INTL FCStone 2005 Annual Report Download - page 71

INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements—(Continued)
September 30, 2005 and 2004
(21) Employee Benefit Plan
Effective January 1, 2003, the Company implemented a Savings Incentive Match Plan for Employees IRA
(SIMPLE IRA). All employees are eligible to participate in the SIMPLE IRA upon the later of (a) the plan’s
effective date (January 1, 2003) or (b) the employee’s date of hire. Eligible employees may elect to contribute up
to a maximum of $10,000 ($12,000 if over age 50) for 2005. The Company is required to provide an employer
match of the employee’s elective deferral on a dollar-for-dollar basis not to exceed the lesser of 3% of the
employee’s compensation or $10,000 for 2005 ($12,000 if over age 50). Each employee is 100% vested in both
the employee and employer contributions at all times. For the years ended September 30, 2005 and 2004, the
employer match was $180,174 and $142,988, respectively.
Effective February 1, 2005, the Company offered its employees the opportunity to participate in a Flexible
Spending Account (an “FSA”). An FSA is a pre-tax benefit allowable under IRS Code section 125. It allows
eligible employees to set aside a specific pretax dollar amount for unreimbursed medical, dental, and dependent
care expenses. While the Company makes no contributions into these accounts, it does bear the cost of
administration.
(22) Stock Options and Warrants
The International Assets Holding Corporation 2003 Stock Option Plan (the 2003 Plan) was adopted by the
Board of Directors of the Company on December 19, 2002 and approved by the Company’s stockholders on
February 28, 2003. The 2003 Plan expires on December 19, 2012. The International Assets Holding Corporation
Stock Option Plan (the 1993 Plan) was adopted by the Board of Directors of the Company and approved by the
Company’s stockholders on January 23, 1993 and expired on January 23, 2003. However, there are still
outstanding options that were granted under the 1993 Plan. The 2003 Plan permits the granting of stock options
to employees, directors and consultants of the Company. Stock options granted under either Plan may be
“incentive stock options” meeting the requirements of Section 422 of the Internal Revenue Code of 1986, as
amended, or nonqualified stock options, which do not meet the requirements of Section 422. As of September 30,
2005, a total of 1,000,000 shares of the Company’s common stock have been authorized for issuance pursuant to
options granted under the 2003 Plan. The Company was authorized to issue up to 1,339,300 shares of the
Company’s common stock at the time that the 1993 Plan expired on January 23, 2003. At September 30, 2005
the total number of options outstanding was 1,008,516. The total options outstanding include 459,334 options
outstanding under the 1993 Plan and 549,182 options outstanding under the 2003 Plan.
The Plans (meaning the 2003 and 1993 Plans) are administered by the Company’s Board of Directors or a
committee thereof. The Plans give broad powers to the Board of Directors to administer and interpret the Plans,
including the authority to select the individuals to be granted options and to prescribe the particular form and
conditions of each option. All options are granted at an exercise price equal to the fair market value or, in certain
cases, not less than 110% of the fair market value of the Company’s common stock on the date of the grant.
Awards may be granted pursuant to the 2003 Plan through December 19, 2012, unless the Board of Directors at
its sole discretion elects to terminate the 2003 Plan earlier. The Company is not authorized to grant additional
options under the 1993 Plan because it expired on January 23, 2003.
At September 30, 2005, there were 266,768 additional shares available for grant under the 2003 Plan.
Using the Black-Scholes option-pricing model, the per share weighted average fair values of stock options
granted during 2005 and 2004, where the exercise price equals the market price of the stock on the grant date,
were $4.13 and $1.28, respectively. The per share weighted average fair value of stock options granted during
F-31