Icon Energy Limited Annual Report 2016

6. LONG-TERM INCENTIVES The Company did not issue Long-term Incentives (LTI) for the 2015-16. The only LTI plan award in operation during the year was 2013-14 LTIs. Table 3: Details of LTI Performance Rights on Issue Name Date of Grant Rights on issue at 30 June 2015 (number) Issued during the year (number) Fair Value at Grant Date $ (i) Exercise Price $ Exercised during the year (number) Vested during the year (number) Lapsed during the year (number) Rights on issue at 30 June 2016 (number) Date Rights First Vest & Can Be Exercised Ray James 4-Mar-14 1,800,310 – 147,625 – – – – 1,800,310 30-Jun-16 14-Dec-12 1,192,658 – 226,605 – – – 1,192,658 – 30-Jun-15 Kevin Jih 4-Mar-14 1,041,175 – 85,376 – – – – 1,041,175 30-Jun-16 14-Dec-12 689,751 – 131,053 – – – 689,751 – 30-Jun-15 Martin Berry 4-Mar-14 410,604 – 33,670 – – – – 410,604 30-Jun-16 Total 5,134,498 – 624,329 – – – 1,882,409 3,252,089 7. RELATIONSHIP BETWEEN REMUNERATION POLICY AND PERFORMANCE Icon Energy’s remuneration policy seeks to encourage an alignment between the performance of the Company and remuneration of its executive KMPs. It does this by including short-term and long-term ‘at risk’ incentives that only vest when executives achieve pre-determined key corporate performance objectives. The long-term incentive plan in particular links vesting of LTI plan rights to achievement of long-term company objectives such as growth in share price and market capitalisation and exploration performance which contributes to long-term shareholder value. The following table shows the Company’s Profit/Loss (after tax) for the last four years as well as the share price and market capitalisation over those years. Table 4: Company’s Profit/Loss (after tax) 30-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16 Closing Share Price 0.145 0.14 0.05 0.03 Number of Shares 533,391,210 615,774,351 607,026,150 601,443,520 Market Cap $77,341,725 $86,208,409 $30,351,307 $18,043,306 Profit (Loss) after tax $3,720,392 ($1,017,551) ($5,863,547) ($5,602,229) Short Term & Long Term Incentive The Icon Energy Limited Performance Rights Plan allows the Icon Board to make offers of performance rights to eligible employees in the Board’s absolute and unfettered discretion. The Board set corporate key performance indicators at 1st June 2015 meeting in anticipation of offers being made under the Plan later in 2016 financial year (Corporate KPIs). The STI corporate key performance indicator for the 2016 financial year was that the Icon Energy share price must achieve and maintain a price of 23.5 cents per share for at least 20 consecutive days over the year commencing 1st July 2015. The LTI key performance indicator for the 2016 financial year was that the Icon Energy share price must achieve and maintain a price of 45 cents per share for at least 30 consecutive days over the 3 years commencing 1 July 2015. However, due to the impact of the oil price, the Oil and Gas industry have suffered significantly in terms of profit and share price. Icon Energy share price has suffered a 40% decrease in 2016 financial year, the Board agreed not to make any offers under the Plan in respect of either the 2016 financial year STI or 2016 financial year LTI. REMUNERATION REPORT – AUDITED for the year ended 30 June 2016 FINANCIAL REPORT 32 ICON ENERGY ANNUAL REPORT 2016