The shareholders approved the change at the annual meeting in April 2005. The options issued in September vest over time, but the board can immediately vest them at any time.
Our 2000 Stock Option Plan currently has 400,000 shares authorized for issuance. Of those authorized shares, 85,000 are available for future issue. An important element of the continued success and growth of the Company is the ability to effectively implement our business strategy and adequately compensate and retain our management team to provide them incentives execute that strategy. The Board believes that the current number of shares are not adequate to meet the future compensation goals and objectives of the Company and has approved the authorization of an additional 250,000 shares, subject to shareholder approval, which will increase the total number of shares authorized under the plan to 650,000.
The total number of shares available for award under the plan will be 335,000 shares, which represents approximately 15% of the current shares outstanding. The board will have the discretion to award stock options and common stock to executive officers, employees and board members in any amount, or not at all; and such awards may vest over time, vest based on established performance criteria or vest immediately on the date of award. The board may issue options and stock in any mix as it deems necessary and appropriate to accomplish its compensation goals and objectives. The board may also issue shares of stock in exchange for the currently outstanding stock options in any ratio the board deems appropriate.
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