Supercuts 2012 Annual Report Download - page 134

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. SHAREHOLDERS' EQUITY (Continued)
grant. The stock options and SARs have a maximum term of ten years. The RSUs granted prior to fiscal year 2012 cliff vest after five years and
payment of the RSUs is deferred until January 31 of the year following vesting.
During the fiscal year ended 2012, the Company granted 55,000 shares of restricted stock awards and 42,316 restricted stock units. Of the
55,000 restricted stock awards, 20,000 shares vest at a rate of 20.0 percent annually on the first five anniversaries of the date of grant with the
remaining 35,000 shares cliff vest two years after the grant date. The grant of the 42,316 restricted stock units occurred in the last month of the
fiscal year, with retroactive vesting on a monthly basis, generally from the Company's 2011 annual shareholder meeting date. As such, at the
date of grant there were 25,704 vested restricted stock units. The distribution of the vested restricted stock units is deferred until separation of
service from the Company.
Unvested awards are subject to forfeiture in the event of termination of employment.
The Company also has outstanding stock options under the 2000 Stock Option Plan (2000 Plan), although the plan terminated in 2010,
which allowed the Company to grant both incentive and nonqualified stock options and replaced the Company's 1991 Stock Option Plan (1991
Plan). Total options covering 3,500,000 shares of common stock were available for grant under the 2000 Plan to employees of the Company for
a term not to exceed ten years from the date of grant. The term may not exceed five years for incentive stock options granted to employees of
the Company possessing more than ten percent of the total combined voting power of all classes of stock of the Company or any subsidiary of
the Company. Options may also be granted to the Company's outside directors for a term not to exceed ten years from the grant date. The 2000
Plan contains restrictions on transferability, time of exercise, exercise price and on disposition of any shares acquired through exercise of the
options. Stock options were granted at not less than fair market value on the date of grant. The Board of Directors determines the 2000 Plan
participants and establishes the terms and conditions of each option.
The terms and conditions of the shares granted under the 1991 Plan are similar to the 2000 Plan. The 1991 Plan terminated in 2001. All
shares granted under the 1991 Plan have been exercised, forfeited, or cancelled as of June 30, 2011.
Common shares available for grant under the following plans as of June 30 were:
131
2012 2011 2010
(Shares in thousands)
2000 Plan
—
—
4
2004 Plan
4,838
4,209
12
4,838
4,209
16