Ann: Appendix 3Y - Dr Daniel Tillett, page-26

Dr T would have received:

1. 2,334,666 new shares using the cashless conversion (I would consider this market neutral if he did that)

2. 2,500,000 new shares by dipping in his own pockets to pay AUD 475k cash to convert options = BULLISH

3. 2,574,556 new shares by buying on market first and then cashless convert (based on assumptions in the announcement) = EXTREMELY BULLISH.

The difference between 1. and 3. above is only an additional 1.8% (239,890 shares) increase to Dr T’s RAC holdings (tiny in percentage terms). But Dr T is willing to risk an additional $475k for this tiny increase of 1.8% to his holding = EXTREMELY BULLISH.

I for one would have forgone the extra 1.8% increase in holding to keep an extra $475k in cash in my pockets.

Dr T has indicated in the announcement that he is intending to pay additional cash of $475k previously just to cash convert, but now there is combination of on market buys and option conversions. There is NO indication in the announcement that Dr T will limit his addition cash spend to the $169k. So either more on market buys (up to $475k) or use the remaining cash to cash convert.