>According to the Stock Option Plan for Falcon (in the Management Information Circular), options can be awarded at a lower than current market price:

Yes, they can, but they never have been, and there is currently no evidence that they intend to do that.

"The exercise price of each option is based on the market price of Falcon’s common shares at the date of grant, which may be less a discount in accordance with TSX-V policies. The exercise price of all options granted has been based on the market price of Falcon’s common shares at the date of grant, and no options have been granted at a discount to the market price."

This idea that Falcon wants people to vote so that they can issue themselves cheap options is just pure nonsense, plain and simple. In fact if that's what management was planning, it would be more beneficial if you DIDNT vote, because then your vote automatically becomes whatever management wants :)

"The securities represented by this proxy will be voted as directed by the holder, however, if such a direction is not made in respect of any matter, this proxy will be voted as recommended by Management."