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## Directors’ Report 

## Number of Shares held by Key Management Personnel 

No shares were granted as remuneration to staff or directors 

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## Consequences of performance on shareholder wealth 

In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect of the current financial year and the previous five financial years: 

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## Payments to Related Parties of Directors 

Legal services at normal commercial rates totalling $119,804 (2013: $103,492) were provided by Francis Abourizk Lightowlers, a law firm in which Mr Peter Francis is a partner and has a beneficial interest. 

Consultancy fees were paid for executive duties totalling $40,000 (2013: $40,000) provided by NewStar Ventures Ltd, a corporation in which Dr John Chiplin is a director and has a beneficial interest. 

## Employment Contracts 

The employment conditions of Dr Peter French, the Chief Executive Officer and Managing Director, are formalised in a contract of employment prepared on his appointment as Chief Executive Officer and dated 4 June 2010. Dr French’s appointment with the Company may be terminated with the Company giving six months’ notice or by Dr French giving six months’ notice. The Company may elect to pay Dr French an equal amount to that proportion of his salary equivalent to six months’ pay in lieu of notice, together with any outstanding entitlements due to him. The Company may, at any time, by notice in writing terminate Dr French’s contract immediately in the event of serious misconduct. 

The employment conditions of Carl Stubbings, the Chief Business Officer, are formalised in a contract of employment dated 28 May 2012. Mr Stubbing’s appointment with the Company may be terminated with the Company giving three months’ notice or by Mr Stubbings giving three months’ notice. The Company may elect to pay Mr Stubbings an equal amount to that proportion of his salary equivalent to three month’s pay in lieu of notice, together with any outstanding entitlements due to him. The Company may, at any time, by notice in writing terminate the contract immediately in the event of serious misconduct. 

