eTrade 2000 Annual Report Download - page 91

A summary of stock option activity follows (in thousands, except per share amounts):
Number of Shares Weighted Average Exercise Price
Outstanding at September 30, 1997 28,340 $ 2.69
Granted 16,035 $ 5.50
Exercised (3,642 ) $ 1.43
Canceled (2,028 ) $ 4.53
Outstanding at September 30, 1998 38,705 $ 3.88
Granted 10,811 $ 10.67
Exercised (8,020 ) $ 2.25
Canceled (1,410 ) $ 8.57
Outstanding at September 30, 1999 40,086 $ 7.59
Granted 16,438 $ 20.71
Exercised (9,747 ) $ 4.25
Canceled (6,796 ) $ 15.28
Outstanding at September 30, 2000 39,981 $ 12.50
September 30,
2000 1999 1998
Options available for grant 4,261 20,394 29,015
Options exercisable 16,799 11,798 9,851
Options exercisable weighted average exercise price $ 9.57 $ 3.95 $ 2.75
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Included in the above table as of September 30, 2000 are 500,000 stock options issued and outstanding outside the 1996 Plan, which
were granted below fair market value. Such options were immediately vested. Accordingly, the Company recorded expense of $4.9
million for the estimated fair value of these options. The weighted average fair value and the weighted average exercise price of these
option grants in fiscal 2000 were $13.55, and $13.00, respectively. These options expire at various dates in 2009 and 2010.
Also included in the above table as of September 30, 2000 are 800,000 warrants issued and outstanding outside the 1996 Plan, which
were granted to two consultants at $4.25 per share during fiscal 1999. Such warrants were immediately vested. Accordingly, the
Company recorded expense of $2.2 million for the estimated fair value of these options.
On October 22, 1998, the Company implemented an option cancellation/regrant program pursuant to which associates who held
outstanding stock options with an exercise price in excess of $4.25 per share were able to cancel the previously issued options and
receive the same number of new options at an exercise price of $4.25, the closing price of the Company’ s common stock on October
22, 1998. Each new option has a maximum term of ten years, subject to earlier termination upon the optionee’ s cessation of service,
and will become exercisable in a series of four successive equal annual installments over the optionee’ s period of continued service
which the Company measured from October 22, 1998, the regrant date. Options covering a total of 14,422,604 shares of the
Company’ s common stock were cancelled and regranted under the program. The cancellation and regranting of such shares has been
excluded from the stock option activity schedule above.
The following table summarizes information on outstanding and exercisable stock options as of September 30, 2000:
Options Outstanding Options Exercisable
Number Outstanding as of
9/30/00
(in thousands)
Weighted Average Contractual
Life (Years)
Weighted Average
Exercise Price
Number Exercisable as
of 9/30/00
(in thousands)
Weighted Average
Exercise Price
$0.10—$2.63 6,203 5.61 $ 1.30 4,801 $ 1.27
$2.64—$5.00 11,032 7.68 $ 4.25 4,200 $ 4.35
$5.08—$8.02 3,516 7.84 $ 7.46 2,467 $ 6.74
$8.44—$15.57 5,050 9.46 $ 14.32 1,117 $ 13.83
$15.59—$30.00 13,171 9.20 $ 23.89 4,069 $ 24.00
$30.39—$58.75 1,009 8.92 $ 38.92 145 $ 45.77
$0.10—$58.75 39,981 8.12 $ 12.50 16,799 $ 9.57
2002. EDGAR Online, Inc.