Frontier Airlines 2004 Annual Report Download - page 69

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Aggregated Option Values as of December 31, 2004
The following table provides information as to options exercised by our Chief Executive Officer and our other executive officers during the fiscal year ended December 31, 2004 and the
number and value of options at December 31, 2004.
Option Grants
The following table provides information regarding stock options granted during the year ended December 31, 2004 to our Chief Executive Officer and our other executive officers.
Employment Agreements
We entered into an employment agreement with Mr. Bedford in July 2003. The agreement was amended in December 2004. Mr. Bedford's current annual salary is $340,000 and his
annual deferred compensation payment is $170,000, throughout the term of the amended agreement. In addition, Mr. Bedford is eligible for an annual bonus in such amount as our board of
directors may determine in its discretion. The amended agreement expires in June 2007, provided that either party may terminate the agreement by providing the other party notice 30 days prior
to termination. If we terminate Mr. Bedford's employment without "cause" within the meaning of the employment agreement, or if Mr. Bedford terminates his employment for "cause," within the
meaning of the employment agreement, he will be entitled to receive $680,000, unless the agreement has less than 24 months remaining in its term. In that situation, Mr. Bedford's severance
payment will be prorated for the remainder of the term, but in no event will it be less than $170,000. Additionally, Mr. Bedford will be precluded from competing with us for a period of 12
months following the expiration or any termination of his employment agreement.
We entered into an employment agreement with Mr. Cooper in August 2003. The agreement was amended in December 2004. Upon execution of the amendment, Mr. Cooper received
a signing bonus of $350,000. Mr. Cooper's current annual salary is $175,000 and his annual deferred compensation payment is $70,000, throughout the term of the amended agreement. In
addition, Mr. Cooper is eligible for an annual bonus in such amount as our board of directors may determine in its discretion. The agreement expires in July 2007, provided that either party may
terminate the agreement by providing the other party notice 30 days prior to termination. If we terminate Mr. Cooper's employment without "cause" within the meaning of the employment
agreement, or if Mr. Cooper terminates his employment for "cause," within the meaning of the employment agreement, he will be entitled to receive $175,000. The severance payment will be
prorated if the remaining term of the agreement is less than 12 months. Additionally, Mr. Cooper will be precluded from competing with us for a period of 12 months following the expiration or
any termination of his employment agreement.
We entered into an employment agreement with Mr. Heller in August 2003. The agreement was amended in December 2004. Upon execution of the amendment, Mr. Heller received a
signing bonus of $170,000. Mr. Heller's current annual salary is $170,000 and his annual deferred compensation payment is $68,000, throughout the term of the amended agreement. In addition,
Mr. Heller is eligible for an annual bonus in such amount as our board of directors may determine in its discretion. The agreement expires in July 2007, provided that either party may terminate
the agreement by providing the other party notice 30 days prior to termination. If we terminate Mr. Heller's employment without "cause" within the meaning of the employment agreement, or if
Mr. Heller terminates his employment for "cause," within the meaning of the employment agreement, he will be entitled to receive $170,000. The severance payment will be prorated if the
remaining term of the agreement is less than 12 months. Additionally, Mr. Heller will be precluded from competing with Chautauqua or its affiliates, including us, for a period of 12 months
following the expiration or any termination of his employment agreement.
Number of Securities
Underlying Unexercised
Options at Year End
Value of Unexercised
In
-
the
-
Money Options at
Year End ($)
Shares
Acquired
on
Exercise
Value
Realized
Unexercisable
Exercisable
Unexercisable
Exercisable
Bryan K. Bedford
341,475
$
875,852
483,338
893,288
$
130,501
$
9,899,594
Robert H. Cooper
85,369
$
218,965
238,965
231,626
$
64,521
$
2,477,138
Wayne C. Heller
81,912
$
183,220
184,890
127,358
$
49,920
$
1,362,877
Potential Realizable Value at
Assumed Annual Rates of Stock
Price Appreciation for Option Term
Number of
Securities
Underlying
Options
Granted
Percent of
Total Options
Granted to
Employees in
Fiscal Year
Exercise Price
Expiration Date
5%
10%
Bryan K. Bedford
518,100
38.6
%
$
13.00
12/27/2014
$
4,236,000
$
10,734,000
Robert H. Cooper
255,960
19.1
%
$
13.00
12/27/2014
$
2,093,000
$
5,303,000
Wayne C. Heller
194,160
14.5
%
$
13.00
12/27/2014
$
1,587,000
$
4,023,000
59