Document:

Exhibit 10.48

 

	
  Responsible Entity

  CPT Manager Limited

  ABN 37 054 494 307

  	
  Centro

  Properties Group

  	
  Centro Properties Limited

  ABN 45 078 590 682

  Centro Property Trust

  ARSN 091 043 793

  

 

Important Notice:

 

This Application must be
completed and submitted to Centro Properties Limited by no later than 5.00 pm
Pacific Coast Time on July 20, 2007

 

Centro
Properties Limited (ABN 45 078 590 682)

Centro Executive Option Plan

APPLICATION FOR OPTIONS

 

To:          The Directors,

Centro Properties Limited

Fax #: +61 3 9803 1112

 

I, whose name and address
appear below, apply on the terms of the Centro Executive Option Plan (as
referred to in the invitation dated July 9, 2007 and the Plan Rules) for
Options from Centro Properties Limited (“Centro”) to acquire a Stapled Security
in Centro Properties Group.

 

If the Options for which I
apply are granted to me, I agree to be bound by the terms and conditions of the
invitation (as the same may be varied from time to time pursuant to the Plan
Rules).  I also agree to be bound by the
constitution of Centro Properties Limited and the trust deed of Centro
Properties Trust should Stapled Securities be issued to me upon exercise of an
Option.

 

I acknowledge that Centro
and Centro Properties Group may use the personal information collected from me
to perform their obligations under the Plan. 
I authorize Centro and Centro Properties Group to disclose this
information to others (including to its related parties and agents), for the
purposes of performing its duties under the Plan (including the transfer of
this information outside my home country as required).  Centro will provide me with access to this
information if I contact Centro at the above address, and I can correct this
information if it is inaccurate, incomplete or out of date.

 

I acknowledge that by making
this application I agree to the operation of the Foreign Exchange Adjustment in
respect of my Options grant.

 

I acknowledge that, pursuant
to the Plan Rules, Centro retains the discretion to refuse to accept my
application.

 

 

I acknowledge that this
invitation, and any subsequent invitation made under the Plan, is being made by
Centro Properties Group at the request of my employer as the Long Term
Incentive component of my compensation package and is in line with any
contractual obligations with my employer associated covering Long Term
Incentives.

 

	
  Number of Options applied for

  	
   

  	
                    

  	
  (time vesting)

  
	
  Number of Options applied for

  	
   

  	
                    

  	
  (performance vesting)

  

 

 

	
  Mr, Mrs, Miss, Ms

  	
   

  	
  Surname

  	
   

  	
  Given Names  

  (Do not use initials for first two)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Zipcode

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  	
  Dated

  	
   

  	
  2007Exhibit 10.49

 

	
  Responsible Entity

  CPT Manager Limited

  ABN 37 054 494 307

  	
  Centro

  Properties Group

  	
  Centro
  Properties Limited

  ABN 45 078 590 682

  Centro Property Trust

  ARSN 091 043 793

  

 

July 9, 2007

 

Name

 

Position

 

Centro US

 

Dear First name,

 

Centro Executive Option Plan

 

On behalf of the Board of
Centro Properties Limited (“Centro”), I am delighted to offer you the
opportunity to participate in an issue of Options pursuant to the Centro
Executive Option Plan (“Plan”).  The
Board believes the Plan will link your rewards with the strategic long term
goals and performance of Centro and with the maximization of shareholder
wealth.

 

1.             Invitation

 

You are invited to apply to
receive [Number] Options over Stapled Securities (“Securities”) in Centro
Properties Group (ASX:CNP).  Fifty
percent (50%) of these Options will be subject to a time vesting condition (“Time
Options”) and fifty percent (50%) will be subject to a performance vesting
condition (“Performance Options”).

 

This invitation is being
made by Centro Properties Group on behalf of your employer Centro Watt
Management Joint Venture 2 LP (“CWMJV”) as a part of the Long Term Incentive
component of your compensation package and, where appropriate, is in line with
any contractual obligations with CWMJV covering Long Term Incentives.

 

Key Dates

 

The key dates in relation to
this invitation are:

 

	
  ·      Opening Date for
  Application 

  	
  July 10, 2007

  
	
  ·      Closing Date for
  Application 

  	
  July 20, 2007

  
	
  ·      Grant Date 

  	
  July 31, 2007

  

 

 

If you wish to apply for a
grant of Options under this invitation, your completed Application Form,
included with this invitation letter, must be faxed back to Samantha Aveling,
Company Secretarial Officer, Centro Properties Group on +61 3 9803 1112 or sent
by PDF attachment to samantha.aveling@centro.com.au
by no later than 5.00 pm Pacific Coast Time on July 20, 2007.

 

2.             Terms of the Issue

 

The invitation is made on
the terms set out in this letter and the Plan Rules.  This letter sets out the terms of issue of
the Options (in addition to the Plan Rules) to assist you in deciding whether
to apply for the grant of Options pursuant to the Plan.  Enclosed with this letter is a copy of the
Plan Rules.  Also enclosed is an
Executive Option Plan Information Memorandum (“Memorandum”) which outlines some
frequently asked questions in relation to the Plan and a summary of the US
taxation consequences.  Terms defined in
this invitation have the same meaning as in the Plan Rules.  In the event of any inconsistency between
this invitation, the Plan Rules and the Memorandum, the Plan Rules take
precedence over both documents and this invitation takes precedence over the
Memorandum.

 

2.1          Issue
of Options

 

Assuming you submit your
application by the date set forth above and you are an employee of a Centro
Employer (as defined in section 2.3 below) on the Grant Date, you will be
granted the number of options designated in Section 1 above on the Grant
Date.  Each Option will, subject to these
terms of issue, entitle you upon vesting to acquire one Security at the
Exercise Price (see section 2.2 below).

 

A Security is one fully paid
ordinary Share in Centro Properties Limited and one Unit in the Centro Property
Trust, which are stapled together so that one may not be dealt with without the
other.  (Each ‘Option’ issued to you in
fact comprises separate options over a Centro Properties Limited Share (“Share
Option”) and over a Centro Properties Trust Unit (“Unit Option”).)

 

The Securities issued to you
when you exercise your Options will be of the same class, and will rank equally
with, Securities on issue at the date of issue of your Securities.  However, your Securities will not carry any
rights (e,g. voting or distribution/dividend rights), which attach to those
Securities as a result of a record date which occurs before you exercise your
Options.

 

The Securities will be
issued to you not later than 20 business days after you exercise your
Options.  Centro will apply to have your
Securities quoted on the ASX within a reasonable time after they are issued to
you.

 

2.2          Exercise
Price of Options

 

As a condition to the
exercise of your Options you must pay the Exercise Price to Centro.

 

The Exercise Price will be
in A$ and will equal the weighted average of prices at which Securities are
traded on the ASX during the 5 (five) trading days up to and including the
Grant Date.  The Exercise Price will be
noted on the Option certificate, which will be issued to you.

 

2

 

The Exercise Price may be
adjusted in accordance with the Plan Rules if Centro completes a rights
issue or capital reorganization prior to the time you exercise your
Options.  We will advise you in writing
if the Exercise Price is adjusted during the life of your Options.

 

You are reminded of the need
to ensure any exercise of these Options, or trading in the Securities issued as
a result of the exercise, is carried out in accordance with company policies
and relevant legislation governing Insider Trading.

 

2.3          Vesting
of Options

 

Your Options can only be
exercised if they vest.  Time Options
will only vest if you remain employed by a Centro Employer on the Vesting
Day.  Performance Options will only vest
if you remain employed by a Centro Employer on the Vesting Day AND the Vesting
Condition (see section 2.4 below) is satisfied.

 

For the purposes of this
invitation, a Centro Employer is a company which is wholly or majority owned by
Centro.

 

Subject to a change of
control (see section 2.5 below), the Vesting Day for both Time Options and
Performance Options is July 31, 2010. 
However, if the UBS Equities Limited “S&P/ASX Property 200
Accumulation” index for the period ending on June 30, 2010 is not
published by that day, the Board may substitute another Vesting Day for the
Performance Options.

 

Note that whereas the 3
(three) year period for the purposes of the Vesting Condition for the
performance options (refer 2.4 below) will end on June 30, 2010, the
Vesting Day will be July 31, 2010 - assuming the relevant UBS Equities
index is by then published.  You must
therefore remain employed by a Centro Employer on July 31, 2010 for your
Options to vest.

 

2.4          Vesting
Condition for Performance Options

 

The Vesting Condition for
the Performance Options is designed to ensure that both executives and security
holders benefit from the issue of your Performance Options.  Subject to section 2.5, Change of Control, it
involves a comparison of the Total Shareholder Return (“TSR”) on Centro’s
Securities with that of other Australian listed property trust (“LPT”)
securities.

 

Centro’s TSR over the three
years prior to June 30, 2010 is to be compared to the TSR of each other
entity in the UBS Equities Limited “Standard & Poors/Australian
Securities Exchange (“S&P/ASX”) Property 200 Accumulation” index (or any
similar or replacement index as determined by the Board) over the same
period.  Only TSRs which have been in the
index for the full 3 (three) years will be compared.

 

TSR measures the total
return on a security.  It takes into
account both capital appreciation and distributions of income.  It assumes a notional reinvestment of
distributions paid on the security (on a pre-tax basis) - to purchase
additional securities at the market price prevailing on the day before the
securities begin trading ex the relevant distribution.

 

Centro and each of the other
LPTs will be ranked according to their respective TSRs.

 

3

 

The ranking will determine
the number of Performance Options which vest:

 

·              if Centro’s TSR is equal to
or exceeds the TSR of 80% of the LPTs ranked, 100% of the Performance Options
will vest;

 

·              if Centro’s TSR exceeds the
TSR of 50% of the LPTs ranked but does not equal or exceed the TSR of 80% of
the LPTs ranked, the percentage of Options that will vest will be X% where:

 

	
  X

  	
  =

  	
  40+ [2 x (P-50)]

  
	
   

  	
   

  	
   

  
	
  And

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  P

  	
  –

  	
  the percentage of the
  LPTs ranked that Centro’s TSR is equal to or exceeds (expressed as a whole
  number, rounding up any fraction, e.g., 67.5% = 68);

  

 

·              if Centro’s TSR is equal to
the TSR of 50% of the LPTs ranked, 40% of the Performance Options will vest;
and

 

·              if Centro’s TSR is below the
TSR of 50% of the LPTs ranked, none of the Performance Options will vest.

 

If a Performance Option does
not vest on the Vesting Day it will expire on that day.

 

2.5          Change
of Control

 

In the event that any third
party gains control of more than 50% of Centro’s issued Securities prior to July 31,
2010, the Vesting Condition will be deemed to have been met.  In this scenario, the exercise period for
your Options would commence on the date of the change in control under the
takeover bid (i.e. the date that the bidder notifies the Australian Securities
Exchange that it and its associates have a relevant interest in more than 50%
of Centro’s Securities) and would end at the end of the takeover period.

 

Alternatively, if Centro
disposes of more than 50% of its ownership of CWMJV, or another employing
entity within Centro then employing you, the vesting condition will be deemed
to have been met in full.  In this
scenario, the exercise period for your options would begin on the date of the
disposal and would end at a date to be determined by the Board.  At the end of the takeover period, any
unexercised options shall expire and terminate on such date.

 

2.6          Exercise
of Options

 

Once an Option vests, and
subject to the Rules of the Plan and paragraphs 2.8 and 2.9 below, you may
exercise the Option at any time until the earlier of when you cease employment
with a Centro Employer or expiry of the Option.

 

4

 

2.7          Expiry
of Options

 

If your Options do not
expire on the Vesting Day, they will expire at the end of ten years from the
day of their issue.  This will be on July 31,
2017.  If you do not, or are unable to,
exercise your Options by that day, your Options will expire at the end of that
day.

 

2.8          Cessation
of employment

 

If you cease to be an
employee of a Centro Employer, you (or your legal personal representative) may
still exercise your Options in certain circumstances.  Those circumstances differ according to
whether or not your Options have vested.

 

2.8.1        Options
which have not vested

 

If you leave employment with
a Centro Employer before your options have vested as a result of termination by
a Centro Employer without “cause” or by you for “good reason” (both as defined
in your Employment Agreement), the Board will allow you (or your personal
representative) to exercise some or all of those options during a period not
exceeding 3 months subject to applicable laws or regulations.  The number of options you may exercise will
be determined as follows:

 

·              Time Options

 

Options will vest based on a proportion of
the time served by the executive since the grant date.

 

·              Performance
Options

 

Options will vest by
reference to the result of a test of the vesting condition (as outlined above)
for the period up to the last trading day of the calendar month preceding the
date of termination.

 

2.8.2        Vested
Options

 

If you cease employment with
a Centro Employer and all or some of your options have vested but have not been
exercised, you may exercise those options within 12 months of ceasing
employment (but not after they expire if that occurs within the 12 months
period).

 

2.9          US
Transfer Restrictions for the Options the and Securities

 

Neither the Options nor the
Securities issuable upon exercise of the Options have been, or will be,
registered under the US Securities Act 1933, as amended (the “Securities Act”),
or any other U.S. state or other securities laws.  The Options and the Securities have not been
approved, disapproved by any U.S. federal, state or other securities commission
or regulatory authority.

 

The Options and the
Securities issuable upon exercise of the Options constitute restricted
securities within the meaning of Rule 144 under the Securities Act.  The Options or Securities may be offered,
sold or otherwise transferred only:

 

5

 

	
  (a)

  	
   

  	
  outside of the United States in an offshore
  transaction meeting the requirements of Rule 903 or Rule 904 of
  Regulation S under the Securities Act;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  pursuant to an exemption from registration under the
  Securities Act provided by Rule 144 under the Securities Act (if
  available);

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  to a person whom it reasonably believes is a QIB in
  a transaction meeting the requirements of Rule 144A under the Securities
  Act; or

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  pursuant to an effective reorganization statement
  under the Securities Act covering the shares, and in each case in accordance
  with any applicable securities laws of any state of the United States or
  other jurisdiction.

  

 

3.             How to exercise your
Options

 

To exercise your Options you
must complete the Notice of Exercise in the form set out on the back of the
Option Certificate; and deliver the completed Notice to the Company Secretary
together with payment of the Exercise Price for each Option exercised and the
amount assessed as withholding tax on the difference between the market price
on the date of exercise and the exercise price. 
Alternatively, you may make use of an Australian based broker to enable you
to sell some or all of your securities on the exercise of your option and to
finance the exercise until settlement of the sale contract.

 

If you choose to avail
yourself of the financing arrangement, you will instruct the broker to pay the
exercise price to Centro on your behalf on the date of exercise and to sell at
least sufficient Securities on market (to cover the exercise cost, brokerage
and withholding tax).  The broker would
recover these funds from the sale proceeds on Settlement Day, 3 days after
sale, and deliver the withholding tax amount to Centro.  The cost of this arrangement will be covered
within the brokerage fee.  The broker
will then deliver the remainder of the Securities or the net proceeds to you.

 

Further details of this
arrangement will be provided to you prior to the date of vesting.

 

Sufficient Securities will
then be sold on the exercise of your Option to repay the loan to the broker,
and to cover the broker’s fee for this service as well as the income tax
payable on the exercise of your options which will need to be collected via
withholding by your employer.  You can
then either elect to receive the balance of the Securities registered in your
name or you can elect for all of the Securities under Option to be sold and the
after tax sales proceeds paid to you. 
Further details of this arrangement will be communicated to you in due
course.

 

4.             Currency protection

 

Your ability to gain any
benefits of participation in this Plan are not intended to be influenced by any
changes in the exchange rate between the American Dollar (US$) and Australian
Dollar (A$) between the Grant Date and the Vesting Day.  At the Vesting Day, the value of the
underlying Securities will be subject to an adjustment (“Foreign Exchange
Adjustment”) to reflect any movement in A$/US$ exchange rate between the Grant
Date and the Vesting Day that will impact the value receivable from the options
at vesting.

 

6

 

The Foreign Exchange
Adjustment will be determined at the Vesting Day in the following manner:

 

	
  ·

  	
   

  	
  Calculate the A$ profit, being the difference between the market
  value of the Centro Securities at the date the option vests and the Exercise
  Price of the Option (the “Option Profit”)

  
	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  Calculating the US$ value of the Option Profit by using the average
  exchange rate between the A$ and US$ for the calendar month prior to the
  Vesting Day (“Profit at Vesting Exchange Rate”); and

  
	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  Calculating the US$ value of the Option Profit by using the average
  exchange rate between the A$ and US$ for the calendar month prior to the
  Grant Date (“Profit at Grant Exchange Rate”).

  

 

If the Profit at Vesting
Exchange Rate is less than the Profit at Grant Exchange Rate, Centro will make
a payment to you equal to the difference. 
If at the Vesting Day, the Profit at Vesting Exchange Rate is greater
than the Profit at Grant Exchange rate, you will be required to reimburse
Centro the difference (see 4.1 below).

 

The Foreign Exchange
Adjustment will only apply in the event that an Option Profit in A$ is made at
the Vesting Day (i.e. the market value of the Centro Securities at vesting is
greater than the Exercise Price).

 

By applying for Options
under the Plan, you will also be accepting the application of the Foreign
Exchange Adjustment to any Options granted to you.

 

4.1          Payment
of the Foreign Exchange Adjustment

 

If at the Vesting Day the
Option Profit at the Vesting Exchange Rate is less than the Profit at Grant
Exchange Rate, Centro will make a cash payment to you equal to the
difference.  This payment will be made via
the US payroll as soon as practicable after the vest date.

 

If at the Vesting Day the
Option Profit at Vesting Exchange Rate is greater than the Profit at Grant
Exchange Rate, you will be liable to pay to Centro an amount equal to the
difference.  This payment will become due
at the earlier of the exercise of your Options, the options expire or your
ceasing employment with a Centro Employer after the Vesting Day.

 

5.             Taxation

 

US tax laws can be complex
and their consequences depend upon your own particular circumstances.  Set out in the attached document is a summary
of the tax implications of the Plan.  It
does not constitute tax advice nor any recommendation by Centro concerning
tax.  You should obtain your own tax
advice in relation to participating in the Plan.

 

This letter and the enclosed
copy of Rules of the Plan together set out all of the terms of issue of
the Options.  You should retain this
letter and the Rules in a safe place for future reference.

 

7

 

If you have any questions in
relation to this letter, please contact:

 

John Newman-Morris on +61 3
8847 0041

(email john.newman-morris@centro.com.au); or

 

John Watt on +61 3 8847 0130

(email john.watt@centro.com.au)

 

Yours sincerely

 

Brian Healey

Chairman

 

8

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