view - Western Desert Resources

DIRECTORS’ REPORTEmployee share option planWestern Desert Resources Limited operates anownership-based scheme for executives and senioremployees of the consolidated entity. In accordance withthe provision of the plan, as approved by shareholders ata previous annual general meeting, executives and senioremployees with the consolidated entity may be grantedoptions to purchase parcels of ordinary shares at anexercise price as determined at the time by the directors.Each employee share option converts into one ordinaryshare of Western Desert Australia Limited on exercise.No amounts are paid or payable by the recipient onreceipt of the option. The options carry neither rights todividend nor voting rights. Options may be exercised atany time from the date of vesting to the date of their expiry.The number of options granted is calculated in accordancewith the performance based formula approved byshareholders at a previous annual general meeting. Theoptions granted expire within 2 to 4 years of their issue,or one month of the resignation of the executive or senioremployee, whichever is the earlier.During the financial year, the following share-basedpayment arrangements were in existence.Options series Grant date Expiry date Quantity Grant date Vesting datefair value(1) Issued 31 March 2009 31 March 2009 30 September 2011 300,000 0.0448 Vests at date of grant(2) Issued 27 April 2009 27 April 2009 23 April 2012 500,000 0.0873 Vests at date of grant(3) Issued 20 November 2009 20 November 2009 31 December 2012 200,000 0.2255 Vests at date of grant(4) Issued 16 December 2009 16 December 2009 31 December 2012 500,000 0.1906 Vests at date of grant(5) Issued 20 January 2010 20 January 2010 31 December 2012 600,000 0.1917 Vests at date of grantThere are no further services or performance criteriathat need to be met in relation to options granted underservices (1) - (5) before the benefit interest vests inthe recipient.26