CTP salaries, page-11

mongy old chap and other interested chaps,

the full reality of the options that seem to be causing so much heart burn is to be found in the explanation for resolution 2 in the notice of general meeting posted on the asx 18th of june 2012. these options total the previously posted figure of 172,922,033 (now post consolidation 34,584,407) in favor of freestone, in which rc has a declared beneficial interest. however this total is broken into 3 tranches as follows, also noting that while the exercise price of the options is 9 cents as posted, freestone actually has to purchase these options at a cost per option which varies between tranches. Also the following are (mostly) in preconsolidation figures.

tranche 1: 48,418,169, purchase price 2.2 cents, exercise 9 cents, total cost 11.2 cents. vesting hurdle 15 cents. tranche 1 obviously has vested , with break even required sp of 11.2 cents(old), or 56 cents(new).

tranche 2: 55,335,051, purchase price 2.7 cents, exercise 9 cents, total cost 11.7 cents, vesting hurdle 20 cents(old). break even sp required of 11.7 cents(old), or 58.5 cents(new). however vesting hurdle (new) is now $1.00, and whereas it may be some time before break even, it is likely to be quite a bit longer before they vest.

tranche 3: 69,168,813, purchase price 2.4 cents, exercise 9 cents, total cost 11.4 cents, vesting hurdle 29 cents, break even sp required 11.4 cents(old), 57 cents(new). however note that vesting hurdle (new) is now $1.45.

now to summarise,
tranche 1 (now 9,683,634 new) has vested but will not break even until the sp hits 56 cents.
tranche 2 (now 11,067,010 new) will not vest until the sp hits $1.00
tranche 3 (now 13,833,762 new) will not vest until the sp hits $1.45.

considering these vesting hurdles, i rather fancy that there is incentive aplenty in the system. for myself i certainly hope that tranche 3 eventually vests since it would make my share holding account quite a bit healthier.
all of this material is readily available, it would be perhaps beneficial for some to properly research their issues before becoming unduly outraged and alarmist.

trust this helpful.