32) The plan must not give the administrative committee the power to reduce the exercise price
under any circumstances, except for the usual pro-rata adjustments of option amounts and exercise prices
in the case of recapitalizatious or mergers.
If the exercise price
of each ISO granted under an employer's plan is equal to the fair market value of the underlying shares of stock at the time of grant (a common situation, although ISOs with exercise prices
in excess of current fair market value are obviously permissible), then compliance can be tested by comparing $100,000 to the product of (i) the number of shares with respect to which ISOs of an employee first become exercisable in a particular year and (i) the exercise price
Disclosures you need to make under the new standard are a description of the plan; the number and weighted average exercise prices
of options outstanding and the number exercisable at the beginning and end of the year; the number of options granted, exercised, forfeited or expired during the year; and the weighted average fair values of options granted during the year.
For example, if the exercise prices
of the options in the above examples were raised to $30 from $25, the value of the options using Black-Scholes would fall to $4.
On several occasions, in order to select favorable exercise prices
for certain newly hired executives or other senior personnel, the Company created employment records to establish start dates that preceded the date they actually began working for the Company.
The Special Committee further concluded that, as a result of, among other things, such inadequate controls and practices, there were certain instances where the exercise prices
of certain stock option grants, principally related to new hire grants, appear to have been selected with the benefit of hindsight -- i.
Under the stock option exchange program, holders of eligible options will have the opportunity to exchange options with exercise prices
of $6 or more for a lesser number of replacement options having an exercise price
equal to the fair market value of WatchGuard's common stock on the grant date of the replacement options, currently expected to be May 19, 2005.
All exercise prices
reflect the market value of the company stock on the date of grant.
Pupo's Option Agreement provides for the issuance of options to purchase 4,000,000 shares of the Company's common stock which options vest and become exercisable equally over his three year Employment Agreement in twelve quarterly installments beginning January 1, 2004 at increasing exercise prices
48 million employee options with exercise prices
ranging from $1.
Various transactions occurred during the term of the warrants that caused changes in the number of warrants and the exercise prices
There are currently 4,319,750 shares of Common Stock underlying the warrants at exercise prices
ranging from $0.