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IN RE ONTOS, INC.

Nos. 06-1512, 06-1513.

478 F.3d 427 (2007)

In re ONTOS, INC., Debtor. T. Mark Morley; Thomas J. McCoy, Appellants, v. Ontos, Inc.; Joseph G. Butler, as Chapter 7 Trustee of the Estate of Ontos, Inc.; Firestar Software, Inc.; Kenneth Lord; Amphion Ventures; Robert J. Bertoldi; Richard C.E. Morgan; Vennworks, LLC, Appellees. John Fitzgerald, Trustee.

United States Court of Appeals, First Circuit.

Decided March 1, 2007.

Attorney(s) appearing for the Case

T. Mark Morley, for appellants.

Harold B. Murphy, with whom Christian J. Urbano and Hanify & King, P.C., were on brief, for appellees Firestar Software, Inc. and Kenneth Lord.

Joseph G. Butler, with whom Barron & Stadfeld, P.C., was on brief, for appellee Joseph G. Butler in his capacity as Chapter 7 Trustee of the Estate of Ontos, Inc.

Eric P. Heichel, with whom Eiseman Levine Lehrhaupt & Kakoyiannis, P.C., was on brief, for appellees Firestar Software, Inc., Kenneth Lord, Vennworks, LLC, Amphion Ventures, Robert J. Bertoldi, and Richard C.E. Morgan.

Before TORRUELLA and LYNCH, Circuit Judges, and WOODCOCK, JR., District Judge.

TORRUELLA, Circuit Judge.

This is an appeal of a district court order from February 3, 2006, which affirmed two orders entered by the bankruptcy court on June 29, 2005. Appellants, T. Mark Morley, former chief financial officer of Ontos, Inc. ("Ontos"), and Thomas J. McCoy, also a former officer and employee of Ontos (collectively "Appellants"), challenge the bankruptcy court's approval of a stipulation for waiver and release entered with the Appellees by the trustee...

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