Real Networks Sets Option Repricing - 9 July 2009

Real Networks Sets Option Repricing

Real Networks (RNWK)  provided some new details on a plan to reprice employee options.
The program will allow most of the company’s workers to exchange
underwater options for a smaller number of options with a lower strike
price. The tentative plan would allow the exchange of any options with
a strike price above $4.16. Vested options will be exchanged for new
options that vest 50% in six months and rest in one year. Unvested
options would be switched for new options that vest on the later of six
months after the exchange and their original vesting date. Directors
and most senior executives would not be eligible for the program. The
proposal is subject to shareholder approval. In general institutional
investors are not keen on options repricing, given they tend to be
dilutive to current holders.

http://blogs.barrons.com/techtraderdaily/2009/07/09/real-networks-sets-option-repricing-could-owe-verisign/