INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) Executive contracts Remuneration and other terms of employment for the executives are formalised in service agreements. The service agreements specify the components of remuneration, benefits and notice periods. Participation in the STI and LTI plans is subject to the Board's discretion. Other major provisions of the agreements relating to remuneration are set out below. Name Position Term of agreement Base salary including super- annuation Notice period Termination benefit $ Peter Bradford Managing Director No fixed term 800,000 6 months 6 months 1 Keith Ashby Head of Governance & Risk No fixed term 350,000 3 months 6 months Rob Dennis Chief Operating Officer No fixed term 500,000 3 months 6 months Matt Dusci Chief Growth Officer No fixed term 500,000 3 months 6 months Sam Retallack Head of People & Culture No fixed term 350,000 3 months 6 months Scott Steinkrug Chief Financial Officer No fixed term 450,000 3 months 6 months 1. In addition to the above, Mr Bradford is entitled to a maximum termination benefit payable of up to 12 months of average annual base salary should the Company terminate the employment contract without cause, but only if such payment would not breach ASX Listing Rules. A termination benefit of three month's remuneration is payable to Mr Bradford should the Company terminate the employment contract due to illness, injury or incapacity. Remuneration expenses for KMP's The following table shows the cash value of earnings realised by executive KMP during FY17. The cash value of earnings realised include cash salary, superannuation and cash bonuses received in cash during the year and the intrinsic value of LTI vesting during the financial year. This is in addition and different to the disclosures required by the Corporations Act and Accounting Standards, particularly in relation to share rights. As a general principle, the Accounting Standards require a value to be placed on share rights based on probabilistic calculations at the time of grant, which may be reflected in the Remuneration Report even if ultimately the share rights do not vest because performance and service hurdles are not met. By contrast, this table discloses the intrinsic value of share rights, which represents only those share rights which actually vest and result in shares issued to a KMP. The intrinsic value is the Company’s closing share price on the date of vesting. Actual cash value of earnings realised for FY17 Name Fixed remuneration (TFR) 1 STI 2 LTI 3 Total Actual Remuneration $ $ $ $ Peter Bradford 800,000 280,000 - 1,080,000 Keith Ashby 333,975 60,000 - 393,975 Rob Dennis 498,255 120,000 - 618,255 Matt Dusci 420,000 120,000 - 540,000 Joanne McDonald 280,000 37,500 4 - 317,500 Sam Retallack 333,975 60,000 - 393,975 Scott Steinkrug 3 420,000 120,000 181,420 721,420 1. Includes base salary and superannuation. 2. Represents the amount paid in the financial year for performance in FY16. 3. Value of share rights granted in FY13 and vesting on 1 September 2016 at a market price of $3.65. No other executives were entitled to the LTI rights which were granted in FY13 as they were not employed by the Company at that time. 4. Pro-rata entitlement based on appointment as Company Secretary on 5 October 2015. Independence Group NL 25 56 — IGO ANNUAL REPORT 2017 DIRECTORS’ REPORT 30 JUNE 2017 (continued)