Document:

Exhibit 4.1.2

 

Bond guarantee indemnity deed

 

 

CSR Limited
ABN 90 000 001 276

 

Rinker Group Limited
ABN 53 003 433 118

 

and

 

Rinker Materials Corporation

 

1

 

This bond guarantee
indemnity deed
is made on 27 March 2003 between the following parties:

 

1                                          CSR Limited

ABN 90 000 001 276

of Level 4, 9 Help Street, Chatswood NSW 2067

(CSR)

 

2                                          Rinker Group Limited

ABN 53 003 433 118

of Level 4, 9 Help Street, Chatswood NSW 2067

(RGL)

 

3                                          Rinker Materials Corporation

of 1501 Belvedere Road, West Palm Beach, Florida 33406, USA

(RMC)

 

Recitals

A.                                   At the date of this
deed, RGL is a wholly owned Subsidiary of CSR.

 

B.                                     Subject to
approval of the Scheme, CSR intends to demerge RGL as an independent publicly
listed company with CSR’s shareholders as its initial shareholders (and their
proportionate shareholdings).

 

C.                                     CSR has granted
the Bond Guarantees. As part of the Demerger, RMC is willing to indemnify CSR
in respect of the Bond Guarantees on the terms and conditions of this deed and
RGL is willing to guarantee to CSR RMC’s obligations in relation to such
indemnity.

 

The deed witnesses

 

that in consideration of, among other things, the mutual promises
contained in this deed, the parties agree:

 

Definitions and interpretation

 

1.1                               Definitions

 

In this deed:

 

2004 Bond Guarantee
means the guarantee granted by CSR pursuant to Article 14 of the Indenture
dated 1 March 1994 between Rinker Materials Corporation, CSR and Bank One, N.A.
(formerly The First National Bank of Chicago) to the holders of the 2004 Bonds
in respect of, amongst other things, all payments of principal, premium (if
any) and interest on such 2004 Bonds, as evidenced by CSR’s execution of its
notation of guarantee on such 2004 Bonds.

 

2005 Bond Guarantee
means the guarantee granted by CSR pursuant to Article 14 of the Indenture
dated 21 July 1995 between Rinker Materials Corporation, CSR and Bank One, N.A.
(formerly The First National Bank of Chicago) to the holders of the 2005 Bonds
in respect of, amongst other things, all payments of principal, premium (if
any) and interest on such 2005 Bonds, as evidenced by CSR’s execution of its
notation of guarantee on such 2005 Bonds.

 

2

 

2004 Bonds means the
US$200,000,000 6.875% Notes due 1 March 2004 issued by Rinker Materials
Corporation pursuant to the Indenture dated 1 March 1994 between Rinker
Materials Corporation, CSR and Bank One, N.A. (formerly The First National Bank
of Chicago).

 

2004 Bonds Settlement Date
is the “Settlement Date” for the tender and consent of the 2004 Bonds, as
defined in the 2004 Bonds Tender and Consent Statement.

 

2004 Bonds Tender and Consent Statement
means the Tender Offer and Consent Solicitation, dated 28 February 2003,
related to the tender offer and consent solicitation in respect of the 2004
Bonds, as it may be amended or supplemented from time to time.

 

2004 Bonds Tender Date
is the date by which note holders must tender their bonds under the tender and
consent process for the 2004 Bonds, as provided for in the 2004 Bonds Tender
and Consent Statement.

 

2005 Bonds means the
US$250,000,000 6.875% Notes due 21 July 2005 issued by Rinker Materials
Corporation pursuant to the Indenture dated 21 July 1995 between Rinker
Materials Corporation, CSR and Bank One, N.A. (formerly The First National Bank
of Chicago).

 

2004 Coupon Payment
means the half yearly coupon interest payment to be made by RMC in respect of
the 2004 Bonds being an amount equal to 6.875% of the principal outstanding
under the 2004 Bonds (to be determined on the 2004 Bonds Tender Date following
completion of a tender and consent of the 2004 Bonds) divided by 2.

 

2005 Coupon Payment
means the half yearly coupon interest payment to be made by RMC in respect of
the 2005 Bonds being an amount equal to 6.875% of the principal outstanding
under the 2005 Bonds (i.e. US$250,000,000) divided by 2.

 

Authority means any
public or regulatory body, governmental department (in Australia or any other
jurisdiction), any Royal Commission, Board of Inquiry, Parliamentary Committee
or similar body or any other body exercising statutory, regulatory or
prerogative power.

 

Bond Guarantees
means the 2004 Bond Guarantee and the 2005 Bond Guarantee.

 

Business Day means a
day, not being a Saturday, Sunday or public holiday, on which banks are
generally open for business in Sydney, Melbourne and New York City.

 

Claim means any
legal proceeding (whether civil or criminal), claim, allegation, cause of
action, suit or demand, administrative proceeding, arbitral proceeding,
mediation or other form of alternative dispute resolution (whether or not held
in conjunction with any legal, administrative or arbitral proceedings) or any
investigation or inquiry by any Authority, Government Agency or External
Administrator relating to, involving, arising out of or in any way connected
with any act or omission, or any written or oral threat, complaint, demand,
negotiation, act or omission that might reasonably result in a party
apprehending that any such proceeding, cause of action, suit or demand,
investigation, inquiry or matter might be initiated.

 

Corporations Act
means the Corporations Act 2001 (Cth).

 

Demerger has the
same meaning as in the Scheme.

 

Effective Date has
the same meaning as in the Scheme.

 

3

 

Excluded Tax means a
Tax imposed by any jurisdiction on the net income of CSR but not a Tax:

 

(a)                                  calculated on or by
reference to the gross amount of any payment (without allowance for any
deduction) derived by CSR under this deed; or

 

(b)                                 imposed as a result of
CSR being considered a resident of or organised or doing business in that
jurisdiction solely as a result of it being a party to this deed.

 

Exposure Amount
means the aggregate maximum principal and one half year’s interest exposure of
CSR under the Bond Guarantees in respect of the 2004 Bonds and 2005 Bonds, as
reduced from time to time whether because RMC repays or repurchases the
principal amount of any 2004 Bonds or 2005 Bonds prior to or at the stated maturity
of the 2004 Bonds or 2005 Bonds, or for any other reason.

 

External Administrator
means a liquidator, provisional liquidator, bankruptcy trustee, receiver,
receiver or manager or an administrator.;

 

Financial Assistance
Resolution means the resolution to
be passed under section 260B of the Corporations Act approving the giving of
any financial assistance by RGL in the execution or performance of this deed.

 

Financial Indebtedness
means any indebtedness (other than trade credit in the ordinary course of
business or indebtedness arising out of an acquisition on deferred purchase
terms for no more than 180 days) in respect of moneys borrowed or raised or any
financial accommodation whatsoever including (without limiting the generality
of the foregoing) under or in respect of any bill, acceptance, endorsement
(excluding “deposit only” endorsements on cheques), bond, note, debenture or
other similar debt security, guarantee, redeemable share (where such share is
redeemable prior to the latest date of maturity of the 2004 Bonds and the 2005
Bonds), discounting arrangement, finance or capital lease, hire purchase of any
asset or service, any obligation to deliver goods or provide services paid for
in advance by any financier or in relation to any other financing transaction.

 

Government Agency
means any government or any governmental, semi-governmental, administrative,
regulatory, fiscal or judicial body, department, commission, authority,
tribunal, agency or entity in any part of the world.

 

Indemnified Moneys has
the meaning set out in clause 3.1(a).

 

Liabilities means
all liabilities, costs, losses and damage, however caused and includes:

 

(a)                                  a liability due to
negligence or any other tort;

 

(b)                                 a liability to an
employee or a trade creditor;

 

(c)                                  a liability in
relation to a loan, bank overdraft, trade bill facility, or other Financial
Indebtedness, including any guarantee or indemnity thereof,

 

(d)                                 a judgment debt, fine,
criminal or civil penalty, liability for damages or compensation or to account
for profits or to make restitution;

 

(e)                                  any tax or duty,

 

(f)                                    a fee, charge or
expense for legal (on a solicitor and own client basis), accounting or other
professional services,

 

4

 

irrespective
of whether the liability:

 

(g)                                 is actual,
prospective, contingent or otherwise;

 

(h)                                 is at any time
ascertained or unascertained;

 

(i)                                     is owing or
incurred by or on account of one person alone or severally or jointly with any
other person; or

 

(j)                                     comprises any
combination of (g) to (i) above.

 

Related Party Transaction Resolution
means the resolution to be passed under part 2E.1 of the Corporations Act
approving the giving of any financial benefit to a related party by RGL in the
execution or performance of this deed.

 

Scheme means the
scheme of arrangement under Part 5.1 of the Corporations Act between CSR and
the holders of its ordinary shares as described in the Scheme Booklet.

 

Scheme Booklet means
the booklet as approved by the Court pursuant to section 411(1) of the Corporations
Act and sent to the holders of CSR’s ordinary shares pursuant to section
412(l)(a) of the Corporations Act explaining the Demerger and containing the
explanatory statement in relation to the Scheme.

 

Subsidiary has the
same meaning as in the Corporations Act.

 

Tax means:

 

(a)                                  any tax, levy,
charge, impost, duty, fee, deduction, compulsory loan or withholding; or

 

(b)                                 any income, stamp or
transaction duty, tax or charge,

 

which is assessed, levied, imposed or collected by any Government
Agency and includes, but is not limited to, any interest, fine, penalty,
charge, fee or other amount imposed on, or in respect of, any of the above.

 

1.2                               Interpretation

 

(a)                                  In this deed headings
and bold type are for convenience only and do not affect the interpretation of
this deed and unless the context otherwise requires:

 

(1)                                  words importing the
singular include the plural and vice versa;

 

(2)                                  a reference to one
gender includes all genders;

 

(3)                                  a reference to a
clause, party, annexure, exhibit or schedule is a reference to a clause of, and
a party, annexure, exhibit and schedule to, this deed and a reference to this
deed includes any annexure, exhibit and schedule;

 

(4)                                  a reference to
legislation includes any change to, consolidation or replacement of it, whether
passed by the same or another Government Agency with legal power to do so, and
any delegated legislation or proclamation issued under it;

 

(5)                                  a reference to a
document includes all amendments or supplements to or replacements or novations
of that document;

 

5

 

(6)                                  a reference to a
party to a document includes that party’s executors, administrators, successors
and permitted assigns including any person taking by novation;

 

(7)                                  no provision of this
deed will be construed adversely to a party solely on the ground that the party
was responsible for the preparation of this deed or that provision;

 

(8)                                  a reference to a deed
other than this deed or to an agreement includes an undertaking, deed,
agreement or legally enforceable arrangement or understanding, whether or not
in writing;

 

(9)                                  a reference to “$” or
“dollar” is to Australian currency;

 

(10)                            a reference to “US$” or US
dollar” is to the currency of the United States of America;

 

(11)                            a reference to a “claim”
includes any claim or cause of action and whether made in law, in equity or
under statute;

 

(12)                            a reference to a document
includes any agreement in writing, or any certificate, notice, instrument or
other document of any kind;

 

(b)                                 Where the day on or by
which any thing is to be done is not a Business Day, that thing must be done on
or by the next Business Day.

 

2                                         Condition precedent

 

This deed is conditional upon the passing of the Financial Assistance
Resolution and the Related Party Transaction Resolution, and shall be of no
force or effect until the date that is the later of:

 

(a)                                  15 days after notice
of the passing of the Financial Assistance Resolution has been lodged with the
Australian Securities and Investments Commission under section 260B(6) of the
Corporations Act; and

 

(b)                                 the date on which the
Related Party Transaction Resolution has been passed.

 

3                                         Indemnity and Guarantee

 

3.1                               Indemnity and Letters of Credit

 

(a)                                  RMC unconditionally
and irrevocably indemnifies CSR against any and all Claims and Liabilities
which CSR reasonably suffers, pays, incurs or is liable for in relation to the
Bond Guarantees or this deed (the Indemnified
Moneys).

 

(b)                                 To secure its
obligations under clause 3.1(a) up to an amount not less than the Exposure
Amount, RMC must deliver to CSR letters of credit, substantially in the form of
schedule 1:

 

(1)                                  in respect of the
2005 Bond Guarantee, as soon as reasonably practicable following the Effective
Date and in any event within 3 Business Days following the Effective Date;

 

6

 

(2)                                  in respect of the
2004 Bond Guarantee, as soon as reasonably practicable following the Effective
Date and in any event on or prior to the 2004 Bonds Settlement Date; and

 

(3)                                  in respect of the
Bond Guarantees, a total of at least 13 letters of credit issued in the
following amounts:

 

(A)                              3
letters of credit each in an increment of US$50 million;

 

(B)                                3
letters of credit each in an increment of US$20 million;

 

(C)                                3
letters of credit each in an increment of US$10 million;

 

(D)                               4
letters of credit each in an increment of US$5 million,

 

and such other total of letters of credit necessary to ensure that the
total value of such letters of credit is not less than the maximum aggregate
liability referred to in clause 3.1(c).

 

(c)                                  The maximum aggregate
liability of the issuers of the letters of credit provided to CSR under clause
3.1(b) must not be less than the aggregate of the following:

 

(1)                                  US$258,593,750, being
the maximum principal exposure of CSR under the 2005 Bond Guarantee plus
interest equal to one 2005 Coupon Payment; and

 

(2)                                  an amount equal to
1.034375 times the maximum remaining principal exposure of CSR under the 2004
Bond Guarantee as of the 2004 Bonds Tender Date following completion of the tender
and consent under the 2004 Bonds Tender and Consent Statement (as advised by
the depository agent named in the 2004 Bonds Tender and Consent Statement and
expressed in US dollars), such amount:

 

(A)                              includes
interest equal to one 2004 Coupon Payment;

 

(B)                                is to be calculated by
CSR acting in good faith as of the 2004 Bonds Tender Date following completion
of the tender and consent under the 2004 Tender and Consent Statement and is to
be advised to RMC and RGL as soon as reasonably possible thereafter. 

 

(d)                                 Each letter of credit
provided under this deed must satisfy the following terms:

 

(1)                                  each issuer of a
letter of credit must:

 

(A)                              be one of RMC’s current
letter of credit facility providers as listed in Schedule 3; or

 

(B)                                be a bank of
international standing (in the opinion of CSR acting reasonably) which is able
to have its letters of credit called upon for payment in US dollars to a US$
account upon presentation of the requisite documents to an office of the bank
in Sydney or Melbourne, Australia and which has a minimum issuer rating or
credit rating of its long-term debt of at least A+ from Standard & Poor’s
Corporation (or its  equivalent of
another international  credit rating
agency acceptable to CSR, acting reasonably) or such other rating acceptable to
CSR (acting reasonably) and where the issuer has two or more minimum credit
ratings of its long-term debt, the lower or lowest (as

 

7

 

the case may be) of those ratings shall be used for the purposes of
this clause,

 

provided that:

 

(C)                                such issuer must, at
all times from the date of issue of the relevant letter of credit until the
expiry date of the relevant letter of credit or the date upon which the issuer
is released from the relevant letter of credit (whichever is the earlier), have
a minimum issuer rating or credit rating of its long-term debt of at least A
from Standard & Poor’s Corporation (or its equivalent of another
international credit rating agency acceptable to CSR, acting reasonably) or
such other rating acceptable to CSR (acting reasonably) and where the issuer
has two or more minimum credit ratings of its long-term debt from such
agencies, the lower or lowest (as the case may be) of those ratings shall be
used for the purposes of this clause; and 

 

(D)                               where the issuer rating
or credit rating of such issuer’s long-term debt falls below the minimum rating
required in accordance with clause 3.1(d)(l)(C) (Rating Downgrade), RMC must notify CSR of such Rating
Downgrade as soon as reasonably practicable after becoming aware of such Rating
Downgrade and must use its best endeavours to replace any outstanding letter of
credit issued by such issuer in accordance with clause 3.1(e)(2);

 

(2)                                  the maximum aggregate
liability of each issuer under the letters of credit must not exceed
US$70,000,000 (unless CSR otherwise approves in writing); and

 

(3)                                  the letter of credit
must be available:

 

(a)                                  to be called upon by
presentation of the requisite documents to an office of that letter of credit
provider in Sydney or Melbourne specified in the letter of credit; and

 

(b)                                 for payment to the
relevant US dollar account specified in the demand made under the letter of
credit.

 

(e)

 

(1)                                  Subject to clause
3.1(e)(2), a letter of credit may be replaced by another letter of credit which
meets the requirements of clauses 3.1(b), and 3.1(d), provided that:

 

(A)                              at least 10 Business Days
written advance notice is given to CSR of the issue of such replacement letter
of credit by RMC (Replacement Notice);
and

 

(B)                                CSR shall be obligated
to accept the replacement of any such letter of credit only if CSR, acting
reasonably, is satisfied that RGL and RMC were each solvent as at the time the
Replacement Notice was given by RMC and at the proposed replacement date of the
letter of credit and that neither RGL nor RMC will become insolvent as a result
of such replacement of the letter of credit; and

 

8

 

(C)                                the face value amount
of the replacement of any such letter of credit must be equal to the face value
amount of the letter of credit to be replaced.

 

(2)                                  Where there has been
a Rating Downgrade as set out in 3.1(d)(l)(D), RMC must, within 30 days (or
such longer period as CSR may acting reasonably agree) of giving notice of such
Rating Downgrade to CSR or receiving notice of such Rating Downgrade from CSR
(whichever is the earlier):

 

(A)                              use its best endeavours
to replace any letter of credit outstanding from the issuer who has suffered
the Rating Downgrade with letters of credit which:

 

(i)                                     subject to clause
3.1(d)(2), are issued by any or all of the other issuers who, at the time of
the Rating Downgrade, are current issuers of letters of credit under this deed
(Current Issuers); and

 

(ii)                                  in aggregate, have a
face value amount not less than the aggregate face value amount of any letter
of credit outstanding from the issuer who has suffered the Rating Downgrade,

 

provided that:

 

(iii)                               RMC is not required to
comply with clause 3.1(e)(2)(A)(i) to the extent it would require RMC to procure
replacement letters of credit in increments of less than $10,000,000; or

 

(B)                                where replacement
letters of credit can not be provided in accordance with clause 3.1(e)(2), use
its best endeavours to replace any letter of credit outstanding from the issuer
who has suffered the Rating Downgrade with letters of credit which:

 

(i)                                     are issued by any
or all of the Current Issuers;

 

(ii)                                  in aggregate, have a
face value amount not less than the aggregate face value amount of all letters
of credit outstanding from the issuer who has suffered the Rating Downgrade;
and

 

(iii)                               will effectively
allocate the aggregate face value amount of all letters of credit outstanding
from the issuer who has suffered the Rating Downgrade on a reasonably even
basis to the extent reasonably practicable amongst the Current Issuers,

 

provided that:

 

(iv)                              the maximum aggregate
liability of any Current Issuer under its letters of credit must not exceed
US$150,000,000; and

 

(v)                                 RMC is not required to
comply with clause 3.1(e)(2)(B)(iii) to the extent it would require RMC to
procure replacement letters of credit in increments of less than $10,000,000;
or

 

(C)                                where replacement
letters of credit can not be provided in accordance with clause 3.1(e)(2)(A) or
clause 3.1(e)(2)(B), consult in good faith with CSR to determine an appropriate
method of dealing with the

 

9

 

Rating Downgrade and, if requested by CSR, must use its best endeavours
to replace any letter of credit outstanding from the issuer who has suffered
the Rating Downgrade with letters of credit which:

 

(i)                                     must be
substantially in the form of Schedule 1 and meet the requirements of clause
3.1(d); and

 

(ii)                                  in aggregate, have a
face value amount not less than the aggregate face value amount of any letter
of credit outstanding from the issuer who has suffered the Rating Downgrade.

 

(f)                                    Subject to clause
3.1(g), if at any time the maximum aggregate liability of the issuers of the
letters of credit which CSR holds (the “LC
Coverage Amount”) exceeds the Exposure Amount (whether because RMC
repays or repurchases the principal amount of any 2004 Bonds or 2005 Bonds
prior to or at the stated maturity of the 2004 Bonds or 2005 Bonds, or for any
other reason) by more than US$5 million, then as soon as practicable following
120 days of such repayment or repurchase of the principal amount of any 2004
Bonds or 2005 Bonds by RMC, such repayment or repurchase to be confirmed in
writing by RMC and supported by a certificate of repayment or reduction by the
relevant indenture trustee, CSR must, upon request by RMC or RGL, procure the
return to the relevant issuer or issuers (as the case may be), for cancellation
and, if needed, must accept the replacement by the same issuer of one or more
letters of credit to the extent required to ensure that the LC Coverage Amount
is reduced to the then Exposure Amount or an amount not greater than
US$5,000,000 in excess of the Exposure Amount.

 

(g)                                 Where clause 3.1(f)
would apply because RMC repays or repurchases the principal amount of any 2004
Bonds or 2005 Bonds prior to or at the stated maturity of the 2004 Bonds or
2005 Bonds, CSR must procure (if required by RMC or RGL) the return and, if
needed, must accept the replacement of any letter of credit under clause 3.1(f)
as soon as practicable following 120 days of such repayment or repurchase of
the principal amount of any 2004 Bonds or 2005 Bonds by RMC, as confirmed in
writing by RMC and supported by a certificate of repayment or reduction by the
relevant indenture trustee; provided that CSR shall be obligated to procure
such return of any such letter of credit under clause 3.1(f) only if CSR,
acting reasonably, is satisfied that:

 

(1)                                  RGL and RMC were each
solvent at the time such repayment or repurchase was made by RMC; and

 

(2)                                  neither RGL nor RMC
will become insolvent as a result of such repayment or repurchase having been
made.

 

(h)                                 Where a letter of
credit is to be replaced in accordance with clause 3.1(e) or clause 3.1(f) or
cancelled in accordance with clauses 3.1(f) and 3.1(g), CSR must procure the
return of the relevant letter of credit to the relevant issuer and if required
by RGL or RMC provide that issuer with a completed confirmation of release in
respect of that letter of credit substantially in the form of schedule 2 or
such other form of release as may be agreed between RMC, RGL, CSR and the
issuer, providing that, where a replacement letter of credit is required to be
issued under clause 3.1(e), 3.1(f) or 3.1(g), CSR receives such replacement
prior to or simultaneously upon the return of the relevant letter of credit and
the issue by CSR of the confirmation of release (where required).

 

10

 

(i)                                     RMC must reimburse
CSR for any costs or expenses reasonably incurred in connection with the
cancellation or replacement of a letter of credit under either clause 3.l(e),
3.1(f) or 3.1(g).

 

(j)                                     Receipt of payment
by CSR in relation to a Claim or Liability under a letter of credit satisfies
or reduces (as the case may be) the obligations of RMC and RGL to CSR in
relation to the Claim or Liability under this deed but only to the extent of
the amount of such payment under such letter of credit.

 

(k)                                  CSR must take
reasonable steps to minimise any Liability or Claim for which it is to be
indemnified or reimbursed by RMC or RGL under this deed provided that CSR will
not be obliged by this clause to take any steps which in CSR’s opinion (acting
reasonably):

 

(1)                                  may materially and
adversely affect its business or financial position; or,

 

(2)                                  expose CSR to any
Claims or Liabilities for which it would not be indemnified by RMC, provided
that CSR must provide RMC with a reasonable opportunity to agree to indemnify
CSR for such Claims and Liabilities.

 

3.2                               Demands

 

(a)                                  If CSR pays, suffers,
incurs or is liable for any Indemnified Moneys, RMC must within 3 Business Days
of receiving a demand from CSR, pay to CSR those Indemnified Moneys in the same
manner as those Indemnified Moneys are or were required to be paid by CSR and,
at CSR’s election:

 

(1)                                  in the same currency
as those Indemnified Moneys are or were required to be paid by CSR; or

 

(2)                                  where the Indemnified
Moneys are or were required to be paid by CSR in a currency other than
Australian dollars, in the amount of Australian dollars that is equal to:

 

(A)                              where the Indemnified
Moneys have already been paid by CSR, the amount paid in Australian dollars by
CSR to purchase the relevant currency to pay the Indemnified Moneys; or

 

(B)                                where the Indemnified
Moneys have not yet been paid by CSR, the amount that is required to be paid in
Australian dollars by CSR to purchase the relevant currency to pay the
Indemnified Moneys on the date that the Indemnified Moneys are required to be
paid by CSR (Due Date), based on
the spot rate of exchange for the relevant currency for value on the Due Date
as determined by CSR in accordance with its normal practice.

 

(b)                                 A demand made by CSR
under clause 3.2(a) in relation to any Indemnified Moneys may be made at any
time and from time to time after CSR pays, suffers, incurs or becomes liable
for those Indemnified Moneys. For the avoidance of doubt, RGL and RMC
acknowledge and agree that it is not necessary for CSR to actually pay any
amount or incur any cost or expense in relation to any Indemnified Moneys in
order for CSR to make a demand under this clause 3.2(b) for the amount of the
relevant Indemnified Moneys provided that CSR reasonably believes that a claim
for such amount has been or will be made on it under a Bond Guarantee or that
such cost or expense has been or will be incurred by it.

 

11

 

(c)                                  It is not necessary
for CSR to make a demand under this clause 3.2 before making a demand under a
letter of credit issued in accordance with clause 3.1:

 

(i)                                     provided that CSR
has received a written claim for payment or incurred an actual liability
(provided such liability need not have been paid by CSR) in relation to the
Bond Guarantees; or

 

(ii)                                  in the event of any
bankruptcy, insolvency or liquidation of RMC or RGL and notwithstanding that no
such claims may have been made or liability actually incurred at the time of
such demand or demands by CSR, provided that CSR reasonably believes that a
claim for such amount has been or will be made on it under a Bond Guarantee or
that such liability will be actually incurred.

 

Where paragraph (ii) above applies, CSR may make a demand under any or
all of the letters of credit and, acting reasonably, apply any or all of such
amounts in satisfaction of any Claims made or to be made under the Bond
Guarantees.

 

(d)                                 If:

 

(i)                                     CSR does not in
fact suffer, pay, incur or become liable for the Indemnified Moneys referred to
in clauses 3.2(b) or 3.2(c)(ii); or

 

(ii)                                  a demand is made by
CSR under a letter of credit in relation to the Indemnified Moneys which has
been satisfied by RMC or RGL,

 

CSR must as soon as reasonably practicable refund the relevant payment
made to it by RMC or RGL or the issuer of the letter of credit (as the case may
be) on account of such Indemnified Moneys to such account as RMC or RGL may
reasonably specify less any amount actually incurred by CSR for which it has
not been reimbursed.

 

3.3                               Continuing indemnity

 

This clause 3 is a continuing obligation of RMC, despite:

 

(a)                                  any settlement of
account; or

 

(b)                                 the occurrence of any
other thing,

 

and remains in full force and effect until
all the Indemnified Moneys have been finally paid in full.

 

4.                                      Guarantee

 

4.1                               Guarantee

 

RGL hereby unconditionally and irrevocably guarantees to CSR the due
and punctual payment by RMC of the Indemnified Moneys when and as the same
shall become due and payable, in accordance with the terms of this deed.

 

4.2                               Payment and Obligation

 

(a)                                  If the Indemnified
Moneys are not paid when due, RGL must immediately pay the Indemnified Moneys
in the same manner and currency as the Indemnified Moneys are required to be
paid.

 

12

 

(b)                                 RGL agrees that its
obligations under clause 4.1 and clause 4.2(a) shall be as if it were a
principal debtor and not merely a surety, and shall be absolute and
unconditional, irrespective of, and shall be unaffected by, any invalidity,
irregularity or unenforceability of this deed, any failure to enforce the
provisions of any waiver, modification or indulgence granted to RMC with
respect thereto, by CSR or any other circumstances which may otherwise
constitute a legal or equitable discharge of a surety or guarantor.

 

(c)                                  RGL waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
merger or bankruptcy of RMC, any right to require a proceeding first against
RMC or any other conditions and covenants that its guarantee under this deed
will not be discharged with respect to RMC’s obligations under this deed until
RMC has discharged all of its obligations under this deed.

 

4.3                               Amount of Secured Moneys

 

(a)                                  This clause 4 applies
to any amount which forms part of the Indemnified Moneys from time to time.

 

(b)                                 The obligations of RGL
under this clause 4 extend to any increase in the Indemnified Moneys as a
result of the occurrence of anything.

 

4.4                               Proof

 

In the event of the liquidation of RMC, RGL authorises CSR to prove for
all money which CSR has paid or is or is actually or contingently liable to pay
under the Bond Guarantees or otherwise in respect of the Indemnified Moneys for
which it has not otherwise been reimbursed.

 

4.5                               Avoidance of payments

 

(a)                                  If any payment or
other transaction relating to or affecting the payment of the Indemnified
Moneys is:

 

(1)                                  void, voidable or
unenforceable in whole or in part because of illegality or legal disability on
the part of RMC or RGL; or

 

(2)                                  claimed to be void,
voidable or unenforceable on account of illegality or legal disability on the
part of RMC or RGL and that claim is upheld, conceded or compromised in whole
or in part,

 

the liability of RGL under this clause 4 is
the same as if:

 

(3)                                  that payment or
transaction (or the void, voidable or unenforceable part of it); and

 

(4)                                  any release,
settlement or discharge made in reliance on any thing referred to in clause
4.5(3),

 

had not been made.

 

(b)                                 Clause 4.5(a) applies
whether or not RGL knew, or ought to have known, of anything referred to in
clause 4.5(a).

 

4.6                               Non-exercise of Guarantors’ rights

 

RGL Guarantor must not exercise any rights it may have inconsistent
with this clause 4.

 

13

 

4.7                               Unconditional nature of obligations

 

(a)                                  The obligations of
RGL under clause 4.1 are not released or discharged or otherwise affected by
anything which but for this provision might have that effect, including without
limiting the generality of the foregoing:

 

(1)                                  the grant to RMC or
RGL of any time, waiver, covenant not to sue or other indulgence;

 

(2)                                  the release
(including a release as part of any novation) or discharge of RMC or RGL;

 

(3)                                  the cessation of the
obligations, in whole or in part, of RMC under this deed or any other document
or agreement;

 

(4)                                  the liquidation of
RMC or RGL;

 

(5)                                  any arrangement,
composition or compromise entered into by RMC or RGL, CSR or any other person;

 

(6)                                  this deed or any
other document or agreement being in whole or in part illegal, void, voidable,
avoided, unenforceable or otherwise of limited force or effect;

 

(7)                                  any extinguishment,
failure, loss, release, discharge, abandonment, impairment, compounding,
composition or compromise, in whole or in part of this deed or any other
document or agreement;

 

(8)                                  any collateral
security being given to CSR by any other person;

 

(9)                                  any moratorium;

 

(10)                            CSR exercising or enforcing,
delaying or refraining from exercising or enforcing, or being not entitled or
unable to exercise or enforce any right under this deed;

 

(11)                            CSR obtaining a judgment
against RMC for the payment of any of the Indemnified Moneys;

 

(12)                            any payment to CSR including
any payment which at the payment date or at any time after the payment date is
in whole or in part illegal, void, voidable, avoided or unenforceable;

 

(13)                            any failure to give
effective notice to RMC or RGL or any other person of any default under this
deed or any other document or agreement;

 

(14)                            any legal limitation,
disability or incapacity of RMC;

 

(15)                            any Indemnified Moneys
being irrecoverable for any reason;

 

(16)                            any disclaimer by RMC of
this deed or any other document or agreement;

 

(17)                            any assignment or other
dealing by CSR with any rights under this deed or any other document or
agreement;

 

(18)                            the receipt by CSR of any
dividend, distribution or other payment in respect of any liquidation.

 

(b)                                 Clause 4.7(a) applies
irrespective of:

 

(1)                                  the consent or
knowledge or lack of consent or knowledge, of RMC or RGL or any other person of
any event described in clause 4.7(a); or

 

(2)                                  any rule of law or
equity to the contrary.

 

14

 

4.8                               No competition

 

RGL shall be subrogated to all rights of CSR against RMC in respect of
any amounts paid to CSR pursuant to the provisions of its guarantee under this
deed; provided, however, that RGL
shall not be entitled to enforce, or to receive any payments arising out of or
based upon, such right of subrogation until all obligations of RMC under this
deed have been fully and finally discharged in accordance with the terms of
this deed.

 

4.9                               Continuing guarantee

 

This clause 4 is a continuing obligation of RGL, despite:

 

(a)                                  any
settlement of account; or

 

(b)                                 the
occurrence of any other thing,

 

and remains in full force and effect until all the Indemnified Moneys
have been paid in full. 

 

5                                         Information

 

5.1                               RGL and RMC information

 

RGL and RMC must:

 

(a)                                  within one Business
Day after committing any default in payment of principal, premium (if any) or
any other amount other than interest under or in respect of the 2004 Bonds or
the 2005 Bonds;

 

(b)                                 within five Business
Day after committing any default in payment of interest under or in respect of
the 2004 Bonds or the 2005 Bonds; or

 

(c)                                  upon becoming aware
of circumstances which do or might reasonably give rise to an event of default
under the 2004 Bonds or the 2005 Bonds (without regard to any period of grace
or requirement of notice provided for in the relevant Indenture for the 2004
Bonds or the 2005 Bonds),

 

give CSR notice in writing of such continuing default, and must
promptly provide CSR with such other information concerning the default that
CSR reasonably requests provided that where RGL or RMC (as the case may be)
notifies CSR that the provision of such information will, in the reasonable
opinion of RGL or RMC (as the case may be), result in the breach of a
confidentiality obligation or a legal obligation, then RGL or RMC (as the case
may be) will not be obliged to provide such information unless the parties can
come to an arrangement pursuant to which the information can be provided
without resulting in a breach, including but not limited to:

 

(a)                                  CSR providing an
undertaking as to confidentiality; or

 

(b)                                 CSR providing an
undertaking as to the permitted use of such information 

 

5.2                               CSR information

 

CSR must, within one Business Day of receiving or suffering any demand
or other Liability under or in respect of the 2004 Bond Guarantee or 2005 Bond
Guarantee (other than a demand brought or made by RGL or RMC), give each of RGL
and RMC notice in writing of such demand, and must promptly provide RGL and RMC
with such other information concerning the demand that RGL or RMC reasonably
requests provided that where CSR notifies RGL and RMC that the provision of
such information will, in the reasonable

 

15

 

opinion of CSR, result in the breach of a confidentiality obligation or
a legal obligation, then CSR will not be obliged to provide such information
unless the parties can come to an arrangement pursuant to which the information
can be provided without resulting in a breach, including but not limited to:

 

(a)                                  RGL and RMC providing
an undertaking as to confidentiality; or

 

(b)                                 RGL and RMC providing
an undertaking as to the permitted use of such information.

 

6                                         Payments

 

6.1                               Manner of payment

 

All payments to CSR under this deed must be made:

 

(a)                                  in same day funds;

 

(b)                                 in the relevant
currency;

 

(c)                                  not later than 11.00
am (New York City time (in the case of US dollars)) or, where payment is to be
made in dollars on account of costs or expenses comprised in the Indemnified
Moneys and incurred in dollars, no later 11.00 am (Sydney time) on the due date
for payment under this deed; and

 

(d)                                 to such account in New
York City or Sydney (as the case may be) specified by CSR from time to time,

 

or in such other manner as the parties agree
from time to time. 

 

6.2                               No withholding or deduction

 

(a)                                  All payments which
RGL or RMC are required to make under this deed must be made without any
deduction or withholding for any Tax or any other amount, unless, and without
limiting the operation of clause 6.2(b), RGL or RMC is required to make a
deduction or withholding by applicable law.

 

(b)                                 If:

 

(1)                                  RGL or RMC is
required to make a deduction or withholding in respect of any Tax (other than
an Excluded Tax) from any payment it is required to make under this deed; or

 

(2)                                  CSR acting reasonably
is required to pay any Tax (other than an Excluded Tax) in respect of any
payment made by RGL or RMC under this deed, then RGL or RMC (as the case may
be) must:

 

(3)                                  indemnify CSR against
that Tax (unless it has already been indemnified for that amount by a payment
under another provision of this deed); and 

 

(4)                                  must pay to CSR an
additional amount which CSR reasonably determines to be necessary to ensure
that CSR receives when due a net amount (after payment of any Tax (other than
an Excluded Tax) in respect of each additional amount) that is equal to the
full amount it would have received had a deduction or withholding or payment of
that Tax not been made.

 

16

 

(c)                                  If RGL or RMC is
required to make a deduction or withholding in respect of Tax (other than an
Excluded Tax) from any payment to be made by it under this deed, then:

 

(1)                                  RGL or RMC (as the
case may be) must pay the amount deducted or withheld to the appropriate
Government Agency as required by applicable law; and

 

(2)                                  RGL or RMC (as the
case may be) must use its best endeavours to obtain official receipts or other
documentation from that Government Agency and, within 10 Business Days after
receipt, RGL must deliver them to CSR.

 

6.3                               Avoidance of payments

 

If any payment by RGL or RMC to CSR under this deed is at any time
avoided for any reason including, but not limited to, any legal limitation,
disability, incapacity, insolvency or bankruptcy of or affecting RGL or RMC or
any other thing, and whether or not:

 

(a)                                  any transaction
relating to the amount owing by RGL or RMC was illegal, void or substantially
avoided; or

 

(b)                                 any thing was or ought
to have been within the knowledge of CSR,

 

RGL and RMC each :

 

(c)                                  acknowledge for
itself that any liability of RGL or RMC and any right or remedy of CSR under
this deed, is not discharged or satisfied and is the same as if that payment
had not been made; and

 

(d)                                 as an additional,
separate and independent obligation, severally indemnify CSR against loss suffered
resulting from that avoided payment.

 

7                                         General

 

7.1                               Notices

 

(a)                                  Any notice or other
communication including, but not limited to, any request, demand, consent or
approval, to or by a party to this deed:

 

(1)                                  must be in legible
writing and in English addressed as shown below:

 

(A)                              if to CSR:

 

Address:                                               Level 1

 

9 Help Street Chatswood NSW 2067

 

Attention:                                         The Company
Secretary

 

Facsimile:                                            +61 2 9235
8055; and

 

(B)                                if to RGL (on or before
30 April 2003):

 

Address:                                               Level 6

 

9 Help Street Chatswood NSW 2067

 

17

 

Attention:                                         The Company
Secretary

 

Facsimile:                                            +612 9235
8055,

 

(C)                                if to RGL (after 30
April 2003):

 

Address:                                               Level 8
Tower B

 

799 Pacific Highway Chatswood NSW 2067

 

Attention:                                         The Company
Secretary

 

Facsimile:                                            +61 2 9412
6666,

 

(D)                               if to RMC:

 

Address:                                               1501
Belvedere Road West Palm Beach Florida

33406, USA

 

Attention:                                         Chief
Financial Officer

 

Facsimile:                                            +1 (561)
820 8330,

 

or as specified to the sender by any party by
notice;

 

(2)                                  must be signed by the
sender (if a natural person) or an officer or under the common seal of the
sender (if a corporation);

 

(3)                                  is regarded as being
given by the sender and received by the addressee:

 

(A)                              if by delivery in person,
when delivered to the addressee at such address;

(B)                                if by facsimile
transmission, on receipt by the sender of a transmission report confirming the
correct number of pages as having been transmitted,

 

but if the delivery or receipt is on a day which is not a Business Day
or is after 5.00 p.m. (addressee’s time) it is regarded as received at 9.00 am
on the following Business Day: and

 

(4)                                  can be relied upon by
the addressee and the addressee is not liable to any other person for any
consequences of that reliance if the addressee believes it to be genuine,
correct and authorised by the sender.

 

(b)                                 In this clause 6.1, a
reference to an addressee includes a reference to an addressee’s officers,
agents or employees or any person reasonably believed by the sender to be an
officer, agent or employee of the addressee.

 

7.2                               Governing law and jurisdiction

 

(a)                                  This deed is governed
by the laws of New South Wales, Australia.

 

(b)                                 Each of the parties
irrevocably submits to the non-exclusive jurisdiction of the courts of New
South Wales, Australia.

 

18

 

(c)                                  RMC irrevocably
authorises and appoints RGL at its address for notices under this deed or such
other person resident in New South Wales as RMC may by notice to CSR
substitute, as its agent for service of process in relation to proceedings in
the courts of New South Wales in connection with this deed.

 

7.3                               Prohibition and enforceability

 

(a)                                  Any provision of, or
the application of any provision of, this deed or any right, power, authority,
discretion or remedy which is prohibited in any jurisdiction is, in that
jurisdiction, ineffective only to the extent of that prohibition.

 

(b)                                 Any provision of, or
the application of any provision of, this deed which is void, illegal or
unenforceable in any jurisdiction does not affect the validity, legality or
enforceability of that provision in any other jurisdiction or of the remaining
provisions in that or any other jurisdiction.

 

(c)                                  Where any clause of
this deed is void, illegal or unenforceable, it may be severed without affecting
the legality, validity and enforceability of the other provisions in this deed.

 

7.4                               Waivers

 

(a)                                  Waiver of any right
arising from a breach of this deed or of any right, power, authority,
discretion or remedy arising upon default under this deed must be in writing
and signed by the party granting the waiver.

 

(b)                                 A failure or delay in
exercise, or partial exercise, of: 

 

(1)                                  a right arising from
a breach of this deed; or

 

(2)                                  a right, power,
authority, discretion or remedy created or arising upon default under this
deed,

does not result in a waiver of that right,
power, authority, discretion or remedy.

 

(c)                                  A party is not
entitled to rely on a delay in the exercise or non-exercise of a right, power,
authority, discretion or remedy arising from a breach of this deed or on a
default under this deed as constituting a waiver of that right, power,
authority, discretion or remedy.

 

(d)                                 A party may not rely
on any conduct of another party as a defence to exercise of a right, power,
authority, discretion or remedy by that other party.

 

(e)                                  This clause may not
itself be waived except by writing.

 

7.5                               Variation

 

A variation of any term of this deed must be
in writing and signed by the parties.

 

7.6                               Costs and expenses

 

Each party must pay its own legal costs and expenses in relation to the
negotiation, preparation, completion and stamping of this deed.

 

19

 

7.7                               Cumulative rights

 

The rights, powers, authorities, discretions and remedies arising out
of or under this deed are cumulative and do not exclude any other right, power,
authority, discretion or remedy of a party to it.

 

7.8                               Assignment

 

Rights arising out of or under this deed cannot be assigned, novated or
otherwise transferred by a party without the prior written consent of each
other party.

 

7.9                               Further assurances

 

Notwithstanding any other clause of this deed, each party must promptly
do all things and execute and deliver all further documents necessary to give
full effect to this deed, including, negotiating in good faith with respect to
any matters requested by any of the parties to this deed.

 

7.10                        Entire agreement

 

This deed supersedes all previous agreements in relation to its subject
matter and embodies the entire agreement between the parties.

 

7.11                        Counterparts

 

(a)                                  This deed may be
executed in any number of counterparts.

 

(b)                                 All counterparts,
taken together, constitute one instrument.

 

(c)                                  A party may execute
this deed by signing any counterpart.

 

7.12                        To the extent not excluded by law

 

The rights, duties and remedies granted or imposed under the provisions
of this deed operate to the extent not excluded by law.

 

7.13                        Attorneys

 

Each of the attorneys executing this deed states that the attorney has
no notice of the revocation of the power of attorney appointing that attorney.

 

7.14                        Expiration of obligations

 

The obligations of each of the parties under this deed shall expire and
cease to be of any further effect, and no party shall have any liability to any
other party under this deed, upon the later to occur of:

 

(a)                                  the date falling 120
days after the date that the indenture pursuant to which the 2004 Bonds were
issued has been satisfied and discharged in accordance with the terms of that
Indenture;

 

(b)                                 the date falling 120
days after the indenture pursuant to which the 2005 Bonds were issued has been
satisfied and discharged in accordance with the terms of that Indenture; and

 

(c)                                  the date that any and
all amounts due and owing to CSR in respect of any Indemnified Moneys
(including, for the avoidance of doubt, any amounts due and

 

20

 

owing to CSR under clause 6.2 of this deed) for which a claim has been
made prior to the later of the dates in paragraphs (a) and (b) above, have been
paid in full to CSR by or on behalf of RMC or RGL pursuant to and in accordance
with the terms of this deed.

 

21

 

Schedule 1 - Form of letter of credit

 

[Date]

 

	
  To:

  	
  CSR Limited

  
	
   

  	
  Level 2, 9 Help Street

  
	
   

  	
   

  
	
   

  	
  Chatswood NSW 2067 AUSTRALIA

  

 

We [name] (“Lender”) issue
an irrevocable Letter of Credit as follows:

 

Rinker Materials Corporation Irrevocable

 

Standby Letter of Credit No.
[         ] Dated
[          ]

 

(Letter of Credit)

 

	
  Account Party:

  	
   

  	
  Rinker Materials Corporation

  
	
   

  	
   

  	
   

  
	
  Beneficiary:

  	
   

  	
  CSR Limited (ABN 90 000 001 276)

  
	
   

  	
   

  	
   

  
	
  Maximum Liability:

  	
   

  	
  US$[                 ]
  (as may be reduced from time to time by payment(s) made by the Lender under
  this Letter of Credit)

  
	
   

  	
   

  	
   

  
	
  Expiry Date:

  	
   

  	
  [insert expiry date] [i.e. 29 June 2004 in respect of the 2004 Bonds
  and 12 November 2005 in respect of the 2005 Bonds.]

  
	
   

  	
   

  	
   

  
	
  Available at:

  	
   

  	
  [insert Letter of Credit Address] (the Letter of Credit Address)

  
	
   

  	
   

  	
   

  
	
  Payable at:

  	
   

  	
  Sight

  
	
   

  	
   

  	
   

  
	
  Enfaced:

  	
   

  	
  Drawn under Irrevocable Standby Letter of Credit No. [  ]
  dated

  
	
   

  	
   

  	
   

  
	
  Issued in connection with:

  	
   

  	
  Bond guarantee indemnity deed dated
  [        ] March 2003 between the
  Beneficiary, the Account Party and Rinker Group Limited (“Indemnity Deed”)

  

 

To claim under this Letter of Credit, the following items must be
delivered to the Lender at the Letter of Credit Address stated above on a day
when banks are open for banking business in the place of the Letter of Credit
Address) on or before the Expiry Date:

 

(a)                                  a demand for payment
by the Lender under this Letter of Credit; and

 

(b)                                 a certificate signed
by any two of a director, attorney, secretary or other authorised officer of
the Beneficiary or under the seal of the Beneficiary which must:

 

(i)                                     state that the
demand by the Beneficiary is given under Irrevocable Standby Letter of Credit
No. [insert] dated [insert]; and

 

(ii)                                  state that:

 

(A)                              the Beneficiary has
received a written claim for payment or incurred an actual liability in
relation to the Bond Guarantees that are the subject of the Indemnity Deed; or

 

(B)                                the Beneficiary is
entitled to make the demand under clause 3.2(c)(ii) of the Indemnity Deed; and

 

22

 

(iii)                               where paragraph
(b)(ii)(A) above applies:

 

(A)                              state the amount of the
claim or liability which has not been paid (“Default
Sum”); and

 

(B)                                request the Lender to
pay to the Beneficiary the Default Sum or the Maximum Liability (whichever is
the lesser) to the US$ account nominated in writing in the certificate; and

 

(C)                                state that the
aggregate of all amounts claimed under this Letter of Credit and any other
Letters of Credit issued in favour of the Beneficiary pursuant to the Indemnity
Deed in connection with the Default Sum does not exceed the Default Sum;

 

(iv)                              where paragraph
(b)(ii)(B) applies, request the Lender to pay to the Beneficiary the Maximum
Liability to the US$ account nominated in writing in the certificate.

 

For the avoidance of doubt, there is no obligation on the Lender to
verify the validity or justification of the demand or the amounts claimed under
the demand.

 

If the Beneficiary requires same day value on the date of presentation,
the items must be delivered by 12 noon (in the place of the Letter of Credit
Address). For the avoidance of doubt, if the date of presentation is not a day
on which banks are open for banking business in the place where payment is to
be made to the nominated US$ account, payment shall be made on the next
succeeding day on which banks are so open in that place.

 

The Maximum Liability under this Letter of Credit automatically reduces
by the amount of all payments made by the Lender under it.

 

This Letter of Credit will expire on the Expiry Date and claims, if
any, must be made and received by the Lender at the Letter of Credit Address on
or before 5pm (Sydney time) on the Expiry Date. Thereafter this Letter of
Credit shall automatically become null and void at the Expiry Date or earlier
if returned to the Lender for cancellation.

 

The Beneficiary may not assign or transfer any of its rights or
obligations under this Letter of Credit No. [   ].

 

This Letter of Credit is subject to the Uniform Customs and Practice
for Documentary Credits (1993 Revision) International Chamber of Commerce
Publication No. 500, or any subsequent revision of it.

 

 

The Lender engages with the Beneficiary that a demand made under and in
compliance with the terms of this Letter of Credit will be honoured in
accordance with its terms.

 

For and on behalf of [Lender]

 

Name of Authorised Officer

 

23

 

Schedule 2 - Form of release

 

[Date]

 

	
  To:

  	
  [insert Lender]

  
	
   

  	
  [insert Lender Address]

  
	
   

  	
   

  
	
  Copy to:

  	
  [Letter of Credit Address]

  
	
   

  	
   

  
	
  From:

  	
  CSR Limited

  
	
   

  	
  Level 6

  
	
   

  	
  9 Help Street

  
	
   

  	
  Chatswood NSW 2067

  
	
   

  	
  AUSTRALIA

  
	
   

  	
   

  
	
  Copy to:

  	
  Rinker Materials Corporation

  
	
   

  	
  1501 Belvedere Road

  
	
   

  	
  West Palm Beach

  
	
   

  	
  Florida 33406, USA

  
	
   

  	
   

  
	
  Copy to:

  	
  Rinker Group Limited

  	
   

  
	
   

  	
  on or before 30 April 2003:

  	
  or after 30 April 2003:

  
	
   

  	
  Level 6

  	
  Level 8, Tower B

  
	
   

  	
  9 Help Street

  	
  Citadel Towers

  
	
   

  	
  Chatswood NSW 2067

  	
  799 Pacific Highway

  
	
   

  	
  AUSTRALIA

  	
  Chatswood NSW 2067

  
	
   

  	
   

  	
  AUSTRALIA

  

 

 

Rinker Materials Corporation

 

Irrevocable Standby Letter of Credit No.
[  ]

 

Dated
[          ]

 

We give notice to the Lender that we as Beneficiary under the Letter of
Credit:

 

(a)                                  return the enclosed
Letter of Credit to the Lender; and

 

(b)                                 release the Lender
from all liability under the Letter of Credit on and from the date on which
this notice is received by the Lender.

 

 

Yours faithfully

 

24

 

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attorney / Director / Secretary / Authorised

  Officer of the Beneficiary

  	
   

  	
  Attorney / Director / Secretary / Authorised

  Officer of the Beneficiary

  	
   

  

 

25

 

Schedule 3 - List of RMC’s current letter of
credit facility providers

 

•                                          ABN
AMRO Bank N.V.

 

•                                          Australia
& New Zealand Banking Group Limited

 

•                                          Bank
One N.A.

 

•                                          BNP
Paribus

 

•                                          Credit
Suisse First Boston

 

•                                          National
Australia Bank Limited

 

26

 

Executed as deed:

 

 

Executed as a deed:

 

	
  Signed sealed and delivered
  for

  CSR Limited by its attorneys in
  the

  presence of:

  	
   

  	
  CSR Limited by its
  Attorneys who respectively state that at the date of their execution hereof
  they have had no notice of the revocation of the Power of Attorney dated 9
  September 1999 registered number 229 book 4253 under the authority of which
  they have executed this instrument

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  /s/ G.F. Pettigrew

  	
   

  
	
  Witness

  	
   

  	
  Attorney

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  G.F. PETTIGREW

  	
   

  
	
  Name (please print)

  	
   

  	
  Name (please print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ A.B. Carlton

  	
   

  
	
   

  	
   

  	
  Attorney

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.B. Carlton

  	
   

  
	
   

  	
   

  	
  Name (please print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed sealed and delivered for

  Rinker Materials Corporation by

  its duly authorized signatories in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ David Edward Miller

  	
   

  	
   

  	
  /s/ T.G. Burmeister

  	
   

  
	
  Witness

  	
   

  	
  Authorised signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ DAVID EDWARD MILLER

  	
   

  	
   

  	
   

  	
   

  
	
  Name of Witness

  	
   

  	
  Authorised signatory

  

 

27

 

	
  Signed sealed and delivered
  for

  Rinker Group Limited by its

  Attorneys

  	
   

  	
  Rinker Group Limited
  by its Attorneys who respectively state that at the date of their execution
  hereof they have had no notice of the revocation of the Power of Attorney
  dated 26 March 2003 under the authority of which they have executed this
  instrument

  
	
  PETER BROOKING ABRAHAM

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
  FRAZER BRIAN GILL

  	
   

  	
   

  
	
  in my presence as:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert G. McIlwraith

  	
   

  	
   

  	
  /s/ Peter Brooking Abraham

  	
   

  
	
  Witness

  	
   

  	
  Attorney

  
	
   

  	
   

  	
   

  
	
  Robert G. McIlwraith

  	
   

  	
   

  	
  /s/ F.B. Gill

  	
   

  
	
  Name (Please print)

  	
   

  	
  Attorney

  

 

28Exhibit 4.1.3

 

Transition
and Shared Services

Agreement

 

CSR
Limited
ABN 90 000 001 276

 

and

 

Rinker
Group Limited
ABN 53 003 433 118

 

 

Table
of contents

 

Clause

 

	
  1

  	
  Definitions and interpretation

  
	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Interpretation

  
	
   

  	
  1.3

  	
  Precedence of documents

  
	
   

  	
  1.4

  	
  Beneficial interest

  
	
   

  	
   

  	
   

  
	
  2

  	
  Term

  
	
   

  	
   

  
	
  3

  	
  Provision of Services

  
	
   

  	
   

  
	
  4

  	
  RGL Group’s and CSR Group’s obligations

  
	
   

  	
   

  
	
   

  	
  4.1

  	
  RGL Group’s responsibilities

  
	
   

  	
  4.2

  	
  CSR Group’s responsibilities

  
	
   

  	
   

  	
   

  
	
  5

  	
  Variation of and additional Services

  
	
   

  	
   

  
	
   

  	
  5.1

  	
  Additional Services

  
	
   

  	
  5.2

  	
  Variation
  request

  
	
   

  	
  5.3

  	
  No obligation to vary

  
	
   

  	
  5.4

  	
  Variations to IT infrastructure and Service
  delivery

  
	
   

  	
   

  	
   

  
	
  6

  	
  [This part
  has been deleted]

  
	
   

  	
   

  
	
  7

  	
  Sub-contracting

  
	
   

  	
   

  
	
  8

  	
  Payment

  
	
   

  	
   

  
	
   

  	
  8.1

  	
  Charges

  
	
   

  	
  8.2

  	
  Invoicing and payment

  
	
   

  	
  8.3

  	
  Adjustment to Charges

  
	
   

  	
  8.4

  	
  Disputed
  Charges

  
	
   

  	
   

  	
   

  
	
  9

  	
  Dispute Resolution

  
	
   

  	
   

  
	
  10

  	
  Confidentiality and disclosure of
  information

  
	
   

  	
   

  
	
   

  	
  10.1

  	
  Confidentiality

  
	
   

  	
  10.2

  	
  Permitted disclosure

  
	
   

  	
  10.3

  	
  Third party disclosure

  
	
   

  	
  10.4

  	
  Return or destruction of Confidential
  Information

  
	
   

  	
  10.5

  	
  No obligation to provide Confidential
  Information

  
	
   

  	
  10.6

  	
  Privacy

  
	
   

  	
  10.7

  	
  Survival of clause

  

 

1

 

	
  11

  	
  No
  warranties

  
	
   

  	
   

  
	
  12

  	
  Limitation of liability

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Limitation of liability

  
	
   

  	
  12.2

  	
  Trade Practices Act

  
	
   

  	
  12.3

  	
  Right of recovery against a third party

  
	
   

  	
  12.4

  	
  Force
  Majeure

  
	
   

  	
  12.5

  	
  Insurance

  
	
   

  	
   

  	
   

  
	
  13

  	
  Copyright and CSR Trade Mark Licence

  
	
   

  	
   

  
	
   

  	
  13.1

  	
  Copyright Licences

  
	
   

  	
  13.2

  	
  Trade Mark Licences

  
	
   

  	
   

  	
   

  
	
  14

  	
  Assistance on cessation

  
	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  Principles of cessation

  
	
   

  	
  14.2

  	
  Grant
  of licence

  
	
   

  	
   

  	
   

  
	
  15

  	
  Termination

  
	
   

  	
   

  	
   

  
	
   

  	
  15.1

  	
  Termination Events

  
	
   

  	
  15.2

  	
  Effect of Termination Event

  
	
   

  	
  15.3

  	
  Termination for convenience

  
	
   

  	
  15.4

  	
  Termination of a Service Schedule

  
	
   

  	
  15.5

  	
  Termination where scheme of arrangement or
  change of control

  
	
   

  	
   

  	
   

  
	
  16

  	
  General

  
	
   

  	
   

  	
   

  
	
   

  	
  16.1

  	
  Notices

  
	
   

  	
  16.2

  	
  Governing law and jurisdiction

  
	
   

  	
  16.3

  	
  Further assurances

  
	
   

  	
  16.4

  	
  Variation

  
	
   

  	
  16.5

  	
  Merger

  
	
   

  	
  16.6

  	
  Assignment

  
	
   

  	
  16.7

  	
  Consents

  
	
   

  	
  16.8

  	
  Waivers

  
	
   

  	
  16.9

  	
  Costs and expenses

  
	
   

  	
  16.10

  	
  No representation or reliance

  
	
   

  	
  16.11

  	
  Entire
  Agreement

  
	
   

  	
  16.12

  	
  Cumulative
  rights

  
	
   

  	
  16.13

  	
  Prohibition and enforceability

  
	
   

  	
  16.14

  	
  To the extent not excluded by law

  
	
   

  	
   

  	
   

  
	
  17

  	
  GST

  
	
   

  	
   

  
	
  Schedule
  1 – Agreed Service Schedule

  

 

2

 

	
  1

  	
  CSR BSC: Processing of AP invoices for RGL

  
	
   

  	
   

  
	
  2

  	
  CSR BSC: Gateway Transmissions to Westpac

  
	
   

  	
   

  
	
  3

  	
  CSR BSC: Leaseplan administration

  
	
   

  	
   

  
	
  4

  	
  CSR HR: BSC CHRIS system

  
	
   

  	
   

  
	
  5

  	
  CSR HR: Transitional support services

  
	
   

  	
   

  
	
  6

  	
  CSR HR: Share and Option Plans

  
	
   

  	
   

  
	
  7

  	
  CSR HR: Vehicle Administration

  
	
   

  	
   

  
	
  8

  	
  CSR HR: CHRIS system – Workers’
  Compensation

  
	
   

  	
   

  
	
  9

  	
  CSR Workers Compensation: administration
  assistance Yarraville.

  
	
   

  	
   

  
	
  10

  	
  CSR Workers Compensation: Claims Advisor
  Queensland

  
	
   

  	
   

  
	
  11

  	
  CSR Procurement: Telstra Contract
  Negotiations

  
	
   

  	
   

  
	
  12

  	
  CSR FRG: Transitional accounting and
  reporting assistance

  
	
   

  	
   

  
	
  13

  	
  CSR Taxation: Cross training in tax
  processes

  
	
   

  	
   

  
	
  14

  	
  CSR Treasury: Treasury services

  
	
   

  	
   

  
	
  15

  	
  CSR Treasury: Vehicle Finance support

  
	
   

  	
   

  
	
  16

  	
  CSR Strategy: Advice

  
	
   

  	
   

  
	
  17

  	
  CSR Property: Rent 9 Help Street Chatswood

  
	
   

  	
   

  
	
  18

  	
  Corporate functions other

  
	
   

  	
   

  
	
  19

  	
  CSR BIS: Tier 1 Help Desk

  
	
   

  	
   

  
	
  20

  	
  CSR BIS: PC and Desktop Support

  
	
   

  	
   

  
	
  21

  	
  CSR BIS: NT Server Support

  
	
   

  	
   

  
	
  22

  	
  CSR
  BIS: Email

  

 

3

 

	
  23

  	
  CSR BIS: Wide Area Network Support

  
	
   

  	
   

  
	
  24

  	
  CSR BIS: E-Commerce

  
	
   

  	
   

  
	
  25 

  	
  CSR BIS: Voice Services 

  
	
   

  	
   

  
	
  26

  	
  CSR BIS: SAP and Command / ACS data centre
  and support

  
	
   

  	
   

  
	
  27

  	
  CSR BIS: Miscellaneous Applications Support

  
	
   

  	
   

  
	
  28

  	
  CSR BIS: Miscellaneous Support

  
	
   

  	
   

  
	
  Schedule 2 – Agreed Service Schedule

  

 

4

 

This
transition and shared services agreement

 

is made on 27
March 2003 between the following parties:

 

1                                         CSR
Limited ABN 90 000 001 276

of Level 1, 9 Help Street, Chatswood NSW 2067 (CSR)

 

2                                         Rinker
Group Limited ABN 53 003 433 118

of Level 4, 9 Help Street, Chatswood NSW 2067 (RGL)

Recitals

 

A.                                   RGL Group Members
receive from CSR Group Members certain services and access to software,
information technology and communications infrastructure, property and other
facilities and infrastructure in connection with the RGLA Businesses.

 

B.                                     The CSR Group has
agreed to continue making such services and access available to the RGL Group
during the Term to assist the RGL Group to transition away from the services
and access provided by the CSR Group to the RGLA Businesses.

 

C.                                     The
CSR Group and the RGL Group have agreed

 

(a)                                  to
assist each other with giving effect to the Demerger and the maintenance of
their corporate memories and to share relevant experience and

 

(b)                                 to
license each other to use copyright in their works to carry on their business
operations 

 

and CSR has agreed to licence to the RGL Group in Australia the right
temporarily to continue to display the CSR Trade Mark in its signage in
connection with the RGLA Businesses to enable the RGL Group to remove it in an
orderly manner.

 

The
parties agree

 

in consideration of, among
other things, the mutual promises contained in this Agreement:

 

1          Definitions and interpretation

 

1.1                               Definitions

 

In this Agreement the following terms have the following meanings:

 

Agreement means this
agreement including all Service Schedules.

 

Business Day means a
day (not being a Saturday, Sunday or public holiday) in Sydney.

 

Charges mean the
fees payable for the Services pursuant to clause 8.

 

Claim has the
meaning given in the Demerger Deed.

 

5

 

Commencement Date
means the commencement of the month immediately following the month in which
the Effective Date occurs or such other date as is agreed by CSR and RGL.

 

Confidential information
means confidential information, trade secrets, know-how, scientific, technical,
product, market or pricing information which is confidential to the RGL Group
or the CSR Group, other than Excluded Information.

 

Contract Manager
means the representative of each Party specified in the relevant Service
Schedule.

 

CSR Group means CSR
and each of its Subsidiaries at the relevant time (excluding any RGL Group
Members at the relevant time) each a CSR
Group Member.

 

CSR Trade Mark means
“CSR” in whatever form it currently appears in the signage used in connection
with the RGLA Businesses.

 

defaulting Third Party service provider
is defined in clause 12.3.

 

Demerger has the
meaning given to it in the Demerger Deed.

 

Demerger Deed means
the Demerger Deed between CSR and RGL executed on or about the date of this
Agreement.

 

Effective Date has
the meaning has the same meaning as in the Demerger Deed.

 

Excluded Information
means information:

 

(a)                                  which
is in or becomes part of the public domain other than through the recipient’s
breach of this Agreement or an obligation of confidence owed to the provider of
the information;

 

(b)                                 which
the recipient of the information obtains from a third party who is lawfully in
possession of the information and may lawfully disclose it to the recipient; or

 

(c)                                  which
is or has been independently developed by an employee of the recipient who has
no knowledge of the disclosure by the disclosing party.

 

Extension Period
means, in relation to a Service or Services, the period, if any, specified as
such in a Service Schedule as applying to the Service or Services.

 

Force Majeure Event
means any event which is not within the reasonable control of the party
claiming force majeure and includes strikes, lockouts and other industrial
disputes.

 

Government Agency
means any foreign or Australian government or semi-governmental,
administrative, fiscal, judicial or quasi-judicial body, department,
commission, authority, tribunal, agency or entity or person vested with
functions under any law or any Minister of the Crown in right of the
Commonwealth of Australia or any state.

 

Gross Default has
the meaning given in clause 12.1(a).

 

6

 

Initial Period
means, in relation to a Service or Services, the period specified as such in a
Service Schedule applying to that Service or Services.

 

Intellectual Property
means the statutory and other legally enforceable proprietary rights, including
but not limited to trade marks, patents, designs, copyright, circuit layouts, confidential
information, trade secrets and all other intellectual property rights as
defined in Article 2 of the Convention establishing the World Intellectual
Property Organisation, dated 14 July 1967, as amended from time to time.

 

Parties mean each
CSR Group Member and each RGL Group Member.

 

Personal Information
has the meaning given in the Privacy Act 1988 (Cth).

 

Privacy Laws means
the Privacy Act 1988 (Cth) and any ancillary rules, guidelines, orders,
directions, directives, codes of conduct or other instrument made or issued
thereunder, as amended from time to time and all other statutes concerning the
privacy of Personal Information.

 

Recipient means the
Party entitled to receive a Service specified in a Service Schedule and, unless
otherwise stated in that Service Schedule, means a RGL Group Member.

 

Related Body Corporate
has the meaning given in section 9 of the Corporations Act 2001 (Cth).

 

RGLA Businesses has
the meaning given to the RGL Businesses in the Demerger Deed except that it is
confined to the businesses, operations and activities carried on in Australia.

 

RGL Group means RGL
and each of its Subsidiaries at the relevant time, each a RGL Group Member.

 

Services means the
various services and access to be provided by the CSR Group Members pursuant to
this Agreement as specified in the Service Schedules.

 

Service Schedule
means a schedule describing the Services to be provided and attached to this
Agreement as part of Schedule 1 at the date of this Agreement or subsequently
attached to this Agreement as a part of Schedule 2 pursuant to clause 5.

 

Subsidiary has the
meaning given in section 9 of the Corporations Act 2001 (Cth).

 

Supplier means the
Party required to supply a Service specified in a Service Schedules and, unless
otherwise stated in that Service Schedule, means a CSR Group Member.

 

Term has the meaning
given in clause 2(a).

 

Third Party means
any person other than a RGL Group Member or a CSR Group Member, and includes
Government Agencies.

 

7

 

Third Party Claim
means a Claim brought by a Third Party.

 

Third Party Consent
means a consent given by a Third Party including any agreement or waiver.

 

Third Party service providers
means any third party that provides or supplies Services to a Party including
any subcontractors engaged by a Party to provide or supply Services pursuant to
this Agreement.

 

Trade Practices Act
means the Trade Practices Act 1974 (Cth) and corresponding Australian State and
Territory enactments and references in this Agreement to sections of the Trade
Practices Act include all corresponding provisions of any Australian State and
Territory enactments.

 

Variation means any
variation, alteration, amendment, reduction or addition to any aspect of the
Services, and includes any necessarily consequential changes to the relevant
Service Schedules.

 

1.2                               Interpretation

 

(a)                                  In
this Agreement headings and bold type are for convenience only and do not
affect the interpretation of this Agreement and unless the context otherwise requires:

 

(1)                                  words importing the
singular include the plural and vice versa;

 

(2)                                  a reference to one
gender includes all genders;

 

(3)                                  other parts of speech
and grammatical forms of a word or phrase defined in this Agreement have a
corresponding meaning;

 

(4)                                  an expression
importing a natural person includes any company, partnership, joint venture,
association, corporation or other body corporate and any Government Agency;

 

(5)                                  a reference to
legislation includes any change to, consolidation or replacement of it, whether
passed by the same or another Government Agency with legal power to do so, and
any delegated legislation or proclamation issued under it;

 

(6)                                  a reference to a
document includes all amendments or supplements to or replacements or novations
of that document;

 

(7)                                  a reference to a
party to a document includes that party’s executors, administrators, successors
and permitted assigns including any person taking by novation;

 

(8)                                  no provision of this
Agreement will be construed adversely to a party solely on the ground that the
party was responsible for the preparation of this Agreement or that provision;

 

8

 

(9)                                  if
more than one person is identified as a group, that expression refers to them,
and the obligations of the group under this Agreement bind them, jointly and
severally;

 

(10)                            a
covenant or agreement on the part of two or more persons binds them severally;

 

(11)                            “in relation to” includes
arising, directly or indirectly, in whole or in part, in relation to, in
relation to, in connection with, as a consequence of, or which would not have
arisen but for;

 

(12)                            a reference to “claim”
includes any claim or cause of action and whether made at law, in equity or
under statute; and

 

(13)                            a reference to a body other
than a party to this Agreement (including an institute, association or
authority) whether statutory or not which ceases to exist or whose powers or
functions are transferred to another body, is a reference to the body which
replaces it or which substantially succeeds to its powers or functions.

 

(b)                       In this Agreement, unless
otherwise expressly stated, “including” means “including but not limited to”
and “include” and “includes” have corresponding meanings. 

 

(c)                        Where the day on or by which any
thing is to be done is not a Business Day, that thing must be done on or by the
next Business Day.

 

1.3                               Precedence of documents

 

Subject to any
express provision to the contrary in this Agreement (excluding the Service
Schedules), to the extent of any inconsistency between the provisions of this
Agreement (excluding the Service Schedules) and the Service Schedules, the
provisions of this Agreement (excluding the Service Schedules) will prevail to
the extent of the inconsistency.

 

1.4                               Beneficial interest

 

(a)                                                CSR
and RGL acknowledge and agree that:

 

(1)                                  CSR
enters into and obtains the benefit of this Agreement on behalf of itself and
as trustee for each CSR Group Member;

 

(2)                                  where
this Agreement obliges or purports to oblige any CSR Group Member to act or to
refrain from acting or otherwise specifies or purports to specify the rights
and obligations of any CSR Group Member, CSR will procure that the CSR Group
Member acts or refrains from acting in accordance with this Agreement and

 

9

 

otherwise
complies with its rights and obligations under this Agreement;

 

(3)                                  any
CSR Group Member may enforce any promise, right (including right of
indemnification), representation, warranty and release that is given to or made
in favour of or for the benefit of, a CSR Group Member or may require CSR to
enforce the same on behalf of a CSR Group Member;

 

(4)                                  RGL
enters into and obtains the benefit of this Agreement on behalf of itself and
as trustee for each RGL Group Member;

 

(5)                                  where
this Agreement obliges or purports to oblige any RGL Group Member to act or to
refrain from acting or otherwise specifies or purports to specify the rights
and obligations of any RGL Group Member, RGL will procure that the RGL Group
Member acts or refrains from acting in accordance with this agreement and
otherwise complies with its rights and obligations under this Agreement; and

 

(6)                                  any
RGL Group Member may enforce any promise, right (including right of
indemnification), representation, warranty and release that is given to or made
in favour of or for the benefit of, a RGL Group Member or may require RGL to
enforce the same on behalf of a RGL Group Member.

 

2                                         Term

 

(a)                                  This
Agreement commences on the Commencement Date and expires when no Supplier is
any longer obliged to provide, or to procure the supply of, any Services
pursuant to this Agreement, unless terminated earlier in accordance with this
Agreement.

 

(b)                                 If
a Service Schedule specifies an Extension Period, the relevant Recipient may by
written notice to the relevant Supplier not less than 30 Days before the expiry
of the Initial Period specified in the Service Schedule, require that the term
of that Service Schedule be extended by the Extension Period. Following receipt
of such notice, the Supplier must continue to supply, or procure the supply of,
the Service the subject of the notice during the Extension Period in accordance
with this Agreement.

 

3              Provision of Services

 

(a)                                  With
effect from the Commencement Date, each Supplier will supply, or procure the
supply of, the Services for the Initial

 

10

 

Period (and
for the Extension Period if applicable pursuant to clause 2(b)) to the relevant
Recipient in accordance with this Agreement and each Service’s specific Service
Schedule.

 

(b)                                 Subject
to clauses 5.4 and 7, a Supplier will to the extent reasonably possible supply,
or procure the supply of, the Services in the same manner and on the same basis
as those Services were supplied to the Recipient immediately prior to the
Commencement Date except as expressly stated in a Service Schedule.

 

(c)                                  Notwithstanding
clause 3(a) and (b), a Supplier is not obliged to supply or procure the supply
of particular Services to Recipients to the extent that:

 

(1)                             a
Third Party Consent is required for the lawful supply of those Services and
such Third Party Consent has not been obtained or is withdrawn; or

 

(2)                             any
Third Party, which provides the Services, ceases to provide those Services for
any reason outside the reasonable control of CSR .

 

(d)                                 The
Supplier and Recipient of a Service must each use their reasonable endeavours
to obtain, and prevent the withdrawal of, any Third Party Consent provided that
the Supplier is not obliged to incur any significant expenses or make any
payment for a Third Party Consent

 

(1)                             except
to the extent that the Supplier would have been required, by the terms of any
agreement with the Third Party, to do so to enable the continued provision of
the Service if the Demerger had not occurred or

 

(2)                             the
Recipient offers to reimburse those expenses or make that payment.

 

4              RGL Group’s and CSR Group’s obligations

 

4.1            RGL Group’s responsibilities

 

(a)                                  RGL
must provide, or procure that the relevant RGL Group Member provides, all
reasonable assistance and do all things reasonably requested by a Party to
allow the Party to fulfil its obligations under this Agreement including giving
a CSR Group Member reasonable access to premises and equipment of RGL Group
Members and making available, as reasonably requested by the Party, necessary
information and personnel.

 

(b)                                 RGL
must ensure that each RGL Group Member:

 

(1)          complies
with its responsibilities set out in the Service Schedules; and

 

11

 

 

(2)          complies
with the reasonable guidelines and instructions issued by the CSR Group Member
from time to time with respect to any relevant Service supplied by that CSR
Group Member.

 

(c)                                  A
CSR Group Member will not be liable for any failure to fulfil an obligation
under this Agreement where the CSR Group Member is delayed in, or prevented
from, fulfilling that obligation as a result of any act or omission of a RGL
Group Member or any of its sub-contractors, agents or employees.

 

4.2            CSR Group’s responsibilities

 

(a)                                  CSR
must provide, or procure that the relevant CSR Group Member provides, all
reasonable assistance and do all things reasonably requested by a Party to
allow the Party to fulfil its obligations under this Agreement including giving
a RGL Group Member reasonable access to premises and equipment of CSR Group
Members and making available, as reasonably requested by the Party, necessary
information and personnel.

 

(b)                                 CSR
must ensure that each CSR Group Member

 

(1)          complies
with its responsibilities set out in the Service Schedules; and

 

(2)          complies
with the reasonable guidelines and instructions issued by the CSR Group Member
from time to time with respect to any relevant Service supplied by that RGL
Group Member.

 

(c)                                  A
RGL Group Member will not be liable for any failure to fulfil an obligation
under this Agreement where the RGL Group Member is delayed in, or prevented
from, fulfilling that obligation as a result of any act or omission of a CSR
Group Member or any of its sub-contractors, agents or employees.

 

5              Variation of and additional Services

 

5.1            Additional Services

 

The Parties
may agree on additional services to be provided pursuant to this Agreement by
entering into a Service Schedule for such services substantially in the form of
the template in Schedule 1, which Service Schedule once completed will be
annexed as part of Schedule 2.

 

5.2            Variation request

 

Any Party may
request a Variation to the Services.

 

12

 

5.3            No obligation to vary

 

(a)                                  A
Party will use reasonable endeavours to accommodate any request for a Variation
or a request for additional Services.

 

(b)                                 Subject
to clause 5.4, no Variation or new Service Schedule will take effect unless
approved in writing by both Parties.

 

5.4            Variations to IT infrastructure and
Service delivery

 

If:

 

(a)                                  a
CSR Group Member wishes to change the information technology infrastructure of
CSR to which the RGL Group has access under this Agreement or which is
necessary for the delivery of a Service; or

 

(b)                                 a
Supplier wishes to change the method of delivery, volume, performance level or
amount of resources involved in the provision of a Service,

 

in a manner which may have a material adverse impact on the Recipient’s
business, then:

 

(c)                                  the
relevant Supplier must notify the relevant Recipient;

 

(d)                                 the
relevant Parties must consult and negotiate in good faith regarding the
Variation;

 

(e)                                  the
Supplier must not implement the Variation without the written approval of the
Recipient which approval must not be unreasonably withheld or delayed.

 

6              [This
part has been deleted]

 

7              Sub-contracting

 

(a)                                  A
Party may subcontract the provision of any of the Services provided that there
are no material adverse effects on the cost or quality of those Services. Any
such sub-contracting does not limit a Party’s obligations under this Agreement.

 

(b)                                 A
Supplier providing a Service may at any time, in its discretion, replace one
Third Party service provider in respect of that Service for another provided
that there are no material adverse effects on the cost or quality of that
Service.

 

8              Payment

 

8.1               Charges

 

Unless
otherwise agreed by the relevant Supplier and Recipient:

 

13

 

 

(a)                                  The
Charges for each Service shall be not exceed cost and are set out in the
Service Schedule applicable to that Service.

 

(b)                                 The
relevant Recipient must pay to the Supplier the Charges for Services provided
to the Recipient.

 

(c)                                  If
the relevant Recipient fails to pay an undisputed Charge under this Agreement,
then without limiting the Supplier’s rights under clause 14.5(b), interest will
accrue on the unpaid amount at a rate 1% above the Westpac Banking
Corporation’s prime rate from the due date for payment to the date of actual
payment.

 

8.2               Invoicing and payment

 

Unless
otherwise specified in a Service Schedule:

 

(a)                                  the
Supplier will invoice the relevant Recipient monthly in arrears in respect of
the Services provided to that Party. Each invoice must be a valid tax invoice,
be sent to the relevant Recipient’s Contract Manager, quote the applicable
purchase order number and detail the Charges payable under this clause 8,
providing where necessary reasonable details of, and substantiating evidence
supporting, the Charges detailed in the invoice; and

 

(b)                                 the
relevant Recipient must pay each invoice within 30 days after the date of the
invoice in accordance with any directions contained in the invoice.

 

8.3               Adjustment to Charges

 

Unless otherwise specified in a Service Schedule:

 

(a)                                  if
the costs incurred by a Supplier in providing or procuring the provision of the
supply of a Service:

 

(1)          materially
increase as a result of a Third Party service provider increasing the fees it
charges the Supplier other than as a result of an act or omission of the Supplier
(excluding any act or omission of the Supplier required by or resulting from
the Demerger), then the Supplier may pass on the increased Charges for that
Service to the relevant Recipient in a proportionate amount; or

 

(2)          materially
decrease as a result of a Third Party service provider decreasing the fees it
charges the Supplier, then the Supplier must pass on the decreased Charges for
that Service to the relevant Recipient in a proportionate amount.

 

8.4               Disputed Charges

 

(a)                                  A
Party may withhold payment of any Charge which is invoiced to it and which it
disputes in good faith. However,

 

14

 

the failure by
a Party to withhold such payment does not prejudice the right of the Party to
dispute the Charge.

 

(b)                                 A
Party, which is disputing a Charge, must continue to pay other Charges, which
are not in dispute in accordance with this Agreement.

 

(c)                                  The
relevant Parties must seek to resolve any dispute in relation to a Charge in
accordance with clause 9.

 

(d)                                 Where
a Party withholds any disputed Charge, that Party will pay to the invoicing
Party interest on the amount withheld at 1% above the Westpac Banking
Corporation prime rate from the due date for payment to the date of actual
payment to the extent that such disputed Charge is ultimately determined to be
payable.

 

(e)                                  Where
a Party does not withhold payment of a disputed Charge and it is ultimately
determined that the disputed Charge which has been paid was not payable in
full, the invoicing Party will pay to the Party, that disputed the Charge,
interest on the amount determined to be payable at 1% above the Westpac Banking
Corporation prime rate for the period from the date that payment was made until
the date that the overpayment is refunded.

 

9              Dispute Resolution

 

The Parties
agree to use reasonable endeavours, acting in good faith, to settle disputes
arising between them in connection with this Agreement.

 

10           Confidentiality and disclosure of
information

 

10.1             Confidentiality

 

Each Party must:

 

(a)                                  keep
all Confidential Information of any other Party provided to it by that Party or
otherwise obtained by it pursuant to this Agreement in strict confidence;

 

(b)                                 keep
all Confidential Information of any other Party provided to it by that Party or
otherwise obtained by it pursuant to this Agreement secure and protected from
any use, disclosure or access which is inconsistent with this Agreement;

 

(c)                                  not
make use of the Confidential Information of any other Party provided to it by
that Party or otherwise obtained by it pursuant to this Agreement to the
commercial, financial or competitive disadvantage of the other Party; and 

 

15

 

(d)                                 not
disclose, or permit the disclosure of, Confidential Information of any other Party
provided to it by that Party or otherwise obtained by it pursuant to this
Agreement either during or after the Term, without the other Party’s prior
written approval which will not be unreasonably withheld or delayed.

 

10.2             Permitted disclosure

 

Notwithstanding
clause 10.1, a Party may disclose Confidential Information of any other Party
provided to it by that Party or otherwise obtained by it pursuant to this
Agreement:

 

(a)                                  to
its officers, employees, agents, auditors, professional advisors, sub-contractors,
Related Bodies Corporate and to Third Party service providers who have a
specific need to have access to the Confidential Information for the purposes
of this Agreement including the enforcement of this Agreement;

 

(b)                                 if
required to by:

 

(1)          law;

 

(2)          a
Government Agency; or

 

(3)          the
rules of a stock exchange on which that Party or a Related Body Corporate of
that Party is listed,

 

provided that
where reasonably practicable, prior to any such disclosure the Party proposing
to disclose provides to the Party whose Confidential Information is to be
disclosed a copy of the proposed disclosure and those Parties consult with each
other as to the reasonable scope of the disclosure. Any disclosure must be of
only the minimum information required to comply with the law or the rules of
the applicable stock exchange (as applicable); or

 

(c)                                  if
required to disclose the information in connection with legal proceedings
relating to this Agreement,

 

provided that
prior to any disclosure reasonable steps are taken to inform the recipient of
the Confidential Information in writing of the confidential nature of the
information and the terms of this clause and otherwise to ensure that the
confidentiality of the Confidential Information is maintained.

 

10.3             Third party disclosure

 

A Party
disclosing information under clause 10.2(a) must ensure that persons to whom
Confidential Information is disclosed do not use, provide or disclose the
Confidential Information except in accordance with this Agreement.

 

16

 

10.4             Return or destruction of Confidential
Information

 

(a)                                  A
Party must immediately on request by an other Party (at that Party’s option)
either:

 

(1)          return
all copies and extracts of the Confidential Information of that Party provided
to it by that Party or otherwise obtained by it pursuant to this Agreement and
all summaries, reports and notes made that relate to, use or are wholly or
partly derived from that Confidential Information (whether on paper, in an
electronic information storage and retrieval system, in any other storage and
retrieval system, or in any other storage medium); or

 

(2)          certify
by a statutory declaration made by a senior executive or a director of the
Party that the items referred to in clause 10.4(a)(l) have been destroyed or
erased.

 

(b)                                 The
return of any of the Confidential Information, or the return, destruction or
erasure of the items referred to in clause 10.4(a)(l), does not relieve the
Party that received or otherwise obtained such Confidential Information from
any of its obligations under this Agreement.

 

10.5             No obligation to provide Confidential
Information

 

Nothing in
this clause 10 obliges a Party to provide any of its Confidential Information
to any other Party.

 

10.6             Privacy

 

The Parties
will each comply with all applicable Privacy Laws when handling Personal
Information in connection with this Agreement.

 

10.7             Survival of clause

 

Clause 10 will
survive the termination of this Agreement.

 

11           No warranties

 

Except as
expressly stated in this Agreement and to the extent permitted by law, all
express or implied conditions, warranties or undertakings, whether oral or in
writing, in law or in fact, including warranties as to satisfactory quality and
fitness for a particular purpose, in relation to the provision of the Services
or the Services themselves are excluded.

 

17

 

 

12           Limitation of liability

 

12.1             Limitation of liability

 

(a)                                  A
Party is not liable for any loss or damage suffered by another Party in
connection with this Agreement other than loss or damage as a result of the
fraud or wilful breach of this Agreement by that first Party, its employees or
agents (each a Gross Default).

 

(b)                                 A
Party is not liable for any indirect or consequential loss or damage however
caused (except as a result of that Party’s Gross Default or ) suffered by
another Party in connection with this Agreement.

 

(c)                                  A
Party is not liable for any:

 

(1)          loss
of revenues;

 

(2)          loss
of reputation;

 

(3)          loss
of profits;

 

(4)          lost
opportunities, including opportunities to enter into or complete arrangements
with third parties; or

 

(5)          loss
or damage in connection with claims against another Party by third parties,

 

however caused
(except as a result of the first Party’s Gross Default), suffered by another
Party in connection with this Agreement.

 

(d)                                 Any
liability of a Party for loss or damage, however caused (including, as a result
of that Party’s Gross Default), suffered by another Party in connection with
this Agreement is reduced to the extent that that other Party or its employees
or agents contribute to the loss or damage.

 

12.2             Trade Practices Act

 

(a)                                  Subject
to clause 12.2(b), if the Trade Practices Act implies a condition or warranty
into this Agreement in respect of goods or services supplied, and a Supplier’s
liability for breach of that condition or warranty may not be excluded but may
be limited, clause 12.1(a) does not apply to that liability and instead the
Supplier’s liability for any breach of that condition or warranty is limited
to:

 

(1)          in
the case of a supply of goods, the Supplier doing any one or more of the
following (at its election):

 

(A)      replacing
the goods or supplying equivalent goods;

 

(B)        repairing
the goods;

 

18

 

(C)        paying
the cost of replacing the goods or of acquiring equivalent goods;

 

(D)       paying
the cost of having the goods repaired; or

 

(2)          in
the case of a supply of services, the Supplier doing either or both of the
following (at its election):

 

(A)      supplying
the services again; and

 

(B)        paying
the cost of having the services supplied again.

 

(b)                                 Nothing
in this Agreement is intended to exclude, restrict or modify rights which any
Party may have under the Trade Practices Act which may not be excluded,
restricted or modified by agreement.

 

12.3             Right of recovery against a third party

 

(a)                                  Where:

 

(1)          any
Recipient suffers a failure, defect, omission, delay or default in the supply
of Services to it;

 

(2)          that
Service is sourced from a Third Party service provider; and

 

(3)          the
failure, defect, omission, delay or default is directly or indirectly related
to an act or omission of the Third Party service provider (“defaulting Third Party service provider”),

 

the Recipient
can require the relevant Supplier (at the Recipient’s expense) to exercise any
right of recovery that the Supplier may have against the defaulting Third Party
service provider to have the defaulting Third Party service provider remedy the
failure, defect, omission, delay or default.

 

(b)                                 Where
a Supplier has a right of recovery against a defaulting Third Party service
provider:

 

(1)          where
required by the relevant Recipient under clause 12.3(a), the Supplier must,
make and use its reasonable endeavours to pursue, such claim; and

 

(2)          the
relevant Recipient must use its reasonable endeavours to assist the Supplier in
making and pursuing such claim, including by procuring that the Supplier’s
representatives are given reasonable access to the Recipient’s representatives
and by procuring that such persons:

 

(A)      attend
interviews at the premises of the relevant Recipient;

 

(B)        give
evidence in Court at the request of the Supplier; and

 

19

 

(C)        provide
all other reasonable assistance in relation to the claim,

 

provided that the Supplier must take reasonable steps to minimise any
disruption caused to the Recipient’s businesses and representatives.

 

(c)                                  A
Supplier will not be liable to make a payment to Recipient in relation to a
liability of that Recipient in relation to which Supplier has a right of
recovery against a defaulting Third Party service provider (other than in
respect of any amount that those Parties acting reasonably agree is
attributable to the Supplier’s Gross Default) unless and until the Supplier,
acting reasonably, has made a claim against the defaulting Third Party service
provider and has used its reasonable endeavours to pursue that claim and the
claim has been finalised.

 

(d)                                 Where
a Supplier has a right of recovery (whether in whole or in part) against a
defaulting Third Party service provider in respect of any loss or damage
suffered by any Recipient, the Supplier’s liability to any Recipient will be
the amount actually recovered by the CSR Group Member from the defaulting Third
Party service provider less the Supplier’s reasonable costs (including legal
costs on a full indemnity basis) of making and pursuing the claim against the
defaulting Third Party service provider.

 

12.4             Force Majeure

 

(a)                                  Where
a Force Majeure Event prevents or delays a Party from performing an obligation
under this Agreement, that obligation is suspended as long as the Force Majeure
Event continues provided such Party continues to use commercially reasonable
efforts to recommence performance or observance of its obligation and keeps the
other Party informed of the status of the Force Majeure Event and the Party’s
efforts to resolve it.

 

(b)                                 The
Party seeking to rely upon a Force Majeure Event pursuant to clause 12.4(a),
must, as soon as possible after that event occurs, notify the other Party of
full details of:

 

(1)          the
event;

 

(2)          the
effect of the event on performance of the affected Party’s obligations;

 

(3)          the
anticipated period during which the affected obligation will not be performed;
and

 

(4)          the
action (if any) the affected Party intends to take to mitigate or remove the
effect and delay.

 

(c)                                  If
the Force Majeure Event continues or is reasonably likely to continue for more
than 90 days and the affected Parties have during that period been unable to
agree upon a course of 

 

20

 

action to work
around the Force Majeure Event, then any affected Party may by written notice
to the other Party, terminate the affected Service or Service Schedules (as is
applicable).

 

12.5             Insurance

 

(a)                                  The
CSR Group and the RGL Group must each maintain for the Term and for 12 months
after the Term valid and enforceable insurance policies relating to:

 

(1)          liability
with coverage of at least $20 million;

 

(2)          professional
indemnity with coverage of at least $5 million;

 

(3)          property
damage with coverage of at least $5 million; and

 

relevant to the performance of the Services and extending to any CSR
Group Member’s negligence.

 

(b)                                 CSR
Group Members must comply with their legal obligations in relation to workers
compensation.

 

13           Copyright and CSR Trade Mark Licence

 

13.1             Copyright Licences

 

(a)                                  In
consideration of the RGL Group Members agreeing to grant the licence to the CSR
Group Members in clause 13.1(b), on and from the Commencement Date, the CSR
Group Members grant each RGL Group Member an irrevocable, perpetual,
royalty-free and other consideration-free, non-exclusive, non- transferable
licence to exercise all copyright rights in all works and other subject matter (other
than software) in which copyright subsists immediately prior to the
Commencement Date which relates to or is required by that party for the
operation of its business, to the extent that CSR or a CSR Group Member is
entitled to grant such rights, whether as owner of such rights or as licensee
of such rights, for the period it is entitled to grant such rights.

 

(b)                                 In
consideration of the CSR Group Members agreeing to grant the licence to the RGL
Group Members in clause 13.1(a), on and from the Commencement Date the RGL
Group members grant each CSR Group Member an irrevocable, perpetual,
royalty-free and other consideration-free, non-exclusive, non- transferrable
licence to exercise all copyright rights in all works and other subject matter
(other than software) in which copyright subsists immediately prior to the
Commencement

 

21

 

Date which
relates to or is required by that party for the operation of its business, to
the extent that a RGL Group Member is entitled to grant such rights, whether as
owner of such rights or as licensee of such rights, for the period it is
entitled to grant such rights.

 

(c)                                  The
licences granted in this clause 13 shall continue notwithstanding expiration or
termination of this Agreement.

 

13.2             Trade Mark Licences

 

(a)                                  Subject
to clause 13.2(b), for 12 months from 28 March 2003 (Transition Period) CSR grants each RGL Group Member a
non-exclusive, non-transferable, royalty-free and other consideration-free
licence to use the CSR Trade Mark as a trade mark in the operations of the RGL
Group as part of signage in relation to goods and services (including on
vehicles and at sites) in the manner and form that the CSR Trade Mark is used
by those parties as at 28 March 2003 (Permitted
Use).

 

(b)                                 RGL
agrees that:

 

(1)          it
will only use, and will ensure that each RGL Group Member will only use the CSR
Trade Mark for the Permitted Use;

 

(2)          it
will actively take steps, and ensure that each RGL Group Member will actively
take steps, to cease the Permitted Use on or before the expiration of the
Transition Period;

 

(3)          pending
cessation of the Permitted Use, it will and will ensure that each RGL Group
Member will, only use the CSR Trade Mark for signage in relation to goods or
services of a standard and quality equal to the standard and quality of goods
or services in respect of which the CSR Trade Mark was used as at the
Commencement Date;

 

(4)          upon
expiration of the Transition Period it will not use, and will ensure that each
RGL Group Member will not use any trade mark substantially identical with,
deceptively similar to or likely to be mistaken for or confused with the CSR
Trade Mark;

 

(5)          all
benefits arising from use of the CSR Trade Mark in accordance with this
Agreement, including goodwill arising from such use, will vest in CSR; and

 

(6)          it
will not, and will ensure that each RGL Group Member will not, exercise any of
the rights granted to an authorised user under section 26 of the Trade Marks
Act (Cth) 1995 or any other comparable rights under any other legislation, in
respect of the CSR Trade Mark.

 

22

 

(c)                                  The
licence granted in this clause 13.2 shall continue during the Transition Period
notwithstanding termination of this Agreement during the Transition Period.

 

14           Assistance on cessation

 

14.1             Principles of cessation

 

The following principles will apply to any cessation of the provision
of a Service:

 

(a)                                  The
Supplier will provide to the relevant Recipient all reasonable assistance and
information, and will co-operate with the relevant Recipient, to ensure that
the cessation of the provision of any Services will be conducted in as
efficient, fair and reasonable manner as reasonably possible; and

 

(b)                                 the
relevant Recipient will pay the reasonable costs of the Supplier incurred under
clause 14.1(a).

 

14.2             Grant of licence

 

For the
purposes of a Recipient using third party applications and systems used in
providing a Service after cessation of the provision of that Service, the
Supplier of that Service grants, an irrevocable, perpetual, royalty-free and
other consideration-free, non-exclusive, and unless otherwise expressly stated
herein, transferable licence, to use, and unless otherwise expressly stated
herein, the right to sub-licence, Intellectual Property in any modifications,
configurations and customisations made to such applications and systems to the
extent that the Supplier is entitled to grant such rights, whether as owner of
such rights or as licensee of such rights.

 

15           Termination

 

15.1             Termination Events

 

It is a Termination Event if:

 

(a)                                  a
Party breaches this Agreement in a material respect and does not remedy that
breach or offer reasonable compensation within 15 Business Days after the Party
not in default and which is adversely effected by the breach gives the Party in
default written notice requiring such remediation or reasonable compensation;

 

(b)                                 a
Party suspends payment of its debts generally, is or becomes unable to pay its
debts when they are due, states that it is unable to pay its debts when they
are due or is or becomes unable to pay its debts within the meaning of the
Corporations Act 2001;

 

23

 

(c)                                  a
Party enters into, or resolves to enter into, any arrangement, composition or
compromise with, or assignment for the benefit of, its creditors or any class
of them other than in relation to the Demerger or a solvent corporate
reconstruction;

 

(d)                                 a
receiver, receiver and manager, administrator, trustee or similar official is
appointed over a substantial part of the assets or undertakings of a Party, an
application or order is made for the winding up or dissolution of a Party
except whilst solvent, or a resolution is passed or any steps are taken to pass
a resolution for the winding up or dissolution of a Party, except whilst
solvent or for the purpose of an amalgamation or reconstruction which has the
other Party’s prior consent, which consent must not be unreasonably withheld or
delayed;

 

(e)                                  a
Party takes any step to obtain protection or is granted protection from its
creditors under any applicable law; or

 

(f)                                    a
Party ceases or threatens to cease carrying on business in general.

 

15.2             Effect of Termination Event

 

If a Termination Event occurs:

 

(a)                                  where
a Supplier is the subject of the Termination Event in clause 15.1(a) in
relation to a Service Schedule, the relevant Recipient may (without affecting
the accrued rights and obligations of the Parties as at the date of
termination) terminate that Service Schedule immediately by notice to that
Supplier;

 

(b)                                 where
a RGL Group Member is the subject of the Termination Event otherwise than
pursuant to clauses 15.2(a) or 15.2(c), CSR may (without affecting the accrued
rights and obligations of the Parties as at the date of termination) terminate
this Agreement;

 

(c)                                  where
a Recipient is the subject of the Termination Event in clause 15.1(a) in
relation to a Service Schedule, the relevant Supplier may (without affecting
the accrued rights and obligations of the Parties as at the date of
termination) terminate that Service Schedule immediately by notice to that
Recipient; and

 

(d)                                 where
a CSR Group Member is the subject of the Termination Event otherwise than
pursuant to clauses 15.2(a) or 15.2(c), RGL may (without affecting the accrued
rights and obligations of the Parties as at the date of termination) terminate
this Agreement.

 

15.3             Termination for convenience

 

(a)                                  Subject
to clause 15.3(b):

 

24

 

(1)          a
Recipient may terminate a Service or a Service Schedule in whole or in part
(unless the Service Schedule expressly provides otherwise) for convenience upon
not less than 60 days (or such other period expressly provided in the Service
Schedule) prior written notice to the relevant Supplier; and

 

(2)          RGL
may terminate this Agreement for convenience upon not less than 6 months prior
written notice to CSR.

 

(b)                                 Where
a Supplier has sourced a Service from a Third Party service provider for a
specific minimum period of time or for a specific minimum volume, the supply or
facilitation of the supply of that Service cannot be terminated, reduced or
lessened by the relevant Recipient for convenience under clause 15.3(a) except
to the extent that such termination, reduction or lessening has no material
adverse impact on the relevant Supplier (for example, because the Supplier is
permitted to pass on the termination, reduction or lessening of the Service to
the Third Party under the terms of the Third Party service agreement).

 

15.4             Termination of a Service Schedule

 

Termination of Service Schedule in whole or in part will not affect the
terms of the remaining Service Schedules and the Agreement and such terms will
remain in full force and effect.

 

15.5             Termination where scheme of
arrangement or change of control

 

(a)                                  CSR
may terminate this Agreement and all Service Schedules by giving written notice
to RGL if:

 

(1)          RGL
proposes a scheme of arrangement with its members; or

 

(2)          a
person holds, or begins to hold, a voting interest (as defined in the Corporations
Act 2001 (Cth)) of 50% or more in RGL.

 

(b)                                 RGL
may terminate this Agreement and all Service Schedules by giving written notice
to CSR if:

 

(1)          CSR
proposes a scheme of arrangement with its members; or

 

(2)          a
person holds, or begins to hold, a voting interest (as defined in the
Corporations Act 2001 (Cth)) of 50% or more in CSR.

 

25

 

16           General

 

16.1             Notices

 

(a)                                  Any
notice or other communication including, but not limited to, any request,
demand, consent or approval, to or by a party to this Agreement:

 

(1)          must
be in legible writing and in English addressed as shown below:

 

(A)      if
to CSR or a CSR Group Member:

 

	
  Address:

  	
   

  	
  CSR Limited

  Level 1, 9 Help Street,

  Chatswood  NSW  2067

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
  +61 2 9235
  8055; and

  

 

(B)        if
to RGL or a RGL Group Member:

 

	
  Address:

  	
   

  	
  Rinker Group
  Limited

  Level 1, 9 Help Street,

  Chatswood  NSW  2067

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Company
  Secretary

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
  +61 2 9412
  6666,

  

 

or as specified to the sender by any Party by notice;

 

(2)          must
be signed by the sender (if a natural person) or an officer or under the common
seal of the sender (if a corporation);

 

(3)          is
regarded as being given by the sender and received by the addressee:

 

(A)      if
by delivery in person, when delivered to the addressee;

 

(B)        if
by post, 3 Business Days from and including the date of postage; or

 

(C)        if
by facsimile transmission, whether or not legibly received, when received by
the addressee,

 

but if the delivery or receipt is on a day which is not a Business Day
or is after 4.00 pm (addressee’s time) it is regarded as received at 9.00 am on
the following Business Day; and

 

(4)          can
be relied upon by the addressee and the addressee is not liable to any other
person for any consequences of that reliance if the addressee believes it to be
genuine, correct and authorised by the sender.

 

26

 

(b)                                 A
facsimile transmission is regarded as legible unless the addressee telephones
the sender within 3 hours after transmission is received or regarded as
received under clause 16.1(a)(3) and informs the sender that it is not legible.

 

(c)                                  In
this clause 16.1, a reference to an addressee includes a reference to an
addressee’s officers, agents or employees or any person reasonably believed by
the sender to be an officer, agent or employee of the addressee. 

 

16.2             Governing law and jurisdiction

 

(a)           This Agreement is governed by the
laws of New South Wales, Australia.

 

(b)                                 Each
of the Parties irrevocably submits to the exclusive jurisdiction of the courts
of New South Wales, Australia.

 

16.3             Further assurances

 

Each Party
must promptly do all things and execute and deliver all further documents
necessary to give full effect to this Agreement and the Demerger, including,
negotiating in good faith with respect to any matters requested by the other
Party.

 

16.4             Variation

 

A variation of
any term of this Agreement must be in writing and signed by CSR and RGL or, in
the case of a Service Schedule, the relevant Supplier and Recipient.

 

16.5             Merger

 

No right or
obligation of any Party will merge on completion of any transaction under this
Agreement. All rights and obligations under this Agreement survive the
execution and delivery of any transfer or other document, which implements any
transaction under this Agreement.

 

16.6             Assignment

 

Rights arising
out of or under this Agreement cannot be assigned, novated or otherwise
transferred by a Party without the prior written consent of the other Party.

 

16.7             Consents

 

Any consent
referred to in, or required under, this Agreement from any Party may not be
unreasonably withheld or delayed, unless this Agreement expressly provides for
that consent to be given in that Party’s absolute discretion.

 

16.8             Waivers

 

(a)                                  Waiver of any right
arising from a breach of this Agreement or of any right, power, authority,
discretion or remedy arising

 

27

 

upon default
under this deed must be in writing and signed by the Party granting the waiver.

 

(b)                                 A failure or delay in
exercise, or partial exercise, of:

 

(1)           a right arising from a breach of this
Agreement; or

 

(2)                                  a
right, power, authority, discretion or remedy created or arising upon default
under this Agreement,

 

does not result
in a waiver of that right, power, authority, discretion or remedy.

 

(c)                                  A Party is not
entitled to rely on a delay in the exercise or non-exercise of a right, power,
authority, discretion or remedy arising from a breach of this Agreement or on a
default under this Agreement as constituting a waiver of that right, power,
authority, discretion or remedy.

 

(d)                                 A Party may not rely
on any conduct of another party as a defence to exercise of a right, power,
authority, discretion or remedy by that other party.

 

(e)           This
clause may not itself be waived except by writing.

 

16.9             Costs and expenses

 

(a)                                  Subject to clause
16.9(b), each Party must pay its own legal costs and expenses in relation to
the negotiation, preparation, completion and stamping of this Agreement.

 

(b)                                 RGL will:

 

(1)                                  pay
all stamp duties (apart from financial institutions duties or bank account
debit taxes which will lie between the parties as they fall) and any related
interest, fines and penalties in relation to this Agreement, the performance of
this Agreement and each transaction effected by or made under or pursuant to
this Agreement; and

 

(2)                                  indemnify
CSR against any liability arising from failure to comply with clause
16.9(b)(l).

 

16.10          No representation or reliance

 

(a)                                  Each Party acknowledges
that no Party (nor any person acting on its behalf) has made any representation
or other inducement to it to enter into this Agreement, except for
representations or inducements expressly set out in this Agreement.

 

(b)                                 Each Party
acknowledges and confirms that it does not enter into this Agreement in
reliance on any representation or other inducement by or on behalf of any other
Party, except for any representation or inducement expressly set out in this
Agreement.

 

28

 

16.11          Entire Agreement

 

(a)                                  This Agreement
embodies the entire agreement between the Parties in relation to its subject
matter and supersedes any prior negotiation, arrangement, understanding or
agreement with respect to its subject matter.

 

(b)                                 Any
disclosure, statement, representation, term, warranty, condition, promise,
undertaking or forecast (a Statement)
made, given or agreed to in any prior draft of this Agreement or in any
negotiation, arrangement, understanding or agreement relating to the subject
matter or any term of this Agreement, has no effect except to the extent
expressly set out or incorporated by reference in this Agreement.

 

(c)                                  Each
Party releases all the other Parties from, and agrees not to make any claims
against any of them or their officers, employees, agents or advisors, in
respect of or arising from:

 

(1)                                  any
Statement, made, given or agreed to in any draft of this Agreement or in the
course of communication or in any prior negotiation, arrangement, understanding
or agreement with respect to the subject matter of or any term of this
Agreement, whether the Statement, was:

 

(A)          oral or written or implied by conduct;
and

 

(B)           made, given or agreed to before or
during the making of this Agreement:

 

(2)                                  any
conduct in relation to any draft of this Agreement, or any negotiation,
arrangement, understanding or agreement with respect to the subject matter of
or any term of this Agreement, whether the conduct occurred before or during
the making of this Agreement;

 

(3)                                  negligence;
and

 

(4)                                  section
52 of the Trade Practices Act.

 

(d)                                 Nothing
in clause 16.11(c) applies to any right, power or claim under or arising from
the executed version of this Agreement. In entering into this Agreement no
Party has relied upon anything referred to in clause 16.11(c)(l), (2) or (4).

 

16.12          Cumulative rights

 

The rights,
powers, authorities, discretions and remedies arising out of or under this
Agreement are cumulative and do not exclude any other right, power, authority,
discretion or remedy of a Party to it.

 

16.13          Prohibition and enforceability

 

(a)                                  Any
provision of, or the application of any provision of, this Agreement or any
right, power, authority, discretion or

 

29

 

remedy which
is prohibited in any jurisdiction is, in that jurisdiction, ineffective only to
the extent of that prohibition.

 

(b)                                 Any
provision of, or the application of any provision of, this Agreement which is
void, illegal or unenforceable in any jurisdiction does not affect the
validity, legality or enforceability of that provision in any other
jurisdiction or of the remaining provisions in that or any other jurisdiction.

 

(c)                                  Where
any clause of this Agreement is void, illegal or unenforceable, it may be
severed without affecting the legality, validity and enforceability of the
other provisions in this Agreement, unless this would materially change the
intended effect of this Agreement. 

 

16.14          To the extent not excluded by law

 

The rights,
duties and remedies granted or imposed under the provisions of this Agreement
operate to the extent not excluded by law.

 

17           GST

 

If a goods and
services tax (GST) applies to any
supply made under or in connection with this Agreement:

 

(a)          the
supplier may, subject to providing a valid tax invoice identifying the GST on
each component of the goods and/or services and/or things supplied, adjust the
amount payable for the goods and/or services and/or things to recover from the
recipient an additional amount on account of GST, such amount not to exceed the
amount of the supplier’s liability for GST in respect of the goods and/or
services and/or things and to be recoverable from the recipient at the same
time as the amount payable for the goods and/or services and/or things; and

 

(b)         if
either party is entitled to be reimbursed by the other party for a cost or
expense incurred in connection with this Agreement, the reimbursement payment
shall exclude any GST component of the cost or expense for which an input tax
credit may be claimed by the party entitled to be reimbursed. 

 

30

 

Executed
as an agreement:

 

 

	
  Signed for CSR
  Limited

  
	
  by its
  representative in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Graham
  Hughes

  	
   

  	
  /s/ Warren
  Saxelby

  
	
  Witness

  	
   

  	
  Representative

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GRAHAM
  HUGHES

  	
   

  	
  WARREN
  SAXELBY

  
	
  Name (please
  print)

  	
   

  	
  Name (please
  print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signed for
  Rinker Group Limited

  by its representative in the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Graham
  Hughes

  	
   

  	
  /s/
  [ILLEGIBLE]

  
	
  Witnesses

  	
   

  	
  Representative

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GRAHAM
  HUGHES

  	
   

  	
   

  
	
  Name (please
  print)

  	
   

  	
  Name (please
  print)

  

 

31

 

Schedule 1 – Agreed Service Schedule

 

The following service schedules detail the agreements between CSR and
RGL in place at 31 March 2003.

 

32

 

1             CSR BSC: Processing of AP invoices for
RGL

 

Service to be provided

 

Data Capture for Accounts Payable Invoices

 

The
Service involves the receipt and subsequent processing of accounts payable
invoices for RMG. Specifically this will involve on a daily basis:

 

•                          Opening of mail received at RGL’s post office
box or sent to CSR by RGL

 

•                          Sorting all invoices into appropriate IXOS
queue

 

•                          Imaging all invoices to appropriate IXOS
queue

 

•                          Data entry of all invoices to Purchase Orders
(MRHR) on RGL’s SAP system PR2

 

•                          Data entry of all invoices to Non Purchase
Order & Service Register (F-43

 

•                          All invoices received at CSR will be entered to RGL’s system within 24
hours of receipt, provided that system is available uninterrupted to CSR for
data entry purposes.

 

Return
to Suppliers of all invoices not quoting a valid Purchase Order number.

 

CSR
and RGL will agree a number of KPI’s that CSR will measure and report upon to
RGL monthly.

 

Term

 

Initial
Period 01/04/03 – 30/09/03

 

Extension
Period 01/10/03 -31/03/04 (on month by month basis)

 

Charges

 

Fees
will be calculated on the following basis:

 

•                 $0.97 per invoice based on SAP transactional
counts (FB03) for imaging & data entry

•                 $0.50 per invoices returned to suppliers

 

33

 

RGL Resources

 

RGL will provide one person (Marie Molineaux) at CSR’s premises to
assist with opening mail, sorting and scanning invoices, dealing with “no P.O.”
invoices, arranging archiving of paper invoices, and measuring and reporting
agreed KPI’s. CSR will manager these activities and in addition CSR will
provide software and hardware to facilitate scanning, deliver the scanned
images to a server nominated by RGL, and data enter the scanned invoices to RGL’s
system. CSR may sub­contract parts of this activity to an external service
provider. CSR will measure and report agreed KPI’s.

 

Reviews/Meetings

 

Formal quarterly meetings will be held between contract managers
nominated below where KPI’s will be presented and reviewed.

 

Contract Managers

 

Kathleen Farley will manage the data capture service provided by CSR.
Sandra Springolo (RGL BSC) will be responsible for ordering and reviewing
service delivery on behalf of RGL.

 

34

 

2             CSR BSC: Gateway Transmissions to
Westpac

 

Service to be provided

 

Biztalk/Gateway Transmissions to Westpac

 

The
service is for provision of software, hardware & technical support for the
transmission & completion of payment file transfers from RGL to Westpac
Banking Corporation on a daily basis

 

Term

 

Initial
Period 01/04/03 – 30/06/03

 

Extension
Period 01/07/03 -31/03/04 (on month by month basis)

 

Charges

 

Fees will be calculated on the following basis:

 

•                                                                       $2000 per month

 

Reviews/Meetings

 

Formal
Quarterly meetings will be held between contract managers nominated below where
KPI’s on service will be reviewed.

 

Contract Managers

 

John
Cameron will manage the data capture service provided by CSR. Sandra Springolo
(RGL BSC) will be responsible for ordering & reviewing Service delivery on
behalf of RGL.

 

35

 

3              CSR BSC: Leaseplan administration

 

Service to be provided

 

•                          Loading
of monthly Operating and Pass-On invoices to the RGL SAP system for payment to
Leaseplan

•                          Loading
of monthly Actual Operating and Pass-On costs to SAP cost centres in the RGL
general ledger

•                          On-going
reconciliation of actual Operating costs to paid invoices

•                          Settlement
with Leaseplan on over/under-payment of Operating costs

•                          Monthly
loading of CSR Treasury charges to RGL for vehicle leasing and vehicle
terminations

Term

 

Initial Period: 01/04/03 – 30/06/03

 

Extension Period: 01/07/03 – 30/09/03

 

Charges

 

An invoice for the service will be raised on a monthly basis quoting
the relevant RGL Purchase Order number. The monthly fee will be $1500. Payment
will be effected 30 days from the end of the month of invoice.

 

Reviews/Meetings

 

Meetings between the CSR and RGL representatives will be arranged as
required.

 

Contract Managers

 

Phil Carter will manage the service provided by CSR. Bill Langford will
be responsible for RGL.

 

36

 

4              CSR HR: BSC CHRIS system

 

Service to be provided

 

CHRIS HR / Payroll System

 

The
Service provides the software support required for Readymix to continue using
CHRIS – CSR’s HR / Payroll System. The service includes :

 

•      Maintenance
and routine development of the CHRIS software.

•      Maintenance
of CHRIS system security.

•      Help
Desk user support during business hours (Sydney time).

•      Electronic
data reporting to state WorkCover authorities.

•                 Major system development work (including any
dataloads to a

successor system) are excluded. These may be negotiated with

payment of an additional fee.

Term

Initial
Period 01/04/03 – 31/03/04

First
Extension Period 01/04/04 -30/09/04

Second
Extension Period 01/10/04 – 31/03/05

Charges

 

Fees
will be calculated on the following basis:

•      $11.00
per annum per monthly paid employee (payroll charge)

•      $22.00
per annum per fortnightly paid employee (payroll charge)

•      $33.00
per annum per weekly paid employee (payroll charge)

•      $25.00
per annum per staff employee (HR charge)

•      $6.25
per annum per wages employee (HR charge)

•      $20.00
per annum per WebChris user account

Should
the contract be extended into the second year, fees will be adjusted in line
with any change to the costs of providing the service.

 

Reviews/Meetings

 

Formal
quarterly meetings will be held between contract managers nominated below.

 

Contract Managers

 

Peter
Moss / Jon Hanlon will manage the CHRIS service provided by CSR. Brad Tallon /
Steve Williams will be responsible for ordering and reviewing service delivery
on behalf of RGL.

 

37

 

5              CSR HR: Transitional support services

 

Service to be provided

 

HR Support Services

 

The following services are
required by RGL for transitional assistance and advice:

 

•      Salary
Review process Management

•      STI
Scheme Management

•      Statutory
Reporting

•      Expatriate
and Secondee Administration

 

Term

 

Initial
Period: 01/04/03 - 30/09/03

 

Extension
Period: 01/10/03 - 31/03/04

 

Charges

 

Fees
will be calculated at an hourly rate of $ 110.00 for advice and assistance
provided by CSR HR.

 

Contract Managers

 

Peter
Moss and Margaret Larkin will provide this CSR Service. Damir Kucan with Debra
Jackson will be responsible for RGL.

 

38

 

6                                         CSR HR: Share and Option Plans

 

Service to be provided

 

Share and Option Plans

 

The
Service involves the administration of the Universal Share Option Plan (USOP),
the Transitional Share Plan (TSP), the Executive Share Option Plan (ESOP), the
Employee Share Acquisition Plan (ESAP) and the Cash Award Share Plan (CASP) for
Australian based RGL employees. Specifically this will involve:

 

•                          Maintaining
records of shares and options on the CHRIS data base.

•                          Communications
to share and option holders when necessary.

•                          Disposal
and transfer of shares/options.

•                          Complying
with legislative requirements.

•                          Dividend
distributions.

•                          Liaising
with Share Registry.

•                          Responding
to general enquiries.

•                          Excluded
is any share / option plan administration for USA employees.

 

Training
in processes:

 

•                          CSR will manage the transitional process in order to fully train the
RGL representative in all aspects of share and option plan management.

Term

 

Initial
Period 01/04/03 – 31/03/04

First
Extension Period 01/04/04 -30/09/04

Second
Extension Period 01/10/04 – 30/09/05

 

Charges

 

Fees
will be calculated on the following basis:

 

$
5,500.00 per month

 

Should
the contract be extended into the second year, fees will be adjusted in line
with any change to the costs of providing the service.

 

Reviews/Meetings

 

Formal
quarterly meetings will be held between contract managers nominated below.

 

Contract Managers

 

Margaret
Larkin will manage the service provided by CSR. Brad Tallon / Steve Williams
will be responsible for RGL.

 

39

 

7                                         CSR HR: Vehicle Administration

 

Service to be provided

 

Vehicle
administration - RMH owned and Novated

 

•                  New vehicles – prompt drivers to change over
in line with company policy; check and process orders

•                  Novated – assist senior managers with
documentation; liaise with LeasePlan throughout ordering process; record
vehicle charge on payroll; confirm revised remuneration package to employee.

•                  Process sales to employees and sale of
surplus vehicles

•                  Vehicle transfers – prompt managers following
driver termination/transfer; record transfers and FBT declarations

•                  Process infringements and manage those that
go to court

•                  Process authorities for accident damage
>$3,000 for company or third party vehicles. Provide managers with accident
details for all accidents.

•                  Provide external partners - LeasePlan and
Asset Capital - with changes to cost centres and drivers.

•                  Review and up-date CHRIS system with all
vehicle records to ensure FBT can be accurately and appropriately calculated a)
on a routine basis for display on payslips and b) at FBT year-end.

•                  Ensure proceeds received from LeasePlan for
all company owned vehicles sold by them.

•                  Maintain Vehicle Management website.

•                  Annual – administer re-registrations (common
expiry) at 1st April; administer insurance premium changes for
novated leases at 1st January; reconcile actual –vs- budget FBT for
novated lease 2nd vehicles and up-date payroll.

 

Training
in processes:

 

•                  Jane Thomas will manage the transitional
process in order to fully train Mary Ellen Durrance in all aspects of vehicle
management.

Term

 

Initial
Period 01/04/03 – 30/6/03

 

Extension
Period 01/7/03 -30/09/03

 

40

 

Charges

 

Fees will be calculated on the following basis:

 

$7,500 per month

 

RGL Resources

 

RGL will provide staff (Mary Ellen Durrance) at CSR’s premises to carry
out the administrative aspects of the activities described in 1 above during
the transition process.

 

Contract Managers

 

Jane Thomas (CSR) will manage the transitional process. (RGL) will
manage the process post transition that will include all aspects of vehicle
management.

 

Trevor Schmitt / Bruce Davis will be responsible for managing the
relationship with the vehicle provider.

 

Brad Tallon / Steve Williams will be responsible for the transactional
work carried out by Mary Ellen Durrance.

 

41

 

8                                         CSR HR: CHRIS system – Workers’ Compensation

 

Service to be provided

 

CHRIS Workers’ Compensation System

 

The
Service provides the software support required for Readymix to continue using
the CHRIS System Workers’ Compensation Module. The service includes :

 

•                  Maintenance and routine development of the
CHRIS software.

•                  Maintenance of CHRIS system security.

•                  Help Desk user support during business hours
(Sydney time).

•                  Electronic data reporting to state Workcover
authorities.

•                  Major system development work (including any
dataloads to a successor system) are excluded. These may be negotiated with
payment of an additional fee.

 

Term

 

Initial
Period 01/04/03 – 31/03/04

 

First
Extension Period 01/04/04 - 30/09/04

 

Second
Extension Period 01/10/04 – 31/03/05

 

Charges

 

Fees
will be calculated on the following basis:

 

$
6,500.00 per month.

 

Should
the contract be extended into the second year, fees will be adjusted in line
with any change to the costs of providing the service.

 

Reviews/Meetings

 

Formal
quarterly meetings will be held between contract managers nominated below.

 

Contract Managers

 

Peter
Moss / Jon Hanlon will manage the CHRIS Workers’ Compensation service provided
by CSR. Fleur Dooley / Helen Jones will be responsible for ordering and
reviewing service delivery on behalf of RGL.

 

42

 

9                                         CSR Workers Compensation: administration assistance
Yarraville.

 

Service to be provided

 

The
RGL southern regional office will be hiring an administration assistant in
either March or April 2003, depending on availability. RGL will require the
following transitional services from the CSR administration assistant at
Yarraville (Sandra Cook):

 

•                  Provide full claims administration services
until RGL assistant is available;

•                  Provide assistance with training and handover
of tasks to the new RGL administration assistant.

 

Term

 

Initial
Period: 01/04/03 - 30/06/03

 

Extension
Period: 01/07/03 -30/09/03

 

Charges

 

Fees
will be calculated on the following basis:

 

$28.00
per hour until the RGL administration assistant is hired and trained

 

RGL resources

 

RGL
will be responsible for ensuring the RGL administration assistant will be
located at the CSR’s premises during the transition period.

 

Contract Managers

 

Debbie
Schroeder will provide this CSR Service. Helen Jones will be responsible for
RGL.

 

43

 

10                                  CSR Workers Compensation:  Claims Advisor Queensland

 

Service to be provided

 

CSR
will continue to employ Len Clapshaw in the capacity of Claims Advisor in
Queensland.

 

Len
will be seconded to RGL and located at RGL offices at Milton on an ongoing full
time basis to provide claims management services

 

Term

 

Initial
Period: 01/04/03 – ongoing

 

Charges

 

Fees
will be calculated on the following basis:

 

•                  RGL will reimburse CSR for Len’s salary and
on-costs on a monthly basis;

•                  In the event that the Claims Advisor position
becomes redundant, RGL will be responsible for the cost of retrenchment.

 

Review meetings

 

Quarterly
review meetings will be held between contract Managers as below.

 

Contract Managers

 

Debbie
Schroeder will provide this CSR Service. Helen Jones will be responsible for
RGL.

 

44

 

11                                  CSR Procurement: Telstra Contract Negotiations

 

Service to be provided

 

Telstra
Demerger Contract Negotiations and Contract Drafting

 

The
objective of the service is to provide RGL with a commercially acceptable
‘Whole of Business Agreement’ with Telstra. The Agreement will reflect the
existing CSR Ltd agreement with Telstra and will only be modified to allow for
the demerged entities to participate, unless otherwise agreed. The services to
be provided by CSR are:

 

•                  Provide commercial negotiation leadership.

•                  Facilitate all contract meetings with
Telstra.

•                  Represent RGL in contract meetings with
Telstra when a RGL representative can not attend.

•                  Draft the Agreement and present to RGL
management and Legal team in a commercially acceptable form.

•                  Work in conjunction with CSR BIS group and
RGL IT department to effect the outcome.

 

Term

 

Initial
Period 01/04/03 – 30/6/03

 

Extension
Period 01/7/03 -30/08/03

 

Charges

 

Fees
will be calculated on the following basis:

 

•                  $100 per hour

 

RGL Resources

 

RGL
will provide access to personnel with authority to commit RGL contractually.

 

Reviews/Meetings

 

Meetings
will be held between contract managers when required.

 

Contract Managers

 

Penny
Harte (CSR) will manage the transitional process in conjunction with Bruce
Davis (RGL).

 

45

 

12                                  CSR FRG: Transitional accounting and reporting
assistance

 

Service to be provided

 

The
following services are required by RGL for accounting and reporting assistance
and incorporate training in processes to the appropriate RGL staff:

 

1.               Produce Yem03 RGL statutory Australian
accounts

 

2.               Produce YemO3 RGL 20F

 

3.               Attendance and participation at Yem03 BAC

 

4.               Assistance with establishing GRS on Rinker
computer systems

 

5.               Produce Yem03 BAC papers

 

6.               Provide requested historical files (hardcopy
and softcopy)

 

7.               Accounting standards and international
harmonization assistance.

 

8.               Provide assistance with Half Year End
September 2003 Accounts including group consolidation, eliminations, etc and
participation at BAC

 

9.               Provide assistance to establish accounting
manual and subsidiary details for RGL, currently maintained by CSR in Lotus
Notes

 

10.         Provide ongoing support to Tianjin re old chart of accounts

 

11.         Assistance with RGL Corporate Accounting set up and processes

 

12.         Assistance with TEASME

 

13.         Miscellaneous reporting requirements set up and processes

 

14.         Assistance with compilation of Bureau of Statistics returns

 

15.         Assistance with ASX/ASIC liaison

 

16.         Assistance with compilation of BAS statements

 

17.         Assistance with D&B and other credit reporting not in Treasury

 

18.         Assistance with PSA filings

 

19.         Assistance with Accounting / business organizations such as Group of
100

 

20.         Management Reporting advice, set up and processes

 

Term

 

Initial
Period 01/04/03 – 31/03/04

 

Extension
Period 01/04/04 -30/09/04

 

46

 

Charges

 

Fees will be calculated on the following basis:

 

•                          Monthly retainer of A$ 10,000 during initial
period of this agreement

 

•                          Out of
pocket expenses as agreed by the contract managers

 

•                          Monthly
retainer to be reviewed
following completion of HYE and YE Accounts to determine whether a variation to
this agreement is appropriate

 

The above fees do no include items 1 and 2 listed in section 1 of this
schedule. They are provided for as part of the YEM03 demerger costs.

 

RGL Resources

 

It is the responsibility for RGL to initiate the requests for services
and provide appropriate RGL staff to be trained. A schedule detailing RGL
staffing responsible for the transition tasks will be provided.

 

Contract Managers

 

Martin Buckland will be responsible for managing and reviewing service
delivery on behalf of RGL. Edwin Smith will manage the Accounting and Reporting
service provided by CSR.

 

47

 

13                                  CSR Taxation: Cross training in tax
processes

 

Service to be
provided

 

For general
tax advice within the CSR and RGL groups, rather than duplicating research,
there will be a period of sharing taxation expertise and knowledge of tax
procedures and processes. With time, this will reduce but it is anticipated
that there will be ongoing cross sharing in the future.

 

Term

 

Generally, there will be an initial period of 1 April 2003 to 30
September 2003.

 

This will be extended to cover the period October 2003 to December 2004
for matters relating to knowledge for various matters including subdivision
149-B of the Income Tax Assessment Act 1997, tax consolidations
etc.

 

Work that commenced pre demerger in relation to RGL will be included in
this initial period and extension.

 

In addition to the above, Robyn Farrell will be available to assist RGL
as needed for taxation advice
on human resources and employee share plan matters. Such assistance will not be confined only to these areas but
will cover taxation advice of a specialised nature in other areas. It is
anticipated Robyn’s assistance will average
out at 20% of normal time and will be contributed on a defined project basis rather then a specific day
per week. This additional assistance
will be for 12 months commencing on 1 April 2003. Further periods may be
negotiated.

 

Charges

 

It has been agreed that there will be no charges for general services
due to sharing of expertise
between the two companies which will balance each other.

 

Robyn Farrell’s expertise will be provided for a monthly charge of
$3,000. This will be reviewed after 6 months. If RGL are of the
opinion this resource has been under-utilised
after 6 months, they may request changes. If circumstances permit, CSR and RGL may agree to replace this monthly
charge with a negotiated success fee arrangement.

 

Reviews/Meetings

 

As and when required however, it is anticipated that tax returns for
the year ended 30 March 2003
will be prepared jointly.

 

Contract Managers

 

CSR:  Peter McGuigan

 

RGL:  Kamlesh Davé

 

48

 

14           CSR Treasury: Treasury services

 

Service to be provided

 

Completion of initial implementation of Integra T
system for RGL

 

The service provides for completion of the initial implementation of
the Integra T system for RGL on the RGL server in West Palm Beach, Florida if
not completed by March 31, 2003. This includes the complete transfer of all
March 31, 2003 month end RGL data from the Sydney server to the West Palm Beach
server and completion of deliverables.

 

Updates to any CSR custom changes to the Integra T
Treasury system

 

The service provides using the services of John Kamenitsas for
obtaining the changes after April 1 made by CSR to the Integra T reports or
other changes not standard with Integra T

 

Consulting on Integra T system use

 

The service provides for questions about entering transactions, month
end accounting or obtaining reports from the Integra T system, using the
services of John Kamenitsas for accounting months April to June 2003, and Grant
Helm for accounting months April and May 2003.

 

Consulting on Treasury matters

 

The service provides for explanation of items arranged by CSR Treasury
prior to April 1, 2003 and advice on contemplated transactions after April 1,
2003.

 

Preparation of all FAS 133 calculations for March 31,
2003 accounting

 

The service provides for preparation of detailed schedules of all open
interest rate swaps or other derivatives at March 31, 2003, determining all
classification and marking to market calculations required by the
pronouncement, and obtaining auditor signoff of the result. It also provides
for the transmittal to Rinker Materials or any other RGL Group company of the
US GAAP adjusting entries and cumulative accounting entries in both US and
Australian dollars, plus training in the processes followed to enable RGL to
replicate in future periods.

 

Assistance in establishing Treasury Policies for RGL

 

The service provides for advising on the purpose and working of current
CSR Treasury Policies, and providing electronic copies in WORD of existing CSR
Treasury policies.

 

49

 

Term

 

Initial Period 01/04/03 – 30/09/03

 

Extension Period 01/10/03 -31/03/04

 

Charges

 

Fees will be calculated on the following basis:

 

•      Monthly retainer of A$1,000.00 during
initial period of this agreement

 

Reviews/Meetings

 

Informal telephone conferences will be held between contract managers
as required.

 

Contract Managers

 

The CSR Treasury manager will manage the service provided by CSR.
Michael Zern will be responsible for ordering and reviewing service delivery on
behalf of RGL.

 

50

 

15           CSR Treasury: Vehicle Finance support

 

Service to be provided

 

Accounting administration

 

•      Maintain
cost centre activity, (month end and year end).

 

•                  Processing all journal entries for
acquisitions, rentals, disposals as per advice

from Jane Thomas

 

•      Organise
payment to Asset Capital for administration work

 

Cashflows

 

•                  Process all cash flows for acquisitions from
LeasePlan Australia and disposals

from all sources.

 

Term

 

Initial Period 01/04/03 – 30/6/03

 

Extension Period 01/7/03 -30/09/03

 

Charges

 

Fees will be calculated on the following basis:

 

•      $500 per month for CSR Treasury
administration services

 

•      50% of the monthly ‘Asset Capital’ service
fee

 

Contract Managers

 

CSR: Grant Helm

 

RGL: Michael Larkin

 

51

 

16           CSR Strategy: Advice

 

Service to be provided

 

“Informal Advice”: CSR strategy group (including Tony Carlton
and team) will be available on an ad hoc basis to provide broad council to RGL
strategy group (Dave Berger, Michael Kelly, Peter Trimble) including specific
issues related to the Heavy Construction Materials Industry, valuations/reports
related to prior relevant projects (e.g., Jacaranda) and RGL’s corporate
finance strategy (e.g., WACC, equity listing issues).

 

This schedule is intended to cover services provided to RGL at cost to
the extent they become material (ie, more than 20% of a specific individual’s
time).

 

Note: Contingency formal advice required
(e.g. in the event of a hostile takeover) is covered in a separate letter of
agreement dated 11th March 2003.

 

Term

 

Initial Period: 1/4/03 – 31/3/04

 

Charges

 

Fees will be calculated at cost on an hourly rate basis for advice and
assistance provided by CSR.

 

Reviews/Meetings (Optional)

 

Meetings will be arranged when required on an as needs basis.

 

Contract Managers

 

CSR: Tony Carlton

 

RGL: David Berger

 

52

 

17           CSR Property: Rent 9 Help Street
Chatswood

 

Service to be provided

 

This service schedule outlines the components of the occupancy by RGL
at 9  Help St, Chatswood during
April 2003.

 

Term

 

Initial Period 01/04/03 - 1/05/03

 

First Extension Period 2/05/03-31/05/03

 

Charges

 

The following rental charge is based on the YEM04 Building services
budget costs for a tenancy area of 600 sqm:

 

	
   

  	
   

  	
   

  	
   

  	
  Per month:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rental

  	
   

  	
  $

  	
  310 

  	
   per sqm per annum

  	
   

  	
  15,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Outgoings

  	
   

  	
  $

  	
  72 

  	
   per sqm per annum

  	
   

  	
  3,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carparking: 20 spaces

  	
   

  	
  $

  	
  218 

  	
   per space per month

  	
   

  	
  4,360

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Building services

  	
   

  	
  $

  	
  83 

  	
   per sqm per annum

  	
   

  	
  4,150

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total rental per month

  	
   

  	
   

  	
   

  	
  27,610

  	
   

  

 

Contract Managers

 

CSR: Andrew MacKenzie

 

RGL: Trevor Schmitt

 

53

 

18           Corporate functions other

 

Service to be provided

 

The
service, to be provided by both CSR and RGL as required to give effect to the
Demerger, is the provision of advice and assistance in performing various
corporate functions not covered by other schedules to the Agreement, and the
sharing of experience, corporate memory and latest intelligence on best
practice.

 

Term

 

Initial
Period 1 April 2003 to 31 March 2004, to be extended by agreement between the
parties.

 

Charges

 

There
will be no charges for services unless significant time is required to provide
assistance, in which case a charging mechanism will be negotiated in good
faith.

 

Contract Managers

 

To
be appointed for each corporate function, but initially:

 

•                 Company Secretary: Graham Hughes (CSR) and
Peter Abraham (RGL)

 

•                 Legal: Chris Bertuch (CSR) and Brian Gill
(RGL)

 

•                 Investor Relations & Corporate Affairs:
Andree Taylor (CSR) and Debra Stirling & Luke Keighery (RGL)

 

54

 

19           CSR BIS: Tier 1 Help Desk

 

Service to be provided

 

Tier I Information Technology Help Desk

 

This
service is to provide Readymix Holdings with Tier I Help Desk support during
the migration of IT services to the RGL IT group residing in West Palm Beach
(US) and Parramatta (AU). The term or duration of this service is during the
deployment of TPIP’s and the conversion from the CSR domain to the Rinker Group
domain. Services Include:

 

•              Tier
I Help Desk Call Management

•              Logging
and recording of individual support calls in Help Desk application

•              Level
One call resolution

•              End
user follow up until closure of case.

 

Term

 

Initial
Period: Follows TPIP’s Rollout April 2003 – October 2003 

 

Extension
Period: November 2003 – January 1, 2004

 

Charges

 

Fees are expected to be
charged as below, based on the current TPIPs migration plan.

 

	
  Team

  	
   

  	
  YEM 04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Helpdesk - CSR rechg

  	
   

  	
  $

  	
  85,500    

  	
   

  	
  Vic

  	
   

  	
  $

  	
  5,400

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  recharge price

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  7,700

  	
   

  	
  $

  	
  7,700

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $ 25.0

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  3,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  3,300

  	
   

  	
  $

  	
  3,300

  	
   

  	
  $

  	
  3,300

  	
   

  	
  $

  	
  3,300

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  3,000

  	
   

  
																												

 

If
the service needs to continue into the Extension Period, the charge will be
A$25 per user per month.

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday 8am (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR.  Bill Gearhart and Neville Hansen will be
responsible for ordering and reviewing service delivery on behalf of RGL.

 

55

 

20           CSR BIS: PC and Desktop Support

 

Service to be provided

 

PC and Desktop Support Services

 

This
service is to provide Readymix Holdings with PC and Desktop computing related
support during the migration of IT services to the RGL IT group residing in
West Palm Beach (US) and Parramatta (AU). The costs in point 4 cover these
support services. The term or duration of this service is during the deployment
of TPIP’s and the conversion from the CSR domain to the Rinker Group domain.

 

All
desktop PCs, laptops, winterms and printer assets used by CM will be
transferred at book value to RGL on 31 March 2003. Microsoft, PC Anywhere,
Norton Anti-virus and other PC application software licences will be
transferred to RGL at cost on 31 March 2003.

 

Term

 

Initial
Period: Follows TPIP’s Rollout April 2003 – October 2003 

 

Extension
Period: November 2003  January 1, 2004

 

Charges

 

Fees
are expected to be charged as shown in the table below which is based on the
current TPIPs migration plan. These total costs have been calculated using the
following per device support costs.

 

Desktop
PC $85 per mm

Laptop
PC $125 per mth

Winterm
$52.50 per mth

Networked
printer $37.50 per mth

 

	
   

  	
   

  	
  YEM 04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Desktop - CSR rechg

  	
   

  	
  $

  	
  345,370

  	
   

  	
  Vic

  	
   

  	
  $

  	
  19,993

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  29,298

  	
   

  	
  $

  	
  29,298

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  10,108

  	
   

  	
  $

  	
  10,108

  	
   

  	
  $

  	
  10,108

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  13,665

  	
   

  	
  $

  	
  13,665

  	
   

  	
  $

  	
  13,665

  	
   

  	
  $

  	
  13,665

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  12,925

  	
   

  
																												

 

If
the service needs to continue into the Extension Period, the charge will
continue based on the per device costs shown above.

 

56

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday 8am (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR.  Bill Gearhart and Neville Hansen will be
responsible for ordering and reviewing service delivery on behalf of RGL.

 

57

 

21           CSR BIS: NT Server Support

 

Service to be provided

 

NT Server Support

 

This service is to provide Readymix Holdings with NT Server Support
during the migration of IT services to the RGL IT group residing in West Palm
Beach (US) and Parramatta (AU). The term or duration of this service is during
the deployment of TPIP’s and the conversion from the CSR domain to the Rinker
Group domain. The support charges in point 4 of this schedule cover people and
shared costs of supporting the NT servers and CSR domain.

 

All specific CM server assets and related server licences are to be
transferred to RGL on 31 March 2003. The servers will be transferred at book
value, while the licences will be transferred at cost. The book value of an
appropriate share of the current server farms will also be transferred to RGL
on 31 March 2003.

 

Term

 

Initial Period: Follows TPIP’s Rollout April 2003 – October 2003 

 

Extension Period: November 2003 – January 1, 2004

 

Charges

 

Fees are expected to be charged as below, based on the current TPIPs
migration plan.

 

	
   

  	
   

  	
  YEM 04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NT Services - CSR rechg

  	
   

  	
  $

  	
  214,434

  	
   

  	
  Vic

  	
   

  	
  $

  	
  13,543
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  recharge
  price

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  19,312

  	
   

  	
  $

  	
  19,312

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $62.7

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  7,524

  	
   

  	
  $

  	
  7,524

  	
   

  	
  $

  	
  7,524  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  8,276

  	
   

  	
  $

  	
  8,276

  	
   

  	
  $

  	
  8,276

  	
   

  	
  $

  	
  8,276

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  7,524

  
																												

 

If the service needs to continue into the Extension Period, the charge
will be A$62.70 per user per month. A user is defined by the existence of a
current network logon to the CSR domain.

 

Reviews/Meetings

 

Weekly progress meeting held each Friday 8am (AU) on the progress of
the Demerger of IT systems. Any timing or issues resolution will be handled in
this forum.

 

Contract Managers

 

Ole Elsaesser or Assignee will manage the services provided by CSR.
Bill Gearhart and Neville Hansen will be responsible for ordering and reviewing
service delivery on behalf of RGL.

 

58

 

22           CSR BIS: Email

 

Service to be provided

 

Email Services

 

This
service is the support of CSR’s existing Email application @csr.com.au. Each
RGL employee’s email account will be hosted and supported by CSR until the
transition to TPIPs and the RGL network.

 

Exchange
and SMS licences for CM specific servers will be transferred to RGL/Readymix on
31 March 2003. RGL will pay for these licences from that date.

 

Term

 

Initial
Period: Follows TPIP’s Rollout April 2003 – October 2003 

 

Extension
Period: November 2003 – January 1, 2004

 

Charges

 

Fees
are expected to be charged as below, based on the current TPIPs migration plan.

 

	
  Team

  	
   

  	
  YEM 04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Email - CSR rechg

  	
   

  	
  $

  	
  88.920

  	
   

  	
  Vic

  	
   

  	
  $

  	
  5,616  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  recharge
  price

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  8,008

  	
   

  	
  $

  	
  8,008

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $26.0

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  3,120

  	
   

  	
  $

  	
  3,120

  	
   

  	
  $

  	
  3,120

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  3,432

  	
   

  	
  $

  	
  3,432

  	
   

  	
  $

  	
  3,432

  	
   

  	
  $

  	
  3,432

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  3,120

  
																												

 

If
the service needs to continue into the Extension Period, the charge will be
A$26 per user per month.

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday 8am (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR. Bill Gearhart
and Neville Hansen will be responsible for ordering and reviewing service
delivery on behalf of RGL.

 

59

 

23           CSR BIS: Wide Area Network Support

 

Service to be provided

 

Wide Area Network (WAN) Support Services

 

This
service is to provide Readymix Holdings with Wide Area Network Support during
the migration of IT services to the RGL IT group residing in West Palm Beach
(US) and Parramatta (AU). The term or duration of this service is during the
deployment of TPIP’s and the conversion from the CSR domain to the Rinker Group
domain.

 

There
are currently various services and costs in relation to the WAN. These are
listed below sorted by whether it will be provided by CSR during the deployment
of TPIPs or transferred to RGL from the 31st of March 2003.

 

Services
/ costs that will be delivered and charged by CSR to RGL

 

•                       Network support during transition to TPIPs
{TPIPs + 1 mth}

 

•                       Cost of regional hub site connections to the
old network {TPIPs + 1 mth}

 

Services/costs
that will be transferred directly to RGL from 31 March 2003 are:

 

•                       Telstra site costs for connection to the CSR
WAN

 

•                       Telstra site costs for connection to TPIPs

 

•                       50% of the cost of the ‘core backbone’ of the
old network

 

•                       Telstra cost for the 6MB link between
Australia and Florida

 

•                       80% of the Telstra cost of the Parramatta 6MB
link {until the line is downgraded, then full cost of the link will be
transferred}

 

•                       the Telstra DDS account

 

•                       50% of the Telstra cost for the link to China

 

•                       the book value of switches, routers and other
site hardware used by CM sites

 

•                       the book value of IO-LAN and DEC servers (if
any)

 

•                       the Marconi MDX maintenance contract

 

Services
that will cease being provided by CSR and that will be set up and provided by
RGL to its Australian sites and employees are:

 

•                       dialconnect ports / links

 

60

 

Services that will not be transferred to RGL but will remain with CSR
and not be recharged:

 

•                       the cost of
the link to Taiwan

 

Term

 

Initial Period: Follows TPIP’s Rollout April 2003 - October 2003 plus
one month to retire final data circuits.

 

Extension Period: November 2003 - January 1, 2004

 

Charges

 

Fees are expected to be charged as below, based on the current TPIPs
migration plan. One month’s charge is to be added to each site to allow for cut
over to TPIPs.

 

	
   

  	
   

  	
  YEM 04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  	
  Nov

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WAN/LAN-CSR rechg

  	
   

  	
  $

  	
  101,838

  	
   

  	
  Vic CSR

  	
   

  	
  $

  	
   3,280

  	
   

  	
  $

  	
   3,280

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld CSR

  	
   

  	
  $

  	
   6,489

  	
   

  	
  $

  	
   6,489

  	
   

  	
  $

  	
   6,489

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT & SA CSR

  	
   

  	
  $

  	
   2,250

  	
   

  	
  $

  	
   2,250

  	
   

  	
  $

  	
  2,250

  	
   

  	
  $

  	
   2,250

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA CSR

  	
   

  	
  $

  	
   4,111

  	
   

  	
  $

  	
   4,111

  	
   

  	
  $

  	
  4,111

  	
   

  	
  $

  	
   4,111

  	
   

  	
  $

  	
   4,111

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas CSR

  	
   

  	
  $

  	
   837

  	
   

  	
  $

  	
   837

  	
   

  	
  $

  	
   837

  	
   

  	
  $

  	
   837

  	
   

  	
  $

  	
   837

  	
   

  	
  $

  	
   837

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW CSR

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  	
  $

  	
   5,155

  	
   

  
																															

 

Telstra Charges will be billed directly to Readymix Holdings
Infrastructure beginning April 2003.

 

If services are required in the Extension Period, charges will be
levied by site in accordance with the calculation methodology used to calculate
the State charges above.

 

In addition to the above, RGL will contribute to the labour cost
incurred by CSR in undertaking the migration to TPIPs. It is estimated that
this cost will be approximately $80,000, which is based on the cost to CSR of a
resource to undertake the project in YEM 04 apportioned by the percentage of
total Australian sites that are CM sites.

 

	
  TPIPs
  project people costs

  	
   

  	
  $

  	
  80,000

  

 

Reviews/Meetings

 

Weekly progress meeting held each Friday 8am (AU) on the progress of
the Demerger of IT systems. Any timing or issues resolution will be handled in
this forum.

 

Contract Managers

 

Ole Elsaesser or Assignee will manage the services provided by CSR.
Bill Gearhart and Neville Hansen will be responsible for ordering and reviewing
service delivery on behalf of RGL.

 

61

 

24           CSR BIS: E-Commerce

 

Service to be provided

 

E-Commerce

 

This
service is to provide Readymix Holdings with Internet access and access to the
CSR Intranet during the migration of IT services to the RGL IT group residing
in West Palm Beach (US) and Parramatta (AU). The term or duration of this
service is during the deployment of TPIP’s and the conversion from the CSR
domain to the Rinker Group domain. Services Include:

 

•                   Employee Internet Access and Filtering

 

•                   Employee Intranet Access to ‘web.csr.com.au’

 

•                   Assistance on existing Internet Sites migrated to West Palm Beach on January 27, 2003.

 

Term

 

Initial
Period: Follows TPIP’s Rollout April 2003 – October 2003

 

Extension
Period: November 2003 – January 1, 2004

 

Charges

 

Fees
are expected to be charged as below, based on the current TPIPs migration plan.

 

	
  Team

  	
   

  	
  YEM 04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Intranet CSR rechg

  	
   

  	
  $

  	
  27,360

  	
   

  	
  Vic

  	
   

  	
  $

  	
   1,728

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  recharge price

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
   2,464

  	
   

  	
  $

  	
   2,464

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $3.0

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
   960

  	
   

  	
  $

  	
   960

  	
   

  	
  $

  	
   960

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
   1,056

  	
   

  	
  $

  	
   1,056

  	
   

  	
  $

  	
   1,056

  	
   

  	
  $

  	
   1,056

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
   224

  	
   

  	
  $

  	
   224

  	
   

  	
  $

  	
   224

  	
   

  	
  $

  	
   224

  	
   

  	
  $

  	
   224

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
   1,920

  	
   

  	
  $

  	
   1,920

  	
   

  	
  $

  	
   1,920

  	
   

  	
  $

  	
   1,920

  	
   

  	
  $

  	
   1,920

  	
   

  	
  $

  	
   1,920

  	
   

  	
  $

  	
   1,960

  	
   

  
																												

 

If
the service needs to continue into the Extension Period, the charge will be A$8
per user per month.

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday Sam (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR. Bill Gearhart
and Neville Hansen will be responsible for ordering and reviewing service
delivery on behalf of RGL.

 

62

 

25           CSR BIS: Voice Services

 

Service to be provided

 

Voice Services

 

All
Voice Services will be transferred to RGL at the end of March 31, 2003. This
implies that there will be not charge from CSR to RGL from 1 April 2003 for
voice services. The exception to this is in relation to time and materials
support and is described below.

 

RGL
will pay the labour costs of a voice support team. All CM specific voice
hardware such as site PABXs and queuing systems currently in the asset register
of BIS will be transferred to RGL at book value. The contract for maintenance
of RGL PABXs will be separately charged to RGL by the maintenance vendor.

 

There
is expected to be some voice advice and support provided by Rinker to CSR, and
by CSR to Rinker post demerger. Time spent on such support between the
companies will be monitored and where there exists a disparity in support
provided by one company to the other, a charge will be levied on a time and
materials basis for the time constituting the disparity.

 

Term

 

Initial
Period: All Services to be transferred on March 31, 2003

 

Extension
Period: Any Services required post March 31 will be billed at actual time and
materials cost.

 

Charges

 

All
voice services are to be transferred on 31 March, 2003.   Any services required post this date will
be billed at actual time and materials cost.

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday 8am (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR. Bill Gearhart
and Neville Hansen will be responsible for ordering and reviewing service
delivery on behalf of RGL.

 

63

 

26                                  CSR BIS: SAP and Command / ACS data centre and support

 

Service to be provided

 

SAP Support

 

All
SAP support services will be transferred from April 1,2003. This includes the
following:

 

•                 Hardware – Since 26 Jan 2003 all Australian
RGL users access SAP on the Rinker SAP instance in West Palm Beach. There is
therefore no hardware charge  from CSR
to RGL in the new financial year commencing 1 April 2003.

 

•                 Application Support for SAP, Command and ACS
will be provided by people employed by RGL from 1 April 2003

 

•                 Licences – the prepayment for SAP licences
used by CM for calendar 2003 will be transferred to RGL at the end of 31 March
2003

 

There
is expected to be some applications support provided by Rinker to CSR, and by
CSR to Rinker post demerger. Time spent on such support between the companies
will be monitored and where there exists a disparity in support provided by one
company to the other of greater than 2 weeks, a charge will be levied on a time
and materials basis for the time constituting the disparity.

 

Term

 

Initial
Period: All services to be transferred by April 1,2003

 

Extension
Period: Any services required post April 1 will be billed at actual time and
materials cost.

 

Charges

 

All
services are to be transferred on March 31, 2003. Any services required post
April 1 will be billed at actual time and materials cost.

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday 8am (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR. Bill Gearhart
and Brad Tallon will be responsible for ordering and reviewing service delivery
on behalf of RGL.

 

64

 

27           CSR BIS: Miscellaneous Applications
Support

 

Service to be provided

 

Miscellaneous Software Support

 

This  service is to provide
Readymix Holdings with Hardware/Software support for 4 applications current in
use by Readymix Holdings. These are:

 

•              Lotus Notes software support

 

•              Promix Asia data centre support

 

•              Promix Asia applications support
(25% 1 FTE)

 

•              CHRIS data centre support

 

Applications not supported for Readymix
Holding by CSR post March 31, 2003

 

•          Promaster – There will
be no charge to RGL in YEM04 for this application. CM’s contribution to the
cost of this application will be charged in YEM 03.

 

•          Integrity – This
Treasury application will be hosted and supported from West Palm Beach

 

•          IBHAR Project Costs–
This software application will be hosted and supported from by Readymix
holdings in Parramatta. No Services required by CSR.

 

•          MEX Project Costs – No
Services required by CSR, fully support by Readymix Holdings

 

•          IXOS – Separate Service
Agreement within documents provided by the Readymix Holdings BSC department.

 

Term

 

Initial Period: As required by Readymix Holdings on a Month per Month
basis but not to exceed the conversion of Chris to SAP payroll hosted in West Palm
Beach which Initial period ends on March 31, 2004.

 

Extension Period: September 30, 2004

 

65

 

Charges

 

Fees will be calculated on the following basis:

 

	
   

  	
   

  	
  Monthly Rate

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lotus support - S Stam

  	
   

  	
  $

  	
  8,400

  	
   

  	
  Applications Support Only -
  Licensing to be paid by RH IT beginning April 1, 2003

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Promix Asia DC support

  	
   

  	
  $

  	
  3,500

  	
   

  	
  Includes Hardware, People
  and Licensing

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHRIS data centre

  	
   

  	
  $

  	
  4,600

  	
   

  	
  Supports # of Users and
  Hardware

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Promix app supp 25% 1 FTE

  	
   

  	
  $

  	
  2,083

  	
   

  	
  Applications Support

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VAX - Command

  	
   

  	
  N/C

  	
   

  	
  Hardware and Multinet - RH
  IT to pay maintenance from April 1, 2003

  

 

Lotus Notes Support estimated at 3 months at $25,000 total. The
remaining apps are month to month. Should any of these services continue into
the Extension Period, the charge will be as per the per month charges shown
above.

 

Reviews/Meetings

 

Weekly progress meeting held each Friday 8 am (AU) on the progress of
the Demerger of IT systems. Any timing or issues resolution will be handled in
this forum.

 

Contract Managers

 

Ole Elsaesser or Assignee will manage the services provided by CSR.
Bill Gearhart and Brad Tallon will be responsible for ordering and reviewing
service delivery on behalf of RGL.

 

66

 

28           CSR BIS: Miscellaneous Support

 

Service to be provided

 

Miscellaneous support

 

There
may be some applications or management support provided by Rinker to CSR, and
by CSR to Rinker post demerger. Time spent on such support between the
companies and the labour costs of the persons providing this support will be
monitored and where there exists a disparity in the cost of support provided by
one company to the other, a charge will be levied on a time and materials basis
for the time constituting the disparity.

 

Term

 

Initial
Period: All miscellaneous support services are likely to be transferred by
April 1, 2003

 

Extension
Period:  Any services required post
April 1 will be billed at actual time and materials cost.

 

Charges

 

All
services are to be transferred on March 31, 2003.  Any services required post April 1 will be billed at actual time
and materials cost.

 

Reviews/Meetings

 

Weekly
progress meeting held each Friday 8am (AU) on the progress of the Demerger of
IT systems. Any timing or issues resolution will be handled in this forum.

 

Contract Managers

 

Ole
Elsaesser or Assignee will manage the services provided by CSR. Bill Gearhart
and Neville Hansen will be responsible for ordering and reviewing service
delivery on behalf of RGL.

 

67

 

Schedule 2 – Agreed Service Schedule

 

Any schedules attached
subsequent to the signing of this agreement are to be attached below. The
format to be provided is the same format as applied to schedule 1.

 

68

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