The Company has agreed in the employment contract entered into...

The Company has agreed in the employment contract entered into by Mark Strizek with the Company dated 15 May 2011, subject to obtaining Shareholder approval, to issue Options to the value of $100,000 (Related Party Options) to Mark Strizek (or his nominee) provided the exercise price is at a premium to market and on the terms and conditions set out below. Mr Strizek and the Company have further agreed to issue Options to the value of $50,000 only, with the deemed share price at the time of issue will be 0.7 cents per share and the exercise price 1.1 cents per share resulting in 13,784,615 Related Party Options on a pre-consolidation basis. Options to Mark at 1.1c as performance incentive.

I imagine the conversation went like this...
"Great job getting the company to trade at cash value after 7 years, Mark. Here is $50k for your amazing efforts." - VML Board of Directors.

So lets get into this.

The CO has deemed shareprice of .7c as below intrinsic value.

CO has used .7c as the price to determine Marks options.

The company will buyback shares up to 1c (my guess).

Therefore Mark's 'stretch' target option conversion price of 1.1c is a gift. Not an incentive to create shareholder value.

Please correct me if I've read that wrong.

IMHO DYOR