Replies to post #142691 on Wave Systems Corp. (fka WAVXQ)

[svenm]

Bigtim, If I may butt in: I gave a shortened version previously of my call with Steven. He made the same points he made with Ramsey re: historical reference points. My understanding was that the 1.5-2 M issued per year was not split adjusted. On the other hand, the float was smaller initially (he mentioned 20's), then up to near 40M (similar to today's #) which was part of the rational for the increase to the same levels. Does this mean that the folks receiving options going forwards sidestep the effects of the reverse split? I would say yes, clearly. I don't see anything wrong with that, personally. It just confirms what we already know. For buy and hold Wave longs (and I am in that category) Wave has been a terrible investment thus far. On the other hand, if one felt the company was successfully re-invented and was willing to purchase very cheap shares (60-80 cents, pre-split) it wasn't very expensive to increase one's position (I also fall into that category).

And yes, Tampa, that is all my private information, but in the context of the board's discussion, I don't agree that it is inappropriate. Personally, I'm finished with this discussion. Best of luck to all longs!
Svenm

[RootOfTrust]

bbigtim re: 1994 ESOP:

First, to clarify the references to the ESOP in my post, it was indeed the 1994 ESOP, not 1998.

Assumimg I understand this correctly, the 1994 ESOP authorized approx. 6.8M options to be granted.

Item 2 in the proxy:

http://www.secinfo.com/d11MXs.uSEg.htm

2. To ratify the action of the Board of Directors in amending the 1994 Employee Stock Option Plan to (i) increase the number of shares of Class A Common Stock authorized for issuance thereunder from 6,833,333 to 21,500,000, (ii) increase the number of shares of Class A Common Stock that may be granted to a single individual in a year from 166,667 to 500,000 and (iii) extend the termination date thereof from January 18, 2009 to July 1, 2014;


But this was post-RS by a factor of three, therefore pre-RS would be 20.4M (6.8M x 3)

If we assume 300K remain to be granted in the 1994 ESOP, that would be 900K pre-RS.

Therefore pre-RS total options issued to date would be approx. 19.5M (20.4M-.9M)

If the 19.5M (pre-RS) dates from 1994 that would be 13 years, putting the average per @ approx. 1.4M

Hope I am not missing something here...eg. plan was amended in 1998, but even if so, total authorized from 1994 should still be the 6.8M (post-RS). I assume if an amendment occurred in 1998, the 1998 vote increased the authorization to the current 6.8M

[UncleverName]

bbigtim,

fwiw, I have a spreadsheet I've kept on the options granted, pre and post split. If anyone has a correction, it is welcome. This is a good faith effort to ferret through all those reports. The company numbers were taken, for the most part from 10Ks and the individual numbers from DEF 14As.

I've put the spreadsheet up on unclever.com:
http://www.unclever.com/wavx/SharesOptionsPostSplit.xls

Unclever