There has been discussion on the board the last few days about management most likely wanting to get more options/shares approved at the upcoming AGM. To my knowledge, most companies will get this transaction done at that time each year, BUT I beleive there could also be other times this can be asked throught the year via a seperate proxy. Nevertheless, I am trying to show that this request is not locked to the AGM.

Lets explore the "what if management were denied any further stock based compensation at the AGM" What would this mean and what would be the repercussions?

IMO, it would be most likely detremental to the company as we know it. The message management would get is that they are not liked and worthy of the grant. They would be insulted. They would probably say "whats the use to perform for this lack of appreciation?"

Not only are they insulted, but part of their pay has just been taken away. Is anyone here that works ok with their paycheck cut in half? Are you more likely to do a better job going forward after that, or more likely not to care and do as little as you can?

Not only the morale of management may be taken away at this time, but also part of the funding the company needs. The company gets funds from these INCENTIVE STOCK OPTIONS everytime they are exercised. As they are exercised, they become shares and sold for management to get their pay. In SLI there has been very little being sold, only what had to be. There has been more of late because of warrants being exercised, but that should be percieved as a good thing.

Now, lets look at if the vote was to say "no" to anymore shares being released from the treasury. This would mean no future PP,s. How can a company operate without an influx of cash? Especially an exploration company that depends on these very sources for income. We are not like a company that has REVENUE, that makes us different. And when we cut off the only source of revenue, a company dies.

Food for thought.