ClearVue Technologies : Employee Securities Incentive Plan

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CLEARVUE TECHNOLOGIES LIMITED ACN 071 397 487

EMPLOYEE SECURITIES INCENTIVE PLAN

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For personal use only

T A B L E O F C O N TE N T S

1.	DEFINITIONS AND INTERPRETATION .........................................................................	1
	1.1	Definitions ......................................................................................................	1
	1.2	Interpretation ................................................................................................	6
	1.3	Applicable Laws ...........................................................................................	6
	1.4	Rounding .......................................................................................................	7
	1.5	Headings........................................................................................................	7
	1.6	Constitution ...................................................................................................	7
2.	PURPOSE ...................................................................................................................	7
3.	COMMENCEMENT OF THE PLAN..............................................................................	7
4.	ELIGIBILITY AND GRANT ...........................................................................................	7
	4.1	Participation ..................................................................................................	7
	4.2	Selection ........................................................................................................	7
	4.3	Awards that may be made under the Plan..............................................	7
	4.4	Invitation ........................................................................................................	8
	4.5	Application....................................................................................................	8
	4.6	Multiple Invitations ........................................................................................	8
5.	TERMS OF AWARDS ..................................................................................................	8
	5.1	Board determination....................................................................................	8
	5.2	Awards to be recorded ...............................................................................	9
	5.3	Listing..............................................................................................................	9
6.	EMPLOYEE SHARE TRUST...........................................................................................	9
7.	OPTIONS AND PERFORMANCE RIGHTS....................................................................	9
	7.1	Performance Hurdles and Vesting Conditions .........................................	9
	7.2	Option and Performance Right entitlements ...........................................	9
	7.3	Participant rights ...........................................................................................	9
	7.4	No transfer of Options or Performance Rights ........................................	10
	7.5	Exercise Period for Options........................................................................	10
	7.6	Method of exercise ....................................................................................	10
	7.7	No issue unless cleared funds ...................................................................	10
	7.8	Cashless exercise of Options.....................................................................	11

7.9 Net settlement of Performance Rights in connection with Tax Liability

......................................................................................................................11

	7.10	Minimum Exercise .......................................................................................	11
	7.11	Actions on exercise ....................................................................................	11
	7.12	Lapsing of Options and/or Performance Rights .....................................	11
	7.13	Cancellation of Options and/or Performance Rights............................	12
8.	SHARE AWARDS .....................................................................................................	12
	8.1	Invitation to acquire Share Awards..........................................................	12
	8.2	Acquisition Price .........................................................................................	12
	8.3	Performance Hurdles and/or Vesting Conditions ..................................	12
	8.4	Participant rights .........................................................................................	13
9.	LOAN FUNDED SHARES ..........................................................................................	13
	9.1	Invitation to acquire Loan Funded Shares ..............................................	13
	9.2	Acquisition Price .........................................................................................	13
	9.3	Performance Hurdles and/or Vesting Conditions ..................................	13
	9.4	Invitation of Loan ........................................................................................	14
	9.5	Loan amount...............................................................................................	14
	9.6	Application of Loan moneys.....................................................................	14

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	9.7	Loan Interest................................................................................................	14
	9.8	Repayment of Loan ...................................................................................	14
	9.9	Participant rights .........................................................................................	16
	9.10	Dividends .....................................................................................................	16
	9.11	Application of proceeds of transfer, sale or Buy-Back..........................	16
	9.12	Offset of outstanding amount of the Loan .............................................	16
10.	GOOD LEAVER .......................................................................................................	16
11.	BAD LEAVER ...........................................................................................................	17
12.	FORFEITURE .............................................................................................................	17
	12.1	Forfeiture Conditions ..................................................................................	17
	12.2	Fraudulent or dishonest actions................................................................	18
13.	SURRENDER OF SHARE AWARDS AND LOAN FUNDED SHARES .............................	18
14.	BUY-BACK ..............................................................................................................	18
	14.1	Buy-Back ......................................................................................................	18
	14.2	Buy-Back procedure ..................................................................................	19
	14.3	Buy-Back period..........................................................................................	19
	14.4	Buy-Back mechanism ................................................................................	19

15. RIGHTS ATTACHING TO SHARE AWARDS, LOAN FUNDED SHARES AND PLAN

	SHARES	...................................................................................................................	19
	15.1	Shares to rank equally................................................................................	19
	15.2	Dividends .....................................................................................................	19
	15.3	Dividend reinvestment...............................................................................	19
	15.4	Voting rights.................................................................................................	19
16.	DISPOSAL RESTRICTIONS ........................................................................................	20
	16.1	Board determines .......................................................................................	20
	16.2	No transfer ...................................................................................................	20
	16.3	Board actions ..............................................................................................	20
	16.4	Overriding restrictions on dealing.............................................................	20
	16.5	Entitlements .................................................................................................	20
17.	CHANGE OF CONTROL EVENT...............................................................................	20
18.	ADJUSTMENT FOR CAPITAL RECONSTRUCTIONS...................................................	21
	18.1	Reorganisation ............................................................................................	21
	18.2	Notification of adjustments .......................................................................	21
	18.3	Limited right to participate in new issues ................................................	21
	18.4	Fairness in application................................................................................	21
19.	CONTRAVENTION OF APPLICABLE LAWS ..............................................................	22
20.	ADMINISTRATION OF THE PLAN .............................................................................	22
	20.1	Plan to be administered in accordance with the Rules........................	22
	20.2	Regulations..................................................................................................	22
	20.3	Delegation...................................................................................................	22
	20.4	Decisions final..............................................................................................	22
	20.5	Attorney and agent ...................................................................................	22
	20.6	Notice...........................................................................................................	22
	20.7	Delivery of notices: .....................................................................................	23
21.	PLAN AMENDMENT ................................................................................................	23
	21.1	Amendment of Plan...................................................................................	23
	21.2	Amendment by addendum .....................................................................	24
22.	TERMINATION OR SUSPENSION..............................................................................	24

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	22.1	Termination or suspension..........................................................................	24
	22.2	Resolution to terminate, suspend, supplement or amend ...................	24
23.	NO EMPLOYMENT CONTRACT ...............................................................................	24
24.	REGULATORY RELIEF ...............................................................................................	25
25.	NON-EXCLUSIVITY..................................................................................................	25
	25.1	Non-exclusivity ............................................................................................	25
	25.2	Relationship to other equity plans............................................................	25
26.	MISCELLANEOUS ....................................................................................................	25
	26.1	Enforcement................................................................................................	25
	26.2	Listing Rules ..................................................................................................	25
	26.3	No fiduciary capacity ................................................................................	26
	26.4	Tax Liability...................................................................................................	26
	26.5	Governing law ............................................................................................	26

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This Employee Securities Incentive Plan comprises the main body of the Plan which applies to all Participants under the Plan and any Addenda to the Plan which may be added from time to time. The Board may from time to time add addenda to the Plan to cater for specific requirements for Participants resident in jurisdictions outside of Australia.

1. DEFINITIONS AND INTERPRETATION

1.1 Definitions

In these Rules, unless the context otherwise requires, the following terms and expressions will have the following meanings:

Acquisition Price means:

1. in relation to a Share Award, the issue price or purchase price of the Share Award offered for subscription or purchase (if any and as the case may be) to an Eligible Participant under clause 8.2 as specified in the Invitation Letter; or
2. in relation to a Loan Funded Share, the price at which the Company offers the Loan Funded Share to an Eligible Participant as specified in the Invitation Letter, being normally equal to or above the Market Value of the Loan Funded Share.

After Tax Dividend Amount means that amount equal to the total cash dividend paid on Loan Funded Shares held by a Participant less the amount remaining after deducting the maximum taxation amount payable in respect of that cash dividend, calculated using the Participant's highest marginal tax rate.

Applicable Law means any one or more or all, as the context requires of:

1. the Corporations Act and/or any other applicable securities or corporations laws;
2. the Listing Rules;
3. the Constitution;
4. the Income Tax Assessment Act 1936 (Cth), the Income Tax Assessment Act 1997 (Cth) and/or any other applicable taxation laws, each as amended from time to time;
5. any practice note, policy statement, regulatory guide, class order, declaration, guideline, policy, procedure, ruling, judicial interpretation or other guidance note made to clarify, expand or amend paragraphs (a), (b), and (d); and
6. any other legal requirement that applies to the Plan and/or the Loan Agreement (if applicable),

which apply to the jurisdiction in which the Eligible Participant receives the Award and the jurisdiction in which the Company is incorporated and primarily operates from time to time.

Application means an application by an Eligible Participant to participate in the Plan made in response to an Invitation Letter.

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