YES coupons pay scaledMC, where scaledMC is defined as follows:
MC = Netscape's market capitalization as of the last trading day of 1999.
scaledMC = (log10(MC/$1) - 9) / 2, clipped to [0,1]
If NSCP merges (except mergers where there the surviving company continues to trade publicly and substantially retains the name and managment of NSCP), is acquired, goes private or otherwise stops trading publicly, MC will be calculated by taking the last public market capitalization (or the acquisition price) and increasing it at an annual rate of 10% for the time remaining until 1/1/2000
examples:
NSCP Mkt Cap is $1 Billion (or less) -> YES coupons pay 0
NSCP Mkt Cap is $100 Billion (or more) -> YES coupons pay 1
NSCP Mkt Cap is $10 Billion -> YES coupons pay .5
NSCP goes private 1/1/1999 with a Mkt Cap of $9.09 Billion -> YES coupons pay .5
NSCP market capitalization (as reported by the Wall Street Journal) on May 21, 1996, was $5.776 billion. Using this number for MC, scaledMC would be .38
None.
