Stamps.com 2004 Annual Report Download - page 54

F-19
STAMPS.COM INC.
NOTES TO FINANCIAL STATEMENTS (continued)
The following tables summarize information concerning outstanding and exercisable options at
December 31, 2004 (in thousands, except number of years and per share amounts):
Options Outstanding Options Exercisable
Range of Exercise Prices
Number
Outstanding
Weighted
Average
Remaining
Contractual
Life (in
Years
Weighted
Average
Exercise
Price per
Share
Number
Exercisable
Weighted
Average
Exercise
Price per
Share
$0.10-$0.12.................................................... 34 3.7 $ 0.12 34 $ 0.12
$0.54-$0.54.................................................... 15 4.1 0.54 15 0.54
$1.40-$1.40.................................................... 7 4.6 1.40 7 1.40
$3.76-$4.78.................................................... 413 5.9 4.08 407 4.07
$6.12-$8.78.................................................... 960 7.2 7.03 735 7.05
$9.38-$13.89.................................................. 466 8.4 10.54 190 10.28
$14.09-$20.26................................................ 1,059 9.6 17.40 1,042 17.44
$23.38-$23.38................................................ 104 5.3 23.38 104 23..38
$36.42-$36.42................................................ 40 5.1 36.42 40 36.42
$55.88-$79.00................................................ 101 4.8 62.78 101 62.78
$98.50-$131.50.............................................. 7 4.9 123.71 7 123.71
$158.50-$158.50............................................ 2 4.9 $ 158.50 2 $ 158.50
$0.10-$158.50................................................ 3,208 7.8 $ 13.45 2,685 $ 14.28
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 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, 150,000 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, 2002 was 253,614 based upon 25,361,357 shares outstanding
on December 31, 2001. The increase on January 1, 2003 was 222,443 based upon 22,244,235 shares outstanding on
December 31, 2002. The increase on January 1, 2004 was 220,640 based upon 22,064,044 shares outstanding on
December 31, 2003. In no event will any annual increase exceed 260,786 shares.
Total shares of common stock issued pursuant to the ESPP during 2004, 2003 and 2002 were 32,449,
26,867 and 16,872, 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 approximately $140,996, $115,000 and $86,000 in 2004, 2003 and 2002, respectively, related to
this plan.