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Details of Share Performance Rights granted to Key Management Personnel as part of remuneration for the year ended 30 June 2011 

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(a) After testing the SPRs notionally granted on 26 February 2010 against the relevant performance hurdle, the SPRs are deposited into (or deducted from) the relevant share bank account for each participant. 

(b) Fair value of SPRs granted is determined using the Black-Scholes and Monte Carlo simulation methods. 

(c) SPRs vest at no cost to the recipient providing the relevant performance hurdles are satisfied. 

## 7. Terms of Executive contracts 

## Executives’ contracts specify their remuneration entitlements, benefits and awards. 

All Executives have ‘Service Agreements’, or employment contracts, which specify the components of remuneration to which they are entitled. The Service Agreements provide for participation in the short and long-term incentives in accordance with the terms of their respective plans. The Board can vary the terms of these plans, although such variations cannot be applied retrospectively. 

Details of contract duration, notice period for termination, and termination payments for Executives are provided in the table below. 

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(a) AGL will provide 6 months notice in circumstances of unsatisfactory performance. 

