Westgold Resources Limited Annual Report 2021

88 Westgold Resources Limited Annual Report 2021 for the year ended 30 June 2021 FINANCIAL REPORT NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 29. SHARE-BASED PAYMENTS (CONTINUED) (d) Share options and performance rights Zero Exercise Price Options (ZEPO) Unlisted employee options are issued to senior management under the Employee Share Option Plan, the principal 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 (“ROCE”) (50%); and – Total Shareholder Return relative to the S&P/All Ordinaries Gold Index over the Performance Periods (50%). – 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. Performance Rights (Rights) Unlisted Employee Performance Rights are issued to senior management under the Employee Share Option Plan, the principal terms being: – The Performance Rights have been issued for nil consideration. – Exercise Price of a Performance Right is nil – The Performance Rights measurement date is 31 March 2023 – The Performance Rights are subject to defined Performance Conditions – Growth in Relative Total Shareholder Return (“RTSR”) (25%); – Growth in Absolute Total Shareholder Return (“ATSR”) (25%); – Growth in Absolute Earnings Per Share (“EPS”) (25%); and – Operational Growth (25%). – Subject to the terms contained in this Offer, the Performance Rights will not be transferable in whole or in part (except, in the case of the Performance Right holder’s death, by his or her legal personal representative). – The Company will issue fully paid ordinary Shares ranking pari passu with the issued ordinary shares once the Performance Rights have vested. – The Company will apply for listing on the ASX of the resultant Shares of the Company issued upon vesting of any Performance Rights. – A Performance Rights holder cannot participate in dividends or bonus issues, with respect to those Performance Rights, unless those Performance Rights are vested. – A Performance Rights holder does not have any right to participate in new issues of securities in the Company made to shareholders with respect to those Performance Rights. – The Board has the right to vary the entitlements of Participants to take account of the effect of capital reor- ganisations, bonus issues or rights issues. – No amount is payable by a holder of Performance Rights in respect of the shares allocated upon vesting of the Performance Rights. Summary of options and rights granted under the Employee Share and Option Plan 2021 Number 2021 WAEP 2020 Number 2020 WAEP Outstanding at the beginning of the year 5,107,698 1.64 16,999,600 1.87 Granted during the year 1,520,181 0.00 684,141 0.00 Exercised during the year (3,694,936) 2.29 (10,530,000) 2.04 Lapsed/forfeited during the year (719,045) 0.00 (2,046,043) 0.95 Outstanding at the year end 2,213,898 0.00 5,107,698 1.64 Exercisable at the year end – 0.00 3,625,000 2.31