14. Share based payments

Notes to the Consolidated Financial Statements continued Other Information

13. Related party transactions (continued)

d. Other related party transactions

All directors have entered into the Deed of Indemnity, Insurance and Access that was approved at the Annual General Meeting held on 10 October 2000. Milton has a Remuneration and Retirement Benefits Deed with Mr R.D. Millner and Dr I.A. Pollard. During the 30 June 2004 year, Milton and the directors varied the Remuneration and Retirement Benefits Deed, whereby the maximum retirement benefit payable to a non–executive director on retirement will be the provision for the director as at 30 June 2003. On completion of the merger with WHSP, all former Milton directors other than Mr R.D. Millner resigned. Dr I.A. Pollard was paid a retirement benefit of $45,000 upon his resignation. Apart from the details disclosed in this note no director has entered into a material contract with the parent entity or Milton since the end of the previous financial year and there were no material contracts involving directors’ interests subsisting at the end of the period.

e. Loans to and from parent and controlled entities

Loans have been made between the Milton and WHSP and Milton and its wholly owned controlled entities for capital transactions. The loans between the Milton and its related entities have no fixed date of repayment and are non–interest bearing.

13 months ended 31 July 2022 $ 12 months ended 30 June 2021 (Restated) $

Amounts owed by (to) controlled entities at beginning of the period 10,251,311 (7,394,441) Loans advanced from controlled entities (5,626,681) (9,412,134) Loans advanced to controlled entities 29,493 27,057,886

Amounts owed by (to) controlled entities at end of the period Amounts owed (to) WHSP

Balance at period end

4,654,123 10,251,311 (6,730,742) –

(2,076,619) 10,251,311

14. Share based payments

Under the Employee Share Plan, shares are acquired for employees as part of their remuneration and the cost of the shares is recorded under employment costs.

Under the Senior Staff Share Plan, shares are acquired for eligible employees as part of their remuneration and held on their behalf by the trustee of the Plan. The purchase of the Plan Shares is financed by a loan from Milton.

a. Employee Share Plan

The Employee Share Plan (“ESP”) was available to all eligible employees to acquire ordinary shares in Milton in lieu of a cash bonus of up to $1,000 per year as part of the employee’s remuneration. The transaction and administration costs of acquiring the shares and administering the plan are paid by Milton. The ESP was terminated and any restrictions applying to disposal of ESP shares were waived with effect from 13 September 2021. No ESP shares were issued during the period (2021:470 shares issued at a cost of $2,080. Market value at 30 June 2021 was $2,961).

b. Senior Staff Share Plan (“SSSP”)

The SSSP was approved by shareholders at Milton’s Annual General Meeting on 9 October 2001. Eligible employees were given the opportunity to apply for Plan Shares in Milton which are subscribed for or acquired and held on their behalf by the trustee of the plan. The purchase of these Plan Shares is financed by an interest–free limited recourse loan from Milton with recourse only to Plan Shares. The loan will be repaid partially from any dividends received. Milton administers the SSSP and meets the transactional and administration costs.

On implementation of the Scheme of Arrangement (“the Scheme”) on 5 October 2021, all Milton shares under the SSSP were transferred to WHSP in exchange for fully paid ordinary shares of WHSP in accordance with the Scheme. The loans under the SSSP are to be paid by participants via dividends paid by WHSP shares over time. Shares will continue to be restricted from being transferred based on the terms of the SSSP

The Scheme requires that the Company replaces and settles the previous award with the shares of WHSP. In accordance with AASB 2, this modification results in the replacement award being a cash settled share-based payment.

The carrying amount of the liability relating to the SSSP at 31 July 2022 was $4,841,200 (30 June 2021: reserve of $2,696,570). 137,500 rights were exercised pre-scheme implementation, 18,165 rights were exercised postscheme implementation and no rights were granted for the period ended 31 July 2022 (30 June 2021: 44,000 rights exercised, 488,000 rights granted).

The exercise price attributable to the grants is the remaining loan outstanding at the date at which exercise were to occur.

Movements during the period

The following table illustrates the number of, and movements in, share rights during the year:

13 months ended 31 July 2022 $ 12 months ended 30 June 2021 (Restated) $

Outstanding at beginning of period

Granted during the period Exercised during the period Modification on implementation of the Scheme

Outstanding at period end 1,413,000 1,062,500

– 488,000 (18,165) (137,500) (1,149,757) –

245,078 1,413,000

The weighted average share price at the date of exercise for the year ended 30 June 2021 was $4.88. The rights exercised in the period ended 31 July 2022 relate to post-implementation and shares in the Company’s parent entity, WHSP.

The rights have been valued using the Black Scholes Model at original measurement date and at the date at which the Scheme was implemented. The fair value of the rights pre-implementation ranged from $0.83 to $7.55 per right. The fair value of the rights post-implementation ranged from $14.60 to $31.42 per right.