Westgold Resources Limited Annual Report 2020

91 Westgold Resources Limited Annual Report 2020 29. SHARE-BASED PAYMENTS (CONTINUED) (d) Share options PEPOs Share options are issued for nil consideration. The exercise price, vesting conditions and expiry date are determined by the Board of Directors. The expiry date is not less than two years from issue date. Any options that are not exercised by the expiry date will lapse. Upon exercise, these options will be settled in ordinary fully paid shares of the Company. ZEPOs Unlisted employee options are issued to senior management under the Employee Share Option Plan, the principle terms being: – The Employee Options have been issued for nil consideration; – Each Employee Option carries an entitlement to one fully paid ordinary share in the Company for each Employee Option vested; – Vesting only occurs after the end of the Performance Periods (30 June 2020 and 30 June 2021) and the number of Employee Options that vest (if any) will depend on: – Growth in Return on Capital Employed over the Performance Periods; and – Total shareholder return relative to the S&P/All Ordinaries Gold Index over the Performance Periods. – Options issued that vest will expire if not exercised on the vesting date; – Unvested Employee Options lapse on cessation of a holder’s employment with Westgold; – Any Employee Options that do not vest after the end of the Performance Periods will automatically lapse; and – No amount is payable by a holder of Employee Options in respect of the shares allocated upon vesting of the Employee Option. Summary of options granted under the Employee Share and Option Plan 2020 Number 2020 WAEP 2019 Number 2019 WAEP Outstanding at the beginning of the year 16,999,600 1.87 15,000,000 2.12 Granted during the year 684,141 0.00 1,999,600 0.00 Exercised during the year (10,530,000) 2.04 – – Lapsed/cancelled during the year (2,046,043) 0.95 – – Outstanding at the year end 5,107,698 1.64 16,999,600 1.87 Exercisable at the year end 3,625,000 2.31 15,000,000 2.12