Document:

Telecom Share Rights Scheme

 Exhibit 4.6 
 THE TELECOM SHARE RIGHTS SCHEME - 2012 

 TELECOM SHARE RIGHTS SCHEME 
 TABLE OF CONTENTS 
  

							
		 	PART I - PRELIMINARY AND INTERPRETATION	  	 	1	  
	1	 	Preliminary	  	 	1	  
	2	 	Interpretation	  	 	1	  
		 	PART II - OPERATION OF THE SCHEME	  	 	6	  
	3	 	Grants	  	 	6	  
	4	 	Rejection of Grant	  	 	6	  
	5	 	Exercise of Options	  	 	6	  
	6	 	Procedure for Exercise and Lapse	  	 	7	  
	7	 	Rights on Exercise	  	 	9	  
		 	PART III - TERMINATION OF EMPLOYMENT	  	 	10	  
	8	 	Termination of Employment	  	 	10	  
		 	PART IV - CORPORATE EVENTS	  	 	12	  
	9	 	Application of clause 10	  	 	12	  
	10	 	Early Exercise	  	 	12	  
	11	 	Capital Changes	  	 	13	  
	12	 	Other Adjustment	  	 	14	  
		 	PART V - GENERAL	  	 	15	  
	13	 	No Divestment	  	 	15	  
	14	 	Administration of Scheme	  	 	15	  
	15	 	Amendment	  	 	15	  
	16	 	Miscellaneous	  	 	16	  

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	1

  

 Date: 3 May 2012 
 PART I - PRELIMINARY AND INTERPRETATION 
  

	1	Preliminary 

  

	1.1	This is the Telecom Share Rights Scheme 2012. 

  

	1.2	This document applies to grants to Executives made after 1 July 2012. Nothing in this document applies to, or affects, grants made to Executive under the Telecom
Share Rights Scheme 2007. 

  

	2	Interpretation 

  

	2.1	In this document unless the context otherwise requires: 

 Board means the board of directors of Telecom from time to time 

Bonus Issue means: 
  

	 	(a)	any distribution or allocation of securities or other benefits (other than cash) to Shareholders for which Shareholders are not to provide consideration, including by
way of dividend, capital return, capital reduction, otherwise or any combination thereof; or 

  

	 	(b)	any cash dividend, capital return, capital reduction, other distribution or allocation or any combination thereof, to the extent that it is mandatory that the cash
entitlement arising as a result be applied to the purchase of securities or other benefits (other than cash) from Telecom 

 Breach means a breach of Telecom’s constitution, the listing and/or other rules governing the NZSX or any other stock exchange on which Shares (or American Depositary Receipts in
respect of Shares) are quoted, and/or any statute, regulation or Telecom’s internal procedures for insiders 

Business Day means a day on which the NZSX is open for trading 

Business Sale means, in respect of an Executive: 

 

	 	(a)	the Subsidiary by which that Executive is employed ceases to be a member of the Group; or 

 

	 	(b)	the business in which that Executive is employed is disposed of to a person who is not a member of the Group, or to a person who ceases to be a member of the Group, and
the Executive, as a result of that disposal, becomes an employee of that person or of an associate of that person. 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	2

  

 Capital Change means a Rights Offer, Bonus Issue, Capital Return, or any
other reconstruction of, or adjustment to, the capital or capital structure of Telecom of any nature 
 Capital Return
means any payment of cash to Shareholders which is, or is to be, accompanied by a reduction in the number of Shares, or the proportion of economic interest in Telecom, held by Shareholders to which the Capital Return applies, but does not
include a payment of cash which is covered by paragraph (b) of the definition of Bonus Issue 
 Commencement Date
means the date from and including which an Executive is entitled to participate in the Scheme, specified in the Grant; 

Complete Acquisition means any transaction or arrangement which has one of the following results: 

 

	 	(a)	any person becomes entitled to exercise a right of compulsory acquisition in respect of Shares; or 

 

	 	(b)	all of the Shares are acquired by a person, or by a person and that person’s associates; or 

 

	 	(c)	all of the Shares are cancelled, cease to exist, or are transferred or exchanged, and in substitution for Shares Shareholders receive or are to receive cash,
securities, or other benefits 

 Employment means employment by Telecom or a Subsidiary and
Employed has a corresponding meaning 
 Event has the meaning in clause 12 

Excluded Options means at any date (subject to clause 10.3) Options: 

 

	 	(a)	the Grant of which took place less than one year before that date; and 

  

	 	(b)	the Qualifying Date of which is more than one year after that date 

 Executive means an executive who is Employed and any other person or persons, determined by the Board to be eligible to participate in the Scheme from time to time 

Exercisable Option means an Option that the Board has determined pursuant to clause 6.1 may be exercised or an Option in
relation to which no Performance Hurdle applies 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	3

  

 Exercise Date means, in respect of an Option: 

(a) to which a Performance Hurdle Applies, the Notification Date after which the Option is determined by the Board pursuant to clause 6.1
be an Exercisable Option; or 
 (b) to which no Performance Hurdle applies, the Qualifying Date, 

subject to clauses 8.2 and 10.1 
 Exercise Notice means notice of the exercise of an Option 

Exercise Price means nil 
 Fundamental Change means the occurrence of one of the following events: 
  

	 	(i)	control of 50% or more of the voting rights in Telecom is held by one person or by one person and that person’s associates; or 

 

	 	(ii)	all or a material part of the business of the Group is disposed of to a person not a member of the Group by one transaction or a series of related transactions, or any
reconstruction or merger affecting Telecom occurs (not being a Complete Acquisition), and as a result of that disposal, reconstruction, or merger there is in the opinion of the Board a change in the essential nature of the business of the Group,

 if (but only if) the Board determines that as a result of the occurrence of that event Options held by the
Executives should become exercisable 
 Grant means the grant of an Option 

Group means Telecom and its subsidiaries 
 Initial Test Date means a date within 20 Business Days after the Qualifying Date, determined by the Board 
 Notification Date means the date the Board delivers a notice pursuant to clause 6.1 
 NZSX means the main board New Zealand equity securities market operated by NZX Limited 
 Option means an option to acquire a Share pursuant to the Scheme 

Option Lapse Date means the Option Lapse Date specified in a Grant or, if that date is not a Business Day, the first
Business Day after such date, after which Options are to lapse 
 Performance Hurdle means the performance hurdle
(if any) specified in a Grant 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	4

  

 Qualifying Date means the Qualifying Date specified in a Grant or, if that
date is not a Business Day, the first Business Day after such date 
 Redundancy means the termination of
Employment of an Executive by reason of that Executive’s position becoming surplus to the Group’s requirements, or any other involuntary termination of an Executive’s Employment which the Board in its discretion determines constitutes
redundancy, but does not include termination of Employment in the course of a Business Sale 
 Re-Test Date means a
date within 20 Business Days after the Specified Date, determined by the Board 
 Rights Offer means any offer of
securities or benefits to Shareholders for which Shareholders are to provide consideration, but not including any offer of securities or benefits to Shareholders that is covered by paragraph (b) of the definition of Bonus Issue 

Scheme means the Telecom Share Rights Scheme 2012 
 Share means an ordinary share in Telecom 
 Shareholder
means a holder of a Share 
 Specified Date means the Specified Date (if any) specified in a Grant or, if
that date is not a Business Day, the first Business Day after such date, after which the Board will re-test achievement of a Performance Hurdle 
 Subsidiary means a subsidiary of Telecom 
 Telecom
means Telecom Corporation of New Zealand Limited 
 Unvested Option means (subject to clause 10.3) an
Option, in relation to which a Performance Hurdle applies and the Initial Test Date has passed, that the Board has determined pursuant to clause 6.1 may not be exercised on the Notification Date applicable to such Initial Test Date. 

 

	2.2	In the definitions of “Complete Acquisition” and “Fundamental Change “ the expressions “associate”, “control” and “voting
right” have the meaning in the Takeovers Code 2001. 

  

	2.3	In this document: 

  

	 	(a)	the singular includes the plural and vice versa, and words importing any gender include the other genders; 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	5

  

	 	(b)	a reference to a person includes any individual, partnership, committee and incorporated or unincorporated body (whether or not having a separate legal personality);

  

	 	(c)	a reference to amend includes modify, delete, add and vary; 

  

	 	(d)	a reference to apply includes apply under assignment or set off; 

  

	 	(e)	where a word or expression is defined, other parts of speech and grammatical forms of that word or expression have a corresponding meaning; 

 

	 	(f)	a reference to the Scheme means the Scheme as amended from time to time; 

  

	 	(g)	a reference to a person includes its successors and permitted assigns; and 

 

	 	(h)	headings are inserted for convenience only and shall be ignored in interpretation. 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	6

  

 PART II - OPERATION OF THE SCHEME 

 

	3	Grants 

  

	3.1	The Board may make a Grant to an Executive. Each Grant will: 

  

	 	(a)	specify the number of Options granted to the Executive; 

  

	 	(b)	enclose a copy of the terms of the Scheme (if such terms have not already been provided to the Executive); 

 

	 	(c)	specify the Commencement Date, the Exercise Price, the Performance Hurdle (if any), the Qualifying Date, the Specified Date (if any) and the Option Lapse Date;

  

	 	(d)	enclose an Options certificate; and 

  

	 	(e)	specify a period of not more than 30 Business Days from the date of the Grant during which the Executive may reject the Grant. 

 

	4	Rejection of Grant 

  

	4.1	Opportunity to reject Grant 

 An Executive may reject a Grant by giving the Board notice, and returning to the Board the Options certificate, within the period specified in the Grant. If an Executive rejects a Grant, the Options the
subject of that Grant will lapse immediately. 
  

	4.2	Acknowledgement 

 In
retaining a Grant (and electing not to reject the Grant pursuant to clause 4.1), an Executive acknowledges that: 
  

	 	(a)	the terms of the Scheme are binding; and 

  

	 	(b)	participation in the Scheme does not affect the terms of the Executive’s Employment. In no event will Telecom be deemed, by making a Grant or otherwise, to have
represented that an Executive’s Employment will continue until and/or beyond the Qualifying Date or the Exercise Date. 

  

	5	Exercise of Options 

  

	5.1	Options may be exercised on the Exercise Date or any Business Day after the Exercise Date, unless: 

(a) the Board considers that the exercise would give rise to a Breach; or 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	7

  

	 	(b)	the Option has lapsed. 

  

	6	Procedure for Exercise and Lapse 

  

	6.1	Board Determination 

 On
the Initial Test Date and again on the Re-Test Date, the Board will: 
  

	 	(a)	determine whether an Option may be exercised by measuring performance against the Performance Hurdle (if any) applicable to the relevant Option; and

  

	 	(b)	within five Business Days, notify the Executive in writing of the determination. 

 For the avoidance of doubt, nothing in this clause 6.1 applies in respect of an Option in relation to which no Performance Hurdle applies. 

 

	6.2	Exercise 

 An Executive
may, as the Executive sees fit from time to time (subject to clause 5), exercise part or all of that Executive’s Exercisable Options (subject to any minimum number or multiple of a number of Options prescribed by the Board from time to time),
by giving the Board an Exercise Notice. 
  

	6.3	Exercise Notice 

 Any
Exercise Notice must specify the number of Options being exercised and be accompanied by: 
  

	 	(a)	the Options certificate; and 

  

	 	(b)	(if applicable) a form requesting consent to acquire Shares, in terms of Telecom’s internal procedures for insiders. 

 

	6.4	Issue 

 Within five
Business Days after the date on which the Board receives: 
  

	 	(a)	an Exercise Notice; 

  

	 	(b)	an Options certificate; and 

  

	 	(c)	(if applicable) a form requesting consent to acquire Shares, in terms of Telecom’s internal procedures for insiders, in accordance with this clause 6, Telecom will
issue to the Executive Shares, unless clause 5 precludes the exercise of Options (if so, the Board will give notice to the Participant accordingly and return the Options certificate). 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	8

  

	6.5	Board Notice 

 The
Board will give a further notice to an Executive who has been precluded (pursuant to clause 5.1(a)) from exercising an Option, as soon as it considers that the exercise would no longer give rise to a Breach. 

 

	6.6	Effective Exercise 

Subject to clause 6.7, the Exercise Notice of an Executive precluded (pursuant to clause 5.1(a)) from exercising an Option will take
effect 10 Business Days after the date on which the Board gives its notice pursuant to clause 6.5, if the Executive: 
  

	 	(a)	surrenders the Options certificate; and 

  

	 	(b)	(if applicable) delivers a form requesting consent to acquire Shares, in terms of Telecom’s internal procedures for insiders, 

during that period. If the Executive fails to do so, the Exercise Notice will be deemed to have been revoked. 

 

	6.7	Continued Breach 

 If the
exercise of Options pursuant to clause 6.6 would give rise to a Breach, the Board will proceed as if an Exercise Notice had been given pursuant to clause 6.2. 
  

	6.8	Breach 

 If, after the
period of six months from the date on which it first gives notice pursuant to clause 6.4, the Board considers that it is still unable to give notice in respect of an Option pursuant to clause 6.5 and/or the exercise of Options pursuant to clause 6.6
would give rise to a Breach, then Telecom is in default under the Scheme. Where Telecom is in default under this clause, the Executive and Telecom acknowledge and agree the following: 

 

	 	(a)	Telecom must pay the Executive liquidated damages in the sum equal to the volume weighted average market price of Shares reported on the NZSX for the 20 Business Days
immediately preceding the date of the Exercise Notice given by the Executive pursuant to clause 6.2, within ten Business Days; and 

  

	 	(b)	that the amount payable under clause 6.8(a) is a genuine pre-estimate of the damages the Executive is likely to suffer as a result of the default;

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	9

  

	 	(c)	that on payment of the amount under clause 6.8(a), all rights that Executive has to specific performance, compensation for breach, loss or damages, or any other remedy
are waived and/or extinguished and the Executive’s Options will lapse immediately. 

  

	6.9	Option Lapse Date 

Subject to clause 8, each Option lapses, and ceases to be exercisable, on the earlier of the: 

 

	 	(a)	last possible Notification Date of that Option, if the Board has determined that the Option may not be exercised; and 

 

	 	(b)	Option Lapse Date of that Option. 

  

	7	Rights on Exercise 

  

	7.1	Shares issued to Executives will be credited as fully paid and will rank pari passu in all respects with all Shares at the date of issue, except for any dividend or
other benefit in respect of Shares where the record date occurs prior to issue. 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	10

  

 PART III - TERMINATION OF EMPLOYMENT 

 

	8	Termination of Employment 

Cessation of Employment 
  

	8.1	If an Executive ceases to be Employed (unless the Executive immediately assumes further Employment or is on non-permanent leave of absence with employer approval), all
of the Executive’s Options shall lapse immediately, subject to clauses 8.2 and 8.3. 

 Redundancy, etc

  

	8.2	If an Executive’s cessation of Employment: 

  

	 	(a)	is caused by the Executive’s death or total permanent disablement; and 

 

	 	(b)	occurs on or after the date which is half way through the period from the Grant of Options to the Qualifying Date of those Options (“Specified
Options”), 

 the Board may (but has no obligation whatever to) permit the Executive to exercise a number
of Options calculated in accordance with the following formula: 
  

					
	number of Options = number of Specified Options x	 	 N
	  	
	 	T	  	

 Where: 
  

	 	N	is the number of days from the Grant of the Specified Options to the date the Executive ceases Employment provided that where the Executive ceases Employment after the
Qualifying Date, “N” shall be deemed to be the same number of days as “T” 

  

	 	T	is the number of days from the Grant of the Specified Options to the Qualifying Date of the Specified Options. 

If the Board elects to permit the Executive to exercise Options pursuant to this clause, it may fix the Exercise Date for those Options as
such date after the Executive ceases to be Employed as the Board decides. Those Options shall lapse one month after the Exercise Date so fixed. 
  

	8.3	If an Executive’s cessation of Employment: 

  

	 	(a)	is caused by the Executive’s Redundancy; and 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	11

  

	 	(b)	occurs on or after the date which is half way through the period from the Grant of Options to the Qualifying Date of those Options (“Specified
Options”), the Board may (but has no obligation whatever to) determine that some or all of the Specified Options shall not lapse. If the Board makes such determination: 

 

	 	(c)	where the Specified Options are not subject to Performance Hurdles, the Specified Options shall be able to be exercised immediately but shall lapse on the date which is
one month after the Board makes its determination; 

  

	 	(d)	where the Specified Options are subject to Performance Hurdles, the Board shall not permit the Executive to exercise that Specified Option unless and until the Board
determines in accordance with clause 6.1 that Specified Option may be exercised. That Specified Option shall lapse one month after the relevant Notification Date following the next determination in respect of the Specified Options under clause 6.1.

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	12

  

 PART IV - CORPORATE EVENTS 

 

	9	Application of clause 10 

  

	9.1	Clause 10.1 shall (subject to clause 10.2) apply: 

  

	 	(a)	on the occurrence of a Complete Acquisition, or if the Board determines in its discretion that a Complete Acquisition is to occur, in respect of all Executives and in
respect of all Options; 

  

	 	(b)	on the occurrence of a Fundamental Change, or if the Board determines in its absolute discretion that a Fundamental Change is likely to occur, in respect of all
Executives and in respect of all Options; 

  

	 	(c)	on the occurrence of a Business Sale, or if the Board determines in its absolute discretion that a Business Sale is likely to occur, in respect of Executives to which
the definition of that term applies and in respect of all Options held by those Executives. 

  

	10	Early Exercise 

  

	10.1	If pursuant to clause 9.1 this clause 10.1 applies then (subject to clause 10.2): 

 

	 	(a)	the Exercise Date shall be deemed to have occurred on a date fixed by the Board. That date shall be: 

 

	 	(i)	in the case of a Complete Acquisition such date as the Board in its discretion considers appropriate to enable each Executive to have an opportunity to exercise that
Executive’s Options so that the Shares resulting from that exercise will participate in the Complete Acquisition; or 

  

	 	(ii)	in the case of a Fundamental Change or Business Sale, such date shortly before or after that event as the Board in its discretion considers appropriate;

  

	 	(b)	Any such Options not exercised on the Exercise Date so fixed shall lapse at the end of that day. 

 

	10.2	Clause 10.1 shall not apply in respect of Excluded Options or Unvested Options. Excluded Options and Unvested Options shall lapse immediately upon the occurrence of an
event or Board determination specified in clause 9.1. 

  

	10.3	The Board may at any time in its discretion determine that (either generally or in respect of specified Executives or specified categories of Options) Options which
would otherwise be Excluded Options or Unvested Options, in terms of the respective definitions of those terms, are not to be treated as Excluded Options or Unvested Options (as the case may be). 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	13

  

	11	Capital Changes 

  

	11.1	Subject to clause 11.2, if before the exercise of Options: 

  

	 	(a)	  

  

	 	(i)	a Rights Offer occurs; and 

  

	 	(ii)	Shareholders are able to sell their rights under that Rights Offer through NZSX or another securities exchange for consideration, 

Telecom shall pay to each Executive an amount (less any deductions or withholdings required by law) equal to the amount which Telecom
calculates that Executive would have received (after any expenses of sale) if the Executive had exercised all of the Executive’s Options (other than Unvested Options) before the record date for the Rights Offer, and had sold all of the rights
under the Rights Offer relating to the Shares arising from the exercise of those Options at the volume weighted average price of rights sold on the first day on which it was possible to do so; 

 

	 	(b)	a Bonus Issue occurs, then: 

  

	 	(i)	in the case of a Bonus Issue of Shares, then upon exercise of Options (but not otherwise) Telecom shall issue to the Executive the Shares to which the Executive would
have been entitled if on the record date for the Bonus Issue the Executive had been the holder of a number of Shares equal to the number which the Executive would have held if the Executive had exercised those Options immediately before the record
date for the Bonus Issue; or 

  

	 	(ii)	in the case of a Bonus Issue of securities or benefits other than Shares, within a reasonable time after the Bonus Issue occurs, the Board shall make a Grant to the
Executive under clause 3.1 where, in the reasonable opinion of the Board, the terms of the Grant appropriately compensate the Executive for the reduction in value of the existing Options of the Executive as a result of the Bonus Issue;

  

	 	(c)	a Capital Return occurs, and that Capital Return is on the basis that it applies to all holders of Shares, without any election by holders of Shares:

  

	 	(i)	each Executive’s Options shall be reduced in the same ratio as holdings of Shares are reduced on the Capital Return; and 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	14

  

	 	(ii)	Telecom shall pay to each Executive the amount (less any deductions or withholdings required by law) which that Executive would have received if that Executive had
exercised all of that Executive’s Options, and the Shares resulting from that exercise had participated in the Capital Return; 

  

	 	(d)	any other Capital Change occurs, that Capital Change shall be dealt with in accordance with clause 12. 

 

	11.2	Where the operation of clause 11.1 would give rise to a Breach, the Board may make such alterations to the rights, obligations, or benefits of Executives or Telecom
and/or take or cause Telecom to take such steps, as in the opinion of the Board are appropriate or desirable in order to prevent a Breach. 

  

	12	Other Adjustment 

  

	12.1	If: 

  

	 	(a)	there occurs any offer for or acquisition of securities of Telecom, reconstruction or amalgamation affecting Telecom, Capital Change, disposal of businesses or assets
of the Group, or other event of any nature which in the opinion of the Board affects or will affect the position or rights of, or benefits to, Executives or Telecom in respect of the Scheme (collectively an “Event”); and

  

	 	(b)	either that Event is not provided for under Scheme, or in the opinion of the Board the manner in which the Scheme applies on the occurrence of that Event produces a
result which is inappropriate or unfair to Executives or to Telecom or to both, 

 the Board may make such
alterations to the rights, obligations, or benefits of Executives or Telecom and/or take or cause Telecom to take such steps, as in the opinion of the Board are appropriate or desirable as a result of the occurrence of that Event. 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	15

  

 PART V - GENERAL 

 

	13	No Divestment 

  

	13.1	An Executive may not (including by operation of law) transfer, assign, or otherwise dispose of or create any interest (including any security, or legal or equitable
interest) in an Option. 

  

	14	Administration of Scheme 

  

	14.1	The Board will administer all aspects of the Scheme, including the offering of Shares. Any matter to be determined by Telecom will be determined as the Board sees fit
in its sole discretion. The decision of the Board as to: 

  

	 	(a)	the exercise of any discretion conferred on the Board or Telecom by the Scheme; 

 

	 	(b)	the interpretation of this document; 

  

	 	(c)	any other matter touching upon the Scheme, 

 shall be conclusive and binding on Executives and Telecom and shall not be capable of being challenged or appealed. 
  

	14.2	Without limiting clause 14.1, the Board may determine in its sole discretion: 

 

	 	(a)	whether a Fundamental Change has occurred; and 

  

	 	(b)	the date on which a Complete Acquisition or Fundamental Change occurred. 

  

	14.3	The Board may delegate (to the extent permitted by law) to any person (and revoke any delegation of) any or all of its powers, discretions, rights and obligations under
the Scheme from time to time as it sees fit, and references to “Telecom” and the “Board” will be construed accordingly. 

  

	15	Amendment 

  

	15.1	Telecom may from time to time, subject to clause 15.2: 

  

	 	(a)	vary any term of an Executive’s participation in the Scheme, with the agreement of the Executive; or 

 

	 	(b)	amend the Scheme, if it considers that: 

  

	 	(i)	the interests of Executives are not materially prejudiced; or 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	16

  

	 	(ii)	the amendment is fair and appropriate having regard to the proper interests of Executives, Telecom, and/or shareholders of Telecom; 

 

	 	(c)	terminate the Scheme. 

  

	15.2	Telecom: 

  

	 	(a)	may not amend the Scheme (or vary any term of an Executive’s participation in the Scheme) if this would give rise to a Breach; but 

 

	 	(b)	may amend or terminate the Scheme if Telecom considers that this would avoid giving rise to a Breach. 

 

	15.3	Telecom will give notice of any amendment to or termination of the Scheme to all Executives affected. 

 

	16	Miscellaneous 

  

	16.1	All actions (including directions) and consequences deemed to occur under the Scheme will occur irrevocably and unconditionally (subject to clause 15).

  

	16.2	If a calculation under the Scheme produces a fraction of a cent or Share, the product will be rounded to the nearest whole number favourable to the Executive.

  

	16.3	The Scheme represents all of the terms on which Options are issued and exercised under the Scheme, except those which Telecom implies to give effect to the Scheme.

  

	16.4	No failure, delay or indulgence by Telecom in exercising any power or right conferred on it under the Scheme will operate as a waiver of that power or right; nor will a
single exercise of a power or right preclude further exercises, or the exercise of any other power or right under the Scheme. 

  

	16.5	Any dispute which arises under the Scheme will be determined by Telecom. Telecom’s decision will be final. 

 

	16.6	All notices and other communications under the Scheme will be in writing and addressed to the recipient at the address or facsimile number from time to time designated
by the recipient. Unless any other designations are given: 

  

	 	(a)	the addresses and facsimile numbers of Telecom and an Executive are those set out in the offer document; and 

 

	 	(b)	notices or communications to Telecom will be addressed and marked to the attention of Telecom’s Company Secretary. 

			
	TELECOM SHARE RIGHTS SCHEME 2012	  	17

  

 Any notice or communication will be deemed to have been received: 

 

	 	(c)	at the time of delivery, if delivered by hand; 

  

	 	(d)	on the second Business Day after the date of mailing, if sent by post or airmail with postage prepaid; or 

 

	 	(e)	on the day on which confirmation of proper transmission is received (on transmission), if sent by facsimile. 

 

	16.7	The Scheme will be governed by and construed in accordance with New Zealand law.Form of Director appointment letter

 Exhibit 4.7 

 

			
	 Chairman’s Office

Telecom Corporation of New Zealand Limited 
  

[Date]
  

[Name]

[Address] 
 [Address] 

[Address]
	  	

 Dear [—] 
 APPOINTMENT TO THE BOARD OF TELECOM 
 On behalf of Telecom Corporation of New Zealand
Limited (“Telecom”), I am delighted to invite you to join the Board of Telecom (“Board”). 
 This appointment
is conditional upon: 
  

	 	(a)	receipt by us of a counter-signed copy of this letter; 

  

	 	(b)	formal approval of your appointment by each Director of Telecom by way of Directors’ resolution; 

 

	 	(c)	receipt by us of your signed Notice of Consent to Act as a director pursuant to the Companies Act 1993, in the prescribed form; and 

 

	 	(d)	your signed acknowledgement and undertaking in terms of Rule 2.2.2 of the NZSX Listing Rules in which you agree to be bound by those rules. 

If you accept this invitation and the terms of this letter, and the above conditions are satisfied, you will be appointed as a Director of the Board with
effect from [—]. 
 This letter and the terms of your appointment should be read subject to
Telecom’s Constitution, the listing rules of any exchange on which Telecom is listed, and applicable law, as any of these may be amended from time to time. 
 Term of appointment 
 Once your appointment takes effect, it shall be terminable by you by
delivering a signed notice of resignation to the address for service of the Company. Your appointment as a Director will also terminate: 
  

	 	(a)	if an ordinary resolution is passed by shareholders at a meeting called for the purpose of, or for purposes that include, your removal from the position of Director; or

  

	 	(b)	for any of the reasons specified from time to time in Telecom’s Constitution, the listing rules of any exchange on which Telecom is listed or any applicable
legislation. 

  
 1 

 You will be required to stand for election at the [—]
annual meeting of shareholders. Following your election by shareholders, you will be subject to periodic retirement by rotation, together with other non-executive members of the Board. In accordance with the current NZX and ASX listing rules, one
third of directors must retire at each annual meeting and no director may hold office past the third annual meeting following his or her appointment. Each director subject to retirement by rotation at an annual meeting is eligible for re-election by
shareholders at that meeting. 
 Notwithstanding the above, when a Director is coming to the end of the applicable period of office, the Board
will consider whether or not the Director should be invited to stand for re-election for a further term. You agree not to seek re-election on any occasion if the Chairman informs you that your re-election does not have the support of a majority of
Directors. 
 Independence classification and interests register 
 The Board must carry out a thorough assessment of any relationships or interests you hold that may give rise to an actual or potential conflict of interest, in accordance with the criteria specified in
the Board Charter and the Companies Act 1993. Telecom is required to notify the market of a director’s independence status no later than 10 business days following their appointment. 
 You are also required to disclose to the Board and to the Group Company Secretary all relationships you have with Telecom, and relevant private or other business interests, for entry in the interests
register (including any potential transactions which may constitute a transaction by Telecom with a related party under the listing rules of any exchange on which Telecom is listed). 
 You agree that you will consult with the Chairman before accepting any other (or further) directorships of companies, or taking any other action, relevant to an assessment of your independence.

 Whenever any of your interests change (due to your resignation or future appointment), you are required to inform the Group Company Secretary
of the amendments within two business days or immediately if that change may lead to a different assessment of independence under the Board Charter. 
 You otherwise agree to provide Telecom with all information it may reasonably require to confirm your independence under the Board Charter or as required by the listing rules of any exchange on which
Telecom is listed. 
 Obligations and responsibilities 
 You shall be subject to the general and specific duties and obligations imposed on directors by law and by the listing rules of any stock exchange that Telecom is listed on from time to time. Advice on
the application of such duties can be provided or procured for you by the Group Company Secretary on request. 
 You will be provided with a
handbook which contains copies of relevant Board governance materials including Telecom’s Constitution, the Board and Committee Charters, relevant Telecom policies and the Directors’ Code of Ethics. In addition, new Directors are given
access to recent Board and Committee papers and meeting minutes. 

  
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 During the period of your appointment, you are required to comply with all of Telecom’s Board and
applicable Committee charters, policies, codes and procedures as then in force, as well as such other requirements or policies as the Board may from time to time specify. Any new requirements or policies or amendments to these requirements or
policies will be provided to you. Directors are expected to carry out their duties in accordance with all applicable legal standards and standards of good corporate governance. It is expected that Directors will devote sufficient time to be prepared
fully for all meetings. 
 You agree to provide Telecom with all such information and take all such steps it may reasonably require to meet:

  

	(a)	its obligations under any applicable law; 

  

	(b)	the requirements of, or principles or guidelines under, the listing rules of any exchange on which Telecom is listed; and 

 

	(c)	the standards of good commercial practice as determined by the Board from time to time. 

 Power of Directors 
 During your term as Director of Telecom and subject to Telecom’s
Constitution, you acknowledge that: 
  

	(a)	the business of Telecom is to be managed by or under the direction of the Board; and 

 

	(b)	the Directors may exercise all of the powers of Telecom, except those powers required to be exercised by Telecom in a general meeting. 

Meetings 
 As a Director, you will
perform the normal duties of a director, including (without limitation) attending scheduled and special Board meetings, and each annual meeting. 
 It is preferred that you attend all of the scheduled meetings in person; however, if this is not possible, you agree to participate in the relevant meeting by video conference or audio. It is highly
recommended that you attend the annual meeting in person. 
 Guidelines are in place to ensure that papers to be considered at meetings are
distributed to Directors well in advance of meetings to enable a sufficient time to review papers prior to the meetings. This paragraph is not intended to replace or limit the duties imposed on you by law. 

Details relating to the time and location of Board meetings to be held will follow. 
 Committees 
 You may be appointed by the Board to act as a member or chairperson of one or
more Board Committees. The current Board Committees are the Audit and Risk Management Committee, the Nominations and Corporate Governance Committee and the Human Resources and Compensation Committee. From time to time, ad hoc committees may be
formed to consider particular matters. 
 Committees usually meet on the day prior to, or the day of, the Board meetings. You are not required
to attend the meetings of Committees that you have not been appointed to; however, you will have all papers available to you and will receive full minutes of these meetings. 

  
 3 

 Induction Training and Continuing Education Arrangements 

Telecom will tailor an induction programme for you to ensure that, as a new Director, you are appropriately introduced to management and the business and
that you are acquainted with relevant local industry knowledge. 
 Telecom expects its Directors to educate themselves on an ongoing basis to
ensure that they may appropriately and effectively perform their duties. 
 Visits to specific Company operations when appropriate and briefings
from key executives and industry experts will be arranged as required. 
 Remuneration 

The fee payable for your services will be NZ$130,000 per annum plus GST (if applicable), less any applicable withholding tax, commencing with effect from
the date of your appointment, and subject to increase on shareholder approval. 
 If you undertake the role as chairperson of the Audit and Risk
Management Committee or Human Resources and Compensation Committee, then you are expected to be entitled to an additional fee of NZ$35,000 or NZ$30,000 respectively for that role. If you are a member of the Audit and Risk Management Committee and/or
Human Resources and Compensation Committee, then you are expected to be entitled to a fee of NZ$17,000 or NZ$15,000 respectively, noting that only one Committee fee (being the higher fee) is payable even if you are a member of more than one
Committee. 
 You will be entitled to certain information, technology, computing and communication services and the reimbursement of your
expenses in accordance with the terms of the Directors’ Expenses Policy from time to time. 
 Insurance and Indemnities 

Currently Telecom holds an insurance policy for its Directors and Officers and grants them an indemnity, which in accordance with Telecom’s
Constitution indemnifies Directors and Officers to the maximum extent permitted by law. A deed of indemnity relevant to non-executive Directors will be provided to you in due course. 
 Securities Trading and Shareholding 
 Telecom’s Insider Trading Policy governs the
ability for Directors and Officers to trade Telecom shares. By signing this letter, you agree to comply with that policy (as amended from time to time). A key feature of this policy is that Directors must obtain the Chairman’s consent prior to
trading. Directors are encouraged but not required to hold shares in Telecom. The Board has discretion to approve alternative arrangements where it considers it appropriate. 
 Within five business days of your appointment, it will be necessary to file with the NZX and the ASX a notice of your relevant interests in Telecom securities and related matters pursuant to the listing
rules of those exchanges and applicable securities markets laws. On receipt of your disclosure of interests, we will attend to these filings on your behalf. 

  
 4 

 You also agree to provide all information to Telecom required for filing with the NZX and ASX within three
business days after any dealing in Telecom’s securities which results in a change in your relevant interests in Telecom securities. 

Professional Advice 
 Directors are
empowered to consult with external advisers at Telecom’s expense to enable them to perform their duties. In addition, Directors may inspect any of Telecom’s records at any time. Prior consultation with the Chairman is expected prior to
engagement of outside advisers. 
 Access 
  

	(a)	To Board Papers 

 During the period of
your appointment and afterwards for seven years (or such longer period decided by Telecom), you will be permitted access during business hours to those Board Papers which relate to the period of your term in office and will be provided with a copy
of such Board Papers upon request. 
 Board Papers means all information in tangible form including board papers, submissions, minutes, letters,
memoranda, board committee and sub-committee papers and documents referred to in any of those documents, provided to you during the time that you are a Director of Telecom and in that capacity. 

 

	(b)	To Information and Employees 

 You will be
provided with all appropriate financial and operating information necessary for the performance of your duties. While you are a Director, you will be granted access to any information or employees you believe you need to have access to in order to
carry out your duties, subject to any applicable law that would restrict the disclosure of information. Notwithstanding any provisions in this letter, if you take legal action against Telecom or intend to do so, your rights of access will be limited
to those rights provided by law. 
 Confidentiality 
 You must apply the highest standards of confidentiality and not disclose to any person (whether during the course of the appointment or at any time before or after) any confidential information concerning
Telecom or its subsidiaries, other than to discharge your legal duties. When you cease to be a Director you agree to return to Telecom all property, materials and documents of Telecom, other than such documents as you reasonably need to retain as a
record of the discharge of your duties to Telecom. 
 You agree that you will not reveal or make known any of the matters, affairs, or concerns
which may come to your knowledge as a Director of Telecom, to any person or persons whatsoever, except in the course and in the performance of your duties, or under the compulsion or obligation of law, or when officially required to do so by the
Board, or by the auditors of Telecom, or by any annual meeting. 
 Privacy 

 

	(a)	You acknowledge that any personal information you have provided or will provide to Telecom, as a result of your appointment as a Director or otherwise, may be used or
disclosed by Telecom as described below. 

  
 5 

	(b)	Telecom may use or disclose your information for any of the following purposes (including disclosing it to a related body corporate of Telecom who may also use it for
these purposes): 

  

	 	(i)	to comply with the listing rules of any exchange on which Telecom is listed; 

 

	 	(ii)	to comply with any applicable law; 

  

	 	(iii)	for corporate governance purposes, and to monitor compliance with internal policies and this letter; 

 

	 	(iv)	to comply with any statutory, regulatory or stock exchange requirements or periodic reporting obligations under laws in any jurisdiction which require Telecom to
disclose information to any statutory body, regulator or stock exchange regulatory authorities; and 

  

	 	(v)	to prepare offering memoranda, prospectuses, disclosure statements, registration statements, information memoranda and like associated documents in connection with the
offering and sale of debt, equity and hybrid securities. 

  

	(c)	You may ask for access to the personal information that Telecom or its related bodies corporate hold about you in your capacity as a Director of Telecom. To find out
what sort of personal information Telecom holds about you as a Director, or to make a request for access, you should contact Telecom’s Group Company Secretary. If, for any reason, Telecom is unable to grant access to you to any personal
information, Telecom will advise you of that reason. 

  

	(d)	You acknowledge that, if you fail to provide any information required under this letter, you will breach the terms of your appointment and you may also be in breach of
your obligations under applicable listing rules or at law. 

 Fellow Directors 

Full details of your fellow Board members including contact information will be provided to you and your details will be provided to your fellow Board
members. Would you please ensure that any alterations are promptly notified to the Group Company Secretary. 
 Governing Law 

This letter is governed by, and shall be construed in accordance with, New Zealand law. 
 Agreement to Appointment 
 Please confirm your agreement to the above by signing and
returning to me the enclosed duplicate of this letter. 
 Yours sincerely 
 [—] 
 Chairman 

  
 6 

 for and on behalf of 
 Telecom Corporation of New Zealand Limited 
 I confirm and agree to the above 

 

	
	  

	[Insert name of Director]
	
	Date:

  
 7

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