Notes to the Consolidated Financial Statements  Cardno Limited and its Controlled Entities for the year ended 30 June 2010 4,113,400 options issued during the 2008 and 2010 financial years and still on issue as at 30 June 2010 have not been  included in the calculation of diluted earnings per share because they are not dilutive for the year ended 30 June 2010. These options could potentially dilute basic earnings per share in the future.  Subsequent Event – Impact of Rights Issue  On 11 August 2010 Cardno completed a $49 million capital rising via a 1:6 fully underwritten renounceable rights issue.  The number of ordinary shares issued under the rights issue was 15,089,139.  The current and prior year basic and diluted earnings per share have not been adjusted by the bonus element associated  with the rights issue (factor of 1.02) as it is not material. 2010 2009 30. EARNINGS PER SHARE Basic earnings per share  The calculation of basic earnings per share at 30 June 2010 was based on  the profit attributable to ordinary shareholders of $37,597,311 (2009:  $34,153,794) and a weighted average number of ordinary shares  outstanding during the financial year ended 30 June 2010 of 85,716,101  (2009: 77,932,437), calculated as follows:  Profit attributable to ordinary shareholders  37,597,311 34,153,794 Weighted average number of ordinary shares Issued ordinary shares at 1 July  84,272,249 73,509,653 Effect of shares issued for cash consideration  1,308,010 3,201,881 Effect of shares issued in respect of employee share scheme  135,842 168,496 Effect of shares issued from conversion of convertible notes  - 1,052,407 Weighted average number of ordinary shares at 30 June 85,716,101 77,932,437 Options and rights are considered to be potential ordinary shares and are  therefore excluded from the weighted average number of ordinary shares  used in the calculation of basic earnings per share. Where dilutive, potential  ordinary shares are included in the calculation of diluted earnings per share.  Diluted earnings per share  Weighted average number of ordinary shares and potential ordinary shares  used in the calculation of diluted earnings per share reconciles to the  weighted average number of ordinary shares used in the calculation of basic  earnings per share as follows:  Profit attributable to ordinary shareholders (diluted) Profit attributable to ordinary shareholders  37,597,311 34,153,794 After-tax effect of interest on convertible notes  - - Profit attributable to ordinary shareholders (diluted) 37,597,311 34,153,794 Weighted average number of ordinary shares  (diluted)  Weighted average number of ordinary shares at 30 June  85,716,101 77,932,437 Effect of convertible notes  - 9,069 Effect of share options and rights on issue  493,905 1,066 Weighted average number of ordinary shares (diluted) at 30 June 86,210,006 77,942,572 Page 55 of 80 