How will the 3Com stock option conversion for Palm employees be determined?
A6) 3Com stock options held by Palm employees will be converted into Palm options. as follows: The option conversion will be achieved by calculating the relationship (the “Palm Ratio”) between the opening price of Palm common stock on the first trading day after distribution and the closing price of 3Com common stock on the last trading day before distribution. The number of new Palm options outstanding after the Palm distribution will be equal to the quotient of the number of 3Com options outstanding immediately before distribution divided by the Palm Ratio. The new option strike prices for the underlying outstanding options will be equal to the product of the 3Com option exercise strike prices before distribution multiplied by the Palm Ratio. The options will continue to have the same terms and conditions set forth in the (the 3Com Stock Plans) including vesting schedules.
