Document:

exv4w14

Exhibit 4.14

James Hardie -

Performing Subsidiary

Undertaking and

Guarantee Trust Deed

Dated 19 December 2006

James Hardie 117 Pty Limited (formerly known as LGTDD Pty Limited) (“Performing Subsidiary”)

AET Structured Finance Services Pty Limited (“Undertaking and Guarantee Trustee”)

Mallesons Stephen Jaques

Level 60

Governor Phillip Tower

1 Farrer Place

Sydney NSW 2000

Australia

T +61 2 9296 2000

F +61 2 9296 3999

DX 113 Sydney

www.mallesons.com

Ref: GNH:YC:MJC

 

 

James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Contents

	 	 	 	 	 	 	 

	Details	 	 	1	 
	General terms	 	 	4	 
	 
	 
	Part 1 Preliminary	 	 	4	 
	 
	1

	 	Interpretation
	 	 	4	 
	 
	 	 	 	 	 	 
	1.1

	 	Definitions
	 	 	4	 
	1.2

	 	References to certain general terms
	 	 	12	 
	1.3

	 	Number
	 	 	13	 
	1.4

	 	Headings
	 	 	13	 
	1.5

	 	Undertaking and Guarantee Trustee’s limitation of liability
	 	 	13	 
	1.6

	 	Undertaking and Guarantee Trustee’s knowledge
	 	 	14	 
	1.7

	 	Reliance on notices
	 	 	15	 
	1.8

	 	Condition precedent
	 	 	15	 
	 
	2

	 	Consideration and benefit
	 	 	15	 
	 
	 	 	 	 	 	 
	2.1

	 	Deed and deed poll
	 	 	15	 
	2.2

	 	Benefit
	 	 	15	 
	2.3

	 	Consideration
	 	 	16	 
	2.4

	 	Ceasing to be a beneficiary
	 	 	16	 
	 
	3

	 	Inconsistency and advice
	 	 	17	 
	 
	4

	 	Termination
	 	 	17	 
	 
	Part 2 Trust and the Undertaking and Guarantee Trustee	 	 	18	 
	 
	5

	 	Trust
	 	 	18	 
	 
	 	 	 	 	 	 
	5.1

	 	Declaration of trust
	 	 	18	 
	5.2

	 	Duration of trust
	 	 	18	 
	5.3

	 	Trust name
	 	 	19	 
	 
	6

	 	Nature of Guarantee
	 	 	19	 
	 
	 	 	 	 	 	 
	6.1

	 	Several nature of the Guarantee
	 	 	19	 
	6.2

	 	Claims in Insolvency
	 	 	19	 
	6.3

	 	Demands prior to Insolvency
	 	 	19	 
	 
	7

	 	Undertaking and Guarantee Trustee
	 	 	19	 
	 
	 	 	 	 	 	 
	7.1

	 	Appointment
	 	 	19	 
	7.2

	 	Remuneration
	 	 	20	 
	7.3

	 	Power
	 	 	20	 
	7.4

	 	Specific responsibilities
	 	 	20	 
	7.5

	 	No other duties
	 	 	22	 
	7.6

	 	Delegation
	 	 	23	 
	7.7

	 	Indemnity
	 	 	23	 
	7.8

	 	Payment by Beneficiaries
	 	 	24	 

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10

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12 December 2006
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	7.9

	 	Adjustments amongst Beneficiaries
	 	 	25	 
	 
	8

	 	Change of Undertaking and Guarantee Trustee
	 	 	25	 
	 
	 	 	 	 	 	 
	8.1

	 	Retirement
	 	 	25	 
	8.2

	 	Removal
	 	 	25	 
	8.3

	 	Permitted successors
	 	 	26	 
	8.4

	 	When retirement or removal takes effect
	 	 	26	 
	8.5

	 	Discharge of further obligations
	 	 	26	 
	8.6

	 	Turnover
	 	 	26	 
	 
	9

	 	Register
	 	 	27	 
	 
	 	 	 	 	 	 
	9.1

	 	Establishment and maintenance of Register
	 	 	27	 
	9.2

	 	Information required in Register
	 	 	27	 
	9.3

	 	No trust
	 	 	27	 
	9.4

	 	Register conclusive
	 	 	27	 
	9.5

	 	Update and correction of Register
	 	 	28	 
	9.6

	 	Inspection of Register
	 	 	28	 
	 
	Part 3 Undertaking	 	 	29	 
	 
	10

	 	Undertaking
	 	 	29	 
	 
	11

	 	Guarantee and indemnity
	 	 	29	 
	 
	 	 	 	 	 	 
	11.1

	 	Guarantee
	 	 	29	 
	11.2

	 	Indemnity
	 	 	29	 
	 
	12

	 	Interest
	 	 	30	 
	 
	 	 	 	 	 	 
	12.1

	 	Obligation to pay interest
	 	 	30	 
	12.2

	 	Compounding
	 	 	31	 
	12.3

	 	Interest following judgment
	 	 	31	 
	 
	13

	 	Extent of guarantee and indemnity
	 	 	31	 
	 
	14

	 	Rights of the Beneficiary are protected
	 	 	32	 
	 
	15

	 	Performing Subsidiary’s rights
	 	 	33	 
	 
	 	 	 	 	 	 
	15.1

	 	Performing Subsidiary’s rights are suspended
	 	 	33	 
	15.2

	 	Performing Subsidiary’s right of proof limited
	 	 	33	 
	 
	16

	 	Power of Attorney
	 	 	34	 
	 
	 	 	 	 	 	 
	16.1

	 	Appointment
	 	 	34	 
	16.2

	 	Powers
	 	 	34	 
	16.3

	 	Application of insolvency dividends
	 	 	34	 
	 
	Part 4 Voting in Insolvency and Distribution of Recovered Money	 	 	35	 
	 
	17

	 	Voting in Insolvency proceedings
	 	 	35	 
	 
	 	 	 	 	 	 
	17.1

	 	Obtaining instructions
	 	 	35	 
	17.2

	 	Voting
	 	 	35	 
	 
	18

	 	Distribution of Recovered Money
	 	 	36	 
	 
	 	 	 	 	 	 
	18.1

	 	How the Undertaking and Guarantee Trustee is to distribute
	 	 	36	 

	 	 	 	 	 

	 
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	18.2

	 	Manner of distribution
	 	 	37	 
	18.3

	 	Receipt by Beneficiary not through Undertaking and Guarantee Trustee
	 	 	37	 
	18.4

	 	Accounting to Undertaking and Guarantee Trustee
	 	 	37	 
	18.5

	 	Refund to Beneficiary
	 	 	38	 
	18.6

	 	Deemed Payment
	 	 	38	 
	 
	Part 5 General provisions	 	 	39	 
	 
	19

	 	Payments
	 	 	39	 
	 
	 	 	 	 	 	 
	19.1

	 	Manner of payment by the Performing Subsidiary
	 	 	39	 
	19.2

	 	Direction to pay
	 	 	39	 
	19.3

	 	Currency of payment
	 	 	39	 
	 
	20

	 	Application of payments
	 	 	40	 
	 
	 	 	 	 	 	 
	20.1

	 	Application of money
	 	 	40	 
	20.2

	 	Order of payment
	 	 	40	 
	20.3

	 	Suspense account
	 	 	40	 
	20.4

	 	Remaining money
	 	 	40	 
	20.5

	 	Credit from date of receipt
	 	 	40	 
	 
	21

	 	Withholding tax
	 	 	40	 
	 
	 	 	 	 	 	 
	21.1

	 	Payments by the Performing Subsidiary
	 	 	40	 
	21.2

	 	Tax credit
	 	 	41	 
	 
	22

	 	Indirect Taxes
	 	 	41	 
	 
	23

	 	Costs
	 	 	42	 
	 
	 	 	 	 	 	 
	23.1

	 	What the Performing Subsidiary agrees to pay
	 	 	42	 
	23.2

	 	Currency conversion on judgment debt
	 	 	42	 
	 
	24

	 	Reinstatement of rights
	 	 	43	 
	 
	25

	 	No merger
	 	 	43	 
	 
	26

	 	Dealings
	 	 	43	 
	 
	 	 	 	 	 	 
	26.1

	 	Dealings by the Performing Subsidiary with the Compensation Debt
	 	 	43	 
	26.2

	 	Dealings by the Performing Subsidiary
	 	 	44	 
	26.3

	 	Dealings by Beneficiaries
	 	 	44	 
	 
	27

	 	Notices
	 	 	44	 
	 
	 	 	 	 	 	 
	27.1

	 	Form
	 	 	44	 
	27.2

	 	Demand under Guarantee
	 	 	44	 
	27.3

	 	Delivery
	 	 	45	 
	27.4

	 	When effective
	 	 	45	 
	27.5

	 	Receipt — postal
	 	 	45	 
	27.6

	 	Receipt — fax
	 	 	45	 
	 
	28

	 	General
	 	 	45	 
	 
	 	 	 	 	 	 
	28.1

	 	Consents
	 	 	45	 
	28.2

	 	Prompt performance
	 	 	45	 

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

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12 December 2006
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	28.3

	 	Certificates
	 	 	45	 
	28.4

	 	Set-off
	 	 	46	 
	28.5

	 	Discretion in exercising rights
	 	 	46	 
	28.6

	 	Partial exercising of rights
	 	 	46	 
	28.7

	 	Indemnities
	 	 	46	 
	28.8

	 	Inconsistent law
	 	 	46	 
	28.9

	 	Supervening legislation
	 	 	46	 
	28.10

	 	Remedies cumulative
	 	 	46	 
	28.11

	 	Time of the essence
	 	 	46	 
	28.12

	 	Variation and waiver
	 	 	47	 
	28.13

	 	Confidentiality
	 	 	47	 
	28.14

	 	Further steps
	 	 	47	 
	28.15

	 	Counterparts
	 	 	48	 
	28.16

	 	Governing law
	 	 	48	 
	28.17

	 	Serving documents
	 	 	48	 
	Schedule 1(A) — Form of Beneficiary Nomination Letter (clause 2)	 	 	49	 
	Schedule 1(B) — Form of Beneficiary Change Notification (clause 9.1(b))	 	 	51	 
	Signing page	 	 	52	 

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10

	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Details

Interpretation — definitions are in clause 1.

	 	 	 	 	 

	 
	Parties	 	Performing Subsidiary and Undertaking and Guarantee Trustee
	 
	Performing 

Subsidiary

	 	Name
	 	James Hardie 117 Pty Limited (formerly
known as LGTDD Pty Limited)
	 
	 	 	 	 
	 

	 	Incorporated in
	 	Commonwealth of Australia
	 
	 	 	 	 
	 

	 	ABN
	 	30 116 110 948
	 
	 	 	 	 
	 

	 	Address
	 	Level 3

32 Pitt Street 

Sydney NSW 2000

Australia
	 
	 	 	 	 
	 

	 	Fax
	 	+ 612 8274 5218
	 
	 	 	 	 
	 

	 	Attention
	 	Managing Director and Company Secretary
	 
	Undertaking
and Guarantee
Trustee

	 	Name
	 	AET Structured Finance Services Pty
Limited
	 
	 	 	 	 
	 

	 	ABN
	 	12 106 424 088
	 
	 	 	 	 
	 

	 	Address
	 	80 Alfred Street

Milsons Point NSW 2061
	 
	 	 	 	 
	 

	 	Fax
	 	02 9028 5942
	 
	 	 	 	 
	 

	 	Attention
	 	Corporate Trust
	 
	In favour of	 	Each Beneficiary as defined in this deed.
	 
	Recitals	 	A   JHIL was listed on the Australian Stock Exchange in 1951 and,
by that time, the business then carried on by JHIL and its subsidiaries had
been carried on in Australia, in one form or another and under the “James
Hardie” name, for at least 60 years.

	 
	 	 	 	 
	 	 	B   Under plans of reorganisation and capital restructuring
executed between 1998 and 2001, JHIL sold on arm’s length terms
substantially all of its business, operations and undertaking to JHINV and
its subsidiaries with the result that JHINV became the ultimate holding
company of the businesses formerly carried on or controlled by JHIL.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10

	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	1

 

 

	 	 	 	 	 

	 	 	C   JHINV is a company organised under the laws of the
Netherlands and is listed on both the Australian Stock Exchange and the New
York Stock Exchange (with the listing on the latter exchange via American
Depository Receipts or equivalent or replacement securities). At the date
of this deed, the James Hardie Group carries on the business of
manufacturing building products in the United States of America, Australia,
New Zealand and the Philippines.

	 
	 	 	 	 
	 	 	D   On 21 December 2004, JHINV and others entered into the Heads
of Agreement containing, among other things, a set of agreed principles on
which the Performing Subsidiary will provide, and JHINV will guarantee the
payment of, funding to the Charitable Fund on a long term basis of
compensation for personal injury and death claims made in Australia against
JHIL or certain former subsidiaries of JHIL arising from exposure to
asbestos in Australia.

	 
	 	 	 	 
	 	 	E   The Heads of Agreement also provided that the payment
obligations of the Performing Subsidiary to the Charitable Fund are to be
subordinated to the obligations of the Performing Subsidiary to certain
lenders to it.

	 
	 	 	 	 
	 	 	F   The principles contained in the Heads of Agreement have been
developed and set out in a legally binding and enforceable agreement known
as the Original Final Funding Agreement.

	 
	 	 	 	 
	 	 	G   On 8 June 2006 the Fund Trustee executed a Deed of Accession
so as to become a party to the Original Final Funding Agreement.

	 
	 	 	 	 
	 	 	H   On 21 November 2006 the parties to the Original Final Funding
Agreement (including the Fund Trustee) entered into the Final Funding
Agreement, thereby amending and restating the Original Final Funding
Agreement.

	 
	 	 	 	 
	 	 	I   On or about 14 December 2006 Asbestos Injuries Compensation
Fund Limited entered into the Trust Deed and on or about 14 December 2006
in its capacity as trustee of the Discretionary Fund became a party to the
Final Funding Agreement by executing a Deed of Accession.

	 
	 	 	 	 
	 	 	J   The creditor of the Performing Subsidiary under the Final
Funding Agreement is the Fund Trustee.

	 
	 	 	 	 
	 	 	K   The
Performing Subsidiary wishes to provide separate guarantees under this deed to the providers from time to time of financial
accommodation to the Controlled Entities of the Performing Subsidiary.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10

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12 December 2006
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	 	 	L   The Intercreditor Deed sets out certain arrangements in
relation to, among other things, the rights of the Fund Trustee and the NSW
Government in connection with the Compensation Debt and the rights of the
Undertaking and Guarantee Trustee and the Beneficiaries in connection with
this deed which have been agreed between the parties to the Intercreditor
Deed.

	 
	Date of deed

	 	See Signing page

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10

	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

General terms

Part 1 Preliminary

	1	 	Interpretation
	 
	1.1	 	Definitions
	 
	 	 	These meanings apply unless the contrary intention appears:
	 
	 	 	A$, AUD or Australian Dollars means the lawful currency of Australia.
	 
	 	 	Audited Financial Statements has the meaning given to that term in the Intercreditor Deed.
	 
	 	 	Authorised Officer means:

	 	(a)	 	in the case of the Undertaking and Guarantee Trustee or a Beneficiary, a
director or secretary, or an officer whose title contains the word “director”,
“chief”, “head”, “president”, “vice-president”, “executive” or “manager” or a person
performing the functions of any of them, or any other person nominated by the
Undertaking and Guarantee Trustee or the Beneficiary, as the case may be, as an
Authorised Officer for the purposes of this deed;
	 
	 	(b)	 	in the case of the Performing Subsidiary, a person appointed by the
Performing Subsidiary and notified to the Undertaking and Guarantee Trustee as an
Authorised Officer for the purposes of this deed, and whose specimen signature is
provided with such notification to the Undertaking and Guarantee Trustee.

	 	 	Beneficiary means each person nominated as a “Beneficiary” in a Beneficiary Nomination
Letter (including, in the case of any group of creditors, an agent or trustee acting on
their behalf) and includes their successors and assigns, but excludes any person who has
ceased to be a Beneficiary in accordance with clause 2.4 (“Ceasing to be a Beneficiary”).
	 
	 	 	Beneficiary Change Form means a form sent to the Undertaking and Guarantee Trustee in
accordance with clause 9.1(b).
	 
	 	 	Beneficiary Nomination Letter means a letter substantially in the form set out in schedule
1(A) (“Beneficiary Nomination Letter”), signed by the Performing Subsidiary, accepted by
the relevant Beneficiary and confirmed by the Undertaking and Guarantee Trustee.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

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	 	 	Business Day means a weekday (not being a public holiday) on which:

	 	(a)	 	for the purposes of making or receiving any payments in US Dollars, banks
are open for general banking business in London, New York and Sydney;
	 
	 	(b)	 	for the purpose of making or receiving any payments in another currency,
banks are open for general banking business in such place or places specified in the
relevant Finance Document; and
	 
	 	(c)	 	for all other purposes, banks are open for general banking business in
Amsterdam, Sydney and any other place or places specified in the relevant Finance
Document.

	 	 	Charitable Fund has the meaning given to that term in the Final Funding Agreement.
	 
	 	 	Compensation Debt has the meaning given to the term “Compensation Debt (Performing
Subsidiary)” in the Intercreditor Deed.
	 
	 	 	Controlled Entity means in respect of a Person, another Person in respect of which the
first-mentioned Person is required to consolidate in its Audited Financial Statements but,
in the case of the Performing Subsidiary, does not include any Liable Entity (as defined
in the Final Funding Agreement) or the Fund Trustee. For the avoidance of doubt, the
Performing Subsidiary is not a Controlled Entity of the Performing Subsidiary Group.
	 
	 	 	Costs means costs, fees, disbursements, charges and expenses, including, without
limitation, where the Performing Subsidiary is liable to pay or reimburse the Costs, those
incurred in connection with advisers and, unless such Costs are incurred in connection
with:

	 	(a)	 	consideration of any action or claim (whether or not as part of, or
preparatory to, any enforcement action) relating to a Finance Document, the
Performing Subsidiary or the Guaranteed Money;
	 
	 	(b)	 	any costs or expenses relating to any advice described in clause 3(c);
	 
	 	(c)	 	the costs relating to any court application by the Undertaking and
Guarantee Trustee under clause 5.2; or
	 
	 	(d)	 	the costs of an Independent Expert appointed under clause 8.3 of the
Intercreditor Deed,

	 	 	only for an amount and on a basis previously agreed to in writing by the Performing
Subsidiary.
	 
	 	 	Debtor means, in respect of a Beneficiary at a particular time, the person or persons
primarily liable to the Beneficiary at that time under the Finance Documents.
	 
	 	 	Deed of Accession has the meaning given to that term in the Final Funding Agreement.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

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12 December 2006
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	 	 	Default Rate means LIBOR plus 2% per annum. For the purpose of this definition, the
interest is calculated as if the overdue amount is a cash advance with interest periods
beginning and ending on the first and last days respectively of each calendar month (and
including both days), provided that the first interest period begins on and includes the
due date.
	 
	 	 	Details means the section of this deed headed “Details”.
	 
	 	 	Discretionary Fund has the meaning given to that term in the Final Funding Agreement.
	 
	 	 	Excluded Lender has the meaning given to that term in the Intercreditor Deed.
	 
	 	 	Excluded Tax means:

	 	(a)	 	a Tax imposed by any jurisdiction on or assessed against a Beneficiary as a
consequence of the Beneficiary being a resident of or organised in or doing business
in that jurisdiction, but not any Tax:

	 	(i)	 	that is calculated on or by reference to the gross amount
of a payment derived under this deed or another document referred to in this
deed (without the allowance of a deduction);
	 
	 	(ii)	 	that is imposed as a result of the Beneficiary being
considered a resident or organised or doing business in that jurisdiction
solely as a result of it being a party to this deed or a transaction
contemplated by this deed; or

	 	(b)	 	a Tax which would not be required to be deducted by the Performing
Subsidiary if, before the Performing Subsidiary makes a relevant payment, a relevant
Beneficiary provided the Performing Subsidiary with any of its name, address,
registration number or similar details or any relevant tax exemption or similar
details.

	 	 	Final Funding Agreement means the deed dated 21 November 2006 between the NSW Government,
JHINV, the Performing Subsidiary and the Fund Trustee which amended and restated the
Original Final Funding Agreement.
	 
	 	 	Finance Documents means, in relation to a Beneficiary, each agreement:

	 	(a)	 	to which the Performing Subsidiary and the Beneficiary (together with any
other person) are a party or under which that Beneficiary has benefits or
obligations; and
	 
	 	(b)	 	which is nominated as a “Finance Document” in a Beneficiary Nomination
Letter.

	 	 	Finance Money Debt has the meaning given to the term “Finance Money Debt (Performing
Subsidiary)” in the Intercreditor Deed.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

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	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
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	 	 	Fund Trustee means Asbestos Injuries Compensation Fund Limited in its capacity as trustee
of the Charitable Fund.
	 
	 	 	Government Agency means any government or any governmental, semi-governmental,
administrative, fiscal or judicial body, department, commission, authority, tribunal,
agency or entity having jurisdiction over, or in relation to the affairs of, a Performing
Subsidiary Group Member.
	 
	 	 	Guarantee means the guarantees and indemnities given by the Performing Subsidiary under
clause 11 (“Guarantee and indemnity”).
	 
	 	 	Guaranteed Money means all amounts that:

	 	(a)	 	at any time;
	 
	 	(b)	 	for any reason or circumstance in connection with any agreement,
transaction, instrument (whether or not negotiable), document, event, act, omission,
matter or thing whatsoever;
	 
	 	(c)	 	whether at law or otherwise; and
	 
	 	(d)	 	whether or not of a type within the contemplation of the Performing
Subsidiary or any other person at the date of this deed,

	 	 	are payable, are owing but not currently payable, are contingently owing, or remain
unpaid, by a Debtor to a Beneficiary under or in connection with the Finance Documents.
	 
	 	 	This definition applies:

	 	(i)	 	irrespective of the capacity in which the Debtor or the
Beneficiary became entitled to the amount concerned;
	 
	 	(ii)	 	irrespective of the capacity in which the Debtor or the
Beneficiary became liable in respect of the amount concerned;
	 
	 	(iii)	 	whether the Debtor or the Beneficiary is liable as
principal debtor, as surety or otherwise;
	 
	 	(iv)	 	whether the Debtor is liable alone, or together with
another person;
	 
	 	(v)	 	even if the Debtor owes an amount or obligation to the
Beneficiary because it was assigned to the Beneficiary, whether or not:

	 	(A)	 	the assignment was before, at the same
time as, or after the date of this deed; or
	 
	 	(B)	 	the Debtor consented to or was aware of
the assignment; or
	 
	 	(C)	 	the assigned obligation was secured;

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

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12 December 2006
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	 	(vi)	 	even if this deed was assigned to the Beneficiary,
whether or not:

	 	(A)	 	the Debtor or the Performing Subsidiary
consented to or was aware of the assignment; or
	 
	 	(B)	 	any of the Guaranteed Money was
previously unsecured; or

	 	(vii)	 	if the Performing Subsidiary is a trustee, whether or
not it has a right of indemnity from the trust fund.

	 	 	Heads of Agreement means the non-binding agreement entered into on 21 December 2004
between JHINV, the NSW Government, the Australian Council of Trade Unions, Unions New
South Wales and a representative of certain asbestos victims groups.
	 
	 	 	Independent Valuer means:

	 	(a)	 	any internationally recognised accountancy firm agreed to by the Performing
Subsidiary and the Undertaking and Guarantee Trustee in writing; or
	 
	 	(b)	 	if the Performing Subsidiary and the Undertaking and Guarantee Trustee
cannot agree on an internationally recognised accountancy firm, a person nominated by
the President of the Institute of Chartered Accountants in Australia.

	 	 	Indirect Tax means any goods and services tax, consumption tax, value added tax or any tax
of a similar nature.
	 
	 	 	Insolvency Event means, in respect of a person, the occurrence in respect of that person
of any event referred to in paragraphs (a) to (f) of the definition of “Insolvent” and,
for the avoidance of doubt, includes a Winding Up.
	 
	 	 	Insolvency Official means a custodian, receiver, receiver and manager, trustee,
liquidator, provisional liquidator, administrator or any other officer appointed in
connection with the Insolvency of the Performing Subsidiary.
	 
	 	 	A person is Insolvent if it:

	 	(a)	 	admits in writing its inability to pay its debts as they become due
(otherwise than as contemplated in clause 16.6 of the Final Funding Agreement);
	 
	 	(b)	 	makes an assignment for the benefit of its creditors generally;
	 
	 	(c)	 	consents to the appointment of a custodian (not being a nominee for the
person), receiver, receiver and manager, trustee or other officer with similar powers
with respect to it or with respect to a substantial part of its property;

	 	 	 	 	 

	 
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	 	(d)	 	consents to the appointment of an insolvency administrator or such an
insolvency administrator is appointed and that appointment is not terminated within
28 days;
	 
	 	(e)	 	is adjudicated as insolvent or to be liquidated, in each case, by a court
of competent jurisdiction;
	 
	 	(f)	 	is subject to Winding Up,

	 	 	and Insolvency has a corresponding meaning.
	 
	 	 	Intercreditor Deed means the deed entitled “Performing Subsidiary Intercreditor Deed”
between the NSW Government, Asbestos Injuries Compensation Fund Limited (in its capacity
as trustee of the Charitable Fund), the Performing Subsidiary and the Undertaking and
Guarantee Trustee dated on or about the date of this deed.
	 
	 	 	James Hardie Group means JHINV and its Subsidiaries and James Hardie Group Member means
any of them.
	 
	 	 	JHIL means ABN 60 Pty Limited (ABN 60 000 009 263) (formerly known as James Hardie
Industries Limited).
	 
	 	 	JHINV means James Hardie Industries N.V. (ABN 49 097 829 895).
	 
	 	 	LIBOR means, in relation to any overdue amount:

	 	(a)	 	the applicable British Bankers’ Association Interest Settlement Rate for
the currency in which the overdue amount is payable (“Due Currency”) and the relevant
period displayed on the appropriate page of the Reuters screen (but if the agreed
page is replaced or service ceases to be available, the Beneficiary to whom the
overdue amount is owed may specify another page or service displaying the appropriate
rate after consultation with the Performing Subsidiary) (“Screen Rate”); or
	 
	 	(b)	 	(if no Screen Rate is available for the Due Currency and the interest
period of that overdue amount) the arithmetic mean of the rates (rounded upwards to
four decimal places) as supplied to the Beneficiary to whom the overdue amount is
owed at its request quoted by the principal London offices of at least three leading
international banks chosen by the Beneficiary in consultation with the Performing
Subsidiary to other leading international banks in the London interbank market,

	 	 	as of 11.00 am (London time) on the day two Business Days before the first day of an
interest period for which the interest rate is to be determined for the offering of
deposits in the Due Currency and for a period comparable to the interest period for the
overdue amount.
	 
	 	 	Liquidation means, in respect of any person, the liquidation of all or substantially all
of its assets (other than, in the case of the Performing Subsidiary, where the acquirer of
all or substantially all of such assets has by

	 	 	 	 	 

	 
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	 	 	deed of accession become bound to observe all the obligations of the Performing Subsidiary
under this deed and the other Related Agreements to which the Performing Subsidiary is a
party) with the intention of distributing the proceeds to creditors or security holders,
or a final order directing or requiring such liquidation is made or entered or deemed to
have been made or entered by any court of competent jurisdiction.

	 	 	Notice of Voting in Insolvency means a written notice from an Insolvency Official of any
matter or matters in connection with the Insolvency (including, without limitation, the
Winding Up) of the Performing Subsidiary and requiring or inviting the casting of votes by
creditors of the Performing Subsidiary in relation to such matter or matters.
	 
	 	 	NSW Government means the State of New South Wales.
	 
	 	 	Original Final Funding Agreement means the legally binding agreement so entitled and
entered into on 1 December 2005 between the JHINV, the Performing Subsidiary and the NSW
Government giving effect to the arrangements contemplated by the Heads of Agreement.
	 
	 	 	Performing Subsidiary means the person so described in the Details.
	 
	 	 	Performing Subsidiary Group means the Performing Subsidiary and its Controlled Entities
and Performing Subsidiary Group Member means any of them.
	 
	 	 	Person includes any general partnership, limited partnership, corporation, limited
liability company, joint venture, trust, business trust, governmental agency,
co-operative, association, individual or other entity, and the heirs, executors,
administrators, legal representatives, successors and assigns of such a Person as the
context may require.
	 
	 	 	Proceeds has the meaning given to that term in the Intercreditor Deed.
	 
	 	 	Proportion means, in respect of a Beneficiary at any time, the Beneficiary’s proportion of
the Finance Money Debt (including all Proceeds) divided by the total of all Finance Money
Debt at that time, expressed as a percentage.
	 
	 	 	Recovered Money means all amounts paid to or recovered by the Undertaking and Guarantee
Trustee in respect of the Finance Money Debt during an Insolvency of the Performing
Subsidiary which has not yet been distributed under clause 18 (“Distribution of Recovered
Money”).
	 
	 	 	Register means the register to be established and maintained by the Undertaking and
Guarantee Trustee under clause 9 (“Register”).
	 
	 	 	Related Agreement has the meaning given to that term in the Final Funding Agreement.
	 
	 	 	Related Entity has the meaning it has in the Corporations Act.
	 
	 	 	Relevant Documents means:

	 	(a)	 	the Final Funding Agreement;

	 	 	 	 	 

	 
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	 	(b)	 	any Related Agreement; and
	 
	 	(c)	 	any Finance Document.

	 	 	Security Interest means any mortgage, pledge, lien or charge or any security or
preferential interest or arrangement of any kind or any other right of, or arrangement
with, any creditor to have its claims satisfied in priority to other creditors with, or
from the proceeds of, any asset. This definition:

	 	(a)	 	includes any retention of title agreements arising other than in the
ordinary course of business; and
	 
	 	(b)	 	excludes any right of set-off, right to combine accounts, or other similar
right or arrangement arising in the ordinary course of business or by operation of
law.

	 	 	Security Provider means a person (other than the Performing Subsidiary) who at any time is
liable by guarantee, indemnity or otherwise alone or jointly, or jointly and individually,
to pay or indemnify against non-payment of the Finance Money Debt.
	 
	 	 	Subsidiary in relation to a corporation means a subsidiary of the corporation for the
purposes of the Corporations Act.
	 
	 	 	Tax means any present or future tax (including Indirect Taxes), levy, impost, duty,
charge, fee, deduction, compulsory loan or withholding or any income, stamp or transaction
duty, tax or charge, in the nature of tax whatsoever called (except if imposed on, or
calculated having regard to, the net income of a Beneficiary) and whether imposed, levied,
collected, withheld or assessed by any Government Agency and includes, but is not limited
to, any penalty, fine, charge, fee, interest or other amount payable in connection with
failure to pay or delay in paying the same.
	 
	 	 	Trust means the Performing Subsidiary Undertaking and Guarantee Trust established by
clause 5.1(a) (“Declaration of Trust”) of this deed.
	 
	 	 	Trust Deed has the meaning given to that term in the Final Funding Agreement.
	 
	 	 	Undertaking means the undertaking given by the Performing Subsidiary under clause 10(a)
(“Undertaking”).
	 
	 	 	Undertaking and Guarantee Trustee means the person so described in the Details.
	 
	 	 	US$, USD or US Dollars means the lawful currency of the United States of America.
	 
	 	 	Winding Up means, in respect of a person, the occurrence of any one or more of the
following events in relation to that person:

	 	(a)	 	a final court order is entered that it be wound up or declared bankrupt;

	 	 	 	 	 

	 
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	 	(b)	 	a liquidator (excluding a provisional liquidator) is appointed to it and
the appointment is not subsequently terminated;
	 
	 	(c)	 	a court declaration of bankruptcy is made in relation to it and is not
subsequently withdrawn, struck out or dismissed, vacated or reversed;
	 
	 	(d)	 	the Liquidation of that person; and
	 
	 	(e)	 	any comparable action occurs under the law of any competent jurisdiction
which has a substantially similar effect to any of the above paragraphs (a) to (g) of
this definition,

	 	 	and an order shall be deemed to be final when timely-commenced proceedings for review of
such an order has been concluded without such order being subsequently dismissed,
withdrawn, struck out, vacated or reversed, and the time for commencing any further
proceeding for review of such order has expired.
	 
	1.2	 	References to certain general terms 
	 
	 	 	Unless the contrary intention appears, a reference in this deed to:

	 	(a)	 	a group of persons is a reference to any two or more of them collectively
and to each of them individually;
	 
	 	(b)	 	an agreement, representation or warranty in favour of two or more persons
is for the benefit of them collectively and each of them individually;
	 
	 	(c)	 	an agreement, representation or warranty by two or more persons binds them
collectively and each of them individually but an agreement, representation or
warranty by a Beneficiary binds the Beneficiary only;
	 
	 	(d)	 	anything (including an amount) is a reference to the whole and each part of
it (but nothing in this clause 1.2(d) implies that performance of part of an
obligation constitutes performance of the obligation);
	 
	 	(e)	 	a document (including this deed) includes any variation or replacement of
it;
	 
	 	(f)	 	law includes (without limitation) common law, principles of equity, and
laws made by any legislative body of any jurisdiction (and references to any statute,
regulation or by-law include any modification or re-enactment of or any provision
substituted for, and all statutory and subordinate instruments issued under such
statute, regulation or by-law or such provision);
	 
	 	(g)	 	the word “person” includes an individual, a firm, a body corporate, a
partnership, a joint venture, an unincorporated association and any Government
Agency;

	 	 	 	 	 

	 
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	 	(h)	 	a particular person includes a reference to the person’s executors,
administrators, successors, substitutes (including persons taking by novation) and
assigns;
	 
	 	(i)	 	the words “including”, “for example” or “such as” when introducing an
example, do not limit the meaning of the words to which the example relates to that
example or examples of a similar kind; and
	 
	 	(j)	 	the Corporations Act is a reference to the Corporations Act 2001 of
Australia.

	1.3	 	Number
	 
	 	 	The singular includes the plural and vice versa.       
	 
	1.4	 	Headings
	 
	 	 	Headings (including those in brackets at the beginning of paragraphs) are for
convenience only and do not affect the interpretation of this deed.
	 
	1.5	 	Undertaking and Guarantee Trustee’s limitation of liability

	 	(a)	 	A liability arising under or in connection with this deed is limited to and can
be enforced against the Undertaking and Guarantee Trustee only to the extent to which
it can be satisfied out of any property held by the Undertaking and Guarantee Trustee
out of which the Undertaking and Guarantee Trustee is actually indemnified for the
liability. This limitation of the Undertaking and Guarantee Trustee’s liability
applies despite any other provision of this deed and extends to all liabilities and
obligations of the Undertaking and Guarantee Trustee in any way connected with any
representation, warranty, conduct, omission, agreement or transaction related to this
deed.
	 
	 	(b)	 	The parties (other than the Undertaking and Guarantee Trustee) may not sue
the Undertaking and Guarantee Trustee in any capacity other than as trustee of the
Trust, including seeking the appointment of a receiver (except in relation to property
of the Trust), a liquidator, an administrator or any other similar person to the
Undertaking and Guarantee Trustee or prove in any liquidation of or affecting the
Undertaking and Guarantee Trustee (except in relation to the property of the Trust).
	 
	 	(c)	 	The parties waive their rights and release the Undertaking and Guarantee
Trustee from any personal liability in respect of any loss or damage which any of them
may suffer as a consequence of a failure of the Undertaking and Guarantee Trustee to
perform its obligations under this deed, which cannot be paid or satisfied out of any
property of the Trust held by the Undertaking and Guarantee Trustee.
	 
	 	(d)	 	The provisions of this clause 1.5 will not apply to any obligation or
liability of the Undertaking and Guarantee Trustee to the extent to which such
obligation or liability:

	 	 	 	 	 

	 
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	 	(i)	 	arises as a result of the Undertaking and Guarantee
Trustee’s fraud, gross negligence or wilful misconduct; or
	 
	 	(ii)	 	cannot be satisfied out of any property held by the
Undertaking and Guarantee Trustee as a result of the Undertaking and
Guarantee Trustee’s fraud, gross negligence or wilful misconduct.

	 	(e)	 	No act or omission of the Undertaking and Guarantee Trustee (including any
related failure to satisfy its obligations or breach of representation or warranty
under this deed) will be considered fraud, gross negligence or wilful misconduct of
the Undertaking and Guarantee Trustee to the extent to which the act or omission was
caused or contributed to by any failure of any party (other than the Undertaking and
Guarantee Trustee) or any other person to fulfil its obligations relating to the Trust
or by any other act or omission of the parties (other than the Undertaking and
Guarantee Trustee) or any other person having obligations relating to the Undertaking
and Guarantee Trust.
	 
	 	(f)	 	Any fraud, gross negligence or wilful misconduct of an attorney, agent or
delegate appointed by the Undertaking and Guarantee Trustee in accordance with this
deed is not, and is not to be deemed to be, an act on behalf of the Undertaking and
Guarantee Trustee for the purposes of this deed and does not create rights or
obligations on any party to this deed nor expose the Undertaking and Guarantee Trustee
to any personal liability provided that:

	 	(i)	 	nothing in this clause 1.5(f) relieves the Undertaking
and Guarantee Trustee from any liability to the extent of any fraud, gross
negligence or wilful misconduct of the Undertaking and Guarantee Trustee in
the selection, appointment, oversight or supervision of any such attorney,
agent or delegate; and
	 
	 	(ii)	 	the Undertaking and Guarantee Trustee must, to the extent
permitted by law, take all reasonable steps to recover compensation for any
expenses, losses, liabilities, actions, proceedings or claims that are
incurred by the Undertaking and Guarantee Trustee (or would have been
incurred but for the operation of this clause 1.5(f)) as a direct or
indirect consequence of the fraud, gross negligence or wilful misconduct of
any attorney, agent or delegate appointed by the Undertaking and Guarantee
Trustee from any such attorney, agent or delegate..

	1.6	 	Undertaking and Guarantee Trustee’s knowledge
	 
	 	 	The Undertaking and Guarantee Trustee will only be considered to have knowledge or
awareness of, or notice of, any thing, or grounds to believe any thing, by virtue of the
officers of the Undertaking and Guarantee Trustee having day to day responsibility for the
administration of the Undertaking and Guarantee Trustee having actual knowledge, actual
awareness or actual

	 	 	 	 	 

	 
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	 	 	notice of that thing, or grounds or reason to believe that thing (and similar references
will be interpreted in this way).

	1.7	 	Reliance on notices
	 
	 	 	Where any notice is provided by any of the parties (other than the Undertaking and
Guarantee Trustee) to the Undertaking and Guarantee Trustee and the notice has been
executed by an Authorised Officer of that party then the Undertaking and Guarantee Trustee
may assume that the notice has been properly prepared and considered by that party and the
Undertaking and Guarantee Trustee is not required to investigate further.
	 
	1.8	 	Condition precedent
	 
	 	 	Notwithstanding any other provision of this deed, the provisions of, and the
obligations of the parties under, this deed are subject to, and do not commence until,
each of the conditions set out in clause 2.1 of the Final Funding Agreement have been
satisfied or waived in writing by the parties to the Final Funding Agreement.
	 
	2	 	Consideration and benefit
	 
	2.1	 	Deed and deed poll
	 
	 	 	This deed takes effect as both:

	 	(a)	 	a deed between the Performing Subsidiary and the Undertaking and Guarantee
Trustee; and
	 
	 	(b)	 	a deed poll by the Performing Subsidiary and the Undertaking and Guarantee
Trustee in favour of the Beneficiaries.

	2.2	 	Benefit

	 	(a)	 	Each Beneficiary has the benefit of, and is entitled to enforce, this deed in
accordance with its terms even though it is not a party to, or is not in existence at
the time of execution and delivery of, this deed.
	 
	 	(b)	 	Subject to the Intercreditor Deed and clause 2.2(c), the benefit and
obligations of this deed may be extended to any other person (and such person shall
become a Beneficiary) in relation to any other document (and such document shall
become a Finance Document) under which liabilities are owed to such person where such
liabilities are, or required to be, included in the James Hardie Group’s financial
statements or accompanying notes as debt or borrowings (including, without
limitation, bank loans, letter of credit facilities, derivatives and debt capital
markets issues which are, or are required to be so included or noted) of the
Performing Subsidiary (or a Performing Subsidiary Group Member, the performance of
whose obligations has been guaranteed by the Performing Subsidiary) by the Performing
Subsidiary signing and delivering to that person (or an agent or trustee acting on
behalf of that person) and Undertaking and Guarantee Trustee, a Beneficiary
Nomination Letter and the person

	 	 	 	 	 

	 
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	 	 	 	or an agent or trustee acting on behalf of that person countersigning such
Beneficiary Nomination Letter and delivering the countersigned Beneficiary
Nomination Letter to the Undertaking and Guarantee Trustee.

	 	(c)	 	An Excluded Lender cannot be a Beneficiary.

	2.3	 	Consideration
	 
	 	 	Each party acknowledges incurring obligations and giving rights under this deed for
valuable consideration received and to be received from, among others, each Beneficiary.
	 
	2.4	 	Ceasing to be a beneficiary

	 	(a)	 	The Performing Subsidiary may request that a Beneficiary sign a consent
confirming its cessation as a beneficiary of the Trust if, at the time of the
Performing Subsidiary’s request:

	 	(i)	 	there is no Guaranteed Money in respect of that
Beneficiary;
	 
	 	(ii)	 	the Performing Subsidiary has no outstanding obligations
to the Beneficiary under this deed; and
	 
	 	(iii)	 	that Beneficiary has no further obligation to provide
financial accommodation to the Debtor under the Finance Documents.

	 	(b)	 	A Beneficiary may at any time notify the Undertaking and Guarantee Trustee
in writing that the Beneficiary wishes to cease to be a beneficiary of the Trust.
Any such notice does not limit the Beneficiary’s rights against the Performing
Subsidiary other than its rights as a beneficiary of the Trust.
	 
	 	(c)	 	The relevant Beneficiary undertakes to do all things necessary to give
effect to the cessation of its being a beneficiary under clause 2.4(a) (if it is
satisfied, acting reasonably, that clauses 2.4(a)(i), 2.4(a)(ii) and 2.4(a)(iii) are
satisfied) or 2.4(b), including, without limitation, the execution of the consent
referred to in clause 2.4(a) and the surrender of its Beneficiary Nomination Letter.
	 
	 	(d)	 	A Beneficiary ceases to be a beneficiary of the Trust and thereupon ceases
to have the benefit of the Undertaking:

	 	(i)	 	under clause 2.4(a), on receipt by the Undertaking and
Guarantee Trustee of a signed consent;
	 
	 	(ii)	 	under clause 2.4(b), on receipt by the Undertaking and
Guarantee Trustee of notice from the Beneficiary.

	 	 	 	Upon receipt of the relevant signed consent or notice, the Undertaking and
Guarantee Trustee must remove the Beneficiary’s name from the Register.

	 	 	 	 	 

	 
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	3	 	Inconsistency and advice

	 	(a)	 	If any provision of the Final Funding Agreement, any Related Agreement
(excluding this deed, the Intercreditor Deed, or the Intercreditor Deed (Performing
Subsidiary)), or any other Finance Document is inconsistent with this deed, this deed
prevails to the extent of the inconsistency.
	 
	 	(b)	 	Each of the parties to this deed undertake to use all reasonable endeavours
to procure that the Relevant Documents which are not executed as at the date of this
deed are executed in a form that minimises the likelihood of any inconsistency.
	 
	 	(c)	 	In the event that the Undertaking and Guarantee Trustee may be required to
exercise any discretion, judgement or issue a notice or determine a matter relating to
this deed or any Relevant Document, the Undertaking and Guarantee Trustee will be
entitled to seek such legal, accounting, tax or other advice as is reasonable in all
the circumstances.

	4	 	Termination
	 
	 	 	Without prejudice to the provisions of clause 8.5, upon the Performing Subsidiary
delivering:

	 	(a)	 	to the Undertaking and Guarantee Trustee:

	 	(i)	 	a written notice stating that the Final Funding Agreement
and its Related Agreements have been terminated; and
	 
	 	(ii)	 	legal opinions from lawyers practising in New South Wales
and each other jurisdiction whose laws govern any such Related Agreement
which collectively confirm that the Final Funding Agreement and its Related
Agreements have ceased to be in full force and effect under their respective
governing laws,

	 	(b)	 	to each Beneficiary:

	 	(i)	 	an original signed counterpart of a replacement
guarantee; and
	 
	 	(ii)	 	legal opinions from lawyers practising in New South Wales
in respect of such replacement guarantee which confirm that such replacement
guarantee constitutes a valid, binding and enforceable obligation of the
Performing Subsidiary (subject to their customary assumptions and
qualifications),

	 	 	this deed is automatically terminated and, with respect to each Beneficiary, replaced by
such replacement guarantee.

	 	 	 	 	 

	 
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Part 2 Trust and the Undertaking and Guarantee Trustee

	5	 	Trust
	 
	5.1	 	Declaration of trust
	 
	 	 	The Undertaking and Guarantee Trustee:

	 	(a)	 	declares that it holds the benefit of the Undertaking and Guarantee, each
Relevant Document and any other document in connection with the Undertaking and
Guarantee or any Relevant Document which contains provisions in favour of, or for the
benefit of, the Undertaking and Guarantee Trustee or a Beneficiary (including,
without limitation, all representations, warranties and undertakings made in favour
of the Undertaking and Guarantee Trustee or any Beneficiary and any other rights,
claims or entitlements of the Undertaking and Guarantee Trustee or a Beneficiary
under the Undertaking and Guarantee or any Relevant Document) on separate trusts for
each relevant Beneficiary in accordance with, and on the terms of, this deed; and
	 
	 	(b)	 	agrees to comply with the provisions of this deed which purport to bind it
and to perform the duties and responsibilities of the Undertaking and Guarantee
Trustee specified in this deed.

	5.2	 	Duration of trust
	 
	 	 	Each trust created pursuant to clause 5.1 commences on the date of the relevant
Beneficiary Nomination Letter and terminates on the earlier of.

	 	(a)	 	the date the relevant Beneficiary ceases to be a beneficiary in accordance
with clause 2.4;
	 
	 	(b)	 	the date this deed is automatically terminated under clause 4;
	 
	 	(c)	 	the date on which the obligations of the Performing Subsidiary to pay the
Guaranteed Money pursuant to this deed are fully discharged in accordance with this
deed; and
	 
	 	(d)	 	the day before the eightieth anniversary of the date of this deed.

	 	 	The termination of a trust created pursuant to clause 5.1 in accordance with this clause
5.2 does not affect any other trust created pursuant to clause 5.1. Any such other trust
is preserved and continues in existence until terminated in accordance with this clause
5.2.
	 
	 	 	The Undertaking and Guarantee Trustee must use reasonable endeavours prior to the
eightieth anniversary (if applicable) of the date of this deed to resettle the property
then held on trust by the Undertaking and Guarantee Trustee in new trusts for the
Beneficiaries on identical terms to those contained in this deed.

	 	 	 	 	 

	 
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	 	 	In the event that the Undertaking and Guarantee Trustee is unable to resettle the property
of the Trust, then it will be entitled to seek directions from an appropriate court
regarding the settlement of new trusts for the Beneficiaries, as required under this
clause 5.2.
	 
	5.3	 	Trust name
	 
	 	 	The trusts established under clause 5.1(a) shall be collectively known as the
Performing Subsidiary Undertaking and Guarantee Trust.
	 
	6	 	Nature of Guarantee
	 
	6.1	 	Several nature of the Guarantee
	 
	 	 	The benefit of the Guarantee held by the Undertaking and Guarantee Trustee in
accordance with, and on the terms of, this deed is held by the Undertaking and Guarantee
Trustee on trust for the benefit of each Beneficiary severally with respect to the
Guaranteed Money owing to the relevant Beneficiary.
	 
	6.2	 	Claims in Insolvency
	 
	 	 	Each Beneficiary is severally a creditor of the Performing Subsidiary in relation
to the Guaranteed Money owing to the Beneficiary, but its rights under the Guarantee in an
Insolvency of the Performing Subsidiary are subject to the terms of this deed and are to
be exercised by the Undertaking and Guarantee Trustee on its behalf on the terms of this
deed.
	 
	6.3	 	Demands prior to Insolvency
	 
	 	 	Prior to an Insolvency of the Performing Subsidiary, and subject to the terms of
this deed, each Beneficiary individually may make a demand under the Guarantee with
respect to the Guaranteed Money owing to that Beneficiary.
	 
	7	 	Undertaking and Guarantee Trustee
	 
	7.1	 	Appointment
	 
	 	 	The Performing Subsidiary appoints the Undertaking and Guarantee Trustee as the
trustee for each Beneficiary in respect of the Undertaking and Guarantee, each Relevant
Document and any other document in connection with the Undertaking and Guarantee or any
Relevant Document which contains provisions in favour of, or for the benefit of, the
Undertaking and Guarantee Trustee or a Beneficiary (including, without limitation, all
representations, warranties and undertakings made in favour of the Undertaking and
Guarantee Trustee or any Beneficiary and any other rights, claims or entitlements of the
Undertaking and Guarantee Trustee or a Beneficiary under the Undertaking and Guarantee or
any Relevant Document).
	 
	 	 	The Undertaking and Guarantee Trustee accepts that appointment on the terms and conditions
of this deed.

	 	 	 	 	 

	 
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	7.2	 	Remuneration

	 	(a)	 	The Performing Subsidiary must pay the Undertaking and Guarantee Trustee the fee
separately agreed by the Performing Subsidiary and the Undertaking and Guarantee
Trustee (including without limitation fees in relation to the Undertaking and
Guarantee Trustee’s time and attendance on all matters in connection with the
enforcement of Beneficiaries’ rights under this deed, the Trust, and each Relevant
Document, as separately agreed by the Performing Subsidiary and the Undertaking and
Guarantee Trustee).
	 
	 	(b)	 	If the Undertaking and Guarantee Trustee is required at any time to
undertake:

	 	(i)	 	any duties in connection with the enforcement of
Beneficiaries’ rights under this deed, the Trust and each Relevant Document;
or
	 
	 	(ii)	 	any duties which are agreed by the Performing Subsidiary
to be of an exceptional nature or otherwise outside the scope of the normal
duties of the Undertaking and Guarantee Trustee,

	 	 	 	then the Undertaking and Guarantee Trustee is entitled to such additional fees as
may be agreed between the Undertaking and Guarantee Trustee and the Performing
Subsidiary or, failing agreement, such fees as are determined by the Independent
Valuer (acting as an expert and not as an arbitrator). The Independent Valuer’s
determination shall be conclusive and binding on the Performing Subsidiary and
the Undertaking and Guarantee Trustee so far as permitted by law.

	7.3	 	Power
	 
	 	 	In connection with the discharge of its duties and obligations under this deed, the
Undertaking and Guarantee Trustee has all the powers of a natural person, but must
exercise those powers subject to the provisions of this deed.
	 
	7.4	 	Specific responsibilities
	 
	 	 	The Undertaking and Guarantee Trustee agrees:

	 	(a)	 	to notify the Beneficiaries of any change in the Undertaking and Guarantee
Trustee’s principal office and address for notices under this deed;
	 
	 	(b)	 	to maintain the Register in accordance with clause 9 (“Register”);
	 
	 	(c)	 	to diligently perform its obligations under the Intercreditor Deed;
	 
	 	(d)	 	in relation to each matter arising under or in connection with the
Intercreditor Deed which requires the exercise of any right or discretion vested in
the Financiers collectively (as therein defined) or the Undertaking and Guarantee
Trustee (on behalf of the Financiers

	 	 	 	 	 

	 
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	 	 	 	(as therein defined)) (including, without limitation, a request for consent
or the waiver of a right), to:

	 	(i)	 	promptly send to each Beneficiary (at the address last
notified by the Beneficiary) a notice which:

	 	(A)	 	notifies the Beneficiary of the details
of the matter and the legal basis (by reference to the particular
clause of the Intercreditor Deed) for the exercise of a right or
discretion by the Financiers, or the Undertaking and Guarantee
Trustee on their behalf, in relation to the matter; and
	 
	 	(B)	 	requests the Beneficiary to advise in
writing, with such details as the Undertaking and Guarantee Trustee
may request and within [five] Business Days of the date of the
notice (or such shorter period as the Undertaking and Guarantee
Trustee determines is reasonable having regard to all relevant
circumstances):

	 	(aa)	 	the amount of its
participation in the Finance Money Debt at that time; and
	 
	 	(ab)	 	its instructions as
to how the right or discretion should be exercised by the
Undertaking and Guarantee Trustee in relation to the
matter described in the notice; and

	 	(ii)	 	notwithstanding the instructions of any individual
Beneficiary, act in accordance with the instructions of the Beneficiaries
whose aggregate participation in the Finance Money Debt (as advised by those
Beneficiaries) represents more than 50% of the aggregate value of all
Finance Money Debt (as advised by all Beneficiaries), provided that if any
Beneficiary fails to respond to the Undertaking and Guarantee Trustee’s
notice within the time stated therein, the Undertaking and Guarantee Trustee
may, in its discretion if it believes doing so is in the best interests of
the Beneficiaries as a whole (without regard to the particular circumstances
or interests of any individual Beneficiary), act in accordance with the
instructions of the Beneficiaries who do respond within the stated time
(“Responding Beneficiaries”) and whose aggregate participation in the
Finance Money Debt (as advised by those Responding Beneficiaries) represents
more than 50% of the aggregate value of the Finance Money Debt of all
Responding Beneficiaries;

	 	(e)	 	upon receipt of written notice from the Performing Subsidiary or a
Beneficiary of the commencement of any Insolvency of the Performing Subsidiary, to
promptly send to each Beneficiary (at the address last notified by the Beneficiary) a
notice which:

	 	 	 	 	 

	 
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	 	(i)	 	states that the Undertaking and Guarantee Trustee has
been so notified; and
	 
	 	(ii)	 	requests the Beneficiary to advise in writing, with such
details as the Undertaking and Guarantee Trustee may request and within
[five] Business Days of the date of the notice (or such shorter period as
the Undertaking and Guarantee Trustee determines is reasonable having regard
to all relevant circumstances), the amount of its participation in the
Finance Money Debt at that time; and

	 	(f)	 	in any Insolvency of the Performing Subsidiary:

	 	(i)	 	to distribute all Notices of Voting in Insolvency, and to
vote on any matter or matters the subject of a Notice of Voting in
Insolvency, in accordance with clause 17 (“Voting in Insolvency
proceedings”);
	 
	 	(ii)	 	(if required for the purposes of any proceedings relating
to, or in connection with, the Insolvency of the Performing Subsidiary) to
prove separately for all amounts of Finance Money Debt notified by
Beneficiaries in accordance with clause 7.4(e)(ii). For the avoidance of
doubt, each Beneficiary expressly authorises the Undertaking and Guarantee
Trustee to prove for all amounts of Finance Money Debt owing to it in the
name of the Undertaking and Guarantee Trustee, in the name of the
Undertaking and Guarantee Trustee as trustee for that Beneficiary or in the
name of that Beneficiary; and
	 
	 	(iii)	 	to distribute all Recovered Money in accordance with
clause 18 (“Distribution of Recovered Money”).

	7.5	 	No other duties

	 	(a)	 	The Undertaking and Guarantee Trustee has no duties or responsibilities except
those expressly set out in this deed or which the Undertaking and Guarantee Trustee
has otherwise agreed in writing that it will undertake.
	 
	 	(b)	 	Without limiting the generality of clause 7.5(a), the Undertaking and
Guarantee Trustee has no obligation to keep itself informed, or to inform the
Beneficiaries, about:

	 	(i)	 	the performance by any party of its obligations under
this deed or any other agreement; or
	 
	 	(ii)	 	the affairs, financial condition or business of any
person.

	 	(c)	 	Except in the case of manifest error, the Undertaking and Guarantee Trustee
may rely upon any certification, notification or other written advice given to it in
good faith as being conclusive on its face and is

	 	 	 	 	 

	 
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	 	 	 	not obliged to make any inquiries as to the correctness of the contents of that
certificate, notification or advice.

	 	(d)	 	Each Beneficiary expressly authorises the Undertaking and Guarantee Trustee
to act in accordance with the express terms of this deed, notwithstanding that in
doing so the Undertaking and Guarantee Trustee may be in breach of any fiduciary or
other duties owed by it to that Beneficiary.
	 
	 	(e)	 	Each Beneficiary expressly authorises the Undertaking and Guarantee Trustee
to intermingle the Recovered Money prior to any distribution under clause 18 to the
extent permitted by applicable law.
	 
	 	(f)	 	Each Beneficiary expressly waives any right or action it may have in law or
equity against the Undertaking and Guarantee Trustee, arising from any action the
Undertaking and Guarantee Trustee may take in accordance with clause 7.5(d) and
7.5(e).

	7.6	 	Delegation

	 	(a)	 	The Undertaking and Guarantee Trustee may employ agents and attorneys and may
delegate any of its rights or obligations in the capacity as trustee under this deed
without notifying any person of the delegation.
	 
	 	(b)	 	The Undertaking and Guarantee Trustee agrees to exercise reasonable care in
selecting delegates and to supervise their actions.
	 
	 	(c)	 	The Undertaking and Guarantee Trustee is responsible for any loss arising
due to the fraud, gross negligence or wilful misconduct of its delegate or gross or
wilful breach by the delegate of their obligations where that delegate is a Related
Entity to the Undertaking and Guarantee Trustee.
	 
	 	(d)	 	For the avoidance of doubt, in relation to each separate trust created
pursuant to clause 5.1, the Undertaking and Guarantee Trustee may employ the same or
separate agents and attorneys and may delegate any of its rights or obligations in
the capacity as trustee under this deed to the same or separate persons to those
agents, attorneys and delegates employed or appointed for any other trust created
pursuant to clause 5.1.

	7.7	 	Indemnity

	 	(a)	 	The Undertaking and Guarantee Trustee and its officers and agents are entitled
to be continually indemnified out of the Trust in the same proportions specified in
clause 7.7(c) against all expenses, losses, liabilities, actions, proceedings, claims
and demands (whether actual, contingent, prospective or otherwise) that are incurred
as a direct or indirect consequence of the execution of this deed or any Relevant
Document or any act or omission by any person under this deed or any Relevant
Document.
	 
	 	(b)	 	The indemnity in clause 7.7(a):

	 	 	 	 	 

	 
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	 	(i)	 	is separate from any indemnity allowed by law;
	 
	 	(ii)	 	survives the termination of this deed; and
	 
	 	(iii)	 	does not extend to any expenses, losses, liabilities,
actions, proceedings, claims and demands to the extent that they are
attributable to:

	 	(A)	 	a failure by the Undertaking and
Guarantee Trustee to properly perform its duties under this deed,
any Relevant Document or under the Corporations Act 2001; or
	 
	 	(B)	 	fraud, gross negligence or wilful
misconduct on the part of the Undertaking and Guarantee Trustee or
the officer or agent seeking to be indemnified under clause 7.7(a).

	 	(c)	 	Each Beneficiary individually in accordance with its Proportion,
indemnifies the Undertaking and Guarantee Trustee and its officers and agents against
the non-receipt of a payment from the Performing Subsidiary and the Costs incurred by
the Undertaking and Guarantee Trustee or relevant officer or agent in funding the
amount not paid, if the Undertaking and Guarantee Trustee or relevant officer or
agent:

	 	(i)	 	reasonably claims a payment from the Performing
Subsidiary under clause 23.1 (“What the Performing Subsidiary agrees to
pay”); and
	 
	 	(ii)	 	does not receive it within seven days after the claim is
made.

	 	 	 	Each Beneficiary agrees to pay amounts due under this indemnity to the
Undertaking and Guarantee Trustee or relevant officer or agent on demand from the
Undertaking and Guarantee Trustee or relevant officer or agent.
	 
	 	(d)	 	The Performing Subsidiary indemnifies each Beneficiary against any
liability or loss arising from, and any Costs incurred in connection with, the
Beneficiary making a payment under clause 7.7(a). The Performing Subsidiary agrees
to pay amounts due under this indemnity on demand from the Beneficiaries.
	 
	 	(e)	 	Each payment to be made under this clause 7.7 must be made in Australian
dollars.

	7.8	 	Payment by Beneficiaries
	 
	 	 	If the Undertaking and Guarantee Trustee:

	 	(a)	 	proposes to exercise a right arising in its capacity as trustee for the
Beneficiaries under this deed or any Relevant Document or take any other action in
that capacity; or

	 	 	 	 	 

	 
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	 	(b)	 	the Undertaking and Guarantee Trustee is directed to exercise a right or
take any action in its capacity as trustee for the Beneficiaries under this deed or
any Relevant Document,

	 	 	and the Undertaking and Guarantee Trustee reasonably considers this could result in the
Performing Subsidiary becoming obliged to pay an amount to the Undertaking and Guarantee
Trustee under clause 23.1 (“What the Performing Subsidiary agrees to pay”), then the
Undertaking and Guarantee Trustee:

	 	(i)	 	may request the Beneficiaries to pay to the Undertaking and Guarantee Trustee
an amount at least equal to the amount the Undertaking and Guarantee Trustee
reasonably determines would be the Performing Subsidiary’s liability to the
Undertaking and Guarantee Trustee; and
	 
	 	(ii)	 	need not act until the Beneficiaries do so.

	 	 	Each Beneficiary agrees to fund under this clause 7.8 rateably in accordance with its
Proportion.

	7.9	 	Adjustments amongst Beneficiaries

	 	(a)	 	If a Beneficiary (a “Defaulting Beneficiary”) fails to pay any amount (a
“Default Amount”) to the Undertaking and Guarantee Trustee under clause 7.7(a) or 7.8,
any other Beneficiary (a “Funding Beneficiary”) acting alone or together with other
Funding Beneficiaries may pay an amount equal to the Default Amount to the Undertaking
and Guarantee Trustee.
	 
	 	(b)	 	If the Undertaking and Guarantee Trustee receives a payment made in
accordance with clause 7.9(a), it must:

	 	(i)	 	deduct an amount equal to the Default Amount from any
payment it is obliged to make to the Defaulting Beneficiary; and
	 
	 	(ii)	 	pay an amount equal to each Funding Beneficiary’s
contribution to the Default Amount to that Funding Beneficiary.

	8	 	Change of Undertaking and Guarantee Trustee
	 
	8.1	 	Retirement
	 
	 	 	The Undertaking and Guarantee Trustee may retire by giving the Performing
Subsidiary and each Beneficiary at least 90 days’ notice of its intention to do so and
without being required to give any reasons for that retirement.
	 
	8.2	 	Removal
	 
	 	 	If the Undertaking and Guarantee Trustee breaches any material obligation under
this deed and (if the breach is capable of remedy) does not correct the breach within a 30
Days, or if the Undertaking and Guarantee Trustee

	 	 	 	 	 

	 
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	 	 	becomes Insolvent, the Performing Subsidiary may remove the Undertaking and Guarantee
Trustee as trustee under this deed by giving the Undertaking and Guarantee Trustee at
least 45 days’ notice.

	8.3	 	Permitted successors
	 
	 	 	Subject to the Intercreditor Deed, the successor trustee must be a reputable and
experienced professional trustee company, bank or financial institution (or a Related
Entity of any of them) nominated by the Performing Subsidiary.
	 
	8.4	 	When retirement or removal takes effect
	 
	 	 	The retirement or removal of the Undertaking and Guarantee Trustee takes effect
when both of the requirements in paragraphs (a) and (b) have been met or if the
circumstances in paragraph (c) apply:

	 	(a)	 	a successor trustee has been appointed; and
	 
	 	(b)	 	the successor trustee, each other party to this deed and each person having
the benefit of this deed (although not a party to it) have the same rights and
obligations among themselves as they would have had if the successor trustee had been
party to this deed at the date of its execution. The retiring or removed trustee and
the Performing Subsidiary agree to sign documents (including a retirement and
appointment document) and do anything else necessary or appropriate to give effect to
this. Everything the retiring trustee is required to do under this clause is at the
Performing Subsidiary’s expense except that if the Undertaking and Guarantee Trustee
has been removed, it is at its own expense; or
	 
	 	(c)	 	no successor trustee has been appointed or its appointment has not become
effective within 60 days of the end of the relevant retirement or removal notice
period applicable under this clause 8 but the Undertaking and Guarantee Trustee has
the approval of an appropriate court to cease acting as successor trustee under this
deed.

	8.5	 	Discharge of further obligations
	 
	 	 	When a successor trustee is appointed, the retiring or removed trustee is
discharged from any further obligation under this deed. This discharge does not prejudice
any accrued right or obligation.
	 
	8.6	 	Turnover
	 
	 	 	Each Beneficiary agrees for the benefit of the other Beneficiaries that if:

	 	(a)	 	it receives or recovers an amount of Guaranteed Money; and
	 
	 	(b)	 	at the time of receipt or recovery of such amount, the Undertaking and
Guarantee Trustee has retired or been removed and either a successor undertaking and
guarantee trustee has not been appointed or the successor undertaking and guarantee
trustee’s appointment is not effective,

	 	 	 	 	 

	 
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	 	then, to the extent such amount exceeds that Beneficiary’s Proportion of the Guaranteed
Money (the “Turnover Amount”), it:

	 	(i)	 	holds the Turnover Amount on trust for the other
Beneficiaries; and
	 
	 	(ii)	 	agrees to pay the Turnover Amount to the other
Beneficiaries rateably in accordance with their Proportions.

	9	 	Register
	 
	9.1	 	Establishment and maintenance of Register

	 	(a)	 	The Undertaking and Guarantee Trustee must establish and maintain the Register
in accordance with this deed.
	 
	 	(b)	 	Each Beneficiary must give notice to the Undertaking and Guarantee Trustee
within 10 Business Days (or, if JHINV is at that time Insolvent, 2 Business Days) of
the date of any change to any of the details in clause 9.2 below such notice to be
substantially in the form of the Beneficiary Change Notification set out in schedule
1(B).

	9.2	 	Information required in Register
	 
	 	 	The Undertaking and Guarantee Trustee must enter the following information in the
Register:

	 	(a)	 	the name and address of each Beneficiary; and
	 
	 	(b)	 	in relation to each Beneficiary, a list of each Finance Document; and
	 
	 	(c)	 	in respect of each Finance Document, the date, the parties to it and the
name of it; and
	 
	 	(d)	 	the date of each entry in the Register; and
	 
	 	(e)	 	particulars of changes notified to the Undertaking and Guarantee Trustee of
information recorded in the Register; and
	 
	 	(f)	 	any other particulars as the Undertaking and Guarantee Trustee thinks fit.

	9.3	 	No trust
	 
	 	 	No notice of any trust express or implied or constructive is to be entered in the
Register regardless of whether it relates to or arises under this deed or any Relevant
Document.
	 
	9.4	 	Register conclusive
	 
	 	 	The Register is conclusive evidence, in the absence of manifest error, of the
matters recorded in it.

	 	 	 	 	 

	 
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	9.5	 	Update and correction of Register
	 
	 	 	The Undertaking and Guarantee Trustee agrees to:

	 	(a)	 	update the Register when it is notified of any change in any of the details
recorded in respect of a Beneficiary or a Finance Document; and
	 
	 	(b)	 	correct the Register if it becomes aware that any details in the Register
are incorrect or incomplete.

	9.6	 	Inspection of Register
	 
	 	 	The Performing Subsidiary and each Beneficiary may inspect the Register in respect
of information that may be disclosed to it without breach by any party of any duty of
confidentiality or any law, regulation or directive relating to privacy:

	 	(a)	 	on prior reasonable notice to the Undertaking and Guarantee Trustee; and
	 
	 	(b)	 	between 9.30 am and 4.30 pm on any day on which business is generally
carried on in the place where the Register is kept.

	 	 	 	 	 

	 
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Part 3 Undertaking

	10	 	Undertaking
	 
	 	 	The Performing Subsidiary undertakes:

	 	(a)	 	to pay all amounts payable by it under the Finance Documents and this deed;
and
	 
	 	(b)	 	to comply with all of its obligations under the Finance Documents and this
deed.

	11	 	Guarantee and indemnity

	11.1	 	Guarantee

	 	(a)	 	The Performing Subsidiary unconditionally and irrevocably guarantees in
accordance with, and on the terms of this deed, and for the benefit of each
Beneficiary and the Undertaking and Guarantee Trustee, payment of the Guaranteed
Money.
	 
	 	(b)	 	If the Debtor does not pay the Guaranteed Money on time and in accordance
with the Finance Documents then, subject to clause 11.1(c), the Performing Subsidiary
agrees to pay the Guaranteed Money to:

	 	(i)	 	prior to an Insolvency of the Performing Subsidiary, the
relevant Beneficiary following a demand by that Beneficiary to the
Performing Subsidiary; or
	 
	 	(ii)	 	otherwise, the Undertaking and Guarantee Trustee
following a demand by the relevant Beneficiary, or the Undertaking and
Guarantee Trustee on behalf of that Beneficiary, to the Performing
Subsidiary.

	 	(c)	 	A demand on the Performing Subsidiary under this clause 11.1:

	 	(i)	 	may be made only if the Beneficiary has first made a
demand on the Debtor and the demand is not satisfied within 2 Business Days;
	 
	 	(ii)	 	may be made at any time and from time to time; and
	 
	 	(iii)	 	must be made in writing in accordance with clause 27
(“Notices”).

	11.2	 	Indemnity

	 	(a)	 	The Performing Subsidiary indemnifies in accordance with, and on the terms of
this deed, each Beneficiary and the Undertaking and

	 	 	 	 	 

	 
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	 	 	 	Guarantee Trustee against any liability or loss arising, and any Costs it suffers
or incurs:

	 	(i)	 	if the Debtor does not, or is unable to, pay the
Guaranteed Money in accordance with the Finance Documents; or
	 
	 	(ii)	 	if an obligation the Debtor would otherwise have to pay
the Guaranteed Money (or which would have been Guaranteed Money had it not
been irrecoverable) is found to be unenforceable, void or voidable; or
	 
	 	(iii)	 	if an obligation the Performing Subsidiary would
otherwise have under clause 11.1 (“Guarantee”) is found to be unenforceable;
or
	 
	 	(iv)	 	if the Beneficiary or the Undertaking and Guarantee
Trustee is obliged, or agrees, to pay an amount to a trustee in bankruptcy
or liquidator (of an Insolvent person) in connection with a payment by the
Performing Subsidiary or the Debtor. (For example, the Beneficiary may have
to, or may agree to, pay interest on the amount); or
	 
	 	(v)	 	if the Performing Subsidiary defaults under clause 11.1
(“Guarantee”).

	 	(b)	 	Subject to clause 11.1(c), the Performing Subsidiary agrees to pay amounts
due under this indemnity to:

	 	(i)	 	prior to an Insolvency of the Performing Subsidiary, the
relevant Beneficiary following a demand by that Beneficiary to the
Performing Subsidiary; or
	 
	 	(ii)	 	otherwise, the Undertaking and Guarantee Trustee
following a demand by the relevant Beneficiary, or the Undertaking and
Guarantee Trustee on behalf of that Beneficiary, to the Performing
Subsidiary.

	 	(c)	 	A demand on the Performing Subsidiary under this clause 11.1:

	 	(i)	 	may be made at any time and from time to time; and
	 
	 	(ii)	 	must be made in writing in accordance with clause 27.

	12	 	Interest

	12.1	 	Obligation to pay interest
	 
	 	 	The Performing Subsidiary agrees to pay interest at the Default Rate on:

	 	(a)	 	any part of the Guaranteed Money which is due for payment but which is not
otherwise incurring interest; and

	 	 	 	 	 

	 
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	 	(b)	 	any amount payable by it under this deed (other than under clause 11.1)
which is not paid on the due date for payment.

	 	 	The interest accrues daily from (and including) the due date to (but excluding) the date
of actual payment and is calculated on actual days elapsed and either a 360 or 365 day
year, whichever is the length of time customarily adopted for such calculations for the
currency in which the relevant amount is denominated.
	 
	 	 	The Performing Subsidiary agrees to pay interest under this clause on demand from the
Beneficiary.
	 
	12.2	 	Compounding
	 
	 	 	Interest payable under clause 12.1 (“Obligation to pay interest”) which is not paid
when due for payment may be added to the overdue amount by the Beneficiary on the last
Business Day of each calendar month. Interest is payable on the increased overdue amount
at the Default Rate in the manner set out in clause 12.1 (“Obligation to pay interest”).
	 
	12.3	 	Interest following judgment
	 
	 	 	If a liability becomes merged in a judgment, the Performing Subsidiary agrees to
pay interest on the amount of that liability as an independent obligation. This interest:

	 	(a)	 	accrues daily from (and including) the date the liability becomes due for
payment both before and after the judgment up to (but excluding) the date the
liability is paid; and
	 
	 	(b)	 	is calculated at the judgment rate or the Default Rate (whichever is
higher).

	 	 	The Performing Subsidiary agrees to pay interest under this clause on demand from the
Beneficiary.

	13	 	Extent of guarantee and indemnity

	 	(a)	 	The Guarantee is a continuing obligation despite any intervening payment,
settlement or other thing and extends to all of the Guaranteed Money.
	 
	 	(b)	 	Subject to compliance by the Beneficiary with clauses 11.1(c) (“Guarantee”)
and 27 (“Notices”), the Performing Subsidiary waives any right it has of first
requiring the Undertaking and Guarantee Trustee or the Beneficiary to commence
proceedings or enforce any other right against the Debtor or any other person before
claiming from the Performing Subsidiary under the Guarantee.

	 	 	 	 	 

	 
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	14	 	Rights of the Beneficiary are protected
	 
	 	 	Rights given to each Beneficiary under the Guarantee, and the Performing
Subsidiary’s liabilities under it, are not affected by any act or omission of the
Beneficiary or any other person or by any act, other matter or thing whatsoever, whether
negligent or not. For example, those rights and liabilities are not affected by:

	 	(a)	 	any act or omission:

	 	(i)	 	varying or replacing any arrangement under which the
Guaranteed Money is expressed to be owing, such as by increasing a facility
limit or extending the term;
	 
	 	(ii)	 	releasing or discharging the Debtor (including, without
limitation, discharge by operation of law) or giving the Debtor a concession
(such as more time to pay);
	 
	 	(iii)	 	releasing any person who gives a guarantee or indemnity
in connection with any of the Debtor’s obligations;
	 
	 	(iv)	 	releasing, losing the benefit of, or not obtaining any
Security Interest or negotiable instrument;
	 
	 	(v)	 	by which the obligations of any person who guarantees any
of the Debtor’s obligations (including under the Guarantee) may not be
enforceable;
	 
	 	(vi)	 	by which any person who was intended to guarantee any of
the Debtor’s obligations does not do so, or does not do so effectively;
	 
	 	(vii)	 	by which a person who is a co-surety or co-indemnifier
for payment of the Guaranteed Money is discharged under an agreement or by
operation of law;
	 
	 	(viii)	 	by which any Security Interest which could be registered is not
registered,

	 	 	 	or any other thing causing any prejudice (including, but not limited to, material
prejudice) to any person;
	 
	 	(b)	 	a person dealing in any way with a Security Interest, guarantee, indemnity,
judgment or negotiable instrument;
	 
	 	(c)	 	the death, mental or physical disability, incapacity or Insolvency or any
legal limitation of any person including the Performing Subsidiary or the Debtor;
	 
	 	(d)	 	changes in the membership, name or business of any person;
	 
	 	(e)	 	the Debtor opening an account with any Beneficiary;
	 
	 	(f)	 	acquiescence or delay by any Beneficiary or any other person;

	 	 	 	 	 

	 
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	 	(g)	 	an assignment of rights or a novation in connection with the Guaranteed
Money;
	 
	 	(h)	 	the acceptance of the repudiation of, or termination of, any Finance
Document or any other document or agreement;
	 
	 	(i)	 	any payment to a Beneficiary, including any payment which at the payment
date or at any time after the payment date is, in whole or in part, illegal, void,
voidable, avoided or unenforceable.

	 	 	This clause 14 applies regardless of whether the Performing Subsidiary is aware of, has
consented to or is given notice of any act, omission, matter or thing referred to in this
clause 14. This clause 14 does not limit the obligations of the Performing Subsidiary
under this deed.

	15	 	Performing Subsidiary’s rights
	 
	15.1	 	Performing Subsidiary’s rights are suspended
	 
	 	 	As long as there is any Guaranteed Money, the Performing Subsidiary may not,
without the consent of each Beneficiary (or, in the case of a group or syndicate of
Beneficiaries, an agent or trustee on their behalf):

	 	(a)	 	reduce its liability under the Guarantee by claiming that it or the Debtor
or any other person has a right of set-off or counterclaim against the Beneficiary;
or
	 
	 	(b)	 	exercise any legal right to claim to be entitled to the benefit of another
guarantee, indemnity or Security Interest that secures amounts including the
Guaranteed Money or any other amount payable under the Guarantee (for example, the
Performing Subsidiary may not try to enforce or require the enforcement of any
Security Interest the Beneficiary has taken that secures amounts including the
Guaranteed Money); or
	 
	 	(c)	 	claim an amount from the Debtor, or another guarantor of the Guaranteed
Money, under a right of indemnity; or
	 
	 	(d)	 	claim an amount in the Insolvency of the Debtor or of another guarantor of
the Guaranteed Money.

	15.2	 	Performing Subsidiary’s right of proof limited
	 
	 	 	The Performing Subsidiary agrees not to exercise in its capacity as a guarantor
under this deed a right of proof after an event occurs relating to the Insolvency of the
Debtor or another guarantor of the Guaranteed Money independently of an attorney appointed
under clause 16.1 (“Appointment”).

	 	 	 	 	 

	 
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	16	 	Power of Attorney
	 
	16.1	 	Appointment
	 
	 	 	The Performing Subsidiary irrevocably appoints the Undertaking and Guarantee
Trustee and each of its Authorised Officers individually as its attorney and agrees to
formally approve all action taken by an attorney under clause 16.2 (“Powers”).
	 
	16.2	 	Powers
	 
	 	 	Each attorney appointed under clause 16.1 (“Appointment”) may:

	 	(a)	 	do anything which the Performing Subsidiary may lawfully do to exercise its
right of proof after an Insolvency Event occurs in respect of the Debtor or any other
guarantor of the Debtor’s obligations. (These things may be done in the Performing
Subsidiary’s name or the attorney’s name and they include signing and delivering
documents, taking part in legal proceedings and receiving any dividend arising out of
the right of proof); and
	 
	 	(b)	 	delegate its powers (including this power) and revoke a delegation; and
	 
	 	(c)	 	exercise its powers even if this involves a conflict of duty and even if it
has a personal interest in doing so.

	16.3	 	Application of insolvency dividends
	 
	 	 	The attorney need not account to the Performing Subsidiary for any dividend
received on exercising the right of proof under clause 16.2(a) (“Powers”) except to the
extent that any dividend remains after each Beneficiary has received all of the Guaranteed
Money and all other amounts payable under the Finance Documents.

	 	 	 	 	 

	 
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Part 4 Voting in Insolvency and Distribution of Recovered Money

	17	 	Voting in Insolvency proceedings
	 
	17.1	 	Obtaining instructions
	 
	 	 	Upon receipt of a Notice of Voting in Insolvency, the Undertaking and Guarantee
Trustee must promptly send to each Beneficiary (at the address last notified by the
Beneficiary) a notice which:

	 	(a)	 	encloses a copy of the Notice of Voting in Insolvency;
	 
	 	(b)	 	requests the Beneficiary to advise in writing, within five Business Days of
the date of the notice (or such shorter period as the Undertaking and Guarantee
Trustee determines is reasonable having regard to the terms of the Notice of Voting
in Insolvency):

	 	(i)	 	its instructions as to how the Undertaking and Guarantee
Trustee should vote on its behalf on each of the matters to be voted upon as
described in the Notice of Voting in Insolvency;
	 
	 	(ii)	 	any other information reasonably requested by the
Undertaking and Guarantee Trustee to enable it to vote on behalf of the
Beneficiary in accordance with the Notice of Voting in Insolvency; and
	 
	 	(iii)	 	its instructions as to how the Undertaking and Guarantee
Trustee should vote in respect of the Compensation Debt on each of the
matters to be voted upon as described in the Notice of Voting in Insolvency.

	17.2	 	Voting
	 
	 	 	The Undertaking and Guarantee Trustee will vote on any matter or matters the
subject of a Notice of Voting in Insolvency:

	 	(a)	 	on behalf of each Beneficiary (in respect of that Beneficiary’s
participation in the Finance Money Debt) which instructs the Undertaking and
Guarantee Trustee in accordance with clause 17.1 (“Obtaining instructions”) — in
accordance with those instructions; and
	 
	 	(b)	 	in respect of the Compensation Debt:

	 	(i)	 	if the Undertaking and Guarantee Trustee is required by
the Intercreditor Deed to vote the Compensation Debt in the manner nominated
by the NSW Government — in the manner so nominated;

	 	 	 	 	 

	 
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	 	(ii)	 	if the Undertaking and Guarantee Trustee is not required
by the Intercreditor Deed to vote the Compensation Debt in the manner
nominated by the NSW Government — in accordance with the instructions
(advised in accordance with clause 17.1(b)(iii) (“Obtaining instructions”))
of the Beneficiaries whose aggregate participation in the Finance Money Debt
(as advised by those Beneficiaries) represents more than 50% of the
aggregate value of all Finance Money Debt (as advised by all Beneficiaries),
provided that if any Beneficiary fails to respond to the Undertaking and
Guarantee Trustee’s notice within the time stated therein, the Undertaking
and Guarantee Trustee may, in its discretion if it believes doing so is in
the best interests of the Beneficiaries as a whole (without regard to the
particular circumstances or interests of any individual Beneficiary), act in
accordance with the instructions of the Beneficiaries who do respond within
the stated time (“Responding Beneficiaries”) and whose aggregate
participation in the Finance Money Debt (as advised by those Responding
Beneficiaries) represents more than 50% of the aggregate value of the
Finance Money Debt of all Responding Beneficiaries.

	 	 	For the avoidance of doubt, in relation to each separate trust created pursuant to clause
5.1, the Undertaking and Guarantee Trustee may employ or appoint the same or separate
proxies, representatives, agents or attorneys to vote on any matter or matters the subject
of a Notice of Voting in Insolvency to those proxies, representatives, agents or attorneys
employed or appointed for any other trust created pursuant to clause 5.1.

	18	 	Distribution of Recovered Money

	18.1	 	How the Undertaking and Guarantee Trustee is to distribute
	 
	 	 	The Undertaking and Guarantee Trustee agrees to distribute all Recovered Money as
follows:

	 	(a)	 	first, to itself for its Costs (including but not limited to costs in
connection with enforcement under the Intercreditor Deed) and other amounts due to it
in its capacity as trustee of the Trust; and
	 
	 	(b)	 	secondly, to the extent of any balance after payment of amounts due to the
Undertaking and Guarantee Trustee under clause 18.1(a), to the Beneficiaries to
satisfy the Finance Money Debt, so that each Beneficiary receives its Proportion of
the Recovered Money;
	 
	 	(c)	 	thirdly, to the extent of any balance after repayment of the Finance Money
Debt, to the Charitable Fund (or otherwise for the benefit of the Charitable Fund or
the beneficiaries of the Charitable Fund) to satisfy the Compensation Debt; and

	 	 	 	 	 

	 
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	 	(d)	 	fourthly, to the extent of any balance after repayment of the Compensation Debt,
to the Performing Subsidiary (for its own account).

	 	 	To the extent Recovered Money has been received by the Undertaking and Guarantee Trustee
after an Insolvency of the Performing Subsidiary, which Insolvency has led to a partial
payment of the Finance Money Debt or Compensation Debt, the Finance Money Debt referred to
in paragraph (b) above shall be calculated taking into account only that part of the
Finance Money Debt which has been irrevocably admitted in the Insolvency.
	 
	18.2	 	Manner of distribution
	 
	 	 	The Undertaking and Guarantee Trustee agrees to distribute amounts to each
Beneficiary promptly after receipt in immediately available funds, to an account nominated
in writing by the Beneficiary.
	 
	18.3	 	Receipt by Beneficiary not through Undertaking and Guarantee Trustee
	 
	 	 	Each Beneficiary agrees to notify the Undertaking and Guarantee Trustee (after the
date of the notice issued by the Undertaking and Guarantee Trustee under clause 7.4(e) of
this deed) promptly of its receipt from the Performing Subsidiary (other than by payment
through the Undertaking and Guarantee Trustee) of any amount of Finance Money Debt on or
after the commencement of an Insolvency of the Performing Subsidiary (including, without
limitation, a recovery by set-off (including under clause 28.4 (“Set-off”) of this deed)
or banker’s lien). The parties acknowledge that a receipt by way of set-off occurs at the
time the Beneficiary applies the set-off in its books of account, irrespective of the time
when the amount set off was deposited with that party.
	 
	18.4	 	Accounting to Undertaking and Guarantee Trustee
	 
	 	 	If a receipt referred to in clause 18.3 (“Receipt by Beneficiary not through
Undertaking and Guarantee Trustee”) represents an amount which, had it been received by
the Undertaking and Guarantee Trustee, would have been distributable not only to the
Beneficiary who receives it but also to the other Beneficiaries, then the Beneficiary
agrees to pay to the Undertaking and Guarantee Trustee promptly following receipt of the
notice issued by the Undertaking and Guarantee Trustee under clause 7.4(e) of this deed an
amount equivalent to the amount received within two Business Days of receiving it. The
amount paid to the Undertaking and Guarantee Trustee is to be:

	 	(a)	 	taken to have been received by the Undertaking and Guarantee Trustee and
not by the Beneficiary who receives it (and the participation of that Beneficiary in
the Finance Money Debt is taken not to have been reduced by that amount); and
	 
	 	(b)	 	distributed by the Undertaking and Guarantee Trustee to the parties
entitled to it in accordance with clause 18.1 (“How the Undertaking and Guarantee
Trustee is to distribute”).

	 	 	 	 	 

	 
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	18.5	 	Refund to Beneficiary
	 
	 	 	If a Beneficiary who receives a payment referred to in clause 18.3 (“Receipt by
Beneficiary not through Undertaking and Guarantee Trustee”) is obliged to refund any part
of it under laws relating to insolvency then, on request from the Beneficiary, each party
to which any part of the payment was distributed must repay to the Beneficiary the
proportion of the amount received by that party equal to the proportion of the payment
received by the Beneficiary which the Beneficiary is obliged to refund.
	 
	18.6	 	Deemed Payment
	 
	 	 	An amount paid under clause 18.5 (“Refund to Beneficiary”) will be deemed to have
been a payment for the account of the Undertaking and Guarantee Trustee and not to the
relevant Beneficiary for its own account and to that extent the liability to the relevant
Beneficiary will not be reduced by the amount received, other than to the extent of any
distribution received by the relevant Beneficiary under clause 18.4(b).

	 	 	 	 	 

	 
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Part 5 General provisions

	19	 	Payments

	19.1	 	Manner of payment by the Performing Subsidiary
	 
	 	 	The Performing Subsidiary agrees to make payments under the Finance Documents:

	 	(a)	 	in full without set-off or counterclaim and without any deduction in
respect of Taxes unless prohibited by law;
	 
	 	(b)	 	if the payment relates to the Guaranteed Money, in the currency in which
the payment is due, and otherwise in US Dollars in immediately available funds; and
	 
	 	(c)	 	to the Undertaking and Guarantee Trustee by payment into the account
nominated by the Undertaking and Guarantee Trustee, or by payment as the Undertaking
and Guarantee Trustee otherwise directs.

	 	 	If the Undertaking and Guarantee Trustee directs the Performing Subsidiary to pay a
particular person or in a particular manner, the Performing Subsidiary is taken to have
satisfied its obligation to the Undertaking and Guarantee Trustee by paying in accordance
with the direction.
	 
	19.2	 	Direction to pay
	 
	 	 	The Undertaking and Guarantee Trustee directs that until the Performing Subsidiary
becomes Insolvent or would become Insolvent by paying the Compensation Debt (whichever
occurs first), the Performing Subsidiary make all payments due under the Finance Documents
to the Beneficiary entitled to such payments.
	 
	19.3	 	Currency of payment
	 
	 	 	The Performing Subsidiary waives any right it has in any jurisdiction to pay an
amount other than in the currency in which it is due. However, if the Beneficiary
receives an amount in a currency other than that in which it is due:

	 	(a)	 	it may convert the amount received into the due currency (even though it
may be necessary to convert through a third currency to do so) on the day and at such
rates (including spot rate, same day value rate or value tomorrow rate) as it
reasonably considers appropriate. It may deduct its usual Costs in connection with
the conversion; and
	 
	 	(b)	 	the Performing Subsidiary satisfies its obligation to pay in the due
currency only to the extent of the amount of the due currency obtained from the
conversion after deducting the Costs of the conversion.

	 	 	 	 	 

	 
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	20	 	Application of payments

	20.1	 	Application of money
	 
	 	 	Subject to the Finance Documents, each Beneficiary may apply money paid by the
Debtor, the Debtor’s estate, the Performing Subsidiary or otherwise towards satisfaction
of the Guaranteed Money and other money payable under this deed in the manner it sees fit.
	 
	20.2	 	Order of payment
	 
	 	 	Subject to the Finance Documents, each Beneficiary may use money received under
this deed towards paying any part of the Guaranteed Money the Beneficiary chooses. This
applies even if that part only falls due after the Beneficiary gives a notice of demand.
	 
	20.3	 	Suspense account
	 
	 	 	Subject to the Finance Documents, each Beneficiary may place in an
interest bearing suspense account any payment it receives towards satisfaction of the
Guaranteed Money (and any net interest on that payment after tax) for as long as it thinks
prudent and need not apply the payment or net interest towards satisfying the Guaranteed
Money or other money payable under this deed.
	 
	20.4	 	Remaining money
	 
	 	 	Each Beneficiary agrees to pay any money remaining after the Guaranteed Money is
paid either to the Performing Subsidiary (which the Beneficiary may do by paying it into
an account in the Performing Subsidiary’s name) or to another person entitled to it. In
doing so, it does not incur any liability to the Performing Subsidiary. The Beneficiary
is not required to pay the Performing Subsidiary interest on any money remaining after the
Guaranteed Money is paid.
	 
	20.5	 	Credit from date of receipt
	 
	 	 	The Performing Subsidiary is only credited with money from the date the Beneficiary
actually receives it.

	21	 	Withholding tax

	21.1	 	Payments by the Performing Subsidiary
	 
	 	 	If a law requires the Performing Subsidiary to deduct or withhold an amount in
respect of Taxes (other than Indirect Taxes) in respect of a payment under this deed such
that a Beneficiary (“Indemnified Party”) would not actually receive on the due date the
full amount provided for under this deed, then:

	 	(a)	 	the Performing Subsidiary agrees to deduct the amount for such Taxes and
any further deduction applicable to any further payment due under paragraph (c)
below; and

	 	 	 	 	 

	 
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	 	(b)	 	the Performing Subsidiary agrees to pay an amount equal to the amount
deducted or withheld to the relevant authority in accordance with applicable law; and
	 
	 	(c)	 	unless the Tax is an Excluded Tax, the amount payable is increased so that,
after making the deduction or withholding and further deductions or withholdings
applicable to additional amounts payable under this paragraph (c), the Indemnified
Party is entitled to receive (at the time the payment is due) the amount it would
have received if no deductions or withholdings had been required.

	21.2	 	Tax credit
	 
	 	 	If and to the extent that any Beneficiary is able in its opinion to apply for or
otherwise take advantage of any offsetting tax credit, tax rebate or other similar tax
benefit out of or in conjunction with any deduction or withholding which gives rise to an
obligation on the Performing Subsidiary to pay any additional amount pursuant to clause
21.1 (“Payments by the Performing Subsidiary”), that Beneficiary shall:

	 	(a)	 	give notice thereof to the Performing Subsidiary and take steps to obtain
that credit, rebate or benefit; and
	 
	 	(b)	 	to the extent that in its opinion it can do so without prejudice to the
retention of the credit, rebate or benefit, and upon receipt thereof, reimburse to
the Performing Subsidiary such amount of the credit, rebate or benefit as that
Beneficiary shall, in its opinion (acting reasonably), have determined to be
attributable to the deduction or withholding. In complying with this clause, no
Beneficiary need disclose to the Performing Subsidiary information about their tax
affairs or order them in a particular way.

	22	 	Indirect Taxes

	 	(a)	 	All payments to be made by the Performing Subsidiary under or in connection
with this deed have been calculated without regard to Indirect Tax. If all or part
of any such payment is the consideration for a taxable supply or chargeable with
Indirect Tax then, when the Performing Subsidiary makes the payment:

	 	(i)	 	it must pay to the Beneficiary an additional amount equal
to that payment (or part) multiplied by the appropriate rate of Indirect
Tax; and
	 
	 	(ii)	 	the Beneficiary will promptly provide to the Performing
Subsidiary a tax invoice complying with the relevant law relating to that
Indirect Tax.

	 	(b)	 	Where this deed requires the Performing Subsidiary to reimburse a
Beneficiary for any Costs or expenses, the Performing Subsidiary shall also at the
same time pay and indemnify that Beneficiary against all Indirect Tax incurred by
that Beneficiary in respect of the Costs or expenses save to the extent that that
Beneficiary is entitled to

	 	 	 	 	 

	 
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	 	 	 	repayment or credit in respect of the Indirect Tax. The Beneficiary will
promptly provide to the Performing Subsidiary a tax invoice complying with the
relevant law relating to that Indirect Tax.

	23	 	Costs

	23.1	 	What the Performing Subsidiary agrees to pay
	 
	 	 	The Performing Subsidiary agrees to pay or reimburse the Undertaking and Guarantee
Trustee and each Beneficiary on demand for:

	 	(a)	 	its reasonable Costs in connection with:

	 	(i)	 	the registration of, and payment of Taxes on, this deed;
	 
	 	(ii)	 	giving and considering consents, waivers and releases
requested by the Performing Subsidiary in connection with this deed; and
	 
	 	(iii)	 	any expenditure incurred in accordance with clause 3(c);

	 	(b)	 	its Costs in exercising, enforcing or preserving rights against the
Performing Subsidiary under this deed; and
	 
	 	(c)	 	Taxes and fees (including registration fees) and fines and penalties in
respect of fees paid, or that the Undertaking and Guarantee Trustee or the
Beneficiary reasonably believes are payable, in connection with this deed or a
payment or receipt or any other transaction involving the Performing Subsidiary
contemplated by this deed. However, the Performing Subsidiary need not pay a fine or
penalty in connection with Taxes or fees to the extent that it has placed the
Undertaking and Guarantee Trustee or the Beneficiary in sufficient cleared funds for
the Undertaking and Guarantee Trustee or Beneficiary (as the case may be) to be able
to pay the Taxes or fees by the due date.

	23.2	 	Currency conversion on judgment debt
	 
	 	 	If a judgment, order or proof of debt for an amount payable by the Performing
Subsidiary under this deed is expressed in a currency other than the currency in which the
amount is due under this deed, then the Performing Subsidiary indemnifies the Beneficiary
against:

	 	(a)	 	any difference arising from converting the other currency if the rate of
exchange used by the Beneficiary under clause 19.3 (“Currency of payment”) for
converting currency when it receives a payment in the other currency is less
favourable to the Beneficiary than the rate of exchange used for the purpose of the
judgment, order or acceptance of proof of debt; and
	 
	 	(b)	 	the Costs of conversion.

	 	 	 	 	 

	 
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	24	 	Reinstatement of rights
	 
	 	 	Under law relating to Insolvency Events, a person may claim that a transaction
(including a payment) in connection with the Finance Documents or the Finance Money Debt
is void or voidable. If a claim is made and upheld, conceded or compromised, then to the
extent to which the claim concerns a transaction in connection with the Finance Documents:

	 	(a)	 	the Beneficiary is immediately entitled as against the Performing
Subsidiary to the rights in respect of the amounts payable under the Finance
Documents to which it was entitled immediately before the transaction; and
	 
	 	(b)	 	on request from the Beneficiary, the Performing Subsidiary agrees to do
anything (including signing any document) reasonably required to restore to the
Beneficiary any Security Interest held by it from the Performing Subsidiary
immediately before the transaction.

	 	 	This clause applies whether or not the Beneficiary knew, or ought to have known, that the
transaction would be void or voidable.

	25	 	No merger
	 
	 	 	This deed does not merge with or adversely affect, and is not adversely affected by
any of the following:

	 	(a)	 	any Security Interest, guarantee or other right or remedy to which a
Beneficiary is entitled; or
	 
	 	(b)	 	a judgment which a Beneficiary obtains against the Performing Subsidiary,
the Debtor or any other person in connection with the Guaranteed Money.

	 	 	The Beneficiary may still exercise its rights under this deed as well as under the
judgment, Security Interest or right or remedy.
	 
	26	 	Dealings

	26.1	 	Dealings by the Performing Subsidiary with the Compensation Debt
	 
	 	 	Without the consent of each Beneficiary (or, in the case of a group or syndicate of
Beneficiaries, an agent or trustee on their behalf), the Performing Subsidiary may not:

	 	(a)	 	vary, amend or replace the Final Funding Agreement, or enter into an
agreement having that effect;
	 
	 	(b)	 	during the Insolvency of the Performing Subsidiary, exercise any right of
set-off in respect of the Compensation Debt (except as contemplated by clauses 4.3
and 6.2 of the Intercreditor Deed);

	 	 	 	 	 

	 
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	 	(c)	 	create or allow to exist any Security Interest or guarantee, indemnity or
assurance against financial loss in respect of the Compensation Debt in accordance
with the Final Funding Agreement; or
	 
	 	(d)	 	enter into any arrangement, take any action or fail to do any thing, which
results in the Compensation Debt not being subordinated to the Finance Money Debt in
accordance with the terms of the Intercreditor Deed,

	 	 	provided that such consent is not to be unreasonably withheld if such action is not
adverse in any material respect to the interests of the Beneficiaries under the
Intercreditor Deed.

	26.2	 	Dealings by the Performing Subsidiary
	 
	 	 	The Performing Subsidiary may not assign or otherwise deal with its rights under
this deed or allow any interest in it to arise or be varied, without the consent of each
Beneficiary (or, in the case of a group or syndicate of Finance Beneficiaries, an agent or
trustee on their behalf).
	 
	26.3	 	Dealings by Beneficiaries
	 
	 	 	Subject to the Finance Documents, a Beneficiary may assign or otherwise deal with
its rights under this deed in any way it considers appropriate. If a Beneficiary does
this, the Performing Subsidiary may not claim against any assignee (or any other person
who has an interest in this deed) any right of set-off or other rights it has against the
Beneficiary.

	27	 	Notices

	27.1	 	Form
	 
	 	 	Unless expressly stated otherwise in this deed, all demands, notices, certificates,
consents, approvals, waivers and other communications in connection with this deed
(“Notices”) must be in writing, signed by an Authorised Officer of the sender and marked
for attention as set out or referred to in the Details or, if the recipient has notified
otherwise, then marked for attention in the way last notified.
	 
	27.2	 	Demand under Guarantee
	 
	 	 	Any demand made by a Beneficiary under the Guarantee must comply with the following
requirements (in addition to those contained in clause 27.1 (“Form”)):

	 	(a)	 	clearly identify the Finance Document under which the Guaranteed Money is
payable by the Debtor;
	 
	 	(b)	 	state the amount of the Guaranteed Money demanded and describe in
reasonably adequate detail the nature of the unpaid obligation; and
	 
	 	(c)	 	state the date on which demand was made on the Debtor and certify that the
Guaranteed Money remains unpaid at the date of the demand.

	 	 	 	 	 

	 
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	27.3	 	Delivery
	 
	 	 	Notices must be:

	 	(a)	 	delivered to the address set out or referred to in the Details (or, in the
case of a Beneficiary, the address identified in the Register); or
	 
	 	(b)	 	sent by prepaid post (airmail if appropriate) to the address set out or
referred to in the Details (or, in the case of a Beneficiary, the address identified
in the Register); or
	 
	 	(c)	 	sent by fax to the fax number set out or referred to in the Details (or, in
the case of a Beneficiary, the address identified in the Register).

	 	 	However, if the intended recipient has notified a changed postal address or changed fax
number, then the communication must be to that address or number.
	 
	27.4	 	When effective
	 
	 	 	Notices take effect from the time they are received unless a later time is
specified in them.
	 
	27.5	 	Receipt — postal
	 
	 	 	If sent by post, notices are taken to be received three Business Days after posting
(or five Business Days after posting if sent across national boundaries).
	 
	27.6	 	Receipt — fax
	 
	 	 	If sent by fax, notices are taken to be received at the time shown in the
transmission report as the time that the whole fax was sent.

	28	 	General

	28.1	 	Consents
	 
	 	 	The Performing Subsidiary agrees to comply with all conditions in any consents
given in connection with this deed if the Performing Subsidiary relies on that consent in
performing its obligations under this deed.
	 
	28.2	 	Prompt performance
	 
	 	 	If this deed specifies when the Performing Subsidiary agrees to perform an
obligation, it agrees to perform it by the time specified. the Performing Subsidiary
agrees to perform all other obligations promptly.
	 
	28.3	 	Certificates
	 
	 	 	A Beneficiary may give the Undertaking and Guarantee Trustee or the Performing
Subsidiary a certificate about an amount payable or other matter in connection with this
deed or a Finance Document. The certificate is

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

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12 December 2006
	 	45

 

 

	 	 	sufficient evidence of the amount or matter, unless it is proved to be incorrect.
	 
	28.4	 	Set-off
	 
	 	 	A Beneficiary may set off any amount due for payment by the Beneficiary to the
Performing Subsidiary against any amount due for payment by the Performing Subsidiary to
the Beneficiary under this deed. This does not restrict any right of insolvency set-off
which may arise under Dutch law.
	 
	28.5	 	Discretion in exercising rights 
	 
	 	 	A Beneficiary may exercise a right or remedy or give or refuse its consent in any
way it considers appropriate (including by imposing conditions), unless this deed
expressly states otherwise.
	 
	28.6	 	Partial exercising of rights 
	 
	 	 	If a Beneficiary does not exercise a right or remedy fully or at a given time, the
Beneficiary may still exercise it later.
	 
	28.7	 	Indemnities
	 
	 	 	The indemnities in this deed are continuing obligations, independent of the
Performing Subsidiary’s other obligations under this deed and continue after this deed
ends. It is not necessary for a Beneficiary to incur expense or make payment before
enforcing a right of indemnity under this deed.
	 
	28.8	 	Inconsistent law
	 
	 	 	To the extent permitted by law, this deed prevails to the extent it is inconsistent
with any law.
	 
	28.9	 	Supervening legislation
	 
	 	 	Any present or future legislation which operates to vary the obligations of the
Performing Subsidiary in connection with this deed with the result that the Beneficiaries’
rights, powers or remedies are adversely affected (including by way of delay or
postponement) is excluded except to the extent that its exclusion is prohibited or
rendered ineffective by law.
	 
	28.10	 	Remedies cumulative 
	 
	 	 	The rights and remedies of each Beneficiary under this deed are in addition to
other rights and remedies given by law independently of this deed.
	 
	28.11	 	Time of the essence
	 
	 	 	Time is of the essence in this agreement in respect of an obligation of the
Performing Subsidiary to pay money.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	46

 

 

	28.12	 	Variation and waiver
	 
	 	 	Unless this deed expressly states otherwise, a provision of this deed, or right
created under it, may not be waived or varied except in writing signed by the party or
parties to be bound and with the prior written consent of each Beneficiary (or, in the
case of a group or syndicate of Beneficiaries, an agent or trustee on their behalf).
	 
	28.13	 	Confidentiality
	 
	 	 	No party to this deed, nor any Beneficiary, may disclose information provided by
any party or Beneficiary that is not publicly available (including the existence of or
contents of this deed or any Finance Document) except:

	 	(a)	 	to any person in connection with an exercise of rights or (subject to
compliance with clause 26 (“Dealings”)) a dealing with rights or obligations under
this deed (including when a Beneficiary consults other Beneficiaries in connection
with preparatory steps such as negotiating with any potential assignee or potential
sub-participant or other person who is considering contracting with the Beneficiary
in connection with a Finance Document); or
	 
	 	(b)	 	to officers, employees, legal and other advisers and auditors of any party
to this deed or any Beneficiary, provided the recipient agrees to act consistently
with this clause 28.13; or
	 
	 	(c)	 	to any party to a Finance Document or any Related Entity of any party to a
Finance Document, provided the recipient agrees to act consistently with this clause
28.13; or
	 
	 	(d)	 	with the consent of the party who provided the information (such consent
not to be unreasonably withheld); or
	 
	 	(e)	 	as required by any law or stock exchange or any Government Agency.

	 	 	Each party to this deed and each Beneficiary is taken to consent to disclosures made in
accordance with this clause 28.13.
	 
	28.14	 	Further steps
	 
	 	 	The Performing Subsidiary and each Beneficiary agrees to do anything reasonably
required by the Undertaking and Guarantee Trustee (such as obtaining consents, signing and
producing documents, producing receipts and getting documents completed and signed):

	 	(a)	 	to enable the Undertaking and Guarantee Trustee to perform its duties under
this deed;
	 
	 	(b)	 	to enable the Beneficiaries or the Undertaking and Guarantee Trustee to
exercise their rights in connection with this deed; and
	 
	 	(c)	 	(in the case of the Performing Subsidiary) to show whether it is complying
with this deed.

	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	47

 

 

	28.15	 	Counterparts
	 
	 	 	This deed may consist of a number of copies, each signed by one or more parties to
the deed. If so, the signed copies are treated as making up the one document.
	 
	28.16	 	Governing law
	 
	 	 	This deed is governed by the law in force in New South Wales. Each of the
Undertaking and Guarantee Trustee, the Performing Subsidiary and the Beneficiaries submit
to the non-exclusive jurisdiction of the courts of New South Wales.
	 
	28.17	 	Serving documents
	 
	 	 	Without preventing any other method of service, any document in a court action may
be served on a party by being delivered or left at that party’s address for service of
notices under clause 27.3 (“Delivery”).

EXECUTED as a deed

 
	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	48

 

 

James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Schedule 1(A) — Form of Beneficiary Nomination Letter (clause 2)

[Date]

To: [Beneficiary]

James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed — Beneficiary Nomination Letter

We refer to the James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed
between James Hardie 117 Pty Limited and AET Structured Finance Services Pty Limited (as
Undertaking and Guarantee Trustee) dated [          ] 2006 (“Performing Subsidiary Undertaking
and Guarantee Trust Deed”).

For the purposes of the Performing Subsidiary Undertaking and Guarantee Trust Deed, on and from the
date of this letter:

	1.	 	we nominate the following document as a Finance Document:

	 	 	 	 	 	 	 

	 

	 	 Name:
	 	[ ]
	 	 
	 

	 	 Date:
	 	[ ]	 	 
	 

	 	 Parties:
	 	[ ]	 	 

	2.	 	the agreement described above, and each document named or referred to as a [“Financing
Document”] in that agreement, is a Finance Document for the purposes of the Performing
Subsidiary Undertaking and Guarantee Trust Deed; and
	 
	3.	 	we nominate you as a “Beneficiary” in relation to that Finance Document.

Please confirm your acceptance of the above nomination, and the benefit and obligations of the
Performing Subsidiary Undertaking and Guarantee Trust Deed, by signing and returning the attached
copy of this letter.

Clauses 1 (“Interpretation”) and 28.16 (“Governing law”) of the Performing Subsidiary Undertaking
and Guarantee Trust Deed apply to this letter as they were fully set out in this letter.

For and on behalf of

James Hardie 117 Pty Limited.

by its Authorised Officer:

Name:

Title:

 
	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	49

 

 

We accept and agree to the above nomination. We accept the benefit and obligations of the
Performing Subsidiary Undertaking and Guarantee Trust Deed, and we agree to be bound by the terms
of that deed.

For and on behalf of

[Insert name of Beneficiary]

by its Authorised Officer

Name:

Title:

The Undertaking and Guarantee Trustee confirms that it holds the benefit of this nomination and the
other documents described in clause 5.1(a) of the Performing Subsidiary Undertaking and Guarantee
Trust Deed on trust for the Beneficiary in accordance with the terms of the Performing Subsidiary
Undertaking and Guarantee Trust Deed.

For and on behalf of

AET STRUCTURED FINANCE SERVICES PTY LIMITED

as Undertaking and Guarantee Trustee

by its Authorised Officer

Name:

Title:

 
	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
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James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Schedule 1(B) — Form of Beneficiary Change Notification (clause 9.1(b))

[Date]

To: [Undertaking and Guarantee Trustee]

James Hardie — Performing Subsidiary Undertaking Trust Deed — Beneficiary Nomination Letter

We refer to the James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed between
James Hardie 117 Pty Limited and AET Structured Finance Services Pty Limited (as Undertaking and
Guarantee Trustee) dated [          ] 2006 (“Performing Subsidiary Undertaking and Guarantee
Trust Deed”).

For the purposes of clause 9.1(b) of the Performing Subsidiary Undertaking and Guarantee Trust
Deed, we notify you that:

[insert amended details for the purposes of clause 8.2].

Clauses 1 (“Interpretation”) and 28.16 (“Governing law”) of the Performing Subsidiary Undertaking
and Guarantee Trust Deed apply to this letter as they were fully set out in this letter.

For and on behalf of

[Insert name of Beneficiary]

by its Authorised Officer

Name:

Title:

 
	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	51

 

 

James Hardie — Performing Subsidiary
Undertaking and Guarantee Trust Deed

Signing page

DATED: 19 December 2006

	 	 	 	 	 	 	 	 	 

	Executed by JAMES HARDIE 117

	 	 	)	 	 	 	 	 
	PTY LIMITED by authority of its

	 	 	)	 	 	 	 	 
	directors in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 
	/s/ Bruce J. W. Potts
	 	 	 	 	 	 	 	 
	 

Signature of authorised person

	 	 	 	 	 	 /s/
Donald A. J. Salter
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature of authorised person	 	 
	Director
	 	 	 	 	 	Director	 	 
	 

Office held

	 	 	 	 	 	Office held	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 		 	 
	Bruce J. W. Potts
	 	 	 	 	 	 	 	 
	 

Name of authorised person

	 	 	 	 	 	 Donald
A. J. Salter	 	 
	 

	 	 	 	 	 	 	 	 
	(block letters)

	 	 	 	 	 	Name of authorised person	 	 
	 

	 	 	 	 	 	(block letters)	 	 
	 
	 	 	 	 	 	 	 	 
	THE COMMON SEAL of AET

	 	 	)	 	 	 	 	 
	STRUCTURED FINANCE

	 	 	)	 	 	 	 	 
	SERVICES PTY LIMITED is duly

	 	 	)	 	 	 	 	 
	affixed by authority of its Authorised

	 	 	)	 	 	 	 	 
	Officers in the presence of:

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Stuart Howard

	 	 	 	 	 	/s/ Yvonne Drake	 	 
	 

	 	 	 	 	 	 	 	 
	Signature of authorised person

	 	 	 	 	 	Signature of authorised person	 	 
	 
	 	 	 	 	 	 	 	 
	Authorised Officer

	 	 	 	 	 	Authorised Officer	 	 
	 

	 	 	 	 	 	 	 	 
	Office held

	 	 	 	 	 	Office held	 	 
	 
	 	 	 	 	 	 	 	 
	Stuart Alexander Howard

	 	 	 	 	 	Yvonne Drake	 	 
	 

	 	 	 	 	 	 	 	 
	Name of authorised person

	 	 	 	 	 	Name of authorised person	 	 
	(block letters)

	 	 	 	 	 	(block letters)	 	 

 
	 	 	 	 	 

	 
	© Mallesons Stephen Jaques

8351255_10
	 	James Hardie — Performing Subsidiary Undertaking and Guarantee Trust Deed

12 December 2006
	 	52exv10w34

Exhibit 10.34

INTERCREDITOR DEED

THE STATE OF NEW SOUTH WALES

ASBESTOS INJURIES

COMPENSATION FUND LIMITED

(ACN 117 363 461)

JAMES HARDIE INDUSTRIES N.V.

(ARBN 097 829 895)

AET STRUCTURED FINANCE

SERVICES PTY LIMITED (ABN 12 106
424 088)

2 Park Street      Sydney       NSW 2000       Australia

email@gtlaw.com.au       www.gtlaw.com.au      
Telephone + 61 2 9263 4000       Facsimile + 61 2 9263 4111

 

 

CONTENTS

	 	 	 	 	 

	1. PRELIMINARY
	 	 	3	 
	1.1 Defined Terms and Interpretation
	 	 	3	 
	1.2 Consideration
	 	 	4	 
	1.3 Crown immunity
	 	 	4	 
	1.4 Condition precedent
	 	 	4	 
	 
	2. DEED
	 	 	4	 
	2.1 Effect
	 	 	4	 
	2.2 Benefit
	 	 	5	 
	2.3 Inconsistency
	 	 	7	 
	 
	3. INTERCREDITOR ARRANGEMENTS
	 	 	7	 
	3.1 Purpose of this deed
	 	 	7	 
	3.2 NSW Government not a creditor of JHINV
	 	 	7	 
	3.3 Turnover
	 	 	8	 
	3.4 Status and ranking of the Compensation Debt
	 	 	8	 
	 
	4. PROCEDURE ON INSOLVENCY
	 	 	8	 
	4.1 Proceeds held on trust
	 	 	8	 
	4.2 Distribution of Proceeds
	 	 	9	 
	4.3 Payment of amounts recovered
	 	 	9	 
	4.4 Residual Rights
	 	 	10	 
	4.5 No exercise of Financiers’ rights
	 	 	10	 
	4.6 Substitution of the Fund Trustee
	 	 	11	 
	4.7 Additional Rights
	 	 	11	 
	 
	5. RIGHTS IN RELATION TO THE COMPENSATION DEBT
	 	 	12	 
	5.1 No prohibition
	 	 	12	 
	5.2 NSW Government Enforcement Rights
	 	 	13	 
	 
	6. COVENANTS
	 	 	15	 
	6.1 Restriction on dealings
	 	 	15	 

			
	 	 	 
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	6.2 No security
	 	 	15	 
	 
	7. GUARANTEE TRUSTEE
	 	 	16	 
	7.1 Appointment and removal
	 	 	16	 
	7.2 Sole Representative
	 	 	16	 
	7.3 Acknowledgement by the Fund Trustee and the NSW Government
	 	 	17	 
	7.4 No Guarantee Trustee
	 	 	17	 
	7.5 Acknowledgement by the Guarantee Trustee
	 	 	17	 
	7.6 Substitution of the Guarantee Trustee
	 	 	18	 
	7.7 Standard of Duty
	 	 	19	 
	7.8 Functions, duties and obligations of the Guarantee Trustee
	 	 	19	 
	 
	8. VOTING IN INSOLVENCY PROCEEDINGS
	 	 	23	 
	8.1 Irrevocable Appointment of Attorney
	 	 	23	 
	8.2 Voting
	 	 	25	 
	8.3 Appointment of an Independent Expert
	 	 	27	 
	8.4 Role of the Independent Expert
	 	 	30	 
	8.5 Notice of determination by the Independent Expert
	 	 	32	 
	8.6 Assistance to the Independent Expert
	 	 	32	 
	8.7 Determination by the Independent Expert final
	 	 	32	 
	8.8 Consent of NSW Government required in certain circumstances
	 	 	32	 
	8.9 Options providing for a return to shareholders of JHINV
	 	 	33	 
	8.10 Defaulting or absent Guarantee Trustee
	 	 	34	 
	8.11 Residual Power
	 	 	34	 
	 
	9. CHANGES TO RIGHTS
	 	 	35	 
	9.1 Rights of the Financiers are protected
	 	 	35	 
	9.2 Payments
	 	 	37	 
	9.3 Reinstatement of rights
	 	 	37	 
	9.4 Set-off
	 	 	37	 
	9.5 Discretion in exercising rights
	 	 	37	 

			
	 	 	 
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	9.6 Partial exercising of rights
	 	 	38	 
	9.7 Remedies cumulative
	 	 	38	 
	9.8 Variation and waiver
	 	 	38	 
	 
	10. INCONSISTENT LAW
	 	 	38	 
	10.1 Inconsistent law
	 	 	38	 
	10.2 Supervening legislation
	 	 	38	 
	 
	11. NOTICES
	 	 	38	 
	 
	12. GOVERNING LAW AND JURISDICTION
	 	 	41	 
	12.1 Governing law
	 	 	41	 
	12.2 Submission to jurisdiction
	 	 	41	 
	12.3 Service
	 	 	41	 
	 
	13. COUNTERPARTS
	 	 	41	 
	 
	14. GENERAL
	 	 	41	 
	14.1 Severability
	 	 	41	 
	14.2 No waiver
	 	 	42	 
	14.3 Further assurances
	 	 	42	 
	14.4 Entire agreement
	 	 	42	 
	14.5 Cumulative rights
	 	 	42	 
	14.6 Certificates
	 	 	43	 
	14.7 Amendment of this deed
	 	 	43	 
	14.8 Confidentiality
	 	 	43	 
	 
	15. GUARANTEE TRUSTEE LIMITATION OF LIABILITY
	 	 	44	 
	15.1 Limitation of liability
	 	 	44	 
	15.2 Guarantee Trustee’s knowledge
	 	 	45	 
	15.3 Reliance on notices
	 	 	45	 
	 
	SCHEDULE 1 — FINANCIER NOMINATION LETTER
	 	 	49	 
	 
	SCHEDULE 2 — ACCESSION DEED
	 	 	52	 
	 
	SCHEDULE 3 — FORM OF POWER OF ATTORNEY
	 	 	53	 

			
	 	 	 
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	1. APPOINTMENT
	 	 	53	 
	 
	2. WHAT THE APPOINTER MAY DO
	 	 	53	 
	 
	3. GENERAL
	 	 	54	 
	3.1 Attorney’s acts valid
	 	 	54	 
	3.2 Benefit to the Attorney
	 	 	54	 
	3.3 Governing law
	 	 	54	 
	 
	4. COMPLIANCE WITH INTERCREDITOR DEED
	 	 	54	 
	 
	5. INTERPRETATION
	 	 	55	 
	 
	ATTACHMENT A — DICTIONARY AND INTERPRETATION
	 	 	56	 

			
	 	 	 
	8697428_7
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DATED 19 December 2006

PARTIES

	1.	 	THE STATE OF NEW SOUTH WALES of Level 39, Governor Macquarie Tower, Farrer Place,
Sydney, NSW 2000 (NSW Government)
	 
	2.	 	ASBESTOS INJURIES COMPENSATION FUND LIMITED (ACN 117 363 461) of Level 3, 22 Pitt
Street, Sydney, NSW 2000 in its capacity as trustee for the Charitable Fund (Fund
Trustee)
	 
	3.	 	JAMES HARDIE INDUSTRIES N.V. (ARBN 097 829 895) a limited liability company
incorporated in The Netherlands, with its corporate seat in Amsterdam, and having its
registered office at Atrium, Unit 04-07, Strawinskylaan 3077, 1077 ZX Amsterdam, The
Netherlands (with its Australian registered office at Level 3, 22 Pitt Street, Sydney in the
State of New South Wales) (JHINV)
	 
	4.	 	AET STRUCTURED FINANCE SERVICES PTY LIMITED (ABN 12 106 424 088) of 80
Alfred Street, Milsons Point NSW 2061 in its capacity as trustee for the Financiers under
the Guarantee Trust (Guarantee Trustee)

The defined terms in the above list of parties are given expanded meanings in the Dictionary
in Part 1 of Attachment A to this deed.

BACKGROUND

This deed is entered into in the following context (where capitalised terms are defined in
clause 1):

	A.	 	James Hardie Industries Limited (now known as ABN 60 Pty Limited)
(JHIL), a company organised under the laws of Australia, was listed on the
Australian Stock Exchange in 1951. The business then carried on by JHIL and its subsidiaries
had by that time been carried on in Australia, in one form or another and under the “James
Hardie” name, for at least 60 years.
	 
	B.	 	Under plans of reorganisation and capital restructuring executed between 1998 and
2001, JHIL sold on arm’s length terms substantially all of its business, operations and
undertaking to members of the JHINV Group with the result that

			
	 	 	 
	8697428_7
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	 	 	JHINV became the ultimate holding company of the businesses formerly carried on or
controlled by JHIL.
	 
	C.	 	JHINV is a company organised under the laws of The Netherlands and is listed on
both the Australian Stock Exchange and the New York Stock Exchange (with the listing on the
latter exchange via American Depository Receipts). At the date of this deed, the JHINV Group
carries on the business of manufacturing building products in the United States of America,
Australia, New Zealand and the Philippines.
	 
	D.	 	On 21 December 2004, JHINV and others entered into a non-binding Heads of Agreement
containing, among other things, a set of agreed principles on which the Performing Subsidiary
will provide, and JHINV will guarantee the payment of, funding to the Charitable Fund on a
long term basis of compensation for personal injury and death claims made in Australia against
JHIL or certain former subsidiaries of JHIL arising from exposure to asbestos in Australia.
	 
	E.	 	On 1 December 2005 the NSW Government, JHINV and the Performing Subsidiary entered
into the Original Final Funding Agreement with the common intention of making funding
available by JHINV and/or its subsidiaries to pay, on the basis set out in the Original Final
Funding Agreement, Proven Claims (as defined in the Original Final Funding Agreement) against
the Liable Entities (as defined in the Original Final Funding Agreement).
	 
	F.	 	On 8 June 2006 the Fund Trustee executed a Deed of Accession so as to become a
party to the Original Final Funding Agreement and to give effect to the intention and
agreement of the relevant parties referred to in paragraph E above.
	 
	G.	 	On 21 November 2006 the parties to the Original Final Funding Agreement (including
the Fund Trustee) entered into Final Funding Agreement, thereby amending and restating the
Original Final Funding Agreement.
	 
	H.	 	On or about 14 December 2006 Asbestos Injuries Compensation Fund Limited entered
into the Trust Deed and on or about 14 December 2006 in its capacity as trustee of the
Discretionary Fund became a party to the Final Funding Agreement by executing a Deed of
Accession.
	 
	I.	 	JHINV has guaranteed the obligations of the Performing Subsidiary under the Final
Funding Agreement on and subject to the terms of the Guarantee.

			
	 	 	 
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	J.	 	The creditor of JHINV under the Guarantee is the Fund Trustee.
	 
	K.	 	The claim of the Fund Trustee against JHINV under the Guarantee is an ordinary
unsecured claim (concurrente vordering).
	 
	L.	 	The NSW Government is not a creditor of JHINV in relation to the payment of the
Compensation Debt.
	 
	M.	 	However, the NSW Government shall be entitled to directly enforce all promises made
by JHINV to the Fund Trustee under the Guarantee subject to, and in accordance with, the
provisions of the Guarantee.
	 
	N.	 	The purpose of this deed is to set out the agreement between (1) the Fund Trustee
and the NSW Government, and (2) the Guarantee Trustee and the Financiers, as to the manner in
which certain rights in respect of the Compensation Debt and the Finance Money Debt
respectively are to be exercised in an Insolvency of JHINV.
	 
	O.	 	JHINV is a party to this deed for the sole purpose of nominating Persons as
Financiers, assuming certain obligations and being entitled to directly enforce the promises
made under clauses 2.2 and 8 of this deed (and, if required for such enforcement, clauses 1,
2.1, 2.3 and 10 to 14 inclusive).
	 
	P.	 	This deed is not intended, and shall not be taken, to (1) affect the status or
ranking of the Compensation Debt as an ordinary unsecured claim (concurrente vordering)
against JHINV, (2) affect the status or ranking of the Compensation Debt as against the other
debts (including the Finance Debt Money) or the other creditors of JHINV (including the
Financiers) in an Insolvency of JHINV, or (3) constitute a subordination agreement within the
meaning of section 3:277 (2) Dutch Civil Code.

THE PARTIES AGREE

	1.	 	PRELIMINARY
	 
	1.1	 	Defined Terms and Interpretation

			
	 	 	 
	8697428_7
	 	Page 3

 

 

	(a)	 	A term or expression starting with a capital letter which is defined in the Dictionary
in Part 1 of Attachment A (Dictionary), has the meaning given to it in the
Dictionary.
	 
	(b)	 	The Interpretation clauses in Parts 2 and 3 of Attachment A (Interpretation and
Trust Convention) set out rules of interpretation for this deed.
	 
	1.2	 	Consideration

Each party acknowledges entering into this deed and incurring obligations and giving rights
under this deed for valuable consideration received from the other parties to this deed (including,
in the case of the Fund Trustee, the NSW Government and JHINV, the execution of the Final Funding
Agreement and the Guarantee).

Each Replacement Trustee or New Guarantee Trustee who accedes to this deed in accordance with
clause 4.6 or 7.6 will be taken to acknowledge becoming a party to this deed and incurring
obligations and giving rights under this deed for valuable consideration received from the other
parties to this deed.

	1.3	 	Crown immunity

This deed binds the Crown in right of New South Wales and to the maximum extent permitted by
law the NSW Government hereby waives all Crown immunity with respect to this deed.

	1.4	 	Condition precedent

Notwithstanding any other provision of this deed, the provisions of, and the obligations of
the parties under, this deed are subject to, and do not commence until, each of the conditions set
out in clause 2.1 of the Final Funding Agreement have been satisfied or waived in writing by the
parties to the Final Funding Agreement.

	2.	 	DEED
	 
	2.1	 	Effect

Subject to clauses 2.3, 4.6 and 7.6, this deed takes effect as both:

	(a)	 	a deed between the NSW Government, the Fund Trustee, JHINV and the Guarantee Trustee; and

			
	 	 	 
	8697428_7
	 	Page 4

 

 

	(b)	 	a deed poll by the NSW Government and the Fund Trustee in favour of each Financier from time
to time in respect of any Finance Money Debt raised or incurred by JHINV from time to time
during the term of the Final Funding Agreement.

For the avoidance of doubt:

	 	(i)	 	this deed continues for the term of the Final Funding Agreement even though
there may be no Finance Money Debt outstanding at any particular point in time;
	 
	 	(ii)	 	this deed terminates on the date upon which the obligations of JHINV under
the Guarantee have been satisfied or discharged in full in accordance with the
Guarantee; and
	 
	 	(iii)	 	undertakings expressed to be in favour of some of the parties to this deed
(excluding JHINV) are not given in favour of JHINV, although JHINV is entitled to
directly enforce the promises made under clauses 2.2 and 8 of this deed (and, if
required for such enforcement, clauses 1, 2.1, 2.3 and 10 to 14 inclusive).

	2.2	 	Benefit

	(a)	 	Each Financier has the benefit of, is bound by and is entitled to enforce this deed even
though it is not a party to, or is not in existence at the date of execution and delivery of
this deed.
	 
	(b)	 	Subject to clause 2.2(f), the benefit and obligations of this deed may be extended to any
Person (and such Person shall become a Financier) in relation to any document (and such
document shall become a Finance Document) under which liabilities are owed to such Person
where such liabilities are, or are required to be, included in the JHINV Group’s financial
statements or notes thereto as debt or borrowings (including bank loans, letter of credit
facilities, derivatives and debt capital markets issues which are, or are required to be, so
included or noted) of JHINV (or another member of the JHINV Group the performance of whose
obligations has been guaranteed by JHINV) by JHINV signing and delivering to that Person (or
an agent or trustee acting on behalf of that Person) and the Guarantee Trustee, a Financier
Nomination Letter and the Person (or an agent or trustee acting on behalf of the Person)
countersigning such Financier Nomination

			
	 	 	 
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	 	 	Letter and delivering the countersigned Financier Nomination Letter to the Guarantee
Trustee.
	 
	(c)	 	Without limiting clause 2.2(b), the benefits and obligations of this deed do not extend to a
Person:

	 	(i)	 	by reason of any conduct or representation made by JHINV to that Person; and
	 
	 	(ii)	 	unless and until the Guarantee Trustee has received a duly countersigned
Financier Nomination Letter from that Person (or an agent or trustee acting on behalf
of the Person).

	(d)	 	The Guarantee Trustee must:

	 	(i)	 	promptly send a copy of each countersigned Financier Nomination Letter to the
NSW Government and the Fund Trustee (other than a Financier Nomination Letter in
respect of a Financier where this deed has ceased to apply to that Financier in
accordance with clause 2.2(g)) upon an officer of the Guarantee Trustee responsible
for the day to day administration of this deed becoming aware of the occurrence of an
Insolvency of JHINV; and
	 
	 	(ii)	 	following the occurrence of an Insolvency of JHINV, on request provide to the
NSW Government and the Fund Trustee written confirmation of the nature and quantum of
the Finance Money Debt as at the date such information is provided.

	(e)	 	The Fund Trustee and the NSW Government confirm that, subject to clause 2.2(f), each of them
has irrevocably and for valuable consideration authorised JHINV to sign and deliver any
Financier Nomination Letter, nominating a Person as a Financier and a document as a Finance
Document, and acknowledge and confirm that the provisions of this deed which are for the
benefit of the Financiers, will extend to that Financier and the Finance Document so
nominated.
	 
	(f)	 	The benefit and obligations of this deed in relation to Financiers may not be extended to any
Person to the extent that Person is an Excluded Lender and any such nomination shall be of no
force or effect for the purposes of this deed.

			
	 	 	 
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	(g)	 	This deed shall cease to apply to a Financier once:

	 	(i)	 	there is no Finance Money Debt in respect of that Financier;
	 
	 	(ii)	 	JHINV has no outstanding obligations to the Financier in relation to any
Finance Money Debt; and
	 
	 	(iii)	 	that Financier has no further obligation to provide financial accommodation
to JHINV (or another member of the JHINV Group the performance of whose obligations
has been guaranteed by JHINV) under the relevant Finance Documents,

		 	or that Financier otherwise consents in writing to such cessation.
	 
	(h)	 	If this deed ceases to apply to a Financier in accordance with clause 2.2(g), JHINV and that
Financier must promptly notify the Guarantee Trustee.

	2.3	 	Inconsistency

If any provision of the Final Funding Agreement, any Related Agreement (as defined in the
Final Funding Agreement, but excluding this deed), the Guarantee, the Finance Guarantee or any
Finance Document is inconsistent with this deed, this deed prevails to the extent of the
inconsistency unless a contrary intention is expressed in this deed.

	3.	 	INTERCREDITOR ARRANGEMENTS
	 
	3.1	 	Purpose of this deed

The purpose of this deed is to set out the agreement between:

	(a)	 	the Fund Trustee and the NSW Government; and
	 
	(b)	 	the Guarantee Trustee and the Financiers,

as to the manner in which certain rights in respect of the Compensation Debt and the Finance Money
Debt respectively are to be exercised in an Insolvency of JHINV.

	3.2	 	NSW Government not a creditor of JHINV

Notwithstanding the wording of any other provision of the Final Funding Agreement, the
Guarantee, any other Related Agreement or this deed, the NSW Government

			
	 	 	 
	8697428_7
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acknowledges that it is not a creditor of JHINV in relation to the payment of the Compensation
Debt.

	3.3	 	Turnover

Each Compensation Party agrees for the benefit of the Guarantee Trustee and the Financiers
that if JHINV becomes Insolvent, any amount (in the form of money or other property) paid to it by
or for the account of, or recovered by it from or for the account of, JHINV in respect of the
Compensation Debt, after the occurrence of the relevant Insolvency Event, will be paid, or
otherwise accounted for, to the Guarantee Trustee or the relevant Financiers in accordance with
this deed, until the Finance Money Debt has been paid and satisfied in full.

	3.4	 	Status and ranking of the Compensation Debt

The parties to this deed acknowledge and agree that this deed does not:

	(a)	 	affect the status or ranking of the Compensation Debt as an ordinary unsecured claim
(concurrente vordering) against JHINV;
	 
	(b)	 	affect the status or ranking of the Compensation Debt as against the other debts (including
the Finance Money Debt) or the other creditors of JHINV (including the Financiers) in an
Insolvency of JHINV; nor
	 
	(c)	 	constitute a subordination agreement within the meaning of section 3:277 (2) Dutch Civil
Code.

	4.	 	PROCEDURE ON INSOLVENCY
	 
	4.1	 	Proceeds held on trust

Subject to this deed, while JHINV is Insolvent and for so long as any Finance Money Debt
remains outstanding, each Compensation Party agrees for the benefit of the Guarantee Trustee and
the Financiers to hold all Proceeds received by it from or on account of JHINV (or such proportion
of the Proceeds sufficient to discharge and satisfy the Finance Money Debt in full) on trust for
the relevant Financiers.

For so long as any Finance Money Debt remains outstanding, then promptly after receipt by it of any
Proceeds from or on account of JHINV, each Compensation Party agrees for the benefit of the
Guarantee Trustee and the Financiers to notify the Guarantee Trustee and deposit the Proceeds (or
such proportion of the Proceeds sufficient to discharge and satisfy the Finance Money Debt in full)
into one or more accounts specifically designated

			
	 	 	 
	8697428_7
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by the Guarantee Trustee for that purpose (or, in the case of any Proceeds which consist of
property other than money, transfer such property to the Guarantee Trustee).

This clause establishes a trust over the Proceeds. The trust commences on the date of this deed
and if not previously terminated, terminates on the day before the eightieth anniversary of the
date of this deed. It does not create a charge or other security interest over the Proceeds.

	4.2	 	Distribution of Proceeds

Each Compensation Party agrees for the benefit of the Guarantee Trustee and the Financiers
that all Proceeds received by it from or on account of JHINV are to be held and distributed:

	(a)	 	first, to the Guarantee Trustee on account of the Finance Money Debt which remains owing by
JHINV to the Financiers, after all payments received from, or due and payable under the
Insolvency by, the Insolvency Official and all prior payments under this clause 4.2(a), if
any, have been taken into account (“Net Finance Money Debt”);
	 
	(b)	 	secondly, to the extent of any balance after repayment of the Net Finance Money Debt owed by
JHINV to the Financiers in full, to the Fund Trustee to satisfy the Compensation Debt; and
	 
	(c)	 	thirdly, to the extent of any balance after repayment of the Compensation Debt in full, to
JHINV (for its own account).

	4.3	 	Payment of amounts recovered

Subject to the provisions of this clause 4.3, each Compensation Party agrees for the benefit
of the Guarantee Trustee and the Financiers that, if at any time while JHINV is Insolvent an amount
(in the form of money or any other property):

	(a)	 	is received or recovered by a Compensation Party on account of the Compensation Debt (which
is not subject to the trust in clause 4.1); or
	 
	(b)	 	is paid to any Person other than a Compensation Party in connection with the Compensation
Debt with the consent or at the request of a Compensation Party or for the benefit of a
Compensation Party; or
	 
	(c)	 	is set off by a Compensation Party against the Compensation Debt (whether by operation of law
or otherwise),

			
	 	 	 
	8697428_7
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the Compensation Party agrees for the benefit of the Guarantee Trustee and the Financiers to
promptly notify the Guarantee Trustee and pay into one or more accounts specifically designated by
the Guarantee Trustee for that purpose the amount (or, in the case of any Proceeds which consists
of property other than money, transfer such property to the Guarantee Trustee) received, recovered,
paid or set off (or such proportion of the amount or other property sufficient to discharge and
satisfy the Finance Money Debt in full).

If in an Insolvency of JHINV, a Compensation Party is required to refund, repay or otherwise
disgorge to, or in favour of, JHINV all or any part of an Annual Payment received prior to the
occurrence of the relevant Insolvency Event (otherwise than pursuant to clause 14.9(b) of the Final
Funding Agreement as the result of any overpayment of that Annual Payment), this clause 4.3 does
not apply if that amount is set off against another amount owed by JHINV to that Compensation Party
and no payment is required by that Compensation Party pursuant to this clause 4.3 in respect of the
amount set off.

	4.4	 	Residual Rights

If at any time subsequent to the occurrence of an Insolvency Event in respect of JHINV, the
Financiers have received, whether by way of distribution by the Insolvency Official in the
Insolvency, as payments to the Guarantee Trustee under clause 4 or otherwise, an amount at least
equal to the amount (in the form of money or any other property) of the Finance Money Debt, the
Financiers agree for the benefit of the Fund Trustee and the NSW Government that the Financiers
must:

	(a)	 	not withdraw, waive, release, compromise or deal in any way with their remaining rights in
the Insolvency in relation to the Finance Money Debt (Residual Rights);
	 
	(b)	 	until the Compensation Debt has been discharged and satisfied in full, do anything reasonably
required by the NSW Government (at the cost of the NSW Government) to assign or otherwise
transfer their Residual Rights to the Fund Trustee or to enable the Fund Trustee to be
subrogated to, or otherwise enjoy the benefit of, the Residual Rights; and
	 
	(c)	 	pay any money and/or any other property received pursuant to the Residual Rights to the Fund
Trustee.

	4.5	 	No exercise of Financiers’ rights

			
	 	 	 
	8697428_7
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As long as any of the Finance Money Debt remains outstanding, each Compensation Party and
the NSW Government agree for the benefit of the Guarantee Trustee and the Financiers that such
party may not, without the prior written consent of the Guarantee Trustee, exercise any right to
claim to be entitled to the benefit of any of the rights of some or all of the Financiers
(including the benefit of any Residual Rights or any Security Interest or guarantee, indemnity or
assurance against financial loss) in respect of any Finance Money Debt.

In addition, if a Replacement Trustee has been appointed or nominated, but not yet executed and
delivered an Accession Deed (and a power of attorney as required by clause 8.1(b)) in accordance
with clause 4.6, the NSW Government agrees for the benefit of the Guarantee Trustee and the
Financiers to ensure that, as long as any of the Finance Money Debt remains outstanding, the
Replacement Trustee does not exercise or seek to exercise any right to claim to be entitled to the
benefit of any of the rights of some or all of the Financiers (including the benefit of any
Residual Rights or any Security Interest or guarantee, indemnity or assurance against financial
loss) in respect of any Finance Money Debt.

	4.6	 	Substitution of the Fund Trustee

If a Replacement Trustee is appointed in accordance with the Final Funding Agreement then
the NSW Government must:

	(a)	 	promptly notify the Guarantee Trustee of the appointment and the identity and contact details
of the Replacement Trustee; and
	 
	(b)	 	procure, at its own expense, that the Replacement Trustee duly executes and delivers an
Accession Deed (and a power of attorney as required by clause 8.1(b)) to each party to this
deed.

A Replacement Trustee acquires no rights or benefits under this deed (either in its capacity as
such or as successor to the Fund Trustee) until such time as an Accession Deed (and a power of
attorney as required by clause 8.1(b)) has been duly executed by the Replacement Trustee and
delivered to each party to this deed. This clause does not require such documents to be delivered
to a Financier.

The NSW Government shall ensure that the Replacement Trustee is incorporated in the State of New
South Wales.

	4.7	 	Additional Rights

	(a)	 	If in connection with an Insolvency of JHINV a Compensation Party is required to
disgorge or unwind all or part of the recovery of receipt of Proceeds or any

			
	 	 	 
	8697428_7
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		 	other amounts (in the form of money or other property) received by it from, or on account
of, JHINV and which have been paid to the Guarantee Trustee or a Financier in accordance
with this clause 4, the Guarantee Trustee or the relevant Financier (as the case may be),
must promptly, following a request from the relevant Compensation Party, repay to the
relevant Compensation Party the amounts (or other property) so received by it from that
Compensation Party.
	 
	(b)	 	If in connection with an Insolvency of JHINV the Guarantee Trustee or a Financier is required
to disgorge or unwind all or part of the recovery of any money and/or any other property
received pursuant to the Residual Rights and which have been paid to the Fund Trustee in
accordance with clause 4.4(c), the Fund Trustee, must promptly, following a request from the
Guarantee Trustee or the relevant Financier (as the case may be), repay to the Guarantee
Trustee or the relevant Financier (as the case may be), the amounts (or other property) so
received by it in accordance with clause 4.4(c).

	5.	 	RIGHTS IN RELATION TO THE COMPENSATION DEBT
	 
	5.1	 	No prohibition

Subject to the provisions of clauses 3.3, 4.1, 4.2, 4.5, 6 and 8 of this deed, no
Compensation Party nor the NSW Government is prohibited by this deed from, or restricted in
exercising all or any of its rights under the Final Funding Agreement or the Guarantee in relation
to the obligations and liabilities of JHINV, whether before or after the occurrence of an
Insolvency Event in respect of JHINV.

Without limiting the generality of the foregoing,
but subject to the provisions of clauses 3.3, 4.1, 4.2, 4.5, 6 and 8 of this deed, a Compensation Party and the NSW Government (but only to the
extent it is entitled to do so acting in accordance with the Final Funding Agreement and applicable
law) may:

	(a)	 	make demand for, commence proceedings in relation to, enforce any judgment in relation to and
compromise or settle any claim in relation to all such obligations and liabilities;
	 
	(b)	 	seek or obtain from any court of competent jurisdiction at any time an order directing JHINV
to make any payment under or to specifically perform its obligations under the Final Funding
Agreement or the Guarantee, or similar equitable relief;

			
	 	 	 
	8697428_7
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	(c)	 	make application to any court of competent jurisdiction for the winding up of, or in relation
to the Insolvency, of JHINV;
	 
	(d)	 	be present and vote at any meeting of creditors or other meeting which it is entitled to
attend concerning any proposal relating to JHINV or at any meeting relating to the Insolvency
of JHINV;
	 
	(e)	 	individually make submissions to an Insolvency Official in connection with any Insolvency of
JHINV;
	 
	(f)	 	prove the Compensation Debt in any Insolvency of JHINV; and
	 
	(g)	 	participate in any proceedings relating to its right to vote and prove or otherwise
participate in any meeting, proceeding or distribution concerning the Insolvency of JHINV.
	 
	5.2	 	NSW Government Enforcement Rights
	 
	(a)	 	Any action or the enforcement of any rights of a Compensation Party under this deed in
the event of an Insolvency of JHINV may only be taken by the NSW Government, unless the NSW
Government otherwise consents in writing to the Fund Trustee taking such action or enforcing
those rights.
	 
	 	 	For the avoidance of doubt, this clause does not preclude an Attorney exercising any rights
under a power of attorney granted pursuant to, and in accordance with, clause 8.
	 
	(b)	 	Any action taken by the NSW Government under this deed:

	 	(i)	 	shall oblige the Fund Trustee to cause any similar or inconsistent action to
be revoked, rescinded or discontinued, provided that the Fund Trustee may resume or
initiate any such action if and to the extent that the corresponding action taken by
the NSW Government is revoked or abandoned by notice in writing by the NSW Government;
and
	 
	 	(ii)	 	shall oblige the NSW Government to hold on trust for the Fund Trustee in
accordance with, and subject to, clause 4.1 any amounts (in the form of money or other
property) received or recovered under, or in respect of, the action taken.

			
	 	 	 
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	(c)	 	Where this deed requires or contemplates the consent of, or a nomination or determination by
the Fund Trustee, such consent, nomination or determination shall only be effective if
consented to by the NSW Government, and the Guarantee Trustee must not accept or act on a
notice of consent, nomination or determination, or any other direction, by the Fund Trustee,
unless such notice is accompanied by consent from the NSW Government.
	 
	(d)	 	Without limiting clauses 5.2(a) or (c), the parties acknowledge that:

	 	(i)	 	under clause 16.6(f) of the Final Funding Agreement the Fund Trustee has
agreed not to, without the prior written consent of the NSW Government, waive or
compromise all or any part of any payment (actually or contingently) due from JHINV or
the Performing Subsidiary under the Final Funding Agreement or any Related Agreement
(including this deed); and
	 
	 	(ii)	 	any such waiver or compromise by the Fund Trustee that is not accompanied by
such written consent from the NSW Government shall be invalid and has no effect on the
obligations of the parties under this deed and cannot be relied upon by the parties or
pleaded by way of estoppel or otherwise in any action or proceeding for the
enforcement of the Final Funding Agreement or any Related Agreement (including this
deed).

	(e)	 	The NSW Government acknowledges that its right to enforce this deed is subject to clause 16.6
of the Final Funding Agreement (but, in an Insolvency of JHINV, only to the extent the
provisions of that clause apply in an Insolvency of JHINV).
	 
	(f)	 	Without limiting clauses 5.2(a) or (c), the parties acknowledge that the NSW Government may
commence or institute proceedings in any jurisdiction in relation to the existence or amount
of the Compensation Debt (but, in the case of any Wind Up or Reconstruction Amount (as defined
in the Final Funding Agreement), subject to clause 10 of the Final Funding Agreement) or any
voting rights attaching thereto, or any matters incidental to determining such amount or
voting rights.

			
	 	 	 
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	6.	 	COVENANTS
	 
	6.1	 	Restriction on dealings

The Fund Trustee and the NSW Government agree for the benefit of the Guarantee Trustee and
the Financiers that such party may not assign, transfer, create a Security Interest in respect of
or otherwise create rights in respect of or deal with any of its rights under the Final Funding
Agreement, the Guarantee or this deed (including all Proceeds), or consent or agree to any of those
things, without:

	(a)	 	in the case of an assignment, a transfer, the creation of a Security Interest or other rights
or a dealing which in any case affects the nature, timing or quantum of the amount actually or
contingently payable to a Compensation Party under the Final Funding Agreement, the Guarantee
or another Related Agreement, the prior written consent of the Guarantee Trustee acting on
instructions from all or a specified majority of the Financiers as referred to in clause 7.3;
and
	 
	(b)	 	the assignee, the transferee, the holders of that Security Interest or those other rights and
all other persons having an interest in the rights of the Fund Trustee and the NSW Government
under the Final Funding Agreement, the Guarantee or this deed (including all Proceeds) as a
result of any such dealing, having agreed to be bound by the corresponding obligations of the
relevant Compensation Party or the NSW Government under the Final Funding Agreement, the
Guarantee or this deed (as the case may be).
	 
	6.2	 	No security

Each of the Fund Trustee and the NSW Government agree for the benefit of the Guarantee
Trustee and the Financiers that it may not do, or agree to do, any of the following:

	(a)	 	(set off) during the Insolvency of JHINV, exercise any right of set off in
respect of the Compensation Debt;
	 
	(b)	 	(Security Interest or guarantee) except for the Guarantee and a Cross Guarantee
(Fund Guaranteed Money), accept from JHINV or another member of the JHINV Group the benefit of
any Security Interest or guarantee, indemnity or assurance against financial loss in respect
of the Compensation Debt; or
	 
	(c)	 	(arrangements) enter into any arrangement, take any action or fail to do any
thing, which results in any Proceeds received by it from or on account of JHINV

			
	 	 	 
	8697428_7
	 	Page 15

 

 

	 	 	(or such proportion of the Proceeds sufficient to discharge and satisfy the Finance Money
Debt in full) not being held on trust for the relevant Financiers in accordance with the
terms of this deed,

without the prior written consent of the Guarantee Trustee acting on instructions from all or a
specified majority of the Financiers as referred to in clause 7.3.

If in an Insolvency of JHINV, a Compensation Party is required to refund, repay or otherwise
disgorge to, or in favour of, JHINV all or any part of an Annual Payment received prior to the
occurrence of the relevant Insolvency Event (otherwise than pursuant to clause 14.9(b) of the Final
Funding Agreement as the result of any overpayment of that Annual Payment), clause 6.2(a) does not
prohibit that amount being set off by that Compensation Party against another amount owed by JHINV
to that Compensation Party.

	7.	 	GUARANTEE TRUSTEE
	 
	7.1	 	Appointment and removal

Subject to clause 7.6, the Fund Trustee and the NSW Government:

	(a)	 	acknowledge that JHINV or the Financiers may appoint, remove and replace the Guarantee
Trustee as trustee under the Finance Guarantee (such newly appointed or replacement trustee, a
New Guarantee Trustee); and
	 
	(b)	 	agree to do anything reasonably required by JHINV, the Financiers, the outgoing Guarantee
Trustee or the New Guarantee Trustee to enable the New Guarantee Trustee to become a party to
this deed in substitution for the outgoing Guarantee Trustee.
	 
	7.2	 	Sole Representative
	 
	(a)	 	So long as a Person is acting as trustee under the Finance Guarantee, the Fund Trustee
and the NSW Government may deal exclusively with that Person in respect of all matters
concerning this deed.
	 
	(b)	 	The Financiers acknowledge and confirm that the Person acting as trustee under the Finance
Guarantee is empowered to exercise all of their rights and powers under this deed and agree
not to take any action or proceedings to set aside any act, notice or omission of the
Guarantee Trustee undertaken in accordance with this deed.

			
	 	 	 
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	7.3	 	Acknowledgement by the Fund Trustee and the NSW Government

The Fund Trustee and the NSW Government acknowledge that in exercising some or all of the
rights and powers of the Financiers under this deed (including voting on any matter in any meeting,
proceeding or distribution concerning the Insolvency of JHINV), the Guarantee Trustee may be
required to obtain instructions and/or consent from all or a specified majority of the Financiers.

If the Guarantee Trustee is so required to obtain instructions and/or consent from all or a
specified majority of the Financiers, the Guarantee Trustee must promptly request such instructions
and/or consent.

The Fund Trustee and the NSW Government are entitled to rely on any representation by the Guarantee
Trustee in relation to its instructions.

	7.4	 	No Guarantee Trustee

Subject to clause 8.10, if no Person is acting as trustee under the Finance Guarantee, then
unless a contrary intention is apparent from this deed, all references to the Guarantee Trustee in
this deed shall be taken to be references to each Financier to which this deed applies from time to
time acting severally such that each Financier may severally exercise the rights of the Guarantee
Trustee.

If the Guarantee Trustee is to cease to be trustee under the Finance Guarantee and a New Guarantee
Trustee is not being appointed in accordance with clause 7.6, the outgoing Guarantee Trustee must
send promptly a copy of each countersigned Financier Nomination Letter to the Fund Trustee and the
NSW Government (other than a Financier Nomination Letter in respect of a Financier where this deed
has ceased to apply to that Financier in accordance with clause 2.2(g)).

	7.5	 	Acknowledgement by the Guarantee Trustee

The Guarantee Trustee acknowledges and undertakes (and each New Guarantee Trustee at the
date of becoming a party to this deed will be deemed to acknowledge and undertake) that it:

	(a)	 	is a wholly owned subsidiary of Australian Executors Trustees Limited which is a recognised
trustee company under the laws of New South Wales;
	 
	(b)	 	has relevant and substantive experience and expertise in custody of financial obligations and
in insolvency proceedings generally;

			
	 	 	 
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	(c)	 	except to the extent it is entitled to be paid fees or reimbursed or indemnified for costs
and expenses by JHINV, has no interest or duty which to its knowledge conflicts or may
conflict with its functions under this deed; and
	 
	(d)	 	is not a member of a firm, or a director or employee of a firm or a body owned by a firm,
performing any role as advisor, banker, custodian or trustee to JHINV, another member of the
JHINV Group or (except for roles undertaken in the ordinary course of business for state owned
business enterprises) the NSW Government during a period of 3 years prior to the date of this
deed or becoming a party to this deed, as the case may be.
	 
	7.6	 	Substitution of the Guarantee Trustee
	 
	(a)	 	JHINV or the Financiers can only replace the Guarantee Trustee with any Person who at
the date of becoming a New Guarantee Trustee:

	 	(i)	 	is either (A) a recognised trustee company under the laws of the place in
which its Specified Office is located, or (B) a wholly owned subsidiary of a
recognised trustee company under the laws of that place;
	 
	 	(ii)	 	has relevant and substantive experience and expertise in custody of financial
obligations and in insolvency proceedings generally;
	 
	 	(iii)	 	except to the extent it is entitled to be paid fees or reimbursed or
indemnified for costs and expenses by JHINV, has no interest or duty which to its
knowledge conflicts or may conflict with its functions as contemplated under this
deed; and
	 
	 	(iv)	 	is not a member of a firm, or a director or employee of a firm or a body
owned by a firm, performing any role as advisor, banker, custodian or trustee to
JHINV, another member of the JHINV Group or (except for roles undertaken in the
ordinary course of business for state owned business enterprises) the NSW Government
during a period of 3 years prior to becoming a party to this deed.

	(b)	 	A substitution under clause 7.6(a) will not occur and a New Guarantee Trustee acquires no
rights or benefits under this deed unless and until the New Guarantee Trustee duly executes
and delivers an Accession Deed to each party to this deed. This clause does not require an
Accession Deed to be delivered to a Financier.

			
	 	 	 
	8697428_7
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	(c)	 	If the New Guarantee Trustee is not incorporated in Australia, the Financiers must procure,
at no expense to the Fund Trustee or the NSW Government, the delivery to the Fund Trustee and
the NSW Government of an opinion of generally recognised independent legal counsel qualified
to practise in the relevant jurisdiction to the effect that the Accession Deed and this deed
are valid, binding and enforceable obligations of the New Guarantee Trustee (subject to laws
and defences generally affecting the enforcement of contracts and the discretionary nature of
equitable remedies).
	 
	7.7	 	Standard of Duty

The Guarantee Trustee must exercise, and must procure that each Authorised Officer of the
Guarantee Trustee exercises, good faith and the same degree of care, skill and diligence as a
reasonable and prudent Person would exercise in carrying out its functions, duties and obligations
under this deed.

	7.8	 	Functions, duties and obligations of the Guarantee Trustee
	 
	7.8.1	 	Role of the Guarantee Trustee

Subject to the other provisions of this deed, the Guarantee Trustee must:

	(a)	 	upon an officer of the Guarantee Trustee responsible for the day to day administration of
this deed becoming aware of any Insolvency of JHINV, promptly send to each Compensation Party
a notice which requests them to advise in writing the amount of the Compensation Debt or,
alternatively, the basis on which the Compensation Debt is to be calculated and, in the event
of a conflict in the amount of the Compensation Debt advised by the Fund Trustee and the NSW
Government, then (in the absence of manifest error) the amount advised by the NSW Government
prevails;
	 
	(b)	 	not do anything to prevent or interfere with a Compensation Party proving the Compensation
Debt in an Insolvency (to the extent that the Compensation Party is acting in accordance with
the Final Funding Agreement and applicable law);
	 
	(c)	 	not make any representation or submission to an Insolvency Official in relation to the
valuation of the claims of the Compensation Parties in respect of the Compensation Debt unless
reasonably requested by the NSW Government;
	 
	(d)	 	where the Guarantee Trustee is entitled to exercise any vote pursuant to clause 8, take all
necessary and reasonable steps permitted by applicable law to exercise

			
	 	 	 
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	 	 	that vote for the value of the Compensation Debt for the purposes of the Insolvency of
JHINV (including the presentation of all evidence and submissions to any Insolvency
Official as reasonably requested by the NSW Government);
	 
	(e)	 	promptly advise each Compensation Party of any dispute between:

	 	(i)	 	the Guarantee Trustee; and
	 
	 	(ii)	 	an Insolvency Official, JHINV and/or one or more creditors of JHINV,

	 	 	in relation to the Compensation Debt or this deed and which may come before a court of
competent jurisdiction, and take all reasonable steps permitted by applicable law to delay
the determination of the dispute for such period of time (as is reasonable having regard to
the procedural laws governing the conduct of the dispute before the relevant court of
competent jurisdiction) so as to give the Compensation Parties a reasonable opportunity to
present evidence and submissions to the relevant court of competent jurisdiction if they so
wish;
	 
	(f)	 	if JHINV is Insolvent, take all reasonable action permitted by applicable law to ensure that:

	 	(i)	 	all moneys recoverable in respect of the Finance Money Debt are duly and
promptly recovered from the relevant Insolvency Official; and
	 
	 	(ii)	 	any amount payable or repayable to a Compensation Party by a Financier under
this deed, by reason of that Financier receiving whether by way of distribution by the
Insolvency Official in the Insolvency, as payments by a Compensation Party under this
deed or otherwise, an amount in excess of the Finance Money Debt owed to that
Financier, are paid or repaid by that Financier to that Compensation Party;

	(g)	 	not do anything to prevent or interfere with a Compensation Party promptly recovering from
the relevant Insolvency Official all moneys which are recoverable in respect of the
Compensation Debt;
	 
	(h)	 	take all reasonable steps permitted by applicable law and requested by the NSW Government to
assist the Compensation Parties with the determination of any dispute between:

			
	 	 	 
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	 	(i)	 	a Compensation Party; and
	 
	 	(ii)	 	an Insolvency Official, JHINV and/or one or more creditors of JHINV,

	 	 	in relation to the Compensation Debt or this deed;
	 
	(i)	 	to the extent permitted by applicable law, apply for and use reasonable endeavours to obtain
any stay, extension of time or other order in relation to the Insolvency of JHINV which the
Guarantee Trustee reasonably considers is necessary in order to enable any Independent Expert
to discharge its responsibilities under and in accordance with clause 8 or which the NSW
Government reasonably requests for such purpose;
	 
	(j)	 	to the extent permitted by applicable law and if requested by the NSW Government, take all
reasonable steps to recover compensation for any expenses, losses, liabilities, actions,
proceedings, claims and demands (whether actual, contingent, prospective or otherwise) that
are incurred by the Guarantee Trustee (or would have been incurred by the Guarantee Trustee
but for clause 15.1(g)) as a direct or indirect consequence of the fraud, gross negligence or
wilful misconduct of any attorney, agent or delegate appointed by the Guarantee Trustee in
accordance with this deed;
	 
	(k)	 	upon an officer of the Guarantee Trustee responsible for the day to day administration of
this deed becoming aware of any breach of this deed by any party, promptly notify JHINV, the
Financiers and the Compensation Parties of that breach including details of that breach; and
	 
	(l)	 	promptly notify JHINV, the Financiers and the Compensation Parties if for any reason it is
unable to perform its obligations under this deed.
	 
	7.8.2	 	Provision of information

Without limiting the provisions of clause 8 in relation to Notice of Voting in Insolvency,
the Guarantee Trustee and each Compensation Party agree to give notice to the Compensation Parties
or the Guarantee Trustee, as the case may be, of any request received from an Insolvency Official
in an Insolvency of JHINV which seeks instructions and/or consent from one or more creditors of
JHINV (including, for the avoidance of doubt, a Financier, the Guarantee Trustee or a Compensation
Party) or otherwise requests action to be taken by one or more creditors of JHINV in exercise of
their respective rights as creditors of JHINV.

			
	 	 	 
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	7.8.3	 	Limitations on the obligations of the Guarantee Trustee

Notwithstanding clause 7.8.1, the Guarantee Trustee is not required to do any act, matter or
thing requested by the NSW Government (including make any representation or submission, or present
any evidence, to an Insolvency Official or provide any assistance with the determination of any
dispute between a Compensation Party and an Insolvency Official before a court of competent
jurisdiction) which in the opinion of the Guarantee Trustee (after having received advice from
legal counsel appointed by it and acting reasonably) will constitute a breach by the Guarantee
Trustee of its fiduciary duties owed to the Financiers in respect of the Finance Money Debt
(including, for the avoidance of doubt, any duty not to act in manner which conflicts with a
direction of all or a specified majority of the Financiers).

If any such act, matter or thing will constitute such a breach, the Guarantee Trustee must promptly
notify the NSW Government and take all reasonable steps subsequently requested by the NSW
Government and permitted under applicable law to ensure that the objective of the original act,
matter or thing requested by the NSW Government is able to be otherwise achieved:

	(a)	 	in a manner which does not constitute a breach by the Guarantee Trustee of its fiduciary
duties owed to the Financiers in respect of the Finance Money Debt; or
	 
	(b)	 	by the NSW Government doing the relevant act, matter or thing in a manner which, if the
relevant act, matter or thing had been done by the Guarantee Trustee, would be in accordance
with this deed.

	7.8.4	 	Duties of the Guarantee Trustee

The Guarantee Trustee has no duties to the Compensation Parties or the NSW Government except
as expressly provided for in this deed.

	7.8.5	 	Limitation on Liability

To the extent permitted by law, nothing in this clause 7.8 imposes liability on the
Guarantee Trustee for:

	(a)	 	special, indirect, incidental, consequential or punitive damages; or
	 
	(b)	 	economic loss, loss of profits, loss of revenue, or loss of goodwill,

			
	 	 	 
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arising out of any action undertaken by it in accordance with clause 7.8.1, except to the
extent resulting from the fraud, gross negligence or wilful misconduct of the Guarantee Trustee.

	7.8.6	 	Indemnity

To the extent permitted by law, the NSW Government indemnifies and keeps indemnified the
Guarantee Trustee against any claims, cost or liability which may be imposed and which arises out
of any action properly undertaken by it in accordance with 7.8.1(d) or undertaken by the Guarantee
Trustee in accordance with a request of the NSW Government under clause 7.8.1, except to the extent
caused by the fraud, gross negligence or wilful misconduct of the Guarantee Trustee or the failure
of the Guarantee Trustee to take action at the request of the NSW Government.

	8.	 	VOTING IN INSOLVENCY PROCEEDINGS
	 
	8.1	 	Irrevocable Appointment of Attorney
	 
	(a)	 	Subject to this clause 8, Asbestos Injuries Compensation Fund Limited in its capacity as
trustee for the Charitable Fund irrevocably and for valuable consideration agrees to appoint
the Guarantee Trustee and each Authorised Officer of the Guarantee Trustee individually as the
attorney of Asbestos Injuries Compensation Fund Limited in its capacity as trustee for the
Charitable Fund (together with any person appointed as an attorney in accordance with clause
8.1(b), an Attorney) to vote the Compensation Debt during the Insolvency of JHINV
or at any meeting, proceeding or distribution concerning the Insolvency of JHINV for so long
as any Finance Money Debt remains outstanding, by executing a power of attorney substantially
in the form of Schedule 3 to this deed, provided that any vote must be exercised in accordance
with this clause 8 and Asbestos Injuries Compensation Fund Limited in that capacity further
irrevocably and for valuable consideration agrees, if required for further assurance, to
execute a proxy or authority in a form ordinarily required under the applicable law governing
the relevant proceeding.

	(b)	 	Subject to this clause 8 and simultaneously with executing and delivering an Accession Deed
in accordance with clause 4.6, each Replacement Trustee must irrevocably and for valuable
consideration appoint the Guarantee Trustee and each Authorised Officer of the Guarantee
Trustee individually as the attorney of the Replacement Trustee to vote the Compensation Debt
during the Insolvency of JHINV or at any meeting, proceeding or distribution concerning the
Insolvency of JHINV for so long as any Finance Money Debt remains outstanding, by

			
	 	 	 
	8697428_7
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	 	 	executing a power of attorney substantially in the form of Schedule 3 to this deed provided
that any vote must be exercised in accordance with this clause 8 and the Replacement
Trustee further irrevocably and for valuable consideration agrees, if required for further
assurance, to execute a proxy or authority in a form ordinarily required under the
applicable law governing the relevant proceeding.

	(c)	 	Subject to this clause 8, the Fund Trustee and the NSW Government agree not to vote or
attempt to vote the Compensation Debt during the Insolvency of JHINV or at any meeting,
proceeding or distribution concerning the Insolvency of JHINV for so long as any Finance Money
Debt remains outstanding.
	 
	(d)	 	The Fund Trustee irrevocably and for valuable consideration authorises the Guarantee Trustee
to provide an original or copy of any power of attorney executed in accordance with clause
8.1(a) or (b) to an Insolvency Official for the purpose of establishing the right and
entitlement of each Attorney during the Insolvency of JHINV to exercise the appointor’s right
to vote the Compensation Debt at any meeting, proceeding or distribution concerning the
Insolvency of JHINV.
	 
	(e)	 	The Guarantee Trustee must ensure that an Attorney only exercises, and in circumstances where
the Guarantee Trustee is itself appointed an Attorney, the Guarantee Trustee must only
exercise, its rights under a power of attorney granted in accordance with this clause 8 in
accordance with, and subject to, the provisions of this deed.
	 
	(f)	 	To the extent required under applicable law, the Fund Trustee agrees to ratify:

	 	(i)	 	anything the Guarantee Trustee does in accordance with this clause 8, and
such ratification is without prejudice to its rights in respect of any breach of this
deed by the Guarantee Trustee; and
	 
	 	(ii)	 	whatever an Attorney does in exercising powers under a power of attorney
granted in accordance with this clause 8, provided that there is no obligation to
ratify or confirm any act or matter in breach of this deed or any applicable law.

	(g)	 	Subject to the provisions of this deed, each Compensation Party and the NSW Government must
not do anything to prevent or interfere with the exercise by:

			
	 	 	 
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	 	(i)	 	the Guarantee Trustee of its rights and powers, or the performance of its
obligations, under this clause 8; or
	 
	 	(ii)	 	an Attorney of its rights and powers, or the performance of its obligations,
under the relevant power of attorney.

	(h)	 	Subject to the terms and conditions of this deed and subject to compliance with its
provisions, an Attorney may exercise the right to vote in the appointor’s name or, if
necessary or desirable under the applicable law governing the relevant proceeding, the
Attorney’s name, and may do anything necessary or incidental to such exercise including
signing and delivering documents.
	 
	(i)	 	If for any reason whatsoever an Attorney is not entitled by operation of law to exercise its
rights under the relevant power of attorney, the appointor shall exercise those rights as
directed by the Guarantee Trustee, provided such directions are in accordance with this clause
8.
	 
	(j)	 	The Guarantee Trustee must promptly provide the NSW Government with reasonable details of any
action taken by the Guarantee Trustee or an Attorney in respect of the exercise of its powers
under a power of attorney granted in accordance with this clause 8.
	 
	(k)	 	The Guarantee Trustee must promptly provide full details of any action taken or any votes
cast by the Guarantee Trustee or an Attorney in respect of the Compensation Debt.
	 
	8.2	 	Voting
	 
	(a)	 	The Compensation Parties are responsible for proving the Compensation Debt in any
Insolvency of JHINV and providing such information as to the value of the Compensation Debt as
is required by the relevant Insolvency Official for the purposes of ascribing a value to the
Compensation Debt for the purposes of an Insolvency of JHINV. In proving the Compensation
Debt, the Compensation Parties must:

	 	(i)	 	use reasonable endeavours to ensure that the relevant Insolvency Official sends
all Notices of Voting in Insolvency in an Insolvency of JHINV (or a copy of all such
notices) to the Guarantee Trustee; and

			
	 	 	 
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	 	(ii)	 	to the extent such notices are received by the Compensation Parties, provide
a copy to the Guarantee Trustee.

	 	 	Notwithstanding any other provision of this deed other than, and subject to, clauses
7.8.1(b) and (c), the Guarantee Trustee is not responsible for proving the Compensation
Debt in any Insolvency of JHINV.
	 
	 	 	The Compensation Parties agree to provide the Guarantee Trustee with copies of all
documents submitted to the relevant Insolvency Official for the purposes of ascribing a
value to the Compensation Debt for the purposes of an Insolvency of JHINV or ensuring that
the relevant Insolvency Official sends all Notices of Voting in Insolvency in an Insolvency
of JHINV (or a copy of all such notices) to the Guarantee Trustee.
	 
	(b)	 	Subject to clauses 8.8 and 8.9, during the Insolvency of JHINV the Guarantee Trustee must
ensure that an Attorney only votes on any matter in any meeting, proceeding or distribution
concerning the Insolvency of JHINV in respect of the Compensation Debt in accordance with the
instructions of the Financiers given in accordance with the Finance Guarantee, provided that:

	 	(i)	 	the Guarantee Trustee must ensure that an Attorney does not vote unless the
Guarantee Trustee has provided the NSW Government with 10 Business Days notice (or,
subject to clause 7.8.1(i), such shorter notice as the Guarantee Trustee determines is
reasonable having regard to the terms of the Notice of Voting in Insolvency) of the
Attorney’s intention to vote and the Attorney votes in accordance with the intention
as notified; and
	 
	 	(ii)	 	if an Independent Expert has been appointed under clause 8.3, and the
Independent Expert has determined that, in its opinion, the criteria set out in:

	 	A.	 	clauses 8.4(a), (b), (c) and, if applicable, (d); or
	 
	 	B.	 	clause 8.4(e),

	 	 	 	are satisfied in relation to the Preferred Option or a particular choice as
described in clause 8.3(a)(ii)(B) or (C), as the case may be, then the Guarantee
Trustee must ensure that an Attorney votes in favour of the Preferred Option or
that particular choice.

			
	 	 	 
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	 	 	For the avoidance of doubt, the Guarantee Trustee must ensure that an Attorney votes in
accordance with the proviso to this clause 8.2(b) irrespective of any instructions of the
Financiers to the contrary given in accordance with the Finance Guarantee.
	 
	(c)	 	Each of the Fund Trustee and NSW Government acknowledge that in clause 10.5 of the Final
Funding Agreement they agreed that, without prejudice to their obligations under or the
operation of this deed and to the extent permitted by law, all voting rights arising out of
the Guarantee will be exercised in respect of any proposed composition with creditors, plan of
arrangement, plan of reorganization, or other restructuring for JHINV in connection with any
Reconstruction Event (“Plan”) so as to vote in favour of the Plan where, if the Plan were to
come into force the conditions specified in clause 10.5 of the Final Funding Agreement would
be satisfied.
	 
	 	 	Accordingly, if the circumstances in clause 10.5 of the Final Funding Agreement apply, the
Fund Trustee and NSW Government agree that the Plan is the Preferred Option.
	 
	(d)	 	If following the occurrence of a Wind-Up Event in respect of JHINV, the value of the assets
of JHINV available for distribution to pay the claims of ordinary unsecured creditors (or
realisation to allow such payment), as determined or estimated (in the absence of manifest
error) by the relevant Insolvency Official (or otherwise determined or estimated for the
purposes of the relevant Insolvency proceeding in accordance with applicable law) is equal to
or less than the amount required to enable discharge and satisfaction of the Finance Money
Debt in full, then, subject to clauses 8.8 to 8.10 inclusive, during the Wind-Up Event an
Attorney may vote on any matter in any meeting, proceeding or distribution concerning the
Wind-Up Event in respect of the Compensation Debt in accordance with the instructions of the
Financiers given in accordance with the Finance Guarantee and clauses 8.2(b) and (c), 8.3 to
8.7 inclusive and 8.11 do not apply.
	 
	8.3	 	Appointment of an Independent Expert
	 
	(a)	 	If during the Insolvency of JHINV:

	 	(i)	 	the Guarantee Trustee or an Attorney receives a Notice of Voting in
Insolvency (or a copy of a Notice of Voting in Insolvency); and

			
	 	 	 
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	 	(ii)	 	a vote on any matter in any meeting, proceeding or distribution concerning
the Insolvency of JHINV requires a choice between:

	 	A.	 	two or more options, proposals, courses of action or other
alternatives (howsoever described) (Options) for the partial or
full winding up, restructure or reconstruction of JHINV or the realisation of
some or all of JHINV’s assets in connection with its Insolvency;
	 
	 	B.	 	deferring or not deferring any action; or
	 
	 	C.	 	extending or not extending the Insolvency proceeding,

	 	 	then the Guarantee Trustee must promptly provide the NSW Government with a copy of the
Notice of Voting in Insolvency and procure the appointment of an Independent Expert in
accordance with this clause 8.3, such appointment to be made within 10 Business Days of
receipt by the Guarantee Trustee of the Notice of Voting in Insolvency (unless the NSW
Government gives notice that it does not so require).
	 
	(b)	 	The Guarantee Trustee must, prior to any appointment of an Independent Expert under this
deed, provide the NSW Government with 5 Business Days notice (or, subject to clause 7.8.1(i),
such shorter notice as the Guarantee Trustee determines is reasonable having regard to the
terms of the Notice of Voting in Insolvency) of the Person nominated by the Guarantee Trustee
to act as Independent Expert, together with evidence demonstrating such nominee’s compliance
with the criteria and qualifications required of an Independent Expert under this deed.
	 
	(c)	 	If an Independent Expert is appointed under this clause 8.3, the costs of the Independent
Expert shall be borne by the NSW Government.
	 
	(d)	 	Subject to clause 8.3(e), upon receipt of a Notice of Voting in Insolvency and at any time
prior to 2 Business Days before the latest date on which the Independent Expert must make a
determination in accordance with clauses 8.4 and 8.5 (or, subject to clause 7.8.1(i), such
earlier time as the Guarantee Trustee determines is reasonable having regard to the terms of
the Notice of Voting in Insolvency and advises the Fund Trustee and the NSW Government), the
NSW Government may nominate:

			
	 	 	 
	8697428_7
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	 	(i)	 	an Option which it would like an Attorney to vote for in respect of the
Compensation Debt; or
	 
	 	(ii)	 	if the vote relates to deferring or not deferring any action or extending or
not extending the Insolvency proceeding, which alternative it would like the Attorney
to vote for in respect of the Compensation Debt.

	(e)	 	If an Independent Expert appointed under this clause 8 determines that an Option, other than
the Option nominated by the NSW Government under clause 8.3(d)(i), satisfies the criteria set
out in:

	 	(i)	 	clauses 8.4(a), (b), (c) and if applicable, (d); or
	 
	 	(ii)	 	clause 8.4(e),

	 	 	then the NSW Government may immediately, with notice in writing to the Guarantee Trustee,
nominate the Option so determined by the Independent Expert as the Option that it would
like an Attorney to vote for in respect of the Compensation Debt.
	 
	(f)	 	For the purposes of this clause 8 and subject to clause 8.2(c), Preferred Option means:

	 	(i)	 	subject to clause 8.3(f)(ii), the Option nominated by the NSW Government
under clause 8.3(d)(i); or
	 
	 	(ii)	 	if the circumstances in clause 8.3(e) apply, the Option nominated by the NSW
Government under clause 8.3(e); or
	 
	 	(iii)	 	if the circumstances in clause 8.3(g) apply, the Option nominated by the NSW
Government under clause 8.3(g); or
	 
	 	(iv)	 	if the NSW Government has not nominated an Option in accordance with clause
8.3(d)(i) or 8.3(e), the Preferred Option is deemed to be the Option which the
Independent Expert determines satisfies the criteria set out in:

	 	A.	 	clauses 8.4(a), (b), (c) and, if applicable, (d); or
	 
	 	B.	 	clause 8.4(e),

			
	 	 	 
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	 	 	 	and in respect of which the amounts anticipated to be received by, or on behalf of
the Charitable Fund, have a higher net present value than any other Option having
regard (among any other factors) to any potential future payment by JHINV or a
James Hardie Successor (under an agreement similar in its effect to the Final
Funding Agreement) in respect of part or all amounts payable under the guarantee
of payment of the Fund Guaranteed Money in accordance with the Guarantee.

	(g)	 	If the Independent Expert determines that there are two or more Options which satisfy the
criteria set out in clause 8.2(b)(ii), the NSW Government may notify the Guarantee Trustee in
writing which Option it wishes to nominate as the Preferred Option.
	 
	8.4	 	Role of the Independent Expert

If an Independent Expert is appointed under this clause 8, the Independent Expert shall
determine (and shall be instructed by the Guarantee Trustee only to determine), in its opinion:

	(a)	 	whether, one or more Options (if approved and implemented in the manner described in the
Notice of Voting in Insolvency) are likely to result in the recovery by the Guarantee Trustee
of an amount in respect of the Finance Money Debt which would be sufficient (taking into
account prior ranking claims, the likely or anticipated distribution to Financiers by the
Insolvency Official and any likely payment to the Guarantee Trustee under clause 4) to
discharge and satisfy the Finance Money Debt in full;
	 
	(b)	 	whether one or more of the Options which satisfy the requirements of paragraph (a) (if
approved and implemented in the manner described in the Notice of Voting in Insolvency) are
likely to result in the recovery by the Guarantee Trustee in respect of the Finance Money Debt
of an amount:

	 	(i)	 	which would be at least 5% greater than the amount which the Guarantee
Trustee would be likely to recover in respect of the Finance Money Debt under any
other Option, after allowing for the time value of money; and
	 
	 	(ii)	 	which would discharge and satisfy the Finance Money Debt in full by a date no
later than 12 months after the earliest date by which any of the other Options would
achieve full discharge and satisfaction of the Finance Money Debt; and

			
	 	 	 
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	(c)	 	whether the conditions (if any) attached to one or more of the Options which satisfy the
requirements of paragraph (a) (as described in the Notice of Voting in Insolvency) do not
involve a materially greater risk of non-recovery, or delay in recovery of more than 12
months, by the Guarantee Trustee of an amount which would be sufficient (taking into account
prior ranking claims, the likely or anticipated distribution to the Financiers by the
Insolvency Official and any likely payment to the Guarantee Trust under clause 4) to discharge
and satisfy the Finance Money Debt in full, compared to the risks of non-recovery, or delay in
recovery of more than 12 months, associated with the other Options (taking into account the
conditions (if any) attached to those other Options (as described in the Notice of Voting in
Insolvency)); and
	 
	(d)	 	if one of more of the Options which satisfy the requirements of paragraph (a) (if approved
and implemented in the manner described in the Notice of Voting in Insolvency) are each likely
to result in the recovery by the Guarantee Trustee of an amount sufficient to discharge and
satisfy the Finance Money Debt in full within substantially the same period of time (taking
into account prior ranking claims, the likely or anticipated distribution to the Financiers by
the Insolvency Official and any likely payment to the Guarantee Trust under clause 4), which
Option would result in the amounts anticipated to be received by, or on behalf of, the
Charitable Fund in respect of the Compensation Debt having a higher net present value than the
other Options having regard (among any other relevant factors) to any potential future payment
by JHINV or a James Hardie Successor (under an agreement similar in its effect to the Final
Funding Agreement) in respect of part or all amounts payable under the guarantee of payment of
the Fund Guaranteed Money in accordance with the Guarantee; and
	 
	(e)	 	if the vote relates to deferring or not deferring any action or extending or not extending
the Insolvency proceeding, which choice is likely to result in:

	 	(i)	 	a greater net recovery in respect of the Finance Money Debt (taking into
account prior ranking claims, the likely or anticipated distribution to the Financiers
by the Insolvency Official and any likely payment to the Guarantee Trust under clause
4); or
	 
	 	(ii)	 	if either choice would result in the recovery by the Guarantee Trustee of an
amount sufficient to discharge and satisfy the Finance Money Debt in full (taking into
account prior ranking claims, the likely or anticipated distribution to the Financiers
by the Insolvency Official and any likely

			
	 	 	 
	8697428_7
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	 	 	 	payment to the Guarantee Trust under clause 4), a greater net recovery in respect
of the Compensation Debt (taking into account prior ranking claims, the likely or
anticipated distribution to the Financiers by the Insolvency Official and any
likely payment to the Guarantee Trust under clause 4) within the next 12 months.

	8.5	 	Notice of determination by the Independent Expert

The Independent Expert shall send its determination, together with reasons and supporting
material, in writing to the Guarantee Trustee and the NSW Government within 10 Business Days of its
appointment (or such shorter period as the Guarantee Trustee may specify at the time of appointment
of the Independent Expert having regard to the terms of the Notice of Voting in Insolvency).

	8.6	 	Assistance to the Independent Expert

Subject to any duty of confidentiality or applicable law, the Guarantee Trustee, the
Financiers, JHINV, the Fund Trustee and the NSW Government must promptly provide the Independent
Expert with any information or assistance it reasonably requests for the purpose of making its
determination under clause 8.4.

	8.7	 	Determination by the Independent Expert final

The determination of the Independent Expert shall (in the absence of manifest error) be
final and binding on the Guarantee Trustee, each Financier, JHINV, the Fund Trustee and the NSW
Government.

	8.8	 	Consent of NSW Government required in certain circumstances

	(a)	 	Subject to clauses 8.9 to 8.11 inclusive, but otherwise notwithstanding any other
provision of clauses 8.2 to 8.7 inclusive, the Guarantee Trustee must ensure that an Attorney
does not, without the prior written consent of the NSW Government, vote in respect of the
Specified Proportion of the Compensation Debt in favour of any arrangement, assignment,
reconstruction, composition, option, proposal or other course of action proposed in connection
with JHINV’s Insolvency which, if approved and implemented, would result in the extinguishment
of any part of the Compensation Debt (other than by payment in full or upon the final
dissolution or winding up of JHINV in circumstances where there will be an insufficiency of
assets to enable payment of any part of the Compensation Debt taking into account prior
ranking claims, the distribution to the Financiers by the Insolvency Official and payments to
the Guarantee Trust under clause 4). An Attorney may

			
	 	 	 
	8697428_7
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	 	 	vote the balance of the Compensation Debt in accordance with the instructions of the
Financiers given in accordance with the Finance Guarantee (or, in the absence of such
instructions, as the Guarantee Trustee directs).
	 
	(b)	 	Where there are two or more Options, the Guarantee Trustee must appoint and obtain advice
from an Independent Expert in accordance with clauses 8.3 and 8.4 and, provided that the
Independent Expert has had due regard to the matters specified in clause 8.4, the Guarantee
Trustee must, subject to clauses 8.2(d) and 8.9 to 8.11 inclusive, ensure that an Attorney
votes the Specified Proportion of the Compensation Debt in favour of the Preferred Option. An
Attorney may vote the balance of the Compensation Debt in accordance with the instructions of
the Financiers given in accordance with the Finance Guarantee.
	 
	8.9	 	Options providing for a return to shareholders of JHINV

Notwithstanding any other provision of this clause 8, where any arrangement, assignment,
reconstruction, composition, option, proposal or other course of action is proposed in connection
with JHINV’s Insolvency which, if approved and implemented, would result in:

	(a)	 	a return to the shareholders of JHINV without:

	 	(i)	 	payment of the Compensation Debt in full; or
	 
	 	(ii)	 	the entry into an arrangement approved by the NSW Government by a James
Hardie Successor which is materially similar in nature and value to the arrangements
under the Final Funding Agreement; or

	(b)	 	a maintenance or continuing standing of JHINV or the creation or promotion of any James
Hardie Successor, under which shareholders of JHINV have or might have any continuing value or
interest attaching to their shares in JHINV,

the Guarantee Trustee must appoint and obtain advice from an Independent Expert.

Where the Independent Expert determines that if the arrangement, assignment, reconstruction,
composition, option, proposal or other course of action was implemented, the return to, or
interests of, the shareholders of JHINV in JHINV or a James Hardie Successor, would exceed US$10
million in aggregate value (Shareholder Option), the Guarantee Trustee must, subject
to clause 8.10, ensure that an Attorney votes against the Shareholder Option, in respect of 100 per
cent (100%) of the Compensation Debt, unless:

			
	 	 	 
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	 	(i)	 	the NSW Government has otherwise consented; or
	 
	 	(ii)	 	the Independent Expert has determined that the implementation of the
arrangement, assignment, reconstruction, composition, option, proposal or other course
of action would be likely to result in a greater return in respect of the Compensation
Debt than any other option which is likely to be available (including a Wind-Up Event
in respect of JHINV), having regard (among any other relevant factors) to any
potential future payment by JHINV or a James Hardie Successor (under an agreement
similar in its effect to the Final Funding Agreement) in respect of part or all
amounts payable under the guarantee of payment of the Fund Guaranteed Money in
accordance with the Guarantee.

Where the return to, or interests of the shareholders of JHINV in JHINV or a James Hardie Successor
is less than or equal to US$10 million in aggregate value the Guarantee Trustee must ensure that an
Attorney votes in accordance with this clause 8 and otherwise with the instructions of the
Financiers given in accordance with the Finance Guarantee.

If an Independent Expert is appointed under this clause 8.9, the costs of the Independent Expert
shall be borne by the NSW Government.

	8.10	 	Defaulting or absent Guarantee Trustee

If:

	(a)	 	a court of competent jurisdiction has determined that the Guarantee Trustee is in breach of,
or default under, this deed; or
	 
	(b)	 	there is no Person acting as trustee under the Finance Guarantee,

then for so long as such breach or default continues and remains unremedied, or until a Person is
appointed as a New Guarantee Trustee in accordance with clause 7.6, as the case may be, the
Compensation Parties may exercise any vote in any Insolvency proceeding in respect of the
Compensation Debt which would otherwise be exercised by an Attorney.

	8.11	 	Residual Power

If the Guarantee Trustee is obliged by reason of this clause 8 to ensure that an Attorney
votes in a manner recommended by the Independent Expert, the Guarantee Trustee may cause the
Attorney to vote in another manner approved by the NSW Government.

			
	 	 	 
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	9.	 	CHANGES TO RIGHTS
	 
	9.1	 	Rights of the Financiers are protected
	 
	(a)	 	Rights given to or for the benefit of the Financiers under this deed, and the
obligations of each Compensation Party and the NSW Government under it, are not affected by
any act or omission by a Compensation Party, the NSW Government, the Guarantee Trustee, any
Financier or any other Person or by any other act, other matter or thing whatsoever, whether
negligent or not, except as agreed to in writing by the Guarantee Trustee. For example, those
rights and liabilities are not affected by:

	 	(i)	 	any act or omission:

	 	A.	 	varying or replacing any arrangement under which any
Finance Money Debt or Compensation Debt is expressed to be owing, such as by
increasing a facility limit or extending the term;
	 
	 	B.	 	releasing or discharging JHINV or any Security Provider
(including discharge by operation of law) or giving them a concession (such
as more time to pay);
	 
	 	C.	 	releasing any Person who gives a guarantee or indemnity in
connection with any of JHINV’s obligations;
	 
	 	D.	 	releasing, losing the benefit of, or not obtaining any
Security Interest or negotiable instrument;
	 
	 	E.	 	by which the obligations of a Compensation Party, the NSW
Government, JHINV or any Security Provider may not be enforceable;
	 
	 	F.	 	by which any Person who was intended to guarantee or
provide a Security Interest securing all or part of the Finance Money Debt
does not do so, or does not do so effectively;
	 
	 	G.	 	by which a Compensation Party or the NSW Government is
discharged from its obligations to the Financiers by operation of law;

			
	 	 	 
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	 	H.	 	by which any Security Interest which could be registered is
not registered; or
	 
	 	I.	 	any other thing causing any prejudice (including material
prejudice);

	 	(ii)	 	a Person dealing in any way with a Security Interest, guarantee, indemnity,
judgment or negotiable instrument;
	 
	 	(iii)	 	the death, mental or physical disability, incapacity, Insolvency or any
legal limitation of any Person including JHINV, a Compensation Party or the NSW
Government;
	 
	 	(iv)	 	changes in the membership, name or business of any Person;
	 
	 	(v)	 	JHINV opening an account with any Financier;
	 
	 	(vi)	 	acquiescence or delay by any Financier or any other Person;
	 
	 	(vii)	 	an assignment of rights or a novation in connection with all or part of the
Finance Money Debt or the Compensation Debt;
	 
	 	(viii)	 	the acceptance of the repudiation of, or termination of, any Finance Document or any
other document or agreement; or
	 
	 	(ix)	 	any payment to a Financier, including any payment which at the payment date
or at any time after the payment date is, in whole or part, illegal, void, voidable,
avoided or unenforceable.

	 	 	This clause applies regardless of whether JHINV, a Compensation Party or the NSW Government
is aware of, has consented to or is given notice of any act, omission, matter or thing
referred to in this clause. This clause does not limit the obligations of a Compensation
Party or the NSW Government under this deed.
	 
	(b)	 	Subject to this deed, the Financiers may act freely in their interests in relation to any
matter concerning the Finance Money Debt without regard to the interests of a Compensation
Party or the NSW Government or the terms of the Compensation Debt and without incurring any
liability to a Compensation Party or the NSW Government.

			
	 	 	 
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	9.2	 	Payments

The Fund Trustee and the NSW Government agree to make any payments required under this deed:

	(a)	 	to, or as directed by, the Guarantee Trustee;
	 
	(b)	 	in full without set off or counterclaim, and without any deduction in respect of Taxes unless
prohibited by law; and
	 
	(c)	 	in the currency in which it receives or recovers payment in respect of the Compensation Debt.
	 
	9.3	 	Reinstatement of rights

Under any law relating to Insolvency, a Person may claim that a transaction (including a
payment) in connection with this deed or the Finance Money Debt is void or voidable. If such a
claim is made and upheld, conceded or compromised, then the Financiers are immediately entitled as
against each Compensation Party and the NSW Government to the rights under this deed in respect of
the Finance Money Debt to which they were entitled immediately before the transaction. On request
from the Financiers, each Compensation Party and the NSW Government agrees to do anything
reasonably required and at the cost of the Financiers (including signing any document) to restore
to the Financiers any right the Financiers held under this deed immediately before the transaction.

This clause 9.3 applies whether or not the Guarantee Trustee or a Financier, knew, or ought to have
known, that the transaction would or may be void or voidable.

	9.4	 	Set-off

A Financier may set off any amount due for payment by the Financier to a Compensation Party
against any amount due for payment by that Compensation Party to the Financier. This does not
restrict any right of set-off which may arise at law.

	9.5	 	Discretion in exercising rights

A Financier may exercise a right or remedy or give or refuse its consent in any way it
considers appropriate (including by imposing conditions), unless this deed expressly states
otherwise.

			
	 	 	 
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	9.6	 	Partial exercising of rights

If any party or a Financier does not exercise a right or remedy fully or at a given time,
that party or the Financier (as the case may be) may still exercise it later.

	9.7	 	Remedies cumulative

The rights and remedies of each party and the Financiers under this deed are in addition to
other rights and remedies given by law independently of this deed.

	9.8	 	Variation and waiver

Unless this deed expressly states otherwise, a provision of this deed, or right created
under it, may not be waived or varied except in writing signed by the party or parties to be bound
and with the prior written consent of the other parties.

For the avoidance of doubt, but subject to any requirement for the Guarantee Trustee to obtain
instructions and/or consent from all or a specified majority of the Financiers as referred to in
clause 7.3, this clause 9.8 does not require a Financier to sign any such waiver or variation.

	10.	 	INCONSISTENT LAW
	 
	10.1	 	Inconsistent law

To the extent permitted by law, this deed prevails to the extent it is inconsistent with any
law.

	10.2	 	Supervening legislation

Any present or future legislation which operates to vary the obligations of a Compensation
Party or the NSW Government in connection with this deed with the result that the Financiers’
rights, powers or remedies are adversely affected (including by way of delay or postponement) is
excluded except to the extent that its exclusion is prohibited or rendered ineffective by law.

	11.	 	NOTICES
	 
	(a)	 	A notice, approval, consent, nomination or other communication (including a Financier
Nomination Letter) (Communication) to a Person relating to this deed:

	 	(i)	 	must state that it relates to this deed and state the relevant clause in this
deed;

			
	 	 	 
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	 	(ii)	 	must be signed by an Authorised Officer;
	 
	 	(iii)	 	must be in legible writing; and
	 
	 	(iv)	 	must be in English.

	(b)	 	Communications must be addressed as follows:
	 
	 	 	If the Communication is to NSW Government then it must be addressed as follows:

	 	 	 

	Name:

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

	 	Deputy Director-General (Legal)
	 
	 	 
	Address:

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

	 	(61) (02) 9228 3062

	 	 	unless the NSW Government has notified the other parties of new contact details, in which
case the Communication must be addressed in the manner last notified by the NSW Government.
	 
	 	 	If the Communication is to the Fund Trustee then it must be addressed as follows:

	 	 	 

	Name:

	 	Asbestos Injuries Compensation Fund Limited
	 
	 	 
	Attention:

	 	Chairman
	 
	 	 
	Address:

	 	Level 3, 22 Pitt Street, Sydney, NSW 2000
	 
	 	 
	Facsimile:

	 	(61) (02) 8274 5217

	 	 	unless the Fund Trustee has notified the other parties of new contact details, in which
case the Communication must be addressed in the manner last notified by the Fund Trustee.
	 
	 	 	A copy of any such Communication to the Fund Trustee must promptly be sent to the NSW
Government in accordance with this clause 11.
	 
	 	 	If the Communication is to JHINV then it must be addressed as follows:

	 	 	 

	Name:

	 	James Hardie Industries N.V.
	 
	 	 
	Attention:

	 	The Chairman and the Chief Financial Officer
	 
	 	 
	Addresses:

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

			
	 	 	 
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	 	and
	 
	 	 
	 

	 	Level 3, 22 Pitt Street, Sydney, NSW 2000
	 
	 	 
	Facsimile:

	 	(61) (02) 8274 5218

	 	 	unless JHINV has notified the other parties of new contact details, in which case the
Communication must be addressed in the manner last notified by JHINV.
	 
	 	 	If the Communication is to the Guarantee Trustee then it must be addressed as follows:

	 	 	 

	Name:

	 	AET Structured Finance Services Pty Limited
	 
	 	 
	Attention:

	 	Corporate Trust
	 
	 	 
	Address:

	 	80 Alfred Street, Milsons Point NSW 2061
	 
	 	 
	Facsimile:

	 	(61) (02) 9028 5942

	 	 	unless the Guarantee Trustee has notified the other parties of new contact details, in
which case the Communication must be addressed in the manner last notified by the Guarantee
Trustee.
	 
	 	 	If the Communication is to a Financier then it must be addressed as specified in the
relevant Financier Nomination Letter, unless the Financier has subsequently notified the
other parties of new contact details, in which case the Communication must be addressed in
the manner last notified by the Financier.
	 
	 	 	If the Communication is to a Replacement Trustee or a New Guarantee Trustee then it must be
addressed as specified in the relevant Accession Deed, unless the Replacement Trustee or
New Guarantee Trustee has subsequently notified the other parties of new contact details,
in which case the Communication must be addressed in the manner last notified by the
Replacement Trustee or New Guarantee Trustee.
	 
	(c)	 	If the Communication is sent by the sender it shall be deemed to be received by the receiver:

	 	(i)	 	if the Communication is hand delivered, upon delivery to the receiving party;
	 
	 	(ii)	 	if the Communication is sent by facsimile, upon the successful completion of
the relevant transmission;
	 
	 	(iii)	 	if the Communication is sent by registered mail within Australia, 2 business
days after the registration of the notice of posting; and

			
	 	 	 
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	 	(iv)	 	if the Communication is sent by ordinary mail within Australia, 3 business
days from then including the date of postage,

	 	 	provided that where a notice to a party must be copied to another Person, each such notice
will only be given at the time the last notice is received.
	 
	(d)	 	For the avoidance of doubt, a Communication shall not be sent by electronic email.
	 
	12.	 	GOVERNING LAW AND JURISDICTION
	 
	12.1	 	Governing law

This deed is governed by the laws of New South Wales.

	12.2	 	Submission to jurisdiction

Each party and Financier submits to the non-exclusive jurisdiction of courts exercising
jurisdiction in New South Wales, and waives any right to claim that those courts are an
inconvenient forum.

	12.3	 	Service
	 
	(a)	 	A document may be served on a party or a Financier by delivering it to that party at its
address in clause 11.
	 
	(b)	 	This clause 12.3 does not prevent another mode of service.
	 
	13.	 	COUNTERPARTS

This deed may be executed in any number of counterparts. All counterparts together will be
taken to constitute one instrument.

	14.	 	GENERAL
	 
	14.1	 	Severability
	 
	(a)	 	If a provision of this deed is invalid, illegal or unenforceable, then that provision to
the extent of the invalidity, illegality or unenforceability must be ignored in the
interpretation of this deed.
	 
	(b)	 	All the other provisions of this deed remain in full force and effect.

			
	 	 	 
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	14.2	 	No waiver
	 
	(a)	 	A party’s agreement to waive a right or entitlement under this deed is only effective if
that party gives written notice of that waiver to the party seeking the benefit of the waiver.
	 
	(b)	 	Waiver by a party of anything required to be done under this deed is not a waiver of any
other thing required to be done under this deed.
	 
	(c)	 	Paragraph (b) applies whether the other act or thing required to be done under this deed is
of the same or a different nature as the act or thing waived.
	 
	(d)	 	A failure or delay in exercising a right arising from a breach of this deed is not a waiver
of that right.
	 
	(e)	 	The parties must not waive this clause 14.
	 
	14.3	 	Further assurances

Each party and Financier must do everything necessary to give full effect to this deed.

	14.4	 	Entire agreement
	 
	(a)	 	This deed embodies the entire agreement between the Fund Trustee and the NSW Government
on the one part, and the Guarantee Trustee and the Financiers on the other part.
	 
	(b)	 	This deed supersedes all previous agreements.
	 
	14.5	 	Cumulative rights

A right, power, discretion and remedy arising out of this deed in favour of a party or a
Financier:

	(a)	 	is cumulative; and
	 
	(b)	 	does not diminish any other right, power, discretion and remedy of any party or a Financier.

			
	 	 	 
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	14.6	 	Certificates

A Financier or the Guarantee Trustee may give a Compensation Party or the NSW Government a
certificate about an amount payable or other matter in connection with this deed, the Finance
Guarantee or a Finance Document. The certificate is sufficient evidence of the amount or matter,
unless it is proved to be incorrect.

	14.7	 	Amendment of this deed

The parties can only vary a term of this deed if the variation is in writing and all parties
execute an amending deed.

	14.8	 	Confidentiality

Subject to the exceptions set out below, each party shall, and shall procure that its
employees, officers, agents and advisers (each a “Representative”) keep strictly
confidential all information provided to that party or its Representatives in relation to, or in
connection with the Original Final Funding Agreement and the Final Funding Agreement, this deed and
the other Related Agreements and each party shall be responsible for all acts and omissions of its
Representatives in relation to such information.

A party (and its Representatives) may disclose information under or obtained in connection with the
Original Final Funding Agreement and the Final Funding Agreement, this deed and the other Related
Agreements as may be necessary to:

	(a)	 	the party’s related bodies corporate, professional advisors, bankers, financial advisors and
financiers, if those persons undertake to keep the information disclosed confidential;
	 
	(b)	 	comply with any applicable law or requirement of any regulatory body (including any relevant
stock exchange) and any corporate governance guidelines adopted by such bodies which are
adopted by such party;
	 
	(c)	 	any of its employees to whom it is necessary to disclose the information, if that employee
undertakes to keep the information confidential;
	 
	(d)	 	any Person as permitted by the written agreement of all parties; or
	 
	(e)	 	any Person if the content of the disclosure is or has become generally available to the
public otherwise than by breach of this deed.

			
	 	 	 
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	15.	 	GUARANTEE TRUSTEE LIMITATION OF LIABILITY
	 
	15.1	 	Limitation of liability
	 
	(a)	 	The Guarantee Trustee enters into this deed in its capacity as trustee for the
Financiers under the Guarantee Trust and will not be liable in any capacity other than as
trustee for the Financiers under the Guarantee Trust.
	 
	(b)	 	A liability arising under or in connection with this deed is limited to and can be enforced
against the Guarantee Trustee only to the extent to which it can be satisfied out of any
property held by the Guarantee Trustee out of which the Guarantee Trustee is actually
indemnified for the liability. This limitation of the Guarantee Trustee’s liability applies
despite any other provision of this deed and extends to all liabilities and obligations of the
Guarantee Trustee in any way connected with any representation, warranty, conduct, omission,
agreement or transaction related to this deed.
	 
	(c)	 	The parties (other than the Guarantee Trustee) may not sue the Guarantee Trustee in any
capacity other than as trustee of the Guarantee Trust, including seeking the appointment of a
receiver (except in relation to property of the Guarantee Trust), a liquidator, an
administrator or any other similar person to the Guarantee Trustee or prove in any liquidation
of or affecting the Guarantee Trustee (except in relation to the property of the Guarantee
Trust).
	 
	(d)	 	The parties waive their rights and release the Guarantee Trustee from any personal liability
in respect of any loss or damage which any of them may suffer as a consequence of a failure of
the Guarantee Trustee to perform its obligations under this deed, which cannot be paid or
satisfied out of any property of the Guarantee Trust held by the Guarantee Trustee.
	 
	(e)	 	The provisions of this clause 15.1 will not apply to any obligation or liability of the
Guarantee Trustee to the extent to which such obligation or liability:

	 	(i)	 	arises as a result of the Guarantee Trustee’s fraud, gross negligence or
wilful misconduct; or
	 
	 	(ii)	 	cannot be satisfied out of any property held by the Guarantee Trustee as a
result of the Guarantee Trustee’s fraud, gross negligence or wilful misconduct.

			
	 	 	 
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	(f)	 	No act or omission of the Guarantee Trustee (including any related failure to satisfy its
obligations or breach of representation or warranty under this deed) will be considered fraud,
gross negligence or wilful misconduct of the Guarantee Trustee to the extent to which the act
or omission was caused or contributed to by any failure of any party (other than the Guarantee
Trustee) or any other person to fulfil its obligations relating to the Guarantee Trust or by
any other act or omission of any party (other than the Guarantee Trustee) or any other person
having obligations relating to the Guarantee Trust.
	 
	(g)	 	Any fraud, gross negligence or wilful misconduct of an attorney, agent or delegate appointed
by the Guarantee Trustee in accordance with this deed is not, and is not to be deemed to be,
an act on behalf of the Guarantee Trustee for the purposes of this deed and does not create
rights or obligations on any party to this deed nor expose the Guarantee Trustee to any
personal liability, provided that:

	 	(i)	 	nothing in this paragraph (g) relieves the Guarantee Trustee from any
liability to the extent of any fraud, gross negligence or wilful misconduct of the
Guarantee Trustee in the selection, appointment, oversight or supervision (according
to the standard set out in clause 7.7) of any such attorney, agent or delegate; and
	 
	 	(ii)	 	in accordance with clause 7.8.1(j), the Guarantee Trustee must take all
reasonable steps to recover compensation from any such attorney, agent or delegate.

	15.2	 	Guarantee Trustee’s knowledge

The Guarantee Trustee will only be considered to have knowledge or awareness of, or notice
of, any thing, or grounds to believe any thing, by virtue of the officers of the Guarantee Trustee
having day to day responsibility for the administration of the Guarantee Trustee having actual
knowledge, actual awareness or actual notice of that thing, or grounds or reason to believe that
thing (and similar references will be interpreted in this way).

	15.3	 	Reliance on notices

Where any notice is provided by any of the parties (other than the Guarantee Trustee) to the
Guarantee Trustee and the notice has been executed by an Authorised Officer of that party then the
Guarantee Trustee may assume that the notice has been properly prepared

			
	 	 	 
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and considered by that party and the Guarantee Trustee is not required to investigate
further.

			
	 	 	 
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Executed as a deed

Each person executing this deed states that the person has no notice of the revocation, termination
or suspension of the authority pursuant to which the person executes this deed.

	 	 	 	 	 
	Signed, sealed and delivered by 

The Honourable Robert John Debus MP,

Attorney-General of New South Wales,

for The State of New South Wales

 
	/s/ Robert J. Debus
 	 	 
	 

Signed, sealed and delivered by Asbestos Injuries Compensation Fund
Limited in its capacity as trustee for the Charitable Fund

	 	 	 	 	 	 	 	 	 	 	 

	/s/ P. W. Baker	 	 	 	/s/ Joanne Marchione	 	 
	 	 	 	 	 	 	 
	Name:

	 	P. W. Baker
	 	 	 	Name:
	 	Joanne Marchione	 	 
	Title:

	 	Director
	 	 	 	Title:
	 	Director	 	 

Signed, sealed and delivered by James Hardie Industries N.V.

	 	 	 	 	 	 	 	 	 	 	 

	/s/ Meredith Hellicar	 	 	 	/s/ Russell Chenu	 	 
	 	 	 	 	 	 	 
	Name:

	 	Meredith Hellicar
	 	 	 	Name:
	 	Russell Chenu	 	 
	Title:

	 	Attorney
	 	 	 	Title:
	 	Member of Managing Board and Attorney	 	 

			
	 	 	 
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Signed, sealed and delivered by AET Structured Finance Services Pty Limited

	 	 	 	 	 	 	 	 	 	 	 

	/s/ Stuart Howard	 	 	 	/s/ Yvonne Drake	 	 
	 	 	 	 	 	 	 
	Name:

	 	Stuart Alexander Howard
	 	 	 	Name:
	 	Yvonne Drake	 	 
	Title:

	 	Authorised Officer
	 	 	 	Title:
	 	Authorised Officer	 	 

[Common Seal of AET Structured Finance]

Services Pty Limited A.B.N. 12 106 424 088]

			
	 	 	 
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SCHEDULE 1

FINANCIER NOMINATION LETTER

[Date]

To:    [Financier]

Intercreditor Deed — Financier Nomination Letter

We refer to the Intercreditor Deed between the State of New South Wales, Asbestos Injuries
Compensation Fund Limited, ourselves and AET Structured Finance Services Pty Limited
(Guarantee Trustee) dated [insert date] (Intercreditor Deed).

For the purposes of the Intercreditor Deed, on and from the date of this letter:

We nominate the following document as a finance document:

	Name: 	 	[insert details]
	 
	Date: 	 	[insert details]
	 
	Parties: 	 	[insert details]

The agreement described above, and each document named or referred to as a [“Finance Document”] in
that agreement, is a Finance Document for the purposes of the Intercreditor Deed; and

We nominate you as a “Financier” in relation to each Finance Document referred to above.

Please confirm your acceptance of the above nomination, and the benefit and obligations of the
Intercreditor Deed, by signing and returning the attached copy of this letter to the Guarantee
Trustee.

Clauses 1 (Interpretation) and 12 (Governing law and Jurisdiction) of the
Intercreditor Deed apply to this letter as they were fully set out in this letter.

			
	 	 	 
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Executed as deed poll for and on behalf of

JAMES HARDIE INDUSTRIES N.V.

with its corporate seat in Amsterdam

by its Authorised Officer:

Name:

Title:

Endorsement by the Guarantee Trustee:

We undertake that, if required by clause 2.2(b) of the Intercreditor Deed, we will send a copy of
the signed Financier Nomination Letter to the State of New South Wales and the Fund Trustee (each
as defined in the Intercreditor Deed).

Executed as a deed poll for and on behalf of

AET STRUCTURED FINANCE SERVICES PTY LIMITED

by its Authorised Officer:

Name:

Title:

Acceptance by the nominated Financier

We accept and agree to the above nomination.

We acknowledge becoming entitled to the benefit of the Intercreditor Deed and incurring obligations
and giving rights under the Intercreditor Deed for valuable consideration received from the parties
to the Intercreditor Deed.

We further acknowledge that the Intercreditor Deed does not:

	(a)	 	affect the status or ranking of the Compensation Debt as an ordinary unsecured claim
(concurrente vordering) against JHINV;

			
	 	 	 
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	(b)	 	affect the status or ranking of the Compensation Debt as against the other debts (including
the Finance Money Debt) or the other creditors of JHINV (including the Financiers) in an
Insolvency of JHINV; nor
	 
	(c)	 	constitute a subordination agreement within the meaning of section 3:277 (2) Dutch Civil
Code.

We accept the benefit and obligations of the Intercreditor Deed, and agree to:

	(i)	 	be bound by the terms of that deed;
	 
	(ii)	 	promptly respond to any requests from the Guarantee Trustee for (A) instructions as to the
manner in which the Guarantee Trustee should exercise any of its rights or benefits under the
Intercreditor Deed, or (B) any consent required from the Financiers (and agree not to
unreasonably withhold or delay such consent); and
	 
	(iii)	 	agree that if we fail to promptly so respond, the Guarantee Trustee may exercise such rights
or benefits in accordance with the instructions of the requisite majority of the Financiers
who do so respond in accordance with the Finance Guarantee.

Executed as a deed poll for and on behalf of

[Insert name of Financier]

by its Authorised Officer:

Name:

Title:

			
	 	 	 
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SCHEDULE 2

ACCESSION DEED

[Date]

To:    [Existing parties to the Intercreditor Deed]

Intercreditor Deed — Accession as [Replacement Trustee / New Guarantee Trustee]

We refer to the Intercreditor Deed between the State of New South Wales, Asbestos Injuries
Compensation Fund Limited, James Hardie Industries N.V. and AET Structured Finance Services Pty
Limited (Guarantee Trustee) dated [insert date] (Intercreditor Deed).

We acknowledge becoming a party to the Intercreditor Deed and incurring obligations and giving
rights under the Intercreditor Deed for valuable consideration received from the other parties to
the Intercreditor Deed.

We hereby undertake, for the benefit of existing parties to the Intercreditor Deed, that on and
from the date of this letter, we will perform and comply with all the duties and obligations [of a
Replacement Trustee and the Fund Trustee] [expressed to be assumed by [a Replacement Trustee / New
Guarantee Trustee]] under the Intercreditor Deed.

Clauses 1 (Interpretation) and 12 (Governing law and Jurisdiction) of the
Intercreditor Deed apply to this letter as they were fully set out in this letter.

Executed as a deed poll for and on behalf of

[NAME OF REPLACEMENT TRUSTEE / NEW GUARANTEE TRUSTEE]

by its Authorised Officer:

Name:

Title:

			
	 	 	 
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SCHEDULE
3

FORM OF POWER OF ATTORNEY

	 	 	 

	Appointer:

	 	[Asbestos Injuries Compensation Fund Limited in its
capacity as trustee for the Charitable Fund] / [[name of
replacement trustee] as replacement trustee of the
Charitable Fund] / [name of New Person] as [successor] to
[Asbestos Injuries Compensation Fund Limited] / [name of
replacement trustee] in its capacity as trustee for the
Charitable Fund] ([ABN]) of [address of Appointer]
	 
	 	 
	Attorney:

	 	AET Structured Finance Services Pty Limited (ABN 12
106 424 088) (Guarantee Trustee) of 80 Alfred
Street, Milsons Point NSW 2061 and each Authorised
Officer of the Guarantee Trustee from time to time
individually
	 
	 	 
	Date:

	 	[date of power of attorney]

	1.	 	APPOINTMENT

Subject to clause 4, the Appointer irrevocably and for valuable consideration appoints the
Attorney to be the Appointer’s attorney. This appointment is of each Attorney individually and any
two or more of them jointly.

	2.	 	WHAT THE APPOINTER MAY DO

The Attorney may:

	(a)	 	exercise the right to cast all and any votes attaching to, or to be cast in respect of, the
Compensation Debt during the Insolvency of JHINV at, or in connection with, any meeting,
proceeding or distribution concerning the Insolvency of JHINV for so long as any Finance Money
Debt remains outstanding and to the exclusion of the right of the Appointor to exercise all of
any such votes for so long as any Finance Money Debt remains outstanding;
	 
	(b)	 	do anything necessary or incidental to such exercise including, without limitation, signing
and delivering documents;
	 
	(c)	 	provide an original or copy of this power of attorney to an Insolvency Official for the
purpose of establishing the right and entitlement of the Attorney during the

			
	 	 	 
	8697428_7
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	 	 	Insolvency of JHINV to exercise the right to cast all and any votes attaching to, or to be
cast in respect of, the Compensation Debt during the Insolvency of JHINV at, or in
connection with, any meeting, proceeding or distribution concerning the Insolvency of
JHINV; and

	(d)	 	do anything which in the Attorney’s opinion is necessary or desirable to ensure the validity
and enforceability of this power of attorney under any applicable law (including, without
limitation, stamping or registering this power of attorney or filing this power of attorney
with any government authority).

Subject to the terms and conditions set out in the Intercreditor Deed, the Attorney may do these
things in the name and on behalf of the Appointer or, if necessary or desirable under any
applicable law in the Attorney’s opinion, the Attorney’s name.

	3.	 	GENERAL

	3.1	 	Attorney’s acts valid

Subject to the terms and conditions set out in the Intercreditor Deed, the Appointer
declares that all acts, matters and things done by the Attorney in exercising powers under this
power of attorney and which are in accordance with the terms and conditions set out in the
Intercreditor Deed, will be as valid and effective as if they had been done by the Appointer.

	3.2	 	Benefit to the Attorney

The Attorney may exercise a power under this power of attorney even if:

	(a)	 	it involves a conflict of duty; or
	 
	(b)	 	the Attorney has a personal interest in the doing of that act.

	3.3	 	Governing law

This deed is governed by the law in force in New South Wales. Each party submits to the
non-exclusive jurisdiction of the courts of that place.

	4.	 	COMPLIANCE WITH INTERCREDITOR DEED

Notwithstanding any other provision of this Power of Attorney, the Attorney must exercise
the rights granted to it under this Power of Attorney in accordance with, and subject to, the terms
and conditions set out in the Intercreditor Deed.

			
	 	 	 
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	5.	 	INTERPRETATION

In this power of attorney:

Authorised Officer has the meaning given to it in the Intercreditor Deed.

Charitable Fund has the meaning given to it in the Final Funding Agreement.

Compensation Debt has the meaning given to it in the Intercreditor Deed.

Final Funding Agreement has the meaning given to it in the Intercreditor Deed.

Finance Money Debt has the meaning given to it in the Intercreditor Deed.

Insolvency has the meaning given to it in the Intercreditor Deed.

Insolvency Official has the meaning given to it in the Intercreditor Deed.

Intercreditor Deed means the Intercreditor Deed between the State of New South Wales,
Asbestos Injuries Compensation Fund Limited, James Hardie Industries N.V and AET Structured Finance
Services Pty Limited dated [insert date].

JHINV has the meaning given to it in the Intercreditor Deed.

EXECUTED as a deed poll

Signed, sealed and delivered by [name of Appointer]

	 	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 
	[name of signatory]

	 	 
	 	[name of signatory]
	 	 
	[capacity of signatory]

	 	 	 	[capacity of signatory]	 	 

			
	 	 	 
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ATTACHMENT
A

DICTIONARY AND INTERPRETATION

(CLAUSE 1)

	1.	 	DICTIONARY

In this deed:

Accession Deed means a letter (executed as a deed poll) in the form of Schedule 2 to
this deed.

Annual Payment has the meaning given to it in the Final Funding Agreement.

Attorney has the meaning given to it in clause 8.1(a).

Audited Financial Statements means, in respect of a Person and a Financial Year, the
audited consolidated financial statements of that Person for that Financial Year prepared in
accordance with the following generally accepted accounting principles (GAAP),
consistently applied throughout that Financial Year:

	(a)	 	where that Person is Listed at the time the relevant audit report is signed, the
generally accepted accounting principles used in that Person’s published financial
reports; or
	 
	(b)	 	where that Person is not Listed at that time and paragraph (c) does not
apply, US GAAP or such other GAAP as is commonly applied by multinational companies at
that time in respect of their financial statements; or
	 
	(c)	 	where that Person is not Listed at that time and it and its subsidiaries operate wholly or
predominantly in one jurisdiction, the generally accepted accounting principles of that
jurisdiction.

Authorised Officer means:

	(a)	 	in the case of the Guarantee Trustee or a Financier, a director or secretary, or an officer
whose title contains the word “director”, “chief”, “head”, “president”, “vice-president”,
“executive” or “manager” or a Person performing the functions of any of them, or any other
Person nominated by the Guarantee Trustee or the Financier, as the case may be, as an
Authorised Officer for the purposes of this deed;
	 
	(b)	 	in the case of the Fund Trustee, a Person appointed by the Fund Trustee and notified to the
Guarantee Trustee and the Financiers as an Authorised Officer for

			
	 	 	 
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	 	 	the purposes of this deed, and whose specimen signature is provided with such notification;

	(c)	 	in the case of JHINV, a managing director of JHINV or a person appointed by JHINV and
notified to the Fund Trustee, the NSW Government, the Guarantee Trustee and the Financiers as
an Authorised Officer for the purposes of this deed, and whose specimen signature is provided
with such notification; and
	 
	(d)	 	in the case of the NSW Government, any person who is a member of the Chief Executive Service
or the Senior Executive Service of the New South Wales Public Service at the time the relevant
act pursuant to this deed is to be undertaken. The Guarantee Trustee may rely on a statement
from any person it reasonably believes is a member of the Chief Executive Service or the
Senior Executive Service of the New South Wales Public Service that such person is in fact a
member of the Chief Executive Service or the Senior Executive Service of the New South Wales
Public Service.

Business Day means a day on which banks are open for business excluding Saturdays,
Sundays and public holidays in Sydney, Australia and Amsterdam, The Netherlands.

Charitable Fund has the meaning given to it in the Final Funding Agreement.

Communication has the meaning given to it in clause 11(a).

Compensation Debt means at any time all amounts then due for payment or which will or
may become due for payment or that remain unpaid by JHINV in connection with the Guarantee
(including all amounts payable under the guarantee of payment of the Fund Guaranteed Money in
accordance with the Guarantee), provided that once such amounts have been ascribed a value by an
Insolvency Official for the purposes of an Insolvency of JHINV (including acceptance of a proof of
debt for such amounts or a lesser amount by an Insolvency Official), a reference to the
Compensation Debt is a reference to amounts having that value, provided that if interest is payable
on such amount under applicable law, the Compensation Debt also includes such interest as is
payable under applicable law (including all interest accruing on or subsequent to the filing of a
petition initiating any proceeding in bankruptcy or insolvency or any like proceeding whether or
not such interest is an allowed claim in such proceeding).

For the avoidance of doubt, the Compensation Debt is only payable once to the Fund Trustee or the
NSW Government for the sole benefit of the Fund Trustee in accordance with the terms of the
Guarantee, the Final Funding Agreement and the other Related Agreements and nothing in this deed
obliges JHINV to pay the same amount to more than one Person.

			
	 	 	 
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Compensation Parties means, subject to clause 5.2, the Fund Trustee and the NSW
Government.

Controlled Entity means in respect of a Person, another Person in respect of which the
first-mentioned Person is required to consolidate in its Audited Financial Statements but, in the
case of JHINV, does not include any Liable Entity (as defined in the Final Funding Agreement) or
the Fund Trustee. For the avoidance of doubt, JHINV is not a Controlled Entity of the JHINV Group.

Cross Guarantee (Fund Guaranteed Money) means a guarantee or indemnity (or other
covenant to secure the satisfaction of any payment or obligation) given by a member of the JHINV
Group (other than JHINV) (Subsidiary Guarantor):

	(a)	 	in favour of the Fund Trustee in respect of the Fund Guaranteed Money;
	 
	(b)	 	on substantially the same terms as a guarantee or indemnity (or other covenant to secure the
satisfaction of any payment or obligation) given by the Subsidiary Guarantor in respect of
financial accommodation provided by a Person to another member of the JHINV Group;
	 
	(c)	 	which terminates when the guarantee, indemnity or other covenant referred to in paragraph (b)
terminates whether by express provision or by operation of law,

provided that the Fund Trustee and the NSW Government have entered into a deed on substantially the
same terms as this deed in relation to the benefit of any such guarantee or indemnity (or other
covenant to secure the satisfaction of any payment or obligation).

Deed of Accession has the meaning given to it in the Final Funding Agreement.

Discretionary Fund has the meaning given to it in the Final Funding Agreement.

Excluded Lender means any Person to the extent that such Person:

	(a)	 	is a trade creditor;
	 
	(b)	 	has provided any debt on terms that it is to be subordinated to the Compensation Debt;
	 
	(c)	 	has provided any debt or other borrowing which arises pursuant to a derivative:

	 	(i)	 	relating to equity interests in a member of the JHINV Group; or
	 
	 	(ii)	 	which is recognised as equity under applicable accounting standards;

			
	 	 	 
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	(d)	 	is a member of the JHINV Group;
	 
	(e)	 	is or becomes a creditor in respect of an amount owing to such Person in its capacity as a
shareholder of JHINV or another member of the JHINV Group otherwise than on arm’s length
terms;
	 
	(f)	 	provides financial accommodation to a Controlled Entity of the JHINV Group and receives the
benefit of a guarantee or indemnity (or other covenant to secure the satisfaction of any
payment or obligation) given by a JHINV Group member (other than JHINV), where there is no
Cross Guarantee (Fund Guaranteed Money) provided to the Fund Trustee on substantially the same
terms as the Guarantee; or
	 
	(g)	 	acquires the rights, as a creditor, of any such Person referred to in any of paragraphs (a)
to (f) inclusive or their assignees.

For avoidance of doubt, if a Person has acceded as a Financier in accordance with clause 2.2. in
relation to particular debt or borrowings which satisfies the criteria set out clause 2.2 and would
not make the relevant Person an Excluded Lender (“Qualifying Debt”) and separately has
provided financial accommodation falling within the description of paragraph (f) of this definition
of Excluded Lender (“Non-Qualifying Debt”):

	 	(i)	 	that Person will only be an Excluded Lender in respect of the Non-Qualifying
Debt and will continue to be a Financier in respect of the Qualifying Debt; and
	 
	 	(ii)	 	if that Person waives or releases any rights it may have under any guarantee
or indemnity within the description of paragraph (f), then to the extent it would have
been an Excluded Lender by virtue of falling within paragraph (f) of this definition
of Excluded Lender, that Person will cease to be an Excluded Lender in respect of the
relevant financial accommodation.

Final Funding Agreement means the deed dated 21 November 2006 between the NSW
Government, JHINV, the Performing Subsidiary and the Fund Trustee which amended and restated the
Original Final Funding Agreement.

Finance Document in relation to a Financier means each agreement to which the
Financier (whether or not together with any other Person) is a party under which liabilities are
owed by JHINV (or another member of the JHINV Group the performance of whose obligations has been
guaranteed by JHINV) where such liabilities are, or are

			
	 	 	 
	8697428_7
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required to be, included in the JHINV Group’s financial statements or notes thereto as debt or
borrowings (including bank loans, letter of credit facilities, derivatives and debt capital markets
issues which are, or are required to be, so included or noted) and which is nominated as a “Finance
Document” in a Financier Nomination Letter. For the avoidance of doubt, the Finance Guarantee is
not a Finance Document.

Finance Guarantee means the deed dated on or about the date of this deed given by
JHINV, among other things, guaranteeing the obligations of other members of the JHINV Group in
favour of the Guarantee Trustee and the Financiers.

Finance Money Debt means at any time, the total of all amounts then due for payment or
which will or may become due for payment or that remain unpaid by JHINV (or another member of the
JHINV Group where payment of such amounts has been guaranteed by JHINV under the Finance Guarantee)
to any Financier (for its own account or for the account of another Person) pursuant to any Finance
Document or to the Guarantee Trustee (for the account of a Financier) under the Finance Guarantee,
provided that once such amounts have been ascribed a value by an Insolvency Official for the
purposes of an Insolvency of JHINV (including acceptance of a proof of debt for such amounts or a
lesser amount by an Insolvency Official), a reference to the Finance Money Debt is a reference to
amounts having that value, as ascribed from time to time, provided that in determining such value
for the purposes of an Insolvency of JHINV:

	(a)	 	if any Financier (for its own account or for the account of another Person) or the Guarantee
Trustee (for the account of a Financier):

	 	(i)	 	fails to lodge a proof of debt (or similar claim) in an Insolvency of JHINV
within the time provided for under applicable law (as such time may be extended by a
relevant Insolvency Official); or
	 
	 	(ii)	 	lodges a proof of debt (or similar claim) in an Insolvency of JHINV and such
proof of debt has not been accepted in whole or part by the relevant Insolvency
Official (and such decision is not subject to appeal to, or review by, that Insolvency
Official or another relevant Insolvency Official and the time for commencing any such
appeal, or requesting any such review, has passed),

such amount shall be deemed to be zero or, in the case of subparagraph (ii), such amount
shall be deemed to be reduced to the extent that it is not accepted by the relevant
Insolvency Official;

			
	 	 	 
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	(b)	 	if interest is payable on such amount under applicable law, the Finance Money Debt also
includes such interest as is payable under applicable law (including all interest accruing on
or subsequent to the filing of a petition initiating any proceeding in bankruptcy or
insolvency or any like proceeding whether or not such interest is an allowed claim in such
proceeding);
	 
	(c)	 	if a Financier enters into, or is otherwise bound by, any conversion of debt to equity (which
is not also a distribution subject to paragraph (d) below), then Finance Money Debt shall be
deemed to be reduced by the full amount of the face value of the debt (and any applicable
interest) so converted; or
	 
	(d)	 	if a Financier receives any money or other property or any other right pursuant to a
Reconstruction Event, then Finance Money Debt (and any applicable interest) shall be deemed to
be reduced by the full amount of the fair market value of the money, property or right
acquired as at the date of receipt.

This definition applies:

	 	(i)	 	irrespective of the capacity in which JHINV, the other member of the JHINV
Group or the Financier became entitled to the amount concerned;
	 
	 	(ii)	 	irrespective of the capacity in which JHINV, the other member of the JHINV
Group or the Financier became liable in respect of the amount concerned;
	 
	 	(iii)	 	whether JHINV, the other member of the JHINV Group or the Financier is
liable as principal debtor, as surety or otherwise;
	 
	 	(iv)	 	whether JHINV or other member of the JHINV Group is liable alone, or together
with another Person;
	 
	 	(v)	 	even if JHINV or another member of the JHINV Group owes an amount or
obligation to the Financier because it was assigned to the Financier, whether or not:

	 	A.	 	the assignment was before, at the same time as, or after
the date of this deed; or
	 
	 	B.	 	JHINV or another member of the JHINV Group consented to or
was aware of the assignment; or

			
	 	 	 
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	 	C.	 	the assigned obligation was secured;

	 	(vi)	 	even if this deed was assigned to the Financier, whether or not:

	 	A.	 	JHINV or another member of the JHINV Group consented to or
was aware of the assignment; or
	 
	 	B.	 	any of the Finance Money Debt was previously unsecured; or

	 	(vii)	 	if JHINV or another member of the JHINV Group is a trustee, whether or not
it has a right of indemnity from the trust fund.

Financial Year means a year ending on 31 March, or if there is any change from time to
time to the Financial Year of the JHINV Group, the twelve-month period that ends on the new end
date adopted by JHINV except that the first such Financial Year after that change shall be a period
of not less than six months and not greater than 18 months ending on the new end date.

Financier means each Person nominated as a “Financier” in a Financier Nomination
Letter in accordance with clause 2.2(b) of this deed. A reference to a “Financier” includes the
Guarantee Trustee or another agent or trustee acting on behalf of the Financier, but excludes an
Excluded Lender.

Financier Nomination Letter means a letter (executed as a deed poll by each party to
it) in the form set out in Schedule 1 to this deed and, for the avoidance of doubt, includes,
without limitation, such a letter provided to any successor or permitted assign of a Financier.

Fund Guaranteed Money means, subject to the Performing Subsidiary Intercreditor Deed,
all amounts that:

	(a)	 	at any time;
	 
	(b)	 	for any reason or any circumstance in connection with any agreement, transaction, instrument
(whether negotiable or non-negotiable), document, event, act, omission, matter or thing
whatsoever;
	 
	(c)	 	whether at law or otherwise; and
	 
	(d)	 	whether or not of a type but in the contemplation of the parties of the date of this deed,

			
	 	 	 
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are payable, are owing but not currently payable, are contingently owing, or remain unpaid by the
Performing Subsidiary to the Fund Trustee under the Final Funding Agreement.

Fund Trustee includes any Replacement Trustee.

Guarantee means the guarantee dated 21 November 2006 given by JHINV, among other
things, guaranteeing the obligations of the Performing Subsidiary under the Final Funding Agreement
or, subject to compliance with clause 6.1, a guarantee provided in replacement of or in
substitution for, or in addition to, that guarantee in accordance with the Final Funding Agreement.

Guarantee Trust means the James Hardie Guarantee Trust established under the Finance
Guarantee.

Guarantee Trustee means AET Structured Finance Services Pty Limited or such other
Person acting as trustee under the Finance Guarantee (including any New Guarantee Trustee).

Heads of Agreement means the non-binding agreement entered into on 21 December 2004
between JHINV, the NSW Government, the Australian Council of Trade Unions, Unions New South Wales
and a representative of certain asbestos victims groups.

Independent Expert means any Person who:

	(a)	 	has relevant and substantive experience and expertise in insolvency proceedings generally
and, if applicable, financial restructuring appropriate to undertake the determination
referred to in clause 8;
	 
	(b)	 	except to the extent he or she is entitled to be paid fees or reimbursed or indemnified for
costs and expenses by the NSW Government in accordance with this deed, has no interest or duty
which to his or her knowledge conflicts or may conflict with his or her functions as
contemplated under this deed; and
	 
	(c)	 	is not a member of a firm, or a director or employee of a firm or a body owned by the firm,
performing any role as advisor, banker, custodian or trustee to the JHINV Group or (except for
roles undertaken in the ordinary course of business for state owned business enterprises) the
NSW Government during a period of 3 years prior to the date of appointment under clause 8.

Insolvency Event means, in respect of a Person, the occurrence in respect of that
Person of any one or more of the events referred to in paragraphs (a) to (h) of the definition of
“Insolvent” .

			
	 	 	 
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Insolvency Official means a custodian, receiver, receiver and manager, trustee,
liquidator, provisional liquidator, administrator or any other officer appointed in connection with
the Insolvency of JHINV and includes, without limitation:

	(a)	 	a receiver in bankruptcy (curator), an administrator (bewindvoerder) and a liquidator
(vereffenaar) appointed under Dutch law or a trustee or debtor in possession in any
proceedings under Chapter 7 or Chapter 11 of the US Bankruptcy Code in relation to JHINV (or
another member of the JHINV Group in circumstances where the US bankruptcy court has
jurisdiction to make an order affecting the nature, timing, quantum or ranking of creditors’
claims against JHINV); and
	 
	(b)	 	where the context so requires, a supervisory judge or a court of competent jurisdiction
exercising jurisdiction in respect of the Insolvency of JHINV.

A Person is Insolvent if the Person:

	(a)	 	admits in writing its inability to pay its debts generally as they become due (otherwise then
as contemplated in clause 16.6 of the Final Funding Agreement);
	 
	(b)	 	was established under Dutch law and files a petition with any court in the Netherlands in
relation to its bankruptcy (faillissement) or seeking an order for a suspension of payments
(surseance van betaling);
	 
	(c)	 	files, or consents by answer or otherwise to the filing against it of, a petition for relief
or insolvent reorganisation or insolvent arrangement or any other petition in bankruptcy, for
liquidation or to take advantage of any bankruptcy, insolvency, insolvent reorganisation,
insolvent moratorium or other similar law of any jurisdiction (including, without limitation,
a filing by the Person under Chapter 7 or Chapter 11 of the US Bankruptcy Code), provided that
where the filing is a filing under Chapter 11 of that Code, the Person:

	 	(i)	 	is at the time of filing unable to pay its debts generally as and when they
become due; or
	 
	 	(ii)	 	in the case of JHINV, after it makes such a filing, fails to pay a JHINV
Contribution or other amount under the JHINV Guarantee when such payment would (but
for the moratorium granted as a result of that filing) have been due for 30 days after
that due date,

			
	 	 	 
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and also provided that, in any such filing under Chapter 11 of that Code a Person is
Insolvent no later than the earliest date as of which creditors may vote on any matter or
accept or reject a plan of reorganisation;

	(d)	 	makes an assignment for the benefit of its creditors generally;
	 
	(e)	 	consents to the appointment of a custodian (not being a nominee for the person), receiver,
receiver and manager, trustee or other officer with similar powers with respect to it or with
respect to a substantial part of its property;
	 
	(f)	 	consents to the appointment of an insolvency administrator or such an insolvency
administrator is appointed and that appointment is not terminated within 28 days;
	 
	(g)	 	is adjudicated as insolvent or to be liquidated, in each case, by a court of competent
jurisdiction; or
	 
	(h)	 	is subject to a Wind-Up Event,

and Insolvency has a corresponding meaning.

James Hardie Successor means any entity which will or might pursuant to a
restructuring or by any other transaction proposed under, or in connection with, the Insolvency of
JHINV acquire the whole or a substantial part of the business or assets of a member of the JHINV
Group and which offers or acknowledges an entitlement of the shareholders of JHINV to become
shareholders of that entity (disregarding any shareholders to whom it is illegal in their
jurisdiction of residence to become such shareholders).

JHIL has the meaning specified in Recital A.

JHINV includes any Parent Entity which has acceded to the Final Funding Agreement in
accordance with that document.

JHINV Contribution has the meaning given to it in the Final Funding Agreement.

JHINV Group means JHINV and its Controlled Entities.

Liquidation means, in respect of any Person, the liquidation of all or substantially
all of its assets (other than, in the case of JHINV, where the acquirer of all or substantially all
of such assets has by deed of accession become bound to observe all the obligations of JHINV under
this deed and the JHINV Guarantee and the other Related Agreements to which JHINV is a party) with
the intention of distributing the proceeds to creditors or security holders, or a final order
directing or requiring such a liquidation is made or entered or deemed to have been made or entered
by any court of competent jurisdiction.

			
	 	 	 
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Listed means listed on a stock market of Australian Stock Exchange Limited or any
approved foreign exchange (as defined under the Corporations Act 2001 of Australia).

Net Finance Money Debt has the meaning given to it in clause 4.2(a).

New Guarantee Trustee has the meaning given to it in clause 7.1(a).

New Person has the meaning given to it in clause 4.6 of the Final Funding Agreement.

Notice of Voting in Insolvency means a written notice from an Insolvency Official of
any matter or matters in connection with the Insolvency of JHINV (or another member of the JHINV
Group where the Insolvency of such member is being administered on a combined or consolidated basis
with an Insolvency of JHINV including any proceedings or reconstruction pursuant to, or any orders
under, Chapter 7 or Chapter 11 of the US Bankruptcy Code which involve both JHINV and such member)
and requiring or inviting the casting of votes by creditors of JHINV (or creditors of the companies
whose Insolvencies are being administered on a combined or consolidated basis) in relation to such
matter or matters.

Option has the meaning given to it in clause 8.3.

Original Final Funding Agreement means the legally binding agreement entitled “Final
Funding Agreement” dated 1 December 2005 between JHINV, the Performing Subsidiary and the NSW
Government to which the Fund Trustee became a party on 8 June 2006.

Parent Entity means any Person which becomes the ultimate holding company of JHINV.

Performing Subsidiary means James Hardie 117 Pty Limited (formerly known as LGTDD Pty
Limited (ACN 116 110 948)) of Level 3, 22 Pitt Street, Sydney NSW 2000 or any other subsidiary of
JHINV substituted for that Person in accordance with the terms of the Final Funding Agreement.

Performing Subsidiary Intercreditor Deed means the deed dated on or about the date of
this deed between the NSW Government, the Fund Trustee, the Performing Subsidiary, JHINV and the
Guarantee Trustee in its separate capacity as trustee for certain lenders to the Performing
Subsidiary (as more fully described in that deed).

Person includes any general partnership, limited partnership, corporation, limited
liability company, joint venture, trust, business trust, governmental agency, co-operative,
association, individual or other entity, and the heirs, executors, administrators, legal
representatives, successors and assigns of such a Person as the context may require.

Preferred Option has the meaning given to it in clause 8.3(f).

			
	 	 	 
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Proceeds means:

	(a)	 	any amount (in the form of money or any other property) received or recovered by a
Compensation Party in respect of the Compensation Debt during an Insolvency of JHINV;
	 
	(b)	 	any amount (in the form of money or any other property) received or recovered by a
Compensation Party in connection with the failure by any of them or JHINV to comply with their
respective obligations under this deed.

Reconstruction Event means:

	(a)	 	the summoning of a meeting of creditors or the obtaining of an order of a court to do so for
the purpose of considering any scheme or plan of arrangement for reconstruction or compromise
with creditors;
	 
	(b)	 	a final order for relief under Chapter 11 of the US Bankruptcy Code is entered by a US court;
	 
	(c)	 	a filing by JHINV for a suspension of payments under Dutch law, provided that the Court
grants the (provisional) suspension of payments to JHINV;
	 
	(d)	 	any comparable action under the laws of any other jurisdiction occurs having substantially
the same effect as the orders described in paragraphs (b) and (c),

but in each case none of the aforementioned events will comprise a Reconstruction Event where the
proceeding or other action is commenced or initiated by or on behalf of the Fund Trustee or the NSW
Government under this deed or the JHINV Guarantee, whether acting alone or together with others,
and for this purpose an order will be deemed to be final when any timely-commenced proceeding for
review of such an order has been concluded without such order being subsequently dismissed,
withdrawn, struck out, vacated or reversed, and the time for commencing any further proceeding for
review of such order has expired.

Related Agreement means documents ancillary to the Final Funding Agreement listed in
Schedule 1 to the Final Funding Agreement.

Replacement Trustee means any replacement trustee of the Charitable Fund and any New
Person, in either case appointed in accordance with the Final Funding Agreement, as a substitute
for Asbestos Injuries Compensation Fund Limited in its capacity as trustee for the Charitable Fund
(or a previously appointed replacement trustee or New Person) as the creditor of:

			
	 	 	 
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	(a)	 	the Performing Subsidiary in respect of the Fund Guaranteed Money and the Final Funding
Agreement; and
	 
	(b)	 	JHINV in respect of the Guarantee (including all amounts payable under the guarantee of
payment of the Fund Guaranteed Money).

Residual Rights has the meaning given to it in clause 4.4.

Security Interest means any mortgage, pledge, lien or charge or any security or
preferential interest or arrangement of any kind or any other right of, or arrangement with, any
creditor to have its claims satisfied in priority to other creditors with, or from the proceeds of,
any asset. This definition:

	(a)	 	includes any retention of title agreements arising other than in the ordinary course of
business; and
	 
	(b)	 	excludes any right of set-off, right to combine accounts, or other similar right or
arrangement arising in the ordinary course of business or by operation of law.

Security Provider means a Person (other than JHINV) who at any time is liable by
guarantee, indemnity or otherwise alone or jointly, or jointly and individually, to pay or
indemnify against non-payment of the Finance Money Debt or the Compensation Debt (as the context
requires).

Specified Office means the office or branch through which the Guarantee Trustee (or
any New Guarantee Trustee) enters into this deed.

Specified Proportion means:

	(a)	 	if in the Insolvency of JHINV, the votes relating to the Compensation Debt can be
proportionately cast in favour of different courses of action:

	 	A.	 	100 per cent of the amount of the Compensation Debt,

	 	 	less

	 	B.	 	such percentage of the Compensation Debt, which when added to all Finance
Money Debt owed by JHINV, represents the amount reasonably expected at that time
(having regard to the value of the assets of JHINV available for distribution to pay
the claims of ordinary unsecured creditors as estimated by the Insolvency Official (or
otherwise determined or estimated for the purposes of the relevant Insolvency
proceeding in accordance with applicable law) and taking into account

			
	 	 	 
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	 	 	 	prior ranking claims, the likely or anticipated distribution to the Financiers by
the Insolvency Official and any likely payment to the Guarantee Trust under clause
4) would be required to enable discharge and satisfaction of the Finance Money
Debt in full; or

	(b)	 	if in the Insolvency of JHINV, the votes relating to the Compensation Debt cannot be
proportionately cast in favour of different courses of action, 100 per cent of the amount of
the Compensation Debt.

Trust Convention means the Convention on the Law applicable to Trusts and on their
Recognition 1985.

Trust Deed has the meaning given to it in the Final Funding Agreement.

US GAAP means generally accepted accounting principles as in force in the United
States of America and, unless expressly otherwise provided in this deed, means those principles as
in force from time to time.

Wind-Up Event means, in respect of a Person, the occurrence of any one or more of the
following:

	(a)	 	a final court order is entered that it be wound up or declared bankrupt;
	 
	(b)	 	a liquidator (excluding a provisional liquidator) is appointed to it and the appointment is
not subsequently terminated;
	 
	(c)	 	a court declaration of bankruptcy is made in relation to it and is not subsequently
withdrawn, struck out, dismissed, vacated or reversed;
	 
	(d)	 	the dissolution of such Person under Dutch law (ontbinding) or the law of any other
jurisdiction;
	 
	(e)	 	the declaration of its bankruptcy under Dutch law (faillissement);
	 
	(f)	 	the Liquidation of that Person;
	 
	(g)	 	a final order for relief occurs or is deemed to occur in relation to it under Chapter 7 or
Chapter 11 of the US Bankruptcy Code which, when implemented, will result in the Liquidation
of that Person; and
	 
	(h)	 	any comparable action occurs under the law of any competent jurisdiction which has a
substantially the same effect to paragraphs (a) to (g) of this definition,

			
	 	 	 
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and an order shall be deemed to be final when any timely-commenced proceeding for review of such an
order has been concluded without such order being subsequently dismissed, withdrawn, struck out,
vacated or reversed, and the time for commencing any further proceeding for review of such order
has expired.

	2.	 	INTERPRETATION

In this deed the following rules of interpretation apply unless the contrary intention
appears.

	(a)	 	Headings are for convenience only and do not affect the interpretation of this deed.
	 
	(b)	 	The singular includes the plural and vice versa.
	 
	(c)	 	Words that are gender neutral or gender specific include each gender.
	 
	(d)	 	Where a word or phrase is given a particular meaning, other parts of speech and grammatical
forms of that word or phrase have corresponding meanings.
	 
	(e)	 	The words ‘such as’, ‘including’, ‘particularly’ and similar expressions are not used as nor
are intended to be interpreted as words of limitation.
	 
	(f)	 	A reference to:

	 	(i)	 	a thing (including but not limited to a chose in action or other right)
includes a part of that thing;
	 
	 	(ii)	 	a party or a Financier includes its successors and permitted assigns;
	 
	 	(iii)	 	a document includes all amendments or supplements to that document;
	 
	 	(iv)	 	a clause, term, party, schedule or attachment is a reference to a clause or
term of, or party, schedule or attachment to this deed;
	 
	 	(v)	 	this deed includes all schedules and attachments to it;
	 
	 	(vi)	 	a law includes a constitutional provision, treaty, decree, convention,
statute, regulation, ordinance, by-law, judgment, rule of common law or

			
	 	 	 
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	 	 	 	equity or a rule of an applicable official stock exchange and is a reference to
that law as amended, consolidated or replaced;

	 	(vii)	 	an agreement other than this deed includes an undertaking, or legally
enforceable arrangement or understanding whether or not in writing;
	 
	 	(viii)	 	a monetary amount is in Australian dollars; and
	 
	 	(ix)	 	the words “to prove for”, “prove” and “right of proof”, when used in
connection with a Insolvency proceeding under Dutch law include, without limitation,
“filing”, “filing for verification purposes” and “verification procedure”, as the
context may require.

	(g)	 	An agreement on the part of two or more persons binds them severally.
	 
	(h)	 	When the day on which something must be done is not a Business Day, that thing must be done
on the following Business Day.
	 
	(i)	 	In determining the time of day where relevant to this deed, the relevant time of day is:

	 	(i)	 	for the purposes of giving or receiving notices, the time of day where a
party receiving a notice is located; or
	 
	 	(ii)	 	for any other purpose under this deed, the time of day in the place where the
party required to perform an obligation is located.

	(j)	 	No rule of construction applies to the disadvantage of a party because that party was
responsible for the preparation of this deed or any part of it.

	3.	 	TRUST CONVENTION

It is the express intention of the parties to this deed that each trust constituted by this
deed:

	(a)	 	be recognised as a trust in accordance with the terms of this deed in any relevant
jurisdiction;
	 
	(b)	 	qualify as a “trust” for the purpose of the Trust Convention; and

			
	 	 	 
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	(c)	 	be recognised as a trust in accordance with the Trust Convention in any jurisdiction where
the Trust Convention applies.

			
	 	 	 
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