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 : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Starlight who wrote (7194)	2/1/2000 10:09:00 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 10309

Elizabeth - Yes. Let me try a hypothetical example, hopefully not adding too much to the confusion. As Vice President in charge of office supplies, I was granted an option for 100 shares on June 30, 1995. The option exercise price was $15, and the option would be eligible for exercise after 3 years, starting on July 1, 1998, and would expire after 10 years, on June 30, 2005. At any time within the 7 year period between July 1, 1998 and June 30, 2005, I am entitled to buy 100 shares at a price of $15 per share and am free to either sell the 100 shares immediately or hold them for later sale. If the stock is below $15, the option has no current value to me, as I can buy stock cheaper on the open market. If the stock is above $15, say at $32, I can exercise the option for $15 and immediately sell the stock for $32, netting a profit of $17. It would make sense to do this only if I expect to never have the chance again to get a $32 or higher sale price before my option expires, or if I need the money immediately. Tax considerations, potential termination of employment, or other specific details are ignored here. Since I am entitled to exercise my option within the 60 day period following December 23, 1999, and the stock price is above my exercise price of $15, my potential 100 shares MUST be included in the count of executive shares provided in the SEC filing of 12/21/99. It is clear that I will NOT do so, as my option still has 5 years to run and the stock WILL rise 100's of percent in that time. -g- Regards, Don