Use of Poles Carrier Access Agreement Dated PARTIES ESSENTIAL ENERGY ABN 37 428 185 226 [CARRIER] ABN [ ] Use of Poles Carrier Access Agreement Commercial-in-Confidence TABLE OF CONTENTS 1 2 3 4 5 6 7 DEFINITIONS AND INTERPRETATION ............................................................................ 4 1.1 Definitions ....................................................................................................... 4 1.2 Interpretation .................................................................................................. 7 ACCESS TO POWER POLES .......................................................................................... 7 2.1 General ........................................................................................................... 7 2.2 Access Application ............................................................................................ 7 2.3 Adjustment of Application Fee ............................................................................ 8 2.4 Make-Ready Work and Opportunity Augmentation ................................................. 8 2.5 Assessment of Application.................................................................................. 9 2.6 Nature of Access Licence ................................................................................... 9 2.7 Relocation ..................................................................................................... 10 2.8 Acknowledgement .......................................................................................... 10 ESSENTIAL ENERGY WORK ........................................................................................ 10 3.1 Right to Maintain and Operate Assets ................................................................ 10 3.2 Essential Energy Obligations............................................................................. 10 3.3 Power Pole Relocation ..................................................................................... 11 3.4 Exclusive Use ................................................................................................. 11 INSTALLATION......................................................................................................... 11 4.1 Timing .......................................................................................................... 11 4.2 Installation .................................................................................................... 12 4.3 De-energising and Re-energising ...................................................................... 12 MAINTENANCE AND OPERATIONS............................................................................... 12 5.1 Maintenance and operational work .................................................................... 12 5.2 Reporting Obligation ....................................................................................... 13 5.3 Carrier Failure ................................................................................................ 13 5.4 Emergency Procedures .................................................................................... 13 5.5 No Interference .............................................................................................. 15 5.6 Environmental requirements ............................................................................ 15 5.7 Remediation .................................................................................................. 15 COMPLIANCE ........................................................................................................... 15 6.1 Compliance with Applicable Laws ...................................................................... 15 6.2 Authorisations ................................................................................................ 16 6.3 Carrier Employees and Contractors ................................................................... 16 PAYMENT ................................................................................................................ 16 7.1 Annual Licence Fee ......................................................................................... 16 7.2 Adjustment of Annual Licence Fee ..................................................................... 17 7.3 Interest......................................................................................................... 17 7.4 Set-Offs, Counterclaims and Other Deductions.................................................... 17 8 GOODS AND SERVICES TAX ...................................................................................... 17 9 INDEMNITY AND LIABILITY........................................................................................ 18 9.1 Indemnity ..................................................................................................... 18 9.2 Limitation of Essential Energy’s Liability ............................................................. 19 9.3 Exclusion of warranties.................................................................................... 19 10 CONFIDENTIALITY.................................................................................................... 19 11 RISK AND INSURANCE .............................................................................................. 21 11.1 Risk .............................................................................................................. 21 Commercial-in-Confidence Page 2 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 12 13 14 11.2 Insurance ...................................................................................................... 21 11.3 Other Insurance ............................................................................................. 22 TERM AND TERMINATION .......................................................................................... 22 12.1 Term ............................................................................................................ 22 12.2 Default by Carrier ........................................................................................... 22 12.3 Additional Rights of Termination ....................................................................... 23 12.4 Termination for default by either Party............................................................... 23 12.5 Effect of Termination....................................................................................... 23 12.6 Access Licences .............................................................................................. 23 12.7 Carrier’s Obligations upon Expiry or Termination ................................................. 23 DISPUTE RESOLUTION .............................................................................................. 24 13.1 Notice of Dispute ............................................................................................ 24 13.2 Dispute Resolution .......................................................................................... 24 13.3 Performance during Dispute ............................................................................. 24 GENERAL ................................................................................................................ 25 14.1 Ownership of Equipment.................................................................................. 25 14.2 Transfer of ownership in Power Poles to Carrier................................................... 25 14.3 No Partnership ............................................................................................... 25 14.4 Consents and Approval .................................................................................... 25 14.5 Public Announcements..................................................................................... 25 14.6 Assignment.................................................................................................... 25 14.7 Further Assurance .......................................................................................... 25 14.8 Entire Understanding ...................................................................................... 25 14.9 Severability ................................................................................................... 26 14.10 Waiver .......................................................................................................... 26 14.11 Variation ....................................................................................................... 26 14.12 Costs and Outlays........................................................................................... 26 14.13 Notices.......................................................................................................... 26 14.14 Governing Law and Jurisdiction......................................................................... 27 14.15 Execution of Counterparts................................................................................ 28 SCHEDULE 1: ANNUAL LICENCE FEE ..................................................................................... 30 SCHEDULE 2: TRANSFER OF POLES DEED ............................................................................. 31 Commercial-in-Confidence Page 3 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence AGREEMENT made PARTIES ESSENTIAL ENERGY ABN 37 428 185 226 of PO Box 718, Queanbeyan NSW 2620 AND [ ] ABN [ ] of [Address] (“Carrier”) INTRODUCTION A The purpose of this Agreement is to allow the Carrier access to Essential Energy’s Power Poles to develop and maintain the Carrier’s telecommunications network. B The Carrier is the holder of a carrier licence under the Act and carries on the business of operating telecommunications networks and supplying telecommunications services. C Essential Energy carries on the business of the distribution and supply of electricity over the Distribution Network and has agreed; to the extent it may lawfully do so, to allow the Carrier use of Power Poles to attach Equipment to Power Poles in accordance with and subject to the terms of this Agreement. 1 DEFINITIONS AND INTERPRETATION 1.1 Definitions In this Agreement: 1 Act means the Telecommunications Act 1997; 2 Access Application means an access application as referred to in clause 2.2(4); 3 Access Licence means the non-exclusive right to attach Approved Equipment to a Essential Energy Power Pole granted by Essential Energy under clause 2; 4 Access Price Schedule means the access price schedule published on the Essential Energy website www.essentialenergy.com.au as amended from time to time; 5 Access Licence Commencement Date means the date the Access Licence has been signed by the Customer and the Utility or such other commencement date specified in the Access Licence; 6 Accredited Service Provider means a person who has been accredited under the Scheme for the Accreditation of Service Providers to Undertake Contestable Works recognised by the Minister for Energy, or any updated or replacement scheme as advised by Essential Energy from time to time; 7 Adjustment Date means 1 July in any year; 8 AER means Australian Energy Regulator; 9 Agreement means this document, including any schedule or annexure to it; 10 Annual Licence Fee means the amount calculated in accordance with Schedule 1 payable per annum (or part thereof) in consideration for the grant of each Access Licence, as may be varied in accordance with clause 7.2; 11 Application Fee means the non-refundable fee set out in the Access Price Schedule and payable under clause 2.2(1) as may be varied in accordance with clause 2.3; 12 Approved Equipment means the Cables and such other telecommunications equipment approved by Essential Energy in an access application made pursuant to clause 2; Commercial-in-Confidence Page 4 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 13 Authorisation includes: a permits, approval or licences required from any governmental, regulatory or public authority, agency or body; and b any consent or agreement of any owner, lessor, licensor, sublessor or mortgagee (including any agreement or determination or consent required under any Aboriginal, heritage or native title rules); 14 Business Day means a day that is not a Saturday, Sunday or any other day which is a public holiday or a bank holiday in the place where an act is to be performed or a payment is to be made; 15 Cable means a single or multicore, non-conductive, insulated or uninsulated and sheathed telecommunications cable including fibre optic cable; 16 Change of Control Event means, in relation to an entity, an event the occurrence of which has the effect that: a If a person controlled the entity prior to the time the event occurred, the person ceased to control the entity or another person obtained control of the entity; b If no person controlled the entity prior to the time the event occurred, a person obtained control of the entity; or c If the entity is owned or controlled by a group or consortium of persons, or if the group or consortium could control the entity were they to act collectively, there is any material change in the composition of the group or consortium. For the purposes of this definition, "control" and "controlled" have the meaning given in section 5OAA of the Corporations Act 2001 (Cth); 17 Code means a Code of Access to Telecommunications Transmission Towers, Sites of Towers and Underground Facilities made by the Australian Competition and Consumer Commission under clause 37 of Part 5 of Schedule 1 to the Act, and dated October 1999, as may be amended or replaced from time to time; 18 Contamination means a condition of land, air, soil or water, including groundwater, resulting from past or present Pollution and which shares any or all of the characteristics of Pollution; 19 CPI means the consumer price index, all groups (weighted average for eight capital cities) published by the Australian Bureau of Statistics; 20 Defect Rectification means rectification of pre-existing identified defects in the Distribution Network that would be rectified by Essential Energy in the normal course of its business; 21 Design Information Package means a design information package as issued from time to time by Essential Energy, containing design, access and attachment information and conditions, in respect of proposed attachments to Power Poles and any associated equipment or facilities specified by the Carrier in an application under clause 2.2(1). 22 Distribution Network means Essential Energy’s distribution network including all Power Poles, transmission towers, wires and other equipment forming part of or intended for use in the distribution of electricity on the network; 23 Emergency Work means: 24 a work to rectify or prevent imminent or continuing damage to or destruction of property; b work to rectify or prevent imminent danger to human life or physical injury; and c work to rectify or prevent an unscheduled outage which has or is likely to have a significant impact on the Distribution Network or the Carrier’s network; Engineering Practices means the operational and engineering procedures of Essential Energy as made available and notified by Essential Energy to the Carrier from time to time; Commercial-in-Confidence Page 5 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 25 Environment means the physical factors of the surroundings of humans and other life forms, including the land, soil, plants, habitat, waters, atmosphere, climate, sounds, odours, tastes, biodiversity and the social and aesthetic values of landscape; 26 Environmental Approval means any licence, permit, consent, approval, determination, certificate or permission from any governmental, regulatory or public authority, agency or body in relation to the Environment or under any Environmental Law which must be obtained or satisfied to perform any work involving or relating to the installation, operation, inspection, testing, maintenance, repair, replacement and removal of Equipment at a Power Pole, associated equipment or facility; 27 Environmental Law means any Law relating to the Environment including a Law relating to land use, planning, pollution of air, water soil or ground water, chemicals, waste, the use of transport, the storage and handling of dangerous goods, the health or safety of any person, or any other matters relating to but not limited to the protection of the Environment, health or property; 28 Environmental Notice mean any form of notice, direction, penalty, proceedings or action issued or commenced by any governmental, regulatory or public authority, agency or body relating to any Environmental Approval or Environmental Law; 29 Equipment means Cables and other telecommunications equipment; 30 Insolvency Event in respect of a Party means: a that Party becomes an ‘externally-administered body corporate’ as defined in the Corporations Act 2001 (Cth); b a ‘controller’ as defined in the Corporations Act 2001 (Cth) is appointed to any assets or the undertaking of that Party; c the Party is taken to have failed to comply with a statutory demand within the meaning of the Corporations Act; d that Party is unable to pay its debts as and when they fall due for payment; e that Party enters into a composition or arrangement with its creditors generally, or with a particular class of creditors, with respect to the payment of amounts due to those creditors; f a resolution is passed for the reduction of capital of the Party or notice of intention to propose such a resolution is given, without the other Party’s prior consent; or g that Party ceases to conduct operations for reasons other than a force majeure event. 31 Law means any law including rules of common law, principles of equity, statutes, legislative instruments, proclamations, ordinances, rules, regulations, orders in council, policies, plans, directives, by-laws, regulatory principles and requirements, mandatory codes of conduct, industry codes, writs, orders, injunctions, judgments, determinations and statutory licence conditions in force from time to time, whether Commonwealth, state, territorial or local; 32 Make-Ready Work means make ready work to allow Equipment the subject of an Access Application to be installed on the Power Poles, associated equipment and facilities to which that Access Application relates, including without limitation Defect Rectification, and replacement or augmentation of Power Poles due to factors including but not limited to additional loading of Equipment, ground clearances, circuit to circuit clearances, and vegetation clearances in respect of such Power Poles pursuant to the Access Application; 33 Opportunity Augmentation means augmentation of Distribution Network assets and infrastructure which Essential Energy chooses to undertake at or around the time of MakeReady Work being performed, which is additional to, and not required as part of, the MakeReady Work; 34 Parties means Essential Energy and the Carrier and Party means any one or both of the Parties, as the context requires; Commercial-in-Confidence Page 6 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 35 Power Pole means a pole or crossarm on the Distribution Network used or which is capable of being used by Essential Energy to support or suspend wires or cabling above ground level, but does not include a pole supporting conductors with an operating voltage greater than 66,000 volts unless otherwise agreed by Essential Energy in its discretion on a case by case basis; 1.2 Interpretation 1 Reference to: a one gender includes the others; b the singular includes the plural and the plural includes the singular; c a person includes a body corporate; d a party includes the party’s executors, administrators, successors and permitted assigns; e a statute, regulation or provision of statute or regulation (“Statutory Provision”) includes: f i that Statutory Provision as amended or re-enacted from time to time; ii a statute, regulation or provision enacted in replacement of that Statutory Provision; and iii another regulation or other statutory instrument made or issued under that Statutory Provision; money is to Australian dollars, unless otherwise stated. 2 “Including” and similar expressions are not words of limitation. 3 Where a word or expression is given a particular meaning, other parts of speech and grammatical forms of that word or expression have a corresponding meaning. 4 Headings and any table of contents or index are for convenience only and do not form part of this Agreement or affect its interpretation. 5 A provision of this Agreement must not be construed to the disadvantage of a party merely because that party was responsible for the preparation of the Agreement or the inclusion of the provision in the Agreement. 6 If an act must be done on a specified day which is not a Business Day, it must be done instead on the next Business Day. 2 ACCESS TO POWER POLES 2.1 General 1 Essential Energy agrees to grant the Carrier access to its Power Poles to install and maintain Equipment on the terms and conditions of this Agreement. 2.2 Access Application 1 If the Carrier wishes to install Equipment on a Power Pole, the Carrier must submit to Essential Energy: a payment of the Application Fee; and b an initial application to Essential Energy, which must include the following information: i Commercial-in-Confidence the identity and number of Power Poles and any associated Essential Energy equipment or facilities to which the Carrier requests access; and Page 7 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence ii a map showing the location of the Power Poles and any associated Essential Energy equipment or facilities to which the Carrier requests access. 2 The initial application referred to in clause 2.2(1)(b) must be in such form as may be advised by Essential Energy from time to time. 3 Essential Energy will specify which of the Power Poles, associated equipment and facilities the subject of an application submitted pursuant to clause 2.2(1) are suitable and available for access by the Carrier, and provide the Carrier with a Design Information Package in respect of those Power Poles, associated equipment and facilities. Without limitation, any Power Poles which have attached to them equipment or facilities of 3 or more third parties will not be suitable or available for access unless otherwise determined by Essential Energy. 4 If the Carrier wishes to proceed with access to any of the proposed Power Poles and any associated equipment or facilities listed as suitable for access, the Carrier must submit the following information in respect of each Power Pole, associated equipment or facilities, in accordance with the requirements of the Design Information Package: a a description of the Equipment and the proposed point of attachment to the Power Pole and any associated facilities or equipment, having regard to the Engineering Practices in effect as at the date of the application; b a network asset design in respect of the Equipment and its proposed attachment, prepared by a Level 3 Accredited Service Provider. Such design shall identify and include all Make-Ready Work required in respect of the proposed attachment of the Equipment in compliance with the Engineering Practices; and c any other relevant information required by the Design Information package or requested by Essential Energy. (an Access Application). 2.3 Adjustment of Application Fee Essential Energy may adjust the amount of the Application Fee by publishing a notice on its website at least 20 Business Days before any new Application Fee comes into effect upon the making of an application pursuant to clause 2.2(1). 2.4 Make-Ready Work and Opportunity Augmentation 1 Prior to an Access Licence being granted by Essential Energy under clause 2.5, if requested by Essential Energy, the Carrier must attend all meetings and site visits, and provide all information and assistance, to enable Essential Energy to assess and determine the scope and nature of any Make-Ready Work required in respect of an Access Application. Essential Energy may determine in its discretion the scope and nature of Make-Ready Work to be done in respect of an Access Application and pursuant to an Access Licence. 2 The parties agree that: a all Make-Ready Work the subject of an Access Licence will be undertaken by the Carrier unless Essential Energy advises the Carrier that the work will be undertaken by Essential Energy or on its behalf; b the cost of all Make-Ready Work other than Defect Rectification will be borne by the Carrier, irrespective of whether the Carrier, Essential Energy or a third party performs the Make-Ready Work. The Carrier must pay for such work within 20 Business Days of receipt of an invoice from Essential Energy for such costs: c Essential Energy may determine in its discretion to undertake Opportunity Augmentation in addition to any Make-Ready Work; d the cost of Defect Rectification and Opportunity Augmentation (if any) will be borne by Essential Energy; and Commercial-in-Confidence Page 8 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence e 3 notwithstanding any other provision of this Agreement or an Access Licence, the Carrier must not install Approved Equipment pursuant to an Access Licence until any Make-Ready Work and Opportunity Augmentation which relates to that Access Licence is completed to Essential Energy’s reasonable satisfaction. The parties agree that the following conditions apply to the performance of Make-Ready Work under this Agreement: a all Distribution Network assets and infrastructure (including assets and infrastructure created or maintained as part of Make-Ready Work or Opportunity Augmentation) are owned by, and remain the property of, Essential Energy and at no time will any property rights in them vest in or be transferred to the Carrier as a result of the Make-Ready Work being performed, or being paid for, by the Carrier; b in the event that Distribution Network assets or infrastructure disposals require an accounting treatment by way of adjustment to the assets or liabilities of Essential Energy, the Carrier will reimburse Essential Energy the amount of any loss resulting from such disposal, and, notwithstanding any other provision in this Agreement, the parties will take all such further action as is necessary to ensure the above conditions are met. 4 In the event that Make-Ready Work is to be carried out by the Carrier or on its behalf, the Carrier must ensure that all such Make-Ready Work is undertaken: a in accordance with any specifications and requirements in the Access Licence and/or as otherwise agreed with Essential Energy; b within the timeframe agreed with Essential Energy; and c in accordance with all of the applicable requirements of this Agreement, as if it were installation and/or maintenance work by the Carrier under clauses 4.2 and 5.1. 2.5 Assessment of Application 1 If the Access Application is approved by Essential Energy in its sole discretion, Essential Energy will sign and return a copy of the Access Application, and any additional conditions to which the approval is subject, to the Carrier. 2 The signed Access Application under clause 2.4(1) will evidence the Access Licence on the terms of the approved Access Application, the Design Information Package, any additional conditions under clause 2.5(1), and this Agreement. If any terms or conditions are submitted by the Carrier as part of or with the Access Application or initial application under clause 2.2(1), such terms and conditions shall not form part of the Access Licence and shall have no effect. The Access Licence commences from the date that it is signed by Essential Energy. 3 If Essential Energy rejects any Access Application, it will provide reasons for rejection. 2.6 Nature of Access Licence The rights conferred by Essential Energy under an Access Licence rest in contract only and nothing in an Access Licence creates any tenancy between Essential Energy and the Carrier nor does it confer upon the Carrier any right or interest in the Power Poles by way of occupation rights (other than the licence) easements, rights of way or otherwise. Commercial-in-Confidence Page 9 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 2.7 Relocation If the Carrier wishes to move Essential Energy Power Poles or assets, equipment or facilities of third parties currently installed on Power Poles, the Carrier must: 1 give Essential Energy notice of doing so; 2 if applicable, give such third party notice of doing so; 3 proceed only if and when written consent has been given by Essential Energy in its discretion and subject to the conditions of (if any) such consent; 4 ensure that the work is carried out at the Carrier’s cost by Accredited Service Providers, in accordance with the Engineering Practices, and Essential Energy’s procedures for outage notifications and switching requests, as required and as advised by Essential Energy from time to time; 5 ensure that: a there is no damage to the Distribution Network, any such third party assets, equipment or facilities, or any premises owned or occupied by Essential Energy; b it minimises any disruption to or interference with the Distribution Network, and any such third party assets or facilities during such relocation, and c (where applicable) it promptly makes good the Distribution Network, premises owned or occupied by Essential Energy, and land, to a condition equivalent to its condition before the relocation commenced; and 6 pay Essential Energy or its customer or other third party any costs incurred by them directly or indirectly as a result of such relocation. 2.8 Acknowledgement The Carrier acknowledges that to the extent that any Power Pole is situated on land that is not owned by Essential Energy, Essential Energy is unable to authorise, licence or grant rights in favour of the Carrier to enter upon or occupy the land for telecommunications purposes. For each Access Licence, the Carrier must obtain all Authorisations necessary to enter onto and occupy the relevant land and for planning purposes. If the Carrier has not obtained such Authorisations before the Access Licence is approved and signed by Essential Energy under clause 2.4, the Access Licence is granted on the condition that, and the Carrier warrants that, all such Authorisations are obtained prior to the Carrier entering onto the relevant land or commencing work. 3 ESSENTIAL ENERGY WORK 3.1 Right to Maintain and Operate Assets Nothing in this Agreement derogates from Essential Energy’s right to maintain and operate assets for the distribution of electricity. 3.2 Essential Energy Obligations Essential Energy agrees that when: 1 planning and constructing new Power Poles on the Distribution Network where Approved Equipment exists; 2 installing or authorising cabling and other equipment for or by any third party on a Power Pole to which Approved Equipment is attached (third party attachment work); or 3 undertaking or authorising replacement, treatment, maintenance or relocation of any Power Pole to which the Approved Equipment is attached. Commercial-in-Confidence Page 10 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence it shall to the extent reasonable: 4 ensure that the Approved Equipment is maintained and accommodated; 5 ensure that if any Power Pole is replaced, suitable allowance is made available to the Carrier to attach the Approved Equipment; 6 except where it is not feasible to do so because of an emergency in relation to Essential Energy’s supply of electricity services, give notice to the Carrier of the work referred to in clauses 3.2(1) to 3.2(3) and give the Carrier the opportunity to install the Approved Equipment at the same time as the third party attachment work (if any); and 7 use its reasonable endeavours to minimise interference with the Approved Equipment. 3.3 Power Pole Relocation Subject to this clause 3.3, Essential Energy may replace, treat, maintain, relocate, transfer ownership or remove any Power Pole or associated equipment or facilities on which the Approved Equipment exists at its sole discretion, without liability to the Carrier or any obligation to provide the Carrier with a replacement Power Pole, associated equipment or facilities. Where Essential Energy removes, transfer or relocates a Power Pole, associated equipment or facilities pursuant to this clause 3.3: 1 Essential Energy shall give the Carrier 20 Business Days notice of its intention to remove, transfer or relocate that Power Pole, associated equipment or facilities; 2 the Access Licence in respect of the removed or relocated Power Pole, associated equipment or facilities is deemed revoked, and Essential Energy must refund the Carrier that part of any prepaid Annual Licence Fee relating to the period after the date of removal, transfer or relocation. 3.4 Exclusive Use Notwithstanding any other provision of this Agreement, Essential Energy may in its discretion require the removal of Approved Equipment for exclusive use of a Power Pole, associated equipment or facilities. Where Essential Energy requires exclusive use of a Power Pole, associated equipment or facilities pursuant to this clause 3.4: 1 Essential Energy will give the Carrier 20 Business Days notice in writing of its requirement for exclusive use of the Power Pole, associated equipment or facilities; 2 the Access Licence in respect of that Power Pole, associated equipment or facilities will be deemed to be terminated upon expiry of the notice period referred to in clause 3.4(1); and 3 Essential Energy will refund the Carrier that part of any prepaid Annual Licence Fee relating to the period after the date of removal of the Approved Equipment. 4 INSTALLATION 4.1 Timing After approval is granted by Essential Energy under clause 2.5, the Carrier shall install the Approved Equipment within 60 Business Days of the Access Licence Commencement Date or such other time as is agreed between the Parties (subject to clause 2.4(2)(d)), otherwise the right to install is withdrawn and the Carrier must re-apply for approval before attaching the Approved Equipment, it being acknowledged that another party may have applied to use the relevant Power Poles and therefore the specified position previously granted to the Carrier may no longer be available or has otherwise become unsuitable. Commercial-in-Confidence Page 11 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 4.2 Installation 1 The Carrier must use Accredited Service Providers for any installation work on Power Poles, associated equipment or facilities which is not carried out by Essential Energy and such work must comply with the Engineering Practices, and be undertaken in a professional manner exercising due skill and care. 2 Essential Energy may, at the Carrier’s expense, oversee all work carried out by Accredited Service Providers on any Power Poles to ensure compliance with the Engineering Practices. 3 At Essential Energy’s request the Carrier must attend, and ensure that its Accredited Service Providers and project manager/supervisor attend, weekly meetings with Essential Energy in relation to any such installation work. 4 The Carrier must install all Approved Equipment in such a manner to ensure that: a the Distribution Network and any premises owned or occupied by Essential Energy are not damaged, interfered with or their operation disrupted or inhibited; b as far as reasonably possible, third parties may also install Equipment on Power Poles, associated equipment or facilities; and c any existing third party equipment or facilities are not damaged or interfered with or their operation disrupted or inhibited. 4.3 De-energising and Re-energising 1 The Carrier acknowledges that powerlines will not be de-energised for the installation of the Approved Equipment unless by agreement between the Parties in which instance the Carrier shall be liable for any costs incurred in de-energising and re-energising the powerlines. 2 The Carrier must give Essential Energy 15 Business Days written notice of any proposal for, or action to be taken in relation to, the de-energising or re-energising of a powerline. 5 MAINTENANCE AND OPERATIONS 5.1 Maintenance and operational work 1 The Carrier must at its own expense maintain and keep the Approved Equipment in good, proper and safe condition and repair. All: a maintenance and repair work; b relocation or removal work permitted under this Agreement or an Access Licence; and c any other work undertaken on or in connection with the Approved Equipment, Power Poles, associated equipment or facilities, third party equipment or facilities, or the Distribution Network, by or on behalf of the Carrier, shall be carried out by Accredited Service Providers in accordance with the Engineering Practices, in a professional manner exercising due skill and care, and shall be to the satisfaction of Essential Energy. 2 The Carrier must ensure that any and all work referred to in clause 5.1(1) does not: a damage, interfere with, disrupt or inhibit the operation of the Distribution Network or any premises owned or occupied by Essential Energy; b as far as reasonably possible, prevent or inhibit third parties from also installing Equipment on Power Poles, associated equipment or facilities; or c damage, interfere with, disrupt or inhibit the operation of any existing third party equipment or facilities. Commercial-in-Confidence Page 12 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 3 The Carrier must have and maintain an up to date record of all Accredited Service Providers who maintain or otherwise attend to Approved Equipment on Power Poles, associated equipment or facilities and evidence of the accreditations of each of them. Upon request, the Carrier must provide Essential Energy with a copy of such records and evidence. 4 Upon request, the Carrier must provide Essential Energy with a schedule of proposed maintenance. Essential Energy may require the Carrier to amend its proposed maintenance schedule at its discretion. In the event of any conflict between the maintenance schedules of the Parties, Essential Energy’s maintenance schedule and activities conducted thereunder shall take precedence to the extent of the conflict. 5.2 Reporting Obligation 1 The Carrier must: a within 10 Business Days of the conclusion of has undertaken maintenance or repair of Essential Energy with a report specifying associated equipment or facilities where undertaken; and each month during which the Carrier any Approved Equipment, provide the location of each Power Pole, such maintenance or repair was b provide such other reports regarding Approved Equipment, installation, repair, maintenance, relocation and removal work as may be requested by Essential Energy from time to time. 2 The Carrier must keep records of the location, equipment and maintenance of Approved Equipment on each Power Pole, associated equipment and facilities, and upon the issuing of a Notice by Essential Energy requiring the Carrier to do so, produce records to Essential Energy within 10 Business Days of the date of receipt of the Notice. 5.3 Carrier Failure 1 If Essential Energy considers that the Carrier has failed to maintenance or repair of any of its Equipment to an extent become a hazard to life or property, or has or may affect Network, Essential Energy may by written notice direct the within 10 Business Days. 2 Where the Carrier fails to comply with a direction to remedy in accordance with clause 5.3(1), Essential Energy may at the Carrier’s cost, take appropriate action including adjustment, removal or disconnection of the relevant Equipment. 5.4 Emergency Procedures 1 Subject to this clause 5.4, where Essential Energy considers it is necessary to undertake Emergency Work in relation to the Distribution Network, it may do so at any time without liability to the Carrier . If the Approved Equipment has to be turned off or powered down or Essential Energy requires assistance in relation to the Approved Equipment, Essential Energy will notify the Carrier and the Carrier must dispatch personnel on an emergency basis to the Power Pole, associated equipment or facilities in accordance with the same procedures and time frames as the Carrier would adopt in an emergency relating to its own Equipment at that Power Pole, associated equipment or facilities. The Carrier must provide Essential Energy upon request with details of its emergency procedures as may be amended from time to time. 2 If the Carrier becomes aware of a fault, defect or problem with the Approved Equipment the Distribution Network or a Power Pole, associated equipment or facilities which causes, there is a reasonable risk that it might cause either damage to the Distribution Network physical harm to any person or material technical interference with any equipment services at the Power Pole, associated equipment or facilities: a provide for proper operation or that the Equipment has or may the security of the Distribution Carrier to remedy the situation or or or or the Carrier must notify Essential Energy as soon as practicable; and Commercial-in-Confidence Page 13 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence b 3 4 Essential Energy may (at the Carrier’s expense) take interim measures reasonably necessary in relation to the Approved Equipment to prevent such injury or damage or interference (including where necessary adjusting or switching off the Equipment), pending the attendance of the Carrier’s personnel to perform the required corrective work and any amount expended by Essential Energy shall be invoices to the Carrier and must be paid within 20 Business Days of the day of invoice. If Essential Energy becomes aware of a fault, defect or problem with the Approved Equipment or the Distribution Network or a Power Pole, associated equipment or facilities which causes, or there is a reasonable risk that it might cause, either damage to the Approved Equipment or physical harm to any person maintaining the Equipment or material technical interference with the Equipment at the Power Pole, associated equipment or facilities: a then Essential Energy will notify the Carrier as soon as practicable; and b Essential Energy may (at the Carrier's expense) take interim measures reasonably necessary in relation to the Equipment to prevent such injury or damage or interference (including where necessary adjusting or switching off the Equipment), pending the attendance of the Carrier's personnel or contractors to perform the required corrective work and any amount expended by Essential Energy will be invoiced to the Carrier and must be paid within 20 Business Days of the date of invoice. The 24 hour operational contact details of each party (Operational Contacts), for the purpose of receiving notification of any Emergency, faults, defects or other network, installation or maintenance problems of which either party becomes aware are: Carrier Attention: Phone: Mobile: Facsimile: Email: Essential Energy Network Control Room: Supply Interruptions Group (SIG) Phone: 13 20 80 (02) 6588 4918 Facsimile: (02) 6589 8146 Email: [email protected] Utility Contact (only where SIG not available): Sav Aristides Mobile: 0448 408 834 5 Verbal or phone notification of the operational contacts referred to at sub-clause 5.4(4) is for convenience only and does not constitute, or substitute for, the methods of giving notice specified in clause 14.14. A notice, consent, approval or other communication under this Agreement regarding any Emergency, faults, defects or other network, installation or maintenance problems of which a party becomes aware are may be given to the Operational Contacts, using the methods specified in clause 14.14, and will have effect according to clause 14.14. 6 The contact information in clause 5.4(4) may be varied by a party from time to time by notice to the other party. Commercial-in-Confidence Page 14 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 5.5 No Interference The Carrier must ensure that its Equipment does not: 1 inhibit or disrupt the operation of, or interfere with the Distribution Network or reduce its capacity, reliability or safety; or 2 inhibit or disrupt the operation of, or interfere with any existing third party equipment or facilities. 5.6 Environmental requirements In carrying out its obligations and exercising its rights under this Agreement or an Access Licence, the Carrier will (and will ensure that its employees, contractors and agents): 1 comply with all applicable Environmental Laws; 2 obtain, and comply with all conditions attaching to, any Environmental Approval; 3 not cause any Contamination or Pollution at the site of a Power Pole, associated equipment or facilities (excluding where authorised by any Environmental Approval); 4 promptly notify Essential Energy if: 5.7 a it becomes aware a complaint is made of a breach or alleged breach of an Environmental Law in respect of the Approved Equipment or any work performed in relation to or in connection with the Approved Equipment under this Agreement; b an incident occurs at the site of a Power Pole, associated equipment or facilities as a result of the Approved Equipment or any work performed in relation to or in connection with the Approved Equipment under this Agreement which harms the Environment; c an Environmental Notice is served on the Carrier in respect of the site of a Power Pole, associated equipment or facilities; or d it is in breach of any of its obligations under this clause 0. Remediation The Carrier will remediate any Contamination or Pollution on or from the site of a Power Pole, associated equipment or facilities that is caused by the Carrier so that the site is in a state as close as practicable to the state the site was in at the date the Access Licence commenced. 6 COMPLIANCE 6.1 Compliance with Applicable Laws The Carrier must (and must ensure that its employees, agents and contractors), in performing its obligations and exercising its rights under this Agreement or an Access Licence, exercise due skill and care and comply with all applicable Laws including without limitation: 1 the Act including any codes or standards in force under the Act; 2 the Trade Practices Act 1974 (Cth) and state and territory fair trading legislation; 3 the Electricity Safety Act 1945 (NSW) and any applicable regulations in force under this act; 4 the Electricity Supply Act 1995 (NSW) and any applicable regulations in force under this act; and 5 State Environmental Planning Policy (Infrastructure) 2007. Commercial-in-Confidence Page 15 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 6.2 Authorisations 1 The Carrier must at its own expense obtain and maintain all applicable Authorisations to install, maintain or operate the Approved Equipment. 2 Upon demand, the Carrier will provide to Essential Energy evidence to the reasonable satisfaction of Essential Energy, that the Carrier has complied with the requirements of this clause 6.2 however, nothing in this clause 6.2 shall be construed to infer that Essential Energy is or may be liable for any non-compliance by the Carrier with the terms of this Agreement, an Authorisation or any applicable Law. 3 Essential Energy shall not be required to verify that the Carrier has complied with any of the requirements of this clause 6.2. 6.3 Carrier Employees and Contractors 1 The Carrier acknowledges and agrees that, to the extent permitted by law, the Carrier is responsible and liable, and Essential Energy is not responsible or liable, for the occupational health and safety of the Carrier’s employees, contractors and agents. 2 The Carrier is responsible for ensuring all employees and contractors of the Carrier are suitably trained, accredited (and are Accredited Service Providers if applicable) and equipped to undertake the work. 3 Essential Energy may audit any person accessing the Approved Equipment on Power Poles or the Distribution Network for evidence of accreditation as an Accredited Service Provider at any time. 4 The Carrier must: a ensure so far as is reasonably practicable: i the health, safety and welfare of all the Carrier’s employees, contractors and agents in conducting work in connection with Approved Equipment, any Power Pole, associated equipment or facility, or the Distribution Network; and ii that persons other than its employees contractors and agents are not exposed to risks to their health and safety arising from such work; b comply with its obligations under any applicable occupational health and safety Laws; codes of practice made under such Laws, relevant work cover guidelines and any provisions relating to occupational health and safety included in the Engineering Practices; and c provide adequate instruction, information, training and supervision to the Carrier’s employees, contractors and agents to ensure that they are not exposed to risks to their health and safety arising from the work. 5 The Carrier warrants at all times that its employees, contractors and agents have received adequate information, instruction and training in respect of the Carrier’s obligations under the applicable occupational health and safety Laws and any provisions of the Engineering Practices dealing with occupational health and safety. 7 PAYMENT 7.1 Annual Licence Fee The Carrier must pay the Annual Licence Fee (pro rata as applicable) in respect of each Access Licence: 1 in advance on the relevant Access Licence Commencement Date for the period from that date to the earlier of the next occurring 1 July or 1 January; and Commercial-in-Confidence Page 16 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 2 thereafter, 6 monthly in advance on 1 January and 1 July in each year during the term of the Access Licence until the expiry or termination of that Access Licence, in each case in accordance with an invoice issued by Essential Energy. 7.2 Adjustment of Annual Licence Fee 1 Essential Energy may, by publishing a notice on its website www.essentialenergy.com.au at least 20 Business Days before any Adjustment Date, adjust the rates set out in the Access Price Schedule, and the Annual Licence Fee payable by the Carrier under clause 7.1 is adjusted accordingly on and from that Adjustment Date. 2 Essential Energy may adjust the rates set out in the Access Price Schedule in accordance with the greater of the AER approved network price change or the CPI as calculated under clause 7.2(3). 3 A CPI increase in the Annual Licence Fee is calculated in accordance with the following formulae: Adjusted Annual Licence Fee = PLF x CPI 1 CPI 2 Where: "PLF" Date; means the Annual Licence Fee applying immediately before the relevant Adjustment "CPI 1" means the CPI for the 12 month period immediately prior to the relevant Adjustment Date; "CPI 2" means the CPI for the 12 month period one year before the period to which CPI 1 relates. 7.3 Interest 1 If the Carrier fails to pay an amount on the due date for payment, the Carrier must pay to Essential Energy interest at the Default Rate on that amount, calculated and payable daily, computed from the due date until the amount is paid in full. 2 The Default Rate is (x + 2)% per annum where x is the interest rate quoted by Essential Energy’s principal bankers (“Bank”) as its corporate reference rate (“Published Rate”) or, should there cease to be a Published Rate, the rate which the Bank designates as being an appropriate substitute for the Published Rate (“Substitute Rate”). A certificate signed by a manager or other officer of the Bank stating the Published Rate or the Substitute Rate at a particular date is conclusive evidence of the rate at the particular date. 7.4 Set-Offs, Counterclaims and Other Deductions 1 A party must make all payments under this Agreement without set-off or counterclaim. 2 Except as required by law, a party may not make a deduction in respect of a present or future tax, levy, impost, duty, charge or fee of any nature which is or may be imposed, levied or assessed by a taxing or other authority. 8 GOODS AND SERVICES TAX 1 In this clause 8, “GST Act” means A New Tax System (Goods and Services Tax) Act 1999, as amended. 2 Except for defined terms in this Agreement, capitalised expressions in this clause 8 have the same meaning as in the GST Act. Commercial-in-Confidence Page 17 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 3 A reference to GST payable by a representative member of any GST to an input tax credit entitlement entitlement of the representative member. party includes any corresponding GST group of which that party is a member, of a party includes any corresponding member of any GST group of which payable by the and a reference input tax credit that party is a 4 Unless GST is expressly included, any amount payable under this Agreement for any supply made under or in connection with this Agreement does not include GST. 5 To the extent that any supply made under or in connection with this Agreement is a taxable supply, the GST exclusive consideration otherwise payable or provided for that taxable supply is increased by an amount equal to that consideration multiplied by the rate at which GST is imposed in respect of the taxable supply, and subject to receipt of an effective tax invoice, is payable at the same time. 6 If for any reason (including, without limitation, the occurrence of an adjustment event) the amount of GST paid on a taxable supply (taking into account any decreasing or increasing adjustments in relation to the taxable supply) varies from the GST paid by the recipient: a the supplier must provide a refund or credit to the recipient, or the recipient must pay a further amount to the supplier, as appropriate, at the same time as the GST exclusive component of the adjustment is refunded or paid; b the refund, credit or further amount (as the case may be) will be calculated by the supplier in accordance with the GST Law; and c the supplier must notify the recipient of the refund, credit or further amount within 14 days after becoming aware of the variation to the amount of GST payable. If there is an adjustment event in relation to the supply, the supplier’s requirement to notify the recipient will be satisfied by issuing to the recipient an adjustment note within 14 days after becoming aware of the occurrence of the adjustment event. 7 Each Party agrees to do all things, including providing tax invoices and other documentation, that may be necessary or desirable to enable or assist the other Party to claim any input tax credit, adjustment or refund in relation to any amount of GST paid or payable in respect of any supply made under or in connection with this Agreement. 8 If a payment to a Party under this Agreement is a payment by way of reimbursement or indemnity and is calculated by reference to the GST inclusive amount of a loss, cost or expense incurred by that Party, then the payment is to be reduced by the amount of any input tax credit to which that Party is entitled in respect of that loss, cost or expense before any adjustment is made for GST pursuant to clause 8(5). 9 INDEMNITY AND LIABILITY 9.1 Indemnity 1 The Carrier indemnifies and keeps indemnified Essential Energy against: a all losses incurred by Essential Energy; b all liabilities incurred by Essential Energy; and c all reasonable costs actually payable by Essential Energy to its own legal representatives and other reasonable expenses incurred by Essential Energy in connection with a demand, action, arbitration or other proceeding (including mediation, compromise, out of court settlement or appeal); arising directly or indirectly as a result of or in connection with: d any wilful or negligent act or omission; e loss of or damage to property; f personal injury or death; Commercial-in-Confidence Page 18 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence g any breach of any Law; or h breach of any term, warranty or condition of this Agreement or an Access Licence, by the Carrier or any of the Carrier’s officers, employees, agents, representatives or contractors. This indemnity survives expiry or termination of this Agreement. 9.2 Limitation of Essential Energy’s Liability 1 Notwithstanding any other provision of this Agreement, to the fullest extent permitted by law, Essential Energy and its employees, agents and contractors exclude all liability, whether arising in tort (including negligence), in contract, in equity, under statute or otherwise, for: a any consequential, indirect or special losses, costs or damages of any kind (including, without limitation, loss of profit, expectation, revenue, goodwill, reputation or data, loss or denial of opportunity, or business interruption) arising directly or indirectly under or in connection with this Agreement (including any Access Licence) or the provision or non-provision of access to the Distribution Network; b any requirement to remove or power down the Approved Equipment; c any delay in approving the connection of Equipment to a Power Pole, associated equipment or facilities; d any interruption to the Carrier’s services in accordance with this Agreement.. 2 Notwithstanding any other provision of this Agreement, Essential Energy’s aggregate liability (whether arising under statute, in contract, in tort (including negligence), or otherwise) for any losses costs, damages or expenses suffered or incurred under or in connection with this Agreement (including any Access Licence) or the provision or nonprovision of access to the Distribution Network, is limited to the Annual Licence Fees paid in the 12 months prior to the occurrence giving rise to the liability. 9.3 Exclusion of warranties To the fullest extent permitted by law, Essential Energy excludes all express, statutory and implied warranties, conditions and representations arising under or relating in any way to: 1 this Agreement or any Access Licence; 2 the Distribution Network or any part thereof (including any Power Pole), or 3 the Engineering Practices, including any warranties as to fitness for purpose. Essential Energy does not warrant or represent the accuracy or reliability of any information or directions provided or disclosed by, or learned from, Essential Energy, its employees, contractors or agents concerning the Distribution Network or any part thereof (including any Power Pole), including information concerning its safety, condition, state of repair, suitability, reliability or fitness for purpose. The Carrier is solely responsible for conducting all necessary enquiries, exercising all due diligence and satisfying itself, relying solely upon its own judgment, as to the safety, suitability, condition, repair, and fitness for its purposes of the Distribution Network and any part thereof (including any Power Pole). 10 CONFIDENTIALITY 1 In this clause 10 unless the context otherwise requires: a Approved Purposes means the purposes of this Agreement; Commercial-in-Confidence Page 19 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence b Confidential Information includes: i ii information of every kind concerning or in any way connected with: A either Party or any Related Body Corporate; B the business, processes, know how, methodologies, facilities, customers, property or affairs of either Party or any Related Body Corporate, or of any officers or employees of either Party or any Related Body Corporate; and information of every kind which is the property of either Party or any Related Body Corporate; which is confidential or commercially sensitive, or marked as such, or which the receiving party knew or ought reasonably to have known was confidential or commercially sensitive, and which is disclosed communicated or delivered in writing, orally or by any other means by one party (Disclosing Party) or by any person on the Disclosing Party’s behalf to, or otherwise learnt by, or comes to the knowledge of or into the possession of the other party (Receiving Party) or an employee, officer or agent of the Receiving Party. 2 Information generated about Essential Energy’s or the Carrier’s network or facilities as a result of or in connection with the provision of access to the Carrier under this Agreement is Confidential Information of Essential Energy and the Carrier respectively. 3 A Receiving Party must: 4 5 a maintain and take all steps necessary to maintain all Confidential Information in confidence; b ensure that proper and secure storage is provided for the Confidential Information while in the possession or under the control of the Receiving Party; c take all reasonable precautions necessary to prevent accidental disclosure of any of the Confidential Information; d not disclose any of the Confidential Information to any person other than those of its employees, officers, subcontractors, assignees and agents who are reasonably required to receive and consider the Confidential Information in the course of (and solely for) the Approved Purposes, or to its professional advisors solely for the purposes of seeking professional advice; e use Confidential Information solely for the Approved Purposes. This clause 10 does not impose obligations on a Receiving Party concerning Confidential Information which the Receiving Party reasonably proves: a is publicly available at the date of this Agreement; b becomes publicly available subsequent to the date of this Agreement without breach of this Agreement; c the Receiving Party obtained from a third party without breach by that third party of any obligation of confidence concerning that Confidential Information; or d was already lawfully in the possession of the Receiving Party prior to disclosure by the Disclosing Party. It is not a breach of clause 10(3) for: a either party to disclose Confidential Information which it is obliged by law to disclose to the person to whom it is disclosed; b Essential Energy to disclose Confidential Information solely to the extent necessary to comply with a lawful request, order or direction of any relevant New South Wales Government Minister or agency with appropriate supervisory or oversight responsibilities. Commercial-in-Confidence Page 20 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 6 A Receiving Party must (at the Disclosing party’s option) return or destroy all documents and other media which contain Confidential Information to the Disclosing party: a immediately when requested by the Disclosing Party to do so; and b if not earlier requested, on termination of this Agreement, provided the Receiving Party may retain a copy solely to the extent necessary to comply with its own record-keeping requirements. 7 At the same time as it complies with clause 10(6), a Receiving Party must also ensure that its officers, employees, subcontractors, assignees and agents return any of the documents and other media which contain Confidential Information held by them. 8 Both parties acknowledge that: a the Confidential Information is at all times the property of the Disclosing Party; b a breach of this clause 10 would be harmful to the business interests of the Disclosing Party; c monetary damages alone would not be a sufficient remedy for a breach of this clause 10; and d in addition to any other remedy which may be available in law or equity, a Disclosing Party is entitled to interim, interlocutory and permanent injunctions or any of them to prevent breach of this clause 10 and to compel specific performance of it. 9 This clause is subject to the requirements of clause 2.1 of the Code as applicable. 11 RISK AND INSURANCE 11.1 Risk The Approved Equipment remains at the Carrier’s risk at all times. 11.2 Insurance 1 The Carrier warrants that it has in place, and will keep current during the term of this Agreement, and will not vitiate or render void or voidable: a professional indemnity insurance for an amount of not less than $20 million per claim and in the annual aggregate; and b public liability insurance (covering personal injury and property damage) for an amount of not less than $20 million per claim, (which sums must be reviewed each year and increased where necessary in accordance with prudent commercial practices) which will insure the Carrier in respect of anything which might be done or caused under or in relation to this Agreement by the Carrier its employees, agents or contractors, or Equipment including, without limiting the generality of the foregoing: a any liability of the Carrier to Essential Energy; b any liability of the Carrier to third parties; c any liability of Essential Energy to third parties caused by the Carrier, its employees, Accredited Service Providers, or Equipment; and, d any liability of Essential Energy to third parties contributed to by the Carrier, its employees, Accredited Service Providers or Equipment, to the extent of that contribution. Commercial-in-Confidence Page 21 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 2 The insurance policies referred to in clause 11.2(1) must be with registered Australian insurance companies or such other companies specifically accepted in writing by Essential Energy. 3 The Carrier will ensure that the contracts and public risk insurance policies referred to in clause 11.2(1) note Essential Energy on the policies as an insured party. 4 The Carrier will ensure that each of the insurance policies referred to in clause 11.2(1) includes a waiver of subrogation clause that is effective to waive all rights against Essential Energy, its employees, agents and contractors. 5 Where Essential Energy is required to pay any premium or increased premium (as the case may be) as a result of or in any way connected with the Carrier's Network including Equipment installed or to be installed on Essential Energy's Power Poles (the "Increased Premium"), then the Carrier shall pay to Essential Energy upon receiving written notice from Essential Energy (and in any event no more than 14 Business Days after receiving written notice from Essential Energy) the amount of any Increased Premium. 11.3 Other Insurance The Carrier must also have in force and maintain property insurance for the Approved Equipment used by the Carrier under this Agreement and workers compensation insurance in accordance with any applicable Laws in the place where the work is performed. 12 TERM AND TERMINATION 12.1 Term 1 Subject to this Agreement, this Agreement commences on the date that it is signed and is for a minimum term of 5 years. It continues after that until terminated by either Party giving not less than 60 days prior written notice to the other Party expiring at any time. 2 Subject to this Agreement, each Access Licence commences on the Access Licence Commencement Date and continues for a term of 10 years. 12.2 Default by Carrier If the Carrier materially breaches an obligation under this Agreement or an Access Licence and Essential Energy gives a notice ("Breach Notice") to the Carrier: 1 citing this clause; 2 specifying the breach; and 3 requiring the Carrier to remedy the breach; and the Carrier fails to remedy the breach within 20 Business Days after receiving the Breach Notice ("Remedy Period"), or it is not capable of remedy, without limiting its rights under clause 12.4, Essential Energy may, by giving 5 Business Days notice: 4 refuse to continue to provide the Carrier with, or suspend, access to the Power Pole associated equipment and facilities in respect of which the breach has occurred until the breach is remedied in full; and/or 5 disconnect and/or remove the Approved Equipment from the Power Pole, associated equipment and facilities in respect of which the breach has occurred; and/or 6 terminate the relevant Access Licence(s) to which the breach relates. Commercial-in-Confidence Page 22 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 12.3 Additional Rights of Termination Essential Energy may terminate this Agreement and all Access Licences immediately by notice to the Carrier if: 1 the Carrier ceases to be a licensed carrier under the Act; or 2 a Change of Control Event occurs in respect of the Carrier. 12.4 Termination for default by either Party A Party may terminate this Agreement immediately by notice in writing to the other Party if 1 the other Party has committed a material breach of this Agreement and the breach remains unremedied for 30 days after receipt of the first Party’s notice of the breach; or 2 the other Party suffers an Insolvency Event. 12.5 Effect of Termination Termination of this Agreement does not affect the rights or liabilities of the Parties in relation to any cause of action accruing prior to termination. 12.6 Access Licences 1 Subject to clause 12.6(2), on expiry or termination of this Agreement, each Access Licence will continue until its term expires, and all terms of this Agreement relevant to a continuing Access Licence will survive and will continue until such expiry (including for the avoidance of doubt Essential Energy’s rights of termination of this Agreement or an Access Licence for default by the Carrier). 2 The Carrier may also terminate any Access Licence upon giving 90 Business Days notice to Essential Energy. 3 All Access Licences terminate on termination of this Agreement for default by the Carrier (including termination by Essential Energy under clauses 12.3, or 12.4). 12.7 Carrier’s Obligations upon Expiry or Termination 1 Upon expiry or termination of an Access Licence for any reason, whether individually or as a result of termination of this Agreement, the Carrier must cease to use the Approved Equipment on the relevant Power Pole or all Power Poles respectively and any associated equipment or facilities. Furthermore, the Carrier must at its cost: a remove the Equipment from the relevant Power Pole(s) and any associated equipment or facilities; b restore the condition of the relevant Power Pole(s) and any associated equipment or facilities to the reasonable satisfaction of Essential Energy, fair wear and tear excepted; c (where applicable) promptly make good the Distribution Network, premises owned or occupied by Essential Energy, and land, to a condition equivalent to its condition before the Access Licence commenced, fair wear and tear excepted; within 60 Business Days of expiry of termination. All terms of this Agreement relevant to such Equipment will survive and will continue until such removal. This clause survives termination or expiry of this Agreement. 2 In undertaking any removal, restoration and/or make good in accordance with clause 12.7(1), the Carrier must ensure that: a there is no damage to the Distribution Network, any third party assets or facilities, or any premises owned or occupied by Essential Energy; and Commercial-in-Confidence Page 23 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence b it minimises any disruption to or interference with the Distribution Network, and any such third party assets or facilities during such work. 13 DISPUTE RESOLUTION 13.1 Notice of Dispute If a dispute arises in connection with this Agreement, a party to the dispute must give to the other party or parties to the dispute notice specifying the dispute and requiring its resolution under this clause 13 (“Notice of Dispute”). 13.2 Dispute Resolution 1 The chief executive officers or equivalent officer (or their appointed representatives) of each party must confer within 7 days after the Notice of Dispute is given to try to resolve the dispute. 2 If the dispute is not resolved within 7 days after the Notice of Dispute is given to the other Party, (“First Period”), the dispute is by this clause submitted to mediation. The mediation must be conducted in Sydney. The Institute of Arbitrators and Mediators Australia Rules for the Mediation of Commercial Disputes (Edition 2 – September 1995) as amended by this clause 13 to the mediation, except where they conflict with this clause 13. 3 If the parties have not agreed upon the mediator and the mediator’s remuneration within 7 days after the First Period: a the mediator is the person appointed by; and b the remuneration of the mediator is the amount or rate determined by the President of the Law Society of NSW (“President”) or the President’s nominee, acting on the request of any party to the dispute. 4 The parties must pay the mediator’s remuneration in equal shares. Each party must pay its own costs of the mediation. 5 If the dispute is not resolved within 28 days after the appointment of the mediator (“Second Period”), the dispute is by this clause referred to arbitration. The arbitration must be conducted in Sydney by a single arbitrator. 6 If the parties have not agreed upon the arbitrator within 7 days after the Third Period, the arbitrator is the person appointed by the President or the President’s nominee, acting on the request of any party to the dispute. 7 After accepting the appointment and during the arbitration the arbitrator may: a require the parties to lodge security or further security towards the arbitrator’s fees and expenses; and b apply any security towards those fees and expenses; but the arbitrator may not direct a party to the dispute to provide security for the costs of the arbitration to be incurred by any other party. 8 This clause 13 does not prevent any party from obtaining any injunctive, declaratory or other interlocutory relief from a court which may be urgently required. 9 This clause 13 applies where the Agreement is otherwise void or voidable. 13.3 Performance during Dispute Subject to clause 13, a Party must continue to fulfil its obligations under this Agreement during the pendency of an issue or dispute and any dispute resolution process invoked under this clause 13. Commercial-in-Confidence Page 24 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 14 GENERAL 14.1 Ownership of Equipment Unless the Parties agree otherwise, all Approved Equipment remains the property of the Carrier and the Carrier is entitled to remove any or all of its Approved Equipment upon providing 20 Business Days notice to Essential Energy. This clause survives termination or expiry of an Access Licence or this Agreement. 14.2 Transfer of ownership in Power Poles to Carrier 1 If the Carrier requests, Essential Energy may at its sole discretion agree to transfer to the Carrier ownership in one or more Power Poles the subject of an Access Licence, on terms substantially in accordance with the “Transfer of Poles Deed” set out in Schedule 2. 2 From the date of transfer of ownership of each Power Pole to the Carrier under clause 14.2(1): 14.3 a the Access Licence in respect of that Power Pole shall be deemed to be revoked; and b the transferred Power Pole and the attached Approved Equipment are no longer governed by this Agreement. No Partnership This Agreement does not create or evidence a partnership or joint venture. 14.4 Consents and Approval Essential Energy may give conditionally or unconditionally or withhold its approval or consent in its absolute discretion unless this Agreement expressly provides otherwise. 14.5 Public Announcements Unless required by law, an announcement, circular or other public disclosure of the contents of this Agreement must not be made or permitted by a party without the prior written approval of the other parties. 14.6 Assignment The Carrier must not assign, transfer or otherwise deal with any or all of its rights or interest in this Agreement to any other person without the prior consent of Essential Energy. 14.7 Further Assurance Each Party must promptly at its own cost do all things (including executing and if necessary delivering all documents) necessary or desirable to give full effect to this Agreement. 14.8 Entire Understanding This Agreement: 1 is the entire agreement and understanding between the Parties on everything connected with the subject matter of this Agreement; and 2 supersedes any prior agreement or understanding on anything connected with that subject matter. Commercial-in-Confidence Page 25 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 14.9 Severability If anything in this Agreement is unenforceable, illegal or void then it is severed and the rest of this Agreement remains in force. 14.10 Waiver 1 A party’s failure or delay to exercise a power or right does not operate as a waiver of that power or right. 2 The exercise of a power or right does not preclude either its exercise in the future or the exercise of any power or right. 3 A waiver is not effective unless it is in writing. 4 Waiver of a power or right is effective only in respect of the specific instance to which it relates and for the specific purpose for which it is given. 5 The Carrier will comply with this Agreement in connection with any access by the Carrier to Essential Energy’s Distribution Network and agrees that this Agreement constitutes an agreement between a carrier and a public utility for the purposes of clause 11 of Schedule 3 of the Act. 14.11 Variation 1 An amendment or variation to this Agreement is not effective unless it is in writing and signed by the parties. 2 Essential Energy may vary this Agreement at any time as necessary to comply with any Change of Law. Prior to exercising its right to vary this Agreement under this clause 14.11(2), Essential Energy will notify the Carrier in writing of the planned variation, and if required by the Carrier, will meet with the Carrier as soon as practicable to discuss the relevant Change in Law and the amendments to this Agreement Essential Energy believes may be necessary to enable Essential Energy to comply with the Change in Law. 14.12 Costs and Outlays Each Party must bear its own costs arising out of the negotiation, preparation and execution of this Agreement and each Access Licence. The Carrier must pay all stamp duty (including fines, penalties and interest) payable on or in connection with this Agreement and any document executed under it. 14.13 Notices 1 A notice, consent, approval or other communication connected with this Agreement (“Notice”) has no legal effect unless it is in writing. 2 In addition to any other method of service provided by law, the Notice may be: 3 a sent by prepaid ordinary post to the address for service of the addressee, if the address is in Australia and the Notice is sent from within Australia; b sent by prepaid airmail to the address for service of the addressee, if the address is outside Australia or if the Notice is sent from outside Australia; c sent by facsimile to the facsimile number of the addressee; or d delivered at the address for service of the addressee. If the Notice is sent or delivered in a manner provided by clause 14.14(2), it must be treated as given to and received by the party to which it is addressed: a if sent by post from within Australia to an address in Australia, on the 2nd Business Day (at the address to which it is posted) after posting; Commercial-in-Confidence Page 26 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 4 b if sent by post to an address outside Australia or sent by post from outside Australia, on the 5th Business Day (at the address to which it is posted) after posting; or c if sent by facsimile before 5pm on a Business Day at the place of receipt, on the day it is sent and otherwise on the next Business Day at the place of receipt; or d if otherwise delivered before 5pm on a Business Day at the place of delivery, upon delivery, and otherwise on the next Business Day at the place of delivery. Despite clause 14.14(3)(c): a a facsimile is not treated as given or received unless at the end of the transmission the sender’s facsimile machine issues a report confirming the transmission of the number of pages in the Notice; and b a facsimile is not treated as given or received if it is not received in full and in legible form and the addressee notifies the sender of that fact within 3 hours after the transmission ends or by 12 noon on the Business Day on which it would otherwise be treated as given and received, whichever is later. 5 If a notice is served by a method which is provided by law but is not provided by clause 14.14(2), and the service takes place after 5pm on a Business Day, or on a day which is not a Business Day, it must be treated as taking place on the next Business Day. 6 A Notice sent or delivered in a manner provided by clause 14.14(2) must be treated as validly given to and received by the party to which it is addressed even if: 7 8 a the addressee has been liquidated or deregistered or is absent from the place at which the Notice is delivered or to which it is sent; or b the Notice is returned unclaimed. Essential Energy’s address for service, and facsimile number are: Name: Essential Energy Attention: Sav Aristides Address: PO Box 718 Queanbeyan NSW 2620 Facsimile No: 02 6589 8498 The Carrier’s address for service, and facsimile number are: Name: Attention: Address: Facsimile No: 9 A party may change its address for service, facsimile number or electronic mail address by giving Notice of that change to each other party. 10 Any Notice by a party may be given and may be signed by its solicitor. 11 Any Notice to a party may be given to its solicitor by any of the means listed in clause 14.14(2) to the solicitor’s business address, facsimile number or electronic mail address. 14.14 Governing Law and Jurisdiction 1 The law of New South Wales governs this Agreement. 2 The parties submit to the exclusive jurisdiction of the courts of New South Wales and of the Commonwealth of Australia and agree that any lawsuit must be heard in those courts. Commercial-in-Confidence Page 27 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence 14.15 Execution of Counterparts This Agreement may be executed in any number of counterparts. Each counterpart is an original but the counterparts together are one and the same Agreement. Commercial-in-Confidence Page 28 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence EXECUTED as an agreement by: Signed for and on behalf of ESSENTIAL ENERGY ABN 37 428 185 226 by its authorised representative in the presence of: ) ) ) Signature of Witness Signature of Authorised Representative Name of Witness (BLOCK LETTERS) Name of Authorised Representative (BLOCK LETTERS) Address of Witness SIGNED for and on behalf of [ ] by its authorised representative in the presence of: ) ) ) Signature of Witness Signature of Authorised Representative Name of Witness (BLOCK LETTERS) Name of Authorised Representative (BLOCK LETTERS) Address of Witness Commercial-in-Confidence Page 29 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence SCHEDULE 1: ANNUAL LICENCE FEE Annual Licence Fee = Number of Power Poles Commercial-in-Confidence X Applicable annual charge for each pole in Accordance with the Access Price Schedule Page 30 of 31 Use of Poles Carrier Access Agreement Commercial-in-Confidence SCHEDULE 2: TRANSFER OF POLES DEED Commercial-in-Confidence Page 31 of 31
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