Ann: Notice of General Meeting/Proxy Form, page-3

Not quite the way I read it. Performance rights issued for nil consideration (not 5c) if either:
1. The quarry deal goes ahead OR
2. the SP is over 5c for 3 consecutive days.

I am not happy with either of these to be honest.
If the quarry deal goes ahead the directors combined get 25m shares. While I am all for aligning the directors remuneration with the shareholders interests what if the deal is a bad one for shareholders? We don't know the commercial terms for this deal yet and wont until July (after the meeting date of 22 June) yet if it goes ahead and is not regarded as being a good one by the market and the SP goes down the directors still get their shares. Personally I think the performance rights should be based on the deal AND the SP greater than 5c (not either one). I also think that a 3 day VWAP for them is way too low as it could just be a pump an dump to get the vesting conditions met. IMO it should at least be a 20 day VWAP over 5c.

I am also not happy with the valuation they give in the document for the performance right shares. It shows Mr Krause's 15m shares for example being valued at just $198,000. This is very misleading given that at the current price of 2.1c they would be worth $315,000. Further on the report it states that the valuation is based on an adjustment of the fair price for the probability of either of the vested conditions being achieved so based on this they are saying there is 62% chance of either occurring. While I don't personally have an issue with the $315,000 number to me it is BS that they are trying to say that they are worth less and they should just value the performance rights at the current SP in the document.