Frontier Airlines 2006 Annual Report Download - page 102

10. CAPITAL STOCK, STOCK OPTIONS AND WARRANTS
Common Stock and Capital Contributions
In June 2004, the Company completed its initial public stock offering. The Company issued 5,000,000 shares of common
stock at $13 per share. The net proceeds provided by this offering were $58,172, before the repayment of debt.
In 2005, the Company completed two follow-on public common stock offerings and issued a total of 15,812,500 shares of
common stock, for approximately $186,765, net of offering expenses.
In 2005 and 2004, Wexford Capital made capital contributions to Shuttle America of $400 and $3,950 respectively. The
Company made a capital distribution to WexAir of $1,000 in 2005 related to the merger transaction with Shuttle America.
At December 31, 2006, 5,160,576 shares of the Company’s 75,000,000 authorized shares were reserved for issuances under
the 2002 Equity Incentive Plan and warrants. At December 31, 2006, the number of securities remaining available for future issuance
under equity compensation plans was 478,180 shares.
Employee Stock Options
In connection with employment agreements for certain key employees, the Company granted options to purchase shares of
the Company's common stock with exercise prices ranging from $1.75 to $17.00. These stock options vest ratably over the term of the
employment agreements (generally 48 months) and are exercisable for five years following the vesting dates. Additional
options have been granted and these options vest ratably over periods ranging from 8 months to 48 months, and are exercisable until
10 years from the date of grant.
The 2002 Equity Incentive Plan provides for the granting of up to 2,180,000 shares of our common stock. The stock options
vest ratably over 48 months and were granted with exercise prices equal to market prices on the grant date. The options expire ten
years from the date of grant. Options are granted to officers and key employees selected by the Compensation Committee of the Board
of Directors.
Non-employee Director Stock Options
The Company has also granted options for non-employee directors under the 2002 Equity Incentive Plan at a price equal to
the fair market value of the Common Stock on the date of the grant. Each non-employee director was automatically granted options to
purchase shares of common stock in May 2004 on the day prior to commencement of the initial public offering. The options vest over
a 3 year period with 1/24 of the shares vesting monthly for the first 12 months and 1/48 of the shares vesting monthly over the
remaining 24 months. The non-employee directors are to receive 2,500 options on the first trading day after each annual meeting of
stockholders at which he or she is re-elected as a non-employee director. These options vest ratably over 12 months of continuous
service. The non-employee options are exercisable until 10 years from the date of grant.
The following table summarizes option activity under the stock option plans as of December 31, 2006:
Options
Weighted
Average
Exercise Price
Aggregate
Intrinsic
Value
Weighted
Average
Contractual
Term
(in years)
Outstanding at January 1, 2006 2,624,435 $ 9.17
Granted 97,000 16.37
Forfeited 74,800 13.17
Exercised 921,058 3.29
Outstanding at December 31, 2006 1,725,577 $ 12.54 $ 7,316 7.60
Vested or expected to vest at December 31, 2006 1,613,565 $ 12.57 $ 7,182 6.70
Source: REPUBLIC AIRWAYS HOLDINGS INC, 10-K, March 15, 2007 Powered by Morningstar® Document Research℠