Document:

exv4w25

Exhibit 4.25

	 	 	 

	CONFORMED COPY

(EXCLUDING ATTACHMENT)

	 	 

Deed to amend the AFFA and
facilitate the Authorised Loan
Facility

James Hardie Industries SE

James Hardie 117 Pty Limited

The State of New South Wales

Asbestos Injuries Compensation Fund Limited in its capacity as trustee of each of the

Compensation Funds

Gilbert + Tobin

2 Park Street

Sydney NSW 2000

Australia

GPO Box 3810

Sydney NSW 2001

T +61 2 9263 4000

F +61 2 9263 4111

DX 10348 SSE

www.gtlaw.com.au

 

	 	 	 	 	 	 	 
	Contents	 	Page
	1
	 	Defined terms and interpretation	 	 	2	 
	 
	 	 	 	 	 	 
	 
	 	1.1  Definitions in the Dictionary	 	 	2	 
	 
	 	 	 	 	 	 
	 
	 	1.2  Interpretation	 	 	2	 
	 
	 	 	 	 	 	 
	2
	 	AFFA amendments	 	 	2	 
	 
	 	 	 	 	 	 
	 
	 	2.1  Consideration	 	 	2	 
	 
	 	 	 	 	 	 
	 
	 	2.2  AFFA	 	 	2	 
	 
	 	 	 	 	 	 
	 
	 	2.3  No prejudice to Deed of Confirmation	 	 	2	 
	 
	 	 	 	 	 	 
	3
	 	Transaction Legislation Amendments and Authorised Loan Facility	 	 	2	 
	 
	 	 	 	 	 	 
	 
	 	3.1  Transaction Legislation Amendments	 	 	2	 
	 
	 	 	 	 	 	 
	4
	 	Tax confirmations	 	 	3	 
	 
	 	 	 	 	 	 
	 
	 	4.1  Confirmation of rulings	 	 	3	 
	 
	 	 	 	 	 	 
	 
	 	4.2  Reasonable assistance and information	 	 	3	 
	 
	 	 	 	 	 	 
	 
	 	4.3  Notification upon receipt of ATO Confirmations	 	 	3	 
	 
	 	 	 	 	 	 
	5
	 	General	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.1  Counterparts	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.2  Costs, expenses and duties	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.3  Governing law	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.4  Jurisdiction	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.5  Further assurances	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.6  Notices	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.7  Severability	 	 	4	 
	 
	 	 	 	 	 	 
	 
	 	5.8  Variation	 	 	5	 
	 
	 	 	 	 	 	 
	 
	 	5.9  Waiver	 	 	5	 
	 
	 	 	 	 	 	 
	Schedule 1 —  Dictionary	 	 	6	 
	 
	 	 	 	 	 	 
	Schedule 2 —  AFFA Amendments	 	 	9	 
	 
	 	 	 	 	 	 
	Attachment A — Transaction Legislation Amendments	 	 	 	 

			
	Gilbert + Tobin
	 	Mallesons conformed copy 10622441_1

 

	 	 	Date: 9 December 2010

Parties

	 	1	 	James Hardie Industries SE (formerly known as James Hardie Industries N.V.) ARBN
097 829 895, a limited liability company incorporated in the Republic of Ireland
of Europa House, 2nd floor Harcourt Centre, Harcourt Street, Dublin 2, Ireland
(JHISE)
	 
	 	2	 	James Hardie 117 Pty Limited (formerly known as LGTDD Pty Limited)
ABN 30 116 110 948 of Level 3, 22 Pitt Street, Sydney in the State of New South
Wales (JH117)
	 
	 	3	 	The State of New South Wales c/- The Department of Premier and
Cabinet, Level 39, Governor Macquarie Tower, 1 Farrer Place, Sydney in the State
of New South Wales (NSW Government)
	 
	 	4	 	Asbestos Injuries Compensation Fund Limited ACN 117 363 461 in its
capacity as trustee of each of the Compensation Funds established under the
Amended and Restated Trust Deed Dated 14 December 2006 between it as trustee and
JHISE as settlor, of Level 7, 233 Castlereagh Street, Sydney in the State of New
South Wales (Trustee)

Background

	 
	 	A 	 	JHISE, JH117, the NSW Government and the Trustee are parties to the AFFA.
	 
	 	B 	 	The AFFA sets out, among other things, the basis on which JH117 is
required to make funding contributions to the Trustee.
	 
	 	C 	 	Under the terms of the AFFA, JH117 has not been required to make any
contribution to the Trustee for the Financial Year 2009-2010.
	 
	 	D 	 	In the absence of alternative funding arrangements, it appears likely
that the Trustee will, in the short term, cease to be able to pay in full all
Proven Claims and other Payable Liabilities in accordance with the terms of the
AFFA.
	 
	 	E 	 	The NSW Government, the Trustee (as trustee of the Charitable Fund)
and each Liable Entity propose to enter into the Facility Agreement under which
the NSW Government (with the support of the Government of The Commonwealth of
Australia) will agree to provide financial accommodation to the Trustee to assist
the Trustee in paying when due Proven Claims and other Payable Liabilities.
	 
	 	F 	 	The NSW Government introduced, and the Parliament of New South Wales
has passed, the Transaction Legislation Amendments in order to authorise entry
into and the performance of obligations under the Facility Agreement and the
Security Documentation by the Trustee and the Liable Entities.
	 
	 	G 	 	For the purposes of implementing the Facility Agreement and the
Security Documentation and for related purposes, the parties enter into this deed
to amend the AFFA.

			
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          The parties agree

	1	 	Defined terms and interpretation

	 
	 	1.1 	 	Definitions in the Dictionary
	 
	 	 	 	A term or expression starting with a capital letter:

	 
	 	(a)	 	 which is defined in the Dictionary in Schedule 1 (Dictionary), has
the meaning given to it in the Dictionary; and
	 
	 	(b)	 	 which is defined in the Corporations Act, but is not defined in the
Dictionary, has the meaning given to it in the Corporations Act.

	 	1.2	 	Interpretation

	 	 	 	The interpretation clause in Schedule 1 (Dictionary) sets out rules of interpretation
for this deed.

	2	 	AFFA amendments

	 
	 	2.1	 	Consideration

	 	 	 	Each party enters into and assumes obligations under this deed in consideration for
each other party entering into and assuming obligations under this deed and for other
valuable consideration.

	 	2.2	 	AFFA

	 	 	 	The AFFA is varied as set out in Schedule 2 on and from the date on which the ATO
Confirmations are taken to have been obtained in accordance with clause 4.3(a).

	 	2.3	 	No prejudice to Deed of Confirmation

	 	 	 	Each party acknowledges and agrees that nothing in this deed affects the rights and
obligations of any party under clause 2 or 3 of the Deed of Confirmation.

	3	 	Transaction Legislation Amendments and Authorised Loan Facility

	 	3.1	 	Transaction Legislation Amendments

	 	 	 	Each of JHISE and JH117 acknowledges that:

	 	(a)	 	the Transaction Legislation Amendments validly amend the Transaction
Legislation for the purposes of clause 3.3(a)(ii) of the AFFA; and

	 	(b)	 	nothing in the Transaction Legislation Amendments releases JHISE or
any other member of the JHISE Group from any obligation imposed on it by the AFFA
(as amended by this deed), the Related Agreements, the Transaction Legislation (as
amended by the Transaction Legislation Amendments) or the Release Legislation.

			
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	4	 	Tax confirmations

	 	4.1	 	Confirmation of rulings
	 
	 	 	 	The parties agree that JHRH (as provisional head company of the JHRH Multiple Entry
Consolidated Group) and the Trustee (for itself, as trustee of the Charitable Fund and
as trustee of the Discretionary Fund and for the Liable Entitles) will, and JHISE
undertakes to procure that JHRH does, as a result of the Transaction Legislation
Amendments and the matters contemplated by this deed (including the Authorised Loan
Facility), apply to the ATO:

	 	(a)	 	for rulings (which reaffirm the conclusions and opinions reached by
the ATO in the existing Rulings) (as reaffirmed in accordance with the Deed of
Confirmation) and address the additional requirements referred to in Schedule 11
to the AFFA (as amended by this deed) to replace the existing Rulings (as
reaffirmed in accordance with the Deed of Confirmation); and
	 
	 	(b)	 	for confirmation that the Accepted Tax Conditions will remain
unchanged in all material respects,
	 
	 	 	 	(together, “ATO Confirmations”). The ATO Confirmations, if obtained, will constitute a
renewed or substituted ruling as contemplated by the definition of the term “Ruling” in
clause 1.1 of the AFFA (as amended by this deed).

	 	4.2	 	Reasonable assistance and information

	 	(a)	 	The NSW Government agrees to provide any information or assistance
reasonably requested by JHISE or the Trustee in relation to the applications for
the ATO Confirmations.
	 
	 	(b)	 	JHISE and the Trustee will keep all parties informed of progress in
relation to applying for, and obtaining, the ATO Confirmations and within 2
Business Days of a request from another party provide copies of correspondence
with the ATO, together with any explanation that may reasonably be required.

	 	4.3	 	Notification upon receipt of ATO Confirmations

	 	(a)	 	The ATO Confirmations will be taken to have been obtained if
PricewaterhouseCoopers, acting for JHISE and the Trustee, confirm to JHISE and the
Trustee and NSWG Tax Advisor, acting for the NSW Government, confirms to the NSW
Government, that in their respective opinions the form of the ATO Confirmations
satisfy the requirements of clause 4.1.
	 
	 	(b)	 	JHISE and the Trustee each agree to procure that
PricewaterhouseCoopers provides its opinion within 5 Business Days after the ATO
has advised them of its determination in respect of the matters the subject of the
application for the ATO Confirmations and to notify the other parties as to
whether or not PricewaterhouseCoopers has given the confirmation contemplated by
clause 4.3(a) within those 5 Business Days.
	 
	 	(c)	 	JHISE and the Trustee must procure that PricewaterhouseCoopers
provides copies of the ATO Confirmations to both the NSW Government and NSWG Tax
Advisor within 1 Business Day after receipt of the ATO Confirmations.
	 
	 	(d)	 	The NSW Government agrees to procure that NSWG Tax Advisor provides
its opinion within 5 Business Days after receipt by the NSW
Government of the
notification referred to in clause 4.3(b) and to notify the other parties as to
whether

			
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	 	 	 	or not NSWG Tax Advisor has given the confirmation contemplated by clause
4.3(a) within those 5 Business Days.
	 
	 	(e)	 	The provision of the confirmations by PricewaterhouseCoopers and NSWG
Tax Advisor contemplated by clause 4.3 (a) shall, as between the parties,
constitute conclusive evidence that the ATO Confirmations have been obtained.

	5	 	General

	 	5.1	 	Counterparts
	 
	 	 	 	This deed may be executed in any number of counterparts, each of which, when executed,
is an original. Those counterparts together make one instrument.

	 	5.2	 	Costs, expenses and duties
	 
	 	 	 	Except as expressly provided in this deed, each party must pay its own costs and
expenses of negotiating, preparing and executing this deed and any other instrument
executed under this deed.

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

	 	5.4	 	Jurisdiction
	 
	 	 	 	Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the
courts of New South Wales.

	 	5.5	 	Further assurances
	 
	 	 	 	Except as expressly provided in this deed, each party must, at its own expense, do all
things reasonably necessary to give full effect to this deed and the matters
contemplated by it.

	 	5.6	 	Notices

	 	(a)	 	A notice or other communication under this deed is only effective if
it is in writing, signed by or on behalf of the party giving it and it is received
in full and legible form at the addressee’s address or fax number. It is regarded
as received at the time and on the day it is actually received, but if it is
received on a day that is not a Business Day or after 5.00 pm on a Business Day it
is regarded as received at 9.00 am on the following Business Day.
	 
	 	(b)	 	For the purposes of this clause, a party’s address and fax number are
those set out in the AFFA, unless the party has notified a changed address or fax
number, in which case the notice, consent, approval or other communication must be
to that address or number.

	 	5.7	 	Severability
	 
	 	 	 	Any term of this deed which is wholly or partially void or unenforceable is severed to
the extent that it is void or unenforceable. The validity or enforceability of the
remainder of this deed is not affected.

			
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	 	5.8	 	Variation
	 
	 	 	 	No variation of this deed is effective unless made in writing and signed by each party.

	 	5.9	 	Waiver

	 	(a)	 	No waiver of a right or remedy under this deed is effective unless it
is in writing and signed by the party granting it. It is only effective in the
specific instance and for the specific purpose for which it is granted.
	 
	 	(b)	 	A single or partial exercise of a right or remedy under this deed
does not prevent a further exercise of that or of any other right or remedy.
	 
	 	(c)	 	Failure to exercise or delay in exercising a right or remedy under
this deed does not operate as a waiver or prevent further exercise of that or of
any other right or remedy.

			
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Schedule 1
— Dictionary

	1	 	Dictionary

	 	 	 	In this deed:
	 
	 	 	 	Accepted Tax Condition the meaning given to it in the AFFA.
	 
	 	 	 	AFFA means the document entitled “Amended & Restated Final Funding Agreement in respect
of the provision of long term funding for compensation arrangements for certain victims
of Asbestos-related diseases in Australia” dated 21 November 2006 between JHISE, JH117,
the NSW Government and the Trustee, as amended by amending deeds dated 6 August 2007, 8
November 2007, 11 June 2008 and 17 July 2008 between those parties and by the Deed of
Confirmation.
	 
	 	 	 	ATO means the Australian Taxation Office.
	 
	 	 	 	ATO Confirmations means the rulings and confirmations referred to in clause 4.1.
	 
	 	 	 	Authorised Loan Facility means the loan facility provided under the Facility Agreement
and secured under the Security Documentation.
	 
	 	 	 	Business Day means a day on which banks are open for business excluding Saturdays,
Sundays and public holidays in Sydney, New South Wales.
	 
	 	 	 	Charitable Fund has the meaning given to it in the AFFA.
	 
	 	 	 	Compensation Funds has the meaning given to it in the AFFA.
	 
	 	 	 	Corporations Act means Corporations Act 2001 (Cth).
	 
	 	 	 	Deed of Confirmation means the Deed of Confirmation dated 24 June 2009 between JHISE,
JH117, the NSW Government and the Trustee.
	 
	 	 	 	Discretionary Fund has the meaning given to it in the AFFA.
	 
	 	 	 	Facility Agreement means the document entitled AICF Facility Agreement dated on or
about the date of this deed between the NSW Government, the Trustee (as trustee of the
Charitable Fund) and each Liable Entity.
	 
	 	 	 	Financial Year has the meaning given to it in the AFFA.
	 
	 	 	 	JHISE Group has the meaning given to “JHINV Group” in the AFFA.
	 
	 	 	 	JHRH means James Hardie Research (Holdings) Pty Limited ABN 51 082 944 821.
	 
	 	 	 	Liable Entity has the meaning given to it in the AFFA.
	 
	 	 	 	Multiple Entry Consolidated Group has the meaning given to it in the Income Tax
Assessment Act 1997 (Cth).
	 
	 	 	 	NSWG Tax Advisor means Gilbert + Tobin or such other tax adviser as the NSW Government
may appoint.
	 
	 	 	 	Payable Liabilities has the meaning given to it in the AFFA.

			
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	 	 	 	Proven Claims has the meaning given to it in the AFFA.
	 
	 	 	 	Related Agreements has the meaning given to it in the AFFA.
	 
	 	 	 	Release Legislation has the meaning given to it in the AFFA.
	 
	 	 	 	Ruling has the meaning given to it in the AFFA.
	 
	 	 	 	Security Documentation means the document entitled Fixed and Floating Charge dated on
or about the date of this deed between the NSW Government, the Trustee (as trustee of
the Charitable Fund) and each Liable Entity.
	 
	 	 	 	Transaction Legislation has the meaning given to it in the AFFA.
	 
	 	 	 	Transaction Legislation Amendments means the James Hardie Former Subsidiaries (Winding
Up and Administration) Amendment Act 2009, attached at Attachment A.

	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 person includes a natural person, partnership, joint
venture, government agency, association, corporation or other body
corporate;
	 
	 	(ii)	 	a thing (including, but not limited to, a chose in action
or other right) includes a part of that thing;
	 
	 	(iii)	 	a party includes its successors and permitted assigns;
	 
	 	(iv)	 	a document includes all amendments or supplements to that
document;
	 
	 	(v)	 	a clause, term, party, schedule or attachment is a
reference to a clause or term of, or party, schedule or attachment to this
deed;
	 
	 	(vi)	 	this deed includes all schedules and attachments to it;
	 
	 	(vii)	 	a law includes a constitutional provision, treaty,
decree, convention, statute, regulation, ordinance, by-law, judgment, rule
of common law or equity or a rule of an applicable Financial Market and is a
reference to that law as amended, consolidated or replaced;

			
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	 	(viii)	 	an agreement other than this deed includes an undertaking, or legally
enforceable arrangement or understanding, whether or not in writing; and
	 
	 	(ix)	 	a monetary amount is in Australian dollars;

	 	(g)	 	an agreement on the part of two or more persons binds them jointly
and 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; and

	 	(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.

			
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	 	 	Schedule 2 — AFFA Amendments

	 	 	 	The AFFA is amended as follows:

	 	(a)	 	Clause 1.1 is amended by

	 	(i)	 	the insertion in alphabetical order of the following new
defined terms:
	 
	 	 	 	“Authorised Loan Facility means a loan facility provided under a Facility
Agreement and secured under Security Documentation.”
	 
	 	 	 	“Facility Agreement means a loan facility agreement between the NSW
Government, the Trustee and the Liable Entities authorised under the
Transaction Legislation.”
	 
	 	 	 	“Initial Facility Agreement means the Facility Agreement entitled “AICF
Facility Agreement” between the Trustee (in its capacity as trustee of the
Charitable Fund), the Liable Entities and the NSW Government and dated
[DATE] 2010].”
	 
	 	 	 	“Security Documentation means security documentation authorised under the
Transaction Legislation under which the Trustee (in its capacity as
trustee of the Charitable Fund) and the Liable Entities grant interests
in, or other entitlements to, assets (or proceeds of asset realisations)
as security for or in connection with a loan facility provided under a
Facility Agreement.”
	 
	 	(ii)	 	the insertion of the following words at the end of the
definition of “Amending Bill”:
	 
	 	 	 	“, and the James Hardie Former Subsidiaries (Winding up and
Administration) Amendment Bill 2009 (NSW)”.
	 
	 	(iii)	 	the insertion of the following words at the end of the
definition of “Operating Expenses”:
	 
	 	 	 	“and also excludes, for the avoidance of doubt, any principal repayable
and any interest (whether or not capitalised) or other amounts payable
under or in connection with an Authorised Loan Facility”.
	 
	 	(iv)	 	the insertion of a new paragraph (h) into the definition
of “Payable Liability” as follows:

	 	(h) 	 	“any amount payable in connection with an
Authorised Loan Facility, including without limitation any principal
repayable, any interest payable (whether or not capitalised) and any
other amounts payable by the Trustee or any Liable Entity under or in
connection with an Authorised Loan Facility,”.

	 	 	 	the deletion of the word “and” after paragraph (f) and the insertion of
the word “and” after paragraph (g).
	 
	 	(v)	 	the insertion into the definition of “Ruling” of the
words “or Schedule 11” after the words “clause 2.2(b)(i)”.
	 
	 	(vi)	 	the insertion at the end of the definition of “Tax
Requirements” of the words “and Schedule 11”.

			
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	 	(vii)	 	the deletion of the word “and” in the first line of the
definition of “SPF Funded Liabilities” and the insertion after the reference
to paragraph (e) in the first line of that definition of “,” and after the
reference to paragraph (g) in the first line of that definition of the words
“and (h)”.

	 	(b)	 	Subclause 9.4(a) is amended by the deletion of the word “and” after
paragraph (a)(ii) and the insertion after paragraph (a)(iii) of the word “and” and
the insertion of a new paragraph (iv) after the existing paragraph (iii) as
follows:

	 	(iv) 	 	“plus an amount equal to the sum of all loan principal
outstanding under an Authorised Loan Facility, all accrued interest (whether
or not capitalised) under an Authorised Loan Facility and all other amounts
payable under or in connection with an Authorised Loan Facility as at the
end of the Prior Financial Year.”.

	 	(c)	 	Subclause 9.10(b)(i) is amended by the insertion of the following
words after the words “relevant accounting standards” in the last line of that
subclause:
	 
	 	 	 	“but excluding, for the avoidance of doubt, the proceeds of any financial
accommodation provided under an Authorised Loan Facility and any undrawn
financial accommodation under an Authorised Loan Facility”,
	 
	 	 	 	and subclause 9.10(b)(ii) is amended by the insertion of the following words
after the words “Trustee and Liable Entities” in the first line of that
subclause:
	 
	 	 	 	“(excluding any principal repayable under or interest (whether or not
capitalised) or other amounts payable under or in connection with an Authorised
Loan Facility)”.
	 
	 	(d)	 	Clause 9.15 is amended by the insertion of a new subclause (d) after
the existing subclause (c) as follows:

	 	(d) 	 	“For the avoidance of doubt, nothing in this clause 9.15
operates to prevent or limit the making of payments in connection with an
Authorised Loan Facility including without limitation:

	 	(i)	 	repayment of any part of the principal
payable under an Authorised Loan Facility;
	 
	 	(ii)	 	payment of any interest (whether or not
capitalised) payable under an Authorised Loan Facility; and
	 
	 	(iii)	 	payment of any other amounts that are
payable under or in connection with an Authorised Loan Facility.”.

	 	(e)	 	The text of clause 18.1 is deleted and replaced with the following:
	 
	 	 	 	“Subject to the terms of the Trust Deed, the Trustee may borrow funds in the
event that there is a shortfall or a prospective shortfall of funds being
available to it by way of Funding Payments, and may repay such borrowed funds and
pay any interest (whether or not capitalised) or other amounts payable in respect
of or in connection with such borrowed funds.”.
	 
	 	(f)	 	Clause 18.2 is amended by the deletion of the word “The” at the
beginning of the clause, and the insertion of the following words:
	 
	 	 	 	“Except as provided in a Facility Agreement, the”.
	 
	 	(g)	 	A new clause 18.3 and clause 18.4 is inserted as follows:

			
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	 	 	 	“18.3 Repayment of amounts under an Authorised Loan Facility

	 	 	 	The Parties agree that no later than 1 week after JHINV announces its
third quarter financial results in each Financial Year, they will meet to
discuss the amount of the Annual Payment that is then anticipated to be
made on the next Payment Date and its impact on the ability of the Trustee
to meet the anticipated Payable Liabilities for the Financial Year in
which that Payment Date falls.
	 
	 	 	 	Note in relation to clause 18.3
	 
	 	 	 	The intention of any meeting convened in accordance with clause 18.3 is
for the Parties to consider any funding needs of the Trustee including the
Trustee’s capacity to repay amounts under any Authorised Loan Facility.
	 
	 	18.4	 	Facility Agreements and amendments
	 
	 	(a)	 	The NSW Government agrees with JHINV that it will not
enter into any Facility Agreement or Security Documentation without the
prior written consent of JHINV (such consent not to be unreasonably withheld
or delayed). JHINV acknowledges that it has consented to the form of the
Initial Facility Agreement and the Security Documentation entered into in
connection with the Initial Facility Agreement.
	 
	 	(b)	 	The NSW Government agrees with JHINV that it will not
amend any Facility Agreement or Security Documentation without the prior
written consent of JHINV (such consent not to be unreasonably withheld or
delayed).”

	 	(h)	 	A new Schedule 11 is inserted as follows:

	 	“Schedule 11
	 
	 	For the purposes of this schedule:

	 	Advance means an Advance as defined in the Initial Facility Agreement.
	 
	 	Lender means the Lender as defined in the Initial Facility Agreement.

	 	The Tax Requirements to be satisfied throughout the term of the Initial Facility
Agreement and addressed in private binding rulings are:

	 	(a)	 	the proceeds of any Advance received by the Trustee of
the Charitable Fund under the Initial Facility Agreement will not form part
of the assessable income of the Liable Entities, the Trustee of the
Charitable Fund or the Trustee of the Discretionary Fund as ordinary or
statutory income;
	 
	 	(b)	 	any transfer of interests in, or other entitlements to,
assets (or proceeds from asset realisations) by the Liable Entities under
Security Documentation in connection with Advances provided under the
Initial Facility Agreement will not result in assessable income of the
Liable Entities or the Trustee of the Charitable Fund or the Trustee of the
Discretionary Fund as ordinary or statutory income;
	 
	 	(c)	 	if a Liable Entity is required, under the Initial
Facility Agreement to make a payment to the Lender, the amount of the
payment will not form part of the assessable income of the Trustee of the
Charitable Fund or the Trustee of the Discretionary Fund as either ordinary
or statutory income;

			
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	 	(d)	 	if the Trustee of the Charitable Fund pays an amount to a
Liable Entity to settle the rights of indemnity and/or rights of subrogation
of that Liable Entity that arise as a consequence of the Liable Entity
making a payment to the Lender under the Initial Facility Agreement, no
amount will be included in the assessable income of the Liable Entity as
ordinary or statutory income;
	 
	 	(e)	 	if a Liable Entity releases the Trustee of the Charitable
Fund from its obligations to that Liable Entity that arise as a consequence
of:

	 	a.	 	the Liable Entities transferring interests
in, or other entitlements to, assets (or proceeds from asset
realisations) as security for or in connection with an Advance
provided under the Initial Facility Agreement; or
	 
	 	b.	 	the Liable Entities making a payment for or
in connection with those security arrangements, including any
payments made by the Liable Entities under the Initial Facility
Agreement,

	 	 	 	no amount will form part of the assessable income of the Trustee of the
Charitable Fund or the Trustee of the Discretionary Fund as ordinary or
statutory income;
	 
	 	(f)	 	Division 230 of the Income Tax Assessment Act 1997 will
not apply to the Trustee of the Charitable Fund, the Trustee of the
Discretionary Fund or the Liable Entities to alter the conclusions reached
in (a) to (e) above;
	 
	 	(g)	 	Part IVA of the Income Tax Assessment Act 1936 will not
apply with respect to any or all payments or transactions contemplated by
the Initial Facility Agreement; and
	 
	 	(h)	 	for the purposes of A New Tax System (Goods and Services
Tax) Act 1999 the transaction flows that occur under the Initial Facility
Agreement and Security Documentation in connection with Advances provided
under the Initial Facility Agreement do not represent or comprise
consideration for a taxable supply made by or to the Trustee or the Liable
Entities.”

			
	Gilbert + Tobin
	 	Schedule 2 — Dictionary | page | 12

 

 

Execution page

Executed as a deed.

	 	 	 	 	 	 	 

	SIGNED, SEALED AND DELIVERED

by The Honourable John Hatzistergos

MLC Attorney General of New South

Wales for THE STATE OF NEW

SOUTH WALES in the presence of:

	 	 	)

)

)

)

)

)	 	 	 
	 
	 	 	)	 	 	 
	
/s/ L Sanderson
 

Signature of witness

	 	 	)

)	 	 	/s/ J Hatzistergos

Signature

	 
	 	 	)	 	 	 
	
LEIGH RAE SANDERSON

	 	 	)	 	 	Attorney General of New South Wales
	 
	 	 	)	 	 	 
	
/s/ Leigh Rae Sanderson
 

Name of witness (block letters)

	 	 	)

)

)

)	 	 	 
	EXECUTED by ASBESTOS INJURIES

COMPENSATION FUND LIMITED in

accordance with section 127(1) of the

Corporations Act 2001 (Cwlth) by

authority of its directors:

	 	 	)

)

)

)

)

)	 	 	 
	 
	 	 	)	 	 	 
	/s/ J Marchione
 

Signature of director

	 	 	)

)	 	 	/s/ D Booth

Signature of company secretary*

	 
	 	 	)	 	 	 
	JOANNE MARCHIONE

	 	 	)	 	 	DALLAS BOOTH
	 

	 	 	 	 	 	 
	Name of director (block letters)

	 	 	)

)	 	 	Name of company secretary* (block
letters)

			
	Gilbert + Tobin
	 	Execution  | page |  13

 

 

	 	 	 	 	 	 	 

	EXECUTED by

as an authorised signatory for, and

SEALED AND DELIVERED as a deed by,

JAMES HARDIE INDUSTRIES S.E. in the

presence of:

	 	 	)

)

)

)

)

)	 	 	/s/ James Osborne
 

By executing this deed the signatory

states that the signatory has received

no notice of revocation of the authority

under which the signatory signs this

deed
	 
	 	 	)	 	 	 
	/s/ M Kavanagh
 

Signature of witness

	 	 	)

)

)	 	 	Director

Position

	MARGARET KAVANAGH

	 	 	)	 	 	/s/ Marcin Firek
	 

	 	 	 	 	 	 
	Name of witness (block letters)

	 	 	)	 	 	By executing this deed the signatory 
	 

	 	 	)

)

)

)

)	 	 	states that the signatory has received

no notice of revocation of the authority

under which the signatory signs this

deed
	 
	 	 	)	 	 	 
	 

	 	 	)	 	 	Secretary
	 	 	 	 	 	 
	 	 	)

)

)

)

	 	 	Position
	EXECUTED by JAMES HARDIE 117

PTY LIMITED in accordance with

section 127(1) of the Corporations Act

2001 (Cwlth) by authority of its

directors:	 	 	)

)

)
)

)	 	 	 
	 
	 	 	
)	 	 	 
	/s/ B Potts

	 	 	)	 	 	/s/ G M Jarvi
	 

	 	 	 	 	 	 
	Signature of director

	 	 	)	 	 	Signature of company secretary*
	 
	 	 	)	 	 	 
	BRUCE J W POTTS

	 	 	)	 	 	GUY M JARVI
	 

	 	 	 	 	 	 
	Name of director (block letters)

	 	 	)

)	 	 	Name of company secretary* (block
letters)

			
	Gilbert + Tobin
	 	Execution | page | 14

 

 

Attachment A —

Transaction Legislation Amendment

	 	 	 
	Gilbert + Tobin
	 	Attachment Aexv4w40

Exhibit 4.40

			
	CONFORMED COPY
	 	

 

AICF
facility agreement

Asbestos Injuries Compensation Fund Limited

ACN 117 363 461 in its capacity as trustee of the Charitable Fund established under a trust deed
dated 7 April 2006 (as amended and restated) between it as trustee and James Hardie Industries SE
as settlor

ABN 60 Pty Limited (under NSW administered winding up)

ACN 000 009 263

Amaca Pty Ltd (under NSW administered winding up)

ACN 000 035 512

Amaba Pty Ltd (under NSW administered winding up)

ACN 000 387 342

The State of New South Wales

Gilbert
+ Tobin

2 Park Street

Sydney NSW 2000

Australia

GPO Box 3810

Sydney NSW 2001

T +61 2 9263 4000

F +61 2 9263 4111

DX 10348 SSE

www.gtlaw.com.au

 

 

	 	 	 	 	 

	Contents
	 	Page
	1 Defined terms and interpretation
	 	 	1	 
	1.1 Definitions in the Dictionary
	 	 	1	 
	1.2 Interpretation
	 	 	1	 
	2 The facility
	 	 	2	 
	2.1 Amount
	 	 	2	 
	2.2 Purpose
	 	 	2	 
	2.3 Availability
	 	 	2	 
	2.4 Quarterly and ad-hoc drawdowns
	 	 	2	 
	2.5 Discretionary uplift
	 	 	2	 
	3 Conditions precedent
	 	 	2	 
	3.1 AFFA Amending Deed Condition
	 	 	2	 
	3.2 Conditions
	 	 	3	 
	3.3 Conditions for each Advance
	 	 	3	 
	3.4 Requirements of Drawdown Notice
	 	 	4	 
	3.5 Form for calculation of Shortfall Amount
	 	 	5	 
	4 Interest
	 	 	5	 
	4.1 Interest
	 	 	5	 
	4.2 Interest Periods
	 	 	6	 
	4.3 Capitalisation
	 	 	6	 
	5 Repayment, prepayment and cancellation
	 	 	6	 
	5.1 Repayment and prepayment
	 	 	6	 
	5.2 Commitment
	 	 	7	 
	6 Payments
	 	 	8	 
	6.1 Payments by Obligor
	 	 	8	 
	6.2 Amounts Payable on Demand
	 	 	8	 
	6.3 Gross payments
	 	 	8	 
	6.4 Withholdings and Deductions
	 	 	8	 
	6.5 Allocation of Receipts
	 	 	8	 
	7 Tax
	 	 	9	 

	 	 	 

	Gilbert + Tobin
	 	Mallesons conformed copy 10622426_1

 

 

	 	 	 	 	 

	7.1 Tax
	 	 	9	 
	7.2 GST
	 	 	9	 
	8 Expenses
	 	 	9	 
	8.1 Expenses
	 	 	9	 
	9 Representations and warranties
	 	 	10	 
	10 Undertakings
	 	 	10	 
	10.1 Performance under Transaction Documents
	 	 	10	 
	10.2 General positive undertakings
	 	 	10	 
	10.3 General negative undertakings
	 	 	12	 
	10.4 Trust undertakings
	 	 	12	 
	10.5 Undertakings relating to Insurance Policies
	 	 	13	 
	11 Events of default
	 	 	14	 
	11.1 Effect
	 	 	14	 
	11.2 Events of Default
	 	 	14	 
	12 Guarantee
	 	 	17	 
	12.1 Guarantee
	 	 	17	 
	12.2 Payment
	 	 	17	 
	12.3 Securities for other money
	 	 	17	 
	12.4 Amount of Amount Outstanding
	 	 	17	 
	12.5 Avoidance of payments
	 	 	17	 
	12.6 No obligation to marshal
	 	 	18	 
	12.7 Non-exercise of Guarantors’ rights
	 	 	18	 
	12.8 Principal and independent obligation
	 	 	18	 
	12.9 Suspense account
	 	 	19	 
	12.10 Unconditional nature of obligations
	 	 	19	 
	12.11 No competition
	 	 	21	 
	12.12 Continuing guarantee
	 	 	22	 
	12.13 Variation
	 	 	22	 
	13 Indemnities
	 	 	22	 
	13.1 General indemnity
	 	 	22	 

	 	 	 

	Gilbert + Tobin

	 	Mallesons conformed copy 10622426_1

 

 

	 	 	 	 	 

	13.2 Continuing indemnities and survival of indemnities
	 	 	22	 
	13.3 Payment
	 	 	23	 
	14 General
	 	 	23	 
	14.1 Notices
	 	 	23	 
	14.2 Governing law
	 	 	24	 
	14.3 Jurisdiction
	 	 	24	 
	14.4 Invalidity
	 	 	24	 
	14.5 Amendments and Waivers
	 	 	24	 
	14.6 Cumulative rights
	 	 	25	 
	14.7 Non-merger
	 	 	25	 
	14.8 Further assurances
	 	 	25	 
	14.9 Supersedes previous agreements
	 	 	25	 
	14.10 Assignment
	 	 	25	 
	14.11 Consents
	 	 	26	 
	14.12 Counterparts
	 	 	26	 
	14.13 Authorisations
	 	 	26	 
	15 Limitation of liability
	 	 	26	 
	15.1 Capacity
	 	 	26	 
	15.2 Limitation of liability
	 	 	26	 
	15.3 Waiver of rights
	 	 	26	 
	15.4 Qualifications to limit
	 	 	27	 
	15.5 Right of indemnity out of assets of the Charitable Fund
	 	 	27	 
	Schedule 1 —  Dictionary
	 	 	28	 
	Schedule 2 —  Condition precedent certificate
	 	 	37	 
	Schedule 3 —  Drawdown notice
	 	 	38	 
	Schedule 4 —  Warranties
	 	 	39	 
	Schedule 5 —  Insurance Policies
	 	 	42	 
	Execution page
	 	 	43	 

	 	 	 

	Gilbert + Tobin

	 	Mallesons conformed copy 10622426_1

 

 

	 	 	 	Date: 9 December 2010

Parties

	 	1	 	Asbestos Injuries Compensation Fund Limited ACN 117 363 461 (AICF) in its
capacity as trustee of the Charitable Fund established under a trust deed dated 7
April 2006 (as amended and restated) between it as trustee and James Hardie
Industries SE as settlor, of Level 7, 233 Castlereagh Street, Sydney, New South
Wales (Borrower)
	 
	 	2	 	ABN 60 Pty Limited (under NSW administered winding up) ACN 000 009
263, of Level 7, 233 Castlereagh Street, Sydney, New South Wales (ABN 60)
	 
	 	3	 	Amaca Pty Ltd (under NSW administered winding up) ACN 000 035 512, of
Level 7, 233 Castlereagh Street, Sydney, New South Wales (Amaca)
	 
	 	4	 	Amaba Pty Ltd (under NSW administered winding up) ACN 000 387 342, of
Level 7, 233 Castlereagh Street, Sydney, New South Wales (Amaba)
	 
	 	5	 	The State of New South Wales, of c/- The NSW Treasury, Level 27,
Governor Macquarie Tower, 1 Farrer Place, Sydney, New South Wales (Lender)
	 
	 	Recitals
	 
	 	1	 	Each Obligor has requested that the Lender provide financial
accommodation to the Borrower to assist the Borrower in paying when due, among
other things, Personal Asbestos Claims and Marlew Claims.
	 
	 	2	 	The Lender has agreed to do so subject to the terms of this document.
	 
	 	3	 	The Commonwealth of Australia has provided, or is to provide, funding
to the Lender in a principal amount equal to half of the Commitment (as at the
date of this document) to assist the Lender in making the Facility available to
the Borrower.
	 
	 	The parties agree

1 Defined terms and interpretation

	 
	 	 	 	1.1     Definitions in the Dictionary
	 
	 	 	 	A term or expression starting with a capital letter:

	 	(a)	 	which is defined in the Dictionary in Schedule 1 (Dictionary), has
the meaning given to it in the Dictionary;
	 
	 	(b)	 	which is defined in the AFFA, but is not defined in the Dictionary,
has the meaning given to it in the AFFA;
	 
	 	(c)	 	which is defined in the Corporations Act, but is not defined in the
Dictionary or the AFFA, has the meaning given to it in the Corporations Act; and
	 
	 	(d)	 	which is defined in the GST Law, but is not defined in the
Dictionary, the AFFA or the Corporations Act, has the meaning given to it in the
GST Law.

	 	1.2	 	Interpretation
	 
	 	 	 	The interpretation clause in Schedule 1 (Dictionary) sets out rules of interpretation
for this document.

			
	Gilbert + Tobin
	 	page | 1

 

 

	2	 	The facility

	 
	 	2.1	 	Amount
	 
	 	 	 	Subject to the terms of this document, the Lender agrees to make available to the
Borrower during the Availability Period, a cash advance facility to draw Advances up to
a total amount not exceeding the Commitment.
	 
	 	2.2	 	Purpose
	 
	 	 	 	The Borrower must use an Advance only for an Approved Purpose.

	 
	 	2.3	 	Availability

	 
	 	 	 	The Undrawn Commitment is cancelled at 5.00 pm on the last day of the Availability
Period.
	 
	 	2.4	 	Quarterly and ad-hoc drawdowns
	 
	 	 	 	Subject to the terms of this document and the satisfaction or waiver of all applicable
conditions precedent, the parties currently intend that:

	 	(a)	 	in relation to the First Period, one Advance (if and as necessary) be
made after the date the AFFA Amending Deed has come into force in accordance with
clause 2.2 of that deed in the amount of the Shortfall Amount (if any) for the
First Period; and
	 
	 	(b)	 	in relation to each of the 9 Periods following the First Period, up
to four Advances (if and as necessary) be made with the first such Advance to be
made on or about the Review Date that is the first day of that Period and each
subsequent Advance to be made on or about the date that is 3 months after that
Review Date, each Advance to be in the amount of 25% (or such other percentage
agreed by the parties) of the Shortfall Amount (if any) for that Period; and
	 
	 	(c)	 	additional Advances may be made during the Availability Period on an
ad hoc basis as and when necessary in an amount based on the actual shortfall (if
any) of the cash amount available to the Obligors on a consolidated basis for the
relevant Period (being a Period during the Availability Period and, for the
avoidance of doubt, after taking into account any Advance made in respect of that
Period) in order to meet the Approved Purpose in that Period.

	 	2.5	 	Discretionary uplift
	 
	 	 	 	The Lender may, in consultation with the Borrower, increase the amount of any Advance
above the amount contemplated by clause 2.4 by an amount (Uplift Amount) acceptable to
the Lender in order to reduce the likelihood of the need to make ad hoc Advances as
contemplated by clause 2.4(c). The Lender is not obliged to do so.

	3	 	Conditions precedent

	 
	 	3.1	 	AFFA Amending Deed Condition
	 
	 	 	 	The Lender must not make the Facility available or provide any Advance unless the AFFA
Amending Deed has come into force in accordance with clause 2.2 of that deed.

			
	 
	Gilbert + Tobin
	 	page  | 2

 

 

	 	3.2	 	Conditions

	 	 	 	The Lender is not obliged to make the Facility available unless the Lender is satisfied
that the following conditions precedent are fulfilled or waived by the Lender:

	 	(a)	 	Conditions precedent certificate: the Lender receives a certificate
in the form of Schedule 2 for each Obligor which:

	 	(i)	 	provides the details and annexures required by Schedule
2; and
	 
	 	(ii)	 	is dated no more than 5 days before the proposed first
Drawdown Date;

	 	(b)	 	Transaction Documents: the Lender receives originals of each
Transaction Document, duly executed by all parties to them other than the Lender
and, where applicable, in registrable form together with all executed documents
necessary to register them;
	 
	 	(c)	 	other amendments: the Lender receives evidence that such amendments
to the Transaction Legislation, each Trust Deed and any other relevant act,
regulation, law, policy, trust deed, constitution or document (other than the AFFA
under the AFFA Amending Deed) as are required by the Lender in connection with the
Facility have been agreed and, where required, have been documented and have
commenced (including that the James Hardie Former Subsidiaries (Winding Up and
Administration) Amendment Act 2009 (NSW) has commenced);
	 
	 	(d)	 	legal opinions: the Lender receives a legal opinion from Baker &
Mckenzie in relation to each Obligor and their obligations under the Transaction
Documents and such other legal opinions as the Lender may reasonably require;
	 
	 	(e)	 	Registration: the Borrower provides evidence to the Lender that
registration has been completed (or will be completed promptly after the Facility
is made available) to ensure that each Transaction Document is valid, binding and
enforceable except to the extent limited by equitable principles, statutes of
limitation and applicable laws affecting creditors’ rights generally; and
	 
	 	(f)	 	other documents: each Obligor gives the Lender any other document or
information which the Lender reasonably requires.

	 	3.3	 	Conditions for each Advance
	 
	 	 	 	The Lender is not obliged to provide an Advance unless the Lender is satisfied that the
following conditions precedent are fulfilled or waived by the Lender:

	 	(a)	 	Drawdown Notice: the Borrower gives the Lender a Drawdown Notice for
that Advance which satisfies clause 3.4;
	 
	 	(b)	 	Annual Actuarial Report: the Lender has received a copy of the most
recent Annual Actuarial Report prepared in accordance with and as required by the
AFFA including all forecast:

	 	(i)	 	Personal Asbestos Claims;
	 
	 	(ii)	 	Marlew Claims; and
	 
	 	(iii)	 	recoveries under the Insurance Policies;

	 	(c)	 	Accounts: the Lender has received a copy of the Accounts of each
Obligor (other than the Borrower) and the consolidated Accounts for the
Compensation Funds

			
	 
	Gilbert + Tobin
	 	page | 3

 

 

	 	 	 	and their Controlled Entities on a consolidated basis for the most recent
Financial Year ended prior to the proposed Drawdown Date for that Advance for
which such Accounts have been prepared;
	 
	 	(d)	 	operating budget: the Lender has received a copy of the consolidated
operating budget for the Obligors for the Financial Year that includes the
proposed Drawdown Date for that Advance, including details of all anticipated
costs, expenses, liabilities and receipts of, and of the cash and other funds
available to, the Obligors;
	 
	 	(e)	 	Annual Payment: the Lender has received details of the Annual Payment
determined immediately preceding the proposed Drawdown Date for that Advance or,
if that Advance is to be made on a Review Date, the Annual Payment determined on
that Review Date or on a date as otherwise agreed between the parties;
	 
	 	(f)	 	evidence as to Shortfall Amount: subject to clause 3.5, the Lender
has received evidence of the liabilities falling within the Approved Purpose of
the Facility which are likely to become due and payable in the Period to which
that Advance relates and the funds projected to be available to the Obligors on a
consolidated basis in that Period to meet those liabilities, in the form of a
schedule of calculations, certified by two directors of the Borrower or a director
and the chief executive officer of the Borrower, setting out the Shortfall Amount
(if any) for that Period and the way in which it has been calculated;
	 
	 	(g)	 	no breach: as at the date the Drawdown Notice is given and as at the
proposed Drawdown Date:

	 	(i)	 	no Default has occurred which has not been remedied or
waived; and
	 
	 	(ii)	 	all Warranties made by an Obligor under a Transaction
Document are true and correct and not misleading with reference to the facts
and circumstances current at that time;

	 	(h)	 	Approved Actuary certification: either:

	 	(i)	 	the Borrower delivers to the Lender signed confirmation
from the Approved Actuary, or other evidence satisfactory to the Lender
(acting reasonably), that the net present value of forecast recoveries from
insurance policies stated in the Annual Actuarial Report (as taken into
account in determining the Discounted Central Estimate) does not take into
account any insurance policy that is not an Insurance Policy; or
	 
	 	(ii)	 	if that net present value was calculated taking into
account any insurance policies other than the Insurance Policies, the
Borrower delivers to the Lender a certification from the Approved Actuary of
the net present value of forecast recoveries from the Insurance Policies
only (as taken into account in determining the Discounted Central Estimate);
and

	 	(i)	 	other documents: each Obligor gives the Lender any other document or
information which the Lender reasonably requires.

	 	3.4	 	Requirements of Drawdown Notice
	 
	 	 	 	A Drawdown Notice:

	 	(a)	 	written: must be in legible writing in the form of Schedule 3 and
must specify the matters set out in that Schedule;

			
	Gilbert + Tobin
	 	page | 4

 

 

	 	(b)	 	signed: must be signed by 2 directors or a director and company secretary of
the Borrower;
	 
	 	(c)	 	amount: must specify the amount of the Advance, which:

	 	(i)	 	must not exceed the Undrawn Commitment; and
	 
	 	(ii)	 	must not exceed the sum of:

	 	(A)	 	the relevant Shortfall Amount or, in the case of an Advance
contemplated by clause 2.4(b), 25% (or such other percentage agreed
by the parties, where the aggregate percentage for all such Advances
in any Period must not exceed 100%) of the relevant Shortfall Amount;
and
	 
	 	(B)	 	the Uplift Amount (if any);

	 	(d)	 	Drawdown Date: must specify the Drawdown Date, which must be a
Business Day during the Availability Period;
	 
	 	(e)	 	Warranty: must contain those warranties as set out in the form of
Drawdown Notice in Schedule 3;
	 
	 	(f)	 	receipt: must be received by the Lender no later than 11.00 am on the
Business Day that is 15 Business Days before the proposed Drawdown Date or a later
time agreed in writing by the Lender; and
	 
	 	(g)	 	irrevocable: once given is irrevocable.

	 	3.5	 	Form for calculation of Shortfall Amount
	 
	 	 	 	The Borrower may at any time submit to the Lender for the Lender’s approval a form for
the schedule of calculations referred to in clause 3.3(f) for the calculation of the
Shortfall Amount for any Period. A form so agreed by the Lender shall be the form
which the Borrower shall use for the purposes of clause 3.3(f) until another form (if
any) is agreed by the Borrower and the Lender.

	4	 	Interest

	 	 	 	4.1     Interest

	 	(a)	 	Subject to clause 4.1(d), the Borrower must pay to the Lender
interest on each Advance:

	 	(i)	 	at the rate determined under clause 4.1(b) for each
Interest Period for that Advance; and
	 
	 	(ii)	 	in arrears on each Interest Payment Date for that
Advance.

	 	(b)	 	The rate of interest for each Interest Period in respect of an
Advance is the rate of interest per annum determined by the Lender to be the Base
Rate for that Advance and Interest Period.
	 
	 	(c)	 	Interest:

	 	(i)	 	accrues on a daily basis, including the first day but
excluding the last day of the relevant Interest Period; and

			
	Gilbert + Tobin
	 	page | 5

 

 

	 	(ii)	 	is calculated on the basis of a 365 day year.

	 	(d)	 	For the avoidance of doubt the Borrower may elect to defer the timing
of any payment under clause 4.1(a)(ii) at any time and from time to time either in
whole or in part by electing to capitalise the relevant amount of interest on its
due date under clause 4.3.

	 	4.2	 	Interest Periods

	 	(a)	 	The first Interest Period for an Advance commences on its Drawdown
Date and ends one month later;
	 
	 	(b)	 	each subsequent Interest Period for an Advance starts on the last day
of the preceding Interest Period for that Advance and ends one month later;
	 
	 	(c)	 	an Interest Period which would otherwise end on a day which is not a
Business Day instead ends on the following Business Day or on the immediately
preceding Business Day if the Business Day is in another calendar month;
	 
	 	(d)	 	an Interest Period commencing on a date in a month where there is no
corresponding date in the following month in which it would otherwise end, ends on
the last Business Day of the later month; and
	 
	 	(e)	 	an Interest Period which would otherwise end after the Final
Repayment Date instead ends on the Final Repayment Date.

	 	4.3	 	Capitalisation
	 
	 	 	 	Interest that is not paid when due on any Interest Payment Date as a result of the
Borrower electing to capitalise interest under clause 4.1(d) is to be capitalised on
the relevant Interest Payment Date and so is added to the principal amount of the
relevant Advance on and from that date. If interest is not paid by the Borrower on any
Interest Payment Date the Borrower shall be taken to have elected to capitalise all
interest due on that Interest Payment Date without the need for any notice to be
delivered by the Borrower to the Lender.

	5	 	Repayment, prepayment and cancellation

	 	 	 	5.1     Repayment and prepayment

	 	(a)	 	Subject to clause 5.1(c), the Obligors must, in each Period in which
there is an Amount Outstanding, immediately upon receipt (or by direction to the
payee in lieu of receipt) apply 100% of Available Proceeds in that Period (or, if
less, the amount required at that time to repay the Amount Outstanding in full) in
repayment of the Amount Outstanding, the intention of the parties being that the
Amount Outstanding should be repaid in full as soon as possible.
	 
	 	(b)	 	On demand the Borrower must pay to each Liable Entity all amounts
paid by the Liable Entity under clause 5.1(a) and indemnifies the Liable Entity
against any loss, cost, liability or expense sustained or incurred as a direct or
indirect consequence of any payment by the Liable Entity to the Lender under
clause 5.1(a).
	 
	 	(c)	 	The Lender may, in its discretion, waive or postpone (in such manner
and for such period as the Lender determines) the requirements of clause 5.1(a) at
any time and from time to time either in whole or in part in order to ensure that
the Obligors have sufficient funds available to them from time to time for them to
be able to meet their operating expenses and liabilities that fall within the
Approved Purpose. The Lender is not obliged to do so.

			
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	 	(d)	 	The Borrower may prepay all or part of the Amount Outstanding at any time and
from time to time without penalty.
	 
	 	(e)	 	Subject to the terms of this document (including clauses 3.3 and
3.4), the Borrower may, during the Availability Period borrow or reborrow, as a
new Advance, an amount of an Advance (including capitalised interest) which it has
repaid or prepaid under this document, if it is necessary in order to ensure that
the Obligors have sufficient funds available to them for them to be able to meet
their operating expenses and liabilities that fall within the Approved Purpose.
	 
	 	(f)	 	The Commitment shall not be reduced solely as a result of a full or
partial repayment or prepayment of an Advance.
	 
	 	(g)	 	Without limiting its other payment obligations under the Transaction
Documents, the Borrower must fully and finally repay to the Lender the Amount
Outstanding on or before the Final Repayment Date.

	 	5.2	 	Commitment

	 	(a)	 	On each Review Date the Commitment shall be determined in accordance
with this clause 5.2.
	 
	 	(b)	 	On each Review Date:

	 	(i)	 	if the Valuation at the Review Date is greater than the
Commitment at that date, the Commitment shall become the lesser of:

	 	(A)	 	the Initial Commitment;
	 
	 	(B)	 	the Commitment as reduced by the Borrower under clause
5.2(c); and
	 
	 	(C)	 	the amount of the Valuation at the Review Date less any
capitalised interest outstanding under this document at that date;

	 	(ii)	 	if the Valuation at the Review Date is the same as the
Commitment at that date, the Commitment shall not change; and
	 
	 	(iii)	 	if the Valuation at the Review Date is less than the
Commitment at that date, the Commitment shall become the amount of the
Valuation at the Review Date.

	 	(c)	 	On giving to the Lender at least 5 Business Days’ notice, the
Borrower may cancel all or part of the Undrawn Commitment at any time when:

	 	(i)	 	there are no debts or monetary obligations actually or
contingently owing under a Transaction Document at that time; and
	 
	 	(ii)	 	the board of directors of the Borrower is of the view
that it appears reasonably likely that there will be sufficient funds
available to it for all then present and future Payable Liabilities of the
Liable Entities during the Availability Period to be paid in full as and
when they fall due for payment, taking into account that cancellation in the
Undrawn Commitment.

	 	 	 	That notice and that cancellation in the Undrawn Commitment shall be irrevocable.
	 
	 	 	 	If the whole of the Commitment is cancelled in accordance with this clause
5.2(c), this document shall immediately terminate subject to its terms and the
Lender undertakes, subject to the terms of the Security, to discharge the
Security

			
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	 	 	 	(including by providing a deed of release and appropriate ASIC forms in such
form as the Obligors are entitled to require) and return any documents of title
which the Lender holds to the Secured Property in accordance with clause 3 of the
Security dated on or about the date of this document and equivalent provision in
any other Security.

	6	 	Payments

	 	6.1	 	Payments by Obligor
	 
	 	 	 	A payment by an Obligor to the Lender under a Transaction Document must be made:

	 	(a)	 	no later than 11.00 am on the due date for payment;
	 
	 	(b)	 	in Cleared Funds or bank cheque in Dollars; and
	 
	 	(c)	 	to the account specified by the Lender,

	 	 	 	or in another manner which the Lender notifies the Obligor.

	 	6.2	 	Amounts Payable on Demand
	 
	 	 	 	An amount payable under a Transaction Document is payable on demand by the Lender if it
is not payable on a specified date.

	 	6.3	 	Gross payments
	 
	 	 	 	Subject to clause 6.4, an Obligor must pay amounts which are payable by it under a
Transaction Document unconditionally and in full without:

	 	(a)	 	set-off or counterclaim; or
	 
	 	(b)	 	deduction or withholding for Tax or another reason, unless the
deduction or withholding is required by applicable law.

	 	6.4	 	Withholdings and Deductions
	 
	 	 	 	If an Obligor or another person is required to make a deduction or withholding from a
payment to the Lender, the Obligor:

	 	(a)	 	indemnifies the Lender against the amount of that deduction or
withholding;
	 
	 	(b)	 	must pay more so that the Lender receives for its own benefit the
full amount which it would have received if no deductions or withholdings had been
required; and
	 
	 	(c)	 	must pay the full amount of the deduction or withholding to the
appropriate Governmental Agency under applicable law, and deliver the original
receipts to the Lender.

	 	6.5	 	Allocation of Receipts
	 
	 	 	 	The Lender may allocate payments made by or on account of the Borrower toward any
principal, interest or other money owing under a Transaction Document as it considers
appropriate.

			
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7 Tax

	 	7.1	 	Tax

	 	(a)	 	Subject to clause 7.1(c), the Borrower must pay any Tax which is
payable in respect of a Transaction Document (including in respect of the
execution, delivery, performance, release, discharge, amendment or enforcement of
a Transaction Document).
	 
	 	(b)	 	The Borrower must pay any fine, penalty or other cost in respect of a
failure to pay any Tax described in clause 7.1(a) except to the extent that the
fine, penalty or other cost is caused by the Lender’s failure to lodge money
received from the Borrower within 10 Business Days before the due date for
lodgement.
	 
	 	(c)	 	If the Lender transfers, assigns, novates, sub-participates or
otherwise deals with its rights under this document, the Borrower’s liability
under clauses 6.4 or 7.1(a) shall be that which it would have been had the
transfer, assignment, novation or other dealing not taken place.
	 
	 	(d)	 	The Borrower indemnifies the Lender against any amount payable under
clause 7.1(a) or 7.1(b).

	 	7.2	 	GST

	 	(a)	 	If GST is or will be imposed on a supply made under or in connection
with a Transaction Document by the Lender, the Lender may, to the extent that the
consideration otherwise provided for that supply is not stated to include an
amount in respect of GST on the supply:

	 	(i)	 	increase the consideration otherwise provided for that
supply under the Transaction Document by the amount of that GST; or
	 
	 	(ii)	 	otherwise recover from the recipient of the supply the
amount of that GST.

	 	(b)	 	The Lender must issue a Tax Invoice to the recipient of the supply no
later than 10 Business Days after payment to the Lender of the GST inclusive
consideration for that supply.
	 
	 	(c)	 	Where under any Transaction Document an Obligor is required to
reimburse or indemnify the Lender for an amount, the Obligor will pay the relevant
amount (including any sum in respect of GST) less any Input Tax Credit the Lender
is entitled to claim in respect of that amount.

8 Expenses

	 	8.1	 	Expenses

	 	(a)	 	Each party is to meet its own costs, charges and expenses which
relate to:

	 	(i)	 	negotiating, preparing, signing and registering the
Transaction Documents;
	 
	 	(ii)	 	arranging the Facility; or
	 
	 	(iii)	 	making an inspection, variation, attendance or
calculation or giving an approval, consent or waiver under a Transaction
Document.

			
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	 	(b)	 	The Borrower must pay or reimburse all of the reasonable costs,
charges and expenses of the Lender, its officers, agents, employees and
consultants, which relate to:

	 	(i)	 	any breach of a Transaction Document by an Obligor;
	 
	 	(ii)	 	enforcing a Transaction Document or preserving a right
under a Transaction Document or releasing or discharging a Transaction
Document.

	 	(c)	 	Amounts under clause 8.1(b) include legal fees and disbursements and
the fees of any actuaries, accountants or other professional advisers or
consultants engaged by the Lender for those purposes.

9 Representations and warranties

	 	(a)	 	Each Obligor represents and warrants to the Lender that each of the Warranties
is true:

	 	(i)	 	as at the date of this document;
	 
	 	(ii)	 	on the Drawdown Date for each Advance; and
	 
	 	(iii)	 	on each Interest Payment Date,

	 	 	 	with reference to the circumstances existing at those dates.

	 	(b)	 	Each Obligor acknowledges that the Lender has entered into this
document and each other Transaction Document in reliance on the Warranties.
	 
	 	(c)	 	Each Warranty must be construed independently and is not limited by
reference to another Warranty.
	 
	 	(d)	 	Each Obligor acknowledges that it has not entered into this document
or any Transaction Document in reliance on any representation, warranty, promise
or statement made by the Lender or another person on behalf of the Lender.

10 Undertakings

	 	10.1	 	Performance under Transaction Documents
	 
	 	 	 	Each Obligor must comply with its obligations under the Transaction Documents in full
and on time.

	 	10.2	 	General positive undertakings
	 
	 	 	 	Each Obligor must:

	 	(a)	 	corporate reporting: give to the Lender:

	 	(i)	 	in the case of an Obligor other than the Borrower copies
of its audited Accounts for each Financial Year as soon as they are
available and, in any event, within 120 days of the end of each Financial
Year;
	 
	 	(ii)	 	in the case of the Borrower copies of the audited
consolidated Accounts for the Compensation Funds and their Controlled
Entities for each Financial

			
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	 	 	 	Year as soon as they are available and, in any event, within 120 days of
the end of each Financial Year; and

	 	(iii)	 	any additional financial information or other
information the Lender may reasonably request promptly on request;

	 	(b)	 	books and records: ensure that its books and records are prepared and
kept properly in accordance with Accounting Standards;
	 
	 	(c)	 	inspection: allow the Lender and its professional advisers to inspect
at reasonable times:

	 	(i)	 	its books and records and to take copies of those books
and records; and
	 
	 	(ii)	 	any property used or owned by it,
	 
	 	to determine whether it is complying with the Transaction Documents;

	 	(d)	 	co-operate: co-operate fully with the Lender and its professional
advisers conducting an inspection under clause 10.2(c), including giving full
access to its premises and employees;
	 
	 	(e)	 	notice to Lender: promptly inform the Lender, and provide all
relevant information required by the Lender:

	 	(i)	 	if a Default occurs;
	 
	 	(ii)	 	if proceedings are commenced against it (other than in
relation to a Personal Asbestos Claim or Marlew Claim);
	 
	 	(iii)	 	if an event occurs which could render void or voidable
or otherwise adversely affect an Insurance Policy or if an Insurance Policy
is cancelled; or
	 
	 	(iv)	 	of any trust where it has been, or will be, appointed
trustee, or where it has, or will hold, property as a trustee, provided that
notification has not been provided previously.

	 	(f)	 	certificate: if the Lender requests, give the Lender a certificate
signed by 2 directors or a director and company secretary of the Borrower stating
that there are no matters to be notified to the Lender under clause 10.2(e);
	 
	 	(g)	 	maintain existence: maintain its corporate existence and conduct its
business properly and efficiently;
	 
	 	(h)	 	comply with laws: comply with all laws (including the Transaction
Legislation) binding on it and guidelines, directions, requests or requirements of
a Government Agency (including directions given by the Borrower under the
Transaction Legislation) binding on it;
	 
	 	(i)	 	comply with AFFA: in the case of the Borrower, comply with its
obligations under the AFFA;
	 
	 	(j)	 	Commitment: ensure that at no time does the Loan (excluding
capitalised interest) exceed the Commitment; and
	 
	 	(k)	 	Approved Actuary: in the circumstances referred to in clause 3.3(h)
and in the definition of “Valuation” where a certificate is required from the
Approved Actuary,

			
	 
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	 	 	 	use its best endeavours to ensure the Approved Actuary provides the relevant
certificate as soon as possible each time it is required.

	 	10.3	 	General negative undertakings
	 
	 	 	 	Unless the Lender otherwise agrees in writing, each Obligor must not:

	 	(a)	 	merge: merge or consolidate with another entity or take steps to
dissolve, administer, liquidate or wind-up (other than pursuant to the Transaction
Legislation);
	 
	 	(b)	 	re-organise capital: buy or redeem its issued shares, reduce its
capital, issue shares or distribute assets or other capital to its shareholders;
	 
	 	(c)	 	dividends: declare or pay a dividend or fix a time for payment of a
dividend or otherwise distribute income to its shareholders;
	 
	 	(d)	 	acquire property: buy, start or operate a business or buy, lease or
use any asset other than as contemplated by the AFFA or the Transaction
Legislation;
	 
	 	(e)	 	dispose of assets: dispose of or deal with an asset except in the
ordinary course of its ordinary business, whether by a single transaction or by a
number of transactions;
	 
	 	(f)	 	book debts: dispose of an interest in a book debt or permit a set-off
or combination of accounts other than by operation of law;
	 
	 	(g)	 	security interests: create, permit or allow to exist a Security
Interest over an asset other than a Permitted Security Interest;
	 
	 	(h)	 	financial indebtedness: incur any Financial Indebtedness other than
under the Transaction Documents or in the ordinary course of its ordinary
business;
	 
	 	(i)	 	amendments: amend its constituent documents, any trust deed in
relation to which it acts as trustee or the AFFA without the Lender’s prior
written consent;
	 
	 	(j)	 	Guarantees: give a Guarantee other than in favour of the Lender;
	 
	 	(k)	 	financial accommodation: provide financial accommodation to any
person (other than another Obligor).

	 	10.4	 	Trust undertakings
	 
	 	 	 	If an Obligor enters into this document as trustee of a Trust the Obligor must ensure
that, except with the Lender’s prior written consent:

	 	(a)	 	no variation: the Trust Deed is not varied or revoked;
	 
	 	(b)	 	no resettlement: there is no resettlement, setting aside or transfer
to any other trust, settlement or person or blending or mixing of the Trust’s
property (other than as expressly permitted by the AFFA or the Transaction
Legislation);
	 
	 	(c)	 	no new trustee: no other person is appointed trustee of the Trust;
	 
	 	(d)	 	vesting date: the latest date on which the Trust’s property must be
distributed is not altered and the vesting date is not determined;

			
	 
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	 	(e)	 	restriction and limitations: there is no restriction or limitation on
or derogation from its right of subrogation or indemnity (whether or not arising
under the Trust Deed);
	 
	 	(f)	 	priority of lien: its lien over the Trust’s property has priority
over the rights of the beneficiaries or the unitholders of the Trust (if any);
	 
	 	(g)	 	compliance: it complies with its trustee obligations under the Trust
Deed and at law;
	 
	 	(h)	 	no retirement: it does not do anything which would cause or enable
its removal, nor retire, as trustee of the Trust;
	 
	 	(i)	 	no distribution of capital: it does not make any distribution (except
as expressly permitted by the AFFA or the Transaction Legislation) or vesting of
the Trust’s capital;
	 
	 	(j)	 	exercise of indemnity: it exercises its right of indemnity from the
Trust’s property and the beneficiaries or unitholders of the Trust (if any) so as
to discharge its obligations under or in connection with the Transaction
Documents;
	 
	 	(k)	 	maintain accounts: it prepares and maintains proper and adequate
books of account in connection with the Trust’s property;
	 
	 	(l)	 	provide information: it gives to the Lender promptly any information
that the Lender requests from time to time in relation to the Trust; and
	 
	 	(m)	 	no Encumbrances: it does not create, permit or allow to exist a
Security Interest over the Trust’s property (except a Permitted Security
Interest).

	 	10.5	 	Undertakings relating to Insurance Policies

	 	(a)	 	positive undertakings:

	 	(i)	 	Each Obligor shall when requested from time to time by
the Lender, provide the Lender with such information as the Lender requests
(and if required by the Lender seek the relevant information from the
insurers under Insurance Policies) concerning the Insurance Policies,
including the ability of the Obligors or the Lender to have:

	 	(A)	 	Insurance Policies noted with the interest of the Lender,
with the Lender as an additional insured or with the Lender as loss
payee; or
	 
	 	(B)	 	other irrevocable payment directions put in place so that
proceeds of Insurance Policies can be paid direct to the Lender.

	 	(ii)	 	Each Obligor shall promptly comply with any request of
the Lender to effect, or assist the Lender in effecting, any of the matters
set out in subparagraphs (i)(A) and (i)(B) above if the Lender at any time
considers that effecting such matters is appropriate for its security.

	 	(b)	 	negative undertakings: Unless the Lender otherwise agrees in writing,
each Obligor must not, subject to clause 10.5(c):

	 	(i)	 	do or permit anything which may render void or voidable
or otherwise adversely affect any Insurance Policy; or
	 
	 	(ii)	 	cancel, vary settle or commute any Insurance Policy.

			
	 
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	 	(c)	 	permitted dealings:

	 	(i)	 	Despite any other provision of the Transaction Documents
an Obligor may, without the consent of the Lender:

	 	(A)	 	commute, or agree to the commutation of, any Insurance Policy
as part of a court approved scheme of arrangement for the relevant
insurer;
	 
	 	(B)	 	commute, or agree to the commutation of, any Insurance Policy
where the amount of the liability of the relevant insurer under the
relevant Insurance Policy that is commuted does not exceed $10
million, provided that the total amount of all liabilities so
commuted under subparagraph (A) or this subparagraph (B), together
with the total amount of all claims settled or compromised under
subparagraph (C), in each case in any Financial Year, does not exceed
the lesser of (1) $50 million and (2) 50% of the Undrawn Commitment
at the time of the relevant commutation, or agreement to do so; and
	 
	 	(C)	 	settle or compromise any claim under an Insurance Policy in
the ordinary course of its business where the amount of the relevant
claim that is settled or compromised does not exceed $10 million
provided that the total amount of all claims so settled or
compromised together with all liabilities commuted under subparagraph
(A) or subparagraph (B), in each case in any Financial Year, does not
exceed lesser of (1) $50 million and (2) 50% of the Undrawn
Commitment at the time of the relevant settlement or compromise or
agreement to do so.

	 	(ii)	 	The Borrower shall provide written notice to the Lender
of any commutation, settlement or compromise made, or agreed to be made, in
respect of any Insurance Policy as soon as practicable after it is made, or
it is agreed to be made.

11 Events of default

	 	11.1	 	Effect
	 
	 	 	 	If an Event of Default occurs and subsists the Lender may by written notice to the
Borrower do either or both of the following:

	 	(a)	 	cancel the Commitment; or
	 
	 	(b)	 	declare that the Amount Outstanding is immediately due and payable in
which case it shall be so, and the Borrower shall immediately pay the Amount
Outstanding in full.

	 	11.2	 	Events of Default
	 
	 	 	 	It is an Event of Default if, at any time:

	 	(a)	 	failure to pay: an Obligor fails to pay or repay an amount due under
a Transaction Document within two Business Days after the due date;
	 
	 	(b)	 	non-remediable failure: an Obligor fails to comply with another term
expressed or implied in a Transaction Document and that failure is not remediable,
in the opinion of the Lender acting in good faith;

			
	 
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	 	(c)	 	remediable failure: the Lender considers that the failure described
in clause 11.2(b) is remediable, but the Obligors do not remedy the failure within
10 Business Days of the earlier of the date of the Lender’s request to one or more
of the Obligors to remedy the same and the date when any Obligor becomes aware of
its occurrence;
	 
	 	(d)	 	Authorisations: an Obligor fails to obtain an Authorisation necessary
to enable it to comply with its obligations under the AFFA or a Transaction
Document or that Authorisation ceases to be fully effective, and if this is
remediable, the relevant Obligor does not obtain the relevant Authorisation or
replacement Authorisation within 10 Business Days of the earlier of the date of
the Lender’s request to the Obligor to do so and the date when any Obligor becomes
aware of its occurrence;
	 
	 	(e)	 	misrepresentation: a warranty, representation or statement by an
Obligor is or becomes false, misleading or incorrect in a material respect when
made or regarded as made by it under a Transaction Document or under a document
required by a Transaction Document, and if the circumstances giving rise to this
are remediable, the relevant Obligor fails to remedy the same within 10 Business
Days of the earlier of the date of the Lender’s request to one or more of the
Obligors to remedy the same and the date when any Obligor becomes aware of its
occurrence;
	 
	 	(f)	 	acceleration of payments: an Obligor does anything which causes or
enables:

	 	(i)	 	a payment under a Transaction Document to be accelerated
(other than a voluntary prepayment); or
	 
	 	(ii)	 	a Transaction Document to be enforced, terminated or
rescinded;

	 	(g)	 	cross default: Financial Indebtedness of an Obligor other than under
a Transaction Document exceeding an amount of $10,000:

	 	(i)	 	is due and payable or is capable of being declared due
and payable before the due date for payment; or
	 
	 	(ii)	 	is not paid when due or at the end of a period of grace
which may apply,

	 	 	 	including, but not limited to, money payable under a Guarantee;

	 	(h)	 	Security Interest: a Security Interest is enforceable against an
asset of an Obligor;
	 
	 	(i)	 	Guarantee: a Guarantee is enforceable against an Obligor in an amount
exceeding an amount of $10,000;
	 
	 	(j)	 	judgment: a judgment is obtained against:

	 	(i)	 	the Borrower; or
	 
	 	(ii)	 	a Guarantor

	 	 	 	other than, in each case, in relation to a Personal Asbestos Claim or a
Marlew Claim;

	 	(k)	 	insolvency event: an Insolvency Event occurs;
	 
	 	(l)	 	vitiation of Transaction Documents or AFFA:

			
	 
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	 	(i)	 	all or part of a provision of a Transaction Document or
the AFFA is or becomes illegal, void, voidable, unenforceable or otherwise
of limited force or effect;
	 
	 	(ii)	 	a person becomes entitled to terminate, rescind or avoid
all or any material part or material provision of a Transaction Document or
the AFFA;
	 
	 	(iii)	 	because of the operation of clause 6.4(a) of the AFFA,
JHISE and the Performing Subsidiary cease (including temporarily) to be
obliged to make payments under the AFFA;
	 
	 	(iv)	 	a person other than the Lender alleges or claims that an
event as described in clause 11.2(l)(i) or 11.2(l)(iii) has occurred or that
it is entitled as described in clause 11.2(l)(ii); or
	 
	 	(v)	 	the execution, delivery or performance of a Transaction
Document by an Obligor, or of the AFFA by a party to it other than the
Lender, breaches a law or Authorisation;

	 	(m)	 	breach of Transaction Legislation: any person other than the State of
New South Wales breaches a provision of the Transaction Legislation;
	 
	 	(n)	 	change in control: except where and to the extent that the Lender has
given its prior written consent, there is a direct or indirect change in control
of an Obligor having regard to legal or beneficial ownership of shares, voting
rights, rights to receive income or capital or rights to appoint directors (for
the avoidance of doubt this does not apply in relation to such a change of control
of James Hardie Industries SE provided that such change of control does not
constitute a breach of the AFFA or the Transaction Legislation);
	 
	 	(o)	 	breach of AFFA: a party to the AFFA other than the State of New South
Wales breaches any provision of the AFFA;
	 
	 	(p)	 	legal challenge: any person challenges the legality, validity or
enforceability of the Transaction Legislation (including the James Hardie Former
Subsidiaries (Winding Up and Administration) Amendment Act 2009 (NSW)) or the AFFA
(other than such a challenge that is frivolous or vexatious (in the opinion of the
Lender acting in good faith after consultation with the Borrower) or that is
withdrawn or dismissed within 10 Business Days);
	 
	 	(q)	 	Trust events of default: if, without the consent of the Lender, any
of the following occurs in respect of a Trust:

	 	(i)	 	the relevant Obligor ceases to be, or ceases to be the
only, trustee of the Trust;
	 
	 	(ii)	 	an application is commenced or an order is made in any
court for the removal of the relevant Obligor as the trustee of the Trust,
for any property of the Trust to be administered by or under the control of
the court or for accounts to be taken in relation to the Trust;
	 
	 	(iii)	 	the Trust’s capital is distributed (except as expressly
permitted by the AFFA or the Transaction Legislation); or
	 
	 	(iv)	 	the relevant Obligor exercises any of its powers under
the Trust Deed with the effect of prejudicing the Lender’s rights or its
security under a Transaction Document.

			

	 
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12 Guarantee

	 	12.1	 	Guarantee
	 
	 	 	 	Each Guarantor jointly and severally and unconditionally and irrevocably guarantees to
the Lender:

	 	(a)	 	the payment to the Lender of the Amount Outstanding; and
	 
	 	(b)	 	the performance by the Borrower of its obligations under this
document.

	 	12.2	 	Payment

	 	(a)	 	If the Amount Outstanding is not paid when due, each Guarantor must
immediately on demand pay to the Lender the Amount Outstanding in the same manner
and currency as the Amount Outstanding is required to be paid.
	 
	 	(b)	 	A demand under clause 12.2(a) may be made at any time and from time
to time.

	 	12.3	 	Securities for other money
	 
	 	 	 	The Lender may apply any amounts received by it or recovered under any:

	 	(a)	 	Security; or
	 
	 	(b)	 	other document or agreement,

	 	 	 	which is a security for any of the Amount Outstanding and any other money in the manner
it determines, subject to any express provision of the Transaction Documents.

	 	12.4	 	Amount of Amount Outstanding

	 	(a)	 	This clause 12 applies to any amount which forms part of the Amount
Outstanding from time to time.
	 
	 	(b)	 	The obligations of each Guarantor under this clause 12 extend to any
increase in the Amount Outstanding as a result of:

	 	(i)	 	any amendment, supplement, renewal or replacement of this
document or any other Transaction Document; or
	 
	 	(ii)	 	the occurrence of any other thing.

	 	(c)	 	Clause 12.4(b):

	 	(i)	 	applies regardless of whether any Guarantor is aware of
or consented to or is given notice of any amendment, supplement, renewal or
replacement of any agreement to which an Obligor and the Lender is a party
or the occurrence of any other thing; and
	 
	 	(ii)	 	does not limit the obligations of any Guarantor under
this clause 12.

	 	12.5	 	Avoidance of payments

	 	(a)	 	If any payment, conveyance, transfer or other transaction relating to
or affecting the Amount Outstanding is:

			
	 
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	 	(i)	 	void, voidable or unenforceable in whole or in part; or
	 
	 	(ii)	 	claimed to be void, voidable or unenforceable and that
claim is upheld, conceded or compromised in whole or in part,

	 	 	 	the liability of each Guarantor under this clause 12 and any Power is the same as
if:

	 	(iii)	 	that payment, conveyance, transfer or transaction (or
the void, voidable or unenforceable part of it); and
	 
	 	(iv)	 	any release, settlement or discharge made in reliance on
any thing referred to in clause 12.5(a)(iii),

	 
	 	 	 	had not been made and each Guarantor must immediately take all action and sign
all documents necessary or required by the Lender to restore to the Lender the
benefit of this clause 12 and any Security Interest held by the Lender
immediately before the payment, conveyance, transfer or transaction.

	 	(b)	 	Clause 12.5(a) applies whether or not the Lender knew, or ought to
have known, of anything referred to in clause 12.5(a).

	 	12.6	 	No obligation to marshal
	 
	 	 	 	The Lender is not required to marshal or to enforce or apply under or appropriate,
recover or exercise:

	 	(a)	 	any Security Interest, Guarantee or Security or other document or
agreement held, at any time, by or on behalf of the Lender; or
	 
	 	(b)	 	any money or asset which the Lender, at any time, holds or is
entitled to receive.

	 	12.7	 	Non-exercise of Guarantors’ rights
	 
	 	 	 	A Guarantor must not exercise any rights it may have inconsistent with this clause 12.

	 	12.8	 	Principal and independent obligation

	 	(a)	 	This clause 12 is:

	 	(i)	 	a principal obligation and is not to be treated as
ancillary or collateral to any other right or obligation; and
	 
	 	(ii)	 	independent of and not in substitution for or affected by
any other Security which the Lender may hold in respect of the Amount
Outstanding or any obligations of the Borrower or any other person.

	 	(b)	 	This clause 12 is enforceable against a Guarantor:

	 	(i)	 	without first having recourse to any Security;
	 
	 	(ii)	 	whether or not the Lender has made demand on the Borrower
(other than any demand specifically required to be given, or notice required
to be issued, to a Guarantor under clause 12.2 or any other provision of a
Transaction Document);
	 
	 	(iii)	 	whether or not the Lender has given notice to the
Borrower or any other person in respect of any thing;

			
	 
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	 	(iv)	 	whether or not the Lender has taken any steps against the
Borrower or any other person;
	 
	 	(v)	 	whether or not any Amount Outstanding is then due and
payable; and
	 
	 	(vi)	 	despite the occurrence of any event described in clause
12.10.

	 	12.9	 	Suspense account

	 	(a)	 	The Lender may apply to the credit of an interest bearing suspense
account any:

	 	(i)	 	amounts received under this clause 12;
	 
	 	(ii)	 	dividends, distributions or other amounts received in
respect of the Amount Outstanding in any liquidation; and
	 
	 	(iii)	 	other amounts received from a Guarantor, the Borrower or
any other person in respect of the Amount Outstanding.

	 	(b)	 	The Lender may retain the amounts in the suspense account for as long
as it determines and is not obliged to apply them in or towards satisfaction of
the Amount Outstanding.

	 	12.10	 	Unconditional nature of obligations

	 	(a)	 	This clause 12 and the obligations of each Guarantor under this
document are absolute, binding and unconditional in all circumstances, and are not
released or discharged or otherwise affected by anything which but for this
provision might have that effect, including:

	 	(i)	 	the grant to the Borrower or any other person of any
time, waiver, covenant not to sue or other indulgence;
	 
	 	(ii)	 	the release (including a release as part of any novation)
or discharge of the Borrower or any other person;
	 
	 	(iii)	 	the cessation of the obligations, in whole or in part,
of the Borrower or any other person under any Transaction Document or any
other document or agreement;
	 
	 	(iv)	 	the liquidation of the Borrower or any other person;
	 
	 	(v)	 	any arrangement, composition or compromise entered into
by the Lender, the Borrower or any other person;
	 
	 	(vi)	 	any Transaction Document or any other document or
agreement being in whole or in part illegal, void, voidable, avoided,
unenforceable or otherwise of limited force or effect;
	 
	 	(vii)	 	any extinguishment, failure, loss, release, discharge,
abandonment, impairment, compounding, composition or compromise, in whole or
in part of any Transaction Document or any other document or agreement;
	 
	 	(viii)	 	any Security being given to the Lender by the Borrower or any other
person;
	 
	 	(ix)	 	any alteration, amendment, variation, supplement, renewal
or replacement of any Transaction Document or any other document or
agreement;

			
	 
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	 	(x)	 	any moratorium or other suspension of any Power;
	 
	 	(xi)	 	the Lender, a Receiver or Attorney exercising or
enforcing, delaying or refraining from exercising or enforcing, or being not
entitled or unable to exercise or enforce any Power;
	 
	 	(xii)	 	the Lender obtaining a judgment against the Borrower or
any other person for the payment of any of the Amount Outstanding;
	 
	 	(xiii)	 	any transaction, agreement or arrangement that may take place with the
Lender, the Borrower or any other person;
	 
	 	(xiv)	 	any payment to the Lender, a Receiver or Attorney,
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;
	 
	 	(xv)	 	any failure to give effective notice to the Borrower or
any other person of any default under any Transaction Document or any other
document or agreement;
	 
	 	(xvi)	 	any legal limitation, disability or incapacity of the
Borrower or of any other person;
	 
	 	(xvii)	 	any breach of any Transaction Document or any other document or agreement;
	 
	 	(xviii)	 	the acceptance of the repudiation of, or termination of, any Transaction
Document or any other document or agreement;
	 
	 	(xix)	 	any Amount Outstanding being irrecoverable for any
reason;
	 
	 	(xx)	 	any disclaimer by the Borrower or any other person of any
Transaction Document or any other document or agreement;
	 
	 	(xxi)	 	any assignment, novation, assumption or transfer of, or
other dealing with, any Powers or any other rights or obligations under any
Transaction Document or any other document or agreement;
	 
	 	(xxii)	 	any prejudice (including material prejudice) to any person as a result of
any thing done or omitted by the Lender, the Borrower or any other person;
	 
	 	(xxiii)	 	any prejudice (including material prejudice) to any person as a result of
the Lender, a Receiver, Attorney or any other person selling or realising
any property the subject of a Security at less than the best price;
	 
	 	(xxiv)	 	any prejudice (including material prejudice) to any person as a result of
any failure or neglect by the Lender, a Receiver, Attorney or any other
person to recover the Amount Outstanding from the Borrower or by the
realisation of any property the subject of a Security;
	 
	 	(xxv)	 	any prejudice (including material prejudice) to any
person as a result of any other thing;
	 
	 	(xxvi)	 	the receipt by the Lender of any dividend, distribution or other payment
in respect of any liquidation;

			
	 
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	 	(xxvii)	 	the failure of any other Guarantor or any other person who is intended to
become a co-surety or co-indemnifier of that Guarantor to execute this
document or any other document; or
	 
	 	(xxviii)	 	any other act, omission, matter or thing whether negligent or not.

	 	(b)	 	Clause 12.10(a) applies irrespective of:

	 	(i)	 	the consent or knowledge or lack of consent or knowledge,
of the Lender, the Borrower or any other person of any event described in
clause 12.10(a); or
	 
	 	(ii)	 	any rule of law or equity to the contrary.

	 	12.11	 	No competition

	 	(a)	 	Until the Amount Outstanding has been fully and finally paid and this
clause 12 has been finally discharged, a Guarantor is not entitled to:

	 	(i)	 	be subrogated to the Lender;
	 
	 	(ii)	 	claim or receive the benefit of any Security Interest,
Guarantee or other document or agreement of which the Lender has the
benefit;
	 
	 	(iii)	 	claim or receive the benefit of any moneys held by the
Lender;
	 
	 	(iv)	 	claim or receive the benefit or any Power;
	 
	 	(v)	 	either directly or indirectly prove in, claim or receive
the benefit of any distribution, dividend or payment arising out of or
relating to the liquidation of the Borrower, except in accordance with
clause 12.11(b);
	 
	 	(vi)	 	make a claim or exercise or enforce any right, power or
remedy (including under a Security Interest or Guarantee or by way of
contribution) against the Borrower;
	 
	 	(vii)	 	accept, procure the grant of or allow to exist any
Security Interest in favour of a Guarantor from the Borrower;
	 
	 	(viii)	 	exercise or attempt to exercise any right of set-off against, or realise
any Security Interest taken from, the Borrower; or
	 
	 	(ix)	 	raise any defence or counterclaim in reduction or
discharge of its obligations under this clause 12.

	 	(b)	 	If required by the Lender, a Guarantor must prove in any liquidation
of the Borrower for all money owed to the Guarantor.
	 
	 	(c)	 	All money recovered by a Guarantor from any liquidation or under any
Security Interest or Guarantee from the Borrower must be received and held in
trust by the Guarantor for the Lender to the extent of the unsatisfied liability
of the Guarantor under this clause 12.
	 
	 	(d)	 	A Guarantor must not do or seek, attempt or purport to do anything
referred to in clause 12.11(a).

			
	 
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	 	12.12	 	Continuing guarantee
	 
	 	 	 	This clause 12 is a continuing obligation of each Guarantor, despite:

	 	(a)	 	any settlement of account; or
	 
	 	(b)	 	the occurrence of any other thing,

	 	 	 	and remains in full force and effect until:

	 	(c)	 	all the Amount Outstanding has been finally paid in full and the
Commitment has been cancelled in full; and
	 
	 	(d)	 	this clause 12 has been finally discharged.

	 	12.13	 	Variation
	 
	 	 	 	This clause 12 extends to cover the Transaction Documents as amended, varied or
replaced, whether with or without the consent of any one or more of the Guarantors,
including any increase in the limit or maximum principal amount available under a
Transaction Document.

13 Indemnities

	 	13.1	 	General indemnity
	 
	 	 	 	The Borrower unconditionally and irrevocably indemnifies the Lender against any claim,
loss, liability, cost or expense which the Lender pays or is liable for, arising
directly or indirectly from:

	 	(a)	 	the occurrence of any Default;
	 
	 	(b)	 	the Lender exercising its Powers consequent upon or arising out of
the occurrence of any Default;
	 
	 	(c)	 	the non-exercise, attempted exercise, exercise or delay in the
exercise of any Power;
	 
	 	(d)	 	any act or omission of an Obligor or any of its employees or agents;
	 
	 	(e)	 	the ownership of any Secured Property by an Obligor or any of its
employees or agents;
	 
	 	(f)	 	any workers’ compensation claim by any employee of an Obligor;
	 
	 	(g)	 	any insurance policy in respect of any Secured Property;
	 
	 	(h)	 	any compulsory acquisition or statutory or judicial divestiture of
any Secured Property; and
	 
	 	(i)	 	any other thing in respect of a Security or any Secured Property.

	 	13.2	 	Continuing indemnities and survival of indemnities

	 	(a)	 	Each indemnity contained in a Transaction Document is a continuing
obligation despite a settlement of account or the occurrence of any other thing,
and remains

			
	 
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	 	 	 	fully effective until all money owing, contingently or otherwise, under an
indemnity has been finally paid in full.

	 	(b)	 	Each indemnity contained in this document:

	 	(i)	 	is an additional, separate and independent obligation and
no one indemnity limits the generality of another indemnity; and
	 
	 	(ii)	 	survives the termination of this document.

	 	13.3	 	Payment

	 	 	 	It is not necessary for the Lender to incur an expense or make a payment before
enforcing a right of indemnity under this document.

14 General

	 	14.1	 	Notices

	 	(a)	 	A notice or other communication given under this document including,
but not limited to, a request, demand, consent or approval, to or by a party to
this document:

	 	(i)	 	must be in legible writing and in English;
	 
	 	(ii)	 	must be addressed to the addressee at the address or
facsimile number set out below or to any other address or facsimile number a
party notifies to the other under this clause:

	 	(A)	 	if to the Lender:
	 
	 	 	 	Name:     The NSW Treasury
	 
	 	 	 	Attention:   Director Crown Asset and Liability Management

Address:     Level 27, Governor Macquarie Tower, Farrer Place,

                     Sydney, NSW 2000

	 
	 	 	 	Facsimile:     +61 2 9228 3210
	 
	 	 	 	With copies, if the NSW Government has appointed a Director or any

Directors, to each such Director as notified to the Borrower from

time to time by such Director;

	 	(B)	 	if to an Obligor:
	 
	 	 	 	Address:     Level 7, 233 Castlereagh Street,

                    Sydney, NSW 2000

Attention:     Chief Executive Officer

Facsimile:     +612 9277 6699;

	 	(iii)	 	must be signed by an Authorised Officer; and
	 
	 	(iv)	 	 is deemed to be received by the addressee in accordance with clause 14.1(b).

	 	(b)	 	Without limiting any other means by which a party may be able to
prove that a notice has been received by another party, a notice is deemed to be
received:

			
	 
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	 	(i)	 	if sent by hand, when delivered to the addressee;
	 
	 	(ii)	 	if by post, 3 Business Days from and including the date
of postage; or
	 
	 	(iii)	 	if by facsimile transmission, on receipt by the sender
of an acknowledgment or transmission report generated by the machine from
which the facsimile was sent,

	 	 	 	but if the delivery or receipt is on a day which is not a Business Day or is
after 4.00 pm (addressee’s time) it is deemed to be received at 9.00 am on the
following Business Day.
	 
	 	(c)	 	A facsimile transmission is regarded as legible unless the addressee
telephones the sender within 2 hours after the transmission is received or
regarded as received under clause 14.1(b)(iii) and informs the sender that it is
not legible.

     14.2 Governing law

     The laws of New South Wales govern this document.

     14.3 Jurisdiction

	 	 	 	Each party irrevocably and unconditionally:
	 
	 	(a)	 	submits to the exclusive jurisdiction of the courts of New South
Wales and any courts that may hear appeals from those courts;
	 
	 	(b)	 	waives any:

	 	(i)	 	claim or objection based on absence of jurisdiction or
inconvenient forum; or
	 
	 	(ii)	 	immunity in relation to this document in any jurisdiction
for any reason; and

	 	(c)	 	agrees that a document required to be served in proceedings about
this document may be served:

	 	(i)	 	under clause 14.1; or
	 
	 	(ii)	 	in any other way permitted by law.

     14.4 Invalidity

	 	(a)	 	If a provision of this document or a right or remedy of a party under
this document is invalid or unenforceable in a particular jurisdiction:

	 	(i)	 	it is read down or severed in that jurisdiction only to
the extent of the invalidity or unenforceability; and
	 
	 	(ii)	 	it does not affect the validity or enforceability of that
provision in another jurisdiction or the remaining provisions in any
jurisdiction.

	 	(b)	 	This clause is not limited by any other provision of this document in
relation to severability, prohibition or enforceability.

     14.5 Amendments and Waivers

	 	(a)	 	This document may be amended only by a written document signed by the
parties.

			
	 	 	 
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	 	(b)	 	A waiver of a provision of this document or a right or remedy arising
under this document, including this clause, must be in writing and signed by the
party granting the waiver.
	 
	 	(c)	 	A single or partial exercise of a right does not preclude a further
exercise of that right or the exercise of another right.
	 
	 	(d)	 	Failure by a party to exercise a right or delay in exercising that
right does not prevent its exercise or operate as a waiver.
	 
	 	(e)	 	A waiver is only effective in the specific instance and for the
specific purpose for which it is given.

	 	14.6	 	Cumulative rights
	 
	 	 	 	The rights and remedies of a party under this document do not exclude any other right
or remedy provided by law.
	 
	 	14.7	 	Non-merger
	 
	 	 	 	No provision of this document merges on termination of this document, including the
Warranties.
	 
	 	14.8	 	Further assurances
	 
	 	 	 	Each party must do all things necessary to give full effect to this document and the
transactions contemplated by this document.
	 
	 	14.9	 	Supersedes previous agreements
	 
	 	 	 	This document supersedes all previous agreements about its subject matter.
	 
	 	14.10	 	Assignment

	 	(a)	 	Subject to clause 14.10(b), no party can assign or otherwise transfer
a Power, duty or obligation under this document or another Transaction Document.
	 
	 	(b)	 	The Lender may assign or otherwise transfer a Power, duty or
obligation under a Transaction Document to a NSW Government Agency, or grant a
participation or sub-participation in the benefit of a Transaction Document,
without the consent of any Obligor.
	 
	 	(c)	 	A transfer under clause 14.10(b) which includes the transfer of
obligations shall be effected by a substitution document which in the reasonable
opinion of the Lender is in form and substance in accordance with normal lending
practice and each Obligor authorises the Lender to execute that substitution
document on its behalf provided that before the execution the Lender discloses to
the Obligors the identity of the proposed transferee and delivers to the Obligors
an executed counterpart of that document promptly after execution.
	 
	 	(d)	 	The Lender may disclose to a potential assignee, transferee,
participant or sub-participant any information about the Obligors or the
Transaction Documents as the Lender considers appropriate.

			
	 	 	 
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     14.11 Consents

	 	(a)	 	The Lender may give its consent conditionally or unconditionally or
withhold its approval or consent in its absolute discretion unless a Transaction
Document provides otherwise.
	 
	 	(b)	 	The Lender may form an opinion or hold a considered view under a
Transaction Document in its absolute discretion unless a Transaction Document
provides otherwise.

     14.12 Counterparts

	 	 	 	This document may be signed in any number of counterparts and all those counterparts
together make one instrument.

14.13 Authorisations

	 	 	 	For the avoidance of doubt, nothing in the Transaction Documents shall require or shall
be regarded as requiring the Lender to grant, renew, make, vary, amend, cancel or
suspend any Authorisation or law.

15 Limitation of liability

     15.1 Capacity

	 	 	 	AICF enters into this document in its capacity as trustee of the Charitable Fund and in
no other capacity. Subject to clause 15.4, each of the parties to this document
acknowledges that the obligations, and any representations and warranties, of AICF
under this document are incurred or given by AICF to the other parties in its capacity
as trustee of the Charitable Fund.

15.2 Limitation of liability

	 	(a)	 	Subject to clause 15.4, AICF is not liable to pay or satisfy any of
its obligations under this document except out of the assets of the Charitable
Fund out of which it is entitled to be indemnified as trustee. Subject to clause
15.4, any other party to this document may enforce its rights against AICF arising
from non-performance of any obligation of AICF under this document only to the
extent of AICF’s right of indemnity out of the assets of the Charitable Fund.
	 
	 	(b)	 	Subject to clause 15.4, if another party to this document does not
recover all moneys owing to it arising from the non-performance of any obligation
of AICF under this document by enforcing the rights referred to in clause 15.2(a),
that party may not seek to recover the shortfall by:

	 	(i)	 	bringing proceedings against AICF in its personal
capacity;
	 
	 	(ii)	 	applying to have AICF wound up or proving in the winding up of AICF; or
	 
	 	(iii)	 	seeking to set off against the Borrower the relevant amount.

     15.3 Waiver of rights

	 	 	 	Subject to clause 15.4, each party to this document (other than AICF) waives its rights
against and releases AICF from any personal liability whatsoever, in respect of any
loss or damage:

			
	 	 	 
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	 	(a)	 	which it may suffer as a result of any breach or non performance by
AICF of any of its obligations under this document; and
	 
	 	(b)	 	which cannot be paid or satisfied out of the assets of the Charitable
Fund.

15.4 Qualifications to limit

	 	The limitations in clauses 15.1 to 15.3 do not apply to the extent that AICF’s right to
be indemnified out of the assets of the Charitable Fund is reduced due to any fraud,
negligence or breach of trust by AICF. In the event that AICF’s right of indemnity is
so reduced, AICF will be liable both:

	 	(a)	 	in its capacity as trustee of the Charitable Fund; and

	 	(b)	 	in its personal capacity but then only to the extent of the total
amount, if any, by which AICF’s right to be indemnified out of the assets of the
Charitable Fund has been reduced by reason of the fraud, negligence or breach of
trust by AICF.

15.5 Right of indemnity out of assets of the Charitable Fund

	 	This clause 15 is not intended to limit any rights which AICF has to be indemnified out
of the assets of the Charitable Fund.

			
	 	 	 
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Schedule 1
—
Dictionary

1 Dictionary

     In this document:

     Accounting Standards means:

	 	(a)	 	the accounting standards approved under the Corporations Act and the
requirements of that law about the preparation and content of accounts; and
	 
	 	(b)	 	generally accepted and consistently applied principles and practices
in Australia, except those inconsistent with the standards or requirements
referred to in paragraph (a).

     Accounts means, for a particular period and person:

	 	(a)	 	the profit and loss account for that period for that person; and
	 
	 	(b)	 	the balance sheet as at the end of that period for that person,

together with any statements, reports and notes attached to them or intended to be read
with them.

Advance means the principal amount advanced or to be advanced by the Lender to the
Borrower in accordance with a Drawdown Notice, or the amount of the Advance that
remains outstanding at any time (as applicable). For the avoidance of doubt, it
includes any amount added to an Advance, or any amount added to an Advance that remains
outstanding, (as applicable) pursuant to clause 4.3.

AFFA means the Amended and Restated Final Funding Agreement dated 21 November 2006
between the Borrower, James Hardie Industries SE, James Hardie 117 Pty Limited and the
State of New South Wales (as amended by the AFFA Amending Deed and otherwise as amended
from time to time).

AFFA Amending Deed means the deed entitled “Deed to amend the AFFA and facilitate the
Authorised Loan Facility” dated on or about the date of this document between the
parties to the AFFA.

Amount Outstanding means, at any time, all debts and monetary obligations of the
Borrower to the Lender or for its account under a Transaction Document at the relevant
time whether:

	 	(a)	 	owed actually, contingently or prospectively;
	 
	 	(b)	 	owed as principal, agent, trustee, beneficiary, partner or in any
other capacity;
	 
	 	(c)	 	owed as principal debtor or as surety;
	 
	 	(d)	 	the Borrower is liable alone or jointly or jointly and severally with
another person;
	 
	 	(e)	 	owed to the Lender or its account as an original obligation or as a
result of an assignment, transfer or other dealing, with or without the Borrower’s
consent;
	 
	 	(f)	 	the obligation is owed or secured before or after the date of:

			
	 
	 	 	 
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	 	Schedule 1 — Dictionary |  page  | 28

 

 

	 	(i)	 	this document; or
	 
	 	(ii)	 	an assignment of this document or any other Transaction
Document.

Annual Payment has the meaning given in the AFFA.

Approved Purpose means payment of those liabilities described in paragraphs (a), (b),
(c), (e) and (g) of the definition of “Payable Liability” in the AFFA.

Attorney means an attorney appointed under a Transaction Document.

Authorisation includes:

	 	(a)	 	a consent, registration, filing, agreement, notice of non-objection,
notarisation, certificate, licence, approval, permit, authority or exemption from,
by or with a Government Agency; and
	 
	 	(b)	 	in relation to anything which a Government Agency may prohibit or
restrict within a specific period, the expiry of that period without intervention
or action.

     Authorised Officer means:

	 	(a)	 	in relation to an Obligor, a director or company secretary of the
Obligor; or
	 
	 	(b)	 	in relation to the Lender, any person who holds the position (or is
acting in the position) of Director Crown Asset and Liability Management or Deputy
Secretary Budget and Financial Management Directorate, or any other person
notified to the Borrower by the Lender in writing as being an “Authorised Officer”
for the purpose of the Transaction Documents.

Availability Period means the period starting on the date of this document and ending
on the earlier to occur of:

	 	(a)	 	the tenth anniversary of the date of this document; and
	 
	 	(b)	 	the date when the Commitment is cancelled in full.

Available Proceeds means, for a Period, the amounts available to the Obligors on a
consolidated basis in that Period to meet liabilities falling within the Approved
Purpose payable in that Period (including the proceeds of any Insurance Policy or any
claim under any Insurance Policy and each Annual Payment) except to the extent that any
such proceeds of any Insurance Policy or any claim under any Insurance Policy have been
included in the schedule of calculations of the Shortfall Amount for that Period
delivered to and approved by the Lender under clause 3.3(f) as funds available to the
Obligors during that Period.

Base Rate means, for an Advance for an Interest Period, the rate certified by the
Lender to be its cost of funds for the Advance for the Interest Period calculated with
reference to:

	 	(a)	 	to the extent that the Lender’s source of funding for the Advance for
an Interest Period is from the Commonwealth of Australia, the cost of the Lender’s
borrowings from the Commonwealth of Australia for the purpose of funding the
Advance, being calculated with reference to the Commonwealth Treasury fixed coupon
bond rate for a period determined as appropriate by the Commonwealth of Australia;
and
	 
	 	(b)	 	to the extent that the Lender’s source of funding for the Advance for
an Interest Period is not from the Commonwealth of Australia :

			
	 	 	 
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	 	(i)	 	during the period from (and including) the first Drawdown
Date to (but excluding) 1 May 2020:

	 	(A)	 	to the extent that the Advance falls within the first
$160,000,000 of Advances made from such a funding source, the rate
calculated as at the first Drawdown Date as a yield per cent per
annum and published on the official website of New South Wales
Treasury Corporation as “Y-Day Close” for that date, in respect of
New South Wales Treasury Corporation’s 6% 1/05/2020 Benchmark Bonds;
and
	 
	 	(B)	 	to the extent that the Advance falls outside the first
$160,000,000 of Advances made from such a funding source, the rate
calculated as at the date determined by the Lender as the relevant
date as a yield per cent per annum and published on the official
website of New South Wales Treasury Corporation as “Y-Day Close” for
that date, in respect of New South Wales Treasury Corporation’s 6%
1/05/2020 Benchmark Bonds (or, if those Bonds are no longer on issue,
such other source of funding for the Facility determined by the
Lender in good faith to be used to replace those Bonds); and

	 	(ii)	 	during the period from (and including) 1 May 2020 (2020
Date) until the Amount Outstanding has been paid or repaid in full:

	 	(A)	 	to the extent that the Advance is an amount other than
interest capitalised on or after the 2020 Date, the rate calculated
as at that date as; and
	 
	 	(B)	 	to the extent that the Advance is an amount that is interest
capitalised on a date (Capitalisation Date) on or after the 2020
Date, the rate calculated as at the Capitalisation Date for that
amount as,

	 	 	 	a yield per cent per annum and published on the official website of New
South Wales Treasury Corporation as “Y-Day Close” for the 2020 Date or the
relevant Capitalisation Date (as the case may be) in respect of New South
Wales Treasury Corporation Bonds on issue at that date and maturing in
2030 and if more than one series of such Bonds are then on issue, such
series maturing on such date in 2030 and carrying such coupon rate as
nominated by the Lender (or, if there are no such Bonds maturing in 2030
on issue on 1 May 2020, such other source of funding for the Facility
determined by the Lender in good faith).

     Under this paragraph (b):

	 	(A)	 	for the avoidance of doubt, the Lender’s source of funding
for any part of an Advance which comprises capitalised interest is
not from the Commonwealth of Australia;
	 
	 	(B)	 	the Lender’s cost of funds for an Advance for an Interest
Period shall include any Commonwealth Government Guarantee fee
payable in respect of any relevant Bonds or other source of funding;
and
	 
	 	(C)	 	if for any reason for a particular day the “Y-Day Close”
yield rate for any relevant Bonds is not so displayed or the basis on
which that rate is so displayed is changed and in the opinion of the
Lender it ceases to reflect the Lender’s cost of funds to the same
extent as at the date of this document, then the Base Rate will be
the rate determined by the Lender to be its cost of funds for the
Advance for the Interest Period.

			
	 	 	 
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Bill means a bill of exchange as defined in the Bills of Exchange Act 1909 (Cth).

Business Day means a day on which banks are open for business excluding Saturdays,
Sundays or public holidays in Sydney.

Charitable Fund has the meaning given in the AFFA.

Cleared Funds means money that is immediately available to, and freely transferable by,
the recipient.

Commitment means the maximum amount agreed to be provided by the Lender under the
Facility, being the Initial Commitment as reduced or cancelled or increased in
accordance with this document.

Corporations Act means Corporations Act 2001 (Cth).

Default means an Event of Default or a Potential Event of Default.

Dollars, $ or A$ means the lawful currency of the Commonwealth of Australia.

Drawdown Date means the date on which an Advance is made, or is to be made, to the
Borrower under this document.

Drawdown Notice means a notice given under clause 3 in the form of Schedule 3.

Event of Default means an event listed in clause 11.2.

Facility means the cash advance facility provided under clause 2.

Final Repayment Date means 1 November 2030.

Financial Indebtedness means any debt or other monetary liability in respect of moneys
borrowed or raised or any financial accommodation including under or in respect of any:

	 	(a)	 	Bill, bond, debenture, note or similar instrument;
	 
	 	(b)	 	acceptance, endorsement or discounting arrangement;
	 
	 	(c)	 	Guarantee;
	 
	 	(d)	 	finance or capital Lease;
	 
	 	(e)	 	agreement for the deferral of a purchase price or other payment in
relation to the acquisition of any asset or service;
	 
	 	(f)	 	obligation to deliver goods or provide services paid for in advance
by any financier;
	 
	 	(g)	 	agreement for the payment of capital or premium on the redemption of
any preference shares; or
	 
	 	(h)	 	swap, option, forward or other hedge or derivative agreement or
arrangement of any kind relating to interest rates, exchange rates, commodities,
indices or assets (and, when calculating the liability in connection with any such
derivative transaction, only the marked to market value is taken into account
unless the derivative transaction has been terminated or closed-out, in which case
the liability is the termination amount or close out amount for the derivative
transaction);

	 	 	and irrespective of whether the debt or liability:

			
	 	 	 
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	 	(i)	 	is present or future;
	 
	 	(ii)	 	is actual, prospective, contingent or otherwise;
	 
	 	(iii)	 	is at any time ascertained or unascertained;
	 
	 	(iv)	 	is owed or incurred alone or severally or jointly or both
with any other person; or
	 
	 	(v)	 	comprises any combination of the above.

Financial Year has the meaning given in the AFFA.

First Period has the meaning given in the definition of Period.

GST means goods and services tax under the GST Law.

GST Law has the same meaning as in A New Tax System (Goods and Services Tax) Act 1999.

Government Agency means a government or governmental, semi-governmental,
administrative, fiscal or judicial body, department, commission, authority, tribunal,
agency or entity whether foreign, federal, state, territorial or local.

Guarantee means a guarantee, indemnity, letter of credit, letter of comfort or other
assurance or assumption of responsibility given at any time for a debt or liability of
another person or the solvency or financial condition of that person.

Guarantor means each of:

	 	(a)	 	ABN 60;
	 
	 	(b)	 	Amaca; and
	 
	 	(c)	 	Amaba.

Initial Commitment means $320,000,000.

Insolvency Event means the occurrence of any one or more of the following events in
relation to an Obligor, other than any such event that occurs pursuant to the
Transaction Legislation:

	 	(a)	 	an application is made to a court for an order that it be wound up,
declared bankrupt or that a provisional liquidator or receiver or receiver and
manager be appointed, and the application is not withdrawn, struck out or
dismissed within 14 days of it being made;
	 
	 	(b)	 	a liquidator or provisional liquidator is appointed;
	 
	 	(c)	 	an administrator or a Controller is appointed to any of its assets;
	 
	 	(d)	 	it enters into an arrangement or composition with one or more of its
creditors, or an assignment for the benefit of one or more of its creditors;
	 
	 	(e)	 	it proposes a winding-up or dissolution or reorganisation,
moratorium, deed of company arrangement or other administration involving one or
more of its creditors;

			
	 	 	 
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	 	(f)	 	other than in respect of a Guarantor, it is insolvent as disclosed in
its accounts, or otherwise states that it is insolvent, or it is presumed to be
insolvent under an applicable law;
	 
	 	(g)	 	it becomes an Insolvent under Administration or action is taken which
could result in that event;
	 
	 	(h)	 	it is taken to have failed to comply with a statutory demand as a
result of section 459F(1) of the Corporations Act;
	 
	 	(i)	 	a notice is issued under sections 601AA or 601AB of the Corporations
Act;
	 
	 	(j)	 	a writ of execution is levied against it or its property;
	 
	 	(k)	 	it ceases to carry on business or threatens to do so; or
	 
	 	(l)	 	anything occurs under the law of any jurisdiction which has a
substantially similar effect to any of the above clauses of this definition.

Insurance Policy means an insurance policy details of which are set out in Schedule 5.

Interest Payment Date means, in relation to an Advance, the last day of an Interest
Period.

Interest Period means, in relation to an Advance, an interest period determined for
that Advance under clause 4.2.

Lease means a lease, charter, hire purchase, hiring agreement or any other agreement
under which any property is or may be used or operated by a person other than the
owner.

Loan means, at any time, the total of all outstanding Advances at that time.

Loss means any loss, liability, damage, claim, and all related costs, expenses
outgoings or payments (including any and all legal fees and costs of investigation,
litigation, settlement, judgment, appeal, interest and penalties).

Marlew Claims has the meaning given in the AFFA.

NSW Government Agency means a governmental, semi-governmental, administrative or fiscal
body, department, commission, authority, tribunal, agency or entity owned or controlled
by the State of New South Wales.

Obligor means each of the Borrower and each Guarantor.

Period means each period during the life of the Facility from and including a Review
Date to but excluding the immediately following Review Date except that:

	 	(a)	 	in the case of the first Period during the life of the Facility, it
shall be the period from the first Drawdown Date to but excluding the immediately
following Review Date (First Period); and
	 
	 	(b)	 	in the case of the last Period during the life of the Facility, it
shall be the period from the last Review Date during the life of the Facility to
and including the date on which the Amount Outstanding is finally repaid in full.

Permitted Security Interest means:

			
	 	 	 
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	 	(a)	 	a Security Interest arising by operation of law in the ordinary
course of business securing money owing for goods or services which is not yet due
and payable; or
	 
	 	(b)	 	a Security Interest in favour of the Lender;
	 
	 	(c)	 	a Security Interest created with the prior written consent of the
Lender; or
	 
	 	(d)	 	a lien held by an Obligor over the property of the Trust of which
that Obligor is the trustee in respect of that Obligor’s right to be indemnified
out of the property of the relevant Trust.

Personal Asbestos Claims has the meaning given in the AFFA.

Potential Event of Default means any thing which would become an Event of Default on
the giving of notice (whether or not notice is actually given), the expiry of time, the
satisfaction or non-satisfaction of any condition, or any combination of the above.

Power means a power, right, authority, discretion or remedy which is conferred on the
Lender or a Receiver or Attorney:

(a) by a Transaction Document; or

(b) by law in relation to a Transaction Document.

Receiver means a receiver or receiver and manager appointed under a Transaction
Document and if more than one, then each of them, and also any servant, agent or
delegate of any of them.

Review Date means each “Payment Date” under and as defined in the AFFA.

Secured Property means the property subject to a Security.

Security means:

	 	(a)	 	the fixed and floating charge dated on or about the date of this
document; and
	 
	 	(b)	 	each other Guarantee, Security Interest or other document or
agreement entered into by any person to secure the Amount Outstanding.

Security Interest means a right, interest, power or arrangement in relation to an asset
which provides security for the payment or satisfaction of a debt, obligation or
liability including without limitation under a bill of sale, mortgage, charge, lien,
pledge, trust, power, deposit, hypothecation or arrangement for retention of title, and
includes an agreement to grant or create any of those things.

Shortfall Amount means, for a Period, the amount calculated near the commencement of
that Period by the Borrower (and approved by the Lender acting reasonably) to be the
amount by which, on a consolidated basis, the cash funds projected to be available to
the Obligors in that Period will fall short of 110% of the projected aggregate amount
of both their ongoing operating expenses and expected payments of Personal Asbestos
Claims and Marlew Claims in that Period. For the avoidance of doubt, if for a Period
there is no such projected cash shortfall or if there is a projected cash surplus, the
Shortfall Amount for that Period shall be nil.

Tax means a tax, levy, charge, impost, fee, deduction, withholding or duty of any
nature, including, without limitation, stamp and transaction duty or any goods and
services tax, (including GST), value added tax or consumption tax, which is imposed or
collected by a Government Agency, except where the context requires otherwise. This
includes, but is

			
	 	 	 
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	 	Schedule 1 — Dictionary |  page |  34

 

 

not limited to, any interest, fine, penalty, charge, fee or other amount imposed in
addition to those amounts.

Transaction Document means:

	 	(a)	 	this document;
	 
	 	(b)	 	a Security;
	 
	 	(c)	 	any document that amends, varies or is given or entered into under or
in relation to a Transaction Document; or
	 
	 	(d)	 	any document which the parties agree in writing to be a Transaction
Document for the purpose of this definition.

Transaction
Legislation has the meaning given in the AFFA.

Trust means, in respect of an Obligor, any trust (whether or not disclosed to the
Lender) in respect of which the Obligor enters into a Transaction Document as trustee.

Trust Deed means, in respect of a Trust and the relevant Obligor trustee, any document
establishing or evidencing the Trust and includes, in respect of the Charitable Fund,
the “Trust Deed” under and as defined in the AFFA.

Undrawn Commitment means, at any time, the Commitment less:

	 	(a)	 	the Loan; and
	 
	 	(b)	 	any amounts included in the schedule of calculations for the
Shortfall Amount delivered to and approved by the Lender under clause 3.3(f) in
respect of the Period current at that time as representing proceeds of any
Insurance Policy or any claim under any Insurance Policy projected to be available
to the Obligors on a consolidated basis during that Period.

Uplift Amount is defined in clause 2.5.

Valuation means, in respect of a Review Date, the net present value of forecast
recoveries from the Insurance Policies current on the Review Date (as taken into
account in determining the Discounted Central Estimate) as stated in the most recent
Annual Actuarial Report (or as confirmed or certified (as the case may be) by the
Approved Actuary in the manner contemplated by clause 3.3(h)) or, if the Lender so
determines, a higher amount determined by the Lender after consultation with the
Borrower..

Warranties means the warranties set out in Schedule 4.

2 Interpretation

	 	In this document 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 document;
	 
	 	(b)	 	the singular includes the plural and vice versa;
	 
	 	(c)	 	words that are gender neutral or gender specific include each gender;

			
	 	 	 
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	 	Schedule 1 — Dictionary |  page |  35

 

 

	 	(d)	 	where a word or phrase is given a particular meaning, other
capitalised 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 person includes a natural person, partnership, joint
venture, government agency, association, corporation or other body
corporate;
	 
	 	(ii)	 	a thing (including but not limited to a chose in action
or other right) includes a part of that thing;
	 
	 	(iii)	 	a party includes its successors and permitted assigns;
	 
	 	(iv)	 	a document includes all amendments or supplements to that
document;
	 
	 	(v)	 	a clause, term, party, schedule or attachment is a
reference to a clause or term of, or party, schedule or attachment to this
document;
	 
	 	(vi)	 	this document includes all schedules and attachments to
it;
	 
	 	(vii)	 	a law includes a constitutional provision, treaty,
decree, convention, statute, regulation, ordinance, by-law, judgment, rule
of common law or equity and is a reference to that law as amended,
consolidated or replaced;
	 
	 	(viii)	 	an agreement other than this document includes an undertaking, or legally
enforceable arrangement or understanding whether or not in writing; and
	 
	 	(ix)	 	a monetary amount is in Australian dollars;

	 	(g)	 	an agreement on the part of two or more persons binds them jointly
and severally;
	 
	 	(h)	 	when the day on which something must be done is not a Business Day,
that thing must be done on the preceding Business Day;
	 
	 	(i)	 	in determining the time of day where relevant to this document, 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 document, the time of
day in the place where the party required to perform an obligation is
located; and

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

			
	 	 	 
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	 	Schedule 1 — Dictionary  | page |  36

 

 

Schedule 2 —

Condition precedent certificate

     To: The State of New South Wales (Lender)

This Condition Precedent Certificate is given on [insert date] under clause 3 of the
AICF Facility Agreement (Facility Agreement) dated [insert date] 2010 between the
Lender and Asbestos Injuries Compensation Fund Limited ACN 117 363 461 in its capacity
as trustee of the Charitable Fund established under a trust deed dated 7 April 2006 (as
amended and restated) between it as trustee and James Hardie Industries SE as settlor
and others.

A term defined in the Facility Agreement has the same meaning in this condition
precedent certificate.

I [insert name] am a [director/company secretary] of [insert name of Obligor]
(Company). I certify as follows:

Attached to this Certificate are true, complete and up to date copies of each of the
following:

	 	(a)	 	the certificate of [incorporation/registration] and constitution of
the Company (marked “A”);
	 
	 	(b)	 	an extract of minutes (marked “B”) of a duly convened meeting of the
directors of the Company:

	 	(i)	 	approving execution of each Transaction Document to which
it is a party [and the granting of the powers of attorney referred to in
clause 1.1(c) below]; and
	 
	 	(ii)	 	acknowledging that each Transaction Document to which it
is a party is in the best interests, for the corporate benefit and for a
proper purpose of the Company and is for a proper purpose of and to further
the purposes of any trust (and the beneficiaries of that trust, as
applicable) of which it acts as trustee (if applicable),
	 
	 	(iii)	 	which minutes are fully effective and have not been varied or revoked;

	 	(c)	 	[a signed power of attorney (marked “C”) under which the Company
validly signs the Transaction Documents to which it is a party, which power of
attorney is fully effective and has not been varied or revoked;]
	 
	 	(d)	 	if a trustee, all of the documents (marked “D”) which constitute the
terms of the trusts of which the Company is trustee.

	 	 	Signed

	 	 	___________________________

	 	 	Director/Company Secretary

			
	 	 	 
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Schedule 3
— Drawdown notice

To [insert name of Lender]

Dear Sirs

AICF Facility Agreement dated [insert date] 2010 (Facility Agreement)

The Borrower gives notice that it intends to drawdown an Advance on [insert date].
Terms defined in the Facility Agreement have the same meaning in this notice.

Amount of Advance: The amount of the Advance is $[insert amount].

Drawdown Date: The proposed Drawdown Date is [insert date].

Proceeds of Drawing: Please pay the proceeds of drawing to the SPF’s (as defined in the
Transaction Legislation) bank account [insert details].

Interest Periods: Subject to clause 4.2 of the Facility Agreement, the first Interest
Period will be one month ending on [insert date].

Representations and Warranties: The Borrower represents and warrants that:

	 	(a)	 	the proceeds of the Advance will only be used for an Approved
Purpose;
	 
	 	(b)	 	each Warranty remains correct, repeated with reference to the facts
and circumstances existing at the date of this notice; and
	 
	 	(c)	 	no Event of Default has occurred which remains unremedied or which
has not been waived in writing, or will occur as a result of the drawdown.

	 	 	 

	Signed for and on behalf of [ ]

	 	 
	in accordance with section 127 of
	 	 
	the Corporations Act 2001 (Cth) by:
	 	 
	 
	 	 
	 
	 

	 	 
	Signature of director

	 	Signature of director/secretary
	 
	 	 
	 
	 

	 	 
	Name of director (print)

	 	Name of director/secretary (print)

			
	 	 	 
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Schedule 4
— Warranties

	 	(a)	 	incorporation or registration: It is a corporation with limited liability and
it is incorporated or taken to be incorporated or registered and validly existing
under the Corporations Act.
	 
	 	(b)	 	authority: It has taken all necessary action to authorise the
signing, delivery and performance of the Transaction Documents and the documents
required under them in accordance with their respective terms.
	 
	 	(c)	 	power: It has power to enter into the Transaction Documents and
perform its obligations under them and can do so without the consent of any other
person.
	 
	 	(d)	 	binding: The Transaction Documents to which it is a party constitute
its legal, valid and binding obligations enforceable against it in accordance with
their terms subject to any registration if required and except to the extent
limited by equitable principles, statutes of limitation and applicable laws
affecting creditors’ rights generally.
	 
	 	(e)	 	permitted transactions: The execution of the Transaction Documents
and the performance by it of its obligations or the exercise of its rights under
the Transaction Documents does not:

	 	(i)	 	contravene its constitution;
	 
	 	(ii)	 	contravene a law or Authorisation;
	 
	 	(iii)	 	contravene an agreement or obligation binding on it or
applicable to its assets, revenues or business;
	 
	 	(iv)	 	exceed any limits on its powers or the powers of its
directors;
	 
	 	(v)	 	result in the creation of a Security Interest over its
assets, revenues or business other than in favour of the Lender;
	 
	 	(vi)	 	result in the acceleration or cancellation of an
agreement or obligation relating to indebtedness;
	 
	 	(vii)	 	involve an act, matter or thing which constitutes an
event of default or prepayment, cancellation or similar event under an
agreement or obligation about indebtedness, or which would constitute an
event of that kind with the giving of notice, passing of time or the
fulfilment of any other condition.

	 	(f)	 	no Security Interest: No Security Interest exists over any of its
assets, revenues or business other than a Permitted Security Interest.
	 
	 	(g)	 	compliance: It has complied with the Transaction Legislation, the
AFFA (in the case of the Borrower) and the Trust Deed (in the case of the
Borrower) and with all other applicable laws.
	 
	 	(h)	 	registration: It is not necessary that a Transaction Document or
another document be filed or registered with a Government Agency to ensure:

	 	(i)	 	that the Transaction Documents are valid, enforceable or
admissible in evidence in a relevant jurisdiction; or

			
	 	 	 
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	 	Schedule 4   |  page |  39

 

 

	 	(ii)	 	that each Transaction Document which is a Security
Interest has the priority intended on the face of the document,
	 
	 	(iii)	 	other than the registration of each Security with ASIC;

	 	(i)	 	no litigation: There is no litigation, arbitration, administrative
procedure or other dispute resolution procedure taking place, pending or
threatened against it or any of its assets which would prevent it from carrying on
all of its business or a substantial part of its business if it was successful
(except, in the case of a Guarantor, for any litigation, arbitration,
administrative procedure or other dispute resolution procedure in relation to a
Personal Asbestos Claim or a Marlew Claim).
	 
	 	(j)	 	accounts: any Accounts delivered to the Lender under this document:

	 	(i)	 	were prepared in accordance with Accounting Standards;
and
	 
	 	(ii)	 	in the case of the Accounts of each Obligor (other than
the Borrower), show a true and fair view of its financial position as at the
end of the financial period to which they relate and the results of its
operations for that period; and
	 
	 	(iii)	 	in the case of the consolidated Accounts for the
Compensation Funds and their Controlled Entities, show a true and fair view
of the financial position of the Compensation Funds and their Controlled
Entities as at the end of the financial period to which they relate and the
results of their operations for that period.

	 	(b)	 	information accurate: All the information which it has given to the
Lender is, on the date it was given, true in all material respects and is, on the
date on which it was given, not by omission or otherwise, misleading in a material
respect.
	 
	 	(c)	 	not a trustee: It is not a trustee of any trust (other than as
previously disclosed to the Lender by the Obligors in writing).
	 
	 	(d)	 	completeness: There is no fact known to it which materially adversely
affects its assets or financial condition which it has not disclosed in writing to
the Lender.
	 
	 	(e)	 	no immunity: Subject to any contrary provision of the Transaction
Legislation, it does not, and its assets do not, enjoy immunity from any suit or
execution.
	 
	 	(f)	 	Taxes: It has complied with all laws relating to Tax in all
applicable jurisdictions and it has paid all Taxes due and payable by it.
	 
	 	(g)	 	(trust warranties) if it is trustee of a Trust, then other than as
expressly permitted by the AFFA or the Transaction Legislation:

	 	(i)	 	a true and complete copy of the Trust Deed has been
provided to the Lender and discloses all the terms of the Trust which have
not been revoked or varied in any way;
	 
	 	(ii)	 	the Trust Deed has been duly executed and duly stamped in
accordance with the laws of each State and Territory of Australia;
	 
	 	(iii)	 	the Trust Deed and its constituent documents give it
power:

	 	(A)	 	to carry on all of the business activities now conducted by
it; and

			
	 	 	 
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	 	Schedule 4   | page |  40

 

 

	 	(B)	 	to enter into and comply with its obligations under, and to
carry on the transactions contemplated by, the Transaction Documents
to which it is a party;

	 	(iv)	 	all necessary resolutions have been duly passed and all
consents have been obtained and all other procedural matters have been
attended to as required by the Trust Deed, any other document or any law for
the entry into, observance and performance by it of its obligations under
the Transaction Documents to which it is a party;
	 
	 	(v)	 	each of its obligations under the Transaction Documents
to which it is a party constitutes a binding obligation and is completely
and lawfully enforceable against its and the Trust’s property in accordance
with its terms subject to laws and defences affecting creditors’ rights
generally and the availability of equitable remedies;
	 
	 	(vi)	 	it is the only trustee of the Trust;
	 
	 	(vii)	 	no property of the Trust has been re-settled, set aside
or transferred to any other trust or settlement;
	 
	 	(viii)	 	the Trust has not been terminated, nor has the date or any event for the
vesting of the Trust’s property occurred;
	 
	 	(ix)	 	no determination has been made to distribute the Trust’s
property (except as expressly permitted by the AFFA or the Transaction
Legislation);
	 
	 	(x)	 	there is no conflict of interest on the Obligor’s part in
entering into the Transaction Documents to which it is a party and complying
with its obligations under them;
	 
	 	(xi)	 	it has an unrestricted right to be fully indemnified out
of the Trust’s property in respect of any losses or liabilities incurred by
it under or in connection with the Transaction Documents to which it is a
party and the Trust’s property is sufficient to satisfy that right of
indemnity;
	 
	 	(xii)	 	it has complied with its obligations in connection with
the Trust and, to its knowledge after due enquiry, no one has alleged that
it has not so complied;
	 
	 	(xiii)	 	the Lender’s rights under the Transaction Documents rank in priority to
the rights of the beneficiaries or unitholders of the Trust (if any);
	 
	 	(xiv)	 	the Trust Deed complies with all applicable laws in all
material respects; and
	 
	 	(xv)	 	the execution of the Transaction Documents and the
compliance by the Obligor with its obligations under it are for a proper
purpose of and to further the purposes of the Trust.

			
	 	 	 
	Gilbert + Tobin
	 	Schedule 4  | page |  41

 

 

Schedule 5
— Insurance Policies

			
	 	 	 
	 
	 	page  | 42

 

 

	 	 	 	 	 
					
	Execution page
	 	 	 	 
	 
	 	 	 	 
	Executed as an agreement.
	 	 	 	 
	 
	 	 	 	 
	Signed
by Asbestos Injuries 
 Compensation
Fund Limited by:
	 	 	 	 
	 
	 	 	 	 
	/s/ J Marchione

	 	 	/s/ D Booth	 
	 

	 	 	 	 
	 
	 	 	 	 
	Signature of director

	 	 	Signature of secretary	 
	 
	 	 	 	 
	JOANNE MARCHIONE

	 	 	DALLAS BOOTH	 
	 
	 	 	 	 
	 

	 	 	 	 
	Name of director (print)

	 	 	Name of secretary (print)	 
	 
	 	 	 	 
	Signed for ABN 60 Pty Limited under power of
attorney in the presence of:
	 	 	 	 
	 
	 	 	 	 
	/s/ H D Nguyen

	 	 	/s/ D Booth	 
	 

	 	 	 	 
	 
	 	 	 	 
	Signature of witness

	 	 	Signature of attorney	 
	 
	 	 	 	 
	HAI DANG NGUYEN

	 	 	DALLAS BOOTH	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Name of witness (print)

	 	 	Name of attorney (print)	 
	 
	 	 	 	 
	Signed by Amaca Pty Ltd by:
	 	 	 	 
	 
	 	 	 	 
	/s/ J Marchione

	 	 	/s/ D Booth	 
	 

	 	 	 	 
	Signature of director

	 	 	Signature of secretary	 
	 
	 	 	 	 
	JOANNE MARCHIONE

	 	 	DALLAS BOOTH	 
	 

	 	 	 	 
	Name of director (print)

	 	 	Name of secretary (print)	 

			
	 	 	 
	Gilbert + Tobin
	 	Execution   | page |  43

 

 

	 	 	 

	Signed by Amaba Pty Ltd by:
	 	 
	 
	 	 
	/s/ J Marchione

	 	/s/ D Booth
	 

	 	 
	Signature of director

	 	Signature of secretary
	 
	 	 
	JOANNE MARCHIONE

	 	DALLAS BOOTH
	 

	 	 
	Name of director (print)

	 	Name of secretary (print)

	 	 	 	 	 	 	 

	SIGNED by The Honourable Eric

	 	 	)	 	 	 
	Michael Roozendaal MLC, Treasurer of

	 	 	)	 	 	 
	New South Wales for the STATE OF NEW

	 	 	)	 	 	 
	SOUTH WALES in the presence of:

	 	 	)	 	 	 
	/s/ L Sanderson

	 	 	)	 	 	/s/ E Roozendaal
	 
	 	 	)	 	 	 
	Signature of witness

	 	 	)	 	 	Signature
	 
	 	 	)	 	 	 
	LEIGH RAE SANDERSON

	 	 	)	 	 	Treasurer of New South Wales
	 

	 	 	)	 	 	 
	Name of witness (block letters)

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

			
	 	 	 
	Gilbert + Tobin
	 	Execution | page |  44

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00191-of-00352.parquet"}]]