The following is an excerpt from the Joint Proxy. Am I reading this wrong or does Mr. Veratti (who is currently NM�s CEO who is stepping down after the merger is complete) receive 700,000 vested stock options with a strike price of 1 penny?
Mr. Verratti presently holds 700,000 options which, following consummation of the Merger, will be exercisable at the lower of (a) $4.75 per share or (b) the closing price of National Media Common Stock upon consummation of the Merger, less $4.00 per share, but in no event less than $.01 per share. The estimated value of Mr. Verratti's stock options is based on the difference between $3.125 (the closing price of National Media Common Stock on December 31, 1997) and $.01.
Perhaps some NM stockholder can tell us about all the wonderful things this man has done to justify such a fine reward? Well, he did line up the Cayman Island money and when that was not enough he did line up our money. Hell, let's give him a pat on the butt too.