Establishment of Long-Term Incentive Plan

3753309 v1





MARKET RELEASE
24 December 2020

Establishment of Cavalier Corporation Limited Long-Term Incentive Scheme

Cavalier Corporation Limited ("Cavalier") (NZX: CAV) today announces the issue of performance
rights that are convertible into ordinary shares of Cavalier to selected executive employees pursuant
to a new long-term incentive scheme ("Scheme").

The Scheme is designed to promote employee retention, further align shareholder and management
interests and reward performance that underpins the achievement of Cavalier’s business strategy
and long-term shareholder wealth creation.

Under the Scheme, the rights are convertible into shares on 1 May 2023 if, among other things, the
Company’s total shareholder return exceeds 14% per annum over the period from 1 November 2020
to 1 May 2023 (the performance period).

The number of shares that will be issued to each executive employee will depend on the extent to
which total shareholder return exceeds 14% per annum over the performance period and the price
of a Cavalier ordinary share at the time the rights are convertible into shares, save that the total
number of shares to be issued to all the executive employees would not exceed the 3% threshold in
the NZX Listing Rules.

These shares will be subject to restrictions on dealing for a two-year restriction period, as follows:
• 40% of shares will be able to be dealt with on and from the issue date;
• 30% of shares will be able to be dealt with one year from the issue date; and
• 30% of shares will be able to be dealt with two years from the issue date.

The share price at the start of the performance period is $0.3141, being the volume weighted
average sale price for a Cavalier share, calculated on all price setting trades of shares which took
place on the NZX Main Board over the 20 business days before 1 November 2020.


ENDS

For further information please contact:

George Adams
Chairman
thgadams@gmail.com
+64 21 555 040
Jackie Ellis
Media and Investor Relations
Jackie@ellisandco.co.nz
+64 27 246 2505