ing period or the fair market value at the purchase date. The Company has made 300,000 shares of common stock available for sale under the ESPP and had issued 26,377 shares as of December 31, 2000. The Company has two stock option plans for employees and directors. The Amended 1995 Stock Incentive Plan provides for the grant of incentive options at an exercise price, which is 100 percent of the fair value of the Company’s stock on the date of grant. The 1995 Stock Option Plan for Nonemployee Directors provides for the grant of nonqualified options at an exercise price, which is not less than 100 per- cent of the fair value on the grant date. The plans provide that options become exercisable according to vesting schedules, which range from immediate for nonemployee directors to ratably over a 60-month period for all other options. Options terminate 10 years from the date of grant. There were 1,060,406, 780,375 and 784,594 shares of common stock reserved for issuance under the Company’s stock com- pensation plans at December 31, 2000, 1999 and 1998 respectively. A summary of status of the Company’s stock options as of December 31, 2000, 1999 and 1998 and changes during the year ended on those dates is presented below: Stock Option Plans The following table summarizes information about stock options outstanding at December 31, 2000: Options Outstanding Options Exercisable Range of Weighted Weighted Weighted Exercise Prices Number of Average Remaining Average Exercise Number of Average Exercise Per Share Options Contractual Life (years) Price Per Share Options Price Per Share $1.00 47,787 2.58 $ 1.00 47,787 $ 1.00 $4.78 130,085 4.47 4.78 130,085 4.78 $11.50 – $13.56 190,251 9.07 13.48 39,216 13.17 $14.56 – $17.13 183,166 7.96 14.89 82,349 15.06 $18.75 – $22.88 250,731 6.56 19.77 174,467 19.66 802,020 473,904 The following are the options exercisable at the corresponding weighted average exercise price at December 31, 2000, 1999 and 1998, respectively: 473,904 at $12.36, 373,259 at $10.78 and 266,206 at $9.05. SFAS 123, “Accounting for Stock-Based Compensation” was issued by the FASB in 1995 and, if fully adopted, changes the methods for the recognition of cost related to stock compensation plans. Adoption of the accounting requirements of SFAS 123 is optional. As a result, the Company continues to apply Accounting Principles Board Opinion No. 25 and related interpretations in accounting for its stock compensation plans. However, in accordance with SFAS 123, pro forma disclosures as if the Company adopted the cost recognition requirements under SFAS 123 are presented below. The fair value of options granted in 2000, 1999 and 1998 was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2000 1999 1998 Risk-free interest rate 6.69% 4.91% – 5.44% 5.55% – 5.64% Expected dividend yield 0% 0% 0% Expected volatility 32.38% 30.73% 29.31% Expected lives five years five years five years Northwest Pipe Company | 22 Exercise Price Options Weighted Average Outstanding Exercise Price Balance, December 31, 1997 413,894 $ 9.48 Options granted 109,613 21.15 Options exercised (36,334) 1.25 Options canceled (3,039) 20.00 Balance, December 31, 1998 484,134 12.67 Options granted 176,573 14.74 Options exercised (4,219) 3.24 Options canceled (5,697) 16.02 Balance, December 31, 1999 650,791 13.27 Options granted 178,251 13.56 Options exercised (19,969) 0.98 Options canceled (7,053) 16.28 Balance, December 31, 2000 802,020 $ 13.61