Stock Option Exchange Program July 31, 2009 Exhibit (a)(1)(G) |
What is it? • One time stock option exchange • Allows employees to exchange certain existing options for new options • You will receive fewer new options but at an exercise price equal to our closing price (IRIX) on the new option grant date (expected to be August 27, 2009) |
Is it for me? • Participation is voluntary • Your option is eligible for exchange if: #1 – Option granted on or after Jan 1, 2002 but before Jan 1, 2009 – Exercise price of options granted is equal to or greater than $3.00 per share – Granted under either the 2008 or 1998 option plans AND – Is outstanding and does not expire before the end of the exchange program |
Is it for me? #2 – Option granted Feb 28, 2007 in connection with the Laserscope acquisition – Exercise price of options granted is equal to $10.06 per share AND – Is outstanding and does not expire before the end of the exchange program • If you have more than one eligible option grant, you can choose to exchange one or more grants – You can’t choose to exchange part of a grant |
Is it for me? • In your paperwork is a schedule that shows your option grants that are eligible for exchange |
How many shares do I get in exchange and what is the exercise price? • Exchange ratio depends on the exercise price of your original option • The exercise price of your new option is the CLOSING PRICE of IRIX on the new option grant date (expected to be August 27, 2009) 4 to 1 $9.00 to $11.00 2 to 1 $6.00 to $8.99 1.5 to 1 $3.00 to $5.99 The exchange ratio is If Exercise Price of Eligible Option is |
What happens to my vesting? • All new option grants will require a minimum of six months before any shares vest • After that it depends upon the year the original option was granted – see paperwork |
th How do I exchange and when? • If you wish to exchange one or more of your eligible options grants – You must complete the election form included in your paperwork: SEE EXHIBIT (a)(1)(C) – You must e-mail or fax to Susan Bruce at sbruce@iridex.com or 650 940 4710 – OR hand deliver to Susan BUT YOU MUST GET A SIGNED RECEIPT FROM SUSAN!!!! • You have until Aug 27 at 5.00pm PDT to turn in your election form (the currently expected closing date) |