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Product Disclosure Statement

Content 1. 2. 3. 4. 5. 6. Purpose Issuer Contact Details General Product Information Vanilla Foreign Exchange Options Structured Flexible Foreign Exchange Options i] Collar Foreign Exchange Options ii] Knock Out Foreign Exchange Options iii] Knock In Foreign Exchange Options 7. 8. 9. Cost Of A Foreign Exchange Option Confirmation Of Instructions Cancellations Or Early Termination Of A Foreign Exchange Option

10. Terms & Conditions 11. Applying For Foreign Exchange Options 12. Benefits Of Foreign Exchange Options 13. Risks Associated With Foreign Exchange Options 14. Customer Trading Limits And Cash Deposits 15. Dispute Resolution 16. Privacy Statement 17. Taxation 18. Telephone conversations 19. Staff incentives 20. Amendments 21. Termination 22. Key Terms 23. Updates relating to the PDS

Product Disclosure Statement dated 1st November 2007

1. Purpose
This Product Disclosure Statement (PDS) is a legal document containing important information and terms and conditions relating to Travelex Foreign Exchange Options The purpose of this PDS is to provide You with sufficient information to assist You to: 	 •	Decide	if	a	Foreign	Exchange	Option	is	suitable	for	Your	needs; 	 •	Learn	more	about	the	Foreign	Exchange	Options	We	offer; 	 •	Compare	Foreign	Exchange	Options	with	similar	products. Please read this PDS carefully before making a decision to purchase any of these products. This PDS has not been lodged, and is not required to be lodged with the Australian Securities and Investments Commission (ASIC). Travelex will notify ASIC that this PDS is in use in accordance with the Corporations Act. ASIC and its officers take no responsibility for the contents of this PDS. The information set out in this PDS is general in nature and has been prepared without taking into account Your objectives, financial situation or needs. Before dealing in a Foreign Exchange Option You should consider whether it is appropriate, having regard to Your own objectives, financial situation and needs. A Foreign Exchange Option may be suitable for You if You have a good understanding of foreign exchange markets and the way that option products work. If You are not confident about Your understanding of these products, We recommend You seek independent financial advice before making any decision about our product. Key terms used in this PDS are explained in part 22.

2. Issuer
Travelex Limited is the Issuer of this financial product to You. This PDS has been prepared by Travelex Limited ABN 36 004 179 953 AFSL Number 222444. Further information about Travelex and the Travelex group of companies can be found at www.travelex.com.au

3. Contact Details
If You have any questions or need more information, please contact Travelex General Enquiries on 1300 727 113, Your Travelex Commercial Foreign Exchange branch or refer to Our website on www.travelex.com.au You may also contact Us by post at the following address: Travelex Limited Level 12 1 Margaret Street Sydney NSW 2000

4. General Product Information
There are a number of ways to manage Foreign Exchange Risk. A traditional method is through the Forward Exchange Contract, which offers exchange rate protection (a PDS is available for this product and may be acquired by contacting your Travelex Commercial Foreign Exchange branch or by visiting our website www.travelex.com.au). Foreign Exchange Options are also tools to assist in managing Foreign Exchange Risk. They bring a broader range of Foreign Exchange Risk management alternatives to customers. For example, an importer paying for goods or services in foreign currency would probably consider an appreciating Australian dollar favourable. This is because as the Australian dollar appreciates, the importer would need to exchange less Australia dollars to obtain the required foreign currency amount. The same importer may also seek protection against a depreciating Australian dollar, because of the potential of an increased cost in the final price of the goods or services. Similarly, an exporter based in Australia who receives foreign currency in payment for goods or services would probably consider a depreciating Australian dollar favourable. This is because as the Australia dollar depreciates, the exporter would be able to receive more Australian dollars from exchanging the foreign currency amount but the same exporter may also seek protection against an

appreciating Australian dollar, because of the potential for incurring a loss as a result of a fall in the Australian dollar value of the payment received. This PDS explains differing types of Foreign Exchange Option products as offered by Travelex. These include: – Vanilla Foreign Exchange Options, and – Structured Flexible Foreign Exchange Options.

5. Vanilla Foreign Exchange Options
A Vanilla Foreign Exchange Option is an agreement between two parties (‘the buyer’ of the Foreign Exchange Option and ‘the seller’ of the Foreign Exchange Option) that gives the buyer of the Foreign Exchange Option the right, but not the obligation, to exchange a specified amount (‘face Value or amount’) of one currency for another currency (Currency Pair) at a nominated foreign exchange rate (Strike Rate) on a nominated future date (Expiry Date). The date of settlement (Delivery Date) for a Vanilla Foreign Exchange Option will generally be 2 clear business days after the Expiry Date. If You decide to enter into a Vanilla Foreign Exchange Option with Us, You will need to tell Us the amount, the Currency Pair, Strike Rate and the Expiry Date. Currently Travelex only offers “European Style” Vanilla Foreign Exchange Options, which means that you may only Exercise the Vanilla Foreign Exchange Option at the Expiry Time on the Expiry Date, which you have agreed with Us. It cannot be exercised at any time before or after the Expiry Time on the Expiry Date. ˙A Vanilla Foreign Exchange Option involves the payment of a Premium from the buyer of the Vanilla Foreign Exchange Option to the seller of the Vanilla Foreign Exchange Option. The Premium is payable by the buyer to the seller 2 clear business days after the Trade Date. The seller of the Vanilla Foreign Exchange Option determines the Premium, however, if You are selling a Vanilla Foreign Exchange Option to Us We will advise You of the amount of Premium We will pay for that Vanilla Foreign Exchange Option. To find out more about the Premium, refer to Section 7, Cost of a Foreign Exchange Option. (a) Vanilla Put Foreign Exchange Options (Vanilla Put) A Vanilla Put provides the buyer with the right, but not the obligation, to sell (‘put’ in the market) a specified amount of one currency for another currency at a nominated Strike Rate. The buyer will pay a Premium to the seller of the Vanilla Put. This Premium will be payable by the buyer to the seller on the day 2 business days after the Trade Date for the Vanilla Put. This Premium is non refundable regardless of whether the Vanilla Put is Exercised. Example: The example below is for information purposes only and uses rates and figures that We have selected to demonstrate how the Vanilla Put works. In order to assess the merits of any particular Vanilla Put, You should use the actual rates and figures quoted to You at the relevant time. Information provided by the client: 	 •	An	importer	wants	to	hedge	USD	against	AUD	for	a	three-month	Delivery	Date. 	 •		 he	importer	wants	to	protect	against	any	unfavourable	currency	movements	but	benefit	from	favourable	currency	 T movements. 	 •		 he	importer	decides	to	buy	an	AUD	Vanilla	Put	against	the	USD	as	a	Foreign	Exchange	Risk	management	exposure	 T technique. 	 •	The	importer	nominates	the	Strike	Rate. 	 •	The	importer	nominates	the	Expiry	Date. 	 •	The	importer	nominates	the	face	value	amount. Market conditions on Trade Date: 	 •	Spot	Exchange	Rate:	0.7500 	 •	Forward	Exchange	Rate:	0.7440 	 •	Strike	Rate:	0.7400 	 •	Face	value:	USD	100,000 	 •	Expiry	Date:	three	months	after	Trade	Date 	 •	Style:	European 	 •	Premium	calculated	by	Travelex.

Outcome on the Expiry Date at Cut Off Time: 	 •		f	the	Spot	Exchange	Rate	is	greater	than	0.7400,	the	importer	will	let	the	Vanilla	Put	lapse	(And	use	AUD	to	buy	USD	at	 I prevailing	Spot	Exchange	Rate	on-market). 	 •		f	the	Spot	Exchange	Rate	is	less	than	0.7400,	the	importer	would	Exercise	the	Vanilla	Put	and	on	the	Delivery	Date	 I exchange AUD for USD at the agreed exchange rate of 0.7400. (b) Vanilla Call Foreign Exchange Options (Vanilla Call) A Vanilla Call provides the buyer with the right, but not the obligation, to buy (‘call’ in the market) a specified amount of one currency for another currency at a nominated Strike Rate. The buyer will pay a Premium to the seller of the Vanilla Call. This Premium is non refundable regardless of whether the Vanilla Call is Exercised. Example: The example below is for information purposes only and uses rates and figures that We have selected to demonstrate how the Vanilla Call works. In order to assess the merits of any particular Vanilla Call, You should use the actual rates and figures quoted to You at the relevant time. Information provided by the client: 	 •		 n	exporter	wants	to	hedge	USD	against	AUD	for	a	three-month	Delivery	Date. A 	 •		 he	exporter	wants	to	protect	against	any	unfavourable	currency	movements	but	benefit	from	favourable	currency	 T movements. 	 •		 he	exporter	decides	to	buy	an	AUD	Vanilla	Call	against	the	USD	as	a	Foreign	Exchange	Risk	management	exposure	 T technique. 	 •	The	exporter	nominates	the	Strike	Rate. 	 •	The	exporter	nominates	the	Expiry	Date. 	 •	The	exporter	nominates	the	face	value	amount. Market conditions on Trade Date: 	 •	Spot	Exchange	Rate:	0.7500 	 •	Forward	Exchange	Rate:	0.7445 	 •	Strike	Rate:	0.7600 	 •	Face	value:	USD	100,000 	 •	Expiry	Date:	three	months	after	Trade	Date 	 •	Style:	European	 	 •	Premium	calculated	by	Travelex. Outcome on Expiry Date at Cut Off Time: 	 •		f	the	Spot	Exchange	Rate	is	less	than	0.7600,	the	exporter	will	let	the	Vanilla	Call	lapse		(And	use	USD	to	buy	AUD	at	 I prevailing	Spot	Exchange	Rate	on-market). 	 •		f	the	Spot	Exchange	Rate	is	greater	than	0.7600,	the	exporter	would	Exercise	the	Vanilla	Call	and	on	the	Delivery	Date	 I exchange USD for AUD at 0.7600.

6. Structured Flexible Foreign Exchange Options
Structured Flexible Foreign Exchange Options is a term that describes a group of foreign exchange products that have been developed as Foreign Exchange Risk management alternatives to Forward Exchange Contracts and Vanilla Foreign Exchange Options. A Structured Flexible Foreign Exchange Option is an agreement between the ‘buyer’ and the ‘seller’ of the Foreign Exchange Option structure to exchange a specified amount (the ‘face value’ or amount) of one currency for another currency at a Foreign Exchange Rate (determined in accordance with the mechanisms set out in the agreement made between the buyer and the seller) at an agreed time (Cut Off Time) on an agreed date (Expiry Date). The exchange of currencies generally then takes place two clear business days after the Expiry Date on the Delivery Date. The mechanism(s) for determining the applicable Foreign Exchange Rate and other conditions of the Contract (and in some instances the cost) will depend on the particular product You acquire. The following information describes how these factors are determined in relation to each structured flexible product.

Travelex may add, delete or vary the Structured Flexible Foreign Exchange Option products We offer at any time. In that event, if it is necessary to do so, the information in this PDS will be updated (Refer to Part 23). We currently offer the following types of Structured Flexible Foreign Exchange Options. Please note that the precise structure of these options can be complex and varies considerably. The information below has been simplified to give you an understanding of the operation of the different structures. Full details of any structure can be explained to you by one of Our Risk Solution Executives. (I) COLLAR FOREIGN EXCHANGE OPTIONS CONTRACTS (COLLARS) (a) General Product Information A Collar is a Foreign Exchange Option structure involving two options, that protects You, on the Expiry Date, against the risk that the Spot Exchange Rate is less favourable to You than the nominated Worst Case Strike Rate, but also allows You to benefit from a favourable move in the Spot Exchange Rate up to the Best Case Strike Rate. A Collar is commonly known as a “No Premium” structure because no Premium is generally paid to Us. However, customers may choose to pay a Premium, which will generally have a favourable impact on the terms of the Collar we offer. To find out more about pricing, refer to Section 6 – Cost of a Foreign Exchange Option. How a Collar Works If the Spot Exchange Rate at the Expiry Time on the Expiry Date is less favourable to You than the Worst Case Strike Rate, the contract will be automatically Exercised at the Worst Case Strike Rate. If the Spot Exchange Rate at the Expiry Time on the Expiry Date is more favourable to You than the Best Case Strike Rate, the contract will be automatically Exercised at the Best Case Strike Rate. If the Spot Exchange Rate at the Expiry Time on the Expiry Date is between the Worst Case Strike Rate and the Best Case Strike Rate, You will retain the right to buy or sell the currency on market at the prevailing Spot Exchange Rate. (b) Examples Of Collars The examples below are for information purposes only and use rates and figures that We have selected to demonstrate how a Collar works. In order to assess the merits of any particular Collar, You will need to use the actual rates and figures quoted to You at the relevant time. Importer Example For example, an Australian importer wants to buy USD100, 000 in 6 months time. The importer believes the Spot Exchange Rate may appreciate marginally over this period. Market conditions on Trade Date: Spot Exchange Rate: 0.7620 Forward Exchange Rate: 0.7490 Importer enters into Collar with the following terms: Strike Rate: 0.7450 (Worst case) Strike Rate: 0.7650 (Best Case) Term: 6 months. No Premium is payable in this example. The importer enters into a Collar with a Worst Case Strike Rate of 0.7450 and a Best Case Strike Rate of 0.7650. If the Spot Exchange Rate is below the Worst Case Strike Rate of 0.7450 at the Expiry Time on the Expiry Date, the contract will be automatically Exercised at the Worst Case Strike Rate. If the Spot Exchange Rate is above the Best Case Strike Rate of 0.7650 at the Expiry Time on the Expiry Date, the contract will be automatically Exercised at the Best Case Strike Rate. If the Spot Exchange Rate was between 0.7450 and 0.7650 at the Expiry Time on the Expiry Date the importer retains the right to buy or sell the currency on market at the prevailing Spot Exchange Rate.

In summary, the importer benefits from a favourable move in the Spot Exchange Rate up to the Best Case Strike Rate and is protected against the Spot Exchange Rate falling below the Worst Case Strike Rate. Outcomes at Expiry under above example
Importer Pays the following in AUD In exchange for USD100,000 AUD134,228.18 This will depend on the Spot Exchange Rate. AUD130,718.95

Spot Exchange Rate at Expiry Time on Expiry Date Below 0.7450 AUD/USD above 0.7450 and below 0.7650 AUD/USD Above 0.7650

Rate at which currency bought or sold 0.7450 prevailing Spot Exchange Rate 0.7650

Exporter Example An Australian exporter has USD100, 000 to sell in 6 months time and believes the Spot Exchange Rate will depreciate marginally over this period. Market conditions on Trade Date: Spot Exchange Rate: 0.7850 Forward Exchange Rate: 0.7750 Exporter enters into Collar with the following terms: Strike Rate: 0.7800 (Worst Case) Strike Rate: 0.7600 (Best Case) Term: 6 months. No Premium is payable in this example. The exporter enters into a Collar with a Worst Case Strike Rate of 0.7800 and a Best Case Strike Rate of 0.7600. If the Spot Exchange Rate is above the Worst Case Strike Rate of 0.7800 at the Expiry Time on the Expiry Date the Collar will automatically Exercise at the Worst Case Strike Rate. If the Spot Exchange Rate is below the Best Case Strike Rate of 0.7600 at the Expiry Time on the Expiry Date, the Collar will automatically Exercise at the Best Case Strike Rate. If the Spot Exchange Rate was between the Worst Case Strike Rate of 0.7800 and the Best Case Strike Rate of 0.7600 at the Expiry Time on the Expiry Date, the exporter would retain the right to buy or sell the currency on market at the prevailing Spot Exchange Rate. In summary, the exporter benefits from a favourable movement in the Spot Exchange Rate down to the Best Case Strike Rate and is protected against the Spot Exchange Rate rising over the Worst Case Strike Rate. Outcomes at Expiry under above example
Exporter receives the following in AUD in exchange for USD100,000 AUD131,578.94 This will depend on the Spot Exchange Rate AUD128,205.12

Spot Exchange Rate at Expiry Time on Expiry Date Below 0.7600 AUD/USD above 0.7600 and below 0.7800 AUD/USD Above 0.7800

Rate at which currency bought or sold 0.7600 Prevailing Spot Exchange Rate 0.7800

(II) KNOCK OUT FOREIGN EXCHANGE OPTION (KNOCK OUT) (a) General Product Information. The Knock Out is a Foreign Exchange Option structure involving the use of two options. It protects you against the risk that the Spot Exchange Rate at the Expiry Time on the Expiry Date is unfavourable to you when compared to a nominated Worst Case

Strike Rate with the added benefit that (conditional on the currency trading at a nominated Trigger Level Rate during the Term) you retain the right to buy or sell the currency at the Expiry Time on the Expiry Date at the prevailing Spot Exchange Rate. As a result, subject to the Trigger Rate being traded during the Term, if the prevailing Spot Exchange Rate at the Expiry Time on the Expiry Date is more favourable to you than the Worst Case Strike Rate, you can trade on market at the prevailing Spot Exchange Rate. If the prevailing Spot Exchange Rate is less favourable to you than the Worst Case Strike Rate then you are protected at the Worst Case Strike Rate. If the Trigger Level Rate is never reached during the Term the option will automatically Exercise at the Worst Case Strike Rate. The Knock Out is generally a no Premium structure. However, customers may choose to pay a Premium which will generally have a favourable impact on the terms of the Knock Out we offer You. (b) Examples The examples below are for information purposes only and use rates and figures that We have selected to demonstrate how the Knock Out works. In order to assess the merits of any particular Knock Out, You would need to use the actual rates and figures quoted to You at the relevant time. Importer Example An importer wants to buy US Dollars (USD) in six months. The importer believes that the Spot Exchange Rate will fall initially, but will rise by the Expiry Date. Market conditions on Trade Date: Spot Exchange Rate: 0.7675 Forward Exchange Rate: 0.7560 Importer enters into Knock Out with the following terms: Strike Rate: 0.7500 (Worst Case) Trigger Rate: 0.7400 Term: 6 months No Premium is payable in this example. The importer enters into a Knock Out with a Worst Case Strike Rate of 0.7500 and a Trigger Rate of 0.7400. If the Spot Exchange Rate trades at the Trigger Rate at any time before the Expiry Time on the Expiry Date, the importer will benefit if the Spot Exchange Rate is above the Worst Case Strike Rate at the Expiry Time on the Expiry Date, because the importer can trade on market at the higher Spot Exchange Rate. If the Spot Exchange Rate never trades at the Trigger Rate, the contract will be automatically exercised at the Worst Case Strike Rate at the Expiry Time on the Expiry Date. If the Spot Exchange Rate is below the Worst Case Strike Rate at the Expiry Time on the Expiry Date, whether or not the Spot Exchange Rate has traded at the Trigger Rate, the importer is protected at the Worst Case Strike Rate. In summary, if the Trigger Rate is reached at any time, the importer will benefit if the Spot Exchange Rate is above the Worst Case Strike Rate at the Expiry Time on the Expiry Date. Otherwise the contract will be exercised automatically at the Worst Case Strike Rate. Outcomes at Expiry under above example
If Spot Exchange Rate at Expiry Time on Expiry Date is below 0.7500 Rate at which currency bough or sold is as follows: AUD trades at 0.7400 at any time prior to Expiry Time AUD never trades at 0.7400 0.7500 0.7500 If Spot Exchange Rate at Expiry Time on Expiry Date is above 0.7500 Rate at which currency bough or sold is as follows: Spot Rate 0.7500

Exporter Example An exporter wants to sell USD in six months time. The exporter believes that the Spot Exchange Rate will rise initially, but will fall by the Expiry Date. Market conditions on Trade Date: Spot Exchange Rate: 0.7680 Forward Exchange Rate: 0.7570 Exporter enters into Knock Out with the following terms: Strike Rate: 0.7700 (Worst case) Trigger Rate: 0.7800 Term: 6 months No Premium is payable in this example. The exporter enters into a Knock Out with a Worst Case Strike Rate of 0.7700 and a Trigger Rate of 0.7800. If the Spot Exchange Rate trades at the Trigger Rate at any time before the Expiry Time on the Expiry Date, the exporter will benefit if the Spot Exchange Rate is below the Worst Case Strike Rate at the Expiry Time on the Expiry Date, because the exporter can trade on market at the lower Spot Exchange Rate. If the Spot Exchange Rate never trades at the Trigger rate, the contract will be exercised automatically at the Worst Case Strike Rate at the Expiry Time on the Expiry Date. If the Spot Exchange Rate is above the Worst Case Strike Rate at the Expiry Time on the Expiry Date, whether or not the Spot Exchange Rate has traded at the Trigger Rate, the importer is protected at the Worst Case Strike Rate. In summary, if the Trigger Rate is reached at any time, the exporter will benefit if the Spot Exchange Rate is below the Worst Case Strike Rate at the Expiry Time on the Expiry Date. Otherwise the contract will be automatically exercised at the Worst Case Strike Rate. Outcomes at Expiry under above example
If Spot Exchange Rate at Expiry Time on Expiry Date is below 0.7700 Rate at which currency bough or sold is as follows: AUD trades at 0.7800 at any time prior to Expiry Time AUD never trades at 0.7800 Spot Rate 0.7700 If Spot Exchange Rate at Expiry Time on Expiry Date is above 0.7700 Rate at which currency bough or sold is as follows: 0.7700 0.7700

(iii) KNOCK IN FOREIGN EXCHANGE OPTION (KNOCK IN). (a) General Product Information. The Knock In is a Foreign Exchange Option structure involving the use of two options. It protects You against the risk that the Spot Exchange Rate at the Expiry Time on the Expiry Date is unfavourable to You when compared to a nominated Worst Case Strike Rate with the added benefit that (unless the currency trades at a nominated Trigger Level Rate during the Term) you retain the right to buy or sell the currency at the Expiry Time on the Expiry Date at the prevailing Spot Exchange Rate. As a result, subject to the Trigger Rate never trading during the Term, if the prevailing Spot Exchange Rate at the Expiry Time on the Expiry Date is more favourable to you than the Worst Case Strike Rate, You can trade on market at the prevailing Spot Exchange Rate. If the prevailing Spot Exchange Rate is less favourable to you than the Worst Case Strike Rate then You are protected at the Worst Case Strike Rate. If the Trigger Level Rate is reached during the Term the option will automatically Exercise at the Worst Case Strike Rate. The Knock In is generally a no Premium structure. However, customers may choose to pay a Premium which will generally have a favourable impact on the terms of the Knock In we offer You. (b) Examples The examples below are indicative only and use rates and figures that We have selected to demonstrate how the Knock In works.

In order to assess the merits of any particular Knock In, You would need to use the actual rates and figures quoted to You at the relevant time. Importer Example An importer wants to buy US dollars (USD) in six months against AUD. Market conditions on Trade Date: Spot Exchange Rate: 0.7675 Forward Exchange Rate: 0.7560 Importer enters into Knock In with the following terms: Strike rate: 0.7500 (Worst Case) Trigger Rate: 0.8000 Term: 6 months No Premium is payable in this example. Expecting a mild appreciation in the Spot Exchange Rate, the importer enters into a Knock In with a Worst Case Strike Rate of 0.7500 and a Trigger Rate of 0.8000. The importer will benefit from any appreciation in the exchange rate provided the Spot Exchange Rate never trades at the Trigger Rate. If the Spot Exchange Rate trades at the Trigger Rate, the exchange rate at which the contract will be automatically Exercised will be the Worst Case Strike Rate. In summary, the importer benefits from any favourable exchange rate move provided the Trigger Rate never trades. If the Trigger Rate trades, the exchange rate is fixed at the Worst Case Strike Rate. Outcomes at Expiry under above example
If Spot Exchange Rate at Expiry Time on Expiry Date is below 0.7500 Rate at which currency bough or sold is as follows: AUD never trades at 0.800 AUD trades at 0.800 at any time prior to Expiry Time 0.7500 0.7500 If Spot Exchange Rate at Expiry Time on Expiry Date is above 0.7500 Rate at which currency bough or sold is as follows: Spot Rate 0.7500

Exporter Example. An exporter wants to sell USD in six months and receive AUD. Market Conditions on Trade Date: Spot Exchange Rate: 0.7680 Forward Exchange Rate: 0.7570 Exporter enters into Knock In with the following terms: Strike Rate: 0.7780 (Worst Case) Trigger Rate: 0.7000 Term: 6 months No Premium is payable in this example. Expecting a mild depreciation in the Spot Exchange Rate, the exporter enters into a Knock In with a Worst Case Strike Rate of 0.7780 and a Trigger Rate of 0.7000. The exporter will benefit from any depreciation in the Spot Exchange Rate provided the Spot Exchange Rate never trades at the Trigger Rate. If the Spot Exchange Rate trades at the Trigger Rate, the exchange rate at which the contract will be Exercised will be the Worst Case Strike Rate. In summary, the exporter benefits from any favourable exchange rate move provided the Trigger Rate never trades. However, if the Trigger Rate trades, the exchange rate is fixed at the Worst Case Strike Rate.

Outcomes at Expiry under above example
If Spot Exchange Rate at Expiry Time on Expiry Date is below 0.7780 Rate at which currency bough or sold is as follows: AUD never trades at 0.7000 AUD trades at 0.7000 at any time prior to Expiry Time Spot Rate 0.7780 If Spot Exchange Rate at Expiry Time on Expiry Date is above 0.7780 Rate at which currency bough or sold is as follows: 0.7780 0.7780

7. Cost Of A Foreign Exchange Option
(a) Vanilla Put or Call Foreign Exchange Option In	return	for	Travelex	selling	to	You	a	Vanilla	Put	or	Call	Foreign	Exchange	Option,	You	pay	Travelex	a	non-refundable	Premium.	We	 calculate	the	Premium	on	a	transaction-by-transaction	basis.	We	will	advise	You	the	Premium	to	be	paid	for	Your	Vanilla	Foreign	 Exchange Option before You enter into the transaction and will confirm the Premium on your Confirmation. The Premium can be paid in either Australian dollars (AUD) or in one of the currencies in the Currency Pair. Premiums are payable within 2 business days of the Trade Date. When calculating any Premium, Travelex takes into account several factors including: 	 •	The	amount,	the	Term	and	the	Strike	Rate 	 •		 urrent	market	foreign	exchange	rates	and	the	interest	rates	of	the	countries	whose	currencies	are	being	exchanged. C 	 •	Market	volatility. (b) Structured Flexible Foreign Exchange Options Generally, Travelex, in consultation with You, sets the Strike Rate and the Trigger Rate at particular levels in order to create a “No Premium” cost structure. When setting those rates, Travelex takes into account a variety of factors, similar to those used in calculating Premiums: 	 •	The	amount,	the	Term,	the	Strike	Rate	and	Trigger	Rate	selected 	 •		 urrent	market	foreign	exchange	rates	and	the	interest	rates	of	the	Countries	whose	currencies	are	being	exchanged. C 	 •	Market	volatility. Where	a	“No	Premium”	structure	is	created,	there	is	no	up-front	Premium	payable	for	a	Structured	Flexible	Foreign	Exchange	 Option.	If	however,	You	wish	to	nominate	an	improved	Strike	Rate	and/or	Trigger	Rate,	an	up-front	non-refundable	Premium	may	 be payable. Travelex will calculate the amount of the Premium and advise You of the amount before You enter into the transaction. Where applicable, Premiums must be paid in cleared funds within 2 business days of the Trade Date. You may also need to pay some costs on the Delivery Date depending on the method by which delivery is effected, for example, by wire or draft. These costs are in addition to the costs described above. You may be charged some transaction fees upon settlement or delivery of a FET if this is carried out via a telegraphic transfer or draft. Transaction fees for telegraphic transfers and Drafts are in addition to the costs of a FET detailed above. The	level	of	transaction	fee	we	charge	you	for	these	services	will	vary	based	on:		the	size	of	the	transaction;	the	relevant	currency	 involved;	how	often	you	transact	with	Us	and	the	country	to	which	the	funds	are	being	sent. We will advise you of the fee prior to You establishing a trading relationship with Us. We may vary these fees from time to time and if We do so we will provide You with prior notice in Writing. In addition to the fees charged to You by Travelex for sending payments by Telegraphic Transfer, any correspondent, intermediary or beneficiary bank(s) which facilitates the sending or payment of a telegraphic transfer may impose their own additional fees or charges which may be deducted from the amount paid to You or Your beneficiary. In relation to Drafts please consult the Drafts PDS which is available by contacting Travelex or by visiting Our website at www.travelex.com.au. Travelex charges no other fees for establishing Foreign Exchange Options.

8. Confirmation Of Instructions
We will send You a Confirmation containing details of Your Instructions for each Foreign Exchange Option transacted. This Confirmation	is	intended	to	reflect	the	transaction	which	has	been	entered	into	between	You	and	Us.		However,	there	is	no	coolingoff period in relation to Foreign Exchange Options and the transaction between You and Us is entered into and binding once We have accepted Your Instruction and is not dependent on Us sending You or You signing and acknowledging a Confirmation. In the instance where an Instruction or Confirmation contains an error or omission You must notify Us of the error or omission immediately. If such notice is not communicated to Us within 1 business day we will assume that the Confirmation is correct in all respects and act in accordance with the details in the Confirmation.

9. Cancellation or Early Termination of a Foreign Exchange Option
You may ask Us to terminate a Foreign Exchange Option at any time up to Expiry Time on the Expiry Date. Travelex will then provide You with a quote for the cost of its cancellation. These costs may be significant and may not be in Your favour. Travelex’s quote will be based on a consideration of the same variables (the applicable rates, Currency Pair, amount, Term, Expiry Date and market volatility) used when pricing or structuring the original Foreign Exchange Option. These variables will then be adjusted for the prevailing market rates over the remaining term of the Foreign Exchange Option. We will also consider the cost of reversing or offsetting Your original transaction. When doing this Travelex takes into account the current market rates that apply to any offsetting transactions. If You accept the quote, the Foreign Exchange Option will be cancelled. You may lose money as a result of an early termination.

10. Terms And Conditions
Each Travelex Foreign Exchange Option is subject to Our “Terms and Conditions for Foreign Exchange Trading”, Our “General Terms and Conditions” and Our “Terms and Conditions for Options”. You will be required to sign these documents before You enter into any Foreign Exchange Option. The following restrictions are also placed by Us on the sale or issue of a Foreign Exchange Option: 	 •		ndividual	Foreign	Exchange	Options	will	usually	be	restricted	to	a	maximum	amount	(face	value)	of	USD10M	and	a	 I minimum of USD100k, or local currency equivalent. 	 •		 oreign	Exchange	Options	cannot	be	pre-delivered	or	extended.	The	Expiry	Date	is	fixed	and	cannot	be	extended.	We	can,	 F if necessary, restructure any Foreign Exchange Option structure in consultation with You. Restructuring may involve a fee being paid to Us.

11. Applying For Foreign Exchange Options
When considering your application for Foreign Exchange Option trading we may ask you to provide Us with details of your financial circumstances. You will also be required to complete, sign and return the following documents to Us before entering into any Foreign Exchange Option with Us: 	 	 	 	 •		 pplication	for	Foreign	Exchange	Trading	which	incorporates	Our	Terms	and	Conditions	for	Foreign	Exchange	Trading	and	 A General	Terms	&	Conditions; •	Terms	and	Conditions	for	Options; •	A	‘Direct	Debit	Request’	Form	(if	applicable);	and •	An	‘Authority	to	Accept	Fax	Instructions	and	Indemnity’	Form	(if	applicable).

Upon receipt of these completed and signed documents We will conduct an accreditation process, which will incorporate a ‘Know Your Customer’ component with a view to accrediting You as a Travelex customer and granting You a Trading Limit (if requested by You). If you are accredited by Travelex, You may then apply to enter into Foreign Exchange Options with Us which will be subject to the terms and conditions referred to above. You should contact Your Travelex Foreign Exchange Dealer for further information in relation to Trading Limits and Cash Deposits (if applicable).

12. Benefits Of Foreign Exchange Options
	 	 	 	 	 •		 oreign	Exchange	Options	have	benefits	for	importers	and	exporters	alike	and	are	used	to	hedge	Foreign	Exchange	Risk	for	 F a future date •			 oreign	Exchange	Options	may	provide	participation	in	favourable	Foreign	Exchange	Rate	movements	(subject	to	product	 F used); •		 oreign	Exchange	Options	enable	You	to	protect	against	unfavourable	Foreign	Exchange	Rate	movements; F •		 he	strike	price	(rate),	Expiry	Date,	Trigger	Rate	and	amount	can	all	be	tailored	to	suit	Your	needs; T •		 tructured	Foreign	Exchange	Options	may	reduce	or	eliminate	Premium	costs	associated	with	Vanilla	Foreign	Exchange	 S Options.

13. Risks Associated With Foreign Exchange Options
This outline of risks does not purport to disclose all of the risks relating to Foreign Exchange Options. A Foreign Exchange Option is considered by Us to be suitable only for persons who understand and accept the risks involved in transacting financial products involving Foreign Exchange Rates. Travelex recommends that You obtain independent financial and legal advice before entering into an Foreign Exchange Option. Some of the risks associated with Foreign Exchange Options are: 	 •		 ny	Premium	paid	is	not	refundable	regardless	of	whether	the	Foreign	Exchange	Option	is	Exercised. A 	 •		 he	value	of	any	currency,	including	AUD	as	well	as	foreign	currencies,	may	be	affected	by	complex	political	and	economic	 T factors applicable to the country of that currency. As the price of an Foreign Exchange Option is dependent upon the value of both currencies relative to other currencies, generally fluctuations in the underlying foreign currency will affect exchange rates and the prices of the Foreign Exchange Option even if the value of the trading currency remains relatively constant. 	 •		f	You	wish	to	cancel	the	Foreign	Exchange	Option,	movements	in	market	rates	and	the	passage	of	time	may	result	in	Your	 I Foreign Exchange Option having a reduced value or even no value. 	 •	There	is	no	cooling	off	period. 	 •		 epending	on	the	market	circumstances	on	the	Expiry	Date,	the	total	cost	of	a	transaction	to	You	(which	includes	your	 D currency exchange cost together with any Premium paid) may be higher than if You had not entered into the Foreign Exchange Option. 	 •		f	You	have	entered	a	Structured	Foreign	Exchange	Option	You	need	to	spend	more	time	managing	your	Foreign	Exchange	 I Risk because of the possibility of an event occurring which has an impact on your exposure to currency fluctuations. 	 •		 ntering	a	Structured	Foreign	Exchange	Option	may	prevent	You	from	enjoying	some	of	the	benefit	of	favourable	 E movements in Foreign Exchange Rates. 	 •		f	You	have	sold	a	Foreign	Exchange	Option	to	Us	this	sold	option	will	not	provide	You	with	any	protection	against	the	 I movement of exchange rates. 	 •		f	You	have	sold	a	Foreign	Exchange	Option	to	Us	and	the	option	is	exercised	by	Us	and	You	do	not	hold	the	currency	You	 I are obliged to deliver under the option You will need to purchase that currency in order to meet Your delivery obligations. As the exchange rate at which You will be able to purchase the relevant currency will be less favourable than the Strike Rate for the relevant option this will result in a loss to You. The amount of Your loss in these circumstances ins potentially unlimited.

14. Customer Trading Limits And Cash Deposits
Over the life of a Foreign Exchange Option, as the Spot Exchange Rate moves, the Foreign Exchange Option may become In The Money (ITM) or Out Of The Money (OTM). To manage this risk exposure, created when these Foreign Exchange Options move OTM, We initially secure the Foreign Exchange Option contract by either taking a Cash Deposit from You or, if applicable, We may apply this risk exposure against Your Trading Limit. Margin Calls If the Foreign Exchange Option(s) move OTM at a specific point, We will seek to secure this increased risk through a Margin Call. Margin Calls are not a charge to You but a form of security deposit. A Margin Call is required from You to bring the OTM exposure to zero. If a Margin Call is triggered, You will be advised directly by Travelex. Payment of the Margin Call by You must then be made within 2 business days of Travelex contacting You. Margin Calls are monitored on a daily basis and Travelex will revalue all Foreign Exchange Options on a daily basis for Margin Call purposes. Taking a Cash Deposit In the absence of a sufficient or no Trading Limit (see below), You may obtain a Foreign Exchange Option by paying us a Cash Deposit. The Cash Deposit is an advance payment taken to secure Travelex’s potential exposure resulting from adverse currency

movements. Any Cash Deposit paid by You will reduce Your final payment, dollar for dollar. Your initial Cash Deposit will be determined by Us and based on a percentage of the amount (i.e. the face value of the Foreign Exchange Option). Where a market movement results in a Foreign Exchange Option being OTM by 5% or more, a Margin Call payment will be required form You to bring that Foreign Exchange Option’s exposure back to zero. Further Margin Call payments are required for each additional OTM movement of 5%. The	Cash	Deposit	/	Margin	Call	is	repaid	to	You	or	set-off	against	any	amount	owing	by	You	to	Us	when	the	Foreign	Exchange	 Option is completed (i.e. when the Foreign Exchange Option expires or is Exercised). Trading Limits (a) Against individual contracts Travelex may waive the need for a Cash Deposit by applying the required Cash Deposit of the principal amount of each Foreign Exchange Option against a Trading Limit. Where a Foreign Exchange Option moves OTM by 10% of the principal amount or more, a Margin Call payment is required from the Customer to bring that Foreign Exchange Option’s exposure back to zero. Further Margin Call payments are required for each additional OTM currency movement of 10%. (b) Against customer portfolios A typical customer portfolio may consist of Forward Exchange Contracts (FECs) as well as Foreign Exchange Options. The Trading Limit covers both types of products. Travelex may allocate a Trading Limit against the total position of Your overall FEC and Foreign Exchange Options portfolio. We revalue every FEC and Foreign Exchange Option in Your portfolio, and if the total exposure OTM is within the Trading Limit, no Margin Call occurs. However, if the total OTM exposure exceeds the Trading Limit, a Margin Call is required to take the exposure back to zero. As mentioned at (a) above, FECs and Foreign Exchange Options within Your portfolio are also monitored individually. If any individual contract moves OTM by more than 10%, a Margin Call payment is requested to return the exposure to zero. Further Margin Calls are required for any additional OTM movements beyond 10%. You should note that it is possible to trigger a Margin Call for a portfolio even though no individual contract is OTM by more than 10%. Conversely, an individual contract Margin Call may be triggered even though the overall portfolio is within your portfolio Trading Limit. Where both are triggered, there will be a Margin Call for only the larger of the two. (Please refer to our ‘Terms and Conditions for Foreign Exchange Trading’ for full details of ‘Credit and Authorisation Limits’)

15. Dispute Resolution
You should address any complaint relating to any product described in this PDS to Travelex. If Your complaint is not able to be resolved at this initial stage, the matter will be automatically referred to the relevant Business Unit Manager. If a resolution is not reached within a reasonable time period, the matter will then be further referred to the Travelex Compliance Manager who will refer the matter to Senior Management for resolution. All complaints are logged at each stage of the process. If You have any enquiries about Our dispute resolution process, please contact the Compliance Manager at the principal business address listed in this PDS, telephone 1300 727 113 or email Us at dispute@travelex.com.au. If You are dissatisfied with the resolution of a complaint You have lodged with Travelex You may refer Your complaint to: Financial Industry Complaints Service (FICS) PO Box 579 Melbourne, Victoria 3001 Toll Free Number: 1800 335 405 FICS is an independent dispute resolution scheme. Subject to FICS rules, a claim must be under AUD 100,000 for FICS to consider it (unless You and Travelex agree otherwise in writing).

16. Privacy Statement
We will only collect personal information necessary for the foreign exchange transactions You request. The information We obtain from You or other people is for the purpose of foreign exchange transactions and to comply with relevant laws.

We may use this information to send You details about Our products. If at any time You are receiving information from Us about Our products and do not wish to do so, please let Us know. We may also disclose information about You to third party service providers who assist Us in Our business operations and service provision to You. Further information about Travelex’s privacy practices can be found at www.travelex.com.au

17. Taxation
Taxation law is complex and its application will depend on a person’s individual circumstances. When determining whether or not these products are suitable for You, You should consider the impact it will have on Your own taxation position and seek professional advice on the tax implications it may have for You.

18. Telephone conversations
Conversations with our dealing room are taped. This is standard market practice. Travelex does this to make sure that we have complete records of the details of all transactions. Taped conversations are retained for 7 years and are usually used where there is a dispute and for staff monitoring purposes. You will need to advise your Travelex representative if you do not wish to be recorded. However, we will not enter into any transaction over the telephone unless the conversation is recorded.

19. Staff incentives
Travelex employees are remunerated on a salary basis with performance incentives based on the overall financial performance at travelex, the business unit in which they operate and individual performance.

20. Amendments
We may, at Our discretion, allow You to change the terms of Your Foreign Exchange Option. Where We allow such a change, then unless otherwise agreed in writing between Us, the existing Foreign Exchange Option will be terminated based on Our rate and the exchange rate on the day of termination as determined by Us and a new Foreign Exchange Option will be entered into by You which reflects the agreed changes. You must pay Us any Break Costs and the Premium in respect of the new Foreign Exchange Option within 2 business days of Our notifying You of those costs.

21. Termination
If You do not perform any of Your obligations under a Foreign Exchange Option including, but not limited to, the failure to pay any Margin Call We may terminate one or all of Your Foreign Exchange Options with Us. In the event We terminate Your Foreign Exchange Option as a result of Your default You will be liable to pay Us all costs, taxes and expense and losses We incur in terminating the relevant Foreign Exchange Option and in exercising Our rights. This includes any costs	We	occur	in	entering	into	additional	Foreign	Exchange	Option	in	order	to	off-set	the	Vanilla	Foreign	Exchange	Option	We	 are terminating. When a Foreign Exchange Option is terminated as a result of Your default, We will: calculate the Foreign Exchange Option value for	each	Foreign	Exchange	Option	terminated	and	any	amounts	payable	under	those	Foreign	Exchange	Options; convert each amount determined under paragraph (a) into AUD at the current rate of exchange as determined by Us in accordance	with	Our	usual	practices; 	 1.		 alculate	the	total	amounts	payable	by	each	party	to	the	other	under	all	terminated	Foreign	Exchange	Options	in	AUD; c 	 2.		 et-off	the	amounts	payable	under	paragraph	(c),	so	that	a	single	amount	is	payable	by	one	party	to	the	other	(the	‘Net	 s Amount’);	and 3. notify You in writing of the Net Amount. If the Net Amount is an amount that You owe Us, You will have to pay that within 2 business days of Us notifying You of that amount.

22. Key Terms
AUD means Australian Dollar, USD means United States Dollar.

Break Costs means all costs, expenses and losses incurred by Travelex and notified by Travelex as payable by You as a result of the cancellation or early termination of the Vanilla Foreign Exchange Option. Best Case Strike Rate is the most favourable Foreign Exchange Rate that You can achieve under Your Foreign Exchange Option contract. Call Foreign Exchange Option means the right, without an obligation, to buy the underlying currency. Cash Deposit means an amount paid by You to Us as a payment to secure Travelex’s potential exposure resulting from adverse currency movements during the Term of a Foreign Exchange Option. Confirmation means advice from Us, either by written or electronic means, that confirms the terms of Your transaction with Us. It contains details such as the date, names, address, amount of foreign currency, amount of AUD, exchange rates applicable to the transaction. Customer means the applicant signing the Travelex Application for Foreign Exchange Trading, You or Your. Currency Pair means the two currencies in the Foreign Exchange Option. Delivery Date is the date on which the exchange of currencies under the Foreign Exchange Option takes place. Exercise means to make use of the right, which is possessed by a party, as specified in a Foreign Exchange Option , e.g. the right to buy, in which case, once exercised the seller of the Foreign Exchange Option is obligated to the buyer on the terms already agreed. Expiry Date means the date on which the Foreign Exchange Option expires (referred to in Our Terms and Conditions for Options as the “Expiration Date”). Expiry Time is the time of day on the Expiry Date that the Foreign Exchange Option expires (as outlined in Our Terms and Conditions for Options and referred to as the “Expiration Time”). Foreign Exchange Rate means the rate at which a Currency Pair is exchanged. Foreign Exchange Risk means the risk of adverse movements in the Foreign Exchange Rate. Forward Exchange Contract (or “FEC”) means an agreement where one currency is sold or bought against another currency at an agreed Forward Exchange Rate for settlement on a specified date in the future. Forward Exchange Rate means the Spot Exchange Rate adjusted to a future date having regard to the interest rates prevailing in the two countries in the Currency Pair. Instruction means a communication, including without limitation: (a)		 	 hich	contains	the	information	required	by	Travelex	to	enable	Travelex	to	give	effect	to	the	communication; W (b) Received by Travelex in writing, by facsimile, SWIFT, telephone or via Travelex’s electronic instruction system or such other means	as	are	for	the	time	being	agreed	by	You	and	Travelex;	and (c) Which Travelex believes in good faith to have been given by the Customer. In The Money (ITM) in relation to a Foreign Exchange Option means a Foreign Exchange Option, which would produce a gain if Exercised (excluding consideration of the Premium). Issuer has the meaning of s 761E of the Corporations Act 2001 (Cth). Out Of The Money (OTM) in relation to a Foreign Exchange Option means a Foreign Exchange Option, which would produce a loss if Exercised (excluding consideration of the Premium). Premium is the amount paid by the buyer to the seller for a Foreign Exchange Option. Product Disclosure Statement has the meaning given to it in the Corporations Act 2001.

PDS means this Product Disclosure Statement. Put Foreign Exchange Option means the right, without an obligation, to sell the underlying currency. Settlement Risk is the risk that a party will be unable to fill its obligations on the Delivery Date. Signatory means someone who signs and is bound by the terms of a contract. Spot Exchange Rate means at any time the exchange rate determined and quoted by Travelex for settlement in 2 business days from the date of quotation. Strike Rate is the exchange rate at which the parties have agreed to exchange the Currency Pair if the Foreign Exchange Option is Exercised. Term means the period of time between the Trade Date and the Expiry Date. Trade Date is the date you enter into a Foreign Exchange Option Contract. Trading Limit means the provision of credit terms to You to cover Our exposure to Settlement Risk. Trigger Rate is a foreign exchange rate that We agree in a Structured Flexible Foreign Exchange Option contract. If the “Trigger Rate” is reached before Expiry Time on the Expiry Date, it may lead to an event which effects the rate at which You will need to exchange currencies under the Foreign Exchange Option contract. Vanilla Foreign Exchange Option is a simple Foreign Exchange Option whose terms and conditions do not include any provisions other than Exercise style, Expiry Date and Strike Rate. 'We, Our, Us' means Travelex Limited ABN 36 004 179 953. Worst Case Strike Rate is the least favourable Foreign Exchange Rate that You can be exposed to under Your Foreign Exchange Option contract. 'You, Your' means the Customer.

23. Updates relating to this PDS
The information in this PDS is current as at 1st November, 2007. The information in it is subject to change. Travelex may make available updated information relating to this PDS by issuing a supplementary or replacement PDS (if required) or by posting any updated information on our website. You may access this updated information via the internet at www.travelex.com.au or alternatively You may request a paper copy of this information free of charge from Your Travelex representative or by contacting Travelex on 1300 727 113.

General enquiries 1300 727 113 New South Wales Level 12, 1 Margaret Street, Sydney NSW 2000 Tel. (02) 8585 7733 Fax. (02) 8585 7199 Interstate. 1300 732 562 Victoria OCBC House, Level 8, 565 Bourke Street, Melbourne, VIC 3000 Tel. 03 9282 0333 Fax. 03 9654 1282 Western Australia Level 19, St Martins Tower, 44 St Georges Terrace, Perth WA 6000 Tel. 08 9481 0909 Fax. 08 9321 2758 www.travelex.com.au

PDS11/07OPT


				
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