the state of play, page-59

Well gee, sorry for asking. I thought someone might know is all. Touchy lot aren't you.

For those interested, the 40 million shares are issued at the price on May 29. Basically, when certain hurdles are reached (these relate to the share price and/or things like getting a drug into phase 2b or 3 trials) , he can access the shares and repay the loan, and take the profit. If the shares never reach the threshold price, the company can effectively decide that the value of the shares equals the value of the loan, so that he can't end up with a nasty loss. So in a way, its like having 40 million options with the exercise price being whatever it was on May 29. The actual options he has (the 10 million) are exercisable if he is still there after 3 years or if there is takeover where someone gets over 50% of the company. They are free (ie he pays nothing to exercise them). Basically, the 40 million are incentives to improve the company and the 10 million is an incentive to stay with the company.