Saturday, April 02, 2005 10:28:36 AM
L2v; In regard to your questions 2 and 3, I think you might be confusing the RSU awards with the vesting schedule for the awards. The total number of shares awarded an individual under each program cycle is computed at the beginning of each cycle i.e. April 1, 2004 for the initial cycle (April 1, 2004 - December 31, 2005) and January 1, 2005 for the ensuing 3 year cycle (January 1, 2005 - 31 December 2007). The cost basis is the market value on the date the award is made. Although the award is made in total at the beginning of each cycle, the participants do not become "vested" i.e. become owners of the stock, until subsequent dates.
This is the vesting period for the first two cycles:
“For all non-executives/officers, the RSUs granted in connection with each Program cycle will vest incrementally based on the duration of the Program cycle. For the first cycle, vesting will occur over a two-year period with half of the RSUs vesting on December 31, 2004 and half vesting on December 31, 2005, so long as you remain continuously employed by the Company (or an Affiliate) through the applicable vesting dates. For subsequent Program cycles, currently intended to be three years in duration, vesting will occur 25% at the end of years one and two, and 50% at the end of year three. For all executive/officer level participants, the RSUs granted in connection with each Program cycle will vest 100% at the end of each cycle, so long as you remain employed by the Company or an Affiliate of the Company through the applicable vesting date.”
This is the vesting period for the first two cycles:
“For all non-executives/officers, the RSUs granted in connection with each Program cycle will vest incrementally based on the duration of the Program cycle. For the first cycle, vesting will occur over a two-year period with half of the RSUs vesting on December 31, 2004 and half vesting on December 31, 2005, so long as you remain continuously employed by the Company (or an Affiliate) through the applicable vesting dates. For subsequent Program cycles, currently intended to be three years in duration, vesting will occur 25% at the end of years one and two, and 50% at the end of year three. For all executive/officer level participants, the RSUs granted in connection with each Program cycle will vest 100% at the end of each cycle, so long as you remain employed by the Company or an Affiliate of the Company through the applicable vesting date.”
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