Document:

Exhibit 10.46

 

Centro
Properties Group 

Executive Option Plan

 

 

 

101 Collins Street Melbourne Victoria 3000 Australia

Telephone +61 3 9288 1234  Facsimile +61 3 9288 1567

www.freehills.com 
DX 240 Melbourne

 

SYDNEY MELBOURNE PERTH BRISBANE SINGAPORE

Correspondent Offices HANOI HO CHI MINH CITY JAKARTA
KUALA LUMPUR

 

Reference

 

 

Table of contents

 

	
  Rule

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1

  	
  Definitions and interpretation

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
  4

  
	
   

  	
  1.2

  	
  Interpretation

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  2

  	
  Invitation

  	
  6

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Invitation

  	
  6

  
	
   

  	
  2.2

  	
  Information to be provided to
  Eligible Employees

  	
  6

  
	
   

  	
  2.3

  	
  Amount payable for grant of
  Option

  	
  6

  
	
   

  	
  2.4

  	
  Legal constraints

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  3

  	
  Application for Options

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Application

  	
  7

  
	
   

  	
  3.2

  	
  Number of options applied for

  	
  7

  
	
   

  	
  3.3

  	
  Personal nature

  	
  7

  
	
   

  	
  3.4

  	
  Conditional Contract

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  4

  	
  Grant of Options

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Grant

  	
  7

  
	
   

  	
  4.2

  	
  Exercise price

  	
  8

  
	
   

  	
  4.3

  	
  Advice to Participants

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  5

  	
  Transfer of Options

  	
  8

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Transfer of Options where
  Vesting Condition has not been satisfied

  	
  8

  
	
   

  	
  5.2

  	
  Transfer of Options where
  Vesting Condition has been satisfied

  	
  8

  
	
   

  	
  5.3

  	
  Other dealing with Options

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  6

  	
  Exercise of Options

  	
  9

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Exercise pre-conditions

  	
  9

  
	
   

  	
  6.2

  	
  Cessation of employment

  	
  9

  
	
   

  	
  6.3

  	
  When employment ceases

  	
  9

  
	
   

  	
  6.4

  	
  Fraudulent or dishonest
  actions

  	
  10

  
	
   

  	
  6.5

  	
  Maximum exercise period

  	
  10

  
	
   

  	
  6.6

  	
  Expiry of Option

  	
  10

  
	
   

  	
  6.7

  	
  Entitlement

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  7

  	
  Exercise procedure

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Exercise notice

  	
  10

  
	
   

  	
  7.2

  	
  Issue of Stapled Securities

  	
  10

  
	
   

  	
  7.3

  	
  Attorney

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  8

  	
  Scheme of Arrangement, Winding-up and Takeover

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Events for early vesting and
  exercise of Options

  	
  11

  
	
   

  	
  8.2

  	
  Early vesting and exercise of
  Options

  	
  11

  
					

 

2

 

	
  9

  	
  Rights of Stapled Securities acquired on exercise of Options

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Rights

  	
  11

  
	
   

  	
  9.2

  	
  Listing

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  10

  	
  Bonus Issues, Rights Issues, Reconstruction

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Adjustment for Bonus Issue

  	
  12

  
	
   

  	
  10.2

  	
  Adjustment for Rights Issue

  	
  12

  
	
   

  	
  10.3

  	
  Adjustment for reorganisation

  	
  12

  
	
   

  	
  10.4

  	
  No other participation

  	
  13

  
	
   

  	
  10.5

  	
  Notification

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  11

  	
  Special restrictions or conditions

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  12

  	
  Amendments

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Board power

  	
  13

  
	
   

  	
  12.2

  	
  Restrictions on amendments

  	
  13

  
	
   

  	
  12.3

  	
  Notice of amendment

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  13

  	
  Administration of the Plan

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Board administration

  	
  14

  
	
   

  	
  13.2

  	
  Board powers

  	
  14

  
	
   

  	
  13.3

  	
  Non-residents of Australia

  	
  14

  
	
   

  	
  13.4

  	
  Board’s Discretion

  	
  14

  
	
   

  	
  13.5

  	
  Disputes

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  14

  	
  No compensation or damages

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  Terms of employment not
  affected

  	
  15

  
	
   

  	
  14.2

  	
  No right to compensation

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  15

  	
  Duties and taxes

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  16

  	
  Notices

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  17

  	
  Governing law

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  US Additional Rules

  	
  16

  
	
   

  	
   

  
	
  1

  	
  US Transfer restrictions for the Options and the Shares

  	
  16

  

 

3

 

Centro Properties Limited

ACN  078 590 682

 

Executive
Option Plan Rules

 

1                                         Definitions and interpretation

 

1.1          Definitions

 

In these rules:

 

ASX means
Australian Stock Exchange Limited;

 

Board
means the board of directors of the Company or a committee appointed by the
board of directors;

 

Company means
Centro Properties Limited ACN 078 590 682;

 

Early Vesting Day means the earliest day on which:

 

(a)           a
compromise or arrangement referred to in rule 8.1(a) is approved;

 

(b)           a
resolution referred to in rule 8.1(b) or 8.1(c) is passed;

 

(c)           a
Court order referred to in rule 8.1(d) is made; or

 

(d)           the
acquisition referred to in rule 8.1(e) becomes known to the Company;

 

Eligible Employee means an employee (including a director employed in an executive
capacity) of any Group Entity who is declared by the Board to be an Eligible
Employee for the purposes of the Plan;

 

Exercise Period means the period or days specified in the invitation to apply for
the Options or in the terms of their grant, during which the Options may be
exercised, subject to satisfaction of any Vesting Condition;

 

Grant Date
in relation to an Option means the date from which the Board determines that an
Option takes effect;

 

Group Entity means the Company, its Subsidiaries and any company or entity
(including a trust) declared by the Board to be a member of the Group for the
purposes of this Plan;

 

Listing Rules means the official Listing Rules of the ASX as they apply to
the Company from time to time;

 

Market Value has the meaning given to that term in section 139FA of the Income
Tax Assessment Act 1936;

 

Option
means a Share Option and a Unit Option;

 

Option Holder means a Participant or a Transferee;

 

Participant means a person who has been granted an Option under the Plan;

 

Plan means
the Centro Executive Option Plan as set out in these rules, subject to any
amendments or additions made under rule 12;

 

4

 

Redundancy means a termination of a Participant’s employment with a Group
Entity where the employer company has made a definite decision expressly for
the purpose of this provision that the employer no longer wishes the job the
Participant has been doing to be done by anyone and this is not due to ordinary
and customary turnover of labour and includes a situation where:

 

(a)           the
Participant ceases to be employed by a Group Entity because the employer
company ceases to be a subsidiary of the Company; and

 

(b)           the
business in which the Participant is engaged is no longer a Group Entity.

 

Responsible Entity means CPT Manager Limited, the responsible entity for the Trust;

 

Retirement
means a termination of a Participant’s employment with a Group Entity by reason
of the attainment of such age as the Board may from time to time accept as the
retirement age for the Participant or by reason of the inability of the
Participant in the opinion of the Board to perform the Participant’s duties as
a result of illness or incapacity;

 

Separation
means the termination of a Participant’s employment with a Group Entity with
the written consent of the Board expressly given for the purposes of the Plan;

 

Share
means a fully paid ordinary share in the capital of the Company;

 

Share Option means a separate right to acquire a Share, whether by purchase or
subscription;

 

Stapled Security means one Share and one Unit, which are stapled together so that
one may not be dealt with without the other;

 

Subsidiary
has the meaning given to that term in section 9 of the Corporations
Act;

 

Takeover Bid has the same meaning as in section 9 of the Corporations
Act;

 

Transferee means a person to whom Options are transferred by a Participant
pursuant to rule 5.2;

 

Trust
means the Centro Property Trust ARSN 091 043 793 created by deed of trust dated
[insert] as amended from time to time;

 

Unit has
the meaning given to that term in the deed constituting the Trust;

 

Unit Option means a separate right to acquire a Unit, whether by purchase or
subscription; and

 

Vesting Condition means one or more conditions which must be satisfied or
circumstances which must exist before the Options or any of them may be
exercised, as determined by the Board.

 

1.2          Interpretation

 

In these rules, headings are only for convenience and
do not affect interpretation and, unless the context requires otherwise:

 

(a)           the
singular number includes the plural and the other way around;

 

(b)           words
of one gender include the other genders;

 

5

 

(c)           a
reference to any legislation includes any amendment to that legislation, any
consolidation or replacement of it, and any subordinate legislation made under
it;

 

(d)           a
reference to a provision in any legislation includes a reference to a provision
in any amendment, consolidation or replacement of that legislation which, in
the opinion of the Board, corresponds with the first mentioned provision;

 

(e)           an
expression defined in section 9 of the Corporations Act
has the same meaning as in that section;

 

(f)            an
expression defined in the Company’s constitution or in the deed constituting
the Trust has the same meaning as in those documents.

 

2                                         Invitation

 

2.1          Invitation

 

An invitation to participate in the Plan may:

 

(a)           be made by the Company, together with the Responsible Entity as
necessary, at any time to an Eligible Employee;

 

(a)           be in any form;

 

(b)           relate to a specified number of Options or specified value of
Stapled Securities; and

 

(c)           be on any conditions or subject to any restrictions,

 

as the Board decides. The Company will, as necessary,
procure the agreement of the Responsible Entity to the terms determined by the
Board.

 

2.2          Information
to be provided to Eligible Employees

 

The Board will advise each Eligible Employee to whom
an invitation is issued of the following information relevant to the Options
that may be granted under the Plan pursuant to that invitation:

 

(a)                                 the purchase price (if any) of the Options;

 

(b)                                the method of calculation of the exercise price;

 

(c)                                 the Exercise Period;

 

(d)                                the number of Units and Shares over which Options may be granted;

 

(e)                                 the dates and times when the Options expire;

 

(f)                                   any Vesting Conditions;

 

(g)                                the date and time by which the application for Options must be
received by the Company.

 

2.3          Amount
payable for grant of Option

 

Unless the Board otherwise determines, no payment is
required for a grant of Options.

 

6

 

2.4          Legal
constraints

 

Despite any other rule, Options may not be granted to
a person under the Plan if it appears to the Board that doing so would
contravene these rules, the Company’s constitution, the deed constituting the
Centro Property Trust, the Listing Rules or any law of a jurisdiction in
which the person resides or would give rise to unreasonable regulatory
requirements for the Company or the Trust.

 

3                                        Application for Options

 

3.1          Application

 

(a)           Following
receipt of an invitation, the Eligible Employee may apply for the Options
specified in the invitation by sending to the person nominated in the
invitation an application (in the form attached to the invitation) duly
completed and signed (together with a cheque for any amount payable in respect
of the grant of the Options).

 

(b)           The
application must be received by the Company within the period for acceptance
specified in the invitation.

 

3.2          Number
of options applied for

 

The Eligible Employee may apply for the number of
Options specified in the invitation or part thereof (but only in multiples of
100 Options).

 

3.3          Personal
nature

 

An invitation is not transferable (without the prior
approval of the Board) and an employee may only apply for the Options in his or
her name and not on behalf of another person.

 

3.4          Conditional
Contract

 

An application for Options constitutes an offer by a
Participant to enter into conditional contracts with the Company, and/or with
the Responsible Entity in the nature of Share Options and Unit Options.

 

4                                        Grant of Options

 

4.1          Grant

 

(a)           Once
the Company has received and accepted a duly signed and completed application
for Options (together with any moneys payable in respect of the grant), the
Company may:

 

(1)           grant Share Options to the
Eligible Employee with effect from the Grant Date; or

 

(2)           grant, or procure the grant
by the Responsible Entity, of Unit Options to the Eligible Employee with effect
from the Grant Date,

 

7

 

upon the terms set out in the Plan and subject to the
applicable terms of the deed constituting the Trust and upon such additional
terms and Vesting Conditions as the Board determines.

 

(b)           A
grant of Options or Share Options by the Board constitutes an acceptance of the
Participant’s offer to enter into conditional contracts with the Company in the
nature of Options or Share Options as the case may be.

 

(c)           A
grant of Unit Options by the Responsible Entity constitutes an acceptance of
the Participant’s offer to enter into conditional contracts with the
Responsible Entity in the nature of Unit Options.

 

(d)           A
Share Option and a Unit Option may not be transferred or otherwise dealt with
without the other.

 

4.2          Exercise
price

 

The exercise price at which Units and Shares
(comprising Stapled Securities) may be acquired will be determined by the Board
and specified in the invitation made under rule 2.1, failing which it will
be Market Value on the Grant Date.

 

4.3          Advice
to Participants

 

The Company must advise each Participant that Options
have been granted to him or her.

 

5                                        Transfer of Options

 

5.1          Transfer
of Options where Vesting Condition has not been satisfied

 

An Option may be transferred before the Vesting
Condition for that Option has been met only with the prior written approval of
the Board, and will immediately expire if it purports to be transferred without
that approval.

 

5.2          Transfer
of Options where Vesting Condition has been satisfied

 

An Option granted under the Plan may be transferred to
a person if the Vesting Condition for that Option has been satisfied and:

 

(a)           the
Participant notifies the Board in writing that the Participant intends to
transfer that Option to the Transferee;

 

(b)           the
Transferee notifies the Board in writing that it agrees to be bound by these rules and
that it accepts the Option on the same terms as it is held by the Participant;
and

 

(c)           the
Board does not inform the Participant in writing within 7 days of receiving the
notice under rule 5.2(a) that it refuses to permit the transfer of that Option.

 

5.3          Other
dealing with Options

 

An Option may not be dealt with otherwise than as
provided in rules 5.1 and 5.2 except with the prior written approval of
the Board. For the avoidance of doubt, a 

 

8

 

Transferee of an Option may not transfer an Option or
otherwise deal with it except to exercise it.

 

6                                        Exercise of Options

 

6.1          Exercise
pre-conditions

 

(a)           Subject
to rule 7.1 and the Listing Rules, the exercise of any Option granted
under the Plan will be effected in the form and manner determined by the Board.

 

(b)           Subject
to rules 6.2 to 6.7, 8 and 13.2(d), an Option granted under the Plan may
only be exercised during the Exercise Period and may not be exercised unless
the Vesting Conditions (if any) advised to the Participant by the Board
pursuant to rule 2.2 have been satisfied.

 

6.2          Cessation
of employment

 

Subject to an Option not being exercisable at or after
the time advised to the Participant by the Board pursuant to rule 2.2(e) for
expiry of the Option:

 

(a)           if
before any Vesting Condition applicable to an Option has been satisfied the
Participant ceases to be an employee of a Group Entity - the Board may allow
the Option to be exercised on terms and conditions specified by the Board,
within a period determined by the Board not exceeding 12 months after the
cessation of employment.

 

(b)           if
after any Vesting Condition applicable to an Option has been satisfied but
before the Option has been exercised the Participant ceases to be an employee
of a Group Entity:

 

(1)           by
reason of death, Redundancy, Retirement or Separation - the Option may be
exercised within 12 months of the cessation of employment; and

 

(2)           for a reason other than
death, Redundancy, Retirement or Separation - the Board may allow the Option to
be exercised on terms and conditions specified by the Board, within a period
determined by the Board not exceeding 12 months after the cessation of
employment.

 

6.3          When
employment ceases

 

A Participant will not be treated for the purposes of rule 6.2
as ceasing to be an employee of a Group Entity until such time as the Participant
is no longer an employee of any of the Group Entities, and a Participant who
ceases to be such an employee by reason of performing the role of primary care
giver in their family or such other leave approved by the Board and who
exercises their right to return to work under any applicable award, enterprise
agreement, other agreement, statute or regulation before the exercise of an
Option under the Plan shall be treated for those purposes as not having ceased
to be such an employee.

 

9

 

6.4          Fraudulent or dishonest actions

 

If in the opinion of the Board a Participant
acts fraudulently or dishonestly or is in breach of his or her obligations to
any Group Entity, the Board may cancel (or procure the Responsible Entity to
cancel as appropriate) any unexercised Options issued to the Participant,
regardless of whether any Vesting Condition has been satisfied in respect of
those Options.

 

6.5          Maximum exercise period

 

Notwithstanding any other provisions of the
Plan, an Option may be exercised within any period determined by the Board that
is permitted by law but not exceeding 10 years from Grant Date.

 

6.6          Expiry of Option

 

(a)           Unless
exercised, an Option will expire:

 

(1)           at
5.00 pm (Melbourne time) on the last day permitted for its exercise; or

 

(2)           if the
exercise of an Option is subject to a Vesting Condition and the Vesting
Condition is not satisfied, is not able to be satisfied, or can no longer be
satisfied, at 5.00 pm (Melbourne time) on the day when the condition is not
satisfied, is not able to be satisfied or can no longer be satisfied.

 

(b)           The expiry
of an Option is the end of the conditional contract constituted by the Option.

 

6.7          Entitlement

 

Upon an Option expiring, the holder of the
Option will not have any entitlement or claim against the Company or the
Responsible Entity in respect of the Option.

 

7                                        Exercise procedure

 

7.1          Exercise notice

 

Options are exercisable by lodging with the
Company Secretary at the registered office of the Company:

 

(a)           a
completed and signed exercise notice; and

 

(b)           a cheque
for the exercise price (if any) for each Option exercised.

 

7.2          Issue of Stapled Securities

 

(a)           Upon the
exercise of an Option, the Option Holder becomes entitled to an allotment of
the relevant Units and Shares (comprising Stapled Securities) not later than
20 business days after exercise of the Option or such other date which may
be stipulated by the Listing Rules.

 

(b)           The issue
of a Share pursuant to the exercise of an Option constitutes performance by the
Company of its obligations pursuant to the conditional contract constituted by
the Share Option.

 

10

 

(c)           The issue
of a Unit pursuant to the exercise of an Option constitutes performance by the
Company, or the Responsible Entity as the case may be, of its obligations
pursuant to the conditional contract constituted by the Unit Option.

 

7.3                              Attorney

 

Each director of the Company from time to time
and any person nominated by the Board from time to time are irrevocably
appointed jointly and severally by each Option Holder as their attorneys to do
all things necessary or considered by the Board appropriate to effect an issue
of Units and Shares (comprising Stapled Securities) to the Option Holder upon
exercise of an Option.

 

8                                        Scheme of Arrangement, Winding-up and Takeover

 

8.1          Events for early vesting and exercise of Options

 

Rules 8.2(a) and (b) will apply
if:

 

(a)           a meeting
held pursuant to an order of the Court under section 411 of the Corporations
Act approves a proposed compromise or arrangement for the purposes of or in
connection with a scheme for the reconstruction of the Company or its
amalgamation with any other company or companies;

 

(b)           the
Company passes a resolution for voluntary winding up;

 

(c)           the
trustee or Unit holders of the Trust pass a resolution to vest or otherwise
terminate it;

 

(d)           an order
is made for the compulsory winding up of the Company; or

 

(e)           pursuant
to a Takeover Bid the bidder or the bidder’s associates acquire a relevant
interest in more than 50% of the issued Stapled Securities.

 

8.2          Early vesting and exercise of Options

 

If this rule applies:

 

(a)           the Board
will immediately give written notice of the Early Vesting Day to the
Participant;

 

(b)           the
Vesting Condition will be deemed to have been fully satisfied on the Early
Vesting Day;

 

(c)           the
Exercise Period will commence on the Early Vesting Day and end on the date
specified by the Board in the notice given under paragraph (1).

 

9                                        Rights of Stapled Securities acquired on exercise of Options

 

9.1          Rights

 

Subject to rules 10.3 and 11, Stapled
Securities acquired on the exercise of Options will be of the same class and
will rank equally with Stapled Securities on issue at the date the Options were
granted (except as regards any rights attaching 

 

11

 

to Stapled Securities by reference to a record
date which occurred before the date of exercise).

 

9.2          Listing

 

If Stapled Securities of the same class as
those issued under the Plan are quoted on the ASX the Company will apply to the
ASX within a reasonable time after they are issued for those Stapled Securities
to be quoted.

 

10                                 Bonus Issues, Rights Issues, Reconstruction

 

10.1        Adjustment for Bonus Issue

 

(a)           If Stapled
Securities are issued pro rata to Stapled Security holders generally by way of
bonus issue (other than an issue in lieu of distribution or by way of
distribution reinvestment) involving capitalisation of reserves or
distributable profits, the Option Holder is entitled, upon exercise of the Options,
to receive in addition to the Stapled Securities in respect of which the
Options are exercised and without the payment of any further consideration an
issue of as many additional Stapled Securities as would have been issued to a
Stapled Security holder who, on the date for determining entitlements under the
bonus issue, held Stapled Securities equal in number to the Stapled Securities
in respect of which the Options are exercised.

 

(b)           Additional
Stapled Securities to which the Option Holder becomes so entitled will, as from
the time Stapled Securities are issued pursuant to the bonus issue and until
those additional Stapled Securities are issued, be regarded as Stapled
Securities comprised in the relevant Options and in respect of which the Options
are exercised for the purposes of subsequent applications of rule 10.1(a),
and any adjustments which, after the time just mentioned, are made under
rule 10.3 to the number of Stapled Securities will also be made to the
additional Stapled Securities.

 

10.2        Adjustment for Rights Issue

 

If Stapled Securities are offered pro rata for
subscription by Stapled Security holders generally by way of a rights issue
during the currency of and prior to exercise of any Options the exercise price
of each Option will be adjusted in the manner provided for in the Listing
Rules as at the date the Options were issued.

 

10.3        Adjustment for reorganisation

 

In the event of any reorganisation (including
consolidation, subdivision, reduction or return) of the issued capital of the Company
or the Trust, the number of Options to which each Option Holder is entitled or
the exercise price of the Options or both as appropriate will be adjusted in
the manner specified by the Listing Rules as at the date of
reorganisation.

 

12

 

10.4        No other participation

 

Subject to rules 10.1, 10.2 and 10.3,
during the currency of an Option and prior to its exercise, Option Holders are
not entitled to participate in any new issue of securities of the Company or
the Trust as a result of holding an Option, unless otherwise determined by the
Board.

 

10.5        Notification

 

If an adjustment is made pursuant to this rule,
the Company must notify the Option Holders within one month after the relevant
record date.

 

11           Special restrictions or conditions

 

A special restriction or condition may be
attached to a Stapled Security acquired on the exercise of an Option if it is
specified in the invitation to apply for the Option or in the terms of grant or
agreed to by the Option Holder.

 

12                                 Amendments

 

12.1        Board power

 

Subject to rule 12.2 and the Listing
Rules, the Board may at any time by resolution amend or add to (“amend”) all or
any of the provisions of the Plan, or the terms or conditions of any Option
granted under the Plan.

 

12.2        Restrictions on amendments

 

No amendment to the provisions of the Plan, or
the terms of any Option granted under it, may be made which reduces the rights
of Option Holders in respect of Options granted to them prior to the date of
the amendment, other than an amendment introduced primarily:

 

(a)           for the
purpose of complying with or conforming to present or future State or
Commonwealth legislation governing or regulating the maintenance or operation
of the Plan or like plans;

 

(b)           to correct
any manifest error or mistake; or

 

(c)           to take
into consideration possible adverse tax implications in respect of the Plan
arising from, amongst others, adverse rulings from the Commissioner of
Taxation, changes to tax legislation (including an official announcement by the
Commonwealth of Australia) and/or changes in the interpretation of tax
legislation by a court of competent jurisdiction.

 

12.3        Notice of amendment

 

As soon as reasonably practicable after making
any amendment under rule 12.1, the Board will give notice in writing of
that amendment to any Option holder affected by the amendment.

 

13

 

13                                 Administration of the Plan

 

13.1        Board administration

 

The Board will administer the Plan.

 

13.2        Board powers

 

The
Board may:

 

(a)           delegate
to any person for any period and on any terms it decides the exercise of any of
its powers or discretions under the Plan;

 

(b)           decide on
appropriate procedures for administering the Plan, including the form of
application forms and other forms and notices to be issued under the Plan;

 

(c)           resolve
conclusively all questions of fact or interpretation concerning the Plan and
these rules and any dispute of any kind that arises under the Plan;

 

(d)           in
accordance with rule 12, amend, add to or waive any provision of the Plan
(including this rule), or any terms or conditions (including any Vesting
Condition) relating to any Options granted to any Participant or to any Stapled
Securities acquired under the Plan;

 

(e)           waive any
breach of a provision of the Plan;

 

(f)            determine
that any decision made, or permission given, under the Plan, is subject to
further conditions decided by the Board.

 

13.3        Non-residents of Australia

 

When an Option is granted under the Plan to a
person who is not a resident of Australia the provisions of the Plan apply
subject to such alterations or additions as the Board determines having regard
to any securities, exchange control or taxation laws or regulations or similar
factors which may have application to the Participant or to any Group Entity in
relation to the Option.

 

13.4        Board’s Discretion

 

The
Board has absolute and unfettered discretion:

 

(a)           to act or
refrain from acting under these rules or concerning the Plan or any
Options allocated under the Plan; and

 

(b)           in
exercising any power or discretion concerning the Plan or any Options allocated
under the Plan.

 

13.5        Disputes

 

In the event of any dispute or disagreement as
to the interpretation of the Plan, or as to any question or right arising from
or related to the Plan or to any Options granted under it, the decision of the
Board is final and binding.

 

14

 

14                                 No compensation or damages

 

14.1        Terms of employment not affected

 

(a)           The rights
and obligations of any Participant under the terms of his or her office or
employment with a Group Entity are not affected by his or her participation in
the Plan.

 

(b)           These
rules do not form part of, and will not be incorporated into, any contract
of engagement or employment between an employee and the Group Entity which
employs the person.

 

14.2        No right to compensation

 

A Participant does not have a right to
compensation or damages as a result of the termination of his or her office or
employment for any reason, so far as those rights arise or may arise from the
Participant ceasing to have rights under the Plan as a result of the
termination.

 

15           Duties and taxes

 

The
Company and the Responsible Entity:

 

(a)           are not
responsible for any duties or taxes which are or may become payable on the
issue of Options or Stapled Securities under the Plan or any other dealing with
Options or Stapled Securities; and

 

(b)           may make
any withholding or payment which they are required by law to make in connection
with the Plan.

 

16           Notices

 

A notice
or other communication under or concerning the Plan is validly given:

 

(a)           by the
Company to an Eligible Employee or Option Holder if delivered personally to the
addressee or sent by prepaid post to his or her last known residential address,
or sent to him or her by facsimile at his or her place of work; and

 

(b)           by an
Eligible Employee or Option Holder to the Company if delivered or sent by
prepaid post addressed to the company secretary at the Company’s registered
office (or any other address the Board specifies).

 

A notice or other communication sent by post
will be treated as received 48 hours after it was posted.

 

17           Governing law

 

The Plan is governed by the laws of Victoria
and the Commonwealth of Australia.

 

15

 

US Additional Rules

 

In accordance with rule 13.3, rule 5
of the Plan will not apply and is replaced by the following rule which
applies to all Options granted to Eligible Employees resident in the United
States.

 

1             US Transfer restrictions for the Options and the Shares

 

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

 

(a)           outside
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 registration 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.”

 

16Exhibit 10.47

 

Centro Properties Group

 

Employee Security Plan

 

Prime Retail Property Trust

(to be renamed Centro Property Trust)
 ARSN 091 043 793

 

Prime Property Management Limited

(to be renamed Centro Properties Limited)
 ABN 45 078 590 682

 

 

TABLE OF CONTENTS

 

	
  Clause

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Meaning of
  words and interpretation

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Meaning of
  words

  	
  1

  
	
   

  	
  1.2

  	
  Interpretation

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Maximum
  number of Securities issued under the Plan

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Acquisition
  and allotment of Securities

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Invitation
  to Participate

  	
  5

  
	
   

  	
  3.2

  	
  Number and
  price of Securities offered

  	
  5

  
	
   

  	
  3.3

  	
  Application
  for Loan

  	
  6

  
	
   

  	
  3.4

  	
  Applications
  to participate

  	
  6

  
	
   

  	
  3.5

  	
  Issue terms

  	
  7

  
	
   

  	
  3.6

  	
  Separate
  record of Loan

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Rights
  attaching to Securities

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Cash
  Dividends

  	
  7

  
	
   

  	
  4.2

  	
  Cash
  Distributions

  	
  8

  
	
   

  	
  4.3

  	
  Bonus Shares
  and Bonus Units

  	
  8

  
	
   

  	
  4.4

  	
  Rights

  	
  9

  
	
   

  	
  4.5

  	
  Voting
  Rights

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Restriction
  on transfer and cessation of employment

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  No sale or
  dealing

  	
  10

  
	
   

  	
  5.2

  	
  No transfer

  	
  10

  
	
   

  	
  5.3

  	
  Notification
  of period of restriction

  	
  10

  
	
   

  	
  5.4

  	
  Cessation of
  Employment

  	
  10

  
	
   

  	
  5.5

  	
  No claim

  	
  12

  
	
   

  	
  5.6

  	
  Conditions

  	
  12

  
	
   

  	
  5.7

  	
  Right of
  Participating Employee to deal with Securities

  	
  12

  
	
   

  	
  5.8

  	
  Other
  Conditions

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Accounts

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Notices

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Amendment

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  ASIC Relief

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Administration
  of the Plan

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Rights of
  Participating Employees

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Governing
  law, Jurisdiction and Process

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Paramountcy
  of Trust Deed

  	
  15

  
					

 

i

 

	
  14.

  	
  Schedule — Loan Scheme

  	
   

  	
   

  

 

ii

 

Employee Security Plan — Rules

Adopted on 17 September 2004 at the Prime Retail Group Annual General
Meeting

 

R E C I T A L S

 

A.            This plan relates to Shares and Units that
have been linked together so that the Shares may not be dealt with without a
Unit (and vice versa).  Stapled
securities will be allotted to employees or purchased by employees as
determined by the Board.

 

B.            The stapled securities will be funded by an
interest free loan from the Company for 100% of the issue or purchase price of
the stapled securities.

 

C.            The Company wishes to establish a plan to
be known as the Centro Properties Group Employee Security Plan to assist in the
retention and motivation of employees of the Group.

 

D.            The Trustee has approved this Plan.

 

E.             The rules of the Loan Scheme are set
out in the Schedule to these Rules.

 

These Rules provide

 

1.             Meaning of
words and interpretation

 

1.1          Meaning of words

 

In these Rules:

 

Acceptance Date
means the last date for receipt of applications to participate in the Plan as
specified in the Application Form.

 

Account of a Participating Employee
means an account referred to in rule 6.

 

Application Form means
an application to participate in the Plan in the form determined by the Board
from time to time.

 

Auditor means
any person registered as an auditor under the Corporations
Act 2001 (Cth).

 

ASX means
Australian Stock Exchange Limited.

 

Board means
all or some of the Directors acting as a board of the Company.

 

Bonus Share
means the shares in respect of the Shares issued as part of a bonus issue to
shareholders of the Company.

 

Bonus Unit
means the units in the Trust issued as part of a bonus issue to Unit Holders of
the Trust.

 

1

 

Cash Distribution
means a distribution from the Trust.

 

Cash Dividend
means a dividend declared or paid with respect to Shares which is payable
wholly in cash or, in the case of a dividend declared or paid with respect to
Shares which is payable only partly in cash, that part of the dividend which is
payable in cash.

 

Company means
Prime Property Management Limited (ABN 45 078 590 682).

 

Director
means a director of the Company.

 

Eligible Employee
means:

 

(a)           a person who has been in the permanent full employment
of an entity (including a trust) which is in the Group for a period of at least
12 months before an invitation is made under this Plan; and

 

(b)           person who has not been in the permanent full
employment of a body corporate which is in the Group for a period of at least
12 months before an invitation is made under this Plan but who the Directors
deem to be an Eligible Employee for the purposes of these Rules,

 

and includes a director of a
body corporate in the Group who holds on a permanent full time basis salaried
employment in a body corporate which is in the Group.

 

Employee
means an employee of an entity (including a trust) which is in the Group
(including a director of a body corporate in the Group who holds on a permanent
full time basis salaried employment in a body corporate which is in the Group).

 

Employee Entity
means:

 

(a)           a corporation that is directly or indirectly owned or
controlled by an Eligible Employee or his family; or

 

(b)           a natural person or corporation who is to hold the Securities
for the benefit of an Eligible Employee or his family.

 

Group means
the Company and each body corporate that is a subsidiary of the Company under
Division 6 of Part 1.2 of the Corporations Act 2001
(Cth), and the Trust and any entity controlled by the Trust or a company in the
Group.

 

Listing Rules means
the Listing Rules of ASX.

 

Loan means a
loan made by the Company under the Loan Scheme.

 

Loan Scheme
means the Company’s Employee Security Plan – Loan Scheme set out in the
Schedule.

 

Loan Scheme Participating Employee
means a Participating Employee to whom a Loan has been made by the Company
under the Loan Scheme.

 

2

 

Loan Scheme Rules means
the rules of the Loan Scheme as amended from time to time.

 

Loan Security
means:

 

(a)           a Security acquired directly or
indirectly with the proceeds of a Loan; and

 

(b)           a Bonus Share or Bonus Unit deemed to be a Loan
Security by virtue of rule 4.3(c).

 

Participating Employee
means:

 

(a)           an Employee who participates in the Plan; or

 

(b)           an Employee who has been invited and has applied to
participate in the Plan but has elected under rule 3.4(b) to have
Securities offered to the Employee acquired by the Employee Entity, or

 

(c)           and where the context requires, any Employee Entity
which participates in the Plan.

 

Plan means
the Prime Employee Security Plan as established by these rules.

 

Related Loan
means in relation to a Loan Security, the Loan which directly or indirectly
funded the acquisition of the Loan Security or the Loan which directly or
indirectly funded the Loan Security in respect of which the Bonus Share and
Bonus Unit was issued or deemed to be issued.

 

Restricted Security
means a Security which the Participating Employee may not deal with until the
conditions of rule 0 are satisfied.

 

Rights means
any rights to acquire:

 

(a)           shares or other securities issued or to be issued by
the Company; or

 

(b)           Units or other securities issued or to be issued by
the Trust.

 

Security
means a Share and a Unit which are linked together and registered in the name
of the holder.

 

Share means
an ordinary share in the capital of the Company.

 

Tax Act means
the Income Tax Assessment Act 1936 (Cth) and
the Income Tax Assessment Act 1997 (Cth).

 

Trust means
the Prime Retail Property Trust ARSN 091 043 793 (to be renamed Centro Property
Trust).

 

3

 

Trust Deed
means the constitution of the Trust created by deed dated 20 January 1984
between James Aloysius Harris and Micram Pty Limited as amended from time to
time.

 

Trustee means
the trustee from time to time of the Trust.

 

Unit means an
undivided share in the beneficial interest in the Trust as provided in the
Trust Deed.

 

Unit Holder
means a person registered as holding a Unit in the Trust.

 

Unrestricted Security
means a security that is not a Restricted Security.

 

1.2           Interpretation

 

In this deed, unless the context requires a
different interpretation:

 

(a)           headings and words in bold type are for convenience
only and do not affect the interpretation of this deed;

 

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

 

(c)           words of one gender include any gender;

 

(d)           an expression implying a natural person includes any
corporation or other body corporate, partnership, joint venture, association
and any governmental or semi-governmental agency;

 

(e)           a reference to a clause or schedule is a reference to
a clause of, and a schedule to, this deed and a reference to this deed includes
any schedule;

 

(f)            a reference to a statute or regulation includes all
statutes and regulations amending, consolidating or replacing them, and all
regulations, proclamations, ordinances and by-laws issued under that statute;

 

(g)          a reference to a document includes an amendment or
supplement to, or replacement or novation of, that document; and

 

(h)           a reference to cash includes cheque and bank cheque.

 

2.             Maximum
number of Securities issued under the Plan

 

(a)           Shares must not be issued under this Plan, if
immediately following the proposed issue either:

 

(1)         the number of Shares proposed to be
issued; plus

 

(2)         the number of Shares issued under
the Plan in the period of 5 years preceding the time of the proposed issue of
Shares under this Plan; plus

 

4

 

(3)         the number of Shares issued under
every other employee incentive scheme of the Company in the period of 5 years
preceding the time of the proposed issue of Shares under this Plan;

 

would exceed 5% of the number of Shares in the issued capital of the Company
immediately following the proposed issue; or

 

(b)           Units must not be issued under this Plan, if
immediately following the proposed issue either:

 

(1)         the number of Units proposed to be
issued; plus

 

(2)         the number of Units issued under the
Plan in the period of 5 years preceding the time of the proposed issue of Units
under this Plan; plus

 

(3)         the number of Units issued under
every other employee incentive scheme of the Company in the period of 5 years
preceding the time of the proposed issue of Units under this Plan;

 

would exceed 5% of the number of issued Units of the Trust immediately
following the proposed issue.

 

3.                                      Acquisition
and allotment of Securities

 

3.1          Invitation to
Participate

 

The Board may, in its absolute discretion,
and subject to any approvals of shareholders of the Company or approvals of
Unit Holders of the Trust required by law or the Listing Rules and any
necessary consent of the Trustee in respect of the issue or transfer of Units,
at intervals determined by the Board, invite any Eligible Employee to
participate in the Plan.

 

3.2                               Number and price of Securities offered

 

(a)           The Board must determine the number of Securities
offered to an Eligible Employee and the price per Security.

 

(b)           The price per Security will be the prevailing market
price of the Security.

 

(c)           Subject to the requirements of law and the Trust Deed,
the Board may divide the price of a Security between the Share and the Unit
comprising the Security as the Board may, in its absolute discretion,
determine.

 

(d)           Different numbers of Securities may be offered to
different Eligible Employees.

 

5

 

3.3          Application for Loan

 

The Board may at the time the Eligible
Employee is invited to participate in the Plan invite the Eligible Employee to
apply for a Loan, for the purpose of acquiring the Securities being offered.

 

3.4          Applications to
participate

 

(a)           To participate in the Plan, a Participating Employee
must:

 

(1)         send a copy of an Application Form which
complies with the terms of the invitation made by the Board under clause 3.1 to
the Company; and

 

(2)         subscribe for or purchase (as the
Board thinks fit) in the name of the Participating Employee the whole of the
nominated number of Securities and this instruction must be forwarded to the
Company prior to the Acceptance Date.

 

(b)           A Participating Employee may elect that Securities
offered to the Participating Employee be issued to his Employee Entity and
submit an Application Form in the name of the Employee Entity if:

 

(1)         the Board so agrees;

 

(2)         the Employee Entity agrees in
writing (in a form acceptable to the Board) to be bound by the terms of these Rules and
the Loan Scheme Rules as if, the Employee Entity were the Participating
Employee insofar as those Rules purport to affect Securities or Loan
Securities or the rights attaching thereto by, for example:

 

(A)         providing that Cash Dividends and Cash
Distributions may be applied in repayment of a Related Loan,

 

(B)         restricting the right of the holder
of the Securities to sell, encumber or otherwise deal with the Loan Securities,

 

(C)         prescribing the circumstances in
which the Loan Securities must be sold, or

 

(D)         restricting the rights that attach
to the Loan Securities;

 

(3)         the proceeds of any Related Loan
given to the Participating Employee is to be used to acquire the Loan
Securities;

 

(4)         the Employee Entity furnishes the
Company with a charge over the Loan Securities to secure the Related Loan in a
registrable form and otherwise in a form acceptable to the Board;

 

(5)         the Employee Entity agrees in
writing (in a form acceptable to the Board) to be bound by any additional terms
considered appropriate by the Board;

 

6

 

(6)         the Employee Entity bears all costs
associated with the transaction including stamp duty payable on the charge
referred to in paragraph (4); and

 

(7)         the Participating Employee undertakes
to ensure that his Employee Entity complies with the rules of this Plan.

 

(c)           The instructions to the Company must be in such form
as may be determined by the Board from time to time but must include a
confirmation that the Participating Employee agrees to be bound by the terms of
these rules, any additional terms considered appropriate by the Board, the
constitution of the Company, the Trust Deed and, if the Participating Employee
is invited and elects to participate in the Loan Scheme, the Loan Scheme Rules.

 

3.5          Issue terms

 

Securities must be acquired on the terms of
these rules and the Trust Deed and such additional terms as the Board
considers appropriate (not being inconsistent with these rules) and each
Participating Employee will be taken to have agreed to be bound by:

 

(a)           these rules;

 

(b)           any additional terms imposed either under this rule;

 

(c)           the constitution of the Company;

 

(d)           the Trust Deed; and

 

(e)           if the Participating Employee has been invited and
elected to participate in the Loan Scheme, the Loan Scheme Rules,

 

on acceptance of any offer of
Securities under the Plan.

 

3.6          Separate record of
Loan

 

The Company will maintain a record of which
Securities have been paid for out of the proceeds of a Loan and those
Securities must be maintained as a separate holding until the relevant Loan has
been repaid.

 

4.           Rights
attaching to Securities

 

4.1          Cash Dividends

 

(a)           Subject to the terms of these rules, a Participating
Employee is entitled to receive all Cash Dividends paid on the Shares.

 

(b)           Without otherwise limiting its discretion, the Board
may make it a term of an invitation to participate in the Plan that, in respect
of a Share paid for out of the proceeds of a Loan, a proportion of each Cash
Dividend paid on that Share be applied in repayment of one or more Loans.  The proportion specified as a term of the
invitation to participate in the Plan may 

 

7

 

vary,
may be determined from time to time by the Board and may be 100%.  Until the Board determines otherwise, the
amount of the Cash Dividend to be applied in repayment of one or more Loans is:

 

(1)         the amount of the Cash Dividend,

 

LESS

 

(2)         an amount equal to the income tax
payable on the Cash Dividend (grossed up to include any attached imputation
credit, at the maximum individual marginal tax rate at the time the Cash
Dividend is paid plus the Medicare levy at that time) MINUS
any franking rebate being the amount of the imputation credit referable to the
Cash Dividend.

 

(c)           The Company must, if so directed by a Participating
Employee, apply a proportion of each Cash Dividend in repayment of the Loan.

 

4.2          Cash Distributions

 

(a)           Subject to the terms of these rules, a Participating
Employee is entitled to receive all Cash Distributions paid on the Units.

 

(b)           Without otherwise limiting its discretion, the Board
may make it a term of an invitation to participate in the Plan that, in respect
of a Unit paid for out of the proceeds of a Loan, a proportion of each Cash
Distribution paid on that Unit be applied in repayment of one or more
Loans.  The proportion specified as a
term of the invitation to participate in the Plan may vary, may be determined
from time to time by the Board and may be 100%. 
Until the Board determines otherwise, the amount of the Cash
Distribution to be applied in repayment of one or more Loans is:

 

(1)         the amount of the Cash Distribution

 

LESS

 

(2)         an amount equal to the income tax
payable on the Cash Distribution calculated at the maximum individual tax rate
at the time the Cash Distribution is paid plus the Medicare levy at that time.

 

(c)           The Company must, if so directed by a Participating
Employee, apply a proportion of each Cash Distribution in repayment of the
Loan.

 

4.3          Bonus Shares and
Bonus Units

 

(a)           Each Share issued under the Plan confers on the holder
the same right to participate in bonus issues by the Board as that conferred by
each other Share.

 

(b)           Subject to the Trust Deed, each Unit issued under the
Plan confers on the holder the same right to participate in Bonus Units as that
conferred by each other Unit.

 

8

 

(c)           Upon allotment to the Participating Employee:

 

(1)           Bonus Shares and Bonus Units are deemed to be
Securities for the purposes of these rules; and

 

(2)           Bonus Shares and Bonus Units issued
in respect of Loan Securities are deemed to be Loan Securities for the purposes
of these rules.

 

4.4          Rights

 

(a)           The Company will send a notice to a Participating
Employee of any Rights which accrue to Securities.

 

(b)           Subject to rule 4.4(e), within 7 days of
receiving the notice referred to in rule 4.4(a), the Participating
Employee may provide the Company with either:

 

(1)           written instructions in the form (if
any) prescribed by the Company to sell some or all of the Rights to the extent
permitted by law; or

 

(A)          written instructions in the form (if
any) prescribed by the Company to acquire, in the name of the Participating
Employee, to the extent permitted by law, some or all of the Securities to
which the Rights relate; and

 

(B)           payment of an amount equal to the
cost of accepting the Rights entitlement plus, if the Board so requires, such
additional amount as the Board estimates (and notifies to the Participating
Employee) to be the cost of transferring, issuing or the Securities to the
Participating Employee.

 

(c)           If the Participating Employee does not give a notice
under rule 4.4(b), the Board is entitled to sell the Rights on behalf of
the Participating Employee.

 

(d)           Subject to rule 4.4(e), if the Board sells the
Rights in accordance with rule 4.4(a) or rule 4.4(c), the Board
must distribute the proceeds of the sale (after deduction of the costs of sale
incurred by the Board) to the Participating Employee.

 

(e)           If the Securities to which the Rights accrued were
Loan Securities and an amount remains outstanding on a Related Loan, the
Participating Employee irrevocably directs the Board to sell the Rights and pay
the proceeds of the sale of Rights to the Company and the Company agrees to
apply those proceeds in reduction of that Loan.

 

4.5          Voting Rights

 

The Participating Employee’s voting
entitlements are as provided for in respect to the Shares, in the Articles of
Association of the Company, and, in respect of the Units, in the Trust Deed.

 

9

 

5.             Restriction
on transfer and cessation of employment

 

5.1          No sale or dealing

 

Subject to rules 5.4(a), 5.4(b) and
5.4(b)(2), a Participating Employee who acquires Securities under this Plan
must not sell, encumber or otherwise deal with those Securities unless:

 

(a)           the Loan is fully repaid; and

 

(b)           all other conditions on the selling, encumbering or
otherwise dealing with the Securities contained in these rules and the
Trust Deed have been complied with.

 

5.2          No transfer

 

Subject to rules 5.4(a) and 5.4(b):

 

(a)           the Company must not register or permit the share
registry to register a transfer of Shares acquired under this the Plan until rule 5.1
is satisfied with respect to those Shares; and

 

(b)           the Trustee must not register or permit the unit
registry to register a transfer of Units acquired under this Plan until both
conditions in rules 5.1 are satisfied.

 

5.3          Notification of
period of restriction

 

The Company must upon request notify each
Participating Employee to whom Securities are acquired under the Plan of the
earliest date the Participating Employee may sell, encumber or otherwise deal
with those Securities.

 

5.4          Cessation of
Employment

 

(a)           Subject to rules 5.7(a) and 5.7(b), if a
Participating Employee ceases for any reason to be an Employee of the Group (“Relevant
Person”) then, unless otherwise indicated in the invitation to participate in
the Plan, rule 5.5 applies to those Securities.

 

(b)           The Relevant Person irrevocably authorises the Company
when he ceases to be an Employee to, in the Company’s absolute discretion:

 

(1)           sell the Securities on the market
and to apply the proceeds on behalf of the Participating Employee as follows:

 

(A)          first in payment of any costs and
expenses of the sale incurred by the Company; and

 

(B)           secondly, in reduction of the
outstanding amount of the Loan made by the Company to the Participating
Employee to acquire the Security; and

 

10

 

(C)           thirdly:

 

(i)        if the Securities are Unrestricted
Securities, the balance (if any) in payment to the Participating Employee;

 

(ii)       if the Securities are Restricted
Securities, the balance (if any) in payment to the Participating Employee (as
to one half) and the Trustee (as to the other half, as an accretion to the
Trust); and

 

(iii)      if the Securities comprise both
Unrestricted Securities and Restricted Securities, the balance (if any):

 

I            in payment to the Participating Employee,
in the proportion that the Unrestricted Securities bear to the number of Securities
sold; and

 

II          in payment to the Participating Employee (as
to one half) and to the Trustee (as to the other half, as an accretion to the
Trust), in the proportion that the Restricted Securities bear to the number of
Securities sold, or

 

(2)           if the Trustee agrees to redeem the
Units, redemption of the Shares.  The
terms of the redemption of the Units and the buy back of Shares shall be those
that the Trustee and the Company deem fair, provided that the aggregate amount
paid for the Units and Shares at least equals the prevailing market price of
the corresponding number of Securities.

 

(c)           If the Trustee redeems Units and the
Company buys back the Shares in accordance with rule 5.4(b)(2) the
Participating Employee irrevocably authorizes the Trustee and the Company to
apply on behalf of the Participating Employee the amount for which those Units
were redeemed and those Shares were bought back as follows:

 

(1)           first, in payment of any costs and
expenses of the redemption and buy back incurred by the Trust or Company;

 

(2)           secondly, in reduction of the
outstanding amount of the Loan (if any) made by the Company to the
Participating Employee to acquire the Securities; and

 

(3)           thirdly:

 

(A)          if the Securities are Unrestricted
Securities, the balance (if any), in payment to the Participating Employees;

 

(B)           if the Securities are Restricted
Securities, the balance (if any) in payment to the Participating Employee (as
to one half) and to the Trustee (as to the other half, as an accretion to the
Trust); and

 

11

 

(C)           if the Securities comprise both
Unrestricted Securities and Restricted Securities, the balance (if any):

 

(i)        in payment to the Participating
Employee, in the proportion that the Unrestricted Securities bear to the number
of Securities bought back; and

 

(ii)       in payment to the Participating
Employee (as to one half) and to the Trustee (as to the other half, as an
accretion to the Trust), in the proportion that the Restricted Securities bear
to the number of Securities bought back.

 

5.5          No claim

 

A Participating Employee shall not have any
claim against the Company, the Trustee as a result of the exercise by the
Company of a power or discretion under this rule 5.

 

5.6          Conditions

 

Unless the Board determines otherwise and
subject to these Rules and the Trust Deed, a Participating Employee may
sell, encumber or otherwise deal with Securities.  By way of example only the Board may impose a
condition that, at the conclusion of each year listed in Column A of the Table
below after the acquisition of a parcel of Securities, the Participating
Employee may only sell, encumber or otherwise deal with the percentage of the
Securities in that parcel appearing in Column B of the Table opposite the year:

 

	
  Column A

  	
   

  	
  Column B

  	
   

  
	
  Years

  	
   

  	
  % of Securities

  	
   

  
	
  1

  	
   

  	
  25

  	
   

  
	
  2

  	
   

  	
  50

  	
   

  
	
  3

  	
   

  	
  75

  	
   

  
	
  4

  	
   

  	
  100

  	
   

  

 

5.7          Right of
Participating Employee to deal with Securities

 

(a)           If no amount remains outstanding under a Related Loan
used to acquire a Loan Security and that Loan Security is an Unrestricted
Security, the Participating Employee may give notice to the Company that the
Participating Employee wishes to sell, encumber or otherwise deal with the Loan
Security.  If that notice is given to the
Company, the Company will do what it can do to facilitate the Participating
Employee selling, encumbering or otherwise dealing with the Loan Security.

 

12

 

(b)           If a Security becomes an Unrestricted Security and an
amount remains outstanding on the Related Loan, the Participating Employee may
request the Company to sell, encumber or otherwise deal with the Loan Security
on behalf of the Participating Employee. 
The Company must sell, encumber or otherwise deal with the Security if,
in the opinion of the Board, the proceeds made available by that action will
equal or exceed the amount outstanding on the Related Loan.

 

5.8          Other Conditions

 

The Board may impose any other conditions on
the selling, encumbering or otherwise dealing with Securities as it considers
appropriate.

 

6.             Accounts

 

(a)           Company must open and maintain an account in respect
of each Participating Employee.

 

(b)           Each account must record:

 

(1)           the date of acquisition of Securities to which each
Participating Employee is entitled;

 

(2)           the number of Securities and Loan Securities to which
each Participating Employee is entitled; and

 

(3)           the number of Bonus Shares and Bonus
Units (if any) to which each Participating Employee is entitled and whether the
Bonus Shares or Bonus Units are Loan Securities.

 

7.             Notices

 

Any notice regarding Securities issued under
the Plan will be sent to the registered address of the holder as recorded in
the register of members maintained by the Company and the Trustee.

 

8.             Amendment

 

(a)           Subject to rules 8(b) and 8(c), the Company
may at any time by written instrument or by resolution of the Board, amend all
or any of the provisions of these rules (including this rule 8).

 

(b)           No amendment of the provisions of these rules is
to reduce the rights of any Participating Employee in respect of Securities
credited to the Account of the Participating Employee prior to the date of the
amendment, other than an amendment introduced primarily:

 

(1)           for the purpose of complying with or
conforming to present or future State, Territory or Commonwealth legal
requirements governing or regulating the maintenance or operation of the Plan
or like plans;

 

13

 

(2)           to correct any manifest error or mistake;

 

(3)           to enable contributions or other
amounts paid by any body corporate in the Group in respect of the Plan to
qualify as income tax deductions for that body corporate or any other body
corporate in the Group;

 

(4)           to enable the Trustee, the
Participating Employee or any body corporate in the Group to reduce the amount
of fringe benefits tax under the Fringe Benefits Tax
Assessment Act 1986 (Cth), the amount of tax under the Tax Act or
the amount of any other tax or impost that may otherwise be payable by the
Trustee, the Participating Employee or any body corporate in the Group in
relation to the Plan or matters arising therefrom;

 

(5)           for the purpose of enabling the
Participating Employees generally (but not necessarily each Participating
Employee) to receive a more favourable taxation treatment in respect of their
participation in the Plan or matters arising therefrom; or

 

(6)           to enable the Trustee or any body
corporate in the Group to comply with the Corporations Act 2001
(Cth) or the Listing Rules.

 

(c)           No amendment may be made except in accordance with and
in the manner (if any) stipulated by the Listing Rules.

 

(d)           Subject to the above provisions of this rule 8,
any amendment made pursuant to rule 8(a) may be given such
retrospective effect as is specified in the written instrument or resolution by
which the amendment is made.

 

9.             ASIC Relief

 

Notwithstanding any other provisions of these
rules, every covenant or other provision set out in an exemption or
modification granted from time to time by the Australian Securities and
Investments Commission in respect of the Plan pursuant to section 741 of the Corporations Act 2001 (Cth) and required to be included in
these rules in order for that exemption or modification to have full
effect, is deemed to be contained in these rules.  To the extent that any covenant or other
provision deemed by this rule to be contained in these rules is
inconsistent with any other provision in these rules, the deemed covenant or
other provision shall prevail.

 

10.          Administration
of the Plan

 

(a)           The Plan will be administered by the Board in
accordance with these rules.  The Board
may make further rules for the operation of the Plan which are consistent
with these rules.

 

(b)           Any power or discretion which is conferred on the
Board by these rules must be exercised by the Board in the interests or
for the benefit of the Company, and the Board is not, in exercising any such
power or discretion, under any fiduciary or other obligation to any other
person.

 

14

 

(c)           Any power or discretion which is conferred on the
Board by these rules may be delegated by the Board to a committee
consisting of such Directors and/or other officers and/or employees of the
Company as the Board thinks fit.

 

(d)           The decision of the Board as to the interpretation,
effect or application of these rules will be final and conclusive.

 

(e)           The Board may from time to time suspend the operation
of the Plan and may at any time cancel the Plan.  The suspension or cancellation of the Plan
will not prejudice the existing rights of Participating Employees.

 

11.          Rights of
Participating Employees

 

Nothing in these rules:

 

(a)           confers on any Participating Employee the right to
receive any Securities;

 

(b)           confers on any Participating Employee the right to
continue as an Employee of the Company or any body corporate in the Group;

 

(c)           affects any rights which the Company or a body
corporate in the Group may have to terminate the employment of any
Participating Employee; or

 

(d)           may be used to increase damages in any action brought
against the Company or a body corporate in the Group in respect of any such
termination.

 

12.          Governing
law, Jurisdiction and Process

 

The Plan will be governed by the laws of
Victoria and will be construed and take effect in accordance with those laws.

 

13.          Paramountcy
of Trust Deed

 

To the extent of any inconsistency between
the terms and conditions of this Plan and the Trust Deed, the Trust Deed
prevails.

 

15

 

Schedule — Employee Security Loan Plan

 

 

Centro Properties Group

 

Employee Security Plan —
Loan Scheme

 

Prime Retail Property Trust

(to be renamed Centro Property Trust)
 ARSN 091 043 793

 

Prime Property Management Limited

(to be renamed Centro Properties Limited)
 ABN 45 078 590 682

 

1

 

Employee Security Plan — Loan Scheme — Rules

Adopted on 17 September 2004 at the Prime Retail Group Annual General
Meeting

 

These Rules provide

 

1.             Meaning of
words and interpretation

 

1.1           Meaning of words

 

In these Rules the following words have
these meanings unless the contrary intention appears:

 

Board means
all or some of the Directors acting as a board of the Company.

 

Bonus Share
means the share in respect of the Shares issued as part of a bonus issue to
shareholders of the Company.

 

Bonus Unit
means the units in the Trust issued as part of a bonus issue to Unit Holders of
the Trust.

 

Cash Distribution
means a distribution from the Trust.

 

Cash Dividend
means a dividend declared or paid with respect to Shares which is payable
wholly in cash or, in the case of a dividend declared or paid with respect to
Shares which is payable only partly in cash, that part of the dividend which is
payable in cash.

 

Company means
Prime Property Management Limited (ABN 45 078 590 682).

 

Director
means a director of the Company.

 

Eligible Employee
means:

 

(a)           a person who has been in the permanent full employment
of an entity (including a trust) which is in the Group for a period of at least
12 months before an invitation is made under this Plan; and

 

(b)           a person who has not been in the permanent full
employment of a body corporate which is in the Group for a period of at least
12 months before an invitation is made under this Plan but who the Directors
deem to be an Eligible Employee for the purposes of these Rules,

 

and includes a director of a
body corporate in the Group who holds on a permanent full time basis salaried
employment in a body corporate which is in the Group.

 

Employee
means an employee of an entity (including a trust) which is in the Group
(including a director of a body corporate in the Group who holds on a permanent
full time basis salaried employment in a body corporate which is in the Group).

 

2

 

Employee Entity
means:

 

(a)           a corporation that is directly or indirectly owned or
controlled by an Eligible Employee or his family; or

 

(b)           a natural person or corporation who is to hold the
Securities for the benefit of an Eligible Employee or his family.

 

Group means
the Company and each body corporate that is a subsidiary of the Company under
Division 6 of Part 1.2 of the Corporations Act 2001
(Cth), and the Trust and any entity controlled by the Trust or a company in the
Group.

 

Listing Rules means
the Listing Rules of ASX.

 

Loan means a
loan made by the Company under this Scheme.

 

Loan Security
means:

 

(a)           a Security acquired directly or indirectly with the
proceeds of a Loan; and

 

(b)           a Bonus Share or Bonus Unit deemed to be a Loan Security
by virtue of rule 4.9(b) of the rules of the Employee Security
Plan.

 

Participating Employee
means a person to whom a Loan is made.

 

Plan means
the Prime Employee Security Plan as established by these rules.

 

Related Loan
means in relation to a Loan Security, the Loan which directly or indirectly
funded the acquisition of the Loan Security or the Loan which directly or
indirectly funded the Loan Security in respect of which the Bonus Share and
Bonus Unit was issued or deemed to be issued.

 

Restricted Security
means a Security which the Participating Employee may not deal with until the
conditions of rule 5.9 are satisfied.

 

Security
means a Share and a Unit which are linked together and registered in the name
of the holder.

 

Share means
an ordinary share in the capital of the Company.

 

Tax Act means
the Income Tax Assessment Act 1936 (Cth) and
the Income Tax Assessment Act 1997 (Cth).

 

Trust means
the Prime Retail Property Trust ARSN 091 043 793.

 

Trust Deed
means the constitution of the Trust created by deed dated 20 January 1984
between James Aloysius Harris and Micram Pty Limited as amended from time to
time.

 

Trustee means
the trustee from time to time of the Trust.

 

3

 

Unit means an
undivided share in the beneficial interest in the Trust as provided in the
Trust Deed.

 

Unit Holder
means a person registered as holding a Unit in the Trust.

 

Unrestricted Security
means a security that is not a Restricted Security.

 

1.2           Interpretation

 

In this deed, unless the context requires a
different interpretation:

 

(a)           headings and words in bold type are for convenience
only and do not affect the interpretation of this deed;

 

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

 

(c)           words of one gender include any gender;

 

(d)           an expression implying a natural person includes any
corporation or other body corporate, partnership, joint venture, association
and any governmental or semi-governmental agency;

 

(e)           a reference to a clause or schedule is a reference to
a clause of, and a schedule to, this deed and a reference to this deed includes
any schedule;

 

(f)            a reference to a statute or regulation includes all
statutes and regulations amending, consolidating or replacing them, and all
regulations, proclamations, ordinances and by-laws issued under that statute;

 

(g)          a reference to a document includes an amendment or
supplement to, or replacement or novation of, that document; and

 

(h)           a reference to cash includes cheque and bank cheque.

 

2.             Application for Loan

 

2.1           Invitation to apply for Loan

 

At or about the time that an Eligible
Employee is invited to purchase or subscribe for Securities under the Plan, the
Board may invite the Eligible Employee to apply for a Loan for the purposes of
funding in whole or, if the Board so permits, in part the subscription or
purchase by the Eligible Employee of Securities under the Plan.

 

2.2           Application for Loan

 

An application for a Loan shall be in the
form prescribed by the Board from time to time and must be made solely by the
Eligible Employee and in the name of the Eligible Employee.

 

4

 

2.3                              Payment
authority

 

Each Participating Employee irrevocably
authorises the Company:

 

(a)           to pay directly to the Trustee that part of the Loan
required to fund the Unit component of Securities to be subscribed or purchased
with the proceeds of the Loan; and

 

(b)           to retain and apply that part of the Loan required to
fund the Share component of Securities to be subscribed or purchased with the
proceeds of the Loan.

 

3.             Amount of Loan

 

3.1           Loan Amount

 

Subject to rule 3.2, the maximum amount
of a Loan for which an Eligible Employee may apply under this Scheme is the
lesser of:

 

(a)           the amount determined by the Board in respect of that
Eligible Employee or in respect of Eligible Employees of a particular
classification; or

 

(b)           an amount equal to the aggregate price for the
purchase or subscription of Securities (plus any related acquisition costs such
as brokerage or stamp duty) which, at or about the time of the Participating
Employee applies for the Loan, are offered to the Eligible Employee under the
Plan and for which the Eligible Employee applies.

 

3.2           Maximum Loans

 

An Eligible Employee may only apply for a
Loan under this Scheme if the aggregate of:

 

(a)           the principal amount of the Loan for which application
is made; and

 

(b)           the aggregate principal amount of all other
outstanding Loans to the Eligible Employee under this Scheme,

 

does not exceed an amount, if
any, determined from time to time by the Board in respect of Eligible Employees
in that classification.

 

4.             Use of Loan

 

4.1          Application
of Loans

 

If application for a Loan pursuant to rule 2
is accepted by the Company, the entire amount of the Loan must be applied in or
towards paying in full on subscription for or purchase of the Securities which,
at or about the time the Loan is made, are subscribed for or purchased by the
Eligible Employee or a corporation controlled by the Eligible Employee under
the Plan.

 

5

 

4.2           Loans only for Plan

 

No proceeds of a Loan may be applied towards
subscribing for or purchasing a Security other than under the Plan.

 

4.3           Application of proceeds of Loans

 

The proceeds of a Loan will be applied on
behalf of the Eligible Employee in the manner outlined in rule 4.1 and in
accordance with the Plan.

 

5.             Interest on a Loan

 

5.1           Loans initially interest free

 

Subject to rules 5.2 and 8.3 the Loan
will be interest free unless the Board decides otherwise.

 

5.2           Interest after Loan due for repayment

 

A Participating Employee must pay interest on
the daily balance of the principal amount outstanding under a Loan (or part of
a Loan) from when the Loan (or that part of the Loan) becomes due for repayment
during the period that it remains unpaid.

 

5.3           Interest Rate

 

The rate of interest payable pursuant to rule 5.2
shall be the rate from time to time as determined by the Board.  Unless the Board decides otherwise, interest
will accrue from day to day and may be capitalised by the Company on the first
day of each month.  Interest is payable
on capitalised interest at the rate referred to in rule 5.3.

 

6.             Repayments from
Dividends and Cash Distributions

 

6.1           Repayment from Cash Dividends

 

The proportion of all Cash Dividends which
are paid in respect of a Loan Security and which are to be applied in repayment
of the Loan as required by the terms of the invitation to participate in the
Scheme must be applied by the Company in repaying the principal amount outstanding
under the Related Loan and any interest in respect of that Related Loan.

 

6.2           Repayment from Cash Distributions

 

The proportion of all Cash Distributions
which are paid in respect of a Loan Security and which are to be applied in
repayment of the Loan as required by the terms of the invitation to participate
in the Scheme must be applied by the Company in repaying the principal amount
outstanding under the Related Loan and any interest in respect of that Related
Loan.

 

6

 

6.3           No participation in bonus plans or DRP

 

The registered holder of Loan Securities is
not entitled in respect of Securities to participate in any distribution
reinvestment plan or scheme which provides for the reinvestment of distributions
in new Units or Shares for so long as there is a Related Loan.

 

7.             Sale and Buy Back of
Loan Securities

 

7.1           Application of sale proceeds

 

If the Loan Securities are sold under the
Plan or under rule 8, the registered holder of the Loan Securities irrevocably
authorises the Company to apply, on behalf of the registered holder of the Loan
Securities, the proceeds of sale of the Loan Securities (after deducting the
costs of sale including, without limitation, any brokerage, taxes and duties)
as follows:

 

(1)        first, in reduction of the
outstanding amount of the Related Loan made by the Company to the registered
holder of the Loan Securities to acquire the Securities;

 

(2)        secondly, if the Securities are
Unrestricted Securities, the balance (if any) in payment to the registered
holder of the Loan Securities;

 

(3)        thirdly, if the Securities are
Restricted Securities, the balance (if any) in payment to the registered holder
of the Loan Securities (as to one half) and to the Trustee (as to the other
half, as an accretion to the Trust);

 

(4)        fourthly, if the Securities comprise
both Unrestricted Securities and Restricted Securities, the balance (if any):

 

(A)          in payment to the registered holder
of the Loan Securities, in the proportion that the number of the Unrestricted
Securities bear to the number of Securities sold; and

 

(B)           in payment the registered holder of
the Loan Securities (as to one half) and to the Trustee (as to the other half,
as an accretion to the Trust), in the proportion that the number of the Restricted
Securities bear to the number of Securities sold.

 

7.2           Application of buy back proceeds

 

If the Loan Securities are redeemed and
bought back in accordance with rule 5.4(b)(2) of the Plan the
registered holder of the Loan Securities irrevocably authorises the Trustee and
the Company to apply on behalf of the registered holder of the Loan Securities
the amount for which those Securities were bought back as follows:

 

(a)           first, in payment of any costs and expenses of the
redemption and buy back incurred by the Trust or Company;

 

(b)           secondly, in reduction of the outstanding amount of
the Loan made by the Company to the registered holder of the Loan Securities to
acquire the Securities; and

 

7

 

(c)           thirdly:

 

(1)          if the Securities are Unrestricted
Securities, the balance (if any) in payment to the registered holder of the
Loan Securities;

 

(2)          if the Securities are Restricted
Securities, the balance (if any) in payment to the registered holder of the
Loan Securities (as to one half) and the Trustee (as to the other half, as an
accretion to the Trust); and

 

(3)          if the Securities comprise both
Unrestricted Securities and Restricted Securities, the balance (if any):

 

(A)          in payment to the registered holder
of the Loan Securities, in the proportion that the number of the Unrestricted
Securities bear to the number of Securities bought back; and

 

(B)           in payment to the registered holder
of the Loan Securities (as to one half) and to the Trustee (as to the other
half as an accretion to the Trust), in the proportion that the number of the
Restricted Securities bear to the number of Securities bought back.

 

7.3          Shortfall

 

If the proceeds of sale of Loan Securities
contemplated by rule 7.1 or the proceeds of the buy back contemplated by rule 7.2
are less than the amount outstanding in relation to the Related Loan, the
Company will forgive the amount of the shortfall (including principal, interest
(if any) and all other amounts owing in respect of the Related Loan).

 

8.             Repayment of Loan and
Revision of Loan Terms

 

8.1         Loan repayable

 

(a)           The whole of the principal amount outstanding under a
Loan (and any interest which has accrued and is unpaid) will become immediately
due and payable upon the earliest to occur of:

 

(1)          the 10th anniversary of the date on
which the Loan was made;

 

(2)          upon the Participating Employee
ceasing to be an Employee;

 

(3)          the Participating Employee becoming
an insolvent under administration as defined in section 9 of the Corporations Act 2001 (Cth); and

 

(4)          the date on which the Employee
Entity:

 

(A)          ceases to be controlled by the
Participating Employee; or

 

(B)           to hold the securities for the
benefit of the Participating Employee.

 

8

 

(b)           If the Participating Employee does not make the
Payment due under rule 8.1 within 2 business days, the registered holder
of the Loan Security irrevocably directs and authorises the Company to sell the
Loan Securities and apply the proceeds of sale (after deducting the costs of
sale including, without limitation, any brokerage, taxes and duties) in
accordance with rule 7.

 

(c)           If the proceeds of sale or buy back of Loan Securities
are less than the amount outstanding in relation to the Related Loan, the
Company will forgive the amount of the shortfall (including principal, interest
(if any) and all other amounts owing in respect of the Related Loan).

 

8.2           Early repayment

 

A Participating Employee may elect to repay
the whole or any of the principal amount outstanding under a Loan at any time.

 

8.3                               Unauthorised
disposal of Securities

 

If a registered holder of the Loan Security,
contrary to the Plan, sells, encumbers or otherwise deals with or attempts to
do any of these things (other than in accordance with rules 7 or 8) with
the legal or beneficial interest in any Loan Securities whilst any amount
remains outstanding in respect of the Related Loan the following provisions
apply:

 

(1)      the Board may elect to give the
Participating Employee a notice requiring repayment of the Related Loan and the
Related Loan referable to any other Loan Securities whereupon the whole of the
principal amount outstanding under each Related Loan (and any interest which
has accrued and is unpaid) becomes immediately due and payable and for the purpose
of rule 5.2 the whole of the principal amount outstanding under each
Related Loan is regarded as having become due for repayment on the date of
disposal of the Loan Securities; or

 

(2)      the Board may elect to give notice
to the Participating Employee of revised terms (including, without limitation)
as to interest and repayment) which are to apply to each Related Loan
determined at the discretion of the Board. 
If the Participating Employee accepts in writing the revised terms
within 14 days of receiving them, each Related Loan continues (from and
including the date of sale, encumbrance, dealing or attempt to do any of these
things with the Loan Security (“relevant date”)) on the basis of those revised terms.  If the Participating Employee does not accept
in writing the revised terms within 14 days of receiving them, the outstanding
balance of each Related Loan, at the end of that 14 day period, becomes
immediately due and payable and, for the purpose of rule 5.2, the
outstanding balance of each Related Loan is regarded as having become due for
repayment on the relevant date.

 

9.             Administration of the
Scheme

 

(a)          The Scheme will be administered by the Company in
accordance with these rules.  The Board
may make further rules for the operation of the Scheme which are
consistent with these rules.

 

9

 

(b)           Any power or discretion which is conferred on the
Board by these rules must be exercised by the Board in the interests or
for the benefit of the Company, and the Board is not, in exercising any such
power or discretion, under any fiduciary or other obligation to any other
person.

 

(c)          Any power or discretion which is conferred on the
Board by these rules may be delegated by the Board to a committee
consisting of such Directors and/or officers and/or employees of the Company or
a related body corporate of the Company as the Board thinks fit.

 

(d)          The decision of the Board as to the interpretation,
effect or application of these rules will be final and conclusive.

 

(e)          The Board may from time to time suspend the operation
of the Scheme and may at any time cancel the Scheme.  The suspension or cancellation of the Scheme
will not prejudice the existing rights of Participating Employees.

 

10.          Rights of Participating
Employees

 

Nothing in these rules:

 

(1)        confers on any Employee the right to
receive a Loan;

 

(2)        confers on any Participating
Employee the right to continue as an Employee of any body corporate in the
Group;

 

(3)        affects any rights which any body
corporate in the Group may have to terminate the employment of any Employee; or

 

(4)        may be used to increase damages in
any action brought against any body corporate in the Group in respect of any
such termination.

 

11.          Amendment of these Rules

 

(a)          Subject to rules 11(b) and 11(c), the
Company may at any time by written instrument or by resolution of the Board,
amend all or any of the provisions of these rules (including this rule 11).

 

(b)           No amendment of the provisions of these rules is
to reduce the rights of any Participating Employee in respect of a Loan made
under this Scheme prior to the date of the amendment, other than an amendment
introduced primarily:

 

(1)        for the purpose of complying with or
conforming to present or future State, Territory or Commonwealth legal
requirements governing or regulating the maintenance or operation of the Scheme
or like schemes;

 

(2)        to correct any manifest error or
mistake;

 

10

 

(3)        to enable contributions or other
amounts paid by any body corporate in the Group in respect of the Scheme to
qualify as income tax deductions for the body corporate or any other body
corporate in the Group;

 

(4)        to enable the Trustee, the
Participating Employee or any body corporate in the Group to reduce the amount
of fringe benefits tax under the Fringe Benefits Tax
Assessment Act 1986 (Cth), the amount of tax under the Tax Act or
the amount of any other tax or impost that may otherwise be payable by the
Trustee, the Participating Employee or any body corporate in the Group in
relation to the Scheme or matters arising therefrom;

 

(5)        for the purpose of enabling the
Participating Employees generally (but not necessarily each Participating
Employee) to receive a more favourable taxation treatment in respect of their
participation in the Scheme or matters arising therefrom; or

 

(6)        to enable the Trustee or any body
corporate in the Group to comply with the Corporations Act 2001
(Cth) or the Listing Rules.

 

(c)           No amendment may be made except in accordance with and
in the manner (if any) stipulated by the Listing Rules.

 

(d)           Subject to the above provisions of this rule 11,
any amendment made pursuant to rule 11(a) may be given such
retrospective effect as is specified in the written instrument or resolution by
which the amendment is made.

 

12.          Notices

 

Any notice regarding Loans granted under the
Scheme will be sent to the address of the Participating Employee as notified to
the Company and the Trustee from time to time by the Participating Employee.

 

13.          General

 

Unless the Board otherwise determines,
payments made in respect of a Loan will be applied first towards payment of
interest (if any) and secondly towards payment of principal.

 

14.          Governing Law

 

The Scheme is governed by and shall be
construed and take effect in accordance with the laws of Victoria.

 

11

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