Frontier Energy LimitedASX: FHE

Option Plan Terms

Mar 1, 2022 at 5:17 AM UTC · MarketScreener

For personal use only

FRONTIER ENERGY LIMITED ACN 139 522 553

(Company)

EMPLOYEE SHARE OPTION PLAN

Last approved by Shareholders on 6 February 2018.

For personal use only

TABLE OF CONTENTS

1.	DEFINITIONS AND INTERPRETATION .........................................................................	1
	1.1	Definitions ......................................................................................................	1
	1.2	Interpretation ................................................................................................	4
2.	PURPOSE ...................................................................................................................	5
3.	COMMENCEMENT AND TERM..................................................................................	6
4.	OFFERS OF OPTIONS ................................................................................................	6
	4.1	Offer ...............................................................................................................	6
	4.2	Offer Document ...........................................................................................	6
	4.3	Personal Offer................................................................................................	6
	4.4	Nominee ........................................................................................................	6
	4.5	Minimum Contents of Offer Document.....................................................	6
	4.6	Number of Options.......................................................................................	7
	4.7	Consideration for grant of Options ............................................................	7
	4.8	Option Exercise Price ...................................................................................	7
	4.9	Vesting Conditions........................................................................................	7
	4.10	Share Restriction Period ...............................................................................	7
	4.11	Deferred Taxation.........................................................................................	8
	4.12	Quotation of Options ...................................................................................	8
	4.13	Limit on Offers................................................................................................	8
5.	ACCEPTANCE OF OFFER ..........................................................................................	8
	5.1	Acceptance of Offer...................................................................................	8
	5.2	Board's right to reject...................................................................................	8
	5.3	Participant Agrees to be Bound.................................................................	8
	5.4	Lapse of Offer ...............................................................................................	8
6.	GRANT OF OPTIONS.................................................................................................	9
	6.1	Grant of Options...........................................................................................	9
	6.2	Approvals.......................................................................................................	9
	6.3	Restrictions on Transfers, Dealings and Hedging......................................	9
7.	VESTING AND EXERCISE OF OPTIONS .....................................................................	9
	7.1	Vesting Conditions........................................................................................	9
	7.2	Vesting Condition Exceptions ...................................................................	10
	7.3	Exercise on Vesting.....................................................................................	10
	7.4	One or Several Parcels...............................................................................	10
	7.5	Cashless Exercise of Options .....................................................................	10
8.	ISSUE OF SHARES ....................................................................................................	11
	8.1	Issue of Shares .............................................................................................	11
	8.2	Blackout Period, Takeover Restrictions and Insider Trading..................	11
	8.3	Withholding .................................................................................................	11
	8.4	Rights attaching to Shares.........................................................................	11
	8.5	Share ranking ..............................................................................................	11
	8.6	Quotation on ASX.......................................................................................	12
	8.7	Sale of Shares ..............................................................................................	12
9.	RESTRICTION ON DEALING IN SHARES ..................................................................	12
	9.1	Restriction Period ........................................................................................	12
	9.2	Waiver of Restriction Period ......................................................................	12
	9.3	No disposal of Restricted Shares...............................................................	12

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	9.4	ASX Imposed Escrow..................................................................................	13
	9.5	Enforcement of Restriction Period............................................................	13
	9.6	Lapse of Restriction Period ........................................................................	13
10.	LAPSE OF OPTIONS.................................................................................................	13
	10.1	Lapsing of Option .......................................................................................	13
	10.2	Fraud and Related Matters.......................................................................	14
11.	EXCHANGE DUE TO CHANGE OF CONTROL.........................................................	14
12.	PARTICIPATION RIGHTS AND REORGANISATIONS ................................................	14
	12.1	Participation Rights.....................................................................................	14
	12.2	Adjustments for Reorganisation................................................................	15
	12.3	Notice of Adjustments................................................................................	15
	12.4	Cumulative Adjustments ...........................................................................	15
13.	OVERRIDING RESTRICTIONS ON ISSUE AND EXERCISE..........................................	15
14.	AMENDMENTS ........................................................................................................	16
	14.1	Power to amend Plan ................................................................................	16
	14.2	Adjustment to Option Terms......................................................................	16
	14.3	Notice of amendment...............................................................................	16
15.	TRUST	.......................................................................................................................	16
16.	MISCELLANEOUS ....................................................................................................	17
	16.1	Rights and obligations of Participant.......................................................	17
	16.2	Power of the Board ....................................................................................	18
	16.3	Dispute or disagreement ...........................................................................	18
	16.4	ASIC relief.....................................................................................................	18
	16.5	Non-residents of Australia..........................................................................	18
	16.6	Communication..........................................................................................	18
	16.7	Attorney .......................................................................................................	19
	16.8	Costs and Expenses....................................................................................	19
	16.9	Adverse Tax .................................................................................................	19
	16.10	Data protection..........................................................................................	20
	16.11	Error in Allocation........................................................................................	20
	16.12	No fiduciary capacity................................................................................	20
	16.13	ASX Listing Rules ..........................................................................................	20
	16.14	Enforcement................................................................................................	20
	16.15	Laws governing Plan ..................................................................................	20
SCHEDULE 1 - EMPLOYEE SHARE OPTION PLAN - OFFER DOCUMENT................................	21
SCHEDULE 2 - EMPLOYEE SHARE OPTION PLAN ACCEPTANCE FORM ...............................	23
SCHEDULE 3 - NOTICE OF EXERCISE OF OPTIONS...............................................................	25

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FRONTIER ENERGY LIMITED EMPLOYEE SHARE OPTION PLAN

The Directors are empowered to operate the Frontier Energy Limited Employee Share Option Plan (Plan) on the following terms and in accordance with the ASX Listing Rules (where applicable).

1. DEFINITIONS AND INTERPRETATION

1.1 Definitions

For the purposes of the Plan, the following words have the following meanings.

Acceptance Form means the Acceptance Form by which an Eligible Participant or Nominee (as applicable) accepts an Offer for Options, in substantially the same form as set out in Schedule 2 or as otherwise approved by the Company from time to time.

ASIC means the Australian Securities and Investments Commission. Associated Body Corporate means:

a related body corporate (as defined in the Corporations Act) of the Company;
a body corporate which has an entitlement to not less than 20% of the voting Shares of the Company; and
a body corporate in which the Company has an entitlement to not less than 20% of the voting shares.

ASX means ASX Limited (ACN 008 624 691) or the Australian Securities Exchange, as the context requires.

ASX Listing Rules means the official Listing Rules of the ASX as they apply to the Company from time to time.

Blackout Period means a period when the Participant is prohibited from trading in the Company's securities by the Company's written policies.

Board means the board of Directors of the Company or committee appointed by the Board for the purposes of the Plan.

Business Day means those days other than a Saturday, Sunday or public holiday in Western Australia and any other day which the ASX shall declare and publish is not a business day.

Change of Control means:

a bona fide Takeover Bid is declared unconditional and the bidder has acquired a Relevant Interest in at least 50.1% of the Company's issued Shares;
a court approves, under Section 411(4)(b) of the Corporations Act, a proposed compromise or arrangement for the purposes of, or in connection with, a scheme for the reconstruction of the Company or its amalgamation with any other company or companies; or

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in any other case, a person obtains Voting Power in the Company which the Board (which for the avoidance of doubt will comprise those Directors immediately prior to the person acquiring that Voting Power) determines, acting in good faith and in accordance with their fiduciary duties, is sufficient to control the composition of the Board.

Class Order means ASIC Class Order 14/1000 (or any amendment to or replacement of that Class Order).

Closing Date means the date on which an Offer is stated to close.

Company means Frontier Energy Limited (ACN 139 522 553).

Corporations Act means the Corporations Act 2001 (Cth), as amended from time to time.

Director means any person occupying the position of a director of any Group Company (including an alternate director or managing director appointed in accordance with the relevant constitution).

Eligible Participant means:

a Director (whether executive or non-executive) of any Group Company;
a full or part time employee of any Group Company;
a casual employee or contractor of a Group Company to the extent permitted by the Class Order; or
a prospective participant, being a person to whom the Offer is made but who can only accept the Offer if an arrangement has been entered into that will result in the person becoming an Eligible Participant under Rules (a), (b) or (c) above,

who is declared by the Board to be eligible to receive grants of Options under the Plan.

Expiry Date means, in respect of an Option, the date that the Option lapses, (if it has not already otherwise lapsed in accordance with the Plan).

Grant Date means, in relation to an Option, the date on which the Option is granted.

Group means the Company and each Associated Body Corporate.

Group Company means the Company or any Associated Body Corporate.

Holding Lock has the meaning given to that term in the ASX Listing Rules.

Marketable Parcel has the meaning given to that term in the ASX Listing Rules.

Market Value means, at any given date, the volume weighted average price per Share traded on the ASX over the five (5) trading days immediately preceding that given date, unless otherwise specified in an Offer Document.

Nominee means a nominee of an Eligible Participant that is one of the following:

an immediate family member of the Eligible Participant or (subject to
2

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