vote no on resolution 7

Wondering what you guys think of resolution 7 to be voted on at the AGM: the issue, for no consideration, of total 42,500,000 shares to directors John Towner and Robert Lemmey some to vest immediately and some to vest upon PSC renewal.

This literally means every one of you is being asked to hand over 3.28% of the present and future value of your TEG holding, 3.28% of whatever number of shares you hold, even though the PSC hasn't yet been renewed and you're unaware of the terms upon which the renewal MIGHT ultimately be granted.

I thought these guys were already well paid for their efforts. Now we're being asked to pay them again, and handsomely to a ridiculous degree, simply because they've done that job for which they've been paid and that they'd previously undertaken to perform on agreeable terms. Don't get me wrong, I don't mind them seeing a bonus for their efforts but let's make it reasonable - say 20,000,000 options each exercisable at 10c (an extremely generous price) by 31/12/13. Wouldn't that be a more appropriate performance linked incentive and motivate them more highly to achieve the goals of the company?

The valuations of 3.0c for the rights that vest immediately and 2.43c for those that vest upon PCS renewal are a joke knowing that immediately the PSC renewal comes through the shares will we valued at many times those sums. To tell us that the total value of the rights to be granted is $589,500 to Mr Towner and $543,000 to Mr Lemmey is to treat us as fools.

Do this sum for yourself: multiply the number of shares you hold by 3.28% then multiply the result by the price you believe TEG will be 60 days after the grant of the PSC renewal. For most it'll be no small sum and that's more indicative of the real cost to you of this money grab.

If $600,000 odd is the true value of the rights then give of the guys a cash bonus of that amount upon achievement of the PSC renewal, on favourable terms, with a recommendation that they use the money to buy some more TEG shares.

Finally, I'll say I'm really disappointed with this turn of events. TEG seemed to be that extraordinary little company doing everything right for the mutual benefit of all shareholders, and with directors not feathering their own nests to the detriment of us small holders. Lesson learned.

Anyway, my suggestion is that we all vote no on resolution 7 because the cost is excessive. Let them come up with something more reasonable.