XM Radio 2001 Annual Report Download - page 52

50 XM SATELLiTE RADiO 2 0 0 1 Annual Report
Options Outstanding Options Exercisable
Weighted-
Average Weighted- Weighted-
Remaining Average Average
Exercise Number Contractual Exercise Number Exercise
Price Outstanding Life Price Exercisable Price
1999 $9.52-$12.0 0 2,099,089 9.24 years $10.32 41 6,294 $9.52
2000 $9.52-$12.0 0 2,120,400 8.26 years $10.39 1,110,7 56 $10.06
$12.01 -$3 0.50 297 ,6 85 9.03 years $ 23 .13 5,334 $ 13 .1 3
$30.51 -$4 5.44 677 ,6 03 9.54 years $ 37 .92 20 ,0 00 $43.69
2001 $4.82-$9.42 363 ,7 00 9.31 years $7.91 55,000 $8.46
$9.44-$12.0 0 2,256,263 7.50 years $10.37 1,716,1 53 $10.21
$12.06 -$2 6.88 2,14 2,409 9.14 years $17.75 16 5,1 32 $18.90
$27.63 -$4 5.44 736 ,5 68 8.52 years $ 36 .81 272,68 1 $36.93
There were 416,29 4, 1,136 ,090 and 2,208,966 stock options exercisable at December 31 , 1999, 2000 and 2001,
respectively. At December 31 , 2001, there were 2,197,579 shares available under the plan for future grants.
At December 31, 2001, all options have been issued to employees, officers and directors, except for 76,000
options granted to non-employees for which the Company recognized $1,147,000 in non-cash compensation.
The per share weighted-average fair value of employee options granted during the year ended December 31,
1999, 2000 and 2001 was $6.21, $22.06 and $8 .77, respectively, on the date of grant using the Black-
Scholes Option Pricing Model with the following weighted-average assumptions:
December 3 1,
1999 20 00 20 01
Expected dividend yield................... 0% 0% 0%
Volatility ......................................... 63.9 2% 6 8.21% 62.40%
Risk-free interest rate range ............ 5.47 % to 5.97% 4.99% to 6.71% 3.66% to 4.99%
Expected life .................................. 5 years 5 years 5 years
Employee Stock Purchase Plan
In 1999, the Company established an employee stock purchase plan that provides for the issuance of 300,000 shares
of Class A common stock, which was increased to 600,00 0 shares in 2001. All employees whose customary
employment is more than 2 0 hours per week and for more than five months in any calendar year are eligible to
participate in the stock purchase plan, provided that any employee who would own 5% or more of the Company’s total
combined voting power immediately after an offering date under the plan is not eligible to participate. Eligible
employees must authorize the Company to deduct an amount from their pay during offering periods established by the
compensation committee. The purchase price for shares under the plan will be determined by the compensation
committee but may not be less than 85% of the lesser of the market price of the common stock on the first or last
business day of each offering period. As of December 31, 1999, 2000 and 2001, the Company had issued 28,791,
53,539 and 217,401 shares, respectively, under this plan. At December 31, 2001, there were 382 ,599 shares
available under the plan for future sale.
The per share weighted-average fair value of purchase rights granted during the year was $3.30, $11.28, and $5.37
for the years ended December 31 , 1999, 2000 and 2001, respectively. The estimates were calculated at the grant date
using the Black-Scholes Option Pricing Model with the following assumptions at December 31, 1999, 2000 and 2001:
December 3 1,
1999 20 00 20 01
Expected dividend yield................... 0% 0% 0%
Volatility ......................................... 62.9 2% 6 8.21% 62.40%
Risk-free interest rate range ............ 4 .73% 5.33%–6.2 3% 2.4 %–5.89%
Expected life .................................. 0.23 years 0.24 years 0.24 years
AMERiCA’S FiRST SATELLiTE RADiO SERViCE
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