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23rd
July 2008
KEY
TERMS & CONDITIONS - CEO CONTRACT OF EMPLOYMENT
PERTH, AUSTRALIA
- Orbital Corporation Limited
today announced the key terms & conditions of employment of
Mr Terry Stinson who assumed the role of Chief Executive Officer
and Managing Director on 21 June 2008.
Under an Executive Service Agreement, Mr Stinson's
total fixed remuneration ("TFR") will be $350,000, with
annual cash bonuses of up to 60% of the TFR payable on achievement
of stringent performance targets to be set by the Board. Subject
to shareholder approval, Mr Stinson will also participate in the
Company's performance based Executive Long Term Share Plan. The
Plan currently provides for the issue of shares based on the Company
achieving a Total Shareholder Return, over a 3 year performance
period, at or above the 50th percentile of a peer group of companies.
The potential annual value of the Executive Long Term Share Plan
will be set at a maximum of 70% of the TFR subject to the achievement
of the stringent performance targets to be set by the Board.
The service agreement is for an indefinite
period and may be terminated at any time by the Company on 12 months
notice (other than for reasons of serious misconduct). Mr Stinson
is required to provide three months notice of termination.
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