Earthlink 2003 Annual Report Download - page 59

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2002 and 2003:
F-25
The following table summarizes the status of the Company's stock options and warrants as of December 31, 2003:
Restricted Stock Units
During the year ended December 31, 2003, the Company issued 23,597 restricted stock units to its non-employee directors in
consideration of the non-employee directors' service as directors. The weighted average grant date fair value of the restricted stock units was
$8.90 per unit. The restricted stock units vest and become exercisable over four years from the date of grant. The grant resulted in deferred
compensation of $0.2 million, which is included in stockholders' equity in the Consolidated Balance Sheet at December 31, 2003. The
Company is amortizing the deferred compensation over the vesting period of the restricted stock units.
Employee Stock Purchase Plan
During the year ended December 31, 2002, the Company adopted the ESPP. Under the terms of the ESPP, eligible employees may have
up to 15% of eligible compensation deducted from their pay to purchase EarthLink common stock. Under the ESPP, withholdings are used to
purchase shares at the beginning of each quarter at a per share purchase price equal to 85% of the lesser of the closing price on the first trading
day of the just completed quarter or the closing price on the last trading day of the just completed quarter. As of January 1, 2004, the Company
was authorized to issue up to 700,000 shares of EarthLink common stock pursuant to the ESPP. During the years ended December 31, 2002
and 2003, employees purchased approximately 102,000 shares and 221,000 shares, respectively, at weighted average purchase prices of $5.02
Year Ended December 31,
2001
2002
2003
Stock Options
and Warrants
Weighted
Average
Exercise
Price
Stock Options
and Warrants
Weighted
Average
Exercise
Price
Stock Options
and Warrants
Weighted
Average
Exercise
Price
(shares in thousands)
Outstanding at beginning of year
22,166
$
15.07
21,022
$
15.66
28,356
$
12.62
Granted
4,151
13.37
10,925
7.26
2,433
7.07
Exercised
(1,821
)
4.45
(307
)
3.05
(1,010
)
3.34
Canceled
(3,474
)
15.63
(3,284
)
15.14
(7,037
)
14.25
Outstanding at end of year
21,022
15.66
28,356
12.62
22,742
11.93
Options exercisable at year-end
8,404
11,688
12,757
Weighted average grant date fair value of options granted during
the year $
10.70
$
5.17
$
4.34
Stock Options and Warrants Outstanding
Stock Options and
Warrants Exercisable
Weighted
Average
Remaining
Contractual Life
Range of
Exercise Prices
Number
Outstanding
Weighted Average
Exercise Price
Number
Exercisable
Weighted
Average
Exercise Price
(in thousands)
(in thousands)
$ 1.06 to $ 5.10
2,365
6.81
$
4.28
861
$
2.86
5.31 to 5.98
3,531
8.84
5.64
795
5.54
6.13 to 7.99
2,419
8.30
6.93
738
6.96
8.00 to 9.64
3,622
8.21
9.41
1,451
9.43
9.83 to 10.06
4,214
6.55
10.06
3,396
10.05
10.38 to 15.00
1,880
6.78
12.65
1,279
12.50
15.63 to 24.26
2,077
6.27
19.58
1,673
20.14
24.92 to 51.44
2,634
5.66
31.73
2,564
31.90
$ 1.06 to $51.44
22,742
7.27
$
11.93
12,757
$
14.99