Panera Bread 2004 Annual Report Download - page 53

The plan authorized a one-time grant of an option to purchase 20,000 shares of the Company’s Class A Common Stock at its closing
price on January 26, 1994 for each independent director. Each independent director who is first elected as such after the effective date
of the Directors’ Plan shall receive, as of the date he or she is so elected, a one-time grant of an option to purchase 10,000 shares of
Class A Common Stock at a price per share equal to the closing price of the Class A Common Stock as reported by the
NASDAQ/National Market System for the trading day immediately preceding the date of the person’s election to the board. In
addition, annually all independent directors serving in such capacity as of the last day of each fiscal year receive an option to purchase
up to 10,000 shares of Class A Common Stock at the closing price for the day prior to the close of the fiscal year. Each option granted
to the independent directors is fully vested at the grant date, and is exercisable, either in whole or in part, for 6 years following the
grant date.
2001 Employee, Director, and Consultant Stock Option Plan
At the annual meeting of stockholders on June 12, 2001, the Company’s 2001 Employee, Director, and Consultant Stock Option
Plan was approved. Under the Company’s 2001 Employee, Director, and Consultant Stock Option Plan, a total of 2,000,000 shares of
Class A Common Stock were authorized for issuance.
Activity under all Stock Option Plans is summarized below:
Options
Weighted
Average
Exercise Price
Outstanding at December 29, 2001 ............................................................................................................... 2,864,506 $ 6.65
Granted ........................................................................................................................................................ 978,150 30.12
Exercised ..................................................................................................................................................... (781,942) 3.87
Cancelled ..................................................................................................................................................... (142,442) 9.67
Outstanding at December 28, 2002 ............................................................................................................... 2,918,272 15.10
Granted ........................................................................................................................................................ 1,173,181 35.61
Exercised ..................................................................................................................................................... (693,498) 6.07
Cancelled ..................................................................................................................................................... (317,000) 18.67
Outstanding at December 27, 2003 ............................................................................................................... 3,080,955 24.57
Granted ........................................................................................................................................................ 701,500 36.18
Exercised ..................................................................................................................................................... (404,804) 8.82
Cancelled ..................................................................................................................................................... (332,849) 31.02
Outstanding at December 27, 2004 ............................................................................................................... 3,044,802 $ 28.72
The following table summarizes information concerning outstanding and exercisable options at December 25, 2004:
Options Outstanding Options Exercisable
Range of Exercise Price
Number
Outstanding
Weighted Average
Remaining
Contractual Life
Weighted
Average
Exercise Price
Number
Exercisable
Weighted
Average
Exercise Price
$ 3.00 - 10.05......................................................................................... 407,108 3.11 $ 3.83 362,036 $ 3.68
$10.06 - 19.27......................................................................................... 198,812 3.41 15.88 69,312 14.16
$19.28 - 29.30......................................................................................... 905,581 4.65 27.99 262,275 27.70
$29.31 - 39.73......................................................................................... 1,274,400 5.15 36.26 310,100 36.60
$39.74 - 43.15......................................................................................... 258,901 4.65 43.15 — —
3,044,802 4.57 $ 28.72 1,003,723 $ 20.85
Options vest over a five-year period and must be exercised within six to ten years from the date of the grant. Of the options at
December 25, 2004, December 27, 2003, and December 28, 2002, 1,003,723, 897,481 and 1,105,906, respectively, were vested and
exercisable with a weighted average exercise price at December 25, 2004, December 27, 2003, and December 28, 2002, of $20.85,
$13.15 and $6.48, respectively.
1992 Employee Stock Purchase Plan
In May 1992, the Company adopted its 1992 Employee Stock Purchase Plan (“1992 Purchase Plan”) to replace its previous
Employee Stock Purchase Plan. The 1992 Purchase Plan was subsequently amended by the Board of Directors and stockholders to
increase the number of shares of Class A Common Stock reserved for issuance from 300,000 to 700,000. The 1992 Purchase Plan
gives eligible employees the option to purchase Class A Common Stock (total purchases in a year may not exceed 10% of an
employee’s current year compensation) at 85% of the fair market value of the Class A Common Stock at the end of each calendar
47