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Re: Corp_Buyer post# 22148

Thursday, 05/01/2003 7:35:49 PM

Thursday, May 01, 2003 7:35:49 PM

Post# of 432866
Corp_Buyer

If you think InterDig's management is capable of doing this:

Furthermore, the ISO excess is SO great that we can see clearly in management's actions that they CHOOSE to delay driving the stock price per share, CONTRARY to your's and my interests, e.g. by choosing to do back-end loaded deals (e.g. Ericy, Nok, etc.), stopping rallies with coordinated group insider sales, and holding back on PR.

as you said in post 22017, then I fully understand why you would vote against just about anything they proposed. These are serious accusations and, in some cases, probably violate SEC rules. As I said before, if I believed any part of this, I would sell all IDCC immediately.

Also, your analogy comparing options to a childs allowance is way off. There is a misunderstanding here - stock options are not "giveaways". Employees pay for their options in the form of a strike price. That strike price goes directly to Interdigital's treasury when (and if) the option is exercised (just like a follow-on stock offering). Further, the option has no real value until the PPS increases, and the option vests over a period of years.

Therefore, stock options accomplish the following: 1) a strong incentive for the employee to focus on stock appreciation, 2) improved employee retention, and, 3) highly efficient cash management, ie. an incentive plan that costs nothing and adds to cash balances.

Stock options can be a powerful and vital tool in operating a small tech company like InterDig - I want my warriors (the guys who control my financial destiny) to have as many arrows in their quiver as possible.

(I realize I'm not going to change anyone's mind here - just trying to explain why I would be so foolish as to vote for the proposal ;)













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