IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 26 Share-based payments (continued) Vesting of share rights (continued) The Company's TSR performance for share rights issued during the current financial year will be assessed against the following members of the S&P ASX 300 Metals and Mining Index: Peer companies * Beadell Resources Ltd * Silver Lake Resources Ltd * Alacer Gold Corp * Ausdrill Ltd * MACA Ltd * Regis Resources Ltd * Orocobre Ltd * Resolute Mining Ltd * Saracen Mineral Holdings Ltd * Westgold Resources Ltd * St Barbara Ltd * Galaxy Resources Ltd * Dacian Gold Ltd * OceanaGold Corp * BHP Billiton Ltd * Pilbara Minerals Ltd * Western Areas Ltd * Alumina Ltd * Rio Tinto Ltd * Evolution Mining Ltd * Newcrest Mining Ltd * Sims Metals Management Ltd * Iluka Resources Ltd * Magnis Resources Ltd * Syrah Resources Ltd * Lynas Corp Ltd * Sandfire Resources Ltd * Fortescue Metals Group Ltd * OZ Minerals Ltd * Perseus Mining Ltd * Northern Star Resources Ltd * Gold Road Resources Ltd * Metals X Ltd * South32 Ltd * BlueScope Steel Ltd * Doray Minerals Ltd * Mineral Resources Ltd Absolute TSR The absolute TSR scorecard for the three year measurement period will be determined based on an increase in absolute TSR of the Company over the three year measurement period. The vesting schedule of the performance rights subject to absolute TSR testing is as follows: Absolute TSR performance Level of vesting 10% per annum return 3% Above 10% per annum and below 20% per annum return Straight line pro-rata between 33% and 100% Above 20% per annum return 10% Service rights - short-term incentive scheme Under the Group's short-term incentive (STI) scheme, Executives and selected employees receive 50% of the annual STI achieved in cash and 50% in the form of rights to deferred shares in Independence Group NL (referred to as service rights). The service rights are granted following the determination of the STI for the performance year and vest in two equal tranches. The first tranche of 50% vests on the 12 month anniversary of the STI award date, and the second tranche of 50% vests on the 24 month anniversary of the STI award date. The service rights automatically convert into one ordinary share each on vesting at an exercise price of nil. The Executives and employees do not receive any dividends and are not entitled to vote in relation to the service rights during the vesting period. If an Executive or employee ceases to be employed by the Group within the vesting period, the service rights will be forfeited, except in circumstances that are approved by the Board on a case-by-case basis. The number of rights to be granted is determined based on the 5 day VWAP of the Company's shares after release of the Independence Group NL financial statements. Set out below are summaries of movements in service rights during the year: Independence Group NL 52 116 — IGO ANNUAL REPORT 2018 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018