eRoomSystem Technologies, supplier of in-room technologies for the lodging industry, is to offer a voluntary stock option exchange program to its current employees, directors, key consultants and independent sales representatives
The option exchange program allows eligible parties to exchange stock options with exercise prices greater than, or equal to, $1.50 per share for new options at the ratio of one new option for each option tendered. It is anticipated that the new options will be issued on, or after, the first business day that is at least six months and one day from the date of cancellation of the tendered options.
“The issuance of stock options is a key ingredient of our compensation program as it provides motivation and incentive to all parties to continue to perform at an optimal level,” said Gregory L. Hrncir, vice president of business affairs.
Hrncir added, “In our ongoing effort to retain and attract the best talent available and maintain our position as the industry leader, we intend to continue issuing stock options on a periodic basis.”
The exercise price of the new options will be equal to the last reported sale price of eRoomSystem`s common stock on the Nasdaq SmallCap Market on the date of the grant. There are 1,367,855 options eligible to be tendered under this program. This program will not subject the company to variable accounting rules.