1.5M options issued at a cost of $100 with value at conversion...

1.5M options issued at a cost of $100 with value at conversion ($0.30) of $450,000.00. Have I misunderstood?

For every cent above 30c at conversion the value of the shares increases by $15,000.00 (less the $100 package cost on the first cent).

As a shareholder I would be interested to learn what the cash value of the financial services provided was and what those services were. I'm sure the provider of the services believes (as do I) that the future value of these options (and resultant shares) will well exceed the nominated $0.30 conversion price or else they wouldn't enter into this arrangement. My concern lies in the perceived value of the services to the shareholders and the upside potential far outweighing that value in the not-too-distant future.

At a conservative estimate (in my own mind) of $.0.73/share estimated by Corporate Connect in their recent analysis, this package will be worth $643,900 after costs in only 12 months. As we near construction completion, and with the current and projected climate for our product, this could be a conservative estimate.

My personal belief is that the use of options as incentives and as supplier/service payment is a flawed concept because it continually skews perceptions of share value.

Managers get paid a salary to manage and lead. By all all means provide a cash incentive as is provided to other workers. If that doesn't work for managers they can buy shares on the market with the cash incentive payments or go somewhere else. Current practice shows very low hurdles for many managers in many companies in achieving these incentives (I've actually seen one package publicly offered to a manager where it would be awarded if the share price dropped). If we need to pay managers more let's do it, but let's get away from the short term focus on share price that skews decision making and puts senior management into the same frame of mind / frame of reference as politicians.

We need to think long term. And we need to act accordingly. The Shareholder Value argument has severely damaged our economy in my view and continues to skew decision making into the now, losing sight of the future.

I may be wrong. Married twice and had 6 teens. Used to being wrong.