IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 25 Share-based payments (continued) Vesting conditions of performance rights granted (continued) Peer companies * Alacer Gold Corp * Orocobre Ltd * Beadell Resources Ltd 1 * OZ Minerals Ltd * Dacian Gold Ltd * Perseus Mining Ltd * Doray Minerals Ltd * Pilbara Minerals Ltd * Evolution Mining Ltd * Regis Resources Ltd * Fortescue Metals Group Ltd * Resolute Mining Ltd * Galaxy Resources Ltd * Sandfire Resources NL * Gold Road Resources Ltd * Saracen Mineral Holdings Ltd * Iluka Resources Ltd * Silver Lake Resources Ltd * Lynas Corp Ltd * South32 Ltd * Magnis Resources Ltd * St Barbara Ltd * Mineral Resources Ltd * Syrah Resources Ltd * Newcrest Mining Ltd * Western Areas Ltd * Northern Star Resources Ltd * Westgold Resources Ltd * OceanaGold Corp 1. To be removed from peer group of companies following delisting of the company. Absolute TSR The absolute TSR scorecard for the three year measurement period will be determined based on an increase in absolute TSR of the Company over the three year measurement period. The vesting schedule of the performance rights subject to absolute TSR testing is as follows: Absolute TSR performance Level of vesting 10% per annum return 33% Above 10% per annum and below 20% per annum return Straight line pro-rata between 33% and 100% Above 20% per annum return 100% Service rights - short-term incentive (STI) scheme Under the Group's short-term incentive (STI) scheme, Executives and selected employees receive 50% of the annual STI achieved in cash and 50% in the form of rights to deferred shares in Independence Group NL (referred to as service rights). The service rights are granted following the determination of the STI for the performance year and vest in two equal tranches. The first tranche of 50% vests on the 12 month anniversary of the STI award date, and the second tranche of 50% vests on the 24 month anniversary of the STI award date. The service rights automatically convert into one ordinary share each on vesting at an exercise price of nil. The Executives and employees do not receive any dividends and are not entitled to vote in relation to the service rights during the vesting period. If an Executive or employee ceases to be employed by the Group within the vesting period, the service rights will be forfeited, except in circumstances that are approved by the Board on a case-by-case basis. The number of rights to be granted is determined based on the 5 day VWAP of the Company's shares after release of the Independence Group NL financial statements. Set out below are summaries of movements in service rights during the year: Independence Group NL 53 IGO ANNUAL REPORT 2019 — 113