Staples 2003 Annual Report Download - page 85

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STAPLES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE J Employee Benefit Plans
Employee Stock Purchase Plan
The amended Employee Stock Purchase Plan authorizes a total of up to 8.4 million shares of common stock to be
sold to participating employees. Participating employees may purchase shares of common stock at 85% of its fair market
value at the beginning or end of an offering period, whichever is lower, through payroll deductions in an amount not to
exceed 10% of an employee’s annual base compensation.
Stock Option Plans
Under Staples’ Equity Incentive Plan, as amended and restated, Staples may use up to 124 million shares of
common stock to grant to management and key employees incentive and nonqualified options and restricted stock,
including Performance Accelerated Restricted Stock (‘‘PARS’’). As of February 27, 1997, Staples’ 1987 Stock Option
Plan (the ‘‘1987 Plan’’) expired, however, unexercised options under this plan remain outstanding. Options have an
exercise price equal to the fair market value of the common stock on the date of grant. Some options outstanding are
exercisable at various percentages of the total shares subject to the option starting one year after the grant, while other
options are exercisable in their entirety three to five years after the grant date. All options expire ten years after the grant
date, subject to earlier termination in the event of employment termination.
Under Staples’ Director Stock Option Plan, as amended and restated, Staples may use up to 3.4 million shares of
common stock to grant options and restricted stock to non-employee directors. The exercise price of options granted is
equal to the fair market value of Staples common stock at the date of grant. Options become exercisable in equal annual
installments over four years and expire ten years from the date of grant, subject to earlier termination in the event the
optionee ceases to serve as a director.
Information with respect to Staples’ stock options granted under the above plans is as follows:
Weighted Average
Number of Exercise Price
Shares Per Share
Outstanding at January 29, 2000 ........................... 42,462,486 $14.83
Granted ........................................... 19,001,393 14.11
Exercised .......................................... (4,762,363) 6.40
Canceled .......................................... (4,930,914) 18.79
Outstanding at February 3, 2001 ........................... 51,770,602 $14.60
Granted ........................................... 10,749,078 13.70
Exercised .......................................... (5,554,743) 6.80
Canceled .......................................... (5,702,358) 17.96
Outstanding at February 2, 2002 ........................... 51,262,579 $15.35
Granted ........................................... 11,038,124 14.76
Exercised .......................................... (7,388,561) 7.63
Canceled .......................................... (3,236,626) 17.32
Outstanding at February 1, 2003 ........................... 51,675,516 $16.20
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