Icon Energy Limited Annual Report 2017

6. LONG-TERM INCENTIVES The Company did not issue Long-term Incentives (LTI) for the 2016-17 year. The 2013-14 LTI plan was the only LTI plan award that was in operation. It lapsed during the year bringing the balance of LTIs to nil at the end of the year. Table 3: Details of LTI Performance Rights on Issue Name Date of Grant Rights on issue at 30 June 2016 (number) Issued during the 2017 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 2017 (number) Date Rights First Vest & Can Be Exercised Ray James 4-Mar-14 1,800,310 – 147,625 – – – 1,800,310 – 30-Jun-16 Kevin Jih 4-Mar-14 1,041,175 – 85,376 – – – 1,041,175 – 30-Jun-16 Martin Berry 4-Mar-14 410,604 – 33,670 – – – 410,604 – 30-Jun-16 Total 3,252,089 – 266,671 – – – 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-14 30-Jun-15 30-Jun-16 30-Jun-17 Closing Share Price 0.14 0.05 0.03 0.025 Number of Shares 615,774,351 607,026,150 601,443,520 597,556,938 Market Cap $86,208,409 $30,351,307 $18,043,306 $14,938,923 Profit (Loss) after tax ($1,017,551) ($5,863,547) ($5,602,229) ($5,670,094) 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 2016 meeting in anticipation of offers being made under the Plan later in 2017 financial year (Corporate KPIs). The STI corporate key performance indicator for the 2017 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 2016. The LTI key performance indicator for the 2017 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 2016. However, due to the impact of the oil price, the Oil and Gas industry have suffered significantly in terms of profit and share price. Following management’s recommendations the Board determined not to make any offers under the Plan in respect of either the 2017 financial year STI or 2017 financial year LTI. REMUNERATION REPORT – AUDITED for the year ended 30 June 2017 FINANCIAL REPORT 30 ICON ENERGY ANNUAL REPORT 2017