Dec 22, 2010 - Name and Symbol Change to Motorola Solutions, Inc. ("MSI"), and .... A report will be available at the He
Research Circular #RS10-752
DATE: TO: FROM:
December 22, 2010 Permit Holders Scott Speer
RE:
Motorola, Inc. ("MOT") 1-for-7 Reverse Split, Name and Symbol Change to Motorola Solutions, Inc. ("MSI"), and Distribution of Shares of Motorola Mobility Holdings, Inc. ("MMI") Effective Date: January 4, 2011
Motorola, Inc. ("MOT") has announced a 1-for-7 reverse stock split and a distribution of Motorola Mobility Holdings, Inc. ("MMI") Common Shares. As a result of the reverse split, each existing MOT share will be converted into 0.1428571 (New) Motorola Solutions, Inc. ("MSI") common shares. As a result of the distribution, each existing MOT shareholder will receive 0.125 Motorola Mobility Holdings, Inc. ("MMI") common shares. The reverse split, the associated name and symbol change, and the distribution are anticipated to become effective before the opening of business on January 4, 2011 THE FOREGOING IS AN UNOFFICIAL SUMMARY OF THE TERMS OF THE REVERSE SPLIT AND DISTRIBUTION, PREPARED BY CBOE FOR THE CONVENIENCE OF ITS PERMIT HOLDERS. CBOE ACCEPTS NO RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OF THE SUMMARY. PERMIT HOLDERS SHOULD REFER TO THE NYSE INFONOTICE DATED DECEMBER 17, 2010, FOR THE AUTHORITATIVE DESCRIPTION OF THE REVERSE SPLIT AND DISTRIBUTION AND ALL OF ITS TERMS AND CONDITIONS. Contract Adjustments Pursuant to Article VI, Section 11, of OCC's By-Laws, all outstanding MOT options shall be adjusted as follows. On Tuesday, January 4, 2011, each adjusted Motorola, Inc. contract will require the receipt or delivery of: (A) 14 shares of "New" Motorola Solutions, Inc. ("MSI") Common Stock, plus (B) 12 shares of Motorola Mobility Holdings, Inc. ("MMI") Common Stock; plus (C) cash in lieu of 0.28571 fractional share of MSI Common Stock; plus (D) cash in lieu of 0.5 fractional share of MMI Common Stock, if any. Premiums for the adjusted Motorola, Inc. options will continue to be calculated on the basis of a multiplier of 100, i.e., for premium and strike-price extensions, 1.00 will equal $100. The Motorola, Inc. option symbol will change to MSI1. [Any FLEX series that may exist will be adjusted in a similar manner to the standardized option.] Adjusted Option Symbols On Tuesday, January 4, 2011, trading in the MOT option series will be on an adjusted basis. At 8:30 A.M., Chicago time, the following symbol adjustments to the options will be effected:
EXISTING SERIES MOT MOT MOT MOT MOT MOT MOT
2.50 4.00 5.00 6.00 7.50 9.00 10.00
2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22
ADJUSTED SERIES* C/P C/P C/P C/P C/P C/P C/P
=> => => => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1
2.50 4.00 5.00 6.00 7.50 9.00 10.00
2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22
C/P C/P C/P C/P C/P C/P C/P
#RS10-752 Page 2
EXISTING SERIES
ADJUSTED SERIES*
MOT MOT MOT MOT MOT MOT MOT
11.00 12.50 15.00 17.50 20.00 22.50 25.00
2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22
C/P C/P C/P C/P C/P C/P C/P
=> => => => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1
11.00 12.50 15.00 17.50 20.00 22.50 25.00
2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22 2011-01-22
C/P C/P C/P C/P C/P C/P C/P
MOT MOT MOT MOT MOT MOT MOT MOT MOT MOT
4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00
2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19
C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P
=> => => => => => => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1
4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00
2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19 2011-02-19
C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P
MOT MOT MOT MOT MOT MOT MOT MOT MOT MOT MOT
3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00
2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16
C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P
=> => => => => => => => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1
3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00
2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16 2011-04-16
C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P
MOT MOT MOT MOT MOT MOT MOT MOT MOT MOT
4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00
2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16
C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P
=> => => => => => => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1 MSI1
4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00
2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16 2011-07-16
C/P C/P C/P C/P C/P C/P C/P C/P C/P C/P
2012 LEAPS 2.50 MOT MOT 4.00 MOT 5.00 MOT 7.50 MOT 10.00 MOT 12.50
2012-01-21 2012-01-21 2012-01-21 2012-01-21 2012-01-21 2012-01-21
C/P C/P C/P C/P C/P C/P
=> => => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1 MSI1
2.50 4.00 5.00 7.50 10.00 12.50
2012-01-21 2012-01-21 2012-01-21 2012-01-21 2012-01-21 2012-01-21
C/P C/P C/P C/P C/P C/P
#RS10-752 Page 3
EXISTING SERIES 2013 LEAPS MOT 4.00 MOT 5.00 MOT 7.50 MOT 10.00 MOT 12.50
2013-01-19 2013-01-19 2013-01-19 2013-01-19 2013-01-19
ADJUSTED SERIES* C/P C/P C/P C/P C/P
=> => => => =>
MSI1 MSI1 MSI1 MSI1 MSI1
4.00 5.00 7.50 10.00 12.50
2013-01-19 2013-01-19 2013-01-19 2013-01-19 2013-01-19
C/P C/P C/P C/P C/P
* Any additional MOT series that are added prior to the effective time of the merger will also be adjusted in the manner described above. Settlement The OCC will delay settlement of MSI1 exercise and assignment activity until the determination of the cash-in-lieu amount for the 0.28571 fractional share of MSI Common Stock, and until the determination of the cash-in-lieu amount for the 0.5 fractional share of MMI Common Stock, if any. New Unadjusted Series To facilitate the maintenance of a fair and orderly market in Motorola Solutions, Inc., new MSI series with a contract unit of 100 shares will be introduced on Wednesday, January 5, 2011. The MSI series will be added for January, February, April, and July expirations at exercise prices nearest the money. Also, new MSI LEAP series with a contract unit of 100 shares will be introduced on January 5, 2011, for the January 2012 and January 2013 expirations at exercise prices nearest the money. GTC Order Conversion On Monday, January 3, 2011, immediately after the CBOE close, the system will convert or cancel all resting orders in the MOT order book. If your firm has requested, all booked orders (phone, wire, and electronic) and all ORS orders residing outside the book (booth or crowd routed) will be converted reflecting the adjustments. If your firm has requested, all booked orders and ORS orders residing outside of the book will be canceled. If your firm receives CXL drops, the CXL confirms will print at your booth at 3:15 p.m. ORS CXLs will also be transmitted electronically to your branches. A report will be available at the Help Desk listing the orders that are converted or canceled. If converted, this list will also show how the new orders will be adjusted. This report will be available on request anytime during the day prior to the night of the adjustment.
Questions regarding this memo can be addressed to Options Industry Services at 1-888-OPTIONS (1-888-678-4667). CBOE contract adjustment memos can also be accessed from CBOE.com at the following web address: http://www.cboe.com/ContractAdjustments
