Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV -- Ignore unavailable to you. Want to Upgrade?

To: Robert Cohen who wrote (3761)	5/17/1999 9:15:00 PM
From: ed doell	Read Replies (1) \| Respond to of 13157

Hi Bob, Thanks very much for your recent posts. I'm unsure of what you mean by today's filing explaining what you said earlier today. It's been a long day so I might be a little on the slow side. Sorry to try your patience, Ed

To: Robert Cohen who wrote (3761)	5/17/1999 11:24:00 PM
From: StaggerLee	Read Replies (3) \| Respond to of 13157

Robert, thank you for identifying what you referred to as a cap on the SARS plan. Though, based on my read it doesn't look like management gave anything up. They merely converted SARS to unrestricted shares.. There's no mercy and benevolence here! These executive officers agreed to limit their compensation and the corresponding liability to the Company related to all of their vested stock appreciation rights based on a common stock price of $3-15/16, and further agreed to be paid in unregistered common stock in lieu of cash for all of their vested SARs. I don't think means they're settling for $3 15/16 instead of $15. It only means that they signed an ageement opting out of the Plan, which legally lets the corporation off the hook for paying them them in cash for the value of their SARS appreciation, so ACTV didn't have to record an expense related to the SARS appreciation. (ACTV only recorded appreciation up to $3 15/16 for these executives). For a few weeks, theoretically, management assumes some default risk for the value of their SARS in excess of $3 15/16. Subsequent to the end of the quarter, managment will be paid off in stock for the full vested value of their SARS appreciation, all the way up to $15 or whatever. They're not limiting their vested amount to $3 15/16, I don't think. Though I could be wrong. It looks like the whole transaction was initiated to avoid having to record an expense on the P&L, not because management was trying to be nice to us ;) It would be great if you could confirm that, though: Ask them when they get paid off in unrestricted stock, will it be at $3 15/16 per SAR, or for the full vested value.