wayne options , page-46

Just to reiterate the company is not lending direcors any cash. In essence they are simply giving the Director up to 3years to pay for the shares. The Director has exercised early but has 3years to pay for the shares. The Director must pay the strike price for conversion plus interest. If the Director sells the converted shares he must pay the conversion price plus interest. If the shares are sold for less than the strike price the Director does not have to pay the full amount but all monies from the sale must go to the company. So even if sold for less than the conversion price the Director gets nothing and the company gets the proceeds of the sale. No spin there phoxx.