Document:

Exhibit
4(c).12b

 

Chief Executive
Securities Agreement 2003

 

 

Westpac Banking
Corporation

ABN 33 007 457 141

David Raymond Morgan

 

 

Allens Arthur
Robinson

The Chifley Tower

2 Chifley Square

Sydney NSW 2000

Australia

Tel 61 2 9230 4000

Fax 61 2 9230 5333

 

© Copyright Allens
Arthur Robinson 2003

 

 

	
  Chief Executive Securities Agreement 2003

  	
   

  	
  Allens Arthur
  Robinson

  

 

Table of Contents

 

	
  1.

  	
  Definitions and
  interpretations

  
	
   

  	
  1.1 Definitions

  
	
   

  	
  1.2
  Interpretation

  
	
  2.

  	
  Conditions
  Precedent

  
	
   

  	
  2.1 Shareholder Approval

  
	
   

  	
  2.2 Employment

  
	
  3.

  	
  Grant of Options and Share Rights

  
	
   

  	
  3.1 Grant

  
	
   

  	
  3.2 Terms of grant

  
	
  4.

  	
  Creation and Lapse of Securities

  
	
   

  	
  4.1 Creation of Securities

  
	
   

  	
  4.2 Time of lapse

  
	
   

  	
  4.3 Rights
  following lapse

  
	
  5.

  	
  Exercise
  of Securities

  
	
   

  	
  5.1 Vested Securities

  
	
   

  	
  5.2 Exercise Period

  
	
   

  	
  5.3
  Exercise of Securities in part

  
	
   

  	
  5.4 Exercise procedure

  
	
  6.

  	
  Performance Hurdles and Vested
  Securities

  
	
   

  	
  6.1 Performance Hurdles

  
	
   

  	
  6.2 Determination of number of Vested
  Securities

  
	
   

  	
  6.3 Rounding of fractions

  
	
  7.

  	
  Allotment
  of Shares

  
	
  8.

  	
  Capital
  Event

  
	
  9.

  	
  Ranking
  and listing

  
	
  10.

  	
  General

  
	
   

  	
  10.1

  	
  Notices

  
	
   

  	
  10 2

  	
  Error Correction

  
	
   

  	
  10.3

  	
  Remedies

  
	
   

  	
  10.4

  	
  Governing Law

  
	
  Schedule

  	
   

  
				

 

i

 

Date                       14
August 2003

 

Parties        WESTPAC
BANKING CORPORATION (ABN 33 007 457 141) of 60 Martin Place, Sydney 2000 in the
State of New South Wales (the Bank)

 

DAVID RAYMOND MORGAN C/-
of Level 27, 60 Martin Place, Sydney, 2000 in the State of New South Wales (Dr. Morgan)

 

Recital         In
consideration of the services to be rendered by Dr. Morgan to the Bank during
the term of his office as Managing Director and Chief Executive Officer, the
Bank proposes to grant options and share rights to Dr. Morgan on the following
terms and conditions.

 

Operative Provisions

 

1.                                      Definitions and interpretations

 

1.1                               Definitions

 

In this Agreement the
following terms have the following meanings:

 

ASX means Australian Stock Exchange
Limited (ABN 98 008 624 691).

 

Award means each grant of Securities pursuant
to Clause 3.1, and Performance Options and Performance Share Rights having the
same Commencement Date shall be separate awards.

 

Bank  means Westpac Banking
Corporation (ABN 33 007 457 141) or any company that becomes a holding company
of Westpac Banking Corporation.

 

Board means the board of directors of
the Bank from time to time, acting as a board.

 

Business Day  means any day on which the
ASX is open for trading in Sydney.

 

Capital Event means any of the
following:

 

(a)              any event affecting the number or type of securities
on issue in the capital of the Bank, including a subdivision, consolidation,
reduction, redemption or further issue of securities whether by way of rights
issue, bonus issue or otherwise; and

 

(b)             any other event which the Board in its discretion
reasonably considers should be a Capital Event.

 

Commencement Date  means in respect of any
Security, the date of commencement of the Performance Period for that Security
specified in clause 3.1.

 

1

 

Constitution  means the Bank’s
constitution as amended from time to time.

 

Corporations Act  means the
Corporations Act 2001 (Cth).

 

Determination Date  means, in respect
of any Security, the Trading Day immediately preceding the date of grant of
that Security pursuant to clause 3.1.

 

Dr. Morgan  means David Raymond Morgan
or, on his death or legal incapacity, his legal personal representative.

 

Employee  means any person who is in
full-time employment of the Bank

 

Employment Agreement  means the Chief
Executive Employment Agreement between the Bank and Dr Morgan for the period
from 1 March 2004 to 31 December 2007.

 

Exercise Price  means the amount
payable per Share, if any, on the exercise of a Security which:

 

(a)          in respect of a
Performance Option, shall be the Market Price adjusted, if necessary in respect
of Capital Events in accordance with clause 8; and

(b)         in respect of a
Performance Share Right, shall be nil.

 

First Exercise Date  means the earliest
date that Dr. Morgan may give Notice of Exercise in respect of a Security under
clause 5.2(a), being the date that Security became a Vested Security, subject
to this Agreement.

 

Group Company means the Bank and any
of its subsidiaries.

 

Last Employment Date  means the date on
which Dr. Morgan ceases to be an Employee for whatever reason.

 

Last Exercise Date  means, in respect
of each Award of Securities made pursuant to clause 3.1, the date specified as
such in that clause, ending at 5.00 pm Sydney time on that day.

 

Listing Rules means the listing rules
of the ASX as amended from time to time.

 

Market Price means the weighted
average market price per Share (rounded to the nearest whole cent, with
one-half of one cent being rounded down) of all Shares traded (excluding all
trades identified by the ASX as carrying Off-SEATS condition codes and all
‘special’ market trades) on the ASX during the one week period up to and
including the Determination Date or, if no Shares are traded on the ASX during
that one week period, the price as determined by the Board.

 

Maximum TSR Ranking  means the TSR
Ranking equal to 75%.

 

Minimum Parcel  means 50,000 Shares or
another number of Shares determined by the Board from time to time, which need
not be the same number for all purposes under this Agreement.

 

Minimum TSR Ranking  means the TSR
Ranking equal to 50%.

 

Notice of Exercise  means a duly
completed notice of exercise of a Security signed by Dr. Morgan, and lodged in
accordance with clause 5.4.

 

Peer Group
means the 100 bodies corporate comprised in the S&P/ASX 200 Index (excluding
the Bank, all entities in the property trusts sector of that Index and such
other entity or entities as the Board may from time to time determine) at the
commencement of a Performance Period, having the highest market capitalisation
at that time and ranked in descending order, from highest to lowest, according
to their market capitalisation.

 

2

 

Performance Hurdles  means
performance criteria set out in clause 6.1 .

 

Performance Option  means a right to subscribe
for or acquire one Share, or such other number of Shares as determined under
clause 8, for monetary consideration equivalent to the Exercise Price.

 

Performance Share Right  means
the right to subscribe for or acquire one Share, or such other number of Shares
as determined under clause 8, for nil monetary consideration.

 

Performance Period  means the period of 3 years
commencing on the Commencement Date applicable to that Security.

 

Register  means the register created
and maintained by or on behalf of the Bank under and in accordance with section
170 of the Corporations Act.

 

Retirement  means the voluntary
cessation of full-time employment of Dr. Morgan with the Bank solely by reason
of Dr. Morgan notifying the Board in writing of his intention to cease
full-time employment with effect on 31 December 2007, or on an earlier date
with the consent of the Board.

 

Security  means a Performance Option
or a Performance Share Right.

 

Security Interest  means a mortgage, charge,
pledge, lien or other encumbrance of any nature.

 

Shares  means fully paid ordinary
shares in the capital of the Bank.

 

Test Dare  means, in respect of a
Security, the third anniversary of the Commencement Date applicable to that
Security.

 

Test Date Notice  means the written
notification provided to Dr. Morgan under clause 6.2(b) in respect of the
Board’s determination made as of the Test Date.

 

Total Exercise Price  means
the number of Securities to be exercised in a particular case multiplied by the
Exercise Price.

 

Trading Day  means a day on which Shares
are traded on the ASX.

 

TSR  means, in respect of a body corporate,
the total shareholder return (including dividends) of the body corporate being
the amount calculated on the basis described in the Schedule.

 

TSR Ranking  means the percentage
ranking of the Bank and each body corporate comprising the TSR Ranking Group,
ranked in descending order, from highest to lowest, according to their
respective TSRs.

 

TSR Ranking Group means, on any Test
Date, the first 50 bodies corporate of the Peer Group that remain listed on the
ASX and which have published sufficient data to enable their respective TSRs to
be determined for the purposes of this Agreement.

 

Unvested Security  means a Performance Option
or a Performance Share Right that is neither a Vested Security, nor a Security
that has lapsed under clause 4.2.

 

3

 

Vested Security  has the meaning given in
clause 5.1.

 

Vesting Date  means in respect of each
Performance Period, the relevant Test Date.

 

1.2                               Interpretation

 

In this Agreement unless
the contrary intention appears:

 

(a)          a gender includes all
genders;

(b)         the singular includes the
plural and vice versa;

(c)          a reference to any
legislation or to a provision of any legislation includes any modification or
re-enactment of it, any legislative provision substituted for it and all
regulations and statutory instruments issued under it;

(d)         headings are for
convenience only and do not affect the interpretation of this Agreement;

(e)          reference to a clause,
paragraph or schedule is a reference to a clause or paragraph of and a schedule
to this Agreement as amended from time to time;

(f)            where any word or
phrase is given a definite meaning in this Agreement, any part of speech or
other grammatical form of that word or phrase has a corresponding meaning;

(g)         where the time for doing
any act, matter or thing under this Agreement falls on a day which is not a
Business Day, it shall be done on the next succeeding Business Day, except that
if the Last Exercise Date of a Security falls on a day which is not a Business
Day, it shall be brought forward to the preceding day that is a Business Day;

(h)         terms which are defined
in the Corporations Act bear the same meaning when used in this document;

(i)             words and phrases
defined in the Employment Agreement shall have the same meaning when used in
this Agreement, unless the context requires otherwise.

 

2.                                      Conditions Precedent

 

2.1                               Shareholder Approval

 

The terms of this
Agreement, except clause 1 and this clause 2, shall not become binding upon the
parties unless and until the grant of Securities, and the allotment of Shares
to be issued upon the exercise of those Securities, have been approved by a
resolution of shareholders of the Bank for the purposes of Listing Rules 10.14
and 10.15A, and the entry by the Bank into this Agreement is approved by an
ordinary resolution of shareholders of the Bank for the purposes of section 208
of the Corporations Act.

 

2.2                               Employment

 

No rights shall accrue to
Dr Morgan under this Agreement and the Bank shall have no obligations under
this Agreement in respect of the grant of any Securities, unless Dr Morgan is
employed by the Bank as its Managing Director and Chief Executive Officer on
the relevant date of grant prescribed in clause 3.1.

 

4

 

3.                                      Grant of Options and Share Rights

 

3.1                              Grant

 

Subject to the
satisfaction of the conditions precedent set out in clause 2, the Bank shall
grant to Dr. Morgan:

 

(a)          On 1 March 2004,
Performance Options to subscribe for 713,000 Shares exercisable at the Exercise
Price with a Performance Period commencing on 1 March 2004 and having a Last
Exercise Date of 28 February 2014;

(b)         On 1 March 2004,
Performance Share Rights to subscribe for 218,000 Shares for nil consideration,
with a Performance Period commencing on 1 March 2004 and having a Last Exercise
Date of 28 February 2014;

(c)          On 1 March 2005,
Performance Options to subscribe for 715,000 Shares exercisable at the Exercise
Price with a Performance Period commencing on 1 March 2005 and having a Last
Exercise Date of 28 February 2015;

(d)         On 1 March 2005,
Performance Share Rights to subscribe for 218,000 Shares for nil consideration,
with a Performance Period commencing on 1 March 2005 and having a Last Exercise
Date of 28 February 2015;

(e)          On 1 March 2006,
Performance Options to subscribe for 713,000 Shares exercisable at the Exercise
Price with a Performance Period commencing on 1 March 2006 and having a Last
Exercise Date of 28 February 2016;

(f)            On 1 March 2006,
Performance Share Rights to subscribe for 218,000 Shares for nil consideration,
with a Performance Period commencing on 1 March 2006 and having a Last Exercise
Date of 28 February 2016;

(g)         On 1 December 2006,
Performance Options to subscribe for 594,167 Shares exercisable at the Exercise
Price with a Performance Period commencing on 1 March 2007 and having a Last
Exercise Date of 30 November 2016; and

(h)         On 1 December 2006,
Performance Share Rights to subscribe for 181,667 Shares for nil consideration,
with a Performance Period commencing on 1 March 2007 and having a Last Exercise
Date of 30 November 2016.

 

3.2                               Terms of grant

 

Securities will be
granted pursuant to clause 3.1 on the basis that:

 

(a)          Performance Options and
Performance Share Rights will be granted free of charge to Dr Morgan, but Dr
Morgan must pay the Exercise Price to exercise Performance Options;

(b)         the specified number of
Shares in each case will be subject to adjustment in accordance with clause 8
of this Agreement;

 

5

 

(c)          the Performance Options
and Performance Share Rights will be exercisable on and subject to the terms of
this Agreement;

(d)         each Performance Option
and Performance Share Right is personal to Dr Morgan and may not be exercised
by any other person (except his legal personal representative) nor may it be
assigned, novated, disposed of, pledged or otherwise held subject to a Security
Interest or third party interest;

(e)          the Bank will not
recognise and will disregard any Security Interest or third party interest;

(f)            Security does not
confer on Dr Morgan the right to participate in new issues of Shares by the
Bank, including by way of bonus issue, rights issue or otherwise (but Shares
issued on the exercise of Securities will do so); and

(g)         Dr Morgan has no interest
in any Share unless and until the related Security is exercised and Shares are
allotted and issued as a result of that exercise.

 

4.                                      Creation and Lapse of Securities

 

4.1                               Creation
of Securities

 

(a)          Securities granted under
clause 3 will be created, and Dr Morgan’s title to those Securities will,
subject to clause 10.2, be evidenced for all purposes by being inscribed on the
Register. No certificate or other evidence of title to a Security will be issued
unless required under any applicable law or the Board in its sole discretion
determines otherwise.

 

(b)         Within 28 days after the
date of grant of a Security, the Board will cause to be inscribed on the
Register the number of Securities (with separate entries being made for
Performance Options and Performance Share Rights) granted to Dr Morgan and will
notify Dr Morgan accordingly.

 

4.2                               Time of lapse

 

A Security lapses if it has not been exercised on the
earlier to occur of:

 

(a)          the date of lapse under clause
5.2 or clause 6.2;

(b)         the last day of any
period specified in clauses 5.2(b) to 5.2(g) (inclusive) in which                        Dr Morgan may exercise a
Security;

(c)          the Test Date, if the
Security remains an Unvested Security on that date; and

(d)         the Last Exercise Date.

 

4.3                               Rights following lapse

 

Upon the lapse of a Security, all rights of Dr Morgan
in respect of that Security cease.

 

6

 

5.                                      Exercise of Securities

 

5.1                               Vested Securities

 

A Security may become a
Vested Security on the Vesting Date in accordance with clause 6, unless, prior
to that date, that Security has lapsed under clause 4.2.

 

5.2                               Exercise Period

 

(a)          Exercise

 

Except as provided in
clauses 5.2(b) to 5.2(g) (inclusive), a Security that is a Vested Security may
only be exercised during the period commencing on the First Exercise Date and
ending on the Last Exercise Date. Except as provided in clauses 5.2(b) to 5
2(g) (inclusive), an Unvested Security may not be exercised. Notwithstanding
any provision in this clause 5, no Security may be exercised after the Last
Exercise Date.

 

(b)         Retirement

 

If Dr Morgan ceases to be
an Employee as a result of Retirement then:

 

(i)             Dr Morgan’s
Retirement (and subsequent death) will have no effect on the status of any
Securities; and

(ii)          Dr Morgan may exercise
any Securities granted, the Commencement Date of which occurred before the Last
Employment Date, as and when they become Vested Securities in accordance with
this Agreement. All Securities granted, the Commencement Date of which has not
occurred before the Last Employment Date, will lapse on the Last Employment
Date.

 

(c)          Death or
Total and Permanent Disablement

 

If, prior to 31 December 2007, Dr Morgan ceases to be
an Employee as a result of:

 

(i)                                     death;

(ii)                                  Total
and Permanent Disablement; or

(iii)                               a
Sickness Determination by the Board, pursuant to clause 6.1 of the Employment
Agreement,

 

all Securities
granted, the Commencement Date of which occurred before the Last Employment
Date, and which have not lapsed and which:

 

(iv)                              became
Vested Securities on or prior to the Last Employment Date and remain
unexercised: or

(v)                                 were
Unvested Securities on the Last Employment Date but become Vested Securities as
at the relevant Test Date after the Last Employment Date,

 

may be exercised by Dr.
Morgan or his legal personal representative (as the case may be), at any time
commencing on the Last Employment Date (in the case of the Vested Securities
described in paragraph (c)(iv)) or the First Exercise Date (in the case of Vested
Securities described in paragraph (c) (v)), as the case may be, and ending on
the first to occur of:

 

7

 

(A) the Last Exercise
Date; and

 

(B) the fifth anniversary
of the Last Employment Date,

 

or such later date (being
not later than the Last Exercise Date) as the Board may, in its absolute
discretion, determine. All Securities granted, the Commencement Date of which
has not occurred before the Last Employment Date, will lapse on the Last
Employment Date.

 

(d)          Resignation with consent, termination without  cause

 

If, prior to 31 December
2007, Dr Morgan:

 

(i)             resigns with the
Board’s consent; or

 

(ii)          ceases to be an Employee
as a result of termination for reasons other than resignation without the
Board’s consent, Cause or poor performance,

 

all Securities that were
Vested Securities on the Last Employment Date and, notwithstanding anything to
the contrary in this Agreement, all Unvested Securities granted, the
Commencement Date of which occurred before the Last Employment Date and which
have not lapsed on the Last Employment Date, may be exercised by Dr Morgan in
accordance with this Agreement at any time prior to the Last Exercise Date. All
Securities granted, the Commencement Date of which has not occurred before the
Last Employment Date, will lapse on the Last Employment Date.

 

(e)           Other Resignation, retirement or Termination

 

If, prior to 31 December
2007, Dr Morgan ceases to be an Employee as a result of:

 

(i)             his resignation
(without the consent of the Board):

(ii)          retirement, (other than
“Retirement”, as defined); or

(iii)       termination for Cause,

 

Dr Morgan may, at any
time prior to the first to occur of the Last Exercise Date and the date that is
3 months after the Last Employment Date or such later date (being not later
than the Last Exercise Date) as the Board may, in its absolute discretion,
determine, exercise only those Securities that are Vested Securities on the
Last Employment Date. All Unvested Securities will lapse on the Last Employment
Date.

 

(f)             Termination
for poor performance

 

If, prior to 31 December
2007, Dr Morgan ceases to be an Employee as a result of termination for poor
performance pursuant to clause 6.5 of the Employment Agreement, Dr Morgan may
exercise only those Securities that on the Last Employment Date:

 

8

 

(i)             were Vested
Securities - at any time during the period ending on the earlier of the Last
Exercise Date and the first anniversary of the Last Employment Date; and

 

(ii)          were Unvested
Securities, the Commencement Date of which occurred before the Last Employment
Date and become Vested Securities as at the relevant Test Date during the
period of 12 months immediately succeeding the Last Employment Date - at any
time during the period ending on the first anniversary of the First Exercise
Date;

 

All Securities that on the Last Employment Date are
Unvested Securities in respect of which:

 

(iii)       the Commencement Date has
not occurred on the Last Employment Date; or

(iv)      the Test Date will not fall
within 12 months of the Last Employment Date,

 

will lapse on the Last Employment Date.

 

(g)         Change in
authority, status, responsibilities or duties

 

If, prior to 31 December 2007:

 

(i)             there is a material
adverse change in the authority or status of Dr Morgan or his responsibilities
are materially diminished; or

 

(ii)          the duties of Dr Morgan
assigned by the Board change, or are such that they are no longer consistent
with the role of Managing Director or Chief Executive Officer,

 

Dr Morgan may, at any time during the period
commencing on the date (Relevant Date) on which any one or more of the events
described in paragraph (g)(i) and paragraph (g)(ii) occurs and ending on the
Last Exercise Date, exercise any Security that:

 

(iii)       was a Vested Security on
the Relevant Date; or

(iv)      was an Unvested Security on
the Relevant Date, notwithstanding anything to the contrary in this Agreement.

 

9

 

5.3                               Exercise of Securities in part

 

If Dr Morgan elects to
exercise part of the Securities comprised in an Award, the Notice of Exercise
must be in respect of:

 

(a) that number of Shares
which is not less than the Minimum Parcel;

 

(b) multiples of a
Minimum Parcel; and

 

(c) that number
of Shares which will not leave any unexercised Securities comprised in that
Award totaling less than a Minimum Parcel.

 

5.4                               Exercise procedure

 

Dr Morgan may exercise
Securities by lodging a Notice of Exercise and payment in cleared funds payable
to the Bank for the Total Exercise Price (if any) applicable to those
Securities at the head office of the Bank for the time being.

 

6.                                      Performance Hurdles and Vested Securities

 

6.1                               Performance Hurdles

 

The Performance Hurdles
applicable to any Performance Period relating to any Security comprised in an
Award shall be as follows:

 

(a)          where as at any Test
Date, the TSR Ranking of the Bank is less than the Minimum TSR Ranking, the
number of Securities that shall become Vested Securities as at that Test Date
shall be zero;

 

(b)         where as at any Test
Date, the TSR Ranking of the Bank is equal to the Minimum TSR Ranking, the
number of Securities that shall become Vested Securities as at that Test Date
is the number equal to 50% of the total number of Securities comprised in that
Award;

 

(c)          where as at any Test
Date, the TSR Ranking of the Bank is equal to or greater than the Maximum TSR
Ranking, the number of Securities that shall become Vested Securities as at
that Test Date is the number equal to 100% of the total number of Securities comprised
in that Award; and

 

(d)         where as at any Test
Date, the TSR Ranking of the Bank is greater than the Minimum TSR Ranking and
less than the Maximum TSR Ranking, the number of Securities that shall become
Vested Securities as at that Test Date shall be 50% plus 2% for each whole
percentage TSR Ranking above the Minimum TSR Ranking, up to a maximum of 100%
of the total number of Securities comprised in that Award.

 

6.2                               Determination of number of Vested Securities

 

(a)          As soon as practicable
after the Test Date applicable to any Performance Period, the Board shall
determine as at that Test Date:

 

(i)                  the TSR Ranking
Group;

 

(ii)               the TSR Ranking of
the Bank and of each body corporate comprising the TSR Ranking Group;

 

10

 

(iii)            whether, and to what
extent, the Performance Hurdles applicable to that Performance Period up to
that Test Date have been satisfied;

 

(iv)           the number of Vested
Securities (if any);

 

(v)              whether any Capital
Event has occurred during the Performance Period up to that Vesting Date;

 

(vi)           the Exercise Price (if
any); and

 

(vii)        the number of Unvested
Securities that will automatically lapse on that day.

 

(b)         Following each
determination made by the Board under clause 6.2(a), the Board shall provide a
written notification to Dr. Morgan as to:

 

(i)                  whether or not
the Performance Hurdles have been met;

(ii)               the number of
Vested Securities (if any);

(iii)            the number of Unvested
Securities;

(iv)           whether a Capital Event
has occurred; and

(v)              the Exercise Price.

 

6.3                               Rounding of fractions

 

If any determination made
under clause 6.2 results in there being a function of a Vested

Security, the aggregate
number of Vested Securities shall be rounded, as follows:

 

(a) upwards to the
nearest whole number, if the function is a value of 0.5 or more; and

 

(b) downwards to the
nearest whole number, if the function is a value less than 0.5.

 

7.                                      Allotment of Shares

 

The Bank must within 28
days after receipt of a Notice of Exercise and the Total Exercise Price (if any)
in respect of Securities, allot and issue to Dr. Morgan that number of Shares
nominated in the Notice of Exercise.

 

8.                                      Capital Event

 

(a)          If a Capital Event
occurs before the lodgment of a Notice of Exercise, the Board shall determine
in respect of each Security:

 

(i) the number of
underlying Shares; and

 

(ii) the Exercise Price,

 

by taking into
account the Capital Event in a manner which is fair and equitable to Dr Morgan
and which is consistent with the relevant provisions of the Listing Rules.
Securities shall be reconstructed in a manner which will not result in any
additional benefits being conferred on Dr Morgan which are not conferred on
persons holding Shares, or vice versa.

 

(b)         The Board shall give
notice to Dr Morgan of any determination under this clause 8.

 

11

 

9.                                      Ranking and listing

 

(a)                    Shares
allotted as a consequence of the exercise of Securities will, from the date of        allotment, rank equally
with all other issued Shares.

(b)                   The Bank will
apply for official quotation of those Shares on each stock exchange           on which Shares are
quoted in accordance with the Listing Rules.

(c)                    The Securities
will not be listed for quotation on any stock exchange.

 

10. General

 

10.1                        Notices

 

(a)          Any notice or other
communication to be given under or in connection with this Agreement:

 

(i)                       must be in
writing;

(ii)                    must be
addressed to the addressee; and

(iii)                 must be handed to
the addressee or left at the address of the addressee, or sent by prepaid
ordinary post to the address of the addressee or sent to the facsimile number
of the addressee specified in paragraph (b) of this clause 10.1 or, if the
addressee notifies another address or facsimile number, to that other address
or facsimile number.

 

(b)         The address and facsimile
number of each party is:

 

	
  Bank

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Westpac Banking
  Corporation

  Level 27

  60 Martin Place

  SYDNEY NSW 2000

  
	
  Facsimile:

  	
   

  	
  (02) 9226 1234

  
	
  Attention:

  	
   

  	
  Group Executive, People
  & Performance (or such other person as notified from time to time).

  
	
   

  	
   

  	
   

  
	
  Executive

  	
   

  	
   

  
	
  Address:

  	
   

  	
  David R Morgan

  C/- Level 27

  60 Martin Place

  SYDNEY NSW 2000

  
	
  Facsimile:

  	
   

  	
  (02) 9223 3494

  

 

(c)          A notice or other
communication takes effect from the time it is received by the addressee unless
a later time is specified in that notice or other communication.

 

(d)         A notice or other
communication is taken to be received:

 

(i)                  in the case of
personal delivery, when delivered;

 

(ii)               in the case of
post, on the third Business Day after posting; and

 

(iii)            in the case of
facsimile, on production of a transmission report by the machine from which the
facsimile was sent which indicates that the facsimile was sent in its entirety
to the facsimile number of the addressee.

 

12

 

10.2                       Error Correction

 

In the event that any
error or mistake has been made in relation to the number of Securities the
subject of:

 

(a) an inscription in the
Register pursuant to clause 4.1; or

 

(b) any notification made
under clause 6.2(b),

 

that inscription or notification,
as the case may be, shall be null and void and of no effect to the extent of
any such error or mistake and the Board shall correct such error or mistake and
shall issue an amended notification or correct the Register.

 

10.3                        Remedies

 

Dr Morgan acknowledges
and agrees that in relation to any breach of this Agreement by the Bank:

 

(a)     money damages are the sole
and exclusive remedy available to Dr Morgan;

(b)    compensation by payment of
money damages constitutes a full and adequate remedy; and

(c)     all other remedies which may
(but for this clause) be available to Dr Morgan are expressly waived by Dr
Morgan in consideration of the Bank entering into this Agreement.

 

10.4                        Governing Law

 

This Agreement is governed by the laws in force in New
South Wales.

 

Executed as an agreement.

 

 

	
  SIGNED for and on
  behalf of WESTPAC

  	
   

  
	
  BANKING CORPORATION

  	
   

  
	
  by the authority of the
  Board of Directors by

  	
   

  
	
  the Chairman of the
  Board in the presence

  	
   

  
	
  of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness Signature

  	
  Signature of Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
  KAREN MILLER

  	
   

  	
  LEONARD ANDREW DAVIS

  	
   

  
	
  Name

  	
  Name of Chairman

  
					

 

13

 

	
  Signed by David Raymond Morgan in the

  	
   

  
	
  presence of:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness Signature

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
  ILANA ATLAS

  	
   

  	
   

  
	
  Print Name

  	
   

  

 

14

 

Schedule

 

The basis on which the
TSR of the Bank and each of the bodies corporate constituting the TSR Ranking
Group from time to time (the Bank and each of those bodies corporate is
referred to as an entity)
shall be calculated as follows:

 

Step 1 - calculate the average daily
closing price quoted by the ASX of an ordinary share of that entity over the
three months immediately preceding each Test Date;

 

Step 2 - add the amount calculated in Step
1 and any cash distribution under a return of capital of that entity to its
shareholders generally during the relevant Performance Period up to but
excluding that Test Date;

 

Step 3 - calculate the average daily
closing price quoted by the ASX of an ordinary share of that entity over the
three months immediately preceding the start of that Performance Period;

 

Step 4 - divide the result from Step 2 by
the result from Step 3;

 

Step 5 - divide the amount of each dividend
paid on an ordinary share of that entity during that Performance Period up to
but excluding that Test Date by the closing price quoted by the ASX of the
ordinary shares of that entity on the date of payment of the respective
dividends. Each of those amounts is a dividend yield;

 

Step 6 - to each of those dividend yields
in step 5, add the integer one (1). Each of those numbers is a result;

 

Step 7 - multiply the results from Step 6
together;

 

Step 8 - multiply the result from Step 4 by
the result from Step 7;

 

Step 9 - subtract the integer one (1) from
the result from Step 8;

 

Step 10 - multiply the result from Step 9
by 100. The result (expressed as a percentage) is the TSR for that entity.

 

Each calculation shall be
rounded to not less than 3 decimal places, and the Board may make such other
adjustments as it thinks necessary (in accordance with the principles set out
in clause 8 of this Agreement) for any Capital Event of that entity during that
Performance Period up to and excluding the relevant Test Date.

 

15Exhibit 4(c).13

 

 

	
   

  	
  Rules of the

  Westpac Banking Corporation

  Performance Plan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  as adopted at a meeting of the Board of Directors on 30 April 2002
  and subsequently amended by:

  
	
   

  	
   

  
	
   

  	
  •                                          the Board on 9 August 2002;  and

  
	
   

  	
   

  
	
   

  	
  •                                          the Board Remuneration Committee on 28
  October 2002 and 11 December 2002.

  

 

 

	
   

  	
  Allens
  Arthur Robinson

  
	
   

  	
  The Chifley Tower

  2 Chifley Square

  Sydney  NSW  2000

  Australia

  Tel  61  2 9230 4000

  Fax  61  2 9230 5333

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  © Copyright Allens Arthur
  Robinson 2002

  

 

 

	
  Table of
  Contents

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Purpose

  
	
   

  	
   

  
	
  2.

  	
  Definitions
  and interpretations

  
	
   

  	
   

  
	
  3.

  	
  Interpretation

  
	
   

  	
   

  
	
  4.

  	
  Invitation to acquire Securities

  
	
   

  	
  4.1

  	
  Issue

  
	
   

  	
  4.2

  	
  Form

  
	
   

  	
  4.3

  	
  Security price

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Application for Securities

  
	
   

  	
  5.1

  	
  Application procedure

  
	
   

  	
  5.2

  	
  Application in whole or in part

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Grant of Securities

  
	
   

  	
  6.1

  	
  Creation of Securities

  
	
   

  	
  6.2

  	
  Non-acceptance of Application

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Lapse of Securities

  
	
   

  	
  7.1

  	
  Time of lapse

  
	
   

  	
  7.2

  	
  Breach, fraud or dishonesty

  
	
   

  	
  7.3

  	
  Rights following lapse

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Exercise
  of Securities

  
	
   

  	
  8.1

  	
  Vested Securities

  
	
   

  	
  8.2

  	
  Exercise Period

  
	
   

  	
  8.3

  	
  Exercise of Securities in part

  
	
   

  	
  8.4

  	
  Exercise procedure

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Performance Hurdles and Vested Securities

  
	
   

  	
  9.1

  	
  Performance criteria

  
	
   

  	
  9.2

  	
  Performance Hurdles

  
	
   

  	
  9.3

  	
  Determination of number of Vested
  Securities

  
	
   

  	
  9.4

  	
  Performance Election Rights

  
	
   

  	
  9.5

  	
  Rounding of fractions

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Allocation of Shares

  
	
   

  	
  10.1

  	
  Allotment of Shares

  
	
   

  	
  10.2

  	
  Purchase of Shares

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Change
  in Control

  
	
   

  	
   

  
	
  12.

  	
  Capital
  Event

  
	
   

  	
   

  
	
  13.

  	
  New issues

  
	
   

  	
   

  
	
  14.

  	
  Securities not transferable

  
	
   

  	
   

  
	
  15.

  	
  Security
  Interest

  
	
   

  	
   

  
	
  16.

  	
  Ranking and listing

  
	
   

  	
   

  
	
  17.

  	
  Issue
  limitations

  

 

i

 

	
  18.

  	
  No
  interest in Shares until exercise

  
	
   

  	
   

  
	
  19.

  	
  Commencement
  and termination

  
	
   

  	
  19.1

  	
  Commencement

  
	
   

  	
  19.2

  	
  Termination and Suspension

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Administration of the Plan

  
	
   

  	
   

  
	
  21.

  	
  Amendment
  of the Plan

  
	
   

  	
  21.1

  	
  By the Board

  
	
   

  	
  21.2

  	
  Listing Rules

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Law, Listing Rules and the Constitution

  
	
   

  	
   

  
	
  23.

  	
  Rights of Participants

  
	
   

  	
   

  
	
  24.

  	
  General

  
	
   

  	
  24.1

  	
  Advice

  
	
   

  	
  24.2

  	
  Costs and Expenses

  
	
   

  	
  24.3

  	
  Dispute

  
	
   

  	
  24.4

  	
  Notices

  
	
   

  	
  24.5

  	
  Error Correction

  
	
   

  	
  24.6

  	
  Governing Law

  

 

ii

 

WESTPAC BANKING CORPORATION (ABN 33 007 457
141)

 

PERFORMANCE PLAN

 

RULES

 

1.                                     Purpose

 

The Westpac Banking
Corporation Performance Plan has been established as an initiative for creating
a stronger link between employee performance and reward and increasing
shareholder value by enabling Participants to have a greater involvement with,
and share in the future growth and profitability of the Bank.

 

2.                                     Definitions and interpretations

 

In this document the
following terms have the following meanings:

 

Application
means an application on an Application Form by an Eligible Employee to acquire
Securities under the Plan.

 

Application Form means the application form in such form as the Board may approve from
time to time.

 

ASIC
means the Australian Securities and Investments Commission.

 

ASIC Act
means the Australian Securities and Investments Commission Act 2001 (Cth).

 

ASX means
Australian Stock Exchange Limited (ABN 98 008 624 691).

 

Award means,
in relation to a Participant, the number of Securities created in favour of
that Participant pursuant to clause 6, having the same Issue Date and, if those
Securities are Performance Securities, the same Performance Period, and, if
those Securities consist of both Options and Share Rights, the creation of
those Options and those Share Rights shall each be taken to be separate awards.

 

Bank
means Westpac Banking Corporation (ABN 33 007 457 141) or any company that
becomes a holding company of Westpac Banking Corporation.

 

Board
means the board of directors of the Bank from time to time.

 

Business Day
means any day other than a Saturday, Sunday or other day on which commercial banking
institutions in Sydney are authorised or required by law to be closed.

 

Capital Event means any of the following:

 

(a)                                  any event affecting the number or type of
securities on issue in the capital of the Bank, including a subdivision,
consolidation, reduction, redemption or further issue of securities whether by
way of rights issue, bonus issue or otherwise; and

 

(b)                                 any other event which the Board in its
discretion reasonably considers should be a Capital Event.

 

1

 

Change in Control occurs when a person’s voting power is more than (or will become more
than) 35% in relation to the Bank (excluding any voting power held by virtue of
acceptances under an off-market bid unless or until the bid is or becomes
unconditional).

 

Class Order
means an instrument made by ASIC that exempts each person in a class of persons
from the Corporations Act, the ASIC Act or any part of either or both, or that
modifies the application of the Corporations Act, the ASIC Act or any part of
either or both in particular circumstances.

 

Condition
means, in respect of any Security, one or more conditions (if any) determined
by the Board in its absolute discretion to apply to that Security including,
without limitation, Performance Hurdles, First Exercise Date and Last Exercise
Date, as specified in an Invitation made to the relevant Eligible Employee
under clause 4.

 

Conditionally Vested Securities means, the number of Performance Securities
that would become Vested Securities if the only Condition to be satisfied on
the Test Date is the Performance Hurdles applicable to those Performance
Securities.

 

Constitution
means the Bank’s constitution as amended from time to time.

 

Corporations Act means the Corporations Act 2001 (Cth).

 

Determination Date means the Trading Day immediately preceding the date of an Invitation.

 

Dual Listed Company Structure means an arrangement whereby, among other
things, two corporations have a unified management structure, but where each of
the two corporations retains its separate legal identity and existing stock
exchange listing.

 

Eligible Employee means an Employee whom the Board determines is to receive an
Invitation under the Plan.  The Board
may also determine at any time that an Employee who is located in a
jurisdiction where it is, in the opinion of the Board, not reasonably
practicable to invite participation in the Plan, is not an Eligible Employee
and that, until the Board determines otherwise, such Employee shall not receive
an Invitation under the Plan.

 

Employee
means any person who is in full-time or part-time employment of a Group
Company.

 

Exercisable Security means an Unvested Security which becomes a Vested Security pursuant to
a determination made under clause 9.3(b)(iv), such determination to be made on
the basis that the Test Date applicable to that Security:

 

(a)                                will be the Quarterly TSR Test Date
immediately preceding the Last Employment Date of the Participant holding that
Security; or

 

(b)                               if no Quarterly TSR Test Date has occurred
since the Issue Date of that Security, will be taken to be the Last Employment
Date of that Participant.

 

Exercise Price means the amount payable per Share, if any, on the exercise of a
Vested Security or an Exercisable Security calculated as follows:

 

(a)                                  the Market Price; or

 

(b)                                 any other amount (which may be nil) specified
by the Board in the Invitation,

 

in each case making
appropriate adjustment, if any, in respect of Capital Events in accordance with
clause 12.

 

2

 

First Exercise Date means the earliest date that a Participant may give Notice of Exercise
under clause 8.2(a), such date to be determined by the Board in its absolute
discretion and, once determined, specified in that Participant’s Invitation.

 

First Test Date means, in respect of a Peformance Security having a Performance Period
of:

 

(a)                                  4 years, the second anniversary (or such
other date as may be determined from time to time by the Board and specified in
an Invitation made under clause 4); or

 

(b)                                 5 years, the third anniversary (or such other
date as may be determined from time to time by the Board and specified in an
Invitation made under clause 4,

 

of the commencement date of
that Performance Period.

 

First Test Date Notice means the written notification provided to a Participant under clause
9.3(c) in respect of the Board’s determination made as of the First Test Date.

 

Group Company means the Bank and any of its subsidiaries.

 

Invitation
means an invitation to apply to acquire either Options, Share Rights or both
under the Plan, subject always to compliance with any Law.

 

Issue Date
means the date on which a Security is created under clause 6.1 by being
inscribed on the Register.

 

Last Employment Date means, with respect to a particular Participant, the date on which:

 

(a)                                that Participant ceases to be an Employee for
whatever reason; or

 

(b)                               that Participant’s employer (being a company
other than the Bank) ceases to be a Group Company.

 

Last Exercise Date means the day ending at 5.00 pm Sydney time on the date 10 years after
the Issue Date or such other earlier date as is determined by the Board and
specified in an Invitation to an Eligible Employee.

 

Law means
the applicable law of the jurisdiction in which an Eligible Employee is located
at the time of receipt of an Invitation.

 

Listing Rules means the listing rules of the ASX as amended from time to time.

 

Market Price
means the weighted average market price per Share of all Shares traded on the
ASX during the one week period up to and including the Determination Date.  The Board may exercise a discretion to
include or exclude particular transactions from this calculation (e.g.
“specials”) as it thinks fit.  If no
Shares are traded on the ASX during that one week period, the price as determined
by the Board.

 

Maximum TSR Ranking means the TSR Ranking equal to 75% or such other percentage as
determined by the Board at the time of determination of the Performance Hurdles
applicable to the relevant Securities.

 

Minimum Parcel means the minimum number of Shares determined by the Board from time
to time, which need not be the same number for all purposes of the Plan.

 

Minimum TSR Ranking means the TSR Ranking equal to 50% or such other percentage as
determined by the Board at the time of determination of the Performance Hurdles
applicable to the relevant Securities.

 

3

 

Notice of Exercise means a duly completed notice of exercise of a Vested Security or an
Exercisable Security signed by the Participant, in a form approved by the Board
from time to time, and lodged in accordance with clause 8.4.

 

Option
means a right to subscribe for one Share under the Plan, or such number of
Shares as determined under clause 12, for monetary consideration exceeding
$1.00 per Share.

 

Participant
means:

 

(a)                                  an Eligible Employee who returns a duly
completed Application Form in accordance with clause 5.1(a);

 

(b)                                 the legal personal representative of that
Eligible Employee where that legal personal representative’s name has been
entered on the Register as the holder of the Securities; or

 

(c)                                  if, because of the Bankruptcy Act 1966 (Cth)
or equivalent legislation in any other jurisdiction, Securities (or the rights
under those Securities) held under the Plan that form part of the property of
an Eligible Employee, vest in the trustee of that Eligible Employee’s estate,
that trustee, whether or not the name of that trustee has been entered in the
Register.

 

Peer Group
means the 100 bodies corporate comprised in the S&P/ASX 200 Index
(excluding the Bank, all entities in the property trusts sector of that Index
and such other entity or entities as the Board may from time to time determine)
at the commencement of a Performance Period, having the highest market
capitalisation at that time and ranked in descending order, from highest to
lowest, according to their market capitalisation.

 

Performance Hurdles means performance criteria as set out or referred to in the relevant
Invitation, being the criteria set out in clause 9.2 and clause 9.3 unless the
Board determines alternative, additional or modified performance criteria under
clause 9.1.

 

Performance Option means an Option that at the time of grant was subject to Performance
Hurdles.

 

Performance Period means, in respect of any Performance Security, the period commencing
and ending on dates as determined by the Board for the purposes of determining
the extent (if any) to which the Performance Hurdles have been satisfied.

 

Performance Security means a Performance Option or a Performance Share Right.

 

Performance Share Right means a Share Right that at the time of grant was subject to
Performance Hurdles.

 

Plan
means the Westpac Banking Corporation Performance Plan.

 

Quarterly TSR Test Date means, in respect of any Performance Security, the last Business Day of
each March, June, September and December during the Performance Period
applicable to that Performance Security.

 

Register
means the register created and maintained by or on behalf of the Bank under and
in accordance with section 170 of the Corporations Act.

 

Retirement
means the voluntary cessation of employment of a Participant with a Group
Company solely by reason of that Participant having notified that Group Company
of his or her intention to permanently leave the workforce.

 

Rules
means the rules of the Plan as set out in this document.

 

4

 

Satisfaction Date means the date that is specified in an Invitation to an Eligible
Employee as the last possible date on which Conditions must be and remain
satisfied.

 

Second Test Date means, in respect of a Performance Security having a Performance Period
of:

 

(a)                                  4 years, the third anniversary (or such other
date as may be determined from time to time by the Board and specified in an Invitation
made under clause 4); or

 

(b)                                 5 years, the fourth anniversary (or such
other date as may be determined from time to time by the Board and specified in
an Invitation made under clause 4),

 

of the commencement date of
that Performance Period.

 

Second Test Date Notice means the written notification provided to a Participant under clause
9.3(c) in respect of the Board’s determination made as of the Second Test Date.

 

Security
means an Option or a Share Right.

 

Security Interest means a mortgage, charge, pledge, lien or other encumbrance of any
nature.

 

Share Right
means, the right to subscribe for or acquire one Share, or such other number of
Shares as determined under clause 12, for either nil or monetary consideration
not exceeding $1.00 per Share or such other amount as determined by the Board
from time to time.

 

Shares
means fully paid ordinary shares in the capital of the Bank.

 

Tax
includes any tax, levy, impost, deduction, charge, rate, contribution, duty or
withholding which is assessed (or deemed to be assessed), levied, imposed or
made by any government or any governmental, semi-governmental or judicial
entity or authority together with any interest, penalty, fine, charge, fee or
other amount assessed (or deemed to be assessed), levied, imposed or made on or
in respect of any or all of the foregoing.

 

Tax Act
means the Income Tax Assessment Act 1936 (Cth) or the Income Tax Assessment Act
1997 (Cth) or both, as the context requires.

 

Test Date
means, in respect of each Performance Period, each of:

 

(a)                                the First Test Date;

 

(b)                               the Second Test Date;

 

(c)                                the Third Test Date; and

 

(d)                               in any case where a determination of the
Board is required under:

 

(i)                                   clause 8.2(d)(iv) or clause 8.2(e)(ii), the
date (being either a Quarterly TSR Test Date or the Last Employment Date of the
relevant Participant); or

 

(ii)                                clause 11, the date (being either a Quarterly
TSR Test Date, a Test Date or the Notice Date),

 

on or as at which such a
determination is required to be made.

 

Third Test Date means, in respect of a Performance Security having a Performance Period
of:

 

(a)                                  4 years, the fourth anniversary (or such
other date as may be determined from time to time by the Board and specified in
an Invitation made under clause 4; or

 

(b)                                 5 years, the fifth anniversary (or such other
date as may be determined from time to time by the Board and specified in an
Invitation made under clause 4), of the commencement date of that Performance
Period.

 

5

 

Third Test Date Notice means the written notification provided to a Participant under clause
9.3(c) in respect of the Board’s determination made as of the Third Test Date.

 

Total and Permanent Disablement, in relation to a Participant, means that
that Participant has, in the opinion of the Board, after considering such
medical and other evidence as it sees fit, become incapacitated to such an
extent as to render the Participant unlikely ever to engage in any occupation
with the Bank or any other Group Company for which he or she is reasonably
qualified by education, training or experience.

 

Total Exercise Price means the number of Vested Securities or Exercisable Securities to be
exercised in a particular case multiplied by the Exercise Price.

 

Trading Day
means a day on which Shares are traded on the ASX.

 

TSR
means, in respect of a body corporate, the total shareholder return (including
dividends) of the body corporate being the amount calculated on a basis,
rounded to not less than 3 decimal places, to be determined from time to time
by the Board.

 

TSR Ranking
means the percentage ranking of the Bank and each body corporate comprising the
TSR Ranking Group, ranked in descending order, from highest to lowest,
according to their respective TSRs.

 

TSR Ranking Group means, on any Test Date, the first 50 bodies corporate of the Peer
Group that remain listed on the ASX and which have published sufficient data to
enable their respective TSRs to be determined for the purposes of this Plan.

 

Unhurdled Security means an Option that is not a Performance Option or a Share Right that
is not a Performance Share Right.

 

Unvested Security means an Option or a Share Right that is neither a Vested Security nor
a Security that has lapsed under clause 7.

 

Vested Security has the meaning given in clause 8.1.

 

Vesting Date
means, unless an Invitation to an Eligible Employee specifies otherwise, in
respect of each Performance Period, the first to occur:

 

(a)                               the date on which a Participant makes an
election under clause 9.4(a);

 

(b)                              the Third Test Date; and

 

(c)                                 the Test Date on which the Board is required
to make a determination under clause 8.2(d)(iv), clause 8.2(e)(ii) or clause
11.

 

3.                                     Interpretation

 

In this document unless the
contrary intention appears:

 

(a)                               a gender includes all genders;

 

(b)                              the singular includes the plural and vice
versa;

 

6

 

 

(c)                               a reference to any legislation or to a
provision of any legislation includes any modification or re-enactment of it,
any legislative provision substituted for it and all regulations and statutory
instruments issued under it;

 

(d)                              headings are for convenience only and do not
affect the interpretation of these Rules;

 

(e)                               reference to a clause or paragraph is a
reference to a clause or paragraph of these Rules, or the corresponding Rule or
Rules of this Plan as amended from time to time;

 

(f)                                 where any word or phrase is given a definite
meaning in these Rules, any part of speech or other grammatical form of that
word or phrase has a corresponding meaning;

 

(g)                              where the time for doing any act, matter or
thing under these Rules falls on a day which is not a Business Day, it shall be
done on the next succeeding Business Day; and

 

(h)                              terms which are defined in the Corporations
Act bear the same meaning when used in this document.

 

4.                                     Invitation to acquire Securities

 

4.1                            Issue

 

In its absolute discretion
and subject to these Rules, the Board may from time to time issue or cause to
be issued Invitations on behalf of the Bank to Eligible Employees in respect of
that number or value of Securities as the Board in its discretion
determines.  In determining the number
or value of Securities to be the subject of individual Invitations, the Board
may determine that those Invitations be made on a differential basis to
Eligible Employees, different classes of Eligible Employees or to Eligible
Employees within the same class, as the case may be.

 

4.2                            Form

 

An
Invitation may take any form determined by the Board from time to time and
will:

 

(a)                                specify or include the following information:

 

(i)                                  the date of the Invitation;

 

(ii)                               the name of the Eligible Employee to whom the
Invitation is made;

 

(iii)                            the maximum number or value of Options, Share
Rights or both in respect of which the Eligible Employee is being invited to
apply;

 

(iv)                           the First Exercise Date of the Securities;

 

(v)                              the Last Exercise Date of the Securities;

 

(vi)                           the Exercise Price;

 

(vii)                           the time period in which an Application shall
be made; and

 

(viii)                        any other material terms and conditions
required by any Law and any relevant Class Order and any other terms and
conditions applicable to the Invitation including the requirement that the
Eligible Employee must continue and remain an Eligible Employee on the date
that the Securities are to be granted in accordance with clause 6.1, and where
Conditions (such as Performance Hurdles to be satisfied) have been determined
to apply by the Board, details of those Conditions and any Satisfaction Date;
and

 

7

 

(b)                              be issued with an Application Form and such
explanatory or other material in respect of the Plan as the Board considers
appropriate, or as is required by Law and any relevant Class Order.

 

4.3                            Security price

 

Securities granted by the
Bank under the Plan will be granted free of charge to Participants, unless
otherwise determined by the Board.

 

5.                                     Application for Securities

 

5.1                            Application procedure

 

(a)                               An Eligible Employee who receives an
Invitation may only make an Application by returning the duly completed
Application Form within the time period and as otherwise specified in the
Invitation.

 

(b)                              If, on returning the duly completed
Application Form in accordance with paragraph (a) of this clause 5.1, the
Eligible Employee’s employment or appointment with a Group Company has not
ceased, he or she:

 

(i)                                 becomes a Participant;

 

(ii)                              irrevocably offers to acquire Securities
under the Plan in accordance with the terms of the Invitation; and

 

(iii)                           agrees to be bound by the terms of the Invitation
and by these Rules or any modification of these Rules for the purposes of
clause 9.1(b) as set out in any relevant schedule to these Rules.

 

5.2                            Application in whole
or in part

 

An Eligible Employee who
receives an Invitation may make an Application in respect of all or part of the
maximum number of Options, Share Rights or both specified in the
Invitation.  If an Application is made
for only part of the Options or Share Rights, then the Eligible Employee may only
do so in respect of that number of Options or Share Rights which, if exercised,
would result in the Eligible Employee acquiring a number of Shares that is not
less than the Minimum Parcel.  No
further Application may be made in respect of that Invitation.

 

6.                                     Grant of Securities

 

6.1                            Creation of Securities

 

(a)                               Securities granted under the Plan shall be
created, and a Participant’s title to those Securities will, subject to clause
24.5, conclusively be evidenced for all purposes of the Plan by being inscribed
on the Register.  No certificate or
other evidence of title to a Security will be issued unless required under any
applicable law or the Board in its sole discretion determines otherwise.

 

8

 

(b)                              Within 28 days after the end of the period
for making an Application, as specified in the Invitation, and except as
provided in clause 6.2, the Board will, in respect of each Eligible Employee
who has become a Participant in accordance with clause 5.1(b):

 

(i)                                 inscribe or cause to be inscribed in the
Register the name of that Participant and the number of Securities (with
separate entries being made for Options and Share Rights) applied for by that
Participant; and

 

(ii)                              notify that Participant of the Issue Date and
that the Securities have been so inscribed.

 

6.2                            Non-acceptance of
Application

 

(a)                               In the event that the Board does not grant
Securities in favour of any Participant under clause 6.1(a), the Board shall:

 

(i)                                 provide notification to that Participant that
it does not wish to accept that Participant’s Application;

 

(ii)                              refund the moneys (if any) provided by that
Participant as consideration to apply for Securities under the Plan; and

 

(iii)                           undertake any other action as it sees fit.

 

(b)                               If paragraph (a) of this clause 6.2 applies
to a Participant, the Invitation to that Participant, and the Application by
that Participant in relation to that Invitation, shall be deemed never to have
been made.

 

7.                                     Lapse of Securities

 

7.1                            Time of lapse

 

A Security lapses, to the
extent it has not been exercised, on the earlier to occur of:

 

(a)                               the date of lapse under clause 7.2, clause
9.4(a) or clause 11;

 

(b)                              the last day of any period specified in
clauses 8.2(b) to 8.2(f) (inclusive) in which a Participant may exercise a
Security;

 

(c)                               where Conditions have not been satisfied and
remain unsatisfied on the Satisfaction Date, the Satisfaction Date; and

 

(d)                              the Last Exercise Date.

 

7.2                            Breach, fraud or dishonesty

 

If in the reasonable opinion
of the Board a Participant acts fraudulently or dishonestly or is in material
breach of his or her obligations to the Bank or any other Group Company then
the Board may in its absolute discretion determine that any Unvested Securities
of the Participant have lapsed and the Board’s decision will be final and
binding.

 

7.3                            Rights following
lapse

 

Upon the lapse of a
Security, all rights of the Participant in respect of that Security cease.

 

9

 

8.                                     Exercise of Securities

 

8.1                            Vested Securities

 

(a)                               A Security granted to a Participant that is a
Performance Security will become a Vested Security on a Vesting Date only if
all Conditions (including any Performance Hurdles) applicable to that Security
have been satisfied on or before that Vesting Date unless, prior to that date,
that Security has lapsed under clause 7.

 

(b)                              A Security granted to a Participant that is
not a Performance Security becomes a Vested Security on the Satisfaction Date
if all Conditions have been satisfied or waived by the Board in its absolute
discretion unless, prior to that date, that Security has lapsed under clause 7.

 

8.2                            Exercise Period

 

(a)                               Except as provided in clauses 8.2(b) to
8.2(f) (inclusive), a Security that is a Vested Security may only be exercised
during the period commencing on the First Exercise Date and ending on the Last
Exercise Date.  Except as provided in
clauses 8.2(b) to 8.2(f) (inclusive) or clause 11, an Unvested Security may not
be exercised.  Notwithstanding any
provision in this clause 8, no Security may be exercised after the Last
Exercise Date.

 

(b)                              Death or
Total and Permanent Disablement

 

If a Participant ceases to
be an Employee as a result of his or her death or Total and Permanent
Disablement, that Participant may, at any time prior to the first to occur of
the Last Exercise Date and the first anniversary of the Last Employment Date,
exercise:

 

(i)                                  in the case of Performance Securities and
where that Participant’s Last Employment Date occurs on or after the Vesting
Date, only those Securities (if any) that are Vested Securities at the Last
Employment Date, with all Unvested Securities lapsing on that Participant’s
Last Employment Date; or

 

(ii)                               in any other case, all Securities (whether or
not they are Unvested Securities).

 

(c)                                Resignation

 

If a Participant ceases to
be an Employee as a result of his or her resignation, that Participant may, at
any time prior to the first to occur of the Last Exercise Date and the date
that is 3 months after the Last Employment Date, exercise only those Securities
that are Vested Securities at the Last Employment Date.  All Unvested Securities will lapse on the
Last Employment Date.

 

(d)                               Retrenchment
or cessation of Participant’s employer as a Group Company

 

If:

 

(i)                                  a Participant ceases to be an Employee as a
result of the retrenchment of that Participant; or

 

(ii)                               that Participant’s employer (being a company
other than the Bank) ceases to be a Group Company,

 

that Participant may, at any
time prior to the first to occur of the Last Exercise Date and the first anniversary
of the Last Employment Date, exercise:

 

10

 

(iii)                             in the case of Performance Securities and
where that Participant’s Last Employment Date occurs on or after the Vesting
Date, only those Securities (if any) that are Vested Securities at the Last
Employment Date, with all Unvested Securities lapsing on that Participant’s
Last Employment Date; or

 

(iv)                            in the case of Performance Securities and
where that Participant’s Last Employment Date occurs prior to the Vesting Date,
only that number of Unvested Securities (if any) that have become Vested
Securities, pursuant to a determination made under clause 9.3(b)(iii), with all
other Unvested Securities lapsing on that Participant’s Last Employment Date; or

 

(v)                               in the case of Unhurdled Securities and where
that Participant’s Last Employment Date occurs:

 

(A)                            on or after the First Exercise Date of those
Securities, all Vested Securities; or

 

(B)                              prior to the First Exercise Date of those
Securities, only that number of Securities calculated in accordance with the
following formula:

 

X = A x B

C

 

where:

 

X is the number of Securities that will be
exercisable;

 

A is the number of Securities comprised in an
Award;

 

B is the number of days from and excluding the
Issue Date up to and including the Last Employment Date; and 

 

C is the number of days from and excluding the
Issue Date up to and including the First Exercise Date, 

 

with all other Securities
lapsing on that Participant’s Last Employment Date.

 

(e)                                Retirement

 

If a Participant ceases to
be an Employee as a result of the Retirement of that Participant, that
Participant may, at any time prior to the first to occur of the Last Exercise
Date and the first anniversary of the Last Employment Date, exercise:

 

(i)                                   in the case of Performance Securities and
where that Participant’s Last Employment Date occurs on or after the Vesting
Date, only those Securities (if any) that are Vested Securities at the Last
Employment Date, with all Unvested Securities lapsing on that Participant’s
Last Employment Date;

 

(ii)                                in the case of Performance Securities and
where that Participant’s Last Employment Date occurs prior to the Vesting Date,
only that number of Unvested Securities (if any) that become Exercisable
Securities, pursuant to a determination made under clause 9.3(b)(iv), with all
other Unvested Securities lapsing on that Participant’s Last Employment Date;
or

 

(iii)                             in any other case, all Securities (whether or
not they are Unvested Securities).

 

11

 

(f)                                  Other
circumstances

 

If a Participant ceases to
be an Employee for any reason other than those set out in clauses 8.2(b) to
8.2(e), all of the Participant’s Securities (whether they are Vested Securities
that have not been exercised or Unvested Securities) shall lapse on the Last
Employment Date.

 

8.3                            Exercise of Securities
in part

 

If a Participant elects to
exercise part of his or her Securities comprised in an Award, the Notice of
Exercise must be in respect of:

 

(a)                                that number of Shares which is not less than
the Minimum Parcel;

 

(b)                               multiples of a Minimum Parcel;  and

 

(c)                                that number of Shares which will not leave
any unexercised Securities comprised in that Award to that Participant
totalling less than a Minimum Parcel.

 

8.4                            Exercise procedure

 

A Participant may exercise
any of his or her Securities by lodging a Notice of Exercise and a cheque
payable to the Bank for the Total Exercise Price (if any) applicable to those
Securities, or by such other means of payment as may be approved by the Board,
at the head office of the Bank for the time being or other place nominated by
the Board for this purpose.

 

9.                                     Performance Hurdles and Vested Securities

 

9.1                            Performance criteria

 

(a)                               The performance criteria applicable to any
Performance Securities shall be as specified in clause 9.2 and clause 9.3
unless the Board determines otherwise.

 

(b)                              If the Board determines that alternative,
additional or modified performance criteria are to apply to any Performance
Security in lieu of the performance criteria specified in clause 9.2 and clause
9.3, the Board shall as part of that determination approve a schedule, to be
attached to and form part of these Rules, which contains replacement clauses
setting out those alternative, additional or modified performance criteria
(including any modification, if necessary, to cross referencing within these
Rules) applicable to that Performance Security.

 

9.2                            Performance Hurdles

 

Subject to clause 9.1, the
Performance Hurdles applicable to any Performance Period relating to any
Performance Security comprised in an Award shall be as follows:

 

(a)                                where as at any Test Date, the TSR Ranking of
the Bank is less than the Minimum TSR Ranking, the number of Securities that
shall become Vested Securities as at that Test Date shall be zero;

 

(b)                               where as at any Test Date, the TSR Ranking of
the Bank is equal to the Minimum TSR Ranking, the number of Securities that
shall become Conditionally Vested Securities as at that Test Date is the number
equal to 50% of the total number of Securities comprised in that Award;

 

12

 

(c)                               where as at any Test Date, the TSR Ranking of
the Bank is equal to or greater than the Maximum TSR Ranking, the number of Securities
that shall become Conditionally Vested Securities as at that Test Date is the
number equal to 100% of the total number of Securities comprised in that Award;
and

 

(d)                              where as at any Test Date, the TSR Ranking of
the Bank is greater than the Minimum TSR Ranking and less than the Maximum TSR
Ranking, the number of Securities that shall become Conditionally Vested
Securities as at that Test Date increases on a straight line basis from 50% to
100% of the total number of Securities comprised in that Award.

 

9.3                            Determination of number of Vested
Securities

 

(a)                                As soon as practicable after each Test Date
applicable to any Performance Period, the Board shall determine:

 

(i)                                 the TSR Ranking Group; and

 

(ii)                              the TSR Ranking of the Bank and of each body corporate
comprising the TSR Ranking Group, as at that Test Date.

 

(b)                              As soon as practicable after each Test Date
applicable to any Performance Period, the Board shall determine in respect of
each Participant as at that Test Date:

 

(i)                                 whether, and to what extent, the Performance
Hurdles and all other Conditions (if any) applicable to that Performance Period
up to that Test Date have been satisfied;

 

(ii)                              the number of Conditionally Vested Securities
(if any) that will, subject to clause 9.4(a), become Vested Securities;

 

(iii)                           in the case of a determination made for the
purposes of clause 8.2(d)(iv), the number of Unvested Securities (if any) that
have become Vested Securities, calculated in accordance with the following
formula:

 

	
  A  =  W  x

  	
  [50 + 2 (X – 50)]

  	
  x

  	
  Y

  	
   

  
	
   

  	
  100

  	
   

  	
  Z

  	
   

  

 

where:

 

A is the number of Unvested Securities that
will become Vested Securities.  If the
Bank’s TSR Ranking as at the Test Date is less than 50%, A shall be taken to be nil;

 

W is the number of Securities comprised in an
Award;

 

X is the Bank’s TSR Ranking determined on or
as at:

 

(i)                                    the most recent of a Quarterly TSR Test Date
and a Test Date to have occurred immediately preceding the Last Employment Date
of the relevant Participant; or

 

13

 

(ii)                                  if no Quarterly TSR Test Date or Test Date
has occurred since the Issue Date of that Participant’s Securities, the Last
Employment Date of that Participant,

 

PROVIDED THAT if the Bank’s
TSR Ranking so determined is greater than 75%, X
shall for the purposes of this calculation be taken to be 75% (in each case X will be expressed as a whole number);

 

Y is, but only if that Participant’s Last
Employment Date occurs before the First Test Date, the number of days from and
excluding the date (Start
Date) on which the relevant Performance Period commenced up to
and including the Last Employment Date; and

 

Z is, but only if that Participant’s Last
Employment Date occurs before the First Test Date, the number of days from and
excluding the Start Date up to and including the First Test Date.

 

(iv)                            in the case of a determination made for the
purposes of clause 8.2(e)(ii), the number of Unvested Securities (if any) that
have become Exercisable Securities;

 

(v)                               whether any Capital Event has occurred during
the Performance Period up to that Vesting Date;

 

(vi)                            the Exercise Price (if any);

 

(vii)                         in the case of the First Test Date and the
Second Test Date of that Performance Period, the number of Conditionally Vested
Securities that will become Unvested Securities and which will lapse if, under
clause 9.4(a), that Participant accepts the Board’s determination; and

 

(viii)        in
the case of the Third Test Date of that Performance Period, the number of
Unvested Securities that will automatically lapse on that day.

 

The Board shall be required
to make a determination on each of the Second Test Date and the Third Test
Date, as the case may be, only if, in relation to the First Test Date Notice or
the Second Test Date Notice, as the case may be, a Participant has elected not
to accept the Board’s determination made under this paragraph (b) on the First
Test Date or the Second Test Date, as the case may be.

 

(c)                                Following each determination made by the
Board under clause 9.3(b), the Board shall provide a written notification to
each Participant:

 

(i)                                    as to whether or not the Performance Hurdles
and other Conditions (if applicable) have been met;

 

(ii)                                the number of Conditionally Vested Securities
(if any) that will become Vested Securities and which that Participant will,
if, under clause 9.4(a), that Participant accepts the Board’s determination, be
entitled to exercise;

 

(iii)                             in the case of determinations made under
clause 9.3(b)(iii) and (iv), the number of Unvested Securities (if any) that
have become Vested Securities or, as the case may be, Exercisable Securities;

 

(iv)                            whether a Capital Event has occurred;

 

14

 

(v)                             the Exercise Price; and

 

(vi)                          in the case of a determination made under
clause 9.3(b)(ii), on the First Test Date and the Second Test Date, of that
Participant’s rights under clause 9.4, if applicable.

 

9.4                            Performance Election
Rights

 

Within 60 days of the date
of the First Test Date Notice or the Second Test Date Notice, as the case may
be, a Participant may by notice in writing elect:

 

(a)                               to accept the determination made by the Board
under clause 9.3(b), in which case that determination becomes immediately and
irrevocably binding and all Unvested Securities the subject of that
determination shall immediately lapse; or

 

(b)                              not to accept that determination, in which
case that election becomes immediately and irrevocably binding and the Board’s
determination will be of no effect in relation to that Participant and no
Unvested Securities held by that Participant, the subject of that
determination, will become Vested Securities or lapse as a result of that
determination.

 

If, by the end of that 60
day period, that Participant has not made an election under paragraph (a) or
paragraph (b) of this clause 9.4, that Participant will be taken to have made
an election under paragraph (b) of this clause 9.4.

 

9.5                            Rounding of fractions

 

If any determination made
under clause 9.2 or clause 9.3, results in there being a fraction of a Vested
Security, the aggregate number of Vested Securities shall be rounded, as
follows:

 

(a)                                  upwards to the nearest whole number, if the
fraction is a value of 0.5 or more; and

 

(b)                                 downwards to the nearest whole number, if the
fraction is a value less than 0.5.

 

10.                               Allocation of Shares

 

10.1                        Allotment of Shares

 

Subject to clause 10.2, the
Bank must within 28 days after receipt of a Notice of Exercise and the Total
Exercise Price (if any) in respect of Securities, allot and issue to the
Participant that number of Shares nominated by the Participant in the Notice of
Exercise under these Rules.

 

10.2                        Purchase of Shares

 

(a)                               The Bank may, at the Board’s discretion,
determine to apply the Total Exercise Price together with, to the extent
permitted by Law, moneys provided by the Bank, in purchasing Shares instead of
making an allotment and issue of Shares for the purpose of the Notice of
Exercise.  The relevant Shares will be
purchased in the name of the Participant within 28 days after receipt of the
Notice of Exercise and Total Exercise Price (if any).

 

(b)                              If the Board so determines, the Board shall
at the time of that determination appoint an entity that is unrelated to any
Group Company (Entity)
for the sole purpose of purchasing the relevant number of Shares and, for that
purpose, the Bank shall pay or cause to be paid to that Entity an amount equal
to the costs and expenses of the acquisition of those Shares.

 

15

 

(c)                               The Entity so appointed shall acquire the
number of Shares as directed by the Board and immediately allocate and cause
those Shares to immediately be registered in the name of the relevant
Participant, as directed by the Board.

 

(d)                              In acquiring those Shares, but not otherwise,
the Entity acts as trustee for the relevant Participant until such time as
those Shares have been acquired, allocated and registered in the name of that
Participant.  All other fiduciary
obligations and duties of that Entity to that Participant that might otherwise
be implied or imposed by law or equity are expressly excluded to the extent
permitted by law, including without limitation any such obligation or duty
arising under any statute.

 

(e)                               The Entity is not an agent or trustee for the
Bank or, except as provided by paragraph (d) of this clause 10.2, any
Participant.

 

11.                               Change in Control

 

(a)                               Where there is publicly announced any
proposal (whether by takeover bid, scheme of arrangement or otherwise but
excluding a proposal for a Dual Listed Company Structure) in relation to the
Bank which the Board reasonably believes may lead to a Change in Control, the
Board shall, notwithstanding any other provisions of these Rules or the
Securities held by each Participant, promptly notify (the date of such notice
being the Notice Date)
each Participant in writing that he or she may, within a period specified in
the notice (which period must be not less than 14 days from the Notice Date)
(the Change in Control
Notice Period), exercise:

 

(i)                                 in the case of Unvested Securities comprised
in an Award that are Unhurdled Securities, and where the Notice Date is prior
to the Satisfaction Date of those Securities, only that number of Securities
(if any) calculated in accordance with the following formula:

 

X = A x B

C

 

where:

 

X is the number of Securities that will be
exercisable by the Participant;

 

A is the number of Unvested Securities
comprised in an Award and held by the Participant on the Notice Date;

 

B is the number of days from and excluding the
Issue Date of those Unvested Securities up to and including the Notice Date;
and

 

C is the number of days from and excluding that
Issue Date of those Unvested Securities up to and including the Satisfaction
Date.

 

(ii)                              in the case of Unhurdled Securities comprised
in an Award and where the Notice Date is on or after the Satisfaction Date,
only those Securities (if any) that are Vested Securities held by the
Participant on the Notice Date;

 

(iii)                           in the case of Performance Securities
comprised in an Award and where the Notice Date is on or after the Satisfaction
Date, only those Securities (if any) that are Vested Securities held by the
Participant at the Notice Date; and

 

16

 

(iv)                          in the case of Performance Securities
comprised in an Award and where the Notice Date is prior to the Satisfaction
Date, only that number of Securities (if any) calculated in accordance with the
following formula:

 

	
  A  =  W  x

  	
  [50 + 2 (X – 50)]

  	
  x

  	
  Y

  	
   

  
	
   

  	
  100

  	
   

  	
  Z

  	
   

  

 

where:

 

A is the number of Unvested Securities that
will become Vested Securities.  If the
Bank’s TSR Ranking as at the Test Date is less than 50%, A shall be taken to be nil;

 

W is the number of Securities comprised in an
Award;

 

X is the Bank’s TSR Ranking determined on or
as at:

 

(i)                                    the most recent of a Quarterly TSR Test Date and
a Test Date to have occurred immediately preceding the Notice Date; or

 

(ii)                                 if no Quarterly TSR Test Date or Test Date
has occurred since the Issue Date of that Participant’s Securities, the Notice
Date,

 

PROVIDED THAT if the Bank’s
TSR Ranking so determined is greater than 75%, X
shall for the purposes of this calculation be taken to be 75% (in each case X will be expressed as a whole number);

 

Y is, but only if the Notice Date occurs
before the First Test Date, the number of days from and excluding the date (Start Date) on which
the Performance Period commenced up to and including the Notice Date; and

 

Z is, but only if the Notice Date occurs
before the First Test Date, the number of days from and excluding the Start
Date up to and including the First Test Date.

 

(b)                               All Securities held by the Participant which:

 

(i)                                 are not the subject of notice under
paragraphs (a)(i), (a)(ii), (a)(iii) or (a)(iv); or

 

(ii)                              are the subject of a notice under paragraphs
(a)(i), (a)(ii), (a)(iii) or (a)(iv) and have not been exercised by the
Participant by the end of the Change of Control Notice Period,

 

shall lapse.

 

12.                               Capital
Event

 

(a)                               If a Capital Event occurs before the lodgment
of a Notice of Exercise, the Board shall determine in respect of each Security:

 

(i)                                  the number of underlying Shares; and

 

(ii)                               the Exercise Price,

 

by taking into account the
Capital Event in a manner which is fair and equitable to the Participants and
which is consistent with the relevant provisions of the Listing Rules.
Securities shall be reconstructed in a manner which will not result in any
additional benefits being conferred on Participants which are not conferred on
persons holding Shares or vice versa.

 

17

 

(b)                              The Board may inform each Participant of
these decisions or shall otherwise inform each Participant on request.

 

13.                               New
issues

 

A Security does not confer
on a Participant the right to participate in new issues of Shares by the Bank,
including by way of bonus issue, rights issue or otherwise.

 

14.                               Securities not transferable

 

Securities may not be
transferred, assigned or novated without the approval of the Board, except that
a legal personal representative of a Participant who has died or whose estate
is liable to be dealt with under laws relating to mental health or bankruptcy
will be entitled to be registered as the holder of those Securities after the
production to the Board of such documents or other evidence as the Board may
reasonably require to establish that entitlement.

 

15.                               Security Interest

 

Participants shall not grant
any Security Interest in or over or otherwise dispose of or deal with any
Securities or any interest therein, and any such Security Interest or disposal
or dealing will not be recognised in any manner by the Bank.

 

16.                               Ranking and listing

 

(a)                               Shares allotted as a consequence of the
exercise of Securities will, from the date of allotment, rank equally with all
other issued Shares.

 

(b)                              The Bank will apply for official quotation of
those Shares on each stock exchange on which Shares are quoted in accordance
with the Listing Rules.

 

(c)                               The Securities will not be listed for
quotation on any stock exchange.

 

17.                               Issue limitations

 

(a)                               The total number of unissued Shares, the
subject of Securities, which may be offered at any time to Eligible Employees
under the Plan shall not exceed the maximum permitted under any Class Order
providing relief from the prospectus regime of the Corporations Act to ensure
compliance with such Class Order.

 

(b)                              Securities may not be granted under the Plan
to an Eligible Employee to the extent that if all of the Securities granted
would be immediately exerciseable from the Issue Date and are exercised on the
Issue Date, the Eligible Employee would, on the Issue Date:

 

(i)                                  hold a legal or beneficial interest in more
than five percent (5%) of the Shares; or

 

(ii)                              be in a position to cast, or control the
casting of, more than five percent (5%) of the maximum number of votes that
might be cast at a general meeting of the Bank.

 

18

 

18.                               No
interest in Shares until exercise

 

A Participant has no
interest in any Share unless and until the related Security is exercised and
Shares are either allotted and issued to, or purchased in the name of, that
Participant as a result of that exercise.

 

19.                               Commencement and termination

 

19.1                        Commencement

 

The Plan takes effect from
the date of resolution by the Board adopting the Plan or as such later date as
may be specified by the Board in that resolution.

 

19.2                        Termination and
Suspension

 

The Board may terminate or
suspend the operation of the Plan at any time by resolution of the Board.  For the avoidance of doubt, any termination
of the Plan pursuant to this clause will not affect any Securities that are
outstanding.

 

20.                               Administration of the Plan

 

(a)                               The Plan shall be administered by the Board
which shall have power to delegate to any one or more persons (including, but
not restricted to, a committee of the Board) for such period and on such
conditions as the Board may determine the exercise of its powers or discretions
arising under the Plan.

 

(b)                              The Board may at any time and from time to
time:

 

(i)                                 give directions to any person or persons
appointed under paragraph (a) of this clause 20 as to the manner of the
exercise by the Board of any of its discretions under these Rules or the Plan;
and

 

(ii)                              amend any of those directions,

 

and where the Board has
given such a direction, the person or persons (as the case may be) must
exercise the relevant discretion in accordance with that direction.

 

(c)                                The Board shall have power to:

 

(i)                                 determine appropriate procedures for
administration of the Plan consistent with the provisions of these Rules; and

 

(ii)                              resolve conclusively all questions of fact or
interpretation and all calculations arising in connection with the Plan.

 

(d)                              The Board may at any time appoint or engage
specialist service providers for the operation and administration of the Plan.

 

(e)                               The Board shall ensure a complete register of
Participants is maintained to facilitate efficient management and
administration, and to comply with regulatory reporting requirements.

 

19

 

21.                               Amendment of the Plan

 

21.1                        By the Board

 

Subject to clause 21.2, the
Board may at any time and from time to time by resolution:

 

(a)                                amend all or any of these Rules or all or any
of the rights or obligations of the Participants or any of them; and

 

(b)                               formulate (and subsequently amend) special
terms and conditions, in addition to those set out in these Rules, to apply to
Eligible Employees employed in, resident in, or who are citizens of, countries
other than Australia.  Each of such sets
of special terms and conditions shall be restricted in its application to those
Eligible Employees employed in, resident in, or who are citizens of the foreign
country or countries specified by the Board, and may be revoked, added to or
varied in accordance with paragraph (a) of this clause 21.1.

 

21.2                        Listing Rules

 

The exercise of any powers
under these Rules by the Board is subject to any restrictions or procedural
requirements relating to the amendment of the rules of an employee incentive
scheme or of issued options imposed by any Law or by the Listing Rules and applicable
to the Plan or the Securities, as the case may be, unless those restrictions,
conditions or requirements are relaxed or waived by the ASX or any of its
delegates either generally or in a particular case or class of cases and either
expressly or by implication.

 

22.                               Law, Listing Rules and the
Constitution

 

The Rules and all offers and
issues of Securities and Shares under the Plan are subject to any Law, the
Listing Rules and the Bank’s Constitution, each as in force from time to time.

 

23.                               Rights
of Participants

 

Nothing in these Rules:

 

(a)                                confers on any Eligible Employee or
Participant the right to continue as an Employee of any Group Company;

 

(b)                               confers on any Employee the right to become
or remain an Eligible Employee or to participate under the Plan;

 

(c)                                affects any rights which a Group Company may
have to terminate the employment of an Eligible Employee or Participant;

 

(d)                               may be used to increase damages in any action
brought against any Group Company in respect of any such termination and a
Participant shall waive any and all rights to compensation or damages in
consequence of any such termination insofar as those rights arise or may arise
from that Participant ceasing to have rights under or entitled to exercise any
Security under the Plan as a result of such termination; and

 

20

 

(e)                               confers any responsibility or liability on
any Group Company or its directors, officers, employees, representatives or
agents in respect of any taxation liabilities of the Eligible Employees or
Participants.

 

24.                               General

 

24.1                        Advice

 

Eligible Employees should
obtain their own independent advice on the financial, taxation and other
consequences to them of or relating to participation in the Plan including in relation
to exercising Securities and disposing of any or all Shares acquired as a
result of exercising Securities.

 

24.2                        Costs and Expenses

 

With the exception of Taxes
(excluding any Taxes payable on brokerage) which are payable by a Participant,
a Participant will not be liable for any costs associated with the
implementation and administration of the Plan unless the Board in its
discretion determines otherwise.  If the
Board so determines, the Board must inform the Participant prior to allocating
any such expense to a Participant.

 

Subject to the preceding
paragraph, the Bank will pay all expenses, costs and charges in relation to the
establishment, implementation and administration of the Plan, including all
costs incurred in or associated with the allotment and issue or purchase of
Shares (except for Taxes which are payable by Participants) for the purposes of
the Plan.

 

24.3                        Dispute

 

Any disputes or differences
of any nature arising under the Plan shall be referred to the Board and its
decision shall be final and binding in all respects.

 

24.4                        Notices

 

Any notice, instruction or
direction given under or pursuant to these Rules:

 

(a)                                is validly given if it is handed to the
addressee, faxed to the addressee at the fax number last notified by that
person or posted ordinary prepaid post (first class air-mail if to an overseas
address) to the last known address of the addressee;

 

(b)                               must be signed by the sending or a person
duly authorised by the sender;

 

(c)                                except as provided in paragraph (d), will be
taken to have been given:

 

(i)                                  in the case of personal delivery, when
personally received;

 

(ii)                               in the case of post to a domestic address,
three Business Days after posting;

 

(iii)                            in the case of post to an overseas address,
seven Business Days after posting; or

 

21

 

(iv)                           in the case of a fax, on production of a
transmission report by the machine from which the fax was sent that indicates
that the fax was transmitted in its entirety to the fax number of the
addressee,

 

unless it is personally
received or faxed after 5.00 pm on the day, in which case it shall be deemed to
be received or faxed on the next succeeding Business Day;

 

(d)                              in the case of a notice of election under
clause 9.4, an Application Form or a Notice of Exercise, that election,
application or notice will not be taken to have been received by or on behalf
of the Bank until it is actually received by the Bank at the address nominated
from time to time by the Board.

 

24.5                        Error Correction

 

(a)                               In the event that any error or mistake has
been made in relation to the number of Securities the subject of:

 

(i)                                  an Invitation under clause 4.2;

 

(ii)                               an inscription in the Register pursuant to
clause 6.1; or

 

(iii)                            any notification made under clause 9.3(c),

 

that Invitation, inscription
or notification, as the case may be, shall be null and void and of no effect to
the extent of any such error or mistake and the Board may in its absolute
discretion, correct such error or mistake, without the need to obtain consent
from the relevant Eligible Employee or relevant Participant, by notice to the
Eligible Employee or that Participant and, where appropriate, may issue an
amended Invitation or notification or correct the Register.

 

(b)                              The Board will notify the relevant
Participant within a reasonable period after discovering and correcting the
error or mistake.

 

24.6                        Governing Law

 

This Plan and the rights of
Participants under its Rules are governed by the laws in force in New South
Wales.

 

22

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