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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: rkral who wrote (59100)	1/25/2007 9:00:18 PM
From: quartersawyer	Respond to of 197351

Interesting, and agreed.

To: rkral who wrote (59100)	1/25/2007 9:01:21 PM
From: kech	Read Replies (1) \| Respond to of 197351

When someone "exercises an option" doesn't that mean they have to essentially buy the stock? So in this case, doesn't it mean Nokia has to pay a chunk of change to exercise the option? Is it possible this amount of money is more than just the normal royalty rate for the year? Otherwise, why call it exercising an option -- why not just say the date of expiration was extended for a year subject to payment of normal royalties?

To: rkral who wrote (59100)	1/25/2007 10:54:04 PM
From: ohohyodafarted	Read Replies (3) \| Respond to of 197351

I am not sure you understand the situation. It is my take that on or before the expiration date of 10 April 07, Nokia must exercise an option to extend the terms of the existing license contract. The terms of the extension is for another 20 or so months until the end of 2008. At that time the extension of the existing terms of the contract ENDS without any option to extend further beyond the end of 2008. In other words, the way I see it is, if NOK does not exercise its option to extend ON or BEFORE April 10, then they are SOL. I believe some people here think that NOK can "exercise" the option any time from April 10 to the end of 2008 and that is not the way I understand it. Please correct me if I am wrong about this.