Banks and many board members allotted themselves high numbers of shares in the new for-profit venture, which were exercised for considerable sums when ERIM International, Inc. was sold to Veridian Corp. of Washington, D.C. in 1999.
The passage describes a situation where banks and board members received significant shares in a new for-profit company. These shares were later exercised at high prices when the company was sold to Veridian Corp. in 1999.