b'< DIRECTORS REPORTCriteria for performance-based remunerationThe STI program is designed to align the targets of executives with the targets of the consolidated entity. STI payments are granted to executives based on specific annual targets and KPIs being achieved. The Board, advised by the Nominations, Remuneration and Corporate Governance Committee, applied these criteria in determining the award of performance-based remuneration during FY19.Performance-based bonuses were paid in December 2018. AUD58,470 cash bonuses were awardedto the executive directors and other key management personnel. A break up of the bonuses paidis shown in the above tables.For performance during FY19, the relevant criteria for the award of bonuses relate to revenue growth at each operating business, namely the Star Vegas and the Aristo International Hotel,as well as the achievement of budgeted EBITDA targets for the consolidated entity, and a personal KPI for each executive.There were no share options granted or forfeited during FY19 (FY18: nil).The number of the shares granted or forfeited is shown below:SHARES GRANTED SHARES FORFEITED2019 2018 2019 2018Executive directorsLim K Y (removed 18 July 2019)1784,872B P Reichel396,166Other key management personnelGoh K B (retired 31 March 2018)300,320 300,320 Chong K Y300,0711One-third of Lim K Ys shares (261,624 shares) will be forfeitedsubsequent to year end as he did not complete thevesting period. The STI program is Service agreementsRemuneration and other terms of employment for the Chiefdesigned to align the Executive Officer, Chief Financial Officer and the other key management personnel are formalised in contracts oftargets of executives employment. The service agreements specify the components of remuneration, benefits and notice periods. The specifiedwith the targets of the executives are employed under contracts with no fixed term. The company may terminate the contracts immediately if theconsolidated entity. executive is guilty of serious misconduct or wilful neglect of duties. Otherwise, the company may terminate the contracts by giving six months notice or paying six months salary. In the case of Mr Reichel, a termination benefit of 12 months salaryis payable, in accordance with the Corporations Act 2001.DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT 29'