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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (5433)	4/8/1998 1:30:00 AM
From: Al Chechatka	Read Replies (1) \| Respond to of 9068

I think we beat this option issue to death, but here is one more thought directed to Roger. If they didn't yet issue the 10.4 million options, when they do, the stock has to perform in a positive way for them ever to be exercised. With your negative outlook on the stock, they will never be exercised because the exercise price will be higher than the actual price of the stock (unless they re-price those options, I know the SEC is looking at changing the ability to re-price options). Al C.

To: Roger A. Babb who wrote (5433)	4/8/1998 9:05:00 AM
From: Biomaven	Read Replies (2) \| Respond to of 9068

Roger, I have drafted numerous option plans, and I can assure you that the language in the proxy about the number of share that can be isssued under the plan is routine. It is a legal _limit_, not a "promise." The 16 million number is simply the maximum number of options that can be legally granted under the plans; this naturally corresponds with the number of shares reserved for issuance pursuant to the plans -if you are legally permitted to issue an option you are also required to reserve shares for any such issuance. It does _NOT_ mean that you are obliged to issue the options or have otherwise promised to issue them. Citrix has in the past been fairly reasonable about issuing options; were they to suddenly grant all 11 million available options (or even a big fraction of them) to employees I would be out of the stock like a shot. I have every confidence that they have not and are not about to do this. I think we've done this issue to death now. My conclusion (with which you of course are free to disagree) is that there are around 5 million options outstanding, with a dilutive impact of around 3 million shares at current prices. There are also about 11 million options available that they could legally grant at any time; I trust and hope that they will use these prudently as they always have in the past. Peter