CRL Project Delivery Agreement by City Rail Link Ltd

ProjectDelivery Agreement

CityRailLinkProject

HerMajestytheQueeninrightofNewZealand(Crown)

AucklandCouncil(Council)

CityRailLinkLimited(CRLL)

1. DefinitionsandInterpretation7

2. ConditionsPrecedent7 PartB–NatureofParties’Obligations8

3. NatureofParties’Roles8 PartC–DeliveryofCRLProjectbyCRLL9

4. ProjectDelivery9 PartD–CRLProjectContracts14

5. ProjectContracts14

6. LandandAssetManagement17 PartE–FundingbySponsors20

7. Fundingcommitment20

8. ForecastProjectCosts21

9. MitigationofCosts21

10. PermittedFundingPurposes21

11. Sponsorfailuretopay22

12. Assetsaleproceeds22 PartF–Interaction,Monitoring,InformationandRecords23

13. SponsorInterface23

14. Reportingandrecords24

15. Audits26

Schedule1:DefinitionsandInterpretation40

Schedule2:ProjectScope51

Schedule3:Sponsors’Requirements52

Schedule4:ReviewandApprovalProcess57

Schedule5:ProjectDeliverySchedule66

Schedule6:ForecastProjectCosts69

Schedule7:QuarterlyReports70

Schedule8:CompletionRequirements71

Schedule9:ChangeProcedure74

Schedule10:Funding79

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page4

Details Date

Parties

30June2017

NameHerMajestytheQueeninrightofNewZealand

Shortname Crown

NameAucklandCouncil

Shortname Council

NameCityRailLinkLimited

Shortname CRLL Background

A TheCRLProjectisasignificantinfrastructureprojecttoenhancethecapacityandperformanceof AucklandrailservicesandimprovetransportoutcomesinAuckland.

B AsfurtherdescribedinSchedule2ofthisAgreement,theCRLProjectconsistsof:

(a) a3.45kmtwintunnelundergroundmetroraillink,connectingBritomartStationtothe WesternLineinthevicinityoftheexistingMtEdenStation,doublingrailcapacityinto theAucklandCitycentre;and

(b) twonewundergroundstations,modificationtoMountEdenstation,modificationstothe WesternLineattheconnectionpoints,modificationsatBritomartStationand modificationstotheexistingrailwaynetwork.

C TheCrownandCouncilhave,throughaSponsors’Agreementdatedonoraroundthedateofthis Agreement,agreedtofundthedevelopmentanddeliveryoftheCRLProject(whichtodatehas beenmanagedthroughAucklandTransport),andcollaborateonotherinitiatives,withthe followingoverarchingobjectives:

(a) improvetransportaccessintoandaroundtheAucklandCitycentreforarapidlygrowing Auckland;

(b) improvetheefficiencyandresilienceofthetransportnetworkofurbanAuckland;

(d) provideasustainabletransportsolutionthatminimisesenvironmentalimpacts;

(e) contributepositivelytoaliveable,vibrantandsafecity;and

(f) delivertheCRLProjectwitha‘bestforAuckland’approach.

D TheCrownandCouncilhaveincorporatedCRLLtodelivertheCRLProjectonthetermsofthis Agreement.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page5

E Thepartiesrecordtheirsharedexpectationthatthemanagement,deliveryandcompletionofthe CRLProject,andtheengagementbetweenCRLLandtheSponsors,willseektobeanexemplar modelfortheefficientandeffectiveprovisionofpublicinfrastructurethroughcentralandlocal governmentcollaboration.

F ThisAgreementsetsout:

(a) thetermsonwhichCRLListodelivertheCRLProject;

(b) thebasisofSponsorfundingforCRLLtodelivertheCRLProject;

(d) thekeydeliveryobjectivesandothertermsandconditionsonwhichCRLLisappointedto delivertheCRLProject.

G ThePartiesshallpromotethefollowingrelationshipbehavioursinalltheirdealingswiththeother PartiesinconnectionwiththeCRLProject:

(a) theestablishmentofarelationshipbasedonmutualtrust;

(b) openness,promptness,consistencyandfairnessinalldealingsandcommunications;

(d) workingco-operativelyandhelpfullytofacilitatetheotherPartiesperformtheirroles.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page6

PartA–GeneralMatters

1.DefinitionsandInterpretation

1.1 Definedterms

InthisAgreementcapitalisedtermshavethemeaninggiventothosetermsinSchedule1,PartI.

1.2 Interpretation

(a) InterpretationofthetermsandconditionsofthisAgreementshallbesubjecttothe provisionsofSchedule1,PartII.

(b) ExceptasotherwiseexpressedinthisAgreement,anyspecifictermsandconditionswill prevailoveranygeneraltermsandconditions.

2.ConditionsPrecedent

2.1 ConditionsPrecedent

(a) ThisAgreementcomesintoeffectonthelaterof1July2017orsatisfactionofthe followingconditions:

(i) theSponsors’Agreementhasbeendulyexecutedbyallpartiestothatdocument; and

(ii) aSpecialResolution(asthattermisdefinedintheCRLLconstitution)hasbeen passedadoptingtherevisedconstitutionofCRLL.

(b) Eachoftheconditionsprecedentsetoutinclause2.1(a)areforthesolebenefitofthe SponsorsandmustbemettotheSponsors’satisfactionactingreasonably.Conditions precedentmayonlybewaivedjointlybytheSponsorsinwritingactingintheirsole discretion.

PartB–NatureofParties’Obligations

3.NatureofParties’Roles

3.1 Co-operation

ThePartiesagreetoco-operatewitheachothertofacilitatetheimplementationoftheCRL Project.

3.2 Nosurprises

CRLLshallconsultfreelyandmakefullandfrankdisclosuretotheSponsorsconcerningthe management,deliveryandcompletionoftheCRLProjectandshallkeeptheSponsorsfully informedofanymattersordealingsinconnectionwiththeCRLProjectwhichitconsiderstobe materialinnatureandwhichrelatetomattersordealingsofsubstanceunderorinconnectionwith thisAgreement

3.3 Sponsors’statutoryfunctions

(a) Nothingin,orcontemplatedby,thisAgreementoranyotherSponsorDocumentwillbe construedorinterpretedasrestrictingorotherwiseaffectingthediscretionofaSponsorto exerciseanyofitsexecutiveorstatutorypowersorfunctionsunderanyLaw,ortorequire theSponsororanyGovernmentEntitytointerferewithorinfluencetheexerciseofany statutorypowerordiscretionbyanyperson,includingtheCrownoranother GovernmentalEntity.

(b) NeithertheexercisebyaSponsorofitsrightsnortheperformancebyaSponsorofits obligations,whetherpursuanttothisAgreementand/oranyotherSponsorDocuments, shalllimitorfetterthatSponsor’sdiscretioninthedischargeorexerciseofitsdutiesor powersunderLaws.

3.4 Noobligationtoinfluence

ThePartiesexpresslyacknowledgeandagreethatneithertheCrownnortheCouncilisobliged,in performinganyofthedutiesandobligationsoftheCrownorCouncil(asapplicable)underthis Agreement,toexerciseapower,functionordutythatisgrantedtoorwithintheresponsibilityof anyotherGovernmentalEntity,ortoinfluence,over-rideordirectanyGovernmentalEntityin theproperexerciseandperformanceofitslegaldutiesandfunctions.

3.5 Statutorycontext

(a) ThisAgreementisadditionaltotheperformanceandaccountabilityrequirementsthatmay applytoCRLLbyvirtueofthePublicFinanceAct,theCompaniesActoranyother applicableLaws.

(b) ThisAgreementconstitutesa“bindingagreement”undersection17A(5)ofthe Local GovernmentAct2002,totheextentitrelatestolocalgovernmentinfrastructurefunding.

PartC–DeliveryofCRLProjectbyCRLL

4.ProjectDelivery

4.1 PrimaryobjectofCRLL

(a) CRLL’sprimaryobjectistomanage,deliverandCompletetheCRLProjectinaccordance withthetermsandconditionsofthisAgreement,includingtheSponsors’Requirements.

(b) CRLLwillnotcarryoutanyotherbusinesswithoutpriorwrittenunanimousSponsor approval.

4.2 Projectdelivery

(a) CRLLshallmanageanddelivertheCRLProjectandachievePracticalProjectCompletion andFinalProjectCompletion:

(i) soastosatisfytheSponsors’Requirements;

(ii) inamannerconsistentwiththeDeliveryStrategy;

(iii) inaccordancewiththetermsofthisAgreement,theProjectContractstowhichit isapartyandtheDeliveryPartnerAgreements;

(iv) usingallreasonableendeavourstomeettheKeyMilestones;

(v) sothattheProjectDeliveryDateoccursonorbeforetheTargetProjectDelivery DateandtheFinalCompletionDateoccursonorbeforetheTargetFinal CompletionDate;

(vi) soastominimiseForecastProjectCostsinaccordancewithbestvalueandprudent practices;

(vii) usingallreasonableendeavourstoensuretheCRLProjectisdeliveredwithinthe TargetDeliveryCost;and

(viii) inamannerwhichenables,uponPracticalProjectCompletion,theassetsand systemsformingtheCRLProjectWorkstobeabletobehandedovertothe OperatorforimmediateoperationorotherwiseretainedandoperatedbyCRLL.

(b) Withoutlimitingclause4.2(a),CRLLshall:

(i) strictlycomply,andensurethatallCRLLPersonnelstrictlycomply,withallHSE LegislationanddoallthingsnecessaryandinamannerthatensuresthatCRLL satisfiesitsobligationsunderallHSELegislationinrelationtotheCRLProject;

(ii) ensurethattheDeliveryStrategyclearlysetsouthowCRLLwillimplementthe healthandsafetyrequirementsinrelationtotheCRLProject,and asbetweenCRLLandtheSponsors,neitherSponsorshallhaveanyresponsibilityor liabilitytoCRLLforthesafetyofanydesignwhichformspartoftheCRLProjectWorks and,withoutprejudicetotheforegoingprovisionsofthisclause4.2CRLLshalleither retainorimposeontheDeliveryContractors,suchresponsibility,togetherwitha responsibilitytoensuretheadequacy,stabilityandsafetyofallsiteoperationsand methodsofconstructioninrelationtotheCRLProjectWorks.

(i) procurethatallConsentsnecessaryforthedesign,construction,completionand commissioningoftheCRLProjectWorks,ortocarryoutitsotherobligations

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page9

underorinconnectionwiththisAgreement,areobtainedandmaintainedinforce forthedurationoftheCRLProject;

(ii) havedueregardtothereputationofCRLLandtheSponsorsinmanaging, deliveringandCompletingtheCRLProject;and.

(iii) CRLLshallatalltimesensurethattheCRLProjectincludingtheCRLProject WorksisadequatelyinsuredinaccordancewithGoodIndustryPracticeandshall ensurethateachpartytotheProjectContractsandDeliveryPartnerAgreements:

(A) procuresadequateinsurancecoveragethatisconsistentwithGood IndustryPractice;

(B) maintainssuchinsurancesforthedurationoftheProjectContractsor DeliveryPartnerAgreement(asthecasemaybe)orlongerinaccordance withGoodIndustryPractice;and

4.3 Sponsors’Requirements

(a) TheSponsors’RequirementsaresetoutinSchedule3.TheSponsors’Requirementsshall onlybeamendedinaccordancewithSchedule9.

(b) WithoutlimitingtheobligationsofCRLLunderthisAgreement,atanytime:

(i) CRLLmayseekclarificationfromtheSponsorsinrelationtoanyrequirementof theSponsors’Requirementsthatitconsiderstobeunclearorambiguous;and

(ii) theSponsorsmayclarifytheSponsors’Requirements, andsuchclarification:

(iii) shallformpartoftheSponsors’Requirements;and

(iv) shallnotrelieveCRLLofanyobligationsorliabilityunderthisAgreement.

(c) TherightsoftheSponsorstoclarifytheSponsors’Requirementsshallnotprejudicethe rightsoftheSponsorstorequire,orCRLLtorequest,aChangeinaccordancewith Schedule9.

4.4

Standardofcare

CRLLwilldischargeitsobligationsunderthisAgreement,includingmanagingthedeliveryofthe CRLProject,usingthelevelofreasonableskill,careanddiligencetobeexpectedofanentity experiencedinmanaginganddeliveringprojectssimilartotheCRLProject.Withoutprejudice tothegeneralityoftheforegoing,CRLLmust,atalltimes,complywith:

(a) theSponsors’Requirements;

(b) GoodIndustryPractice;and

4.5

DeliveryStrategy

(a) TheSponsorswishtobeassuredthatCRLLhasthenecessarydeliverystrategy, managementstructuresandcapabilitytosuccessfullydelivertheCRLProject. Accordingly,CRLLshalldevelopallplans,documents,strategiesandpolicieswhich comprisetheDeliveryStrategy:

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page10

(i) tofulfiltheSponsors’Requirements;

(ii) tocomplywiththisAgreement;

(iii) toallocaterisksinrelationtotheCRLProjectefficientlyandwiththepartybest placedtomanagesuchrisks;and

(iv) consistentwithGoodIndustryPractice, ineachcase,toassuretheSponsorsthatCRLLhasthenecessarytoolsandstructuresto successfullydelivertheCRLProject.Withoutlimitingtheforegoing,Sponsorswould expecttheDeliveryStrategytoincludeplans,documents,strategiesandpoliciesinrelation tohealthandsafety,environment,interfacemanagement,assurance,riskmanagement, consenting,stakeholderengagement,insuranceandcompletion.

(b) TheDeliveryStrategyshallbepresentedtoSponsorsbyCRLLasfollows:

(i) throughtheReviewPointprocesssetoutinSchedule4;and

(ii) submissionofthespecificdocumentssetoutinparagraph4.1ofSchedule4 (includinganymaterialamendment,variationorsupplementtothesame)to SponsorsforapprovalinaccordancewiththerequirementsofSchedule4.

(c) InthecaseofanyinconsistencyorconflictbetweentheSponsors’Requirementsandthe DeliveryStrategy,theSponsors’Requirementsshalltakeprecedence.

(d) Subjecttoclause4.5(a)andtheprovisionsofSchedule4,CRLLmaydevelop,prepare, varyandamendtheDeliveryStrategyinsuchmannerasitconsidersappropriate.

(e) FollowinganymaterialamendmentorvariationtotheDeliveryStrategy,CRLLshall provideacopyoftherevisedDeliveryStrategytotheSponsors.

4.6 Sponsorassurance

(a) NotwithstandingtheSponsors’rightsunderclause4.5above,CRLLacknowledgesthat theSponsorshavetherightssetoutinthisAgreementtomonitorandgainassurancethat theCRLProjectisbeingmanaged,deliveredandcompletedbyCRLLinaccordancewith thetermsandconditionsofthisAgreement.Suchassuranceshallbeprovidedprimarily through:

(i) reportingbyCRLLandmonitoringoftheCRLProjectbyCRLLandthe Sponsors;

(ii) notification,reviewandapprovalbytheSponsorsofMaterialContractsandkey decisionsrequiringapprovalassetoutinthisAgreement;

(iii) discreteReviewPointsatwhichCRLLshallsatisfytheSponsorsthatCRLLhas thenecessaryDeliveryStrategy,managementstructuresandcapabilityto successfullymanage,deliverandCompletetheCRLProject;and

(iv) increasedrightsofmonitoringandoversightbySponsorsintheeventofcertain circumstancesincludingcostoverruns,delays,CRLLDefaultortheoccurrenceof AdverseEventsorspecificMonitoringPoints.

(b) CRLLfurtheracknowledgesandacceptsthatinadditiontothegeneralrequirementsthat CRLLshallprepareandimplementtheDeliveryStrategyfortheCRLProject,various specificmattersshallrequireSponsorapprovalincluding:

(i) keyaspectsoftheDeliveryStrategyassetoutinSchedule4,andanymaterial changes,amendment,termination,replacementorvariationofthesame;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page11

(ii) MaterialContractstobeenteredintobyCRLLfordeliveryoftheCRLProject, andanyamendment,termination,replacementoranyvariationthatisnota PermittedVariationinrespectofsuchcontracts;and

(iii) settlementofmaterialclaimsordisputeswiththirdparties.

4.7 ProjectDeliverySchedule

CRLLshallprepareandmaintainaschedulesettingouttheanticipatedcriticalpathtimetablefor theCRLProject(the ProjectDeliverySchedule).TheProjectDeliveryScheduleasatthedate ofthisAgreementissetoutinSchedule5.TheProjectDeliveryScheduleshallatalltimes identify:

(a) keyprocurementdatesforallMaterialContracts;

(b) KeyMilestonesincludingcommencementandcompletiondatesforkeydesign, constructionandcommissioningphasesandactivitiesforeachelementoftheCRLProject includingWorksPackages;

(c) keythird-partyprojectdependenciesincludingrequireddatesforallkeyinputsrequiredin accordancewiththisAgreementfromeitheroftheSponsorsandotherrelevant stakeholders;

(d) keydatesunderallDeliveryPartnerAgreements;

(e) theTargetProjectDeliveryDateandtheTargetFinalCompletionDate;and

(f) anindicativetimetablefortheremaininglandacquisitionprocessfortheCRLProject,if relevant,

andtheProjectDeliveryScheduleshallrecordCRLL’sactualandanticipatedprogressofthese matters,includingtheTargetProjectDeliveryDateandFinalCompletionDate.

4.8 ProjectManagement

CRLLshallorganise,manageandco-ordinatethedeliveryofeachoftheProjectContractsand DeliveryPartnerAgreementssothat:

(a) theprogressofthedesignprocessfortheCRLProjectWorks,andtheprovisionofdesign inputsandsolutionsforandfromeachelementoftheCRLProject,isproperlyplanned andco-ordinatedacrosstheCRLProjectasawhole;

(b) theprogressoftheconstructionandcompletionofeachelementoftheCRLProject WorksthatinterfaceswithotherelementsoftheCRLProjectWorks,isproperlyplanned andco-ordinatedacrosstheCRLProjectasawhole;and

(c) thecommissioning,acceptance,completionandhandoverprocessforeachoftheProject Contractsisproperlyplannedandco-ordinatedacrosstheCRLProjectasawhole, ineachcasesoastopromotetheefficient,timelyandcost-effectivedeliveryoftheCRLProject andthesatisfactionoftheSponsors’Requirements.

4.9 Changes

TheprovisionsofSchedule9willapplyifeithertheSponsorsorCRLLpropose,orisdetermined tohaveproposed,aChange.

4.10 Optimisationprojectsandadditionaltasks

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page12

CRLLacknowledgesthat,pursuanttotheSponsors’Agreement,theSponsorsmayconsider mattersrelatedtotheCRLProjectorinconnectionwiththeSponsors’Agreementwhichare outsidethescopeoftheCRLProject.Accordingly:

(a) CRLLshall,whenrequestedbytheSponsors,engageconstructivelywiththeSponsorsin respectofanysuchmatter;and

(b) theSponsorsmay,fromtimetotime,requestCRLLtoundertakeanysuchmatterasan additionaltask,inwhichcaseCRLLshallpromptlymeetwithrepresentativesofthe Sponsorstodiscussingoodfaiththetermsandconditions,includingastotheprovisionof necessaryadditionalfunding,onwhichsuchtasksmaybeundertakenbyCRLL.

4.11 Post-Completionoperations

(a) NolaterthanthedateofawardoftheWorkPackageC3andC7contracts,theSponsors willnotifyCRLLofthearrangementstoapplyfollowingPracticalProjectCompletionof theCRLProjectinrelationtotheownershipandongoingoperationoftheCRLProject (Post-CompletionNotice).Suchnotificationshallincludematterssuchas:

(i) whetherCRLLoranythirdpartyisgoingtoberesponsiblefortheon-going ownershipand/oroperationoftheCompletedCRLAssets;

(ii) thegovernanceofCRLL;

(iii) transferoftheCompletedCRLAssetstotheSponsorsoranythirdpartynominee oftheSponsors;

(iv) transferofCRLLshares;

(v) howCRLLwillbefundedifit,asopposedtoanythirdpartynominee,ischosento ownand/oroperatetheCompletedCRLAssets;and/or

(vi) anyothermatterswhichtheSponsorsconsiderreasonable.

(b) CRLLshallcomplywiththerequirementsofthePost-CompletionNotice.Uponreceiptof thePost-CompletionNoticebyCRLLfromtheSponsors,thePartiesshallco-operatewith eachotherandactreasonablyinordertoimplementthetermsofthePost-Completion Notice.

(c) WheretheSponsorshaveelectedforathirdpartynomineetoberesponsibleforthe completionand/oroperationoftheCompletedCRLAssets,thePartiesshallco-operate witheachotherandactreasonablytoimplementanorderlycessationtotheactivities contemplatedbythisAgreement,theProjectContractsandtheDeliveryPartner AgreementsfromthedatesetoutinthePostCompletionNotice.Suchmattersmay requireCRLLto:

(i) immediatelycommencetodemobiliseandwinddownitsactivitiessoastocease itsactivitiesandoperationsinaprompt,orderlyandcosts-efficientmanner;

(ii) delivertotheSponsorsallinformation,materials,documentsandrecordsthatit holdsinrelationtotheCRLProject;

(iii) transferallassets,agreements,contracts,security,warranties,guarantees, ConsentsanddocumentationrelatingtotheCRLProjecttoanyentitydirectedby theSponsors;

(iv) co-operatewiththeSponsorsinthetransferofinformationanddispositionofany workinprogress;and

(v) complywithallotherreasonablerequestsfromtheSponsors.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page13

PartD–CRLProjectContracts

5.ProjectContracts

5.1 ProcurementofProjectContracts

(a) SubjecttocomplyingwiththeDeliveryStrategyandsubjecttotherequirementsofthis Agreement(includingclauses5.2to5.6below):

(i) CRLLshallbeentitledatitssolediscretiontoprocure,awardandexecutethe ProjectContracts;

(ii) CRLLissolelyresponsiblefortheselectionofeachDeliveryContractor;and

(iii) CRLLmustensure,ineachcase,thateachsuchDeliveryContractoris,oris supportedbyentitieswhichare,creditworthy,qualifiedandhastherelevant experienceandexpertisetoperformtheworkitisrequiredtocarryout.

(b) CRLLshallnotenterintoaProjectContractotherthaninaccordancewiththeDelivery StrategyandSchedule4.

5.2 MaterialContracts

(a) Notwithstandingclause5.1,inrelationtoallMaterialContractsCRLLandtheSponsors shallcomplywiththeprovisionsofSchedule4ofthisAgreement.

(b) WithrespecttoeachMaterialContract,CRLLshall:

(i) complyinallmaterialrespectswithitsobligationsundersuchcontract;

(ii) ensurethereareappropriateprovisionstogoverntheresolutionofdisputesandto permitjoinderofdisputesundermultipleProjectContractsand/orDelivery PartnerAgreements;

(iii) obtaintheSponsors’priorwrittenapprovaltoanymaterialamendment,waiveror modificationtosuchMaterialContract(includinganychangeinriskallocationas approvedthroughtheDeliveryStrategyinaccordancewithclause4.5and Schedule4);

(iv) notterminate,ortakeanysteptoterminate,aMaterialContractwithouttheprior writtenapprovaloftheSponsors;and

(v) promptlyadvisetheSponsorsofanyearlyterminationof,orsteptakenbya MaterialContractortoterminate,aMaterialContractuponbecomingawareofthe same.

(c) FromthedateofnovationofeachEarlyWorksPackage,CRLLshallberesponsiblefor compliancewith,andperformanceof,suchEarlyWorksPackageandshallassumeall accruedandfutureliabilityofAucklandTransportundersuchEarlyWorksPackagein accordancewiththetermsoftheTransferAgreement.

5.3 Variationsapprovalprocess

(a) CRLLshallnot,withouttheSponsors’priorwrittenconsent,atanytime,enterinto, instructoragreetoaVariation,otherthanaPermittedVariation.AllVariationsotherthan aPermittedVariationwillrequirethepriorwrittenapprovaloftheSponsors,such approvaltobeprovidedinaccordancewiththeprocesssetoutinthisclause5.3.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page14

(b) WhereapprovalisrequiredinrelationtoaVariation,priortoissuingoragreeingtosuch Variation,CRLLshallprovidethefollowinginformation(informandsubstance satisfactorytotheSponsors(actingreasonably)),forapproval:

(i) thereasonsfortheVariation;

(ii) detailsoftheVariationincludingimpactoftheVariationontheForecastProject CostsandtheProjectDeliverySchedule;

(iii) relevantprovisionsofthecontractentitlingtherelevantcontractortothe Variation;and

(iv) anyotherinformationwhichmayreasonablyberequiredbytheSponsors.

(c) Followingreceiptoftheinformationreferredtoinparagraph5.3(a)above,theSponsors will,within20WorkingDays,approveorrejecttheproposedVariationonthegroundsset outatparagraph3.1.1ofSchedule4andthemannersetoutinparagraph3.1.2ofSchedule 4.

(d) IftheSponsorsrejecttheVariation,CRLLshallnotproceedwiththeVariationuntilthe reasonsfortheSponsors’rejectionhavebeenaddressedtothereasonablesatisfactionof theSponsors.

5.4 MajorTransactionapproval

TotheextentthatentryintoanyMaterialContractisormaybeaMajorTransactionofCRLL undertheCompaniesAct,writtenapprovalprovidedinaccordancewiththe“ApprovalNeeded” processsetoutinSchedule4ofthisAgreementinrespectofsuchMaterialContractshall constituteapprovalofsuchMajorTransactionpursuanttosection129oftheCompaniesActand CRLL’sconstitution,andthepartiesagreethatthemethodunderthisAgreementbywhichthe Sponsorsarerequiredtoapprovesuchcontractsisdeemedtobearesolutionunderthe CompaniesActandthatapprovalbybothSponsorsshallthereforeconstituteaSpecialResolution (asdefinedinCRLL’sconstitution).

5.5 ApprovalofreplacementMaterialContractor

(a) CRLLmustnotreplaceanyMaterialContractorwithoutthepriorapprovalofSponsors. TherequirementsofSchedule4shallapplyequallytotheproposedappointmentofany replacementcontractorforaMaterialContract.

(b) CRLLmust:

(i) notifytheSponsorsinwritingifitproposestoreplaceaMaterialContractorat anytime;

(ii) providedetailstotheSponsorsoftheidentityoftheproposedreplacement MaterialContractorandthenatureandscopeoftheservicesthatCRLLintends thereplacementMaterialContractortoundertake;

(iii) providetotheSponsorsacopyoftheproposedcontracttowhichthereplacement MaterialContractorwillbemadeparty;and

(iv) provideanymoreinformationknowntoCRLLorabouttheproposedreplacement MaterialContractorthattheSponsorsmayreasonablyrequire.

5.6 DeliveryPartnerAgreements

(a) CRLLshallnegotiateandenterintoDeliveryPartnerAgreements,asrequiredforthe purposeofthemanagement,delivery,implementationandcompletionoftheCRLL Project.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page15

(b) CRLLshallensurethattherolesandresponsibilitiesofeachDeliveryPartnerincluding butnotlimitedtoeachDeliveryPartner’sroleinanyChangeprocessunderthis AgreementisclearlysetoutintherelevantDeliveryPartnerAgreement.

(c) CRLLshallensure,priortoenteringintoanyproposedDeliveryPartnerAgreement,that theSponsorshaveapprovedthetermsofsuchproposedDeliveryPartnerAgreementin accordancewiththeprovisionsofthisAgreement.

(d) CRLLshalluseitsbestendeavourstoensurethatDeliveryPartnerAgreementswitheach ofAucklandTransportandKiwiRailareenteredintopriortotheendofDecember2017.

(e) CRLLshallcomplyinallmaterialrespectswithitsobligationsundertheDeliveryPartner Agreementsandshallnotberelievedfromanyobligationorliabilityunderorin connectionwiththisAgreementbytheentryintoanyDeliveryPartnerAgreement.

(f) CRLLshallobtaintheSponsors’priorwrittenapprovaltoanymaterialamendment, variation,waiverormodificationtoaDeliveryPartnerAgreement.

(g) CRLLmustpromptlyadvisetheSponsorsofanyeventthatmaygiverisetoarightof terminationbyanypartytoaDeliveryPartnerAgreement,includingdetailsofthereasons givingrisetosuchrightoftermination.

(h) CRLLshallnotterminate,ortakeanysteptoterminate,anyDeliveryPartnerAgreement withoutthepriorwrittenapprovaloftheSponsors.

5.7 ManagementofContracts

(a) InrelationtoeachoftheProjectContractsandDeliveryPartnerAgreements,unless otherwiseagreedwiththeSponsors,CRLLshall:

(i) complyinallmaterialrespectswithitsobligationsundertheProjectContractsand theDeliveryPartnerAgreements;

(ii) notassign,transfer,novateorotherwisedisposeofanyofitsrightsand/or obligationsunderanysuchcontractinwholeorinpart;

(iii) takeallstepsnecessarytoprotect,maintain,exerciseandenforceallitsrightsin accordancewiththeirterms.Suchstepsshallincluderequiring,specifically,that anyengineertoanycontract,principaloremployer’srepresentativeorsimilar, enforcesthetermsofsuchcontractandCRLL’srightsunderitpromptlyandin accordancewithitsterms;

(iv) notagreetoanyotherpartytoanysuchcontractassigninganyofitsrightsand/or transferringanyofitsobligationsunderanysuchdocumentinwholeorinpart, savetotheextentthatsuchassignmentisbywayofsecurityinfavourofafunder providingfinancingtotherelevantcounterpartyfortheperformanceofits obligationspursuanttosuchcontract;and

(v) acquireandretainallproperty,rightsandinterestswhicharenecessaryforthe performanceofCRLL’sobligationsunderthisAgreementoranyotherProject ContractorDeliveryPartnerAgreement.

(b) InrelationtoallProjectContracts(otherthanMaterialContracts,inrespectofwhich clauses5.2and5.3shallapply),CRLLshall:

(i) not,withouttheSponsors’priorwrittenconsent,atanytime,enterinto,instructor agreetoaVariation,otherthanaPermittedVariation;or

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page16

(ii) notamend,waiveormodifyoragreetotheamendment,waiverormodificationof anyProjectContractwhichwouldresultinsuchProjectContract,followingthe amendment,waiverormodification,conflictingwithorbeingotherthanin accordancewiththeDeliveryStrategy,theSponsors’Requirementsorthetermsof thisAgreement.

5.8 Arms’LengthTransactions

CRLLshallnotenterintoanyagreement,transactionorotherarrangementwhatsoever(including allMaterialContracts,ProjectContractsandDeliveryPartnerAgreements)withorforthebenefit ofanyotherpersonotherthanintheordinarycourseofbusinessandonarm'slengthterms.

5.9 ClaimsManagement

UnlessotherwiseagreedbytheSponsors,CRLLshall:

(a) onabasisconsistentwiththebestinterestsoftheCRLProjectandthereputationofCRLL andtheSponsors,takeallstepsnecessarytodefendanyadjudication,litigation,arbitration oradministrativeproceedingswhicharecurrent,threatenedorpendingagainstit;

(b) notifytheSponsorsof:

(i) anyclaims(otherthanregularpaymentclaims),disputesorproceedingsraisedor madebyoragainstCRLLoranyotherpartyunderanyProjectContractand/or DeliveryPartnerAgreement;and

(ii) anyotherclaims,disputesorproceedingsraisedormadebyoragainstCRLL;

(c) keeptheSponsorsinformedonaregularbasisinreasonabledetailoftheprogressofsuch claims,disputesorproceedingsand,ifrequestedbytheSponsors,providecopiesofall documentationrelatingtothesame;

(d)

(e) useallreasonableendeavourstoensurethatanyclaim,disputeorproceedingdoesnot bringthenameofeitheroftheSponsorsortheCRLProjectintodisrepute;and

(f) subjecttothisclause5.9,asbetweentheSponsorsandCRLL,beresponsibleforthe management,conductandthedischarge,orprocuringthedischarge(asapplicable)bythe responsibleparty,ofanyclaim,disputeorproceedingbroughtagainsteitherCRLLorthe Sponsors(savetotheextentthateitherSponsornotifiesCRLLandtheotherSponsorthatit willmanageandconductaclaim,disputeorproceedingmadeagainstit)byanythirdparty arisingfromtheimplementationoftheCRLProject.

6.LandandAssetManagement

6.1 Land

(a) CRLLwillbetransferredthelegalandbeneficialtitletotheInitialCRLProjectAssets requiredfortheCRLProjectWorksinaccordancewiththeprovisionsoftheTransfer Agreement.

(b) Councilagreesto:

(i) provideCRLL(andtoensureAucklandTransportdoesthesame)withaccessto landownedorcontrolledbyCouncilandAucklandTransport,includingthe relevantpartsofthelegalroadcorridor,reasonablyrequiredbyCRLLfor

constructionoftheCRLProjectandforongoingoperation/maintenanceofthe CompletedCRLAssetspostcompletion.Nolicencefeeswillbechargedforsuch accessunlessotherwiseagreedbytheSponsors.TheSponsorswilldeterminethe mostappropriatearrangementstoformaliseaccessforconstructionandongoing operation/maintenancepostcompletion(i.e.licence,easement,perpetuallease, registerableorotherwise,)onsuchtermsandconditionsasmaybeagreed,which willbesubjecttoapprovalbytheSponsors,andwhichmustprovideforfullaccess neededforconstructionandongoingoperation/maintenanceandshouldbeno moreonerousthantermstypicalofalicencearrangementbetweenCouncilandits Councilcontrolled-organisations.ThePartiesacknowledgethat,atalltimes, AucklandTransportretainsitspowersasaroadcontrollingauthority;

(ii) notwithstandingclause6.1(b)(i)proceedwith(andtoensureAucklandTransport doesthesame)roadstoppingofthesubterraneanareaoftheCRLProjectWorks withinthelegalroadcorridortocreateafeesimplestratumestatewhichwillbe transferredtoCRLL(ortheeventualowneroftheCompletedCRLAssets) totheextentpermittedbylaw.Ifroadstoppingtoeffectatransferofthe relevantroadcorridorlandisnotpermittedbylaw,thenAucklandCouncilwill procureAucklandTransporttograntalong-termleaseholdinterestinthe subterraneanareaoftheCRLProjectWorkswithinthelegalroadcorridor(subject tofirstobtainingsubdivisionconsent(ifrequired)forsuchlease)toCRLL(orif determinedbytheSponsorstheeventualowneroftheCompletedCRLAssets) whichmustbeperpetual,fullytransferable, andotherwiseontermstobeagreedbetweenAucklandCouncil(ifapplicable), AucklandTransportandthelessee,whichwillbesubjecttoapprovalbythe Sponsors.

(iii) oncompletionofthepurchaseofthesubterraneanareaoftheCRLProjectWorks withintheCommercialBaydevelopment,beingtheStratumEstate(asdefinedin theagreementrelatingtotheredevelopmentoftheDowntownShoppingCentre withPrecinctPropertiesDowntownLimitedandPrecinctPropertiesNewZealand Limited),transfertheStratumEstatetoCRLL(orifdeterminedbytheSponsors theeventualowneroftheCompletedCRLAssets),;

(iv) grantCRLLanon-exclusivelicencetousethe“BledisloeCarpark”site(contained incertificatesoftitleNA485/235,NA1589/36,NA1193/78,NA75B/323)for constructionoftheCRLProjectandotherwiseupontermsandconditions tobeagreedbytheCouncilandCRLL(butwhichwillbenomoreonerousthana typicallicencearrangementbetweenCouncilanditsCouncilcontrolledorganisations),whichmustreservetotheCouncilnecessaryaccessfortheCouncil anditstenantstotheloadingdockandcertaincarparksontheBledisloeCarpark site;

(v) reserveanagreedallocatedareaoftheBledisloeCarparksitefortheconstruction oftheAoteastationbox(designatedareatobeagreedbetweenCRLLandthe CouncilpriortoanycontractforthedesignbeingconfirmedfortheAoteastation box);and

(vi) attheappropriatetimetakingtheProjectDeliveryScheduleintoaccount, undertakeallreasonablemeasures,atCRLL’scost,tosubdivideandcreatea separatestratumtitlefortheAoteastationboxandtransferthestratumtitleforthe AoteastationboxtoCRLL(ortheeventualowneroftheCompletedCRLAssets), orifotherwiseagreedbytheSponsorsgrantCRLLaninterest/rightsintheAotea stationbox,forconsiderationcalculatedonanarm’slengthbasisinaccordance

withtheprovisionsofthePublicWorksAct1981(PWA)(whicharetoinclude marketvaluationandcompensation).

6.2 PublicWorksActacquisitions

(a) CRLLshallentirelyatitsowncostandexpense,undertakeacquisitionsofany subterraneanlandandsurfacelandinterestsrequiredfortheCRLProjectunderthePublic WorksAct1981(otherthanwithintheroadcorridor),byapplyingtotheMinsterofLands undersection186(1)oftheResourceManagementAct1991tohavethelandacquiredor takenonitsbehalf.

(b) IfCRLLisunabletoundertakethelandacquisitionsbytheprocesssetoutatclause 6.2(a),thenitisintendedthatCouncilwillattherequestandcostofCRLLundertake thoseacquisitionsortakingsonCRLL’sbehalfandwillexercisetherelevantpowers (includingcompulsoryacquisitionpowers)underthePWAforthatpurpose,subjecttoan agreementbeingenteredbetweenaMinisteroftheCrownandCouncilinaccordancewith therequirementsofs224PWAforCounciltocarryoutanysuchacquisitionsfortheCRL ProjectonCRLL’sbehalf.CRLLandCouncilwillinthateventworktogetherto establishsuitableprotocolsandprocessestofacilitatethoseacquisitions.

6.3 Assetownershipandcontrol

(a) TheSponsorsintendthatCRLLshalldevelop,ownandcontrolalltheCompletedCRL AssetspendingtheSponsors’decisiononhowtheCompletedCRLAssetsshouldbe transferredtotheirdesignatednominee(s).

(b) CRLLshallensure,sofarasreasonablypracticable,ithasatalltimesunencumbered ownershipandrightstotransfer,freeofalladverseclaimsandinterests,allCompleted CRLAssetsand/orallInitialCRLProjectAssets(saveforanyexistingencumbrancesat thedateoftransfertoCRLL),includingland,improvements,chattelsandintangible property(includingdesignIPandbranding).

6.4 TransferofContracts

(a) CRLLshallensureatalltimesithasunfetteredrightstotransferand/ornovateallProject ContractsandDeliveryPartnerAgreementstotheSponsors’designatednominee(s)as notifiedtoCRLLbytheSponsorspursuanttoclause4.11.

(b) CRLLshallensurethatallProjectContractsandDeliveryPartnerAgreementsinclude adequateprovisionstoenableCRLLtomeetitsobligationsunderclause6.4(a).

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page19

PartE–FundingbySponsors

7.Fundingcommitment

7.1 SponsorFunding

(a) SubjecttotheprovisionsofthisAgreement:

(i) theCrownagreestoprovidefundingtoCRLLtomeet50%oftheForecastProject Costs,uptotheCrownFundingAmount;and

(ii) CouncilagreestoprovidefundingtoCRLLtomeet50%oftheForecastProject Costs,uptotheAucklandCouncilFundingAmount, withsuchfundingtobeprovidedbywayofsubscriptionforShares.

(b) PaymentofanyamountbytheCrownandCouncilpursuanttothisclause7issubjectto, andthePartiesshallcomply,withSchedule10andSchedule11.

(c) Fortheavoidanceofdoubt,eachSponsor’sfundingcommitmentunderthisAgreementis givenbyeachSponsorseverally(asto50%each)andnotjointlynorjointlyandseverally.

(d) NotwithstandinganyotherprovisionofthisAgreement,theCrownwillnotandisnot requiredtoprovideanyoftheCrownFundingAmountunderthisAgreementuntil:

(i) theTransferAgreement,inaformsatisfactorytoandapprovedbytheSponsors, hasbeendulyexecutedbyallpartiestothatdocumentandCompletion(asthat termisdefinedintheTransferAgreement)isachieved;and

(ii) theSettlementAgreementhasbeendulyexecutedbyallpartiestothatdocument.

(e) Untiltheconditionsinclause7.1(d)aresatisfied,Councilwillprovideinterimfunding associatedwiththeCRLProject(asprovidedintheSettlementAgreement).

7.2 TargetDeliveryCost,TotalAvailableFundingandMonitoringPoints

(a) CRLLacknowledgesandagreesthat:

(i) theTargetDeliveryCosthasbeenapprovedbytheSponsors;

(ii) theSponsors’commitmentsaretofunduptotheCrownFundingAmountandthe AucklandCouncilFundingAmountrespectively;and

(iii) neitherSponsorshallhaveanyobligationnorcommitmenttotheotherSponsoror toCRLLtofundCRLLinanyamountwhich,whenaddedtogetherwithany previousamountfundedunderthisAgreement(otherthananamountthataNonDefaultingSponsorelectstofundpursuanttoparagraph5(c)ofSchedule10), wouldresultinanamountpayablebythatSponsorwhichisgreaterthanits respectiveSponsorCommittedFunding.

(b) TotheextentthatanyMonitoringPointthresholdsunderthisAgreementareorbecome higherthantheTotalAvailableFundingamount,thisshallnottobeinterpreted,ortaken byCRLL,asanundertakingbyeitherSponsortopay,anyamountabovetheCrown FundingAmountortheAucklandCouncilFundingAmount,asthecasemaybe.

(c) CRLLisresponsibleformeetingallcosts,expensesandliabilitiesarisingoutoforin connectionwiththeCRLProjectandthePermittedFundingPurposesfromtheTotal AvailableFunding,including:

(i) CRLL’sowncostsandexpensesincludingcompanyoverheads;

(ii) allcosts,losses,claims,expensesandliabilities;

(iii) sharedservicescharges;

(iv) personnel,capitalequipment,disbursementsandoperatingassets;

(v) paymentsunderallProjectContractsandProjectDeliveryAgreements;and

(vi) Consentfees.

8.ForecastProjectCosts

(a) ThescheduleofForecastProjectCosts,includingtheQuarterlyCashFlowForecastasat theExecutionDate,forCRLLandtheCRLProjectissetoutinSchedule6.

(b) EachquarterCRLLshallprepareandsubmittotheSponsors(whetheraspartofaFunding Requestornot)aQuarterlyCashFlowForecastandupdatedForecastProjectCostsfor CRLLandtheCRLProject.

9.MitigationofCosts

CRLLshall,atalltimes,performitsobligationsandexerciseitsrightsunderthisAgreementin suchamannerastomitigate,tothefullestextentpossible:

(a) anycosts,expensesand/orotherliabilitiesthatwouldotherwiseaccruetotheaccountof eitherorbothSponsors;and/or

(b) thefundingcommitmentoftheSponsorsunderthisAgreement.

10.PermittedFundingPurposes

(a) CRLLshallusethefundingmadeavailablebyeitherSponsorunderthisAgreement and/ortheproceedsfromanyassetsaleaspermittedunderthisAgreementfromtimeto timeforthefollowingpurposesonly:

(i) inconnectionwithCRLL'smanagement,deliveryandcompletionoftheCRL ProjectinaccordancewiththisAgreementincluding,withoutlimitation,carrying outitsobligations,dischargingitsliabilitiesandexercisingitsrightsunderthis Agreement,theDeliveryPartnerAgreements,theMaterialContractsandany otherProjectContracts;

(ii) formaintainingCRLLasacorporate,operationalandbusinessentitywiththe purposeofdeliveringtheCRLProject,includingstaffandhumanresourcecosts, accommodation,informationtechnologyinfrastructure,Consents,corporatecosts, directors'remunerationandothercoststypicallyincurredbyapublicsector organisationofCRLL'snature;

(iii) forpurposesreasonablyancillaryand/orrelatedtothepurposesinclauses10(a)(i) and(ii);

(iv) forthepurposetowhichithasbeenallocatedintherelevantFundingRequest; and/or;

(v) foranyotherpurposesexpresslyagreedbytheSponsorsinwriting.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page21

(b) CRLLshallnotuseanyofthefundingfromtheSponsorsunderthisAgreementand/orthe proceedsfromanyassetsaleaspermittedunderthisAgreementforanypurposeotherthan thosespecifiedinclause10(a).

11.Sponsorfailuretopay

Theprovisionsofparagraph5ofSchedule10shallapplyifeitherSponsorfailstopayallorany partofaFundingAmountunderaCompliantFundingRequestinaccordancewithSchedule10of thisAgreement.

12.Assetsaleproceeds

ThePartiesacknowledgethatitisintendedthattheproceedsofanyassetsaleaspermittedunder thisAgreementwillbeeither:

(a) usedbyCRLLtoreducetheamountoffundingrequiredfromtheSponsors;or

(b) iftheproceedsarereceivedafterallfundingrequestshavebeenmadeunderthis Agreement,distributedtotheSponsors(asshareholders).

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page22

13.SponsorInterface

13.1 Sponsors’Representative

(a) TheSponsorsshallnotifyCRLLonoraboutthedateofthisAgreementoftheidentityof thepersonwhomtheyhaveappointedtobetheleadoftheJointSponsorTeam (the Sponsors’Representative).

(b) TheSponsors’Representativeshallbetheprimarypointofcontactandcommunication betweentheSponsorsandCRLLforallpurposesrelatedtothisAgreement,including communicatingdecisionsoftheSponsorstoCRLL.

(c) TheSponsors’RepresentativeshallnothavetheauthoritytobindtheSponsorsorto exerciseanyoftheSponsors’powersorrightsunderthisAgreementunlessexpressly authorisedinwritingbytheSponsors.

(d) TheSponsorsmay,fromtimetotime,jointlynotifyCRLLinwritingofanychangetothe identityoftheSponsors’Representativeandthedatefromwhichthechangeshalltake effect.

13.2 CRLL’sRepresentative

(a) CRLLshall,fromtimetotime,notifytheSponsorsinwritingofthepersonitappointsas CRLL’sRepresentativeforthepurposesofthisAgreement(the CRLLRepresentative).

(b) CRLLshallensurethatitalwayshasapersonrepresentingitasCRLL’sRepresentativeas longasanyobligationsunderthisAgreementremaintobeperformedbyCRLL.CRLL’s RepresentativemustbeavailableasandwhenrequiredwithinBusinessHours.

(i) hassufficientexperienceandskillstoundertaketherole;

(ii) isprovidedwithallnecessaryinformationanddocumentationwithinits possessionorcontroltoenableCRLL’sRepresentativetofullyandeffectively performtheirfunctionsandresponsibilities;

(iii) implementssuchinternalproceduresasarenecessarytoensurethatallmaterial eventsrelatingtothisAgreementarebroughttotheattentionofCRLL’s RepresentativeandthendisclosedtotheSponsors;

(iv) ispresentatsuchtimesasarenecessarytoensurethatCRLLiscomplyingwithits obligationsunderthisAgreement;and

(v) isatalltimesduringBusinessHoursfullycontactableby:

(i) theAssuranceManager,ortheirdelegate;and

(ii) theSponsors’Representative,ortheirdelegate.

13.3 AssuranceManager

(a) WithoutlimitinganyrighttheSponsorsmayhaveunderthisAgreement,applicableLaws orotherwise,theSponsorsmayelectatanytimetoreviewormonitor(including procuringathirdpartytodoso),theCRLProjectWorksforanypurpose,includingto ensurethattheCRLProjectisbeingdeliveredinaccordancewiththisAgreement.

(b) TheSponsorsmay,byproviding10WorkingDays’noticetoCRLL,jointlyappointone ormoreassurancemanager(s)(the AssuranceManager) forthepurposesofcarryingout thefunctionsreferredtoinclause13.4forthebenefitoftheSponsors.

(c) TheSponsorsmaychangetheidentityofanAssuranceManagerbyjointlyproviding10 WorkingDays’noticetoCRLLadvisingtheidentityofthenewAssuranceManagerand thedateofthechange.

13.4 AssuranceManager’sFunctions

(a) TheAssuranceManager’sfunctionsshallinclude,withoutlimitation:

(i) providingindependent,informedadvicetotheSponsorsonprogressoftheCRL Projectinrespectoftime,costsandquality;

(ii) providingtheSponsorswithoversightandanalysisofanychangesinscope, includinganyChange;

(iii) monitoringCRLL'scompliancewiththisAgreement;

(iv) reviewingCRLLreportingoutputandcarryingoutadditionalauditsorreviewsto satisfytheSponsorsoftheadequacyandcompletenessofthesame;

(v) advisingtheSponsorswithregardtothecapabilityandresourcesdeployedby CRLLanditscontractors;and

(vi) performinganyotherfunctionreasonablyrequiredbytheSponsors.

(b) Inexercisingitsfunctionspursuanttoclause13.4(a),theAssuranceManagershallbe affordedfullaccess,reviewandauditrightsovertheperformancebyCRLL,including pursuantto,orinconnectionwith,anyProjectContractandDeliveryPartnerAgreement.

(d) TheAssuranceManagerisnotresponsiblefortheSponsors'compliancewiththeir obligationsunderthisAgreement.

13.5 CRLLtoprovideassistance

(a) CRLLshall(andshallprocurethateachofitsemployees,agents,contractors, subcontractorsandconsultantsshall)providetheAssuranceManagerwithsuch information(includingallCRLLcorrespondence,files,recordsanddocuments),assistance andaccess(includingallphysicalspace)astheAssuranceManagermayreasonably require.

(b) TheAssuranceManagershallbeprovidedwithanofficeandsuchotherfacilitiesasthe AssuranceManagermayreasonablyrequireatCRLL'smainprojectoffices.

14.Reportingandrecords

14.1 Reporting

AsfromtheEffectiveDate,CRLLmust:

(a) onamonthlybasis,reporttotheSponsors,whichatCRLL’selectionmaybebywayof provisionofpapersorpresentationsprovidedtotheCRLLBoardandminutesofmeetings oftheCRLLBoard,withinformationtokeeptheSponsorscurrentlyinformedinrelation totheCRLProject,andwhichshallincludethefollowingminimumrequirements:

(i) expenditureandfinancialstatusoftheCRLProject;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page24

(ii) anydelayorlikelydelaytotheCRLProjectormaterialpartoftheCRLProject; and

(iii) operational,procurementanddeliveryoftheCRLProjectincludinghealthand safetyandenvironmentalperformance,qualityoftheworksandanymaterial issuesarisingunder,orinconnectionwith,aProjectContractorDeliveryPartner Agreement;

(b) submittotheSponsorsaquarterlyreport(QuarterlyReport)intheformsetoutin Schedule7,suchreporttorelatetoeachprecedingquarterandtobeprovidedwithin5 WorkingDaysaftertheendofeachsuchperiodcommencingaftertheEffectiveDate;

(d) providetheSponsorswithallpapersrelevanttotheCRLLBoard,includingpresentations madetotheCRLLBoardandminutesofmeetingsoftheCRLLBoard.

14.2 Financialreportingobligations

CRLLshallprovideeachoftheSponsorswiththeauditedfinancialstatementsofCRLLassoon astheyarepreparedtogetherwithsuchotherinformationregardingCRLL'sfinancialcondition aseitheroftheSponsorsmayreasonablyrequire.CRLLshallprovidesuchinformationinany formreasonablyrequiredandagreedbytheSponsorsand,withoutlimitation,thatallows consolidationforpublicsectoraccountingpurposes(whereapplicable).

14.3 Records

CRLLshallatalltimesmonitorthedeliveryoftheCRLProjectWorksandshall:

(a) atalltimesmaintainallrecordsrelatingtotheperformanceofitsobligationsandexercise ofitsrightsunderthisAgreement,theProjectContractsandtheDeliveryPartner Agreements,including:

(i) particularsoftheForecastProjectCosts,actualcostsincurredbyCRLLinrelation totheCRLProject(includingthoseincurredpursuanttoanyProjectContract, DeliveryPartnerAgreementorotherdirectCRLLrelatedcostssuchascostsof employees,insurances,officeandadministrationandotheroverhead);

(ii) Taxpayments;

(iii) administrativeoverheads;

(iv) design,constructionandengineeringinformation(includingdrawings);

(v) paymentsmadetoorreceivedfromcontractorsandotherpartiestoanyProject ContractoranyDeliveryPartnerAgreement;

(vi) detailsofanymaterialdefectsidentifiedintheCRLProjectWorks;

(vii) detailsofanyinfringementnoticesreceivedbyCRLL;

(viii) healthandsafetyincidents;

(ix) capitalandoperatingexpenditure;

(x) suchotheritemsastheSponsorsmayreasonablyrequirefromtimetotimeto conductcostsauditsforverificationofexpenditureforthepurposeofthis Agreement;and

(xi) othermattersrelevanttoCRLL'sreportingrequirements;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page25

(b) withrespecttothemaintenanceofrecordsreferredtoinclause14.3(a),complywithbest accountancypractice,generallyacceptedaccountingprinciples(asapplicable)andany applicableLaws;

(c) atalltimesmaintainafullrecordofparticularsofthecostsofcarryingouttherelevant partsoftheCRLProjectWorksandshallprocurethateachDeliveryContractordothe same;

(d) makeavailablethebooksofaccount,evidencingCRLL'smaintenanceofsuchrecordsfor inspectionbyeitheroftheSponsorsandtheirrepresentatives(includingtheAssurance Manager)uponreasonablenotice;and

(e) providesuchfacilitiesaseitheroftheSponsorsreasonablyrequirefortheirrespective representatives(includingtheAssuranceManager)tovisitanyplacewheretherecordsare heldandexamineandcopytherecordsmaintainedunderthisclause14.3.

15.Audits

(a) TheSponsorsmay,atanytimeandfromtimetotime,initiateanaudittoverifyCRLL’s compliancewithandperformanceofitsobligationsunderthisAgreement,including compliancewiththeDeliveryStrategy.

(b) TheSponsorsmust:

(i) giveCRLLreasonablenoticeofwhentheauditistobeconducted;

(ii) giveCRLLanestimateoftheaudit’sduration;and

(iii) adviseCRLLoftheindividualstowhomtheSponsorswishtohaveaccess.

(i) providesuchinformation,explanationsanddocumentationrequestedbythe personsundertakingtheauditfortheSponsorsthatarerelevanttotheconductof theaudit;and

(ii) maketherecordsavailabletothoseundertakingtheauditonbehalfofthe Sponsors.

(d) Upontheconclusionofanyaudit,thepersonthathasundertakentheauditshallpreparea reportandmakethatreportavailabletotheSponsorsandCRLL.ThePartiesmustreview thatreporttogetherassoonaspracticableafteritisissued.Ifthatreportrevealsfailureon thepartofCRLLtobeincompliancewithanyofitsobligations,CRLLshallpromptly takesuchstepsnecessarytoremedyormitigatetheeffectofthosefailures.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page26

PartG–AdverseEventsandMonitoringPoints

16.Adverseevents

16.1 AdverseEvents

(a) CRLLshallpromptlynotifytheSponsorsifany,delay,risk,event,circumstanceorseries ofeventsorcircumstancesoccurswhichhas,orislikelytohave,anymaterialadverse impact,withoutlimitation,on:

(i) theCRLProjectand/oritsimplementation;

(ii) theForecastProjectCosts;

(iii) operational,deliveryorprocurementmatterwhichmayhaveorhashadmaterial adverseconsequencesincludinginrelationtohealthandsafety,environmental, qualityoremploymentmatters;

(iv) anyKeyMilestoneoranyofthedatessetoutintheProjectDeliverySchedule includingtheTargetProjectDeliveryDateand/ortheTargetFinalCompletion Date;or

(v) thereputationoftheSponsors,CRLLortheCRLProject, (suchaneventbeingan AdverseEvent).

(b) AnynoticegivenbyCRLLunderclause16.1(a)inrelationtoanAdverseEvent(Adverse EventNotice)shallprovidedetailsofthenatureoftheeventanditspotentialconsequences andimpactontheCRLProjectandthematterssetoutabove.

(c) RegardlessofwhetherCRLLhasprovidedsuchnotification,wheretheSponsorsconsider (actingreasonably)thatanAdverseEventhasoccurredorislikelytooccur,theSponsors mayissueCRLLwithanoticeinformingCRLLthattheSponsorsconsiderthatan AdverseEventhasoccurred.

(d) CRLLshalluseallreasonableendeavourstopreventandmitigatetheeffectsofany AdverseEvent.

(e) FollowingprovisionofanAdverseEventNoticeand/oranoticeprovidedunderclause 16.1(c),theSponsorsmayrequireCRLLtopromptly(andinanyeventwithinsuchperiod asmaybereasonablyspecifiedbytheSponsors)prepareaRemedialActionPlanin accordancewithclause19.

(f) TheSponsorsshallnotifyCRLLofanyactionwhichtheyreasonablyrequireCRLLto taketomitigatetheeffectsoftheAdverseEvent.Thisnotificationmaybegivenbythe SponsorsatanytimefollowingreceiptofanAdverseEventNotice(whetherbefore, duringorafterreceiptofanyRemedialActionPlan).

(g) Fortheavoidanceofdoubt,ifandtotheextenteitherclause17orclause18applies,then theprovisionsofthisclause16shallnotapply.

17.MonitoringPoints

17.1 Notification

(a) CRLLshallnotifytheSponsorspromptly,andinanyeventwithin5Working Days,upon (foranyreasonwhatsoever):

(i) ForecastProjectCostsexceedingorlikelytoexceedtheamountsetoutinlimb(a) ofthedefinitionofanyoftheMonitoringPoints;or

(ii) anticipateddelayintheCRLProjectWorksoranypartofit,suchthatlimb(b)of thedefinitionofanyoftheMonitoringPointsistriggered.

(b) TheSponsorsmaynotifyCRLLintheeventthattheyconsider(suchdeterminationbeing attheabsolutediscretionoftheSponsorsandincludingasaresultoffindingsinrelation toaReviewPoint)thattheeventsinclause17.1(a)(i)orclause17.1(a)(ii)haveoccurred orarelikelytooccur.

17.2 RemedialActionPlanandMonitoringPoint1

(a) AtanytimeafteranoticehasbeenservedbyeitherPartypursuanttoclause17.1,CRLL shallprovide(within30days)totheSponsorsaRemedialActionPlaninaccordancewith clause19.1.AnysuchRemedialActionPlanpreparedbyCRLLshall,inadditiontothe matterssetoutinclause19.1,includethefollowing:

(i) thereasonsfor,andcircumstancesgivingriseto,theForecastProjectCosts exceedingtherelevantMonitoringPointamountand/orthedelay,asthecasemay be;

(ii) adetailedproposalsettingouthowCRLLproposestoreducetheForecastProject CostsbelowtheTargetDeliveryCost,whichproposalshallreflectandaddressthe Sponsors’guidance;

(iii) adetailedproposalsettingouthowCRLLproposestorevisetheProjectDelivery Scheduletomitigatetheeffectsofthedelay,andinanyeventtoensurethat;

(A) theProjectDeliveryDateshalloccurnolaterthantheTargetProject DeliveryDate;and

(B) theFinalCompletionDateshalloccurnolaterthantheTargetFinal CompletionDate;

(iv) conditionsoforcriteriaforsuchaplan;and

(v) anyotherrelevantinformationorotherinformationreasonablyrequestedbythe Sponsors.

(b) IftheSponsorsapprovesuchRemedialActionPlan,CRLLshallimplementitsproposals setoutinsuchplantoreducetheForecastProjectCostsbelowtheTargetDeliveryCost and/ormitigatetheeffectsofthedelayandensurethattheProjectDeliveryDateshall occurnolaterthantheTargetProjectDeliveryDateandtheFinalCompletionDateshall occurnolaterthantheTargetFinalCompletionDate,asthecasemaybe.

(c) IftheMonitoringPointRemedialActionPlanisnotapprovedbytheSponsors,CRLL shallamendtheplanasrequiredbytheSponsorsandshallnotimplementanysuchplan priortoreceivingapprovalfromtheSponsors.

17.3 MonitoringPoint2:Boardobserver

(a) Withoutprejudiceandinadditiontotherightsandobligationsofthepartiesunderclause 17.2,theCompaniesAct,andtheconstitutionofCRLL,atanytimeafteranoticehasbeen servedpursuanttoclause17.1thatForecastProjectCostshasexceededorislikelyto exceedtheamountsetoutinlimb(a)ofthedefinitionofMonitoringPoint2,orthereisan

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page28

(i) theSponsorsmayservenoticeonCRLLappointinganobserverorobserversto theBoardofCRLL;and

(ii) requireCRLLtoprovidesuchinformationtotheobserver(s)astheSponsors considernecessaryfortheobserver(s)toperformtheirfunctions.

(b) CRLLshallcomplywiththeinstructionsoftheSponsorsassetoutinthenoticeserviced pursuanttoclause17.3(a).

17.4 MonitoringPoint3:ReplacementofDirectors

WithoutprejudiceandinadditiontotherightsandobligationsofthepartiesunderClause17.2, and17.3,theCompaniesActandtheconstitutionofCRLL,atanytimeafteranoticehasbeen servedpursuanttoclause17.1thatForecastProjectCostshasexceededorislikelytoexceedthe amountsetoutinlimb(a)ofthedefinitionofMonitoringPoint3,orthereisananticipateddelay intheCRLProjectWorksoranypartofit,suchthatlimb(b)ofthedefinitionofMonitoring Point3istriggered,theSponsorsmayservenoticeonCRLLtoreplaceoneormore(including all)ofthedirectorsofCRLL.

18.CRLLDefault

(a) ACRLLDefaultoccursifCRLLfailstocomplywithamaterialundertakingofCRLL underthisAgreement(CRLLDefault).Withoutlimitingtheforegoing,CRLLDefault shallinclude:

(i) anywilfulornegligentmisreportingbyCRLLtotheSponsors;

(ii) failurebyCRLLtocomplyinanymaterialrespectwithanySponsordirection underclause19.1(f)inrelationtoaRemedialActionPlan;

(iii) failurebyCRLLtocomplyinanymaterialrespectwithanyRemedialActionPlan approvedbySponsorsinaccordancewithclause17.2(b);

(iv) failurebyCRLLtocomplyinanymaterialrespectwiththeprovisionsofclause4;

(v) failurebyCRLLtoobtainapprovaloftheSponsorsasrequiredbythisAgreement;

(vi) failuretocomplywithrequirementsofSponsorsinrelationtoReviewPoints within10WorkingDaysofawrittennoticefromtheSponsorsinformingCRLLof thesameandrequiringCRLLtoremedysuchfailure;or

(vii) anymaterialbreachbyCRLLofitsobligationsunderthisAgreement,any MaterialContractorDeliveryPartnerAgreement,otherthantotheextentthatthe samemayhavebeencausedorcontributedtobytheSponsors.

(b) UpontheoccurrenceofaCRLLDefault,theSponsorsmayrequireCRLLtotakesuch actioninrespectoftheimplementation,deliveryandmanagementoftheCRLProjectas theSponsors,intheirdiscretion,determinenecessaryoradvisable.Suchactionsmay include,withoutlimitation,requiringCRLLtoprepareandimplementaRemedialAction Planinaccordancewithclause19.1(totheextentsuchplanhasnotpreviouslybeen preparedbyCRLL),increasedmonitoringaswellasexercisingtherightsavailableto Sponsorssetoutinclauses17.3and17.4.

(c) IftheSponsorsrequireCRLLtotakeactionpursuanttoclause18(b),CRLLshallcomply withtheSponsors’instructionsinrespectofsuchactionuntilsuchtimeastheSponsors notifyCRLLotherwise.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page29 anticipateddelayintheCRLProjectWorksoranypartofit,suchthatsuchthatlimb(b) ofthedefinitionofMonitoringPoint2istriggered:

(d) FollowingtheoccurrenceofaCRLLDefault,CRLLwillpromptlyprovidesuch assistanceandsuchinformationtotheSponsorsastheSponsorsreasonablyrequire.

19.RemedialActionPlan

19.1 RemedialActionPlan

(a) CRLLwillpromptly,andinanyeventwithintheperiodrequiredtodoso,preparea RemedialActionPlaninconsultationwiththeSponsorsandeachPartywillensurethat appropriaterepresentativesconsultandcollaborateinthedevelopmentoftheRemedial ActionPlan.

(b) TheRemedialActionPlanwillbeadocumentthatsetsoutinreasonabledetailaproposal, orarangeofproposals,toaddresstheimpactoftheRelevantEvent.Itmayincludeany proposalsreasonablyconsideredbyCRLLtobeappropriateandviablehavingregardto thenatureandcircumstancesoftheRelevantEventandshallspecifydetailsfor implementingsuchproposalsandCRLL'sforecastoftheimpactofsuchproposalsonits obligationsunderthisAgreement.

(i) acomprehensivedescriptionoftheRelevantEventanditsgeneralnatureand seriousnessand(whererelevant)thedateofitsoccurrenceanditsanticipated duration;

(ii) CRLL'sbestestimateoftheeffectthattheRelevantEventwillhaveonthe ForecastProjectCosts,includingwhenCRLLexpectsthatanyadditionalcosts willbeincurred,bywayofarevisedForecastProjectCostsschedule,specifying thereasonsforanyadditionalcostsormaterialchangeintherevisedForecast ProjectCostsandidentifyinganyalternativestrategiestoavoidormitigate additionalcosts;

(iii) CRLL'sbestestimateofanydelaythattheRelevantEventwillcausetothe achievementoftheProjectDeliverySchedule(includinganyKeyMilestones,the TargetProjectDeliveryDateandtheTargetFinalCompletionDate)asaresultof suchdelay,including:

(A) providinganestimateoftheprobableeffectofthedelay;

(B) specifyingwhetherornotanyofCRLL’scontingencyplans(orany adaptationofthesame)canbeutilisedtoavoidormitigatethedelay;

(D) providingarevisedProjectDeliverySchedule,showingthemannerand theperiodsinwhichCRLProjectWorksistobecarriedouttoachievethe TargetProjectDeliveryDateandtheTargetFinalCompletionDate;

(iv) CRLL'sopinionofanyotheradverseeffectstheRelevantEventwillhaveonthe CRLProjectoronCRLL'sabilitytodischargeitsobligationsunderthis Agreement;

(v) detailsoftheactionthatCRLLproposestotaketomitigatethetimeandcosts impactsoftheRelevantEvent;

(vi) anystepsthatCRLLsuggeststhattheSponsorsshouldtaketoaddresstheimpacts oftheRelevantEvent(fortheavoidanceofdoubt,theSponsorsshallnotbe obligedtoacceptCRLL'ssuggestion);

(vii) thelikelyimpact(ifany)ontheSponsors’Requirementsand/ortheDelivery Strategy;

(viii) arevisedQuarterlyReportandtheProjectDeliveryScheduletoreflecttheimpact oftheRelevantEvent;and

(ix) anyotherinformationreasonablyrequestedbytheSponsorsinrelationtothe RelevantEvent.

(d) ThePartiesshallmeetassoonasreasonablypracticablefollowingtheissueoftheRemedial ActionPlanwithaviewtodiscussingandagreeingthelikelyconsequencesofthe RelevantEvent.

(e) TheSponsors'responsetotheRemedialActionPlanmaybeto:

(i) agreetopartoralloftheproposalssetoutintheRemedialActionPlan,inwhich caseCRLL(and,totheextentspecifiedintheRemedialActionPlan,the Sponsors)shallimplementtheRemedialActionPlaninaccordancewithitsterms includingmakingsuchamendmentstothisAgreementastheSponsorsmayagree;

(ii) withoutprejudicetoSchedule9,requestthatCRLLrevisetheRemedialAction PlantotakeintoaccountanyalternativeproposalssuggestedbytheSponsors,in whichcaseCRLLshall,actingreasonably,revisetheRemedialActionPlan;or

(iii) requireCRLLtotakeanyotheraction,astheSponsorsreasonablyseefitinthe circumstances,andanysuchresponseshallbewithoutprejudicetotheotherrights thatareavailabletotheSponsorsunderthetermsofthisAgreementandtheother SponsorDocuments.

(f) CRLLshallpromptlytakesuchaction,ifany,asisnecessarytogiveeffecttothe Sponsorsdirectionunderclause19.1(e).

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page31

PartH–GeneralProvisions

20.IntellectualProperty

20.1 CRLIntellectualProperty

(a) UnlesstheSponsorsotherwiseagree,CRLLshallprocurethatit:

(i) owns(whetherbyassignmentorotherwise),freefromallthirdpartyrights,all IntellectualPropertycreatedordevelopedexclusivelyinconnectionwiththeCRL Project(includingalldesigndrawingsandplans)(DevelopedCRLIP);

(ii) owns,orisgrantedaperpetual,irrevocable,transferable,sub-licensable(including therighttograntfurthersubordinatelicencestoanythirdparty),royalty-free licenceofallotherIntellectualPropertynecessaryfortheCRLProject (BackgroundCRLIP)foruseinconnectionwiththeCRLProject,providedthat:

(A) CRLLshallobtainownershipofBackgroundCRLIPtotheextent ownershipisavailableoncommerciallyreasonableterms(takinginto accountbestvalueprinciples);and

(B) inrelationtosoftwareforwhichaStandardSoftwareLicenceis obtainable,CRLLmayacceptsuchStandardSoftwareLicenceprovided itstermsarereasonableandatleastasfavourabletoCRLLasthose generallyavailable;and

(iii) isabletocomplywithitsobligationsunderclauses20.1(b),(c),(d)and(e)below.

(b) CRLLgrantsseparatelytoeachoftheSponsors,theOperator,anyeventualownerofthe CompletedCRLAssetsandtheirrespectiveAffiliatesandanyotherpersoninvolvedin theCRLProject(IPLicensees)aperpetual,irrevocable,transferable,sub-licensable, royalty-free,non-exclusivelicence(or,asthecasemaybe,sub-licence)tousetheCRL IntellectualProperty.

(c) OtherthaninrespectofStandardSoftwareLicences,CRLLshallprocurethateachIP Licenseeispromptlyprovidedwithcopiesofthelatestversionsofalldocumentation (includingtrainingmanualsandtechnicalinformation(includinginanyelectronic format))andsoftware(inexecutableobjectcode)usedinconnectionwiththeCRL Project,asthatIPLicenseemayfromtimetotimereasonablyrequest.

(d) CRLLshallnotifytheSponsors,onrequest,ofdetails(includingtheowner,scope,typeof IntellectualPropertyandanyregistrationnumber)ofmaterialCRLIntellectualPropertyin existencefromtimetotime.

(e) CRLLshallensurethatthetermsoftheProjectContractsandtheDeliveryPartner Agreementsallowittocomplywithitsobligationssetoutinthisclause20.

20.2 MoralRights

CRLL,inrespectofallCRLIntellectualPropertytotheextentpermittedbyapplicableLaws,will not,andwilltakeallreasonablestepstoensurethatnothirdpartywillsue,enforceanyclaim, bringanyactionorexerciseanycureinrespectofanybreachorallegedbreachofanyperson’s MoralRightsinrespectofanyCRLIntellectualPropertyagainsttheSponsors,oranythirdparty towhomtheSponsorslicense(whetherexpressorimplied),orgrantsanyotherrightstouse, possess,modify,varyoramendanyCRLIntellectualProperty.

21.Communications

(a) CRLLshalldevelopaprotocol(whichshallbesubjecttothereviewandapprovalofthe SponsorsinaccordancewithSchedule4)forexternalcommunicationsandpromotional activitybyCRLLandtheSponsorsinrelationtotheCRLProjectaspartoftheDelivery Strategy(CommunicationsStrategy).

(b) CRLLwillberesponsibleforallday-to-daycommunications,announcementsandbrand managementconcerningtheCRLProject,inaccordancewiththeCommunications Strategy.

(i) provideforpriorconsultationandapprovalbytheSponsorsofannouncementsto thepublicorthirdpartycontactorsconcerningthisAgreementortheSponsors;

(ii) anengagementprocesswithSponsorsonmattersconcerningpublicstatements abouttheCRLProject(includingperformanceandcostrelatedmatters);

(iii) collaborationonpublictransportpromotionandmattersimpactingthewider Sponsorobjectivesworkstreamssuchaslong-termownershipandoperationofthe commuterrailnetwork;

(iv) ensurethattheSponsorsaregivenappropriatebrandingrecognitioninrelationto theirfundingoftheCRLProject;and

(v) anyothermattersthatshouldbeincludedinsuchstrategyconsistentwithGood IndustryPractice.

(d) FollowingapprovaloftheCommunicationsStrategybytheSponsors,thePartiesshall eachcomplywiththeCommunicationsStrategyinrelationtoanyannouncementor externalcommunicationinrelationtotheCRLProject.

(e) TheCommunicationsStrategymustnotpreventaPartyfrombeingabletocomplywith thelegallybindingrequirementsofanyapplicableLaw,orderofcourt,tribunal,authority, governmentalorregulatorybody.

22.Disputes

22.1 DisputesunderorinconnectionwiththisAgreement

ThePartiesshallcomplywiththeprovisionsofSchedule12inrelationtoresolutionofDisputes underorinconnectionwiththisAgreement.

23.Companyrepresentationsandwarranties

23.1 Negativeundertakings

CRLLwillnot,withouttheSponsors’priorwrittenconsent,atanytime:

(a) createorpermittosubsistanySecurityInterestover,inrelationtoorotherwiseaffecting, anyofitsassets,otherthanaPermittedSecurityInterest;

(b) whetherbyasingletransaction,oranumberofrelatedorunrelatedtransactionsand whetheratthesametimeoroveraperiodoftime,disposeofanyofitsassets(including anyland)orenterintoanyagreementorheadsoftermsinrelationtoadevelopmental opportunityinrelationtoanylandordevelopment;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page33

(d) incuroralloworpermittosubsistanyDebt(includingbygivingaguarantee),otherthan PermittedDebt;

(e) enterintoorincuranyoffbalancesheetcommitment;

(f) undertakeanypropertyorlanddevelopment;

(g) enterinto:

(i) anypartnershiporjointventure;

(ii) anytransactionotherthanonarm’slengthterms;or

(iii) anytransactionwithanyrelatedcompany oranysubsidiaryofCRLLexceptfor valueintheordinarycourseofbusinessonanarm’slengthbasisandonnormal commercialterms;or

(h) assigntransferchargeorotherwisedealwithitsrightsinanylandoranyotherassets ownedbyCRLL.

25.1 ProtectionofConfidentialInformation

EachPartymust:

(a) usetheConfidentialInformationonlyforpurposesrelatedtothisAgreement,theother SponsorDocumentsandtheCRLProject;and

(b) subjecttoclause25.2,keeptheConfidentialInformationconfidentialandnotdiscloseit orallowittobedisclosedtoanythirdpartyexceptwiththepriorwrittenapprovalofthe otherParties.

25.2 Permittedexceptions

Withoutlimitingclause25.1,eachParty’sobligationsofconfidentialityunderclause25.1shall notapplytothedisclosureofConfidentialInformation:

(a) reasonablyrequiredbyanyPartyfortheperformanceofitsobligationsunderthis AgreementoranyotherSponsorDocument,providedthattherelevantPartyprocuresthat anypartytowhomitdisclosesissubjecttothesameconfidentialityobligationscontained inthisclause25.1inallmaterialrespects;

(b) reasonablymadebyanyPartytothoseofitsdirectors,employeesorofficersforany purposerelatedtoorancillarytothisAgreementoranyotherSponsorDocument,and whohaveaneedtoknowsuchinformationforthepurposesofthisAgreementorany otherSponsorDocumentorotherwisefortheproperperformanceoftheirdutiesprovided thattherelevantrecipientagreestotreattheConfidentialInformationonmateriallythe sameconfidentialbasisasunderthisclause25;

(c) reasonablyrequiredormadebyanyPartytoanythirdpartyprovidingworksorservicesin respectoftheCRLProject,totheextentthattheyhavea‘needtoknow’thatConfidential InformationandwhoagreestotreattheConfidentialInformationonmateriallythesame confidentialbasisasunderthisclause25;

(d) thatisalreadyinthepublicdomain(excepttotheextentofabreachofthisAgreementor anyotherobligationofconfidence);

(e) thatisalreadyinthelawfulpossessionofthereceivingparty(excepttotheextentofa breachofthisAgreementoranyotherobligationofconfidence);

(f) totheextentrequiredtobedisclosedbythelegallybindingrequirementsofanyapplicable Law,orderofcourt,tribunal,authority,governmentalorregulatorybody;

(g) tothePrimeMinister,aMinisterorotherofficerofParliament;or

(h) totheMayor,providedthattheMayorismadeawareoftheconfidentialnatureofthat ConfidentialInformation.

25.3 OfficialInformationLegislation

EachPartyacknowledgesthattheotherPartiesareormaybesubjecttotheOfficialInformation LegislationandthatthePartiesmaybeobligedtodiscloseConfidentialInformationunderthe OfficialInformationLegislationifsorequestedandifthereisnogoodreasonunderthetermsof therelevantlegislationtowithholdthatinformation.EachPartyshallusereasonableendeavours toadvisetheotherPartiesofanyrequestreceivedbyitundertheOfficialInformationLegislation thatrelatestoConfidentialInformationofanyotherParty.

25.4 Sponsorengagementofthirdparty

WheretheSponsorsengageanythirdpartytoprovideworksorservicesinrespectoftheCRL Project,priortosuchengagement,theSponsorsshallconsultwithCRLLtoensurenoconflictof interestarisesormayariseasaresultofsuchengagement.

26.Notices

26.1 NoticesinWriting

AnynoticeorothercommunicationtobegivenunderthisAgreement:

(a) mustbeinwriting;and

(i) fordaytodayoperationalmattersmustbeaddressedtoeithertheCRLL RepresentativeortheSponsors’Representative(asapplicable);and

(ii) forallothermattersincludingforthepurposesofSchedule12(Dispute Resolution)mustbeaddressedtotherecipientattherelevantaddressnominated setoutbelow(ineachcaseorasotherwisenotifiedbyaPartytotheotherParty fromtimetotime):

Party Crown Council CRLL

Address: MinistryofTransport 318LambtonQuay POBox3175

Wellington6011

Email:

Attention: ChiefExecutiveOfficer, copiedtotheChiefLegal Advisor

26.2 DeliveryofNotices

AucklandCouncil 135AlbertStreet

Auckland1010

CityRailLinkLimited POBox105777

Auckland1141

ChiefExecutiveOfficerProjectDirector

(a) Subjecttoclause26.2(b),anoticeorothercommunicationmaybeeffectedbyhand,by postwithpostageprepaid,orbyemail.Anoticeorothercommunicationistakentohave beenreceived:

(i) ifthenoticeorothercommunicationisdeliveredbyhandtothereceiver,atthe timeofdelivery;

(ii) ifthenoticeorothercommunicationispostedinapostagepaidregistered envelopeaddressedtothereceiver,atthetimewhenitwouldbereceivedinthe ordinarycourseofregisteredpostthenprevailing;or

(iii) ifthenoticeordocumentissentbyemail,atthetimeshownonthedelivery receiptstatingthattheemailwasreceivedbytherecipient, butifreceiptordeemedreceiptisonadaywhichisnotaWorkingDayorisafter5:00pm attheplaceofreceipt,itistakenasreceivedat9:00amonthenextWorkingDay.

(b) AnynoticetoaPartyunderSchedule12(DisputeResolution)maybesentbyemail provideditisalsogivenbyhandorbyregisteredpost.

27.GeneralMatters

27.1 SponsorReputation

CRLLundertakesnottoactinsuchamanneraswillbringthenameofeitheroftheSponsors intodisrepute.

27.2 Approvals

(a) Anyreview,approval,comment,acknowledgmentorcertificategivenbytheSponsors underthisAgreementshallnotrelieveCRLLfromanyliabilityormodify,anyofCRLL’s duties,obligations,orresponsibilitiesunderthisAgreement,unlesssuchduties,

MinterEllisonRuddWatts|RefVXN-201012445

ProjectDeliveryAgreement|page36

(b) NeithertheSponsors’participationinanyworkshops,presentationsorotherforumnor anyrevieworapprovalof,commentsuponorfailuretoreview,approveorcommentupon anydocumenttheSponsors’RepresentativeoranyoneelseonbehalfoftheSponsorswill:

(i) relieveCRLLfrom,oralteroraffect,CRLL’sobligationsorliabilitiesunderthis Agreement;

(ii) constituteanyrepresentationbytheSponsorsoranyoneactingontheirbehalfasto thecomplianceofanysuchdocumentsubmittedwiththerequirementsofthis Agreement;or

(iii) affectthetimeforperformancebyCRLLofitsobligationsunderthisAgreement.

27.3 Assignment

CRLLshallnot,andshallnotpurportto,assign,transfer,chargeorotherwisedealwithallorany ofitsrightsand/orobligationsunderthisAgreementnorgrant,declare,createordisposeofany rightorinterestinit,withoutthepriorwrittenconsentoftheSponsors.

27.4 Legalcosts

SubjecttoanyexpressprovisioninthisAgreementtothecontrary,eachPartyistopayitsown legalandothercostsandexpensesrelatingdirectlyorindirectlytothepreparationof,and performanceofitsobligationsunder,thisAgreement.

27.5 Amendment

Noamendment,modificationorvariationof,orwaiverinrespectof,thisAgreementshallbe validunlessitisinwritingandsignedbyoronbehalfofeachoftheParties.

27.6 NoAgencyorPartnership

(a) NothinginthisAgreementcreatesorconstitutesorisdeemedtocreateorconstituteany relationshipofemployment,trust,agencyorpartnershipbetweentheParties.

(b) NeitherSponsormayenterintoanycontracts,commitments,debtsorotherlegal documentsorarrangementsinthenameoftheotherSponsorortotakeanyactorstepto bindorcommittheotherParty.

27.7 Waiverandexerciseofrights

(a) Afailuretoexerciseorenforce,oradelayinexercisingorenforcingorthepartial exerciseorenforcementof,arightprovidedbylaworunderthisAgreementdoesnot preclude,oroperateasawaiverof,theexerciseorenforcement,orfurtherexerciseor enforcement,ofthatoranyotherrightprovidedbylaworunderthisAgreement.

(b) AwaiverorconsentgivenbyaPartyunderthisAgreementisonlyeffectiveandbinding onthatPartyifitisgivenorconfirmedorexercisedinwritingbythatParty.

27.8 Privity

NothinginthisAgreementisintendedto,ordoes,conferanybenefitsorenforceablerightsor interestsupon,ormakesanyrepresentationto,anypersonotherthanthecontractingparties.

27.9 Survival

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page37 obligations,orresponsibilitiesaremodifiedinaccordancewiththeChangeprocesssetout inSchedule9.

Anyindemnityoranyobligationofconfidenceunderthisdocumentisindependentandsurvives terminationofthisAgreement.Anyothertermbyitsnatureintendedtosurviveterminationof thisAgreementsurvivesterminationofthisAgreement.

27.10 Furtherassurance

(a) EachPartyistopromptlyexecutealldocumentsanddoallthingsthattheotherParties mayfromtimetotimereasonablyrequireofittoeffect,perfectorcompletetheprovisions ofthisAgreementandanytransactioncontemplatedbyit.

(b) EachPartyshallensurethatitsinternalgovernancearrangementsaresuchthatitisableto complywithitsrespectiveobligationsunderthisAgreement.

27.11 Counterparts

ThisAgreementmayconsistofanumberofcounterpartsandifsothecounterpartstakentogether constituteoneandthesameinstrument.

27.12 Governinglawandjurisdiction

ThisAgreementisgovernedandistobeconstruedunderthelawsinforceinNewZealand.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page38

Schedule1:DefinitionsandInterpretation

PartI–Definitions

InthisAgreement:

AdverseEvent hasthemeaninggiveninclause16.1(a).

AdverseEventNotice hasthemeaninggiveninclause16.1(b).

Affiliate meansapersonthatisa“relatedcompany”ofanyrelevantperson.

Agreement meansthisProjectDeliveryAgreement.

ApplicableStandards meansallcodesofpracticeorotherguidelinesissuedbyanyGovernment EntityorotherbodyhavingjurisdictiontoissuesuchguidelinesinrespectoftheCRLProject.

AssuranceManager hasthemeaninggiveninclause13.3(b).

ATDeliveryPartnerAgreement meanstheagreementofthatnametobeenteredintobythe partiestheretoonoraboutthedateofthisAgreement.

AucklandCouncilFundingAmount meanstheGSTexclusiveaggregatetotalfundingtobe providedbytheCouncilassetoutintheSponsorsAgreement.

AucklandTransport meansacouncil-controlledorganisationoftheAucklandCouncilinthe formofabodycorporatewithperpetualsuccession,establishedundersection38oftheLocal Government(AucklandCouncil)Act2009.

AuthorisedRepresentative means,inrespectofCRLL,adirectororapersonitnotifiestothe Sponsorsasbeingauthorisedtoactasitsauthorisedrepresentativeforthepurposesofthis AgreementwheretheSponsorshavenonoticeofrevocationofthatauthority.

BackgroundCRLIP hasthemeaninggiveninclause20.1(a).

BusinessHours meansfrom7.00amto5.00pmonaWorkingDay.

Change means:

(a) anyvariationoramendmentproposedbyeithertheSponsorsorCRLL(whetherbywayof addition,deletion,amendmentorfurtherdefinition)totheCRLProjectscopeassetoutin Schedule2ortotheSponsors’Requirements;

(b) anyrequirementoftheSponsorsforCRLLtochangethemannerinwhichCRLL undertakesthedesign,construction,commissioningandcompletionoftheCRLProjector theWorksPackages,includinganychangetotheDeliveryStrategy,anyadditionalor removedrequirementorconstraintunlesssuchchangeisrequiredtoensurethatCRLL complieswithitsobligationsunderthisAgreement;

(c) anyrequirementoftheSponsorsforCRLLtoprocureanystudy,investigation,designor otherserviceorreportinconnectionwiththeCRLProjectwhichCRLLisnototherwise requiredtoprovidepursuanttothisAgreement;and

(d) anyothermatterthatthisAgreementspecificallydeemstobeaChange.

ChangeAppraisal meansanywrittenreportdeliveredbyCRLLinaccordancewithparagraph 4.1ofSchedule9andcontainingtheinformationspecifiedinparagraph4.2ofSchedule9.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page40

ChangeAppraisalInstruction meansawrittennotificationprovidedbytheSponsorspursuant toparagraph3.2(b)ofSchedule9andcontainingtheinformationspecifiedinparagraph3.3of Schedule9.

ChangeConfirmationNotice hasthemeaninggiventosuchterminparagraph7.1of Schedule9.

ChangeNotice meanseither(a)anoticeservedjointlybytheSponsorsonCRLLpursuantto paragraph1.1ofSchedule9or(b)anoticeservedbyCRLLontheSponsorspursuantto paragraph1.2ofSchedule9,asthecontextmayrequire.

ChangeRejectionNotice hasthemeaninggiventosuchterminparagraph7.3ofSchedule9.

CommunicationsStrategy hasthemeaninggiveninclause21.

CompaniesAct meansthe CompaniesAct1993.

CompaniesOffice meansaNewZealandgovernmentagencyofthatnamethatprovidesbusiness registryservicesinrelationtocorporateentities,securitiesoverpersonalproperty,capitalmarkets andfinancialproducts.

CompletedCRLAssets meansallworksconstructed,procured,commissionedandbroughtinto servicepursuanttotheWorksPackagesandincludes,asthecasemaybe,theInitialCRLProject Assets.

ConfidentialInformation means:

(a) allinformationandtradesecretsalreadycommunicatedorsubsequentlycommunicated underorinconnectionwiththisAgreementorotherwisewithrespecttothesubjectmatter ofthisAgreementincluding(withoutlimitation)anyinformationobtained:

(i) inthecourseofnegotiationsleadingtotheconclusionofthisAgreement;or

(ii) intheperformanceofthisAgreement;

(b) anyinformationaboutthebusinessorpropertyofapersonincluding(withoutlimitation) anyinformation:

(i) relatingtothefinancialpositionofthatperson;

(ii) concerningthatperson’ssuppliersandcustomersoritsagentsorbrokers;

(iii) relatingtothatperson’sinternalmanagement,structure,personnelorstrategies;or

(iv) comprisingthetermsofthisAgreement;and

(c) allinformationinrespectofanymaterialsinwhichanypersonhasIntellectualProperty rightsinaccordancewiththetermsofthisAgreement.

Consents meansanyconsents,permissions,approvals,certificates,permits,licencesor authorisationsofaGovernmentEntityorjudicialbodyorotherwisebyLaw,whicharerequired fortheCRLProject.

CRLIntellectualProperty meanstheBackgroundCRLIPandtheDevelopedCRLIP.

CRLProject istheprojectgenerallyknownasthe‘CityRailLink’andmeanstheprojectforthe development,design,procurement,construction,commissioning,integrationandcompletionofa railwaytransportsystemasdescribedinmoredetailinSchedule2.

CRLLBoard meanstheboardofdirectorsofCRLL.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page41

CRLLDefault hasthemeaninggiveninclause18(a).

CRLLPersonnel meansanydirector,officer,employeeoragentof,orcontractortoCRLL.

CRLLRepresentative hasthemeaninggiveninclause13.2(a).

CRLProjectWorks meansthepermanentandtemporaryworksrequiredfortheimplementation oftheCRLProjectandfortheavoidanceofdoubtincludestheEarlyWorks.

CrownFundingAmount meanstheGSTexclusiveaggregatetotalfundingtobeprovidedbythe CrownassetoutintheSponsorsAgreement.

Debt meansanypresentorfutureactualorcontingentindebtednessorothermonetaryliabilityin respectofborrowedmoneyormoneyraisedoranyfinancialaccommodation.

DefaultingSponsor hasthemeaninggiventothatterminSchedule10.

DeliveryContractors meanseachofthecounterpartiestotheProjectContracts.

DeliveryPartnerAgreements meanstheagreementsforservicesenteredortobeenteredinto between:

(a) CRLLandeachofAucklandTransportandKiwiRaileitherbilaterallyorintri-partiteform; and

(b) CRLLandanyfuturethirdpartyowneroroperator, inrelationtotheCRLProject.

DeliveryStrategy meansthestrategytobedevelopedbyCRLLsettingoutthemannerinwhich CRLLintendstoprocuretheimplementationoftheCRLProject,asthesamemaybeamended fromtimetotimebyCRLLinaccordancewithclause4.5andSchedule4.

DevelopedCRLIP hasthemeaninggiveninclause20.1(a).

Dispute meansanydispute,disagreement,differenceofopinionordeadlockarisingbetween anyofthePartiesunder,inrespectoforinconnectionwithanymatterarisingfromthis Agreement,anyotherSponsorDocumentorotherwiseinconnectionwiththeCRLProject.

DisputeResolutionProcedure meanstheprocedurefortheescalationandresolutionofDisputes setoutinSchedule12.

EarlyWorks meansanydesign,construction,services(includingprocurementofmaterialsor equipment)orworksinfurtheranceoftheCRLProjectWorksundertakenpriortothedateofthis Agreement.

EarlyWorksPackage meanseachofthefollowingpackagesofEarlyWorks:

(a) ContractC1(LowerQueenStreet);

(b) ContractC2(LowerAlbertStreet);and

EffectiveDate meansthedatethisAgreementbecomesunconditionalunderandinaccordance withclause2.1.

ExecutionDate meansthedatethatthisAgreementwasexecutedbyallparties.

FinalCompletionDate meansthedateonwhichFinalProjectCompletionoftheentireCRL ProjectWorksoccurs,asapprovedbytheSponsorsinaccordancewithSchedule8.

FinalProjectCompletion hasthemeaninggiventothatterminSchedule8.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page42

FinalProjectCompletionCertificate hasthemeaninggiveninSchedule8.

ForecastProjectCosts meanstheforecastedtotalcostoftheCRLProjectassetoutinSchedule 6,asmaybeadjustedfromtimetotimeinaccordancewiththisAgreement.

FundingAmount meanstheamountofSponsorCommittedFundingrequestedinaFunding Request.

FundingDate hasthemeaningsetoutintherelevantFundingRequest.

FundingRequest meansarequestintheformsetoutinSchedule11requestingaFunding AmountfromtheSponsorsunderthetermsofthisAgreement,properlycompletedandgivenin accordancewithclauseSchedule10.

GoodIndustryPractice meanspracticescorrespondingwithorequivalenttosuccessful,reliable andsafeexamplesofrelevantmoderndesigns,constructionmethods,systemsandsystems operation,railwayoperationandmanagementandgovernanceproceduresemployedonrecent internationalrailwayandtunnellingprojectsormajorconstructionworks.

GovernmentalEntity meansanygovernment,oranygovernmentalorsemi-governmentalentity, personorauthority,bodypolitic(butexcludinganypoliticalparty),governmentdepartment,local governmentauthorityorstatutoryauthorityandincludes(unlessthecontextotherwiserequires) theCrown.

GST meansgoodsandservicestaxchargeableinaccordancewiththeGSTAct.

GSTAct meansthe GoodsandServicesTaxAct1985.

HSELegislation means,the HealthandSafetyatWorkAct2015 andincludesallregulationsand approvedcodesofpracticeunderthatActandanyotherapplicablehealthandsafetylaws, includingtheRailwaysAct.

InitialChangeAppraisal hasthemeaninggiveninSchedule9atparagraph2.1.

InitialCRLProjectAssets meanstheassets,contracts,arrangements,property(realand personal),rightsandinterestswhatsoeverandhowsoeverheld(legallyorbeneficially),thatare heldandrequiredfortheCRLProject,andthataretobetransferredtoCRLLpursuanttothe TransferAgreement.

IntellectualProperty meanspatents,registereddesigns,pettypatents,utilitymodels,trademarks (includinglogosandtradedress),domainnames,copyright,circuitlayouts,rightsincomputer softwareanddatabases,rightsininventions,know-howandbusinessprocessandmethods,(in eachcase)whetherregisteredorunregistered(includingapplicationsforthegrantofanyofthe foregoing)andallrightsorformsofprotectionthatarecapableofintellectualpropertyprotection underapplicableLaw.

JointSponsorTeam meansthejointsponsorteamestablishedundertheSponsors’Agreement.

KeyMilestones meansthespecificstagesoreventsinundertakingtheCRLProjectidentifiedin theProjectDeliveryScheduleaskeymilestones.

KiwiRail meansKiwiRailHoldingsLimitedtradingasKiwiRailwhichistheState-Owned EnterprisethatownsandoperatesNewZealand’srailandferrytransportnetworks.

Laws meansthoseprinciplesofNewZealandlawestablishedbythecourts,statutes,regulations, ordinances,by-lawsandanyothersubordinateformsofrulemakingofgovernment,anylocal authority,theCrownoranyotherGovernmentalEntityaswellasanyConsents(andany conditionsorrequirementsunderthem).

LocalGovernmentAct means,the LocalGovernmentAct2002.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page43

MaterialContract meanstheWorksPackagesC3,C5,C6,C7,C8,C9,andanycommissioning frameworkagreementorequivalenttobeenteredintobyCRLL.

MaterialContractor meanseachofthecounterpartiestoMaterialContracts.

Mayor meansthemayorofAuckland.

Minister meansanymemberofParliamentwhoisappointedbytheGovernor-GeneralofNew ZealandtoholdofficeasaministeroftheCrown.

MinisterofTransport meansamemberofParliamentwhoisappointedbytheGovernorGeneralofNewZealandtoholdofficeasaministeroftheCrownfortheministryoftransport.

MonitoringPoint meansanyorallofMonitoringPoint1,MonitoringPoint2,orMonitoring Point3.

MonitoringPoint1 means:

(a) inrelationtocosts,anamountequalto

MonitoringPoint2 means:

(a) inrelationtocosts,anamountequalto

MonitoringPoint3 means:

(a) inrelationtocosts,anamountequalto

MoralRights hasthemeaninggivenunderPart4ofthe CopyrightAct1994 andany correspondingorsimilarrightsgrantedunderanyotherlawsanywhereintheworld.

Non-DefaultingSponsor hasthemeaninggiventothatterminSchedule10.

OfficialInformationLegislation means:

(a) the OfficialInformationAct1982;and

(b) the LocalGovernmentOfficialInformationandMeetingsAct1987.

Operator meansanentityorentitiesappointedfromtimetotimetooperatetheCRLProject Worksorpartthereofoncecomplete.

Party meansapartytothisAgreement.

PermittedDebt meansanyDebt:

(a) owingbyCRLLtoatradesupplieronthesupplier’snormalcommercialtermsandinthe ordinarycourseofCRLL’stradingactivities;

MinterEllisonRuddWatts|RefVXN-201012445 ProjectDeliveryAgreement|page44

(b) owingbyCRLLtoanyoftheSponsors;or

PermittedSecurity Interest meansanySecurityInterest:

(a) createdinfavouroftheSponsors;or

(b) createdwiththeSponsors’priorwrittenconsent;or

(i) adeemedsecurityinterestundersection17(1)(b)ofthePPSAwhichdoesnot securepaymentorperformanceofanobligation;or

(ii) alienarisingsolelybyoperationoflawandintheordinarycourseofbusinessof CRLLprovidedthedebtitsecuresispaidwhendueoriscontestedingoodfaith byappropriateproceedings;or

(iii) aSecurityInteresttakenincollateralbyasellertotheextentthatitsecuresthe obligationtopayallorpartofthepurchasepriceofthatcollateral,wherethat collateralispurchasedintheordinarycourseofbusinessofthebuyerandthe purchasepriceispaidwithin60daysofsupply;or

(iv) anettingorset-offarrangemententeredintointheordinarycourseofaperson’s bankingarrangementsforthepurposeofnettingdebitandcreditbalances.

PermittedVariation meansaVariation:

(a) underaProjectContract(otherthanaMaterialContract)thatinvolvesCRLLincurring additionalexpenditureundertheProjectContractof andwillnot changeoraffectthescopeoftheCRLProjectassetoutinSchedule2ortheSponsors’ RequirementsortheabilityoftheCRLProjectWorkstobedeliveredwithintheTarget DeliveryCostandPracticalProjectCompletiontooccurbytheTargetProjectDelivery Dateand/orFinalCompletiontooccurbytheTargetFinalCompletionDate;or

(b) underaMaterialContract,thatinvolvesaVariationtotheworkswheretheadditional expenditureunderthatMaterialContractasaresultofthatVariationis andinrespectofwhichCRLLcertifiestoSponsorsthatsuchVariation:

(i) willnotcauseanextensionoftimeforperformancebyacontractorunderthe relevantMaterialContractwhichresults,orislikelytoresult,inadelaytothe ProjectDeliveryDateand/ortheFinalCompletionDate;

(ii) willnotresultin,andisnotlikelytoresultin,thebudgetforthatMaterialContract (takingintoaccountallvariations)beingexceededbyanamountgreaterthanthe contingencyprovisionallowedintheForecastProjectCostsforthatMaterial Contract;

(iii) willnotchangeoraffecteitherthescopeoftheCRLProjectassetoutinSchedule 2ortheSponsors’Requirements;and

(iv) canbecarriedoutwithinthetermsofallrelevantConsents; providedthat,ineachcase,theVariationisnotinconsistentwiththescopeoftheCRL Project(includingthequalityandcharacter).

Post-CompletionNotice hasthemeaninggiventothatterminclause4.11.

PracticalProjectCompletion hasthemeaninggiventothatterminSchedule8.

PracticalProjectCompletionCertificate hasthemeaninggiveninSchedule8.

PrimeMinister meansapersonwhoistheheadoftheelectedgovernmentinNewZealandatthe relevanttime.

ProjectContract meansanyagreemententeredintoortobeenteredintobyCRLL(including thosenovatedovertoCRLLpursuanttotheTransferAgreementandincludingallMaterial Contracts)inrelationtotheimplementationoftheCRLProject,otherthantheDeliveryPartner AgreementsandthisAgreement.

ProjectDeliverySchedule meanstheschedulesetoutatSchedule5asmaybeamendedfrom timetotimeinaccordancewiththisAgreement.

ProjectDeliveryDate meansthedateonwhichPracticalProjectCompletionoftheCRLProject Worksoccurs,asapprovedbytheSponsorsinaccordancewithSchedule8.

PublicFinanceAct meansthe PublicFinanceAct1989.

QuarterlyCashFlowForecast meansthequarterlycashflowforecastforthewholeCRL Projectsettingoutforeachquarter,theforecastactualexpenditurefortherelevantquarter togetherwithanappropriateallowanceforcontingency,inaformandwithsufficientdetails satisfactorytoSponsors,tobeprovidedtotheSponsorswitheachFundingRequest.

QuarterlyReport hasthemeaningatclause14.1(a).

RailwaysAct meansthe RailwaysAct2005

RelevantEvent means,asappropriate,anAdverseEvent,aMonitoringPointoraCRLLDefault.

RemedialActionPlan meanstheplanpreparedinaccordancewithclause19.1.

ReviewPoint hasthemeaninggiventothatterminSchedule4.

SecurityInterest means:

(a) amortgage,pledge,charge,lien,assignment,hypothecation,encumbrance,deferred purchase,titleretention,financelease,contractualrightofset-off,flawedasset arrangement,sale-and-repurchaseandsale-and-leasebackarrangement,orderorother arrangementofanykind,theeconomiceffectofwhichistosecureacreditor;and

(b) a“securityinterest”asdefinedinthePPSA.

SettlementAgreement meanstheagreementofthatnameenteredintobetweenAuckland Transport,AucklandCouncil,CrownandCRLLaddressingvariousmatterstoberesolved betweenthosepartiesinrelationtothetransferofassets,rightsandcontractsrelatingtotheCRL ProjectandissueofsharesbyCRLLtoCouncilandCrownasspecifiedtherein.

ShareholdingMinisters meanstheMinisterofTransportandMinisterofFinance,intheir capacityasshareholdersofCRLL.

Shares meanssharesinCRLL.

SponsorCommittedFunding meanstheCrownFundingAmountandtheAucklandCouncil FundingAmounttobemadeavailablebytheSponsorstoCRLLassetoutintheSponsors Agreement.

SponsorDocuments hasthemeaninggiventothattermintheSponsors’Agreement.

Sponsors’Representative hasthemeaninggiventoitinclause13.1(a).

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page46

Sponsors’Requirements meanstherequirementsoftheSponsorsinrespectoftheCRLProject assetoutinSchedule3.

Sponsors meanstheCrownandtheCouncil.

Sponsors’Agreement meanstheagreementofthatnamebetweentheCrownandAuckland CouncildatedonoraboutthedateofthisAgreement.

StandardSoftwareLicence meansalicenceofuncustomisedsoftwareavailableoff-the-shelfon arm’slengthterms.

SubscriptionShares meansthenumberof ClassBSharesinthecapitalofCRLLspecifiedina FundingRequest,havingtherightsattachingtosuchclassofsharesassetoutinCRLL’s constitution.

TargetDeliveryCost meanstheamountapprovedbytheSponsorsasthebudgetforthe management,deliveryandcompletionoftheCRLProject,whichasatthedateofthisAgreement is asmaybeadjustedfromtimetotimein accordancewiththisAgreement.

TargetFinalCompletionDate meanstheexpecteddateforFinalProjectCompletionoftheCRL Project,

TargetProjectDeliveryDate meanstheexpecteddateforPracticalProjectCompletionofthe CRLProject,

Tax meansanytax,levy,impost,stamporotherdutyandanyothercharge,deductionor withholdingofasimilarnature(includinganypenaltyorinterestpayableinconnectionwithany failuretopayoranydelayinpayinganyofthesame).

TotalAvailableFunding meanstheaggregateoftheCrownFundingAmountandAuckland CouncilFundingAmount,tobemadeavailablebytheSponsorstoCRLLpursuanttoandin accordancewiththisAgreementwhichattheExecutionDateis inclusiveofStage1 WorksCostsasdefinedintheSponsors’Agreement.

TransferAgreement meanstheagreemententeredintobetweenAucklandTransport,Auckland CouncilandCRLLinrelationtothetransferofassets,rightsandcontractsrelatingtotheCRL Project.

Variation means,asthecontextrequires,achangetoaProjectContract(includinganychangein nature,qualityorquantityofworktobeprovidedtherein)whichisinstructedordeemedtobea variationthereunderoranyextensionoftimeforperformanceunderthatProjectContractor proposedincreasetothecontractprice.

WorkingDay meansadaythatisnotaSaturday,SundayorpublicholidayinAuckland.

WorksPackages meanseachofthefollowingpackagesofworkformingpartoftheCRLProject Works:

(a) ContractC1(LowerQueenStreet);

(b) ContractC2(LowerAlbertStreet);

(d) ContractC3(StationsandTunnels);

(e) ContractC5(WesternLine);

(f) ContractC6(MtEdenStormwaterDiversion)

(g) ContractC7(TunnelTrackworkandRailwaySystems);

(h) ContractC8(WiderNetworkImprovements);

(i) ContractC9(BritomartEastconnection);and

(j) anyotherworkspackagethattheSponsorsagreeistobea‘WorksPackage’forthe purposesofthisAgreement.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page48

PartII–Interpretation

InthisAgreement,unlessthecontextotherwiserequires:

(a) headingsareforconvenienceonlyanddonotaffecttheinterpretationofthisAgreement;

(b) wordsimporting:

(i) thesingularincludethepluralandviceversa;and

(ii) anygenderincludestheothergender;

(d) whereawordorexpressionisdefinedinthecontracte.g.Sponsor,otherpartsofspeech andgrammaticalformsofthatwordorexpressionhaveacorrespondingmeaninge.g. Sponsors;

(e) areferenceto:

(i) apersonincludes:

(A) anaturalperson,partnership,bodycorporate,association,governmentalor localauthorityoragencyorotherentity;and

(B) itslegalpersonalrepresentatives,successorsandpermittedassigns;

(ii) abody,otherthanapartytothisAgreement(includinganinstitute,associationor authority),whetherstatutoryornot:

(A) whichceasestoexist;or

(B) whosepowersorfunctionsaretransferredtoanotherbody, isareferencetothebodywhichreplacesitorwhichsubstantiallysucceedstoits powersorfunctions

(iii) aparty,clause,annexure,appendix,exhibitorschedulearereferencestoparties, clauses,annexures,appendices,exhibitsorschedulesoforto(asthecasemaybe) thisAgreement;

(iv) adocumentorinstrumentincludesthedocumentorinstrumentasnovated,altered, varied,supplementedorreplacedfromtimetotime;

(v) astatute,ordinance,codeorotherlawincludesregulationsandotherstatutory instrumentsunderitandconsolidations,amendments,re-enactmentsor replacementsofanyofthem;

(vi) arightincludesabenefit,remedy,discretion,authorityorpower;

(vii) anobligationincludesawarrantyorrepresentationandareferencetoafailureto observeorperformanobligationincludesabreachofwarrantyorrepresentation;

(viii) provisionsortermsofthisAgreementoranotherdocument,agreement understandingorarrangementincludeareferencetobothexpressandimplied provisionsandterms;

(ix) timeistolocaltimeinNewZealand;

(x) “$”or“dollars”isareferencetothelawfulcurrencyofNewZealand;

(xi) writingincludesanymodeofrepresentingorreproducingwordsintangibleand permanentlyvisibleform,andincludesfacsimiletransmission;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page49

(xii) anything(including,withoutlimitation,anyamount)isareferencetothewholeor anypartofitandareferencetoagroupofthingsorpersonsisareferencetoany oneormoreofthem;and (xiii) amonthistoacalendarmonth;

(f) thetermincludingmeans“including,withoutlimitingthegeneralityoftheforegoing”;

(g) themeaningof“or”willbethatoftheinclusive,beingone,someorallofanumberof possibilities;and

(h) ifadayonorbywhichanobligationmustbeperformedoraneventmustoccurisnota WorkingDay,theobligationmustbeperformedortheeventmustoccuronorbythenext WorkingDay.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page50

Schedule2:ProjectScope

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page51

City Rail Link Scope

The City Rail Link (CRL) will include new twin 3.4km tunnels track and operational equipment running underground from Britomart Station via new stations at Aotea and Karangahape Road to a reconfigured Mt Eden Station doubling the capacity for inbound trains to the city centre and increasing the capacity of the entire metro rail system

The route and contract packaging is shown below:

The horizontal alignment of the route is governed by the use of tracks 1 and 5 within Britomart station to provide the through tracks exiting to the west of the existing Britomart station, under Lower Queen Street, avoiding the foundations of the existing Zurich building whilst passing under the Commercial Bay shopping centre redevelopment site. The alignment proceeds in a cut and cover construction method under Albert Street to a new station at Aotea, between Wyndham and Wellesley Streets. The below ground alignment from Mayoral Drive to Pitt Street is formed in bored tunnels to a new mined tunnel station at Karangahape. The bored tunnels continue to a location under the Newton ridge where the east and west facing track junctions are formed in mined cavern construction that link to cut and cover construction to join the east facing connection to the Western Line at Normanby Road and the west facing connection at Porters Avenue.

The vertical track alignment joins the existing tracks at Britomart station in the north to the existing tracks on the North Auckland Western Line at Mt Eden to the south, rising approximately 70m in 3.5 km distance. The vertical alignment in Albert Street rises from the west of Britomart to arrive at Victoria Street approximately 2m above the Orakei main sewer, 14m below Albert Street, to provide a level platform at Aotea station. The bored tunnels continue to climb to the south of Aotea at approximately 3.5% gradient to arrive at a level platform for Karangahape station. The alignment continues to climb at approximately 3.5% passing beneath the Central Motorway junction to a point approximately 42m below the Newton ridge where the mined east and west facing connection caverns are created to provide grade separation. The tunnels proceed to the south to the cut and cover connections to the Western Line to the east and west of Mt Eden station.

Operations

Track, stations and systems installations for the CRL infrastructure are designed to support operations for an ultimate capacity of 24 CAF 6 carriage trains per hour in each direction and the ultimate passenger throughput of 18,000 passengers in each direction. Space proofing within stations will provide capacity to operate safely in the event of train service disruption. No diesel traction to be used for operating passenger services and no freight services to be operating on the CRL underground infrastructure.

Property

The project has completed the acquisition of all surface properties for the permanent and temporary works associated with the CRL. This includes the acquisition of all temporary construction sites required to construct the CRL. The acquisition of all subterranean property rights where the CRL works pass under existing titles is currently underway.

Contract C1 - Britomart works

Tunneling under the Chief Post Office and Lower Queen Street. Construct temporary facilities at rear of Britomart Station before closing Britomart front entry (reopens 2023). Existing contract.

Contract - Downtown Shopping Centre

Tunneling under the redevelopment of Downtown Shopping Centre. Works being undertaken by Precinct Properties Ltd (PPL) on behalf of CRL at CRL’s cost as per agreement with PPL (this is separate from C1 and C2). Existing contract.

Contract C2 - Albert Street works

Construct tunnels with cut and cover trenching across Custom Street and up Albert Street to the south side of Wyndham Street. Reinstate Albert Street as a boulevard (reinstatement of the street as per the conditions of the Designation) with bus priority lanes and wider footpaths. Existing contract.

Contract C3 - Tunnels and Stations

The C3 contract includes the majority of the CRL tunnelling work and the Aotea, Karangahape Road and Mount Eden Stations. The tunnelling extends from between the cut and cover tunnels constructed by C2 (corner of Albert and Wyndham Streets) to the portals at Mount Eden. This will likely include sections of cut and cover tunnels, TBM bored tunnels, trenches, mined shafts, station platform tubes and cross passages.

The C3 Contract will include:

• Designing and constructing all tunnels between the cut and cover tunnels constructed by C2 and Mount Eden to include; cut and cover tunnels, TBM bored tunnels, mined station tunnels, shafts, cross passages and station equipment rooms.

• Designing and constructing underground stations at Aotea Square and Karangahape Road

• Designing and constructing the Mount Eden CRL station including which will provide passenger access to/from CRL trains. Designing and constructing the above platform level structures including station footbridge connecting the CRL platforms with the Mount Eden North Auckland Line Station (the current station). Designing and constructing a new station entrance.

• Station fit out including architectural finishes, Heating Ventilation and Air Conditioning, HV and LV Power distribution, Mechanical and Electrical control, Station Earthing and Bonding, Station Fire Systems, Escalators and Lifts.

• Designing and constructing retail spaces within station entrances.

• Design and installation of the Mount Eden Station footbridge and for all platform and station fit out with the scope boundary being the top of finished platform level.

Contract C5 - Western Line

The C5 contract includes for the reconstruction of the Western Line rail corridor between the State Highway 1 overbridges and Dominion Road. The works include constructing trenches and track lowering to enable grade separation of the Normanby Road level crossing and for the new CRL connections. The works must be undertaken in stages to enable the Western Line to continue operating albeit with a period of single track running and a series of blocks of line.

Contract C6 - Mt Eden Stormwater Diversion

Diversion of Mt Eden bulk stormwater pipe in advance of C3 and C5 works.

Contract C7 - Tunnel Trackwork and Railway Systems

The C7 contract includes all tunnel trackwork and rail systems between Britomart Station and the connection with the Western Line at Mount Eden. C7 will be responsible for the integration of these systems both with the existing operational infrastructure and the new infrastructure provided by other CRL contract packages.

The systems include track work, signalling, traction power and overhead line, control systems including for the tunnel and stations, fire engineering, tunnel ventilation, communication systems, tunnel services and trackside auxiliaries.

The Tunnel Trackwork and Railway Systems Contractor will be responsible for:

• Designing and implementing rail systems for the CRL project from Britomart Station to Mt Eden Station, including tunnel track work, signalling systems, Rigid Overhead Conductor Beam (OLE), Traction switchgear, Earthing and Bonding, all operational communications systems, fire engineering, certain operational control systems, tunnel ventilation systems, and spatial provision for future Platform Screen Doors (physically separating the platform and track).

• Designing and implementing trackside auxiliary systems such as cable containment, tunnel lighting, tunnel signage, tunnel fire main, un-pumped drainage, cross passage doors and emergency tunnel walkway.

• Undertaking a range of civil works required for the installation of these systems (for example, concrete works for the track form).

• Leading systems integration, end-to-end commissioning and interoperability with existing and future related rail systems.

Contract C8 - Wider Network Improvements

The additional infrastructure requirements to enable the CRL train plan and deliver the benefits of the CRL (above those assumed in the do minimum network) are:

• Henderson Station additional platform and turnback siding allowing terminating services at the additional platform.

• Otahuhu Station additional platform and turnback siding allowing terminating services at the additional platform.

• Newmarket crossover.

• Strand crossover.

Contract C9 - Britomart East

The C9 contract includes:

• Rearranging trackwork in the 'throat' area where the twin tunnels meet Britomart Station (between Britomart Place and Tangihua Street).

• Reducing the number of platforms from 5 to 4 and widen the 2 existing outside platforms (1 and 5).

• Provision of additional vertical access at the eastern end of the station from widened platforms with changes to the lower 2 levels of the station.

Work is to be completed after CRL has opened and Britomart is operating as a through- rather than terminating-station. Involves a very significant interface with the operational railway.

Development (works to be carried out within contracts C1 and C3 to enable future above station development)

Britomart (strengthening within C1)

The Britomart station design provides for additional structural strengthening to future proof for a 17,000 sqm commercial development opportunity to the rear of the CPO. This work is part of the C1 scope.

Aotea Station (strengthening within C3)

The Aotea station design provides for future proofing for a 17-24 storey commercial development opportunity above and beside the southern entrance. Future proofing is to be via increased column sizes within the station entrance building and supporting structure below ground to accommodate the additional load paths. Additionally, a crash deck has been included within the entrance building design to permit the commercial development to take place above an operational station. The installation of a permanent roof and crash deck can be avoided if the construction of the development is undertaken at the same time as the station building.

The design future proofs for below ground connections between the station concourse and adjacent commercial developments at Sky City and the NDG tower, provided agreement is reached with each party to fund all works required to support the connections.

Karangahape Road (strengthening within C3)

The design future proofs for a 7 to 8 storey residential development above the station entrance at Mercury Lane with the predicted load paths being carried by the Mercury Lane shaft structure (Site A). Additionally, a crash deck has been included within the entrance building design to permit the commercial development to take place above a fully operational station.

Mt Eden (strengthening etc within C3)

The design provides for future proofing for commercial development above and beside new track alignments in tunnels and above the CRL station platform construction. Future proofing includes the enhancement of below ground structures to tunnels, increased structure above and beside the CRL platform trench and a structural deck spanning the CRL platform sufficient to place a future development footprint without impacting upon the CRL operations. Reinstatement of roads optimise the development potential of the site.

Total development potential within construction yard includes capacity for up to 2,100 residents and 650 jobs once fully developed.

Urban Realm

The CRL designation conditions require the reinstatement of the urban realm in modern equivalent form to all areas affected by the works.

Council’s Auckland Development Office (ADO) and BDO have identified enhanced specifications for urban realm and universal access elements beyond the agreed CRL scope. These will be funded by separate AC budgets and the Auckland City Centre Advisory Board (ACCAB) have already endorsed spending $20 million from the City Centre Targeted Rate towards achieving a higher quality reinstatement of Albert St.

Public art is built into the reference design scope ($1.5m). Additional requests for artwork, including requests from AC public arts group, will be required to be self funding.

Exclusions from CRL Scope

The following are not included within the scope of the CRL:

• Additional trains.

• The Auckland network third traction sub-station.

• The provision of the Northern Regional Control Centre (NRCC).

• Rail network improvements beyond the items listed under Contract C8

• Seismic upgrading to 100% of code requirement of the CPO building at Britomart.

• General maintenance equipment for the project.

• Remedial and deferred maintenance.

• SkyCity and NDG development connections, on the basis that they will be wholly funded by the outside parties.

• Fitting out of commercial tenancies.

Schedule3:Sponsors’Requirements

1.Purposeofthisdocument

1.1 ThepurposeoftheseSponsors’Requirementsisto:

(a) establishanddescribetheSponsors’high-levelrequirementsandobjectivesfortheCRL ProjectasatthedateofthisAgreement;

(b) setouttheminimumrequirementsthattheCRLProjectmustachieveattheProject DeliveryDateandtheFinalDeliveryDate;and

1.2 Alldesign,constructionandcommissioningoftheCRLProject,whetherperformedbyCRLLor othersandwhetherbeforeoraftertheestablishmentofCRLL,shallbecarriedoutinamanner thataccordswiththeprinciplessetoutintheseSponsors’Requirements.

1.3 CRLLshalldemonstrateatagreedReviewPointsandothertimesduringtheCRLProjectas requiredundertheAgreementthattherequirementssetoutintheseSponsors’Requirementsare beingmetaspartoftheSponsorassuranceprocess.

2.DescriptionoftheCRLLProject

2.1 ThescopeoftheCRLProjectisdescribedandsetoutindetailatSchedule2.

2.2 Inbrief,theCRLLProjectis3.45kmtwintunnelundergroundraillinkfromtheBritomart TransportCentreconnectingtotheAucklandRailNetworkataredevelopedMountEdenStation withtwonewundergroundstationsatAoteaandKarangahapeRoad.

2.3 ItiscentraltoAucklandCouncil’sandCrown’scommitmenttoprovidingafirstclass,integrated publictransportnetworkinAuckland.ItwillprovideastepchangeintheAucklandrailsystem byremovingadeadendterminusatBritomartwheretrainshavetoenterandreverseoutonthe twotracksavailableandendingtheneedforWesternLinetrainshavingtoreverseatthesecond busieststation,Newmarket.Itwillalsosignificantlyincreaserailcapacityaroundthenetwork andintoAuckland’scitycentreandprovidetwonewstationsintheheartofAuckland’s commercialhub.

3.High-LevelObjectivesoftheCRLProject

3.1 WithoutlimitingtheoverarchingobjectivessetoutinRecitalCofthisAgreement,these Sponsors’RequirementsincludethefollowingobjectivesfortheCRLProject:

(a) thestatementofprojectobjectivesfortheCRLProjectassetoutinAppendix1;

(b) valueformoneywillbedeliveredatallstagesoftheCRLProject;

(c) planning,procurement,construction,commissioningandimplementationofserviceshall beconsistentwiththeGovernment’soverallapproachtotheprovisionofmajorcapital projectsandAucklandCouncil’splansforthedevelopmentofAuckland’sinfrastructure.

(d) theCRLProjectshallsupporttheGovernment’s/AucklandMayor'splansforpublic transportprovision,particularlyinrelationtowhereitinterfaceswithotherexistingand

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page52

futuretransportschemesandshallbeintegratedwiththeAucklandMayor’stransportand sustainabilitystrategies(assetoutintheAucklandLongTermPlan);

(e) procuredinaccordancewithinternationalbestpracticeforsimilarprojects;

(f) robustcostcontrolmechanismsshallbeinplacethroughoutthelifetimeoftheCRL Project,thatseektooptimiseoverallwholeoflifecosts,whilstalsowhereverpossible reducingdirectcapitalfundingrequirementsonSponsors;

(g) thedesignanddeliveryoftheCRLProjectmeetsthedesigncapacityassetoutinthese Sponsors’Requirements;

(h) healthandsafetyregimespreparedandimplementedinaccordancewithGoodIndustry PracticeduringallphasesoftheCRLProject;

(i) compliancewithapplicablelaw;

(j) performanceandreliabilityoftheCompletedCRLAssetsconsistentwithGoodIndustry Practice;

(k) designed,procuredandconstructedinamannerthatcontemplatesandfacilitateseventual expansionorrenewal;

(l) stationsdesignedtominimisethenetcostofpropertyacquisitionandoptimise commercialvaluetothebenefitoftheCRLProject,subjecttooperationalandsafety requirementsbeingmet;

(m) CRLProjectisprocured,designedandconstructedinamannerthatfacilitatesalinkage withAuckland’sothertransportmodesandfutureplans;

(n) qualityassurance,environmentalassurance,riskassuranceandsafetyregimesshallbe establishedandimplementedduringallphasesoftheCRLProjectanditssubsequent operation;and

(o) theconstructionofCRLProjectWorksshallaimtominimisedisruptiontoexisting services,adjacentlandownersandaffectedtransportusers.

4.RequiredOutputs

4.1PassengerServiceRequirementsandPerformance

(a) CRLshallbedesignedtoachieveapeaklinecapacityof24timetabledtrainsperhourper direction;

(b) CRLshallsupporttheoperationof6cartrainswithanormalmaximumcapacityof750 personsandanabnormalmaximumcapacityof930persons;

(d) CRLmaximumnormalruntimeBritomarttoGrafton(andviceversa)shallbe9minutes and50seconds.CRLmaximumruntimeBritomarttoKingsland(andviceversa)shallbe 11minutesand00seconds.

4.2DesignCasesandCRLInfrastructure

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page53

(a) TheOperatingPrinciplesforDesignDefinitionDocumentRevDdated6January2016 (OPDD)referstothreedesigncasesasfollows:

(i) DesignCase1forCRLopeningin2024with15tphpd;

(ii) Designcase2forthefirst10yearsofoperationwith18tphpd;and

(iii) Designcase3forultimatedesigncapacityat24tphpd.

(b) NotwithstandingtheOPDD:

(i) theCRLinfrastructuredesignanddeliveryshallbebasedaroundDesignCase3; and

(ii) theCRLrailsystems,rollingstockandstationfitoutshallbedesignedand deliveredaroundDesignCase3.

4.3Stations

(a) Twonewstationswillbeconstructed,deliveredandmadeoperationaltotherequiredCRL specificationandstandardsatAoteaandKarangahapeRoad.

(b) TwoexistingstationsatMtEdenStationandBritomartwillbesuitablymodified, deliveredandmadeoperationaltotherequiredCRLspecificationsandstandards.

(c) Britomartstationshallbedesignedfor26trainsperhourperdayadoptingtheuseofnon throughplatforms(theadditional2tphpdaretoaccommodateanadditionaltwo terminatingservicesperhourusingthecentralnon-throughplatforms).

(d) TheCRLstationsshallbedesignedtoachievethestatedlevelofcustomerserviceasper DesignCase3.TheinitialprovisionforstationequipmentshallcaterforDesignCase2, provideditiscosteffectivetostagetheinstallationofequipment.

(e) TheCRLstationsshallalsobedesignedtoaccommodatethefollowingrailtorail interchangedemands:

(i) atMtEdenstationforinterchangebetweentheWestLineandNewmarketservice;

(ii) atBritomartstationwithpotentialintercityandotherterminatingservices;and

(iii) atAoteaStationwiththepossiblefutureNorthShoreline.

(f) CRLstationswilldeliverpassengerjourneytimesbetweenthestreetandplatformsateach stationwhichareasshortasreasonablypracticable.

(g) Stepfreeaccessshallbeprovidedtoalllevelsofthestations.

4.4Signalling

CRLsignallingcapacitytosupportoperationalservicefrequencyshallbe30trainsperhourper direction.

4.5OtherRequirements

(a) OtherrequiredoutputsoftheCRLProjectaresetoutindetailintheOPDD,including withoutlimitation:

(i) theoperationalrequirements;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page54

(ii) systemintegrationintotheAucklandpassengerrailnetwork;

(iii) capacityrequirements;

(iv) safetyrequirements;

(v) customerneeds;

(vi) networkandstationcontrolrequirements;

(vii) stationrequirements;

(viii) trainoperations;

(ix) assetmanagement;and

(x) maintenancerequirements,

(b) Subjecttoparagraph(c)below,theOPDDshallbedeemedincorporatedintoandshall formpartoftheseSponsors’Requirements.Totheextentofanyinconsistencyor ambiguitybetweenthecontentsofthisSchedule3andtheOPDD,thecontentsofthis Schedule3shallhaveprecedencetotheextentnecessarytoresolvesuchinconsistencyor ambiguity.

(i) Clause2.4isdeleted;

(ii) OC19isdeleted;

(iii) OC20isdeleted;

(iv) Notwithstandingclause6.2,CRLLshallensurethatappropriatesafetycasesarein placefortheCRLProject;and

(v) Notwithstandingclause11.1.3,allbrandinginrelationtotheCRLProjectshallbe undertakeninaccordancewiththeCommunicationsStrategyapprovedbythe Sponsors.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page55

Appendix1–StatementofProjectObjectives

1.ImprovetransportaccessinandaroundthecityforarapidlygrowingAuckland

(a) Futureproofforexpectedgrowth.

2. ImprovetheefficiencyandresilienceofthetransportnetworkofurbanAuckland

(a)Improvejourneytime,frequencyandreliabilityofalltransportmodes

(b)Maximisethebenefitsofexistingandproposedinvestmentintransport

(c)ReleasetherailcapacityconstraintatBritomart

3.SignificantlycontributetoliftingandshapingAuckland’seconomicgrowth

(a)Supporteconomicdevelopmentopportunities

(b)Providethegreatestamountofbenefitforcost

(c)EnableamoreproductiveandefficientCityCentre

4.Provideasustainabletransportsolutionthatminimisesenvironmentalimpacts

(a)Limitvisual,airqualityandnoiseeffects

(b)Contributetothecountry’scarbonemissiontargets

5.Contributepositivelytoaliveable,vibrantandsafecity

(a)Enhancetheattractivenessofthecityasaplacetolive,workandvisit

(b)Protectourculturalandhistoricheritageforfuturegenerations

(c)Helpsafeguardthecityandcommunityagainstrisingtransportcost

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page56

Schedule5:ProjectDeliverySchedule

MinterEllisonRuddWatts|RefVXN-201012445

ProjectDeliveryAgreement|page68

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page69

Schedule7:QuarterlyReports

1.1Reporttiming

(a) CRLListoprovidetheSponsorswithareportattheendofeveryquarter.

(b) ThereportmustbeprovidedtotheSponsorswithin10WorkingDaysoftheendofevery quarter.

1.2Reportcontent

(a) CRLListodeterminetheformoftheQuarterlyReports.

(b) TheQuarterlyReportsmustincludethefollowinginformation,calculatedasatthelast dayofthequarter:

(i)theForecastProjectCosts;

(ii)theactualcostinformationfortherelevantquarter(bothworksrelatedcostsand CRLLcosts);and

(iii)theperformanceofworksagainsttheProjectDeliverySchedule,includingthe TargetProjectDeliveryDateandtheTargetFinalCompletionDateandany relevantinformationwhichrelatestoanydelays.

(c)Thequarterlyreportsmustbeaccompaniedbyaletterorreportfromadirectorofthe companyconfirming,inrespectoftheCRLProjectWorksforwhichSponsorCommitted Fundingwasprovidedfortherelevantquarter(RelevantWorks),asatthelastdayofthat quarter:

(i) thattheKeyMilestonesarebeingcompliedwith,or,whereaKeyMilestonewas notcompliedwith,anexplanationwhytherelevantKeyMilestone(s)wasnot compliedwith;

(ii) thecoststocompletetheRelevantWorksandthedetailsofanymaterialcost overruninrespectoftheRelevantWorksthatsubsists;

(iii) theestimatedpracticalcompletiondatefortheRelevantWorks;

(iv) that,inrespectofallprogressclaimsfromcontractorspaidduringthecalendar month,thecontractorwasentitledtobepaidtheamountclaimedinthatprogress claiminaccordancewiththerelevantcontract;and

(v) thatallpaymentsmadeduringthecalendarmonthinrespectoftheRelevant WorksusingtherelevantFundingAmountwereprovidedforintheProject Budgetoranexplanationofanymaterialdeparturefromthatbudget.

Schedule8:CompletionRequirements

1.Introduction

(a) Thisschedulesetsoutsanddescribeswhatconstitutes“completion”forthepurposesof theAgreement.

(b) CompletioninrespectoftheCRLLProjectWorksisexpectedtohappeninthefollowing twostages:

(i) Stage1–PracticalProjectCompletion- isatthestagewhenallthoseelements setoutinparagraph2belowhavebeencompletedtothesatisfactionofthe Sponsors;and

(ii) Stage2-FinalProjectCompletion– isatthestagewhenallthoseelementsset outinparagraph4belowhavebeencompletedtothesatisfactionoftheSponsors.

2.PracticalProjectCompletion

PracticalProjectCompletionoftheCRLProjectWorksisatthestagewhen,withoutlimitation:

(a) PracticalCompletion(asthattermisdefinedintheC7Contract)isachievedunderWork PackageC7;

(b) practicalcompletion(orequivalent)isachievedunderallotherProjectContracts,asthat termisdefinedintherelevantProjectContracts,otherthanwithrespecttoWorkPackage C9;

(c) allnecessarytestingandcommissioningactivitieshavebeenundertakenandCRLLhas obtainedallnecessaryConsents,certificatesandapprovalsrequiredfortheCityRailLink tofunctionasanoperatingrailwaycapableofcommercialoperationforimmediatepublic use,includingwrittenconfirmationfromtheOperatorandanyeventualownerofthe CompletedCRLProjectAssetsthattheCRLProjectWorksarereadyforuse;

(d) alldocumentation,certification,assurancesandinformationincludingthoserelatingtothe design,construction,integration,testing,commissioning,completion,occupation,useand maintenanceoftheCRLProjectWorks(otherthanthoserelatedspecificallytoWork PackageC9)havebeenobtainedbyCRLLandhandedovertotheOperatororthirdparty nomineeoftheSponsorstoensuretheCRLProjectWorksiscapableofcommercial operationforimmediatepublicuse;

(e) allthecurrentmanufacturerordesign/constructionwarrantiesinrespectoftheCRLL ProjectWorks(otherthanthoserelatingtoWorkPackageC9)areinaformreadytobe novatedorassignedtotherelevantOperator/eventualassetownerorthirdpartynominee oftheSponsors;and

(f) theassets,systems,inter-relatedmaintenanceactivitiesandoperatingprocessesforming theCRLProjectWorksarebothfullydefined,acceptedandabletobecommercially operatedbytheendOperatororathirdpartynomineeoftheSponsorsaspartofthe Aucklandpassengerrailnetwork;and

(g) thefunctionalrequirementssetoutintheSponsors’Requirementsaremetincluding withoutlimitation:

(i) enablingpassengertrainservicesofupto24trainsperhourperdirection timetabledthroughtheCRLtunnel;

(ii) enablingtrainserviceoperationstotheCRLtrainplancomprisingthetrain customertimetable,rollingstockallocationplanandtimetableperformance specification;and

(iii) enablingtheoperationofanormalpeaklineflowof18,000passengersperhour perdirectionthroughtheCRLtunnelandstations;

3.PracticalProjectCompletionCertification

(a) CRLLshallissueacertificatetotheSponsorsnolaterthan5WorkingDaysafterthedate onwhichitconsidersthatithasachievedPracticalProjectCompletioninrespectofthe CRLLProjectWorks(PracticalProjectCompletionCertificate)togetherwithall requiredsupportingevidence,includingwrittenconfirmationfromCRLLthatithas receivedeverythingitneedsforthepurposesofachievingPracticalProjectCompletion fromAucklandTransportandKiwiRailundertheirrespectiveDeliveryPartner Agreement(s).

(b) TheSponsorsshallreviewsuchevidencetoensurethatthePracticalProjectCompletion criteriasetoutinparagraph2abovehavebeensatisfied.Inthisreview,approvaland sign-offprocesstheSponsorsmayconsultwithandseekassurancefrom:

(i) theAssuranceManager;and

(ii) AucklandTransport,KiwiRailand/ortheOperator(ifany).

(c) TheSponsorsshalleitherapproveorrejectthePracticalProjectCompletionCertificate wheretheSponsors,actingreasonably,considerthattherequirementsinparagraph2have notbeensatisfied.

(d) IftheSponsorswithholdapprovalofthePracticalProjectCompletionCertificate,CRLL shallre-submitthePracticalProjectCompletionCertificateonceithasaddressedthe Sponsors'commentsorissuesandtheprovisionsofthisparagraph3shallapplytotheresubmittedcertificate,savethatinrespectofanysubsequentapplicationforapprovalofthe PracticalProjectCompletionCertificate,theSponsorsshallonlybeentitledtowithhold theirapprovaltotheextentthatCRLLhasnotaddressedthecommentsorissues previouslyraisedbytheSponsorsunderthisSchedule.

(e) ThedateofPracticalProjectCompletionshallbethedatethePracticalProject CompletionCertificate,orre-submittedcertificate(asapplicable),isapprovedbythe Sponsors.

4.FinalProjectCompletion

FinalProjectCompletionoftheCRLProjectWorksisatthestagewhen,withoutlimitation:

(a) PracticalProjectCompletion(assetoutinparagraph2above)isachieved;

(b) practicalcompletion(orequivalent)isachievedunderWorkPackageC9,asthattermis definedinthatcontract;

(c) anyotherworks,defectsorremedialworksthatmayhavebeenidentifiedaspartofthe PracticalProjectCompletionhavebeencompleted,remediedoraddressed;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page72

(d) alldocumentation,certification,assurancesandinformationincludingthoserelatingtothe design,construction,integration,testing,commissioning,completion,occupation,useand maintenanceoftheCRLProjectWorks(includingWorkPackageC9)havebeenobtained byCRLLandhandedovertotheOperatororthirdpartynomineeoftheSponsorsto ensuretheCRLProjectWorksiscapableofcommercialoperationforpublicuse;

(e) allthencurrentmanufacturerordesign/constructionwarrantiesinrespectoftheWork PackageC9areinaformreadytobenovatedorassignedtotherelevantOperator/third partynomineeoftheSponsors;and

(f) allotherobligationsofCRLLpursuanttothisAgreementhavebeenfullyandfinally discharged.

5.FinalProjectCompletionCertification

(a) CRLLshallissueacertificatetotheSponsorsnolaterthan5WorkingDaysafterthedate onwhichitconsidersthatithasachievedFinalProjectCompletioninrespectoftheCRLL ProjectWorks(FinalProjectCompletionCertificate)togetherwithallrequired supportingevidence,includingwrittenconfirmationfromCRLLthatithasreceived everythingitneedsforthepurposesofachievingFinalProjectCompletionfromAuckland TransportandKiwiRailundertheirrespectiveDeliveryPartnerAgreement(s).

(b) TheSponsorsshallreviewsuchevidencetoensurethattheFinalProjectCompletion criteriasetoutinparagraph4abovehavebeensatisfied.Inthisreviewandapproval processtheSponsorsmayconsultwithandseekassurancefrom:

(i) theAssuranceManager;and

(ii) AucklandTransport,KiwiRailand/ortheOperator(ifany).

(c) TheSponsorsshalleitherapproveorrejecttheFinalProjectCompletionCertificatewhere theSponsors(actingreasonably)considerthattherequirementsinparagraph4havenot beensatisfied.

(d) IftheSponsorswithholdapprovaloftheFinalProjectCompletionCertificate,CRLLshall re-submittheFinalProjectCompletionCertificateonceithasaddressedtheSponsors' commentsorissuesandtheprovisionsofthisparagraph5shallapplytothere-submitted certificate,savethatinrespectofanysubsequentapplicationforapprovaloftheFinal ProjectCompletionCertificate,theSponsorsshallonlybeentitledtowithholdtheir approvaltotheextentthatCRLLhasnotaddressedthecommentsorissuespreviously raisedbytheSponsorsunderthisSchedule.

(e) ThedateofFinalProjectCompletionshallbethedatetheFinalProjectCompletion Certificateorre-submittedcertificate(asapplicable)isapprovedbytheSponsors.

6.CRLLobligations

CRLLshallprovidetotheSponsors,assoonaspracticableafterreceiptbyCRLLacopyofeach practicalcompletioncertificateissuedunderaProjectContractfortherelevantCRLLProject Worksorseparableportion,togetherwithanyidentifieddefectsschedulefromtheProject ContactororengineertotheProjectContract(ifapplicable).

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page73

Schedule9:ChangeProcedure

1.ChangeNotice

1.1 IftheSponsorswishtoproposeaChange,theyshalljointlyserveanoticeonCRLL.Such noticeshallsetoutdetailsoftheproposedChangeinsufficientdetailtoenableCRLLto providetheInitialChangeAppraisalinaccordancewithparagraph2.

1.2 IfCRLLwishestoproposeaChange,itshallserveanoticeontheSponsors.Suchnotice shallsetoutdetailsoftheproposedChangeandshallincludetheInitialChangeAppraisal inaccordancewithparagraph2.

1.3 IntheeventthatCRLLproposesaChangepursuanttoparagraph1.2,theSponsorsshall evaluatesuchChangeingoodfaith,takingintoaccountallissuesandcircumstances relevantatthetime.

2.InitialChangeAppraisal

2.1 CRLLshalldelivertotheSponsorsawrittenreport(InitialChangeAppraisal)which shallsetout:

(a) inthecaseofaChangeproposedbyCRLLpursuanttoparagraph1.2,CRLL's reasonsforrequestingtheproposedChange;

(b) CRLL'sinitialassessmentofanyimpactoftheproposedChangeonanyofthe datesoractivitiesreferredtointheProjectDeliverySchedule;

(c) CRLL'sinitialassessmentofanyimpactoftheproposedChangeonthescopeof theCRLProject,includinganychangedoralteredworksrequiredtoimplement theproposedChangeandanyrelatedtemporaryworksorrailwaypossession requirementsnecessarytogiveeffecttotheproposedChange;

(d) CRLL'sinitialassessmentoftheimpactoftheproposedChangeontheoperation andmaintenanceregimeforthecompletedCRLProjectrailway;

(e) CRLL'sinitialassessmentoftheimpactoftheproposedChangeontheoperations ofthecompletedCRLProjectandwiderAucklandrailnetwork;

(f) CRLL'sinitialassessmentofanyadditionalorchangedrisksthatareintroducedas aconsequenceoftheproposedChange;

(g) CRLL'sestimateofthecost(orsaving)ofimplementingtheproposedChangeand impactonForecastProjectCosts,brokendowninreasonabledetailtoidentifythe variouselementsofthecost(orsaving)includingtheimpactonfutureoperating expenditure;

(h) CRLL'sreasonableestimateofthecostandtimerequiredtoprepareaChange AppraisalinrespectoftheproposedChangeinaccordancewithparagraph4 (includingdetailsofanysurveys,investigatoryordesignworks,orany preliminaryoradvanceworks,thatwouldhavetobecommencedinadvanceof

(i) whereaChangeisproposedbytheSponsorsis,whetherinthereasonableopinion ofCRLL,suchChangeistechnicallyfeasible.

2.2 TheInitialChangeAppraisalshall:

(a) intheeventthattheChangeisproposedbytheSponsorspursuanttoparagraph 1.1,bedeliveredbyCRLLtotheSponsorsassoonasreasonablypracticableand inanyeventwithin20WorkingDaysafterreceiptoftheChangeNotice;or

(b) intheeventthattheChangeisproposedbyCRLLpursuanttoparagraph1.2,be deliveredbyCRLLtotheSponsorssimultaneouslywiththeChangeNotice.

3.ProcedureFollowingsubmissionofanInitialChangeAppraisal

3.1 IftheInitialChangeAppraisalstatesthat,inthereasonableopinionofCRLL,aChange proposedbytheSponsorsiseithertechnicallyunfeasible,unsafeorcontrarytoany applicableLaw,thenCRLLshallbeentitledtoobjecttotheimplementationofthe proposedChange.IftheSponsorsdisagreewithCRLL'sopinion,thenalloftheParties shallseektoagreethematter(s)indisputeandtheSponsorsmayreferthematter(s)for resolutionundertheDisputeResolutionProceduresetoutinSchedule12.CRLLshallnot beobligedtotakeanyfurtheractioninrelationtotheChangependingtheresolutionof suchdispute.IfitisagreedordeterminedthatCRLL'sobjectionisvalid,theproposed Changeshallbewithdrawn.

3.2 Savetotheextentthatparagraph3.1applies,followingreceiptoftheInitialChange Appraisal,theSponsorsmay:

(a) issueaChangeConfirmationNoticeinstructingCRLLtoproceedwiththe implementationoftheChangeinaccordancewithparagraph7;or

(b) issueaChangeAppraisalInstructioninstructingCRLLtoprepareaChange AppraisalinrespectoftheproposedChangeandnotifyingCRLLoftheduedate fordeliveryoftheChangeAppraisal;or

3.3 AChangeAppraisalInstructionprovidedbytheSponsorsunderparagraph3.2(b)shall:

(a) includeanyadditionalinformationinrespectoftheproposedChangewhichthe SponsorsrequireCRLLtoconsiderwhenpreparingtheChangeAppraisal;and

(b) specifyanyreportingformat,breakdownofcostestimatesoranyothermatters specificallyrequiredtobeincludedintheChangeAppraisalInstruction.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page75 preparingorfinalisingaChangeAppraisalinrespectoftheproposedChange); and

4.ChangeAppraisal

4.1 FollowingtheissueofaChangeAppraisalInstruction,CRLLshalldeliverawrittenreport (ChangeAppraisal)totheSponsorsassoonasreasonablypracticable(andinanyevent bythedatespecifiedintheChangeAppraisalInstruction)afterreceiptoftheChange AppraisalInstruction.

4.2 TheChangeAppraisalshallsetout:

(a) CRLL'sdetailedassessmentofthemattersreferredtoinparagraph2.1andany otherimpactoftheproposedChangeontheperformanceofCRLL'sobligations underthisAgreement;

(b) whetherrelieffromcompliancewithobligationsisrequiredasaconsequenceof theproposedChange;

(d) anyneworamendedConsentswhicharerequiredinordertoimplementthe proposedChangeandanyassistancewhichCRLLanticipatesitwillrequirefrom eitheroftheSponsorsinordertoobtainsuchConsents;

(e) CRLL'sproposedChangestothefundingcommitments(timingandamount)and MonitoringPoints1,2and3totakeaccountoftheaggregatecosts(orsaving)of implementingtheproposedChange,includingbreakdownof

(i)anyincreaseordecreaseincapitalexpenditure;

(ii)thirdpartycosts;

(i) CRLL’sowninternalmanagementandoverheadcosts;

(ii) anycosts,feesandexpensesinrespectofexternaladvisersengagedin connectionwiththeproposedChange;

(iv)anyincreaseordecreaseinthecostsoftheOperatorsthatare reimbursablebyCRLL;and

(f) anyotherinformationasmaybereasonablyrequiredbytheSponsorstoproperly assesstheChangeAppraisal.

5.Procedurefollowingsubmissionofachangeappraisal

5.1 AssoonaspracticableaftertheSponsorsreceivetheChangeAppraisal,thePartiesshall discussandendeavourtoagree(actingreasonably)thematterssetoutintheChange Appraisal.Duringsuchdiscussions,theSponsorsmay:

(a) requestthatCRLL:

(i) provideanyfurtherbreakdownordetailsinrespectofanypriceortime estimateastheSponsorsmayreasonablyrequire;

(ii) procurethattheDeliveryContractorsshallminimiseanyincreasein CostsandmaximiseanyreductioninCosts;

(iii) demonstratehowanyexpendituretobeincurredoravoidedisbeing measuredinacosteffectivemanner,includingshowingthatwhensuch expenditureisincurred;and/or

(b) notifyCRLLthatitwishestoamendtheproposedChangeprovidingfulldetailsof anyproposedamendmentinwhichcaseCRLLshallsubmitanamendedChange Appraisalwithin30WorkingDaysofsuchnotificationorsuchlongerperiodasis reasonablyagreedbetweentheParties.

5.2 AllevidenceandinformationprovidedbyCRLLinresponsetoarequestunder paragraph5.1shallbeprovidedonanopenbookbasis.

5.3 OncethecontentsoftheChangeAppraisalhavebeenagreedinaccordancewith paragraph5.1,theSponsorsmay,actingintheirsolediscretion,within10WorkingDays (orsuchlongerperiodastheSponsorsmayagree)issueaChangeConfirmationNotice instructingCRLLtoproceedwiththeimplementationoftheChangeinaccordancewith paragraph7.

6.Changeappraisalcosts

6.1 TheSponsorsshalljointlyberesponsibleforpaymenttoCRLLofthecosts,feesand expensesreasonablyandproperlyincurredbyCRLLinpreparingandamendingaChange AppraisaltotheextentthatsuchChangeAppraisalrelatestoaChangethatwasrequested bytheSponsorspursuanttoparagraph1.1.

6.2 WhilstpreparingandamendingaChangeAppraisalwhichrelatestoaChangethatwas requestedbytheSponsorspursuanttoparagraph1.1,CRLLshallprovideareporttothe Sponsorsonamonthlybasisshowing:

(a) theCosts,feesandexpensesreasonablyandproperlyincurredpursuantto paragraph6.1uptothedateofthereport;and

(b) CRLL'sestimateoftheCosts,feesandexpenseswhichitanticipatesitwillincur intotal.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page77

7.ImplementationofSponsorChange

7.1

IftheSponsorswishCRLLtoproceedwiththeproposedChange,theSponsorsshall notifyCRLLofthesame(ChangeConfirmationNotice)andsuchnoticeshallinclude theSponsors’determinationoftheadditionalfundingand/oranyextensionoftimetobe providedtoCRLLfortheimplementationofsuchChange(inwhichcasetheSponsors shallincludedetailsoftheconsequentialamendmentstoeachoftheAucklandCouncil FundingAmountandtheCrownFundingAmountandotherrelevantpartsofthis Agreement).

7.2 FollowingissueofaChangeConfirmationNotice,thePartiesshallpromptlytakesuch action,ifany,asisnecessarytofacilitatetheChange(includingmakingamendmentsto thisAgreement)andCRLLshallexerciseitsrightsundertheProjectContractsand DeliveryPartnerAgreements(asthecasemaybe)toprocuretheimplementationofthe Change.

7.3 IftheSponsorsdonotwantCRLLtoproceedwiththeproposedChange,theyshall jointlynotifyCRLLofthesame(ChangeRejectionNotice).

Schedule10:Funding

1.ConditionsprecedenttopaymentofFunding

PaymentofanypartoftheSponsorCommittedFundingissubjecttothesatisfactionofthe followingconditionsprecedent(asdeterminedbytheSponsorsintheirabsolutediscretion):

(a) inthecaseofthefirstFundingRequest:(i)thisAgreementbecomingunconditional;the TransferAgreement,inaformsatisfactorytoandapprovedbytheSponsors,hasbeen dulyexecutedbyallpartiestothatdocumentandCompletion(asthattermisdefinedin theTransferAgreement)isachieved;and(iii)theSettlementAgreementhasbeenduly executedbyallpartiestothatdocument;

(b) theSponsorshavingreceivedaFundingRequestinaccordancewithparagraph2of Schedule10;

(c) theFundingAmountbeingtheamountoffundingrequiredbyCRLLforthenextquarter immediatelyfollowingreceiptoftherelevantFundingRequest,and:

(i) beingforanamountnotgreaterthantheforecastcostsattributabletotherelevant quartertowhichtheFundingRequestrelatesassetoutinthemostrecent QuarterlyCashFlowForecastandForecastProjectCostssubmittedbyCRLLin accordancewithandpursuanttoclause8oftheAgreement;and

(ii) whenaggregatedwithallotherSponsorCommittedFundingpaidunderthis Agreement,notexceedingtheTotalAvailableFunding;

(d) theFundingRequestmeetingalltherequirementsofparagraph2(c)-(f),including (withoutlimitation)theprovisionofinformationthatmeetstherequirementsof paragraph5ofSchedule11;and

(e) anyapprovalsneededfortheissueoftheSubscriptionShareshavingbeenobtained.

2.FundingRequest

(a) Onorbefore11:00amonthe20th dayofthemonth(ortheWorkingDaypriortothe20th if the20th isnotaWorkingDay)priortothecommencementofthenextfundingquarter, CRLLmustissuetotheSponsorsaFundingRequestfortheamountofSponsor CommittedFundingtobeprovidedforthenextquarter.

(b) AFundingRequestisirrevocableandiseffectiveonactualreceiptbytheSponsors.

(i) inorsubstantiallyintheformsetoutinSchedule11;

(ii) accompaniedbyalladditionaldocumentationwhichisparticularisedinSchedule 11;and

(iii) dulycompletedandsignedbyanAuthorisedRepresentativeofCRLL.

(d) OnlyoneFundingAmountmayberequestedfromtheSponsorsineachFundingRequest, andmustbeforequalamountsfromeachSponsor.

(e) CRLLmustnotgiveaFundingRequestwhichwouldbreachaprovisionofthis Agreement.

3.Waiver

Theconditionsprecedentinparagraph1areforthesolebenefitoftheSponsors,andmayonlybe waivedbywrittennoticefromtheSponsorstoCRLL.

4.PaymentofFundingAmountandissueofSubscriptionShares

(a) InrespectofanyFundingRequest,providedthatallconditionsprecedentunderparagraph 1havebeensatisfied(orwaived),thatFundingRequestshallbedeemedtobea “Compliant” FundingRequest.

(b) InrespectofaCompliantFundingRequest:

(i) theCrownshallpaytoCRLLtheamountspecifiedasthe‘CrownRequested Funding’intherelevantCompliantFundingRequest(the CrownRequested Funding);and

(ii) CouncilshallpaytoCRLLtheamountspecifiedasthe‘CouncilRequested Funding’intherelevantCompliantFundingRequest(the CouncilRequested Funding), inthemannerrequestedintherelevantCompliantFundingRequest.

(c) InrespectofanyFundingRequestwhereoneormoreoftheconditionsprecedentunder paragraph1havenotbeensatisfied(andsuchconditionprecedenthasnotbeenwaived), suchFundingRequestshallbedeemedtobea“Non-Compliant” FundingRequest. WhereaFundingRequestisdeemedtobeaNon-CompliantFundingRequest:

(i) theSponsorswillbeundernoobligationtoprovidetheCrownRequestedFunding ortheCouncilRequestedFunding(asapplicable)requestedinsuchNonCompliantFundingRequest;and

(ii) theSponsorswillgivenoticetoCRLL(Non-ComplianceNotice)thatthe applicableFundingRequestisNon-Compliant.IfthereasonforsuchNonComplianceiscapableofremedy,theNon-ComplianceNoticeshallalsospecify whatactions(ifany)arerequiredtoremedythatNon-CompliantFundingRequest bythedatethatisnotlessthan5WorkingDayspriortotheapplicableFunding Date(RemedyDate).

(d) IfaNon-CompliantFundingRequestisremediedtothesatisfactionoftheSponsors(in theirabsolutediscretion)bytheapplicableRemedyDate,theFundingRequestshallbe deemedtobeCompliantandtheprovisionsofparagraphs4(a)and4(b)shallapply.

(e) IfaNon-CompliantFundingRequesthasnotbeenremediedtothesatisfactionofthe Sponsors(intheirabsolutediscretion)bytheRemedyDate,orinthesoleopinionofthe Sponsorsisincapableofremedy,theSponsorsshallmeetanddiscussthematter.Inthe eventthat:

(i) boththeSponsorselecttopaytheFundingAmountrequestedunderaNonCompliantFundingRequest,thenCRLLshallperformitsobligationsunder paragraph4(f);or

(ii) theSponsorsdecidenottopaytheFundingAmountrequestedunderaNonCompliantFundingRequest,themattermaybereferredtothedisputeresolution processunderSchedule12.

(f) FollowingpaymentofanyCrownRequestedFundingorCouncilRequestedFundingin accordancewiththisSchedule,CRLLshallissuetheSubscription Sharestothe

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page80

Crown/Council(asapplicable)inaccordancewiththeprovisionsofCRLL’sconstitution andupdateCRLL’sshareregisterandtheCompaniesOfficeaccordingly.

(g) Subjecttoparagraph7below,anyCrownRequestedFundingorCouncilRequested Fundingmustbepaidinfulltogetherwithanyinterestaccruedunderparagraph5(b) beforeanySubscriptionSharesareissuedinrespectofthatCrownRequestedFundingor CouncilRequestedFunding(asapplicable).

5.Sponsorfailuretopay

(a) CRLLshall,assoonaspracticable,notifybothSponsorsinwritingifaSponsor (DefaultingSponsor)failstopayalloranypartoftheCrownRequested Funding/CouncilRequestedFunding(asapplicable)underaCompliantFundingRequest (orunderaNon-CompliantFundingRequestwheretheSponsorshaveelectedtopaythe FundingAmountinaccordancewithparagraph4(e)(i))inaccordancewiththisSchedule 10.TheamountunpaidbytheDefaultingSponsorshallbethe OutstandingAmount

(b) InterestshallaccrueontheOutstandingAmountattherateequaltotheReserveBankof NewZealandOfficialCashRateplus5%perannum,accruingdaily,duringtheperiod fromandincludingthedateonwhichthedefaultwasmadeuntilbutexcludingthedaythe OutstandingAmount(andallinterestonthatamount)hasbeenpaidinfull.

(c) Atanytimeafterreceivinganoticeunderparagraph5(a),theSponsorwhoisnotthe DefaultingSponsor(Non-DefaultingSponsor)may(butisnotobligedto)electtopaythe OutstandingAmount(plusanyinterestaccruedonthatamountunderparagraph5(b))(the NDSPaymentAmount)toCRLL.TheNon-DefaultingSponsorshallgivenoticetoboth CRLLandtheDefaultingSponsorofitselectiontopaytheNDSPaymentAmount.

(d) Within5WorkingDaysaftergivingnoticeunderparagraph5(c),theNon-Defaulting SponsorwillpaytheNDSPaymentAmounttoCRLLandonreceiptofsuchfundsCRLL willissuetotheNon-DefaultingSponsorthatnumberofSubscriptionShares correspondingtotheOutstandingAmountthattheDefaultingSponsorwouldhave receivedhaditpaidtheNDSPaymentAmount,withsuchshares(DefaultShares)tobe heldbytheNon-DefaultingSponsorinaccordancewiththisparagraph 5.

(e) TheDefaultingSponsoragreesandacknowledgesthat,onpaymentofanNDSPayment AmountbytheNon-DefaultingSponsorinaccordancewiththeaboveprovisions,the DefaultingSponsorisindebtedtotheNon-DefaultingSponsorforanamountequaltothe NDSPaymentAmount(a SponsorLoan).

(f) EachSponsorLoanshall:

(i) berepayableondemand(whichdemandmaybemadebytheNon-Defaulting Sponsoratanytimeinitsabsolutediscretion);and

(ii) accrueinterestattherateequaltotheReserveBankofNewZealandOfficialCash Rateplus5%perannum,accruingdaily,duringtheperiodfromandincludingthe datethattheNDSPaymentAmountwaspaidbytheNon-DefaultingSponsorto butexcludingthedateonwhichtheDefaultingSponsorrepaystheSponsorLoan togetherwithallaccruedinteresttotheNon-DefaultingSponsor.

(g) Fortheavoidanceofdoubt,theDefaultingSponsormayrepaytheSponsorLoan(plus interest)totheNon-DefaultingSponsoreitherbeforeorafteranoticeofdemandisgiven bytheNon-DefaultingSponsorinaccordancewiththisclause5.

(h) On:

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page81

(i) paymentinfulloftheOutstandingAmount(plusinterest)bytheDefaulting SponsortoCRLL(iftheNon-DefaultingSponsorhasnotbythenelectedtopay theOutstandingAmountonbehalfoftheDefaultingSponsorinaccordancewith paragraph5(c)),CRLLshallissueSubscriptionSharestotheDefaultingSponsor inaccordancewithparagraph4(f)(andfortheavoidanceofdoubtsuch SubscriptionSharesshallonlybeissuedinrelationtotheOutstandingAmount, andnotinrelationtoanyinterestpaidonthatamount);or

(ii) repaymentinfulloftheSponsorLoan(plusinterest)bytheDefaultingSponsorto theNon-DefaultingSponsor(iftheNon-DefaultingSponsordoeselecttopaythe OutstandingAmountonbehalfoftheDefaultingSponsorinaccordancewith paragraph5(c)),theNon-DefaultingSponsorshallexecuteanddelivertoCRLLa sharetransferformtransferringtheDefaultSharestotheDefaultingSponsor,and CRLLwillregisterthatsharetransferformuponreceiptandupdateitsshare registerregardingthesharetransfer.

(i) WhileaNon-DefaultingSponsorholdsDefaultShares,theproceedsofanydistributionon thoseDefaultShares(includinganyliquidation,solventdissolutionetc.)(Proceeds)will bepaidtotheNon-DefaultingSponsor.

6.Approvals

EachShareholdingMinisterandtheCouncil(beingallshareholdersandentitledpersonsofCRLL (asdefinedintheCompaniesAct)):

(a) agreeandconcurpursuanttosection107(2)oftheCompaniesActtotheissueofall SubscriptionSharesinaccordancewiththisAgreement;

(b) consenttobecomingaholderofallSubscriptionSharesissuedtothempursuanttoa FundingRequestorasaresultofparagraph5;

(c) approve,pursuantsection129oftheCompaniesAct,theissueofallSubscriptionShares andanyothertransactionsrelatingtotheSponsorCommittedFundingtotheextentthat thoseactionsorseriesofactionsconstituteamajortransactionofCRLL,andagreethat theirsignaturesonthisAgreementshallconstituteaspecialresolutiontothiseffect;and

(d) agreethattheywillprovideanyotherapprovalsorauthorisationsrequiredunderthe CompaniesActorCRLL’sconstitution(ifapplicable)within5WorkingDaysofthe Sponsors’receiptoftheFundingRequest.

7.Setoffforinterimfunding

ThePartiesacknowledgethatCouncilhasprovided,orwillprovide,interimfundingtoCRLL pursuanttoclause7.1(e)andtheSettlementAgreement(InterimFunding).Itisfurther acknowledgedandagreedthat,notwithstandinganyotherprovisionofthisAgreement,Council may(bywrittennoticetoCRLLandCrown)setoffanobligationofCounciltomakepaymentof aCouncilRequestedFundingagainstanobligationofCRLLtoCounciltorepayInterimFunding advancedbyCounciltoCRLL,andsuchsetoffshallnotaffecttheshareissuewhichwouldhave occurredshouldCouncilhavepaidtheCouncilRequestedFunding.

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page82

Schedule11:Fundingrequest

[CRLL’SLETTERHEAD]

[Date]

To:[InsertCrownandCounciladdress]

Attention:[●]

Email: [●]

FundingRequest–ProjectDeliveryAgreementdated [●] (the Agreement)

WegiveyouirrevocablenoticerequestingpartoftheSponsorCommittedFundingasfollows. ExpressionsdefinedintheAgreementapplyinthisFundingRequest(exceptifotherwisedefinedinthis FundingRequest).

1.FundingRequest

(a) WerequestpartoftheSponsorCommittedFundingintheamountof:

(A) $[●] from the Crown (the Crown Requested Funding);and (B) $[●] from Council (the Council Requested Funding), (together,the FundingAmount)tobepaidon[date],beingthefirstWorkingDayofthe relevantquarter(the FundingDate).

(b) TheFundingAmountwillbeusedfor[describepurpose]).

2.IssueofShares

(a) InconsiderationforthepaymentoftheCrownRequestedFundingreferredtoinparagraph 1,CRLLwillissueontheFundingDate,[●] Class B SharestotheShareholdingMinisters (with50%ofsuchsharestobeissuedtoeachShareholdingMinister)inaccordancewith Schedule1ofCRLL’sconstitution.

(b) InconsiderationforthepaymentoftheCouncilRequestedFundingreferredtoin paragraph 1, CRLL will issue on the Funding Date, [●] Class B Shares to Council in accordancewithSchedule1ofCRLL’sconstitution.

3.Payment

WerequestthattheCrowncredittheCrownRequestedFundingandtheCouncilcreditthe CouncilRequestedFundingto[ouraccountwith[nameofbankandbranch]numbered[account number]]by3:00p.m.ontheFundingDate.

4.Confirmations

WeconfirmthattheinformationsetoutintheattachmentstothisFundingRequestisaccurate.

5.Attachments

AttachedtothisFundingRequestis:

(a) aQuarterlyCashFlowForecastforthequartertowhichthisFundingRequestrelates;

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page83

(b) theremainingbudgetfortheCRLProjectatthebeginningoftheupcomingquarter updatedtoincludetheupdatedForecastProjectCosts;

(d) aletterfromadirectorofCRLL:

(A) confirmingthattheCRLProjectisbeingconstructedinamannerconsistentwith theAgreement,tothequalityrequiredbytheAgreement,theDeliveryPartner AgreementsandanyProjectContracts,withintimeandwithinbudget;

(B) identifyinganymaterialriskstotheCRLProjectand,ifanyareidentified, explaininghowCRLLisaddressingthoserisks(deleteifnotapplicable);and

AuthorisedRepresentativeofCRLL

Nameandtitle(print):

MinterEllisonRuddWatts|RefVXN-201012445ProjectDeliveryAgreement|page84

Schedule12:DisputesResolution

1.DisputesNotification

(a) ThePartiesshallusetheirrespectivebesteffortstoidentifyanymatterwhichmaybecome aDisputeasearlyaspracticableandtoincorporateappropriatedisputeavoidancesystems aspartoftheirrelationshipataworkinglevel.

(b) Notwithstandingparagraph1(a),anyPartymayreferanyDisputearisingoutofthis AgreementforresolutioninaccordancewiththisSchedule12bywrittennoticesettingout thenatureoftheDisputetotheotherParties.

2.Firstlevel:seniorrepresentatives

Assoonaspracticablebutinanyeventwithin5WorkingDaysofaDisputebeingreferredtothe DisputeResolutionProcedure,exceptasotherwiseexpresslyprovidedinthisAgreement,the Partiesshalleachnominateanappropriateseniorrepresentative(the FirstLevel Representatives),takingaccountofthenatureoftheDisputetomeetanddiscusssuchDisputein goodfaithtoresolvesuchDispute.TheFirstLevelRepresentativesshallmeetpromptly followingtheirnomination.

3.Secondlevel:CEO’sandotherSeniorOfficers

(a) IftheFirstLevelRepresentativesdonotresolvetheDisputewithin15WorkingDays(or suchlongerperiodasthePartiesmayagree)ofreceiptbythePartiesofanoticeof Dispute,theDisputeshallbereferredfordiscussionandresolutionbetweentheChief ExecutiveOfficersofCouncilandCRLLandtheMinistryofTransport(the SecondLevel Representatives).Inanyevent,eitherParties’FirstLevelRepresentative,uponreceiptof anoticeofDispute,takingthenatureandconsequencesoftheDisputeintoconsideration, mayrefertheDisputeimmediatelyfordiscussionandresolutionbetweentheSecond LevelRepresentatives.

(b) FollowingreferraloftheDisputetotheSecondLevelRepresentatives,theSecondLevel RepresentativesshallmeetanddiscusssuchDisputeingoodfaithtoresolvesuchDispute.

4.Thirdlevel:MinisterofTransportandMayor

(a) IftheDisputehasnotbeenresolvedthroughdiscussionoftheSecondLevel Representativeswithin20WorkingDays(orsuchlongerperiodastheSponsorsmay agree)ofsuchDisputebeingreferredtosuchrepresentativestheneitherSecondLevel RepresentativemayrefersuchDisputefordiscussionbetweentheMinisterofTransport theMayor(ortheirappointedrepresentatives)andthechairpersonoftheCRLLBoard.

(b) UntiltheDisputehasbeenresolvedbyagreementofthePartiesorpursuanttoan alternativedisputeresolutionprocessbywhichthePartieshaveagreedtobebound,the MinisterofTransportandtheMayor(ortheirappointedrepresentatives)thechairperson ofCRLLBoardshallusereasonableendeavourstoresolvetherelevantDisputeingood faithandshalldiscusstheDisputeonatimelybasisfollowinganyreasonablerequestby theothertodoso.

5.Consultation

AtanytimepriortotheresolutionofaDispute,therepresentativesofthePartiesparticipatingin theDisputeResolutionProceduremayagree(butshallnotbeobliged)toconsultwith,andseek anopinionorrecommendationswithrespecttotheresolutionoftheDisputefrom,anyperson (includingathirdpartyexpert);providedthat,notwithstandinganyotherprovisionofthis Agreement,thePartiesshallnotbeboundbyanydecision,opinionorrecommendationofany person(excludinganycourtofcompetentjurisdiction)withrespecttoaDisputeunlesstheParties expresslyagreetobesobound.Notwithstandingtheforegoing,eachofthePartiesmayconsult withorrequeststatementsorinformationfromanypersononitsownbehalfinconnectionwith anyDispute.

6.StatusofDisputependingresolution

UnlessthePartiesagreeotherwise,priortoanyDisputebeingresolvedbytheParties,theParties shallcontinuetocomplywiththeirrespectiveobligationsunderthisAgreementandshallnottake anyactioninfurtheranceofaproposedresolutionwhichhasnotbeenagreedbytheParties.

7.Remedies

WithoutprejudicetoanyotherrightsandremediesthatthePartiesmighthave,eachPartyagrees thatdamagesmaynotbeanadequateremedyforanybreachofthisAgreementandthatCRLL mightthereforebeentitledtoseeksuchotherremediesasmaybeappropriateasanalternativeto damages,butsolelytotheextentrequiredtoaddressanythreatenedoractualfailurebyaSponsor tomakeapaymentdueandpayableunderthisAgreement.

8.NoProceedings

Savetotheextentpermittedinparagraph7above,eachofthePartiesagreesandundertakesthatit shallnottakeanyformalproceedingsoractionofanykind(whetherthroughthecourtsor arbitration)againstanyotherPartytothisAgreementoritsAffiliatesinrespectofanyclaimit mighthaveinrelationtothisAgreement.