agm 07 11 08, page-4

I reckon you're right Novac.

Note the grant of the big options packages here.

No wonder there is no director buying going on ATM. (a) They can't. (b) They don't need to.

This seems a clever way around the insider trading rules it appears.

Also, some will recall my earlier post about the fact that director David Craig might need to be compensated in the event of a takeover given that his first batch of options required that the SP trade above $1.75 for a continuous period of six or twelve months (I can't recall which): something which clearly hasn't happened.

I am not sure whether his options package incorporated provision for a change of control event or takeover. In the event that it didn't I suggested that there would have to be some pay-off down the track.

Perhaps this is it.

A lazy batch of 500,000 options.

While the vesting period is twelve months, this is brought forward in the event of a takeover or change of control event (see clause 13 Annexure A)

So, if the takeover goes through at say $3 he's in the money to the tune of $625,000. Not bad money for a few months as a director: with director's fees on top!

The Black and Scholes valuation they've put forward here is meaningless - way understated - given what we know is currently going on.

This is rotten IMO and smells of snouts in the trough in a fairly solid way.

The Board decisions going forward will be very interesting.....

No doubt there is a lot of money being spent on legal advice to ensure their every move is covered. Not pretty.

BUSH