(c) Santos Employee Share Purchase Plan (continued) Senior Executive Long Term Incentive In addition, during the year, selected senior executives of the Compan y were invited to apply for shares pursuant to the terms of the Santos Employee Share Purchase Plan as part of the Company’s long term incen tive arrangements (and on different terms from the general employee participation described above). On 27 January 2004 an 1 July 2004, 3,397 and 87,851 (2003: 129,664) shares respectively were allotted to a trustee to hold for senior executives. The shares allocated pursuant to the Plan were allotted to a trustee at no  cost to participants, to be held on their behalf. The allocation price is Market Value (as defined above) and the trustee was funded by th Company to subscribe for the shares. In general the shares are restricted for a period of one year from the date of allotment. If an executive allotted such shares ceased employment during this period, the Board in its discretion may determin that a lesser restriction on transfer and dealing applies, having regard to the circumstances of the cessation. The shares can remain on trust for up to f our years, during which time the shares are subject to forfeiture if participants act fraudulently or dishonestly or in breach of their obligation s to any Group Company. Participants are entitled to instruct the trustee as to the exercise of voting rights, receive dividends and parti cipate in bonus and rights issues while the shares are restricted. The fair value of the 3,397 and 87,851 shares allotted on 27 January 2004 and 1 July 2004 respectively to a trustee to hold for senior executives was $773,783 at the end of the financial year, being the market price of  the ordinary shares of the Company on the Australian Stock Exchange as at close of trading on that date. Summary of share movements in the Plan: The fair value per share for shares granted during the year and the consid eration received by the Company per share is Market Value (as defined above) less, in the case of General Employee Participation, the discount of  5% referred to above. The amounts recognised in the financial statements of the Santos Group and the Company in relation to the Santos Employee Share Purchase Plan during the year were: At 31 December 2004, the total number of shares acquired under th e Plan since its commencement was 930,112. Opening Granted during Closing balance  the y ear Restriction ceased during the year balance Number Fair value Grant dates Number of shares per share Number Date Number $ 2004 7 March 2003 7,800 – – 7,800 7 March 2004 – 8 September 2003 15,400 – – 15,400 8 September 2004 – 22 December 2003 129,664 – – 3,818 3 May 2004 – 3,548 1 June 2004 – 7,273 8 June 2004 – 7,331 2 July 2004 – 4,364 19 July 2004 – 103,330 22 December 2004 – 27 January 2004 – 3,397 6.38 – – 3,397 1 July 2004 – 87,851 6.95 – – 87,851 26 November 2004 – 32,400 7.70 – – 32,400 152,864 123,648 152,864 123,648 2003 7 March 2002 17,200 – – 17,200 7 March 2003 – 2 September 2002 40,600 – – 40,600 2 September 2003 – 7 March 2003 – 7,800 5.61 – – 7,800 8 September 2003 – 15,400 5.77 – – 15,400 22 December 2003 – 129,664 6.38 – – 129,664 57,800 152,864 57,800 152,864 Consolidated Santos Ltd 2004 2003 2004 2003 $million $million $million $million Issued ordinary share capital 0.9 1.0 0.9 1.0 Annual Report 2004 64 18. Contributed Equity (continued) NOTES TO THE FINANCIAL STA TEMENTS for the year ended 31 December 2004