(1)

For the purposes of this Part, a share ratio contract is an agreement under which:

(a)

a particular person will be under an obligation to pay, or will have a right to receive, an amount of money; and

(b)

whether the obligation or right exists will depend on a state of affairs at a future time, where:

(i)

the future time is worked out in accordance with the agreement; and

(ii)

the state of affairs includes, in particular, a state of affairs relating to fluctuations in the relevant ratio; and

(c)

the amount will be calculated in a manner specified in accordance with the agreement by reference to that state of affairs;

whether or not the agreement:

(d)

has any other effect; or

(e)

may be varied or discharged before that future time.

(2)

For subparagraph (1) (b) (ii), a relevant ratio is worked out in accordance with the ratio:

where:

P is the price or value of a particular share listed for quotation on the Exchange, expressed in cents; and

N is the relevant level of 1 of the following indexes expressed as a number:

(a)

the Australian Stock Exchange All Ordinaries Share Price Index;

(b)

the Australian Stock Exchange Fifty Leaders Share Price Index;

(c)

the Australian Stock Exchange Twenty Leaders Share Price Index;

(d)

the Australian Stock Exchange All Industrials Share Price Index;

(e)

the Australian Stock Exchange All Resources Share Price Index;

(f)

the Australian Stock Exchange Gold Share Price Index.

Subdivision B Application of Chapters 6D and 7 of the Act to share ratio contracts