8x8 2002 Annual Report Download - page 64

$ 6.32 to $ 9.49... 410,812 7.43 7.6 216,191 7.34
$ 9.49 to $12.65... 771,500 11.60 8.1 346,821 11.58
$12.65 to $15.81... 38,500 14.56 8.2 17,453 14.56
$15.81 to $25.44... 77,500 22.10 7.9 39,423 22.04
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9,899,826 $ 2.95 8.6 2,822,786 $ 4.47
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The Company recorded a deferred compensation charge of approximately $7,267,000 with respect to options repriced
and certain additional options granted in fiscal 1997. In addition, the Company recorded deferred compensation charges
of approximately $503,000 and $406,000 in connection with certain options granted to non-
officer employees in fiscal
2001 and 2000, respectively. The Company recognizes deferred compensation over the related vesting period of the
options (which is generally forty-
eight months). The Company recognized $753,000 and $161,000 as compensation
expense in the fiscal years ended March 31, 2001 and 2000, respectively. Stock compensation expense in fiscal 2002
was not significant. At March 31, 2002, the balance of deferred compensation was $30,000. Deferred compensation is
subject to reduction for any employee who terminates employment prior to the expiration of such employee's option
vesting period.
Netergy Microelectronics, Inc. 2000 Stock Option Plan
Netergy's 2000 Stock Option Plan (the Netergy Plan) was adopted in December 2000 by the Netergy Board of
Directors. The Netergy Plan provides for granting incentive stock options (ISO) to employees and nonstatutory stock
options (NSO) to employees, directors, and consultants of Netergy. Options granted under the Netergy Plan may be
granted for periods up to ten years and at prices no less than 85% of the estimated fair value of the shares on the date of
grant as determined by the Netergy Board of Directors, provided, however, that (i) the exercise price of an ISO and
NSO shall not be less than 100% and 85% of the estimated fair value of the shares on the date of grant, respectively,
and (ii) the exercise price of an ISO and NSO granted to a 10% shareholder shall not be less than 110% of the
estimated fair value of the shares on the date of grant, respectively. To date, options granted vest over four years.
However, in the event of a change in control (as defined in the Netergy Plan document) vesting for certain options will
be accelerated. Option activity during fiscal 2001 and fiscal 2002 was as follows:
Weighted
Shares Average
Shares Subject to Exercise
Available Options Price
for Grant Outstanding Per Share
----------- ----------- ---------
Shares reserved at Netergy Plan's
inception........................ 5,000,000 -- $ --
Granted............................ (3,572,000) 3,572,000 0.50
Returned to plan................... 400,000 (400,000) 0.50
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Balance at March 31, 2001.......... 1,828,000 3,172,000 0.50
Granted............................ (136,000) 136,000 0.50
Exercised.......................... -- -- --
Returned to plan................... 264,834 (264,834) 0.50
----------- -----------
Balance at March 31, 2002.......... 1,956,834 3,043,166 $ 0.50
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As of March 31, 2002, 900,302 options were exercisable, the weighted average remaining contractual life was 8.2
years, and the weighted average exercise price was $0.50 per share.
Centile, Inc. 2001 Stock Option Plan