NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2000 Note Consolidated Company 2000 1999 2000 1999 $ $ $ $ (b) Operating Leases  Not later than 1 year 171,733 80,306 – – Later than 1 year but  not later than 2 years 166,130 80,306 – – Later than 2 years but  not later than 5 years 351,955 169,173 – – Later than 5 years 640,247 684,402 – – Aggregate lease expenditure  contracted for at balance date 1,330,065 1,014,187 – – Aggregate expenditure commitments  comprise: Office rental commitments 442,705 71,895 – – Supply base rental commitments 861,022 905,177 – – Other 26,338 37,115 – – 1,330,065 1,014,187 – – During the year Mermaid Marine relocated their Corporate Office. Office rental commitments contains the rental payable under the balance of the lease for Mermaid’s former corporate office. This has been sublet for the balance of the term of the lease at a rental equal to the rental payable by Mermaid under the lease of $46,250. The new location is committed under a 5 plus 5 year lease term. Supply base rental commitments represents the lease of the King Bay Supply Base for a term of 21 years commencing 1 January 1999 with an option to renew the term for a further period of 21 years. The Lessee is obliged to obtain all necessary approvals by 31 December 2000 for certain development of works (“Development Works”) and to subsequently perform the works within 3 years. The Development Works planned include breakwater, dredged basin, cyclone moorings, slipway, quay wall and industrial buildings. If the Development Works are not completed within the prescribed period, the Lessor has the right (unless it is satisfied that the non completion was due principally to matters beyond the Company’s control) to vary the Lease by retaking 2.3 hectares at the western extremity of the site. The approved use of the site is for the purpose of conducting a multi purpose marine service facility and supply base including but not limited to open and covered laydown and storage, warehousing, production and storage of drilling mud and other drilling supplies, operating and maintaining vessels and floating plant together with associated docking, maintenance and engineering works. Any other uses require the prior written consent of the Lessor. Restrictions apply to the assignment or subletting of the site (or any part) without prior consent of the Lessor, although that consent cannot unreasonably be withheld (subject to “usual” prudential requirements common to leases in Western Australia). 51 ir