	 	(c)	The Service Provider may terminate this Agreement at any time by 60 days’ notice to the LFC, but if it does so during the Minimum Service Term of any then-current
Service Order the LFC may require the Service Provider to pay the early termination charges (if any) set out in the Service List. 

  

	22.4	Ending a Service Order: 

  

	 	(a)	If the LFC has given notice to the Service Provider in accordance with clause 5.2 ending the supply of a Wholesale Service and associated Ancillary Services, the
Service Order governing the supply of that Wholesale Service and associated Ancillary Services will, subject to clause 5.2 and unless the parties agree otherwise, end on the date specified in the LFC’s notice. 

 

	 	(b)	The Service Provider may terminate a Service Order at any time, by 20 Business Days’ notice to the LFC given in accordance with clause 4.3, but if it does so
during the applicable Minimum Service Term the LFC may require the Service Provider to pay the early termination charges (if any) set out in the Service List. 

 

	22.5	No new Service Requests: The LFC may, in its sole discretion and by notice to the Service Provider: 

 

	 	(a)	if the LFC has the right to terminate this Agreement, instead cease to accept any Service Request; or 

 

	 	(b)	if the LFC has the right to terminate a Service Order, instead cease to accept any Service Request related to that Service Order. 

 

	23.	CONSEQUENCES OF TERMINATION 

  

	23.1	Disconnection: 

  

	 	(a)	If any Service Order is terminated, or comes to an end, in accordance with clause 22.4: 

 

	 	(i)	the LFC will, subject to clause 5.2, cease to fulfil that Service Order; 

  

	 	(ii)	to the extent that the Service Provider’s connection to the LFC Network at an Interconnection Point is only relevant to the Wholesale Service that is the subject
of that Service Order. 

  

	 	(A)	the LFC will disconnect the Service Provider from the LFC Network at that Interconnection Point; and 

 

	 	(B)	the Service Provider will promptly remove the Service Provider’s equipment from that Interconnection Point; and 

 

	 	(iii)	each party will immediately return to the other party any information, or other item, which is related to the Wholesale Service that is the subject of that Service
Order (but not to any continuing Wholesale Service), which is in its possession and that belongs to the other party. 

  

	 	(b)	If this Agreement is terminated: 

  

	 	(i)	the LFC will, subject to clause 22.3(a), cease to fulfil, and terminate, all Service Orders and disconnect the Service Provider from the LFC Network at each
Interconnection Point, so that the Service Provider is no longer able to receive the Wholesale Services; 

  

	 	(ii)	the Service Provider will promptly remove the Service Provider’s equipment from each Interconnection Point and any other location within the possession or control
of the LFC; and 

  

	 	(iii)	each party will immediately return to the other party any information or other item that is in its possession and that belongs to the other party.

  

	23.2	Charges for early termination of a Service Order: if the Service Provider terminates a Service Order under clause 22.3(c) or clause 22.4(b) during the Minimum
Service Term, or the LFC terminates a Service Order under clause 22.1, then the LFC may require the Service Provider to pay the early termination charges (if any) set out in the Service List. 

  
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	23.3	Survival: Termination and early termination charges will be without prejudice to any rights or obligations either party may have under this Agreement.
Termination does not affect any rights or responsibilities under this Agreement that are intended to survive termination, including clauses Error! Reference source not found. (Construction), 7 (Payment), Error! Reference source not
found. (Security Requirements), Error! Reference source not found. (Information), Error! Reference source not found. (Records), 17 (Indemnities), Error! Reference source not found. (Liability), 20 (Dispute resolution), 23
(Consequences of termination), 26 (General), and 27 (Demerger of Telecom). 

  

	24.	CHANGES 

  

	24.1	Agreement Changes: 

  

	 	(a)	Subject to clause 24.1(c), the LFC may propose an Agreement Change by notice to the Service Provider, being: 

 

	 	(i)	a change to an Operations Manual, if that change is likely to result in a significant change to the Service Provider’s procedures, facilities or systems; or

  

	 	(ii)	a non-trivial change to the General Terms, the Price List (but not the Charges), a Service Description or any Service Level Terms. 

For ease of reference, changes to Ancillary Charges are dealt with in the Price List, and changes to Core Charges are dealt with in
clause 24.3. 
  

	 	(b)	For the purposes of clause 24.1 (a)(ii), a “non-trivial change” includes a change that is likely to: 

 

	 	(i)	materially alter the Service Provider’s rights or obligations; 

  

	 	(ii)	impose material costs on the Service Provider (including if the change is likely to result in a significant change to the Service Provider’s procedures, facilities
or systems); or 

  

	 	(iii)	materially alter the Services being provided to the Service Provider. 

  

	 	(c)	After completing consultation in accordance with clause 24.5 the LFC may implement that Agreement Change by giving the Service Provider at least 60 Business Days’
notice of implementation. If the Service Provider requires additional time to make any consequent change to its procedures, facilities or systems it will notify the LFC, setting out the additional time required. The time for those consequent changes
will, to the extent required by the Service Provider, be extended: 

  

	 	(i)	automatically, for up to 20 Business Days; and 

  

	 	(ii)	at the discretion of the LFC, acting reasonably and in good faith, for up to a further 20 Business Days. 

 

	 	(d)	Subject to clause 24.2, the LFC will not propose any non-trivial change to the General Terms in accordance with clause 24.1(a)(ii) before 1 January 2015.

  

	24.2	Required Changes: 

  

	 	(a)	The LFC may propose a Required Change by notice to the Service Provider, being a change to any part of this Agreement (including any Service Order) for the
purpose of: 

  

	 	(i)	giving effect to any change required by law; or 

  

	 	(ii)	complying with any non-discrimination obligations owed by the LFC to the Crown provided that the LFC must not make a change to this Agreement pursuant to this clause
24.2(a)(ii) where that change: 

  

	 	(A)	will result in the terms of this Agreement being less favourable to the Service Provider; and 

 

	 	(B)	is being made to make this Agreement consistent with the terms of a wholesale services agreement between the LFC and another service provider which was entered into by
the LFC after the Effective Date of this Agreement; or 

  

	 	(iii)	responding to the discovery of a systemic defect in the LFC Network, the LFC (Service Provider) Equipment or any associated LFC support systems.

  

	 	(b)	After completing consultation in accordance with clause 24.5 the LFC may: 

  

	 	(i)	for a Required Change described in clauses 24.2(a)(i) or 24.2(a)(ii), implement that change by giving the Service Provider at least 20 Business Days’ notice of
implementation; and 

  

	 	(ii)	for a Required Change described in clause 24.2(a)(iii), implement that change by giving the Service Provider at least 60 Business Days’ notice of implementation,

 provided that if the Service Provider requires additional time to make any consequent change to its procedures,
facilities or systems it will notify the LFC, setting out the additional time required. The time for those consequent changes will, to the extent required by the Service Provider, be extended: 

 

	 	(iii)	automatically, for up to 20 Business Days; and 

  
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	Chorus UFB Services Agreement	  	
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	 	(iv)	at the discretion of the LFC, acting reasonably and in good faith, for up to a further 20 Business Days. 

 

	 	(c)	If the LFC considers (acting reasonably) that the Required Change is urgent: 

 

	 	(i)	it will notify CFH of the urgency and submit the change to CFH for approval at the same time the change is submitted to the Product Forum in accordance with clause
24.5; 

  

	 	(ii)	it may, subject to the approval of CFH, implement the Required Change by not less than 20 Business Days’ notice to the Service Provider before completing
consultation through the Product Forum, but will continue consultation until the clause 24.5 process is completed; and 

  

	 	(iii)	it will promptly implement, in accordance with clause 24.2(b), any subsequent amendment to the Required Change approved by CFH in accordance with clause 24.5.

  

	24.3	Changes to Core Charges: 

  

	 	(a)	The LFC may propose a change to a Core Charge set out in the Price List (Core Price Change) by notice to the Service Provider (provided that the Core Charges may
not in any case exceed the Price Caps). Changes to the Core Charges do not require the approval of CFH if they are under the Price Caps. 

  

	 	(b)	After completing consultation in accordance with clause 24.5, the LFC may implement the Core Price Change by giving the Service Provider at least 60 Business Days’
notice of the Core Price Change. 

  

	 	(c)	A Core Price Change will not apply to a Service Order before the expiry of the applicable Minimum Service Term unless it is a Required Change proposed in accordance
with clause 24.2. If, pursuant to clause 24.2, a Core Price Change is a Required Change the LFC may apply the Core Price Change to a Service Order before the expiry of the applicable Minimum Service Term provided that if the applied Core Price
Change results in an increase to the Core Charge: 

  

	 	(i)	the Service Provider may terminate the Service Order by 20 Business Days’ notice to the LFC given in accordance with clause 4.3; and 

 

	 	(ii)	no early termination charges will be payable by the Service Provider in relation to that early termination. 

 

	 	(d)	The LFC will not increase an individual Core Charge more than once in any 12 month period. 

 

	24.4	Price Cap Changes: 

  

	 	(a)	If the LFC is considering proposing to CFH that there should be an increase in a Price Cap for a Base Wholesale Service (other than the Central Office and POI
Co-location Service), it must first consult with the Product Forum in accordance with clause 24.5 before submitting its proposal to CFH (Price Cap Proposal). 

 

	 	(b)	The LFC will notify the Service Provider if it submits a Price Cap Proposal to CFH in accordance with clause 24.5(d). 

 

	 	(c)	The parties acknowledge that if CFH agrees to change a Price Cap in accordance with a Price Cap Proposal, CFH will update the Price Caps on its website, but such change
will not take effect for 12 months following the date of CFH’s approval. 

  

	 	(d)	Notwithstanding anything else in this Agreement, no change to the Price Caps for a Base Wholesale Service (other than the Central Office and POI Co-location Service)
will take effect before 1 January 2015. 

  

	24.5	Change Consultation: 

  

	 	(a)	if the LFC wishes to make: 

  

	 	(i)	an Agreement Change (including a Wholesale Service withdrawal in accordance with clause 5.2(a)); 

 

	 	(ii)	a Required Change; 

  

	 	(iii)	a Core Price Change; 

  

	 	(iv)	a change to an Interconnection Point in accordance with clause 3.1; 

  

	 	(v)	a Price Cap Proposal; or 

  

	 	(vi)	another type of change which this Agreement specifies must be referred to the Product Forum for consultation, 

(each a Proposed Change), the LFC must submit that Proposed Change to the Product Forum. 

 

	 	(b)	The LFC must consult in good faith with the Service Provider, all other affected service providers and other industry participants including CFH (each an Affected
Party) on each Proposed Change through the Product Forum in accordance with clause 25 to ensure that both the LFC and CFH understand the potential consequences of the Proposed Change and the related positions and material concerns of each
Affected Party. 

  
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	Chorus UFB Services Agreement	  	
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	 	(c)	The parties acknowledge that: 

  

	 	(i)	the LFC may only implement an Agreement Change or a Required Change with the prior approval of CFH; and 

 

	 	(ii)	if CFH approves a Price Cap Proposal, CFH will implement the change in accordance with clause 24.4(c). 

 

	 	(d)	Subject to clause 24.5(c), following completion of Product Forum consultation on a Proposed Change, the LFC: 

 

	 	(i)	will reasonably consider any responses relating to the Proposed Change provided to the LFC through the consultation process; 

 

	 	(ii)	may make any amendments to the Proposed Change that the LFC considers appropriate to reflect the consultation; 

 

	 	(iii)	will submit any proposed Agreement Changes, Required Changes or Price Cap Proposal (as amended) to CFH for approval; and 

 

	 	(iv)	will, subject to the receipt of CFH’s approval (where required), implement the Proposed Change. 

 

	24.6	Minor changes: The LFC may, by giving at least 20 Business Days’ notice to the Service Provider, make: 

 

	 	(a)	a change the LFC (acting reasonably) considers trivial to the General Terms, the Price List (other than the Charges), a Service Description, any Service Level Terms; or

  

	 	(b)	a change to an Operations Manual that is not likely to result in a significant change to the Service Provider’s procedures, facilities or systems.

  

	24.7	Other changes: No other change to this Agreement (including any Service Order) will be binding unless the change is in writing and signed by the authorised
representatives of both parties. 

  

	24.8	Regulation: If a Wholesale Service, or a service that is substantially the same as that service, is subject to a standard terms determination or a determination
under the Telecommunications Act 2001, then this Agreement will cease to apply to that Wholesale Service from the date that the determination comes into effect. 

 

	25.	PRODUCT FORUM 

  

	25.1	Product Forum: 

  

	 	(a)	The LFC will establish and operate a multi-party product forum (Product Forum), which will be open to all service providers that have entered into a Wholesale
Services Agreement with the LFC, provided that no service provider (including the Service Provider) will be obliged to participate in the Product Forum. 

  

	 	(b)	The purpose of the Product Forum is to encourage open communication and collaboration between the LFC and service providers, and between service providers, relating to
the Wholesale Services Agreements with the LFC. 

  

	 	(c)	The Product Forum will: 

  

	 	(i)	be open to CFH, the Ministry of Economic Development and the Commerce Commission and other industry participants; 

 

	 	(ii)	consider any pricing issues regarding the Services, including in relation to the Price Caps; 

 

	 	(iii)	consider any issues with the form and content of the General Terms, Service Descriptions, Service Level Terms and Operations Manuals; 

 

	 	(iv)	consider product roadmaps, including both LFC product ideas and service provider product ideas for the development of new products and enhancements to existing
products; 

  

	 	(v)	consider issues associated with the withdrawal and replacement of Wholesale Services; 

 

	 	(vi)	consider operational issues associated with Service Descriptions, Service Level Terms and Operations Manuals; and 

 

	 	(vii)	assist the LFC in determining which product ideas service providers would like to have prioritised by the LFC. 

 

	 	(d)	The Product Forum will operate in accordance with procedures and rules to be known as the “Product Forum Processes”. 

  
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	Chorus UFB Services Agreement	  	
		  	General Terms

  

	25.2	Product Forum Processes: 

  

	 	(a)	The Product Forum Processes will be developed by the LFC in conjunction with CFH and in consultation with the Service Provider and all other service providers. The
Product Forum Processes will promote the purpose of the Product Forum. 

  

	 	(b)	The Product Forum Processes will be consistent with the following principles: 

 

	 	(i)	the LFC and all service providers participating in the Product Forum (the service provider members) will be required to act at all times in good faith in their
dealings with each other in the Product Forum; 

  

	 	(ii)	if the LFC has an issue that is to be considered by the Product Forum, it will communicate with the service provider members, providing them with appropriate details of
the LFC’s position at that time and information which will facilitate open communication and collaboration on the issue; 

  

	 	(iii)	if the issue is not material the period for consultation may be relatively short and the manner of consultation more abbreviated. If the issue is material, then the
period for consultation will be longer and the manner of consultation more fulsome, enabling reasonable time for service provider members to evaluate and respond to the LFC’s position on the issue. In determining the materiality of the issue
and consequently the period and manner of consultation, the LFC will act reasonably and give due consideration to the likely impact of the issue on service providers generally; 

 

	 	(iv)	where appropriate, meetings will be held to allow a reasonable level of discussion of the views of the service provider members and the LFC’s position in response.
The LFC and service provider members will ensure that appropriately qualified and empowered representatives attend these meetings; 

  

	 	(v)	although the Product Forum Processes will set out timeframes for the consultations, it is envisaged that the LFC and service provider members will meet and communicate
as often as is reasonable within these timeframes to achieve the purpose of the Product Forum; and 

  

	 	(vi)	the Product Forum Processes will therefore also need to envisage evolution or change in the LFC’s position following or during any consultation. In this case, it
may be necessary for the LFC to consult again on the issue if the evolution or change is relatively material. 

  

	 	(c)	During the Product Forum consultations, service provider members should aim to achieve consensus on issues where possible. If the service provider members are unable to
reach consensus, then a formal vote may be required to determine the majority view of the service provider members. In such circumstances, there will be one equal vote per service provider member. The purpose of the vote will be to give the LFC a
clear record of service provider members’ views and is not determinative of whether a particular issue is progressed further by the LFC in the change process. For the avoidance of doubt, where a service provider member has more than one
representative at the Product Forum, the member will only be entitled to one vote. 

  

	26.	GENERAL 

  

	26.1	Entire agreement: This is the entire agreement between the parties in relation to the Services and supersedes all prior agreements, understandings and
representations. 

  

	26.2	Notices: Every notice or other communication given under or in connection with this Agreement will be made in writing, addressed to the other party and
personally delivered, posted by pre-paid registered mail or sent by fax or email to the address, fax number or email address of that party specified on the cover page of this Agreement, or such other address, fax number or email address as is
notified by that party to the other party. No notice or communication will be effective until received. A notice or other communication sent: 

  

	 	(a)	by prepaid registered mail will be considered to have been received by the addressee three days after it was posted; 

 

	 	(b)	by fax will be considered to have been received by the addressee on the Business Day that it is sent or, if sent outside Business Hours, when Business Hours recommence;
and 

  

	 	(c)	by email will be considered to have been received at the time that the email leaves the communications system of the sender, provided that the sender does not receive
any related error message at the time of sending and has received an automated delivery receipt from the communications system of the recipient. 

  

	26.3	Relationship: Nothing expressed or implied in this Agreement will be deemed to constitute either party as the partner, agent or joint venturer of the other
party. 

  

	26.4	Comply with laws: Each party will comply with the Civil Defence Emergency Management Act 2002, the Telecommunications Act 2001, the Telecommunications
(Interception Capability) Act 2004 and all other applicable laws, and mandated industry standards and codes, at all times when performing its obligations and exercising its rights under this Agreement. 

  
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	Chorus UFB Services Agreement	  	
		  	General Terms

  

	26.5	Assignment: Either party may assign any of its rights and obligations under this Agreement to any other person, provided that it has obtained the prior written
consent of the other party with such consent not to be unreasonably withheld. Any change in the effective management or control of the Service Provider or the Service Provider’s parent company, through whatever means, where management or
control passes to a service provider (or a person who had management or control of a service provider) whose agreement with the LFC has been terminated for material breach or an insolvency event will be deemed an assignment of this Agreement
requiring the LFC’s prior written consent. 

  

	26.6	Subcontracting: Each party may subcontract the performance of its obligations under this Agreement, but if it does so it will remain fully responsible and liable
for ail work carried out by the contractor, all materials used by the contractor and all acts and omissions of the contractor. 

  

	26.7	Further assurances: Each party will (at its own expense) promptly do everything reasonably required to give full effect to this Agreement.

  

	26.8	No waiver: No waiver by either party of its rights under this Agreement will be effective unless in writing and signed by that party. If either party delays or
fails to enforce any of its rights under this Agreement, this will not constitute a waiver by that party of that or any other right available to it. 

  

	26.9	Remedies cumulative: The rights, powers and remedies in this Agreement are cumulative and are not exclusive of any rights, powers or remedies provided by law.
The exercise of any of the rights, powers and remedies provided in this Agreement will not prejudice the exercise of any other right, power or remedy under this Agreement or at law. 

 

	26.10	Severability: If one or more of the terms of this Agreement is, or becomes, unenforceable, invalid or illegal for any reason, that term will be deemed to be
modified to the extent necessary to remedy such unenforceability, invalidity or illegality. If this is not possible then that provision will be severed from this Agreement, without affecting the enforceability, validity or legality of any other term
of this Agreement. 

  

	26.11	Governing law: This Agreement is governed by the laws of New Zealand. The parties submit to the non- exclusive jurisdiction of the Courts of New Zealand.

  

	26.12	Interpretation: When interpreting this Agreement: 

  

	 	(a)	any reference to a party includes that party’s successors in title and permitted assigns (and, where the context permits, its personnel, contractors, agents and
representatives); 

  

	 	(b)	a gender includes each other gender; 

  

	 	(c)	the singular includes the plural and vice versa; 

  

	 	(d)	any agreement not to do something constitutes an agreement not to suffer, permit or cause that thing to be done; 

 

	 	(e)	any reference to a consent requires the prior written consent of the person required to give that consent; 

 

	 	(f)	a reference to any legislation, policy or standard includes a modification of that legislation, policy or standard or, in the case of legislation, legislation enacted
in substitution for that legislation and any regulation or other instrument issued or made under that legislation; 

  

	 	(g)	reference to a clause is to a clause of this Agreement, and any heading to a clause is included for ease of reference only and not to have any effect on interpretation;

  

	 	(h)	the words include and including are deemed to be followed by the words “without limitation”; 

 

	 	(i)	reference to a person includes an individual, partnership, body corporate, association, trust, governmental or local authority, or any other entity, whether corporate
or unincorporated; 

  

	 	(j)	where a word is defined, its other grammatical forms have a corresponding meaning; 

 

	 	(k)	all currency references are to New Zealand dollars and all amounts payable are payable in New Zealand dollars; and 

  
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	Chorus UFB Services Agreement	  	
		  	General Terms

  

	 	(l)	a reference to any day that is not a Business Day will be deemed to be a reference to the next Business Day. 

 

	27.	DEMERGER OF TELECOM 

  

	27.1	Notwithstanding anything in this Agreement: 

  

	 	(a)	should this Agreement be entered into before Separation Date: 

  

	 	(i)	Telecom New Zealand Limited may assign and transfer its rights and obligations as the LFC under this Agreement to Chorus2 on Separation Date and the consent of the
Service Provider is not required to such assignment and transfer; and 

  

	 	(ii)	the LFC may terminate this Agreement on one month’s notice at any time after 1 July 2012 if the Separation Date does not occur by that date;

  

	 	(b)	after Separation Date, this Agreement will be terminated by the LFC on 12 months’ notice should the Network Infrastructure Project Agreement (entered between
Telecom Corporation of New Zealand Limited and Crown Fibre Holdings Limited and dated 24 May 2011) come to an end for any reason. 

  

	27.2	If the LFC terminates this Agreement under this clause 27: 

  

	 	(a)	any Service Order with a Minimum Service Term that has not yet expired will continue until the expiry of that Minimum Service Term (subject to the Service
Provider’s continued payment of the Charges); 

  

	 	(b)	the LFC will, subject to clause 27.2(a), cease to fulfil, and terminate, all Service Orders and disconnect the Service Provider from the LFC Network at each
Interconnection Point, so that the Service Provider is no longer able to receive the Wholesale Services; 

  

	 	(c)	the Service Provider will promptly remove the Service Provider’s equipment from each Interconnection Point and any other location within the possession or control
of the LFC; and 

  

	 	(d)	each party will immediately return to the other party any information or other item that is in its possession and that belongs to the other party.

  

	27.3	For the purposes of this clause 27: 

 Chorus2 means the New Zealand company that is established out of Structural Separation, and that undertakes the business of the supply of fixed access and aggregation services in New Zealand, as
the owner and/or operator of a telecommunications network; 
 Final Court Orders means the final orders of the High Court
of New Zealand in respect of Structural Separation made under section 236(1) of the Companies Act 1993; 
 Separation Date
means the date upon which Structural Separation occurs in accordance with the Final Court Orders; 
 Structural Separation
means the Court approved arrangement to effect the demerger and structural separation of the Chorus2 group from Telecom Corporation of New Zealand Limited. 

  
 33

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