Document:

Exhibit 4.4

 

EXECUTION COPY

 

 

Registration Rights Agreement

 

 

Dated as of May 19,
2006

 

among

 

FEI Company

 

and

 

Merrill Lynch & Co.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Needham & Company, LLC

Thomas Weisel Partners LLC

D.A. Davidson & Co.

and

Merriman Curhan Ford & Co.

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (the ”Agreement”) is made and entered into this 19th day of May,
2006, among FEI Company, an Oregon corporation (the ”Company”),
and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Needham & Company, LLC, Thomas Weisel Partners LLC, D.A.
Davidson & Co. and Merriman Curhan Ford & Co. (collectively, the ”Initial Purchasers”).

 

This Agreement is made pursuant to the
Purchase Agreement, dated as of May 15, 2006, among the Company and the Initial
Purchasers (the ”Purchase Agreement”),
which provides for the sale by the Company to the Initial Purchasers of an
aggregate of $100,000,000 aggregate principal amount ($115,000,000 principal amount
if the Initial Purchasers exercise their option in full) of the Company’s 2.875%
Convertible Subordinated Notes due 2013 (the ”Securities”).  In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Company has agreed to provide the
registration rights set forth in this Agreement.  The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

 

In consideration of the foregoing, the
parties hereto agree as follows:

 

1.             Definitions.

 

As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

 

“1933 Act”
shall mean the Securities Act of 1933, as amended from time to time.

 

“1934 Act”
shall mean the Securities Exchange Act of l934, as amended from time to time.

 

“1939 Act” shall
mean the Trust Indenture Act of 1939, as amended from time to time.

 

“Closing Date”
shall mean the First Delivery Date as such term is defined in the Purchase
Agreement.

 

“Common Stock”
shall mean any shares of common stock, no par value, of the Company and any
other shares of common stock as may constitute “Common Stock” for purposes of
the Indenture.

 

“Company” shall
have the meaning set forth in the preamble and shall also include the Company’s
successors.

 

“Depositary”
shall mean The Depository Trust Company, or any other depositary appointed by
the Company, provided, however, that such
depositary must have an address in the Borough of Manhattan, in the City of New
York.

 

“Holder” shall
mean an Initial Purchaser, for so long as it owns any Registrable Securities,
and each of its successors, assigns and direct and indirect transferees who
become registered owners of Registrable Securities under the Indenture.

 

1

 

“Indenture”
shall mean the Indenture relating to the Securities, dated as of the date
hereof, between the Company and The Bank of New York Trust Company, as trustee,
as the same may be amended, supplemented, waived or otherwise modified from
time to time in accordance with the terms thereof.

 

“Initial Purchaser”
or “Initial Purchasers” shall have the
meaning set forth in the preamble.

 

“Majority Holders”
shall mean the Holders of a majority of the aggregate principal amount of
outstanding Registrable Securities; provided that, for purposes of this
definition, a Holder of shares of Common Stock which constitute Registrable
Securities and issued upon conversion of the Securities shall be deemed to hold
an aggregate principal amount of Registrable Securities (in addition to the
principal amount of other Securities held by such Holder) equal to the product
of (x) the number of such shares of Common Stock held by such Holder and
(y) the conversion rate in effect at the time of such conversion
determined in accordance with the Indenture; provided  further that
Registrable Securities held by the Company or any Affiliate (as defined in the
Indenture) of the Company shall be disregarded in determining whether such
consent or approval was given by the Holders of such required percentage
amount.

 

“Option Closing Date”
shall mean the Optional Delivery Date, as such term is defined in the Purchase
Agreement, or if the Initial Purchasers do not exercise their option to
purchase additional Securities pursuant to the terms of the Purchase Agreement,
“Option Closing Date” shall mean the
Closing Date.

 

“Person” shall
mean an individual, partnership (general or limited), corporation, limited
liability company, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

 

“Prospectus”
shall mean the prospectus included in a Shelf Registration Statement, including
any preliminary prospectus, any “issuer-free writing prospectus,” as such term
is defined in Rule 433 under the 1933 Act, and any such prospectus as
amended or supplemented by any prospectus supplement, including any such
prospectus supplement or free writing prospectus with respect to the terms of
the offering of any portion of the Registrable Securities covered by a Shelf
Registration Statement, and by all other amendments and supplements to a
prospectus or free writing prospectus, including post-effective amendments, and
in each case including all material incorporated by reference therein.

 

“Purchase Agreement”
shall have the meaning set forth in the preamble.

 

“Registrable Securities”
shall mean all or any of the Securities issued from time to time under the
Indenture in registered form, and the shares of Common Stock issuable upon
conversion of such Securities; provided, however,
that any such Securities shall cease to be Registrable Securities when (i) a
Shelf Registration Statement with respect to such Securities shall have been
declared effective under the 1933 Act and such Securities shall have been
disposed of pursuant to such Shelf Registration Statement, (ii) such Securities
have been or may be sold or transferred to the public pursuant to Rule l44 (or
any similar provision then in force,

 

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including Rule 144(k) but not Rule 144A)
under the 1933 Act, or (iii) such Securities shall have ceased to be
outstanding.

 

“Registration Expenses”
shall mean any and all expenses incident to performance of or compliance by the
Company with this Agreement, including without limitation:  (i) all SEC, stock exchange or National
Association of Securities Dealers, Inc. (the ”NASD”)
registration and filing fees, including, if applicable, the fees and expenses
of any “qualified independent underwriter” (and its counsel) that is required
to be retained by any holder of Registrable Securities in accordance with the
rules and regulations of the NASD, (ii) all fees and expenses incurred in
connection with compliance with state securities or blue sky laws and
compliance with the rules of the NASD (including reasonable fees and disbursements
of counsel for any underwriters or Holders in connection with blue sky
qualification of any of the Registrable Securities and any filings with the
NASD), (iii) all expenses of the Company in preparing or assisting in
preparing, word processing, printing and distributing any Shelf Registration
Statement, any Prospectus, any amendments or supplements thereto, any
securities sales agreements and other documents relating to the performance of
and compliance with this Agreement, (iv) all fees and expenses incurred in
connection with the listing, if any, of any of the Registrable Securities on
any securities exchange or exchanges, (v) all rating agency fees, (vi) the
fees and disbursements of counsel for the Company and of the independent public
accountants of the Company, including the expenses of any special audits or “comfort”
letters required by or incident to such performance and compliance,
(vii) the reasonable fees and expenses of the Trustee, and any escrow
agent or custodian, (viii) the reasonable fees and expenses of a single
counsel to the Holders in connection with the Shelf Registration Statement,
which counsel shall be selected by the Majority Holders, and any fees and
expenses of any special experts retained by the Company in connection with any
Shelf Registration Statement, but excluding any underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by a Holder.

 

“SEC” shall mean
the Securities and Exchange Commission or any successor agency or government
body performing the functions currently performed by the United States
Securities and Exchange Commission.

 

“Shelf Registration”
shall mean a registration effected pursuant to Section 2.1 hereof.

 

“Shelf Registration Statement”
shall mean a “shelf” registration statement of the Company pursuant to the
provisions of Section 2.2 of this Agreement which covers all of the Registrable
Securities on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements
to such registration statement, including post-effective amendments, in each
case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Trustee” shall
mean the trustee with respect to the Securities under the Indenture.

 

“Well-Known Seasoned Issuer”
shall have the meaning set forth in Rule 405 under the 1933 Act.

 

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2.             Registration Under the 1933 Act.

 

2.1           Shelf Registration.

 

(a)           The
Company shall, at its cost, not later than 120 days after the Closing Date,
file the Shelf Registration Statement relating to the offer and sale of the
Registrable Securities by the Holders that have provided the information
pursuant to Section 2.1(d) with the SEC, and thereafter shall use its
commercially reasonable efforts to cause such Shelf Registration Statement to
become effective as promptly as is practicable, but in no event later than 210
days after the Closing Date; provided, however,
that in the event that the Company is eligible for, and elects to utilize, the “automatic
shelf” registration procedure on Form S-3 available to Well-Known Seasoned
Issuers, the only obligation of the Company under this Section 2.1(a) shall be
to file a Shelf Registration Statement with the SEC no later than 150 days
after the Closing Date, which Shelf Registration Statement shall become
immediately effective upon filing pursuant to the SEC rules adopted in Release
No. 33-8591; provided, further, that the
Company may, upon written notice to all Holders, defer the filing or the
effectiveness of the Shelf Registration Statement, or defer the filing of the
Shelf Registration Statement if the Company is eligible for, and elects to
utilize, the “automatic shelf” registration procedure, for a reasonable period
not to exceed 90 days if the Company is engaged in non-public negotiations or
other non-public business activities, disclosure of which would be required in
such Shelf Registration Statement (but would not be required if such Shelf
Registration Statement were not filed), and the Company’s Board of Directors or
a duly authorized committee thereof determines in good faith that such
disclosure would have a material adverse effect on the Company and its
subsidiaries taken as a whole.

 

(b)           The
Company shall, at its cost, use its commercially reasonable efforts, subject to
Section 2.5, to keep the Shelf Registration Statement continuously effective in
order to permit the Prospectus forming part thereof to be usable by Holders
until the earliest of (1) the sale pursuant to the Shelf Registration Statement
of the Registrable Securities, (2) the date when the Holders, other than
holders that are Affiliates, are able to sell all such Registrable Securities
immediately without restriction pursuant to the volume limitation provisions of
Rule 144 (or any similar provision then in force, including Rule 144(k) but not
Rule 144A) under the 1933 Act or otherwise and (3) the date that is two years
from the Option Closing Date (the ”Effectiveness Period”).

 

(c)           Notwithstanding
any other provisions hereof, the Company shall use its commercially reasonable
efforts to ensure that (i) any Shelf Registration Statement and any amendment
thereto and any Prospectus forming part thereof and any supplement thereto
complies in all material respects with the 1933 Act and the rules and
regulations thereunder, (ii) any Shelf Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any

 

4

 

Prospectus forming part of any Shelf Registration Statement, and any
supplement to such Prospectus (as amended or supplemented from time to time),
does not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.

 

(d)           Notwithstanding
any other provision hereof, no Holder of Registrable Securities may include any
of its Registrable Securities in the Shelf Registration Statement pursuant to
this Agreement unless the Holder furnishes to the Company a fully completed
notice and questionnaire in the form attached as Annex A to the Offering
Memorandum (the ”Questionnaire”)
and such other information in writing as the Company may reasonably request in
writing for use in connection with the Shelf Registration Statement or
Prospectus included therein and in any application to be filed with or under
state securities laws.  In order to be
named as a selling securityholder in the Prospectus at the time of
effectiveness of the Shelf Registration Statement, each Holder must, before the
effectiveness of the Shelf Registration Statement and no later than the 20th
day after the issuance of a press release by the Company announcing the initial
filing of the Registration Statement (or the filing of the first amendment to
the Shelf Registration Statement in the event the Company promptly files the
Shelf Registration Statement following the date of this Agreement), furnish the
completed Questionnaire and such other information that the Company may
reasonably request in writing, if any, to the Company in writing and the
Company will include the information from the completed Questionnaire and such
other information, if any, in the Shelf Registration Statement and the
Prospectus in a manner so that upon effectiveness of the Shelf Registration
Statement the Holder will be permitted to deliver the Prospectus to purchasers
of the Holder’s Registrable Securities. 
From and after the date that the Shelf Registration Statement is first
declared effective by the SEC, upon receipt of a completed Questionnaire and
such other information that the Company may reasonably request in writing, if
any, the Company will use its commercially reasonable efforts to file within 20
business days any amendments or supplements to the Shelf Registration Statement
necessary for such Holder to be named as a selling securityholder in the
Prospectus contained therein to permit such Holder to deliver the Prospectus to
purchasers of the Holder’s Securities (subject to the Company’s right to
suspend the Shelf Registration Statement as described in Section 2.5 below); provided, however, that the Company shall not be required to
file more than one post-effective amendment to the Shelf Registration Statement
in any calendar quarter for all such Holders. 
Holders that do not deliver a completed written Questionnaire and such
other information, as provided for in this Section 2.1(d), will not be named as
selling securityholders in the Prospectus. 
Each Holder named as a selling securityholder in the Prospectus agrees
to promptly furnish to the Company all information required to be disclosed in
order to make information previously furnished to the Company by the Holder not
materially misleading and any other information regarding such Holder and the
distribution of such Holder’s Registrable Securities as the Company may from
time to time reasonably request in writing.

 

5

 

(e)           Each
Holder agrees not to sell any Registrable Securities pursuant to the Shelf
Registration Statement without delivering, or causing to be delivered, a
Prospectus to the purchaser thereof and, following termination of the
Effectiveness Period, to notify the Company, within ten days of a written
request by the Company, of the amount of Registrable Securities sold pursuant
to the Shelf Registration Statement and, in the absence of a response, the
Company may assume that all of such Holder’s Registrable Securities have been
so sold; provided that the Company shall use commercially reasonable efforts to
confirm that all of such Holder’s Registrable Securities have been so sold
prior to making such assumption.

 

The Company shall not permit any securities
other than Registrable Securities to be included in the Shelf Registration
Statement.  The Company further agrees,
if necessary, to supplement or amend the Shelf Registration Statement, as
required by Section 3(b) below, and to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment promptly after its being
used or filed with the SEC.

 

2.2           Expenses.  The Company shall pay all Registration
Expenses in connection with the registration pursuant to Section 2.1.  Each Holder shall pay all underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Shelf
Registration Statement.

 

2.3           Effectiveness.

 

(a)           The
Company will be deemed not to have used commercially reasonable efforts to
cause the Shelf Registration Statement to become, or to remain, effective
during the requisite period if the Company voluntarily takes any action that
would, or omits to take any action which omission would, result in any such
Shelf Registration Statement not being declared effective or in the Holders of
Registrable Securities covered thereby not being able to offer and sell such
Registrable Securities during that period as and to the extent contemplated
hereby, unless such action is required by applicable law.

 

(b)           A
Shelf Registration Statement pursuant to Section 2.1 hereof will not be deemed
to have become effective unless it has been declared effective by the SEC; provided, however, that if, after it has been declared
effective, the offering of Registrable Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or any other governmental agency or
court, such Shelf Registration Statement will be deemed not to have become
effective during the period of such interference, until the offering of
Registrable Securities pursuant to such Shelf Registration Statement may
legally resume.

 

2.4           Interest.  In the event that (a) the Shelf Registration
Statement has not been filed with the SEC within 120 days after the Closing
Date, (b) the Shelf Registration Statement has not become effective within 210
days after the Closing Date, (c) the Shelf Registration Statement shall cease
to be effective or fail to be usable, subject to Section 2.5,

 

6

 

without being succeeded within seven business
days by a post-effective amendment or a report filed with the SEC pursuant to
the 1934 Act that cures the failure of the Shelf Registration Statement to be
effective or usable, or (d) the use of the Prospectus has been suspended
pursuant to Section 2.5 longer than the period permitted by Section 2.5 (each
such event being a ”Registration Default”),
additional interest, as liquidated damages (“Liquidated
Damages”), will accrue at a rate per annum of one-quarter of one
percent (0.25%) of the principal amount of the Securities for the first 90-day
period following the Registration Default, and thereafter at a rate per annum
of one-half of one percent (0.50%) of the principal amount of the Securities, provided that in no event shall Liquidated Damages accrue at
a rate per annum exceeding one half of one percent (0.50%) of the issue price
of the Securities, provided further
that no Liquidated Damages shall accrue after the second anniversary of the
date of this Agreement, provided further that
Liquidated Damages shall not accrue under clause (a) above in the event that
the Company is eligible for, and elects to utilize, the “automatic shelf”
registration procedure on Form S-3 available to Well-Known Seasoned Issuers and
files a Shelf Registration Statement with the Commission no later than 150 days
after the Closing Date, which Shelf Registration Statement shall become
immediately effective upon filing pursuant to Rule 462 under the 1933 Act,
as such rule may be amended from time to time; provided
further that Liquidated Damages shall not accrue under clause (c)
and (d) above with respect to any Holder that (x) does not submit a properly
completed Questionnaire, and (y) is not named as a Selling Holder in the Shelf
Registration Statement; and provided further that
no Liquidated Damages shall accrue under clause (a) or (b) above if,
pursuant to Section 2.1(a) hereof, the Company defers the filing or effectiveness
of the Shelf Registration Statement, or defers the filing of the Shelf
Registration Statement if the Company is eligible for, and elects to utilize,
the “automatic shelf” registration procedures, for a reasonable period not to
exceed 90 days if the Company is engaged in non-public negotiations or other
non-public business activities, disclosure of which would be required in such
Shelf Registration Statement (but would not be required if such Shelf
Registration Statement were not filed), and the Board of Directors of the
Company or a duly authorized committee thereof determines in good faith that
such disclosure would have a material adverse effect on the Company and its
subsidiaries taken as a whole.  Upon the
cure of all Registration Defaults then continuing, the accrual of Liquidated
Damages will automatically cease and the interest rate borne by the Securities
will revert to the original interest rate at such time.  Liquidated Damages shall be computed based on
the actual number of days elapsed in each 90-day period in which the Shelf
Registration Statement is not effective or is unusable.  Holders who have converted Securities into
Common Stock will not be entitled to receive any Liquidated Damages with respect
to such Common Stock or the issue price of the Securities converted.

 

The Company shall notify the Trustee within three
business days after each and every date on which an event occurs in respect of
which Liquidated Damages are required to be paid.  Liquidated Damages shall be paid by depositing
with the Trustee, in trust, for the benefit of the Holders of Registrable
Securities, on or before the applicable semiannual interest payment date,
immediately available funds in sums sufficient to pay the Liquidated Damages
then due.  The Liquidated Damages due
shall be payable on each interest payment date to the record Holder of
Registrable Securities entitled to receive the interest payment to be paid on
such date as set forth in the Indenture. 
Each obligation to pay Liquidated Damages shall be deemed to accrue from
and including the day following the Registration Default to but excluding the
day on which the Registration Default is cured.

 

7

 

A Registration Default under clause (a) above
shall be cured on the date that the Registration Statement is filed with the
SEC.  A Registration Default under clause
(b) above shall be cured on the date that the Shelf Registration Statement is
declared effective by the SEC.  A
Registration Default under clauses (c) or (d) above shall be cured on the date
an amended Shelf Registration Statement is declared effective by the SEC or the
Company otherwise declares the Shelf Registration Statement and the Prospectus
useable, as applicable.  The Company will
have no liabilities for monetary damages with respect to any Registration
Default for which Liquidated Damages are expressly provided for herein.

 

2.5           Suspension.  The Company may suspend the use of any
Prospectus, without incurring or accruing any obligation to pay Liquidated
Damages pursuant to Section 2.4 hereof, for a period not to exceed 45 calendar
days in any three-month period, or an aggregate of 120 calendar days in any
twelve-month period, (each, a ”Suspension Period”)
if the Board of Directors of the Company shall have determined in good faith
that because of valid business reasons (not including avoidance of the Company’s
obligations hereunder), including without limitation proposed or pending
corporate developments and similar events or because of filings with the SEC,
it is in the best interests of the Company to suspend such use, and prior to
suspending such use the Company provides the Holders with written notice of
such suspension, which notice need not specify the nature of the event giving
rise to such suspension.  Each Holder
shall keep confidential any communications received by it from the Company
regarding the suspension of the use of the Prospectus, except as required by
applicable law.

 

3.             Registration Procedures.

 

In connection with the obligations of the
Company with respect to the Shelf Registration, the Company shall:

 

(a)           prepare
and file with the SEC a Shelf Registration Statement, within the relevant time
period specified in Section 2, on the appropriate form under the 1933 Act,
which form (i) shall be selected by the Company, (ii) shall be available for
the sale of the Registrable Securities by the selling Holders thereof, (iii)
shall comply as to form in all material respects with the requirements of the
applicable form and include or incorporate by reference all financial
statements required by the SEC to be filed therewith or incorporated by
reference therein, and (iv) shall comply in all respects with the applicable
requirements of Regulation S-T under the 1933 Act, if any, and use commercially
reasonable efforts to cause such Shelf Registration Statement to become
effective and remain effective in accordance with Section 2 hereof;

 

(b)           prepare
and file with the SEC such amendments and post-effective amendments to the
Shelf Registration Statement as may be necessary under applicable law to keep
the Shelf Registration Statement effective for the Effectiveness Period,
subject to Section 2.5; and cause each Prospectus to be supplemented by any
required prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provision then in force) under the 1933 Act and comply
during the Effectiveness Period with the provisions of the 1933 Act, the 1934
Act and the rules and regulations thereunder required to enable

 

8

 

the disposition of all Registrable Securities covered by the Shelf
Registration Statement in accordance with the intended method or methods of
distribution by the selling Holders thereof;

 

(c)           (i)
notify each Holder of Registrable Securities of the filing, by issuing a press
release, of a Shelf Registration Statement with respect to the Registrable
Securities; (ii) furnish to each Holder of Registrable Securities that has
provided the information required by Section 2.1(d) and to each underwriter of
an underwritten offering of Registrable Securities, if any, without charge, as
many copies of each Prospectus, including each preliminary Prospectus, and any
amendment or supplement thereto and such other documents as such Holder or
underwriter may reasonably request, including financial statements and
schedules and, if the Holder so requests, all exhibits in order to facilitate
the unrestricted sale or other disposition of the Registrable Securities; and
(iii) subject to Section 2.5 hereof and to any notice by the Company in
accordance with Section 3(e) hereof of the existence of any fact of the kind
described in Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, hereby
consent to the use of the Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities that has provided the
information required by Section 2.1(d) in connection with the offering and sale
of the Registrable Securities;

 

(d)           use
commercially reasonable efforts to register or qualify the Registrable
Securities under all applicable state securities or “blue sky” laws of such
jurisdictions as any Holder of Registrable Securities covered by a Shelf
Registration Statement and each underwriter of an underwritten offering of
Registrable Securities shall reasonably request, and do any and all other acts
and things which may be reasonably necessary or advisable to enable each such
Holder and underwriter to consummate the disposition in each such jurisdiction
of such Registrable Securities owned by such Holder; provided,
however, that the Company shall not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d), or (ii)
take any action which would subject it to general service of process or
taxation in any such jurisdiction where it is not then so subject;

 

(e)           notify
promptly each Holder of Registrable Securities under a Shelf Registration that
has provided the information required by Section 2.1(d) and, if requested by
such Holder, confirm such advice in writing promptly (i) when a Shelf
Registration Statement has become effective and when any post-effective
amendments thereto become effective, (ii) of any request by the SEC or any
state securities authority for post-effective amendments and supplements to a
Shelf Registration Statement and Prospectus or for additional information after
the Shelf Registration Statement has become effective, (iii) of the issuance by
the SEC or any state securities authority of any stop order suspending the
effectiveness of a Shelf Registration Statement or the initiation of any
proceedings for that purpose, (iv) of the happening of any event or the
discovery of any facts during the period a Shelf Registration Statement is
effective which makes any

 

9

 

statement made in such Shelf Registration Statement or the related
Prospectus untrue in any material respect or which requires the making of any
changes in such Shelf Registration Statement or Prospectus in order to make the
statements therein not misleading, (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose and (vi) of any determination by the Company that a
post-effective amendment to such Shelf Registration Statement would be
appropriate;

 

(f)            furnish
to the Initial Purchasers on behalf of the Holders and to special counsel to
the Initial Purchasers copies of (i) any comment letters received from the SEC with
respect to a Shelf Registration Statement or, after the initial filing of a
Shelf Registration Statement and prior to its effectiveness, any documents
incorporated therein and (ii) any other request by the SEC or any state
securities authority for amendments or supplements to a Shelf Registration
Statement and Prospectus or for additional information with respect to the
Shelf Registration Statement and Prospectus;

 

(g)           use
commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Shelf Registration Statement at the earliest
possible moment;

 

(h)           furnish
to each Holder of Registrable Securities that has provided the information
required by Section 2.1(d), and each underwriter, if any, without charge, at
least one conformed copy of each Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and schedules
(without documents incorporated therein by reference and all exhibits thereto,
unless requested);

 

(i)            cooperate
with the selling Holders of Registrable Securities to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold and not bearing any restrictive legends (other than as required by the
Company’s certificate of incorporation or bylaws or applicable law); and enable
such Registrable Securities to be in such denominations (consistent with the
provisions of the Indenture) and registered in such names as the selling
Holders or the underwriters, if any, may reasonably request at least three
business days prior to the closing of any sale of Registrable Securities;

 

(j)            upon
the occurrence of any event or the discovery of any facts, each as contemplated
by Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, as promptly as
practicable after the occurrence of such an event, use commercially reasonable
efforts to prepare a supplement or post-effective amendment to the Shelf
Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities, such Prospectus will
not contain at the time of such delivery any untrue statement of a

 

10

 

material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading or will remain so qualified. At such time as such public
disclosure is otherwise made or the Company determines that such disclosure is
not necessary, in each case to correct any misstatement of a material fact or
to include any omitted material fact, the Company agrees promptly to notify
each Holder that has provided the information required by Section 2.1(d) of
such determination and to furnish each Holder such number of copies of the
Prospectus as amended or supplemented, as such Holder may reasonably request;

 

(k)           no
less than three business days prior to the filing of any Shelf Registration
Statement, any Prospectus, any amendment to a Shelf Registration Statement or
amendment or supplement to a Prospectus (other than amendments and supplements
that do nothing more than name Holders and provide information with respect
thereto), provide copies of such document to the Initial Purchasers on behalf
of such Holders, and make representatives of the Company, as shall be
reasonably requested by the Holders of Registrable Securities or the Initial
Purchasers on behalf of such Holders, available for discussion of such document;

 

(l)            provide
the Trustee with printed certificates for the Registrable Securities in a
form eligible for deposit with the Depositary;

 

(m)          (i)
cause the Indenture to be qualified under the 1939 Act in connection with the
registration of the Registrable Securities, (ii) cooperate with the
Trustee and the Holders to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the 1939 Act, and (iii) execute, and use commercially reasonable efforts
to cause the Trustee to execute, all documents as may be required to effect
such changes, and all other forms and documents required to be filed with the
SEC to enable the Indenture to be so qualified in a timely manner;

 

(n)           enter
into such customary agreements and take all other customary and appropriate
actions in order to expedite or facilitate the disposition of such Registrable
Securities, including, but not limited to:

 

(i)            obtain opinions of counsel to the
Company and updates thereof addressed to each selling Holder and the
underwriters, if any, covering the matters set forth in the opinions of such
counsel delivered to the Initial Purchasers at the Closing Date;

 

(ii)           obtain “comfort” letters and updates
thereof from the Company’s independent certified public accountants (and, if
necessary, any other independent certified public accountants of any subsidiary
of the Company or of any business acquired by the Company for which financial
statements are, or are required to be, included in the Shelf Registration
Statement) addressed to the underwriters, if any, and use commercially
reasonable efforts to have such letter addressed to the 

 

11

 

selling Holders of Registrable Securities (to
the extent consistent with Statement on Auditing Standards No. 72 of the
American Institute of Certified Public Accounts), such letters substantially in
the form and covering the matters covered in the comfort letter delivered to
the Initial Purchasers on the Closing Date;

 

(iii)          if an underwriting agreement is
entered into, cause the same to set forth indemnification provisions and
procedures substantially equivalent to the indemnification provisions and
procedures set forth in Section 4 hereof with respect to the underwriters and
all other parties to be indemnified pursuant to said Section or, at the request
of any underwriters, in the form customarily provided to such underwriters in
similar types of transactions; and

 

(iv)          deliver such documents and
certificates as may be reasonably requested and as are customarily delivered in
similar offerings to the Holders of a majority in principal amount of the
Registrable Securities being sold and the managing underwriters, if any.

 

The above shall be done only in
connection with any underwritten offering of Registrable Securities using such
Shelf Registration Statement pursuant to an underwriting or similar agreement
as and to the extent required thereunder, and as reasonably requested by any of
the parties thereto; provided, however, that in no event will an underwritten offering of
Registrable Securities be made without the prior written agreement of the
Company;

 

(o)           if
reasonably requested in connection with a disposition of Registrable
Securities, make available for inspection during business hours by
representatives of the Holders of the Registrable Securities, any underwriters
participating in any disposition pursuant to a Shelf Registration Statement and
any counsel or accountant retained by any of the foregoing, all financial and
other records, pertinent corporate documents and properties of the Company
reasonably requested by any such persons, and cause the respective officers,
directors, employees, and any other agents of the Company to supply all
information reasonably requested by any such representative, underwriter,
special counsel or accountant in connection with a Shelf Registration
Statement, and make such representatives of the Company available for
discussion of such documents as shall be reasonably requested by the Initial
Purchasers, in each case as is customary for “due diligence” investigations;
provided that, to the extent the Company, in its reasonable discretion, agrees
to disclose material non-public information, such persons shall first agree in
writing with the Company that any such non-public information shall be kept
confidential by such persons and shall be used solely for the purposes of
exercising rights under this Agreement and such person shall not engage in
trading any securities of the Company until such material non-public
information becomes properly publicly available, unless (i) disclosure of
such information is required by court or administrative order or is necessary
to respond to inquiries of regulatory authorities, (ii) disclosure of such
information is required by law (including any disclosure requirements pursuant
to

 

12

 

federal securities laws in connection with the filing of any
Registration Statement or the use of any Prospectus referred to in this
Agreement upon a customary opinion of counsel for such persons delivered and
reasonably satisfactory to the Company), (iii) such information becomes
generally available to the public other than as a result of a disclosure or
failure to safeguard by any such person, (iv) such information becomes
available to any such person from a source other than the Company and such
source is not bound by a confidentiality agreement, or (v) such non-public
information ceases to be material; and provided further, that the foregoing
inspection and information gathering shall, to the greatest extent possible, be
coordinated on behalf of all the Holders and the other parties entitled thereto
by special counsel to the Holders;

 

The above shall be done only in connection
with any underwritten offering of Registrable Securities using such Shelf
Registration Statement pursuant to an underwriting or similar agreement as and
to the extent required thereunder, and as reasonably requested by any of the
parties thereto; provided, however,
that in no event will an underwritten offering of Registrable Securities be
made without the prior written agreement of the Company;

 

(p)           a
reasonable time prior to filing the Shelf Registration Statement, any
Prospectus forming a part thereof, any amendment to the Shelf Registration
Statement or amendment or supplement to such Prospectus (other than amendments
and supplements that do nothing more than name Holders and provide information
with respect thereto), furnish to Merrill Lynch and one special counsel to the
Initial Purchasers copies of all such documents proposed to be filed and use
its commercially reasonable efforts to reflect in each such document when so
filed with the SEC such comments as Merrill Lynch and such special counsel to
the Initial Purchasers reasonably shall propose within three (3) Business Days
of the delivery of such copies to Merrill Lynch and counsel to the Initial
Purchasers.  In addition, if any Holder shall
so request in writing, a reasonable time prior to filing any such documents,
the Company shall furnish to such Holder copies of all such documents proposed
to be filed and use its reasonable efforts to reflect in each such document
when so filed with the SEC such comments as such Holder reasonably shall
propose within three (3) Business Days of the delivery of such copies to such
Holder;

 

(q)           use
its commercially reasonable efforts to cause all Registrable Securities to be
listed on any securities exchange or inter-dealer quotation system on which
similar debt securities issued by the Company are then listed if requested by the
Majority Holders, or if requested by the underwriter or underwriters of an
underwritten offering of Registrable Securities, if any;

 

(r)            otherwise
comply with all applicable rules and regulations of the SEC and make available
to its security holders, as soon as reasonably practicable, an earnings
statement covering at least 12 months which shall satisfy the provisions of
Section 11(a) of the 1933 Act and Rule 158 thereunder; and

 

13

 

(s)           cooperate
and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter and its
counsel (including any “qualified independent underwriter” that is required to
be retained in accordance with the rules and regulations of the NASD).

 

Without limiting the provisions of Section
2.1(d), the Company may (as a condition to such Holder’s participation in the
Shelf Registration) require each Holder of Registrable Securities to furnish to
the Company such information regarding the Holder and the proposed distribution
by such Holder of such Registrable Securities as the Company may from time to
time reasonably request in writing.

 

Each Holder agrees that, upon receipt of any
notice from the Company of the happening of any event or the discovery of any
facts, each of the kind described in Section 3(e)(ii), (iii), (iv), (v) and
(vi) hereof, such Holder will forthwith discontinue disposition of Registrable
Securities pursuant to the Prospectus included in the Shelf Registration
Statement until such Holder’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(j) hereof or written notice from
the Company that the Shelf Registration Statement is again effective and no
amendment or supplement is needed, and, if so directed by the Company, such
Holder will deliver to the Company (at its expense) all copies in such Holder’s
possession, other than permanent file copies then in such Holder’s possession,
of the Prospectus covering such Registrable Securities current at the time of
receipt of such notice.

 

In the event that a Registration Default has
occurred and is continuing, the Company shall not file any Registration
Statement with respect to any securities (within the meaning of Section 2(1) of
the 1933 Act) of the Company other than Registrable Securities.

 

If any of the Registrable Securities covered
by any Shelf Registration Statement are to be sold in an underwritten offering,
the underwriter or underwriters and manager or managers that will manage such
offering will be selected by the Majority Holders of such Registrable
Securities included in such offering and shall be acceptable to the
Company.  No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless
such Holder (a) agrees to sell such Holder’s Registrable Securities on the
basis provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

 

4.             Indemnification; Contribution.

 

(a)           The
Company agrees to indemnify and hold harmless the Initial Purchasers, each
Holder who has provided information to the Company in accordance with Section
2.1(d) hereof, each Person who participates as an underwriter (any such Person
being an ”Underwriter”) and each Person, if
any, who controls any Holder or Underwriter within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act as follows:

 

14

 

(i)            against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, arising out of any untrue
statement or alleged untrue statement of a material fact contained in any Shelf
Registration Statement (or any amendment or supplement thereto) pursuant to
which Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading, or arising out of any
untrue statement or alleged untrue statement of a material fact contained in
any Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading;

 

(ii)           against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, to the extent of the
aggregate amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any
such alleged untrue statement or omission; 
provided that (subject to Section 4(d) below) any such settlement is
effected with the written consent of the Company; and

 

(iii)          against any and all reasonable
out-of-pocket expenses whatsoever, as incurred (including the reasonable fees
and disbursements of counsel chosen by any indemnified party), reasonably
incurred in investigating, preparing or defending against any litigation, or
any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission, to the extent that
any such expense is not paid under subparagraph (i) or (ii) above;

 

provided,
however, that this indemnity agreement
shall not apply to any loss, liability, claim, damage or expense to the extent
arising out of any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with written information
furnished to the Company by or on behalf of any Holder or underwriter expressly
for use in a Shelf Registration Statement (or any amendment thereto) or any
Prospectus (or any amendment or supplement thereto); provided, further, that
this indemnity provision shall not apply to any loss, liability, claim, damage
or expense if the Holder fails to deliver at or prior to the written
confirmation of sale the most recent Prospectus furnished to such Holder by the
Company and such Prospectus, as amended or supplemented as of the time of such
confirmation of sale, including any amendment or supplement filed with the SEC
that is incorporated by reference in the Prospectus), would have corrected such
untrue statement or omission or alleged untrue statement or omission of a
material fact and delivery thereof was required by law.

 

15

 

(b)           Each
Holder who has provided information to the Company in accordance with Section
2.1(d) hereof, severally, but not jointly, agrees to indemnify and hold
harmless the Company, the Initial Purchasers, each Underwriter and the other
selling Holders who have provided information to the Company in accordance with
Section 2.1(d) hereof, and each of their respective directors and officers, and
each Person, if any, who controls the Company, the Initial Purchasers, any
Underwriter or any other selling Holder within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in Section 4(a)
hereof, as incurred, but only with respect to untrue statements or omissions,
or alleged untrue statements or omissions, made in the Shelf Registration
Statement (or any amendment thereto) or any Prospectus included therein (or any
amendment or supplement thereto) in reliance upon and in conformity with
written information with respect to such Holder furnished to the Company by or
on behalf of such Holder expressly for use in the Shelf Registration Statement
(or any amendment thereto) or such Prospectus (or any amendment or supplement
thereto); provided, however, that no such Holder
shall be liable for any claims hereunder in excess of the amount of net
proceeds received by such Holder from the sale of Registrable Securities
pursuant to such Shelf Registration Statement.

 

(c)           Each
indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect
of which indemnity may be sought hereunder, but failure so to notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have
otherwise than on account of this indemnity agreement.  An indemnifying party may participate at its
own expense in the defense of such action; provided, however, that counsel to
the indemnifying party shall not (except with the consent of the indemnified
party) also be counsel to the indemnified party.  In no event shall the indemnifying party or
parties be liable for the fees and expenses of more than one counsel (in
addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar
or related actions in the same jurisdiction arising out of the same general
allegations or circumstances.  No
indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever
in respect of which indemnification or contribution could be sought under this
Section 4 (whether or not the indemnified parties are actual or potential
parties thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

 

16

 

(d)           If
at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement of the
nature contemplated by Section 4(a)(ii) effected without its written consent if
(i) such settlement is entered into more than 45 days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall
have received notice of the terms of such settlement at least 30 days prior to
such settlement being entered into and (iii) such indemnifying party shall not
have reimbursed such indemnified party in accordance with such request prior to
the date of such settlement.

 

(e)           If
the indemnification provided for in this Section 4 is for any reason
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, liabilities, claims, damages or expenses referred to therein,
then each indemnifying party shall contribute to the aggregate amount of such
losses, liabilities, claims, damages and expenses incurred by such indemnified
party, as incurred, in such proportion as is appropriate to reflect the
relative fault of the Company on the one hand and the Holders and the Initial
Purchasers on the other hand in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as
well as any other relevant equitable considerations.

 

The relative fault of the Company on the one
hand and the Holders and the Initial Purchasers on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company, or by the
Holders or the Initial Purchasers and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

 

The Company, the Holders and the Initial
Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 4 were determined by pro rata allocation (even if the
Initial Purchasers were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable
considerations referred to above in this Section 4.  The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to
above in this Section 4 shall be deemed to include any reasonable out-of-pocket
legal or other expenses reasonably incurred by such indemnified party in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.

 

Notwithstanding the provisions of this
Section 4, no Initial Purchaser shall be required to contribute any amount in
excess of the amount by which the total price at which the Securities sold by
it were offered exceeds the amount of any damages which such Initial Purchaser
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

 

17

 

No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

 

For purposes of this Section 4, each Person,
if any, who controls an Initial Purchaser or Holder within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as such Initial Purchaser or Holder, and each director
of the Company, and each Person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company. 
The Initial Purchasers’ respective obligations to contribute pursuant to
this Section 4 are several in proportion to the principal amount of Securities
set forth opposite their respective names in Schedule A to the Purchase
Agreement and not joint.

 

5.             Miscellaneous.

 

5.1           Rule 144 and Rule 144A.  For so long as the Company is subject to the
reporting requirements of Section 13 or 15(d) of the 1934 Act, the Company
covenants that it will file the reports required to be filed by it under
Section 13(a) or 15(d) of the 1934 Act and the rules and regulations adopted by
the SEC thereunder.  If the Company
ceases to be so required to file such reports, the Company covenants that it
will upon the request of any Holder of Registrable Securities (a) make publicly
available such information as is necessary to permit sales pursuant to Rule 144
under the 1933 Act, as such Rule may be amended from time to time, (b) deliver
such information to a prospective purchaser as is necessary to permit sales
pursuant to Rule 144A under the 1933 Act, as such Rule may be amended from time
to time, and it will take such further action as any Holder of Registrable
Securities may reasonably request for such purpose, and (c) take such further
action that is reasonable in the circumstances, in each case, to the extent
required from time to time to enable such Holder to sell its Registrable
Securities without registration under the 1933 Act within the limitation of the
exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be
amended from time to time, (ii) Rule 144A under the 1933 Act, as such Rule may
be amended from time to time, or (iii) any similar rules or regulations
hereafter adopted by the SEC.  Upon the
request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements.

 

5.2           No Inconsistent Agreements.  The Company has not entered into and the
Company will not after the date of this Agreement enter into any agreement
which is inconsistent with the rights granted to the Holders of Registrable
Securities in this Agreement or otherwise conflicts with the provisions
hereof.  The rights granted to the
Holders hereunder do not and will not for the term of this Agreement in any way
conflict with the rights granted to the holders of the Company’s other issued
and outstanding securities under any such agreements.

 

5.3           Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company has obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities (assuming conversion of all Securities into Common Stock) affected
by such amendment, modification, supplement, waiver or departure.

 

18

 

Notwithstanding the foregoing, this Agreement
may be amended by a written agreement between the Company and the Initial
Purchasers, without the consent of the Holders of the Registrable Securities,
in order to cure any ambiguity or to correct or supplement any provision
contained herein, provided that no such amendment shall adversely affect the
interest of the Holders of Registrable Securities.  Each Holder of Registrable Securities outstanding
at the time of any amendment, modification, waiver or consent pursuant to this
Section 5.3, shall be bound by such amendment, modification, waiver or consent,
whether or not any notice or writing indicating such amendment, modification,
waiver or consent is delivered to such Holder.

 

5.4           Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand delivery,
registered first-class mail, facsimile, or any courier guaranteeing overnight
delivery (a) if to a Holder, at the most current address given by such Holder
to the Company in a Questionnaire or by means of a notice given in accordance
with the provisions of this Section 5.4, which address initially is the address
set forth in the Purchase Agreement with respect to the Initial Purchasers; and
(b) if to the Company, initially at the Company’s address set forth in the
Purchase Agreement, and thereafter at such other address of which notice is
given in accordance with the provisions of this Section 5.4.

 

All such notices and communications shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; two business days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on
the next business day if timely delivered to an overnight courier.

 

Copies of all such notices, demands, or other
communications shall be concurrently delivered by the person giving the same to
the Trustee under the Indenture, at the address specified in such Indenture.

 

5.5           Successor and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Securities
in violation of the terms of the Purchase Agreement or the Indenture.  If any transferee of any Holder shall acquire
Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities
such person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement, including the
restrictions on resale set forth in this Agreement and, if applicable, the
Purchase Agreement, and such person shall be entitled to receive the benefits
hereof.

 

5.6           Third Party Beneficiaries.  The Initial Purchasers (even if the Initial
Purchasers are not Holders of Registrable Securities) shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Holders, on the other hand, and shall have the right to enforce
such agreements directly to the extent they deem such enforcement necessary or
advisable to protect their rights or the rights of Holders hereunder.  Each Holder of Registrable Securities shall
be a third party beneficiary to the agreements made hereunder between the
Company, on the one hand, and the Initial Purchasers,

 

19

 

on the other hand, and shall have the right
to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights hereunder.

 

5.7           Specific
Enforcement.  Without limiting the
remedies available to the Initial Purchasers and the Holders, the Company
acknowledges that any failure by the Company to comply with its obligations
under Section 2.1 hereof may result in material irreparable injury to the
Initial Purchasers or the Holders for which there is no adequate remedy at law,
that it may not be possible to measure damages for such injuries precisely and
that, in the event of any such failure, the Initial Purchasers or any Holder
may seek such relief as may be required to specifically enforce the Company’s
obligations under Sections 2.1 hereof.

 

5.8           Restriction
on Resales.  Until the expiration of
two years after the original issuance of the Securities, the Company will not,
and will cause its Affiliates not to, resell any Securities that are “restricted
securities” (as such term is defined under Rule 144(a)(3) under the 1933 Act)
that have been reacquired by any of them and shall immediately upon any
purchase of any such Securities submit such Securities to the Trustee for
cancellation.

 

5.9           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

5.10         Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

5.11         GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

5.12         Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

 

5.13         Entire
Agreement.  This Agreement is
intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of
the parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted by the Issuer with respect to
the Registrable Securities.  This
Agreement supersedes all prior agreements and understandings between the
parties with respect to such subject matter.

 

20

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.

 

 

	
   

  	
  FEI COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Raymond A. Link

  
	
   

  	
   

  	
  Name:
  Raymond A. Link

  
	
   

  	
   

  	
  Title:
  EVP, CFO and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Confirmed
  and accepted as

  	
   

  	
   

  
	
  of the date first above

  	
   

  	
   

  
	
  written:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MERRILL
  LYNCH & CO.

  	
   

  	
   

  
	
  MERRILL
  LYNCH, PIERCE, FENNER & SMITH

  	
   

  	
   

  
	
  INCORPORATED

  	
   

  	
   

  
	
  NEEDHAM
  & COMPANY, LLC

  	
   

  	
   

  
	
  THOMAS
  WEISEL PARTNERS LLC

  	
   

  	
   

  
	
  D.A.
  DAVIDSON & CO.

  	
   

  	
   

  
	
  MERRIMAN
  CURHAN FORD & CO.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  MERRILL
  LYNCH, PIERCE, FENNER & SMITH

  	
   

  	
   

  
	
   

  	
  INCORPORATED

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jeff A.
  Shusta

  	
   

  	
   

  
	
   

  	
  Name: Jeff
  A. Shusta

  	
   

  	
   

  
	
   

  	
  Title: Vice
  PresidentExhibit 4.2.1.13

 

RGL

 

Performance
Share Plan

 

Plan
Rules

 

Rinker
Group Limited (Company)

 

Effective as of 1 April 2006

 

 

RGL Performance Share Plan - Plan Rules

 

	
  Plan rules

  	
   

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Purpose

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Definitions and interpretation

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Operation of the plan

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  How the plan works

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Qualification of securities resulting from
  performance

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Withdrawals

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Restrictions in dealing with plan securities

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Distributions and other benefits

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Corporate control event

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Constitution of plan committee on occurrence of
  corporate control event

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Capital reconstruction

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Forfeiture

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Plan account

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Authorised deductions

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Voting rights

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Use of nominees

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Variation of rules

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Termination and suspension of the plan

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Connection with other plans

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Notices

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Governing law

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Administration of the plan

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  General

  	
   

  	
  23

  

 

2

 

Plan rules

 

1.                                   Purpose

 

1.1                              The Company is establishing the Plan to:

 

(a)                                provide Eligible Employees with the opportunity to share in any
future growth in value of the Company;

 

(b)                               align the interests of Eligible Employees more closely to the
interests of the Company’s shareholders;

 

(c)                                assist in the retention and motivation of Eligible Employees; and

 

(d)                               provide greater incentive for Eligible Employees to focus on the
Company’s longer term goals.

 

1.2                              Subject to these Rules and relevant
Terms of Offer it is intended that an Eligible Employee will have the
opportunity under the Plan to receive Plan Securities in the Company provided
that certain vesting criteria are satisfied and both the Company and the
Eligible Employee have met pre-determined performance goals.

 

1.3                              It is the Company’s expectation that
Participants will use Plan Securities acquired under the Plan to facilitate
their compliance with the Company’s share ownership guidelines. For the
avoidance of doubt, this Rule 1.3 is not intended to limit Participants’
legal rights to request withdrawal of Plan Securities from the Plan under these
Rules.

 

1.4                              Non-executive directors of Group
Companies are not eligible to participate in the Plan.

 

2.                                   Definitions
and interpretation

 

2.1                              In these Rules, the following terms have
these meanings unless the contrary intention appears:

 

ADRs mean American Depositary Receipts which evidence and represent a
specified number of underlying shares.

 

ASX means the Australian Stock Exchange Limited.

 

Australian
Plan Company means Readymix Holdings Pty
Limited ACN 099 732 297 or such other person nominated by the Plan Committee as
a replacement Australian Plan Company to facilitate acquisitions, disposals or
forfeitures of Plan Securities in respect of Eligible Australian Employees from
time to time.

 

Authorised
Deductions means a deduction authorised by Rule 14.

 

Capital
Reconstruction Event is defined in Rule 11.1.

 

Company means Rinker Group Limited ACN 003 433 118.

 

Corporate
Control Event is defined in Rule 9.1.

 

Corporations
Act means the Corporations
Act 2001 (Cth).

 

Eligible
Australian Employee means an Eligible
Employee who is an Australian resident for taxation purposes.

 

3

 

Eligible Employee means any senior part-time or full-time employee or executive
director of the Company or of any Participating Group Company who has been
invited by the Plan Committee to participate in the Plan.

 

Eligible
Non-Australian Employee means an Eligible
Employee who is not an Eligible Australian Employee.

 

Forfeited
Securities means Plan Securities forfeited
under Rule 12.

 

Group
Company means the Company and any body
corporate which is a related body corporate of the Company under Part 1.2
Division 6 of the Corporations Act.

 

Listing
Rules means such of the official
listing rules of the ASX and NYSE as apply to the Company from time to
time.

 

Market
Value:

 

(a)                                in relation to shares on a particular date, means the market value
of those shares calculated in accordance with subdivision F of Division 13A of Part III
of the Income Tax Assessment Act 1936 (Cth)
(but if section 139FA(2) applies, the market value will be calculated
on a particular date by reference to prices or offers on ASX unless the Plan
Committee determines to the contrary); and

 

(b)                               in relation to ADRs on a particular date, means the specified number
of shares underlying each ADR multiplied by the Market Value of the underlying
Shares on that date.

 

Note:                 Market
Value can be converted to any currency at the exchange rate determined by the
Plan Committee in accordance with Rule 22.6.

 

Multi-Year
TSR, of a particular company for a specified
period, means the average of the following TSRs for that company:

 

(a)                                                      the TSR from the beginning of the specified period until 31 March (or,
if earlier, the end of the specified period) next following;

 

(b)                                                     the TSR for each period of one year thereafter, from 1 April until
the 31 March next following, which is wholly within the specified period;
and

 

(c)                                                      the TSR for any remaining period of less than one year from 1 April thereafter
until the end of the specified period.

 

Note:                 The
effect of this definition is that the Multi-Year TSR for a company for the
normal Performance Period will be the average of the TSRs for the three years
ended 31 March in the Performance Period.

 

Notice
of Withdrawal of Securities means a duly
completed and executed request for permission to withdraw some or all of
his/her Plan Securities from the Plan submitted by a Participant to the Plan
Company, in respect of Plan Securities previously notified by the Plan Company
as having been allocated to that Participant. Such Notice of Withdrawal of
Securities shall specify the number of Plan Securities to be withdrawn and be
submitted on the form approved by the Plan Committee.

 

NYSE
means the New York Stock Exchange, Inc.

 

Parcel
means, subject to the relevant Terms of
Offer, all the Plan Securities acquired and Registered in the name of a
Participant under the Plan in accordance with Rule 4.8 as a result of one
particular offer or grant.

 

Participant means an Eligible Employee who has accepted an offer to
participate, or has been granted participation, in the Plan.

 

4

 

Participating
Group Company means a Group Company (other
than the Company) which has agreed to be bound by these Rules as required
by Rule 3.2.

 

Peer
Group, in relation to a Parcel of Plan
Securities, means:

 

(a)                                subject to paragraph (b), the list of companies (including the
Company) specified in, or accompanying, the Terms of Offer for that Parcel and
selected by the Plan Committee as appropriate for the purpose of measuring the
Company’s performance (Peer Group List);

 

(b)                               the Plan Committee may omit companies from, or add companies
to, the Peer Group List if the Plan Committee, in its absolute discretion,
determines that it would be appropriate, for the purpose of measuring the
Company’s performance, to do so (which omission or addition will be taken to
have effect at the beginning of the Performance Period for the Parcel).

 

Note:                 Without
limitation, it may be appropriate for the Plan Committee to exercise its
discretion under paragraph (b) if:

 

•                                                  there is a substantial change in a company’s business profile;

 

•                                                  a company ceases trading or becomes insolvent;

 

•                                                  a company is subject to a successful takeover or merges with another
company;

 

•                                                  a company undertakes a demerger; or

 

•                                                  other significant events occur affecting a company’s shares or
capitalisation.

 

Percentile
Ranking, for a parcel of Plan Securities on
a specified date, means:

 

(a)                                                      except where paragraph (b) applies, the percentile ranking of
the Company’s Multi-Year TSR in relation to the Multi-Year TSRs of the Peer
Group calculated by, or in accordance with recommendations from, an external
consultant to the Company approved by the Plan Committee from time to time; or

 

(b)                                                     a percentile ranking calculated in a different way specified, at any
time, by the Plan Committee in relation to that Parcel. However, the Plan
Committee may only specify a different calculation of the percentile
ranking under this paragraph if, in the Plan Committee’s opinion, the new
calculation is an appropriate incentive to encourage, or an appropriate way to
recognise, the performance of Participants and is in the best interests of the
Company.

 

The Multi-Year TSRs for paragraph (a) are to be calculated for the
period beginning at the commencement of the Performance Period for the Parcel
and ending on the specified date.

 

Performance
Period, in relation to any Parcel, means:

 

(a)                                unless paragraph (b) applies, the period commencing on 1 April in
the calendar year in which Eligible Employees are first offered, or first
notified of a proposed grant of, Plan Securities in the Parcel and ending on 31
March in the third calendar year after that year; or

 

(b)                               if the Plan Committee determines, in the best interests of the
Company, that another period should apply in relation to Plan Securities in the
Parcel either generally or in relation to specified Participants, that other
period.

 

Note:                 Paragraph
(a) has the effect that if, for example, Plan Securities are acquired in November 2004,
then the Performance Period would commence on 1 April 2004 and end on 31 March 2007
(unless a determination is made under paragraph (b)).

 

Plan means the RGL Performance Share Plan established and operated in
accordance with these Rules.

 

5

 

Plan
Account means an account at a financial
institution established and administered by a Plan Company for the purposes of Rule 13.1,
which may also, if the Plan Committee agrees, be used for purposes not
related to the Plan.

 

Plan
Committee means:

 

(a)                                except when Rule 10 applies, all or some of the directors of
the Company acting as a board as constituted from time to time, including a
committee of the board as constituted from time to time whose purpose includes
administering the Plan;

 

(b)                               when Rule 10 applies, the committee of persons referred to in Rule 10.2(a) from
time to time, including any subcommittee of that committee constituted from
time to time whose purpose includes administering the Plan.

 

Plan
Company means:

 

(a)                                except where paragraph (c) applies, the Australian Plan Company
in respect of Eligible Australian Employees;

 

(b)                               except where paragraph (c) applies, the US Plan Company in
respect of Eligible Non-Australian Employees; and

 

(c)                                any other person nominated by the Plan Committee as a replacement
Plan Company to facilitate acquisitions, disposals or forfeitures of Plan
Securities in respect of a specified Eligible Employee or Eligible Employees
from time to time.

 

Plan
Securities means Rinker Shares or Rinker
ADRs and, except in Rule 11, any other shares or ADRs which are to be held
under the Plan pursuant to that Rule.

 

Qualification
Requirements means the following
requirements which must be satisfied or waived before Plan Securities to which
an offer or grant relates may be withdrawn from the Plan by a Participant:

 

(a)                                unless otherwise specified in the relevant Terms of Offer, the
requirement that a member of the Plan Committee (other than a Participant)
certify in writing that the Plan Securities are qualified securities under the qualification
schedule set out in the relevant Terms of Offer;

 

(b)                               in the case of an Eligible Non-Australian Employee, the requirement
that the Eligible Non-Australian Employee has not, prior to particular Plan
Securities becoming qualified securities under the qualification schedule set
out in the relevant Terms of Offer (as referred to in paragraph (a)), requested
(in the form and at the time permitted by the Plan Committee) a substitute
benefit be given by any Participating Group Company in lieu of those Plan
Securities; and

 

(c)                                the further performance, vesting or other requirements (if any)
specified in the relevant Terms of Offer.

 

Qualified
Securities means Plan Securities Registered
in the name of a Participant and held under the Plan for which all the
Qualification Requirements have been satisfied or waived.

 

Registered, subject to Rule 16, means:

 

(a)                                in the case of Rinker Shares, entered in the register of members of
the Company; and

 

(b)                               in the case of Rinker ADRs, entered in the register of ADR holders
maintained by the Company’s ADR depository.

 

Note:                 Rule16 applies
when Plan Securities are held in the name of a nominee. If Plan Securities are
held in the name of a nominee, a requirement under these Rules for the
Plan Securities to be Registered

 

6

 

in the name of a Participant will be satisfied by registering the Plan
Securities in the name of the nominee and vesting beneficial ownership of the
Plan Securities in the Participant.

 

Rights
is defined in Rule 8.4.

 

Rinker
ADRs means ADRs which evidence and represent
Rinker Shares and which are listed for quotation on the NYSE.

 

Rinker
Shares means fully paid ordinary shares in
the capital of the Company which rank equally with and have the same rights as
other fully paid ordinary shares in the capital of the Company and which are
listed for quotation on the ASX.

 

Rules means the rules governing the operation of this Plan set out in
this instrument, as amended from time to time.

 

Security
Interest means a mortgage, charge, pledge,
lien or other encumbrance of any nature.

 

Special
Circumstance is defined in Rule 12.1.

 

Tax includes any tax, levy, impost, deduction, charge, rate,
contribution, duty or withholding which is assessed (or deemed to be assessed),
levied, imposed or made by any government or any governmental,
semi-governmental or judicial entity or authority together with any interest,
penalty, fine, charge, fee or other amount assessed (or deemed to be assessed),
levied, imposed or made on or in respect of any or all of the foregoing.

 

Terms
of Offer means the terms and conditions of
each offer to participate, or grant of participation, made, or notified, at the
time Eligible Employees are invited to participate, or given notice of a
proposed grant, which are referred to in Rule 4.1.

 

Trading
Lock means a mechanism or mechanisms
approved by, and administered by or on behalf of the Company (including through
its share registry) that prevents Plan Securities acquired under the Plan being
disposed of by a Participant until they are withdrawn from the Plan under Rule 6
or the Plan Committee determines that ownership of the Plan Securities is to be
forfeited in accordance with Rule 12.

 

TSR, of a particular company listed on a stock exchange for a specified
period, means the total shareholder return of
that company taking into account share price appreciation and dividends
received over the specified period expressed as a ratio of the share price at
the beginning of the specified period. The TSR will be calculated by, or in
accordance with recommendations from, an external consultant to the Company
approved by the Plan Committee from time to time. Unless the Plan Committee
determines to the contrary in the best interests of the Company:

 

(a)                                in calculating the TSR in respect of an offer under the Plan prior
to 1 April 2006, the opening and closing share prices of the particular
company will be calculated in accordance with the Rules as in force at the
time of the relevant offer.

 

(b)                               subject to Paragraph (a), the opening share price of the particular
company for the specified period will be taken to be the average of the closing
prices of that company for the 30 days commencing 15 days before the first day
of the specified period on the exchange that in the Plan Committee’s opinion is
the primary exchange for that company;

 

(c)                                subject to Paragraph (a), the closing share price of the particular
company for the specified period will be taken to be the average of the closing
prices of that company for the 30 days commencing 14 days before the last day
of the specified period on that exchange; and

 

(d)                               calculations for the particular company will be made in the currency
in which the shares are quoted on that exchange (and any fluctuations in the
exchange rate between Australian currency or United States currency and that
currency will be ignored).

 

7

 

Unqualified
Securities means Plan Securities Registered
in the name of a Participant and held under the Plan which are not Qualified
Securities.

 

US
Plan Company means Rinker Materials
Corporation or such other person nominated by the Plan Committee as a
replacement US Plan Company to facilitate acquisitions, disposals or
forfeitures of Plan Securities in respect of Eligible Non-Australian Employees
from time to time.

 

2.2                              In these Rules, unless the contrary
intention appears:

 

(a)                                reference to any legislation or any provision of any legislation
includes any modification or re-enactment of the legislation or any legislative
provision substituted for, and all legislation and statutory instruments and
regulations issued under the legislation;

 

(b)                               words denoting the singular include the plural and vice versa;

 

(c)                                words denoting a gender include the other genders;

 

(d)                               words denoting an individual or persons include bodies corporate and
trusts and vice versa;

 

(e)                                headings are for convenience only and do not affect the
interpretation of these Rules;

 

(f)                                  reference to a clause or paragraph is a reference to a clause or
paragraph of these Rules, or the corresponding Rule or Rules of this
Plan as amended from time to time;

 

(g)                               reference to any document or agreement includes reference to that
document or agreement as amended, novated, supplemented, varied or replaced
from time to time;

 

(h)                               where any word or phrase is given a definite meaning in these Rules,
any part of speech or other grammatical form of that word or phrase
has a corresponding meaning; and

 

(i)                                   a reference to a person includes a reference to the person’s legal
personal representatives, executors, administrators and successors, a firm or a
body corporate.

 

3.                                   Operation
of the plan

 

3.1                              The Plan commences on the date these Rules are
approved by the Plan Committee with effect from 1 April 2004 or any later
date the Plan Committee decides.

 

3.2                              The Plan will be operated in accordance
with these Rules which bind the Company, the Plan Companies, each
Participant and each Group Company (other than the Company) which has agreed
with the Company to be bound by these Rules.

 

3.3                              Except to the extent that the Plan is
administered by, or at the direction of, the Plan Committee under Rule 22,
the Plan is administered by each Plan Company in relation to the Eligible
Employees for which the Plan Company is responsible.

 

3.4                              Subject to these Rules, the Listing Rules and
any law to the contrary, the Plan Companies must follow any direction given to
them by the Plan Committee as to the operation of the Plan.

 

3.5                              All the expenses, costs and charges
incurred by a Plan Company in operating the Plan (other than Authorised
Deductions) must be paid:

 

(a)                                from the Plan Account; and

 

(b)                               to the extent that there are not sufficient funds in the Plan
Account, by the Company or a Participating Group Company.

 

8

 

3.6                              Each Participant must grant an
irrevocable power of attorney, in the form determined by the Plan
Committee from time to time, to the Plan Company and to any other person or
persons nominated by the Plan Committee, authorising the attorney:

 

(a)                                to acquire Plan Securities in the Participant’s name in accordance
with Rule 4 (if applicable) and to execute any documents necessary to
subscribe for Plan Securities on behalf of the Participant or to arrange for
the transfer of Plan Securities to the Participant for the purposes of these
Rules;

 

(b)                               to transfer Plan Securities to the Participant including after the
withdrawal of those Plan Securities from the Plan in accordance with Rule 6;

 

(c)                                to dispose of, or otherwise deal with, any Plan Securities required
to be forfeited under Rule 12;

 

(d)                               to dispose of, or otherwise deal with, any Plan Securities in
accordance with any directions given by the Plan Committee under Rule 9.2
in the event of a Corporate Control Event;

 

(e)                                to sell, in the manner and at the time determined by the attorney,
any Qualified Securities Registered in the name of the Participant to pay for
or reimburse Authorised Deductions;

 

(f)                                  to agree to nominee or sub-nominee arrangements and deal with the
Participant’s beneficial interest in those arrangements as contemplated in Rule 16
(if applicable);

 

(g)                               to deal with rights arising in respect of Plan Securities held under
the Plan on the Participant’s behalf;

 

(h)                               to take any actions that are necessary or desirable to give effect
to the treatment described in Rule 11.2 in respect of shares or ADRs
resulting from a Capital Reconstruction Event;

 

(i)                                   to delegate its powers to any person or persons determined by the
attorney from time to time; and

 

(j)                                   to engage in such other activities as are specified by the Plan
Committee at the time of the offer or when notice of a proposed grant is given.

 

4.                                   How the
plan works

 

4.1                              The Plan Committee may from time to
time in its absolute discretion make an offer to participate, or give notice of
a proposed grant of participation, in the Plan to any Eligible Employee. The
offers or notices of proposed grants may be on whatever terms, consistent
with these Rules, the Plan Committee decides. The Peer Group initially applying
and full details of all applicable Qualification Requirements must be set out
in the offer or notice of proposed grant.

 

4.2                              The Plan Committee may, at any time, in
its absolute discretion waive any Qualification Requirement applicable to any
Plan Securities held under this Plan in whole or in part if it forms the
opinion that doing so is in the best interests of the Company.

 

4.3                              On and from the commencement of the
Plan, the Company and any relevant Participating Group Company must pay the
appropriate Plan Company contributions determined by the Plan Committee from
time to time to fund the acquisition of Plan Securities consistent with the
Terms of Offers to Participants.

 

4.4                              The Plan Companies must use each such
contribution to acquire, or to fund the acquisition of, Plan Securities in the
ordinary course of trading on the ASX, NYSE or from a new issue of Plan
Securities referred to in Rule 8 as directed from time to time by the Plan
Committee. The Plan Companies need not acquire, or fund the acquisition of, the
Plan Securities promptly after

 

9

 

acceptance of an offer, or receipt of a notice of a proposed grant , by a
Participant, but must acquire, or fund the acquisition of, the Plan Securities
at the time determined by the Plan Committee.

 

4.5                              The Terms of Offer may provide that
a Participant will be compensated for any dividend payable on Plan Securities
as from a specified date or a specified dividend. If so, Rule 8.7 applies.

 

Note:                 If Participants
are entitled to compensation for dividends, they will also be entitled to
compensation for returns of capital and other distributions in accordance with Rule 8.7.

 

4.6                              Unless the Terms of Offer provide to the
contrary or the relevant Participant has agreed with the relevant Plan Company
to the contrary:

 

(a)                                the Australian Plan Company will acquire Rinker Shares on behalf of
Participants or convert Rinker ADRs into Rinker Shares to be held on behalf of
Participants; and

 

(b)                               the US Plan Company will acquire Rinker ADRs on behalf of Participants
or convert Rinker Shares into Rinker ADRs to be held on behalf of Participants.

 

4.7                              Any funds held by a Plan Company from
time to time and not required for the purposes of Rule 4.4 are to be paid
into a Plan Account.

 

4.8                              Plan Securities acquired under the Plan
for a Participant are to be Registered in the name of the Participant(1) nominated
by the Plan Committee within 14 days of the acquisition by the relevant Plan
Company subject to the terms of these Rules.

 

4.9                              Participants cannot receive fractions of
Plan Securities. Any Plan Securities remaining after the allocation of whole
Plan Securities are to be treated as Forfeited Securities and any funds
remaining after the acquisition of whole Plan Securities are to be treated as
the proceeds of sale of Forfeited Securities.

 

4.10                        The relevant Plan Company must notify
each Participant in writing within 90 days from the date on which Plan
Securities are acquired by that Participant under the Plan.

 

5.                                   Qualification
of securities resulting from performance

 

5.1                              Except as may be set out in the
relevant Terms of Offer, the Percentile Ranking will be calculated as of the
following days for each Parcel of Plan Securities acquired on behalf of a
Participant under the Plan:

 

(a)                                the last day of the Performance Period for that Parcel;

 

(b)                               subject to Rule 5.4, the day on which any Corporate Control
Event occurs but only if the Plan Committee determines (before or after the
relevant Corporate Control Event occurs) that this Rule 5.1(b) should
apply; and

 

(c)                                any other day or days on which the Plan Committee in its absolute
discretion determines for a specified Participant, specified Participants or
Participants generally if it forms the opinion that such a determination is in
the best interests of the Company.

 

(1)  As
noted in the definition of Registered, if Plan Securities are to be held in
nominee form, the Plan Securities will be registered in the name of the nominee
with only beneficial ownership vested in the Participant.

 

10

 

5.2                              When the Percentile Ranking is
calculated for any Parcel of Plan Securities, a percentage of Plan Securities
in the Parcel may become qualified securities under the qualification schedule as
set out in the relevant Terms of Offer.

 

Note:                 The consequence of Plan Securities being
qualified securities under the qualification schedule set out in the
relevant Terms of Offer is only that the Plan Securities will have satisfied
paragraph (a) of the definition of Qualification Requirements where a
member of the Plan Committee has certified that they are so qualified. Additional
requirements may have to be met before the Plan Securities satisfy the
definition of Qualified Securities.

 

5.3                              If the Percentile Ranking is calculated
more than once under Rule 5.1 for any Parcel of Plan Securities and any
Plan Securities in the Parcel have previously become qualified securities under
the qualification schedule set out in the relevant Terms of Offer:

 

(a)                                those Plan Securities will remain qualified securities to the extent
previously calculated even if the Percentile Ranking is lower than previously
calculated;

 

(b)                               those Plan Securities (whether or not withdrawn from the Plan) will
comprise part (or all) of the Plan Securities in the Parcel that are
qualified securities as a result of a later calculation of the Percentile
Ranking; and

 

(c)                                if some Unqualified Securities in the Parcel have been forfeited
subsequently to the Plan Securities becoming qualified securities, a
corresponding proportion of the qualified securities must be disregarded in
applying Rule 5.3(b) subsequently.

 

5.4                              If the event in Rule 9.1(e) has
occurred, the Percentile Ranking will not be calculated under Rule 5.1(b) for
any Participant who is a person to whom section 200C of the Corporations Act applies.

 

6.                                   Withdrawals

 

6.1                              Plan Securities acquired by a
Participant will be held in the Plan, under the administrative control of a
Plan Company and subject to these Rules, the Trading Lock referred to in Rule 7.2,
and satisfaction or waiver of any Qualification Requirements applicable to such
Plan Securities, unless and until the Plan Securities are released from the
Plan under this Rule 6 or ownership of the Plan Securities has been
forfeited under Rule 12.

 

6.2                              The Plan Company will be entitled to
retain possession of any certificates or other documents evidencing title to
Plan Securities while such Plan Securities are held in the Plan.

 

6.3                              Subject to Rule 6.5, if Plan
Securities have not been forfeited under Rule 12, a Participant may submit
a Notice of Withdrawal of Securities to the relevant Plan Company, which Notice
is effective if and when approved by the Plan Committee.

 

6.4                              Where a Notice of Withdrawal of
Securities has been submitted by a Participant under Rule 6.3, the Plan
Company shall notify the Plan Committee and, subject to these Rules, approval
for withdrawal of Plan Securities will only be given by the Plan Committee
where:

 

(a)                                the Plan Committee has determined that approval is appropriate
(having regard to, among other things, whether or not circumstances have arisen
which give the Plan Committee reasonable grounds to suspect that a Participant’s
right or interest in the Plan Securities would or might be forfeited under Rule 12);
and

 

(b)                               the Plan Securities are Qualified Securities or any remaining
Qualification Requirements have been waived.

 

6.5                              At the time Plan Securities become
Qualified Securities, a Participant will be deemed to have submitted a Notice
of Withdrawal of Securities to the relevant Plan Company in respect of those

 

11

 

Plan Securities, and approval of withdrawal of those Plan Securities will
be deemed to have been given by the Plan Committee, if:

 

(a)                                the Participant is an Eligible Non-Australian Employee; and

 

(b)                               the Plan Securities have not been forfeited under Rule 12; and

 

(c)                                no circumstances have arisen which give the Plan Committee
reasonable grounds to suspect that a Participant’s right or interest in the
Plan Securities would or might be forfeited under Rule 12.

 

6.6                              If a Notice of Withdrawal of Securities
is approved by the Plan Committee, or deemed to be approved by the Plan
Committee under Rule 6.5, the Company and the Plan Company must take all
reasonable steps to release those Plan Securities from the Plan, including
(without limitation) procuring the removal of the Trading Lock applied to those
Plan Securities and will, if requested, notify the Participant of the
particular time when the Trading Lock is removed.

 

6.7                              If a Participant ceases to be an
employee of all Group Companies (including by virtue of the employer of the
Participant ceasing to be a Group Company), the Participant will be deemed to
have submitted a Notice of Withdrawal of Securities in respect of all Plan
Securities held on behalf of the Participant (except for any Plan Securities
which are Forfeited Securities). For the avoidance of doubt, a Participant will
not cease to be an employee of all Group Companies where the Participant ceases
to be an employee of one Group Company and, in connection with such cessation,
becomes an employee of any other Group Company.

 

Note:                 Plan
Securities will not necessarily be withdrawn from the Plan unless the Plan
Committee determines, under Rule 6.4, that approval is appropriate for
particular Participants or classes of Participants.

 

6.8                              If a Participant owes money to any Group
Company, Plan Company or nominee, the Plan Committee may decline to act on
a Notice of Withdrawal of Securities submitted by the Participant (or a deemed
Notice of Withdrawal) until arrangements (which are satisfactory to the Plan
Committee) have been made for the payment of the money.

 

7.                                   Restrictions
in dealing with plan securities

 

7.1                              A Participant may not dispose of or
grant a Security Interest over any Plan Securities held under the Plan on his
or her behalf without a Notice of Withdrawal of Securities having been
submitted, or deemed to have been submitted in accordance with Rule 6.5,
and such Notice having been approved, or deemed to have been approved under Rule 6.5,
by the Plan Committee.

 

7.2                              Subject to the Listing Rules, a Trading
Lock will be applied by the Company to all Plan Securities held in the Plan
under Rule 6.1, and the relevant Plan Company may take any other
steps it considers necessary or appropriate to enforce and give effect to the
Qualification Requirements or the disposal restrictions under Rule 7.1. Each
Participant:

 

(a)                                irrevocably authorises the Company to apply a Trading Lock to Plan
Securities held by that Participant; and

 

(b)                               undertakes not to request the removal of the Trading Lock (or permit
or authorise another person to do so),

 

while those Plan Securities are held in the Plan under Rule 6.1.

 

12

 

8.                                   Distributions
and other benefits

 

8.1                              Except as set out below, a Participant
is entitled to receive any dividend, return of capital or other distribution
(less Authorised Deductions) made in respect of Plan Securities Registered in
his or her name and held under the Plan (other than Forfeited Securities). This
applies notwithstanding that the Plan Securities remain subject to the
Qualification Requirements and the provisions of Rule 6.1.

 

Note:                 Participants
may be entitled to compensation for dividends, returns of capital or other
distributions paid before Plan Securities have been acquired on their behalf in
accordance with Rule 8.7.

 

8.2                              Where any bonus Plan Securities are
issued by the Company in respect of Plan Securities Registered in the name of a
Participant and held under the Plan (other than Forfeited Securities):

 

(a)                                the bonus Plan Securities will be regarded as Qualified Securities
to the extent that the bonus Plan Securities are a dividend; and

 

(b)                               any other bonus Plan Securities received by a Participant, except
where the Plan Committee determines to the contrary, will be regarded for the
purposes of the Plan as having been acquired and Registered in the name of the
Participant as part of the same Parcel, and be subject to the same
Qualification Requirements, as the Plan Securities to which the bonus is
attributable.

 

8.3                              Except where the Plan Committee decides
to apply Rules 8.4, 8.5 and 8.6 to a renounceable rights issue, where any
renounceable rights issue is made by the Company in respect of Plan Securities
Registered in the name of a Participant and held under the Plan (other than
Forfeited Securities):

 

(a)                                the relevant Plan Company must:

 

(i)                                  at the time and in the manner determined by it, sell a sufficient
number of rights so that the proceeds of sale equals or exceeds the exercise
price of the remaining rights; and

 

(ii)                               exercise those remaining rights;

 

(b)                               any of the Plan Securities received by the Plan Company on the
exercise of the rights, except where the Plan Committee determines to the
contrary, will be regarded for the purposes of the Plan as having been acquired
and Registered in the name of the Participant as part of the same Parcel,
and, except where the Plan Committee determines to the contrary, be subject to
the same Qualification Requirements, as the Plan Securities to which the rights
are attributable; and

 

(c)                                any funds remaining after the exercise of the rights and the payment
of any applicable expenses and Taxes are to be treated as the proceeds of sale
of Forfeited Securities.

 

8.4                              Where any rights issue (other than a
rights issue dealt with in Rule 8.3) is made by the Company in respect of
Plan Securities Registered in the name of a Participant and held under the Plan
(other than Forfeited Securities), a Participant may exercise such rights
(Rights) if, and only if, the exercise
price is funded by either or both of:

 

(a)                                a contribution paid by the Company or a Participating Group Company
on behalf of a Participant for this purpose, the amount of such contribution
(if any) to be determined by the Plan Committee in its absolute discretion;
and/or

 

(b)                               a contribution paid by the Participant.

 

8.5                              Except where the Plan Committee
determines to the contrary, to the extent that a Participant acquires Plan
Securities by exercising Rights using a contribution paid by the Company or a
Participating Group Company under Rule 8.4(a), the new Plan Securities
acquired by the

 

13

 

Participant will be regarded for the purposes of the Plan as having been
acquired and Registered in the name of the Participant as part of the same
Parcel, and, except where the Plan Committee determines to the contrary, be
subject to the same Qualification Requirements, as the Plan Securities to which
the Rights are attributable.

 

8.6                              To the extent that Plan Securities are
acquired as a result of the exercise of Rights using a contribution paid by the
Participant under Rule 8.4(b) (Participant’s Contribution):

 

(a)                                a number of the new Plan Securities acquired equal to the amount of
the Participant’s Contribution divided by the Market Value of Plan Securities
on the day the Rights were exercised (rounded up) will be regarded as Qualified
Securities acquired and Registered in the name of the Participant; and

 

(b)                               the remainder of the new Plan Securities acquired by the
Participant, except where the Plan Committee decides to the contrary, will be
regarded for the purposes of the Plan as having been acquired and Registered in
the name of the Participant as part of the same Parcel, and, except where
the Plan Committee determines to the contrary, be subject to the same
Qualification Requirements, as the Plan Securities to which the Rights are
attributable.

 

8.7                              If a date is specified for the purposes
of Rule 4.5, each relevant Participant will be entitled to receive a
payment or payments in compensation for all dividends, returns of capital or
other distributions payable on Plan Securities which the Participant has not
received, but which would have been received by the Participant if the Plan
Securities offered to and accepted by, or of which notice of grant has been
given to and not refused by, the Participant had been acquired and Registered
in the name of the Participant as at the specified date or immediately before
the record date for the specified dividend. The amount of the payment is to be
calculated as determined by the Plan Committee in its absolute discretion. The
calculation must have regard to the value of any Australian dividend imputation
(franking) credits in the case of relevant Participants who would receive a
benefit from receiving such credits.

 

9.                                   Corporate
control event

 

9.1                              A corporate control event occurs where:

 

(a)                                an offer is made for Rinker Shares pursuant to a takeover bid under
Chapter 6 of the Corporations Act; or

 

(b)                               the Court sanctions under Part 5.1 of the Corporations
Act a compromise or arrangement relating to the Company or a
compromise or arrangement proposed for the purposes of or in connection with a
scheme for the reconstruction of the Company or its amalgamation with any other
company or companies; or

 

(c)                                any other merger, consolidation or amalgamation involving the
Company occurs which results in the holders of the Plan Securities immediately
prior to the merger, consolidation or amalgamation being entitled to 50 per cent
or less of the voting shares in the body corporate resulting from the merger,
consolidation or amalgamation; or

 

(d)                               Plan Securities held under the Plan are subject to compulsory
acquisition or cancelled (on a non pro-rata basis) under any law (including as
a result of a reduction of capital); or

 

(e)                                any Group Company or Group Companies enter into agreements to sell
in aggregate a majority in value of the businesses or assets (whether or not in
the form of shares in a Group Company) of all the Group Companies to a
person, or a number of related companies, none of which are Group Companies; or

 

14

 

(f)                                  notice is duly given to members of a proposed resolution for the
voluntary winding up of the Company; or

 

(g)                               an administrator, liquidator, provisional liquidator, receiver or
receiver and manager is appointed in respect of substantially all of the assets
of the Company.

 

9.2                              Without limitation to any other
provisions of these Rules, if a Corporate Control Event occurs, the Plan
Committee may, in its absolute discretion:

 

(a)                                waive or modify (but not add to) any or all of the Qualification
Requirements in relation to all or any specified Participants;

 

(b)                               add to or vary any of these Rules without the need for consent
or approval under Rule 17.2;

 

(c)                                direct the relevant Plan Company to dispose of Plan Securities held
under the Plan (on behalf of all or any specified Participants) in such number
and on such terms as the Plan Committee determines; or

 

(d)                               take any other actions, or direct the relevant Plan Company to take
any other actions, as the Plan Committee determines,

 

provided that any actions taken under this Rule (when considered
together with the terms of any other arrangement or offer made available to Participants
in connection with the actions) do not, in the Plan Committee’s opinion,
materially disadvantage Participants.

 

9.3                              Without limiting Rule 9.2(d), if
the Plan Committee directs the relevant Plan Company to dispose of Plan
Securities in accordance with Rule 9.2(c), the Plan Committee may, in its
absolute discretion, direct the Plan Company to use the proceeds of such
disposal to acquire additional Plan Securities to be held under the Plan on
behalf of Participants (whether or not those Participants include the
Participants whose Plan Securities were sold).

 

9.4                              To the extent of any inconsistency
between Rule 9.2(d) and Rule 8, Rule 9.2(d) will
prevail.

 

10.                            Constitution
of plan committee on occurrence of corporate control event

 

10.1                        If a Corporate Control Event occurs,
this Rule 10 applies, unless the committee of persons referred to in Rule 10.2(a) by
majority resolution determine to the contrary.

 

10.2                        When this Rule 10 applies:

 

(a)                                all powers and discretions (including powers and discretions to make
determinations, make decisions, give approvals and form opinions) vested
in the Plan Committee under these Rules will be vested in, and exclusively
exercisable by, a committee of persons comprising the persons who held office
as directors of the Company immediately prior to the relevant Corporate Control
Event;

 

(b)                               the Plan Committee must only act in a way which, in the reasonable
opinion of that committee, causes the Plan to operate in a fair manner in
respect of existing Participants under the Plan (taken as a whole) and in so
acting the Plan Committee will be taken to be acting in the best interests of
the Company;

 

(c)                                any powers or discretions (including powers and discretions to make
determinations, make decisions, give approvals and form opinions) which
are only exercisable by the Plan Committee after it forms the opinion (however
expressed) that the exercise would be in the best interests of the Company,
will be exercisable if the Plan Committee acts in accordance with Rule 10.2(b);

 

15

 

(d)                               the provisions of the Company’s Constitution (as in force
immediately prior to the relevant Corporate Control Event) relating to
committees of directors apply to the Plan Committee with any necessary changes
on the basis that the Plan Committee is entitled to sub-delegate, except that
no member of the Plan Committee need be a director of the Company;

 

(e)                                a majority of the remaining members of the Plan Committee may continue
to act despite any vacancy or vacancies resulting from any resignation, or
other loss of office, of any member or members of the Plan Committee, but if
there are fewer than three members of the Plan Committee remaining, the
majority may only act to fill some or all of those vacancies under Rule 10.2(f);

 

(f)                                  a majority of the remaining members of the Plan Committee may fill
any vacancy resulting from any resignation, or other loss of office, of any
member of the Plan Committee; and

 

(g)                               the Plan Committee may act, and confer benefits on any one or
more members of the Plan Committee, despite any one or more members of the Plan
Committee being interested in the subject matter of its deliberations.

 

11.                            Capital
reconstruction

 

11.1                        A capital reconstruction event occurs
where:

 

(a)                                Plan Securities are consolidated or subdivided; or

 

(b)                               shares or ADRs other than Plan Securities, in the Plan Committee’s
opinion, are substituted for, or replace, Plan Securities; or

 

(c)                                shares or ADRs other than Plan Securities are issued to or acquired
by persons holding Plan Securities in circumstances where, in the Plan
Committee’s opinion, the transaction under which the shares or ADRs are issued
or acquired is in substance a division of the business activities carried on by
the Company and the Group Companies into two or more separate groups.

 

11.2                        Unless the Plan Committee determines
that it is undesirable for this Rule to apply, if a Capital Reconstruction
Event occurs, any resulting shares or ADRs will be held under the Plan and the
Plan will apply to such shares or ADRs in a manner that is as near as possible
to the way the Plan applies to Plan Securities. In this regard, any or all
references to the Company in these Rules will, if the Plan Committee so
determines, be taken to be references to, or to include, the issuer of any such
shares or shares underlying such ADRs. The provisions of rule 17.2 do not
apply to any addition to or variation of these Rules which is considered
by the Plan Committee to be reasonably necessary to give effect to this Rule 11.2.

 

11.3                        If a Capital Reconstruction Event
referred to in paragraphs (b) or (c) of Rule 11.1 occurs, in
addition to any Notice of Withdrawal of Securities deemed to have been
submitted under Rule 6.7, each Participant will be deemed to have
submitted:

 

(a)                                a Notice of Withdrawal of Securities in respect of all Plan
Securities held on behalf of the Participant (except for any Plan Securities
which are Forfeited Securities); and

 

(b)                               a separate Notice of Withdrawal of Securities in respect of all
shares or ADRs other than Plan Securities held on behalf of the Participant
(except for any such shares or ADRs resulting from Forfeited Securities).

 

16

 

Note:                 Plan
Securities of either type will not necessarily be withdrawn from the Plan
unless the Plan Committee determines, under Rule 6.4, that approval is
appropriate for particular Participants or classes of Participants.

 

11.4                        To the extent of any inconsistency
between Rule 11.2 and Rule 8, Rule 11.2 will prevail.

 

12.                            Forfeiture

 

12.1                        Each of the following events will be a
special circumstance in relation to a Participant:

 

(a)                                (retirement) the voluntary
cessation of a Participant’s employment with the Company or a Participating
Group Company in circumstances where, in the opinion of the Plan Committee, the
Participant intends to no longer work on a full-time or permanent part-time
basis;

 

(b)                               (permanent disablement) the
disablement of the Participant the effect of which, in the opinion of the Plan
Committee, is likely to be permanent and will stop the Participant continuing
his or her current employment with a Group Company;

 

(c)                                (death) the death of the
Participant;

 

(d)                               (Terms of Offer) any other
circumstances in relation to specified Participants or Participants generally stated
to constitute specified circumstances in the Terms of Offer of particular Plan
Securities; or

 

(e)                                (other circumstances) any other
circumstance as determined by the Plan Committee in its absolute discretion and
notified to the Participant in writing or by email.

 

12.2                        The Plan Committee may, in its absolute
discretion, decide that a Participant (and any person claiming through him or
her) will forfeit any right or interest in any Unqualified Securities or other
entitlements under the Plan to a Plan Company (or as otherwise directed by the
Plan Committee) if:

 

(a)                                the Performance Period has expired for the Parcel of which the Plan
Securities form part (whether or not the Plan Committee has
previously become empowered to decide that the Participant will forfeit such
right or interest under any other provision of this Rule 12 and whether or
not the Participant is an Eligible Employee when he or she would be required to
forfeit such right or interest); or

 

(b)                               except as otherwise provided in Rule 12.3, the Participant
ceases to be an employee of all Group Companies (including by virtue of the
employer of the Participant ceasing to be a Group Company or the occurrence of
a Special Circumstance) at a time when the Plan Securities acquired on behalf
of the Participant under the Plan are Unqualified Securities. For the avoidance
of doubt, a Participant will not cease to be an employee of all Group Companies
where the Participant ceases to be an employee of one Group Company and, in
connection with such cessation, becomes an employee of any other Group Company.

 

12.3                        If a Special Circumstance in relation to
a Participant occurs at least 12 months after the commencement of the
Performance Period for any Parcel of which Unqualified Securities form part,
the Plan Committee may, in its absolute discretion, decide that the Participant
(and any person claiming through him or her) will forfeit a percentage of any
right or interest in the Plan Securities or other entitlements under the Plan
to the Plan Company (or as otherwise directed by the Plan Committee)
proportionate to the period remaining until the expiry of the Performance
Period. The Percentile Ranking will be calculated for any Plan Securities not
forfeited under this Rule 12.3 in accordance with Rule 5 as if, subject
to Rule 5.3(c), the relevant Parcel comprised only Plan Securities not
forfeited.

 

17

 

12.4                        Unless otherwise determined by the Plan
Committee, a Participant (and any person claiming through him or her) will
forfeit any right or interest in any Plan Securities (whether Qualified
Securities or Unqualified Securities) or other entitlements under the Plan to
the Plan Company (or as otherwise directed by the Plan Committee) if the
Participant has, in the opinion of the Plan Committee, been dismissed for a
reason which entitles the Company or a Group Company to dismiss the Participant
without notice, or has committed any act of fraud, defalcation or gross
misconduct in relation to the affairs of the Company or any Group Company
(whether or not charged with an offence).

 

12.5                        If the Plan Committee has formed the
view, in its reasonable opinion, that any Plan Securities held by a Participant
under the Plan could be forfeited under these Rules, as an alternative to the
Participant forfeiting any right or interest in the Plan Securities the Plan
Committee may, in its absolute discretion and despite Rule 7.1, allow a
person other than a Plan Company, the Company or any Group Company (or any
entity controlled by any of those persons) to acquire from the Participant for
a nominal amount all right or interest the Participant may have in the
relevant Plan Securities (Participant’s Interest),
provided that the Participant executes any document necessary or desirable for
transferring such right or interest and that person has executed any documents
required by the Plan Committee. At any time after a person (Transferee) acquires the Participant’s Interest in
accordance with this Rule, the Plan Committee may, in its absolute discretion,
decide that the Transferee  (and any
person claiming through the Transferee) will forfeit all right or interest in
the Plan Securities (or other entitlements under the Plan) to which the
Participant’s Interest relate and, immediately after such a decision, the
relevant Plan Securities are, and must be treated as, Forfeited Securities.

 

12.6                        By notice in writing, the Plan Committee
may require the relevant Plan Company:

 

(a)                                to re-allocate any Forfeited Securities to one or more Eligible
Employees as determined by the Plan Committee, subject to any conditions
specified by the Plan Committee, within 60 days of the Forfeited Securities
being transferred to a Plan Company; or

 

(b)                               in the case of the US Plan Company, to transfer any Forfeited
Securities to Merrill Lynch Trust Company, FSB or such other person appointed
to act as trustee under the Trust Agreement No. 2 dated 16 November 2004
(as amended) for the Rinker Materials Corporation Supplemental Executive Profit
Sharing 401(k) Plan, within 60 days of the Forfeited Securities being
transferred to the US Plan Company (or to any nominee for that trustee); or

 

(c)

 

(i)                                  to sell any Forfeited Securities on a financial market operated by
ASX or NYSE within 60 days of the Forfeited Securities being transferred to a
Plan Company; and

 

(ii)                               to apply part or all of the proceeds of sale of any Forfeited
Securities to satisfy any expenses (including Taxes) incurred in connection
with the Plan or to reimburse the Plan Company for any such expenses paid by
it; and

 

(iii)                            to deposit the proceeds of sale (after deducting any amounts
referred to in Rule 12.6(c)(ii)) of any Forfeited Securities in a Plan
Account in accordance with Rule 13.1.

 

12.7                        A Plan Company:

 

(a)                                subject to paragraph (b), must hold Forfeited Securities until it
receives a notice from the Plan Committee under Rule 12.6; and

 

(b)                               regardless of whether or not it has received a notice from the Plan
Committee under Rule 12.6, promptly sell on a financial market operated by
ASX or NYSE any Forfeited

 

18

 

Securities still held by it after 55 days
to ensure that Forfeited Securities are disposed of within 60 days.

 

12.8                        Unless it is permitted to do so by the Corporations Act, a Plan Company must not transfer the
Forfeited Securities to the Company or any Group Company (other than another
Plan Company).

 

13.                            Plan
account

 

13.1                        There will be paid into a Plan Account:

 

(a)                                the proceeds of sale of any Forfeited Securities under Rule 12.6(c)(iii);

 

(b)                               any income (including any dividend, bonus issue or other benefit)
received in connection with any Forfeited Securities held by a Plan Company;

 

(c)                                the proceeds of any investment of the moneys held in a Plan Account,
in accordance with Rule 13.4; and

 

(d)                               any amounts payable to a Plan Account under Rule 4.7 or 18.3.

 

13.2                        A Plan Company is authorised to pay from
a Plan Account:

 

(a)                                all outgoings and expenses the Plan Company properly incurs in
buying, selling and otherwise dealing with Plan Securities for Participants under
the Plan;

 

(b)                               if and to the extent authorised by any agreement between the Plan
Company and the Company or any Participating Group Company, any Tax properly
payable by or imposed upon the Plan Company in connection with performing its
functions under these Rules (except for any Tax payable by the Plan
Company in respect of any fees payable to the Plan Company under any such
agreement);

 

(c)                                any other amounts that the Plan Committee authorises from time to
time; and

 

(d)                               amounts paid or applied under Rule 13.3.

 

13.3                        Any balance in a Plan Account from time
to time will either be:

 

(a)                                paid by a Plan Company to the Company or a Participating Group
Company (or as otherwise directed by the Plan Committee); or

 

(b)                               applied by a Plan Company to fund the acquisition of Plan Securities
for Participants in accordance with Rule 4.4, as though the relevant
amount were a contribution made under Rule 4.3,

 

as and when directed by the Plan Committee.

 

13.4                        Pending dealing with any amount in a
Plan Account under Rule 13.3, the Plan Company may invest the amount
in short term deposits or otherwise apply the amount for the purposes of the
Plan.

 

14.                            Authorised
deductions

 

14.1                        If a Plan Company, Group Company or
nominee (Relevant Person):

 

(a)                                incurs any brokerage, commissions or similar fees in buying, selling
or otherwise dealing with Plan Securities for Participants (other than the
initial acquisition of Plan Securities on behalf of a Participant and the
Registration of those Plan Securities in the name of the Participant under Rule 4);
or

 

19

 

(b)                               reasonably considers that any Tax is or will be payable by it in
connection with the operation of the Plan,

 

then any such amounts referable to a Participant:

 

(c)                                may be deducted by the Plan Company from any contributions made
in respect of the Participant and paid to the Relevant Person,

 

and, to the extent that amounts referred to in Rules 14.1(a) and
14.1(b) are not recovered under Rule 14.1(c), they:

 

(d)                               may be deducted from the proceeds of the sale of any Qualified
Securities which the Plan Company (or other agent or attorney) sells under any
authority or instruction given by the Participant (including a power of
attorney granted in accordance with Rule 3.6) and paid to the Relevant
Person; and

 

(e)                                constitute money owed by the Participant to the Relevant Person for
the purposes of Rules 6.8.

 

15.                            Voting
rights

 

15.1                        Subject to the Listing Rules and
the terms of issue of relevant Plan Securities, a Participant may, from the time
that Plan Securities are acquired on behalf of the Participant and Registered
in the name of the Participant under Rule 4.8, either:

 

(a)                                exercise any voting rights attaching to Rinker Securities held in
the Plan and Registered in his or her name, or may appoint a proxy to
represent or vote for him or her, at any meeting of the members of the Company;
or

 

(b)                               direct any nominee holding Plan Securities on the Participant’s
behalf as to how any voting rights attaching to the Plan Securities are to be
exercised.

 

Note:                 Participants
will not be able to exercise voting rights until Plan Securities are acquired
in accordance with Rule 4.4.

 

15.2                        Voting rights attaching to Plan
Securities acquired under the Plan may not otherwise be exercised by any
Group Company or Plan Company.

 

16.                            Use of
nominees

 

16.1                        Subject to any restrictions imposed by
the Plan Committee from time to time in relation to specified Participants or
Participants generally, Plan Securities to be:

 

(a)                                registered in the name of a Participant under the Plan; or

 

(b)                               acquired, forfeited, disposed of or otherwise dealt with under the
Plan,

 

may be:

 

(c)                                registered in the name of a nominee or nominees with beneficial
ownership of the Plan Securities vested in the Participant (whether directly or
via a sub-nominee arrangement or arrangements); and

 

(d)                               acquired, forfeited, disposed of or otherwise dealt with under the
Plan by way of the Participant’s beneficial interest under the nominee (or
sub-nominee) arrangement.

 

20

 

16.2                        The Plan Committee may from time to
time determine the terms of any nominee or sub-nominee arrangement applying to
any Participant, class of Participants or Participants generally.

 

16.3                        The Plan Committee may from time to
time specify how these Rules are to apply in relation to Plan Securities
registered, or to be registered, in the name of a nominee or held, or to be
held, via a sub-nominee arrangement.

 

16.4                        These Rules, and all references to Plan
Securities being Registered in the name of Participants, are to be interpreted
accordingly. Each Participant acknowledges and agrees that each Plan Company
and the Plan Committee may fulfil their obligations and exercise their
powers and discretions under the Plan as authorised by this Rule 16.

 

17.                            Variation
of rules

 

17.1                        The Plan Committee may add to or
vary any of these Rules, or waive or vary the application of any of these Rules in
relation to any Participant, at any time by resolution of the Plan Committee.

 

17.2                        If all additions or variations proposed
at any one time under Rule 17.1 (when considered together with the terms
of any other arrangement or offer made available to Participants) would, in the
Plan Committee’s reasonable opinion, materially disadvantage Participants in respect
of Plan Securities held under the Plan, the Plan Committee must obtain:

 

(a)                                the written consent of three-quarters of the Participants affected
by such addition or variation; or

 

(b)                               the approval of a majority consisting of three-quarters of those who
vote of the Participants affected by such addition or variation at a meeting or
by ballot (postal or otherwise) conducted in accordance with procedures
approved by the Plan Committee.

 

17.3                        In addition to its powers under Rule 17.1,
the Plan Committee, acting reasonably, may add to or vary any of these
Rules, or waive or vary the application of any of these Rules without the
consent or approval of any Participant so that offers or grants to Eligible
Employees, and Plan Securities held under the Plan, are eligible for any
taxation concessions available to employee share plans that are similar to the
taxation concessions available under the Plan at the time the Plan commences,
if:

 

(a)                                the provisions of Division 13A of Part III of the Income Tax Assessment Act 1936 (Cth) are amended, or
repealed and replaced with new legislation (whether such new legislation is
located in the Income Tax Assessment Act 1936
(Cth), Income Tax Assessment Act 1997 (Cth) or
in any other Act); and

 

(b)                               as a result, offers or grants to Eligible Employees, or Plan
Securities held under the Plan, are not eligible for all the taxation
concessions that were available under the Plan at the time the Plan commenced.

 

18.                            Termination
and suspension of the plan

 

18.1                        The operation of the Plan may be
terminated or suspended at any time by resolution of the Plan Committee.

 

18.2                        Where the Plan is terminated or
suspended, each Participant who holds Plan Securities subject to the Plan is
deemed to have submitted a Notice of Withdrawal of Securities in respect of all
of the Participant’s Plan Securities. Notwithstanding Rules 6.4 and 6.5,
but subject to Rules 7 and 12, the Plan Committee may decide to
permit Plan Securities then held by a Participant under the Plan which are
Unqualified Securities to be withdrawn from the Plan or give directions as to
how such

 

21

 

Plan Securities are to be dealt with, and must give such other directions
to the Plan Companies regarding the operation of the Plan as the Plan Companies
may request.

 

18.3                        Upon termination of the Plan, any Plan
Securities remaining in the Plan after determinations under Rules 18.2
must be forfeited and sold and the proceeds paid into a Plan Account.

 

19.                            Connection
with other plans

 

Participation in the Plan does not affect, and is not affected by,
participation in any other incentive or other scheme operated by the Company
unless the terms of that other scheme provide otherwise.

 

20.                            Notices

 

Any notice or direction given under these Rules is validly given
if it is:

 

(a)                                handed to the person concerned; or

 

(b)                               sent by ordinary prepaid post to the person’s last known address; or

 

(c)                                sent by electronic means to the person’s last known electronic
address; or

 

(d)                               given in such manner as the Plan Committee from time to time
determines.

 

21.                            Governing
law

 

This Plan and the rights of the Participants under the terms and
conditions of the Plan shall be governed by the laws of the State of New South
Wales, Australia.

 

22.                            Administration
of the plan

 

22.1                        The Plan will be administered by the
Plan Committee in accordance with these Rules. The Plan Committee may make
regulations for the operation of the Plan which are consistent with these
Rules.

 

22.2                        Where the Rules provide for a
determination, decision, approval or opinion of the Plan Committee, such
determination, decision, approval or opinion of the Plan Committee shall be in
its absolute discretion.

 

22.3                        Any power or discretion which is
conferred on the Plan Committee by these Rules may be exercised by
the Plan Committee in the interests or for the benefit of the Company, and the
Plan Committee is not, in exercising any such power or discretion under any
fiduciary or other obligation to any other person.

 

22.4                        Where the Rules refer to an opinion
or state of mind (however expressed) of a group of persons, including the Plan
Committee, the group of persons will be taken to have that opinion or state of
mind if persons constituting a majority of the group each have that opinion or
state of mind.

 

22.5                        The determination, decision, approval or
opinion of the Plan Committee as to the interpretation, effect or application
of these Rules will be final.

 

22.6                        If, at any time, it is convenient to
convert currencies, including Australian currency to United States currency and
United States currency to Australian currency, the Plan Committee may determine
the exchange rates which are to apply for the purposes of the Plan.

 

22

 

22.7                        The Plan Committee or the Company may take
and rely upon independent professional or expert advice in or in relation to
the exercise of any of their powers or discretions under these Rules. Where the
Plan Committee or the Company does take and rely upon advice, the Plan
Committee, each member of the Plan Committee and the Company are not liable to
either Plan Committee or any Participant for any loss suffered or incurred as a
result of such reliance.

 

22.8                        Any Plan Company may take and rely
upon independent professional or expert advice in or in relation to the
exercise of any of their powers or discretions under these Rules. Where a Plan
Company does take and rely upon advice, the Plan Company is not liable to the
Plan Committee, the Company, the other Plan Company or any Participant for any
loss suffered or incurred as a result of such reliance.

 

22.9                        The Plan Committee or the Company may delegate
any functions and powers under these Rules to any person or persons in its
absolute discretion. In particular, the Plan Committee or the Company may appoint,
and delegate the responsibilities of administration of the Plan to, a
specialist administration service provider or providers. The Plan Companies
must each give effect to any such appointment.

 

23.                            General

 

23.1                        The entitlement of the Participants and
these Rules are subject to the Company’s Constitution, the Listing Rules and
the Corporations Act.

 

23.2                        Notwithstanding any Rule, Plan
Securities may not be issued, assigned or dealt with under the Plan if to
do so would contravene the Corporations Act,
the Listing Rules or any other applicable laws.

 

23

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