Latour SA must deliver 300,000 ordinary shares, for little or no consideration, if its cumulative operating profit over three years exceeds 3,000,000. At the end of the first year the cumulative figure is 3,200,000; management expects losses in the next two years that would bring the final cumulative figure below the target. The profit attributable to ordinary equity holders is 4,500,000 for 3,000,000 shares on a weighted average basis. Write a note determining whether these shares enter diluted earnings per share, separating case facts, rule and judgement.