download WA Blue Gum Project Product Disclosure Statement 2013

(d)(e)(f)(iii)(iv)for the second and subsequent years ofthe Term, including any extended Term,the amount payable for the previous yearadjusted by the increase (if any) in theConsumer Price Index (All Groups, Perth)during the preceding 12 months payableon 30 September in each year,subject to the right of the Grower to adjustthe Plantable Area in accordance withSection 9.4(g) below.In the event that the Project Harvest Dateoccurs after the expiry of the Term a Grower'sobligation to pay Rent will continue until theProject Harvest Date.Grower's CovenantsThe Grower's covenants include:(i)(ii)(iii)to punctually pay the Rent;to Establish, tend and manage thePlantation in a proper and skilful mannerand in accordance with sound silviculturaland environmental practices adoptedwithin the forestry industry and as andwhen appropriate prepare, cultivate, sprayherbicides and insecticides, fertilise andHarvest the Plantation;to comply with and obey all Acts andregulations, by-laws, orders, ordinancesand rules made in respect of or applyingto the use or occupancy of the LeasedArea.The Landholder's CovenantsThe Landholder's covenants include:(i)(ii)(iii)to permit the Grower, upon paying theRent, or in the case of Joint Growers, thesecond Joint Grower paying the rent), topeaceably and quietly enjoy the LeasedArea during the Term, without anyinterruption by the Landholder or anyperson or persons claiming under orthrough the Landholder;to comply with the provisions of the HeadLease;to punctually pay all rates, taxes and othercharges levied on the Landholder by anylocal or other Government Authority inrespect of the Leased Area.Further CovenantsThe Landholder and the Grower agree (interalia) that:(i)each party shall have the right with theapproval of the other party (whichapproval shall not be unreasonablywithheld) to assign or otherwise disposeof its rights under the Sub-lease providedthat the transferring party first obtains adeed of covenant by the proposedassignee or person who receives thedisposal (the "Grantee") containing acovenant by the Grantee in favour of thenon-transferring party that the Grantee will(g)(h)(ii)(iii)at all times during the Term observe andperform all or any of the covenantscontained or implied in the Sub-lease tobe observed or performed by thetransferring party;the Plantation and carbon environmentalor any other credits derived from thePlantation (if any) are and shall remain tothe extent permitted by law, the propertyof the Grower until the end of the Termand the Grower shall be entitled to harvestthe Plantation and to retain all incomefrom the sale thereof. Any correspondingdebits arising out of the activities of theGrower will be debited to the Grower uponthose debits occurring;the Grower may lodge a caveat over theLeased Area. Upon the termination of theSub-lease for any reason whatsoever, theGrower must promptly withdraw (at itsexpense) any such caveat.Damage to or Reduction in the Viability ofthe Plantation(i)(ii)If the whole or a substantial part of thePlantation is damaged by fire or any othercause whatsoever or an independentforestry consultant commissioned by theGrower determines that it is no longercommercially viable to continue to operatethe Plantation or any portion thereof, thenthe Grower shall be entitled to assess theextent of the damage to the Plantationand may terminate the Sub-lease orreduce the Plantable Area by the areawhich has been damaged or is no longerviable.If the Sub-lease is terminated or thePlantable Area is reduced, the Growershall, if so directed by the Landholder:(A)(B)in the case of termination of the Sublease,Harvest and remove allstumps, Wood and debris from theLeased Area and reseed to pasture;orin the case of reduction of thePlantable Area, Harvest and removeall stumps, Wood and Debris fromthe area which has been damagedor is no longer viable, and (ifpracticable) fence off and reseed topasture that area.Termination in the Event of Default(i)The Landholder may terminate the Subleaseif the Grower fails to perform orobserve any covenants conditions orstipulations contained in the Sub-leaseand such default shall have continued inthe case of an obligation to pay money fora period of 14 days or in any other casefor a period of one month after receipt bythe Grower of written notice from theLandholder requiring the default to berectified.