Sunbeam 2004 Annual Report Download - page 69

Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2004
Significant option groups outstanding at December 31, 2004 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
$3.65-$12.40 . . . 431,234 $ 6.94 6.57 254,612 $ 6.15
12.90 ......... 1,312,500 12.90 7.50 618,754 12.90
15.97-19.71 .... 362,497 18.85 8.47 132,819 18.47
21.45-32.10 .... 236,250 27.01 9.00 14,688 24.90
32.85-42.85 .... 391,750 36.01 9.68 ——
2,734,231 1,020,873
In August 2004, the Company’s board of directors (“Board”) approved the granting of an aggregate
of 140,000 restricted shares of the Company’s common stock to three executive officers of the Company.
The restrictions on these shares were to lapse ratably over a three year period commencing January 1,
2005, and would lapse immediately in the event of a change in control.
Following the signing of the AHI transaction (see Note 19), during October 2004, the Board
amended the terms of all of the 140,000 restricted shares of common stock issued in August 2004 to
lapse immediately. Also in conjunction with the AHI transaction, during October 2004, our Board
accelerated the granting of an aggregate amount of 735,000 restricted shares of common stock under
the Company’s 2003 Stock Incentive Plan to two executive officers of the Company that would otherwise
have been granted to these executive officers in 2005-2007 pursuant to such executives’ employment
agreements. The Board approved that the restrictions on these shares lapsed upon issuance. The
Company records non-cash compensation expense for its issued and outstanding restricted stock either
when the restrictions lapse or ratably over time, when the passage of time is the only restriction. As such,
the Company recorded a non-cash compensation expense for all these restricted stock issuances and
restriction lapses of approximately $32.4 million in the fourth quarter of 2004.
In July 2004, the Board approved a grant of 10,000 restricted shares of common stock to
Mr. Jonathan Franklin, who was a consultant to the Company and who is a brother of Mr. Martin
E. Franklin, the Company’s Chairman and Chief Executive Officer. The restrictions on 5,000 of these
shares lapsed immediately and the Company recorded a non-cash compensation charge based on the
fair market value of its common stock on the date of grant. The restrictions on the remaining 5,000 of
these shares lapse ratably over a four year period. Non-cash compensation expense is being recognized
on these shares based on the market value of the Company’s common stock at the time of the lapsing.
All of the shares which still have a restriction remaining will have the restrictions lapse immediately upon
the event of a change in control.
During the fourth quarter of 2003, the Company recorded a non-cash restricted stock charge of
approximately $21.8 million related to the lapsing of restrictions over all the restricted stock issuances to
three of the Company’s executive officers, discussed immediately below.
During 2003, the Company issued an aggregate amount of 562,500 shares of restricted stock to
three of its executive officers, under its 2003 Stock Incentive Plan. During 2003, all of these restricted
stock issuances either provided or were amended to provide that the restrictions lapsed upon the earlier
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