Dr. Hession's Comp.

[Getitrt2]

Palm, I have not seen the original information and am hesitant to make judgments or reach final conclusions. However, how they work and how you think they SHOULD work may very well be very different.

[Palm]

"Palm, I have not seen the original information and am hesitant to make judgments or reach final conclusions"

At what point DO you plan to see the original information and make some sort of "judgment" or reach your final conclusion so you can cast a proper vote for the AGM, which is one month away? Do you feel compensation plans of the past were properly structured for results/performance? I am curious to hear your opinion on the incentives to the 3 execs for IOC obtaining royalties for a project instead of an equity interest.

"date of commencement of front end engineering and design for any LNG project in which InterOil holds and equity interest (or is in receipt of a royalty in lieu of an equity interest) utilizing gas produced from PRL 15 (a “Relevant LNG Project”);" This is for Applegate and Taureka as far as PRL 15 specifically; this clause is the same for Hession, except it is for any LNG project (PRL 15 and any others).

[Getitrt2]

I think they are getting a lot of equity interest as well as "royalties" as you call it, not royalties "instead of an equity interest".

I appreciate your supposed interest in my opinions on all that, but I doubt I am going to find time to get to that point. Also, the institutions and insiders that control most of the stock will control the voting on all that. I believe I do understand where you are coming from on the subject and would tend to be sympathetic.

[Palm]

IF you DO get some time you may revisit the "exploration" subject. A PRL is still an exploration license. It just allows you to say you have a "discovery" which you can then request to be designated as a "location" and then request a PRL to cover from one but not more than 9 contiguous blocks. PRL 15 is just that. And EA is a discovery and likely exempt from the bonus. However, Ant Deep is an exploration well that will be within PRL 15. Do you think Hession will be expecting $500k in RSUs if they find 1 or more Ts there? I bet he is.

[calaban48]

If they come up dry, do we whack his salary a half a mil? On another subject, here is a good book: "Savage Harvest" by Carl Hoffman. Discusses the events surrounding Michael Rockefeller's disappearance in Indonesian Papua in 1961. All signs point to him having been murdered and eaten by the locals. Pictures eerily reminiscent of Duma and the boys.

Yes, sfiaes, it's a helluva story. For anyone interested, Parade magazine published an excerpt last year. The link is:

http://parade.condenast.com/271980/parade/what-really-happened-to-michael-rockefeller-excerpt-from-savage-harvest/

[Getitrt2]

I don't know. I personally in general would consider a PPL an exploration license and a PRL not. However, I would say it comes down to the specific definitions and provisions of the compensation plan, which should be laid out pretty fully in the Proxy. Hopefully, the Plan is clear about all that.