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Minto's pay at Tower revealed

Wednesday 10th August 2005

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Tower group chief executive Jim Minto is being paid $750,000 a year plus bonuses.

Tower chairman Olaf O'Duill said Minto's term of employment is for an indefinite period, as was the case while he was chief executive of Tower Australia.

Minto's employment package comprises salary plus short and medium term components.

His annual salary effective 1 March 2005 is $750,000 plus a $100,000 dual location allowance.

The short term incentive component is a target bonus of 60% which is paid on the achievement of various quantitative and qualitative targets.

The medium term incentive component comprises 778,500 Options which vest in April 2007 and a further 721,500 Options which have been granted effective 9 August 2005 (subject to acceptance by 31 August 2005) and vest on 10 August 2008.

These further options are granted at the average price of Tower shares traded on the NZX on the five business days preceding the 9 August 2005.

Tower may at any time terminate Minto's employment. Upon termination of employment for other than cause, Minto will receive six months' notice plus 12 months' salary.

Tower's board has also resolved to offer up to 4,871,500 options to 11 Tower senior executives. Each option is for one Tower ordinary share.

The exercise price of each option will be calculated as the average weighted Tower share price on NZX in New Zealand dollars for the five trading days to 9 August 2005.

The exercise period for 3,096,500 options will commence on 9 August 2008 and expire on 9 August 2011 when any remaining unexercised options will lapse. The exercise period for the remaining 1,775,000 options will commence on 9 August 2009 and expire on 9 August 2012.

The options may only be exercised if the hurdle of a 10% per annum compounding increase in the TOWER share price less any distributions paid is achieved.

The total number of Tower ordinary shares currently on issue is 358,468,109.

The total number of Tower options currently on issue is 6,867,757 (excluding this proposed new issue).

If the offers of the proposed new options are all accepted by the senior executives, the number of options on issue will increase to 11,739,257. The 11,739,257 options would represent 3.2% of total Tower securities on issue.

Some explanation please Olaf

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