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^ Contract terms specify annual base salaries of $550,000 and $600,000 commencing 1 July 2012 and 1 July 2013 respectively. Minimum guaranteed equity remuneration, which is subject to shareholder approval, of 200,000 other share options per annum is also included, together with the provision of additional other share options that are subject to key performance indicators: total shareholder return (‘TSR’) expansion to equal or outperform the ASX 200 Energy index in the reporting period prior to each tranche (weighting 50%); TSR to exceed 10% p.a. (weighting 25%); and the maintenance of a zero incident safety record in the previous reporting period (weighting 25%). 

The contracts for service between the Company, other key management personnel and other Group executive are on a continuing basis, the terms of which are not expected to change in the immediate future. 

## D. Share-based Remuneration 

The Company has one ESOP, which was approved by shareholders at the 2009 Annual General Meeting. 

Options are issued to other key management personnel as part of their remuneration to increase goal congruence between senior executives and shareholders in accordance with the Senior Executive Remuneration Policy. 

The Company also grants other share options to Directors. Options issued to Directors are approved on a case-by-case basis by shareholders at relevant general meetings. 

During the financial year 900,000 options over unissued ordinary shares of the Company were issued to Directors and other key management personnel (refer to Note 28(c) of the financial statements). 

The terms and conditions of each grant of options over unissued ordinary shares in the Company affecting remuneration in the current or a future financial year are as follows: 

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Options are granted for no consideration. When exercisable, each option is convertible into one ordinary share of the Company. 

