6 September 2007 Further to our announcement to the ASX on 3...


6 September 2007

Further to our announcement to the ASX on 3 September 2007 regarding the appointment of Mr Bob Neil as CEO, Sydney Gas Ltd advises the key terms of Mr Neil’s Employment Agreement are as follows:
1. Term Commencement date 3 September 2007 with no fixed term.
2. Duties Mr Neil is to perform in accordance with the Board’s reasonable directions.
3. Salary Annual based salary is $350,000, exclusive of superannuation, together with the following options:
Date of Grant Expiry Date of Relevant Qualifying Period Number of Shares Minimum market value Exercise price per Share
Date this agreement is entered into* On completion of 12 months employment 300,000 $0.45 75% minimum market value
On completion of 12 months’ employment On completion of 24 months’ employment 300,000 $0.75 75% minimum market value
On completion On completion of 36 300,000 $1.10 75% minimum
of 24 months’ months’ employment market value employment
Further options at the discretion of the Board
* Closing price of Shares on 31 August 2007: 32.5 cents
4. Termination Either Party may terminate the Agreement by giving six months notice.
5. Restrictive Covenant Mr Neil is restrained during employment, and for up to 12 months after termination, from competing with Sydney Gas and soliciting customers and employees of Sydney Gas.
6. Other The Agreement contains the usual provisions in respect of confidential information, and intellectual property.