Now SCO's Chapter 11 Trustee wants the court to authorize the issuance of stock options the board of directors awarded themselves in December "because they were concerned that as a result of the appointment of the Trustee, their options would expire within 120 days after the Trustee Appointment Date," so the money paid can be added to the estate's pot. It's a little more complicated a story than that. The Trustee seems to think it's a
de minimis matter, as the options don't really harm anybody but the regular stockholders, and not by much, in his view. And there are restrictions on the options, the Motion points out, namely that they can't be sold until they vest, as I understand the Plan.
But has anyone shown the Trustee the
2004 Change in Control Agreement that allows for immediate vesting on a change of control? Well, I'll show it to you.
And no, Darl's not on the list. But Yarro is, along with Duff Thompson, Darcy Mott, Kent Millington, Omar Leeman, and Daniel Campbell. Supposedly this grant of options was voted on by the board in August of 2009, to cover the board for 2nd and 3rd quarters, which they say they somehow forgot about, and then they issued the options in December. But some things keep circling in my brain, and I can't see this as anything quite as insignificant as the Trustee seems to. I'll show you why.
More...
