Axiom 2014 Annual Report - page 38

Directors’ Report
36
Axiom Mining Limited
continued
Under the plan, participants are granted rights which vest if certain performance conditions are met. Participation in
the plan is at the Board’s discretion. Certain employees of the Company have been granted share rights as set out in their
service agreement with the Company. Apart from these, no individual has a contractual right to participate in the plan
or to receive any guaranteed benefits.
When exercisable, each right is convertible into one ordinary share.
At the AGM on 22 April 2013, shareholders approved the issue of:
––
100,000,000 performance rights to Ryan Richard Mount;
––
10,000,000 performance rights to Stephen Ray Williams; and
––
2,000,000 performance rights to Neil Francis Stuart.
The performance rights are subject to Volume Weighted Average Price (“VWAP”) hurdle’s and will vest only after the
30 day VWAP has exceeded the relevant hurdles.
Details of the unexpired rights as at 30 September 2014 are as follows:
Number of
rights
granted Grant date Expiry date
Fair value per
share at grant
approval date
cents
VWAP
hurdle
cents
Number
Vested
Directors
Stephen Williams
2,500,000
30/07/11
*
–
7.0
–
2,000,000
22/04/13
21/04/16
1.33
5.0
–
2,000,000
22/04/13
21/04/16
1.20
7.5
–
6,000,000
22/04/13
21/04/16
1.06
10.0
–
12,500,000
Ryan Mount
5,000,000
22/04/13
21/04/16
1.33
5.0
–
10,000,000
22/04/13
21/04/16
1.20
7.5
–
10,000,000
22/04/13
21/04/16
1.06
10.0
–
10,000,000
22/04/13
21/04/16
0.98
12.5
–
10,000,000
22/04/13
21/04/16
0.89
15.0
–
10,000,000
22/04/13
21/04/16
0.77
20.0
–
10,000,000
22/04/13
21/04/16
0.67
25.0
–
15,000,000
22/04/13
21/04/16
0.60
30.0
–
10,000,000
22/04/13
21/04/16
0.54
35.0
–
10,000,000
22/04/13
21/04/16
0.50
40.0
–
100,000,000
*No expiry date. Performance condition and service-based vesting conditions applies.
The shares to be issued on exercise of the performance rights must be issued within three years from approval by the
shareholders. Therefore the VWAP conditions are required to be met within two and a half years of the grant date.
A further six months must elapse after satisfaction of the VWAP performance condition before the performance rights
can be exercised. The performance rights may be exercised no later than 12 months after the satisfaction of the VWAP
performance condition.
A service-based vesting condition also applies. That is, Mr Mount and Mr Williams must remain in the service of the
Company at the time the performance rights are exercised.
Performance rights that do not vest will lapse.
The performance rights are issued for nil consideration and have a nil exercise price.
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