Stamps.com 2002 Annual Report Download - page 67

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Table of Contents
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables summarize information concerning outstanding and exercisable options at December31, 2002 (in thousands, except
number of years and per share amounts):
Options Outstanding Options Exercisable
Range of Exercise Prices Number
Outstanding
Weighted
Average
Remaining
ContractualLife
(in Years)
Weighted
Average
ExercisePrice
perShare
Number
Exercisable
Weighted
Average
ExercisePrice
perShare
$0.05–$2.99 1,167 7.8 $ 2.15 841 $ 2.04
$3.00–$5.60 2,024 9.0 $ 4.34 583 $ 4.19
$5.61–$39.50 695 7.3 $ 15.71 552 $ 16.60
$39.51–$81.00 31 7.0 $ 55.79 30 $ 55.75
$0.05–$81.00 3,917 8.3 $ 6.10 2,006 $ 7.48
Employee Stock Purchase Plan
In June 1999, the Company’ s Board of Directors adopted an Employee Stock Purchase Plan (“ESPP” or “Purchase Plan”) which allows eligible
employees of the Company and eligible employees of the Company’ s participating subsidiaries to purchase shares of common stock, at
semi-annual intervals, with their accumulated payroll deductions.
Eligible participants may contribute up to 15% of cash earnings through payroll deductions, and the accumulated deductions will be applied to
the purchase of shares on each semi-annual purchase date. The purchase price per share will be equal to 85% of the fair market value per share
on the participant’ s entry date into the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.
Upon adoption of the plan, 300,000 shares of common stock were reserved for issuance. This reserve will automatically increase on the first
trading day in January each year, beginning in calendar year 2000, by an amount equal to 1% of the total number of outstanding shares of the
Company’ s common stock on the last trading day in December in the prior year. The increase on January 1, 2000 was 409,851 shares based on
40,985,054 shares outstanding on December 31, 1999. The increase on January 1, 2001 was 496,542 based upon 49,654,227 shares outstanding
on December 31, 2000. The increase on January 1, 2002 was 507,227 based upon 50,722,713 shares outstanding on December 31, 2001. In no
event will any annual increase exceed 521,571shares.
Total shares of common stock issued during 2002, 2001 and 2000 were 33,744, 132,295 and 137,772, respectively.
Savings Plan
During 1999, the Company implemented a savings plan for all eligible employees, which qualifies under Section 401(k) of the Internal Revenue
Code. Participating employees may contribute up to 15% of their pretax salary, but not more than statutory limits. The Company matches 50%
of the first 4% a participant contributes. The Company expensed $86,000, $238,000 and $200,000 in 2002, 2001 and 2000, respectively,
related to this plan.
16.Legal Proceedings
On June 16, 1999, Pitney Bowes sued the Company for alleged patent infringement in the United States District Court for the District of
Delaware (“Pitney I”). The suit originally alleged that the Company was infringing two patents held by Pitney Bowes related to postage
2003. EDGAR Online, Inc.