Document:

Exhibit 4.3

 

Transition and Shared Services

Agreement

 

CSR Limited

ABN 90 000 001 276

 

and

 

Rinker Group Limited

ABN 53 003 433 118

 

 

Table of contents

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  Definitions and interpretation

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  
	
   

  	
  1.2

  	
  Interpretation

  
	
   

  	
  1.3

  	
  Precedence
  of documents

  
	
   

  	
  1.4

  	
  Beneficial
  interest

  
	
   

  	
   

  	
   

  
	
  2

  	
  Term

  
	
   

  	
   

  	
   

  
	
  3

  	
  Provision of Services

  
	
   

  	
   

  	
   

  
	
  4

  	
  RGL Group’s and
  CSR Group’s obligations

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  RGL Group’s
  responsibilities

  
	
   

  	
  4.2

  	
  CSR Group’s
  responsibilities

  
	
   

  	
   

  	
   

  
	
  5

  	
  Variation of and
  additional Services

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Additional
  Services

  
	
   

  	
  5.2

  	
  Variation request

  
	
   

  	
  5.3

  	
  No
  obligation to vary

  
	
   

  	
  5.4

  	
  Variations
  to IT infrastructure and Service delivery

  
	
   

  	
   

  	
   

  
	
  6

  	
  [This part has been
  deleted]

  
	
   

  	
   

  	
   

  
	
  7

  	
  Sub-contracting

  
	
   

  	
   

  	
   

  
	
  8

  	
  Payment

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Charges

  
	
   

  	
  8.2

  	
  Invoicing
  and payment

  
	
   

  	
  8.3

  	
  Adjustment
  to Charges

  
	
   

  	
  8.4

  	
  Disputed Charges

  
	
   

  	
   

  	
   

  
	
  9

  	
  Dispute Resolution

  
	
   

  	
   

  	
   

  
	
  10

  	
  Confidentiality
  and disclosure of information

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Confidentiality

  
	
   

  	
  10.2

  	
  Permitted
  disclosure

  
	
   

  	
  10.3

  	
  Third
  party disclosure

  
	
   

  	
  10.4

  	
  Return
  or destruction of Confidential Information

  
	
   

  	
  10.5

  	
  No
  obligation to provide Confidential Information

  
	
   

  	
  10.6

  	
  Privacy

  

 

2

 

	
   

  	
  10.7

  	
  Survival of clause

  
	
   

  	
   

  	
   

  
	
  11

  	
  No
  warranties

  
	
   

  	
   

  	
   

  
	
  12

  	
  Limitation of liability

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Limitation
  of liability

  
	
   

  	
  12.2

  	
  Trade Practices Act

  
	
   

  	
  12.3

  	
  Right of recovery
  against a third party

  
	
   

  	
  12.4

  	
  Force Majeure

  
	
   

  	
  12.5

  	
  Insurance

  
	
   

  	
   

  	
   

  
	
  13

  	
  Copyright and CSR Trade Mark
  Licence

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Copyright Licences

  
	
   

  	
  13.2

  	
  Trade
  Mark Licences

  
	
   

  	
   

  	
   

  
	
  14

  	
  Assistance on cessation

  
	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  Principles
  of cessation

  
	
   

  	
  14.2

  	
  Grant of licence

  
	
   

  	
   

  	
   

  
	
  15

  	
  Termination

  
	
   

  	
   

  	
   

  
	
   

  	
  15.1

  	
  Termination
  Events

  
	
   

  	
  15.2

  	
  Effect of Termination Event

  
	
   

  	
  15.3

  	
  Termination for convenience

  
	
   

  	
  15.4

  	
  Termination of a
  Service Schedule

  
	
   

  	
  15.5

  	
  Termination where
  scheme of arrangement or change of control

  
	
   

  	
   

  	
   

  
	
  16

  	
  General

  
	
   

  	
   

  	
   

  
	
   

  	
  16.1

  	
  Notices

  
	
   

  	
  16.2

  	
  Governing law and
  jurisdiction

  
	
   

  	
  16.3

  	
  Further
  assurances

  
	
   

  	
  16.4

  	
  Variation

  
	
   

  	
  16.5

  	
  Merger

  
	
   

  	
  16.6

  	
  Assignment

  
	
   

  	
  16.7

  	
  Consents

  
	
   

  	
  16.8

  	
  Waivers

  
	
   

  	
  16.9

  	
  Costs and expenses

  
	
   

  	
  16.10

  	
  No representation or
  reliance

  
	
   

  	
  16.11

  	
  Entire Agreement

  
	
   

  	
  16.12

  	
  Cumulative rights

  
	
   

  	
  16.13

  	
  Prohibition and
  enforceability

  
	
   

  	
  16.14

  	
  To the extent not
  excluded by law

  
	
   

  	
   

  	
   

  
	
  17

  	
  GST

  
	
   

  	
   

  	
   

  
	
  Schedule 1 –
  Agreed Service Schedule

  

 

3

 

	
  1

  	
  CSR BSC:
  Processing of AP invoices for RGL

  
	
   

  	
   

  
	
  2

  	
  CSR BSC:
  Gateway Transmissions to Westpac

  
	
   

  	
   

  
	
  3

  	
  CSR BSC: Leaseplan
  administration

  
	
   

  	
   

  
	
  4

  	
  CSR HR: BSC CHRIS system

  
	
   

  	
   

  
	
  5

  	
  CSR HR:
  Transitional support services

  
	
   

  	
   

  
	
  6

  	
  CSR HR: Share and Option
  Plans

  
	
   

  	
   

  
	
  7

  	
  CSR HR: Vehicle
  Administration

  
	
   

  	
   

  
	
  8

  	
  CSR HR: CHRIS
  system – Workers’ Compensation

  
	
   

  	
   

  
	
  9

  	
  CSR
  Workers Compensation: administration assistance Yarraville.

  
	
   

  	
   

  
	
  10

  	
  CSR
  Workers Compensation:  Claims Advisor
  Queensland

  
	
   

  	
   

  
	
  11

  	
  CSR
  Procurement: Telstra Contract Negotiations

  
	
   

  	
   

  
	
  12

  	
  CSR
  FRG: Transitional accounting and reporting assistance

  
	
   

  	
   

  
	
  13

  	
  CSR
  Taxation: Cross training in tax processes

  
	
   

  	
   

  
	
  14

  	
  CSR Treasury: Treasury
  services

  
	
   

  	
   

  
	
  15

  	
  CSR Treasury:
  Vehicle Finance support

  
	
   

  	
   

  
	
  16

  	
  CSR Strategy: Advice

  
	
   

  	
   

  
	
  17

  	
  CSR
  Property: Rent 9 Help Street Chatswood

  
	
   

  	
   

  
	
  18

  	
  Corporate functions other

  
	
   

  	
   

  
	
  19

  	
  CSR BIS: Tier 1 Help Desk

  
	
   

  	
   

  
	
  20

  	
  CSR BIS: PC and Desktop
  Support

  
	
   

  	
   

  
	
  21

  	
  CSR BIS: NT Server Support

  

 

4

 

	
  22

  	
  CSR BIS: Email

  
	
   

  	
   

  
	
  23

  	
  CSR BIS: Wide Area
  Network Support

  
	
   

  	
   

  
	
  24

  	
  CSR BIS: E-Commerce

  
	
   

  	
   

  
	
  25

  	
  CSR BIS: Voice Services

  
	
   

  	
   

  
	
  26

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

  
	
   

  	
   

  
	
  27

  	
  CSR BIS:
  Miscellaneous Applications Support

  
	
   

  	
   

  
	
  28

  	
  CSR BIS: Miscellaneous
  Support

  
	
   

  	
   

  
	
  Schedule 2 –
  Agreed Service Schedule

  

 

5

 

This transition and shared services agreement

 

is made on
March 27, 2003 between the following parties:

 

1                                         CSR Limited ABN 90 000 001 276

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

 

2                                         Rinker Group Limited ABN 53 003 433 118

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

 

Recitals

 

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

 

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

 

C.                                     The CSR Group and the RGL Group
have agreed

 

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

 

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

 

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

 

The parties agree

 

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

 

1                                         Definitions and interpretation

 

1.1                              Definitions

 

In this Agreement the following terms have
the following meanings:

 

Agreement means
this agreement including all Service Schedules.

 

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

 

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

 

Claim has the
meaning given in the Demerger Deed.

 

6

 

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

 

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

 

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

 

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

 

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

 

defaulting Third Party service provider is defined in clause 12.3.

 

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

 

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

 

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

 

Excluded Information means information:

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.2                               Interpretation

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.3                               Precedence of documents

 

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

 

1.4                               Beneficial interest

 

(a)                                  CSR and RGL acknowledge and agree that:

 

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

 

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

 

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

 

10

 

Group Member;

 

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

 

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

 

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

 

2                                         Term

 

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

 

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

 

3                                         Provision of Services

 

(a)                                  With effect from the Commencement Date, each Supplier will supply,
or procure the supply of, the Services for the Initial Period (and for the
Extension Period if applicable pursuant to clause 2(b)) to the relevant
Recipient in accordance with this Agreement and each Service’s specific Service
Schedule.

 

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

 

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

 

11

 

that:

 

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

 

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

 

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

 

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

 

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

 

4                                         RGL Group’s and CSR Group’s obligations

 

4.1                               RGL Group’s responsibilities

 

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

 

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

 

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

 

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

 

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

 

4.2                               CSR Group’s responsibilities

 

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

 

12

 

available, as
reasonably requested by the Party, necessary information and personnel.

 

(b)                                 CSR must ensure that each CSR Group Member

 

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

 

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

 

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

 

5                                         Variation of and additional Services

 

5.1                               Additional Services

 

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

 

5.2                               Variation request

 

Any Party may request a Variation to the
Services.

 

5.3                               No obligation to vary

 

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

 

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

 

5.4                               Variations to IT
infrastructure and Service delivery

 

If:

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

6                                         [This part has been deleted]

 

7                                         Sub-contracting

 

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

 

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

 

8                                         Payment

 

8.1                               Charges

 

Unless
otherwise agreed by the relevant Supplier and Recipient:

 

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

 

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

 

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

 

8.2                              Invoicing and payment

 

Unless otherwise specified in a Service
Schedule:

 

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

 

14

 

substantiating evidence supporting, the
Charges detailed in the invoice; and

 

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

 

8.3                               Adjustment to Charges

 

Unless
otherwise specified in a Service Schedule:

 

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

 

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

 

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

 

8.4                               Disputed Charges

 

(a)                                  A Party may withhold payment of any Charge which is invoiced to it
and which it disputes in good faith. However, the failure by a Party to
withhold such payment does not prejudice the right of the Party to dispute the
Charge.

 

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

 

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

 

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

 

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

 

15

 

9                                         Dispute
Resolution

 

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

 

10                                  Confidentiality and disclosure of information

 

10.1                        Confidentiality

 

Each Party must:

 

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

 

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

 

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

 

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

 

10.2                        Permitted disclosure

 

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

 

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

 

(b)                                 if required to by:

 

(1)                                  law;

 

(2)                                  a Government Agency; or

 

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

 

16

 

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

 

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

 

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

 

10.3                        Third party disclosure

 

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

 

10.4                        Return or destruction of
Confidential Information

 

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

 

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

 

(2)                                  certify by a statutory declaration made by a senior executive or a
director of the Party that the items referred to in clause 10.4(a)(1) have been
destroyed or erased.

 

(b)                                 The return of any of the Confidential Information, or the return,
destruction or erasure of the items referred to in clause 10.4(a)(1), does not
relieve the Party that received or otherwise obtained such Confidential
Information from any of its obligations under this Agreement.

 

10.5                        No obligation to provide
Confidential Information

 

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

 

17

 

10.6                        Privacy

 

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

 

10.7                        Survival of clause

 

Clause 10 will survive the termination of this
Agreement.

 

11                                  No warranties

 

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

 

12                                  Limitation of liability

 

12.1                        Limitation of liability

 

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

 

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

 

(c)                                  A Party is not liable for any:

 

(1)                                  loss of revenues;

 

(2)                                  loss of reputation;

 

(3)                                  loss of profits;

 

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

 

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

 

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

 

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

 

18

 

Party or its employees or agents contribute
to the loss or damage.

 

12.2                        Trade Practices Act

 

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

 

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

 

(A)                              replacing the goods or supplying equivalent goods;

 

(B)                                repairing the goods;

 

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

 

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

 

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

 

(A)                              supplying the services again; and

 

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

 

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

 

12.3                        Right of recovery against a third
party

 

(a)                                  Where:

 

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

 

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

 

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

 

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

 

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

 

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

 

19

 

and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12.4                        Force Majeure

 

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

 

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

 

(1)                                  the event;

 

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

 

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

 

20

 

performed; and

 

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

 

(c)                                  If the Force Majeure Event continues or is reasonably likely to
continue for more than 90 days and the affected Parties have during that period
been unable to agree upon a course of action to work around the Force Majeure
Event, then any affected Party may by written notice to the other Party,
terminate the affected Service or Service Schedules (as is applicable).

 

12.5                        Insurance

 

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

 

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

 

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

 

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

 

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

 

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

 

13                                  Copyright and CSR Trade Mark Licence

 

13.1                        Copyright Licences

 

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

 

(b)                                 In consideration of the CSR Group Members agreeing to grant the
licence to the RGL Group Members in clause 13.1(a), on and

 

21

 

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

 

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

 

13.2                        Trade Mark Licences

 

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

 

(b)                                 RGL agrees that:

 

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

 

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

 

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

 

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

 

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

 

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

 

22

 

under any other legislation, in respect of
the CSR Trade Mark.

 

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

 

14                                  Assistance on cessation

 

14.1                        Principles of cessation

 

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

 

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

 

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

 

14.2                        Grant of licence

 

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

 

15                                  Termination

 

15.1                        Termination Events

 

It is a Termination Event if:

 

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

 

(b)                                 a Party suspends payment of its debts generally, is or becomes
unable to pay its debts when they are due, states that it is unable to pay its

 

23

 

debts when they are due or is or becomes
unable to pay its debts within the meaning of the Corporations Act 2001;

 

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

 

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

 

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

 

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

 

15.2                        Effect of Termination Event

 

If a Termination Event occurs:

 

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

 

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

 

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

 

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

 

15.3                        Termination for convenience

 

(a)                                  Subject to clause 15.3(b):

 

(1)                                  a Recipient may terminate a Service or a Service Schedule in whole
or in part (unless the Service Schedule expressly provides otherwise) for

 

24

 

convenience upon not less than 60 days (or
such other period expressly provided in the Service Schedule) prior written
notice to the relevant Supplier; and

 

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

 

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

 

15.4                        Termination of a Service
Schedule

 

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

 

15.5                        Termination where scheme of
arrangement or change of control

 

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

 

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

 

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

 

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

 

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

 

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

 

16                                  General

 

16.1                        Notices

 

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

 

25

 

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

 

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

 

Address:                                               CSR Limited

Level 1, 9 Help Street,

Chatswood NSW 2067

 

Attention:                                         Chief Financial Officer

 

Facsimile:                                            +61 2 9235 8055; and

 

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

 

Address:                                               Rinker Group Limited

Level 1, 9 Help Street,

Chatswood NSW 2067

 

Attention:                                         Company Secretary

 

Facsimile:                                            +61 2 9412 6666,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16.2                        Governing law and jurisdiction

 

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

 

26

 

Australia.

 

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

 

16.3                        Further assurances

 

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

 

16.4                        Variation

 

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

 

16.5                        Merger

 

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

 

16.6                        Assignment

 

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

 

16.7                        Consents

 

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

 

16.8                        Waivers

 

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

 

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

 

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

 

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

 

does not result in a waiver of that right,
power, authority,

 

27

 

discretion or remedy.

 

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

 

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

 

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

 

16.9                        Costs and expenses

 

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

 

(b)                                 RGL will:

 

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

 

(2)                                  indemnify CSR against any liability arising from failure to comply
with clause 16.9(b)(1).

 

16.10                 No representation or reliance

 

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

 

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

 

16.11                 Entire Agreement

 

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

 

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

 

28

 

expressly set out or incorporated by
reference in this Agreement.

 

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

 

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

 

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

 

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

 

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

 

(3)                                  negligence; and

 

(4)                                  section 52 of the Trade Practices Act.

 

(d)                                 Nothing in clause 16.11(c) applies to any right, power or claim
under or arising from the executed version of this Agreement. In entering into
this Agreement no Party has relied upon anything referred to in clause 16.11(c)(1),
(2) or (4).

 

16.12                 Cumulative rights

 

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

 

16.13                 Prohibition and enforceability

 

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

 

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

 

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

 

29

 

16.14                 To the extent not excluded by law

 

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

 

17                                  GST

 

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

 

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

 

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

 

 

Executed as an agreement:

 

Signed for CSR Limited

by its representative in the presence of:

 

	
  /s/ Graham Hughes

  	
   

  	
  /s/ Warren Saxelby

  
	
  Witness

  	
  Representative

  
	
   

  
	
  Graham Hughes

  	
   

  	
  Warren Saxelby

  
	
  Name (please print)

  	
  Name (please print)

  
				

 

30

 

 

Signed for Rinker Group Limited

by its representative in the presence of:

 

	
  /s/ Graham Hughes

  	
   

  	
  /s/ Thomas Gene Burmeister

  
	
  Witness

  	
  Representative

  
	
   

  
	
  Graham Hughes

  	
   

  	
  Thomas Gene Burmeister

  
	
  Name (please print)

  	
  Name (please print)

  
				

 

31

 

Schedule 1 – Agreed
Service Schedule

 

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

 

32

 

1                                         CSR BSC: Processing of
AP invoices for RGL

 

Service to be provided

 

Data Capture for Accounts Payable Invoices

 

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

 

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

 

•                  Sorting all invoices into appropriate IXOS queue

 

•                  Imaging all invoices to appropriate IXOS queue

 

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

 

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

 

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

 

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

 

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

 

Term

 

Initial Period 01/04/03 – 30/09/03

 

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

 

Charges

 

Fees will be calculated on the following
basis:

 

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

 

•                  $0.50 per invoices returned to suppliers

 

33

 

RGL Resources

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

34

 

2                                        CSR BSC: Gateway
Transmissions to Westpac

 

Service to be provided

 

Biztalk/Gateway Transmissions to Westpac

 

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

 

Term

 

Initial Period 01/04/03 – 30/06/03

 

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

 

Charges

 

Fees will be calculated on the following
basis:

 

•                  $2000 per month

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

35

 

3                                        CSR BSC: Leaseplan
administration

 

Service to be provided

 

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

 

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

 

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

 

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

 

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

 

Term

 

Initial Period: 01/04/03 – 30/06/03

 

Extension Period: 01/07/03 – 30/09/03

 

Charges

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

36

 

4                                        CSR HR: BSC CHRIS system

 

Service to be provided

 

CHRIS HR / Payroll System

 

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

 

•                  Maintenance and routine development of the CHRIS software.

•                  Maintenance of CHRIS system security.

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

•                  Electronic data reporting to state WorkCover authorities.

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

 

Term

 

Initial
Period 01/04/03 – 31/03/04

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

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

 

Charges

 

Fees will be calculated on the following
basis:

 

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

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

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

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

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

•                  $20.00 per annum per WebChris user account

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

37

 

service delivery on behalf of RGL.

 

38

 

5                                        CSR HR: Transitional
support services

 

Service to be provided

 

HR Support Services 

 

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

 

•                  Salary Review process Management

 

•                  STI Scheme Management

 

•                  Statutory Reporting

 

•                  Expatriate and Secondee Administration

 

Term

 

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

 

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

 

Charges

 

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

 

Contract Managers

 

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

 

39

 

6                                        CSR HR: Share and Option Plans

 

Service to be provided

 

Share and Option Plans

 

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

 

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

 

•                  Communications to
share and option holders when necessary.

 

•                  Disposal and
transfer of shares/options.

 

•                  Complying with legislative
requirements.

 

•                  Dividend
distributions.

 

•                  Liaising with Share
Registry.

 

•                  Responding to
general enquiries.

 

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

 

Training in
processes:

 

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

 

Term

 

Initial
Period 01/04/03 – 31/03/04

 

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

 

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

 

Charges

 

Fees will be
calculated on the following basis:

 

$ 5,500.00 per month

 

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

 

Reviews/Meetings

 

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

 

40

 

Contract Managers

 

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

 

41

 

7                                        CSR HR: Vehicle Administration

 

Service to be provided

 

Vehicle
administration – RMH owned and Novated 

 

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

 

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

 

•                  Process sales to employees and sale of surplus vehicles

 

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

 

•                  Process infringements and manage those that go to court

 

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

 

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

 

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

 

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

 

•                  Maintain Vehicle Management website.

 

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

 

Training in
processes:

 

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

 

Term

 

Initial Period
01/04/03 – 30/6/03

 

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

 

42

 

Charges

 

Fees will be calculated on the following
basis:

 

$7,500 per month

 

RGL Resources

 

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

 

Contract Managers

 

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

 

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

 

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

 

43

 

8                                        CSR HR: CHRIS system –
Workers’ Compensation

 

Service to be provided

 

CHRIS Workers’ Compensation System

 

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

 

•                  Maintenance and routine development of the CHRIS software.

 

•                  Maintenance of CHRIS system security.

 

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

 

•                  Electronic data reporting to state Workcover authorities.

 

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

 

Term

 

Initial Period
01/04/03 – 31/03/04

 

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

 

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

 

Charges

 

Fees will be
calculated on the following basis:

 

$ 6,500.00 per month.

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

Peter Moss /
Jon Hanlon will manage the CHRIS Workers’ Compensation service

 

44

 

provided by
CSR. Fleur Dooley / Helen Jones will be responsible for ordering and reviewing
service delivery on behalf of RGL.

 

9                                        CSR Workers
Compensation: administration assistance Yarraville.

 

Service to be provided

 

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

 

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

 

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

 

Term

 

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

 

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

 

Charges

 

Fees will be calculated on the following
basis:

 

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

 

RGL resources

 

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

 

Contract Managers

 

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

 

45

 

10                                 CSR Workers
Compensation:  Claims Advisor Queensland

 

Service to be provided

 

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

 

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

 

Term

 

Initial Period: 01/04/03 – ongoing

 

Charges

 

Fees will be calculated on the following
basis:

 

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

 

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

 

Review meetings

 

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

 

Contract Managers

 

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

 

46

 

11                                  CSR Procurement:
Telstra Contract Negotiations

 

Service to be provided

 

Telstra
Demerger Contract Negotiations and Contract Drafting 

 

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

 

•                  Provide commercial negotiation leadership.

 

•                  Facilitate all contract meetings with Telstra.

 

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

 

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

 

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

 

Term

 

Initial Period 01/04/03 – 30/6/03

 

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

 

Charges

 

Fees will be calculated on the following
basis:

 

•                  $100 per hour

 

RGL Resources

 

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

 

Reviews/Meetings

 

Meetings will
be held between contract managers when required.

 

Contract Managers

 

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

 

47

 

Davis (RGL).

 

48

 

12                                 CSR FRG: Transitional
accounting and reporting assistance

 

Service to be provided

 

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

 

1.               Produce
Yem03 RGL statutory Australian accounts

2.               Produce
Yem03 RGL 20F

3.               Attendance
and participation at Yem03 BAC

4.               Assistance
with establishing GRS on Rinker computer systems

5.               Produce
Yem03 BAC papers

6.               Provide
requested historical files (hardcopy and softcopy)

7.               Accounting
standards and international harmonization assistance.

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

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

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

11.         Assistance
with RGL Corporate Accounting set up and processes

12.         Assistance
with TEASME

13.         Miscellaneous
reporting requirements set up and processes

14.         Assistance
with compilation of Bureau of Statistics returns

15.         Assistance
with ASX/ASIC liaison

16.         Assistance
with compilation of BAS statements

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

18.         Assistance
with PSA filings

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

20.         Management
Reporting advice, set up and processes

 

Term

 

Initial Period 01/04/03 – 31/03/04

 

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

 

49

 

Charges

 

Fees will be calculated on the following
basis:

 

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

 

•                  Out of pocket expenses as agreed by the contract managers

 

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

 

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

 

RGL Resources

 

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

 

Contract Managers

 

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

 

50

 

13                                 CSR Taxation: Cross
training in tax processes

 

Service to be provided

 

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

 

Term

 

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

 

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

 

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

 

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

 

Charges

 

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

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

CSR:                    Peter McGuigan

 

51

 

RGL:                    Kamlesh Davé

 

52

 

14                                 CSR Treasury: Treasury
services

 

Service to be provided

 

Completion of initial implementation of Integra T system for RGL

 

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

 

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

 

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

 

Consulting on Integra T system use

 

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

 

Consulting on Treasury matters

 

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

 

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

 

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

 

Assistance in establishing Treasury Policies for RGL

 

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

 

53

 

Term

 

Initial Period
01/04/03 – 30/09/03

 

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

 

Charges

 

Fees will be calculated on the following
basis:

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

54

 

15                                 CSR Treasury: Vehicle
Finance support

 

Service to be provided

 

Accounting
administration

 

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

 

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

 

•                   Organise payment to Asset Capital for administration work

 

Cashflows

 

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

 

Term

 

Initial Period 01/04/03 – 30/6/03

 

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

 

Charges

 

Fees will be calculated on the following
basis:

 

•                  $500 per month for CSR Treasury administration services

 

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

 

Contract Managers

 

CSR: Grant
Helm

 

RGL: Michael
Larkin

 

55

 

16                                 CSR Strategy: Advice

 

Service to be provided

 

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

 

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

 

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

 

Term

 

Initial Period: 1/4/03 – 31/3/04

 

Charges

 

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

 

Reviews/Meetings (Optional)

 

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

 

Contract Managers

 

CSR: Tony Carlton

 

RGL: David Berger

 

56

 

17                                 CSR Property: Rent 9
Help Street Chatswood

 

Service to be provided

 

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

 

Term

 

Initial Period 01/04/03 – 1/05/03

 

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

 

Charges

 

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

 

	
   

  	
   

  	
   

  	
   

  	
  Per month:

  	
   

  
	
  Rental

  	
   

  	
  $310 per sqm per annum

  	
   

  	
  15,500

  	
   

  
	
  Outgoings

  	
   

  	
  $72 per sqm per annum

  	
   

  	
  3,600

  	
   

  
	
  Carparking:
  20 spaces

  	
   

  	
  $218 per space per month

  	
   

  	
  4,360

  	
   

  
	
  Building
  services

  	
   

  	
  $83 per sqm per annum

  	
   

  	
  4,150

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total rental per month

  	
   

  	
   

  	
   

  	
  27,610

  	
   

  

 

Contract Managers

 

CSR: Andrew
MacKenzie

 

RGL: Trevor
Schmitt

 

57

 

18                                 Corporate functions other

 

Service to be provided

 

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

 

Term

 

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

 

Charges

 

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

 

Contract Managers

 

To be appointed for each corporate
function, but initially:

 

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

 

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

 

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

 

58

 

19                                 CSR BIS: Tier 1 Help Desk

 

Service to be provided

 

Tier I Information Technology Help Desk

 

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

 

•                                         Tier I Help Desk Call Management

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

•                                         Level One call resolution

•                                         End user follow up until closure of case.

 

Term

 

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

Extension
Period:  November 2003 – January 1, 2004

 

Charges

 

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

 

	
  Team

  	
   

  	
  YEM
  04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Helpdesk - CSR rechg

  recharge price $25.0

  	
   

  	
  $

  	
  85,500

  	
   

  	
  Vic

  	
   

  	
  $

  	
  5,400

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  7,700

  	
   

  	
  $

  	
  7,700

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  3,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  3,300

  	
   

  	
  $

  	
  3,300

  	
   

  	
  $

  	
  3,300

  	
   

  	
  $

  	
  3,300

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
  $

  	
  700

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  3,000

  	
   

  
																												

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

Ole Elsaesser
or Assignee will manage the services provided by CSR.  Bill

 

59

 

Gearhart and
Neville Hansen will be responsible for ordering and reviewing service delivery
on behalf of RGL.

 

60

 

20                                 CSR BIS: PC and Desktop Support

 

Service to be provided

 

PC and Desktop Support Services 

 

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

 

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

 

Term

 

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

Extension Period:  November 2003 – January 1, 2004

 

Charges

 

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

 

Desktop PC 
$85 per mth

Laptop PC 
$125 per mth

Winterm 
$52.50 per mth

Networked printer  $37.50 per mth

 

	
   

  	
   

  	
  YEM
  04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Desktop - CSR rechg

  	
   

  	
  $

  	
  345,370

  	
   

  	
  Vic

  	
   

  	
  $

  	
  19,993

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  29,298

  	
   

  	
  $

  	
  29,298

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  10,108

  	
   

  	
  $

  	
  10,108

  	
   

  	
  $

  	
  10,108

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  13,665

  	
   

  	
  $

  	
  13,665

  	
   

  	
  $

  	
  13,665

  	
   

  	
  $

  	
  13,665

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
  $

  	
  2,755

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  25,850

  	
   

  	
  $

  	
  12,925

  	
   

  
																												

 

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

 

61

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

62

 

21                                 CSR BIS:  NT Server Support

 

Service to be provided

 

NT Server Support 

 

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

 

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

 

Term

 

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

Extension Period:  November 2003 – January 1, 2004

 

Charges

 

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

 

	
   

  	
   

  	
  YEM
  04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NT Services - CSR rechg

  recharge price $62.7

  	
   

  	
  $

  	
  214,434

  	
   

  	
  Vic

  	
   

  	
  $

  	
  13,543

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  19,312

  	
   

  	
  $

  	
  19,312

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  7,524

  	
   

  	
  $

  	
  7,524

  	
   

  	
  $

  	
  7,524

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  8,276

  	
   

  	
  $

  	
  8,276

  	
   

  	
  $

  	
  8,276

  	
   

  	
  $

  	
  8,276

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
  $

  	
  1,756

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  15,048

  	
   

  	
  $

  	
  7,524

  	
   

  
																												

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

Ole Elsaesser or Assignee will manage the
services provided by CSR.  Bill

 

63

 

Gearhart and Neville Hansen will be
responsible for ordering and reviewing service delivery on behalf of RGL.

 

22                                 CSR BIS: Email

 

Service to be provided

 

Email Services 

 

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

 

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

 

Term

 

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

 

Extension Period:  November 2003 – January 1, 2004

 

Charges

 

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

 

	
   

  	
   

  	
  YEM
  04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Email - CSR rechg

  recharge price $26.0

  	
   

  	
  $

  	
  88,920

  	
   

  	
  Vic

  	
   

  	
  $

  	
  5,616

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  8,008

  	
   

  	
  $

  	
  8,008

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT & SA

  	
   

  	
  $

  	
  3,120

  	
   

  	
  $

  	
  3,120

  	
   

  	
  $

  	
  3,120

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  3,432

  	
   

  	
  $

  	
  3,432

  	
   

  	
  $

  	
  3,432

  	
   

  	
  $

  	
  3,432

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT & Tas

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
  $

  	
  728

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  6,240

  	
   

  	
  $

  	
  3,120

  	
   

  
																												

 

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

 

Reviews/Meetings

 

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

 

64

 

Contract Managers

 

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

 

65

 

23                                 CSR BIS: Wide Area Network
Support

 

Service to be provided

 

Wide Area Network (WAN) Support Services 

 

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

 

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

 

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

 

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

 

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

 

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

 

•          Telstra site costs for connection to the CSR WAN

 

•          Telstra site costs for connection to TPIPs

 

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

 

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

 

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

 

•          the Telstra DDS account

 

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

 

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

 

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

 

•          the Marconi MDX maintenance contract

 

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

 

66

 

•          dialconnect ports / links

 

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

 

•          the cost of the link to Taiwan

 

Term

 

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

 

Extension Period:  November 2003 – January 1, 2004

 

Charges

 

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

 

	
   

  	
   

  	
  YEM
  04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  	
  Nov

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WAN/LAN - CSR rechg

  	
   

  	
  $

  	
  101,838

  	
   

  	
  Vic
  CSR

  	
   

  	
  $

  	
  3,280

  	
   

  	
  $

  	
  3,280

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld
  CSR

  	
   

  	
  $

  	
  6,489

  	
   

  	
  $

  	
  6,489

  	
   

  	
  $

  	
  6,489

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT
  & SA CSR

  	
   

  	
  $

  	
  2,250

  	
   

  	
  $

  	
  2,250

  	
   

  	
  $

  	
  2,250

  	
   

  	
  $

  	
  2,250

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA
  CSR

  	
   

  	
  $

  	
  4,111

  	
   

  	
  $

  	
  4,111

  	
   

  	
  $

  	
  4,111

  	
   

  	
  $

  	
  4,111

  	
   

  	
  $

  	
  4,111

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT
  & Tas CSR

  	
   

  	
  $

  	
  837

  	
   

  	
  $

  	
  837

  	
   

  	
  $

  	
  837

  	
   

  	
  $

  	
  837

  	
   

  	
  $

  	
  837

  	
   

  	
  $

  	
  837

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW
  CSR

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  	
  $

  	
  5,155

  	
   

  
																															

 

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

 

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

 

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

 

	
  TPIPs project people costs

  	
   

  	
  $

  	
  80,000

  	
   

  

 

Reviews/Meetings

 

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

 

67

 

Contract Managers

 

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

 

68

 

24                                 CSR BIS: E-Commerce

 

Service to be provided

 

E-Commerce

 

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

 

•                  Employee Internet Access and Filtering

 

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

 

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

 

Term

 

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

 

Extension Period:  November 2003 – January 1, 2004

 

Charges

 

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

 

	
  Team

  	
   

  	
  YEM
  04 Cost

  	
   

  	
   

  	
   

  	
  Apr

  	
   

  	
  May

  	
   

  	
  Jun

  	
   

  	
  Jul

  	
   

  	
  Aug

  	
   

  	
  Sep

  	
   

  	
  Oct

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Intranet - CSR rechg

  recharge price $8.0

  	
   

  	
  $

  	
  27,360

  	
   

  	
  Vic

  	
   

  	
  $

  	
  1,728

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Qld

  	
   

  	
  $

  	
  2,464

  	
   

  	
  $

  	
  2,464

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NT
  & SA

  	
   

  	
  $

  	
  960

  	
   

  	
  $

  	
  960

  	
   

  	
  $

  	
  960

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  WA

  	
   

  	
  $

  	
  1,056

  	
   

  	
  $

  	
  1,056

  	
   

  	
  $

  	
  1,056

  	
   

  	
  $

  	
  1,056

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ACT
  & Tas 

  	
   

  	
  $

  	
  224

  	
   

  	
  $

  	
  224

  	
   

  	
  $

  	
  224

  	
   

  	
  $

  	
  224

  	
   

  	
  $

  	
  224

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NSW
  

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  960

  	
   

  
																												

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

Ole Elsaesser or Assignee will manage the
services provided by CSR.  Bill

 

69

 

Gearhart and Neville Hansen will be
responsible for ordering and reviewing service delivery on behalf of RGL.

 

25                                 CSR BIS: Voice Services

 

Service to be provided

 

Voice Services 

 

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

 

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

 

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

 

Term

 

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

 

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

 

Charges

 

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

 

Reviews/Meetings

 

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

 

70

 

Contract Managers

 

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

 

71

 

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

 

Service to be provided

 

SAP Support 

 

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

 

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

 

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

 

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

 

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

 

Term

 

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

 

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

 

Charges

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

Ole Elsaesser
or Assignee will manage the services provided by CSR.  Bill Gearhart and Brad Tallon will be responsible for ordering
and reviewing

 

72

 

service delivery
on behalf of RGL.

 

73

 

27                                 CSR BIS:
Miscellaneous Applications Support

 

Service to be provided

 

Miscellaneous Software Support 

 

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

 

•                                          Lotus Notes software support

 

•                                          Promix Asia data centre support

 

•                                          Promix Asia applications support (25% 1 FTE)

 

•                                          CHRIS data centre support

 

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

 

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

 

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

 

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

 

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

 

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

 

Term

 

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

 

Extension Period:  September 30, 2004

 

74

 

Charges

 

Fees will be calculated on the following
basis:

 

	
   

  	
   

  	
  Monthly Rate

  	
   

  	
   

  
	
  Lotus support - S Stam

  	
   

  	
  $

  	
  8,400

  	
   

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

  
	
  Promix Asia DC support

  	
   

  	
  $

  	
  3,500

  	
   

  	
  Includes Hardware, People and Licensing

  
	
  CHRIS data centre

  	
   

  	
  $

  	
  4,600

  	
   

  	
  Supports # of Users and Hardware

  
	
  Promix app supp 25% 1 FTE

  	
   

  	
  $

  	
  2,083

  	
   

  	
  Applications Support

  
	
  VAX - Command

  	
   

  	
  N/C

  	
   

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

  

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

75

 

28                                 CSR BIS: Miscellaneous Support

 

Service to be provided

 

Miscellaneous support 

 

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

 

Term

 

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

 

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

 

Charges

 

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

 

Reviews/Meetings

 

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

 

Contract Managers

 

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

 

76

 

Schedule 2 – Agreed
Service Schedule

 

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

 

 

77Exhibit 4.4.1.1

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is entered into as of April 1, 2003 by
and between Rinker Materials Corporation, a Georgia corporation (the “Company”), and David
V. Clarke  (the “Executive”).

 

WHEREAS, the parties wish to provide for the continued employment of
the Executive by the Company on the terms and conditions herein set forth; and

 

WHEREAS, the parties wish to formalize their present understanding of
the terms of employment of the Executive and provide a base upon which any
future amendments to their relationship can be developed;

 

NOW THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, the parties hereby agree as follows:

 

1.                                       Term of Employment.  The Company hereby agrees to continue the
Executive in its employ and the Executive hereby agrees to remain in the employ
of the Company for a period commencing on April 1, 2003 (the “Effective Date”) and
ending on the third anniversary of such date (the “Employment Period”).  The Employment Period will automatically be
extended on the first anniversary of the Effective Date (and on each
anniversary thereafter) for an additional one-year period unless either party
to this Agreement gives the other party hereto written notice of its intention
not to extend the Employment Period at least 180 days prior to the applicable
anniversary date.

 

2.                                       Position and Duties.  (a) During the Employment Period, the
Executive shall be employed as the President and Chief Executive Officer of the
Company and shall report directly to the Board of Directors.   As requested by Rinker Group Limited
(“Rinker”), the Executive shall also be seconded to Rinker as is necessary to
perform faithfully and efficiently the duties, obligations and responsibilities
as the Managing Director and Chief Executive Officer of Rinker.  The Executive shall report directly to Board
of  Directors of Rinker in
connection  with the Executive’s duties
as Managing Director and Chief Executive Officer of Rinker.  For purposes of this Agreement, the
Executive’s duties, obligations and responsibilities to the Company under this
Agreement shall include the duties, obligations and responsibilities of
Executive to Rinker.  (b)  The Executive’s duties and responsibilities
to the Company shall at all times be consistent with his position as an
executive officer of the Company. 
During the Employment Period, the Executive shall be elected or
appointed as a member of the Board of Directors of Rinker Materials
Corporation.  During the Employment
Period, and excluding any periods of vacation and other leave to which the
Executive is entitled, the Executive agrees to devote all of his time

 

1

 

and attention during normal
business hours to the business and affairs of the Company and to use his
reasonable best efforts to perform faithfully and efficiently the duties and
responsibilities assigned to him hereunder. 
During the Employment Period it shall not be a violation of this
Agreement for the Executive to serve on corporate, civic or charitable boards
or committees, deliver lectures, fulfill speaking engagements or teach at
educational institutions and devote reasonable amounts of time to the management
of his and his family’s personal investments and affairs, so long as such
activities do not significantly interfere with the performance of the
Executive’s responsibilities as an employee of the Company in accordance with
this Agreement.  It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Executive prior to the Effective Date, the reinstatement or
continued conduct of such activities (or the reinstatement or conduct of
activities similar in nature and scope thereto) subsequent to the Effective
Date shall not thereafter be deemed to interfere with the performance of the
Executive’s responsibilities to the Company. 
The Executive’s principal place of employment shall be the executive
offices of the Company in West Palm Beach, Florida or any location less than 30
miles from such location, although the Executive understands and agrees that he
may be required to travel from time to time for business purposes including in
connection with the secondment to Rinker.

 

3.                                       Compensation During the Employment Period.  During the Employment Period, the Executive
shall be compensated as follows:

 

(a)                                  Annual Base Salary.  The Executive shall be paid a base salary (“Annual Base Salary”)
at the rate of $700,000 per annum.  The
Executive’s Annual Base Salary will be paid in accordance with the Company’s
regular payroll practices applicable to its executive officers, as established
from time to time.  The rate of Annual
Base Salary shall be reviewed at least annually and may be increased but not
decreased.

 

(b)                                 Annual Bonus.  (i) In addition to Annual Base Salary, the
Executive shall be eligible to earn, for each fiscal year ending during the
Employment Period, an annual bonus (the “Annual Bonus”) in cash based upon the Company
achieving one or more performance goals and targets set in good faith by the
Board of Directors.  The target amount
for the Annual Bonus for each fiscal year (the “Target Amount”) shall be 65% of the
Executive’s Annual Base Salary, subject to the achievement of the performance
goals and targets for such year.  The
Annual Bonus payable to the Executive for a fiscal year may be greater than the
Target Amount based upon performance in excess of the target or targets set by
the Board of Directors for that year, and may be as low as 0% of the Target
Amount in the case of performance below the target or targets for that
year.  The Annual Bonus paid to the
Executive shall be determined in accordance with criteria set by the Board of
Directors.  Each fiscal year during the
Employment Period, the Company will establish an annual bonus plan in which the
Executive will participate (the “Annual Plan”) and that will provide the
Executive with a bonus opportunity not less than that described above in this
Subsection (b). The Annual Bonus for a given fiscal year shall be paid no
later than the end of the third month of the fiscal year next following the
fiscal year for which the Annual Bonus is awarded.

 

2

 

(ii) The amount of the Annual Bonus for any partial fiscal year that
ends during the Employment Period shall be prorated by multiplying the amount
of the Annual Bonus that would be paid to the Executive for the full fiscal
year by a fraction, the numerator of which shall be the number of days in such
fiscal year occurring during the Employment Period, and the denominator of
which shall be 365.

 

(c)                                  Long Term Incentive Compensation.  During the Employment Period, the Executive
shall be entitled to participate in all incentive compensation plans,
practices, policies, and programs maintained by the Company for its senior
executives at a participation level reflecting the Executive’s position and on
terms and conditions no less favorable than those available to any other peer
executive, including, but not limited to, the Rinker Materials Long Term
Incentive Plans as they may be amended from time to time.

 

(d)                                 Savings and Retirement Plans.  During the Employment Period, the Executive
shall be entitled to participate in all savings and retirement plans,
practices, policies, and programs maintained by the Company as may be in effect
from time to time with respect to other peer executives of the Company.  In addition, subject to the Company’s right
to terminate such plan, during the Employment Period the Rinker Materials
Supplemental Executive Profit Sharing 401(k) Plan (the “SERP”) shall remain
in full force and effect and the Executive shall continue to accrue additional
benefits during the Employment Period under the SERP in accordance with the
terms and conditions thereof. At all times during the Employment Term unless
the SERP is otherwise terminated, the terms and provisions of the SERP shall be
no less favorable to the Executive than the terms and provisions of the SERP in
effect immediately prior to the Effective Date.

 

(e)                                  Welfare Benefit Plans.  During the Employment Period, the Executive
and/or the Executive’s family, as the case may be, shall be entitled to
participate in and shall receive all benefits under all welfare benefit plans,
practices, policies, and programs maintained by the Company (including, without
limitation, medical, annual executive physical, prescription, dental, vision,
short-term disability, long-term disability, group life, and accidental death
and dismemberment plans and programs) as may be in effect from time to time
with respect to other peer executives of the Company.

 

(f)                                    Fringe Benefits.  During the Employment Period, the Executive
shall be entitled to all fringe benefits and other perquisites, including, but
not limited to, cellular telephone and related expenses and a lap top computer,
commensurate with those available to other peer executives of the Company in
accordance with the plans, practices, programs, and policies of the Company as
may be in effect from time to time.

 

(g)                                 Car Allowance.  During the Employment Period, the Company
will pay to the Executive a car allowance of $1,456 per month during the first
year of his employment hereunder.  The
amount of this allowance shall increase by 4% per year during subsequent years.

 

3

 

Such allowance may be used for
the costs and expenses associated with the leasing, ownership, use,
maintenance, insurance and repair of the Executive’s car.

 

(h)                                 Club Membership.  During the Employment Period, the Company
will reimburse the Executive up to  an
amount equal to 3/1⁄2% of the
Executive’s Annual Base Salary, but not to exceed $9,086 per year for the cost
and expenses (including initiation fees and annual dues) of social and/or
business clubs. The $9,086 limitation on the amount of this allowance shall
increase by 4% per year during subsequent years.

 

(i)                                     Expenses.  During the Employment Period, the Executive shall be entitled to
receive prompt reimbursement for all reasonable expenses incurred by the
Executive in accordance with the policies, practices, and procedures of the
Company as may be in effect from time to time with respect to other peer
executives of the Company.

 

(j)                                     Office and Support Staff.  During the Employment Period, the Executive
shall be entitled to an office of a size and with furnishings and other
appointments, and to secretarial and other assistance, as is appropriate to the
Executive’s position, but in no event less than those provided to the Executive
by the Company immediately prior to the Effective Date.

 

(k)                                  Vacation.  During the Employment Period, the Executive shall be entitled to
paid vacation in accordance with the policies of the Company as in effect from
time to time with respect to other peer executives of the Company.

 

(l)                                     Tax Preparation.  During the Employment Period, the Company
shall reimburse the Executive for the cost of preparing tax returns filed in
either the United States of America or Australia.  See Section 3(m) for the continuation of this benefit in the
event the Executive relocates to Australia.

 

(m)                               Relocation to Australia.  In the event the Executive relocates his
primary residence to Australia during the one year period commencing on the
Date of Termination (as defined in Section 4(e)) and ending on the first
anniversary thereof (the “Relocation Period”), the Company shall reimburse the
Executive for all reasonable relocation expenses incurred as a result of such
relocation that are customarily provided by the Company to transferred
executives, including, without limitation, (i) two first class airfares from
the United States to Perth, Australia, (ii) the costs incurred in connection
with the sale of the Executive’s primary residence in Florida, including any brokerage
fees for the sale of such residence, (iii) the loss of economic value resulting
from the sale of the Executive’s primary residence, such loss shall not be less
than the difference, if any, between (x) the average of the fair market values
of such residence as determined by three qualified, independent appraisers, and
(y) the amount realized from the sale of such residence (as determined in
accordance with Code section 1001(b)), (iv) the costs of packing and
transporting personal, family and household goods by suitable service
providers, and (v) the cost of replacement electrical equipment (not in excess
of $20,000).   All such amounts shall be
grossed-up for the impact of any taxes levied against the Executive on account
of such 

 

4

 

reimbursements.  In addition to the foregoing, the Company
shall continue to reimburse the Executive for the cost of tax preparation
services described in Subsection (l) incurred during the Relocation
Period.  The $20,000 limitation on the
amount of the electrical equipment allowance shall be increased by 4% per year
with the base period being the calendar quarter beginning October 1, 2003.

 

4.                                       Termination of Employment.  Subject to the provisions of this
Section 4, the Company may terminate the Executive’s employment and the
Executive may resign from his employment for any lawful reason or for no stated
reason.

 

(a)                                  Termination or Resignation in General.   If, during the Employment Period, the
Company terminates the Executive’s employment or the Executive resigns from his
employment, the Company shall pay the Executive the full amount of the
Executive’s Annual Base Salary through the Date of Termination (as defined in
Section 4(e) below) to the extent accrued but not paid, plus a cash
payment (calculated on the basis of the Executive’s rate of Annual Base Salary
then in effect) for all unused paid time off which the Executive may have
accrued as of the Date of Termination. 
In addition, in the sole discretion of the Board of Directors, the
Executive may be paid a pro rata portion of his Annual Bonus (calculated in the
manner described in Section 3(b) (i)) for the fiscal year of the Company
during which such termination or resignation occurs.  Such Salary and accrued paid time off shall be paid to the
Executive within 30 days following the Date of Termination, and such Annual
Bonus, if any, shall be paid at the time contemplated by
Section 3(b)(i).  (The sum of the
amounts described in this Subsection (a) shall hereinafter be referred to
as the “Accrued
Obligations”).

 

(b)                                 Termination Without Cause or Resignation for Good
Reason.  If, during the
Employment Period, the Company terminates the Executive’s employment other than
for Cause or Disability or the Executive resigns from his employment for Good
Reason:

 

(i)                                     the
Company shall pay to the Executive in a lump sum in cash within 30 days
following the Date of Termination the aggregate of the following amounts:

 

(A)                              the
Accrued Obligations payable to the Executive under Section 4(a), except
that the portion of the Accrued Obligations attributable to the Annual Bonus
shall not be in the discretion of the Board of Directors and shall be paid at
the time described in Section 4(b)(i) notwithstanding the timing of
payment set forth in Section 4(a) and assuming for purposes of determining
such bonus the achievement of target performance through the Date of
Termination; and

 

(B)                                a
separate lump sum supplemental retirement benefit equal to the difference
between (1) the aggregate value of the Profit Sharing Contribution Account and
Matching Contribution Account (as defined in the Rinker Materials  Profit Sharing 401(k) Plan or any successor
plan thereto (the “401(k)
Plan”)) and the Company Account (as defined in the SERP) under
the SERP that the Executive would receive if (i) the Executive’s employment

 

5

 

continued at the compensation
level provided for in Sections 3(a) and (b) of this Agreement (but assuming
that such salary and bonus each increase 4% per annum) for two years following
the Date of Termination, (ii) the Executive made pre-tax contributions at the
highest permissible rate (disregarding any limitations imposed by the Code,
which may or may not be set forth in the 401(k) Plan) for such two year period,
and (iii) the Profit Sharing Contribution Account, Matching Contribution
Account, and Company Account were fully vested, and (2) the actual aggregate
value of the vested portions of the Executive’s Profit Sharing Contribution
Account, Matching Contribution Account, and Company Account, if any, under the
401(k) Plan and the SERP;

 

(ii)                                  without
duplication of any amounts described in Section 4(b)(i)(A), the Company
shall pay to the Executive for a period of 24 months following the Date of Termination
his then Annual Base Salary and Annual Bonus assuming for purposes of
determining such bonus the achievement of the Target Amount. Such Annual Base
Salary shall be paid at the times contemplated by Section 3(a) and such
Annual Bonus shall be paid at the time contemplated by Section 3(b).  In the event of the Executive’s death before
all amounts due under this Subsection (b)(ii) have been paid to the
Executive, the amounts payable to the Executive under this
Subsection (b)(ii) shall be paid to the Executive’s Beneficiary;

 

(iii)                               for
the 24 month period following the Date of Termination or such longer period as
any plan, program, practice or policy may provide (the “Benefit Continuation Period”),
the Company shall continue on the same terms and conditions the benefits to the
Executive and/or the Executive’s family provided to them under the plans,
programs, practices and policies described in Section 3(e) as may be in
effect from time to time with respect to other peer executives of the Company
and their families; provided, however, that if the Executive becomes
re-employed with another employer and is eligible to receive medical or other
welfare benefits under another employer provided plan, the medical and other
welfare benefits described herein shall cease on the date the Executive becomes
a participant in such other plan; and

 

(iv)                              the
Company shall provide the Executive with up to $15,000 for outplacement
services commensurate with those provided to terminated executives of
comparable level made available through and at the facilities of a reputable
and experienced vendor.

 

(c)                                  Termination for Cause or Resignation Without Good
Reason.  If, during the
Employment Period, the Company terminates the Executive’s employment for Cause
or the Executive resigns from his employment without Good Reason, this
Agreement shall terminate without further obligations of the Company to the
Executive other than for payment of Accrued Obligations or as may otherwise be
required by law.  In such case, all
Accrued Obligations shall be paid to the Executive in cash at the times
described in Section 4(a).

 

(d)                                 Death or Disability.  If the Executive’s employment is terminated
by reason of his death or Disability during the Employment Period, this
Agreement shall terminate

 

6

 

without further obligations of
the Company to the Executive or his legal representatives under this Agreement,
other than for payment of Accrued Obligations or as may otherwise be required
by law.  All Accrued Obligations shall
be paid to the Executive (or his Beneficiary in the case of his death) in cash
at the times described in Section 4(a).

 

(e)                                  Notice and Date of Termination.  Any termination by the Company or by the
Executive during the Employment Period shall be communicated by a notice of
termination to the other party hereto given in accordance with
Section 11(b) of this Agreement (the “Notice of Termination”).  The Notice of Termination shall indicate the
specific termination provision in this Agreement relied upon, and to the extent
applicable, set forth in reasonable detail all of the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under
the provision so indicated.  The date of
the Executive’s termination of employment with the Company (the “Date of Termination”)
shall be determined as follows: (i) if the Executive’s employment is terminated
by the Company other than for Cause or Disability, the date specified in the
Notice of Termination, (ii) if the Executive resigns other than for Good
Reason, the later of the date specified in the Notice of Termination or ten
days following the date such notice is received by the Company, (iii) if the
Executive resigns for Good Reason, ten days following the date the Notice of
Termination is received by the Company, (iv) if the Executive’s employment is
terminated by the Company for Cause, the later of the date specified in the
Notice of Termination or ten days following the date such notice is received by
the Executive, (v) if the Executive’s employment is terminated as the result of
his death, the date of death, and (vi) if the Executive’s employment is
terminated by reason of Disability, thirty days following the date the Notice
of Termination is received by the Executive, provided that the Executive shall
not have returned to perform his duties in accordance with Section 2
during such thirty day period.  In the
event the Executive or the Company fails to set forth in the Notice of
Termination any fact or circumstance which could provide or support a basis for
termination, the Executive or the Company, as the case may be, shall have
waived all of its rights hereunder and be precluded from asserting such fact or
circumstance at a later date in support of the Executive’s or the Company’s
rights hereunder.

 

(f)                                    Certain Reduction of Payments by the Company.  Notwithstanding anything in this
Section 4 to the contrary, in the event the amounts payable under the
preceding provisions of this Section 4 exceed the maximum amount permitted
under the Australian Corporations Act of 2001 (the “Maximum Amount”),
then the aggregate of amounts payable to or for the benefit of the Executive
pursuant to this Agreement shall be reduced to the Maximum Amount. This
paragraph only applies if the Company is required to comply with the Australian
Corporations Act at the time of termination.

 

5.                                       Non-exclusivity of Rights.  Except as otherwise expressly provided for
in this Agreement, nothing in this Agreement shall prevent or limit the Executive’s
continuing or future participation in any plan, program, policy or practice
provided by the Company for which the Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as the Executive may have under
any contract or agreement with the Company. 
Amounts which are

 

7

 

vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company at or subsequent to
the Date of Termination shall be payable in accordance with such plan, policy,
practice or program or contract or agreement except as explicitly referenced
and modified by this Agreement.

 

6.                                       Full Settlement.  The Company’s obligation to make the
payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others. In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and, except as otherwise expressly provided for in this Agreement, such amounts
shall not be reduced whether or not the Executive obtains other employment.

 

7.                                       Protective Covenants.

 

(a)                                  No Competing Employment.  For so long as the Executive is employed by
the Company and continuing for two years after the Date of Termination (such
period being referred to hereinafter as the “Restricted Period”), the Executive shall
not, directly or indirectly, own an interest in, manage, operate, join,
control, lend money or render financial or other assistance to or participate
in or be connected with (irrespective of whether or not the Executive receives
remuneration for such activity), as an officer, employee, partner, stockholder,
consultant or otherwise, any individual, partnership, firm, corporation or other
business organization or entity that competes with the Company, its parent or
any of their subsidiaries (collectively, the “Group”).

 

(b)                                 No Solicitation.  During the Restricted Period, the Executive
shall not, whether for his own account or for the account of any other
individual, partnership, firm, corporation or other business organization
(other than the Group), intentionally solicit, endeavor to entice away from the
Group, or otherwise interfere with the relationship of the Group with, any
person who is employed by or otherwise engaged to perform services for the
Group or any person or entity who is, or was within the then most recent
twelve-month period, a customer, client or supplier of the Group.

 

(c)                                  Confidentiality.  The Executive recognizes that the services
to be performed by the Executive hereunder are special, unique and
extraordinary in that, by reason of  the
employment of the Executive hereunder, the Executive may acquire Confidential
Information and trade secrets concerning the operation of the Group, the use or
disclosure of which could cause the Group substantial losses and damages which
could not be readily calculated and for which no remedy at law would be
adequate.  Accordingly, the Executive
covenants and agrees that the Executive  will not at any time, except in performance of Executive’s
obligations to the Company hereunder or with the prior written consent of the
Company, directly or indirectly

 

8

 

disclose to any person any
secret or Confidential Information that the Executive may learn or have learned
by reason of the association of the Executive with the Group.

 

(d)                                 Exclusive Property.  The Executive confirms that all Confidential
Information is and shall remain the exclusive property of the Group.  All business records, papers and documents
(including electronic media or data) kept or made by Executive relating to the
business of the Group shall be and remain the property of the Group.  Upon the termination of Executive’s employment
with the Company or upon the request of the Company at any time, the Executive
shall promptly deliver to the Company, and shall not without the consent of the
Company retain copies of, any written materials (including electronic media or
data) not previously made available to the public, or records or documents
(including electronic media or data) made by the Executive or coming into
Executive’s possession concerning the business or affairs of the Group.

 

(e)                                  No Disparagement.  During Executive’s employment with the
Company and for a period of 24 months following the Date of Termination,
neither the Executive nor the Group and their respective directors, officers,
agents and affiliates shall make any statement or communicate any information
(whether oral or written) that disparages or reflects negatively on the
other.  The Company also agrees that it
shall not interfere with Executive’s efforts to obtain subsequent
employment.  Nothing herein shall
preclude Executive or the Group from complying with a subpoena or other lawful
process or from instituting or responding to a legal proceeding and making good
faith claims in any such proceeding.

 

(f)                                    Injunctive Relief.  Without intending to limit the remedies
available to the Company, the Executive acknowledges that a breach of any of
the covenants contained in this Section 7 will result in material
irreparable injury to the Group for which there is no adequate remedy at law,
that it will not be possible to measure damages for such injuries precisely and
that, in the event of such a breach or threat thereof, the Company shall be
entitled to obtain a temporary restraining order and/or a preliminary or
permanent injunction restraining the Executive from engaging in activities
prohibited by this Section 7 or such other relief as may be required to
specifically enforce any of the protective covenants in this Section 7.

 

(g)                                 Duration.  The terms of the protective covenants in this Section 7
shall survive the expiration of this Agreement.

 

8.                                       Indemnification.  The Company will, to the fullest extent
permitted by law, indemnify and hold the Executive harmless from any and all
liability arising from the Executive’s service as an employee, officer or
director of the Company or any entity in the Group.  The terms of this indemnification provision shall survive the
expiration of this Agreement.

 

9

 

9.                                       Successors.

 

(a)                                  This
Agreement is personal to the Executive and without the prior written consent of
the Company shall not be assignable by the Executive otherwise than by will or
the laws of descent and distribution. 
This Agreement shall inure to the benefit of and be enforceable by the
Executive’s legal representatives.

 

(b)                                 This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

 

(c)                                  The
Company shall require any successor (whether direct or indirect, by purchase,
merger, statutory share exchange, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession
had taken place; provided, however, that no such assumption shall relieve the
Company of its obligations hereunder. 
As used in this Agreement, “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law or otherwise.

 

10.                                 Definitions.  For purposes of this Agreement, the following capitalized words
shall have the meanings set forth below:

 

(a)                                  “Beneficiary” shall
mean the person or persons designated by the Executive in writing to receive
any benefits payable to the Executive hereunder in the event of the Executive’s
death or, if no such person is so designated, the Executive’s estate.  No beneficiary designation shall be
effective unless it is received by the Company prior to the date of the Executive’s
death.

 

(b)                                 “Cause” shall mean
(i) material violations by the Executive of the Executive’s obligations
under Section 2 of this Agreement (other than as a result of incapacity
due to physical or mental illness) which are willful on the Executive’s part,
and which are not remedied in a reasonable period of time after receipt of
written notice from the Company specifying such violations, (ii) willful or
reckless conduct by the Executive which a good faith determination has been
made that such conduct could be expected to have a material adverse effect on
the business, assets, properties, results of operations, financial condition or
prospects of the  Group, (iii)
commission by the Executive of an act or acts involving fraud, embezzlement,
misappropriation, theft, breach of fiduciary duty or dishonesty against the
property or personnel of the Group or in violation of the Group’s  code of ethics, or (iv) the conviction of
the Executive of a felony involving an act of dishonesty.

 

10

 

(c)                                  “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time.  References to any provision of the Code
shall be deemed to include successor provisions thereto and regulations
thereunder.

 

(d)                                 “Confidential Information”
shall mean all proprietary or confidential information of the Group  including, but not limited to, information
concerning the Group’s products, facilities, processes, trade secrets,
know-how, systems, suppliers, customers, financial information, and business
plans, prospects or opportunities, other than information that is generally
available to the public other than as a result of disclosure by the Executive
in violation of the confidentiality covenant contained in Section 7(c).

 

(e)                                  “Disability” shall
mean the absence of the Executive from his duties with the Company for 180
consecutive business days as a result of incapacity due to mental or physical
illness which is determined to be total and permanent by a physician selected
by the Company or its insurers and acceptable to the Executive or the
Executive’s legal representative (such agreement as to acceptability not to be
withheld unreasonably).

 

(f)                                    “Good Reason” shall
mean the occurrence of any of the following events:

 

(i)  an adverse and material
change of the Executive’s duties inconsistent in any respect with the
Executive’s position (including, without limitation, status, offices, titles
and reporting requirements), authority, duties or responsibilities as
contemplated by Section 2, other than any changes in the Executive’s
position, authority, duties or responsibilities that;

 

(A)                              are
reasonable and appropriate in connection with a business restructuring which
reduces, in less than in a substantial manner, the assets, net worth, cash flow
or earnings of the Company or the Group or

 

(B)                                result
in a position, authority, duties or responsibilities that are, in the
aggregate, generally equivalent to those contemplated by Section 2,

 

which in the case of (A) or (B) above 
does not result in a change in any manner in the Executive’s
compensation or benefits as set forth in Section 3,

 

(ii)  any material failure by
the Company to comply with any of the provisions of this Agreement that is not
remedied by the Company promptly after receipt of notice thereof given by the
Executive, or

 

(iii)  the Company requiring the
Executive to be based at any office or location other than that described in
Section 2 hereof without the Executive’s prior written consent.

 

11

 

The parties do understand  that
from time to time there may be significant re-structuring to add or delete
assets to or from the Company or the Group as determined by the Board to best
enhance shareholder value, the result of which shall not be to diminish the
duties and responsibilities of the Executive as Managing Director and Chief
Executive as set forth in Section 2 of this Agreement.

 

11.                                 Miscellaneous.

 

(a)                                  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, without reference to principles of conflict of laws.  The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.  This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto
or their respective successors and legal representatives.

 

(b)                                 All
notices and other communications hereunder shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

 

David V. Clarke

383 Thatch Pine Drive

Boca Raton, Florida 33432

 

If to the Company:

 

Rinker Materials Corporation

1501 Belvedere Road

West Palm Beach, Florida 33406

Attention:  Corporate Secretary

 

or such other address as either party shall have furnished to the other
in writing in accordance herewith. 
Notice and communications shall be effective when actually received by
the addressee. To be effective hereunder, notice of termination for Cause must
be accompanied by a duly adopted board resolution that specifies the
particulars thereof in reasonable detail.

 

(c)                                  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

 

(d)                                 The
Company may withhold from any amounts payable under this Agreement such
Federal, state or local taxes as shall be required to be withheld pursuant to
any applicable law or regulation.

 

12

 

(e)                                  The
Executive’s or the Company’s failure to insist upon strict compliance with any
provision hereof or any other provision of this Agreement or the failure to assert
any right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 4(b) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

 

(f)                                    No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement and this Agreement shall supersede
all prior agreements, negotiations, correspondence, undertakings and
communications of the parties, oral or written, with respect to the subject
matter hereof.

 

(g)                                 In
any litigation arising out of this Agreement, including appeals, the prevailing
party shall be entitled to recover all costs incurred, including reasonable
attorneys’ fees.

 

(h)                                 The
Executive and the Company acknowledge that, except as may otherwise be provided
under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is “at will” and may be terminated
by either the Executive or the Company at any time.

 

13

 

IN WITNESS
WHEREOF, the Executive has hereunto set his hand and the Company has caused
these presents to be executed in its name on its behalf, all as of the day and
year first above written.

 

 

	
   

  	
  /s/ David V. Clarke

  	
   

  
	
   

  	
  David V. Clarke

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Rinker Materials Corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ira Fialkow

  	
   

  
	
   

  	
  Name:

  	
  Ira Fialkow

  	
   

  
	
   

  	
  Title:

  	
  V.P. Human Resources

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