57 AGL Energy Limited Annual Report 2011 All Senior 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 Senior Executives are provided in the table below. (a) Fair value of SPRs granted is determined using the Black-Scholes and Monte Carlo simulation methods. (b) SPRs will vest at no cost to the recipient, providing performance conditions are satisfi ed. 7.  Terms of Senior Executive contracts Details of Share Performance Rights granted to Key Management Personnel as part of remuneration for the year  ended 30 June 2010 Senior Executives’ contracts specify their remuneration entitlements, benefits and awards. Executive Position Contract duration Termination notice  period by AGL  Termination notice  period by employee Termination  payments Anthony Fowler Group General Manager  Merchant Energy No fixed term 3 months 6 months 9 months TFR Ken Hodgson  Group General Manager Retail Energy No fixed term 3 months 6 months 9 months TFR Paul McWilliams Group Head of Corporate Support  Services and Company Secretary No fixed term 3 months 6 months 9 months TFR Stephen Mikkelsen Chief Financial Officer  No fixed term 3 months 6 months 9 months TFR Michael Moraza Group General Manager Upstream Gas No fixed term 3 months 3 months 9 months TFR Balance at  1 July 2009 SPRs granted  during the year Grant date Fair value per  SPR at grant  date (a) Lapsed/  forfeited Vested Balance at  30 June 2010 (b) Jeff Dimery 3,459   –  1-Apr-07 6.71  –  (3,459)  –  Jeff Dimery 12,188   –  11-Jan-08 9.16  –   –  12,188  Jeff Dimery 18,056   –  27-Oct-08 10.30  –   –  18,056  Jeff Dimery  –  20,364  26-Feb-10 12.09  –  – 20,364  Michael Fraser 6,604   –  1-Apr-07 6.71  –  (6,604)  –  Michael Fraser 103,915   –  25-Feb-08 7.66  –   –  103,915  Michael Fraser 107,639   –  27-Oct-08 10.30  –   –  107,639  Michael Fraser  –  134,546  26-Feb-10 12.09  –  – 134,546  Ken Hodgson  –  15,011  26-Feb-10 12.09  –   –  15,011  Paul McWilliams 1,711   –  1-Apr-07 6.71  –  (1,711)  –  Paul McWilliams 6,140   –  11-Jan-08 9.16  –   –  6,140  Paul McWilliams 3,132   –  27-Oct-08 10.30  –   –  3,132  Paul McWilliams  –  3,379  26-Feb-10 12.09  –  – 3,379  Stephen Mikkelsen 16,285   –  8-Nov-06 6.60  –  (16,285)  –  Stephen Mikkelsen 19,647   –  11-Jan-08 9.16  –   –  19,647  Stephen Mikkelsen 14,000   –  27-Oct-08 10.30  –   –  14,000  Stephen Mikkelsen  –  15,099  26-Feb-10 12.09  –  – 15,099  Michael Moraza  1,429   –  1-Apr-07 6.71  –  (1,429)  –  Michael Moraza 5,294   –  11-Jan-08 9.16  –   –  5,294  Michael Moraza 7,639   –  27-Oct-08 10.30  –   –  7,639  Michael Moraza  –  16,728  26-Feb-10 12.09 – – 16,728 