eTrade 2001 Annual Report Download - page 153

Exercised (7,218 ) $ 3.18
Canceled (7,135 ) $ 14.97
Outstanding at December 31, 2001 46,115 $ 11.05
Year Ended
December31, 2001
ThreeMonths Ended
December31, 2000 Year Ended
September31,
2000
Year Ended
September30, 1999
Options available for grant 18,703 32,560 4,261 20,394
Options exercisable 23,231 20,959 16,799 11,798
Options exercisable weighted average
exercise price
$ 11.68 $ 9.62 $ 9.57 $ 3.95
During fiscal 2001, approximately 180,000 stock options were granted below fair market value through the Salary Investment Option
Grant Program. The expense recorded for the estimated fair value of the options was $900,000. During fiscal 2000, 500,000 stock
options were granted below fair market value outside the 1996 Plan. Such options were immediately vested. Accordingly, the
Company recorded expense of $4.9 million for the estimated fair value of these options. In fiscal 2000, the weighted average fair value
of these options were $13.55 and the weighted average exercise price was $13.00. These options expire at various dates in 2009 and
2010. As of December 31, 2001, 400,000 of these options were unexercised and cancelled.
Also included in the above table as of December 31, 2001 are warrants issued and outstanding which were issued outside the 1996
Plan. Among these issuances were grants to two consultants at $4.25 per share during fiscal 1999. Such warrants were immediately
vested. Accordingly, the Company recorded expense of $2.2million 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
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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 re-grant 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 December31, 2001:
Options Outstanding Options Exercisable
Number Outstanding
(inthousands) Weighted Average Contractual Life
(Years)
Weighted
Average Exercise
Price
Number Exercisable
(inthousands) Weighted Average Exercise
Price
$ 0.10–$5.10 11,903 7.02 $ 3.94 7,294 $ 3.43
$ 5.19–$7.09 13,792 8.78 $ 6.59 6,168 $ 6.64
$ 7.20–$15.57 9,688 8.80 $ 10.94 3,239 $ 11.97
2002. EDGAR Online, Inc.