8x8 2004 Annual Report Download - page 59

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be equal to the fair market value of a share of the Company's common stock on the date of grant. Options generally
vest over a period of four years. Options granted to Outside Directors under the Director Plan have a ten year term,
or shorter upon termination of an Outside Director's status as a director. If not terminated earlier, the Director Plan
will have a term of ten years.
1999 Nonstatutory Stock Option Plan
In fiscal 2000, the Company's Board of Directors approved the 1999 Nonstatutory Stock Option Plan (the 1999
Plan) with 600,000 shares initially reserved for issuance thereunder. In fiscal 2001, the number of shares reserved
for issuance was increased to 3,600,000 shares by the Board of Directors. Under the terms of the 1999 Plan, options
may not be issued to either officers or directors of the Company provided, however, that options may be granted to
an officer in connection with the officer's initial employment by the Company. Options generally vest over four
years and expire ten years after grant. The 1999 Plan has not been approved by the stockholders of the Company.
Option activity under the Company's stock option plans since March 31, 2001, excluding the stock option plans of
its subsidiaries, Netergy Microelectronics, Inc. and Centile, Inc. is summarized as follows:
Weighted
Shares Average
Shares Subject to Exercise
Available Options Price
for Grant Outstanding Per Share
Balance at March 31, 2001.........................................
.
2,906,198 7,731,891 $ 5.24
Change in options available for grant...................... (23,898) -- --
Granted.........................................................................
.
(4,901,073) 4,901,073 1.09
Exercised....................................................................... -- (40,757) 0.01
Returned to plan.......................................................... 2,692,381 (2,692,381) 6.18
Balance at March 31, 2002.........................................
.
673,608 9,899,826 2.95
Change in options available for grant...................... 1,370,187 -- --
Granted.........................................................................
.
(857,800) 857,800 0.48
Exercised....................................................................... -- (53,040) 0.37
Returned to plan.......................................................... 3,089,997 (3,089,997) 3.05
Balance at March 31, 2003.........................................
.
4,275,992 7,614,589 2.65
Change in options available for grant...................... -- -- --
Granted.........................................................................
.
(2,420,000) 2,420,000 2.12
Exercised....................................................................... -- (1,445,438) 1.30
Returned to plan.......................................................... 2,375,843 (2,375,843) 2.64
Balance at March 31, 2004.........................................
.
4,231,835 6,213,308 $ 2.77
Significant option groups outstanding at March 31, 2004 and related weighted average exercise price and contractual
life information for 8x8, Inc.'s stock option plans are as follows:
Options Outstanding Options Exercisable
Weighted Weighted Weighted
Average Average Average
Exercise Remaining Exercise
Price Contractual Price
Shares Per Share Life (Years) Shares Per Share
$ 0.01 to $ 3.16................................
.
4,653,134 $ 1.63 7.8 2,090,208 $ 1.71
$ 3.16 to $ 6.32................................
.
1,061,268 $ 3.94 7.1 722,702 $ 3.77
$ 6.32 to $ 9.49................................
.
174,406 $ 7.44 3.4 165,561 $ 7.41
$ 9.49 to $12.65...............................
.
266,000 $ 11.50 4.5 255,287 $ 11.48
$12.65 to $15.81..............................
.
23,500 $ 14.59 6.2 22,602 $ 14.59
$15.81 to $28.46..............................
.
35,000 $ 21.19 4.5 35,000 $ 21.19
6,213,308 3,291,360