8x8 1999 Annual Report Download - page 53

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8X8, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
a nonstatutory stock option to purchase 16,000 shares of common stock on the date upon which such person first becomes an Outside Director
or, if later, on the effective date of the Director Plan. Thereafter, each Outside Director will be automatically granted an option to purchase
4,000 shares of common stock on the date such Outside Director is reelected to the Board of Directors, if on such date, such Outside Director
will have served on the Company's Board of Directors for at least six months. The Director Plan provides that each option will become
exercisable in monthly installments over a period of one year from the date of grant. The exercise price per share of all options granted under
the Director Plan will be equal to the fair market value of a share of the Company's common stock on the date of grant. Options granted to
Outside Directors under the Director Plan have a ten year term, or shorter upon termination of an Outside Director's status as a director. If not
terminated earlier, the Director Plan will have a term of ten years.
Option activity under the stock option plans is summarized as follows:
48
WEIGHTED
SHARES AVERAGE
OPTIONS SUBJECT TO EXERCISE
AVAILABLE OPTIONS PRICE
FOR GRANT OUTSTANDING PER SHARE
---------- ----------- ---------
Balance at March 31, 1996........................ 1,171,389 2,560,757 $2.46
Increase in options available for grant.......... 1,200,000 -- --
Granted.......................................... (4,947,462) 4,947,462 $1.68
Exercised........................................ -- (2,188,265) $0.50
Cancellation of options available for grant...... (75) -- --
Returned to plan................................. 3,028,804 (3,028,804) $2.32
---------- ----------
Balance at March 31, 1997........................ 452,656 2,291,150 $2.83
Increase in options available for grant.......... 650,000 -- --
Granted.......................................... (1,273,665) 1,273,665 $7.92
Exercised........................................ -- (413,033) $0.50
Returned to plan................................. 291,918 (291,918) $4.73
---------- ----------
Balance at March 31, 1998........................ 120,909 2,859,864 $5.26
Increase in options available for grant.......... 764,680 -- --
Granted.......................................... (3,243,175) 3,243,175 $3.32
Exercised........................................ -- (202,332) $1.00
Returned to plan................................. 2,470,397 (2,470,397) $6.74
---------- ----------
Balance at March 31, 1999........................ 112,811 3,430,310 $2.60
========== ==========
Options exercisable at March 31, 1999............ 1,402,762 $2.25
==========