For details of options issued to Directors, other key management personnel and the five highest remunerated executives of the  Group and Company as remuneration, refer to the Remuneration Report in this Directors’ Report. Information relating to the Company’s ESOP and other share options, including details of options granted, exercised, cancelled,  forfeited and expired during the financial year and options outstanding at the end of the financial year, is set out in Note 27 of the  financial statements. No option holder has any right under the options to participate in any other share issue of the Company or any other entity. An indemnity agreement has been entered into between an insurance company and the Directors of the Company named earlier  in this Directors’ Report and with the full time executive officers, directors and secretaries of all Australian subsidiaries. Under  this agreement, the insurance company has agreed to indemnify these Directors, full time executive officers, directors and  secretaries against any claim or for any expenses or costs which may arise as a result of work performed in their respective  capacities. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. As approved by shareholders at the Annual General Meeting held on 12 November 2009, the Company will continue to pay those  Director insurance premiums for a period of ten years following termination of their directorships of the Company and will provide  each Director with access, upon ceasing for any reason to be a Director of the Company and for a period of ten years following  cessation, to any Company records which are either prepared or provided to the Director during the time period they were a  Director of the Company. No person has applied to the Court under Section 237 of the  Corporations Act 2001  for leave to bring proceedings on behalf of  the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on  behalf of the Company for all or part of those proceedings. The Company was not a party to any such proceeding during the financial year. In recognising the need for the highest standards of corporate governance and accountability, the Directors support the ASX  Corporate Governance Council Principles and Recommendations. The Company’s Statement of Corporate Governance is set out  on pages 84 to 91 of this Annual Report. The Company and its subsidiaries are subject to a range of relevant Commonwealth, State and International environmental laws  including:  Indemnification of Directors and Officers Proceedings on Behalf of the Company Corporate Governance Environmental Regulation Karoon Gas Australia Ltd  Annual Report 2011 20 • Environment Protection and Biodiversity Conservation Act 1999 (Cth); • Petroleum (Submerged Lands) Act 1967 (Cth); • Petroleum (Submerged Lands) (Management of Environment) Regulations 1999 (Cth); • The Aboriginal and Torres Strait Islander Heritage and Protection Act 1994 (Cth); • The Brazilian Federal Constitution (Brazil); • The Brazilian Petroleum Law (Law No. 9,478, of August 6, 1997) (Brazil); • The Brazilian Civil Code (Law No. 10,406, of January 19, 2002) (Brazil); • The Brazilian Corporations Law (Law No. 6,404, of December 15, 1976) (Brazil); • The Brazilian Bid Law (Law No. 8,666, of June 21, 1993) (Brazil); • The Brazilian Federal Environmental Law (Law No. 6,938, of August 31, 1981) (Brazil); • National – Ministry of Energy and Mines – Supreme Decree No. 042-2005-EM – Unique Comprised Text of the Organic Law of Hydrocarbons (which text of the law was approved by Law No. 26221) (Peru); • National – Congress of the Republic – Law No. 28611 – General Environmental Law (Peru); dIRECTORS’ REPORT COnTInUEd