Introduction

We set out our terms of engagement for providing legal services ("Terms"). The Terms also include the Law Society client care and service information.

The Terms set out the basis on which we provide legal services and form the basis of our agreement with each of our clients in relation to each instruction. Any changes need to be agreed in writing.

Responsible Partner and Team

You will have a partner at Rennie Cox who is responsible for your work. The responsible partner is your primary contact.

Some or all of the work may be performed by other lawyers and legal assistants. In this way we can provide the appropriate expertise in an efficient, cost effective and timely manner.

You Can Help Us

To ensure we understand your instructions and requirements we ask that you:

• Give us clear instructions, if possible, in writing, specifying your requirements and expectations and tell us if your requirements or expectations change.
• Respond to any important questions that arise.
• Advise us of any important time limits
• Tell us who is authorised to give us instructions on your behalf.

Please keep us updated with all your current contact details so that we can contact you as required.

Our Client Care and Service Commitment to You

We will:

• Protect and promote your interests and act for you free from compromising influences or loyalties.
• Discuss with you your objectives and how they should best be achieved.
• Act competently, in a timely way, and in accordance with instructions received and arrangements made.
• Provide you with information about the work to be done, who will do it and the way the services will be provided.
• Protect your privacy and ensure appropriate confidentiality.
• Treat you fairly, respectfully and without discrimination.
• Give you clear information and advice.
• Keep you informed about the work being done and advise you when it is completed.
• Charge you a fee that is fair and reasonable and let you know how and when you will be billed.
• Let you know how to make a complaint and deal with any complaint promptly and fairly.

The obligations lawyers owe to clients are described in the Rules of Conduct and Client Care for Lawyers. Those obligations are subject to other overriding duties, including duties to the courts and the justice system. If you have any questions, please contact us on (09) 303 4089 or contact the Law Society on 0800 261 801 or www.lawyers.org.nz.

Calculation of our Fees

The fee which we will charge or the manner in which we will calculate the fee are set out in the letter of engagement. Unless otherwise stated in the letter of engagement, in setting our fee we consider the criteria laid down by the New Zealand Law Society. These criteria include:

• The time spent working on the matter
• The skill and specialised knowledge and responsibility required
• The urgency with which the work is done
• The value or amount of the property or money involved
• The results achieved

Among these factors, the time worked on the matter and effort required carry the heaviest weighting. We will keep accurate records of our time. Time is recorded in 6 minute units with time rounded up to the next unit of 6 minutes.

The current hourly rates of our lawyers and legal assistants working on your matter will be set out in the Letter of Engagement and are also available on request. We adjust these rates from time to time to reflect levels of legal experience and changes in overheads.

We charge separately for disbursements such as courier deliveries, computerised research services, Court fees, photocopying where done by an external company and other fees charged by agencies. In addition, we charge 5% of the fee to cover our usual disbursements such as our photocopying, toll calls, postage, etc.

Where we place money on interest bearing deposit we charge a small commission of 5% of the gross interest earned on the deposit to cover our costs of administering this.

Estimates

If requested, and when we can, we will give you an estimate of our likely fee. Estimates are based on our professional judgement. They are not maximum or fixed fee quotations and the final fee may very. It is not always possible to provide an estimate.

Quotes and Other Fee Arrangements

We will provide you with a quote where the nature of the work can be defined at the outset. We are prepared to consider other flexible fee arrangements in appropriate circumstances.

Invoices

We send interim invoices (unless otherwise agreed in writing) which are generally delivered on a monthly basis. The invoices are payable within 14 days of the date of the invoice.

If the invoices are not paid, we reserve the right to suspend work on your current assignments and to retain your files until the overdue amount is paid.

Where you have agreed that we instruct external counsel, or another contractor such as an expert, then you will pay the amount either charged to us by that person, or pay that person direct where you are billed direct.

GST will be added to our fee (or any estimate or quote which we may give) in all cases except where the client is zero rated or exempt from GST.

Where we require a retainer in advance to cover fees, disbursements and charges, the money will be paid into our trust account. We will forward you an invoice and deduct the corresponding amounts when the payment is due. We will ask for further retainers as required.

Where your matter involves a transaction which concludes with a settlement such as the sale of property, a business, shares or other assets, or where we otherwise hold your funds, we may deduct our fees, disbursements and charges from the funds which we hold.

We may charge you interest at 11% on any fees and disbursements remaining unpaid after the date for payment.

If payment is not made, you will be responsible for all reasonable debt collection costs and/or legal costs (on a solicitor/client basis) that we incur in recovering outstanding amounts.

Where the engagement letter is addressed to more than one person, each shall be jointly and severally liable for our fees and disbursements and other charges. By "jointly and severally liable", we mean that each person is responsible for ensuring that our bill is paid, and we can pursue all or any one of you for the whole amount that is due to us.

The Scope of your Instruction

It is important that the scope of our work is clear and agreed between us at the outset and also if this changes during the conduct of the particular matter.

You should promptly discuss with the responsible partner any questions you have about the scope of our work and notify us (preferably in writing) if you wish to change the scope of our work.

Our Advice

The opinions we give about the outcome of any legal matters are expressions of our best professional judgement. They are not guarantees. Our opinions are limited by a number of factors including our knowledge of the facts. Also, they are based on the state of the law at the time they are given.

Our advice will frequently be given in reliance on information provided by you or agencies such as public registry offices. We do not accept responsibility for any errors or omissions in that information or in our advice given as a result of those errors or omissions.

Communications

If you have a preferred method of our firm communicating with you, please let us know.

We do not accept any liability for loss arising from non-receipt of any communication, including computer email communications.

Settlement Monies

For property and financing transactions where payment of monies is due by you, we require clear funds for the correct amount to be deposited with us no later than the morning of the settlement.

Confidential Information

After you have instructed us, you authorise us to collect information about you (including personal information) and anything to do with the matter upon which you are instructing us. This will enable us to perform our work for you. You authorise us to use this information to the extent necessary to carry out your instructions or as required by law. We will follow the information privacy principles set out in the Privacy Act 1993.

Professional Indemnity Insurance & Fidelity Fund

We hold professional indemnity insurance that meets or exceeds the minimum standards specified by the New Zealand Law Society.

The Lawyers' Fidelity Fund provides cover up to specified maximums (currently $100,000) for clients who suffer financial loss by theft in certain circumstances. The Fund does not cover a client for any loss relating to money that a lawyer is instructed to invest on behalf of a client.

Termination of Our Legal Services

You have the right to terminate our services by giving us reasonable written notice.

The Rules of Conduct and Client Care for Lawyers require or allow us to stop work on your current files in a number of situations. These include:

• If you act contrary to our advice or ignore our advice.
• If there is a conflict of interest.
• Where there is misrepresentation or if you do not disclose relevant facts.
• Non payment of fees or costs.
• If you do not give us instructions in a timely manner.

Should this type of situation arise we will try to discuss this with you in advance. We will give you written notice wherever practical, if we stop acting for you.

If your retainer is terminated you must pay all our fees and disbursements/charges incurred up to the date of termination.

Complaints

If you have any concerns or complaints we suggest that you raise this with the partner responsible for your work in the first instance. If you do not wish to raise this with the partner or you are not satisfied with the response, please contact one of our other partners who will deal with this fairly and promptly. We are committed to resolving any issues as soon as possible.

If you are not satisfied with the outcome of the above inquiries you can also contact the NZ Law Society's Lawyers' Complaints Service, at 26 Waring Taylor Street, PO Box 5041, Wellington 6145, Tel (04) 472 7837 or (0800) 261 801, Fax (04) 473 7909.

Retention of Files and Documents

You authorise us (without further reference to you) to destroy all files and documents for this matter (other than any documents that we hold in safe custody for you such as a will) 7 years after our engagement on the particular matter ends, or earlier if we have converted those files and documents to an electronic format.

Duty of Care

Our duty of care is to you and not to any other person. No other person may rely on our advice unless we expressly agree to this in writing.

Trust Account

We maintain a trust account for all funds which we receive from clients (except monies received for payment of our invoices). If we are holding significant funds on your behalf we will normally lodge those funds on interest bearing deposit with a bank. In that case we will charge an administration fee of 5% of the interest derived.

Limitation of Liability

Our liability to you in respect of any breach of contract, tort, breach of statutory duty or otherwise arising out of or in connection with our engagement or the services we provide is limited to a maximum of NZ$4,000,000 in aggregate.

Where we instruct a third party on your behalf we are not responsible for any act or omission of the third party.

Where you are using our services for business purposes you acknowledge that none of the rights or remedies under the Consumer Guarantees Act 1993 apply to this engagement or the services we provide.

General

These Terms apply to any current engagement and also to any future engagement, whether or not we send you another copy of them.

We are entitled to change these Terms from time to time, in which case we will send you amended Terms. The amended Terms will apply from the time sent to you.

Our relationship with you is governed by New Zealand law and the New Zealand courts have non-exclusive jurisdiction.

Your Satisfaction and Feedback

We wish to ensure that we meet your expectations wherever possible and we invite your feedback whether it is good or bad.

Please contact the responsible partner with your feedback.

Date: 2 June 2009