options, page-9

Don't have a problem with employee share plans either in the form of Options or loans. Price should be "at market" ....averaged over set period is fairly standard practice.

Employee share plans can be part of a overall salary package in lieu of extra cash so can be used to reward good performance, retain good staff, develop loyalty/ownership and provide incentive.

I worked in the Pharmaceutical Industry and yearly allocation of shares under the particular scheme we had (loan) worked well as part of an incentive package. If you left the Company you had to pay out the loan. With the Option schemes you have to convert the Options with a payment before the expiry date. Naturally you only convert if the shares are above the issue price. We all hope the Share Price increases substantially over the next few years.

I have no problem with a conversion price of $2.50. Quite fair given the share price over the last 6 months.