Avid Bioservices Inc (CDMO)

[cjgaddy]

I agree, WH. The way I read it is they have the option to CANCEL existing options, and REPLACE them with new ones issued from the NEW 15mm share Incentive Plan (2009 Proxy #3), priced at fair mkt. value. It’s definitely not “re-pricing existing options” – any ‘substitution’ options issued eat against the NEW Proxy #3 plan, if it’s approved.

SCHD 14-A/PROXY 8-28-09 (pg.12):
The Incentive Plan [ ie, the new, proxy proposal #3, 2009 Stock Incentive Plan ] in the proxy shall be divided into 2 separate equity programs, (i) the “Discretionary Option Grant Program” under which eligible persons may, at the discretion of the Incentive Plan Administrator, be granted options to purchase shares of common stock, and (ii) the “Stock Issuance Program” under which eligible persons may, at the discretion of the Incentive Plan Administrator, be issued shares of common stock directly, either through the immediate purchase of such shares or as a bonus for services rendered to the Company (or any parent or subsidiary).
http://www.sec.gov/Archives/edgar/data/704562/000101968709003169/peregrine_def14a.htm