Document:

EX-4.1

 Exhibit 4.1 

Employee Incentive Option Plan 

Avita Medical Limited 
 ACN
058 466 523 

 Table of Contents 
  

							
	 1.
	  	The plan	  	 	1	 
			
	 2.
	  	Eligibility	  	 	1	 
			
	 3.
	  	Participation	  	 	1	 
			
	 3.1      
	  	Invitation to participate	  	 	1	 
	 3.2
	  	Application form	  	 	1	 
	 3.3
	  	Nominee	  	 	2	 
	 3.4
	  	Participant bound by application form, rules and constitution	  	 	2	 
			
	 4.
	  	Grant of options	  	 	2	 
			
	 4.1
	  	Grant of options	  	 	2	 
	 4.2
	  	Nominal payment for options	  	 	2	 
	 4.3
	  	Options non-transferable	  	 	2	 
	 4.4
	  	Quotation of Options	  	 	2	 
	 4.5
	  	Option certificate	  	 	2	 
			
	 5.
	  	Exercise of Options	  	 	3	 
			
	 5.1
	  	Manner of exercise of Options	  	 	3	 
	 5.2
	  	Vesting	  	 	3	 
	 5.3
	  	Vesting conditions	  	 	3	 
	 5.4
	  	Lapse of an Option	  	 	4	 
	 5.5
	  	Issue or transfer of shares on exercise	  	 	4	 
	 5.6
	  	Shares rank equally	  	 	4	 
	 5.7
	  	Financial assistance	  	 	5	 
	 5.8
	  	Withholding	  	 	5	 
	 5.9
	  	Plan Limit	  	 	5	 
	 5.10
	  	Sale Restrictions	  	 	5	 
			
	 6.
	  	Changes in circumstances	  	 	6	 
			
	 6.1
	  	Reconstruction	  	 	6	 
	 6.2
	  	Participation in new issues	  	 	6	 
			
	 7.
	  	Amendment	  	 	6	 
			
	 8.
	  	Powers of the Board	  	 	6	 
			
	 8.1
	  	Powers of the Board	  	 	6	 
	 8.2
	  	Indemnification	  	 	7	 
	 8.3
	  	Termination or suspension of Plan	  	 	7	 
	 8.4
	  	Resolution to terminate, suspend, supplement or amend	  	 	7	 
			
	 9.
	  	Powers of the administrator	  	 	7	 
			
	 9.1
	  	Appointment of administrator	  	 	7	 
	 9.2
	  	Role of administrator	  	 	7	 
			
	 10.
	  	Contracts of employment and other employment rights	  	 	7	 
			
	 10.1
	  	Discretion of board	  	 	7	 
	 10.2
	  	No right to grant of options	  	 	7	 
	 10.3
	  	Calculation of employee benefits	  	 	7	 
	 10.4
	  	No right to future employment etc.	  	 	8	 
	 10.5
	  	Acknowledgment by Participant	  	 	8	 

  
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	 10.6
	  	Establishment of a Trust	  	 	8	 
			
	 11.
	  	Connection with other plans	  	 	8	 
			
	 12.
	  	Notices	  	 	8	 
			
	 13.
	  	General	  	 	8	 
			
	 14.
	  	Plan costs	  	 	8	 
			
	 14.1
	  	Plan Costs	  	 	8	 
	 14.2
	  	Reimbursement	  	 	8	 
			
	 15.
	  	Overseas eligible employees	  	 	9	 
			
	 16.
	  	Governing law	  	 	9	 
			
	 17.
	  	Definitions and interpretation	  	 	9	 
			
	 17.1
	  	Definitions	  	 	9	 
	 17.2
	  	Interpretation	  	 	11	 

  
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 Avita Medical Limited—Employee Incentive Option Plan 

 

	1.	 The plan 

The purpose of the Plan is to provide Eligible Employees with an incentive to remain with the Group and to improve the longer-term performance
of the Company and its return to shareholders. It is intended that the Plan will enable the Group to retain and attract skilled and experienced employees and provide them with the motivation to make the Group more successful. 

 

	2.	 Eligibility 

The Board may determine at any time that any Eligible Employee is not entitled to participate in the Plan if the Eligible Employee’s
participation would be unlawful. 
  

	3.	 Participation 

 

	3.1	 Invitation to participate 

Subject to these rules, the Board at its sole discretion may invite any Eligible Employee selected by it to complete an Application Form
relating to a specified number of Options allocated to that Eligible Employee by the Board upon the terms set out in this Plan and upon such additional terms and conditions as the Board determines. 

For the purpose of clarity, these rules are also to apply to all Options granted by the Company to employees prior to the date of adoption of
these rules. An Option may be made subject to vesting conditions as determined by the Board in its discretion and as specified in the offer for the Option. 
  

	3.2	 Application form 

The Board must give to each Eligible Employee selected under rule 3.1 above, an Application Form together with an offer letter which sets out
the following information relating to the Options proposed to be allocated to the Eligible Employee: 
  

	 	(a)	 the date of grant or intended date of grant; 

 

	 	(b)	 the total number of Options to be granted; 

 

	 	(c)	 the Exercise Period; 

 

	 	(d)	 the Exercise Price or the method of determining the Exercise Price; 

 

	 	(e)	 the Vesting Conditions attaching to the Options (if any); 

 

	 	(f)	 the Disposal Restrictions attaching to any Shares issued on exercise (if any); 

 

	 	(g)	 the Forfeiture Conditions attaching to the Options (if any); 

 

	 	(h)	 any other terms and conditions relating to the grant which, in the opinion of the Board, are fair and
reasonable but not inconsistent with these rules (Special Conditions); 

  

	 	(i)	 in respect of the initial grant made to an Eligible Employee, a summary, or a copy of these rules; and

  
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	 	(j)	 any other information or documents required to be notified to the Eligible Employee by the Corporations Act or
the Listing Rules. 

 As a condition of being offered the Options the Board may also require the Eligible Employee to enter
a Share Option Agreement, subject to conditions as required by the Board. 
  

	3.3	 Nominee 

Eligible Employees may nominate for their Options to be granted to a nominee (provided that the disclosure relief in section 708(12) of the
Corporations Act would extend to that nominee). However, the Board reserves the absolute discretion to refuse to issue the Options to the proposed nominee. 
  

	3.4	 Participant bound by application form, rules and constitution 

By completing and returning the Application Form, a Participant agrees (and if an election has been made by an Eligible Employee under rule 3.3
above, the Eligible Employee’s nominee agrees) to be bound by the terms of the Application Form, these rules, the Share Option Agreement (if any) and the Constitution. 
  

	4.	 Grant of options 

 

	4.1	 Grant of options 

The Board may only grant Options to a Participant following receipt of a duly signed and completed Application Form and Share Option Agreement
(if any) from the Participant. 
  

	4.2	 Nominal payment for options 

Unless the Options are quoted on the ASX, Options issued under the Option Plan will be issued for no more than nominal cash consideration. 

 

	4.3	 Options non-transferable 

An Option granted under the Plan is not capable of being transferred or encumbered by a Participant, unless the Board determines otherwise and
at all times subject to the requirements of the Corporations Act and the ASX Listing Rules. 
  

	4.4	 Quotation of Options 

The Company has no obligation to apply for quotation of the Options on the ASX. 

 

	4.5	 Option certificate 

The Company must issue a Certificate to a Participant in respect of the Options granted to that Participant. The Company must comply with the
provisions of the Constitution, the Share Option Agreement (if any), the Listing Rules and the Corporations Act relating to the issue of the Certificate. 

  
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	5.	 Exercise of Options 

 

	5.1	 Manner of exercise of Options 

The exercise of any Option granted under the Plan may only be effected in such form and manner as the Board may prescribe, which may include
the automatic exercise of Options. 
  

	5.2	 Vesting 

The Board may in its absolute discretion (except in respect of a Control Event occurring where the Board has determined that Vesting
Conditions are deemed to be automatically waived) by written notice to a Participant (or, where a Participant is a person nominated by an Eligible Employee, the executive or director who nominated the Participant) (collectively Relevant
Person), resolve to waive any of the Vesting Conditions applying to Options due to: 
  

	 	(a)	 Special Circumstances arising in relation to a Relevant Person in respect of those Performance Rights, being:

  

	 	(i)	 a Relevant Person ceasing to be an Eligible Employee due to: 

 

	 	(A)	 death or total or permanent disability of a Relevant Person; or 

 

	 	(B)	 retirement or redundancy of a Relevant Person; 

 

	 	(ii)	 a Relevant Person suffering severe financial hardship; 

 

	 	(iii)	 any other circumstance (if any) stated to constitute “Special Conditions” in the terms of the
relevant Offer made to and accepted by the Participant; or 

  

	 	(iv)	 any other circumstances determined by the Board at any time (whether before or after the Offer) and notified to
the relevant Participant which circumstances may relate to the Participant, a class of Participant, including the Participant or particular circumstances or class of circumstances applying to the Participant; or 

 

	 	(b)	 a Control Event occurring; or 

 

	 	(c)	 the Company passing a resolution for voluntary winding up, or an order is made for the compulsory winding up of
the Company. 

  

	5.3	 Vesting conditions 

Subject to rules 5.2 and 5.4, an Option granted under the Plan may only be exercised: 

 

	 	(a)	 if all the Vesting Conditions have been met and /or waived by the Board; 

 

	 	(b)	 if the Exercise Price has been paid to the Company or as the Company may direct; and 

 

	 	(c)	 within the Exercise Period relating to the Option. 

An Option granted under the Plan may not be exercised once it has lapsed. 

  
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	5.4	 Lapse of an Option 

An Option will lapse upon the earlier to occur of: 
  

	 	(a)	 an unauthorised dealing in the Option; 

 

	 	(b)	 a Vesting Condition in relation to the Option is not satisfied by its due date, or becomes incapable of
satisfaction, unless the Board exercises its discretion to waive the Vesting Conditions and vest the Option in the circumstances set out in rule 5.2 or the Board resolves, in its absolute discretion, to allow the unvested Options to remain unvested
after the Relevant Person ceases to be an Eligible Employee; 

  

	 	(c)	 in respect of unvested Option only, a Relevant Person ceases to be an Eligible Employee, unless the Board
exercises its discretion to vest the Option in the circumstances set out in rule 5.2 or the Board resolves, in its absolute discretion, to allow the unvested Options to remain unvested after the Relevant Person ceases to be an Eligible Employee;

  

	 	(d)	 in respect of vested Options only, a Relevant Person ceases to be an Eligible Employee and the Option granted
in respect of that person is not exercised within one (1) month (or such later date as the Board determines) of the date that person ceases to be an Eligible Employee; 

 

	 	(e)	 the Board deems that an Option lapses due to fraud, dishonesty or other improper behaviour of the Relevant
Person; 

  

	 	(f)	 the Company undergoes a Control Event or a winding up resolution or order is made and the Board does not
exercise its discretion to vest the Option; 

  

	 	(g)	 on liquidation of the Company; 

 

	 	(h)	 on the occurrence of a Forfeiture Condition relating to that Option, unless the Board determines otherwise; or

  

	 	(i)	 the expiry date of the Option. 

 

	5.5	 Issue or transfer of shares on exercise 

Following exercise of an Option by a Participant, the Company must, within such time as the Board determines, allot and issue or procure the
transfer to the Participant of the number of Shares in respect of which the Option has been exercised, credited as fully paid. 
  

	5.6	 Shares rank equally 

Subject to the satisfaction of any applicable Disposal Restrictions, Shares allotted and issued under the Plan must rank equally in all
respects with all other Shares from the date of allotment and issue, including: 
  

	 	(a)	 voting rights; and 

  

	 	(b)	 entitlements to participate in: 

 

	 	(i)	 distributions and dividends; and 

  
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	 	(ii)	 future rights issues and bonus issues, 

where the record date for determining entitlements falls on or after the date of allotment and issue. 

 

	5.7	 Financial assistance 

The Company may, but is not obliged to, financially assist a person to pay any Exercise Price for an Option, subject to compliance with the
provisions of the Corporations Act and the Listing Rules, including in relation to financial assistance. 
  

	5.8	 Withholding 

  

	 	(a)	 If the Company or any member of the Group has an obligation in relation to a tax liability associated with the
grant or vesting of any Option (Tax Liability), then the Company may sell a sufficient number of Shares, post vesting or exercise of the Option, to cover the Tax Liability. 

 

	 	(b)	 A Participant may enter into alternative arrangements, if acceptable to the Board, to settle any Tax Liability.

  

	5.9	 Plan Limit 

The Company must, at the time of inviting an Eligible Employee to participate in the Plan, have reasonable grounds to believe that the Shares
that have been or may be issued as a result of the exercise of Options offered in reliance on the Class Order will not exceed 5% of the total number of Shares on issue, including: 

 

	 	(a)	 Shares that may be issued under the invitation or offer to participate; and 

 

	 	(b)	 Shares issued or that may be issued as a result of invitations or offers to participants made at any time
during the previous 3 year period under: 

  

	 	(i)	 an employee incentive scheme or like scheme of the Company where offers were made in reliance on the
Class Order or an individual instrument made by ASIC in terms similar to that class order; or 

  

	 	(ii)	 an employee incentive scheme or employee share scheme of the Company where the offers were covered under ASIC
Class Order CO 03/184 or an individual instrument made by ASIC in terms similar to that class order. 

  

	5.10	 Sale Restrictions 

The Board may, in its discretion, determine at any time up until exercise of Options, that a restriction period will apply to some or all of
the Shares issued to an Eligible Participant (or their eligible nominee) on exercise of those Options up to a maximum of seven (7) years from the grant date of the Options. In addition, the Board may, in its sole discretion, having regard to
the circumstances at the time, waive any such restriction period determined. 

  
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	6.	 Changes in circumstances 

 

	6.1	 Reconstruction 

In the event of any reconstruction (including consolidation, subdivision, reduction, capital return, buy back, cancellation of the share
capital of the Company or the establishment or inclusion of a holding company of the Company as part of the Group), the number of Options to which each Participant is entitled and/or the Exercise Price of those Options must be reconstructed in
accordance with the Listing Rules. Where a new holding company forms part of the reconstructed Group, unless the Board determines otherwise, upon the exercise of the Options the holder of the Options will be issued securities in the new holding
company rather than the Company. Options must be reconstructed in a manner which will not result in any additional benefits being conferred on Participants which are not conferred on other shareholders of the Company. All rights of a holder of an
Option are to be changed in a manner consistent with the Corporations Act and the ASX Listing Rules at the time of the reorganisation. Unless specified in the offer of the Options and subject to compliance with the ASX Listing Rules, an Option does
not confer the right to a change in exercise price or in the number of underlying Shares over which the Option can be exercised. 
  

	6.2	 Participation in new issues 

Subject to the Listing Rules, a Participant is only entitled to participate (in respect of Options granted under the Plan) in a new issue of
Shares to existing shareholders generally if the Participant has validly exercised his or her Options within the relevant Exercise Period and become a Shareholder prior to the relevant record date, and is then only entitled to participate in
relation to Shares of which the Participant is the registered holder. There are no participating rights or entitlements inherent in the Options and holders will not be entitled to participate in new issues of capital offered to Shareholders during
the currency of the Options unless and to the extent the Options are exercised before the relevant record date for the applicable new issue. 
  

	7.	 Amendment 

Subject to the Listing Rules, these rules may be amended or supplemented by resolution of the Board. Unless the resolution of the Board
expressly states otherwise, any amendment or supplement to these rules will not apply to any Options granted under these rules prior to the amendment and which have not yet been exercised. 

 

	8.	 Powers of the Board 

 

	8.1	 Powers of the Board 

The Plan will be managed by the Board, which will have power to: 
  

	 	(a)	 determine appropriate procedures for the administration of the Plan consistent with these rules;

  

	 	(b)	 resolve conclusively all questions of fact or interpretation arising in connection with the Plan;

  

	 	(c)	 determine matters falling for determination under these rules in its discretion having regard to the interests
of and for the benefit of the Company; 

  
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	 	(d)	 exercise the discretions conferred on it by these rules or which may otherwise be required in relation to the
Plan; and 

  

	 	(e)	 delegate to any one or more persons (for such period and on such conditions as it may determine) the exercise
of any of its powers or discretions arising under the Plan. 

  

	8.2	 Indemnification 

The Company must indemnify, and keep indemnified, to the full extent permitted by law, each person who is or has been a director or alternate
director of the Company against all proceedings, actions, claims, demands, losses, liabilities, damages, costs and expenses which may be made, brought against, suffered or incurred by the person arising directly or indirectly out of or in connection
with the administration of the Plan. 
  

	8.3	 Termination or suspension of Plan 

The Board may terminate or suspend the operation of the Plan at any time. 

 

	8.4	 Resolution to terminate, suspend, supplement or amend 

In passing a resolution to terminate or suspend the operation of the Plan or to supplement or amend these rules, the Board must consider and
endeavour to ensure that there is fair and equitable treatment of all Participants. 
  

	9.	 Powers of the administrator 

 

	9.1	 Appointment of administrator 

The Board may appoint an Administrator and may determine the terms and conditions of the Administrator’s appointment. The Board may remove
the Administrator. 
  

	9.2	 Role of administrator 

The Administrator must administer the Plan in accordance with these rules and any procedures determined by the Board and agreed to as between
the Board and the Administrator. 
  

	10.	 Contracts of employment and other employment rights 

 

	10.1	 Discretion of board 

It is a condition of these rules that the Plan may be terminated at any time at the discretion of the Board and that no compensation under any
employment contract will arise as a result. 
  

	10.2	 No right to grant of options 

Participation in the Plan as an Eligible Employee does not confer on any Eligible Employee any right to a grant of Options. 

 

	10.3	 Calculation of employee benefits 

The value of the Options do not increase a Participant’s income for the purpose of calculating any employee benefits. 

  
 7 

	10.4	 No right to future employment etc. 

Participation in the Plan does not confer on any Participant any right to future employment and does not affect any rights which the Company
may have to terminate the employment of any Participant. 
  

	10.5	 Acknowledgment by Participant 

It is acknowledged and accepted by each Participant that the terms of the Plan do not form part of the terms and conditions of the
Participant’s employment contract, nor do the terms of the Plan constitute a contract or arrangement (including any related condition or collateral arrangement) in relation to the Participant’s employment contract. 

 

	10.6	 Establishment of a Trust 

The Board may, at any time, establish a trust for the sole purpose of acquiring and holding Shares in respect of which a Participant may
exercise, or has exercised, vested Options, including for the purpose of enforcing the disposal restrictions and appoint a trustee to act as trustee of the trust. The trustee will hold the Shares as trustee for and on behalf of a Participant as
beneficial owner upon the terms of the trust. The Board may at any time amend all or any of the provisions of the Plan to effect the establishment of such a trust and the appointment of such a trustee. 

 

	11.	 Connection with other plans 

Unless the Board otherwise determines, participation in the Plan does not affect, and is not affected by, participation in any other incentive
or other plan operated by the Company unless the terms of that other plan provide otherwise. 
  

	12.	 Notices 

Any notice or direction given under these rules is validly given if it is handed to the person concerned or sent by ordinary prepaid post to
the person’s last known address or given in any reasonable manner which the Board from time to time determines. 
  

	13.	 General 

Notwithstanding any rule, Shares may not be allotted and issued, acquired, transferred or otherwise dealt with under the Plan if to do so would
contravene the Corporations Act, the Listing Rules, or any other applicable laws. 
  

	14.	 Plan costs 

  

	14.1	 Plan Costs 

Unless otherwise determined by the Board, the Company must pay all costs, charges and expenses relating to the establishment and operation of
the Plan, including all costs incurred in or associated with an allotment, issue or acquisition of Shares for the purposes of enabling Participants to exercise Options granted to them under the Plan. 

 

	14.2	 Reimbursement 

The Company and any Associated Body Corporate of the Company may provide money to the trustee of any trust or any other person to enable them
to acquire Shares to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those 

  
 8 

 
purposes, to the extent permitted by the Corporations Act. In addition, the Company may require any Associated Body Corporate to enter into any other agreement or arrangement as it considers
necessary to oblige that Associated Body Corporate to reimburse the Company for any amounts paid by the Company in connection with this Plan, directly or indirectly, in relation to any employee or director of that Associated Body Corporate. 

 

	15.	 Overseas eligible employees 

The Company at the Board’s discretion may: 
  

	 	(a)	 grant options to Eligible Employees and Participants who are resident outside of Australia; and

  

	 	(b)	 make regulations for the operation of the Plan which are not inconsistent with these rules to apply to Eligible
Employees and Participants who are resident outside of Australia. 

  

	16.	 Governing law 

The laws of Victoria govern these rules. 
  

	17.	 Definitions and interpretation 

 

	17.1	 Definitions 

In this document, unless the context requires otherwise: 

Accounting Standards means the Australian Accounting Standards from time to time and if and to the extent that any matter is not covered
by the Australian Accounting Standards means generally accepted accounting principles applied from time to time in Australia for a business similar to the Business. 

Administrator means the person (if any) selected by the Board to carry out the day to day administration of the Plan as contemplated by
rule 9.1. 
 Application Form means the form that the Board determines is to be used by an Eligible Employee to apply for Options
under the Plan. 
 Associated Body Corporate of the Company means each: 

 

	 	(a)	 related body corporate of the Company, within the meaning of section 50 of the Corporations Act;

  

	 	(b)	 body corporate that has voting power in the Company of not less than 20%; or 

 

	 	(c)	 body corporate in which the Company has voting power of not less than 20%, 

where “voting power” has the meaning in section 610 of the Corporations Act. 

ASIC means Australia Securities and Investments Commission. 

ASX means ASX Limited (ACN 008 624 691) or the Australian Securities Exchange as the context requires. 

  
 9 

 Board means the board of directors of the Company or a committee appointed by the
board of directors of the Company. 
 Certificate means, in relation to a Participant, the certificate or statement (in a form
approved by the Board) issued to the Participant which discloses the number of Options entered in the register of Option holders in the name of the Participant. 

Class Order means ASIC Class Order CO 14/1000. 

Company means Avita Medical Limited ACN 058 466 523. 

Constitution means the constitution of the Company. 

Control of an entity means having the right: 
  

	 	(a)	 to vote more than 50% of the votes that can be cast on the election or removal of the entity’s directors;

  

	 	(b)	 to appoint or remove directors who possess more than 50% of the votes exercisable by all directors of the
entity; or 

  

	 	(c)	 more than 50% of the profits or distributions of the entity or of its net liquidation proceeds.

 For this definition, if the entity does not have a board of directors, ‘director’ means a member of the
entity’s governing body with a role similar to a board of directors. 
 Control Event means any of the following: 

 

	 	(a)	 any event that occurs which causes a change in Control of the Company; or 

 

	 	(b)	 any other event which the Board reasonably considers should be regarded as a Control Event; and

 Corporations Act means Corporations Act 2001 (Cth). 

Disposal Restrictions means, in relation to an Option, the restrictions (if any) determined by the Board that are required to be
satisfied before a Share acquired as a result of the exercise of the Option by the Participant can be sold, transferred or otherwise dealt with by a Participant. 

Eligible Employee means any: 
  

	 	(a)	 person who is employed (part time of full time) or engaged by the Group; 

 

	 	(b)	 director (whether executive or non-executive) or an executive or any
member of the Group who is a senior manager for the purposes of section 708(12) of the Corporations Act; 

  

	 	(c)	 a casual employee or contractor of any member of the Group to the extent permitted by ASIC Class Order
14/1000 (as amended or replaced); 

  

	 	(d)	 any other person determined by the Board to be an Eligible Employee for the purposes of the Plan.

 who is declared by the Board to be eligible to receive grants of Options under the Plan. 

  
 10 

 Exercise Period means, in relation to an Option, the period in which the Option may
be exercised specified by the Board under rule 3.2, subject to any variation under rules 5.4 and 1. 
 Exercise Price means the amount
that is specified by the Board under rule 3.2, subject to any adjustment under rule 1.1. 
 Forfeiture Conditions means, in relation
to an Option, the conditions (if any) determined by the Board that will result in the Option lapsing if satisfied. 
 Group means the
Company and each Associated Body Corporate of the Company and, for clarity, includes any interposed or subsequently established holding company of the Company. 

Liquidation means the passing of a resolution for voluntary winding up, or the making of an order for the compulsory winding up of the
Company. 
 Listing Rules means the listing rules (as defined in the Corporations Act) made or adopted by the ASX. 

Option means a right to subscribe for or acquire a Share, subject to any adjustment under rule 1.1. 

Participant means an Eligible Employee who has been invited to participate in the Plan and any other person who is nominated by that
Eligible Employee under rule 3.3 and who is determined by the Board to be a Participant for the purposes of the Plan. 
 Plan means
the Avita Medical Limited Employee Share Option Plan established and operated in accordance with these rules. 
 Relevant Person has the
meaning as provided in rule 5.2. 
 Share means a fully paid ordinary share in the capital of the Company. 

Share Option Agreement means an agreement to be entered by the Eligible Employee and the Company pursuant to which the Board may specify
provisions of this Plan which, under the Board’s discretion under this Plan, the Board has determined will or will not apply to the Particular Eligible Employee. 

Special Conditions has the meaning as provided in rule 3.2(h). 

Vesting Conditions means, in relation to an Option, the period of time, performance hurdles and other conditions (if any) determined by
the Board that are required to be satisfied before the Option can be exercised. 
 Vested Option means an Option in respect of which
all Vesting Conditions have been met or which are otherwise exercisable (including as contemplated by rule 5.4). 
  

	17.2	 Interpretation 

In these rules, unless the context otherwise requires: 
  

	 	(a)	 a reference to any thing (including an amount or a provision of this document) is a reference to the whole and
each part of it; 

  

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

  
 11 

	 	(c)	 the word ‘person’ includes an individual, a body corporate, a firm, an unincorporated body, a
society, an association and an authority; 

  

	 	(d)	 a reference to a particular person includes their legal personal representatives, administrators, successors,
substitutes and permitted assigns; 

  

	 	(e)	 a reference to ‘costs’ includes charges, expenses and legal costs; 

 

	 	(f)	 a reference to a “rule” or “these rules” is to the rule or these rules (as the case may be)
as amended or replaced; 

  

	 	(g)	 a reference to the Constitution includes a reference to any provision having substantially the same effect
which is substituted for or replaces the Constitution; 

  

	 	(h)	 where a Participant is a director of any member of the Group, but is not also an employee of any member of the
Group, a reference to the employment with any member of the Group of that Participant is a reference to that Participant holding office as a director of any member of the Group; 

 

	 	(i)	 where a Participant is a person nominated by an Eligible Employee, a reference to the employment with any
member of the Group of that Participant is a reference to the employment with any member of the Group of that Eligible Employee; 

  

	 	(j)	 a Participant does not cease to be employed by any member of the Group where the Participant ceases to be
employed by one member of the Group but commences employment with another member of the Group provided that the new employment commences within 60 days from the date of termination or such other period as the Board may determine by notice in
writing; 

  

	 	(k)	 a reference to ‘law’ means statute law, common law and equitable principles; 

 

	 	(l)	 a reference to a particular law includes that law and any subordinate legislation (such as regulations) under
it, in each case as amended, replaced, re-enacted or consolidated; 

  

	 	(m)	 a reference to an accounting term is to that term as it is used in the Accounting Standards;

  

	 	(n)	 a reference to ‘dollars’, ‘$‘ or ‘A$’ is to the lawful currency of Australia;

  

	 	(o)	 a time means that time in Melbourne, Australia; 

 

	 	(p)	 a reference to a day or a month means a calendar day or calendar month; 

 

	 	(q)	 if a period of time starts from a given day (or event), it is to be calculated exclusive of that day (or the
day the event occurs); 

  

	 	(r)	 the masculine includes the feminine, and vice versa; 

 

	 	(s)	 the meaning of any general language is not restricted by any accompanying example and the words
‘includes’, ‘including’ ‘such as’ or ‘for example’ (or similar phrases) are not words of limitation; and 

  

	 	(t)	 headings in this document are for convenience only and do not affect its meaning. 

If (but for this rule) a provision of this document would be illegal, void or unenforceable or contravene the law, this document is to be
interpreted as if the provision was omitted. 

  
 12EX-4.2

 Exhibit 4.2 

Employee Share Plan 

AVITA MEDICAL LIMITED 
 ACN
058 466 523 

 Table of Contents 
  

							
	1.	 	The Plan	  	 	1	 
			
	1.1	 	Purpose	  	 	1	 
	1.2	 	Commencement	  	 	1	 
	1.3	 	Termination or suspension of Plan	  	 	1	 
	1.4	 	Connection with other plans	  	 	1	 
			
	2.	 	Eligibility	  	 	1	 
			
	2.1	 	Participation by Eligible Employees	  	 	1	 
	2.2        	 	Overseas Eligible Employees	  	 	1	 
			
	3.	 	Participation	  	 	2	 
			
	3.1	 	Invitation to participate	  	 	2	 
	3.2	 	Application Form	  	 	2	 
	3.3	 	Participant bound by Application Form, Plan and Constitution	  	 	2	 
			
	4.	 	Allocation of Shares	  	 	2	 
			
	4.1	 	Allocation of Shares	  	 	2	 
	4.2	 	Method of consideration	  	 	2	 
	4.3	 	Holding Statements	  	 	2	 
			
	5.	 	Issue of Shares	  	 	3	 
			
	6.	 	Nature of Shares	  	 	3	 
			
	6.1	 	General	  	 	3	 
	6.2	 	Ranking	  	 	3	 
	6.3	 	Voting	  	 	3	 
	6.4	 	Entitlement to dividends	  	 	3	 
	6.5	 	Transfer restrictions on Shares	  	 	3	 
			
	7.	 	Buyback or Sale of Shares	  	 	3	 
			
	7.1	 	Unfulfilled Vesting Condition	  	 	3	 
	7.2	 	Ceasing Employment before Restriction Conditions satisfied	  	 	4	 
			
	8.	 	Contracts of employment and other employment rights	  	 	4	 
			
	8.1	 	Discretion of Board	  	 	4	 
	8.2	 	Calculation of employee benefits	  	 	4	 
	8.3	 	No right to future employment or engagement	  	 	4	 
	8.4	 	Acknowledgment by Participant	  	 	4	 
			
	9.	 	Attorney	  	 	5	 
			
	10.	 	Powers of the Board	  	 	5	 
			
	10.1	 	Powers of the Board	  	 	5	 
	10.2	 	Indemnification	  	 	5	 
	10.3	 	Resolution to terminate, suspend, supplement or amend	  	 	6	 
			
	11.	 	General	  	 	6	 
			
	11.1	 	Severability	  	 	6	 
	11.2	 	Consents and approvals	  	 	6	 
	11.3	 	Governing law and jurisdiction	  	 	6	 
	11.4	 	Conflicting provisions	  	 	6	 

  
 i 

							
	12.	 	Definitions and interpretation	  	 	6	 
			
	12.1	 	Definitions	  	 	6	 
	12.2      	 	Interpretation	  	 	8	 
		
	Schedule 1 : Application Form	  	 	10	 

  
 ii 

 Employee Share Plan 
  

			
	Date adopted	  	7 January 2016

  

	1.	 The Plan 

  

	1.1	 Purpose 

The purpose of this Plan is to provide “Eligible Employees” (who may be an employee of, consultant to, or Director of the Group) with
an incentive to remain with the Group and to improve the longer-term performance of the Group and its returns to shareholders. It is intended that this Plan will enable the Group to retain and attract skilled and experienced staff and provide them
with the motivation to make the Group more successful. 
  

	1.2	 Commencement 

This Plan will take effect on and from such date as the Board may resolve. 

 

	1.3	 Termination or suspension of Plan 

 

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

 

	 	(b)	 If this Plan is terminated or suspended under clause 1.3(a) for any reason, the termination does not prejudice
any rights of the Participants which have accrued up to the time this Plan is terminated or suspended. For clarity where any Shares or entitlements have been issued prior to the date of termination or suspension, those Shares and entitlements (as
the case may be) will continue in full force on the terms of the plan as at the date of termination or suspension. 

  

	1.4	 Connection with other plans 

Unless the Board otherwise determines, participation in this Plan does not affect, and is not affected by, participation in any other incentive
or other plan operated by the Company unless the terms of that other plan provide otherwise. 
  

	2.	 Eligibility 

  

	2.1	 Participation by Eligible Employees 

The Board may determine at any time that any Eligible Employee is not entitled to participate in this Plan if the Eligible Employee’s
participation would be unlawful. 
  

	2.2	 Overseas Eligible Employees 

At the Board’s discretion, the Company may: 
  

	 	(a)	 allot or issue Shares to Participants who are resident outside of Australia; and 

 

	 	(b)	 make regulations for the operation of this Plan which are not inconsistent with this Plan to apply to
Participants who are resident outside of Australia. 

  
 1 

	3.	 Participation 

 

	3.1	 Invitation to participate 

Subject to this Plan, the Board may invite any Eligible Employee selected by it to complete an Application Form relating to a specified number
of Shares allocated to that Eligible Employee by the Board. 
  

	3.2	 Application Form 

The Board (or where a Loan is provided by a company in the Group, the Board of that company) must give to each Eligible Employee invited to
complete an Application Form, an Application Form together with the following information relating to the Shares allocated to the Eligible Employee: 
  

	 	(a)	 the name of the Eligible Employee; 

 

	 	(b)	 the date of allocation or intended date of allocation; 

 

	 	(c)	 the total number of Shares to be allocated; 

 

	 	(d)	 the Acquisition Price; 

 

	 	(e)	 where a Loan is provided, a Loan Agreement containing the terms and conditions of the Loan as determined by the
Board (or the Board of the company in the Group which provides a Loan); 

  

	 	(f)	 any other terms and conditions relating to the Shares which, in the opinion of the Board, are fair and
reasonable but not inconsistent with this Plan; and 

  

	 	(g)	 any other information or documents required to be notified by the Corporations Act. 

 

	3.3	 Participant bound by Application Form, Plan and Constitution 

By completing and returning the Application Form, a Participant irrevocably agrees to be bound by the terms of the Application Form, this Plan
and the Constitution. 
  

	4.	 Allocation of Shares 

 

	4.1	 Allocation of Shares 

The Board may allot and issue or transfer Shares to a Participant on acceptance of a duly signed and completed Application Form. 

 

	4.2	 Method of consideration 

The Board may determine the requisite form of consideration to purchase Shares, which may include cash, electronic funds transfer or Loan or
any combination of them. 
  

	4.3	 Holding Statements 

The Company must procure the issue of a holding statement to a Participant in respect of the Shares issued to that Participant. 

  
 2 

	5.	 Issue of Shares 

The number of Shares held by Participants pursuant to the Plan at any time must not exceed 10% of the total number of issued Shares in the
Company at the relevant time. 
  

	6.	 Nature of Shares 

 

	6.1	 General 

Subject to the terms of any applicable Loan (if any), a Participant is entitled to any rights which accrue to Shares held by the Participant
and may accept the rights and sell or otherwise deal with those rights in accordance with this Plan and the Application Form. 
  

	6.2	 Ranking 

The Shares will rank equally with all other fully paid ordinary shares on issue in the capital of the Company. 

 

	6.3	 Voting 

Holders of Shares issued under this Plan will be entitled to exercise all voting rights attaching to the Shares in accordance with the
Company’s constitution. 
  

	6.4	 Entitlement to dividends 

Holders of Shares issued under this Plan will be entitled to participate in dividends declared and paid by the Company in accordance with the
rights attaching to the Shares and the Company’s constitution. 
  

	6.5	 Transfer restrictions on Shares 

Other than as provided by this Plan, the Company must not register or permit registration of or a transfer of a Share unless and until the
Shares have Vested and, for that purpose, the Company may do all acts and things necessary to enforce any restrictions on the transfer of any Share and the relevant Participant is bound by those restrictions. 

 

	7.	 Buyback or Sale of Shares 

 

	7.1	 Unfulfilled Vesting Condition 

Where a Vesting Condition in relation to the Shares is not satisfied by the due date, or becomes incapable of satisfaction in the opinion of
the Board, the Company must, unless the Vesting Condition is waived by the Board and subject to the Corporations Act and the ASX Listing Rules, either: 
  

	 	(a)	 buy back and cancel the relevant Shares within 12 months of the date the Vesting Condition was not satisfied
(or became incapable of satisfaction) under Part 2J.1 of the Corporations Act at a price equal to the cash consideration paid by the Participant for the Shares; or 

 

	 	(b)	 arrange to sell the Shares as soon as reasonably practicable either on the ASX or to an investor who falls
within an exemption under Section 708 of the Corporations Act provided that the sale must be at a price that is no less than 

  
 3 

	 	
80% of the volume weighted average price at which Shares were traded on the ASX on the 10 trading days up to and including the trading day before the sale date, and apply the sale proceeds (Sale
Proceeds) in the following priority: 

  

	 	(i)	 first, to pay the Company any outstanding Loan Amount (if any) in relation to the Shares and the Company’s
reasonable costs in selling the Shares; 

  

	 	(ii)	 second, to the extent the Sale Proceeds are sufficient, to repay the Participant any cash consideration paid by
the Participant or Loan Amount repayments (including any cash dividends applied to the Loan Amount) made by or on behalf of the Participant; and 

  

	 	(iii)	 lastly, any remainder to the Company to cover its costs of managing the Plan. 

 

	7.2	 Ceasing Employment before Restriction Conditions satisfied 

Where the person who was initially offered the Shares ceases to be an Eligible Employee and, at that time, there are Vesting Conditions in
relation to those Shares that are unsatisfied or are incapable of satisfaction in the opinion of the Board (and they are not waived), unless the Participant becomes a Good Leaver, the Company must, subject to the Corporations Act and the ASX Listing
Rules, buy back and cancel or sell the Shares in accordance with clause 7.1 of this Plan. 
  

	8.	 Contracts of employment and other employment rights 

 

	8.1	 Discretion of Board 

It is a condition of this Plan that this Plan may be terminated at any time at the discretion of the Board and that no compensation under any
employment contract will arise as a result. 
  

	8.2	 Calculation of employee benefits 

The value of the Shares does not increase a Participant’s income for the purpose of calculating any employee benefits. 

 

	8.3	 No right to future employment or engagement 

Participation in this Plan does not confer on any Participant any right to future employment or engagement and does not affect any rights which
the Company may have to terminate the employment or engagement of any Participant. 
  

	8.4	 Acknowledgment by Participant 

It is acknowledged and accepted by each Participant that the terms of this Plan do not form part of the terms and conditions of the
Participant’s employment or other engagement contract, nor do the terms of this Plan constitute a contract or arrangement (including any related condition or collateral arrangement) in relation to the Participant’s employment or other
engagement contract. 

  
 4 

	9.	 Attorney 

By completing and signing the Application Form the Participant irrevocably appoints the person who from time to time occupies the position of
secretary of the Company or relevant company in the Group (where that company in the Group provides the Loan) (or the secretary’s authorised delegate) as his or her attorney to complete and execute any documents, including share transfers, and
to do all acts or things in his or her name on his or her behalf which may be necessary for the purpose of giving effect to this Plan, including power 
  

	 	(a)	 to transfer the shares which are the subject of the Application to a nominee of the Company or relevant company
in the Group (where that company in the Group provides the Loan) at the Acquisition Price per Share, or 

  

	 	(b)	 for the Company to undertake a buy back (at the Issue Price per Share) or capital reduction of those Shares
pursuant to the provisions of the Corporations Act 2001, 

 upon the basis that the Application Form is an irrevocable
direction to the Company (either on its own behalf or on behalf of a company in the Group (where that company in the Group provides the Loan)) to apply all proceeds that would have otherwise been provided or due to the Participant on a transfer, buy
back or capital reduction of the Loan Shares solely in satisfaction of the Outstanding Loan Balance. 
  

	10.	 Powers of the Board 

 

	10.1	 Powers of the Board 

This Plan will be managed by the Board, which will have power to: 
  

	 	(a)	 determine appropriate procedures for the administration of this Plan consistent with this clause 10.1;

  

	 	(b)	 resolve conclusively all questions of fact or interpretation arising in connection with this Plan;

  

	 	(c)	 determine matters falling for determination under this clause 10.1 in its discretion having regard to the
interests of and for the benefit of the Company; 

  

	 	(d)	 exercise the discretions conferred on it by this clause 10.1 or which may otherwise be required in relation to
this Plan, including determination of the Acquisition Price; and 

  

	 	(e)	 delegate to any one or more persons (for such period and on such conditions as it may determine) the exercise
of any of its powers or discretions arising under this Plan. 

  

	10.2	 Indemnification 

The Company must indemnify, and keep indemnified, to the full extent permitted by law, each person who is or has been a director or alternate
director of the Company against all proceedings, actions, claims, demands, losses, liabilities, damages, costs and expenses which may be made, brought against, suffered or incurred by the person arising directly or indirectly out of or in connection
with the administration of this Plan. 

  
 5 

	10.3	 Resolution to terminate, suspend, supplement or amend 

The Board has absolute and final determination in passing a resolution to terminate or suspend the operation of this Plan or to supplement or
amend this Plan in any way that the Board determines appropriate. 
  

	11.	 General 

  

	11.1	 Severability 

Any provision of this Plan which is invalid in any jurisdiction must, in relation to that jurisdiction: 

 

	 	(a)	 be read down to the minimum extent necessary to achieve its validity, if applicable; and 

 

	 	(b)	 be severed from this Plan in any other case, 

without invalidating or affecting the remaining provisions of this Plan or the validity of that provision in any other jurisdiction. 

 

	11.2	 Consents and approvals 

Where anything depends on the consent or approval of a party then, unless this Plan provides otherwise, that consent or approval may be given
conditionally or unconditionally or withheld, in the absolute discretion of that party. 
  

	11.3	 Governing law and jurisdiction 

 

	 	(a)	 This Plan is governed by and must be construed in accordance with the laws in force in the State of Western
Australia and the Commonwealth of Australia. 

  

	 	(b)	 The parties submit to the non-exclusive jurisdiction of the courts of
that State and the Commonwealth of Australia in respect of all matters arising out of or relating to this Plan, its performance or subject matter. 

  

	11.4	 Conflicting provisions 

If there is any conflict between the main body of this Plan and any schedules or annexures comprising it, then the provisions of the main body
of this Plan prevail. 
  

	12.	 Definitions and interpretation 

 

	12.1	 Definitions 

In this Plan: 
 Acquisition
Price means the issue price of the Shares pursuant to the Plan as determined by the Board at their absolute discretion, being a price per Share as determined by the Board (in its discretion) as at the time of the proposed issue of the Loan
Shares which equates to an arm’s length market price, taking into account among other factors (i) recent trading volumes, (ii) the price at which Shares traded over the relevant period and (iii) other factors determined by the
Board to be relevant; 

  
 6 

 Application Form means the form that the Board determines is to be used by an
Eligible Employee to apply for Shares under this Plan as set out in Schedule 1; 
 Bad Leaver means a Participant who ceases
employment, engagement or office with any Group Company in any of the following circumstances: 
  

	 	(a)	 the Participant’s employment or engagement is terminated, or the Participant is dismissed from office, due
to: 

  

	 	(i)	 serious and wilful misconduct; 

 

	 	(ii)	 material breach of the terms of any contract of employment, engagement or office entered into by the Company
(or another Group Company) and the Participant; 

  

	 	(iii)	 gross negligence; or 

 

	 	(iv)	 other conduct justifying termination of employment, engagement or office without notice either under the
Participant’s contract of employment, engagement or office, or at common law; 

  

	 	(b)	 the Participant ceases his or her employment, engagement or office for any reason and commences employment,
engagement or office, or otherwise acts, in breach of any post-termination restrictions contained in his or her contract of employment, engagement or office entered into by the relevant Group and the Participant; or 

 

	 	(c)	 the Participant is ineligible to hold his or her office for the purposes of Part 2D.6 of the Corporations Act.

 Board means the board of directors of the Company or a committee appointed by the board of directors of the
Company; 
 Business Day means a day that is not a Saturday, Sunday, public holiday or bank holiday in Melbourne, Victoria; 

Company means Avita Medical Limited ACN 058 466 523 of Level 9, The Quadrant, 1 William Street, Perth, Western Australia; 

Constitution means the constitution of the Company as may be amended from time to time; 

Corporations Act means the Corporations Act 2001 (Cth); 

Directors means the directors of the Company; 

Eligible Employee means an employee of, consultant to, or a Director or any member of the Group; 

Employee Share Scheme has the meaning provided under the Corporations Act; 

Good Leaver means a Participant who not a Bad Leaver and ceases employment, engagement or office with any Group Company due to: 

 

	 	(a)	 death or Total or Permanent Disability; 

  
 7 

	 	(b)	 bona fide Retirement from the workforce (unless the Retirement happens within six (6) months of the date
of the issue of the Plan Shares); 

  

	 	(c)	 bona fide Redundancy; 

 

	 	(d)	 Severe Financial Hardship; 

 

	 	(e)	 death of an immediate family member of the Participant (or Eligible Participant, as applicable);

  

	 	(f)	 substantial change in circumstances, out of the control of the Participant (or Eligible Participant, as
applicable) which affects the ability of the Participant (or Eligible Participant, as applicable) to perform his or her role with a Group Company; 

  

	 	(g)	 terminal illness of the Participant (or Eligible Participant); or 

 

	 	(h)	 or any other reason the Board determines in its sole and absolute discretion. 

Group means the Company and each Related Body Corporate of the Company; 

Loan means a loan made by the Company or a company in the Group to an Eligible Employee in for the purposes of the acquisition of Loan
Shares by a Participant; 
 Loan Agreement means any loan agreement between the Company or company in the Group and the Eligible
Employee evidencing the terms and conditions of the Loan; 
 Loan Share means a Share acquired with a Loan which has not been repaid
in full in accordance with the terms of the Loan Agreement; 
 Participant means an Eligible Employee (who may be an employee of,
consultant to, or a director of the Group) who has been invited to participate in this Plan and any other person who is nominated by that Eligible Employee and who is determined by the Board to be a Participant for the purposes of this Plan; 

Plan means this plan including the background, any schedules and any annexures; 

Related Body Corporate has the meaning given to that term in the Corporations Act; 

Shares means fully paid ordinary shares in the capital of the Company or any other securities issued in accordance with this Plan as the
context requires; and 
 Vested means, in relation to a Share, that the relevant Participant is entitled to become the registered
holder of that Share under clause 6.5 as a result of satisfaction of a Vesting Condition and Vesting has a corresponding meaning. 

Vesting Condition means any condition prescribed by the Company that must be satisfied before the Shares are Vested. 

 

	12.2	 Interpretation 

In this Plan, unless the context requires otherwise: 
  

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

 

	 	(b)	 a gender includes the other genders; 

  
 8 

	 	(c)	 the headings are used for convenience only and do not affect the interpretation of this Plan;

  

	 	(d)	 other grammatical forms of defined words or expressions have corresponding meanings; 

 

	 	(e)	 a reference to a document includes the document as modified from time to time and any document replacing it;

  

	 	(f)	 a reference to a party is to a party to this Plan and a reference to a party to a document includes the
party’s executors, administrators, successors and permitted assigns and substitutes; 

  

	 	(g)	 if something is to be or may be done on a day that is not a Business Day then it must be done on the next
Business Day; 

  

	 	(h)	 the word “person” includes a natural person, partnership, body corporate, association, governmental
or local authority, agency and any body or entity whether incorporated or not; 

  

	 	(i)	 the word “month” means calendar month and the word “year” means 12 months;

  

	 	(j)	 the words “in writing” include any communication sent by letter, facsimile transmission or email or
any other form of communication capable of being read by the recipient; 

  

	 	(k)	 a reference to a thing includes a part of that thing; 

 

	 	(l)	 a reference to all or any part of a statute, rule, regulation or ordinance (statute) includes that
statute as amended, consolidated, re-enacted or replaced from time to time; 

  

	 	(m)	 wherever “include”, “for example” or any form of those words or similar expressions is
used, it must be construed as if it were followed by “(without being limited to)”; 

  

	 	(n)	 money amounts are stated in Australian currency unless otherwise specified; 

 

	 	(o)	 a reference to time is to Melbourne, Victoria time; 

 

	 	(p)	 a reference to any agency or body, if that agency or body ceases to exist or is reconstituted, renamed or
replaced or has its powers or functions removed (defunct body), means the agency or body which performs most closely the functions of the defunct body; 

 

	 	(q)	 any agreements, representation, warranty or indemnity in favour of two or more parties (whether those parties
are included in the same defined term or not) is for the benefit of them jointly and separately; and 

  

	 	(r)	 any agreements, representation, warranty or indemnity by two or more parties (whether those parties are
included in the same defined term or not) binds them jointly and separately. 

  
 9 

 Schedule 1: Application Form 

  
 10

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