Hi, Emerald. Your input is what I always value.
This is what it says:
"The exercise price of the Options is 110% of the closing market price on the date of the grant, or $0.1045, and the Options vest 50% on the grant date and 50% on the first anniversary of the grant date. In the event of a change of control of the Company."
I don't interpret that as exercising at .1045. I can see how you're reading it though. But it says exercise price is 110% of closing market price. The market price has never been 50% of what it is today. There could not have been a grant on any "market price" that closed on any day at 5 cents. That just never happened.
Exercise price is 110% of grant price. The comma to me is saying, "Closing market price on date of the grant, or. 1045." I read that as, the closing date of the grant was .1045. So he can exercise at 110% of that price, which is 21 cents or thereabout. And, yes, he can exercise at that price now for half those shares as you noted. But there would be no point because he would have to buy at .21 and sell at market for a loss at today's prices (equal to grant price). So, that's an alignment of interest. Correct me where I'm wrong.
