RKT » Topics » Stock Options.

This excerpt taken from the RKT 10-Q filed May 1, 2009.

Stock Options

During the second quarter of fiscal 2009, we granted options to purchase 252,800 shares of stock to certain employees. These options vest over three years. These grants were valued at $9.76 per share using the Black-Scholes option pricing model. The significant assumptions used were: an expected term of 4.90 years, an expected volatility of 46.39%, expected dividends of 1.37% and a risk free rate of 1.54%. We amortize these costs using the accelerated attribution method.

The aggregate intrinsic value of options exercised during the three months ended March 31, 2009 and 2008 was $2.7 million and $1.3 million, respectively, and during the six months ended March 31, 2009 and 2008 it was $2.8 million and $1.3 million, respectively.

The table below summarizes the changes in all stock options during the six months ended March 31, 2009:

 

     Shares     Weighted
Average
Exercise
Price
   Weighted
Average
Remaining
Contractual
Term
   Aggregate
Intrinsic
Value
(in millions)

Outstanding at September 30, 2008

   1,285,035     $ 22.09      

Granted

   252,800       26.43      

Exercised

   (173,400 )     11.29      

Expired

   (13,478 )     33.70      

Forfeited

   (17,555 )     31.79      
                  

Outstanding at March 31, 2009

   1,333,402     $ 24.07    7.1 years    $ 6.9
                  

Exercisable at March 31, 2009

   695,321     $ 18.79    5.2 years    $ 6.6
                  
This excerpt taken from the RKT 8-K filed Feb 3, 2005.
Stock Options. Stock options granted under the 2004 Incentive Stock Plan may be options that are intended to qualify as “incentive stock options” within the meaning of Section 422 of the Code or “nonqualified stock options” that are not intended to so qualify. The price per share of stock purchasable under any stock option will be determined by the compensation and options committee, but may not be less than 100% of the fair market value of the stock on the date of the grant of the option (or 110% of the fair market value in the case of incentive stock options granted to employees holding 10% or more of our voting stock). The compensation and options committee will fix the term of each option. Options will be exercisable at such time or times as determined by the compensation and options committee, but no option may be exercised more than ten years from the date the option is granted (or five years from the date of grant in the case of incentive stock options granted to employees holding 10% or more of our voting stock).

      Each stock option granted will be evidenced by an option certificate that will specify the terms and conditions of the grant, which may include continuous employment of an employee during a specified period (which ordinarily will be no less than one year) or the achievement of performance objectives necessary for the stock option to become exercisable.

      Upon the exercise of a stock option, the option exercise price must be fully paid in cash, by check or in shares of our Common Stock held for at least six months, or a combination thereof. The compensation and options committee also may provide for an option to be exercised, in whole or part, through a cashless exercise procedure facilitated through a sale of stock in the open market effected by an unrelated broker. If an option recipient ceases to be an employee, or ceases to be a director, his or her option will be exercisable in accordance with the terms of the applicable option certificate.

     

EXCERPTS ON THIS PAGE:

10-Q
May 1, 2009
8-K
Feb 3, 2005
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