text: **Employee Share Option Incentive Plan**
  
  A Share Option Incentive Plan has been established where employees of the consolidated entity with 
  appropriate seniority and length of service have been issued with options over ordinary shares of Mermaid 
  Marine Australia Limited. 
  
  The options cannot be transferred and are not quoted on the ASX. 
  
  On 19 June 1999, 730,000 options were issued under this plan to employees. Since the date of issue 
  115,000 options have expired due to the non exercise of the options by employees who have since left 
  Mermaid’s employ. Of the remaining 615,000 ordinary shares under option pursuant to the Employee 
  Option Plan, half (307,500) may be purchased within 12 months of 18 June 2000 at an issue price of 
  60 cents per share and half (307,500) may be purchased within 12 months of 18 June 2000 at an issue 
  price of 70 cents per share. 
  
  The market value of ordinary Mermaid Marine Australia Limited shares closed at 30 cents on 30 June 
  2000. 