3Ware 1999 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 1999 3Ware annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 44

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44

From April 1, 1997 through September 30, 1997, the Company recorded deferred compensation expense for the difference
between the exercise price and the fair value for financial statement presentation purposes of the Company’s Common Stock,
as determined by the Board of Directors, for all options granted in the period. This deferred compensation aggregates
to $599,000, which is being amortized ratably over the four-year vesting period of the related options. Additionally, during
the year ended March 31, 1999, the Company recorded deferred compensation related to restricted stock and stock options
granted to founders and employees of Cimaron of $2.5 million. Such amount is being amortized over the related vesting
period, generally five years. Amortization of deferred compensation during fiscal years 1998 and 1999 was $127,000
and $860,000, respectively.
EMPLOYEE STOCK PURCHASE PLANS
The Company’s 1997 Employee Stock Purchase Plan (the “1997 Purchase Plan”) was adopted by the Board of Directors
on October 6, 1997 and was subsequently approved by the stockholders. A total of 400,000 shares of Common Stock
are reserved for issuance under the 1997 Purchase Plan. At March 31, 1999, 393,874 shares had been issued under the
1997 Purchase Plan.
The Company’s 1998 Employee Stock Purchase Plan (the “1998 Purchase Plan”) was approved by the stockholders
on August 4, 1998. A total of 400,000 shares are authorized for issuance under the 1998 Purchase Plan. At March 31, 1999,
23,308 shares had been issued under the 1998 Purchase Plan.
Under the terms of the plans, purchases are made semiannually on January 31 and July 31 and the purchase price of the
Common Stock is equal to 85% of the fair market value of the Common Stock on the first or last day of the offering period,
whichever is lower.
1997 DIRECTORS’ STOCK OPTION PLAN
The Company’s 1997 Directors’ Stock Option Plan (the “Directors’ Plan”) was adopted by the Board of Directors
on October 6, 1997 and was subsequently approved by the stockholders. A total of 200,000 shares of Common Stock
are reserved for issuance under the Directors’ Plan. The Directors’ Plan provides for the grant of nonstatutory options
to nonemployee directors of the Company. At March 31, 1999, no shares had been issued under the Directors’ Plan.
COMMON SHARES RESERVED FOR FUTURE ISSUANCE
At March 31, 1999, the Company has the following shares of Common Stock reserved for issuance upon the exercise
of equity instruments:
Stock Options:
Issued and outstanding 2,673,344
Authorized for future grants 1,724,785
Stock purchase plans 382,818
4,780,947
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
35
1999
AMCC