Sunbeam 2002 Annual Report Download - page 46

Jarden Corporation
Notes to Consolidated Financial Statements (Continued)
independent directors. During September 2001, 1,140,000 options were granted to participants under this new
plan. These options vested to, and were exercisable by, participants on the earlier of 1) the date the Company’s
closing stock price equaled or exceeded $8.50 per share or 2) the seventh anniversary of the grant date. Because
the options granted under this new plan were still subject to stockholder approval at the time of grant, the
options resulted in a one-time charge of $2.4 million, which was recorded in the fourth quarter of 2001. The
charge represents the difference between the exercise price of the options of $5.48 (the fair value at the date of
grant) and the fair value of the Company’s common stock at the time of stockholder approval on December 18,
2001, which was $7.60. This charge is included in Special Charges (Credits) and Reorganization Expenses on the
Consolidated Statement of Operations. During 2002, the Company also granted stock options to independent
directors under the 2001 Stock Option Plan, as amended. As of December 31, 2002, there were no shares
available for grant under the 2001 Stock Option Plan, as amended.
During 2002 and prior years, the Company also granted stock options to key employees and non-employee
directors under the 1993 Stock Option Plan and the 1993 and 1996 Stock Option Plans for Non-employee
Directors. These plans were discontinued in 2002. The remaining shares available for grant under these two
stock option plans were subsequently canceled at the time the plans were discontinued.
A summary of stock option activity for the years ended December 31, 2002, 2001 and 2000 is as follows:
Shares
Weighted Avg.
Option Price Price Range
Outstanding as of December 31, 1999 .......................... 552,220 $ 9.41 $5.44-$13.97
New options granted ........................................ 161,500 8.27 6.25-11.88
Exercised ................................................. (41,780) 6.19 5.44-9.82
Canceled .................................................. (59,600) 11.77 9.82-13.97
Outstanding as of December 31, 2000 .......................... 612,340 9.14 5.44-13.97
New options granted.. ....................................... 1,332,000 5.53 5.48-7.55
Exercised ................................................. (30,710) 5.44 5.44-5.44
Canceled .................................................. (67,686) 9.81 6.50-13.97
Outstanding as of December 31, 2001 .......................... 1,845,944 6.57 5.48-13.97
New options granted ........................................ 1,174,500 18.76 9.38-27.15
Exercised ................................................. (1,371,749) 6.38 5.48-17.27
Canceled .................................................. (34,700) 15.17 5.48-17.27
Outstanding as of December 31, 2002 .......................... 1,613,995 $15.55 $5.48-$27.15
Exercisable as of December 31, 2000 .......................... 427,300 $ 9.35 $5.44-$13.97
Exercisable as of December 31, 2001 ........................... 485,086 9.19 6.25-13.97
Exercisable as of December 31, 2002 .......................... 328,873 7.54 5.48-13.97
Significant option groups outstanding at December 31, 2002 and related weighted average price and life
information follows: Options outstanding Options exercisable
Exercise Price
Number
outstanding
Weighted average
Exercise price
Weighted average
remaining life (years)
Number
exercisable
Weighted average
exercise price
$5.48-$7.55 ............. 327,174 $ 5.72 8.07 218,049 $ 5.73
9.38-10.75 .............. 109,473 10.13 5.67 72,474 10.45
11.13-13.97 .............. 92,848 11.88 6.95 38,350 12.25
15.15-18.60 ............. 94,000 17.34 9.34 — —
19.35 ................... 957,500 19.35 9.50 — —
20.08-27.15 ............. 33,000 26.14 9.76 — —
1,613,995 328,873
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