Einstein Bros 2005 Annual Report Download - page 47

http://www.sec.gov/Archives/edgar/data/949373/000110465906016136/a06-3178_110k.htm[9/11/2014 10:13:03 AM]
January 3, 2006, options to purchase 1,328 shares of common stock at a weighted average exercise price of $49.08 per share and a weighted
average remaining contractual life of 3.15 years remained outstanding under this plan.
2003 Executive Employee Incentive Plan
On November 21, 2003, our board of directors adopted the Executive Employee Incentive Plan, amended on December 19, 2003 (2003 Plan).
The 2003 Plan provides for granting incentive stock options to employees and granting non-statutory stock options to employees and consultants.
Unless terminated sooner, the 2003 Plan will terminate automatically in December 2013. The board of directors has the authority to amend, modify
or terminate the 2003 Plan, subject to any required approval by our stockholders under applicable law or upon advice of counsel. No such action
may affect any options previously granted under the 2003 Plan without the consent of the holders. There are 1,150,000 shares issuable pursuant to
options granted under the 2003 Plan. Options typically vest in part based upon the passage of time and, in part, upon our financial performance.
Options that do not vest due to the failure to achieve specific financial performance criteria are forfeited. Options to purchase approximately
424,208 shares of our common stock, which are not yet exercisable, are subject to company performance and are treated as variable options. We
expect that all of the non-vested awards at January 3, 2006 will eventually vest based on company performance. As of January 3, 2006, there were
260,001 shares reserved for future issuance under the 2003 Plan.
2004 Stock Option Plan for Independent Directors
On December 19, 2003, our board of directors adopted the Stock Option Plan for Independent Directors, effective January 1, 2004, (2004
Directors’ Plan). Our board of directors may amend, suspend, or terminate the 2004 Directors’ Plan at any time, provided, however, that no such
action may adversely affect any outstanding option without the option holders consent. A total of 200,000 shares of common stock have been
reserved for issuance under the 2004 Directors’ Plan. The 2004 Directors’ Plan provides for the automatic grant of non-statutory stock options to
independent directors on January 1 of each year and a prorated grant of options for any director elected during the year. Options become
exercisable six months after the grant date and are exercisable for 5 years from the date of grant unless earlier terminated. As of January 3, 2006,
there were 94,192 shares reserved for future issuance under the 2004 Directors’ Plan.
Option Activity
Transactions during fiscal 2005, 2004 and 2003 were as follows:
Number of Options Weighted Average Exercise Price
2005 2004 2003 2005 2004 2003
Outstanding, beginning of year
803,341 878,345 86,647 $ 3.95 $ 4.12 $ 17.46
Granted 606,308 45,000 877,495 2.62 3.25 4.05
Exercised — — — — — —
Forfeited (412,497) (120,004) (85,797) 3.52 3.00 16.89
Outstanding, end of year
997,152 803,341 878,345 $ 3.31 $ 3.95 $ 4.12
Exercisable, end of year
353,237 32,341 2,345 $ 3.82 $ 5.92 $ 33.99
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NEW WORLD RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
The following table summarizes information about stock options outstanding at January 3, 2006:
Options Outstanding Options Exercisable
Range of Exercise Prices
Number of
Options
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Life (Years)
Number of
Options
Weighted
Average
Exercise
Price
$2.25 – $4.00 903,307 $ 3.12 8.28 351,892 $ 3.64
$4.01 – $10.00 93,330 4.59 7.19 830 14.57
$100.00 – $241.00 515 110.04 3.82 515 110.04
997,152 $ 3.31 8.18 353,237 $ 3.82
Warrants