National Oilwell Varco 2000 Annual Report Download - page 35

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33
National Oilwell’s business is affected both directly and indirectly by governmental laws and
regulations relating to the oilfield service industry in general, as well as by environmental and
safety regulations that specifically apply to National Oilwell’s business. Although National
Oilwell has not incurred material costs in connection with its compliance with such laws, there
can be no assurance that other developments, such as stricter environmental laws, regulations and
enforcement policies thereunder could not result in additional, presently unquantifiable costs or
liabilities to National Oilwell.
10. Common Stock
National Oilwell has authorized 150 million shares of $.01 par value common stock. National
Oilwell also has authorized 10 million shares of $.01 par value preferred stock, none of which is
issued or outstanding.
National Oilwell’s stock plans collectively authorize the grant or options to purchase up to
6,038,733 shares of National Oilwell’s common stock to officers, key employees, non-employee
directors and other persons. Options granted generally vest over a 3-year period starting one year
from the date of grant and expire 5 or 10 years from the date of grant.
Options outstanding at December 31, 2000 under the stock option plans have exercise prices
between $5.62 and $33.00 per share, and expire at various dates from March 21, 2002 to July 21,
2010. The weighted average exercise price on the 2,792,585 outstanding options at December 31,
2000 is $16.50.