Employee Salary Sacrifice and Incentive Schemes, page-2

Glad you raised this. To include this scheme within the normal procedural rubber stamping of the convertible note undertaking with Lind is slight of hand and irrelevant to the process. In fact it could be viewed as deceptive as it will no doubt be carried through as part of the general vote. Furthermore as I have previously stated it is contrary to the spirit of salary sacrifice. You are right to question the nebulous value that may be given to the shares.

If say management were already in OEM or TO talks, this would be an "insider" give me to staff. As the Chairperson and JM have both recently emphasised that NUH is not up for sale and they prefer to grow the company, there remains the option for an OEM deal. The likely increase in sp should that happen would constitute an undefined gift to staff.

It is inferred from the following paragraph of explanatory notes on this subject that management have sustained future growth of the company in mind, thereby excluding notion of any forthcoming TO. Salary sacrifice in order to achieve such and ensure future security of staff should lead to sufficient ultimate reward from growth of the company.

5. RESOLUTION 8 – APPROVAL OF EMPLOYEE SHARE AND SALARY SACRIFICE PLAN
5.1 General
Resolution 8 seeks Shareholder approval for the adoption of the employee
incentive scheme titled “Employee Share and Salary Sacrifice Plan” (Share Plan)
and for the issue of Shares under the Share Plan in accordance with Listing Rule
7.2 (Exception 13(b)).
The objective of the Share Plan is to attract, motivate and retain key employees
and the Company considers that the adoption of the Share Plan and the future
issue of Shares under the Share Plan will provide selected employees with the
opportunity to participate in the future growth of the Company which does not
unduly impact on the cash reserves of the Company.
Importantly, the Share Plan provides a cost effective method of remunerating key
employees and will allow the Company to spend a greater proportion of its cash
reserves on its operations than it would if alternative cash forms of remuneration were
given to these employees.

Surely key employees are free to buy shares in the company at any time. That would provide incentive enough. Why are alternative methods of remuneration necessary when the point of salary sacrifice is to sustain the future of the company? The reason for inclusion of this share scheme to compensate for salary sacrifice may become evident over the next few months if something is cooking. For the time being it is just another dilution of value to current shareholders.