Speciality Metals International Limited Annual Report 2020

58 Speciality Metals International Limited Annual Report 2020 Notes to the Consolidated Financial Statements continued NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Page | 59 (b) Performance Rights The following table details the number and movements in performance rights issued as employment incentives during the year: 2020 Number Total vested and unexercised at 30 June 2020 2019 Number Total unvested and unexercisable at 30 June 2019 Outstanding at the beginning of the year 25,000,000 25,000,000 25,000,000 25,000,000 Granted during the year - - - - Converted during the year 1 (25,000,000) (25,000,000) - - Outstanding at the end of the year - - 25,000,000 25,000,000 (c) Performance rights – key terms and conversion to shares 25,000,000 unlisted options were granted to Directors as an employment incentive following approval by shareholders at the General Meeting held on 22 June 2018. The key terms of the performance rights, in accordance with the terms approved by shareholders, are as follows: Type of Performance Right: Each Right entitles the Holder to 1 fully paid ordinary share in the Company upon exercise. Expiry Date: 22 June 2020 (2 years after the issue date) Vesting: The Rights vest upon satisfaction of the following conditions: (a) the Company completes the acquisition of Mt Carbine Quarries Pty Ltd and associated mining leases; or (b) the Company share price on ASX trades on at least 3 consecutive business days above $0.05. 1 Fully expensed during the 2018/2019 financial year due to the vesting condition relating to the completion of the acquisition of Mt Carbine Quarries Pty Ltd and associated mining leases being satisfied on 28 June 2019. Shares were issued on 2 August 2019. (d) Options The following table details the number and movements in options issued as employment incentives during the year. 2020 Number Total vested and unexercised at 30 June 2020 2019 Number Total unvested and unexercisable at 30 June 2019 Outstanding at the beginning of the year - 5,000,000 - - Granted during the year 5,000,000 - - - Converted during the year - - - - Outstanding at the end of the year 5,000,000 5,000,000 - - (e) Option vesting conditions 5,000,000 listed options were granted to Interim CEO & Senior Technical Advisor, K. MacNeill, as an incentive following his appointment 7 May 2020 for an initial one (1) year term. The options will expire on 5 May 2023 and are subject to vesting conditions. The key terms of the options, as announced on 13 May 2020, are as follows: Type of Performance Right: Each option entitles the holder to 1 fully paid ordinary share the Company upon exercise. Expiry Date: 5 May 2023 Vesting: 2,000,000 Options exercisable at $0.04 will vest upon the successful completion of a six (6) month period under the services agreement; and 3,000,000 Options exercisable at $0.06 will vest upon the successful completion of a twelve (12) month period under the services agreement; and