Document:

EX-10.1

Exhibit 10.1           

FORM
OF RESTRICTED

STOCK AGREEMENT

FOR MESSRS. McVEY AND MILLET

RESTRICTED STOCK AGREEMENT PURSUANT TO THE

MARKETAXESS HOLDINGS INC. 2004 STOCK INCENTIVE PLAN

(AMENDED AND RESTATED EFFECTIVE APRIL 28, 2006)

     THIS AGREEMENT, made as of the [      ] day of [          ], by and between MarketAxess
Holdings Inc., a Delaware corporation with its principal office at 140 Broadway, 42nd
Floor, New York, New York 10005 (the “Company”), and [          ], residing at [          ]
(the “Participant”).

     WHEREAS, the Board of Directors of the Company (the “Board”) adopted, and the stockholders of
the Company, approved the MarketAxess Holdings Inc. 2004 Stock Incentive Plan (Amended and Restated
effective April 28, 2006) (the “Plan”);

     WHEREAS, the Company, through the Committee under the Plan, wishes to grant to the Participant
shares of its common stock, par value $.003 per share (“Common Stock” or the “Shares”) in the
amount set forth below; and

     WHEREAS, such Shares are subject to certain restrictions.

     NOW, THEREFORE, the Company and the Participant agree as follows:

     1. Sale of Shares. Subject to the terms, conditions and restrictions of the Plan and
this Agreement, the Company awards to the Participant, [          ] shares of the Company’s
Common Stock on [          ] (the “Grant Date”). To the extent required by law, the Participant
shall pay the Company the par value ($.003) (the “Purchase Price”) for each Share awarded to the
Participant simultaneously with the execution of this Agreement in cash or cash equivalents payable
to the order of the Company. Pursuant to the Plan and Section 2 of this Agreement, the Shares are
subject to certain restrictions, which restrictions shall expire in accordance with the provisions
of the Plan and Section 2 hereof. While such restrictions are in effect, the Shares subject to
such restrictions shall be referred to herein as “Restricted Stock.”

     2. Vesting. (a) Except as set forth in subsections (b) and (c) below, the Restricted
Stock shall become vested and cease to be Restricted Stock (but shall remain subject to the other
terms of this Agreement and the Plan) as follows if the Participant has been continuously employed
by the Company until such date:

	 	 	 	 	 	 
	 
	 	Vesting Date	 	 	Percentage Vested	 
	 	 

	 	 	 	 
	 	 

	 	 	 	 
	 	 

	 	 	 	 
	 

     There shall be no proportionate or partial vesting in the periods prior to the applicable
vesting dates and all vesting shall occur only on the appropriate vesting date.

 

 

     (b) Upon the death or Disability of the Participant, all unvested shares of the Restricted
Stock shall become vested and cease to be Restricted Stock (but shall remain subject to the other
terms of this Agreement and the Plan).

     (c) In the event of the Participant’s Termination due to a termination by the Company without
Cause or the Participant’s resignation for Good Reason, the lesser of (i) [      ] shares of
the Restricted Stock or (ii) all of the remaining unvested shares of Restricted Stock shall become
vested and cease to be Restricted Stock (but shall remain subject to the other terms of this
Agreement and the Plan).

     (d) In the event of a Change in Control, the Restricted Stock shall be treated in accordance
with Section 12.1 of the Plan; provided that, (i) immediately prior to the Change in Control, the
Committee may determine that the Restricted Stock will not be continued, assumed or have new rights
substituted therefor in accordance with Section 12.1(a) of the Plan, and immediately prior to the
Change in Control, the Restricted Stock shall become fully vested and cease to be Restricted Stock
(but shall remain subject to the other terms of this Agreement and the Plan) and (ii) in the event
of the Participant’s Termination by the Company without Cause within 24 months after such Change in
Control, the Restricted Stock shall become fully vested and cease to be Restricted Stock (but shall
remain subject to the other terms of this Agreement and the Plan).

     (e) Any shares of Restricted Stock that remain unvested at the time of the Participant’s
Termination shall be forfeited.

     3. Restrictions on Transfer. The Participant shall not sell, negotiate, transfer,
pledge, hypothecate, assign, encumber or otherwise dispose of the Shares or grant any proxy with
respect thereto, except as specifically permitted by the Plan and this Agreement. Any attempted
Transfer in violation of this Agreement and the Plan shall be void and of no effect and the Company
shall have the right to disregard the same on its books and records and to issue “stop transfer”
instructions to its transfer agent. Notwithstanding the foregoing, nothing herein or in the Plan
shall prohibit the Participant from pledging the Shares the Participant is granted hereunder to the
Company pursuant to a stock pledge agreement entered into between the parties hereto.

     4. Forfeiture. (a) The provisions in Section 8.l of the Plan regarding Detrimental
Activity shall apply to the Restricted Stock.

     (b) If a Participant incurs a Termination for any reason, the Company shall repurchase from
the Participant for the Purchase Price paid for such shares of Restricted Stock, any and all
Restricted Stock.

     5. Rights as a Holder of Restricted Stock. From and after the issue date, the
Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a
holder of shares of Common Stock, including, without limitation, the right to vote the Shares, to
receive and retain all regular cash dividends payable to holders of Shares of record on and after
the issue date (although such dividends will be treated, to the extent required by applicable law,
as additional compensation for tax purposes), and to exercise all other rights, powers and
privileges of a holder of Shares with respect to the Restricted Stock, with the exceptions that
(i) the Participant shall not be entitled to delivery of the stock certificate or certificates
representing the Restricted Stock until such shares are no longer Restricted Stock; (ii) the
Company (or its designated agent) will retain custody of the stock certificate or certificates

 

 

representing the Restricted Stock and any other property (“RS Property”) issued in respect of
the Restricted Stock, including stock dividends at all times such Shares are Restricted Stock;
(iii) no RS Property will bear interest or be segregated in separate accounts; and (iv) the
Participant shall not, directly or indirectly, Transfer the Restricted Stock in any manner
whatsoever.

     6. Taxes; Section 83(b) Election. The Participant acknowledges, subject to the last
sentence of this paragraph, that (i) no later than the date on which any Restricted Stock shall
have become vested, the Participant shall pay to the Company, or make arrangements satisfactory to
the Company regarding payment of, any Federal, state or local taxes of any kind required by law to
be withheld with respect to any Restricted Stock which shall have become so vested; (ii) the
Company shall, to the extent permitted by law, have the right to deduct from any payment of any
kind otherwise due to the Participant any Federal, state or local taxes of any kind required by law
to be withheld with respect to any Restricted Stock which shall have become so vested, including
that the Company may, but shall not be required to, sell a number of Shares sufficient to cover
applicable withholding taxes; and (iii) in the event that the Participant does not satisfy (i)
above on a timely basis, the Company may, but shall not be required to, pay such required
withholding and treat such amount as a demand loan to you at the maximum rate permitted by law,
with such loan, at the Company’s sole discretion and provided the Company so notifies the
Participant within thirty (30) days of the making of the loan, secured by the Shares and any
failure by you to pay the loan upon demand shall entitle the Company to all of the rights at law of
a creditor secured by the Shares. The Company may hold as security any certificates representing
any Shares and, upon demand of the Company, the Participant shall deliver to the Company any
certificates in his or her possession representing Shares together with a stock power duly endorsed
in blank. The Participant also acknowledges that it is his or her sole responsibility, and not the
Company’s, to file timely and properly any election under Section 83(b) of the Code, and any
corresponding provisions of state tax laws, if the Participant wishes to utilize such election.

     7. Legend. In the event that a certificate evidencing Restricted Stock is issued, the
certificate representing the Shares shall have endorsed thereon the following legends:

     (a) “THE ANTICIPATION, ALIENATION, ATTACHMENT, SALE, TRANSFER, ASSIGNMENT, PLEDGE, ENCUMBRANCE
OR CHARGE OF THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS
(INCLUDING FORFEITURE) OF THE MARKETAXESS HOLDINGS INC. (THE “COMPANY”) 2004 STOCK INCENTIVE PLAN
(THE “PLAN”) AND AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE COMPANY DATED AS OF
THE [      ] DAY OF [      ], 20[      ]. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE AT THE
PRINCIPAL OFFICE OF THE COMPANY.”

     (b) Any legend required to be placed thereon by applicable blue sky laws of any state.
Notwithstanding the foregoing, in no event shall the Company be obligated to issue a certificate
representing the Restricted Stock prior to vesting as set forth in Section 2 hereof.

     8. Securities Representations. The Shares are being issued to the Participant and
this Agreement is being made by the Company in reliance upon the following express representations
and warranties of the Participant. The Participant acknowledges, represents and warrants that:

 

 

     (a) The Participant has been advised that the Participant may be an “affiliate” within the
meaning of Rule 144 under the Securities Act and in this connection the Company is relying in part
on the Participant’s representations set forth in this section;

     (b) The Shares must be held indefinitely by the Participant unless (i) an exemption from the
registration requirements of the Securities Act is available for the resale of such Shares or (ii)
the Company files an additional registration statement (or a “re-offer prospectus”) with regard to
the resale of such Shares and the Company is under no obligation to continue in effect a Form S-8
Registration Statement or to otherwise register the resale of the Shares (or to file a “re-offer
prospectus”);

     (c) The exemption from registration under Rule 144 will not be available under current law
unless (i) a public trading market then exists for the Common Stock of the Company, (ii) adequate
information concerning the Company is then available to the public, and (iii) other terms and
conditions of Rule 144 or any exemption therefrom are complied with and that any sale of the Shares
may be made only in limited amounts in accordance with such terms and conditions.

     9. Not an Employment Agreement. Neither the execution of this Agreement nor the
issuance of the Shares hereunder constitute an agreement by the Company to employ or to continue to
employ the Participant during the entire, or any portion of, the term of this Agreement, including
but not limited to any period during which any Shares are outstanding.

     10. Power of Attorney. The Company, its successors and assigns, is hereby appointed
the attorney-in-fact, with full power of substitution, of the Participant for the purpose of
carrying out the provisions of this Agreement and taking any action and executing any instruments
which such attorney-in-fact may deem necessary or advisable to accomplish the purposes hereof,
which appointment as attorney-in-fact is irrevocable and coupled with an interest. The Company, as
attorney-in-fact for the Participant, may in the name and stead of the Participant, make and
execute all conveyances, assignments and transfers of the Restricted Stock, other RS Property,
Shares and property provided for herein, and the Participant hereby ratifies and confirms that
which the Company, as said attorney-in-fact, shall do by virtue hereof. Nevertheless, the
Participant shall, if so requested by the Company, execute and deliver to the Company all such
instruments as may, in the judgment of the Company, be advisable for this purpose.

     11. Miscellaneous.

     (a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, personal legal representatives, successors, trustees, administrators,
distributees, devisees and legatees. The Company may assign to, and require, any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company or any affiliate by which the
Participant is employed to expressly assume and agree in writing to perform this Agreement.
Notwithstanding the foregoing, the Participant may not assign this Agreement other than with
respect to Shares Transferred in compliance with the terms hereof.

     (b) This award of Restricted Stock shall not affect in any way the right or power of the Board
or stockholders of the Company to make or authorize an adjustment, recapitalization or other change
in the capital structure or the business of the Company, any

 

 

merger or consolidation of the Company or subsidiaries, any issue of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Common Stock, the dissolution or
liquidation of the Company, any sale or transfer of all or part of its assets or business or any
other corporate act or proceeding.

     (c) The Participant agrees that the award of the Restricted Stock hereunder is special
incentive compensation and that it, any dividends paid thereon (even if treated as compensation for
tax purposes) and any other RS Property will not be taken into account as “salary” or
“compensation” or “bonus” in determining the amount of any payment under any pension, retirement or
profit-sharing plan of the Company or any life insurance, disability or other benefit plan of the
Company.

     (d) No modification or waiver of any of the provisions of this Agreement shall be effective
unless in writing and signed by the party against whom it is sought to be enforced.

     (e) This Agreement may be executed in one or more counterparts, all of which taken together
shall constitute one contract.

     (f) The failure of any party hereto at any time to require performance by another party of any
provision of this Agreement shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this Agreement shall not
be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any right under this Agreement.

     (g) The headings of the sections of this Agreement have been inserted for convenience of
reference only and shall in no way restrict or modify any of the terms or provisions hereof.

     (h) All notices, consents, requests, approvals, instructions and other communications provided
for herein shall be in writing and validly given or made when delivered, or on the second
succeeding business day after being mailed by registered or certified mail, whichever is earlier,
to the persons entitled or required to receive the same, at the addresses set forth at the heading
of this Agreement or to such other address as either party may designate by like notice. Notices
to the Company shall be addressed to the Compensation Committee of the Board with a copy to General
Counsel, MarketAxess Holdings Inc., 140 Broadway, 42nd Floor, New York, NY 10005.

     (i) This Agreement shall be construed, interpreted and governed and the legal relationships of
the parties determined in accordance with the internal laws of the State of Delaware without
reference to rules relating to conflicts of law.

     (j) By executing this Agreement within 60 days after the day and year first written above, the
award of Restricted Stock shall be accepted by the Participant within the time period required
under Section 8.2(b) of the Plan.

     12. Provisions of Plan Control. This Agreement is subject to all the terms,
conditions and provisions of the Plan, including, without limitation, the amendment provisions
thereof, and to such rules, regulations and interpretations relating to the Plan as may be adopted
by the Committee and as may be in effect from time to time. The Plan is incorporated herein by
reference. A copy of the Plan has been delivered to the Participant. If and to the extent that
this Agreement conflicts or is inconsistent with the terms, conditions and provisions

 

of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified
accordingly. Unless otherwise indicated, any capitalized term used but not defined herein shall
have the meaning ascribed to such term in the Plan. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof (other than any other
documents expressly contemplated herein or in the Plan) and supersedes any prior agreements between
the Company and the Participant.

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	MARKETAXESS HOLDINGS INC.	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Dated:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	Participant:
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:exv4w5

Exhibit 4.5

Long Term Incentive Plan
Rules

Sims Metal Management Limited

     As amended 23 October 2008

	 	 	 
	Baker & MC.Kenzie

Solicitors

Level 27, AMP Centre

50 Bridge Street

SYDNEY NSW 2000

Tel: (02) 9225-0200

Fax: (02) 9225-1595

Email: guy.sanderson@bakernet.com

Ref: 790504-v1\AUSGS3

	 	

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	 	 	 
	Number	 	Heading	 	Page
	 
	 	 	 	 	 	 
	1

	 	Introduction
	 	 	1	 
	2

	 	Definitions and Interpretation
	 	 	1	 
	3

	 	Issue of Awards
	 	 	4	 
	4

	 	Offers
	 	 	5	 
	5

	 	Vesting and Exercise of Awards
	 	 	6	 
	6

	 	Allotment of Shares on exercise or vesting of Awards
	 	 	7	 
	7

	 	Restricted Awards and Restricted Shares
	 	 	9	 
	8

	 	Adjustments
	 	 	9	 
	9

	 	Hedging unvested Awards
	 	 	11	 
	10

	 	Forfeiture
	 	 	11	 
	11

	 	Power of attorney
	 	 	11	 
	12

	 	Powers of the Board
	 	 	11	 
	13

	 	Commencement, suspension, termination and amendment of Plan
	 	 	12	 
	14

	 	General provisions
	 	 	12	 

					
	 
	 
	 
	 	i
	 	Long Term Incentive Plan Rules

 

 

Long Term Incentive Plan Rules

	1	 	Introduction

Purpose of plan

	1.1	 	The Company has established this Plan to encourage Employees to share in the ownership of the
Company, in order to promote the long-term success of the Company as a goal shared by all
Employees.

Advice

	1.2	 	There are legal and tax consequences associated with participation in the Plan. Employees
should ensure that they understand these consequences before accepting an invitation to
participate in the Plan.

	2	 	Definitions and Interpretation

Definitions

	2.1	 	In these Rules unless the contrary intention appears, terms defined in the Corporations Act
or Listing Rules have the same meaning in these Rules, and:

ADSs means American Depositary Shares each representing one Share in the Company.

Application means a written acceptance of an Offer for, or an application for, Awards in a
form approved by or acceptable to the Board.

ASIC means the Australian Securities and Investments Commission.

ASX means ASX Limited or the securities market which it operates, as the context requires.

Award means:

	 	(a)	 	a Performance Right,
	 
	 	(b)	 	an RSU,
	 
	 	(c)	 	an Option, or
	 
	 	(d)	 	a Cash Right,

as applicable.

Board means the Board of Directors of the Company.

Cash Right means a conditional right to receive a cash payment, which is issued under
clause 3.5.

Company means Sims Metal Management Limited (ACN 114 838 630).

Control has the same meaning as in the Corporations Act.

1

 

Corporations Act means the Corporations Act 2001 (Cth).

Employee means a person who is a full-time or permanent part-time employee or officer, or
director of the Company or any related body corporate of the Company.

exercise means exercise of an Award in accordance with its terms, and includes automatic
exercise in accordance with these Rules.

Expiry Date means the date on which an Award lapses, being the date specified in an Offer as
the Expiry Date, or fixed by a method of calculation set out in an Offer.

issue of a Share includes the transfer of an existing Share in accordance with clause 8.3.

Issue Price means the price (if any) to be paid for the issue of an Award as stated in the
Offer.

Listed means the Company being and remaining admitted to the official list of the ASX or
NYSE.

Listing Rules means the Listing Rules of ASX and any other rules of the ASX or NYSE which
are applicable while the Company is Listed each as amended or replaced from time to time,
except to the extent of any waiver or similar relief granted by the ASX or NYSE.

Market Price on a day means the weighted average sale price of Shares or other relevant
securities on the ASX over the five trading days immediately preceding the relevant day, or
another pricing method determined by the Company.

NYSE means the New York Stock Exchange.

Offer means an offer or issue of Awards made to an Employee under clause 4. Where Awards
are granted or issued without the need for acceptance, an Offer includes the document
setting out the terms of the Award.

Option means an option to acquire Shares issued under clause 3.4.

Participant means an Employee to whom Awards are issued.

Performance Right means a conditional right to acquire a Share, which is issued under clause
3.2.

Plan means this Long Term Incentive Plan.

Restricted Award means an Award in respect of which a restriction on sale or disposal
applies under this Plan.

Restricted Share means a Share issued on exercise of an Award in respect of which a
restriction on sale or disposal applies under this Plan.

Restriction Period means the period during which Awards, or Shares issued on exercise of
Awards, must not be sold or disposed of, being the period specified in the Offer if
applicable.

RSU stands for Restricted Stock Unit and means a conditional right to acquire a Share, which
is issued under clause 3.3.

Rules means these rules as amended from time to time.

2

 

Securities Act means the US Securities Act of 1933, as amended.

Security Interest means an interest in an asset which provides security for, or protects
against default by, a person for the payment or satisfaction of a debt, obligation or
liability including a mortgage, charge, bill of sale, pledge, deposit, lien, encumbrance,
hypothecation, first right of refusal, voting right or arrangement for the retention of
title or any agreement, option or other arrangement to grant such an interest or right.

Share means a fully paid ordinary share of the Company.

US means the United States of America.

Vesting Conditions means any conditions described in the Offer that must be satisfied before
an Award can be exercised or before an Award (or Share issued under an Award) is no longer
subject to forfeiture.

Vesting Date means the date on which an Award is exercisable or is no longer subject to
forfeiture following satisfaction of any Vesting Conditions, or the Award otherwise vesting
in accordance with these Rules.

Interpretation

	2.2	 	In these Rules, unless expressed to the contrary:

	 	(a)	 	terms defined in the Corporations Act have the same meaning in these Rules;
	 
	 	(b)	 	words importing:

	 	(i)	 	the singular include the plural and vice versa;
	 
	 	(ii)	 	any gender includes the other genders;

	 	(c)	 	if a word or phrase is defined cognate words and phrases have corresponding
definitions;
	 
	 	(d)	 	a reference to:

	 	(i)	 	a person includes a firm, unincorporated association,
corporation and a government or statutory body or authority;
	 
	 	(ii)	 	a person includes its legal personal representatives,
successors and assigns;
	 
	 	(iii)	 	a statute, ordinance, code or other law includes regulations
and other statutory instruments under it and consolidations, amendments,
re-enactments or replacements of any of them;
	 
	 	(iv)	 	a right includes a benefit, remedy, discretion, authority or
power;
	 
	 	(v)	 	“$” or “dollars” is a reference to the lawful currency of
Australia;
	 
	 	(vi)	 	this or any other document includes the document as varied or
replaced and notwithstanding any change in the identity of the parties; and
	 
	 	(vii)	 	any thing (including, without limitation, any amount) is a
reference to the whole or any part of it and a reference to a group of things
or persons is a reference to any one or more of them.

3

 

Headings

	2.3	 	Headings are for convenience only and do not affect the interpretation of these Rules.

	3	 	Issue of Awards

	3.1	 	The Company may offer and issue Awards under the Plan to Employees at the discretion of the
Board.

Performance Rights

	3.2	 	The Company may offer or issue Performance Rights, which are rights (subject to these Rules)
to be issued a Share upon the satisfaction of specified Vesting Conditions. The following
terms apply, unless the Offer specifies otherwise:

	 	(a)	 	Performance Rights are Restricted Awards until they are exercised or expire.

	 	(b)	 	Unless the terms of an Offer specify otherwise, Shares issued on the exercise
of Performance Rights which are held by Participants who are ordinarily resident in
Australia are subject to a Restriction Period which ends on the earliest of:

	 	(i)	 	the Participant making an application to the Board seeking to
have the restrictions applying to the Shares removed and that request being
approved by the Board;
	 
	 	(ii)	 	the Board in its discretion unilaterally releasing the restriction;
	 
	 	(iii)	 	the Participant ceasing to be an Employee; and
	 
	 	(iv)	 	the tenth anniversary of the original issue date of the Performance Right.

	 	(c)	 	Performance Rights are subject to adjustment under clause 8.

RSUs

	3.3	 	The Company may offer or issue RSUs, which are rights (subject to these Rules) to be issued a
Share upon the satisfaction of specified Vesting Conditions. The following terms apply,
unless the Offer specifies otherwise:

	 	(a)	 	RSUs are Restricted Awards until they are exercised or expire.
	 
	 	(b)	 	Unless the terms of an Offer specify otherwise, Shares issued on the vesting
and exercise of RSUs which are held by Participants who are ordinarily resident in
Australia are subject to a Restriction Period which ends on the earliest of:

	 	(i)	 	the Participant making an application to the Board seeking to
have the restrictions applying to the Shares removed and that request being
approved by the Board;
	 
	 	(ii)	 	the Board in its discretion unilaterally releasing the restriction;
	 
	 	(iii)	 	the Participant ceasing to be an Employee; and
	 
	 	(iv)	 	the tenth anniversary of the original issue date of the RSUs.

	 	(c)	 	RSUs are subject to adjustment under clause 8.

4

 

Options

	3.4	 	The Company may offer or issue Options, which are options (subject to these Rules) to be
issued a Share upon the satisfaction of specified Vesting Conditions. These terms apply
unless the Offer specifies otherwise:

	 	(a)	 	Options are Restricted Awards until they are exercised or expire.
	 
	 	(b)	 	Unless the terms of an Offer specify otherwise, Shares issued on the exercise
of Options which are held by Participants who are ordinarily resident in Australia are
subject to a Restriction Period which ends on the earliest of:

	 	(i)	 	the Participant making an application to the Board seeking to
have the restrictions applying to the Shares removed and that request being
approved by the Board;
	 
	 	(ii)	 	the Board in its discretion unilaterally releasing the restriction;
	 
	 	(iii)	 	the Participant ceasing to be an Employee; and
	 
	 	(iv)	 	the tenth anniversary of the original issue date of the Options.

	 	(c)	 	Options granted to those individuals who are subject to US federal income taxes
cannot have an Exercise Price which is less than the Market Price on the date of grant.
	 
	 	(d)	 	Options are subject to adjustment under clause 8.

Cash Rights

	3.5	 	The Company may offer or issue Cash Rights, which are rights (subject to these Rules) to be
paid the Market Price of a Share as at the Vesting Date, minus the Exercise Price (if any),
upon the satisfaction of specified Vesting Conditions. The following terms apply, unless the
Offer specifies otherwise:

	 	(a)	 	Cash Rights are Restricted Awards until they are exercised or expire.
	 
	 	(b)	 	Cash Rights are subject to adjustment under clause 8.

	4	 	Offers

	4.1	 	The Company may make an Offer to any Employee.

Form of Offer

	4.2	 	Each Offer must be in writing (which includes email), include an Application if acceptance is
required, and specify the following to the extent applicable:

	 	(a)	 	the name and address of the Employee to whom the Offer is made;
	 
	 	(b)	 	the type of Awards being offered;
	 
	 	(c)	 	the number of Awards being offered;

5

 

	 	(d)	 	any Vesting Conditions for the Awards;
	 
	 	(e)	 	the Issue Price for the Awards (if any). If no Issue Price is specified then
the Issue Price is nil;
	 
	 	(f)	 	the Exercise Price (if any);
	 
	 	(g)	 	the Expiry Date (if any);
	 
	 	(h)	 	any Restriction Period;
	 
	 	(i)	 	any other terms or conditions that the Board decides to include; and
	 
	 	(j)	 	any other matters required to be specified in the Offer by either the
Corporations Act or the Listing Rules.

	4.3	 	If required by applicable laws, the Offer must include an undertaking by the Company to
provide to a Participant, if a request is made before the Award is Exercised and within a
reasonable period of being so requested, the current market price of the Shares.

Compliance with laws

	4.4	 	No Offer will be made to the extent that any such Offer would contravene the Company’s
Constitution, the Listing Rules, the Corporations Act or any other applicable law.

Acceptance

	4.5	 	If acceptance of an Offer is required, it may be accepted:

	 	(a)	 	by an Employee completing and returning the Application, as required by the
Offer, by not later than the date specified in the Offer; and
	 
	 	(b)	 	if required, by the Employee making or directing payment of the Issue Price
payable for the Awards (if any) accepted under the Offer, in the manner specified in
the Offer.

	4.6	 	An Offer which requires acceptance lapses if it is not accepted by the Employee to whom the
Offer is made as required under clause 4.5.

	5	 	Vesting and Exercise of Awards

Vesting

	5.1	 	The Awards held by a Participant will vest in and become exercisable by that Participant upon
the satisfaction of any Vesting Conditions specified in the Offer and in accordance with these
Rules.
	 
	5.2	 	Vesting Conditions may be waived, or varied so as to be less onerous, at the absolute
discretion of the Board (unless excluded by the terms of the Award).
	 
	5.3	 	If Vesting Conditions are not satisfied in accordance with the terms of an Offer, as amended
or waived under clause 5.2, or in accordance with clause 5.4 then the unvested Award will
lapse.

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Automatic vesting on change of control

	5.4	 	Unless the terms of an Offer provide otherwise, an Award will vest immediately regardless of
whether its Vesting Conditions have been satisfied if:

	 	(a)	 	a person who did not Control the Company at the date of issue of the Award
gains Control of the Company (but only if the person is not itself Controlled by
another person who Controlled the Company at the date of issue of the Award); or
	 
	 	(b)	 	unless the Board otherwise determines — a takeover bid is recommended by the
Board, or a scheme of arrangement which would have a similar effect to a full takeover
bid is announced by the Company.

Automatic Exercise

	5.5	 	Unless clause 5.6 applies, the vesting of an Award with a nil Exercise Price (which does not
include Options) will automatically trigger the exercise of the Award on the satisfaction of
its Vesting Conditions without the need for any action on the part of the Participant.
	 
	5.6	 	The terms of an Award may provide that the Award will not be exercised automatically upon
vesting, in which case the following clauses apply.

Exercise of Awards

	5.7	 	A Participant is, subject to this clause 5, entitled to exercise an Award on or after the
Vesting Date. Any exercise must be for a minimum number or multiple of Shares (if any)
specified in the terms of the Offer.
	 
	5.8	 	Awards may be exercised by the Participant delivering to the Company a notice stating the
number of Awards to be exercised together with the Exercise Price (if any) for the Shares to
be issued.

	6	 	Allotment of Shares on exercise or vesting of Awards

Rights attaching to Shares

	6.1	 	The Shares issued under this Plan will upon allotment be:

	 	(a)	 	credited as fully paid;
	 
	 	(b)	 	rank equally for dividends and other entitlements where the record date is on
or after the date of allotment, but will carry no right to receive any dividend or
entitlement where the record date is before the date of allotment; and
	 
	 	(c)	 	subject to any restrictions imposed under these Rules, will otherwise rank
equally with the existing issued Shares at the time of allotment.

ADSs

	6.2	 	Despite any other provision in these Rules, Participants who are resident in the US at the
time of exercise of an Award will be issued ADSs instead of Shares, unless the Board
determines otherwise.

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	6.3	 	The Board may, in its discretion, issue other Participants with ADSs instead of Shares on the
exercise of an Award if requested by the Participant.

Quotation

	6.4	 	If the Company is Listed, then as soon as practicable after the date of the allotment of
Shares or ADSs, the Company will, unless the Board otherwise resolves, apply for official
quotation of such Shares on the ASX or cause the ADSs to be approved for listing on NYSE
respectively, and if required by the Securities Act, cause the registration of the offer and
sale of the Shares or ADSs under the Securities Act.

New or existing Shares

	6.5	 	The Company may, in its discretion, either issue new Shares or cause existing Shares to be
acquired for transfer to the Participant, or a combination of both alternatives, to satisfy
the Company’s obligations under these Rules.
	 
	6.6	 	If the Company decides to cause the transfer of Shares to a Participant, the Shares may be
acquired in such manner as the Company considers appropriate, including from a trustee
appointed under clause 6.7.

Trustee

	6.7	 	The Company may appoint a trustee on terms and conditions which it considers appropriate to
acquire and hold Shares or other securities of the Company either on behalf of Participants or
for the purposes of this Plan.
	 
	6.8	 	Participants have no rights in respect of Shares or other securities held by a trustee unless
and until their Performance Rights vest.

Cash settlement of Awards

	6.9	 	Awards may, in the discretion of the Board and subject to obtaining any necessary ASIC
relief, be satisfied by way of cash payments to Participants instead of by the issue of
Shares. The amount of cash payable will be the Market Price on the date of exercise of the
Shares that would have been issued to the Participant had the Board not exercised this
discretion, minus the Exercise Price (if any). Cash payments will be paid subject to
withholding under clause 6.10.

Liability for payments

	6.10	 	Where the Company, or any of its related bodies corporate, or a trustee appointed under this
clause 6 must withhold or account for any tax or social security contributions (in any
jurisdiction) for which a Participant may be liable because of the grant of an Award, issue or
transfer of Shares, payment of cash, or the vesting or exercise of an Award (the Amount), the
Company, related body corporate, or trustee may in its discretion:

	 	(a)	 	withhold up to the Amount from any cash payment; and/or
	 
	 	(b)	 	withhold a number of Shares which would otherwise be provided to the
Participant and sell them in order to realise the Amount (with any excess received over
the Amount net of costs of sale being paid to the Participant).

The Company, related body corporate, or trustee may also, either instead of or in addition
to exercising the above discretion:

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	 	(c)	 	accept payment from the Participant of the relevant Amount; or
	 
	 	(d)	 	make acceptable arrangements with the Participant for the Amount to be made
available.

	7	 	Restricted Awards and Restricted Shares

Restrictions

	7.1	 	A Participant must not sell, transfer, grant a Security Interest over or otherwise dispose of
any Restricted Awards or Restricted Shares, or agree to do any of those things, during the
applicable Restriction Period.
	 
	7.2	 	The Company may implement any procedures it considers appropriate to ensure that Restricted
Awards or Restricted Shares are not disposed of during the Restriction Period, including
applying a holding lock in respect of Restricted Shares.
	 
	7.3	 	Without limiting its discretions under these Rules, the Board may at any time in its
discretion waive or shorten the Restriction Period applicable to an Award or a Share.

Bonus issues

	7.4	 	If the Company makes a pro rata bonus issue to holders of Restricted Shares, the Shares
issued to Participants under the pro rata bonus issue will be subject to the balance of the
Restriction Period which applied to the Restricted Shares.

Takeovers

	7.5	 	If a takeover bid is made to acquire all of the issued Shares of the Company, or a scheme of
arrangement, selective capital reduction or other transaction is initiated which has an effect
similar to a full takeover bid for Shares in the Company, then the Board may permit
Participants to accept the takeover bid or participate in the other transaction in respect of
all or part of their Restricted Shares notwithstanding that the Restriction Period in respect
of such Shares has not expired. Further, it is not a breach of these Rules if Restricted
Shares are disposed of by a Participant under laws relating to compulsory acquisition
following a takeover or otherwise in accordance with law or the order of a court.

Personal representatives

	7.6	 	If a Participant dies before the end of the Restriction Period, then the legal personal
representative of that deceased Participant will have the same rights and benefits and be
subject to the same obligations in respect of those Awards or Shares as the deceased
Participant would have had or been subject to had they survived until the end of the
Restriction Period.

	8	 	Adjustments

General

	8.1	 	The following provisions of this clause 8 apply to Awards in respect of events occurring
while they remain unvested.

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	8.2	 	Unless otherwise permitted by the Listing Rules, the number of Shares which the Participant
is entitled to receive on exercise of an Award will only be adjusted in accordance with this
clause 8. The Company must give notice to Participants of any adjustment to the number of
Shares which the Participant is entitled to receive on exercise of an Award in accordance with
the Listing Rules.

New issues

	8.3	 	A Participant is not entitled to participate in a new issue of Shares or other securities
made by the Company to holders of its Shares unless Awards are vested and exercised before the
record date for the relevant issue. Cash Rights confer no right to participate in a new issue
of Shares or other securities made by the Company in any circumstances.

Bonus issues

	8.4	 	If, prior to the exercise of an Award, the Company makes a pro-rata bonus issue to the
holders of its Shares, and the Award is not vested and exercised prior to the record date in
respect of that bonus issue, the Award will, if and when exercised, entitle the Participant
to:

	 	(a)	 	in the case of a Performance Right, RSU or Option — an additional number of
bonus securities which would have been issued to the Participant if the Award had been
exercised prior to the record date; or
	 
	 	(b)	 	in the case of a Cash Right — an additional cash payment representing the
Market Value at the date of exercise of the number of bonus securities which would have
been issued to the Participant if the Award had been a Performance Right and had been
exercised prior to the record date.

Capital returns

	8.5	 	If, prior to the exercise of an Award, the Company makes an equal return of capital to the
holders of its Shares, and the Award is not vested and exercised prior to the record date in
respect of that event, the Award will, if and when exercised, entitle the Participant to:

	 	(a)	 	in the case of a Performance Right, RSU or Option — an additional cash payment
or other distribution which would have been made to the Participant if the Award had
been exercised prior to the record date; or
	 
	 	(b)	 	in the case of a Cash Right — an additional cash payment or the Market Value
at the date of exercise of any other distribution which would have been made to the
Participant if the Award had been a Performance Right and had been exercised prior to
the record date.

Compliance with Listing Rules

	8.6	 	If, prior to the exercise of an Award, the Company undergoes a reorganisation of capital
(other than by way of a bonus issue or issue for cash) the terms of the Awards of the
Participant will be changed to the extent necessary to comply with the Listing Rules as they
apply at the relevant time.

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	9	 	Hedging unvested Awards
	 
	9.1	 	Participants must not enter into transactions or arrangements, including by way of
derivatives or similar financial products, which reduce or limit the economic risk of holding
unvested Awards.
	 
	10	 	Forfeiture
	 
	10.1	 	If the terms of an Award provide that the Award, or a Share issued on exercise or vesting of
the Award, may be forfeited in certain circumstances, then upon forfeiture the Participant
must comply with any request of the Company or the Board to:

	 	(a)	 	transfer the Award or Share to a third party nominated by the Company
(including a trustee appointed for the purposes of this Plan) at no consideration; or
	 
	 	(b)	 	enter into a buy back agreement in relation to the Award or Share under which
it will be acquired by the Company for no consideration.

	10.2	 	The power of attorney provisions of clause 11 apply to any document to be executed under this
clause.

	11	 	Power of attorney
	 
	11.1	 	In consideration of the issue of the Awards, each Participant irrevocably appoints each
director and the secretary for the time being of the Company severally as his or her attorney,
to do all acts and things and to complete and execute any documents, including share
transfers, in his or her name and on his or her behalf that may be convenient or necessary for
the purpose of giving effect to the provisions of these Rules or the terms of an Award. The
Participant (or after his or her death, his or her legal personal representative) will be
deemed to ratify and confirm any act or thing done under this power and to indemnify the
attorney in respect of doing so.

	12	 	Powers of the Board
	 
	12.1	 	The Plan will be administered by the Board, or a committee of the Board (in which case
references in these Rules to the Board are taken to include references to such a committee),
which will have an absolute discretion to:

	 	(a)	 	determine appropriate procedures for administration of the Plan consistent with
these Rules;
	 
	 	(b)	 	resolve conclusively all questions of fact or interpretation arising in
connection with the Plan or these Rules;
	 
	 	(c)	 	delegate to any one or more persons, for such period and on such conditions as
they may determine, the exercise of any of their powers or discretions under the Plan
or these Rules;

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	 	(d)	 	formulate special terms and conditions (subject to the Listing Rules), in
addition to those set out in these Rules to apply to Participants employed and/or
resident in and/or who are citizens of countries other than Australia. Each of these
special terms and conditions will be restricted in their application to those
Participants employed and/or resident in and/or who are citizens of other
jurisdictions; and
	 
	 	(e)	 	amend these Rules, provided that such amendments do not materially prejudice
the rights of existing Participants.

	12.2	 	While the Company is Listed, the Board may only exercise its powers in accordance with the
Listing Rules.
	 
	13	 	Commencement, suspension, termination and amendment of Plan
	 
	13.1	 	Subject to the passing of any necessary resolution approving the establishment of the Plan
and the issue of Awards, the Plan will take effect when the Board decides.
	 
	13.2	 	The Plan may be suspended, terminated or amended at any time by the Board, subject to any
resolution of the Company required by the Listing Rules.
	 
	14	 	General provisions

Participants bound

	14.1	 	Participants issued Awards under this Plan are bound by these Rules and by the Constitution
of the Company.

Notices

	14.2	 	Any notice required to be given by the Company to a Participant or any correspondence to be
made between the Company and a Participant may be given or made by the Board or its delegate
on behalf of the Company.

Effect on employee entitlements

	14.3	 	Participation in the Plan does not affect an Employee’s terms of employment or appointment
with the Company. In particular, participation in the Plan does not detract from any right
the Company may have to terminate the employment or appointment of an Employee.
	 
	14.4	 	Participation in the Plan, or the issuing of any Awards, does not form part of the Employee’s
remuneration for the purposes of determining payments in lieu of notice of termination of
employment, severance payments, leave entitlements, or any other compensation payable to an
Employee upon the termination of employment.

Governing law

	14.5	 	These Rules are governed by and are to be construed in accordance with the laws of New South
Wales.

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