DEBENTURE TRUST DEED PURPOSE OF REPORT ...

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Debenture Trust Deed Page ii
of interest (whether capitalised or otherwise compounded or current) and as regards
current interest including interest on capitalised interest or on interest otherwise
compounded to accrue from day to day at the rate or respective rates from time to
time without prior or other notice to the Council determined upon by the Holder or
otherwise agreed with the Holder and in respect of fees, commissions, exchanges,
re-exchanges, legal expenses and other usual and proper banking and/or
commercial charges];
[*The words in the above brackets may be varied to suit the particular circumstances for
which Security Stock is issued.]
[**This bracketed wording to be used where the security is only for obligations under one or
more specified agreements.]
3. THE Stock is issued on the special condition that at any date (Relevant Date) the
Stock shall secure as the Priority Total Amount not more than:
(a) as principal the lesser of:
(i) the aggregate amount (as finally determined) of all the liabilities,
advances and other accommodation or obligations referred to in clause 2
of this Certificate at the Relevant Date, including capitalised interest
owing at the Relevant Date but excluding any uncapitalised interest
owing at the Relevant Date; and
(ii) the nominal amount of the Stock,
(such lesser amount being referred to in this Certificate as the Priority
Principal Amount); and
(b) as interest, all interest payable to the Holder on the principal referred to in
paragraph (a)(i) above (up to the Priority Principal Amount) but excluding any
interest (except to the extent that it is capitalised into the Priority Principal
Amount) which has been due and owing since a date more than six months
prior to the Date of Enforcement, and if the amount referred to in paragraph
(a)(i) above exceeds the amount referred to in paragraph (a)(ii) above, the
Holder may, in its sole discretion, determine which of the liabilities, advances,
accommodation and obligations secured by the Stock the Priority Principal
Amount is applied to the payment of, and the interest referred to in this
paragraph will be calculated on that basis,
AND upon any distribution of the money available to Stockholders pursuant to the
provisions of clause 0 of the Trust Deed the Stock shall entitle the Holder to payment pari
passu with the other Stockholders in respect only of their Priority Principal Amount together
with interest calculated pursuant to the provisions of paragraph (b) above PROVIDED
ALWAYS in the event of the amount referred to in paragraph (a)(i) above exceeding the
Priority Principal Amount then the aggregate of the following amounts:
(i) such excess (if any);
(ii) the interest owing in respect of such excess; and
(iii) any other interest as Secured Money but excluded pursuant to paragraph (b) above,
shall rank for payment subsequent to the Priority Total Amounts of the other Stockholders
but pari passu with any amounts as referred to in the equivalent to this proviso in Security
KCDC_n367613_v1_Fin-13-825_Appendix_1_Copy_of_Report_Fin-12-593_from_28_June_Council © Simpson Grierson