INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Remuneration report (continued) Additional statutory information (continued) (iii) Terms and conditions of the share-based payment arrangements Share rights Share rights under the Company's EIP are granted annually. The shares vest after three years from the start of the financial year. On vesting, each right automatically converts into one ordinary share. The Executives do not receive any dividends and are not entitled to vote in relation to the rights during the vesting period. If an Executive ceases employment before the rights vest, the rights will be forfeited, except in limited circumstances that are approved by the Board. The value at grant date for share rights granted during the year as part of remuneration is calculated in accordance with AASB 2 Share-based Payment . Refer to note 27 for details of the valuation techniques used for the EIP. Grant date Vesting date Grant date value 22 May 2017 1 July 2019 $2.30 24 November 2016 1 July 2019 $2.26 18 November 2016 1 July 2019 $2.21 22 January 2016 1 July 2018 $1.20 16 December 2015 1 July 2018 $1.56 9 January 2015 1 July 2017 $2.55 20 November 2014 1 July 2017 $2.84 28 February 2014 1 July 2016 $2.14 28 February 2013 1 July 2015 $2.06 (iv) Reconciliation of share rights held by KMP The table below shows the number of share rights that were granted, vested and forfeited during the year. Balance at the start of the year Granted during the year Vested during the year 1 Forfeited during the year 2 Balance at the end of the year (unvested) Maximum value yet to vest Name Year granted Number Number Number 3 % Number 3 % Number $ Peter Bradford 2017 - 135,000 - - - - 135,000 199,337 2016 217,391 217,391 113,304 2015 175,365 - - - - - 175,365 - Keith Ashby 2017 - 17,000 - - - - 17,000 29,485 2016 19,361 19,361 9,179 Matt Dusci 2017 41,000 - - - - 41,000 71,110 2016 62,174 62,174 29,476 2015 50,154 - - - - - 50,154 - Rob Dennis 2017 49,000 - - - - 49,000 84,986 2016 78,116 78,116 37,033 Joanne McDonald 2017 - 14,000 - - - - 14,000 24,282 2016 10,586 10,586 5,019 Sam Retallack 2017 - 17,000 - - - - 17,000 29,485 2016 19,361 19,361 9,179 2015 10,473 - - - - - 10,473 - Scott Steinkrug 2017 - 41,000 - - - - 41,000 71,110 2016 62,174 62,174 29,476 2015 50,154 - - - - - 50,154 - 2014 66,272 - 49,704 75 16,568 25 - - Independence Group NL 29 60 — IGO ANNUAL REPORT 2017 DIRECTORS’ REPORT 30 JUNE 2017 (continued)