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AXIOM MINING LIMITED
ANNUAL REPORT 2015
29
Directors’ report
continued
GROUP FINANCIAL REPORT
Remuneration report (continued)
c. Performance rights plan (continued)
The issue of shares on exercise of the performance rights must be within three years from the approval by the shareholders
and:
–
are subject to Volume Weighted Average Price (‘VWAP’) hurdles with rights vesting only after the 30 day VWAP has
exceeded the relevant hurdles; and
–
a further six months must elapse after satisfaction of the VWAP performance condition before the performance rights can
be exercised.
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.
The 6,666,661 rights relating to Mr Mount were cancelled subsequent to the year-end as detailed in Resolution 6 of the
March 2015 AGM Notice of Meeting.
The shareholders at the 31 March 2015 AGM approved for 2,400,000 short term performance rights and 9,600,000 long
term performance rights to be granted under the Axiom Director and Executive Performance Right Plan. As at the date of
this report, the rights have not been issued.
Number of
rights
Expiry date
Fair value
per share
at approval
date
VWAP
hurdle
Number
Vested
Ryan Mount
Short term
2,400,000
–
(1)
0.165
n/a 2,400,000
Long term
2,400,000 28 February 2017
0.057
34.5
–
2,400,000 28 February 2018
0.054
43.5
–
2,400,000 28 February 2019
0.052
55.5
–
2,400,000 28 February 2020
0.050
69.0
–
(1)
Expires 12 months after the date of issue.
Short Term Incentives Rights (STI Rights)
Mr Mount was to be issued 2,400,000 Rights (STI Rights) vesting immediately upon approval by the shareholders
(approved on 31 March 2015) and execution of a service agreement between the Company and Mr Mount (executed
21 May 2015).
However, the rights can only be exercised by Mr Mount after the Appeal of the Proceedings has been completed and
a decision handed down.
Long Term Incentive Rights (LTI Rights)
Mr Mount was to be issued 9,600,000 Rights (LTI Rights) upon approval by the shareholders (approved on 31 March 2015)
and execution of a service agreement between the Company and Mr Mount (executed 21 May 2015) in tranches where the
Company’s Share price exceeds the following thresholds during the specified periods (each a Performance Condition):
Number of
rights issued
in each tranche
Period
Price threshold
2,400,000
1 March 2016 to 28 February 2017
34.5 cents
2,400,000
1 March 2017 to 28 February 2018
43.5 cents
2,400,000
1 March 2018 to 28 February 2019
55.5 cents
2,400,000
1 March 2019 to 28 February 2020
69.0 cents
Once vested, the LTI Rights will be exercisable six months after the end of the relevant measurement period.