Ann: Application for quotation of securities - RAC, page-17

thanks for being transparent, Dr T.

The importance for the market is:

1. the risk of Dr T selling any heads to exercise bonus options is off the table.
2. I estimate Dr T wanting to buy (at least) $18,000 more RAC in coming weeks/months. $600,000 cash to exercise his bonus options offsetting mortgage of 6% for 6 months (options expiry period) = $18,000.
3. Dr T still doesn’t have his ideal long position in RAC.

FYI - I exercised my bonus options this week. From a purely financial perspective I wanted to hold off as long as possible, like Dr T, however I didn’t trust Automic, from all the problems posted on HC, to get the options exercise administration done correctly or on time, so wanted to ensure there was plenty of time to follow them up, if needed. Also, didn’t trust myself … work, family, life maybe get extremely busy unexpectedly in May/June.

However, the for Piggy back options, I will hold off converting until the last few months, no matter how much in the money they become. This is to maximise my exposure to RAC upside. I rather buy on market now/near future at $1.50 to $2, than convert FREE options at $1.25. This will double my RAC upside than just converting the piggies in near future.

To each their own.