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Unassociated Document

    EXHIBIT
      10.10

    

    FOOTHILLS
      RESOURCES, INC. 

    FORM
      OF REGISTRATION RIGHTS AGREEMENT 

    

    This
      Registration Rights Agreement (this “Agreement”) is made as of September 8, 2006
      by and among Foothills Resources, Inc., a Nevada corporation, (the “Company”),
      each institutional investor listed on Schedule
      1
      hereto
      and Sanders Morris Harris Inc., a Texas corporation (“SMH”), individually and as
      agent and attorney-in-fact for each retail investor listed on Schedule
      2
      hereto
      (each such institutional investor, retail investor and SMH is referred to herein
      individually an “Initial Investor” and, collectively, the “Initial Investors”).

    

    WHEREAS,
      the Company has agreed to issue and sell to the Initial Investors, and the
      Initial Investors have agreed to purchase from the Company, shares (the
“Shares”) of the Company’s common stock, $0.001 par value per share (including
      any securities issued or issuable thereto or into which or for which such shares
      may be exchanged for, or converted into, pursuant to any stock dividend, stock
      split, stock combination, recapitalization, reclassification, reorganization
      or
      other similar event, the “Common Stock”) and warrants (the “Warrants”) to
      purchase shares of Common Stock, at a per-share price and upon the terms and
      conditions set forth in the Securities Purchase Agreement, dated as of the
      date
      hereof, by and between the Company and the Investors (the “Securities Purchase
      Agreement”); and 

    

    WHEREAS,
      the terms of the Securities Purchase Agreement provide that it shall be a
      condition precedent to the closing of the transactions thereunder for the
      Company and the Initial Investors to execute and deliver this Agreement.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements contained
      herein, the parties hereto hereby agree as follows: 

    

    1.
       DEFINITIONS.
      Unless
      the context clearly indicates otherwise, capitalized terms used but not defined
      herein shall have the meanings ascribed to them in the Securities Purchase
      Agreement. The following terms shall have the meanings provided below:

    

    “Affiliates”
means
      any Person that, directly or indirectly, through one or more intermediaries,
      controls, is controlled by, or is under common control with, a Person, as such
      terms are used and construed under Rule 144. 

    

    “Board”
means
      the board of directors of the Company. 

    

    “Business
      Day”
means
      any day except Saturday, Sunday and any day which shall be a federal legal
      holiday or a day on which banking institutions in the State of New York are
      authorized or required by law or other governmental action to close.

    

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and all of the rules and
      regulations promulgated thereunder. 

    
      
        
        

      

      
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    “Investor”
means
      the Initial Investors and any Person holding Registrable Securities or any
      Person to whom the rights under this Agreement have been
      transferred.

    

    “Person”
      (whether or not capitalized) means an individual, partnership, limited liability
      company, corporation, association, trust, joint venture, unincorporated
      organization, and any government, governmental department or agency or political
      subdivision thereof. 

    

    “Prospectus”
means
      the prospectus included in any Registration Statement (including, without
      limitation, a Prospectus that includes any information previously omitted from
      a
      prospectus filed as part of an effective Registration Statement in reliance
      upon
      Rule 430A promulgated under the Securities Act), as amended or supplemented
      by
      any prospectus supplement, with respect to the terms of the offering of any
      portion of the Registrable Securities covered by such Registration Statement,
      and all other amendments and supplements to the Prospectus, including
      post-effective amendments, and all material incorporated by reference in such
      Prospectus. 

    

    “Registrable
      Securities”
means,
      at the relevant time of reference thereto, the Shares, the Warrants and the
      Warrant Shares (including any shares of capital stock that may be issued in
      respect thereof, or into which or for which such Shares, Warrants or Warrant
      Shares may be exchanged for or converted into, pursuant to a stock split, stock
      dividend, recombination, recapitalization, reorganization, reclassification
      or
      the like), provided,
      however,
      that
      the term “Registrable Securities” shall not include any of the Shares or
      Warrants that are actually sold pursuant to either a registration statement
      that
      has been declared effective under the Securities Act by the SEC or Rule 144.
      

    

    “Registration
      Statement”
means
      the Mandatory Registration Statement and any additional registration statements
      contemplated by this Agreement, including (in each case) the Prospectus,
      amendments and supplements to such registration statement or Prospectus,
      including pre- and post-effective amendments, all exhibits thereto, and all
      material incorporated by reference in such registration statement or Prospectus.
      

    

    “Rule
      144”
means
      Rule 144, promulgated under the Securities Act and any successor or substitute
      rule, law or provision. 

    

    “SEC”
means
      the Securities and Exchange Commission. 

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and all of the rules and regulations
      promulgated thereunder. 

    

    “Warrant
      Shares”
means
      the shares of Common Stock issuable upon exercise of or otherwise pursuant
      to
      the Warrants.

     

    
      
        
        

      

      
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    2. MANDATORY
      REGISTRATION.
      

    

    (a) As
      promptly as possible after the date hereof, and in any event prior to the date
      that is 30 days following the Closing Date (the “Mandatory Filing Date”), the
      Company shall prepare and file with the SEC a Registration Statement on Form
      SB-2 (or on such other appropriate form for the required purpose) for the
      purpose of registering under the Securities Act all of the Registrable
      Securities for resale by, and for the account of, each Investor as an initial
      selling stockholder thereunder (the “Mandatory Registration Statement”). The
      Mandatory Registration Statement shall permit the Investors to offer and sell,
      on a delayed or continuous basis pursuant to Rule 415 under the Securities
      Act,
      any or all of the Registrable Securities and shall contain (except if otherwise
      required pursuant to written comments received from the SEC upon a review of
      the
      Mandatory Registration Statement) the “Plan of Distribution” attached hereto as
Annex
      A.
      The
      Company agrees to use its best efforts to cause the Mandatory Registration
      Statement to be declared effective as soon as possible but in no event later
      than the date that is 120 days following the Mandatory Filing Date (or 150
      days
      following the Mandatory Filing Date in the event the Registration Statement
      is
      reviewed by the SEC) (the “Mandatory Effective Date”) (including filing with the
      SEC, within five (5) Business Days of the date that the Company is notified
      (orally or in writing, whichever is earlier) by the SEC that the Mandatory
      Registration Statement will not be “reviewed” or will not be subject to further
      review, a request for acceleration of effectiveness in accordance with Rule
      461
      promulgated under the Securities Act (an “Acceleration Request”), which request
      shall request an effective date that is within three (3) Business Days of the
      date of such request) and will otherwise effect all such registration, obtain
      all such qualifications and comply with all such laws, rules and regulations
      as
      may be necessary to permit the sale, transfer and other disposition of the
      Registrable Securities by the Investors thereof pursuant to the Mandatory
      Registration Statement. The Company shall notify each Investor in writing
      promptly (and in any event within three (3) Business Days) after the Company
      is
      notified by the SEC that the Mandatory Registration Statement has been declared
      effective. The Company shall be required to keep the Mandatory Registration
      Statement and any qualification, exemption or compliance under state securities
      laws which the Company determines to obtain or which the Company obtains at
      the
      request of the Investors continuously effective (including through the filing
      of
      any required post-effective amendments) with respect to the Investors, and
      to
      keep such Mandatory Registration Statement and related Prospectus free of any
      material misstatements or omissions, until the earlier to occur of (i) a date
      after which all of the Registrable Securities registered thereunder shall have
      been sold or (ii) a date after which all of the Registrable Securities
      (excluding such Registrable Securities as are registered pursuant to any other
      effective Registration Statement) are freely tradable without any volume
      limitations by the Investors pursuant to Rule 144(k) promulgated under the
      Securities Act or any successor or substitute rule, law or provision.
      Thereafter, the Company shall be entitled to withdraw the Mandatory Registration
      Statement and, upon such withdrawal, the Investors shall have no further right
      to offer or sell any of the Registrable Securities pursuant to the Mandatory
      Registration Statement (or any Prospectus relating thereto).

    
      
        
        

      

      
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    (b) Notwithstanding
      anything in this Section 2 to the contrary, if the Company shall furnish to
      the
      Investors a certificate signed by the Chief Executive Officer of the Company
      stating that the Board has made the good faith determination (i) that the
      continued use by the Investors of the Mandatory Registration Statement for
      purposes of effecting offers or sales of Registrable Securities pursuant hereto
      would require, under the Securities Act and the rules and regulations
      promulgated thereunder, premature disclosure in the Mandatory Registration
      Statement (or the Prospectus relating thereto) of material, nonpublic
      information concerning the Company, its business or prospects or any proposed
      material transaction involving the Company, (ii) that such premature disclosure
      would be materially adverse to the Company, its business or prospects or any
      such proposed material transaction or would not be in the best interests of
      the
      Company and (iii) that it is therefore essential to suspend the use by the
      Investors, of the Mandatory Registration Statement (and the Prospectus relating
      thereto), then the right of the Investors to use the Mandatory Registration
      Statement (and the Prospectus relating thereto) for purposes of effecting offers
      or sales of Registrable Securities pursuant thereto shall be suspended for
      a
      period (the “Suspension Period”) not greater than fifteen (15) Business Days
      during any consecutive twelve (12) month period. During the Suspension Period,
      the Investors shall not offer or sell any Registrable Securities pursuant to
      or
      in reliance upon the Mandatory Registration Statement (or the Prospectus
      relating thereto). The Company agrees that, as promptly as possible, but in
      no
      event later than one (1) Business Day, after the consummation, abandonment
      or
      public disclosure of the event or transaction that caused the Company to suspend
      the use of the Mandatory Registration Statement (and the Prospectus relating
      thereto) pursuant to this Section 2(b), the Company will as promptly as possible
      lift any suspension, provide the Investors with revised Prospectuses, if
      required, and will notify the Investors of their ability to effect offers or
      sales of Registrable Securities pursuant to or in reliance upon the Mandatory
      Registration Statement. 

    

    (c) It
      shall
      be a condition precedent to the obligations of the Company to register
      Registrable Securities for the account of an Investor pursuant to this Section
      2
      or Section 3 that such Investor furnish to the Company such information
      regarding itself, the Registrable Securities held by it, and the method of
      disposition of such securities as shall be required by the SEC to effect the
      registration of such Investor’s Registrable Securities. 

    

    (d) In
      the
      event that the Mandatory Registration Statement or other required Registration
      Statement is not declared effective by the SEC by the Mandatory Effective Date,
      then the Company shall pay each Investor as liquidated damages for such failure
      and not as a penalty, one percent (1%) of the purchase price set forth in the
      Securities Purchase Agreement (the “Liquidated Damages Amount”), each month for
      such time period beyond the Mandatory Effective Date that such Registration
      Statement is not effective or beyond any applicable Suspension Period (a
“Penalty Period”) (for purposes of clarity, it is hereby understood and agreed
      that, solely for the purpose of this Section 2(d), the deemed purchase price
      for
      each Share is $1.75 and the purchase price of each Warrant underlying each
      Unit
      shall be deemed to be equal to $0.50, provided that the dollar amounts set
      forth
      in this parenthetical clause shall be appropriately adjusted in the event of
      any
      adjustment, pursuant to the terms of the Warrants, in the exercise price of
      the
      Warrants or the number of shares issuable upon exercise of the Warrants);
      provided, however, that the amount payable to any Investor hereunder for any
      partial Penalty Period will not be pro-rated for the number of actual days
      during such Penalty Period during which a registration default remains uncured.
      The Company’s payment of liquidated damages shall be made to each Investor
      within five (5) calendar days after the Penalty Period either, at the Investor’s
      option, (1) in cash or (2) in additional shares of Common Stock of the Company,
      such shares being valued at the average of the volume-weighted average prices
      (“VWAP”s) of the Common Stock as reported by Bloomberg Financial L.P. (based on
      a trading day from 9:30 a.m. to 4:02 p.m. Eastern Time) using the VWAP of the
      Common Stock over the 20 trading days immediately prior to the Mandatory
      Effective Date. The payment of liquidated damages pursuant to this Section
      2(d)
      shall not relieve the Company from its obligations to register the Registrable
      Securities pursuant to this Agreement. If the Company fails to pay liquidated
      damages to a Investor entitled thereto by the applicable date specified herein,
      the Company will pay interest thereon at a rate of 12% per annum (or such lesser
      maximum amount that is permitted to be paid by applicable law) to such Investor,
      accruing daily from the date such liquidated damages are due until such amounts,
      plus all such interest thereon, are paid in full. The total amount of liquidated
      damages payable to the Investors pursuant to this section 2(d), including any
      interest thereon, shall in no event exceed ten percent (10%) of the purchase
      price for the Units (as set forth in the Securities Purchase Agreement).

    
      
        
        

      

      
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      (e)  During
      any Penalty Period, the Company shall not (i) file any other registration
      statement, (ii) file any amendment to any other registration statement, or
      (iii) request acceleration of the effective date of any other registration
      statement registering with the SEC any securities of the Company until the
      Company has cured the condition leading to such Penalty Period, unless such
      filing or request has been approved by the holders of a majority of the
      then-outstanding Registrable Securities; provided, however, that the foregoing
      shall not limit the Company’s right to file or request acceleration of the
      effective date of any other registration statements using Forms S-4 or S-8
      or
      other applicable successor Forms.

    

    3. PIGGYBACK
      REGISTRATION.
      

    

        (a) If
      at any
      time (i) any Registrable Securities are not able to be resold pursuant to an
      effective Registration Statement, or (ii) amounts remain outstanding under
      that
      certain Credit and Guaranty Agreement dated as of August __, 2006 among the
      Company, certain subsidiaries of the Company, various lenders, and J. Aron
&
Company, or (iii) Goldman
      Sachs & Co. and any affiliates thereof is the beneficial owner (as defined
      in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended)
      of more than 5% of the outstanding Shares of the Company, and
      the
      Company proposes to register any of its Common Stock under the Securities Act,
      whether as a result of an offering for its own account or the account of others
      (but excluding any registrations to be effected on Forms S-4 or S-8 or other
      applicable successor Forms), the Company shall, each such time, give, with
      respect to subsection
      (i)
      above,
      to the Investors, and with respect to subsections
      (ii)
      or
(iii)
      above,
      to Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      20
      days’ prior written notice of its intent to do so, and such notice shall
      describe the proposed registration and shall offer such Investors or
Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      as
      applicable, the opportunity to register such number of Registrable Securities
      as
      each such person may request. Upon the written request of any Investor or
Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      as
      applicable, given to the Company within 20 days after the receipt of any such
      notice by the Company, the Company shall include in such Registration Statement
      all or part of the Registrable Securities of such person, to the extent
      requested to be registered. 

    
      
        
        

      

      
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    (b) If
      a
      registration pursuant to Section 3 hereof involves an underwritten offering
      and
      the managing underwriter shall advise the Company in writing that, in its
      opinion, the number of shares of Common Stock requested by the Investors or
      Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      as
      applicable, to be included in such registration is likely to affect materially
      and adversely the success of the offering or the price that would be received
      for any shares of Common Stock offered in such offering, then, notwithstanding
      anything in this Section 3 to the contrary, the Company shall only be required
      to include in such registration, to the extent of the number of shares of Common
      Stock which the Company is so advised can be sold in such offering, (i)
      first, the number of shares of Common Stock requested to be included in such
      registration for the account of any stockholders of the Company (including
      the
      Investors or
      Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      as
      applicable,),
      pro
      rata among such stockholders on the basis of the number of shares of Common
      Stock that each of them has requested to be included in such registration,
      and
      (ii) second, any shares of Common Stock proposed to be included in such
      registration for the account of the Company.
      

    

    (c) In
      connection with any offering involving an underwriting of shares, the Company
      shall not be required under this Section 3 or otherwise to include the
      Registrable Securities of any Investor or Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      as
      applicable, therein unless such Investor or Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares,
      as
      applicable, accepts and agrees to the terms of the underwriting, which shall
      be
      reasonable and customary, as agreed upon between the Company and the
      underwriters selected by the Company. 

    

    4. OBLIGATIONS
      OF THE COMPANY.
      In
      connection with the Company’s registration obligations hereunder, the Company
      shall, as expeditiously as practicable: 

    

    (a)
       Use
      its
      best efforts to diligently prepare and file with the SEC a Registration
      Statement on the appropriate form under the Securities Act with respect to
      the
      Registrable Securities, which form shall comply as to form in all material
      respects with the requirements of the applicable form and include all financial
      statements required by the SEC to be filed therewith, and use its best efforts
      to cause such Registration Statement to become and remain effective until
      completion of the proposed offering;

    

    (b) (i)
      Furnish to each Investor copies of all documents filed with the SEC relating
      to
      the registration of the Registrable Securities prior to their being filed with
      the SEC (and in any event 15 Business Days prior to the filing), and (ii) notify
      the Investors of any stop order issued or threatened by the SEC and use best
      efforts to prevent the entry of such stop order or to remove it if
      entered.

    

    (c) (i)
      Prepare and file with the SEC such amendments and supplements, including
      post-effective amendments, to each Registration Statement and the Prospectus
      used in connection therewith as may be necessary to comply with the Securities
      Act and to keep the Registration Statement continuously effective as required
      herein, and prepare and file with the SEC such additional Registration
      Statements as necessary to register for resale under the Securities Act all
      of
      the Registrable Securities (including naming any permitted transferees of
      Registrable Securities as selling stockholders in such Registration Statement);
      (ii) cause any related Prospectus to be amended or supplemented by any required
      Prospectus supplement, and as so supplemented or amended to be filed pursuant
      to
      Rule 424; (iii) respond as promptly as possible to any comments received from
      the SEC with respect to each Registration Statement or any amendment thereto
      and
      as promptly as possible provide the Investors true and complete copies of all
      correspondence from and to the SEC relating to the Registration Statement (other
      than correspondence containing material nonpublic information); and (iv) comply
      with the provisions of the Securities Act and the Exchange Act with respect
      to
      the disposition of all Registrable Securities covered by such Registration
      Statement as so amended or in such Prospectus as so supplemented.

    
      
        
        

      

      
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    (d) Notify
      the Investors as promptly as possible: (i) when the SEC notifies the
      Company whether there will be a “review” of a Registration Statement and
      whenever the SEC comments in writing on such Registration Statement; and
      (ii) when a Registration Statement, or any post-effective amendment or
      supplement thereto, has become effective, and after the effectiveness thereof:
      (A) of any request by the SEC or any other federal or state governmental
      authority for amendments or supplements to the Registration Statement or
      Prospectus or for additional information; (B) of the issuance by the SEC or
      any
      state securities commission of any stop order suspending the effectiveness
      of
      the Registration Statement covering any or all of the Registrable Securities
      or
      the initiation of any proceedings for that purpose; and (C) of the receipt
      by
      the Company of any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening of
      any
      proceeding for such purpose. Without limitation of any remedies to which the
      Investors may be entitled under this Agreement, if any of the events described
      in Section 4(d)(ii)(A), 4(d)(ii)(B), and 4(d)(ii)(C) occur, the Company shall
      use its best efforts to respond to and correct the event. 

    

    (e) Notify
      the Investors and any underwriter as promptly as possible of the happening
      of
      any event as a result of which the Prospectus included in or relating to a
      Registration Statement contains an untrue statement of a material fact or omits
      any fact necessary to make the statements therein not misleading; and,
      thereafter, the Company will as promptly as possible prepare (and, when
      completed, give notice to each Investor) a supplement or amendment to such
      Prospectus so that, as thereafter delivered to the purchasers of such
      Registrable Securities, such Prospectus will not contain an untrue statement
      of
      a material fact or omit to state any fact necessary to make the statements
      therein not misleading; provided that upon such notification by the Company,
      the
      Investors will not offer or sell Registrable Securities pursuant to such
      Prospectus until the Company has notified the Investors that it has prepared
      a
      supplement or amendment to such Prospectus and delivered copies of such
      supplement or amendment to the Investors (it being understood and agreed by
      the
      Company that the foregoing proviso shall in no way diminish or otherwise impair
      the Company’s obligation to as promptly as possible prepare a Prospectus
      amendment or supplement as above provided in this Section 4(e) and deliver
      copies of same as provided in Section 4(i) hereof), and it being further
      understood that, in the case of the Mandatory Registration Statement, any such
      period during which the Investors are restricted from offering or selling
      Registrable Securities shall constitute a Suspension Period. 

    

    (f) Upon
      the
      occurrence of any event described in Section 4(e) hereof, as promptly as
      possible, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will contain
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in light
      of
      the circumstances under which they are made, not misleading. 

    
      
        
        

      

      
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    (g) Use
      its
      best efforts to avoid the issuance of or, if issued, obtain the withdrawal
      of,
      (i) any order suspending the effectiveness of any Registration Statement or
      (ii) any suspension of the qualification (or exemption from qualification)
      of any of the Registrable Securities for sale in any jurisdiction, as promptly
      as possible (it being understood that, in the case of the Mandatory Registration
      Statement, any period during which the effectiveness of the Mandatory
      Registration Statement or the qualification of any Registrable Securities is
      suspended shall constitute a Suspension Period). 

    

    (h) Furnish
      to each of the Investors, without charge, at least one conformed copy of each
      Registration Statement and each amendment thereto, and all exhibits to the
      extent requested by an Investor (including those previously furnished or
      incorporated by reference) as promptly as possible after the filing of such
      documents with the SEC. 

    

    (i) Furnish
      to each selling Investor, without charge, such number of copies of a Prospectus,
      including a preliminary Prospectus, in conformity with the requirements of
      the
      Securities Act, and such other documents (including, without limitation,
      Prospectus amendments and supplements) as each such selling Investor may
      reasonably request in order to facilitate the disposition of the Registrable
      Securities covered by such Prospectus and any amendment or supplement thereto.
      The Company hereby consents to the use of such Prospectus and each amendment
      or
      supplement thereto by each of the selling Investors in connection with the
      offering and sale of the Registrable Securities covered by such Prospectus
      and
      any amendment or supplement thereto to the extent permitted by federal and
      state
      securities laws and regulations. 

    

    (j) Use
      its
      best efforts to register and qualify (or obtain an exemption from such
      registration and qualification) the Registrable Securities under such other
      securities or blue sky laws of the states of residence of each Investor and
      such
      other jurisdictions as each Investor shall reasonably request, to keep such
      registration or qualification (or exemption therefrom) effective during the
      periods each Registration Statement is effective, and do any and all other
      acts
      or things which may be reasonably necessary or advisable to enable each Investor
      to consummate the public sale or other disposition of Registrable Securities
      in
      such jurisdiction, provided that the Company shall not be required in connection
      therewith or as a condition thereto to qualify to do business or to file a
      general consent to service of process in any such states or jurisdictions where
      it is not then qualified or subject to process. 

    

    (k) Cooperate
      with the Investors to facilitate the timely preparation and delivery of
      certificates representing the Registrable Securities to be delivered to a
      transferee pursuant to a Registration Statement, which certificates shall be
      free, to the extent permitted by the Securities Purchase Agreement and
      applicable law, of all restrictive legends, and to enable such Registrable
      Securities to be in such denominations and registered in such names as such
      Investors may request. 

    
      
        
        

      

      
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    (l) Cooperate
      with any reasonable due diligence investigation undertaken by the Investors,
      any
      managing underwriter participating in any disposition pursuant to a Registration
      Statement, Investors’ counsels and any attorney, accountant or other agent
      retained by Investors or any managing underwriter, in connection with the sale
      of the Registrable Securities, including, without limitation, making available
      any documents and information; provided, however, that the Company will not
      deliver or make available to any Investor material, nonpublic information unless
      such Investor specifically requests and consents in advance in writing to
      receive such material, nonpublic information and, if requested by the Company,
      such Investor agrees in writing to treat such information as
      confidential.

    

    (m) Cause
      the
      Registrable Securities covered by such Registration Statement to be listed
      on
      the securities exchange or quoted on the quotation system on which the Common
      Stock of the Company is then listed or quoted (or if the Common Stock is not
      listed or quoted, then on such exchange or quotation system as the selling
      holders of Registrable Securities and the Company shall determine).

    

    (n) Otherwise
      use its best efforts to comply with all applicable rules and regulations of
      the
      SEC and make generally available to its security holders, in each case as soon
      as practicable, but not later than 30 days after the close of the period covered
      thereby, an earnings statement of the Company which will satisfy the provisions
      of Section 11(a) of the Securities Act and Rule 158 thereunder (or any
      comparable successor provisions).

    

    (o) Otherwise
      cooperate with the SEC and other regulatory agencies and take all actions and
      execute and deliver or cause to be executed and delivered all documents
      necessary to effect the registration of any Registrable Securities under this
      Agreement.

    

    (p) During
      the period when the Prospectus is required to be delivered under the Securities
      Act, promptly file all documents required to be filed with the SEC pursuant
      to
      Sections 13(a), 13(c), 14, or 15(d) of the Exchange Act.

    

    (q) At
      the
      request of an Affiliate of an Investor, the Company shall amend any Registration
      Statement to include such Affiliate as a selling stockholder in such
      Registration Statement. 

    

    (r) Comply
      with all applicable rules and regulations of the SEC in all material respects.
      

    

    5. EXPENSES
      OF REGISTRATION.
      The
      Company shall pay for all expenses incurred in connection with a registration
      pursuant to this Agreement and compliance with Section 4 of this Agreement,
      including without limitation (i) all registration, filing and qualification
      fees
      and expenses (including without limitation those related to filings with the
      SEC, the NASD’s Over-the-Counter Bulletin Board, The Nasdaq Stock Market or any
      national securities exchange upon which the Company’s securities are at such
      time listed and in connection with applicable state securities or blue sky
      laws), (ii) all printing expenses, (iii) all messenger, telephone and delivery
      expenses incurred by the Company, (iv) all fees and disbursements of counsel
      for
      the Company, (v) fees and disbursements of counsel for Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares (not to exceed
      $25,000),
      and (vi)
      all fees and expenses of all other Persons retained by the Company or
Goldman,
      Sachs & Co. and any affiliate thereof that owns Shares
      in
      connection with the consummation of the transactions contemplated by this
      Agreement. In addition, the Company shall be responsible for all of its internal
      expenses incurred in connection with the consummation of the transactions
      contemplated by this Agreement, the expense of any annual audit and audits
      of
      any significant acquisitions required to be included in the applicable
      registration statement.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    

    6. DELAY
      OF REGISTRATION.
      Subject
      to Section 12(g) hereof, the Investors and the Company (other than with respect
      to Section 4(e) hereof) shall not take any action to restrain, enjoin or
      otherwise delay any registration as the result of any controversy which might
      arise with respect to the interpretation or implementation of this Agreement.
      

    

    7. INDEMNIFICATION.
      In the
      event that any Registrable Securities of the Investors are included in a
      Registration Statement pursuant to this Agreement: 

    

    (a) To
      the
      fullest extent permitted by law, the Company will indemnify and hold harmless
      each Investor and each officer, director, fiduciary, agent, investment advisor,
      employee, member (or other equity holder), general partner and limited partner
      (and affiliates thereof) of such Investor, each broker, underwriter or other
      person acting on behalf of such Investor and each person, if any, who controls
      such Investor within the meaning of the Securities Act, against any losses,
      claims, damages or liabilities, joint or several, (the “Losses”) to which they
      may become subject under the Securities Act or otherwise, insofar as such Losses
      (or actions in respect thereof) arise out of or relate to any untrue or alleged
      untrue statement of any material fact contained in the Registration Statement,
      or arise out of or relate to the omission or alleged omission to state therein
      a
      material fact required to be stated therein, or necessary to make the statements
      therein not misleading, or any violation by the Company of the Securities Act
      or
      state securities or blue sky laws applicable to the Company and leading to
      action or inaction required of the Company in connection with such registration
      or qualification under such Securities Act or state securities or blue sky
      laws;
      and, subject to the provisions of Section 7(c) hereof, the Company will
      reimburse on demand such Investor, such broker or other person acting on behalf
      of such Investor or such officer, director, fiduciary, employee, member (or
      other equity holder), manager, general partner, limited partner, affiliate
      or
      controlling person for any legal or other expenses reasonably incurred by any
      of
      them in connection with investigating or defending any such loss, claim, damage,
      liability or action; provided, however, that the indemnity agreement contained
      in this Section 7(a) shall not apply to amounts paid in settlement of any such
      Losses if such settlement is effected without the consent of the Company (which
      consent shall not be unreasonably withheld), nor shall the Company be liable
      in
      any such case for any such loss, damage, liability or action to the extent
      that
      it solely arises out of or is based upon an untrue statement of any material
      fact contained in the Registration Statement or omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, in each case to the extent that such untrue statement
      or
      alleged untrue statement or omission or alleged omission was made in the
      Registration Statement in reliance upon and in conformity with written
      information furnished by such Investor with respect to such Investor expressly
      for use in connection with such Registration Statement. 

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

          
      (b) To
      the
      fullest extent permitted by law, each Investor, severally (as to itself) and
      not
      jointly, will indemnify and hold harmless the Company, each of its directors,
      each of its officers who have signed the Registration Statement, each person,
      if
      any, who controls the Company within the meaning of the Securities Act, against
      any Losses to which the Company or any such director, officer or controlling
      person may become subject to, under the Securities Act or otherwise, insofar
      as
      such Losses (or actions in respect thereto) solely arise out of or are based
      upon any untrue statement of any material fact contained in the Registration
      Statement, or solely arise out of or relate to the omission to state therein
      a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, in each case to the extent that such untrue statement
      or
      alleged untrue statement or omission or alleged omission was made in the
      Registration Statement in reliance upon and in conformity with written
      information furnished by such Investor with respect to such Investor expressly
      for use in connection with such Registration Statement; and, subject to the
      provisions of Section 7(d) hereof, such Investor will reimburse on demand any
      legal or other expenses reasonably incurred by the Company or any such director,
      officer, or controlling person in connection with investigating or defending
      any
      such Losses, provided, however, that the maximum aggregate amount of liability
      of such Investor under this Section 7 shall be limited to the proceeds (net
      of
      underwriting discounts and commissions, if any) actually received by such
      Investor from the sale of Registrable Securities covered by such Registration
      Statement; and provided, further, however, that the indemnity agreement
      contained in this Section 7(b) or 7(e) shall not apply to amounts paid in
      settlement of any such Losses if such settlement is effected without the consent
      of such Investor against which the request for indemnity is being made (which
      consent shall not be unreasonably withheld), and that no selling Investor shall
      be required to indemnify any Person against any liability arising from any
      untrue or misleading statement or omission contained in any preliminary
      Prospectus if such deficiency is corrected in the final prospectus or for any
      liability which arises out of the failure of any Person to deliver a Prospectus
      as required by the Securities Act. 

    

    (c) As
      promptly as possible after receipt by an indemnified party under this Section
      7
      of notice of the threat, assertion or commencement of any action, such
      indemnified party will, if a claim in respect thereof is to be made against
      any
      indemnifying party under this Section 7, notify the indemnifying party in
      writing of the commencement thereof and the indemnifying party shall have the
      right to participate in and, to the extent the indemnifying party desires,
      jointly with any other indemnifying party similarly noticed, to assume at its
      expense the defense thereof with counsel mutually satisfactory to the parties;
      provided, however, that, the failure to notify an indemnifying party promptly
      of
      the threat, assertion or commencement of any such action shall not relieve
      such
      indemnifying party of any liability to the indemnified party under this Section
      7 except (and only) to the extent that it shall be finally determined by a
      court
      of competent jurisdiction (which determination is not subject to appeal or
      further review) that such failure shall have proximately and materially
      adversely prejudiced the indemnifying party. 

    

    (d) If
      any
      indemnified party shall have reasonably concluded that there may be one or
      more
      legal defenses available to such indemnified party which are different from
      or
      additional to those available to the indemnifying party, or that such claim
      or
      litigation involves or could have an effect upon matters beyond the scope of
      the
      indemnity agreement provided in this Section 7, the indemnifying party shall
      not
      have the right to assume the defense of such action on behalf of such
      indemnified party, and such indemnifying party shall reimburse such indemnified
      party and any person controlling such indemnified party for the fees and
      expenses of counsel retained by the indemnified party which are reasonably
      related to the matters covered by the indemnity agreement provided in this
      Section 7. Subject to the foregoing, an indemnified party shall have the right
      to employ separate counsel in any such action and to participate in the defense
      thereof but the fees and expenses of such counsel shall not be at the expense
      of
      the Company. 

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    

    (e) If
      the
      indemnification provided for in this Section 7 from the indemnifying party
      is
      applicable by its terms but unavailable to an indemnified party hereunder in
      respect of any Losses, then the indemnifying party, in lieu of indemnifying
      such
      indemnified party, shall, subject to the maximum aggregate liability of any
      Investor as set forth in Section 7(b), contribute to the amount paid or payable
      by such indemnified party as a result of such losses, claims, damages,
      liabilities or expenses in such proportion as is appropriate to reflect the
      relative fault of the indemnifying party and indemnified party in connection
      with the actions which resulted in such losses, claims, damages, liabilities
      or
      expenses, as well as any other relevant equitable considerations. The relative
      faults of such indemnifying party and indemnified party shall be determined
      by
      reference to, among other things, whether any action in question, including
      any
      untrue or alleged untrue statement of a material fact or omission or alleged
      omission to state a material fact, has been made by, or relates to information
      supplied by, such indemnifying party or indemnified party, and the parties’
relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such action. The amount paid or payable by a party as a result of the
      losses, claims, damages, liabilities and expenses referred to above shall be
      deemed to include, subject to the limitations set forth in Sections 7(a), 7(b),
      7(c) and 7(d), any legal or other fees, charges or expenses reasonably incurred
      by such party in connection with any investigation or proceeding. No person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any person. The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 7(e) were determined by pro rata allocation or by
      any
      other method of allocation which does not take account of the equitable
      considerations referred to in the immediately preceding paragraph. 

    

    (f) The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that any indemnifying party may have to any indemnified party.
      

    

    8. REPORTS
      UNDER THE EXCHANGE ACT.
      With a
      view to making available to the Investors the benefits of Rule 144 and any
      other
      rule or regulation of the SEC that may at any time permit the Investors to
      sell
      the Registrable Securities to the public without registration, the Company
      agrees to use best efforts to: (i) make and keep public information available,
      as those terms are understood and defined in Rule 144, (ii) file with the SEC
      in
      a timely manner all reports and other documents required to be filed by an
      issuer of securities registered under the Securities Act or the Exchange Act;
      (iii) as long as any Investor owns any Shares, Warrants or Warrant Shares,
      to
      furnish in writing upon such Investor’s request a written statement by the
      Company that it has complied with the reporting requirements of Rule 144 and
      of
      the Securities Act and the Exchange Act, and to furnish to such Investor a
      copy
      of the most recent annual and quarterly reports of the Company, and such other
      reports and documents so filed by the Company as may be reasonably requested
      in
      availing such Investor of any rule or regulation of the SEC permitting the
      selling of any such Shares, Warrants or Warrant Shares without registration,
      and
      (iv) undertake any additional actions reasonably necessary to maintain the
      availability of a Registration Statement, including any successor or substitute
      forms, or the use of Rule 144. 

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    

    9. TRANSFER
      OF REGISTRATION RIGHTS.
      Each
      Investor may assign or transfer any or all of its rights under this Agreement
      to
      any Person, provided such assignee or transferee agrees in writing to be bound
      by the provisions hereof that apply to such assigning or transferring Investor.
      Upon any such, and each successive, assignment or transfer to any permitted
      assignee or transferee in accordance with the terms of this Section 9, such
      permitted assignee or transferee shall be deemed to be an “Investor” for all
      purposes of this Agreement. 

    

    10. ENTIRE
      AGREEMENT.
      This
      Agreement constitutes and contains the entire agreement and understanding of
      the
      parties with respect to the subject matter hereof, and it also supersedes any
      and all prior negotiations, correspondence, agreements or understandings with
      respect to the subject matter hereof. 

    

    11. MISCELLANEOUS.
      

    

    (a) This
      Agreement, and any right, term or provision contained herein, may not be
      amended, modified or terminated, and no right, term or provision may be waived,
      except with the written consent of the Company and the holders of a majority
      of
      the then outstanding Registrable Securities; provided that any amendment or
      modification that is materially and disproportionately adverse to any particular
      Investor (as compared to all Investors as a group) shall require the consent
      of
      such Investor. 

    

    (b) This
      Agreement shall be governed by and construed and enforced in accordance with
      the
      laws of the State of New York without regard to conflict of law principles.
      This
      Agreement shall be binding upon the parties hereto and their respective heirs,
      personal representatives, successors and permitted assigns and transferees,
      provided that the terms and conditions of Section 9 hereof are satisfied.
      Notwithstanding anything in this Agreement to the contrary, if at any time
      any
      Investor (including any successors or assigned) shall cease to own any
      Registrable Securities, all of such Investor’s rights under this Agreement shall
      immediately terminate. 

    

    (c) Each
      party hereby irrevocably and unconditionally (i) agrees that any suit, action
      or
      other legal proceeding arising out of this Agreement shall be brought in a
      state
      court located in New York, New York; (ii) consents to the jurisdiction of any
      such court in any suit, action or proceeding; and (iii) waives any objection
      which such party may have to the laying of venue of any such suit, action or
      proceeding in any such court.

    

    (d) Each
      of
      the Company and the Investor hereby waives any right to a trial by jury in
      any
      lawsuit, action, claim or proceeding to enforce or defend any right under this
      Agreement or any amendment, instrument, document or agreement delivered or
      to be
      delivered in connection with this Agreement and agrees that any lawsuit, action,
      claim or proceeding will be tried before a court and not before a
      jury.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    (e) Any
      notices to be given pursuant to this Agreement shall be in writing and shall
      be
      given by certified or registered mail, return receipt request. Notices shall
      be
      deemed given when personally delivered or when mailed to the addresses of the
      respective parties as set forth on Exhibit
      A,
      Schedule
      1
      or
Schedule
      2
      hereto,
      as applicable, or to such changed address of which any party may notify the
      others pursuant hereto, except that a notice of change of address shall be
      deemed given when received. An electronic communication (“Electronic Notice”)
      shall be deemed written notice for purposes of this Section 11(e) if sent with
      return receipt requested to the electronic mail address specified by the
      receiving party on Exhibit
      A,
      Schedule
      1
      or
Schedule
      2
      hereto,
      as applicable. Electronic Notice shall be deemed received at the time the party
      sending Electronic Notice receives verification of receipt by the receiving
      party.

    

    (f)
       The
      parties acknowledge and agree that in the event of any breach of this Agreement,
      in addition to other rights granted under this Agreement or at law, each of
      the
      parties hereto shall be entitled to specific performance of the obligations
      of
      the other parties hereto and to such appropriate injunctive relief as may be
      granted by a court of competent jurisdiction. All remedies, either under this
      Agreement or by law or otherwise afforded to any of the parties, shall be
      cumulative and not alternative. 

    

    (g) This
      Agreement may be executed in a number of counterparts. All such counterparts
      together shall constitute one Agreement, and shall be binding on all the parties
      hereto notwithstanding that all such parties have not signed the same
      counterpart. The parties hereto confirm that any facsimile copy of another
      party’s executed counterpart of this Agreement (or its signature page thereof)
      will be deemed to be an executed original thereof. 

    

    (h) Except
      as
      contemplated in Section 9 hereof, this Agreement is intended solely for the
      benefit of the parties hereto and is not intended to confer any benefits upon,
      or create any rights in favor of, any Person (including, without limitation,
      any
      stockholder or debt holder of the Company) other than the parties hereto;
      provided, however, that each retail investor listed on Schedule
      2
      hereto
      is entitled to all rights and benefits of an “Initial Investor” under this
      Agreement. 

    

    (i) If
      any
      provision of this Agreement is invalid, illegal or unenforceable, such provision
      shall be ineffective to the extent, but only to the extent of, such invalidity,
      illegality or unenforceability, without invalidating the remainder of such
      provision or the remaining provisions of this Agreement, unless such a
      construction would be unreasonable. 

    

    

    [Signature
      Pages Follow]

    

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Registration Rights
      Agreement as of the date and year first above written. 

    

    

    

    

      
        	 	
                FOOTHILLS
                  RESOURCES, INC.

              
	 	 
	 	 
	 	 
	 	
                By:     
                  __________________________________

              
	 	
                Dennis
                  B. Tower

              
	 	
                Chief
                  Executive Officer

              

      

    

     

    

    

    

    

    [SIGNATURE
      PAGE TO THE REGISTRATION RIGHTS AGREEMENT]

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

      

      
        	 	
                Investors
                  Listed on Schedule 1

              
	 	 
	 	 
	 	 
	 	
                ____________________________________

              
	 	
                [Name
                  of Investor]

              
	 	 
	 	
                By:
                  ________________________________________

              
	 	 
	 	
                Name:
                  ______________________________________

              
	 	 
	 	
                Title:
                  _______________________________________

              

      

    

     

    

    

    [SIGNATURE
      PAGE TO THE REGISTRATION RIGHTS AGREEMENT]

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    

      
        	 	
                Investors
                  Listed on Schedule 2

              
	 	 
	 	 
	 	 
	 	
                _______________________________

              
	 	
                John
                  H. Malanga, Attorney-in-Fact

              

      

    

    

     

    

    

    

    

    [SIGNATURE
      PAGE TO THE REGISTRATION RIGHTS AGREEMENT]

    

    

    
      
        
        

      

        17exv4w1

 

Exhibit 4.1

Dated the           th day of            2006

The Governor and Company of the Bank of Ireland

and

the Trustees as defined within

DEED OF AMENDMENT and RULES

of the

BANK OF IRELAND GROUP

STAFF STOCK ISSUE — 2006 SCHEME

 

 

THIS
DEED OF AMENDMENT is made the
          th
day           of
          2006

 

BETWEEN

	(1)	 	The Governor and Company of the Bank of Ireland whose head office is situated at Lower Baggot
Street, Dublin 2, (hereinafter in this Deed called “the
Bank”); and

	(2)	 	Giles Kerr of Bank of Ireland, Head Office, Lower Baggot Street, Dublin 2; and John Clifford
of Bank of Ireland, Head Office, Lower Baggot Street, Dublin 2; and Brendan Whelan of Bank of
Ireland, Head Office, Lower Baggot Street, Dublin 2 (hereinafter in this Deed and the Rules
called the “Trustees” which expression where the context so admits shall include the survivor
or survivors of them or any other or others being the trustee or trustees for the time being
hereof).

WHEREAS:

	A.	 	By a resolution of the Annual General Court of the Bank held on the 2nd day of
July 1997 authority was given to the Court of Directors to establish the Bank of Ireland Group
Employee Stock Issue Scheme — 1997 (the 1997 Scheme) and on 30 April 1998 the Bank, the then
participating companies and the then trustees executed a deed (the Principal Deed) in
connection with that scheme.
	 
	B.	 	The Principal Deed has been amended from time to time.

	C.	 	Under clause 16 of the Principal Deed the Bank and the Trustees may at any time amend the
Principal Deed subject to the prior written approval of the Revenue Commissioners. The Bank
and the Trustees wish to amend the Principal Deed and incorporate these amendments, together
with all amendments made to the Principal Deed to date, into a consolidated deed (this Deed).

	D.	 	By a resolution of the Annual General Court of the Bank held on the [21st] day of
July 2006 the Bank resolved to replace the 1997 Scheme with a new scheme, the Bank of Ireland
Group Staff Stock Issue — 2006 Scheme and this Deed and schedule shall give effect to such
resolution.

	E.	 	It is intended that the said scheme shall be an approved scheme within the meaning of Chapter
1, Part 17 of the Taxes Consolidation Act 1997 and Schedule 11 to that Act as amended or
re-enacted from time to time and constituting an Employees’ Share Scheme, the purpose of which
is to provide funds to the Trustees to enable

2

 

	 	 	them to acquire Ordinary Stock in the capital of the Bank and subsequently to appropriate
the said Stock to Eligible Employees of any Participating Company.

	F.	 	The Trustees wish to declare the trusts upon which they will act and the Bank and the other
Participating Companies have agreed to join in this Deed for the purposes mentioned herein.

NOW THIS DEED WITNESSES as follows:

Pursuant to the resolution in recital D hereof and clause 16 of the Principal Deed and with
effect from the date of this Deed the 1997 Scheme shall be renamed the Bank of Ireland Group
Employee Stock Issue — 2006 Scheme and the clauses of the Principal Deed and the schedule to the
Principal Deed shall be deleted and replaced by clauses 1 to 22 and the schedule hereto.

	1	 	Interpretation

In this Deed unless the context otherwise requires words and expressions which are used and which
are more particularly defined in the rules set out in the schedule hereto (“Rules”), or as amended
from time to time as therein provided, shall bear the same meanings as in the Rules when used
herein.

	2	 	Participating Companies’ Covenants

The Participating Companies shall make available to the Trustees such sums as are appropriate under
Rule 2.2.

	3	 	Trustees’ Covenants

Any sums paid by the Participating Companies to the Trustees as aforesaid shall be held by the
Trustees UPON TRUST to apply the same in purchasing and/or subscribing for Stock to be appropriated
to Members in accordance with the Rules. Any unappropriated assets remaining in the hands of the
Trustees at the end of the Trust Period (as defined in Clause 17 hereof) shall be returned in cash
to the Participating Companies in such proportions as shall be deemed just and equitable by the
Trustees having regard to the contributions of each of the Participating Companies.

3

 

	4	 	Conditions as to the Trustees

	4.1	 	Number of Trustees

The maximum number of Trustees shall be five and the minimum number of Trustees shall be three
unless a body corporate shall be appointed as sole Trustee hereof or as one of two or more
Trustees.

	4.2	 	Location of Trustees

The Trustees shall be resident in Ireland for all purposes.

	4.3	 	Resignation of Trustees

A Trustee may resign at any time upon giving to the Bank not less than three months’ written notice
(or such shorter notice as the Bank may accept) without assigning any reason and without being
responsible for any costs occasioned by such retirement.

	4.4	 	Removal of Trustees

	4.4.1	 	The Bank may at any time subject to the prior written approval of the Revenue Commissioners
by deed supplemental to this Deed in its absolute discretion and without assigning any reason
therefor remove a Trustee from office or appoint new or additional Trustee(s).

	4.4.2	 	When a Trustee resigns or is removed from office he shall forthwith do all acts and things
necessary to vest the assets of the Scheme in the joint names of the continuing and/or new
Trustees.

	4.5	 	Independence of Trustees

The Bank hereby declares and confirms the independence of the Trustees in the exercise of all their
functions and obligations under the Scheme and undertakes that it shall not seek to influence them
in any manner.

	5	 	Trust Expenses and Trustee Remuneration

	5.1	 	The Participating Companies shall pay or reimburse to the Trustees upon demand in such
proportions as the Trustees shall determine to be equitable all charges and expenses
reasonably incurred by the Trustees in the establishment of the Scheme and

4

 

	 	 	in the course of the administration of the trusts of this Deed including the remuneration (if
any) from time to time payable to any Trustee hereof for acting as such under clauses 5.2,
5.3 or 5.4 below.

	5.2	 	Any individual Trustee shall be entitled to receive and to retain as remuneration for his
services hereunder such sum or sums as the Bank may from time to time agree shall be paid to
him therefor (unless he is an officer or employee of a Participating Company or any company
associated with it) and he shall not be disqualified from voting or taking part in any
decision of the Trustees on any matter by virtue of any personal and beneficial interest
(actual or prospective) therein unless material.

	5.3	 	Any Trustee being a solicitor, accountant, stockbroker or other person engaged in any
profession or business shall be entitled to be paid all usual professional or proper charges
as may be agreed in writing with the Bank from time to time for business transacted, time
expended and acts done by him or any employee or partner of his firm in connection with this
Deed including acts which a Trustee not being in any profession or business could have done
personally.

	5.4	 	Any Trustee being a body corporate (whether or not a trust corporation) may charge and be
paid such reasonable remuneration or charges as shall from time to time be agreed in writing
between the Bank and such body corporate and any such body corporate being a bank or other
financial institution shall be entitled (without accounting for any resultant profit) to act
as banker and to perform any services in relation to this Deed on the same terms as would be
made with a customer in the ordinary course of its business as a banker or other financial
institution.

	6	 	Trustees Indemnified

	6.1	 	No Trustee for the time being of the Scheme and no director or employee of any corporate
trustee shall be responsible chargeable or liable in any manner whatsoever for or in respect
of any loss of or any depreciation in or default upon any of the investments securities stocks
or policies in or upon which any part of the Scheme may at any time be invested or for any
delay which may occur from whatever cause in the investment of any moneys belonging thereto or
for the safety of any securities or documents of title deposited by the Trustees for safe
custody or for the exercise of any discretionary power vested in the Trustees by the Trust
Deed (including any act or omission by any committee appointed by the Trustees) or by reason
of any other matter or thing except fraud, deliberate culpable disregard of the interests of
all or of any of the beneficiaries under the Scheme, or negligence, breach of duty or want of
skill, care or diligence on the part of any Trustee.

5

 

	6.2	 	Each of the Trustees and each director of any corporate trustee shall be indemnified jointly
and severally by the Bank and any other Participating Company against all liabilities incurred
by such Trustee in the execution of the trusts of and in the management and administration of
the Scheme other than liabilities arising as a consequence of fraud or deliberate and culpable
disregard of the interests of all or any of the beneficiaries under the Scheme or negligence,
breach of duty or want of skill, care or diligence on the part of any Trustee.

	6.3	 	Any Trustee who is engaged in the business of providing a trustee service for a fee shall, if
it has not already done so, undertake to ensure that it and any person or corporate body to
whom functions are delegated under Clause 9, has valid professional indemnity insurance cover,
for as long as that Trustee is engaged in the business of providing a trustee service for a
fee in respect of the Scheme.

	7	 	Trustees’ Interests in the Scheme

	7.1	 	A person shall not be disqualified from acting as a Trustee hereof by reason of the fact that
he is or has been a Member, or a director or employee of a Participating Company or any
company associated with it; or being a corporate trustee is itself a subsidiary of or
associated with a Participating Company nor shall he or it be accountable for any benefit
received by him, or any employee of it under the Scheme.

	7.2	 	No decision of or exercise of a power by the Trustees will be invalidated or questioned on
the ground that the Trustees or any individual Trustee or any member of the board of directors
of a corporate Trustee had a direct or personal interest as a beneficiary under the Scheme in
the result of any such decision or in the exercising of any such power.

	8	 	Participating Companies to Supply Information

Each Participating Company will supply to Trustees in writing with any information reasonably
required by them for the purposes of the Scheme. The Trustees shall be entitled to rely without
further enquiry on all information supplied to them by the Participating Companies.

	9	 	Trustee Powers

The Trustees shall have the following powers and discretions in addition to those conferred upon
them by the general law.

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	9.1	 	Subject to Clause 4.5, full power and discretion to agree with the Bank all matters relating
to the operation and administration of the trusts of this Deed and so that no person claiming
any interest under such trusts shall be entitled to question the legality and correctness of
any arrangement or agreement made between the Bank and the Trustees in relation to such
operation and administration.

	9.2	 	Power to arrange for any Participating Company to account to the Revenue Commissioners or
other authority concerned for any amounts deducted from payments made pursuant to this Deed in
respect of income tax and other deductions required by law.

	9.3	 	Power by resolution:

	9.3.1	 	To authorise the manner in which cheques and other documents shall be signed on
their behalf, and

	9.3.2	 	To delegate the signing of such cheques and documents to such person or persons
as they shall think fit.

	9.4	 	The Trustees may from time to time appoint for the proper administration and management of
the Scheme, such secretarial or executive officers or staff as they consider desirable, on
such terms as they think fit.

	9.5	 	A Trustee hereof being a body corporate (whether or not a trust corporation) may in its
capacity as Trustee hereof act by its proper officers or employees and may by such proper
officers or employees have and exercise all powers, trusts and discretions vested in it
hereunder.

	9.6	 	The Trustees shall be entitled to procure that any one or more of them may be registered as
holder of any Scheme Stock held by them upon the trusts of this Deed.

	9.7	 	The Trustees may act on the advice or opinion of any lawyer, broker, actuary, accountant or
other professional or business person whether such advice was obtained by the Trustees or by
the Bank or any other Participating Company. The Trustees may choose whether to act or not
act on such advice or opinion and shall not be responsible for any loss occasioned by their so
acting or not acting.

	9.8	 	The Trustees may employ any agent or agents to transact all or any business of whatsoever
nature required to be done in the administration of the trusts, powers and provisions hereof
(including the receipt and payment of money and the purchase and

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	 	 	appropriation of Stock) and the Trustees shall not be responsible for the default of or any
loss caused by the employment of any such agent or agents. Such delegation may be made upon
such terms and conditions, including power to sub-delegate, and subject to such regulations
as the Trustees may think fit.

	9.9	 	The Trustees may at any time cause any part of the trust property and the Scheme Stock to be
held on their behalf by a nominee or deposited for safekeeping with any one or more of the
Trustees or a custodian or any other persons (including any company or corporation) on behalf
of the Trustees on such terms as the Trustees determine including the power for any custodian
to appoint a sub-custodian, and may cause any part of the trust property and the Scheme Stock
comprised of shares or shares to be held in bearer, certificated or uncertificated form and
the Trustees may pay any expenses in connection therewith;

	10	 	Trustees’ Meetings and Resolutions

So long as a body corporate shall not be the sole trustee hereof:

	10.1	 	Subject to clause 10.8 the Trustees (which in this Clause shall include the duly authorised
officer of a body corporate which is a trustee) may meet together for the dispatch of
business, adjourn and otherwise regulate their meetings as they think fit and may determine
provided all meetings shall be held in Ireland. The chairman of every meeting of the Trustees
shall be elected by the meeting. The quorum for any meeting shall be a majority of the
Trustees and questions arising shall be decided by a majority of votes and in case of equality
of votes the chairman of the meeting shall have a second or casting vote.

	10.2	 	Any Trustee may participate in a meeting of the Trustees by means of a conference telephone
or similar communicating equipment whereby all persons participating in the meeting can hear
each other, and participation in a meeting in this manner will be deemed to constitute
presence in person at such meeting but, for the purposes of determining whether the quorum for
the transaction of business exists, any Trustee in telephonic communication with a meeting of
Trustees will not be counted in the quorum.

	10.3	 	Subject to clause 10.8 a resolution in writing signed by all the Trustees for the time being
shall be as valid and effectual as a resolution passed at a meeting of the Trustees. Such
resolution may be contained in one document or in several documents in like form each signed
by one or more of the Trustees which, when taken together,

8

 

	 	 	have been signed by the majority of Trustees. Such resolutions shall be entered in the Minute
Book referred to in clause 10.5.

	10.4	 	Subject to clause 10.8 a meeting of the Trustees at which a quorum is present shall be
competent to exercise all the powers and discretions exercisable by the Trustees generally.

	10.5	 	The Trustees shall cause proper minutes to be kept and entered in a book (“Minute Book”)
provided for the purpose of all their resolutions and proceedings and any such minutes of any
meeting of the Trustees if purported to be signed by the chairman of such meeting or by the
chairman of the next succeeding meeting shall be admissible as prima facie evidence of the
matters stated in such minutes.

	10.6	 	Valid and effectual receipts and discharges for any monies or other property payable,
transferable or deliverable to the Trustees or any of them may be given by any one Trustee or
by any person from time to time authorised in writing for the purpose by the Trustees.

	10.7	 	Subject to clause 10.8 the Trustees may from time to time delegate any business to any one or
more of their number.

	10.8	 	Notwithstanding the foregoing where a decision relates to approving any alterations to the
provisions of the Scheme or the delegation by the Trustees of any of their powers (including,
for the avoidance of doubt, the operation of any bank account) the Trustees’ decision (whether
passed at a Trustees meeting or by written resolution) must be unanimous.

	10.9	 	A resolution in writing will be valid whether delivered by post, facsimile or electronic
mail. In the case of a resolution by way of electronic mail, such resolution will be treated
as if it were a resolution signed by the Trustees notwithstanding that no signature appears on
the communication.

	11	 	Dissenting Trustees to Act with Majority

Each of the powers and discretions hereby or by law vested in the Trustees will, subject as
expressly provided herein, be an absolute discretion or power and, if at any time there are more
than two Trustees, will (subject to clause 10.8) be exercisable by a simple majority in number of
the Trustees for the time being, and any Trustee who dissents from any exercise of any such power
will nevertheless, though without being responsible for loss, concur in

9

 

executing or signing any deed or document and in doing any act necessary for giving effect to the
exercise of such power or discretion by the majority of the Trustees.

	12	 	Trustees to Comply with the Act

The Trustees shall at all times comply with the provisions of Part 5 of Schedule 11 to the Act.

	13	 	Record Keeping

Subject to their obligations under paragraph 18 of Schedule 11 to the Act, the Trustees shall
make arrangements with the Bank whereby the Bank and/or any other Participating Company will on
behalf of the Trustees prepare and keep all necessary accounts (including the accounts of
individual employees), records and other documents in connection with the trusts of the Scheme and
generally ensure that all administrative work in connection therewith is carried out and the Bank
hereby covenants with the Trustees that it and/or any other Participating Company will fully and
accurately prepare and keep the accounts, records and documents and carry out the aforesaid work
and shall make available to the Trustees all facilities and information necessary to ensure that
full compliance is made with the provisions of the trusts of this Deed.

	14	 	Residual Funds

	14.1	 	Any monies at any time held during the Trust Period by the Trustees and not immediately
required by them for the purpose of this Scheme may be applied as follows:

	 	14.1.1	 	Placed on deposit (with or without interest) with any bank or other deposit taking
institution in Ireland as the Trustees may determine;
	 
	 	14.1.2	 	to purchase and/or subscribe for Stock as soon as practicable under the terms of the
Scheme;
	 
	 	14.1.3	 	to meet administration expenses of the Scheme, or
	 
	 	14.1.4	 	may be repaid to the Bank or any other Participating Companies in such proportions as
the Trustees in their discretion determine.

	14.2	 	Any Stock held any time during the Trust Period by the Trustees and not immediately required
by them for the purpose of this Scheme may be applied as follows:

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	 	14.2.1	 	in appropriating Stock to Eligible Employees as soon as practicable under the terms of
the Scheme, or
	 
	 	14.2.2	 	the Stock may be sold and applied as set out in rules 14.1.1, 14.1.3 or 14.1.4 above.

	15	 	Taxation

The Trustees shall be liable for any liability to tax, properly incurred by the Trustees in the
course of the operation of the Scheme.

	16	 	Amendments

Subject to the prior written approval of the Revenue Commissioners under paragraph 5(2) of Part 2
of Schedule 11 to the Act the Bank and the Trustees may at any time by a deed supplemental hereto
modify, alter, amend or extend all or any of the provisions of this Deed (including the schedule
hereto) in accordance with Rule 13 provided that no such purported modification, alteration,
amendment or extension shall be effective insofar as it alters the provisions of this Clause or
extends the operation of the Scheme beyond the Trust Period described in Clause 17 hereof.

	17	 	Trust Period

The Trust Period applicable to any dispositions made by or pursuant to this Deed will commence on
the date hereof and ending on the earlier of

	17.1	 	the expiration of 20 years after the death of the last survivor of the issue living on the
date hereof of his late Britannic Majesty King George VI unless there has been legislation
prior to the end of such period making it lawful for the trusts of the Scheme to continue or
the Scheme has been registered under the Perpetual Funds (Registration) Act, 1933; or

	17.2	 	the Release Date referable to the Appropriation Date, if any, co-incident with or immediately
preceding the Bank goes into liquidation (otherwise than for the purposes of a reconstruction
or amalgamation in such circumstances that substantially the whole of the undertaking, assets
and liabilities of the Bank pass to a successor company); or

	17.3	 	Such date as the Bank with the agreement of the Trustees may by deed declare to be the end of
the Trust Period.

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	18	 	Termination of Scheme

	18.1	 	The Bank may at any time serve notice on the Trustees of its intention to terminate the
Scheme whereupon the Participating Companies shall be liable for no further contributions to
the Scheme save those falling due under the Rules within three months after the date of the
said notice and any other expenses incurred by the Trustees in the further administration and
winding up of the Scheme.

	18.2	 	Upon termination of the Scheme, any Scheme Stock registered in the names of the Trustees (or
their nominee) to which any Member is absolutely entitled will be transferred to such Member
provided this would not be in breach of chapter 1 of part 17 and schedule 11 to the Act.

	18.3	 	Any Stock held by the Trustees which at the date of termination have not been appropriated to
Eligible Employees will be sold by the Trustees. The proceeds of sale, and the other assets
representing the trust property, after meeting such expenses of the Trust in relation to such
sale and associated administration expenses, will be transferred to the Participating
Companies in such proportions as the Trustees may decide.

	19	 	Interpretation

Subject to clauses 4.5 and 22, and subject to any prior written approval of the Revenue
Commissioners required under paragraph 5(2) of Part 2 of Schedule 11 to the Act, if any matter
arises on or in connection with this Deed or its operation for which specific provision is not made
herein or in any deed supplemental hereto or in the Rules such matter shall be resolved, dealt with
or provided for in such manner as the Bank shall in its absolute discretion consider appropriate
after taking into account the respective interests of any Participating Company and of the Members.

	20	 	Additional Participating Companies

A Subsidiary of the Bank may by deed supplemental hereto be admitted to participate in the Scheme
to the effect that such Subsidiary shall be bound by the provisions hereof and of the Rules as a
Participating Company and its employees shall be eligible to become Members in accordance with the
Rules.

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	21	 	Ceasing to be a Participating Company

	21.1	 	A company will cease to be a Participating Company for the purposes of the Scheme as follows:

	 	21.1.1	 	as from the date on which it ceases to be a Subsidiary; or
	 
	 	21.1.2	 	on such other date agreed by the Bank and the Trustees in which event the
Participating Company (the “Withdrawing Company”) may by deed supplemental hereto, such
deed having been approving in writing by the Revenue Commissioners, withdraw from the
Scheme and its employees shall cease to be eligible to participate in the Scheme from
that date forward in accordance with the Rules provided that any Units of Stock already
allocated to such employees shall remain allocated to such employees. The Withdrawing
Company shall no longer be liable for contributions to the Scheme save those falling due
under the Rules within three months after the date of the said deed of withdrawal and
any expenses reasonably incurred by the Trustees in the further administration or in
the winding up of the Scheme in the period of five years after the date of withdrawal of
the Withdrawing Company from the Scheme and which the Trustees determine in their
absolute discretion ought reasonably to be allocated to the Withdrawing Company.

	22	 	Governing Law

This Deed and the Rules shall be governed by and construed in accordance with the laws of Ireland.
The Courts of Ireland are to have jurisdiction in relation to any claim or proceedings arising
under or in relation to this Deed and the Rules or their interpretation and to settle any dispute
arising out of or in connection with this Deed and the Rules.

IN WITNESS whereof the Bank and the Trustees have hereunto set their hands and seals the day and
year first above written.

PRESENT when the common seal of

The Governor and Company of the Bank of Ireland was

hereunto affixed:

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SIGNED SEALED and DELIVERED

by the said Giles Kerr

in the presence of:

SIGNED SEALED and DELIVERED

by the said John Clifford

in the presence of:

SIGNED SEALED and DELIVERED

by the said [ ]

in the presence of:

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SCHEDULE

THE RULES OF

BANK OF IRELAND GROUP STAFF STOCK ISSUE — 2006 SCHEME

(the “RULES”)

	1	 	Definitions

In this Scheme the words and expressions set out below shall have the meaning specified unless
otherwise specifically provided and references to legislation refer to Acts of the Oireachtas and
any references to a provision of an Act of the Oireachtas shall include any amendment,
modification, re-enactment or extension of it for the time being in force.

	 	 	 	 	 	 	 
	“Accounting Period”	 	Any period in respect of which the Bank prepares an
annual report and financial statements.
	 
	the “Act”	 	The Taxes Consolidation Act 1997 as amended from time to time.
	 
	“Announcement Date”	 	The date on which the Bank makes an announcement of
its final results for the preceding Accounting
Period.
	 
	“Appropriate Percentage”	 	The percentage of the Locked-in-Value of the Scheme
Stock of a Member chargeable to income tax under
Schedule E computed in accordance with the
provisions of Section 511(3) of the Act.
	 
	“Appropriation Date”	 	The date(s) in each year determined by the Court (and
agreed in advance with the Trustees) as the date(s) on
which Stock is to be appropriated to Members in
accordance with this Scheme.
	 
	“the Bank”	 	The Governor and Company of the Bank of
Ireland whose head office is situated at
Lower Baggot Street, Dublin 2.

15

 

	 	 	 	 	 	 	 
	“Basic Remuneration”	 	The basic salary or wage paid by a Participating
Company to a Member in the relevant Scheme Year
excluding bonuses, commission or other fluctuating
emoluments.
	 
	“the Court”	 	The Court of Directors for the time being of the
Bank or a duly authorised committee appointed by
them for the purposes of administering the Scheme.
	 
	“Deed” and “Trust Deed”	 	The Trust Deed dated the [    ] day of [         ]
2006 between the Bank, the Participating Companies
and the Trustees to which these Rules are
scheduled and includes any modification,
alteration, amendment or extension thereof from
time to time.
	 
	“Electronic Communication”	 	A communication transmitted (whether from one
person to another, from one device to another or
from a person to a device or vice-versa):
	 
	 	 	(a)	 	by means of a telecommunication system within
the meaning of the Electronic Commerce Act, 2000
(as amended); or
	 
	 	 	(b)	 	by other means but while in an electronic form.
	 
	“Eligible Employee”	 	Any person who on the applicable Announcement Date:
	 
	 	 	(a)	 	is a Full-Time Executive Director, or
employee of any Participating Company and;
	 
	 
	 	 	 	(i)	 	whose remuneration is wholly subject to Irish Income Tax under Schedule E, and

16

 

	 	 	 	 	 	 	 
	 
	 	 	 	(ii)	 	who has been in the continuous service of the Group (including service with any company which is a Subsidiary) for a period of not less than twelve months ending on the last day of the relevant Scheme Year,
	 
	 
	 	or	 	 	 	 
	 
	 	 	(b)	 	is any other employee of a Participating Company including a Full-Time Executive Director who has a contract of employment with such a Participating Company and has been nominated by the Court for participation in the Scheme,
	 
	 	 	but excluding all individuals ineligible to
participate in an approved profit sharing
scheme by virtue of Part 4 of Schedule 11 to
the Act;
	 
	 	 	For the purposes of this definition of
Eligible Employee any absence from service by
any individual due to injury, disability,
maternity, parental or other statutory leave
will not be deemed as an interruption to
continuous service.
	 
	“Employees’ Share Scheme”	 	Any scheme within the meaning of Section 2 of
the Companies (Amendment) Act, 1983 which has
been adopted by the Bank including any scheme
which is no longer in force but which had been
in force within the preceding ten years.
	 
	“Full-Time Executive Director”	 	Any executive director who is contracted to
work at least 24 hours per week (exclusive of
meal breaks) for any one or more of the
Participating Companies.

17

 

	 	 	 	 	 	 	 
	“General Court”	 	The Annual General Court or any Extraordinary
General Court of the Stockholders of the Bank.
	 
	“the Group”	 	The Bank and all its Subsidiaries.
	 
	“Initial Market Value”
	 	 	 	(a)	 	Save as is mentioned in (b) or (c) below the Market Value of a Unit of Stock immediately before the Appropriation Date,
	 
	 

	 	or	 	 	 	 
	 
	 
	 	 	 	(b)	 	The value calculated by reference to the market price of a Unit of Stock as derived from the Irish Stock Exchange Official List on a date not more than 30 days before the Appropriation Date,
	 
	 
	 	or	 	 	 	 
	 
	 
	 	 	 	(c)	 	The value calculated by reference to the average market price paid for the Units of Stock purchased on the open market by the Trustees on a date or dates during the period of not more than 30 days before the Appropriation Date.
	 
	“Irish Stock Exchange”	 	The Irish Stock Exchange Limited or any successor body.
	 
	“Locked-in-Value”	 	The value as defined in Section 512(1) of the Act.
	 
	“London Stock Exchange”	 	The London Stock Exchange plc or any successor body.
	 
	“Market Value”	 	The value of a Unit of Stock as determined in accordance with Section 509(1) of the Act.
	 
	“Member”	 	Any Eligible Employee to whom Scheme Stock is to be
or has been appropriated under the Scheme.

18

 

	 	 	 	 	 	 	 
	“Participating Company”	 	Each of the Bank, the Participating Companies and any
other Subsidiary of the Bank which has been nominated
by the Court and which has entered into a
supplemental deed pursuant to Clause 20 of the Trust
Deed to which for the time being the Scheme is
expressed to extend pursuant to paragraph 3(2) of
Part 2 of Schedule 11 to the Act; (together the
“Participating Companies”).
	 
	“Profit Share”	 	The total amount of money paid by the Participating
Companies to the Trustees in respect of any Scheme
Year, as described in Rule 2.1.2.
	 
	“Release Date”	 	The date as defined in Section 511(2) of the Act.
	 
	“Retention Period”	 	The period of retention as defined in Section
511(1)(a) of the Act.
	 
	“Revenue Commissioners”	 	The Irish Revenue Commissioners or any successor body
appointed in their place by the Government of
Ireland.
	 
	the “Scheme”	 	The “Bank of Ireland Group Staff Stock Issue — 2006 Scheme”
as governed by the Deed to which these Rules are scheduled and
by these Rules.
	 
	“Scheme Stock”	 	Any Stock or other security in the Bank which has been
appropriated under the Scheme and is for the time being held
by the Trustees on behalf of a Member.
	 
	“Scheme Year”	 	Each year during the operation of the Scheme being the twelve
months to the end of the relevant Accounting Period used for
the purposes of calculating the benefits (if any) payable under
the Scheme.

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	“Stock”	 	Fully paid Units of Stock in the capital of the Bank which comply
with the provisions of Part 3 of Schedule 11 to the Act and, where
the context so requires, shall refer to a single Unit of Stock.
	 
	“Subsidiary”	 	A subsidiary within the meaning of Section 155 of the Companies
Act, 1963 and over which the Bank has control, control being
construed in accordance with Section 432 of the Act.
	 
	“the Trustees”	 	The trustee or trustees for the time being of the Scheme.
	 
	“UK Listing Authority”	 	The Financial Services Authority in its capacity as UK Listing Authority.
	 
	“Unit of Stock”	 	A whole unit of Ordinary Stock, each unit having a
nominal value of €0.64 in the capital of the Bank; and
“Units of Stock” shall be construed accordingly.
	 
	“Year of Assessment”	 	Has the meaning given to it by Section 2(1) of the Act.

In these rules € or Euro shall refer to the single currency of participating member states of the
European Union, the lawful currency for the time being of Ireland.

In these Rules words denoting the singular number only shall include the plural number also; words
denoting the masculine gender shall include the feminine gender also; and references to a statute
or statutory provision shall be construed as if it referred to that provision as amended or
re-enacted, if applicable.

	2	 	Acquisition of Stock

	2.1	 	As soon as practicable following the end of a Scheme Year for which the Court intend to
operate the Scheme:

20

 

	 	2.1.1	 	Each Participating Company shall establish which employees and directors of such
Participating Company shall be Eligible Employees in respect of the Scheme Year last
ended and forthwith inform the Trustees accordingly. All Eligible Employees are entitled
to participate in the Scheme in accordance with the Rules and shall be entitled to do so
on similar terms as required by paragraph 4(1) of Part 2 of Schedule 11 to the Act.
	 
	 	2.1.2	 	The Profit Share entitlement of each Eligible Employee under the Scheme shall be
calculated as such total amount, if any, as the Court shall allocate for that Scheme
Year shared amongst the Eligible Employees in accordance with Rule 2.1.3 below.
	 
	 	 	 	And
	 
	 	 	 	If the Court so decide for the relevant Scheme Year, each such Eligible
Employee may have the additional option to forego an amount from his Basic
Remuneration towards the acquisition by the Trustees of Stock under the
Scheme provided that the maximum amount applied in this regard shall not
exceed the lower of:

	 	2.1.2.1	 	7.5% of the Eligible Employee’s Basic Remuneration, or
	 
	 	2.1.2.2	 	An amount equivalent to the Profit Share entitlement which the Eligible
Employee has elected to be paid to the Trustees to be applied by them in
acquiring Stock under the Scheme.

	 	2.1.3	 	The Participating Company shall give notice to each Eligible Employee of his
entitlement to the Profit Share and invite him to elect by notice (“Notice of Election”)
in writing to the Participating Company not later than 14 days after the date of the
notice given by the Participating Company that his entitlement to the Profit Share be
paid to the Trustees together with such further amount from Basic Remuneration as the
Scheme Rules may permit so as to allow the Trustees to acquire Stock on his behalf under
the terms of the Scheme
	 
	 	 	 	PROVIDED THAT in the case of any Eligible Employee the total of his entitlements
in any Year of Assessment shall not exceed the amount for the time being specified
as being the limit on individual appropriations for the purposes of paragraph 3(4)
of Part 2 of Schedule 11 to the Act.

21

 

	2.2	 	As soon as is practicable following the end of each Scheme Year, or at such other more
frequent intervals as the Court may decide, the Participating Company shall pay to the
Trustees such aggregate of the amounts due following the completion and return of the notice
of election and contract of participation as are certified by the Trustees to be necessary to
acquire the Stock to be appropriated in accordance with Rule 3 to Eligible Employees employed
by the Participating Company.
	 
	2.3	 	The Trustees shall forthwith purchase on the open market and/or subscribe for the appropriate
number of Units of Stock. If the Trustees are unable to acquire sufficient Stock to satisfy
appropriations the Trustees shall reduce the appropriation pro-rata.
	 
	2.4	 	The individual Profit Share entitlement shall be calculated such that each Eligible Employee
shall receive Units of Stock having a “Value” (being the product of the number of Units of
Stock by the Initial Market Value) equal to such percentage of their Basic Remuneration as the
Court shall determine,
	 
	 	 	OR
	 
	 	 	alternatively if the Court so decide, in accordance with one or more of the following
methods:

	 	2.4.1	 	Eligible Employees shall receive a number of Units of Stock for every complete
year of service with one or more Participating Company and/or Subsidiaries; or
	 
	 	2.4.2	 	Eligible Employees shall receive a fixed number of Units of Stock or Stock with
a Value equal to a fixed sum; or
	 
	 	2.4.3	 	Such other formula to be determined by the Court and approved in writing by the
Revenue Commissioners.

	3	 	Appropriation of Stock

	3.1	 	Procedure on Appropriation

	 	3.1.1	 	The Trustees shall as soon as is practicable appropriate the Stock acquired in
accordance with Rule 2 to all Eligible Employees who have complied with the conditions
in Rule 3.1.4.

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	 	3.1.2	 	As soon as is practicable after the Appropriation Date the Trustees shall notify
each Member of the number of Units of Stock appropriated to him, the Initial Market
Value thereof and the date upon which such appropriation took place.
	 
	 	3.1.3	 	Notwithstanding the rights of Members in respect of Scheme Stock allocated to
them the Trustees shall have all Scheme Stock under the Scheme registered in their names
or hold in a CREST or nominee account on their behalf.
	 
	 	3.1.4	 	Any Eligible Employee who makes the election referred to in Rule 2.1.3 shall
contract with the Bank in accordance with the requirements of Section 511(4) of the Act
and failure to comply with the Bank’s requirements in this regard shall preclude such
employee from becoming a Member.
	 
	 	3.1.5	 	Where an Eligible Employee fails or refuses to comply with the requirements of
Rule 3.1.4 he shall not be entitled to be appropriated Stock under the Scheme and Stock
unused by virtue of this provision shall be held by the Trustees to be added to Stock
for allocation in the next Scheme Year according to Rule 3.1.1.
	 
	 	3.1.6	 	The Participating Companies shall furnish such information, including names,
addresses and Basic Remuneration of each Member, as the Trustees shall require.

	3.2	 	If prior to the appropriation of any Stock under this rule 3 the Trustees:

	 	3.2.1	 	Become entitled in respect of such Stock to any rights to be allotted or to
subscribe for further Stock in the Bank (other than a capitalisation issue of Stock of
the same class as the Stock then held by the Trustees pending an appropriation which
will be retained by the Trustees and will form part of the Stock to be appropriated
among Participants on such appropriation) the Trustees may either:

	 	3.2.1.1	 	sell the same for the best consideration in money reasonably obtainable
and retain the net proceeds of sale in accordance with clause 14 of the Deed;
	 
	 	3.2.1.2	 	sell enough of the rights to enable the subscription of the balance of
such rights not so sold;

23

 

	 	3.2.1.3	 	request the Bank and the other Participating Companies to take up the
entire for cash, in which event the Bank will procure that the relevant
amount is paid to the Trustees or to their order for such purpose, and they
will take up the entire, but the Trustees will take no action which would
prejudice approval of the Revenue Commissioners of the Scheme and any assets
so acquired will be held in accordance with clause 14 of the Deed; or
	 
	 	3.2.1.4	 	decline to take up such rights.

	 	3.2.2	 	receive any dividends, they will, after providing for any taxation payable on
them, hold and retain the net amount of such dividends in accordance with clause 14 of
the Deed.

	3.3	 	In the event that the Trustees acquire Stock for appropriation on an Appropriation Date and
some of those Units of Stock carry a right of any kind which is not carried by every other
Unit of Stock appropriated, then such Stock as carry such right shall, so far as practicable,
be appropriated pro rata according to the number of Units of Stock appropriated to each Member
on the Appropriation Date.
	 
	3.4	 	On the allotment of any Stock to the Trustees pursuant to the Scheme, the Bank shall as soon
as is practicable apply to the Irish Stock Exchange and the UK Listing Authority and the
London Stock Exchange for any Stock allotted to be admitted to the Official List of the Irish
Stock Exchange and the Official List of the UK Listing Authority and to be admitted to trading
on the London Stock Exchange’s market for listed securities.

	4	 	Scheme Limits

	4.1	 	The Court shall determine in its absolute discretion the amount of funds to be made available
to the Scheme in respect of any Scheme Year provided that in any Year of Assessment not more
than 5% of the consolidated profits (before tax and extraordinary items) for the last
Accounting Period immediately preceding the relevant Appropriation Date shall be made
available for the purchase on the open market and/or subscription for Stock under this Scheme,
the Inland Revenue Approved Stock Incentive Plan (UK) (hereinafter referred to as “the SIP”)
and any similar scheme established by the Bank and any of its Subsidiaries. For this purpose
profits shall be taken into account on the basis of the profits which are attributable to
Participating Companies incorporated in Ireland plus those which are attributable to any
overseas Subsidiaries whose
employees participate in the Scheme, the SIP or in any similar schemes established by any
Subsidiary which will be operated in the relevant Year of Assessment.

24

 

	4.2	 	The maximum number of Units of Stock which may be allocated for subscription or purchase
under the Scheme on the relevant Appropriation Date, when added to the number of Units of
Stock issued or placed under option for subscription in the preceding ten years under any
other Employees’ Share Scheme adopted by the Bank, shall not exceed 10% of the Units of Stock
of the Bank in issue immediately prior to that day.
	 
	4.3	 	Not more than 1% of the Units of Stock of the Bank in issue at the commencement of any Year
of Assessment may be subscribed for or purchased in that Year of Assessment under this Scheme,
the SIP and under any other profit sharing scheme established by the Bank or any of its
Subsidiaries.
	 
	4.4	 	In determining the above limits:

	 	4.4.1	 	No account shall be taken of Stock which is not new issue Stock;
	 
	 	4.4.2	 	No account shall be taken of any Units of Stock where the right to acquire them
under any share option scheme operated by the Bank or any of its Subsidiaries have
lapsed, been renounced or otherwise become incapable of being exercised;
	 
	 	4.4.3	 	Any Stock issued on the exercise or vesting of rights shall be taken into
account once only (when the rights are granted) and shall not fall out of account when
the rights are exercised; and
	 
	 	4.4.4	 	Subject to rule 4.3 above, and to the extent permitted by the recognised
institutional investor guidelines, any Stock issued or issuable under a broadly based
Employees’ Share Scheme including the Bank’s Employee Stock Issue Scheme — 1997, the
SIP, the Bank’s Sharesave Scheme, the Restricted Stock Plan — 2006 for US employees and
this Scheme shall be disregarded for the purposes of calculating the amount of Stock
which may be allocated for the subscription or purchase under the Scheme.

	4.5	 	No Member shall be entitled to be appropriated Units of Stock in any Year of Assessment the
Initial Market Value of which shall exceed the amount specified in paragraph 3(4) of Part 2 of
Schedule 11 to the Act.

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	5	 	Retention and Disposal of Scheme Stock

	5.1	 	Except as hereinafter provided the Trustees:

	 	5.1.1	 	shall not dispose of any Scheme Stock during the Retention Period (whether by
transfer to a Member or otherwise) except as mentioned in paragraphs (a) (b) or (c) of
Section 511(6) of the Act;
	 
	 	5.1.2	 	shall not dispose of any Scheme Stock after the end of the Retention Period and
before the Release Date except pursuant to a direction given by or on behalf of the
Member or any person in whom the beneficial interest in his Scheme Stock is for the time
being vested, and by a transaction which would not involve a breach of a Member’s
obligations under paragraph (c) or (d) of Section 511(4) of the Act;
	 
	 	5.1.3	 	shall at all times deal with any right conferred in respect of any of Scheme
Stock of a Member, securities and rights of any description only pursuant to a direction
given by or on behalf of the Member or any person in whom the beneficial interest in his
Scheme Stock is for the time being vested.

	5.2	 	Except as hereinafter provided each Member:

	 	5.2.1	 	shall permit his Scheme Stock to remain in the hands of the Trustees throughout
the Retention Period and shall not assign, charge or otherwise dispose of his beneficial
interest in his Scheme Stock during the Retention Period;
	 
	 	5.2.2	 	shall, if he directs the Trustees to transfer ownership of his Scheme Stock to
him at any time prior to the Release Date, pay to the Trustees before the transfer takes
place a sum equal to income tax at the standard rate on the Appropriate Percentage of
the Locked-in-Value of the Scheme Stock at the time of the direction; and
	 
	 	5.2.3	 	shall not direct the Trustees to dispose of his Scheme Stock at any time before
the Release Date in any other way except by sale for the best consideration in money
that can reasonably be obtained at the time of the sale.

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	6	 	Transactions in Scheme Stock

The Trustees shall notify each Member concerned of the rights which are attributable under this
rule to the Scheme Stock appropriated to him. Notwithstanding Rule 5 above, a Member:

	6.1	 	may direct the Trustees to accept an offer for any of the Scheme Stock appropriated to him
(hereinafter referred to as the “Original Stock”) if the acceptance or agreement will result
in a New Holding (as defined in Section 584(1) of the Act) being equated with the Original
Stock for the purpose of capital gains tax;
	 
	6.2	 	may direct the Trustees to agree to a transaction affecting the Scheme Stock appropriated to
him or such of them as are of a particular class if the transaction would be entered into
pursuant to a compromise, arrangement or scheme applicable to or affecting:

	 	6.2.1	 	all the ordinary Stock in the capital of the Bank or as the case may be all the
stock of the class in question, or
	 
	 	6.2.2	 	all the stock or stock of the class in question which is held by a class of
stockholders identified otherwise than by reference to their participation in the Scheme
; and

	6.3	 	may direct the Trustees to accept an offer of cash, with or without other assets, for the
Scheme Stock appropriated to him if the offer forms part of a general offer which is made to
holders of Stock of the same class as himself or the stock of the Bank and which is made in
the first instance on a condition such that if it is satisfied the person making the offer
will have control of the Bank within the meaning of Section 11 of the Act.

	7	 	Capital Receipts

Subject to any such direction as is referred to in Section 513(3) of the Act, the Trustees shall
pay or transfer to a Member any money or money’s worth received by them in respect of or by
reference to any of the Scheme Stock appropriated to him (less in the case of a disposal any costs
or expenses of disposal) other than money consisting of a sum referred to in Section 511(4)(c) of the
Act or money’s worth consisting of a “New Holding” within the meaning of Rule 9.1 below.

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	8	 	Members’ Rights as Stockholders

	8.1	 	All dividends received by the Trustees in respect of Scheme Stock shall be paid to Members
following their receipt in accordance with the Members’ respective entitlements before the end
of the Year of Assessment in which the dividends are paid.
	 
	8.2	 	In relation to any voting rights attaching to Scheme Stock appropriated to a Member the
Trustees shall deal only in accordance with directions given to them at least 3 working days
before such vote becomes exercisable by the Member or by any other person in whom the
beneficial interest in the Scheme Stock is for the time being vested, and in the absence of
such directions shall abstain from voting in respect of such Scheme Stock.
	 
	8.3	 	Prior to appropriation of any Stock, the Trustees will not exercise any voting rights
attaching to them or (save as specifically provided in these rules) transfer or agree to
transfer the Stock or any shares allotted in respect of that Stock.
	 
	8.4	 	The Trustees may, at their discretion, appoint a Member as their proxy to attend or vote at
general courts of the Bank on their behalf in respect of any Scheme Stock. Any such proxy
appointed shall vote only in accordance with the directions of the Trustees and will have no
discretion as to how to vote. No Member may request that the Trustees appoint him as their
proxy to attend or vote at general courts of the Bank.

	9	 	Company Reconstructions, Amalgamations, Rights Issues, etc

	9.1	 	Reconstructions

	 	9.1.1	 	This Rule 9.1 applies where there occurs in relation to any of the Scheme Stock appropriated
to a Member (in this Rule referred to as “the Original Holding”) a transaction (in this Rule
referred to as a “Company Reconstruction”) which results in a New Holding as defined in
Section 584(1) of the Act being equated with the Original Holding for the purpose of capital
gains tax and in this Rule “New Holding” has the meaning aforesaid.
	 
	 	9.1.2	 	Where stock is issued in the circumstances described in Section 514(3)(a) of the Act that
stock shall be treated for the purposes of this Rule as not forming part of the New Holding.
	 
	 	9.1.3	 	In this Rule:

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	 	9.1.3.1	 	“New Stock” means stock comprised in the New Holding which was issued in respect
of, or otherwise represent, stock comprised in the Original Holding, and
	 
	 	9.1.3.2	 	“Corresponding Stock”, in relation to any New Stock, means that stock in respect of
which the New Stock was issued or which the New Stock otherwise represents.

	 	9.1.4	 	References in the Rules to the Scheme Stock appropriated to a Member shall be construed,
after the time of the Company Reconstruction, as being or, as the case may be, as including,
references to any New Stock, and for the purposes of the Rules:

	 	9.1.4.1	 	a Company Reconstruction shall be treated as not involving a disposal of stock
comprised in the Original Holding;
	 
	 	9.1.4.2	 	the date on which any New Stock is to be treated as having been appropriated to the
Member shall be the Appropriation Date of the Corresponding Stock; and
	 
	 	9.1.4.3	 	the New Stock shall be held by the Trustees in accordance with the Scheme as if it
had been so appropriated.

	 	9.1.5	 	In the context of a New Holding, any reference in this Rule to stock includes securities and
rights of any description which form part of the New Holding for the purposes of Section
584(1) of the Act.

	9.2	 	Rights Issue

In the event of the Bank making an offer to holders of its ordinary Stock on a rights basis such
offer shall be extended to the Trustees in respect of the total number of Scheme Stock appropriated
to Members. The Trustees shall notify each Member concerned of the rights which are attributable to
the Scheme Stock appropriated to him. A Member shall be at liberty to direct the Trustees to
accept such offer in respect of all of the Scheme Stock appropriated to him, in which event he
shall pay to the Trustees a sum of money before the expiry of the offer sufficient to enable the
Trustees to purchase that number of Units of Stock in respect of which the direction was made.
Alternatively, a Member may direct the Trustees to sell the whole of the rights attaching to the
Scheme Stock appropriated to him, or, if the Trustees so permit, to sell part of such rights in
order to enable the Trustees to use the proceeds of such sale to exercise other such rights of the
Member. Any stock purchased by the Trustees under

29

 

this Rule shall be treated as New Stock under Rule 9.1 in relation to any Member and any cash
arising from the disposal of rights (except insofar as used to accept the offer) shall be accounted
for to the Member entitled thereto (subject to deduction of any tax which the Trustees are obliged
to deduct).

	10	 	Rights of Employees

Participation in the Scheme by a Member is a matter entirely separate from any right or entitlement
he may have and from his terms or conditions of employment and participation in the Scheme shall in
no respects whatever affect in any way a Member’s rights or entitlements or terms or conditions of
employment and in particular (but without limiting the generality of the foregoing words) any
Member who leaves the employment of a Participating Company shall not be entitled to any
compensation for any loss of any right or benefit or prospective right or benefit under the Scheme
which he might otherwise have enjoyed whether such compensation is claimed by way of damages for
wrongful dismissal or other breach of contract or by way of compensation for loss of office or
otherwise howsoever. The Scheme does not confer on any person any legal or equitable rights (other
than in relation to the Stock itself) against the Bank or any Subsidiary directly or indirectly or
give rise to any cause of action at law or in equity against the Bank or any Subsidiary.

	11	 	Duty to Account for Tax

	11.1	 	When the Trustees receive from a Member, who has directed them to transfer to him the
ownership of his Scheme Stock at any time before the Release Date the sum calculated in
accordance with Rule 5.2.2 above, they shall account to the Revenue Commissioners for that sum
and the Trustees shall comply in all other respects with their obligations under the Act.
	 
	11.2	 	The Trustees shall maintain records of all sums received from Members under rule 11.1 above.
	 
	11.3	 	The Trustees shall inform each Member in writing of any facts known to them which are
relevant to determining the liability (if any) of the Member to income tax under Schedule E.

	12	 	Administration and Notices

	12.1	 	Subject to prior written approval of the Revenue Commissioners, if within a period not
exceeding 2 months from the Appropriation Date, the Trustees need to make additional
appropriations pursuant to Rule 3 because of administrative or other errors which

30

 

	 	 	resulted in Eligible Employees being excluded from the Scheme at that time, the relevant
Participating Company shall make available to the Trustees such sum or sums as the Trustees
need to acquire Stock for such Eligible Employees as aforementioned provided always that such
Eligible Employees shall be treated within the terms of the Scheme as if they had received an
appropriation of Scheme Stock on the Appropriation Date. Under no circumstance shall the
Trustees hold any Stock for more than 18 months without appropriating them to a Member at the
earliest opportunity.
	 
	12.2	 	Any notification or other notice in writing to be given to any Member in pursuance of the
Scheme shall be sufficiently given if:

	 	  12.2.1	 	sent through the post in a prepaid cover addressed to the Member at his address last
known to the sender including any address supplied by the Bank or other Participating
Company as being his address and notice shall be deemed to have been given on the date
of posting;
	 
	 	  12.2.2	 	sent by means of Electronic Communication to such electronic address as may be
specified by him from time to time for that purpose and if so sent shall be deemed to
have been sent when it is first transmitted; or
	 
	 	  12.2.3	 	delivered to him at his place of work, if he is employed by a Participating Company.

	12.3	 	Any certificate, notification or other notice in writing required to be given to the Bank or
any other Participating Company or the Trustees shall be properly given if sent through the
post in a pre-paid envelope appropriately addressed or delivered:

	 	  12.3.1	 	to the Participating Company concerned or the first named Trustee at their respective
registered or principal offices or in the case of a Trustee his last known address; or
	 
	 	  12.3.2	 	via Electronic Communication to such email or electronic address as may from time to
time be notified to the Eligible Employee or the parties to this deed but shall not in
any event be deemed to be duly given unless it is acknowledged by the Bank, any other
Participating Company or Trustee as the case may be and if so sent when it is first
posted, delivered or transmitted.

31

 

	13	 	Modification and Limitation of Scheme

	13.1	 	The Court may, prior to the approval of the Scheme under the Act by the Revenue
Commissioners, alter the Rules of the Scheme as may be necessary in order to obtain such
approval.
	 
	13.2	 	Subject to Clause 16 of the Trust Deed, Rules 13.3 and 13.4 below and to the prior written
approval of the Revenue Commissioners under paragraph 5(2) of Part 2 of Schedule 11 to the Act
the Bank may from time to time modify, alter, extend or amend the Trust Deed and these Rules.
	 
	13.3	 	Where any alteration under Rule 13.2 is to the advantage of Members (present or future), it
will not be effective unless either:

	 	  13.3.1	 	it is made with the prior sanction of a resolution of the Bank in General Court; or
	 
	 	  13.3.2	 	it is made by the Court as an amendment which they consider necessary or desirable in
order to benefit the administration of the Scheme or to comply with or take account of
the provisions of any proposed amendment of existing legislation, or to obtain or
maintain favourable tax treatment of any Stock or interests in Stock acquired or held
under the Scheme or any rights to acquire such Stock or interests, provided any such
amendment does not affect the basic structure of the Scheme.

	13.4	 	No alteration which purports to enlarge the obligations or restrict the rights of any Member
in respect of Stock already allocated to him under the Scheme shall be effective.

	14	 	General

Neither the Bank nor the Trustees shall be required to perform any obligation hereunder to the
extent that such action would be contrary to any enactment or regulation for the time being in
force in Ireland.

	15	 	Governing Law

The Scheme shall be governed by and construed in accordance with the laws of Ireland. The Courts
of Ireland are to have jurisdiction in relation to any claim or proceedings arising under or in
relation to the Scheme or its interpretation and to settle any dispute arising out of or in
connection with the Scheme.

32

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