Sharky:

Lets evaluate the behavior of Connacher as a company and specifically, the behavior of its executive personnel and members of the BOD with respect to their behavior. For this evaluation, we have to remember qualified personnel whom share in the Connacher Stock Option Plan are exempt from dilution by virtue of the Plan being exempt from dilution. As such, each time we are diluted by a financing the insiders escape dilution. Thus, if through their compensation plan, if there is a funancing, borrowing of capital by the isssuance of new shares) the insiders are exempt from the effects of such dilution. Thus if an insider prior to a 50% dilution holds 100,000 shares, following the dilution they control 200,000 shares. By virtue of this example, an insider who controlled 100,000 shares following 4 100% dilutions would control 800,000 shares. Under such a plan, given enough dilutions, the insiders eventually gain absolute control of the Corporation. All financed by the common shareholders who have in fact if they started out with 100,000 shares now effectively control the equivalent of 12,500 of their original 100,000 shares value.

Thereby, in the early days and years of corporate existence when share values are low, enormous advantage can be gained by insiders participating in the ESOP. Does it not make you feel better that you have directly paid for their increasing ownership of equity, while yours and mine was declining?

Brian