Ann: Loyalty Options Shortfall Notice, page-14

It's completely different to an entitlement issue Ted, given your 20 years experience you should appreciate this. We are discussing the shortfall. These were practically free options under the setup of a 'loyalty' issue, entitlement issues require those wanting shortfall to pay a price that has a relationship market value (10% disc / 20% discount - whatever the price was stated on the term sheet). These 5m options were gifted to a select few - while shareholders (both who bought on market and IPO) requested shortfall missed out.

I can assure you that shortfall for the majority of capital raises do not go to existing holders - unless explicitly detailed in the prospectus.

I'm calling you out as either a beneficiary to some or all of the 5m options, or you lack understanding of what has happened here. 5m options (the shortfall) worth hundreds of thousands of dollars of our company have been given to mates of management - they have sold a chunk (approx 2%) of our $10m company for $4,000! - while we had to pay market value for our share of the company.

and you said "Yes I am fine with it."