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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Gary Ku who wrote (22782)	6/18/1998 12:24:00 PM
From: Paul Fiondella	Respond to of 42771

Employee options at Novell My understanding of these options is that Novell was repricing the options already issued to employees? Could you discuss this $7 a share price a bit further?

To: Gary Ku who wrote (22782)	6/18/1998 1:22:00 PM
From: Greg Johnson	Read Replies (1) \| Respond to of 42771

>NoVL keeps employees in a labor squeeze market by giving them >options priced at $7.00 a share and allowed to exercise after >July this year. After July 1, 1998, if the stock price of NOVL >is anything over $7.00 they will exercise and leave the company. Well, not exactly. They weren't "given" any extra options. This was a repricing of existing options that were previously priced so high as to be totally demoralizing. They continue to vest on their original schedule, so the options won't all be exercisable in July. (It's somewhere in the middle of July, by the way; not July 1.) As part of the repricing plan, a one-year black-out on exercising options was imposed. Also, it was not a one-for-one repricing. In other words, employees lost some of their options in order to reprice them. So, while a portion of the lower priced options will be exercisable in July, I would hardly expect a mass exodus of employees.