Ngai Tahu Settlement

10.5
DEED OF COVENANT TO PROTECT BEECH FOREST REMNANTS

Clause 10.5.1(d))

Date:

BETWEEN

(1) TE RUNANGA O NGAI TAHU (the
Landholder)

(2) THE MINISTER OF CONSERVATION (the
Minister)

BACKGROUND

A The Landholder and the Crown are parties to a Deed of
Settlement dated [ ] 1997.

B Pursuant to that Deed, the Crown agreed to transfer to the
Landholder certain land including the Land, such transfer to be subject to the
Landholder entering into a deed of covenant with the Minister providing for
certain measures to protect the Beech Forest Remnants.

C Under section [ ] of the Ngai Tahu Claims Settlement Act
1997, this covenant is deemed to have been entered into by the Minister pursuant
to section 77 of the Reserves Act 1977, and therefore binds future owners of the
Land.

NOW THEREFORE the parties agree as
follows:

1 DEFINITIONS AND INTERPRETATION

1.1 In this deed, unless the context otherwise
requires:

Beech Forest Remnants means the
areas of beech forest on any part of the Land which are 5 hectares or more in
area at the date of this Deed which are identified as "Bush Remnant Areas" on
the plans attached as an Appendix to this Deed;

Crown means Her Majesty the Queen
in right of New Zealand;

Land means [legal description of
Elfin Bay lake face, Greenstone lake face and Routeburn Dart faces to be
inserted].

1.2 In the interpretation of this Deed, unless the context
otherwise requires:

1.2.1 headings appear as a matter of convenience and are not to
affect the interpretation of this Deed;

1.2.2 the singular includes the plural and vice versa, and
words importing one gender include the other genders;

1.2.3 a reference to an enactment or any regulations is a
reference to that enactment or those regulations as amended, or to any enactment
or regulations substituted for that enactment or those regulations but this
provision shall be read subject to clause 1.3;

1.2.4 a reference to a party to this Deed or any other document
or agreement includes that party's successors, heirs, executors and
assigns;

1.2.5 a reference to the Minister includes any officer or duly
authorised agent of the Minister; and

1.2.6 a reference to the Landholder includes any receiver,
liquidator, statutory manager or assignee in bankruptcy of the Landholder or any
lessee or mortgagee in possession of the Land or any part of it. Where there is
more than one owner of the Land, this Deed binds them both jointly and
severally.

1.3 The parties agree that the rule of interpretation referred
to in clause 1.2.3 is intended only to facilitate interpretation of this
Deed in circumstances where legislative changes make statutory references in
this Deed obsolete. It is not intended to indicate, and should not be
interpreted as indicating, any consent by the Landholder to, or acquiescence by
the Landholder in, the introduction to Parliament by the Crown of any proposed
statutory amendment which would adversely affect the redress provided by the
Crown pursuant to the Deed of Settlement referred to in Recital A or the
ability of either party to fulfil its obligations expressed in this Deed or in
that Deed of Settlement.

2 PROTECTION OF BEECH FOREST REMNANTS

2.1 In order to protect the Beech Forest Remnants, the
Landholder agrees with the Minister that the Landholder will not carry out, or
allow to be carried out without the prior approval of the Minister:

2.1.1 any burning in the Beech Forest Remnants;

2.1.2 any destruction, cutting or removal of native plants in
the Beech Forest Remnants;

2.1.3 the erection of any structure in the Beech Forest
Remnants; or

2.1.4 any planting of trees or shrubs which are not indigenous
in, or in the immediate vicinity of, the Beech Forest Remnants.

2.2 The Landholder agrees that it will not undertake any
burning in any area of the Land where there is no natural or man-made firebreak
between the source of the fire and any of the Beech Forest Remnants without the
consent of the Minister, which will not be withheld if the precautions the
Landholder intends to take to prevent the fire spreading to any of the Beech
Forest Remnants are adequate.

3 REGISTRATION OF COVENANT

The Minister will cause a notification of this covenant to be
recorded against the title to the Land in the manner provided for in section 77
of the Reserves Act 1977, as soon as reasonably practicable after the execution
of this Deed. The intention of recording the covenant against the title in this
way is to bind future owners and to allow for the application of sections 93-105
of the Reserves Act 1977.

4 ACCESS FOR MINISTER

The Landholder grants to the Minister a right of access onto
and through the Land for the purpose of undertaking weed or pest control in the
Beech Forest Remnants or for the purpose of examining and recording the
condition of the Beech Forest Remnants. In exercising this right of access, the
Minister shall obtain the prior consent of the Landholder and take all
reasonable steps to minimise disruption to the Landholder's operations on the
Land. The Landholder will not unreasonably withhold or delay consent Nothing in
this clause imposes any obligation on the Minister to undertake weed or pest
control on the Land or affects the obligations of the Landholder under any law
relating to weed or pest control.

5 NOTICES

Any notice required to be given to either party under this Deed
will be sufficiently given if in writing and served in the manner provided in
Section 152 of the Property Law Act 1952. In the case of the Landholder, the
notice will be sufficiently given by post or delivered to the residential or
business address of the Landholder. In the case of the Minister, the notice will
be sufficiently given if sent by post or delivered to the office for the time
being of the Regional Conservator, Department of Conservation, Otago. Any
consent under clause 4 may be obtained from the manager of the
Landholder's pastoral farming operation on the Land.

6 TERM

This Deed shall apply in perpetuity.

7 DISPUTE RESOLUTION

Any dispute which arises between the Landholder and the
Minister in any way relating to this Deed may be resolved by referring the
dispute to an agreed third party for decision or by arbitration under the
provisions of the Arbitration Act 1996.

EXECUTED as a deed on the date
first written above.

[Execution provisions to follow]

APPENDIX

PLANS IDENTIFYING BEECH FOREST REMNANTS

(Clause 1.1, Definition of Beech Forest
Remnants)

[Allocation Plans HC 520, HC 521 and HC 522 to be
inserted]