Document:

exv4w13

Exhibit 4.13

Draft

Amending Deed —

Performing Subsidiary

Undertaking and

Guarantee Trust Deed

Dated [•] 2009

James Hardie 117 Pty Limited (formerly known as LGTDD Pty Limited)

(“Performing Subsidiary”)

AET Structured Finance Services Pty Limited (“Undertaking and

Guarantee Trustee”)

Mallesons Stephen Jaques

Level 61

Governor Phillip Tower

1 Farrer Place

Sydney NSW 2000

Australia

T +61 2 9296 2000

F +61 2 9296 3999

DX 113 Sydney

www.mallesons.com

Ref: 02-5501-6101

 

 

Amending Deed — Performing Subsidiary

Undertaking and Guarantee Trust Deed

Contents

	 	 	 	 	 	 	 
	Details	 	 	1	 
	 
	 	 	 	 	 	 
	General terms	 	 	2	 
	 
	 	 	 	 	 	 
	1

	 	Interpretation
	 	 	2	 
	 
	 	 	 	 	 	 
	2

	 	Confirmations and acknowledgement
	 	 	2	 
	 
	 	 	 	 	 	 
	2.1

	 	Confirmation in relation to definition of “JHINV”
	 	 	2	 
	 
	 	 	 	 	 	 
	2.2

	 	Confirmation
	 	 	2	 
	2.3

	 	Conflict
	 	 	2	 
	2.4

	 	Consideration
	 	 	3	 
	 
	 	 	 	 	 	 
	3

	 	Amendments
	 	 	3	 
	 
	 	 	 	 	 	 
	4

	 	Costs
	 	 	3	 
	 
	 	 	 	 	 	 
	5

	 	General
	 	 	3	 
	 
	 	 	 	 	 	 
	6

	 	Counterparts	 	 	3	 
	 
	 	 	 	 	 	 
	7

	 	Governing law
	 	 	3	 
	 
	 	 	 	 	 	 
	Schedule 1 — Irish Registration Date Amendments	 	 	4	 
	 
	 	 	 	 	 	 
	Signing page	 	 	5	 

	 	 	 	 	 
	ã Mallesons Stephen Jaques

	 	Amending Deed — Performing Subsidiary Undertaking and Guarantee Trust Deed
	 	i 
	9910998_4

	 	18 June 2009 	 	 

 

 

Amending Deed — Performing Subsidiary

Undertaking and Guarantee Trust Deed

Details

	 	 	 	 	 
	Parties	 	Performing Subsidiary and the Undertaking and Guarantee
Trustee
	 
	 	 	 	 
	Performing
Subsidiary

	 	Name
	 	James Hardie 117 Pty Limited (formerly
known as LGTDD Pty Limited)
	 
	 	 	 	 
	 

	 	ABN
	 	30 116 110 948
	 
	 	 	 	 
	 

	 	Address
	 	Level 3, 32 Pitt Street, Sydney, NSW, 2000
	 
	 	 	 	 
	Undertaking and
Guarantee Trustee

	Name
	 	AET Structured Finance Services Pty Ltd
in its capacity as trustee for the
Financiers under the Guarantee Trust
	 
	 	 	 	 
	 

	 	ABN
	 	12 106 424 088
	 
	 	 	 	 
	 

	 	Address
	 	Level 22, 207 Kent Street Sydney,
NSW, 2000
	 
	 	 	 	 
	Recitals	 	The Performing Subsidiary and the Undertaking and
Guarantee Trustee are parties to the Performing
Subsidiary Undertaking and Guarantee Trust Deed and wish
to amend the Performing Subsidiary Undertaking and
Guarantee Trust Deed on the terms set out in this deed.
	 
	 	 	 	 
	Date of Amending
Deed

	 	[•] 2009	 	 

	 	 	 	 	 
	ã Mallesons Stephen Jaques

	 	Amending Deed — Performing Subsidiary Undertaking and Guarantee Trust Deed
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	9910998_4

	 	18 June 2009 	 	 

 

 

Amending Deed — Performing Subsidiary

Undertaking and Guarantee Trust Deed

General terms

	 	 	 	 	 
	1	 	Interpretation
	 
	 	 	 	 
	 	 	Clause 1
(“Interpretation”) of the James Hardie - Performing
Subsidiary Undertaking and Guarantee Trust Deed applies to this deed
as if it was fully set out in this deed.
	 
	 	 	 	 
	 	 	These meanings apply unless the contrary intention appears:
	 
	 	 	 	 
	 	 	Performing Subsidiary Undertaking and Guarantee Trust Deed means the document entitled “
Performing Subsidiary Undertaking and Guarantee Trust Deed” dated 19 December 2006 between
the Performing Subsidiary and the Undertaking and Guarantee Trustee.
	 
	 	 	 	 
	 	 	Irish Registration Date means the date on which JHISE is registered by the Registrar of
Companies of Ireland as having its registered office in Ireland.
	 
	 	 	 	 
	 	 	JHISE means JHINV once it has converted from its present corporate form as a Dutch NV
(Naamloze Vernootschap) into an SE (Societas Europaea).
	 
	 	 	 	 
	 	 	Novation Date means the Effective Date as defined in the Novation Deed dated [Ÿ]
2009.
	 
	 	 	 	 
	 	 	Novation Deed
means a deed substantially in the form set out in Annexure B of the
Deeds of Confirmation dated [23] June 2009 between James
Hardie Industries N.V., James Hardie International Finance B.V.,
James Hardie Building Products, Inc. and financiers to James Hardie
Group.
	 
	 	 	 	 
	 	 	SE Transformation Date means the date on which JHINV is registered as a “Societas
Europaea” on the Dutch Trade Register pursuant to European Union Council Regulation
2157/2001.
	 
	 	 	 	 
	2	 	Confirmations and acknowledgement
	 
	 	 	 	 
	2.1	 	Confirmation in relation to definition of “JHINV”
	 
	 	 	 	 
	 	 	Each party confirms that the definition of “JHINV” for the purposes of the Performing
Subsidiary Undertaking and Guarantee Trust Deed is a reference to:
	 
	 	 	 	 
	 

	 	(a)
	 	with effect on and from the SE Transformation Date up to the Irish
Registration Date, JHISE with its corporate seat in The Netherlands; and
	 
	 	 	 	 
	 

	 	(b)
	 	with effect on and from the Irish Registration Date, JHISE with its
corporate seat in the Republic of Ireland.
	 
	 	 	 	 
	2.2	 	Confirmation
	 
	 	 	 	 
	 	 	Each party confirms that, other than as provided for in clause 3 (“Amendments”), the
Performing Subsidiary Undertaking and Guarantee Trust Deed remains in full force and
effect and enforceable against it up to, including and after each of the SE Transformation
Date and the Irish Registration Date.
	 
	 	 	 	 
	2.3	 	Conflict
	 
	 	 	 	 
	 	 	If there is a conflict between the Performing Subsidiary Undertaking and Guarantee Trust
Deed and this deed, the terms of this deed prevail.

	 	 	 	 	 
	ã Mallesons Stephen Jaques

	 	Amending Deed — Performing Subsidiary Undertaking and Guarantee Trust Deed
	 	2 
	9910998_4

	 	18 June 2009 	 	 

 

 

	 	 	 
	2.4
	 	Consideration
	 
	 	 
	 
	 	This deed is entered into in consideration of the parties’ exchange of promises under this
deed and the receipt of valuable consideration which is hereby acknowledged.
	 
	 	 
	3
	 	Amendments
	 
	 	 
	 
	 	As from the Novation Date, the Performing Subsidiary Undertaking and Guarantee Trust Deed
is amended as set out in schedule 1.
	 
	 	 
	4
	 	Costs
	 
	 	 
	 
	 	Each party shall be responsible for its own costs, charges and expenses in connection with
the preparation, negotiation and execution of this deed.
	 
	 	 
	5
	 	General
	 
	 	 
	 
	 	Clause 27 (“Notices”) of the Performing Subsidiary Undertaking and Guarantee Trust Deed
applies to this deed as if it was fully set out in this deed.
	 
	 	 
	6
	 	Counterparts
	 
	 	 
	 
	 	This deed may consist of a number of copies each signed by one or more parties to the
deed. If so, the signed copies are treated as making up the one document.
	 
	 	 
	7
	 	Governing law
	 
	 	 
	 
	 	This deed is governed by the law in force in New South Wales. Each party submits to the
non-exclusive jurisdiction of the courts of that place and waives any right to claim that
those courts are an inconvenient forum.
	 
	 	 
	EXECUTED as a
deed.

	 	 	 	 	 
	ã Mallesons Stephen Jaques
	 	Amending Deed — Performing Subsidiary Undertaking and Guarantee Trust Deed
	 	3 
	9910998_4
	 	18 June 2009 	 	 

 

 

Amending Deed — Performing Subsidiary

Undertaking and Guarantee Trust Deed

Schedule 1 — Irish Registration Date Amendments

The Performing Subsidiary Undertaking and Guarantee Trust Deed is amended as follows:

	1	 	The definition of “Business Day” in clause 1.1 (“Definitions”) is amended by deleting
paragraph (c) and replacing it with the following paragraph:

	 	“(c) 	 	for all other purposes, banks are open for general
banking business in Sydney and any other place or places specified in the
relevant Finance Document.”.

	2	 	Clause 28.4 (“Set-off”) is amended by deleting the words “Dutch law” in the fourth line and
replacing it with “the laws of New South Wales, Australia”.

	 	 	 	 	 
	ã Mallesons Stephen Jaques

	 	Amending Deed — Performing Subsidiary Undertaking and Guarantee Trust Deed
	 	4 
	9910998_4

	 	18 June 2009 	 	 

 

 

Amending Deed — Performing Subsidiary

Undertaking and Guarantee Trust Deed

Signing page

	 	 	 	 	 	 	 
	DATED:

	 	 	2009	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED by JAMES HARDIE

	 	 	)	 	 	 
	117 PTY LIMITED in accordance

	 	 	)	 	 	 
	with section 127(1) of the Corporations

	 	 	)	 	 	 
	Act 2001 (Cwlth) by authority of its

	 	 	)	 	 	 
	directors:

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)

)	 	 	 
	Signature of director

	 	 	)	 	 	 

	 

	 	 	)	 	 	Signature of director/company
	 

	 	 	)	 	 	secretary*
	 

	 	 	)	 	 	*delete whichever is not applicable
	 

	 	 	)	 	 	 
	Name of director (block letters)

	 	 	)	 	 	 

	 

	 	 	)	 	 	Name of director/company secretary*
	 

	 	 	)	 	 	(block letters)
	 

	 	 	 	 	 	*delete whichever is not applicable

	 	 	 	 	 
	The Common Seal of AET Structured Finance
Services Pty Limited

ABN 12 106 424 088 was affixed with the authority of:	 	
	 	
	 
	(signed)

	 		 	
	 
	(print
name)

	 		 	
	 
	Authorised
Officer

	 		 	
	 
	(signed)

	 		 	
	 
	(print
name)

	 		 	
	 
	Authorised
Officer

	 		 	

	 	 	 	 	 
	ã Mallesons Stephen Jaques

	 	Amending Deed — Performing Subsidiary Undertaking and Guarantee Trust Deed
	 	5 
	9910998_4

	 	18 June 2009exv10w2

Exhibit 10.2

JAMES HARDIE

EXECUTIVE INCENTIVE PLAN

The following document sets out the terms of the James Hardie Executive Incentive Plan (the
“Plan”). This document only applies to those persons who are eligible to receive an EBIT Bonus as
defined below. Employees who are not eligible to receive an EBIT Bonus but who are eligible to
receive a bonus based on individual performance are governed by the terms and conditions of the
Company’s separate Individual Performance Incentive Plan.

	A.	 	INCENTIVE PLAN
	 
	1.	 	Purpose of the Incentive Plan
	 
	 	 	The purpose of the Executive Incentive Plan is to provide incentive compensation for eligible
“exempt” executives and employees of James Hardie Industries N.V. (JHINV) and its subsidiary
companies, including but not limited to James Hardie Building Products (collectively referred
to as the “Company”), which directly relates their financial reward (annual bonus) to the
Company’s achievement of certain financial objectives as well as their individual achievement
of specific personal objectives.
	 
	2.	 	Definitions

	 	•	 	Board of Directors, Board — JHINV’s Supervisory Board of Directors or its delegate,
the Remuneration Committee.
	 
	 	•	 	Bonus, bonus — The cash compensation the Company may provide to an employee in
addition to the agreed base salary. It includes both the Company financial component
(EBIT Bonus) and the individual performance component (IP Bonus). “Bonus” and
“Incentive” are used interchangeably throughout this document.
	 
	 	•	 	Base Salary — Participant’s annual base salary as of the last day of the Plan Year.
	 
	 	•	 	Change in Control — See attachment 1
	 
	 	•	 	EBIT — Earnings Before Interest and Taxes (excluding non operating items such as
asbestos adjustments and other related costs) as calculated under prevailing accounting
rules and standards applicable to the Company.
	 
	 	•	 	EBIT Bonus — The bonus that is based on the Company’s (or participant’s respective
business group’s) EBIT achievement for the Plan Year.
	 
	 	•	 	EBIT/IP % Split — The percentage of the participant’s Target Bonus that is based on
the Company’s EBIT achievement (the EBIT portion) versus the percentage that is based on
individual performance achievement (the IP portion). These percentages vary based on the
participant’s position with the Company. These two percentages must total 100%.
	 
	 	•	 	EBIT Target Bonus — The EBIT Bonus portion of the participant’s Target Bonus upon
applying the EBIT/IP Split.
	 
	 	•	 	IP Bonus — The bonus that is based on the participant’s performance of
individual performance objectives for the Plan Year.

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 1

 

 

	 	•	 	JH, The Company — James Hardie Industries N.V. and its subsidiaries
	 
	 	•	 	Payout % —The percentage of the participant’s EBIT Target Bonus that will be paid for
that Plan Year’s performance.
	 
	 	•	 	Plan, bonus plan — the Executive Incentive Plan
	 
	 	•	 	SLT — Senior Leadership Team comprised of the Company’s CEO and direct reports
	 
	 	•	 	Performance Rating — The individual rating that each employee receives based on their
annual performance review.
	 
	 	•	 	Plan Year — April 1st to March 31st, the Company’s financial
year.
	 
	 	•	 	Target Bonus — The percentage of the participant’s Base Salary that is available for
Bonus. This is set annually for each participant.

	3.	 	Eligibility
	 
	 	 	Eligibility for a bonus plan is limited to nominated executives and key employees within the
Company. In general, participation in a bonus plan is restricted to those employees in
salaried exempt positions in grades 16 and above in the US; and in similar positions in other
countries where we do business. Note, however, that not all exempt positions are on a bonus
plan. Selection of employees for participation in a bonus plan in any Plan Year will be
subject to approval of the CEO on the recommendation by the relevant Senior Leadership Team
(SLT) member and the highest-ranking Human Resources executive.
	 
	 	 	Sales Management may have a portion of their total bonus target tied to all or part of this
Plan as well as variable pay tied to a sales bonus or commission plan. For example, in the US,
sales management’s variable pay can be 50% tied to the US EBIT results and 50% tied to their
regions’ sales bonus plan. Their individual performance rating (IP) will not be tied to their
variable pay.
	 
	 	 	Eligibility of executives and key employees for inclusion in a Plan does not guarantee their
participation in any future year. Participation of any division/business unit in the Plan
will be at the discretion of the Chief Executive Officer.
	 
	4.	 	Bonus Calculation
	 
	 	 	The Bonus Calculation is based on two (2) components:
	 
	(a)	 	IP Bonus
	 
	 	 	The IP Bonus is solely based on the individual’s Performance Rating at the end of the
Plan Year and/or when the individual changes roles during the year. The Performance Rating is
determined by management’s review of the individual’s job performance.
	 
	 	 	The Performance Rating must be approved by the two levels of management above the participant
prior to the IP Bonus being calculated, except in cases where there is no second level. At
the start of each Plan Year, the Board approves the percentage of Target Bonus that each
Performance Rating pays.

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 2

 

 

	 	 	If the Company does not meet its EBIT Target, the participant still has the ability to earn
all of his/her IP Bonus. The total IP Bonus payment to be paid for a Plan Year is calculated
as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IP Bonus
	 	=
	 	Base
Salary
	 	x
	 	Target
Bonus
 %
	 	X
	 	IP % 
Split
	 	x
	 	Performance
 rating %
	 	X
	 	% of
 yr in
 plan

	 	(b)	 	EBIT Bonus

	 	 	The EBIT Bonus is based entirely on the achievement of set EBIT Targets for the
participant’s area of the business. These areas are defined in FY09 as US (for US and European
executives); Asia Pacific; Managing Directors/Corporate.
	 
	 	 	Each Plan Year, the Remuneration Committee and the Board of Directors approve the “EBIT
Targets” for each area of the business. The Board also approves the “Payment Schedule” for
achievement of each level of EBIT. The Board has approved the following linear sliding
schedule using the achievement levels listed below for FY09:

	 	 	 	 	 	 
	 
	 	Company	 	 	 	 
	 	Performance as a	 	 	Payout as a % of EBIT	 
	 	% of EBIT Target	 	 	Target Bonus	 
	 	70%
	 	 	    0%	 
	 	80%
	 	 	  33%	 
	 	90%
	 	 	  67%	 
	 	100%
	 	 	100%	 
	 	110%
	 	 	150%	 
	 	120%
	 	 	200%	 
	 

	 	 	The most a participant can receive for their EBIT Bonus component is 200% of their EBIT Target
Bonus. At the end of the Plan Year the “Payout %” is calculated utilizing the Payment
Schedule above and is then used to calculate the participant’s EBIT Bonus for that Plan Year:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	EBIT
Bonus
Paid

	 	=
	 	Base
 Salary
	 	x
	 	Target
Bonus %
	 	X
	 	EBIT
 % 
Split
	 	x
	 	Payout %
	 	X
	 	% of yr in
 plan

	5.	 	Bonus Payment
	 
	 	 	All bonus payments, less applicable withholdings, will be made within two and a half months
following the end of the relevant Plan Year. Participants must be employed at the end of the
Plan Year in order to receive any bonus, unless one of the exceptions described in Section
B(6), B(7), B(11) or B(12) applies.

	 	 	The Remuneration Committee and the CEO have the joint authority and discretion to make
payments due under this Plan in a form of equity for any given fiscal year. In

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 3

 

 

	 	 	addition, if
payouts are made in a form of equity, the Remuneration Committee and the CEO have the joint
authority and discretion to revise the terms and conditions of the Plan as necessary to
effectuate such a payout including, but not limited to, the date a participant needs to be
employed in order to receive a payout under the Plan, and whether a cash payment can be made
in lieu of equity under circumstances requiring a prorated payout.

	B.	 	ADMINISTRATION OF THE PLAN
	 
	1.	 	Determination of Individual Bonus

	 	(a)	 	Each Plan Year the CEO, under the recommendation of the highest ranking local Human
Resources executive and the SLT, will approve the Target Bonus levels and EBIT/IP splits
for participants in the eligible salary grades in the Plan.
	 
	 	(b)	 	Individual Target Bonuses shall be calculated based on the Base Salary for the
participant at the end of the Plan Year, unless otherwise discussed below.

	2.	 	Determination of Objectives

	 	(a)	 	Target EBIT: Target EBIT for each area of the business will be determined
by the Board of Directors or its delegate.
	 
	 	(b)	 	IP Objectives: IP objectives for newly hired, transferred or promoted
participants shall be set and approved by management (within 30 days of entering a
job). Otherwise, IP objectives for participants shall be set by management as part of
the Company’s bi-annual performance cycle. Individual objectives for SLT members will be
approved by the Board of Directors.

	3.	 	Participant Matters
	 
	 	 	The Board of Directors (or designee) shall, in its sole discretion and on behalf of the
Company, determine all Plan matters with respect to all participants, with the exception of
those matters within the authority of the CEO or the SLT as conferred by this document.
	 
	4.	 	New Employees and Promotions into the Plan
	 
	 	 	New employees or employees promoted during a Plan Year may be offered participation in the
Plan. Their eligibility for bonuses will be calculated on a pro rated basis in the year of
entry, and must be approved by the relevant SLT member and the highest-ranking Human Resources
executive.
	 
	 	 	In order to be eligible for a bonus, participants must be employed for a minimum qualifying
period of 3 months with at least one month of participation in the Plan during a Plan Year
unless waived by the Board of Directors (or designee). The 3 month qualifying period shall be
included for purposes of bonus calculation.
	 
	5.	 	Transfers and Promotions
	 
	 	 	The bonus for a participant who is transferred or promoted and remains in the Plan will be
calculated in multiple parts. The bonus for each position will be calculated using the Target
Bonus and Performance Rating for the part of the year the participant was in each position,
unless designated otherwise in a contemporaneous
written transfer agreement executed or approved by the employee’s relevant SLT member and the
highest-ranking Human Resources executive. The participant’s final base salary at year end
will be used for all calculations under this paragraph.

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 4

 

 

	6.	 	Retirement, Disability or Death
	 
	 	 	If during a Plan Year a participant retires1, becomes totally and permanently
incapacitated2 or dies, such participant or their family or designee or estate
shall receive the prorated bonus for the year in which the participant retires, becomes
totally and permanently incapacitated, or dies utilizing, for the IP Bonus, the most recent
performance rating and, for the EBIT Bonus, the “Payout %” as calculated at the end of the
Plan Year for the appropriate area of the business.
	 
	 	 	Payment for participants will be made by the end of the third month following the relevant
Plan Year.
	 
	 	 	In the event of a short-term disability or leave of absence (paid or unpaid), a participant
may be eligible for a full or pro-rated bonus. The first three months of any leave of absence
will be treated as time worked for the purpose of calculating a participant’s eligible base
salary. For example, if a participant is on approved leave for 2 months of the Plan Year,
his/her bonus will be calculated using the participant’s full year’s Base Salary. If a
participant is on approved leave for 4 months of the Plan Year, the first three months will be
treated as time worked and the last month shall not, such that a prorated salary of 11 months
will be used for purposes of calculating the bonus. If a year-end performance rating is not
available (due to the leave), the Company will utilize the participant’s most recent
Performance Rating.
	 
	7.	 	Job Eliminations
	 
	 	 	A participant whose employment is terminated as a result of the elimination of the
participant’s position may receive a prorated bonus. In order to receive a prorated bonus, a
participant must have participated in the Plan for at least 1 month during the Plan Year and
been employed by the Company for at least three months. The prorated bonus will be based on
the time worked during the Plan Year, utilizing, for the EBIT Bonus, the “Payout %” as
calculated at the end of the Plan Year and for the IP Bonus the participant’s most recent
Performance Rating.
	 
	 	 	A prorated payment for any Bonus in the year in which the job elimination occurs shall be made
at the time when Bonus payments normally are made, unless otherwise determined by the relevant
SLT member and the highest-ranking Human Resources executive.
	 
	8.	 	Discontinued Participation in Plan
	 
	 	 	Where an employee has participated in the Plan in previous years, but in the current Plan Year
their participation is discontinued, then they shall be paid a prorated Bonus for the period
of participation in the Plan during the Plan Year, utilizing, for the EBIT Bonus, the Payout %
as calculated at the end of the Plan Year, and, for the IP Bonus, the participant’s most
recent Performance Rating received while on the Plan. The end of year salary will be utilized
unless otherwise specified in contemporaneous transfer documents executed or approved by the
relevant SLT member and their top Human Resources professional.
	 
	 	 	A prorated payment for any bonus in the year in which the discontinuation of plan
participation occurs shall be made at the regular time when bonus payments are made for that
Plan Year.

 

			
	1	 	At age 65 or such other date as the Board of Directors
(or designee) approves in particular circumstances.
	 
	2	 	Suffers from a mental or physical condition which is
expected to last at least 12 months or result in death, and which, in the
opinion of a licensed physician, will prevent the employee from engaging in any
substantial or gainful employment.

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 5

 

 

	9.	 	Termination At the Initiative of the Company (excluding Job Eliminations)
	 
	 	 	Participants shall not be entitled to any bonus (including a pro-rated bonus) if they are
terminated by the Company prior to the end of the Plan Year (March 31) for reasons other than
job elimination or divestment (see section 11 below).
	 
	10.	 	Resignation
	 
	 	 	If a participant resigns prior to the end of the Plan Year (March 31), the participant shall
not be entitled to any bonus (including a pro-rated bonus) for the Plan Year in which the
resignation occurs. If a participant resigns after the end of the Plan Year but before the
bonus is paid, the participant is eligible to receive his/her bonus only for the Plan Year
that just ended.
	 
	11.	 	Divestments
	 
	 	 	If a participant’s employment is terminated as a result of the sale of a business unit,
entity, or subsidiary of JHINV during the Plan Year, participants will receive a prorated
bonus utilizing the participant’s base salary at the time of divestment, the participant’s
most recent Performance Rating and the year to date EBIT performance calculated as of the most
recently completed quarter. The EBIT performance target will be adjusted for the number of
complete quarters in plan prior to divestment. The resulting bonus will be paid at
termination.
	 
	12.	 	Change in Control
	 
	 	 	If during a Plan Year there is a change in control (see Attachment 1) of James Hardie
Industries N.V., and the Plan is thereafter discontinued, participants will receive a prorated
bonus for the Plan Year, utilizing the participant’s base salary at the time of Change in
Control, the participant’s most recent Performance Rating and the year to date EBIT
performance calculated as of the most recently completed quarter. The EBIT performance target
will be adjusted for the number of complete quarters in plan prior to the Change in Control.
The resulting bonus will be paid within 90 days following the Change in Control.
	 
	13.	 	Post-Employment Misconduct
	 
	 	 	Notwithstanding any other provision of the Plan or any other agreement, in the event that a
Participant’s post-employment conduct breaches any agreement (including, but not limited to,
confidentiality and/or non-competition agreements), he or she shall not be entitled to any
bonus for which he or she otherwise would be eligible under this Plan.
	 
	14.	 	No Guarantee
	 
	 	 	Nothing in this Plan is intended to alter the at-will status of the Company’s employees.
Participation in the Plan is no guarantee that a bonus under the Plan will be paid. The
success of the Company, its business units and individual employees, as measured by the
achievement of EBIT Targets and Individual Performance targets, shall determine the extent to
which participants shall be entitled to receive bonuses.
	 
	 	 	Nothing in the terms and conditions of the Plan shall prevent the Company from
canceling or amending the Plan at any time.

	 	 	 In the event the Company decides to cancel the Plan, participants will receive a pro-

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 6

 

 

	 	 	rated
bonus for the Plan Year. This payment will be made within 90 days of the Plan’s cancellation
utilizing the participant’s base salary at the time of cancellation, the participant’s most
recent Performance Rating and the year to date EBIT performance calculated as of the most
recently completed quarter. The EBIT performance target will be adjusted for the number of
complete quarters in plan prior to cancellation. The resulting bonus will be paid within 90
days following the cancellation.

	15.	 	General Provisions

	 	(a)	 	Withholding of Taxes
	 
	 	 	 	The Company shall have the right to withhold taxes and other amounts, which, in the
opinion of the Company, are required to be withheld by law with respect to any amount
due or paid to participants under the Plan.
	 
	 	(b)	 	Expenses
	 
	 	 	 	All expenses and costs in connection with the adoption and administration of the Plan
shall be borne by the Company.
	 
	 	(c)	 	Limitation on Rights 
	 
	 	 	 	Except as expressly granted pursuant to the Plan, nothing in the Plan shall be deemed to
give any employee any contractual or other right to participate in the benefits of the
Plan. No award to any such participant in any Plan Year shall be deemed to create a
right to receive any award or to participate in the benefits of the Plan in any
subsequent Plan Year.

	16.	 	Limitations

	 	(a)	 	No Right to Continued Employment
	 
	 	 	 	Neither the establishment of the Plan nor the payment of a bonus under it shall
be deemed to constitute an express or implied contract of employment for any
participant for any period of time or in any way abridge the rights of the
Company to determine the terms and conditions of employment or to terminate the
employment of any employee in accordance with law.
	 
	 	(b)	 	No Vested Rights
	 
	 	 	 	Except as expressly provided herein, no employee or other person shall have any
claim of right (legal, equitable, or otherwise) to any bonus payment. No
officer or employee of the Company or any other person shall have any authority
to make representations or agreements to the contrary. No interest conferred
herein to a participant shall be assignable.
	 
	 	(c)	 	Not Part of Other Benefits
	 
	 	 	 	The benefits provided in this Plan shall not be deemed a part of any other
benefit provided by the Company to its employees.

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 7

 

 

	 	(d)	 	Other Plans
	 
	 	 	 	Nothing contained in the Plan shall limit the Company’s power to grant non-Plan
bonuses to employees of Company, whether or not they are participants in this
Plan.
	 
	 	(e)	 	No Interest
	 
	 	 	 	Under no circumstances will interest accrue on any part of the bonus or other
amounts potentially payable to any participant.

	17.	 	Exclusion of Bonuses From Benefit Calculations
	 
	 	 	Bonuses paid under this plan shall be excluded from an employee’s compensation for the purpose
of calculating other aspects of the employee’s personal benefit and compensation packages,
such as, for example, superannuation, contribution levels to 401k, leave entitlements and
vehicle entitlements (unless otherwise required by law).
	 
	 	 	Bonuses shall also be excluded from an employee’s compensation for the purpose of calculating
any form of severance or separation due to the employee under applicable law, policy or
contract.
	 
	18.	 	Unfunded Plan
	 
	 	 	This Plan is unfunded. Nothing in the Plan shall create or be deemed to create a trust or
separate fund of any kind, or a fiduciary relationship between the Company (or any of its
subsidiaries) and any participant.
	 
	19.	 	Authority of the Board of Directors
	 
	 	 	Full power and authority to interpret and administer this Plan shall be vested in the Board of
Directors, which shall have the sole authority to create or alter terms for the Plan except as
explicitly stated herein. The Board of Directors may from time to time make such decisions
and adopt such terms for implementing the Plan as it deems appropriate for the Plan or any
participant under the Plan. Any decision made by the Board of Directors arising out of or in
connection with the construction, administration, interpretation and effect of the Plan shall
be final, conclusive and binding upon all participants and any person claiming under or
through them. The Board of Directors may delegate its power with respect to the Plan from
time to time as it so determines.
	 
	20.	 	Alterations to Plan
	 
	 	 	The Board of Directors may at any time by resolution revoke, add to or vary any of the
provisions of the Plan or all or any of the rights or obligations of the Participants in
connection with the plan.
	 
	21.	 	Plan Terms
	 
	 	 	In all cases the terms as set forth in the Plan document shall take precedence over any other
document issued in connection with the Plan.
	 
	22.	 	Arbitration
	 
	 	 	All claims, disputes, questions, or controversies arising out of or relating to this Plan,
will be resolved exclusively in final and binding arbitration in accordance with the

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 8

 

 

	 	 	Arbitration Rules and Procedures, or successor rules then in effect, of Judicial Arbitration &
Mediation Services, Inc. (“JAMS”). The arbitration will be conducted and administered in
Orange County, California by JAMS or, in the event JAMS is not available or does not then
conduct arbitration proceedings, a similarly reputable arbitration administrator. The
employee and the Company will select a mutually acceptable, neutral arbitrator from among the
JAMS panel of arbitrators. Except as provided by this Agreement, the Federal Arbitration Act
will govern the administration of the arbitration proceedings. The arbitrator will apply the
substantive law (and the law of remedies, if applicable) of the State of California, or
federal law, as applicable, and the arbitrator is without jurisdiction to apply any different
substantive law. The employee and the Company will each be allowed to engage in adequate
discovery, the scope of which will be determined by the arbitrator consistent with the nature
of the claim[s] in dispute. The arbitrator will have the authority to entertain a motion to
dismiss and/or a motion for summary judgment by any party and will apply the standards
governing such motions under the Federal Rules of Civil Procedure. The arbitrator will render
a written award and supporting opinion that will set forth the arbitrator’s findings of fact
and conclusions of law. Judgment upon the award may be entered in any court of competent
jurisdiction. The Company will pay the arbitrator’s fees, as well as all administrative fees,
associated with the arbitration. Each party will be responsible for paying its own attorneys’
fees and costs (including expert witness fees and costs, if any).

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 9

 

 

ATTACHMENT 1

EXECUTIVE INCENTIVE PLANS

“Change in Control” means the following and shall be deemed to occur if the Board of Directors
determines that any of the following events occurs:

	 	•	 	A takeover bid is made to acquire the whole of the issued ordinary share capital of
the Company and the takeover bid is recommended by the Board of Directors or becomes
unconditional;
	 
	 	•	 	A transaction is announced by the Company which, if implemented, would result in a
person owning all the issued shares in the Company;
	 
	 	•	 	A person owns or controls sufficient shares to enable them to influence the
composition of the Board of Directors; or
	 
	 	•	 	Any other similar event has occurred or is likely to occur (including, but not
limited to, a merger of the Company with another company), which the Board of Directors
determines, in its absolute discretion, to be a Change in Control.

			
	 	 	 
	Executive Incentive Plan Rules FY09
	 	Page 10

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