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## Cardno Limited and its Controlled Entities for the year ended 30 June 2010 

## 34. BUSINESS COMBINATIONS CONTINUED 

## Contingent consideration 

Cardno Limited has agreed to pay an amount of $1,775,170 to the selling shareholders of ITC Group as additional consideration relating to the collection of accounts receivable as at 1 January 2010. This has been included in purchase consideration based on estimates of the amount that will be payable to the acquiree. 

Cardno Limited has agreed to pay the selling shareholders of Australian Underground Services Pty Ltd additional consideration of $1,000,000 if the acquiree’s normalised EBIT over the period 1 January 2010 to 31 December 2010 is $1,700,000. This amount has been included in the purchase consideration based on estimates of the acquiree’s financial performance over the earn-out period. 

The goodwill is attributable to the skills and technical talent of the employee’s of the ITC Group and Australian Underground Services, the synergies expected to be achieved from integrating the Company into the Group’s existing operations. 

The Group incurred acquisition related costs of $137,506 relating to external legal fees and due diligence costs. These legal fees and due diligence costs have been included in administrative expenses in the Group’s consolidated statement of comprehensive income. 

The assets and liabilities arising from the acquisitions are as follows: 

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