Page 31 - Bauxite Resources Annual Report 2013

Directors’ Report cont.
C Service agreements
The details of service agreements of the key management personnel of Bauxite Resources Limited and the Group are as follows:
Peter Canterbury (Appointed 20 May 2013)
• Term of agreement – reviewed by the Board as soon as practicable after the date which falls on the first anniversary of
commencement of employment;
• Base Salary, $450,000 plus 9.25% superannuation;
• Subject to shareholder approval, also entitled to the following performance rights;
• 2,000,000 class A performance rights subject to meeting specific performance criteria achieved;
• 2,000,000 class B performance rights subject to meeting specific performance criteria achieved;
• 2,000,000 class C performance rights subject to meeting specific performance criteria achieved; and
• Termination of employment by either party requires a 6 month’s written notice.
Robert Nash – Legal retainer agreement.
• Term of agreement – 1 August 2012 until cancelled.
• Monthly retainer fee of $15,000 for providing legal counsel and advice to the Company as and when requested.
D Share-based compensation
Options or performance rights may be issued to directors and executives as part of their remuneration. The options are not issued
based on performance criteria, but are issued to certain directors (determined by the Board) and executives of Bauxite Resources
Limited to increase goal congruence between executives, directors and shareholders. Performance rights are issued with specific
performance criteria required to be achieved. The Company does not have a formal policy in relation to the key management
personnel limiting their exposure to risk in relation to the securities, but the Board actively discourages key personnel
management from obtaining mortgages in securities held in the Company. The following options and performance rights were
granted to or vested with key management personnel during the past 2 years:
Grant Date Granted
Number
Vested
Number as
at 30 June
2013
Date vesting
or vested and
exercisable
Expiry Date Exercise
Price
(cents)
Value per
option at
grant date
(cents)
Exercised
Number
% of
Remu-
neration
2013
Sam Middlemas 1 25/03/2013
25/03/2013
1,000,000
500,000
Nil
Nil
Refer 1 below
Refer 1 below
31/12/2013
31/12/2014
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2012
Scott Donaldson 2 22/02/2011 3,000,000 Nil Refer 2 below 31/01/2016 40 23.5 Nil Nil
Neil Martin 3 28/03/2012 1,000,000 Nil Refer 3 below 30/06/2017 20 2.28 Nil Nil
Notes:
1. 1,000,000 performance rights to be issued if BAU’s market capitalisation trades above A$50m for 30 consecutive days prior to 31/12/2013. A further
500,000 performance rights to be issued if BAU’s market capitalisation trades above A$72.5m for 60 consecutive days prior to 31/12/2014.
2. Upon his resignation on 19 November 2012, Mr Donaldson’s unvested options lapsed and were forfeited.
3. Upon his resignation on 22 August 2012, Mr Martin’s unvested options lapsed and were forfeited.
There were no ordinary shares issued upon exercise of remuneration options to directors or other key management personnel of
Bauxite Resources Limited during the year.
Annual Report 2013 Bauxite Resources 29