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Brocade announces employee stock option exchange program
By siliconindia
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Tuesday, 10 December 2002, 20:30 IST
SAN JOSE: Brocade Communications Systems Inc. (Nasdaq:BRCD) announced Tuesday that its Board of Directors has approved a voluntary stock option exchange program for Brocade employees.
Under the program, Brocade employees will be offered the opportunity to exchange outstanding stock options with exercise prices equal to or greater than $12.00 per share for new stock options, which will be granted at an exchange ratio determined by the grant date of the original stock option. Employees will receive new stock options in exchange for outstanding stock options at an exchange ratio of either 1 for 1, 1 for 2; or 1 for 3, depending on the grant date of the original stock option. The new stock options will be granted on the first business day that is six months and one day after the cancellation of the exchanged options. Brocade expects the new option grant date to be July 10, 2003.
The exercise price per share of the new options will be the fair market value of Brocade common stock at the close of regular trading on the new option grant date. However, the exercise price to Brocade officers will not be less than 110 percent of the average closing price of Brocade common stock during the exchange offer period. Members of the Brocade Board of Directors who are not employees are not eligible to participate in this program.
Brocade expects there will be no compensation charges as a result of the stock option exchange program. The terms and conditions of the stock option exchange program are contained in a Tender Offer Statement on Schedule TO that Brocade filed with the Securities and Exchange Commission today.