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TABLE OF CONTENTS
STAMPS.COM INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
11. Employee Stock Plans
Stock Incentive Plans
Our 1999 Stock Incentive Plan (the “1999 Plan”) served as the successor to the 1998 Stock Plan (the “Predecessor Plan”).
The 1999 Plan became effective in June 1999. At that time, all outstanding options under the Predecessor Plan were transferred
to the 1999 Plan, and no further option grants can be made under the Predecessor Plan. All outstanding options under the
Predecessor Plan continued to be governed by the terms and conditions of the existing option agreements for those grants, unless
our compensation committee decides to extend one or more features of the 1999 Plan to those options. In June 2009, our 1999
Plan expired and no further options grants can be made under this plan.
A summary of stock option activity is as follows (in thousands, except per share amounts):
The weighted-average fair value of stock grants for 2009, 2008 and 2007 using the Black-Scholes valuation method are as
follows:
Options
Outstanding
Weighted
Average
Exercise Price
Number of
Options
Balance at December 31, 2006
2,197
$
17.52
Granted
1,368
13.71
Forfeited
(342
)
18.86
Exercised
(132
)
7.05
Balance at December 31, 2007
3,091
$
16.17
Granted
528
11.36
Forfeited
(288
)
16.48
Exercised
(45
)
7.49
Balance at December 31, 2008
3,286
$
16.77
Granted
146
8.93
Forfeited
(238
)
26.54
Exercised
(18
)
6.57
Balance at December 31, 2009
3,176
$
14.38
Weighted average exercise prices for 2009 stock options are as follows:
2009
2008
2007
Weighted-average fair value of stock options with an exercise price
equal to the market price on the grant date
$
4.04
$
5.28
$
6.56
Weighted-average fair value of stock options with an exercise price
greater than the market price on the grant date —
—
—
Total
$
4.04
$
5.28
$
6.56
2009
Weighted-average exercise price of stock options with an exercise price equal to the
market price on the grant date $
6.57
Weighted-average exercise price of stock options with an exercise price greater than the
market price on the grant date —
Total weighted-average exercise price $
6.57