Document:

Exhibit 4(c).14

 

	
   

  	
  Rules of the

  Westpac Banking Corporation

  Employee Share Plan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  •                                          the Board on
  9 August 2002;  and

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  •                                          the Board Remuneration
  Committee on 28 October 2002, 11 December 2002 and 5 May 2003.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Allens Arthur Robinson

  The
  Chifley Tower

  2 Chifley Square

  Sydney  NSW  2000

  Australia

  Tel  61  2 9230 4000

  Fax  61  2 9230 5333

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  © Copyright Allens Arthur Robinson 2003

  	
   

  

 

 

	
  Rules of the Westpac Banking Corporation

  Employee Share Plan

  	
  

  

 

	
  Table of Contents

  
	
   

  
	
  1.

  	
  Purpose

  
	
   

  	
   

  
	
  2.

  	
  Definitions and
  interpretations

  
	
   

  	
   

  
	
  3.

  	
  Interpretation

  
	
   

  	
   

  
	
  4.

  	
  Principal
  Conditions

  
	
   

  	
   

  
	
  5.

  	
  Invitation
  to acquire Shares

  
	
   

  	
  5.1

  	
  Issue

  
	
   

  	
  5.2

  	
  Form

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Application for
  Shares

  
	
   

  	
   

  
	
  7.

  	
  Methods of
  Share Acquisition

  
	
   

  	
   

  
	
  8.

  	
  Acquisition
  of Shares by the Plan Company

  
	
   

  	
  8.1

  	
  Directions by the Board

  
	
   

  	
  8.2

  	
  Payment of contributions

  
	
   

  	
  8.3

  	
  Use of contributions

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Allocation
  of Shares

  
	
   

  	
  9.1

  	
  Bank’s action

  
	
   

  	
  9.2

  	
  Registered holder

  
	
   

  	
  9.3

  	
  Identification of funds

  
	
   

  	
  9.4

  	
  Unallocated Shares

  
	
   

  	
  9.5

  	
  Error in Allocation

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Non-forfeiture
  of Shares

  
	
   

  	
  A Participant cannot be required to
  forfeit either:

  
	
   

  	
   

  
	
  11.

  	
  Restrictions
  on dealing with Shares

  
	
   

  	
  11.1

  	
  Application of Holding Lock

  
	
   

  	
  11.2

  	
  Holding Lock restrictions

  
	
   

  	
  11.3

  	
  Enforcement by Board

  
	
   

  	
  11.4

  	
  Release from Holding Lock

  
	
   

  	
  11.5

  	
  Authority to Sell

  
	
   

  	
  11.6

  	
  Calculation of Minimum Parcel

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Rights attaching to Shares

  
	
   

  	
  12.1

  	
  Ranking and Listing

  
	
   

  	
  12.2

  	
  Voting rights

  
	
   

  	
  12.3

  	
  Bonus Shares

  
	
   

  	
  12.4

  	
  Rights Issue

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Authorised
  deductions

  
	
   

  	
   

  
	
  14.

  	
  Commencement and
  termination

  
	
   

  	
  14.1

  	
  Commencement

  
	
   

  	
  14.2

  	
  Termination and Suspension

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Administration
  of the Plan

  

 

i

 

	
  16.

  	
  Amendment of
  the Plan

  
	
   

  	
  16.1

  	
  By the Board

  
	
   

  	
  16.2

  	
  Listing Rules

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Issue
  limitations

  
	
   

  	
   

  
	
  18.

  	
  Law, Listing Rules and the Constitution

  
	
   

  	
   

  
	
  19.

  	
  Rights of Participants

  
	
   

  	
   

  
	
  20.

  	
  General

  
	
   

  	
  20.1

  	
  Advice

  
	
   

  	
  20.2

  	
  Relation of the Bank, Plan Company and
  Participants

  
	
   

  	
  20.3

  	
  Costs and Expenses

  
	
   

  	
  20.4

  	
  Dispute

  
	
   

  	
  20.5

  	
  Notices

  
	
   

  	
  20.6

  	
  Governing Law

  

 

ii

 

WESTPAC
BANKING CORPORATION (ABN 33 007 457 141)

 

EMPLOYEE
SHARE PLAN

 

RULES

 

1.                                     Purpose

 

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

 

2.                                     Definitions
and
interpretations

 

In this
document the following
terms have the following meanings:

 

Acquisition Date means in relation to Shares acquired
under the Plan by, or for the benefit of, a Participant:

 

(a)                                  the date on which the Shares are allotted and
issued to that Participant or, in the case of Shares purchased on behalf of
that Participant, the name of that Participant is entered in the Bank’s
register of members; or

 

(b)                                 such other date as may be determined by the
Board in its discretion so as to ensure the Exemption Conditions are satisfied.

 

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

 

Application Date means the last possible date as
specified in an Invitation on which an Application can be made.

 

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

 

ASIC means the Australian Securities and
Investments Commission.

 

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

 

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

 

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

 

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

 

Bonus Shares means Shares to which a holder of
Shares is entitled in any pro rata issue by the Bank to holders of Shares for
which no consideration is payable by the holder.

 

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

 

1

 

Charity means an entity where gifts and
contributions to that entity are deductible in accordance with Division 30 of
the Tax Act or any charitable organisation as determined by the Board from time
to time.

 

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

 

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

 

Corporations Act
means the Corporations Act 2001 (Cth).

 

Disposal Restrictions means the restrictions on dealing with Shares as set out in
clause 11.

 

Eligible Employee means an Employee whom the Board determines is to receive an
Invitation under the Plan.  The Board
may also determine at any time that an Employee:

 

(a)                                  who, during the 12 months immediately preceding the date of
determination, has acquired a legal or beneficial interest in any Share or
option over Shares pursuant to any other share or option plan operated by or on
behalf of the Bank at any time; or

 

(b)                                 who is located in a jurisdiction where it is, in the opinion of the
Board, not reasonably practicable to invite participation in the Plan,

                                                

is not an Eligible Employee and that, until
the Board determines otherwise, such Employee shall not receive an Invitation
under the Plan.

 

The Board may
take into account any of the following factors in determining the eligibility
of an Employee:

 

(i)                                     the
length of continuous service of the Employee with any one or more Group
Companies;

 

(ii)                                 the number of hours worked per week for Employees in part-time
employment; or

 

(iii)                              any other factors determined by the Board in its absolute
discretion.

 

Employee means:

 

(a)                                  any
person who is in full-time or part-time employment of a Group Company; or

 

(b)                                 any
other person whom the Board determines shall be treated as an employee for the
purposes of the Plan.

 

Exemption Conditions means the exemption conditions set
out in section 139CE of the Tax Act.

 

Group Company means the Bank and any of its
subsidiaries.

 

Holding Lock means a mechanism to prevent, in
accordance with clause 11.2, dealings with Shares held by a Participant under
the Plan during the Holding Lock Period with respect to those Shares.

 

Holding Lock Period means, in relation to Shares
acquired under the Plan by, or for the benefit of a Participant, the period
from the Acquisition Date until the earliest of:

 

2

 

(a)                                  the third anniversary of the
Acquisition Date, or such other date as may be determined by the Board in its
discretion subject to the satisfaction of the Exemption Conditions; and

 

(b)                                 the date on which the Participant
ceases employment within the meaning of section 139CE(5) of the Tax Act.

 

Invitation means an invitation to apply to
acquire Shares under the Plan, subject always to compliance with Law.

 

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

 

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

 

Market Price means:

 

(a)                                  in relation to the allocation of
Shares acquired in On-Market Acquisitions, the average price per Share (rounded
to the nearest whole cent, with on-half of one-cent being rounded down) of all
Shares so acquired by the Plan Company for the purposes of making that
allocation to each of the relevant Participants; and

 

(b)                                 in relation to the allocation of
Shares that have been or are to be acquired by way of allotment and issue by
the Bank to the Plan Company for the purposes of making that allocation to each
relevant Participant, the weighted average market price per Share quoted on the
ASX during the one week period up to and including the day before the day on
which the Shares are allocated to that Participant in accordance with clause 9.  The Board may exercise a discretion to
include or exclude particular transactions from this calculation (e.g.
“specials”) as it thinks fit.  If no
Shares are traded on the ASX during that one week period, the price as determined
by the Board.

 

Minimum Parcel means the minimum number of Shares
determined by the Board from time to time and calculated in accordance with
clause 11.6.

 

On-Market Acquisition means the acquisition of Shares in
the ordinary course of trading or otherwise on a Trading Day on the ASX.

 

Participant means:

 

(a)                                  an Eligible Employee who returns a
duly completed Application Form in accordance with clause 6(a);

 

(b)                                 the legal personal representative of
that Eligible Employee, where that legal personal representative, having
satisfied the requirements of the Constitution, is the shareholder named in the
Bank’s register of members; or

 

(c)                                  if, because of the Bankruptcy Act 1966 (Cth) or equivalent
legislation in any other jurisdiction, Shares (or any interests in Shares) held
under the Plan that form part of the property of a Eligible Employee, vest in
the trustee of that Eligible Employee’s estate, that trustee, whether or not
the name of that trustee had been entered in the Bank’s register of members.

 

Plan means the Westpac Banking Corporation Employee Share Plan.

 

3

 

Plan Company means Employee Share Plan Pty
Limited (ABN 93 068 131 260) or such other person nominated from time to time
by the Board.

 

Release Request means a duly completed request executed
by a Participant in a form approved by the Board from time to time, for
permission from the Board to have released from a Holding Lock all or a
specified number (being not less than a Minimum Parcel) of Shares held by that
Participant under the Plan.

 

Relevant Value in relation to an Eligible Employee
in respect of a Year means the amount determined by the Board and specified in
an Invitation.

 

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

 

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

 

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

 

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

 

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

 

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

 

Unallocated Shares means Shares acquired by the Plan
Company at any time:

 

(a)                                  under clause 8.3 for the purposes of
the Plan which have not been allocated to a Participant under clause 9.1; and

 

(b)                                under clause 9.5.

 

Year means each period of twelve calendar
months commencing on 1 October and ending on 30 September of the following
calendar year or such other period as the Board determines at its discretion.

 

Year of Income means a period of 12 months ending on 30 June in any year and
including the period commencing on the date of commencement of this Plan and
terminating on the next 30 June and the period ending on the date of
termination of the Plan and commencing on the preceding 1 July or any other
period determined by the Board in its discretion.

 

3.                                     Interpretation

 

In this document unless the contrary intention appears:

 

(a)                                  a gender includes all genders;

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

4.                                     Principal Conditions

 

The Plan in
its terms and operation, and Shares acquired by Eligible Employees under the
Plan, shall satisfy the Exemption Conditions so as to permit the application of
section 139BA of the Tax Act to Participants. 
Without limiting the foregoing, the Plan shall be operated on a
non-discriminatory basis within the meaning of that expression in section 139CE
and section 139GF of the Tax Act until such time as the Plan is terminated
under clause 14.2.

 

5.                                     Invitation to acquire Shares

 

5.1                              Issue

 

In its absolute discretion and
subject to these Rules, the Board may from time to time issue or cause to be
issued Invitations on behalf of the Bank to Eligible Employees.  The Board may further determine that those
Invitations be made to Eligible Employees on terms which are different between
full-time and part-time employees.

 

5.2                              Form

 

(a)                                  An Invitation may take any form determined by
the Board from time to time and must specify:

 

(i)                                    the date of the Invitation;

 

(ii)                                 the Relevant Value in respect of each Eligible
Employee;

 

(iii)                              the amount, date and manner of payment of
consideration (if any) by the Eligible Employee to acquire the Shares;

 

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

 

5

 

(v)                                any other material terms and conditions require
by any relevant Class Order and any other material terms and conditions
applicable to the Invitation.

 

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

 

6.                                     Application for Shares

 

(a)                                  An Eligible Employee who receives an Invitation
may only make an Application by applying for the full value of Shares the
subject of the Invitation and returning the duly completed Application Form
within the time period and as otherwise specified in the Invitation:

 

(b)                                 If, on returning the duly completed Application
Form in accordance with paragraph (a) of this clause, the Eligible Employee
remains an Employee, he or she:

 

(i)                                    becomes a Participant;

 

(ii)                                 offers to acquire Shares under the Plan in
accordance with the terms of the Invitation, and

 

(iii)                              agrees to be bound by the Rules.

 

7.                                     Methods of Share Acquisition

 

Shares may be acquired for the purposes of the Plan:

 

(a)                                  by way of allotment and issue of Shares by the Bank to the Plan
Company in the name of the respective Participants; or

 

(b)                                 by the Plan Company making an On-Market Acquisition.

 

8.                                     Acquisition
of Shares
by the Plan Company

 

8.1                              Directions by the Board

 

Subject to
these Rules, the
Listing Rules, the Constitution and any relevant Law to the contrary, the Plan
Company must follow any direction given to it by the Board as to the operation
of the Plan.

 

8.2                              Payment of contributions

 

Any Group Company may pay to the Plan Company contributions as
determined by the Board from time to time to be used for the purposes of the
Plan.

 

8.3                              Use of contributions

 

(a)                                  Upon receipt of contributions from a
Group Company, the Plan Company must use such contributions to acquire Shares
for Participants as directed from time to time by the Board, within a
reasonable period to be determined by the Board.

 

6

 

(b)                                 Pending the acquisition of Shares,
the Plan Company may invest moneys in short term deposits or otherwise apply
moneys for the purposes of the Plan. 
Any interest earned on such deposits will be used by the Plan Company
towards the costs of administering the Plan.

 

(c)                                  Any money held by the Plan Company at the end of a Year of Income
shall be applied by the Plan Company, if so directed by the Board, in whole or
in part for the benefit of:

 

(i)                                    the Bank; or

 

(ii)                                 one or more of the following beneficiaries as nominated by the
Board:

 

(A)                             a provident, superannuation or retirement fund established and
maintained by any Group Company for the benefit of all or any Employees;

 

(B)                               an employee share or option trust established and maintained by any
Group Company for the benefit of all or any Employees;

 

(C)                               a trust established and maintained by any Group Company for the
benefit of all or any Employees; or

 

(D)                              any Charity.

 

9.                                     Allocation
of Shares

 

9.1                              Bank’s action

 

(a)                                  Each Participant, who continues to be an
Employee as at the date on which Shares are to be allocated under this Plan,
shall be allocated such number of Shares as is determined in accordance with
the following formula:

 

	
  Number of Shares = 

  	
   

  	
  Relevant Value

  
	
   

  	
  Market Price

  

 

(b)                                 Where the number of Shares to be allocated
under this clause is not a whole number, the number shall be rounded down to
the nearest whole number.

 

9.2                              Registered
holder

 

Shares are to be registered in
the name of the Participant.

 

9.3                              Identification
of funds

 

The Plan Company is not
required to identify any Shares it purchases under the Plan with any particular
funds it receives from any Group Company in respect of any Participant, but
must allocate the Shares purchased among the relevant Participants as
determined by the Board.

 

9.4                              Unallocated
Shares

 

If, after allocating Shares to Participants under
clause 9.1, there remains Unallocated Shares, the Plan Company shall, if so
directed by the Board:

 

7

 

(a)                                  allocate those Unallocated Shares to one or more Eligible Employees
as nominated by the Board from time to time; 
or

 

(b)                                 sell those Unallocated Shares and distribute the net sales proceeds
to the Bank;  or

 

(c)                                  (i)                                   transfer those Unallocated Shares;

 

(ii)                                 sell those Unallocated Shares and distribute the net sales
proceeds;  or

 

(iii)                              undertake any combination of paragraph (i) and paragraph (ii),

 

to one or more of the following
beneficiaries as nominated by the Board:

 

(iv)                             a provident, superannuation or retirement fund established and
maintained by any Group Company for the benefit of all or any Employees;

 

(v)                                an employee share or option plan, scheme or trust established and
maintained by any Group Company for the benefit of all or any Employees;

 

(vi)                             a plan, scheme or trust established and maintained by any Group
Company for the benefit of all or any Employees;  or

 

(vii)                          any Charity;  or

 

(d)                                 undertake any combination of paragraphs (a), (b) and (c).

 

9.5                              Error in Allocation

 

If any Share is allocated under this Plan in error or by mistake to a
person (the Mistaken Recipient)
who is not the intended recipient of that Shares, the Mistaken Recipient shall
have no right or interest, and shall be taken never to have had any right or
interest, in that Share and shall hold that Share absolutely for the account of
the Plan Company (the Beneficiary).  If
directed by the Plan Company to do so, the Mistaken Recipient must as soon as
practicable (and in any event within 10 Business Days of being so requested)
transfer that share of the Mistaken Recipient in that Share to the
Beneficiary.  Each Participant irrevocably
appoints each officer of the Plan Company as the attorney of the Participant to
execute and deliver any instrument of transfer or other document necessary or
desirable to effect such a transfer from the Mistaken Recipient to the
Beneficiary, and the Beneficiary shall hold such Shares solely for the purposes
of the Plan.

 

10.                              Non-forfeiture of Shares

 

A Participant cannot be required to forfeit either:

 

(a)                                  ownership of Shares acquired; or

 

(b)                                 any rights acquired,

 

under the Plan.

 

8

 

11.                              Restrictions on dealing with
Shares

 

11.1                       Application of Holding Lock

 

Each
Participant:

 

(a)                                  agrees that all Shares allocated to the Participant will be subject
to a Holding Lock for the duration of the Holding Lock Period; and

 

(b)                                 undertakes not to make a Release Request (or permit or authorise
another person to do so), in relation to any Shares allocated to the
Participant under clause 9, prior to the end of the Holding Lock Period

 

11.2                       Holding Lock restrictions

 

While subject to a Holding Lock, Shares acquired under
the Plan by or for the benefit of a Participant cannot be transferred by the
Participant and the Participant must not grant (or purport to grant) any
Security Interest in or over or otherwise dispose of or deal with (or purport
to otherwise dispose or deal with) any Shares acquired under the Plan or any
interest in any Shares acquired under the Plan held by the Participant.

 

11.3                       Enforcement by Board

 

The Board
shall be entitled to prescribe, take and enforce such action, steps or
arrangements as it considers necessary, desirable or appropriate to enforce or
give further effect to the provisions of clauses 11.1 and 11.2 so as to ensure
the Exemption Conditions are satisfied.

 

11.4                       Release from Holding Lock

 

At any time
after the end of the Holding Lock Period and subject to clause 9.5:

 

(a)                                  a Participant shall be entitled to submit a Release Request to the
Board in respect of the relevant Shares. 
The Board shall release those Shares from the Holding Lock within a
reasonable period from the date of receipt of the Release Request; or

 

(b)                                 the Board shall be entitled to approve the release of Shares from a
Holding Lock without having received a Release Request from a Participant and
remove those Shares from the Plan.

 

11.5                       Authority to Sell

 

(a)                                  If after:

 

(i)                                    the expiration of the Holding Lock Period as a result of paragraph
(b) of the definition of Holding Lock Period; or

 

(ii)                                 the release from the Holding Lock under clause 11.4,

 

a Participant holds less than the Minimum Parcel of
Shares, the Plan Company may, and will if directed to do so by the Board,
without the need for any authorisation from that Participant, sell the Shares
registered in that Participant’s name and deduct from the proceeds of such a
sale an amount equal to all outgoings and expenses the Plan Company incurs in
selling such Shares.

 

9

 

(b)                                 If at any time:

 

(i)                                    after the third anniversary of the Acquisition Date of any Shares;
and

 

(ii)                                 prior to the release of those Shares from the Holding Lock,

 

a Participant ceases to be an Employee, or the
Participant’s employer has ceased to be a Group Company, the Plan Company may,
and will if directed to do so by the Board:

 

(A)                             if that Participant holds less than a Minimum Parcel of Shares, sell
all of the Shares registered in that Participant’s name pursuant to the Plan
and deduct from the proceeds of such a sale an amount equal to all outgoings
and expenses the Plan Company incurs in selling such Shares; or

 

(B)                               if that Participant holds a Minimum Parcel of Shares or more, take
all action that may be necessary to ensure that those Shares are released from
the Holding Lock.

 

11.6                       Calculation of Minimum Parcel

 

All Shares of which the Participant is the registered
holder shall be aggregated with all other Shares held by that Participant
whether:

 

(a)                                  under any of the Bank’s employee share plans, including this Plan,
but excluding

 

(i)                                    for the avoidance of doubt, any Shares which could be issued on
exercise of any unexercised options; and

 

(ii)                                 Shares dealings in which are restricted under the rules of any of
those plans ; or

 

(b)                                 otherwise,

 

for the purpose of determining whether the Participant
holds a Minimum Parcel of Shares.

 

12.                              Rights attaching to Shares

 

12.1                       Ranking and Listing

 

(a)                                  A Participant is entitled to receive any dividends and other
distributions paid or made on Shares allocated to that Participant under the
Plan and registered in the name of that Participant.  This applies even if such Shares are subject to a Holding Lock.

 

(b)                                 If Shares are allotted and issued under this Plan, they will, from
the date of allotment and issue rank equally with all other issued Shares.  The Bank will apply for official quotation
of these Shares on each stock exchange on which Shares are quoted.

 

12.2                       Voting rights

 

A Participant
may exercise any voting rights attaching to the Shares allocated to that
Participant under the Plan and registered in the name of that Participant, or
may appoint a proxy to represent and vote for him or her, at any meeting of the
members of the Bank. This applies even if such Shares are subject to a Holding
Lock.

 

10

 

12.3                       Bonus Shares

 

(a)                                  Any Bonus Shares in respect of Shares (the Original Shares) that, at the closing date
for determining entitlements to those Bonus Shares, are allocated to that
Participant under the Plan and registered in the name of that Participant,
shall also be allocated to that Participant under the Plan and registered in
the name of that Participant and be subject to a Holding Lock.

 

(b)                                 Bonus Shares shall be deemed to be subject to the same Disposal
Restrictions for the purposes of the Plan as if they were the Original Shares.

 

(c)                                  The Plan Company will not sell the Bonus Shares or transfer them to
the Participant unless the Plan Company sells or transfers the Original Shares.

 

12.4                       Rights Issue

 

The Board may
decide in its absolute discretion whether Participants can participate in any
pro rata rights issues of Shares made by the Bank (and whether fully or partly
in any such issue) or sell renounceable rights.

 

13.                              Authorised deductions

 

Before making
any payment to a Participant, the Plan Company is authorised to deduct:

 

(a)                                  all outgoings and expenses it incurs in selling and otherwise
dealing with Shares for Participants;

 

(b)                                 Tax which, in the opinion of the directors of the Plan Company, is
or would be payable by the Plan Company in connection with the Plan; and

 

(c)                                  any other amounts that in the opinion of the directors of the Plan
Company it is fair and reasonable to deduct.

 

14.                              Commencement and termination

 

14.1                       Commencement

 

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

 

14.2                       Termination
and Suspension

 

(a)                                  The Board may terminate or suspend the
operation of the Plan at any time by resolution of the Board.

 

(b)                                 A resolution by the Board to terminate the
operation of the Plan must include the following:

 

(i)                                    the termination is to take effect from a date
not less than three years from the date of the last allotment or purchase of
Shares under the Plan; and

 

11

 

(ii)                                 no further Invitations will be issued under the
Plan between and including the date of resolution and the date on which the
termination is to take effect.

 

15.                              Administration of the Plan

 

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

 

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

 

(i)                                    give directions to any one or more persons appointed under paragraph
(a) of this clause 15 as to the manner of the exercise by the Board of any of
its discretions under these Rules or the Plan;

 

(ii)                                 amend any of those directions,

 

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

 

(c)                                  The Board shall have power to:

 

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

 

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

 

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

 

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

 

16.                              Amendment of the Plan

 

16.1                       By the Board

 

Subject to
clause 16.2, the Board may at any time and from time to time by resolution:

 

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

 

(b)                                 formulate (and subsequently amend) special terms and conditions, in
addition to those set out in these Rules, to apply to Eligible Employees
employed in, resident in, or who are citizens of, countries other than
Australia.  Each of such sets of special
terms and conditions shall be restricted in its application to those Eligible
Employees employed in, resident in, or who are citizens of the foreign country
or countries specified by the Board, and may be revoked, added to or varied
under paragraph (a) of this clause 16.1.

 

12

 

16.2                       Listing Rules

 

The Board’s
exercise of its powers under clause 16.1 is subject to any restrictions or
procedural requirements relating to the amendment of the rules of an employee
incentive scheme imposed by the Listing Rules and applicable to the Plan or the
Shares, as the case may be, unless those restrictions or requirements are
relaxed or waived by the ASX or any of its delegates either generally or in a
particular case or class of cases and either expressly or by implication.

 

17.                              Issue limitations

 

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

 

(b)                                 Shares may not be offered under the Plan to an
Eligible Employee to the extent that, immediately following acceptance of the
Shares, either the Eligible Employee would hold a legal or beneficial interest
in more than five percent (5%) of the Shares or would be in a position to cast,
or control the casting of, more than five percent (5%) of the maximum number of
votes that might be cast at a general meeting of the Bank.

 

18.                              Law, Listing Rules and the Constitution

 

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

 

19.                              Rights of Participants

 

Nothing in
these Rules:

 

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

 

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

 

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

 

(d)                                 may be used to increase damages in any action
brought against any Group Company in respect of any such termination; or

 

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

 

13

 

20.                              General

 

20.1                       Advice

 

Eligible
Employees should obtain their own independent advice on the financial, taxation
and other consequences to them of or relating to actual or proposed
participation in the Plan, the acquisition of Shares under the Plan and the subsequent
disposal of those Shares.

 

20.2                       Relation of the Bank, Plan Company and Participants

 

(a)                                  The Plan Company acts as principal in the operation of the Plan and
not as an agent of the Bank or of Participants.

 

(b)                                 When acquiring or arranging for the issue of Shares and when
acquiring and dealing with Unallocated Shares, but not otherwise, the Plan
Company acts as trustee for the relevant Participant until such time as those
Shares have been acquired, allocated to that Participant and registered in that
Participant’s name.  All other fiduciary
obligations and duties of the Plan Company to any Participant that might
otherwise be implied or imposed by law or equity are expressly excluded to the
extent permitted by law, including without limitation any such obligation
arising under any statute.

 

(c)                                  The Plan Company is not a trustee for the Bank or, except as
provided by paragraph (b) of this clause 20.2, any Participant.

 

20.3                       Costs and Expenses

 

With the exception of Taxes that may be levied on the
Plan Company in respect of the sale or purchase of Shares on behalf of a
Participant under this Plan, a Participant will not be liable for any costs
incurred by the Plan Company in connection with the implementation and
administration of the Plan unless the Board in its discretion determines
otherwise.  If the Board so determines,
the Board must inform the Participant prior to allocating any such expense to a
Participant.

 

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

 

20.4                       Dispute

 

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

 

20.5                       Notices

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)                                 in the case of any Application Form or a Release Request, that
application or request will not be taken to have been received by or on behalf
of the Bank until it is actually received by the Bank at the address nominated
from time to time by the Board.

 

20.6                       Governing
Law

 

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

 

15Exhibit 4(c).15

 

Rules of the

Westpac Banking Corporation

Deferral Share Plan

 

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

 

•                                         the Board on 9 August 2002; 
and

•                                         The Board Remuneration Committee on 28 October 2002,11 December 2002
and 5 May 2003.

 

 

Allens Arthur Robinson

The Chifley
Tower

2 Chifley
Square

Sydney  NSW 
2000

Australia

Tel  61  2
9230 4000

Fax  61  2
9230 5333

 

© Copyright
Allens Arthur Robinson 2003

 

 

	
  Rules of the
  Westpac Banking Corporation Deferral Share Plan

  	
  

  

 

 

	
  Table of Contents

  
	
   

  
	
  1.

  	
  Purpose

  
	
   

  	
   

  
	
  2.

  	
  Definitions and
  interpretations

  
	
   

  	
   

  
	
  3.

  	
  Interpretation

  
	
   

  	
   

  
	
  4.

  	
  Invitation to acquire
  Shares

  
	
   

  	
  4.1        Issue

  
	
   

  	
  4.2        Request for remuneration preference

  
	
   

  	
  4.3        Discretion as to amount and value of
  Shares

  
	
   

  	
  4.4        Form
  of Invitation

  
	
   

  	
   

  
	
  5.

  	
  Application
  for Shares

  
	
   

  	
   

  
	
  6.

  	
  Right
  to discontinue

  
	
   

  	
   

  
	
  7.

  	
  Methods of Share
  Acquisition

  
	
   

  	
   

  
	
  8.

  	
  Acquisition
  of Shares by the Plan Company

  
	
   

  	
  8.1        Directions by the Board

  
	
   

  	
  8.2        Payment of contributions

  
	
   

  	
  8.3        Use of contributions

  
	
   

  	
   

  
	
  9.

  	
  Allocation
  of Shares

  
	
   

  	
  9.1        Bank’s
  action

  
	
   

  	
  9.2        Registered
  holder

  
	
   

  	
  9.3        Identification of funds

  
	
   

  	
  9.4        Non-acceptance of Application

  
	
   

  	
  9.5        Error
  in Allocation

  
	
   

  	
  9.6        Unallocated
  Shares

  
	
   

  	
   

  
	
  10.

  	
  Forfeiture
  of Shares

  
	
   

  	
  10.1      Breach, Fraud or Dishonesty

  
	
   

  	
  10.2      Forfeiture Mechanism

  
	
   

  	
   

  
	
  11.

  	
  Restrictions on
  dealing with Shares

  
	
   

  	
  11.1      Application of Holding Lock

  
	
   

  	
  11.2      Holding Lock restrictions

  
	
   

  	
  11.3      Enforcement by Board

  
	
   

  	
  11.4      Release Request

  
	
   

  	
  11.5      Release from Holding Lock

  
	
   

  	
   

  
	
  12.

  	
  Rights attaching to Shares

  
	
   

  	
  12.1      Ranking and Listing

  
	
   

  	
  12.2      Voting
  rights

  
	
   

  	
  12.3      Bonus
  Shares

  
	
   

  	
  12.4      Rights
  Issues

  
	
   

  	
   

  
	
  13.

  	
  Commencement and termination

  
	
   

  	
  13.1      Commencement

  
	
   

  	
  13.2      Termination and Suspension

  

 

i

 

 

	
  14.

  	
  Administration of the Plan

  
	
   

  	
   

  
	
  15.

  	
  Amendment
  of the Plan

  
	
   

  	
  15.1      By
  the Board

  
	
   

  	
  15.2      Listing
  Rules

  
	
   

  	
   

  
	
  16.

  	
  Issue
  limitations

  
	
   

  	
   

  
	
  17.

  	
  Law, Listing Rules and the Constitution

  
	
   

  	
   

  
	
  18.

  	
  Rights
  of Participants

  
	
   

  	
   

  
	
  19.

  	
  General

  
	
   

  	
  19.1      Advice

  
	
   

  	
  19.2      Relation of the Bank, Plan Company and
  Participants

  
	
   

  	
  19.3      Costs
  and Expenses

  
	
   

  	
  19.4      Dispute

  
	
   

  	
  19.5      Notices

  
	
   

  	
  19.6      Governing
  Law

  

 

ii

 

WESTPAC
BANKING CORPORATION (ABN 33 007 457 141)

 

DEFERRAL
SHARE PLAN

 

RULES

 

1.                                     Purpose

 

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

 

2.                                     Definitions and interpretations

 

In this
document the following
terms have the following meanings:

 

Acquisition Date means in relation to Shares acquired
under the Plan by, or for the benefit of, a Participant:

 

(a)                                  the date on which the Shares are
allotted and issued to that Participant or, in the case of Shares purchased on
behalf of that Participant, the name of that Participant is entered in the
Bank’s register of members; or

 

(b)                                 such other date as may be determined
by the Board in its discretion.

 

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

 

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

 

ASIC means the Australian Securities and
Investments Commission.

 

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

 

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

 

Australian ADI means an authorised deposit-taking
institution, as defined by section 5 of the Banking Act 1959 (Cth).

 

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

 

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

 

Bonus Shares means Shares to which a holder of
Shares is entitled in any pro rata issue by the Bank to holders of Shares for
which no consideration is payable by the holder.

 

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

 

1

 

Charity means an entity where gifts or
contributions to that entity are deductible in accordance with Division 30 of
the Tax Act or any charitable organisation as determined by the Board from time
to time.

 

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

 

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

 

Corporations Act
means the Corporations Act 2001 (Cth).

 

Disposal Restrictions means the restrictions on dealing
with Shares as set out in clause 11.

 

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

 

Employee means:

 

(a)                                  any person who is in full-time or
part-time employment of a Group Company; and

 

(b)                                 a non-executive director of the
Bank.

 

Group Company means the Bank and any of its
subsidiaries.

 

Holding Lock means a mechanism to prevent, in
accordance with clause 11.2, dealings with Shares held by a Participant under
the Plan during the Holding Lock Period with respect to those Shares.

 

Holding Lock Period means, in relation to Shares
acquired under the Plan by, or for the benefit of, a Participant, the period
from the Acquisition Date of those Shares until the earlier of:

 

(a)                                  the tenth anniversary of the
Acquisition Date, or such other date as may be determined by the Board in its
discretion;

 

(b)                                 the date on which the Participant
ceases employment within the meaning of section 139CA(3) of the Tax Act;

 

(c)                                  the time of receipt by the Plan
Company of a written consent of the Board approving a Release Request made by a
Participant pursuant to clause 11.4; or

 

(d)                                 only if the Board determines in its
absolute discretion, the date on which the Participant’s employer first ceases
to be a Group Company.

 

Invitation means an invitation to apply to
acquire Shares under the Plan, subject always to compliance with any Law.

 

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

 

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

 

2

 

Market Price means:

 

(a)                                  in relation to the allocation of
Shares acquired in On-Market Acquisitions, the average price per Share (rounded
to the nearest whole cent, with one-half of one cent being rounded down) of all
Shares so acquired by the Plan Company for the purposes of making that
allocation to each of the relevant Participants; and

 

(b)                                 in relation to the allocation of
Shares that have been or are to be acquired by way of allotment and issue by
the Bank to the Plan Company for the purposes of making that allocation to each
relevant Participant, the weighted average market price per Share of all Shares
traded on the ASX during the one week period up to and including the day before
the day on which the Shares are allocated to that Participant in accordance
with clause 9.  The Board may exercise a
discretion to include or exclude particular transactions from this calculation
(e.g. “specials”) as it thinks fit.  If
no Shares are traded on the ASX during that one week period, the price as
determined by the Board.

 

On-Market Acquisition means the acquisition of Shares in
the ordinary course of trading or otherwise on a Trading Day on the ASX.

 

Participant means:

 

(a)                                  an Eligible Employee who returns a
duly completed Application Form in accordance with clause 5(a);

 

(b)                                 the legal personal representative of
that Eligible Employee where that legal personal representative, having
satisfied the requirements of the Constitution, is the shareholder named in the
Bank’s register of members; or

 

(c)                                  if, because of the Bankruptcy Act
1966 (Cth) or equivalent legislation in any other jurisdiction, Shares (or any
interests in Shares) held under the Plan that form part of the property of an
Eligible Employee vest in the trustee of that Eligible Employee’s estate, that
trustee, whether or not the name of that trustee had been entered in the Bank’s
register of members.

 

Plan means the Westpac Banking Corporation Deferral Share Plan.

 

Plan Company means Employee Share Plan Pty
Limited (ABN 93 068 131 260)  or such other person nominated from time
to time by the Board.

 

Release Request means a duly completed request
executed by a Participant in a form approved by the Board from time to time,
for permission from the Board to have released from a Holding Lock all or a
specified number (being not less than a Minimum Parcel) of Shares held by that
Participant under the Plan.

 

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

 

Sacrificed Amount means, in relation to each
Participant, the amount foregone by that Participant by way of salary sacrifice
of future gross remuneration, prospective bonus or prospective individual recognition
award or any one or more of them in accordance with clause 4.2.

 

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

 

3

 

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

 

Surplus Amount means, on each occasion Shares are
acquired under the Plan on behalf of a Participant, the amount by which the
aggregate of an amount equal to the Sacrificed Amounts attributable to that
Participant (and not previously utilised in acquiring Shares under the Plan on
behalf of that Participant) and any amount retained by the Bank in respect of
that Participant pursuant to clause 8.3(c) exceeds the cost (inclusive of
brokerage, Taxes and all other costs and expenses allocated to that Participant
pursuant to a determination made under clause 19.3) of acquiring those Shares
on behalf of that Participant.

 

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

 

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

 

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

 

Unallocated Shares means Shares acquired by the Plan
Company at any time:

 

(a)                                      under clause 8.3(a) for the purposes
of the Plan which have not been allocated to Participants under clause 9.1; and

 

(b)                                     under clause 9.5..

 

Year of Income means a period of 12 months ending on 30 June in any year and
including the period commencing on the date of commencement of this Plan and
terminating on the next 30 June and the period ending on the date of
termination of the Plan and commencing on the preceding 1 July or any other
period determined by the Board in its discretion.

 

3.                                     Interpretation

 

In this document unless the contrary intention appears:

 

(a)                                  a gender includes all genders;

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

4.                                     Invitation to acquire Shares

 

4.1                              Issue

 

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

 

4.2                              Request for remuneration
preference

 

The Board may,
in the Invitation, request an Eligible Employee to provide to the Board
information relating to the Eligible Employee’s remuneration preference for a
period specified by the Board, for the purposes of this Plan, including but not
limited to the following matters:

 

(a)                                  the percentage or amount of the Eligible Employee’s future gross
remuneration (as determined by the Board from time to time) which he or she
wishes to be provided in the form of Shares under the Plan; and

 

(b)                                 the percentage of any prospective bonus or prospective individual
recognition award of the Eligible Employee which he or she wishes to be
provided in the form of Shares under the Plan.

 

4.3                              Discretion as to amount
and value of Shares

 

The Board has
absolute discretion, in relation to an Eligible Employee who has provided his
or her remuneration preference in accordance with clause 4.2, in determining:

 

(a)                                  the percentage or amount (if any) of the Eligible Employee’s future
gross remuneration (as determined by the Board from time to time), prospective
bonus and /or prospective individual recognition award which may be the subject
of an Invitation to acquire Shares under the Plan, up to the maximum percentage
or amount notified by the Eligible Employee under clause 4.2; and

 

(b)                                 how Shares to be acquired under the Plan will be valued, whether
based on the Market Price or other value determined by the Board in its
discretion (which may include any brokerage, commission, Taxes or other
transaction costs), for the purpose of determining the formula to be included
in an Invitation to be made to the Eligible Employee.

 

5

 

4.4                              Form of
Invitation

 

(a)                                  An Invitation may take any form
determined by the Board from time to time and must specify or include the
following information:

 

(i)                                    the date of the Invitation;

 

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

 

(iii)                              the maximum amount (or formula for
calculating the maximum amount) that may be the Sacrificed Amount and the
formula for calculating the number of Shares which the Eligible Employee is invited
to apply;

 

(iv)                             the Disposal Restrictions which will
attach to the Shares acquired by the Eligible Employee;

 

(v)                                the time period in which to make an
Application in respect of the Invitation; and

 

(vi)                             any other material terms and
conditions required by any Law and any relevant Class Order and any other terms
and conditions applicable to the Invitation including the requirement that the
Eligible Employee must continue to be and remain an Eligible Employee on the
date that Shares are allocated under clause 9.

 

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

 

5.                                     Application for Shares

 

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

 

(b)                                 If, on returning the duly completed
Application Form in accordance with paragraph (a) of this clause 5, the
Eligible Employee’s employment or appointment with the Bank has not ceased, he
or she:

 

(i)                                    becomes a Participant;

 

(ii)                                 offers to acquire Shares under the
Plan in accordance with the terms of the Invitation, and

 

(iii)                              agrees to be bound by the Rules.

 

6.                                     Right to discontinue

 

(a)                                  A Participant may, at any time, by notice in writing to the Bank,
elect to discontinue his or her participation in the Plan in respect of the
remuneration preference provided to the Bank under clause 4.2(a).  Each such notice shall take effect 14 days
after its receipt by the Bank.

 

6

 

(b)                                 A Participant may not discontinue his or her participation in the
Plan in respect of the remuneration preference provided to the Bank under
clause 4.2(b).

 

(c)                                  If on the date on which a notice under clause (a) takes effect, an
unutilised Surplus Amount is being held by the Bank on behalf of that
Participant, the Bank shall pay that amount (after deducting any necessary
Tax)  to that Participant.

 

7.                                     Methods of Share Acquisition

 

Shares may be acquired for the purposes of the Plan:

 

(a)                                  by way of allotment and issue of Shares by the Bank to the
Participant; or

 

(b)                                 by the Plan Company making an On-Market Acquisition.

 

8.                                     Acquisition of Shares by the Plan Company

 

8.1                              Directions by the Board

 

Subject to
these Rules, the
Listing Rules, the Constitution and any relevant Law to the contrary, the Plan
Company must comply with any direction given to it by the Board as to the
operation of the Plan.

 

8.2                              Payment of contributions

 

Any Group Company may pay to the Plan Company contributions as
determined by the Board from time to time, by reference to the Sacrificed
Amount for each Participant from that Group Company, to be used for the
purposes of the Plan.

 

8.3                              Use of contributions

 

(a)                                  Upon receipt of contributions from a
Group Company, the Plan Company must use such contributions to acquire Shares
(and to meet any brokerage and Taxes allocated to Participants under clause
19.3) for Participants within a reasonable period (to be determined by the
Board).

 

(b)                                 Pending the payment of contributions
to the Plan Company for the purposes of acquiring Shares in respect of a
Participant, the Bank shall ensure that an amount equal to the amount required
for the acquisition of Shares is held in a trust account (Trust Account) conducted by the Bank with
itself or with some other Australian ADI solely for the purposes of the
Plan.  Moneys deposited in that account
shall not earn any interest.

 

(c)                                  The Surplus Amount in respect of
each Participant shall be retained by the Bank in the Trust Account and shall
be:

 

(i)                                    added to future Sacrificed Amounts
of that Participant and utilised in acquiring Shares on behalf of that Participant
pursuant to this clause 8.3, provided that the Surplus Amount arose as a result
of a remuneration preference under clause 4.2(a), or

 

7

 

(ii)                                 paid (after deducting any necessary
Tax) to that Participant, provided that the Surplus Amount arose as a result of
a remuneration preference under clause 4.2(b).

 

(d)                                 Any money held by the Plan Company at the end of a Year of Income
shall be applied by the Plan Company, if so directed by the Board, in whole or
in part for the benefit of:

 

(i)                                    the Bank; or

 

(ii)                                 one or more of the following beneficiaries as nominated by the
Board:

 

(A)                             a provident, superannuation or retirement fund established and
maintained by any Group Company for the benefit of all or any Employees;

 

(B)                               an employee share or option trust established and maintained by any
Group Company for the benefit of all or any Employees;

 

(C)                               a trust established and maintained by any Group Company for the
benefit of all or any Employees; or

 

(D)                              any Charity.

 

9.                                     Allocation of Shares

 

9.1                              Bank’s action

 

(a)                                  No Participant may be allocated more
Shares than the number of Shares stated in, or determined in accordance with
the formula stated in the relevant Invitation.

 

(b)                                 Where the number of Shares to be
allocated under paragraph (a) of this clause 9.1 is not a whole number, the
number shall be rounded down to the nearest whole number.

 

9.2                              Registered
holder

 

Shares acquired pursuant to an
Invitation are to be registered in the name of the Participant.

 

9.3                              Identification
of funds

 

The Plan Company is not
required to identify any Shares it purchases under the Plan with any particular
funds it receives from any Group Company in respect of any Participant, but
must allocate the Shares purchased among the relevant Participants as
determined by the Board.

 

9.4                              Non-acceptance
of Application

 

(a)                                  In the event that the Bank does not, under clause 9.1(a), allocate
Shares to a Participant, the Bank shall:

 

8

 

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

 

(ii)                                 pay to that Participant an amount equal to the Sacrificed Amount
(after deducting any necessary Taxes); and

 

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

 

(b)                                 If paragraph (a) of this clause 9.4 applies to a Participant, the
Invitation to that Participant, and the Application by that Participant in
relation to that Invitation, shall be deemed never to have been made.

 

9.5                              Error in Allocation

 

If any Share is allocated under this Plan in error or by mistake to a
person (the Mistaken Recipient)
who is not the intended recipient of that Share, the Mistaken Recipient shall
have no right or interest, and shall be taken never to have had any right or
interest, in that Share and shall hold that Share absolutely for the account of
the Plan Company (the Beneficiary).  If
directed by the Plan Company to do so, the Mistaken Recipient must as soon as
practicable (and in any event within 10 Business Days of being so requested)
transfer that share of the Mistaken Recipient in that Share to the
Beneficiary.  Each Participant
irrevocably appoints each officer of the Plan Company as the attorney of the
Participant to execute and deliver any instrument of transfer or other document
necessary or desirable to effect such a transfer from the Mistaken Recipient to
the Beneficiary, and the Beneficiary shall hold such Shares solely for the
purposes of the Plan.

 

9.6                              Unallocated Shares

 

If, after
allocating Shares to Participants under clause 9.1, there remains Unallocated
Shares, the Plan Company shall, if so directed by the Board:

 

(a)                                  allocate those Unallocated Shares to one or more Eligible Employees
as nominated by the Board from time to time; 
or

 

(b)                                 sell those Unallocated Shares and distribute the net sale proceeds
to the Bank;  or

 

(c)                                  (i)            transfer those
Unallocated Shares;

 

(ii)                                 sell those Unallocated Shares and distribute the net sale
proceeds;  or

 

(iii)                              undertake any combination of paragraph (i) or paragraph (ii),

 

to one or more of the following
beneficiaries as nominated by the Board:

 

(iv)                             a provident, superannuation or retirement fund established and
maintained by any Group Company for the benefit of all or any Employees;

 

(v)                                an employee share or option plan, scheme or trust established and
maintained by any Group Company for the benefit of all or any Employees;

 

(vi)                             a plan, scheme or trust established and maintained by any Group
Company for the benefit of all or any Employees;  or

 

(vii)                          any Charity;  or

 

(d)                                 undertake any combination of paragraphs (a), (b) and (c).

 

9

 

10.                              Forfeiture of Shares

 

10.1                       Breach, Fraud or
Dishonesty

 

Unless the
Board determines otherwise, a Participant forfeits any right or interest in
Shares held by that Participant at that time under the Plan subject to a
Holding Lock if, in the opinion of the Board, the Participant has acted
fraudulently or dishonestly or is in material breach of his or her obligations
to any Group Company.

 

10.2                       Forfeiture Mechanism

 

Unless the Board determines otherwise, any Shares or
right or interest in Shares forfeited by a Participant under this clause 10
will, upon forfeiture, be transferred by the Plan Company on behalf of that
Participant to one or more Eligible Employees as nominated by the Board from
time or, if so directed by the Board, the Plan Company shall:

 

(a)                                  sell those Shares and distribute the net sale proceeds to the
Bank;  or

 

(b)                                 (i)            transfer those
Shares;

 

(ii)                                 sell those Shares and distribute the net sale proceeds;  or

 

(iii)                              undertake any combination of paragraph (i) or paragraph (ii),

 

to one or more of the following
beneficiaries as nominated by the Board:

 

(iv)                             a provident, superannuation or retirement fund established and
maintained by any Group Company for the benefit of all or any Employees;

 

(v)                                an employee plan, scheme or trust established and maintained by any
Group Company for the benefit of all or any Employees;

 

(vi)                             a plan, scheme or trust established and maintained by any Group
Company for the benefit of all or any Employees;  or

 

(vii)                          any Charity;  or

 

(c)                                  undertake any combination of paragraphs (a) and (b).

 

The Plan Company may in its absolute
discretion pay to that Participant the sum of $1.00 for all the Shares
forfeited under this clause.  Each
Participant irrevocably appoints each officer of the Plan Company as the
attorney of the Participant to execute and deliver any instrument of transfer
or other document necessary or desirable to effect any transfer on behalf of
the Participant under this clause.

 

11.                              Restrictions on dealing with
Shares

 

11.1                       Application of Holding Lock

 

A Holding Lock
will be applied by the Bank to all Shares held by a Participant under the Plan
for the duration of the Holding Lock Period and the Participant:

 

(a)                                  agrees that the Shares so held by the Participant will be subject to
a Holding Lock for the duration of the Holding Lock Period; and

 

10

 

(b)                                 undertakes not to make a Release Request (or permit or authorise
another person to do so) if the Participant has not held the Shares under the
Plan for at least 12 months, unless that Release Request is made on the grounds
of hardship suffered or being suffered by the Participant.

 

The Board has an absolute discretion as to whether or
not a Release Request made by a Participant will be approved and any such
approval may be granted subject to one or more conditions.

 

11.2                       Holding Lock restrictions

 

While subject to a Holding Lock, Shares acquired and
held under the Plan by or for the benefit of a Participant cannot be
transferred by the Participant and the Participant must not grant (or purport
to grant) any Security Interest in or over or otherwise dispose of or deal with
(or purport to otherwise dispose or deal with) any Shares acquired under the
Plan or any interest in any Shares acquired under the Plan held by the
Participant.

 

11.3                       Enforcement by Board

 

The Board
shall be entitled to prescribe, take and enforce such action, steps or arrangements
as it considers necessary, desirable or appropriate to enforce or give further
effect to the provisions of clauses 11.1 and 11.2 so as to ensure the Disposal
Restrictions are satisfied.

 

11.4                       Release
Request

 

A Participant shall be entitled to submit a Release
Request to the Board in respect of that Participant’s Shares at any time
either:

 

(a)                                  after the first anniversary of the
Acquisition Date; or

 

(b)                                 prior to the
first anniversary of the Acquisition Date only if the Release Request has been
made by that Participant on the grounds of hardship suffered or being suffered
by that Participant.

 

11.5                       Release from Holding Lock

 

If a Release Request by a Participant is approved by
the Board under clause 11.1, the Board shall release those Shares from the Holding
Lock within a reasonable period from the date of receipt of the Release Request
and remove those Shares from the Plan.

 

At any time
after the first anniversary of the Acquisition Date of a Participant’s Shares,
the Board shall be entitled to approve the release of those Shares from the
Holding Lock, without having received a Release Request from that Participant,
and remove those Shares from the Plan.

 

11

 

12.                              Rights attaching to Shares

 

12.1                       Ranking and Listing

 

(a)                                  A Participant is entitled to receive any dividend or other
distributions paid or made on Shares held by that Participant under the
Plan.  This applies notwithstanding the
application of a Holding Lock.

 

(b)                                 If Shares are allotted under this Plan, they will, from the date of
allotment, rank equally with all other issued Shares.  The Bank will apply for official quotation of these Shares on
each stock exchange on which Shares are quoted.

 

12.2                       Voting rights

 

A Participant
may exercise any voting rights attaching to the Shares held by that Participant
under the Plan, or may appoint a proxy to represent and vote for him or her, at
any meeting of the members of the Bank. 
This applies notwithstanding the application of a Holding Lock.

 

12.3                       Bonus Shares

 

(a)                                  Any Bonus Shares in respect of Shares (the Original Shares) that, at the closing date
for determining entitlements to those Bonus Shares, are allocated to that
Participant under the Plan and registered in the name of that Participant,
shall also be held by that Participant under the Plan and be subject to a
Holding Lock.

 

(b)                                 Bonus Shares shall be deemed to be subject to the same Disposal
Restrictions for the purposes of this Deed as if they were the Original Shares.

 

(c)                                  The Plan Company will not sell the Bonus Shares or transfer them to
the Participant unless the Plan Company sells or transfers the Original Shares.

 

12.4                       Rights Issues

 

A Participant
is entitled to:

 

(a)                                  participate in any pro rata rights issue of Shares made to existing
Shareholders by the Bank in respect of Shares held under the Plan; and

 

(b)                                 sell any renounceable rights acquired in respect of Shares held by
the Participant under the Plan.

 

13.                              Commencement and termination

 

13.1                       Commencement

 

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

 

13.2                       Termination
and Suspension

 

The Board may terminate or suspend the operation of the Plan at any time
by resolution of the Board, provided that in the case of termination all Shares
then subject to a Holding Lock shall be released from the Holding Lock on the
date of termination or on such other date specified in that resolution.

 

12

 

14.                              Administration of the Plan

 

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

 

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

 

(i)                                    give directions to any one or more persons appointed under paragraph
(a) of this clause 14 as to the manner of the exercise of any discretions under
these Rules or the Plan; and

 

(ii)                                 amend any of those directions,

 

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

 

(c)                                  The Board shall have power to:

 

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

 

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

 

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

 

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

 

15.                              Amendment of the Plan

 

15.1                       By the Board

 

Subject to
clause 15.2, the Board may at any time and from time to time by resolution:

 

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

 

(b)                                 formulate (and subsequently amend) special terms and conditions, in
addition to those set out in these Rules, to apply to Eligible Participants
employed in, resident in, or who are citizens of, countries other than
Australia.  Each of such sets of special
terms and conditions shall be restricted in its application to those Eligible
Participants employed in, resident in, or who are citizens of the foreign
country or countries specified by the Board, and may be revoked, added to or
varied under paragraph (a) of this clause 15.1.

 

13

 

15.2                       Listing Rules

 

The Board’s
exercise of its powers under clause 15.1 is subject to any restrictions or
procedural requirements relating to the amendment of the rules of an employee
incentive scheme imposed by the Listing Rules and applicable to the Plan or the
Shares, as the case may be, unless those restrictions or requirements are relaxed
or waived by the ASX or any of its delegates either generally or in a
particular case or class of cases and either expressly or by implication.

 

16.                              Issue limitations

 

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

 

(b)                                 Shares may not be offered under the
Plan to an Eligible Employee to the extent that, immediately following
acceptance of the Shares, either the Eligible Employee would hold a legal or
beneficial interest in more than five percent (5%) of the Shares or would be in
a position to cast, or control the casting of, more than five percent (5%) of
the maximum number of votes that might be cast at a general meeting of the
Bank.

 

17.                              Law, Listing Rules and the Constitution

 

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

 

18.                              Rights of Participants

 

Nothing in
these Rules:

 

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

 

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

 

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

 

(d)                                 may be used to increase damages in
any action brought against any Group Company in respect of any such
termination; or

 

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

 

14

 

19.                              General

 

19.1                       Advice

 

Eligible
Employees should obtain their own independent advice on the financial, taxation
and other consequences to them of or relating to participation in the Plan, the
acquisition of Shares under the Plan and the subsequent disposal of those
Shares.

 

19.2                       Relation of the
Bank, Plan Company and Participants

 

(a)                                  The Plan Company acts as principal in the operation of the Plan and
not as an agent of the Bank or of Participants.

 

(b)                                 In receiving contributions under clause 8.3(b) and when acquiring or
arranging for the issue of Shares and when acquiring and dealing with
Unallocated Shares, but not otherwise, the Plan Company acts as trustee for the
relevant Participant until such time as those Shares have been acquired,
allocated to that Participant and registered in that Participant’s name.  All other fiduciary obligations and duties
of the Plan Company to any Participant that might otherwise be implied or
imposed by law or equity are expressly excluded to the extent permitted by law,
including without limitation any such obligation or duty arising under any
statute.

 

(c)                                  The Plan Company is not a trustee for the Bank or, except as
provided by paragraph (b) of this clause 19.2, any Participant.

 

19.3                       Costs and Expenses

 

With the exception of brokerage and Taxes that may be
levied on the Plan Company in respect of the purchase of Shares on behalf of a
Participant under this Plan, a Participant will not be liable for any costs
incurred by the Plan Company in connection with the implementation and
administration of the Plan unless the Board in its discretion determines
otherwise.  If the Board so determines,
the Board must inform the Participant prior to allocating any such expense to a
Participant.

 

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

 

19.4                       Dispute

 

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

 

19.5                       Notices

 

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

 

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

 

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

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

(d)                                 in the case of any Application Form or a Release Request, that
application or request will not be taken to have been received by or on behalf
of the Bank until it is actually received by the Bank at the address nominated
from time to time by the Board.

 

19.6                       Governing
Law

 

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

 

16

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