Tokyo, Japan - March 26, 2002 - Trend Micro Inc. (NASDAQ:TMIC, Tokyo TSE:4704), a leading provider of antivirus and Internet content security software, today adopted the following resolutions regarding the issuance of bonds with subscription warrants at the meeting of the Board of Directors of the Company held on March 26, 2002.
Pursuant to the Company's "Incentive Plan for the Year 2002," the purpose of the issuance of the bonds with subscription warrants is to grant the subscription warrants to certain directors and employees of the Company as well as to officers and certain employees of the Company's subsidiaries.
The summary of the issuance is as follows:
The Summary of the Issuance of the Ninth Series of Unsecured Bonds with Subscription Warrants
Trend Micro Incorporated Ninth Unsecured Bonds with Subscription Warrants
4 billion yen
100 million yen
Only bearer type
Undecided (It will be decided at the meeting of the Board of Directors to be held on April 2, 2002).
(Of which, the bond issue price shall be 100 yen. As a tentative rule, subscription warrant issue price shall be 13 to 18 yen, and it will be decided at the meeting of the Board of Directors to be held on April 2, 2002).
Undecided (As a tentative rule, it shall be 1.5% to 2.0% per year. It will be decided at the meeting of the Board of Directors to be held on April 2, 2002).
100 yen par value of 100 yen
April 18, 2006
From April 3, 2002 until April 16, 2002
April 18, 2002
Daiwa Securities SMBC Co., Ltd. shall purchase the total amount.
There is no collateral or guarantee, and there is no asset serving as a back up for the bonds.
From the day after the date of the issuance, as long as the total value of the shares that can be obtained by the then unexercised subscription warrants does not exceed the total value of the outstanding bonds, cancellation of the purchase of the bonds is allowed.
1. From the day after the date of the issuance until the redemption date, the interests will be paid first on October 18, 2002 for all the interest payments due by then, and from thereafter, six-months worth of interest will be paid on every April 18 and October 18.
2. If the banks are closed on the day when interests are to be paid, then, the date of interest payment shall be moved to the prior bank business day.
3. When paying less-than-six-months worth of interests, interests should be calculated according to the calendar.
4. No interest will be paid after the redemption date.
The registered head office of the Company
Daiwa Securities SMBC Co., Ltd.
1. Ratio of the bond to the share obtained by the subscription warrant:
For every 100 million yen par value bond price, total issue price of par value shares of common stock issuable upon exercise of the subscription warrant shall be granted 100%. Each subscription warrant certificate represents the right to obtain 1 million yen worth of new shares.
2. Total amount of the issue price of shares issuable upon exercise of the subscription warrants:
4 billion yen
3. Type of shares issuable upon exercise of the subscription warrant
Common stock of the Company
4. Conditions of exercise of the subscription warrants
Issue price per share ("exercise price") of shares issuable upon exercise of the subscription warrants is undecided. (As a tentative rule, the exercise price shall be the amount which is the closing price per share of the shares of common stock of the Company on the Tokyo Stock Exchange on the day on which the exercise price is decided (if no closing price is reported on such day, the closing price of the immediately preceding such day should be used). It will be decided at the meeting of the Board of Directors to be held on April 2, 2002):
Number of shares issuable upon exercise of the subscription warrant is as follows:
|Number of shares||=||The total value of subscription warrant certificates submitted by the warrant holder for the exercise of the warrant
Any fraction less than one share shall be disregarded. The adjustment of the exercise price will take the market-price format.
5. Exercise period of the subscription warrants:
From April 3, 2003 through April 11, 2006. If bond acceleration occurs, no subscription warrant may be exercised thereafter.
6. Partial exercise of the subscription warrant:
No subscription warrant may be partially exercised.
7. Transfer of the subscription warrants:
Normally, subscription warrants detachable from bonds can be transferred, however, pursuant to the Company's and/or its subsidiary's memorandum, the Company's directors and employees as well as the subsidiary's directors and employees cannot transfer the subscription warrants.
8. The portion of the issue price of the shares to be issued upon exercise of the subscription warrant which will not be transferred to stated capital:
The balance of the exercise price (if adjusted pursuant to 18(4) above, the adjusted exercise price) remaining after deduction of the amount to be transferred to stated capital. The amount to be transferred to stated capital shall mean an amount obtained by multiplying the exercise price (if adjusted pursuant to 18(4) above, the adjusted exercise price) by 0.5, with any fraction of one yen occurring as a result of such calculation to be rounded up to a full yen. However, the amount to be so transferred to stated capital for each such share shall not be below the par value of a share of the par value common stock of the Company.
9. Payment in kind:
10. Effectiveness of exercise of the subscription warrants:
The exercise of the subscription warrants shall become effective if the certificate evidencing the relevant subscription warrant, documents required for exercise of the subscription warrant and cash payment reach the handling agent.
11. Dividends payable on shares to be issued upon exercise of the subscription warrants:
Any annual dividend or interim dividend payable on shares issuable upon exercise of the subscription warrants with respect to the Dividend Accrual Period (as defined below), during which the relevant date of exercise falls, shall be paid for the full Dividend Accrual Period as if the exercise had taken effect at the beginning of such Dividend Accrual Period. The "Dividend Accrual Period" means each six-month period ending on June 30 and December 31 in each year.
12. Place for accepting the request for exercise of the subscription warrant:
The registered head office of the Company
13. The handling agent resulting from exercise of the subscription warrant:
The registered head office of UFJ Trust Bank Limited.
14. Method of delivery of share certificates:
Share certificates will be delivered by the corporate agency department of UFJ Trust Bank Limited as soon as after the relevant subscription warrant is exercised. No certificates will be issued for any fractional shares.
1. Offering price per certificate, the aggregate offering prices and other details will be decided at the meeting of the Board of Directors to be held on April 2, 2002.
2. This offer for sale will be made to certain employees of the Company and to the Company's subsidiaries.
Trend Micro Incorporated (TSE: 4704), a global cloud security leader, creates a world safe for exchanging digital information with its Internet content security and threat management solutions for businesses and consumers. A pioneer in server security with over 20 years' experience, we deliver top-ranked client, server and cloud-based security that fits our customers' and partners' needs, stops new threats faster, and protects data in physical, virtualized and cloud environments. Powered by the Trend Micro™ Smart Protection Network™ cloud security infrastructure, our industry-leading cloud-computing security technology, products and services stop threats where they emerge, on the Internet, and are supported by 1,000+ threat intelligence experts around the globe.
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