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s 24

On the cessation or determination of this Agreement —

In force

24 On the cessation or determination of this Agreement —

(a)

except as otherwise agreed by the Minister the rights of the Company to in or under this Agreement shall thereupon cease and determine but without prejudice to the liability of either of the parties hereto in respect of any antecedent breach or default under this Agreement or in respect of any indemnity given under this Agreement;

(b)

the Company shall forthwith pay to the State all moneys which may then have become payable or accrued due;

(c)

save as aforesaid and as otherwise provided in this Agreement neither of the parties shall have any claim against the other of them with respect to any matter or thing in or arising out of this Agreement.

Environmental protection

25. Nothing in this Agreement shall be construed to exempt the Company from compliance with any requirement in connection with the protection of the environment arising out of or incidental to its activities under this Agreement that may be made by the State or by any State agency or instrumentality or any local or other authority or statutory body of the State pursuant to any Act from time to time in force.

Indemnity

26. The Company shall indemnify and keep indemnified the State and its servants agents and contractors in respect of all actions suits claims demands or costs of third parties arising out of or in connection with any work carried out by or on behalf of the Company pursuant to this Agreement or relating to its activities hereunder or arising out of or in connection with the construction maintenance or use by the Company or its servants agents contractors or assignees of the Company’s works or services the subject of this Agreement or the plant apparatus or equipment installed in connection therewith PROVIDED THAT subject to the provisions of any other relevant Act such indemnity shall not apply in circumstances where the State, its servants, agents, or contractors are negligent in carrying out work for the Company pursuant to this Agreement.

Commonwealth licences and consents

27. (1) The Company shall from time to time make application to the Commonwealth or to the Commonwealth constituted agency, authority or instrumentality concerned for the grant to it of any licence or consent under the laws of the Commonwealth necessary to enable or permit the Company to enter into this Agreement and to perform any of its obligations hereunder.

(2)

On request by the Company the State shall make representations to the Commonwealth or to the Commonwealth constituted agency authority or instrumentality concerned for the grant to the Company of any licence or consent mentioned in subclause (1).

Subcontracting

28. The State shall ensure that without affecting the liabilities of the parties under this Agreement either party shall have the right from time to time to entrust to third parties the carrying out of any portions of the activities which it is authorised or obliged to carry out hereunder.

Stamp duty exemption

29. (1) Subject to subclause (2) the State shall exempt from stamp duty which but for the operation of this Clause would or might be chargeable on the conveyance or transfer by WESPINE Lumber Pty. Ltd. ACN 008 854 304 to the Company of the land comprising the sawmill site and the buildings and fixtures thereon and any agreement relating thereto PROVIDED THAT such document or documents are executed before 31 December 1992.

(2)

The amount of exemption of stamp duty under this Clause shall not exceed $225,000 and if the stamp duty on the said document or documents exceeds that amount the Company shall pay the duty exceeding $225,000 to the State.

(3)

If prior to the date on which the Bill referred to in Clause 3 to ratify this Agreement is passed as an Act stamp duty has been assessed and paid on the said document or documents the State when such Bill is passed as an Act shall on demand refund the stamp duty paid or pay the said amount of $225,000 as the case may require to the person who paid the stamp duty.

Arbitration

30. (1) Any dispute or difference between the parties arising out of or in connection with this Agreement the construction of this Agreement or as to the rights duties or liabilities of either party under this Agreement or as to any matter to be agreed upon between the parties under this Agreement shall in default of agreement between the parties and in the absence of any provision in this Agreement to the contrary be referred to and settled by arbitration under the provisions of the Commercial Arbitration Act 1985 and notwithstanding section 20(1) of that Act each party may be represented before the arbitrator by a duly qualified legal practitioner or other representative.

(2)

Except where otherwise provided in this Agreement, the provisions of this Clause shall not apply to any case where the State the Minister or any other Minister in the Government of the said State is by this Agreement given either expressly or impliedly a discretionary power.

(3)

The arbitrator of any submission to arbitration under this Agreement is hereby empowered upon the application of either of the parties to grant in the name of the Minister any interim extension of any period or variation of any date referred to herein which having regard to the circumstances may reasonably be required in order to preserve the rights of that party or of the parties under this Agreement and an award may in the name of the Minister grant any further extension or variation for that purpose.

Consultation

31. The Company shall during the currency of this Agreement consult with and keep the State fully informed on a confidential basis concerning any action that the Company propose to take with any third party (including the Commonwealth or any Commonwealth constituted agency authority instrumentality or other body) which might significantly affect the overall interest of the State under this Agreement.

Notices

32. Any notice consent or other writing authorised or required by this Agreement to be given or sent by the State to the Company shall be deemed to have been duly given or sent if signed by the Minister or by any senior officer of the Public Service of the said State acting by the direction of the Minister and forwarded by prepaid post or handed to the Company at its address hereinbefore set forth or other address in the said State nominated by the Company to the Minister and by the Company to the State if signed on its behalf by any person or persons authorised by the Company or by its solicitors as notified to the State from time to time and forwarded by prepaid post or handed to the Minister and except in the case of personal service any such notice consent or writing shall be deemed to have been duly given or sent on the day on which it would be delivered in the ordinary course of post.

Term of Agreement

33. Subject to the provisions of subclause (6) of Clause 6 and Clauses 23 and 24, this Agreement shall expire on the expiration or sooner determination of the agreement for supply of timber between the Executive Director and the Company referred to in subclause (1) of Clause 10 PROVIDED HOWEVER that if the said agreement determines prior to the expiration of the term or an extended term thereof through no fault of the Company the Minister and the Company may agree that this Agreement (other than Clauses 10, 11 and 12) may continue for the balance of the term or extended term as the case may be that was current immediately before the determination.

Applicable law

34. This Agreement shall be interpreted according to the law for the time being in force in the State of Western Australia.

THE SCHEDULE

The upgrade of the pine log sawmill will occur over ten years in a series of stages or modules, each of which represents a discrete lift in plant capacity to match the increasing quantities of pine sawlogs becoming available.

First Stage

This will increase annual log input capacity by 80,000 m3 up to 150,000 m3, and will be completed in 1992/93. The First Stage will involve the installation of: —

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