REMUNERATION REPORT (AUDITED) (CONTINUED) 6. Company performance and link to remuneration (continued)  Company performance and its link to long term incentives (continued) 7. Executive contractual arrangements Managing Director/Chief Executive Officer Managing Director/Chief Executive Officer - Mr. D. Farley The Managing Director/Chief Executive Officer receives fixed remuneration of $633,600 per annum (excluding superannuation).  The Managing Director/Chief Executive Officer’s STI opportunity is a cash bonus up to a maximum of $200,000 per annum plus a DEA of 50%  of the cash bonus awarded in any year as performance rights. The terms of this DEA are the same as for the KMP’s. This means that two thirds  of the total STI award for any year will be paid in cash and one third as a DEA. The Managing Director/Chief Executive Officer will be entitled to an LTI benefit up to a maximum of 50% of fixed remuneration.   After cessation of employment the Managing Director/Chief Executive Officer will be restrained from participating in a business in competition  with the Company, in the beef trade industry and soliciting Company staff for the 12 month period from termination date.  For a period of twelve months after employment ends, the Managing Director/Chief Executive Officer may not engage in business dealings  with a customer or supplier of the Group with whom the Managing Director/Chief Executive Officer has had work related dealings during the  previous six months with a view to causing the person to cease doing business or reduce the amount of business which the person would  normally do with the Group.  Under the terms of the present contract: Mr. D. Farley was appointed Managing Director/Chief Executive Officer on 1 December 2009. The Managing Director/Chief Executive Officer is employed under an executive service agreement. The agreement has no fixed term and  provides that: Remuneration arrangements for KMP are formalised in employment agreements. Details of these contracts are provided below. Group employees are employed by the subsidiary company A.A. Company Pty Ltd.  The Managing Director/Chief Executive Officer may terminate his employment by giving six months written notice. No STI’s or LTI’s will  apply to any financial year during which employment ceases and the treatment of LTI options previously issued will be determined at the  Board’s discretion.  The Company may terminate the Managing Director/Chief Executive Officer’s employment by six months written notice or provide payment in  lieu of the notice period based on the Managing Director/Chief Executive Officer’s fixed component plus a variable component in recognition  that termination during a financial year affects the ability to earn a performance incentive during that year. The treatment of LTI options  previously issued will be determined at the Board’s discretion.  The Company may summarily terminate the Managing Director/Chief Executive Officer’s employment if serious misconduct has occurred. Dec 02 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 $32,000 $34,000 $36,000 $38,000 $40,000 $42,000 AAco Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Mar 13 ASX Small Ordinaries Series 1  = The Company total shareholder return. Series 2  = S&P ASX small ordinaries. TOTAL SHAREHOLDER RETURN ON A $10,000 INVESTMENT OVER THE LAST TEN YEARS Annual Report 2013 31