HR Block 2006 Annual Report Download - page 52

STOCK OPTION GRANT TABLE –
The following table summarizes options to purchase the Company’s Common Stock granted during the fiscal year ended April 30, 2006
to the executive officers named in the Summary Compensation Table (the ‘‘Named Officers’’) above.
Potential Realizable Value
at Assumed Annual Rates
of Stock Price Appreciation
Individual Grants for Option Term(1)
Number of % of Total
Securities Options Granted
Underlying Options to Employees in Exercise Price
Name Granted (#)(2) Fiscal Year ($/Sh)(2) Expiration Date 5% ($) 10% ($)
Mark A. Ernst 260,000 3.76 29.175 6/30/2015 4,770,480 12,089,333
Robert E. Dubrish 140,000 2.02 29.175 6/30/2015 2,568,720 6,509,641
William L. Trubeck 100,000 1.45 29.175 6/30/2015 1,834,800 4,649,744
Steven Tait 100,000 1.45 29.175 6/30/2015 1,834,800 4,649,744
Nicholas J. Spaeth 50,000 .72 29.175 6/30/2015 917,400 2,324,872
NOTES:
(1) The amounts shown as potential realizable values on the options identified in the table are based on arbitrarily assumed annualized rates of appreciation in the price of the
Company’s Common Stock of five percent and ten percent over the term of the options, as set forth in the rules of the Securities and Exchange Commission relating to proxy
disclosure. Actual gains, if any, on stock option exercises are dependent on the future performance of the Common Stock. There can be no assurance that the potential
realizable values reflected in this table will be achieved.
(2) Stock option grants consisted of nonqualified stock options, incentive stock options or a combination of the two types of options. No stock appreciation rights were granted
during fiscal year 2006. Options were granted under the 2003 Long-Term Executive Compensation Plan. The exercise price for each option is the fair market value of a share
of Common Stock on the date of grant. Options granted to the Named Officers become exercisable one year after the date of grant, at which time they are exercisable on a
cumulative basis at a maximum annual rate of one-third of the total number of shares subject to the option. The stock options generally become fully exercisable (a) at any
time after the Named Officer reaches the age of 65, retires, and more than one year has elapsed since the date of grant, or (b) upon a change in control of the Company not
less than six months after the date of grant. The Named Officer must be employed by the Company or one of its subsidiary corporations at the time of exercise, except that
the exercise of the options may take place for limited time periods after the termination of employment in the event of death, retirement, disability or termination without
cause. All options expire ten years after the date of grant.
H&R BLOCK 2006 Proxy Statement
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