I know that a few shareholders, including myself, were left a...

I know that a few shareholders, including myself, were left a little confused by the recent announcements concerning Incentive Schemes (September 12 and October 6). There seemed to be some differing understandings.

To clear the matter up for myself, I contacted Ross Murdoch to request further clarification.  He has confirmed that the following understanding is correct.

• Up to 63 million options will be issued in total (i.e <5% of issued capital).
• 33,948,159 of those options will be allocated to employees other than the CEO and Board, and do not require shareholder approval. These were allocated on 6 Oct and reported in 3B.
• The Board & CEO have also been offered options, subject to shareholder approval. (Sep 12 Ann.)
• The exercise price of all options is $0.023.
• Vesting conditions apply to all employee options, including a service requirement. However Directors’ options will not be subject to share price performance vesting conditions.
• Options will vest in three tranches at annual intervals, commencing 11 September 2017.
• Vesting is conditional on any 5 Day VWAP during the period commencing 3 months prior to and extending to 3 months post the tranche dates being $0.032 in 2017 (i.e > 50% above invitation VWAP of $0.021), $0.042 in 2018 (i.e > 100% above invitation VWAP) and $0.053 in 2019 (i.e >150% above invitation VWAP). These vesting conditions apply to all employees including the CEO.
• Vesting conditions for employees other than the CEO and Board can be waived by the Board. However this is not the intention of the Board. The same condition applied to prior conditional rights ESOP and was never applied.
• Any vesting conditions for the CEO and Board cannot be waived without shareholder approval.