Structure The remuneration of non-executive directors consists of director’s fees. Non-executives are entitled to receive  retirement benefits and to participate in any incentive programs. There are currently no specific incentive  programs. The non-executive Chairman receives a base fee of $60,000 and each other non-executive director receives a  base fee of $40,000 for being a director of the Consolidated Entity. There are no additional fees for serving on any  board committees. Mr Cook who is a non-executive director receives $215 per hour for each hour worked on behalf of the company.  These consultant fees are exclusive of non-executive directors fees.  Non-executive directors have long been encouraged by the Board to hold shares in the Company. The shares are  purchased by the directors at the prevailing market share price.  The remuneration report for the non-executive Directors for the year ending 30 June 2011 and 30 June 2010 is  detailed in Table 1 and Table 2 respectively of this report. The Company aims to reward executives with a level and mix of remuneration commensurate with their position  and responsibilities within the Company. The current remuneration policy adopted is that no element of any  executive package be directly related to the Company’s financial performance. Indeed there are no elements of  any executive remuneration that are dependent upon the satisfaction of any specific condition. Remuneration  is not linked to the performance of the Company but rather to the ability to attract and retain executives of the  highest calibre. The overall remuneration policy framework however is structured in an endeavour to advance/ create shareholder wealth. In determining the level and make-up of executive remuneration, the Remuneration Committee engages external  consultants as needed to provide independent advice. Remuneration consists of the following key elements: The proportion of fixed remuneration and variable remuneration for each executive for the period ending 30 June  2011 and 30 June 2010 are set out in Table 1 and Table 2. Executive contracts of employment do not include any guaranteed base pay increase. Fixed remuneration is  reviewed annually by the remuneration committee. The process consists of a review of the Company, business  unit and individual performance, relevant comparative remuneration internally and externally and, where  appropriate, external advice independent of management. Executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including  cash and fringe benefits such as motor vehicles. It is intended that the manner of payment chosen will be optimal  for the recipient without creating undue cost for the Company. The fixed remuneration component for executives for the period ending 30 June 2011 and 30 June 2010 are set  out in Table 1 and Table 2. FIXED REMUNERATION STRUCTURE 4. EXECUTIVE REMUNERATION ARRANGEMENTS REMUNERATION POLICY •  Fixed remuneration (base salary and superannuation); and •  Variable remuneration (share options). 31  DIRECTORS’ REPORT