Ann: Notification regarding unquoted securities - NEU, page-8

Seriously, some of these comments - you would think those that invest on the sharemarket would be aware of these simple mechanisms..

I 100% agree with @phlipper - this is a great outcome.

As per the announcement, here is the deal...

"Exercise price ($3.46 per share) is the volume weighted average price (VWAP) at which the Company's shares were
traded on the ASX in the 5 days preceding the date of issue of the Options.
- Vested options may be exercised no earlier than 1 year after the issue date.
- All options lapse 4 years after the issue date.
- Options are subject to the following vesting conditions:
(a) when the Company determines to progress NNZ-2591 to a Phase 2b or Phase 3 clinical trial following a positive Phase
2 clinical trial outcome, or executes a partnering transaction for NNZ-2591;
(b) when the Company executes a partnering transaction for trofinetide outside North America, or submits a Marketing
Authorisation Application for trofinetide in the European Union, the United Kingdom or Japan.
(c) on acceptance by the US FDA of the filing of a New Drug Application for trofinetide.
- The options carry no entitlement to vote or participate in new issues."

What this means for those unaware of finance mechanisms and employee share schemes...

# Gerry can choose to pay $3.46 per share for up to 500,000 shares not before 3/2/2023 but by 3/2/2027.
# Lauren can choose to pay $3.46 per share for up to 250,000 shares not before 3/2/2023 but by 3/2/2027.
# other non-key personnel/employees have been issued 700,000 shares which they too can choose to pay $3.46 per share not before 3/2/2023 but by 3/2/2027

NOTE: These arent freebies. If the SP is under $3.46 then the options are worthless and wont be exercised.

Obviously this is a huge incentive for the employees to ensure the SP to be higher than it is now - and is part of their salary/employment schemes. IMO this would have been a major part of both Gerry and Lauren's remuneration...otherwise NEU would be paying more salary.

My only hope is that each employee in NEU gets options on some sort of scale - as IMO it is a much better reward/performance mechanism than free shares at discounted VWAP...which most companies do.