key mates, page-46

Following on from what Spicer69 started Friday .... re an "ex gratia gift" to the scientists who suffered from their involvement in OP ......

I take it this issue is likely to come up for a vote at the AGM: with a Management belief (not legal or moral) that these scientists should be in some way compensated for their (self-inflicted) OP loss.

The "science" of extraction/purification of a range of bio-effectives has been done & I presume well documented as SLA intellectual property - & the scientists have been renumerated for their labours. I further presume any unique "intellectual property" arising out of the solvent extraction techniques developed has been patented to SLA's benefit. With millions of $$$ having been already paid by SLA shareholders to the scientists for getting thus far, why should the SLA shareholders "pay up" again?

As a retired scientist, I recognise that a "new scientist" can readily pick up the threads (even if sparingly documented) when a "lost" scientist has "moved on". Thus, I find no relevance to the notion that these scientists are required to further SLA's scientific advancement. Contacts made over the years can be of benefit; though such contacts lose revelance as the Products gain market acceptance; which we are assured is happening.

I recollect a recent payment to Solamid of some $2.8M - in SLA shares at ~ 25/28c each - at what we are led to believe is a "bargain" price for SLA due to the OP fiasco. This $2.8M payment for plant/work carried out by Solamid in "creating" a few kg of Ropren. The OP fiasco had a silver lining?

I also recollect that about October 2005 SLA claimed to be on track to perfect a more efficient method of delivery to a patient of Ropren - up to a hundred-fold reduction in the required dose of Ropren - & it was announced that development of this improved method of delivery was to be perfected by "end of March quarter, 2006". If such an improvement in Ropren delivery was developed there would have been no need to (expensively) purchase a bigger extraction facility in ~ 2007! What are our "scientists / board up to?

OK, the morale of the team is no doubt down due to a partial loss of the big stake that had been built up in SLA (can you believe a stake of 42% in addition to renumeration?). We are led to believe that SLA will soon become very profitable & the share price will "go through the roof".......

So, give the scientists plenty of "INCENTIVE OPTIONS" exercisable at $1.50 within, say 18 months, & dependent on those scientists hanging around for 18 months. SLA was ~ $1.50 a share last year - thus the option strike price of $1.50 seems fair .....

Col8