Remuneration Committee

Until September 2009, this was a committee of the board, where directors with a material personal interest were excluded from participation at the appropriate time. In September 2009, Mr Robert Stewart was appointed director of the Company, and appointed chair of the re-structured Nomination and Remuneration committee. The committee now comprises independent, non-executive directors.

Financial Year 2010

Company executives receive a base remuneration which is based on factors such as experience, skills and responsibility, and includes superannuation of 9%. Executive director Larry Cook's salary package includes an allowance for a discretionary bonus on achievement of certain Key Performance Indicators. During financial year 2010, Larry Cook was awarded a bonus payment of $107,100 in relation to the achievement of specific safety-related KPIs.

Future Perspectives

Remuneration packages will continue to include both fixed and at-risk components, which includes performance bonus and options. The key performance indicators will be revised to better reflect individual performance. The performance of executives will be based variously against criteria agreed bi-annually with each executive, which will include, where relevant, production, health and safety indicators in relation to specific projects, and shareholder value in relation to the group as a whole.

The Nomination and Remuneration Committee may exercise its discretion in relation to approving incentives, bonuses and executive options.

The remuneration policy is designed to attract the highest calibre of executives and reward them for performance that results in both short and long-term growth in shareholder wealth.

Non-executive directors

Non executive directors receive a superannuation contribution of 9% and do not receive any other
retirement benefits. The board policy is to remunerate non-executive directors at market rates for
comparable companies for time, commitment and responsibilities. The Nomination and Remuneration Committee determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice may be sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting, and is currently $300,000 per annum in total excluding superannuation.

Non-executive directors may be paid additional amounts as fees as the Board may determine where a non-executive director performs extra services or makes any special exertions, which in the opinion of the board are outside the scope of the ordinary duties of a non-executive director.

Fees for non-executive directors are not linked to the performance of the economic entity. These directors do not participate in the equity based remuneration designed for executives. However, to align directors' interests with shareholder interests, the directors are encouraged to acquire shares in the Company. Directors are subject to the company's share trading policy when transacting in shares.

Details of Remuneration for Year Ended 30 June 2010

Employment Contracts of Directors and Senior Executives

Mr Larry Cook, executive Director of Bounty until 26 August 2010, is employed under an Employment Contract dated 1 July 2008 and ending three years after that, provided that Mr Cook maintains a valid 457 visa.

Chief Financial Officer and Company Secretary Eryl Baron was employed under a consultancy agreement for the majority of the financial year, but is now employed under an Employment Contract.

Other managers of Bounty are employed under executive contracts, with no fixed terms, but limited to 457-visa expiry where relevant.

Proceedings on Behalf of the Company

No person has applied for leave of a Court to bring proceedings on behalf of the Company or to intervene in any proceeding to which the Company is party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

Auditor's Independence Declaration

The lead auditor's independence declaration under Section 307C of the Corporations Act 2001 is set out on page 30 and forms part of the Directors' Report for the year ended 30 June 2010.

Non-audit Services

The Board, in accordance with the advice from the Audit Committee, is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporation Act 2001. The Directors are satisfied that services disclosed below did not comprise the external auditor's independence for the following reasons:

• All non-audit services are reviewed and approved by the Audit committee to ensure they do not adversely affect the integrity and objective of the auditor; and
• The nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

During the financial year, Gould Ralph Assurance, Bounty's auditor, and its associated entities, performed non-audit services are as follows:

Signed in accordance with a resolution of the board.

Gary Cochrane
Chairman
26 September 2008