Ann: Appendix 3Y (A Lacaze), page-2

Funny lots of post about State st becoming a major share holder but not one on AL selling. First let me acknowledge the following statement by AL.

"Exercise of Employee Performance Rights and
on market sale of ordinary shares to satisfy
taxation liabilities"

This seems very reasonable but lets look at some of the other things in this document. she acquired 332K shares She sold 230K shares which means she sold 70% of what was acquired and taxable I feel real bad for of you in AU if this is your tax rate on CG. Now before i talk about the net issue I want to past the statement about her ownership so people do not say I am slanting the issue.

Direct:
75,365 Ordinary Shares
Indirect:
2,570,780 Ordinary Shares
1,483,031 Employee Performance Right

So she has direct ownership of only 75 K shares. Now unless they have been exaggerating i know of at least 2 people on this board who have more than that.

indirect is a little harder to know. She could have used it for collateral for a loan so she has no control over it till loan is paid. It could be a trust that she has no control over for her children or charities. it could be a retirement plan. She cannot have control over it.

She has future Performance grants. 1.5M.

Now if AL had good reason to believe the stock would go up in the next year maybe 2.0 AUD like many on this board do would it not make sense to hold? If it was me and I thought there was even a 75% of stock going up AUD 2.00 I would take the stock use it as loan security and borrow the money for a year or two. NC did this years ago and it was published. I know it is done in AU. I did it several times in US.

Just one qualifier I know nothing about AU tax law. I am basing most of my comments on US law. if someone knows something I am missing about AU law please tell me what it is.