Under the LTIP, stock options have been granted with exercise prices equal to JPMorgan Chase's common stock price on the grant date. Generally, options cannot be exercised until at least one year after the grant date and become exercisable over various periods as determined at the time of the grant.
Options generally expire ten years after the grant date.
The recipient of a share of restricted stock is entitled to voting rights and dividends on the common stock. None of the 1999 forfeitable awards have vested as the target price has not been achieved. Half of the 1998 forfeitable awards vested in 1998 as a result of the target price having been achieved. For the remaining half of the 1998 forfeitable awards, the target price was achieved in 1999, but the awards are still subject to a minimum vesting period. In general, as a result of changes in control provisions in the SIP and SBP, most of the employee stock awards granted by J.P. Morgan in 2000 and in the prior-years became fully vested and paid.