Build-A-Bear Workshop 2009 Annual Report Download - page 63

BUILD-A-BEAR WORKSHOP, INC. 2009 FORM 10-K
Notes to Consolidated Financial Statements (continued)
(12) STOCK INCENTIVE PLANS
On April 3, 2000, the Company adopted the 2000 Stock
Option Plan (the Plan). In 2003, the Company adopted the
Build-A-Bear Workshop, Inc. 2002 Stock Incentive Plan, in
2004, the Company adopted the Build-A-Bear Workshop, Inc.
2004 Stock Incentive Plan and in 2009, the Company
amended and restated the Build-A-Bear Workshop, Inc. 2004
Stock Incentive Plan (collectively, the Plans).
Under the Plans, as amended, from January 3, 2009, up
to 3,230,000 shares of common stock were reserved and
may be granted to employees and nonemployees of the
Company. The Plan allows for the grant of incentive stock
options, nonqualified stock options, stock appreciation rights
(SAR) and restricted stock. Options granted under the Plan
expire no later than 10 years from the date of the grant. The
exercise price of each incentive stock option shall not be less
than 100% of the fair value of the stock subject to the option
on the date the option is granted. The exercise price of all
options shall be the fair market value on the date of the grant.
The vesting provision of individual options is at the discretion
of the compensation committee of the board of directors and
generally ranges from one to four years. Each share of stock
awarded pursuant to an option or subject to the exercised
portion of a SAR reduces the number of shares available by
one share. Each share of stock awarded pursuant to any other
stock-based awards, including restricted stock grants, reduces
the number of shares available by 1.27 shares.
(a) Stock Options
The following table is a summary of the balance and activity for the Plans related to stock options for the periods presented:
Number of
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
(in thousands)
Outstanding, December 30, 2006 529,200 $16.10
Exercised 74,442 7.48
Forfeited 33,877 33.07
Outstanding, December 29, 2007 420,881 16.25
Exercised ——
Forfeited 66,109 17.72
Outstanding, January 3, 2009 354,772 15.98
Granted 480,967 5.04
Exercised ——
Forfeited 30,392 14.25
Outstanding, January 2, 2010 805,347 $ 9.51 6.8 $137
Options Exercisable As Of:
January 2, 2010 340,524 $15.62 3.5 $115
The expense recorded related to options granted during
fiscal 2009 was determined using the Black-Scholes option
pricing model and the provisions of Staff Accounting Bulletin
(SAB) 107 and 110, which allow the use of a simplified
method to estimate the expected term of “plain vanilla”
options. The assumptions used in the option pricing model
during fiscal 2009 were: (a) dividend yield of 0%;
(b) volatility of 65%; (c) risk-free interest rates ranging from
2.3% to 3.1%; and (d) an expected life of 6.25 years. There
were no new stock options granted in fiscal 2008 or 2007.
The grant date fair value of options granted in 2009 was
approximately $1.5 million.
No options were exercised in 2009 or 2008. The total
intrinsic value of options exercised in fiscal 2007 was
approximately $1.4 million. The Company generally issues
new shares to satisfy option exercises.
Shares available for future option, non-vested stock and
restricted stock grants were 2,726,913 and 1,039,511 at the
end of 2009 and 2008, respectively.
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