2018-06-27 SM - Attachment 2 to Item 1 - Draft Funding Deed

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                                               ZENS     Of
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                                             QXgIaN
                                           Queensland
                                           Government
         obligations.
 Operative part:
 The parties covenant and agree:
A.     The Contributors will transfer the Funding Contribution to the Department in accordance with this
       deed.
B.     The Department will provide the Acquisition Costs to DAF to enable it to finalise the HQP/DAF
       Agreement.
C.     From execution of the HQP/DAF Agreement the State will commence a process to transition
       available Non-PLA within the Yurol and Ringtail State Forests into national park under the NCA
       (National Park) as delineated on the Plan and marked “Stage 1 — Proposed National Park tenure —
       about 357.3 ha”.
 D. _ The State will transition the remaining Non-PLA within Yurol and Ringtail State Forests into National
       Park in 5 years’ time, following the date of the HQ/DAF Agreement as delineated on the Plan and
       marked “Stage 2A — Proposed National Park tenure - about 991.22ha’”.
 E     Upon expiry or termination of HQP’s licence rights over the PLA in 5 years’ time in accordance with
       the HQP/DAF Agreement, or the completion of harvest activities by HQP or DAF, the Department
       intends to transition the former PLA to protected area tenure as a Conservation Park under the NCA
       with Council appointed as trustee as delineated on the Plan and marked “Stage 2B — Proposed
       Conservation Park tenure — about 1,039.81 ha’.
 Fz    At the time of transition of the former PLA to protected area tenure, at Council’s option and with the
       agreement of all parties, Council may offer to make a financial contribution to be negotiated and
       agreed with the Department for rehabilitation costs of parts of the pine plantation and fallow
       plantation areas to allow the former PLA area to transition direct to National Park tenure in lieu of
       Conservation Park under Council trusteeship as set out in paragraph E.
 G. — The Department will hold the Funding Contribution in an interest bearing account with the
       Queensland Treasury Corporation and will not draw down on such Funding Contribution until the PLA
       has been transferred to protected area status under the NCA as evidenced by Gazettal.
H.     On Gazettal under paragraph E, the Funding Contribution will be released to the Department to
       reimburse part of the Acquisition Costs.
 I.    If Gazettal under paragraph E has not occurred for any reason within seven (7) years of the date of
       this Deed, then the Funding Contribution will be returned to the Contributors as set out in this deed.
 if    On Gazettal, Interest accrued on the Funding Contribution will be released to the Department to be
       used by the Department to fund koala conservation projects in the Noosa Region and the
       Department agrees to consult with the Council and the Association in relation to such proposed
       projects.
K.     The parties intend to recognise and retain the rights of any apiary licences located in the Yurol and
       Ringtail areas for a period of 10 years from Gazettal. The facilitation of such rights to be managed by
       the Department.
 We    To assist with the management and transition process, the Council, NPA, HQP and the Department
       intend to form the Transition Committee with such committee’s role, responsibilities, membership and
       meetings being set out in its terms of reference set out in Schedule 3 of this deed.
 M.    Council is responsible for coordinating the rehabilitation of the former PLA (with the exception of the
       Hardwood PLA) with the additional funding support of the Association (outlined in a separate funding
       agreement between Council and the Association). This clause does not apply if clause F has been
       implemented.

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