risk free loan, page-6

I am very late to this thread, but have to vent as I see they have deferred two of these resolutions to another EGM that we have to pay for so they can adjust down their strike price.

I agree, this finance resolution completely outrageous!!!
Its stupid enough asking for a loan in this climate considering how hard it is to get Commercial loans.
If the basta%$ wants to finance his own oppies thats one thing (and they shouldnt be doing that any in this climate - see how Owen Heggarty's stupidity has cost OZL shareholders), but to expect the Co to get finance is a joke when they know they cant get finance period!!!

Has anyone seen a resolution like this before?
NO RISK LOAN - ie. if share price goes down, thats all they have to repay. Where can I get a deal like that?

Or have I completely misunderstood the resolutions????

Here is the relevant paragraph if you want to have a good laugh:-

The loans will also be of limited recourse in that the total amount under the loan that
Mr Richards or Mr Paterson, or his nominee as the case may be, will be liable for, including
any interest, will be no greater than the value of the Shares acquired under the loan. That is,
in the event the Shares obtained under the loan are sold for an amount less than the amount of
the loan, Mr Richards and Mr Paterson, or his nominee as the case may be, will only be
required to repay the loan, including any interest, to the amount of the sale proceeds (in
proportion to the number of Shares sold). The Company will have no other recourse against
Mr Richards or Mr Paterson, or his nominees as the case may be, in respect of the balance of
the loan and any interest not met by the sale proceeds. In the event that the Shares obtained
under the loan are sold for an amount greater than the amount of the loan, Mr Richards or
Mr Paterson, or his nominee as the case may be, would be entitled to any excess of the sale
proceeds over the outstanding amount of the loan (in proportion to the number of Shares
sold).