Document:

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                                                                   Exhibit 10.31

HEARTWARE LIMITED

DAVID MCINTYRE

EXECUTIVE SERVICE AGREEMENT

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                                                                               .
                                                                               .
                                                                               .

CONTENTS

<TABLE>
<S>                                                                           <C>
1.  INTERPRETATION                                                             1
    1.1   Definitions                                                          1
    1.2   Interpretation                                                       3
    1.3   Headings                                                             4

2.  EMPLOYMENT OF EXECUTIVE                                                    4
    2.1   Appointment                                                          4
    2.2   Term                                                                 4
    2.3   Warranty                                                             4

3.  LOCATION                                                                   4
    3.1   Place of employment                                                  4
    3.2   Travel                                                               4

4.  HOURS OF WORK                                                              4

5.  DUTIES                                                                     5
    5.1   General Duties                                                       5
    5.2   Specific Duties                                                      6
    5.3   Corporate Offices                                                    6
    5.4   Other employment                                                     6

6.  REMUNERATION                                                               6
    6.1   Remuneration package                                                 7
    6.2   Cash salary payments                                                 7
    6.3   Remuneration Package review                                          7
    6.4   Additional benefits                                                  7

7.  EXPENSES                                                                   8

8.  PROFESSIONAL QUALIFICATIONS AND MEMBERSHIPS                                9

9.  ANNUAL LEAVE                                                               9
    9.1   Entitlement to annual leave                                          9
    9.2   Taking annual leave                                                  9

10. SICK LEAVE                                                                 9

11. LONG SERVICE LEAVE                                                         9

12. INTELLECTUAL PROPERTY                                                      9

13. CONFIDENTIAL INFORMATION                                                  10
    13.1  Duty of confidentiality                                             10
    13.2  Use of Confidential Information                                     10
    13.3  Security of Confidential Information                                10
    13.4  Uncertainty                                                         10

14. TERMINATION                                                               10
    14.1  Termination by the Executive on notice                              10
</TABLE>

                                        i

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<TABLE>
<S>                                                                           <C>
    14.2  Termination by the Company on notice                                11
    14.3  Termination by the Company for Cause                                11
    14.4  Payment in lieu of notice                                           12
    14.5  Garden leave                                                        12
    14.6  Acceleration of Options                                             13
    14.7  Disciplinary and grievance procedures                               13
    14.8  Payment of accrued entitlements upon termination                    13
    14.9  No compensation                                                     13
    14.10 Right of set-off                                                    13

15. NON-COMPETITION                                                           14
    15.1  Non-compete                                                         14
    15.2  Construction of Non-compete clause                                  15
    15.3  Severability                                                        15
    15.4  Executive may hold shares                                           15

16. ACKNOWLEDGMENT                                                            15

17. RETURN OF PROPERTY                                                        16
    17.1  Return of property                                                  16
    17.2  Destruction of property                                             16

18. SEVERANCE                                                                 16

19. NOTICES                                                                   16
    19.1  General                                                             16
    19.2  How to give a communication                                         17
    19.3  Particulars for delivery of notices                                 17
    19.7  Process service                                                     17

20. MISCELLANEOUS                                                             17
    20.1  Governing Jaw                                                       17
    20.2  Assignment                                                          17
    20.3  No waiver                                                           17
    20.4  Amendment                                                           17
    20.5  Entire understanding                                                18
</TABLE>

                                       ii
<PAGE>

     DATE

     PARTIES

     HEARTWARE Limited ACN 111 970 256 of Level 1, 1 Bligh Street, Sydney, New
     South Wales, 2000 (COMPANY)

     DAVID MCINTYRE of 978 Forest Road, Lugarno, New South Wales 2210
     (EXECUTIVE)

     BACKGROUND

A    Provided that the Company is admitted to the Official List of the
     Australian Stock Exchange Limited, the Company wishes to employ the
     Executive the position of Chief Financial Officer, and the Executive has
     agreed to accept employment as Chief Financial Officer on the terms and
     conditions set out in this document.

     AGREED TERMS

1.   INTERPRETATION

1.1  DEFINITIONS

     In this document:

     BASE SALARY means the amount specified as Base Salary in Schedule 1 to this
     Agreement or such other amount as may be determined by the Board pursuant
     to clause 6.3.

     BOARD means the board of directors of the Company.

     BUSINESS means any corporation, partnership, joint venture, undertaking,
     trust or enterprise.

     BUSINESS DAY means a day other than a Saturday, Sunday or bank or public
     holiday In New South Wales.

     CASH SALARY means the amount of the Executive's Remuneration Package as
     defined in CLAUSE 6.1 that the Executive elects to receive by way of cash
     payment.

     COMMENCEMENT DATE means the date agreed by the Executive and the Company as
     the date upon which the Executive commences employment with the Company.

<PAGE>

     CONFIDENTIAL INFORMATION means any information, however communicated or
     recorded, relating to the business of the Company or any Group Company to
     which the Executive gains access, whether before, during or after the
     Executive's employment with the Company, and includes:

     (a)  any trade secret or other commercially sensitive or confidential
          information of or possessed by the Company or any Group Company, or
          any person or entity with which the Company or any Group Company deals
          or is concerned;

     (b)  any techniques, methods, computer software, materials, documents or
          manuals of the Company or any Group Company used in their businesses;

     (c)  information concerning products developed or used by the Company or
          any Group Company, their customers and suppliers;

     (d)  inventions, improvements or products discovered or developed by any
          employee, officer, contractor or consultant of the Company or any
          Group Company;

     (e)  Information relating to the business affairs, accounts, business
          plans, market research, marketing plans, sales plans, customer lists,
          prospects, management or finances of the Company or any Group Company,
          or any person or entity with which the Company or any Group Company
          deals or is concerned;

     (f)  the identity of the customers, suppliers, consultants, distributors,
          agents, contractors and employees of the Company or any Group Company
          and the arrangements between any of these persons or entities;

     (g)  any information of or possessed by the Company or any Group Company
          which is marked as confidential, is by its nature confidential, or the
          Executive knows or ought to know is confidential; and

     (h)  the terms of this document,

          but excludes any information which, without breach of this document or
          other breach of confidence by the Executive, is or becomes public
          knowledge.

          EMPLOYEE SHARE OPTION PLAN means the Company's employee share option
          plan as varied from time to time.

          EMPLOYMENT means the employment of the Executive under this document.

          GROUP means the Company and the Group Companies.

          GROUP COMPANY means a body corporate which is related to the Company
          within the meaning of section 50 of the Corporations Act 2001 and any
          associated company, including but not limited to HeartWare Inc.

<PAGE>

          INTELLECTUAL PROPERTY includes, but is not limited to, ideas, designs,
          patents, trade marks, copyright (including moral rights) and designs
          whether registered or unregistered, software developments, computer
          programs, security codes, circuit layout rights and know-how,
          inventions and improvements in procedures made or discoveries
          conceived.

          LISTING means the Company's admission to the Official List of the
          Australian Stock Exchange Limited.

          RELEVANT PERIOD means the period of 12 months immediately preceding
          the date on which the Employment terminates.

1.2  INTERPRETATION

     Unless expressed to the contrary, in this document

     (a)  words in the singular include the plural and vice versa;

     (b)  any gender includes the other genders;

     (c)  if a word or phrase is defined, its other grammatical forms have
          corresponding meanings;

     (d)  "includes" means includes without limitation;

     (e)  a reference to:

          (i)  a person includes a partnership, joint venture, unincorporated
               association, corporation and a government or statutory body or
               authority;

          (ii) a person includes its legal personal representatives, successors
               and assigns;

          (iii) any legislation includes subordinate legislation under it and
               includes that legislation and subordinate legislation as modified
               or replaced;

          (iv) an obligation includes a warranty or representation and a
               reference to a failure to comply with an obligation includes a
               breach of warranty or representation;

          (v)  a right includes a benefit, remedy, discretion and power;

          (vi) "$" or "dollars" is a reference to the lawful currency of
               Australia;

          (vii) writing includes any mode of representing or reproducing words
               in tangible and permanently visible form, and includes facsimile
               transmission;

          (viii) this document includes all schedules and annexures to it; and

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          (ix) a policy of the Company means any policy of the Company in
               relation to the relevant subject matter as created, varied or
               replaced from time to time.

1.3  HEADINGS

     Headings do not affect the interpretation of this document.

2.   EMPLOYMENT OF EXECUTIVE

2.1  APPOINTMENT

     (a)  Subject to the Company's Official Listing on the Australian Stock
          Exchange Limited (Listing), the Company will employ the Executive and
          the Executive will serve the Company as Chief Financial Officer.

     (b)  The Executive's employment with the Company is conditional upon the
          Company's Listing, and in the event that such Listing does not
          proceed, the Executive will not be employed by the Company, and the
          Executive will not be entitled to any compensation from the Company In
          relation thereto.

2.2  TERM

     The Employment will commence on the Commencement Date and will continue
     until terminated in accordance with clause 15 of this Agreement.

2.3  WARRANTY

     The Executive represents and warrants to the Company that he has the legal
     right to enter into this Agreement and in performing his duties and
     obligations under this document, he will not be in breach of any obligation
     to a third party, including any restrictive covenant or confidentiality
     obligation.

3.   LOCATION

3.1  PLACE OF EMPLOYMENT

     The Employment will be based primarily at the Company's premises in Sydney
     or such other place or places as the Company may reasonably direct.

3.2  TRAVEL

     The Executive will be required to travel regularly to the Group's other
     offices and may be required to undertake other travel within and outside
     Australia in the performance of his duties. The Executive will not be
     entitled to any additional remuneration for such travel but the expenses of
     such travel, including accommodation and meals, will be paid for by the
     Company in accordance with its policies.

<PAGE>

4.   HOURS OF WORK

     The Executive will work during the normal business hours of the Company and
     such other hours as are necessary for the Executive to perform the
     Executive's duties in a satisfactory manner. The Executive will not be
     entitled to any additional remuneration for work outside normal business
     hours.

5.   DUTIES

5.1  GENERAL DUTIES

     The Executive will:

     (a)  carry out the duties and responsibilities which would normally be
          expected of the position of Chief Financial Officer and Company
          Secretary in similar organisations including, but not limited to,
          responsibility for regulatory and compliance functions and accounting
          and tax matters, for the Group;

     (b)  perform the duties assigned to the Executive from time to time and
          comply with all lawful and reasonable directions given to the
          Executive by the Board and any person duly authorised by the Board;

     (c)  subject to any written consent given by the Board under CLAUSE 5.4(B)
          and except in the case of absence by reason of illness or incapacity
          or while on leave in accordance with this document, devote the whole
          of the Executive's time, attention and abilities during normal
          business hours and such other hours as are necessary for the Executive
          to perform the Executive's duties in a satisfactory manner,
          exclusively to the business of the Company and the Group Companies;

     (d)  use the Executive's best endeavours to promote and enhance the
          interests, welfare, business, profitability, growth and reputation of
          the Company and the Group Companies;

     (e)  act in the best interests of the Group and not intentionally do
          anything which is or may be harmful to the Company or any Group
          Company;

     (f)  perform the Executive's duties and responsibilities in a proper and
          efficient manner;

     (g)  subject to the terms of this document, comply with the Company's
          policies as varied from time to time;

     (h)  promptly report to the Board or such person as the Board may from time
          to time determine, all information and explanations as it may require
          in connection with matters relating to the Employment or the business
          of the Company or any Group Company;

<PAGE>

     (i)  not act, or be seen to be acting, in conflict with the best interests
          of the Company or any Group Company.

5.2  SPECIFIC DUTIES

     Without limiting the generality of CLAUSE 5.1, the Board may assign
     specific duties to the Executive and may alter the Executive's duties from
     time to time after discussion with the Executive.

5.3  CORPORATE OFFICES

     The Executive agrees:

     (a)  upon request by the Board, to accept appointment to and to serve in
          any other office or offices as director, secretary, public officer or
          otherwise of the Company or any Group Company without additional
          compensation or reward; and

     (b)  upon request by the Board and unless otherwise agreed by the Board, to
          resign, on termination of the Employment, from any office or offices
          held at that time.

5.4  OTHER EMPLOYMENT

     (a)  Subject to CLAUSE 5.4(B), the Executive will not, during the
          Employment:

          (i)  carry on, advise, provide services to or be engaged, concerned or
               interested in or associated with any business or activity which
               is in competition with any business carried on by the Company or
               any Group Company; or

          (ii) without the prior written consent of the Company, be engaged or
               interested in any other public or private work or duties, either
               directly or indirectly, in any capacity (including as principal,
               agent, partner, employee, shareholder, unitholder, joint
               venturer, director, trustee, beneficiary, manager, consultant or
               advisor),

     (b)  The Executive may:

          (i)  hold or acquire shares (whether directly or through nominees) in
               aggregate not more than 5% of the issued ordinary shares in the
               capital of any body corporate listed on a recognised stock
               exchange;

          (ii) manage his private investments; or

          (iii) participate In charitable, civic, educational, professional or
               community affairs or serve on the board of directors or advisory
               committees of non-profit entities

<PAGE>

               provided that such activities do not interfere with the
               Executive's capacity to discharge his duties pursuant to CLAUSES
               5.1, 5.2 and 5.3 of this Agreement.

6.   REMUNERATION

6.1  REMUNERATION PACKAGE

     The Company will provide the Executive with the remuneration package
     (REMUNERATION PACKAGE) specified in SCHEDULE 1 or such other rate as may be
     determined from time to time on review under CLAUSE 6.3.

     The Remuneration Package will comprise Base Salary, superannuation
     contributions made by the Company to a complying fund on the Executive's
     behalf, motor vehicle and other non-salary benefits as set out in SCHEDULE
     1 or as otherwise agreed from time to time, provided that the
     superannuation component shall be at least the minimum amount required in
     accordance with the Superannuation Guarantee Administration Act 1992. The
     Executive will be required to meet the costs of any fringe benefits tax or
     other tax payable by the Company In consequence of the provision of the
     Remuneration Package (except for the benefits provided to the Executive in
     SCHEDULE 1, PARAGRAPH (C)) including goods and services tax but excluding
     any pay-roll tax and tax on the corporate profits of the Company.

6.2  CASH SALARY PAYMENTS

     The Executive's Cash Salary will be paid monthly by electronic deposit into
     an account nominated by the Executive.

6.3  REMUNERATION PACKAGE REVIEW

     The Remuneration Package will be reviewed by the Board each year, on such
     basis as the Board in its absolute discretion may determine having regard
     to the performance of the Executive and the circumstances of the Company.
     The Remuneration will not be reduced without the consent of the Executive
     unless the Board decides to reduce the remuneration of all senior
     executives of the Group, in which case the Executive's Remuneration Package
     will be reduced by the same percentage as the percentage reduction applied
     to the remuneration of other senior executives within the Group.

6.4  ADDITIONAL BENEFITS

     (a)  BONUS SCHEME

          (i)  In addition to the Remuneration Package, the Executive may be
               granted an annual performance-based bonus payment of up to
               $30,000 in accordance with the Company's performance-based bonus
               scheme.

          (ii) The amount of the bonus payable to the Executive (if any) will be
               determined by the Board in its absolute discretion having regard
               to the

<PAGE>

               performance of the Company and the Executive against key
               performance indicators as determined by the Company following
               consultation with the Executive.

          (iii) The key performance indicators for the Executive's first year of
               employment will be determined at the first Board meeting after
               the Commencement date.

     (b)  EMPLOYEE SHARE OPTION PLAN

          (i)  The Executive will be entitled to be granted options under the
               Company's employee share option plan (OPTION SHARES) equal to
               half of one per cent (0.5%) of the issued capital on Listing. The
               exercise price and vesting of the Option Shares will be as
               follows:

<TABLE>
<CAPTION>
  % OF
OPTIONS   EXERCISE PRICE   VESTING DATE
-------   --------------   ------------
<S>       <C>              <C>
25%          AUD$0.60      First Anniversary of Commencement Date

25%          AUD$0.75      Second Anniversary of Commencement Date

25%          AUD$1.00      Third Anniversary of Commencement Date

25%          AUD$1.50      Fourth Anniversary of Commencement Date
</TABLE>

          (ii) Except as provided for in CLAUSE 14.6, the Executive's right to
               exercise the options granted pursuant to CLAUSE 6.4(B)(I) is
               subject to the Executive's continued employment with the Company
               on the relevant vesting date and the terms of the Employee Share
               Option Plan.

          (iii) Should there be a significant dilutionary event affecting the
               Company, the Board will, at its sole discretion, review the
               Executive's share option entitlements having taken into account
               factors such as the achievement of specific milestones and other
               performance measures. The Board will also take into account the
               overall level of the Employee Share Option Plan.

     (c)  OTHER BENEFITS

          (i)  The Executive will be provided with a car parking space at or
               near the Company's Sydney office in accordance with Company
               policy.

          (ii) The Executive will be entitled to other benefits, such as
               participation in group insurance schemes, in accordance with
               Company policies.

<PAGE>

7.   EXPENSES

     The Company will reimburse the Executive for all reasonable expenses
     properly incurred by the Executive in the performance of the Executive's
     duties, subject to Company policies and provision of any documentary
     evidence (including goods and services tax receipts) reasonably required by
     the Company.

8.   PROFESSIONAL QUALIFICATIONS AND MEMBERSHIPS

     The Company agrees to provide the Executive with reasonable time off for
     the purposes of maintaining his professional qualifications and membership
     of professional bodies, provided that such time off does not interfere with
     the operational requirements of the Company's business.

9.   ANNUAL LEAVE

9.1  ENTITLEMENT TO ANNUAL LEAVE

     The Executive will be entitled to four weeks' paid annual leave for each
     year of continuous service with the Company, accruing on a pro-rata basis.

9.2  TAKING ANNUAL LEAVE

     Annual leave will be taken at times approved by the Chief Executive
     Officer. If the Executive accrues more than eight weeks of annual leave,
     the Chief Executive Officer may direct the Executive to take some or all of
     the Executive's accrued annual leave entitlement upon eight weeks' written
     notice.

10.  SICK LEAVE

     The Executive is entitled to ten days' paid sick leave in each complete
     year of service. Sick leave is cumulative, but no payment will be made in
     respect of untaken sick leave on termination of the Employment. Additional
     paid sick leave may be approved by the Board in its absolute discretion.
     The Company may require a medical certificate for absences of more than two
     days.

11.  LONG SERVICE LEAVE

     The Executive will be entitled to long service leave in accordance with the
     Long Service Leave Act 1955 (NSW).

12.  INTELLECTUAL PROPERTY

<PAGE>

     The Executive acknowledges and agrees that all Intellectual Property
     developed, created or conceived by the Executive (whether alone or with
     others) during the Employment and which is related to or may be adapted to
     the business of the Company or any Group Company is and will be the sole
     and exclusive property of the Company. The Executive further acknowledges
     and agrees that:

     (a)  full right, title and interest in copyright works created by the
          Executive will vest in the Company immediately on creation;

     (b)  full right, title and interest in all other intellectual Property is
          assigned to the Company by the Executive;

     (c)  the Executive will promptly execute all documents and do all things
          necessary to vest or assign full right, title and interest in the
          Intellectual Property in and to the Company; and

     (d)  the Executive irrevocably and unconditionally waives all moral rights
          and any equivalent or analogous rights.

13.  CONFIDENTIAL INFORMATION

13.1 DUTY OF CONFIDENTIALITY

     The Executive must keep confidential all Confidential Information and must
     not, both during the Employment and after it ends, disclose or allow to be
     disclosed any Confidential Information to any person except:

     (a)  if the Executive has been authorised in writing by the Board to do so;

     (b)  to the agents, employees or advisers of the Company or a Group Company
          in the proper performance of the Executive's responsibilities and
          duties;

     (c)  if the Executive is required by law to do so. In this case, no more
          Confidential Information must be disclosed than is strictly required
          and the Executive must take all reasonable steps to ensure the
          disclosed Confidential Information is treated confidentially; or

     (d)  in respect of the terms of this document, in confidence to the
          Executive's legal or financial advisers or members of the Executive's
          immediate family.

13.2 USE OF CONFIDENTIAL INFORMATION

     The Executive must not use any Confidential Information for the benefit of
     any person other than the Company or a Group Company.

13.3 SECURITY OF CONFIDENTIAL INFORMATION

<PAGE>

     The Executive must maintain effective security measures to protect all
     Confidential Information from unauthorised access, use, copying or
     disclosure.

13.4 UNCERTAINTY

     If there is any uncertainty as to whether any information is Confidential
     Information, that information must be treated as Confidential Information
     unless the Executive is advised by the Board in writing to the contrary.

14.  TERMINATION

14.1 TERMINATION BY THE EXECUTIVE ON NOTICE

     After the initial Term, the Executive may terminate this Agreement upon
     giving three months' written notice.

14.2 TERMINATION BY THE COMPANY ON NOTICE

     The Company may at any time terminate the Employment by giving three
     months' written notice to the Executive.

14.3 TERMINATION BY THE COMPANY FOR CAUSE

     Without limiting the generality of CLAUSE 14.2, the Company may at any time
     immediately terminate the Employment by giving written notice to the
     Executive if the Executive:

     (a)  commits any act of serious misconduct;

     (b)  fails or refuses to comply with any lawful and reasonable direction
          given by the Company;

     (c)  intentionally commits a serious or persistent breach of this document
          which is detrimental to the Company or any Group Company and Is
          incapable of rectification;

     (d)  commits any serious or persistent breach of this document which
          continues unremedied for 10 days after written notice of that breach
          has been given to the Executive;

     (e)  commits any act (whether in the course of the Employment or not) which
          in the reasonable opinion of the Board brings the Executive into
          disrepute or may cause damage to the reputation of the Executive, the
          Board, the Company or any Group Company or otherwise affect adversely
          the interests of the Company or any Group Company;

     (f)  is convicted of any offence (whether in the course of the Employment
          or not) involving fraud or dishonesty or any other serious offence
          (except for a traffic

<PAGE>

          offence) which is punishable by imprisonment (whether the Executive is
          Imprisoned or not);

     (g)  is bankrupt, is declared bankrupt or enters into any composition or
          arrangement with or makes any assignment of the Executive's property
          in favour of the Executive's creditors generally;

     (h)  is precluded from taking part in the management of a corporation by
          the provisions of the Corporations Act 2001;

     (i)  becomes of unsound mind or a person whose person or estate is liable
          to be dealt with in any way under laws relating to mental health; or

     (j)  is incapacitated by physical or mental illness, accident or any other
          circumstances beyond the Executive's control:

               (A)  for a period of 120 consecutive days or an aggregate period
                    of 120 days in any 12 month period, or

               (B)  for a period of less than 120 consecutive days or an
                    aggregate period of 120 days in any 12 month period where a
                    medical practitioner nominated by the Company and its
                    insurers determines that the Executive is totally and
                    permanently Incapacitated, and such determination is
                    accepted by the Executive or his legal representative, such
                    acceptance not being unreasonably withheld.

                    Where the Executive's employment is terminated pursuant to
                    CLAUSE 14.3, the Company must specify in reasonable detail
                    in the notice of termination the basis for such termination.

                    Where the Executive's employment Is terminated pursuant to
                    CLAUSE 14.3(J) he will be paid three months' Remuneration.

14.4 PAYMENT IN LIEU OF NOTICE

     The Company may substitute payment in lieu of any part or all of any period
     of notice of termination. Such payment shall be calculated at the rate of
     the Remuneration Package payable to the Executive immediately prior to the
     termination of his employment.

14.5 GARDEN LEAVE

     During:

     (a)  part or all of any period of notice of termination given by the
          Executive or the Company; or

     (b)  any period not exceeding two weeks during which the Company is
          investigating any disciplinary issue involving the Executive,

<PAGE>

          the Company may, at its sole discretion:

     (c)  require the Executive to perform only such duties as the Company may
          determine or not to perform any duties at all; and/or

     (d)  require the Executive not to have any contact with any employees,
          customers or business associates of the Company or any Group Company
          other than normal social contact; and/or

     (e)  exclude the Executive from all or any part of the Company's and any
          Group Company's premises.

          Provided that the Executive's remuneration will not be withheld or
          reduced as a result of the Executive complying with such directions.

14.6 ACCELERATION OF OPTIONS

     If the Executive's employment is terminated by the Company pursuant to
     CLAUSE 14.2 the unvested share options that the Executive holds shall, on
     the date of termination of the Executive's employment, accelerate in
     respect of the immediately following 12 months of vesting, and become
     immediately exercisable, notwithstanding any share option plan of the
     Company or any term of this document.

14.7 DISCIPLINARY AND GRIEVANCE PROCEDURES

     In view of the seniority of the Executive's position, the Company is not
     required to follow any performance review, disciplinary, warning or
     grievance procedures before terminating the Employment except as provided
     for in this document.

14.8 PAYMENT OF ACCRUED ENTITLEMENTS UPON TERMINATION

     On termination of the Employment, whether pursuant to this CLAUSE 14 or
     otherwise, the Executive will be entitled to receive from the Company:

     (a)  Remuneration up to and including the date of termination;

     (b)  payment in lieu of any accrued annual leave to which the Executive is
          entitled up to and including the date of termination, calculated at
          the rate of the Base Salary payable to the Executive Immediately prior
          to termination;

     (c)  payment in lieu of any long service leave to which the Executive is
          entitled up to and including the date of termination calculated at the
          rate of the Base Salary payable to the Executive immediately prior to
          termination;

14.9 NO COMPENSATION

<PAGE>

     Upon termination of the Employment in accordance with the express terms of
     this document, the Executive will not be entitled to claim any compensation
     or damages from the Company in respect of that termination beyond those
     specified in this document.

14.10 RIGHT OF SET-OFF

     (a)  Termination of the Employment under any circumstances will not
          abrogate, impair, release, or extinguish any debt, obligation or
          liability of the Executive to the Company which may have accrued under
          this document or otherwise including any debt, obligation or liability
          which was the cause of termination or arose out of that cause.

     (b)  On termination of the Employment, the Company may set-off any debt,
          obligation or liability of the Executive to the Company against the
          Executive's entitlements on termination provided that the Company
          gives reasonable details in writing of such set-off, including the
          relevant calculation thereto.

15.  NON-COMPETITION

15.1 NON-COMPETE

     In the event that the Employment is terminated for whatever reason, the
     Executive will not without the written consent of the Company directly or
     indirectly whether on the Executive's own account or for any person:

     (a)  (i)  perform any services of the type the Executive performed for the
               Company or any Group Company under this document for any Business
               engaged in whole or part in competition with any business of the
               Company or any Group Company;

          (ii) solicit or endeavour to solicit any director, manager, officer,
               senior employee or contractor of the Company known personally to
               the Executive or knowingly employ, assist in or procure the
               employment by any Business of any such person;

          (iii) solicit or endeavour to solicit any person who was during the
               Executive's employment with the Company a customer or client of
               the Company with a view to providing services to that customer or
               client which are the same as or similar to the services which the
               Executive was involved in providing to that customer or client
               during the Relevant Period;

          (iv) deal with or accept any approach from or work on any account of
               any person who was during the Executive's employment with the
               Company a customer or client of the Company with a view to
               providing services to that customer or client which are the same
               as or similar to the services which the Executive was involved in
               providing to that customer or client during the Relevant Period;

<PAGE>

     (b)  for a period of:

          (i)  6 months;

          (ii) 3 months;

     (c)  throughout:

          (i)  the world;

          (ii) Australia, Europe (including the United Kingdom), and the United
               States;

          (iii) Australia and Europe (including the United Kingdom);

          (iv) Australia.

15.2 CONSTRUCTION OF NON-COMPETE CLAUSE

     CLAUSE 15.1 will be construed and have effect as if it were the number of
     separate sub-clauses which results from combining the commencement of
     CLAUSE 15.1 with each sub-paragraph of paragraph (a) and combining each
     such combination with each sub-paragraph of paragraph (b) and combining
     each such combination with each sub-paragraph of paragraph (c), each such
     resulting sub-clause being severable from each other such resulting
     sub-clause and It is agreed that if any of the resulting sub-clauses shall
     be invalid or unenforceable for any reason, such invalidity or
     unenforceability will not prejudice or in any way affect the validity or
     enforceability of any other such resulting sub-clause.

15.3 SEVERABILITY

     The Executive agrees that if any of the above restraints or any part of
     them is held to be invalid or unenforceable for any reason, that restraint
     or part shall be severed so that the remainder shall remain valid and
     effective.

15.4 EXECUTIVE MAY HOLD SHARES

     This CLAUSE 15 shall not restrict the Executive from holding or acquiring
     (either directly or indirectly) a passive interest in aggregate not more
     than 3% of the issued ordinary shares in the capital of any Business which
     is same as or substantially similar to or in competition with any part of
     the business of the Company or any Group Company, or 5% of the issued
     ordinary shares in the capital of any other body corporate listed on any
     recognised stock exchange or from being employed in or engaged by any
     Business which is same as or substantially similar to or in competition
     with any part of the business of the Company or any Group Company in a
     position which is not concerned with the management, strategic direction,
     marketing or sales functions of that Business.

16.  ACKNOWLEDGMENT

<PAGE>

     The Executive acknowledges and agrees that:

     (a)  the Company has spent and will spend effort and money in establishing
          and maintaining its customer base, employee skills and the
          Confidential information;

     (b)  the only fair and reasonable manner in which the interests of Company
          can be protected is by the restraints imposed on the Executive in this
          Agreement;

     (c)  the Executive has received adequate consideration for the restraint
          obligations imposed on the Executive in this Agreement; and

     (d)  the duration, extent and application of the respective restraints
          contained in this Agreement are at the date of this Agreement (and as
          the parties can at that date foresee) not greater than is reasonably
          necessary for the protection of the interests of the Company given the
          nature of the business and undertaking of the Company.

          The Executive acknowledges that an order for damages would be an
          inadequate remedy for any breach of CLAUSES 12, 13 or 15.1 and hereby
          consents and agrees that in the event he commits any breach of any of
          these clauses:

     (e)  the Company will be entitled to immediate relief by way of Injunction
          without the necessity to prove any loss or damage; and

     (f)  the Company will be entitled to such permanent orders in restraint of
          the Executive and to such orders for damages and to such other orders
          as any Court of competent jurisdiction may think fit upon trial and
          determination of the issues in dispute.

17.  RETURN OF PROPERTY

17.1 RETURN OF PROPERTY

     Upon termination of the Employment, or at any time upon request by the
     Board, the Executive will immediately deliver to the Company all property
     of any description belonging to the Company or any Group Company and all
     documentation or other material on which is recorded any Confidential
     Information, whether in physical or electronic form, which is in the
     Executive's possession, custody or control which is physically capable of
     delivery.

17.2 DESTRUCTION OF PROPERTY

     The Executive will, upon request by the Board, destroy any or all of the
     above items or in relation to any Confidential Information contained in
     computer software or data, destroy it by erasing it from the medium on
     which It is stored so that the information cannot be recovered or
     reconstructed, and certify in writing to the Board that such items or
     Confidential Information have been destroyed or erased.

18.  SEVERANCE

<PAGE>

     Any provision of this document which is or becomes illegal, void or
     unenforceable in any jurisdiction will be ineffective and severable in that
     jurisdiction to the extent of the illegality, voidness or unenforceability
     and will not invalidate the remaining provisions of this document nor
     affect the validity or enforceability of that provision in any other
     jurisdiction.

19.  NOTICES

19.1 GENERAL

     A notice, demand, certification, process or other communication relating to
     this document must be in writing in English and may be given by an agent of
     the sender.

19.2 HOW TO GIVE A COMMUNICATION

     In addition to any other lawful means, a communication may be given by
     being:

     (a)  personally delivered;

     (b)  left at the party's current address for notices;

     (c)  sent to the party's current address for notices by pre-paid ordinary
          mall or, if the address is outside Australia, by pre-paid airmail; or

     (d)  sent by fax to the party's current fax number for notices.

19.3 PARTICULARS FOR DELIVERY OF NOTICES

     (a)  The particulars for delivery of notices are initially:

               COMPANY: ________________

               Address: as set out above

19.7 PROCESS SERVICE

     Any process or other document relating to litigation, administrative or
     arbitral proceedings relating to this document may be served by any method
     contemplated by this CLAUSE 19 or in accordance with any applicable law.

20.  MISCELLANEOUS

20.1 GOVERNING JAW

     This document is governed by and Is to be construed in accordance with the
     laws in force in New South Wales and the parties irrevocably and
     unconditionally submit to the non-exclusive jurisdiction of the Courts of
     New South Wales and any Courts which have jurisdiction to hear appeals from
     any of those Courts.

<PAGE>

20.2 ASSIGNMENT

     Neither party will assign any of Its rights under this document.

20.3 NO WAIVER

     No failure to exercise or any delay in exercising any right, power or
     remedy under this document will operate as a waiver. Nor will any single or
     partial exercise of any right, power or remedy preclude any other or
     further exercise of that or any other right, power or remedy.

20.4 AMENDMENT

     This document may only be varied or replaced by a document duly executed by
     the parties. No change to the duties, title, remuneration or
     responsibilities of the Executive will amount to a variation or termination
     of this document except to the extent agreed in writing between the
     parties.

20.5 ENTIRE UNDERSTANDING

     (a)  This document embodies the entire understanding and agreement between
          the parties as to the subject matter of this document

     (b)  All previous negotiations, understandings, representations,
          warranties, memoranda or commitments in relation to, or in any way
          affecting, the subject matter of this document are merged in and
          superseded by this document and will be of no force or effect whatever
          and no party will be liable to any other party in respect of those
          matters.

     (c)  No oral explanation or information provided by any party to another
          will:

          (i)  affect the meaning or interpretation of this document; or

          (ii) constitute any collateral agreement, warranty or understanding
               between any of the parties.

<PAGE>

SCHEDULE 1

Remuneration Package

The Remuneration Package as at the date of this document is as follows:

     (a)  Base Salary: AUD$220,000;

     (b)  Employer superannuation contributions at the rate of 9% of Base
          Salary;

     (c)  Motor vehicle - Holden Calais or vehicle of equivalent standard.

<PAGE>

EXECUTED as an agreement

EXECUTED by HEARTWARE LIMITED       )
                                    )

                                        /s/ Robert Thomas
---------------------------------       ----------------------------------------
Company Secretary/Director              Director
                                        Robert Thomas
---------------------------------       Name of Director (print)
Name of Company
Secretary/Director (print)

SIGNED by DAVID MCINTYRE in the     )
presence of:                        )

/s/ David Allen                         /s/ David McIntyre
---------------------------------       ----------------------------------------
Witness                                 David McIntyre
David Allen
Name of Witness (print)<PAGE>
                                                                   Exhibit 10.32

                                [HEARTWARE LOGO]

HeartWare Limited
ACN 111 970 257

Employee Share Option Plan

(CONSOLIDATED AS AT 29 AUGUST 2006)

<PAGE>
                                                                               .
                                                                               .
                                                                               .

Contents

<TABLE>
<S>                                                                           <C>
1 GRANT OF OPTIONS                                                            1
   1.1 General Eligibility                                                    1
   1.2 Price of Options                                                       1
   1.3 Issue of Options                                                       1
   1.4 Initial Grant of Options                                               1

2 MAXIMUM NUMBER OF OPTIONS                                                   1
   2.1 Maximum number of Options to be issued under the Plan                  1
   2.2 Maximum number of Options to be issued to an Employee under the Plan   2

3 OPTIONS TERMS                                                               2
   3.1 Essential terms                                                        2
   3.2 Variation of terms                                                     2

4 OVERRIDING RESTRICTIONS ON ISSUE AND EXERCISE                               2

5 ADMINISTRATION OF THE PLAN                                                  3
   5.1 Delegation                                                             3
   5.2 Procedures                                                             3
   5.3 Disputes                                                               3
   5.4 Covenant or exercise of discretion                                     3

6 DEFINITION AND INTERPRETATION                                               3
   6.1 Definition                                                             3
   6.2 Interpretation                                                         5
</TABLE>
<PAGE>

     DATE

1    Grant of Options

1.1  GENERAL ELIGIBILITY

     At any time and from time to time, the Board may issue Options to
     Participants (or to a nominated Associate as the Participant directs)
     having regard, in each case, to:

     (a)  the contribution to the Company or an Associated Body Corporate which
          has been made by the Participant;

     (b)  the period of employment of the Participant with the Company or an
          Associated Body Corporate, including (but not limited to) the years of
          service by that Participant;

     (c)  the potential contribution of the Participant to the Company or an
          Associated Body Corporate; and

     (d)  any other matters which the Board considers in its absolute
          discretion, to be relevant.

1.2  PRICE OF OPTIONS

     Options are to be issued free to Participants.

1.3  ISSUE OF OPTIONS

     Each Option must be issued on the terms of these Rules and each Participant
     will be taken to have agreed to be bound by these Rules on acceptance by
     that Participant of an Option.

1.4  INITIAL GRANT OF OPTIONS

     The Board, by the adoption of these Rules, issues Options to the
     Participants listed in ANNEXURE A:

     (a)  with the vesting dates set out in ANNEXURE A;

     (b)  with the exercise prices set out in ANNEXURE A;

     (c)  in the number of Options calculated using the percentage set out
          against each Participant's name in ANNEXURE A of the total issued
          capital of the Company as at the date the Company is admitted to the
          Official List of the Australian Stock Exchange Limited; and

     (d)  with an Issue Date of the date the Company allots Shares under the
          Company's Prospectus dated on or about the date of these Rules.

2    Maximum number of Options

2.1  MAXIMUM NUMBER OF OPTIONS TO BE ISSUED UNDER THE PLAN

     The aggregate number of Options in respect of which Invitations may be made
     on any date under the Plan when added to:

<PAGE>

     (a)  the number of Shares allotted under any employee share plan for the
          benefit of employees during the five years preceding the date on which
          Invitations are made; and

     (b)  the number of Shares which may be acquired by exercise of options
          granted under the Plan (or any Company option plan for the benefit of
          employees),

     shall not exceed 11% of the number of Shares on issue on the day preceding
     such date.

2.2  MAXIMUM NUMBER OF OPTIONS TO BE ISSUED TO AN EMPLOYEE UNDER THE PLAN

     The number of Options which may be allotted under the Plan to any one
     Employee shall be restricted in any case where the result of accepting an
     Invitation would cause that Employee (legally or beneficially) to be able
     to cast more than 5% of the votes able to be cast at a general meeting of
     the Company. The Board may in its discretion from time to time determine
     the extent of the restriction.

3    Options terms

3.1  ESSENTIAL TERMS

     An Option must be granted on the Essential Terms and may be granted on such
     other additional terms, conditions or restrictions, not being inconsistent
     with these Rules or the Essential Terms, as the Board determines either
     generally or in relation to particular Options.

3.2  VARIATION OF TERMS

     Despite anything to the contrary in these Rules, to the full extent
     permissible by the law, the Board may from time to time vary the Exercise
     Price, the period in which an Option may be exercised and the conditions to
     which an Option is subject or any of them.

4    Overriding restrictions on issue and exercise

     Notwithstanding anything else in these Rules or in the terms of any Option,
     an Option may not be offered, issued, or exercised if to do so:

     (a)  would contravene the Corporations Act; or

     (b)  would contravene the local laws of, or the rules or requirements of
          any regulatory or statutory body in, a Participant's country of
          residence or in the opinion of the Board compliance with those local
          laws, rules or requirements would be impractical or result in any
          unnecessary or unreasonable expense in the circumstances.

                                                                          page 2

<PAGE>

5    Administration of the plan

5.1  DELEGATION

     (a)  The Plan shall be in all respects administered under the directions of
          the Board or a committee of the Board.

     (b)  The Board or committee may appoint, for the proper administration and
          management of the Plan, such secretarial or executives or staff or
          other persons as it considers desirable and may delegate to those
          persons such powers and authorities as may be necessary or desirable
          for the administration and management of the Plan.

     (c)  Unless otherwise determined by the Board or a committee of the Board,
          the Company's share registry will maintain a separate register of
          Options issued under the Plan.

5.2  PROCEDURES

     Subject to these Rules, the Board may make such regulations and establish
     such procedures for the administration and management of the Plan as it
     considers appropriate.

5.3  DISPUTES

     If any disagreement or dispute with respect to the interpretation of these
     Rules or the terms of grant of any Option arises, such disagreement or
     dispute shall be referred to the Board and the decision of the Board shall,
     in the absence of manifest error, be final and binding upon all parties.

5.4  COVENANT OR EXERCISE OF DISCRETION

     The Company or an Associated Body Corporate or the Board may, subject to
     any express provision in these Rules or the Corporations Act to the
     contrary:

     (a)  do any act, matter or thing or make any decision, determination or
          resolution; or

     (b)  conditionally or unconditionally give or withhold any consent or
          approval,

     as contemplated by these Rules in its absolute uncontrolled and
     unexaminable discretion and is not obliged to give reasons for so doing.

6    Definition and interpretation

6.1  DEFINITION

     In these Rules, unless the contrary intention appears:

     ASSOCIATE has the same meaning as in section 139GE of the Income Tax
     Assessment Act, except that "taxpayer" shall be construed as a reference to
     "Participant".

     ASSOCIATED BODY CORPORATE means any:

     (a)  related body corporate of the Company; and

                                                                          page 3

<PAGE>

     (b)  entity designated by the Board, in its discretion, to be an associated
          company for the purposes of the Plan.

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

     BUSINESS DAY means any day that is not Saturday, Sunday or public holiday
     in New South Wales.

     CHANGE OF CONTROL EVENT means:

     (a)  the Company entering into a scheme of arrangement with its creditors
          or members or any class thereof pursuant to section 411 of the
          Corporations Act;

     (b)  the commencement of a Takeover Period; or

     (c)  a person or a group of associated persons having a relevant interest
          in, subsequent to the adoption of these Rules, sufficient Shares in
          the Company to give it or them the ability, in general meeting, to
          replace all or a majority of the Board in circumstances where such
          ability was not already held by a person associated with such person
          or group of associated persons.

     COMPANY means HeartWare Limited ACN 111 970 257.

     ESSENTIAL TERMS means the terms of issue of Options set out in the
     SCHEDULE.

     EXERCISE PRICE means in relation to a Share to be issued upon exercise of
     an Option the issue price of that Share as determined in accordance with
     clause 1.2 of the Essential Terms.

     EXPIRY DATE means in relation to an Option the date which is the fifth
     anniversary of the Issue Date or such other date reasonably determined by
     the Board provided that such date shall be no later than the tenth
     anniversary of the Issue Date.

     INVITATION means an invitation to a Participant pursuant to the Plan Rules
     to acquire Options.

     ISSUE DATE means the date determined by the Board as the date on which an
     Option was granted.

     OPTION means an option issued under this Plan to subscribe for Shares.

     PARTICIPANT means an employee (including an executive or non executive
     Director) or a full-time or part-time employee of the Company or an
     Associated Body Corporate, who is invited by the Board to participate in
     the Plan and is issued Options under the Plan and includes a nominated
     Associate of that Participant.

     PLAN means this Employee Share Option Plan as in force and amended from
     time to time.

     RULES means these Rules as altered or added to from time to time and a
     reference to a provision of these Rules is a reference to that provision as
     altered or added to from time to time, and for the avoidance of doubt,
     includes the Essential Terms.

                                                                          page 4

<PAGE>

     SCHEDULE means schedule to, and forming part of, these Rules.

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

     TAKEOVER PERIOD in relation to a takeover bid in respect of Shares means
     the period referred to in section 624 of the Corporations Act, provided
     that where a takeover bid is publicly announced prior to the service of a
     bidder's statement on the Company in relation to that takeover bid, the
     takeover period shall be deemed to have commenced at the time of that
     announcement.

6.2  INTERPRETATION

     For the purposes of these Rules, unless the contrary intention appears:

     (a)  the singular includes the plural and vice-versa;

     (b)  words denoting a gender include all genders;

     (c)  if a word or phrase is defined cognate words and phrases have
          corresponding definitions;

     (d)  a reference to a related body corporate of the Company is a reference
          to a body corporate which is so related within the meaning of the
          Corporations Act;

     (e)  a reference to a statute, ordinance, code or other law includes
          regulations and other statutory instruments under it and
          consolidations, amendments, re-enactments or replacements or any of
          them; and

     (f)  any power, authority or discretion vested in the Company or the Board
          may be exercised at any time and from time to time and unless
          expressed otherwise, in their absolute discretion.

                                                                          page 5

<PAGE>

Schedule

Terms of issue of Options

1    Options

1.1  ENTITLEMENT TO SHARES

     Each Option entitles the holder to subscribe for and be issued, credited as
     fully paid, the number of Shares specified in the Option.

1.2  EXERCISE PRICE

     The Exercise Price of a Share to be issued on exercise of an Option shall
     be:

     (a)  for the initial grant of Options to the Participants listed in
          ANNEXURE A, the Exercise Price set out in ANNEXURE A; and

     (b)  for all other Options, the Exercise Price as determined by the Board
          (in its discretion) on or before the Issue Date provided that in no
          event shall the Exercise Price be less than the weighted average sale
          price of Shares sold during the five Business Days prior to the Issue
          Date or such other period as determined by the Board (in its
          discretion).

1.3  ISSUE OF CERTIFICATE

     Subject to these Rules, the Company shall issue Shares on exercise of an
     Option and shall issue a certificate for Shares so issued within 10
     Business Days after the date of exercise of the relevant Option.

1.4  RANKING OF SHARES ISSUED ON THE EXERCISE OF OPTIONS

     Shares issued on the exercise of Options will rank pari passu with all
     existing Shares in the capital of the Company from the date of issue of
     those Shares.

2    Exercise of Options

2.1  PROCEDURE FOR EXERCISE

     Subject to CLAUSE 2.2 of this SCHEDULE, an Option is exercisable by the
     holder lodging with the Company Secretary:

     (a)  a notice of exercise of that Option in the form attached to this
          SCHEDULE;

     (b)  a cheque for the Exercise Price for each Share to be issued on the
          exercise of that Option; and

     (c)  the certificate for that Option.

                                                                          page 6

<PAGE>

     In the event of the death of a holder of Options, those Options are
     exercisable by the executor of the estate of the holder in the same manner
     as set out above.

2.2  CONDITIONS RELATING TO EXERCISE OF AN OPTION

     (a)  An Option must be exercised (if at all) not later than its Expiry Date
          and, subject to this CLAUSE 2, may only be exercised at any time after
          the option has been vested and before it has lapsed.

     (b)  The Board may determine (in its absolute discretion) any further
          conditions of exercise consistent with these Rules that apply to an
          Option.

     (c)  The exercise of some Options only does not affect the Participant's
          right to exercise other Options at a later time.

     (d)  If the Participant exercises less than all Options represented by the
          certificate then the Company will cancel the certificate and issue a
          new certificate for the balance.

2.3  VESTING OF OPTIONS

     Other than the initial issue of Options to the Participants listed in
     ANNEXURE A (which shall vest as set out in ANNEXURE A), and unless the
     Board otherwise determine, Options issued will vest in the Option holder in
     the following period:

     (a)  at the end of 12 months from the date of issue of the relevant
          Options, 25% of the Options issued;

     (b)  at the end of 24 months from the date of issue of the relevant
          Options, 25% of the Options issued;

     (c)  at the end of 36 months from the date of issue of the relevant
          Options, 25% of the Options issued; and

     (d)  at the end of 48 months from the date of issue of the relevant
          Options, 25% of the Options issued.

2.4  LAPSE OF OPTIONS

     Unless the Board otherwise determines at the time of issue of any Options
     that are issued on or after [_], an Option held by a Participant will
     immediately lapse upon the first to occur of:

     (a)  its Expiry Date;

     (b)  the making by the Board of a determination that:

          (i)  the Participant has acted fraudulently, dishonestly or in breach
               of the Participant's obligations to the Company or an Associated
               Body Corporate; and

          (ii) the Option is on that account to be forfeited;

     (c)  subject to CLAUSE 2.5 of this SCHEDULE, the Participant ceasing to be
          employed by the Company or an Associated Body Corporate for any reason
          (or, in the case of an Option held by a nominated Associate, the

                                                                          page 7

<PAGE>

          employment of the nominating Participant is terminated) except where
          the Participant ceases to be employed as a direct result of the
          disposal or sale of the Company or Associated Body Corporate (in which
          case, for the avoidance of doubt, such Options shall not lapse by
          virtue of that event alone);

     (d)  the day which is 30 days following any person or corporation having a
          relevant interest in not less than 90% of the Shares; or

     (e)  the day which is 10 days following the Company issuing a notice of
          meeting convening a meeting of shareholders in order to enter into a
          scheme of arrangement (pursuant to the provisions of the Corporations
          Act) which, if implemented would result in a person or corporation
          having a relevant interest in not less than 90% of the Shares.

2.5  WHEN A PARTICIPANT IS DEEMED CEASE BEING AN EMPLOYEE OF THE COMPANY

     For the purposes of CLAUSE 2.4(C) of this SCHEDULE, a Participant shall,
     unless otherwise determined by the Board at the time of issue of any
     Options that are issued on or after [_], 2006, be deemed to have ceased to
     be employed by the Company or an Associated Body Corporate:

     (a)  on the day which is six months after the day the Participant ceases to
          be employed by the Company or an Associated Body Corporate by virtue
          of:

          (i)  the Participant's death; or

          (ii) the Participant being retrenched or made redundant by the Company
               or an Associated Body Corporate (other than as a direct result of
               the disposal or sale of the Company or Associated Body
               Corporate); and

     (b)  on the day which is 30 days after the Participant ceases to be
          employed by the Company or an Associated Body Corporate or such later
          date that the Board determines in its absolute discretion where the
          Participant ceases to be employed by virtue of:

          (i)  the Participant retiring; or

          (ii) the Participant's permanent illness or permanent physical or
               mental incapacity (as certified by a medical practitioner who is
               approved in writing by the Board).

2.6  CHANGE OF CONTROL

     If, in the opinion of the Board, a Change of Control Event has occurred, or
     is likely to occur, the Board may declare an Option to be free of any
     conditions of exercise and Options which are so declared may, subject to
     CLAUSE 2.4 of this SCHEDULE, be exercised at any time on or before the
     Expiry Date and in any number.

2.7  RELEVANT INTEREST

     If any person or corporation having a relevant interest in not less than
     90% of the Shares or the Company issues a notice of meeting convening a
     meeting of

                                                                          page 8

<PAGE>

     shareholders in order to enter into a scheme of arrangement (pursuant to
     the provisions of the Corporations Act) which, if implemented would result
     in a person or corporation having a relevant interest in not less than 90%
     of the Shares, all Options shall be free of any conditions of exercise and
     may be exercised at any time prior to their lapsing pursuant to CLAUSE 2.4
     of this SCHEDULE.

3    Transfer

     An Option is personal to the Participant to whom it was granted, and the
     Participant may not sell, transfer or otherwise dispose of, or make a
     declaration of trust in respect of, it except to an Associate of that
     Participant.

4    Quotation of Options and Shares

     Options will not be listed for quotation on ASX.

5    Future issues of Shares

5.1  NEW ISSUES

     (a)  There are no participating rights or entitlements inherent in the
          Options and Participants will not be entitled to participate in new
          issues of capital offered to shareholders during the currency of the
          Options.

     (b)  However, the Company will ensure that the record date for determining
          entitlements to any such issue will be at least 10 Business Days after
          the issue is announced.

     (c)  Participants shall be afforded the opportunity to exercise all Options
          which they are entitled to exercise pursuant to these Rules prior to
          the date for determining entitlements to participate in any such
          issue.

5.2  BONUS ISSUES

     (a)  If the Company makes an issue of Shares to the holders of Shares in
          the Company by way of capitalisation of profits or reserves (BONUS
          ISSUE), each Participant holding any Options which have not expired at
          the time of the record date for determining entitlements to the Bonus
          Issue shall be entitled to have issued to them upon exercise of any of
          those Options the number of Shares which would have been issued under
          the Bonus Issue (BONUS SHARES) to a person registered as holding the
          same number of Shares as that number of Shares to which the
          Participant may subscribe pursuant to the exercise of those Options
          immediately before the record date determining entitlements under the
          Bonus Issue (in addition to the Shares which he or she is otherwise
          entitled to have issued to him or her upon such exercise).

     (b)  The Bonus Shares will be paid by the Company out of profits or
          reserves (as the case may be) in the same manner as was applied in
          relation to

                                                                          page 9

<PAGE>

          the Bonus Issue and upon issue rank pari passu in all respects with
          the other Shares issued upon exercise of the Options.

6    Reconstruction of capital

     In the event of any reconstruction (including a consolidation, subdivision,
     reduction or return) of the issued capital of the Company prior to the
     expiry of any Options, the number of Options to which each Participant is
     entitled or the exercise price of his or her Options or both or any other
     terms will be reconstructed in a manner determined by the Board.

7    Advice

7.1  COMPANY TO NOTIFY PARTICIPANTS OF ANY ADJUSTMENT

     The Company shall give notice to each Participant of any adjustment to the
     number of Shares which the Participant is entitled to subscribe for or be
     issued on exercise of an Option or the exercise price per Share.

7.2  COMPANY TO PROVIDE DETAILS OF CURRENT MARKET PRICE OF SHARES

     The Company will provide to a Participant upon request, within a reasonable
     time, either verbally or in writing, details of the current market price
     (in Australian dollars) of the Shares in the Company and details of the
     Exercise Price in relation to Options held by that Participant.

8    Notices

     Notices may be given by the Company to the Participant in the manner
     prescribed by the constitution of the Company for the giving of notices to
     members of the Company and the relevant provisions of the constitution of
     the Company apply with all necessary modification to notices to
     Participants.

9    Right to accounts

     Participants will be sent all reports and accounts required to be laid
     before members of the Company in general meeting and all notices of general
     meetings of members but will not have any right to attend or vote at those
     meetings.

10   Assignment of Options

     Subject to CLAUSE 3 of this SCHEDULE, a Participant may not assign or
     transfer an Option except during a Takeover Period, in which case the
     Options may only be transferred by the Participant to the bidder or its
     nominees in accordance with the Corporations Act.

                                                                         page 10

<PAGE>

11   Company's rights not waived

11.1 PARTICIPATION DOES NOT AFFECT THE RIGHT OF THE COMPANY IN RESPECT OF THE
     PARTICIPANTS

     (a)  The Company's right to terminate or vary the terms of employment of
          any Participant shall not be prejudiced in any way by the Company or
          any Participant participating in the Plan or anything contained in
          these Rules or both.

     (b)  Further, participation in the Plan, the rights or benefits of a
          Participant under these Rules or the inability or restricted ability
          of a Participant to exercise an Option or any of them, shall not be
          used as grounds for granting or increasing damages in any action
          brought by any Participant against the Company whether in respect of
          any alleged wrongful dismissal or otherwise.

11.2 NO REPRESENTATION AS TO THE PRICE OF SHARES

     (a)  None of the Company, its directors, officers or employees represents
          that the Company's share price will attain, maintain or exceed the
          Exercise Price.

     (b)  A Participant who chooses to exercise any Option does so at their own
          risk in that they may suffer financial detriment if the Company's
          share price falls.

12   Governing law

     The Plan and these Rules shall in all respects be governed by and shall be
     construed in accordance with the laws of New South Wales, Australia.

13   Severance

     If any provision in these Rules is void, voidable by any party or illegal,
     it shall be read down so as to be valid and enforceable or, if it cannot be
     so read down, the provision (or where possible, the offending words) shall
     be severed from these Rules without affecting the validity, legality or
     enforceability of the remaining provisions (or parts of those provisions)
     of these Rules which shall continue in full force and effect.

14   Amendment of Rules

14.1 AMENDMENT BY BOARD

     Subject to CLAUSE 14.2 of this SCHEDULE, the Board may from time to time
     amend (including the power to revoke, add to or vary) all or any of the
     provisions of these Rules in any respect whatsoever, by an instrument in
     writing without the necessity of obtaining the prior or subsequent consent
     of shareholders of the Company or any Associated Body Corporate in a
     general meeting.

                                                                         page 11

<PAGE>

14.2 AMENDMENT MAY BE MADE RETROSPECTIVE

     The Board may make any amendment to these Rules with retrospective effect
     as the Board may determine in good faith, providing that the Board obtains
     the prior approval of at least 50% of Participants who shall be adversely
     affected by the retrospective amendment in relation to Options previously
     granted to them.

15   Suspension or termination of the Plan

     The Board may suspend or terminate the Plan at any time, in which case the
     Company shall not make any further grants of Options under the Plan during
     the suspended or terminated period. However, during that period the Board
     shall otherwise continue to administer the Plan in accordance with these
     Rules until all Options have been exercised or expired.

THESE OPTIONS AND THE SECURITIES TO BE ISSUED UPON THEIR EXERCISE HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (US
SECURITIES ACT) AND THE OPTIONS MAY NOT BE EXERCISED BY OR ON BEHALF OF ANY U.S.
PERSON, AS SUCH TERM IS DEFINED IN REGULATION S OF THE US SECURITIES ACT, UNLESS
A REGISTRATION STATEMENT UNDER THE SECURITIES ACT IS FILED AND MADE EFFECTIVE,
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT
REGISTRATION UNDER THE US SECURITIES ACT IS NOT REQUIRED. NEITHER THE OPTIONS
NOR THE SECURITIES TO BE ISSUED UPON THEIR EXERCISE MAY BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT
WITH RESPECT TO THE OPTIONS OR THE SECURITIES TO BE ISSUED UPON THEIR EXERCISE,
OR (II) AN EXEMPTION FROM REGISTRATION UNDER THE US SECURITIES ACT AND AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION
UNDER THE US SECURITIES ACT IS NOT REQUIRED.

                                                                         page 12

<PAGE>

                           FORM OF NOTICE OF EXERCISE

[DATE]

The Company Secretary
HeartWare Limited
C/- Level 1, 1 Bligh Street
SYDNEY NSW 2000

Dear Sir/Madam

[NAME OF OPTIONHOLDER] gives notice of the exercise of [NUMBER OF OPTIONS]
issued pursuant to the Company's Employee Share Option Plan and exercisable at
[$___________].

The certificate for these Options, along with a cheque made payable to
"HeartWare Limited" for [$_________________] (being the total of the exercise
price payable on the exercise of these Options), is enclosed.

INDIVIDUAL:

SIGNED by                             )
in the presence of:                   )

                                        ----------------------------------------

-------------------------------------
Witness

-------------------------------------
Name of Witness (print)

COMPANY:

EXECUTED for                          )
in accordance with section 127 of the )
Corporations Act by:                  )

-------------------------------------   ----------------------------------------
Company Secretary/Director              Director

-------------------------------------   ----------------------------------------
Name of Company Secretary/Director      Name of Director (print)
(print)

                                                                         page 13

<PAGE>

Annexure A

Initial Grant of Options

(attached)

                                                                         page 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]