excuse my stupidity

surely if I decide to let my options expire then they are exactly that..EXPIRED...how can a company offer options that close on a set date only to let someone else exersise them after that date because of the company's poor performance. are the shares put aside when options are listed and thus belong to the co so it can do with what it likes and if so are those shares counted at the time..say in the 1.3 BILLION !!! great way for a company that can control the situation to make heaps more money..can anyone else smell a rat.