Staples 2004 Annual Report Download - page 113

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STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
NOTE I Employee Benefit Plans (Continued)
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 Award Plans
The 2004 Stock Incentive Plan (the ‘‘2004 Plan’’) was implemented in July 2004 and replaces the amended and
restated 1992 Equity Incentive Plan (the ‘‘1992 Plan’’) and the amended and restated 1990 Director Stock Option Plan
(the ‘‘1990 Plan’’). Unexercised options under both the 1992 Plan and the 1990 Plan remain outstanding. Under the 2004
Plan, Staples may issue up to 23 million shares of common stock to management and employees using various forms of
awards, including nonqualified options and restricted stock, subject to certain restrictions. As of February 27, 1997,
Staples’ 1987 Stock Option Plan (the ‘‘1987 Plan’’) expired; however, unexercised options under this plan remain
outstanding. Options outstanding under these plans 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.
Stock Options
Information with respect to stock options granted under the above plans is as follows:
Weighted Average
Number of Exercise Price
Shares Per Share
Outstanding at February 2, 2002 ........................... 51,262,579 $15.35
Granted .......................................... 9,968,929 14.76
Exercised ......................................... (6,319,366) 7.63
Canceled .......................................... (3,236,626) 17.32
Outstanding at February 1, 2003 ........................... 51,675,516 $16.20
Granted .......................................... 9,883,290 15.86
Exercised ......................................... (9,276,692) 10.86
Canceled .......................................... (2,319,537) 17.90
Outstanding at January 31, 2004 ........................... 49,962,577 $17.23
Granted .......................................... 10,369,068 28.64
Exercised ......................................... (12,642,517) 14.73
Canceled .......................................... (1,763,403) 19.39
Outstanding at January 29, 2005 ........................... 45,925,725 $20.41
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