Ann: Notice of Annual General Meeting/Proxy Form , page-24

re: Ann: Notice of Annual General Meeting/Pro... Siameseparrot, it has been stated that the objective of these resolutions is to provide the directors with a mechanism to participate in the future development of the Company and an incentive for their future involvement with and commitment to the Company. The granting of these options is not a reward for the manner in which they have carried out their duties during the past twelve months or a reward for any targets that have been met by the company during that period. It is a risk free reward for a service that may or may not occur at some future point in time. Nothing more nothing less.

Can you explain to me how your friend can justify the issuance of so many options to both Executive and Non-Executive Directors merely as an incentive for their future involvement with and commitment to the Company based on their current remuneration packages?

Q. Are any of the directors a party to a binding Executive Service Agreement that commits them to the company for the next two years?
A. No.

Q. What level of commitment does Scott Sadleir provide to be granted 500,000 risk free options?
A. He attends 12 board meeting per year.

Q. What would prevent an Executive Director or a Non-Executive Director being granted these risk free options and then merely resigning from their position?
A. Nothing.

Q. Would they be required to surrender these options in those circumstances?
A. No.

As there is no money being put at risk by the directors, am I correct in assuming that you and your friend both agree that the proposals are overly generous?

Stagman