In relation to the current financial year, awards may be taken only in the form of shares pursuant to SESPP or, at the election of an executive,
options pursuant to SESOP, details of which are described in notes 18(c) and 18(d) of the financial statements. In future periods, awards may be
taken in the form of rights over shares pursuant to SESPP or options granted under SESOP, at the election of executives.
Rights to shares and options are granted at no cost to the executives with the number of shares awarded being determined by dividing the amount
of the award by the volume weighted average price of the Company’s shares over the five business days up to and including the award date. The
number of options awarded is of equivalent value calculated by an independent expert based on an acceptable valuation method.
The exercise price of the options is the volume weighted average price of the Company’s shares over the five business days up to and including
the award date.
The Board intends that LTI awards be made on an annual basis using a three year measurement period for the applicable performance hurdles.
However, the Board reserves the right to suspend or modify the LTI program in light of circumstances appropriate to the Company from time to
time.
The maximum number of shares that may be issued under all of the Company’s executive and employee share and option plans cannot exceed the
limit of 5% of the issued capital, as approved by shareholders at the 2000 Annual General Meeting.
The Specified Executives are entitled to a termination payment in the event of termination of their service agreement by the Company without
cause. They are entitled to three months’ notice, excepting for Mr P C Wasow who is entitled to six months’ notice, or payment in lieu of that
notice, plus three weeks for each year of continuous service, pro rata for part thereof, and capped at a maximum of 65 weeks oftotal fixed
remuneration, less notional value of superannuation for that period.
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