Ann: Acquisition of LIFX and Share Placement, page-304

I struggle to support a resolution that proposes to issue performance rights to anybody based on achieving a certain level of turnover, particularly with a manufactured product. Certainly revenues are important but revenue in itself can send a business broke very quickly if the sales are being made at prices that are below break even. There is little point in the potential recipient of the performance rights selling below cost because his shares will be worthless anyway if the company is driven into insolvency. I much prefer performance rights that are based on actual EBITDA. Achievement of realistic but challenging EBITDA targets means we all benefit from the effort to drive revenues higher. Higher revenues with corresponding increase in costs only benefits the manufacturer. Not saying it will happen but this resolution is open to potential abuse.