MRV Communications (MRVC) opinions? Message Board

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Technology Stocks : MRV Communications (MRVC) opinions?

MRVC 9.975

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Aug 15 5:00 PM EST

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To: Sector Investor who wrote (23521)	9/5/2000 7:46:20 PM
From: Mike E.	Read Replies (2) of 42804

From the S3/A filed today, been picking out "tidbits"... In July 2000, we and our wholly-owned subsidiary, Luminent, Inc. entered into four year employment agreements with Luminent's President and Chief Executive Officer and Vice President of Finance and Chief Financial Officer. The agreements provide for annual salaries, performance bonuses and combinations of stock options to purchase shares of the Company's common stock and Luminent's common stock. The options to purchase the Company's common stock are immediately exercisable and are expected to result in deferred compensation charges of $2.4 million during the three months ending September 30, 2000. The options to purchase Luminent's common stock vest over four years. The options granted by Luminent to its Chief Executive Officer and Chief Financial Officer represent the right to purchase the number of shares of Luminent common stock equal to 3.5% of the outstanding capital stock of Luminent reflected on a fully diluted basis immediately prior to its initial public offering at an exercise price per share equal to lower of (a) the amount determined by dividing one billion dollars by the number of Luminent shares outstanding prior to the IPO reflected on a fully diluted basis or (b) 60% of the low end of the filing range for Luminent's common stock as initially filed with the Securities and Exchange Commission. We will incur deferred stock compensation expenses relating to these options in an amount to be determined once the number of shares underlying the options, the exercise price of the option and the initial public offering price of the Luminent shares are known. The deferred compensation expense will be amortized through 2004. Looks to me like Luminent has been "valued" internally at $1B market cap as fair to the executives. Of course, if market conditions warrant more value at IPO, they'll get a piece of that pie too. Source: freeedgar.com Mike

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