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## VARIABLE REMUNERATION – LONG TERM INCENTIVE (LTI) 

The objective of the LTI plan is to reward executives in a manner that aligns remuneration with the creation of shareholder wealth. 

LTI – Share options 

Structure 

LTI awards to executives are made under the Metals X Limited Employee Option Scheme and are delivered in the form of shares options. The number of options issued is determined by the policy set by the remuneration committee and is based on each executive’s role and position with the Consolidated Entity. 

The share options will vest after one year or as determined by the Board of Directors and executives are able to exercise the share options for up to three years after vesting before the options lapse. Where a participant ceases employment prior to the vesting of their share options, the share options are forfeited. Where a participant ceases employment after the vesting of their share options, the share options automatically lapse after six months of ceasing employment. 

Table 3 provides details of LTI options granted and the value of options granted, exercised and lapsed during the year. 

Hedging of equity awards 

The Company does not have a policy to prohibit executives from entering into arrangements to protect the value of unvested LTI awards. 

## 5. COMPANY PERFORMANCE AND THE LINK TO REMUNERATION 

Remuneration is not linked to the performance of the Company but rather on the ability to attract and retain executives of the highest calibre. The overall remuneration policy framework however is structured in an endeavour to advance/create shareholder wealth. 

The Metals X Limited Employee Option Scheme has no direct performance requirements but has specified time restrictions on the exercise of options. The granting of options is in substance a performance incentive which allows executives to share the rewards of the success of the Company. 

The Consolidated Entity’s performance is reflected in the following table: 

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