meeting: incentive options, performance shares

Hi all,
I am not altogether convinced that all shareholders are totally clear on the specifics of the proposals to be voted on in the upcoming meeting.
Judging from the comments relating to the above.... there appears to be a tidal wave of disatisfaction... with the perception being that the Directors are all going to win Lotto, as soon as the Resolutions are passed.... and they WILL be passed.

From my perspective I must say that... at the very worst... I am irritated at the magnitude of the "handouts".

Why only IRRITATED and not FURIOUS (like some)???

Well, my 5 year old shareholding of EXM owes me somewhere between 4 and 5 cents per share.... and if I am to be so fortunate as to get my own money back after 5 years, albeit with the lost opportunity of bank interest on that money... then so be it... IF OTHERS MUST GAIN.

I have 2 options;

1. Don't embrace the fury.... and sleep at night.
2. Promote the fury... then toss and turn all night, whilst the Directors are trolling the depths of blissful slumber.

I decided to do an exercise, to determine the magnitude of the benefit the Incentive Options and Performance Shares would deliver to the Directors:

TIM LAGDON: 20 Million Incentive Options (4 cent strike)
90 Million Performance Shares ( s/p less .002)

Firstly, let me state the TIME FRAMES for both the above are extraordinarily generous.... given that good drill results ( within a few weeks?) could quite conceivably deliver a share price very close to the prices required to trigger the benefits embodied within.
Secondly, the TERMS AND CONDITIONS attached to taking up these "benefits" are equally generous.... and therein lies the free kick in front of goal.

However, on a financial basis... the story begins to meander.

Let's assume the share price reaches 4 cents within 3 months....( drill results are good... the market re rates us... warm and fuzzy feelings abound)

TIM then needs to trump up $800,000 to turn his Incentive options into Fully Paid Ordinary Shares.... but why would he do that... the share price may fall.... and he has just outlaid all that money .... just to break even and risk going into deficit.

Recent shareholders however, are jumping for joy... they have just enjoyed a 300% return on their investment.

TIM would wait until the share price rises much more... say... to 6 cents.... before he takes the plunge.
Our friendly shareholder though... just increased his return on investment to approximately 450%.

TIM'S Performance Shares are a somewhat different story... assuming the EXM share price is at 2 cents when the Meeting is held... and the Resolution is passed... the Performance Shares will only cost Tim 1.8 cents each... if he should ever take them up.

So when the EXM share price is at 4 cents.... Tim is laughing.... or so it seems.

No.... the Performance Shares are not tradeable.... nor do they become Ordinary Shares until the Milestone date is reached... in this case... 3 years time (assuming Tim takes them up straight after the meeting).

So it's not all peaches and cream.... sure the generosity is obvious but the delivery of performance must be maintained for up to 5 years for the Directors to MAXIMISE the benefits therein.

A statement comes to mind.... " A GOOD OREBODY CAN MAKE YOU...A BAD OREBODY CAN BREAK YOU "

The Directors benefits are generous but they do come with conditions that effectively require a sustained rise in the share price.
The Directors are largely locked in.... you and I can trade at will... in and out a hundred times... while they just look on.

Who knows... EXM shareprice may rise sufficiently enough and for long enough ... to allow all of us to trade and profit handsomely ... over and over... and then , for whatever reason, the share price settles at a level borderline for the various Director benefits to reach fruition.

My own personal opinion.... as I have said, I will cut square when the share price reaches the levels required for the benefits to begin to come into play... and I have been waiting 5 years... but when you are in a pit full of alligators... you will grasp at the tail of a dangling snake to escape from the situation.

I HOPE THE DIRECTORS MAKE A SQUILLION.... 'COS MY SHARES ARE IN MY SUPERANNUATION fUND.

Anyone who does not embrace my opinion.... simply roll up to the Meeting and, with a "seconder"... move to change the wording of the Resolutions in order to RAISE THE BARS on the Directors' benefits levels.

I reckon we are on the way to pretty good times ahead.

Cheers.