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PRESENTATION TITLE
Stock Options
Presentation author
Presentation date

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 What is a stock option?
- It is an option to buy the stock of our company.
- It is a form of non-cash compensation, it is considered
part of your overall compensation with our company.

At what price does it allow me to buy

company stock?
- An option allows you to buy company stock at the
“strike price” of an option.
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 How is “strike price” determined?
- The strike price is determined on the date the option
is issued.
- It is the closing market price of our stock the date the
option was issued.

When can I use my option?

- Once it vests.
- Your options vest over a three year period from the
date of grant, 30% on the first anniversary of the
grant, 30% on the second anniversary of the grant,
and 40% on the third anniversary of the grant. 3

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 When
1 does my option expire?
- Options have a five year life from their grant date.
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What if I can’t afford to buy the stock?
- You don’t actually have to buy the stock to receive the
benefits of the stock option.
- You would do what is called a “cashless exchange”.

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 For Example:
• On March 1, 2008, you were issued 1,000 stock options at a strike
price of $5.00.
• It is March 1, 2009, and 300 of your options have vested.
• Our stock is trading at $12.00/share , $7.00 over the strike price.
• You decide you would like to cash in on that.
• You would contact Solium, our plan administrator, and ask to do a
“cashless exchange”.
• They would then buy 300 shares from the company on your behalf
for $5.00 per share and then sell those 300 shares for $12.00/share
on the market.
• You would then receive $2,100 less commissions from Solium,
which is the $7.00/share difference between the option’s strike price
and the current market price times 300 shares.
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 What if the stock price in the example
was $4.00/share?
- You would wait for the price to go up.
- Your option has a five year life from the date of issue.
- In the example you would have until February 28, 2013
to exercise all 1,000 options.

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 Who is Solium?
- Solium is the administrator of our Stock Option plan?
- All participants should register with Solium as soon as
they receive a grant.
What if I don’t have a broker?
- If you don’t have a broker, Solium will automatically set
you up with RBC Dain. If you have a broker you can
provide that information to Solium when you register.
What if I have questions?
- Contact Steve Kieffer at (303) 640-6500.
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 What are your questions?

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