INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) FY17 Executive Management Remuneration (continued) At-risk remuneration - STIs (continued) Individual KPIs/Personal performance Assessed for each individual and designed to more specifically focus individual Executives on key performance elements that align to the Company's strategic plan and profitability drivers that are within the Executive's control. Assessed for each individual relative to 5-10 individual KPI's. 20% 8-18% * Due to the sensitive nature of some corporate KPIs the full detail on measures and achievement is confidential. Gating relating to payment of STIs for FY17 Company KPI Gating • No Operational/Financial component in the event of Company NPAT being negative before abnormal items; • No Growth component in the event of a material downward restatement of the previous years; and • No ESG component in the event of a fatality, permanent disabling injury or material environmental breach. Individual KPI Gating • No individual component in the event of a material breach of the Company’s Code of Conduct by the individual. The following table reflects a summary of eligible individual executives’ potential STI components as a percentage of TFR for amounts to be paid for FY17 compared to amounts paid for FY16: FY17 Potential STI 1 FY17 Declared 2 FY16 Potential STI 1 FY16 Paid 3 Name Position % $ % $ Peter Bradford Managing Director 70 350,000 50 280,000 Keith Ashby Head of Governance & Risk 35 74,000 30 60,000 Rob Dennis Chief Operating Officer 50 144,000 40 120,000 Matt Dusci Chief Growth Officer 50 200,000 4 40 120,000 Joanne McDonald Company Secretary 35 66,500 30 37,500 5 Sam Retallack Head of People & Culture 35 74,000 30 60,000 Scott Steinkrug Chief Financial Officer 50 132,000 40 120,000 1. % of TFR (base salary plus superannuation). 2. To be paid in September 2017 50% in cash and 50% in service rights. 3. Paid in August 2016 . 4. Amount includes FY17 STI of $139,000 plus an additional special bonus of $61,000 for extraordinary contribution on specific projects during the year. 5. Pro-rata entitlement based on commencement date. Appointed Company Secretary on 5 October 2015. The payment of all STIs is subject to Board approval. The Board has the discretion to adjust remuneration outcomes higher or lower to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any STI. FY16 KPIs As reported in the 2016 Annual Report, STIs paid in August 2016 were for the performance by eligible Executives in FY16. The following table indicates the performance of KMP against FY16 KPIs: Independence Group NL 19 50 — IGO ANNUAL REPORT 2017 DIRECTORS’ REPORT 30 JUNE 2017 (continued)