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of this paragraph (c), the area of the commercial forest as at the date of commencement of this Forestry Right is deemed to be 2469 hectares.

(d) If such levy or assessment is for a period extending either before or after the date of commencement or termination of this Forestry Right as the case may be then the Grantee will pay its fair proportion of such part of the levy or demand as may be applicable to the commercial forest within the Hunua Forest for the period falling within the term of this Forestry Right.

(e) The Grantor and the Grantee will consult as to any noxious animal or invasive plant control programs that either party proposes to implement in and/or around the Hunua Forest during the Term. Where:

(i) the Grantor requests the Grantee to join in any such program, the Grantee shall not unreasonably withhold its agreement to join in that program. Where the Grantee agrees to join such a program, the Grantee will pay a proportion of the cost of that program equal to the share that the part of the Hunua Forest land area subject to the program bears to the total land area subject to the program;

(ii) the Grantee requests the Grantor to join in any such program, the Grantor shall not unreasonably withhold its agreement to join in that program. Where the Grantor agrees to join in such a program, the Grantor will pay a proportion of the cost of that program equal to the share that the Reserves and immediately adjacent parkland (immediately bounding the Hunua Forest) bears to the combined area of the Hunua Forest and adjacent parkland subject to the program.

General Terms and Conditions

3.1 Grazing and Fencing

(a) Without the prior consent of a grazing committee (the "Grazing Committee") and of the Grantor, the Grantee shall not graze animals on any part of the Hunua Forest.

(b) For the purposes of clause 3.1 the Grazing Committee shall be convened from time to time upon the request of either the Grantor or the Grantee.

(c) The members of the Grazing Committee shall be appointed whenever the Grazing Committee is to be convened and they shall have the same expertise and shall be appointed in the same manner as that described in clause 4.14 (a).

(d) In considering a request from the Grantor or the Grantee that grazing of animals be permitted in the Hunua Forest, the Grazing Committee shall not approve grazing in any part of the Hunua Forest:

(i) if such grazing is prohibited under the ARC Management Plan then in force; and

(ii) so long as the loans under the Forestry Encouragement Agreements have not been repaid, unless the agreement of the Crown to grazing has first been obtained by the Grantor or the Grantee, where such agreement is required in terms of the Forestry Encouragement Agreements and the plans of operation thereunder.

(e) In considering whether to permit grazing in the Hunua Forest and subject to paragraph (d) above, the Grazing Committee shall determine the weighting to be given to all factors including:

(i) any proposals of the Grantor and the Grantee to avoid, mitigate, or remedy any adverse effects of grazing;

(ii) the economic impact which a prohibition of grazing might have on the forestry operation carried out under this Forestry Right;

(iii) the effect which a prohibition of grazing might have on fire risk in the Hunua Forest and surrounding areas.

(f) If the Grazing Committee has consented to grazing of animals in any part in the Hunua Forest, the Grantor shall not unreasonably withhold consent to such grazing but may impose such conditions as are necessary to comply with and achieve the objectives of the ARC Management Plan for the Hunua Regional Park.

(g) If grazing of animals in the Hunua Forest is consented to by the Grazing Committee and the Grantor, the Grantee will maintain adequate fencing to ensure that any animals grazed within the confines of the commercial forest within the Hunua Forest are kept out of the Reserves, the Excluded Land and the Grantor’s and third parties’ adjacent land and will indemnify the Grantor against any damage, cost or expense resulting from the Grantee being in breach of this clause.

(h) If the Grantor grazes animals in the parkland adjoining the Hunua Forest, the Grantor will maintain adequate fencing to ensure those animals are kept out of the commercial forest within the Hunua Forest and will indemnify the Grantee against any damage, cost or expense resulting from the Grantor being in breach of this clause.

3.2 Other Forestry Produce

The Grantee shall not bring onto the Hunua Forest for processing or storage any forest produce from outside the forest.

3.3 Treaty of Waitangi Claims

This Forestry Right shall be subject to any existing claims under the Treaty of Waitangi Act 1975 affecting any part of the Hunua Forest provided that the Grantor will not agree to any recommendations or determinations which the Grantee acting reasonably considers will have a material detrimental affect on the rights of the Grantee under this Forestry Right unless such recommendations or determinations are imposed by an authority having the power to bind the Grantor or are approved by the Grantee in writing.

3.4 Protective Covenant

The Grantee covenants:

(a) To at all times observe the requirements of the Historic Places Act 1993 in relation to any Archaeological Site, Historic Place, Historic Area or Wahi Tapu Area, as such terms are defined in that Act, and shall cause such requirements to be observed by any contractor, servant or agent of the Grantee;

(b) Not to destroy, damage or modify any Archaeological Site or Historic Place without first obtaining the approval of the Grantor which approval shall be deemed to have been given on the delivery by the Grantee to the Grantor of a letter from the New Zealand Historic Places Trust ("the Trust") consenting to such destruction or damage or modification taking place;

(c) Where any previously unknown Archaeological Site, Historic Area or Historic Place is discovered as a result of any operations or activity on site in the Hunua Forest to cease any further disturbance of