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Options Preserved

4:30 PM -- A short, strangely worded SEC filing by Brocade Communications Systems Inc. (Nasdaq: BRCD) hints there may be more to come in the ongoing saga of the company's late, disgraced CEO. (See Brocade: Tough Quarter, Bad Year.)

Apparently, Greg Reyes and Brocade's board have entered into a "tolling agreement," by which both sides have more time to file claims against each other without violating any statute of limitations.

We didn't know there was any time limit on filing claims for various corporate transgressions, but Brocade spokesperson Leslie Davis says there are indeed. However, she insists the SEC filing is no indication that Reyes or the board will ever take any action.

O-kay! Still, as Brocade struggles for resolution of a Department of Justice investigation into the way the company handled stock options from 2001-04, some may be reassured to know there may still be someone to blame. Board members and Reyes may now wait until January 8, 2007, or 45 days after notice of the agreement's termination to file suits against each other.

Bottom line? Expect more from this quarter.

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