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Pastimes : The Death of Silicon Investor -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (48)	11/14/2001 5:43:31 AM
From: Vendit™	Respond to of 1003

I doubt that existing options would survive any buyout. But I would think that any buyer would grant new options at realistic prices to retain key staff. Roger, When a public company is bought by another entity, the assets and liabilities (stock option compensation) moves from the seller to the buyer. I can't think of a way to make the options liability disappear and maintain any staff much less a motivated staff. ================================== InfoSpace, Inc. (INSP) , a provider of wireless and Internet software and application services, today announced an option exchange program that is intended to reduce the total number of outstanding stock options and provide a more meaningful form of equity compensation for retaining and motivating employees. If all eligible employees participate, shares subject to outstanding employee stock options and awards would be reduced by approximately 50 million shares For every four eligible option shares surrendered, the exchange allows participating employees to receive one share of restricted stock that will vest quarterly over the next two years. Additionally, InfoSpace has reserved approximately 8 million shares of restricted stock which, if the exchange offer is completed, will be used to make discretionary supplemental grants to certain employees that participate in the exchange or are not eligible to participate. InfoSpace may choose not to complete the exchange offer if the options tendered in the exchange represent less than 95% of the outstanding shares subject to eligible options.