WeightWatchers 2003 Annual Report Download - page 43

The following table sets forth information regarding options granted during the fiscal year ended
January 3, 2004 to the named executive officers under our stock purchase and option plan.
Option Grants
For the Fiscal Year Ended January 3, 2004
Individual Grants
Number of Percent of Total
Securities Options Granted
Underlying to Employees in Exercise or Grant Date
Options Fiscal Year Ended Base Price Present
Name Granted(1) January 3, 2004(2) (per share) Expiration Date Value(3)
Linda Huett .............. 40,000 7% $42.27 January 13, 2008 $638,444
Ann M. Sardini ............ 20,000 4% $42.27 January 13, 2008 $319,222
Richard McSorley .......... 20,000 4% $42.27 January 13, 2008 $319,222
Clive Brothers ............ 20,000 4% $42.27 January 13, 2008 $319,222
Robert Hollweg ........... 10,000 2% $42.27 January 13, 2008 $159,611
Scott R. Penn ............. 10,000 2% $42.27 January 13, 2008 $159,611
(1) Options were granted during the fiscal year ended January 3, 2004 under the terms of our option
plan. None of these options were exercised under the plan during the fiscal year ended January 3,
2004. Options are exercisable based on vesting provisions outlined in the option agreement.
(2) Percentages of total options granted are based on total grants made to all employees during the
fiscal year ended January 3, 2004.
(3) The estimated grant dates present value is determined using the Black-Scholes model. The
adjustments and assumptions incorporated in the Black-Scholes model in estimating the value of
the grants include the following: (a) the exercise price of the options equals the fair market value
of the underlying stock on the date of grant; (b) an option term of 5.0 years; (c) dividend yield of
0% and volatility of 37.4% and (d) a risk free interest rate of 3.2%. The ultimate value, if any, an
optionee will realize upon exercise of an option will depend on the excess of the market value of
our common stock over the exercise price of the option.
Under our 1999 Stock Purchase and Option Plan, we have the ability to grant stock options,
restricted stock, stock appreciation rights and other stock-based awards. Generally, stock options
granted under this plan vest and become exercisable in annual increments over five years with respect
to one-third of options granted, and the remaining two-thirds of the options vest on the ninth
anniversary of the date the options were granted, subject to accelerated vesting upon our achievement
of certain performance targets. For each year prior to and including 2003, these performance targets
have been met. All new options granted in 2003 under this plan vest and become exercisable in annual
increments over one to five years and are not subject to performance targets. In any event, the options
become fully vested upon the occurrence of a change in control of our company.
In April 2000, our Board of Directors adopted the WeightWatchers.com Stock Incentive Plan
pursuant to which selected employees were granted options to purchase shares of WeightWatchers.com
common stock. The number of shares available for grant under this plan is 400,000 shares of authorized
common stock of WeightWatchers.com. No options were granted during the fiscal year ended
January 3, 2004 to the named executive officers under the WeightWatchers.com Stock Incentive Plan.
Under our WeightWatchers.com Stock Incentive Plan, we have the ability to grant stock options,
restricted stock, stock appreciation rights and other stock-based awards on shares of
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