Document:

The Telecom Share Rights Scheme - 2007

			
	

	 	“Exhibit 4.5”

  

 THE TELECOM SHARE RIGHTS SCHEME - 2007 

 TELECOM SHARE RIGHTS SCHEME 
 TABLE OF CONTENTS 
  

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

 Date: 2 August 2007 
 PART I - PRELIMINARY AND INTERPRETATION 
  

	1	Preliminary 

  

	1.1	This is the Telecom Share Rights Scheme 2007. 

  

	1.2	This document applies to grants to Executives made after 2 August 2007. 

  

	2	Interpretation 

  

	2.1	In this document unless the context otherwise requires: 

 Board means the board of directors of Telecom from time to time 
 Bonus Issue means any distribution or
allocation of securities or other benefits (other than cash) to Shareholders for which Shareholders are not to provide consideration 
 Breach means a breach of Telecom’s Constitution, the listing and/or other rules governing the Exchange or any other stock exchange on which Shares are quoted, and/or any statute, regulation or Telecom’s internal
procedures for insiders 
 Business Day means a day on which the Exchange is open for trading 
 Business Sale means, in respect of an Executive: 
  

	 	(a)	the Subsidiary by which that Executive is employed is disposed of to a person not a member of the Group; or 

  

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

 Capital Change means a Rights Offer, Bonus Issue, Capital Return, or
any other reconstruction of, or adjustment to, the capital or capital structure of Telecom of any nature 
 Capital Return means
any payment of cash to Shareholders which is, or is to be, accompanied by a reduction in the number of Shares, or the proportion of economic interest in Telecom, held by Shareholders to which the Capital Return applies 
 Commencement Date means the date from and including which an Executive is entitled to participate in the Scheme, specified in the Grant

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

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

  

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

  

 1 

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

 Dividend means a payment of cash in respect of Shares which is not a Capital Return 
 Employment means employment by Telecom or a Subsidiary 
 Event has the meaning in clause 12 
 Exchange means New Zealand Exchange
Limited’s NZSX 
 Excluded Options means at any date (subject to clause 10.3) Options: 
  

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

  

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

 Executive means an executive who is Employed 
 Exercise Date means the first Business Day after the
expiration of the period, specified in a Grant, after which options may be exercised 
 Exercise Notice means notice of the
exercise of an Option 
 Exercise Price means nil 
 Fundamental Change means the occurrence of one of the following events: 
  

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

  

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

 if (but only if) the Board determines that as a result of the occurrence of that event Options held by the Executives should
become exercisable 
 Grant means the grant of an Option 
 Group means Telecom and its subsidiaries 
 Option means an option to acquire a Share pursuant to the Scheme 
 Option Lapse
Date means the first Business Day after the expiration of the period, specified in a Grant, after which Options are to lapse 
 Redundancy means the termination of Employment of an Executive by reason of that Executive’s position becoming surplus to the Group’s requirements, or any other involuntary termination of an Executive’s
Employment which the Board in its discretion determines constitutes redundancy, but does not include termination of Employment in the course of a Business Sale 
 Rights Offer means any offer of securities or benefits to Shareholders for which Shareholders are to provide consideration 
 Scheme means the Telecom Share Rights Scheme 2007 

 Share means an ordinary share in Telecom 
 Shareholder means a holder of a Share 
 Subsidiary means a subsidiary of Telecom 
 Telecom means Telecom Corporation of New Zealand Limited.

  

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

  

	2.3	In this document: 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

 PART II - OPERATION OF THE SCHEME 
  

	3	Grants 

  

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

  

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

  

	 	(b)	enclose a copy of the Scheme; 

  

	 	(c)	specify the Commencement Date, the Exercise Price and the periods of years after which the Exercise Date and the Option Lapse Date fall; 

  

	 	(d)	enclose an Options certificate; and 

  

	 	(e)	specify the period during which the Executive may reject the Grant. 

  

	4	Rejection Of Grant 

  

	4.1	Opportunity 

 An Executive may reject a Grant by
giving the Board notice, and returning to the Board the Options certificate, within 40 Business Days after the Grant. If an Executive rejects a Grant, the Options the subject of that Grant will lapse immediately. 
  

	4.2	Acknowledgement 

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

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

  

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

  

	5	Exercise of Options 

  

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

  

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

  

	 	(b)	the Option has lapsed. 

	6	Procedure for Exercise and Lapse 

  

	6.1	Exercise Notice 

 An Executive may, as the
Executive sees fit from time to time (subject to clause 7), exercise part or all of that Executive’s Options (subject to any minimum number or multiple of a number of Options prescribed by the Board from time to time), by giving the Board an
Exercise Notice. 
  

	6.2	Payment 

 Any Exercise Notice must be accompanied
by: 
  

	 	(a)	the Options certificate; and 

  

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

  

	6.3	Issue 

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

	 	(a)	an Exercise Notice; 

  

	 	(b)	an Options certificate; and 

  

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

 in accordance with this clause, Telecom will issue to the Executive Shares, unless clause 5 precludes the exercise of Options (if so, the Board will give
notice to the Participant accordingly and return the Options certificate). 
  

	6.4	Board Notice 

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

	6.5	Effective Exercise 

 Subject to clause 6.6, the
Exercise Notice of an Executive precluded (pursuant to clause 5.1(a)) from exercising an Option will take effect 10 Business Days after the date on which the Board gives its notice pursuant to clause 6.4, if the Executive: 
  

	 	(a)	surrenders the Options certificate; and 

  

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

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

	6.6	Continued Breach 

 If the exercise of Options
pursuant to clause 6.5 would give rise to a Breach, the Board will proceed as if an Exercise Notice had been given pursuant to clause 6.1. 
  

	6.7	Breach 

 If, after the period of six months from the
date on which it first gives notice pursuant to clause 6.3, the Board considers that it is still unable to give notice in respect of an Option pursuant to clause 6.4 and/or the exercise of Options pursuant to clause 6.5 would give rise to a Breach,
then Telecom is in default under the Scheme. Where Telecom is in default under this clause, the Executive and Telecom acknowledge and agree the following: 
  

	 	(a)	Telecom must pay the Executive liquidated damages in the sum equal to the volume weighted average market price of Shares on the Exchange for the Business Days in the month
immediately preceding the date of the Exercise Notice given by the Executive pursuant to clause 6.1, within ten Business Days; and 

  

	 	(b)	that the amount payable under clause 6.7(a) is a genuine pre-estimate of the damages the Executive is likely to suffer as a result of the default; 

  

	 	(c)	that on payment of the amount under clause 6.7(a), all rights that Executive has to specific performance, compensation for breach, loss or damages, or any other remedy are waived
and/or extinguished and the Executive’s Options will lapse immediately. 

  

	6.8	Option Lapse Date 

 Each Option lapses, and ceases
to be exercisable, on the Option Lapse Date of that Option. 
  

	7	Rights on Exercise 

  

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

 PART III - TERMINATION OF EMPLOYMENT 
  

	8	Termination of Employment 

 Cessation of
Employment 
  

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

 Redundancy, etc 
  

	8.2	If an Executive’s cessation of Employment: 

  

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

  

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

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

					
	 number of Options = number of Specified Options x
	 	 N
	  	
		 	T	  	

 Where: 
  

	 	N	is the number of days from the Grant of the Specified Options to the date the Executive ceases employment 

  

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

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

 PART IV - CORPORATE EVENTS 
  

	9	Application of clause 10 

  

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

  

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

  

	 	(b)	on the occurrence of a Fundamental Change, in respect of all Executives and in respect of all Options; 

  

	 	(c)	on the occurrence of a Business Sale, in respect of Executives to which the definition of that term applies and in respect of all Options held by those Executives.

  

	10	Early Exercise 

  

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

  

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

  

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

  

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

  

	 	(b)	the Options shall lapse on the date one month after the Exercise Date so fixed. 

  

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

  

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

  

	11	Capital Changes 

  

	11.1	If before the exercise of Options: 

 (a)

	 	(i)	a Rights Offer occurs; and 

  

	 	(ii)	Shareholders are able to sell their rights under that Rights Offer for consideration, 

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

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

  

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

  

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

  

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

  

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

  

	12	Other Adjustment 

  

	12.1	If: 

  

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

 

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

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

 PART V - GENERAL 
  

	13	No Divestment 

  

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

  

	14	Administration of Scheme 

  

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

  

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

  

	 	(b)	the interpretation of this document; 

  

	 	(c)	any other matter touching upon the Scheme, 

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

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

  

	 	(a)	whether a Fundamental Change has occurred; and 

  

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

  

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

  

	15	Amendment 

  

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

  

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

  

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

  

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

  

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

	 	(c)	terminate the Scheme. 

  

	15.2	Telecom: 

  

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

  

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

  

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

  

	16	Miscellaneous 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

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

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

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

  

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

 The Scheme will be governed by and construed in accordance with New Zealand law.New (Dr Reynolds) Chief Executive's Employment Agreement

 “Exhibit 4.8” 
 

 
 27 June 2007 
 Mr Paul
Reynolds 
 Dear Paul 
 OFFER OF EMPLOYMENT 
 I am delighted to offer you employment with Telecom as the Chief Executive Officer. This offer is conditional on you obtaining the correct work visa and permit.

 In addition to the terms and conditions set out in the Employment Agreement, you will also be entitled to the following benefits: 
  

	•	 	 Legal and accounting fees incurred in relation to obtaining advice on the Employment Agreement up to a maximum of $20,000; 

  

	•	 	 Taxation advice for the first 2 years of employment up to a maximum of $6,000 per annum; 

  

	•	 	 Up to 10 business class flights per year between New Zealand and the UK for use by you and your immediate family during the first three years of your employment;

  

	•	 	 All reasonable relocation expenses incurred by you and your immediate family in relocating from the UK to New Zealand. Relocation expenses need to be approved in
advance by the Company in line with standard policy; 

  

	•	 	 If Telecom terminates your employment on notice or you terminate your employment due to a “fundamental change” (refer Employment Agreement) within 3 years
of your commencing employment then Telecom will reimburse all reasonable relocation expenses incurred by you and your immediate family should you choose to relocate to the UK within 6 months of termination. Relocation expenses need to be approved in
advance by the Company in line with standard policy; 

  

	•	 	 Reimbursement of personal accommodation costs up to $100,000 per annum for the first two years of employment. This will be reviewable at the end of this two year
period. 

 As provided for in the Employment Agreement you will participate in an Annual Performance Incentive (API) and a Long Term
Incentive (LTI). Further details of the API and LTI schemes will be determined and documented by Telecom in appropriate scheme rules. All proposed issues of equity are subject to shareholder and regulatory approval. If any such approval is not
forthcoming then each right/entitlement would be paid in cash at the equivalent value but subject to the same terms and conditions to which any equity would have been subject. The cash equivalent would be payable at the same time as any
rights/entitlements in respect of equity would have vested. 

 A summary of the key design features of each of the schemes is as follows: 
 Annual Performance Incentive 
 Scheme summary

 An API will be paid based on performance objectives set by the Board annually in consultation with the Executive. Those performance objectives will
be set in a way that is fair to you in all the circumstances including taking into account both financial and non-financial criteria as well as the extent to which you have the power to influence the performance objectives. The API awarded, if any,
will be determined by the Board based on Telecom and CEO performance against annual performance targets. Over-achievement of the targets may result in a maximum payment up to 175% of the target value. 
 An API award will be delivered 60% in cash and 40% in restricted shares (subject to shareholder approval) following the end of the financial year. The number of
restricted shares to be awarded will be determined by dividing the after tax value of 40% of the award by the average closing share price for the 20 trading days prior to the date of issue. Shares granted will be restricted from sale or disposal for
three years from grant, but will transfer to the benefit of the Executive on termination date if Telecom terminates employment on notice or employment is terminated by you following a “fundamental change”. Dividends will be payable on
these restricted shares. 
 The actual performance measures for the 2007/08 API will be set by the Board in consultation with you by 30 September 2007.
The measures will reflect the financial and non-financial performance objectives for the financial year and are likely to include EBITDA, capex, regulatory outcomes, transformation objectives and NZ & Australian business performance.

 Long-term incentive 
 Scheme summary 

 LTI will be delivered initially as a grant of performance share rights with a zero-exercise price, subject to the approval of shareholders. 
 Allocation 
 The number of share rights issued will be calculated by
dividing the LTI amount by the average closing share price for the 20 trading days prior to the effective date of the issue. The initial effective date will be the commencement date. Subsequent grants will be made in September each year. 

Vesting Periods 
 For the initial grant of LTI only, one-third of
the share rights will be eligible for vesting after 1 year, another one-third will be eligible for vesting after two years and the final one-third of the share rights will be eligible for vesting after three years. Subsequent grants of share rights
are expected to be eligible for vesting after three years. 
 Vesting Conditions 
 The ability to vest any of the share rights and the number of share rights that will vest following the end of the
vesting period is dependent on achievement of the performance hurdles. Unvested share rights will automatically lapse. No value will accrue to you unless Telecom’s Total Shareholder Return (TSR) meets the 50th percentile of a peer comparator group at the end of the restricted period. If on 

 
the vesting date Telecom TSR performance is equal to the 50th percentile of the comparator group then half the performance rights in a tranche become
exercisable, increasing on a straight line basis such that all performance rights in a tranche may be exercised if Telecom TSR is at or above the 75th
percentile of the TSR of the comparator group. 
 In assessing whether the performance hurdles for each grant have been met, Telecom will obtain
independent data from external advisors to provide both Telecom’s TSR growth from the commencement of each grant and that of the comparator group companies. Telecom’s performance against the hurdle will then be determined by ranking each
company in the peer group and Telecom in order of TSR growth from the date of issue to the date of testing for each grant. The comparator group will be determined based on advice from the external advisors. 
 Termination Conditions 
 If Telecom terminates employment on notice or
you terminate your employment following a “fundamental change” then those grants of LTI that are more than halfway through their restricted period will vest on a pro-rata basis. In all other termination situations unvested grants of LTI
will lapse. 
 Taxation (General) 
 To the extent possible, TCNZ
agrees that all cash remuneration provided to the Executive can be salary sacrificed by the Executive and, to the extent that there is any tax benefit from doing so, it shall be to the benefit of the Executive 
 TCNZ and the Executive agree that the Executive can elect to receive an amount of his cash remuneration provided for under this agreement by way of employer contribution
to a designated retirement fund(s). To the extent that the Executive does so elect, the tax cost to TCNZ, if any, shall be accurately factored into the Executive’s remuneration such that any reduced tax cost payable in relation to making such a
contribution over deriving the remuneration directly shall be to the benefit of the Executive. 
 The legal form of arrangements to be entered into by TCNZ
and the Executive in relation to implementing any benefit involving restricted shares that this is effected by means of a gross bonus payment, PAYE to be deducted and the after tax amount applied by the Executive in the purchase of the shares. To
the extent that the restricted shares do not vest, the Executive shall only be required to give back to TCNZ the relevant restricted shares (for no consideration) and to repay to TCNZ only that of the relevant PAYE payment made by TCNZ that the
Executive is able to obtain a refund from Inland Revenue (at that the time that refund is obtained). 
 Conclusion 
 You are entitled to a reasonable opportunity to seek independent advice regarding the proposed terms and conditions of your employment before signing the Agreement.

 If you wish to accept this offer of employment, then please sign both copies of the Employment Agreement and return one copy to us. You should retain the
other copy for your records. 

 If you have any questions please do not hesitate to contact us. 
 Yours sincerely 
 Wayne Boyd 
 Chairman 
 Board of Directors 
 Telecom Corporation of New Zealand 
 In executing this letter, I Paul
Reynolds agree that I have read and understood the provisions of this employment agreement. I have been advised that I am entitled to seek independent advice regarding the terms and conditions of this employment agreement and I have been given a
reasonable opportunity to do so. I hereby accept this offer of employment on the terms and conditions set out in this letter and the enclosed Employment Agreement. 
 Signed by Paul Reynolds 
 In the presence of 
  

	
	  

	 Witness

	
	  

	 Occupation

	
	  

	 Residence

 “Exhibit 4.8” 
 TELECOM CORPORATION OF NEW ZEALAND LIMITED 
 and 
 PAUL REYNOLDS 
  

EMPLOYMENT AGREEMENT 
  

 AGREEMENT dated 27th June 2007 
 PARTIES 
 Telecom Corporation of New Zealand Limited (“Company”) 
 Paul Reynolds (“Executive”) 
 AGREEMENT 
  

	1	DEFINITIONS AND INTERPRETATION 

 Definitions

 In this Agreement, unless the context otherwise requires, the following terms shall bear the following meanings: 
 “Base Remuneration” means the sum specified in Schedule A or such sum to which the Base Remuneration may be reviewed in accordance with
clause 6.3; 
 “Board” means the board of directors of Telecom Corporation of New Zealand Limited or, where applicable, any
committee of the board to which the board has delegated any of its powers; 
 “Commencement Date” means 17 September
2007 or such other date as may be agreed by the parties (which shall be no later than 30 September 2007); 
 “Financial
Year” means a period of 12 months commencing on 1 July and ending on the following 30 June or such other period as may be chosen by the Company as its financial year; 
 “Fundamental Change” means where: 
  

	 	(a)	the Executive is no longer the chief executive officer of a company listed on either the New Zealand Stock Exchange or the Australian Stock Exchange (or equivalent stock exchange
operating in either New Zealand or Australia); and 

  

	 	(b)	the terms and conditions of the Executive’s employment are materially different from those set out in this Agreement and such changes are as a result of (a) above;

 “Group” means Telecom Corporation of New Zealand Limited and all subsidiary and associated companies of
Telecom Corporation of New Zealand Limited; 
 “Initial Period “ means the period of 3 years from the Commencement Date; and

 “Restricted Period” means: 
  

	 	(a)	the greater of 12 months’ from the date of termination of the Executive’s employment (howsoever caused), or the balance of the unexpired period of the Initial Period where
the Executive’s employment is terminated by either party prior to the expiry of the Initial Period; or 

	 	(b)	one year from the date of termination of the Executive’s employment (howsoever caused) where the Executive’s employment is terminated by either party following the expiry
of the Initial Period. 

 Interpretation 
  

	1.2	In this Agreement, unless the context otherwise requires: 

  

	 	(a)	headings are for convenience only and shall not affect interpretation; 

  

	 	(b)	a reference to the Company is a reference also to the Company’s assigns or successors; 

  

	 	(c)	references to sections, clauses or schedules are references to sections, clauses and schedules in this Agreement unless otherwise specifically stated; and 

 

	 	(d)	references to “$” or “dollars” are references to the currency of New Zealand. 

  

	2.	POSITION 

  

	2.1	The Company agrees to employ the Executive and the Executive agrees to be employed in the position of Chief Executive Officer of the Company on the terms set out in this Agreement.

  

	3.	TERM 

  

	3.1	This Agreement will continue until terminated in accordance with either clause 20, 21, 22, 23 or 24. 

  

	4.	LOCATION 

  

	4.1	The Executive’s principal place of work shall be the Group’s New Zealand offices in Auckland. 

  

	4.2	Other than in the performance of his duties or for the purposes of leave the Executive shall reside in New Zealand. 

  

	5.	DUTIES 

 Responsibilities 
  

	5.1	The Executive shall diligently and conscientiously discharge his duties as Chief Executive Officer of the Company. The scope and content of the Executive’s responsibilities
shall be those usually associated in New Zealand and Australia with the position of a chief executive officer of a public listed company and as may be directed from time to time by the Board. Such responsibilities will include appointment as a
director of subsidiaries of the Company as deemed appropriate by the Board from time to time. The Company shall provide the Executive with the reasonable resources he requires in order to complete all of his duties, including provision of
facilities, competent personnel and support. 

 General obligations 
  

	5.2	The Executive shall, in carrying out his duties and responsibilities: 

  

	 	(a)	promptly and fully comply with, and carry out, all policies, rules and directions established or given by the Board; 

	 	(b)	except as expressly permitted in accordance with clause 12.1, devote the whole of his efforts exclusively to the discharge of those duties and responsibilities; and

  

	 	(c)	diligently and faithfully serve the Company, using his best endeavours to promote and protect the interests of the Company. 

 Senior management team 
  

	5.3	The responsibilities of the Executive shall include, in consultation with the Board, recruiting and maintaining, at competitive compensation levels, key executives required to
accomplish the strategies of the Company. 

 General authority 
  

	5.4	The Executive shall be empowered with the appropriate and customary authority to conduct business on behalf of the Company and, subject to any policies and financial limits on his
authority from time to time set by the Board, to commit the Company to reasonable and valid business expenditures consistent with his position. 

  

	6.	REMUNERATION 

  

	6.1	The Executive’s total remuneration for the period up to 30 June 2008 is set out in Schedule A (“Total Remuneration”) and comprises:

  

	 	(a)	Base Remuneration, 

  

	 	(b)	annual performance incentive, as set out in clause 7.1; and 

  

	 	(c)	long term incentive, as set out in clause 7.2. 

  

	6.2	Base Remuneration will be payable in regular monthly instalments in accordance with the Company’s pay cycle. Total Remuneration compensates the Executive for all work required
to perform his duties and responsibilities. The Company reserves the right to change the pay cycle. 

 Review of Total
Remuneration 
  

	6.3	The Executive’s Total Remuneration will be reviewed for the Financial Year of the Company commencing on 1 July 2008 and at the end of each Financial Year of the Company
thereafter. Any increase in the Total Remuneration will be determined by the Board at its sole discretion taking into a range of factors including individual performance and market relativities for comparative roles in Australasian companies.

 Deduction of Benefits 
  

	6.4	If the Executive elects to take any benefits offered by the Group as part of his employment with the Company (for example motor vehicle and car parking), the cost of such benefits
plus any associated fringe benefit tax will be deducted from the Base Remuneration. 

  

	7.	PERFORMANCE INCENTIVES 

 Annual Performance
Incentive 
  

	7.1	The Executive is entitled to participate in an annual performance incentive. Any payment made to the Executive will be determined annually based on the performance objectives and at
the discretion of the Board. The Board may amend or revoke the terms of the incentive at its discretion. 

 Long Term Incentive 
  

	7.2	The Executive is entitled to participate in a long term incentive. Any award or payment made to the Executive will be determined annually at the discretion of the Board. The Board
may amend or revoke the terms of the incentive at its discretion. 

  

	8.	BUSINESS TRAVEL 

  

	8.1	All travel and business expenses incurred by the Executive while carrying out the business of the Group will be reimbursed by the Company in accordance with the Company policy.

  

	9.	TELECOMMUNICATIONS AND IT SERVICES 

  

	9.1	The Executive shall be provided at the Company’s expense, with the use of a full range of the Company’s telecommunications products and services, including a mobile
telephone for the Executive, internet and facsimile services and a computer at the Executive’s home. 

  

	10.	HOURS OF WORK 

  

	10.1	The Executive shall work whatever hours (including during weekends and on statutory and other holidays) required in order to perform the Executive’s duties and
responsibilities. 

  

	11.	LEAVE 

  

	11.1	The Executive shall be entitled to six weeks’ paid annual leave (effective from the Commencement Date) in accordance with Company policy. This entitlement includes the two
traditional Company holiday days provided by the Company to its employees. 

  

	11.2	Annual leave must be taken during the year, or within 12 months following the expiry of the year, in which such entitlement arises. All annual leave will be taken at the times that
have previously been agreed with the Chairman of the Board. 

  

	11.3	The Executive may take special leave for sickness and bereavement in accordance with the Company policy which applies from time to time. 

  

	12.	OTHER BUSINESS INTERESTS 

  

	12.1	While employed by the Company the Executive may not assume other responsibilities such as directorships, shareholdings or other responsibilities involving related or unrelated
business or other interests without the prior written approval of the Chairman of the Board. 

  

	12.2	In the event that the clause is breached, the Company shall give written notice to the Executive of the action required to remedy the breach. If the breach is not remedied within 30
days of notice being given, the Company may terminate the Executive’s employment in accordance with clause 24. 

	13.	INTELLECTUAL PROPERTY OWNERSHIP 

  

	13.1	Any invention, improvement, design, process, system, customer lists, agency agreement, purchase agreement, copyright, confidential or proprietorial works, business information, and
other intellectual property created, made or discovered by the Executive during the period of the Executive’s employment by the Company (whether capable of being patented, registered or otherwise protected or created, made or discovered in the
course of the Executive’s employment and for the avoidance of doubt, includes any such material created outside of work hours, whether or not in conjunction with the Company’s resources and expertise), shall forthwith be disclosed to the
Company and shall belong to and be the absolute property of the Company and shall not be disclosed or used by the Executive for any purpose other than for the benefit of the Company. 

  

	13.2	The Executive, if and whenever required so to do (whether during or after the termination of the Executive’s employment) shall at the expense of the Company apply or join in
applying for letters patent, registration, filing or other similar protection in New Zealand or any other part of the world for such invention, improvement, design, process, system, copyright, proprietorial works, or other intellectual property
created, made or discovered and execute all instruments and do all things reasonably required by the Company for vesting the relevant letters patent or other similar protection and all rights, title and interests in and to the same reside in the
Company absolutely as sole legal and beneficial owner. 

  

	13.3	The Executive irrevocably appoints the Chairman of the Board as the Executive’s attorney with full power to act in the name and on behalf of the Executive in fulfilling all of
the obligations set out in clause 13.2 as fully and effectually as the Executive could do personally. 

  

	14.	PROTECTION OF PROPRIETARY INTERESTS 

 Confidentiality 
  

	14.1	The Executive must not, either during his employment (otherwise than in the performance of his duties) or thereafter, without the prior written consent of the Chairman of the Board,
disclose to any person (and during his employment the Executive will use his best endeavours to prevent the disclosure by him or any other person to any person) of any information concerning the interests, business or finances of the Group and/or
any employee or customer of the Group which has come to his knowledge during his employment. 

 Return of records

  

	14.2	All files, records and other documents used or prepared by the Executive during his employment are the property of the Group and must, on termination of employment or upon request
by the Company, be returned to the Company together with all copies. 

 Importance of maintaining confidentiality

  

	14.3	The importance to the Group of maintaining the confidentiality of its customers’ affairs, its own affairs, and its information resources is such that a breach of the provisions
of this clause will be regarded seriously and, in appropriate circumstances, justify summary dismissal of the Executive. 

 Restricted activities 
  

	14.4	The Executive must not, while employed and for the Restricted Period in New Zealand or Australia (or in any other country in which the Group operates in any substantial manner),
without the prior written consent of the Chairman of the Board, do any of the following: 

  

	 	(a)	encourage or persuade, or attempt to encourage or persuade, any customer or supplier of any member of the Group to terminate or restrict their trade relationship with that Group
member; or 

  

	 	(b)	solicit, or endeavour to entice away from the relevant member of the Group, any employee of any member of the Group (provided, however, that this sub-paragraph (b) shall not
apply in respect of any employee of the Group whose employment with the Group was terminated at the instigation of the employer); or 

  

	 	(c)	be directly or indirectly interested or involved (whether as an employee, independent contractor, consultant, director, shareholder, partner or in any other capacity) in a business
in the telecommunications or information services or internet sectors where any member of the Group is now or then operating and whether such interest or involvement is in or with the entity conducting the relevant business or in or with another
entity which has a direct or indirect ownership interest in the entity conducting the relevant business. 

 Restraints
reasonable 
  

	14.5	The Executive and the Company consider the restraints contained in this clause 14 to be reasonable and intend the restraints to operate to the maximum extent. If these restraints:

  

	 	(a)	are void as unreasonable for the protection of the interests of the Company and the Group; and 

  

	 	(b)	would be valid if part of the wording was deleted or the period or area or activity was reduced, 

  

	 	the	restraints will apply with the modifications necessary to make them effective. 

 Restraints independent 
  

	14.6	The restraints contained in this clause 14 are separate, distinct and several, so that the unenforceability of any restraint does not affect the enforceability of the other
restraints. 

 Acknowledgements by Executive 
  

	14.7	The Executive acknowledges that: 

  

	 	(a)	he will obtain confidential information concerning the business, clients and finances of the Group; 

  

	 	(b)	disclosure of confidential information could materially harm the Group; 

  

	 	(c)	the restrictive covenants contained in this clause are reasonable and necessary for the protection of the goodwill of the Group; 

	 	(d)	his terms of employment (including his total remuneration package) have been assessed by him as reasonable consideration for the covenants given by him in this clause 14; and

  

	 	(e)	the remedy of damages may be inadequate to protect the interests of the Group and the relevant member of the Group shall be entitled to seek and obtain injunctive relief, or any
other remedy, in any Court. 

  

	15.	HEALTH AND SAFETY 

  

	15.1	The Executive is required to comply with the Company health and safety policies, guidelines and processes, and in particular to take all practical steps to ensure his own fitness
for work and the safety of himself and others in the workplace. The Executive is required to maintain his ability to perform his duties safely and effectively. The Executive must advise the Board of any medical condition (including any
stress-related symptoms) which may impact on his ability to perform his duties safely and/or effectively. 

  

	16.	COMPANY POLICIES AND PROCEDURES 

  

	16.1	The Group has a range of policies, practices and guidelines that may apply to the Executive. These cover such diverse topics as incentive scheme rules, internet and email use,
health and safety and harassment and discrimination. 

  

	16.2	The Executive must observe and comply with all rules, codes, policies and procedures in force from time to time in the Company provided that such policies and procedures do not
conflict with, or are not inconsistent with, this Agreement. The Company may revoke or amend such policies or introduce new policies from time to time as it considers necessary to meet the operational requirements of the Company (provided that no
such change in policy shall unilaterally change any of the terms and conditions contained in this Employment Agreement). 

  

	17.	DIRECTORSHIPS 

  

	17.1	Appointment of the Executive as a director of the Company will be put to the shareholders of the Company for approval at the next Annual General Meeting of the Company.

  

	17.2	On termination of employment for any reason, the Executive shall immediately cease to hold any office which he has held as a consequence of his position, including but not limited
to any directorships which the Executive has held as a consequence of his position. 

  

	17.3	The Executive irrevocably appoints the Chairman of the Board to be his lawful attorney for the purpose of taking all steps as may be necessary or expedient to give effect to any
resignations required as a result of clause 17. 

  

	18.	INDEMNIFICATION AND INSURANCE 

 Indemnification 
  

	18.1	The Executive will become a party to the Deed of Indemnity for executives and directors of the Company which has been approved by the Board, a copy of which will be separately
provided to the Executive. 

 Insurance 
  

	18.2	The Executive shall be entitled to the benefit of the insurance arrangements which the Company currently has in place for the benefit of its directors and employees.

  

	19.	WARRANTY BY EXECUTIVE 

  

	19.1	The Executive warrants that neither the entry by him into this Agreement, nor the performance by him of his obligations under this Agreement will constitute a breach of any other
employment contract, consulting agreement or other arrangement to which he is a party. 

  

	20.	TERMINATION BY EXECUTIVE ON NOTICE 

  

	20.1	The Executive must give six months’ notice in writing to terminate his employment. 

  

	20.2	Where the Executive gives notice under clause 20.1, the Company may, at its sole discretion, pay the Executive in lieu of all or part of the notice period. Where the Company elects
to pay the Executive in lieu of notice, the Executive shall be entitled to receive Base Remuneration. 

  

	20.3	Where the Executive gives notice under clause 20.1, the Company may continue to employ the Executive under the terms and conditions set out in this Agreement, but for all or part of
the period of notice the Company may direct the Executive not to attend work, carry out the Executive’s duties under this Agreement, or participate in work related activities. During any such period the Executive will continue to receive all
remuneration and other entitlements under this Agreement for the remaining balance of the notice period and will be bound by all other terms and conditions of employment. 

  

	21.	TERMINATION BY EXECUTIVE FOR FUNDAMENTAL CHANGE 

  

	21.1	The Executive may, within three months of a Fundamental Change occurring, terminate his employment. In such circumstances the Executive shall give three months’ notice in
writing and receive the following payment: 

  

	 	(a)	where notice is given prior to the expiry of the Initial Period, an amount equal to the greater of twelve months’ Base Remuneration or Base Remuneration for the period, if any,
from the end of the notice period to the end of the Initial Period and, in either case, twelve months of the annual performance incentive (at the annual target level); or 

  

	 	(b)	where notice is given after the expiry of the Initial Period, an amount equal to twelve months’ Base Remuneration. 

  

	21.2	Where the Executive gives notice under clause 21.1, the Company may, at its sole discretion, pay the Executive in lieu of all or part of the notice period. Where the Company elects
to pay the Executive in lieu of notice, the Executive shall be entitled to receive Base Remuneration. 

  

	21.3	Where the Executive elects to terminate his employment on notice under this clause 21, the Company may continue to employ the Executive under the terms and conditions set out in
this Agreement, but for all or part of the period of notice the Company may direct the Executive not to attend work, carry out the Executive’s duties under this Agreement, or participate in work related activities. During any such period the
Executive will continue to receive all remuneration and other entitlements under this Agreement for the remaining balance of the notice period and will be bound by all other terms and conditions of employment. 

	21.4	In addition to the entitlements set out in this clause, the Board shall retain sole discretion to determine any entitlements of the Executive under the annual performance incentive
and the long term incentive, subject to the rules relating to the annual performance incentive and the long term incentive. 

  

	22.	TERMINATION BY THE COMPANY FOR DISABILITY 

  

	22.1	In the event the Executive is prevented by personal accident, death or ill health from carrying out his duties under this Agreement, either during the Initial Period or thereafter;
and 

  

	 	(a)	such incapacity continues for a period of six months, or if the Executive is so incapacitated at different times for more than a total of six months in any period of 52 consecutive
weeks; or 

  

	 	(b)	at any time, in the opinion of a medical practitioner nominated by the Company, the Executive has become permanently disabled or incapacitated, 

 the Company may, at its option, terminate the Executive’s employment immediately and pay the Executive a sum equal to 12 months’ Base
Remuneration. All other entitlements including annual performance incentive and long term incentive shall be solely at the Company’s discretion. 
  

	23.	TERMINATION BY THE COMPANY ON NOTICE 

  

	23.1	The Company may give the Executive three months’ notice in writing to terminate his employment for any or no reason. In such circumstances the Executive shall receive the
following payment: 

  

	 	(a)	where notice is given prior to the expiry of the Initial Period, an amount equal to the greater of twelve months’ Base Remuneration or Base Remuneration for the period, if any,
from the end of the notice period to the end of the Initial Period and, in either case, twelve months of the annual performance incentive (at the annual target level); or 

  

	 	(b)	where notice is given after the expiry of the Initial Period, an amount equal to twelve months’ Base Remuneration. 

  

	23.2	The Company may, at its sole discretion, pay the Executive in lieu of all or part of the notice period. Where the Company elects to pay the Executive in lieu of notice, the
Executive shall be entitled to receive Base Remuneration. 

  

	23.3	Where the Company elects to terminate the Executive’s employment on notice under this clause 23, the Company may continue to employ the Executive under the terms and conditions
set out in this Agreement, but for all or part of the period of notice the Company may direct the Executive not to attend work, carry out the Executive’s duties under this Agreement, or participate in work related activities. During any such
period the Executive will continue to receive all remuneration and other entitlements under this Agreement for the remaining balance of the notice period and will be bound by all other terms and conditions of employment. 

  

	23.4	In addition to the entitlements set out in this clause, the Board shall retain sole discretion to determine any entitlements of the Executive under the annual performance incentive
and the long term incentive, subject to the rules relating to the annual performance incentive and the long term incentive. 

	24.	TERMINATION BY THE COMPANY WITHOUT NOTICE 

  

	24.1	Notwithstanding anything in clauses 20, 21, 22 or 23 the Company may terminate the Executive’s employment either during the Initial Period or thereafter without notice if:

  

	 	(a)	the Company considers that the Executive is guilty of serious misconduct which justifies summary dismissal; or 

  

	 	(b)	the Executive commits an act of bankruptcy or compounds with his creditors. 

  

	24.2	On termination of the Executive’s employment pursuant to clause 24.1, the Company shall pay to the Executive only his Base Remuneration and accrued statutory holiday pay to the
date of termination. All other entitlements including annual performance incentive and long term incentive shall be forfeited. 

  

	25.	SUSPENSION 

  

	25.1	Where the Company considers or suspects that any situation listed in clause 24.1 applies to the Executive it may suspend the Executive, on full pay, pending an investigation into
the matter. The Executive will be entitled to comment on the results of any such investigation before a final decision is made. 

  

	26.	DEDUCTIONS 

  

	26.1	On termination of employment, or at such other times as the Company may state, the Executive consents to the Company making reasonable deductions from the Executive’s salary
(including holiday pay on termination of employment) for the value of any unreturned or damaged Group property (with due allowance for fair wear and tear), holiday pay paid in advance of entitlement or any other debt owed by the Executive to the
Company. The Company will give the Executive notice in writing of its intention to make a deduction, and in its notice it will set out the reason for the deduction, the amount that will be deducted and, if appropriate, the period of time over which
the deduction will be made. 

  

	27.	GOVERNING LAW 

  

	27.1	This Agreement shall be governed by New Zealand law. 

  

	28.	EMPLOYMENT RELATIONSHIP PROBLEMS 

  

	28.1	The parties agree that personal grievances, disputes and employment relationship problems should be resolved between the parties if at all possible. 

  

	28.2	Personal grievances and disputes that cannot be settled by agreement between the parties will be determined in accordance with the Employment Relations Act 2000. The Employee must
raise any personal grievance with the Company within 90 days of the date on which the personal grievance occurred or came to the notice of the Employee. The Employee’s attention is drawn to the explanation of services available to resolve
employment relationship problems attached as Schedule B to this agreement. 

	29.	ENTIRE CONTRACT 

  

	29.1	This Agreement together with the Executive’s Letter of Offer and all policies and other documents referred to in this Agreement (whether currently existing or established from
time to time by the Board) constitutes the entire agreement between the Company and the Executive and supersedes all previous representations, negotiations, commitments and communications either written or oral between the Company and the Executive.

  

	29.2	The Executive acknowledges in entering into this Agreement that: 

  

	 	(a)	the Executive has had the opportunity to take legal advice prior to signing it; and 

  

	 	(b)	the Executive is entering into the Agreement freely; and 

  

	 	(c)	the terms and conditions of employment set out in the contract and in particular clauses 12, 14, 16, 19, 20, 21, 22, 23 and 24 are fair and reasonable. 

 EXECUTION 
  

			
	SIGNED on behalf of TELECOM CORPORATION OF NEW ZEALAND LIMITED by its Chairman Wayne Boyd in the presence of:	  	
		  	  

		
	  
	  	
	Signature of witness	  	
	  
	  	
	Occupation	  	
	  
	  	
	City/town of residence	  	

  

			
	SIGNED by PAUL REYNOLDS in the presence of:	  	
		  	  

		
	  
	  	
	Signature of witness	  	
	  
	  	
	Occupation	  	
	  
	  	
	City/town of residence	  	

 SCHEDULE A 
 TOTAL REMUNERATION EFFECTIVE 17 SEPTEMBER 2007 
  

						
	 Total Base Remuneration
	 		  	$	1,750,000 per annum
	 Inclusive of all optional benefits and associated FBT
	  		
			
	 Annual Performance Incentive
	 	Annual Target Value	  	$	1,750,000 per annum
		 	Maximum Target Value	  	$	3,062,500 per annum
			
	 Long-term Incentive
	 	Annual Target Value	  	$	1,750,000 per annum

 SCHEDULE B 
 PLAIN ENGLISH EXPLANATION OF SERVICES AVAILABLE TO RESOLVE 
 “EMPLOYMENT RELATIONSHIP
PROBLEMS” 
 Employment relationship problems 
 If any employment relationship problem arises, the Executive should discuss the issue directly with the Chairman of the Board. The Company believes that it is in everyone’s interests if problems are addressed as
soon as possible and to this end it would like the opportunity to correct the situation. 
 An employment relationship problem includes a problem that may
exist between an employer and employee. Employment relationship problems may be: 
  

	(a)	a personal grievance; 

  

	(b)	a dispute about the application, interpretation or operation of the employment agreement; or 

  

	(c)	any other problem arising out of or relating to the employment relationship. 

 The Executive must notify the Board if he intends to pursue a personal grievance claim against the Company. This must be done within 90 days from the date of the act that caused the personal grievance. 
 If the problem is not sorted out in discussions between the Company and the Executive, it may then be referred to mediation. Mediation is provided by the Mediation
Service. To mediate an employment relationship problem, either the Company or the Executive may contact an office of the Department of Labour. 
 If the
employment relationship problem cannot be resolved in mediation, it may be referred by either party to the Employment Relations Authority. 
 If either party
is unhappy with the Authority’s decision, it may appeal to the Employment Court within 28 days of the Authority’s decision.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]