This appendix 3Z is not related to Resolution 5 at the AGM.
As far as I can see Resolution 5 relates to issuing new shares and there are no options involved.
In my opinion it would be a despicable act to vote this down. The explanatory notes make it quite clear that Mr Storf fulfilled his obligations under the agreement and was entitled to these shares in August, 2017. That's why the "deemed price" of 16c; the shares were trading at that price at that time last year.
