EX-99 4 jd12-5_option.txt 6 EXHIBIT 6 COMMERZBANK SECURITIES BASKET SC 1 LINEAR CALL OPTION AMENDED NOTICE OF EXECUTION - NOVEMBER 26, 2002 We are pleased to confirm the execution of the following Transactions with you: ------------------------------- ------------------------------------------------ PARTY A (Seller): Commerzbank AG (acting through its affiliate, Commerzbank Capital Markets Corp.) ------------------------------- ------------------------------------------------ PARTY B (Buyer): SC Fundamental Value Fund LP ------------------------------- ------------------------------------------------ TRADE DATE: November 26, 2002 ------------------------------- ------------------------------------------------ REFERENCE SHARES: Reference Amount of ------------------------------- ------------------------------------------------
REFERENCE AMOUNT OF SHARES TICKER CUSIP 64,040 CRD/A 224633206 52,480 MIPSB 604567206 46,170 MOLXA 608554200 430,420 ESREE SEDOL:2133089 ------------------------------- ------------------------------------------------------------------------------ NOTIONAL AMOUNT NUMBER OF SHARES TICKER FORWARD PRICE NOTIONAL AMOUNT ------------------------------------------------------------------------------ 64,040 CRD/A $5.34 $341,973.60 52,480 MIPSB $2.45 $128,576.00 46,170 MOLXA $23.08 $1,065,603.60 430,420 ESREE $0.75 $322,815.00 ----------- TOTAL AMOUNT $1,858,968.20
------------------------------- ------------------------------------------------ EXCHANGE: NYSE & NASDAQ ------------------------------- ------------------------------------------------ OPTION STYLE: American after January 2, 2003. ------------------------------- ------------------------------------------------ OPTION TYPE Linear Call ------------------------------- ------------------------------------------------ REFERENCE PERIOD 53 Weeks ------------------------------- ------------------------------------------------ MATURITY DATE: The last business day in the Reference Period ------------------------------- ------------------------------------------------ STRIKE PRICE: The weighted average of the closing prices of the Shares on the applicable Exchange on the Trade Date. ------------------------------- ------------------------------------------------ KNOCKOUT LEVEL ("KO"): 95% of the Strike Price ------------------------------- ------------------------------------------------ REBATE PER SHARE: 52% of the Strike Price ------------------------------- ------------------------------------------------ INITIAL PREMIUM PER SHARE: 55% of the Strike Price ------------------------------- ------------------------------------------------ ACCRUAL RATE: 3% of the Strike Price -------------------------------------------------------------------------------- This document is not intended to represent the conclusive terms and conditions of any transaction, nor to notify you of any possible risks, direct or indirect, in undertaking such a transaction. Commerzbank Capital Markets Corporation, its agents and affiliates (collectively "Commerzbank") do not accept any duty to advise you as to its suitability or otherwise and is dealing with you exclusively on the basis that you have sufficient knowledge, experience and/or professional financial, tax, legal and other advice to undertake your own assessment thereof. Although the indicative information set forth above is reflective of the terms, as of the specified date, under which Commerzbank believes a transaction might be structured, no assurance can be given that such a transaction could in fact be executed at the levels indicated. Commerzbank and its affiliated companies may from time to time have long or short positions in the securities mentioned herein or in options or derivative instruments based thereon. This document may not be reproduced or distributed without Commerzbank's prior consent. COMMERZBANK SEUCURITIES ------------------------------ ------------------------------------------------ PREMIUM PAYMENT DATE: January 2, 2003 ------------------------------ ------------------------------------------------ SETTLEMENT DATE: One (1) Business Day following Maturity Date or Exercise ------------------------------ ------------------------------------------------ KNOCK-OUT EVENT: The value of the option falls below the Knockout Level ------------------------------ ------------------------------------------------ MARKET VALUE: The price at which Party A unwinds its hedge position with respect to the Shares ------------------------------------------------------------------ SETTLEMENT AMOUNT: Should Party B Choose Cash Settlement: Provided that a Knock-out Event does not occur during the Reference Period, Party A will pay an amount to Party B equal to: [Initial Premium + (Market Value - Strike Price) - Accrued Premium} * Notional Amount Accrued Premium = #of days position is open/372 * Accrual Rate * Strike Price Should Party B Choose to exercise the Linear Call option and take physical delivery of all of the Reference Amount of shares, Party B shall pay to Party A the Notional Amount and Party A shall pay to Party B the rebate and any un-accrued premium. ------------------------------ ------------------------------------------------ RELATED TRANSACTION: For the first 31 days Party B shall be a party to a Forward Purchase Agreement pursuant to which (i) Party B shall be bound to sell and deliver (or cash settle) the Reference Amount of Shares at or below the Strike Price (the "Forward Agreement"), (ii) the maturity thereunder shall be no longer than the maturity of the Linear Call Option. The proceeds from settlement of the Forward Contract will be applied toward the premium requirement for the Linear Call Option on the Premium Payment Date and the balance will be held by Party A in Party B's name in an interest-bearing cash account, which may be drawn upon by Party B to mark if the Linear Call Option reaches the knockout level and Party B chooses to mark the Linear Call Option (by posting additional premium). ------------------------------ ------------------------------------------------ ADJUSTMENT & EARLY UNWIND: Party B may choose to simultaneously unwind both the Forward Contract and the Linear Call Option at any point during the period commencing on the Trade Date and ending thirty-one (31) days thereafter and cash settle the Forward Contract and the Linear Call Option at prices determined by the Calculation Agent in its sole but reasonable discretion. Settlement shall be the sixth (6th) Business Day after such notice is provided. In the event that the Knockout Level is reached during the term of his Forward Agreement and Party B does not choose to mark the Linear Call Option, this Forward Agreement shall immediately terminate and cash settle at the price determined by the Calculation Agent at its sole but reasonable discretion. Terms of trade will be adjusted to give effect to any corporate action, merger, insolvency or nationalization involving Issuer and the trade may be unwound early for the above reasons or if it becomes impracticable to freely trade in the underlying shares or otherwise to hedge Commerzbank's position. 2 COMMERZBANK SECURITIES ------------------------------ ------------------------------------------------ CALCULATION AGENT: Commerzbank Capital Market Corp., acting on behalf of Commerzbank AG (and its successor and assigns). ------------------------------ ------------------------------------------------ DOCUMENTATION: Standard Commerzbank Linear Option master agreement ------------------------------ ------------------------------------------------ TAX, LEGAL & REGULATORY ISSUES: Party B has consulted appropriate outside advisors regarding any relevant tax, legal or regulatory issues relating to this transaction, and is not relying on Commerzbank AG or any of its Affiliates for such advice. ------------------------------ ------------------------------------------------ CONTACT: If you are interested in discussing the terms of this indicative Term Sheet in more detail, please contact: Name: Sothi Thillairajah Tel: (212) 703-4657 e-mail: thillairajahs@cbmc.com Fax: (212) 703-4050 ------------------------------------------------------------------------------- This document shall be deemed correct in all respects unless written notice of any inaccuracy is provided to us within 24 hours. Please confirm your agreement with and understanding of the foregoing by signing in the space provided below and returning this document as provided below: Attention: Sothi Thillairajah Fax No: 212 703 4050 Phone No: 212 703 4657 SC FUNDAMENTAL VALUE FUND, L.P. By: SC Fundamental LLC General Partner /s/ Neil H. Koffler ------------------------- Signature of Party B Neil H. Koffler, Member 3