SanDisk 1999 Annual Report Download - page 42

thirty-six hundredths percent (4.36%) of the total number of shares
outstanding on the last trading day in December in the immediately
preceding calendar year, but in no event will any such annual
increase exceed 4,000,000 shares.
1995 NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN
In August 1995, the Company adopted the 1995 Non-employee
Directors Stock Option Plan (the Directors’ Plan). Under this plan,
automatic option grants are made at periodic intervals to eligible non-
employee members of the Board of Directors. Initial option grants vest
over a four-year period. Subsequent annual grants vest one year after
date of grant. All options granted under the Non-employee Directors
Stock Option Plan expire ten years after the date of grant. In May
1999, the stockholders increased the shares available for future
issuance under the 1995 Non-Employee Directors Stock Option
Plan by 400,000 and approved an automatic share increase feature
pursuant to which the number of shares available for issuance under
the plan will automatically increase on the first trading day in
January each calendar year, beginning with calendar year 2002 and
continuing over the remaining term of the plan, by an amount equal
to two tenths of one percent (0.2%) of the total number of shares
outstanding on the last trading day in December in the immediately
preceding calendar year, but in no event will any such annual
increase exceed 200,000 shares. At December 31, 1999, the
Company reserved 800,000 shares of common stock for issuance
under the Directors’ Plan and a total of 368,000 options had been
granted at exercise prices ranging from $4.75 to $15.2188 per share.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Total Available Weighted
for Future Total Average
Grant/Issuance Outstanding Exercise Price
(Shares in thousands)
Balance at December 31, 1996 644 6,288 $ 2.745
Increase in authorized shares 5,100 ——
Granted ( 1,824 ) 1,824 $ 10.295
Exercised —( 716 ) $ 0.815
Canceled 290 ( 290 ) $ 4.915
Balance at December 31, 1997 4,210 7,106 $ 4.79
Granted ( 4,444 ) 4,444 $ 5.97
Exercised —( 1,260 ) $ 0.74
Canceled 2,038 ( 2,038 ) $ 10.04
Balance at December 31, 1998 1,804 8,252 $ 4.75
Increase in authorized shares 7,400 ——
Granted ( 3,000 ) 3,000 $ 31.00
Exercised —( 1,766 ) $ 3.47
Canceled 308 ( 308 ) $ 9.69
Balance at December 31, 1999 6,512 9,178 $ 9.50
Options Outstanding Options Exercisable
Number Weighted Number
Outstanding Average Weighted Exercisable Weighted
Range of as of Remaining Average as of Average
Exercise Prices December 31, 1999 Contractual Life Exercise Price December 31, 1999 Exercise Price
$ 0.075 - $ 5.000 3,158,873 7.06 $ 3.6738 2,000,893 $ 3.0218
$ 5.094 - $ 6.375 2,568,148 8.21 $ 6.1155 1,020,628 $ 6.0525
$ 6.438 - $ 17.563 848,266 8.59 $ 11.1795 308,936 $ 10.4085
$ 22.500 - $ 30.000 684,000 9.67 $ 25.4940 0 $ 0.0000
$ 31.188 - $ 41.031 1,918,932 9.91 $ 35.8804 0 $ 0.0000
$ 0.075 - $ 41.031 9,178,219 8.32 $ 13.4104 3,330,457 $ 4.6358
A summary of activity under all stock option plans follows:
At December 31, 1999, options outstanding were as follows:
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SanDisk Corporation