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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–35
A summary of our stock option activity for the years ended December 31, 2003, 2002 and 2001 is as follows:
2003 2002 2001
Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price Options
Weighted-
Average
Exercise
Price
Options outstanding, beginning of year .......... 20,874,925 13.97$ 22,793,593 13.18$ 25,157,893 10.81$
Granted ........................................................... 1,354,500 29.93 532,088 20.76 873,500 37.30
Exercised ........................................................ (3,010,713) 5.75 (1,392,218) 5.30 (1,579,324) 5.17
Forfeited ......................................................... (1,482,894) 15.67 (1,058,538) 12.20 (1,658,476) 10.86
Options outstanding, end of year .................... 17,735,818 16.59 20,874,925 13.97 22,793,593 13.18
Exercisable at end of year .............................. 5,525,437 19.45 6,325,708 13.62 4,701,357 10.77
Exercise prices for options outstanding as of December 31, 2003 are as follows:
Options Outstanding Options Exercisable
Number
Outstanding
as of
December 31,
2003 *
Weighted-
Average
Remaining
Contractual
Life
Weighted-
Average
Exercise
Price
Number
Exercisable
As of
December 31,
2003
Weighted-
Average
Exercise
Price
$ 1.167 - $ 2.750 1,413,817 2.80 2.20$ 1,413,817 2.20$
3.000 - 3.434 48,568 4.11 3.02 48,568 3.02
5.486 - 6.600 9,052,505 5.02 6.00 1,418,905 6.00
10.203 - 19.180 2,193,228 5.33 14.06 744,747 12.38
22.703 - 28.880 1,624,800 8.31 27.69 148,600 23.94
32.420 - 39.500 1,917,900 5.61 35.46 927,000 35.15
48.750 - 52.750 318,000 5.84 49.53 190,800 49.13
60.125 - 79.000 1,167,000 6.30 66.06 633,000 64.69
$ 1.1667 - $ 79.000 17,735,818 5.34 16.59 5,525,437 19.45
* These amounts include approximately 8.0 million shares outstanding pursuant to the Long-Term Incentive Plan.
9. Employee Benefit Plans
Employee Stock Purchase Plan
During 1997, the Board of Directors and shareholders approved an employee stock purchase plan (the “ESPP”),
effective beginning October 1, 1997. Under the ESPP, we are authorized to issue a total of 800,000 shares of class
A common stock. Substantially all full-time employees who have been employed by us for at least one calendar
quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions.
Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase
our capital stock under all of our stock purchase plans at a rate which would exceed $25,000 in fair market value of
capital stock in any one year. The purchase price of the stock is 85% of the closing price of the class A common
stock on the last business day of each calendar quarter in which such shares of class A common stock are deemed
sold to an employee under the ESPP. The ESPP shall terminate upon the first to occur of (i) October 1, 2007 or (ii)
the date on which the ESPP is terminated by the Board of Directors. During 2003, 2002 and 2001 employees
purchased approximately 66,000, 108,000 and 80,000 shares of class A common stock through the ESPP,
respectively.