Ann: Annual Report 2019, page-12

the options in question have expired to date because they are below the conversion threshold set at $ 1.64. no disclosure to the market is envisaged for this event, but in fact implies a decision by the directors on how to retract these options. the goal was not to assign them in order not to have to refinance them from the debt with a cash outlay at this inappropriate moment. given that this constraint on the market has been removed, the price per share can be expected to return to a realistic value of the coherent company and that in the next annual meeting with shareholders scheduled for June, the parameters for a new stock plan will be redrawn rehabilitating expired options. I believe that this last point is the key point on which the market will regulate itself in the coming months.this is the extract on which I formulated my reflections and who can be found on page 18 of the latest Appendix 4E and 2019 full year accounts.

The loans in respect of 1.5 million Loan Funded Shares expired in May 2019, with the share price at that time below the exercise price of $1.84. The Loan Funded Shares were therefore forfeited and are to be bought back by the Company at the amount of the loans and cancelled. The exercise price for 1.0 million unvested Loan Funded Shares is $1.64 per share. The directors deferred making a determination on the vesting conditions until the loan expiry date in April 2020, or an earlier date as determined by the directors. On 30 May 2018 the Company bought back 501,607 ordinary shares from Neuren Trustee Limited at the volume weighted average price for the 5 days ended 29 May 2018 in order to settle the outstanding loan of $1,560,000 relating to 2,000,000 vested Loan Funded Shares held in trust pending repayment of the loan. The remaining 1,498,393 shares were transferred from Neuren Trustee Limited to the participant.