Bull Dolphin
Not only by selling immediately, the company will issue shares for tax consequence and then they can reload, thus never having any of his money at risk. To bad the shareholders weren't afforded a WIN/WIN/WIN situation!
"The Reload Option shall give the holder thereof the right to purchase a number of Shares equal to the number of Shares tendered by an optionee in exercising an option, and the number of whole Shares, if any, withheld by the Company as payment for any withholding taxes due."
Every year 1/3 options become vested, they then sell, gets reisued more stock options, and also reissued stock options that were sold to satisfy tax consequence!!!
What a sweetheart arrangement!! Perhaps at some point management will consider declaring a 10% stock dividend to the shareholders/OWNERS!! That is if it doesn't dilute their stock options too much!
This paragragh below is also interesting:
Especially this parts:
"As described below, the Company’s employment contracts with both the Chief Executive Officer and Chief Financial Officer, provide for fixed annual bonuses in a "guaranteed" amount equal to 50% of officer’s annual salary as well as incentive bonuses."
"Incentive bonuses are generally not contingent upon specific performance targets or the Company’s financial performance."
Bonuses. As described below, the Company’s employment contracts with both the Chief Executive Officer and Chief Financial Officer, provide for fixed annual bonuses in a guaranteed amount equal to 50% of officer’s annual salary as well as incentive bonuses. The objective of each guaranteed bonus is to provide additional year end compensation for day-to-day responsibilities and sustained performance through the course of the year. The objective of each incentive bonus is to encourage and reward high performance of the executive’s duties. Incentive bonuses for our executive officers are determined taking into account a number of factors, which include the individual performance of the executive officer’s duties. Incentive bonuses are generally not contingent upon specific performance targets or the Company’s financial performance. Incentive bonuses for executive officers other than the Chief Executive Officer are determined by the Compensation Committee, in consultation with the Chief Executive Officer. The Chief Executive Officer's incentive bonus is determined by the Compensation Committee, without participation by the Chief Executive Officer, based on the same factors.