text: non-executive Directors’ fees were 
  increased effective 1 July 2004. 
  Non-executive Directors, other 
  than the Chairman, who are 
  members of Board Committees 
  receive additional fees. Non- 
  executive Directors may not 
  participate in any of the 
  Company’s bonus, share or 
  option plans. 
  
  annual bonus calculated on a 
  formula that includes components 
  to measure the growth of 
  profitability, exploitable reserves 
  and share price.  receive more; and to encourage 
  executives to manage from the 
  perspective of the shareholders by 
  rewarding them for aligning 
  Company and shareholder returns. 
  
  He also has an entitlement to 
  1,000,000 Restricted Shares, 
  details of which are described in 
  note 18(h) to the financial 
  statements and holds 3,000,000 
  options under the Santos 
  Executive Share Option Plan. 
  **(b) Remuneration Structure**
  The Company’s remuneration 
  structure for its non-award 
  employees is based upon Target 
  Total Remuneration (TTR), the 
  components of which comprise: 
  
  • a fixed component called Fixed 
  Annual Remuneration (FAR); 
  and 
  
  If the Company terminates Mr J C 
  Ellice-Flint’s appointment without 
  cause, the Company may at its 
  option, in lieu of part or all of the 
  notice period of 24 months, pay 
  to him an amount equal to a 
  proportion or multiple of his 
  annual base salary and the current 
  year’s potential bonus (excluding 
  the application of any 
  performance condition) at the 
  time at which notice is given. 