Replies to post #128403 on ERHC Energy Inc (ERHE)

[Art2004]

The original Emails between Dan Kenney and Balance are posted in the response to Walldog.

Art

[Fishdog]

This is basically what was stated at the SHM and explained further to some queries after the mikes were turned off. It has been reported here many times.

Those who cared enough and took the time to nurture and protect their investment in ERHC Energy, attended the SHM and understood this non-issue and developed a deep felt confidence in the company's management and direction.

Criticisms and questions are fine, but those armchair quarterbacks who had better things to do than attend the SHM and then would rather connect inane dots and create distrust with innuendos and distortion are slipping much lower on the respect scale here.

I have not read one post from those who were present and visited with officials after the meeting that voiced any consequential criticisms. That carries much more weight with me than non-attendees who see conspiracy in everything this company does.

[balance_builder]

Note...this is the forwarded email (already posted by Art) from D. Keeney to myself. Please note the bold type clarifies that this is pertaining to them buying shares NOW.

All of them have held positions with ERHC for many years....so why didn't they buy when they weren't restricted due to insider information? This note come AFTER the shareholder meeting (note reference to Q-2 10Q). Not prior to.




I noted your post and wanted to be responsive, especially considering that Director Howard Jeter specifically responded to the question of insider buying at the Annual Shareholders Meeting. The bottom line is that they have been advised that doing so could be illegal. Below is a communication that comes directly from the attorneys who were responding to a request from the directors regarding why they were being advised not to purchase shares during this period (the emphasis is not MINE it is the ATTORNEYS:



· Should directors or officers of ERHC purchase shares of ERHC common stock at this time?

No. ERHC's Insider Trading Policy provides that no director or officer may purchase or sell ERHC securities if such person has knowledge of non-public material information regarding ERHC. See Section F.2. of the Insider Trading Policy. Any information that a reasonable investor would consider important in deciding to purchase, sell or hold ERHC securities is considered material. See Section E of the Insider Trading Policy. Furthermore, information regarding financial results is often material information. See id. Likewise, Rule 10b-5 under the Securities Exchange Act of 1934 (the “Exchange Act”) prohibits a company’s directors and officers from purchasing or selling securities on the basis of material nonpublic information. Since (i) ERHC has not issued its earnings press release for the fiscal quarter ending March 31, 2008, (ii) ERHC's directors and officers would likely have knowledge of ERHC's non-public financial results and (iii) financial results are usually material information, it would be inadvisable for ERHC officers or directors to purchase or sell shares of ERHC common stock at this time. Notwithstanding the foregoing, ERHC may consider hardship and special circumstances on a case-by-case basis. If an officer or director of ERHC requests authorization to purchase or sell ERHC securities from ERHC's Chief Compliance Officer (or Chief Executive Officer) at any time during the period commencing after the end of the preceding fiscal quarter, but prior to the public release of ERHC’s financial results, the Chief Compliance Officer (or Chief Executive Officer) should seek the advice of its outside securities counsel prior to granting such authorization.

ERHC’s Insider Trading Policy does not set forth trading windows. Instead, it provides that an officer or director may purchase or sell ERHC securities commencing on the second business day after ERHC publicly discloses previously non-public material information (e.g., ERHC’s financial results for the second quarter), if such officer or director (x) does not have knowledge of any other material non-public information and (y) otherwise complies with the requirements of ERHC’s Insider Trading Policy, including obtaining the authorization of ERHC's Chief Compliance Officer or, in the absence of a Chief Compliance Officer, ERHC's Chief Executive Officer. See Sections F.2. and F.6. of the Insider Trading Policy.

However, even after ERHC issues its earnings press release for the preceding fiscal quarter, ERHC’s directors and officers need to be cognizant that they may not purchase or sell ERHC securities at any time at which they are in possession of material non-pubic information.