**Exhibit 10.40**

** **

November 23, 2005

 

**Confidential**

** **

**Mr John Braddon4/58 Durrant StreetBRIGHTON  3186**

 

Dear John

 

I am very pleased to offeryou the position a position in our Financial Accounting Team with CPT CustodianPty Limited (as Trustee for Centro Management Services Trust) ABN 94 774 879390 (“Centro”), (a member of the Centro Properties Group), with effect from adate yet to be set.  This offer is madesubject to the granting of an appropriate work permit or visa, allowing you tobe seconded to Centro Watt Management Joint Venture LP.

 

You will be employed on theterms and conditions set out below.  Youmust also comply with Centro Policies as amended from time to time (althoughthey do not form part of your employment contract).

 
| **Appointment:**                               |   | Your position will be as  per the attached letter of secondment, and your duties will be as set out in  the position description attached to that letter.                                                                                                                                                                                                                                                                                                                              |
|------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Continuing Application  of this Agreement:** |   | You may be required to  undertake other duties and responsibilities, or to hold other positions, from  time to time. Your reporting responsibility, position title and location of  work may also be altered. Should any of these events occur, the terms and  conditions in this Agreement shall apply unless agreed otherwise in writing  between you and Centro.                                                                                                                    |
| ** **                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Terms of Engagement:**                       |   | This appointment will be  on a full-time, ongoing basis subject to the probationary clause set out  below.                                                                                                                                                                                                                                                                                                                                                                             |
| ** **                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Employment Hours:**                          |   | Your usual hours of  employment will be from 8.30 a.m. to 5.00 p.m Monday to Friday. You are  entitled to a one hour lunch break each working day. You may be required to  work additional hours to meet your job requirements. Compensation for the  working of all such hours to fulfil this requirement has been included in  your remuneration package.                                                                                                                       |
| ** **                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Probationary Period:**                       |   | Staff appointments are  made on a probationary basis as a matter of policy and in the best interests  of Centro and the appointee.

 

Your employment will be  subject to a three month probationary period which will conclude three months  after your commencement date. During this probationary period, either party  may terminate the employment contract with one week’s written notice.

 

Towards the end of the  probationary period, a formal performance |

 

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| ** **                |   | review will be conducted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| ** **                |   | Subject to a satisfactory  review result, continuity of employment will be offered from the end of the  probationary period. Once your appointment has been confirmed, the regular  termination provisions of this contract will apply to your employment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ** **                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Base Remuneration:**    |   | Your initial Base  Remuneration will be $160,000.00 per annum. This may be comprised of: 

 

·      An annual  amount which represents employer superannuation contributions in accordance  with the requirements of the Superannuation Guarantee legislation. The  minimum amount will be $12,140.00, based on 9% of your paid salary up to a  salary ceiling set by the Superannuation Guarantee legislation (currently  $134,880 per annum).

 

·      The balance  which you may elect to take as a combination of cash, additional voluntary  superannuation payments (subject to deductible limits), or a salary sacrifice  for the provision of a Vehicle under the Company’s Motor Vehicle policy (see  below). 

 

This Base Remuneration  includes compensation for all entitlements, benefits or payments that might  otherwise be due under any applicable industrial instrument, including but  not limited to out of hours work, overtime, allowances, annual leave loading,  severance payments, shift penalties, and holiday rates. No special rates or  allowances for working particular times or under particular conditions will  be payable unless specified in this contract.

 

You should complete the  enclosed form to nominate the components of the package. Salary will be paid  on or about the fifteenth day of each month.

 

In order to obtain  taxation rebates to which you are entitled you should complete the attached  Taxation Employment Declaration form. This form should be returned with all  other forms enclosed. |
| ** **                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Remuneration Review:**  |   | Centro reviews  remuneration annually, usually in August/September with effect from 1  July of that year. Your first review will be effective from 1  July 2006.

 

Any remuneration increase  will be granted at the discretion of Centro. Centro is not bound to grant any  remuneration increase in any given year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| ** **                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Motor Vehicle Policy:** |   | For service in Australia,  you will be entitled to participate in the Centro Motor Vehicle policy which  provides you with the opportunity to enter into a Novated Lease arrangement  between                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

 

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| ** **             |   | Centro’s fleet management  provider, Centro and yourself.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Share Allocations:** |   | Centro from time to time  invites employees to participate in the Centro Employee Share Plan (the  “Plan”). Allocations of Centro securities will be made entirely at the  discretion of Centro in accordance with legislative requirements, and the  rules of the Plan. The rules of the Plan may be altered from time  to time by Centro.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ** **             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Contingent Shares:** |   | In order to encourage  participation and your focus on Centro’s shareholder returns, a  recommendation to offer you 100,000 contingent securities (i.e. Centro  securities issued under the Plan) will be made at the time of the next Plan  offer, with a vesting condition as follows:

 

When Centro’s Total  Shareholder Return (“TSR”) is measured against the TSR of its nominated  comparator group (each Listed Property Trust in the ASX 200) after a three  year vesting period:

 

·      where the  Centro TSR exceeds that of 50% of the comparator group, 40% of the securities  will be retained by you

 

·      where the  Centro TSR exceeds that of 80% of the comparator group, 100% of the  securities will be retained by you                               |
| ** **             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Bonus:**             |   | A Centro Bonus Scheme with  a maximum payment of 20% of Base Remuneration will apply. For the period  ending 30 June in each year, a target bonus of 50% of the maximum  payment (20%), (pro-rated for months of service in the financial year) will  be earned under the Centro Bonus Scheme, where performance achieves the  target set by the Board. In the event of employment terminating for any  reason prior to the end of a financial year, no pro rata bonus will be  awarded for that financial year unless specifically agreed by the Centro  Board.                                                                                                                                                                                                                                                                                                               |
| ** **             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Superannuation:**    |   | For service in Australia,  under “Fund Choice” legislation, you have the opportunity to select your own  preferred complying superannuation fund. Please find attached a “Standard  Choice” form (including information and instructions).

 

You are also eligible for  membership of Centro’s default Superannuation Plan – MLC Masterkey Business  Super “Default Fund”. Information on the Default Fund is available in the  Product Disclosure Statement at www.mlc.com.au.

 

You may make a choice by  completing the “Standard Choice” form and returning it to Lyn Alexander,  Payroll Administrator. Alternatively, you may elect to become a member of the  Default Fund. If this is your preference, you do not need to complete and  return the form. In this event, you will be enrolled in the Default |

 

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| ** **                                 |   | Fund, and information  relating to this Fund will be forwarded to you in due course by MLC.

 

Centro will contribute to  the Super Fund you choose or the Default Fund, a minimum of the amount  required by the Superannuation Guarantee Charge legislation. The minimum  amount is currently 9% of your gross cash salary, up to a salary ceiling set  by legislation (currently $134,880).

 

You may also elect to make  additional superannuation contributions from your salary (subject to  deductible limits). |
|--------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Death and Permanent  Disability Cover:** |   | You will be included in  the Centro Insurance Plan, which provides for a payment of a multiple of your  Base Remuneration in the event of your Death or Total and Permanent  Disability (subject to the conditions of Centro’s Insurance Policy as varied  from time to time and to satisfying the medical criteria of our insurer).

 

The multiple of Base  Remuneration is based on your age next birthday as follows:                                                                                                |
| ** **                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| ** **                                 |   | **Age next  Birthday**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **Multiple of  Base  Remuneration** |   | **Age next  Birthday** |   | **Multiple of  Base  Remuneration** | ** ** |
| ** **                                 |   | Up to 49                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 5.00 |   | 58 |   | 2.75 |   |
| ** **                                 |   | 50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 4.75 |   | 59 |   | 2.50 |   |
| ** **                                 |   | 51                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 4.50 |   | 60 |   | 2.25 |   |
| ** **                                 |   | 52                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 4.25 |   | 61 |   | 2.00 |   |
| ** **                                 |   | 53                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 4.00 |   | 62 |   | 1.75 |   |
| ** **                                 |   | 54                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 3.75 |   | 63 |   | 1.50 |   |
| ** **                                 |   | 55                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 3.50 |   | 64 |   | 1.00 |   |
| ** **                                 |   | 56                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 3.25 |   | 65 |   | 0.00 |   |
| ** **                                 |   | 57                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 3.00 |   |   |   |   |   |

 
| ** **                      |   | Please complete the attached Death and Total &  Permanent Disability Plan - Benefit Nomination form.  This form should be returned with all other  forms enclosed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| **Annual Leave  Entitlements:** |   | For service in Australia,  your annual leave entitlement for a full twelve months’ service is 20 working  days. For convenience, annual leave entitlements are calculated on a calendar  year basis. At the end of each calendar year you will be entitled to pro-rata  annual leave calculated on the basis of 1.66 days for each completed month of  service. In the event of separation from Centro, calculation of accrued and  pro-rata entitlements will be based on your commencement date.

 

Centro does not encourage  the accumulation of annual leave. In the event that you accrue annual leave  in excess of 30 days, Centro may direct you to take annual leave to reduce  your excess balance. |

 

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| **Long Service Leave:**                                              |   | Your entitlement to long  service leave will be in accordance with the provisions of legislation  applicable in the state in which you are employed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Sick Leave:**                                                      |   | For service in Australia,  your entitlement to sick leave will be 10 days per annum to cover instances  of personal illness or injury. Leave will be credited at commencement and at  each anniversary, and any unused sick leave will accumulate from year to  year. Accrued sick leave will not be paid out on termination of employment.                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ** **                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Centro Policies:**                                                 |   | Centro retains an  exclusive right to vary, change or terminate existing policies and to devise  and introduce new policies.

 

Copies of the Centro Code  of Conduct, Employee Trading in Securities Policy and Trade Practices  Compliance Manual are enclosed for your reference.

 

Your return of a signed  copy of this letter is acknowledgement that you have read and understand  these documents and your obligations as outlined in them.                                                                                                                                                                                                                                                                                                                                         |
| ** **                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Confidential Information  and Misleading and Deceptive  Conduct:** |   | You agree that you will  not use or disclose confidential information about Centro or other parts of  the Centro Properties Group gained by you, or make any improper use of your  position to gain, either directly or indirectly, an advantage for yourself or  for any other person, or cause detriment to investors in the Centro  Properties Group, or any other business in which the Centro Properties Group  is involved.

 

Termination of your  employment does not operate to terminate the provisions set out in this  clause, which shall remain in full force and effect and binding on you.

 

You agree that you will  not indulge in any misleading and/or deceptive conduct or make any false  and/or misleading representations or indulge in any unconscionable conduct. |
| ** **                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Police Check:**                                                    |   | This offer is made subject  to the results of a police check to assess your suitability for employment  and that no offences have been recorded which are incompatible with your  position with Centro. By signing and returning the copy of this letter,  together with the attached consent form completed and signed, you consent to  such a check being conducted.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| ** **                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Private  Commercially  Oriented Activities:**                      |   | You  may not undertake private commercially oriented activities unless both of the  following conditions are met:

 

(a)   There  must be no conflict of interest between the activity undertaken and your job  at Centro; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

 

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| ** **                 |   | (b)   The  undertaking of these activities must not in any way detrimentally affect your  ability to perform your job at Centro.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **Intellectual Property:** |   | You must disclose to the  Company all work, ideas, concepts, designs, inventions, developments and  improvements made in or during the course of your employment or with the use  of any of Centro’s time, materials or facilities whether made or conceived  alone or with others.

 

You must, when required,  do all things and execute all documents necessary to give effect to this  clause.

 

Termination of your  employment does not operate to terminate the provisions set out in this  clause which shall remain in full force and effect and binding on you.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| **Termination:**           |   | Your employment may be  terminated by either party providing to the other party four weeks notice in  writing.

 

The period of notice from  Centro will be increased by one week if you are over 45 years of age and have  completed two (2) years continuous service.

 

Alternatively, Centro may  provide you with payment in lieu of notice for some or all of the notice  period.

 

Notwithstanding this  notice provision, Centro may terminate your employment immediately if, in the  opinion of Centro you are guilty of any serious misconduct, dishonesty or  where you have engaged in conduct which endangers or might endanger the  health of others, which seriously prejudices Centro’s business, or which is  of any other nature such that it would be unreasonable for Centro to continue  your employment during the period of notice. In such circumstances Centro is  not required to provide you with any notice of termination.

 

In the event of termination  it is agreed that you will return any reports, plans, manuals or other  documents or property belonging to the Company which may have come into your  possession.

 

On resignation, you agree  that you will make comprehensive file notes of procedures and  work-in-progress. |

 

If you wish to accept thisappointment on the terms and conditions outlined, please sign, date and returnto Centro the attached copy of this letter.

 

I take this opportunity ofwishing you success in your employment with Centro.

 

Yours sincerely,

 

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Andrew T. ScottChief Executive Officer

 

I accept the offer ofemployment with Centro on the terms and conditions set out above, andacknowledge receipt of the Centro Code of Conduct, Employee Trading inSecurities Policy and Trade Practices Manual.

 
| Signed: |   |   |
|---------|--------|--------|
|    |
| Date:   |   |   |
|         |        |        |  |

 

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