Icon Energy Limited Annual Report 2017

8. SERVICE AGREEMENTS The Company has a policy that service agreements with Executive and Senior Managers are limited in term and include termination clauses of between one and twelve months. Service agreements are in place for the Managing Director (Mr Raymond James), the Chief Financial Officer & Company Secretary (Dr Kevin Jih) (both “Executive Directors”) and the Exploration Manager (Mr Martin Berry). The service agreements with the Executives run for a period of five years from the date of engagement or renewal and set out the duties and obligations of the respective parties with the exception of the Managing Director which will run for three years from 1 January 2017. The contracts provide that the agreements may be terminated by either party providing up to twelve months’ notice as shown in the table below. The Company may make a payment in lieu of notice equal to the base amount prescribed in the service agreement for a specified period. In addition, accrued statutory benefits and superannuation benefits are payable. For the Executives, if the Board terminates an Executive’s employment, the Executive will receive, in addition to any payment in lieu of notice: i. a termination payment of the greater of the amount calculated under subsection 3 and subsection 4 of Section 200G of the Corporations Act 2001 or that determined by the Board and subject to shareholder approval at the time. ii. a pro-rata payment in respect of the Executive’s participation in the Performance Rights Plan for the year in which the Executive’s termination occurs in accordance with the Plan Rules as varied from time to time. As the employment relationship has ceased, the Executive will not be eligible for any further share or option grants in that year. The Executive will receive the equivalent value of this benefit in cash based on achievement of the Plan’s performance targets for the part year that the Executive serves with the Company running from the date of the yearly grant to Executive’s Termination Date. iii. Any shares or bonuses that would be paid are payable and all “rights” granted but have not vested will vest as at the termination date. Table 5: Service Agreements with Executive and Senior Managers Name of Executive Date of Contract Termination by Icon (without cause) Termination by employee Termination Payments (where terminated by Company) STI & LTI Entitlements R James 1-Jan 17 12 months 6 months Payment in lieu of notice based on FR Discretion of Board to pay portion of STI & LTI STI: May earn up to 50% of FR LTI: May earn up to 50% of FR K Jih 11-Aug-15 12 months 6 months Payment in lieu of notice based on FR Discretion of Board to pay portion of STI & LTI STI: May earn up to 40% of FR LTI: May earn up to 40% of FR M Berry 1-Aug-13 2 months 2 months Payment in lieu of notice based on FR Discretion of Board to pay portion of STI & LTI STI: May earn up to 30% of FR LTI: May earn up to 20% of FR FINANCIAL REPORT 31 ICON ENERGY ANNUAL REPORT 2017