6. EXECUTIVE CONTRACTUAL ARRANGEMENTS Remuneration arrangements for KMP are formalised in employment agreements. Details of these contracts are  provided below: The Managing Director, Mr Hallam is employed under an annual salary employment contract. The current  employment contract commenced on 17 June 2009. Under the terms of the present contract: MANAGING DIRECTOR OTHER EXECUTIVE DIRECTORS •  Mr Hallam receives a fixed remuneration of $381,500 (including superannuation) per annum. •  Mr Hallam may resign from his position and thus terminate this contract by giving three months written  notice. On resignation any unvested options will be forfeited. •  The Company may terminate this employment agreement by providing three months written notice or  providing payment in lieu of notice period (based on the fixed component of Mr Hallam’s remuneration). On  termination on notice by the Company, any LTI options that have vested or that will vest during the notice  period will be released. LTI options that have not yet vested will be forfeited. •  The Company may terminate the contract at any time without notice if serious misconduct has occurred.  Where termination with cause occurs the Managing Director is only entitled to that portion of remuneration  that is fixed, and only up to the date of termination. On termination with cause by the Company, any LTI  options that have vested will be released. LTI options that have not yet vested will be forfeited. •  Executive Directors may resign from their position and thus terminate their contract by giving three months  written notice. On resignation any unvested options will be forfeited. •  The Company may terminate the employment agreement by providing three months written notice or  providing payment in lieu of notice period (based on the fixed component of the executive director’s  remuneration). On termination on notice by the Company, any LTI options that have vested or that will vest  during the notice period will be released. LTI options that have not yet vested will be forfeited. •  The Company may terminate the contract at any time without notice if serious misconduct has occurred.  Where termination with cause occurs the executive director is only entitled to that portion of remuneration  that is fixed, and only up to the date of termination. On termination with cause by the Company, any LTI  options that have vested will be released. LTI options that have not yet vested will be forfeited. •  Executives may resign from their position and thus terminate their contract by giving one month written  notice. On resignation any unvested options will be forfeited. •  The Company may terminate the employment agreement by providing one month written notice or providing  payment in lieu of notice period (based on the fixed component of the executive’s remuneration). On  termination on notice by the Company, any LTI options that have vested or that will vest during the notice  period will be released. LTI options that have not yet vested will be forfeited. 33  DIRECTORS’ REPORT OTHER KMP All other executives have standard employment contracts. The other terms of the employment contracts are: Mr Huffadine was employed under an annual salary employment contract and receives a fixed remuneration of  $348,800 (including superannuation) per annum. The other terms of the employment contracts are: