Stock Option and Purchase Plans. Employee shall be entitled to participate in stock option and purchase plans or programs established by the Employer for executives who are members of the Corporation's senior management, in accord with the requirements of said plans or programs.
Stock Option and Purchase Plans. Employee shall receive options to purchase an aggregate of 315,000 shares of Employer's common stock pursuant to the option agreements in the forms attached hereto as Exhibits A-1 and A-2. Employee shall also be entitled, in the discretion of the Board of Directors, to participate in stock option and purchase plans or programs established by Employer for executives who are members of the Corporation's senior management, in accord with the requirements of said plans or programs.
Stock Option and Purchase Plans. Stock Option Plans Under the 1991 Incentive Stock Plan (the Plan), the Company may grant incentive or non-statutory stock options or stock purchase rights (SPRs). Up to 7,800,000 shares of common stock have been authorized for issuance under the Plan. The Plan allows the Company to grant incentive stock options (ISOs) to employees and non-statutory stock options (NSOs) to employees, directors and consultants at not less than the fair market value (for an ISO) of the stock at the date of grant (110% of fair market value for individuals who control more than 10% of the Company stock; otherwise, not less than 85% of fair market value for an NSO), as determined by the Board of Directors. Under the Plan, 25% of the options generally become exercisable after one year and 2.0833% per month thereafter. The term of the option is determined by the Board of Directors on the date of grant but shall not be longer than ten years. The Plan allows the Company to grant SPRs to employees and consultants at not less than 85% of the fair market value of the stock at the date 41 42 VIVUS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) of grant, as determined by the Board of Directors. Sales of stock under SPRs are made pursuant to restricted stock purchase agreements containing provisions established by the Board of Directors. The Company has a right to repurchase the shares at the original sale price, which expires at a rate to be determined by the Board of Directors. As of December 31, 2000, no SPRs have been granted under the Plan. Under the 1994 Director Option Plan (the Director Option Plan), the Company reserved 400,000 shares of common stock for issuance to non-employee directors of the Company pursuant to non-statutory stock options issued at the fair market value of the Company's common stock at the date of grant. Under the Director Option Plan, non-employee directors will receive an option to purchase 32,000 shares of common stock when they join the Board of Directors. These options vest 25% after one year and 25% annually thereafter. Each director shall receive an option to purchase 8,000 shares of the Company's common stock annually upon their reelection. These options are fully exercisable ratably over eight months. Details of option activity under these plans are as follows: NUMBER OF SHARES WEIGHTED AVERAGE EXERCISE PRICE Outstanding, December 31, 1997.............................. 4,521,195 $13.57 Granted...............................................
Stock Option and Purchase Plans. All stock options granted by the Company under the below-described plans were granted at the fair value of the stock at the date of grant. Outstanding stock options, if not exercised, expire 10 years from the date of grant. The 1992 Combination Stock Option Plan (the Combination Plan), as amended, was adopted in September 1992 as a combination and restatement of the Company's then outstanding Incentive Stock Option Plan and Nonqualified Plan. Options granted and outstanding under the Combination Plan are primarily held by Company employees and generally become exercisable ratably over five years. In addition, the Company has a nonqualified stock option plan for non- employee directors (the Directors' Plan). The Directors' Plan, as amended in August 1992, was adopted in July 1989 and provides for grants of options to purchase 12,500 shares of the Company's Common Stock to any newly elected eligible director and grants of additional options to purchase 12,500 shares of Common Stock to existing directors on July 1 of each successive fifth year. These options vest over a five-year period at the rate of 2,500 shares per year, commencing on June 30 of the year following the date of grant. Separate from the Directors' Plan, non-employee directors of the Company receive as compensation an annual retainer of 400 shares of Common Stock. The Company issued 2,000 shares of its Common Stock for this purpose in the years ending March 31, 1997 and 1998. ABIOMED, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998 (CONTINUED)
