Health Net 2009 Annual Report Download - page 127

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A summary of option activity under our various plans as of December 31, 2009, and changes during the year
then ended is presented below:
Number of
Options
Weighted
Average
Exercise Price
Weighted Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic Value
Outstanding at January 1, 2009 ................. 6,130,513 $29.77
Granted .................................... 250,552 16.76
Exercised .................................. (131,641) 10.29
Forfeited or expired .......................... (498,376) 33.34
Outstanding at December 31, 2009 .............. 5,751,048 $29.33 4.19 $3,971,163
Vested or expected to vest at December 31, 2009
(reflecting estimated forfeiture rates effective in
2009) ................................... 5,660,042 $29.33 4.14 $3,671,250
Exercisable at December 31, 2009 ............... 4,824,930 $28.43 3.65 $1,524,718
Options Outstanding Options Exercisable
Range of
Exercise Prices
Number of
Options
Weighted Average
Remaining
Contractual Life
(Years)
Weighted Average
Exercise Price
Number of
Options
Weighted Average
Exercise Price
$ 7.78 – 20.00 ............... 338,700 6.26 $13.97 62,525 $11.54
20.01 – 25.00 ............... 2,651,299 2.56 23.24 2,584,672 23.24
25.01 – 30.00 ............... 1,267,617 4.78 28.64 1,165,103 28.69
30.01 – 40.00 ............... 419,009 5.13 33.64 404,603 33.67
40.01 – 50.00 ............... 884,010 6.26 47.09 497,893 46.95
50.01 – 58.07 ............... 190,413 7.16 54.20 110,134 54.19
$ 7.78 – 58.07 ............... 5,751,048 4.19 $29.33 4,824,930 $28.43
We have entered into restricted stock, RSU and PSU agreements with certain employees. We have awarded
shares of restricted common stock under the restricted stock agreements and rights to receive common stock
under the RSU and PSU agreements to certain employees. Each RSU and each PSU represents the right to
receive, upon vesting, one share of common stock. Awards of restricted stock, RSUs and PSUs are subject to
restrictions on transfer and forfeiture prior to vesting. During the years ended December 31, 2009, 2008 and
2007, we did not award any restricted stock. During the years ended December 31, 2009, 2008 and 2007, we
awarded 926,649, 1,000,699 and 945,479 RSUs and PSUs, respectively.
As of December 31, 2009 and 2008, we had no restricted common stock awards outstanding.
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