Flexpower Inc. (FLXP)

[PayDirt!]

06.22.07
Executive Compensation
Senior management was issued restricted stock in early March of this year. The amount of stock was a negotiated amount, that reflected the stock price at the time and the value of the employees services for the upcoming year.The risk / reward aspect of this compensation was to allow executives to benefit from the business success they created, as reflected in the stock price at the point in time when the shares could be traded.
To issue shares on a monthly basis at the current valuations at the time would be counter-productive, effectively eliminating the upside reward for good performance. In other words, as the stock rose, they would receive fewer shares each month, limiting the incentive aspect of creating value for all shareholders.[/I]