Iao Kun Group Holding Co Ltd fka IKGH

[abh3vt]

Tika, here is the incentive share schedule. Note:

a) No shares were awarded in FY09 as the company did not exceed the minimum threshold.

b) Current guidance for net is $36-39MM not including the recently announced MOU to acquire KGP.

c) There is an outside chance that they do not meet the minimum threshold of 36.8MM net and get NO shares for FY10 performance.

d) Any incentive shares issued for FY10 performance probably would not happen until after the annual report is officially filed, sometime in Q2 of FY11.


Incentive Consideration
In addition to the ordinary shares described above, Spring Fortune shall be entitled to receive ordinary shares for each of the years 2009, 2010, 2011, and 2012 in which AGRL has net after tax income that equals or exceeds the target specified for such year in the purchase agreement (the “Incentive Target”), as follows:

Year Incentive Target Incentive Shares
2009
$ 16,000,000 to $16,999,999 1,150,000
   $ 17,000,000 to $17,999,999 2,464,000
   $ 18,000,000 to $18,999,999 3,981,000
   $ 19,000,000 to $19,999,999 5,750,000
   $ 20,000,000 and above 7,841,000

2010
$ 36,800,000 to $37,799,999 4,210,000
   $ 37,800,000 to $38,799,999 6,300,000
   $ 38,800,000 to $39,799,999 8,069,000
   $ 39,800,000 to $40,799,999 9,586,000
   $ 40,800,000 to $41,799,999 10,900,000
   $ 41,800,000 and above 12,050,000

2011
$ 49,500,000 and above 2,573,000
2012 $ 58,000,000 and above 2,573,000