payment for out of money options

refer scheme of arrangement and the payments UMC directors will receive for the options they granted themselves

exercise price $1.25 expiry July 2010 paid $0.1887 per option

exercise price $1.45 expiry July 2010 paid $0.1504

exercise price $1.75 expiry July 2011 paid $0.2534

exercise price $1.35 expiry July 2011 paid $0.3154



question: why should the directors receive any value for out of money options when there is no intrinsic value and the time value has been destroyed by recommendation of the lowball bid of BHP?