XERO LIMITED — Director's Dealing 2016

Feb 18, 2016

Appendix 3Y Change of Director’s Interest Notice

Rule%3.19A.2

Appendix(3Y(

Change(of(Director’s(Interest(Notice(

Information%or%documents%not%available%now%must%be%given%to%ASX%as%soon%as%available.%%Information% and%documents%given%to%ASX%become%ASX’s%property%and%may%be%made%public.%

Introduced!30/09/01!!Amended!01/01/11!

Name(of(entity:(Xero(Limited

ARBN:(160(661(183

We!(the!entity)!give!ASX!the!following!information!under!listing!rule!3.19A.2!and!as!agent!for! the!director!for!the!purposes!of!section!205G!of!the!Corporations!Act.!!!

NameofDirector	BillVeghte
Dateoflastnotice	19November2015

Part(1(F(Change(of(director’s(relevant(interests(in(securities

In%the%case%of%a%trust,%this%includes%interests%in%the%trust%made%available%by%the%responsible%entity%of%the%trust%

Note:!In!the!case!of!a!company,!interests!which!come!within!paragraph!(i)!of!the!definition!of!“notifiable!interest!of!a!director”!should! be!disclosed!in!this!part.!

Directorindirectinterest	(a) Direct (options to subscribe for Ordinary SharesinXeroLimited(Options)) (b) Indirect (c) Indirect
Natureofindirectinterest (includingregisteredholder) Note:Providedetailsofthecircumstancesgivingrisetotherelevant interest.	(a) N/A (b) NationalFinancialServicesLLC(onbehalfof BeanBrookFarm2013AnnuityTrust(Trust)) is the holder of 26,000 Ordinary Shares in Xero Limited (Ordinary Shares). Bill Veghte isthetrusteeoftheTrustandbeneficiariesof the Trust are immediate family members. These Ordinary Shares were recently transferredfromFNZCustodiansLimited(on behalf of the Trust) to National Financial ServicesLLC(onbehalfoftheTrust) (c) NationalFinancialServicesLLC(onbehalfof the Trust) is the holder of 15,321 Ordinary Sharesintheformofsecuritiespurchasedin the US through OTC Markets as “XROLF” (OTCSecurities).BillVeghteisthetrusteeof the Trust and beneficiaries of the Trust are immediatefamilymembers
Dateofchange	12February2016

• See chapter 19 for defined terms.

01/01/2011 Appendix 3Y Page 1

Appendix 3Y Change of Director’s Interest Notice

No.ofsecuritiesheldpriortochange	(a) 88,515Options (b) 26,000OrdinaryShares (c) 15,321OTCSecurities
Class	(a) UnlistedOptions (b) OrdinaryShares (c) OTCSecurities
Numberacquired	(a) 29,530Options (b) N/A (c) N/A
Numberdisposed	N/A
Value/Consideration Note: If consideration is non\cash, provide details and estimated valuation	(a) The Options have been granted pursuant to the Xero Limited (USA) Equity Incentive SchemeasremunerationandincentiveforBill Veghte (in his role as director). The Options have an exercise price of NZ$16.00 per Option, being the 20 day volume weighted average market price of Xero Limited’s Ordinary Shares on the NZX Main Board throughto11February2016 (b) N/A (c) N/A
No.ofsecuritiesheldafterchange	(a) 118,045Options (b) 26,000OrdinaryShares (c) 15,321OTCSecurities
Natureofchange Example:on\markettrade,off\markettrade,exerciseofoptions,issue of securities under dividend reinvestment plan, participation in buy\ back	The Options have been granted pursuant to the Xero Limited (USA) Equity Incentive Scheme as remunerationandincentiveforBillVeghte(inhis roleasdirector).Additionaldetailsrelatingtothe OptionsaresetoutintheAppendix3Breleased byXeroLimitedtoASXon15February2016

Part(2(–(Change(of(director’s(interests(in(contracts(

Note:!In!the!case!of!a!company,!interests!which!come!within!paragraph!(ii)!of!the!definition!of!“notifiable!interest!of!a!director”!should! be!disclosed!in!this!part.

Detail(of(contract( Nature(of(interest( Name(of(registered(holder( (if(issued(securities)( Date(of(change( No.( and( class( of( securities( to( which( interest(related(prior(to(change( Note:!Details!are!only!required!for!a!contract!in!relation!to!which!the!interest! has!changed!

• See chapter 19 for defined terms.

Appendix 3Y Page 2

01/01/2011

Appendix 3Y Change of Director’s Interest Notice

Interest(acquired( Interest(disposed( Value/Consideration( Note:! If! consideration! is! non\cash,! provide! details! and! an! estimated! valuation!! Interest(after(change(

Part(3(–([+] Closed(period(

Part3–+Closedperiod
Were the interests in the securities or contracts detailed above traded during a +closed period where priorwrittenclearancewasrequired?	N/A
Ifso,waspriorwrittenclearanceprovidedtoallowthe tradetoproceedduringthisperiod?	N/A
If prior written clearance was provided, on what date wasthisprovided?	N/A

• See chapter 19 for defined terms.

01/01/2011 Appendix 3Y Page 3