Hi Westcott,I have read the provisions for staff options in the...

Hi Westcott,

I have read the provisions for staff options in the AGM papers. What I read confirms your view that there is a date by which the option holder has to pay for the shares. The period is 3years and when payment is made the option holder has to pay the full amount plus interest. In the case of WR the amount would be $500000 plus interest. The shares are held in lock and cannot be transferred during that period unless the $500000 plus accrued interest is paid in advance. The shares can be sold at any time but if they have not already been paid for, WR would have to pay Brockman the full $500000 plus interest at the time of the sale. If the shares are sold by WR at less than the strike price for option conversion then all the proceeds must go to the company. WR would not profit in that event but Brockman still would in cash terms.

Therefore it is in WRs interest if he were to consider selling for the sale price to be well above the $500000 plus interest he has to pay to Brockman. Westcott you have provided examples at $1 and $5. I would think that WR would not sell any shares until the company has achieved its optimum level and the shares have rocketed in price. That price in my opinion before any Directors should sell any shares should be in excess of $5 and up to $10 within the next 3-5years.

Please dont take the above as a pure ramp as I will qualify my next statement by saying it is subject to all the pertinent issues outlined by the knowledgeble posters on this thread falling Brockmans way. What do you think Westcott?

cheers
eagle