SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Board/Management Information 2015

Dec 1, 2015

ASX & media announcement ASX code: SXE

2 December 2015

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Appointment of CEO

The Board of Southern Cross Electrical Engineering Limited (“SCEE”) is pleased to announce the appointment of Mr Graeme Dunn as Chief Executive Officer and Managing Director of SCEE. Graeme will commence in the role on 18 January 2016. A summary of the material terms of employment is attached.

Mr Dunn is a Civil Engineer with over 25 years’ international and domestic experience in the civil engineering and building construction industries, more than half of which has been in a leadership capacity. During this time he has worked exclusively as a contractor and has extensive operational experience on multiple types of projects including heavy civil infrastructure, contract mining, mining processing plants, tunnels, roads, marine, gas processing, hotels and office buildings.

Graeme will be joining SCEE from his current role as Chief Operating Officer of NRW Limited. Prior to his time at NRW, Graeme held various leadership roles over a ten-year period at Leighton Contractors, his most recent being Executive General Manager of the group’s Energy Division, based in Perth. He has also previously worked at a General Manager level within the Downer EDI group.

Mr Dunn has a Master of Business Administration degree and recently completed the London Business School’s Senior Executive Program.

Commenting on the appointment of Mr Dunn, SCEE’s Chairman, Professor Derek Parkin, said:

“I am delighted to welcome Graeme as SCEE’s Managing Director and CEO. Graeme brings a successful track record of leadership, entrepreneurship and project execution which, with his strong personal values, makes for an ideal fit within the SCEE culture.

“His considerable experience in contracting across multiple sectors, both locally and internationally, aligns well with our growth strategy from resources into adjacent or complementary geographies, sectors and markets. The Board looks forward to working with Graeme in implementing our strategy.”

Following Mr Dunn’s commencement, Chris Douglass, who has been acting as interim CEO, will resign from the Board and continue in his role as SCEE’s Chief Financial Officer, with a strong focus on acquisition opportunities. Professor Parkin went on to comment:

“The Board acknowledges the professionalism with which Chris has undertaken this interim position since the departure of Simon High as CEO in March of this year. He will be well placed to work closely with Graeme and the Board in identifying, assessing and implementing future opportunities for SCEE.”

Contact

SCEE Perth Office 41 Macedonia Street Naval Base WA 6165 T: +61 8 9236 8300

Chris Douglass Interim CEO E: chris.douglass@scee.com.au

Colin Harper Company Secretary E: colin.harper@scee.com.au

Southern Cross Electrical Engineering Limited

ABN 92 009 307 046

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Attachment 1: Material Terms of Employment

The material terms of the Executive Employment Agreement between Graeme Dunn and Southern Cross Electrical Engineering Limited are as follows:

Role	Chief Executive Officer and Managing Director
Commencement Date	18 January 2016
Term	No fixed term. Employment to continue until terminated by either party.
Notice Period	6 months by either party. The company may terminate the employment summarily without notice or payment in lieu of notice in certain circumstances.
Base Salary	$650,000 per annum inclusive of superannuation. This will be subject to annual review.
Short Term Incentive (STI)	Maximum annual participation of 50% of base salary. For the FY16 financial year participation has been limited to 50% of this maximum participation (ie 25% of base salary). The payment of bonuses under the STI scheme is determined by the Board at its absolute discretion by reference to the achievement of annual financial and non-financial key performance indicators.
Long Term Incentive (LTI)	Maximum annual participation of 50% of base salary. Subject to the receipt of the necessary shareholder approval, Mr Dunn will be granted 1,083,333 performance rights in respect of the FY16 financial year. Performance rights granted under the Company’s LTI scheme are performance tested over a 3 year period and vesting is determined by the Board at its absolute discretion by reference to the achievement of key performance indicators. For the FY16 performance rights the key performance indicators relate to Earnings Per Share and Total Shareholder Return.
Post-employment Restraint	A 12 month restraint period applies following termination of employment.

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