WeightWatchers 2004 Annual Report Download - page 51

The following table sets forth information regarding options granted during the fiscal year ended
January 1, 2005 to the named executive officers under our stock purchase and option plan.
Weight Watchers International Option Grants
For the Fiscal Year Ended January 1, 2005
Individual Grants
Percent of
Total Options
Number of Granted to
Securities Employees in Exercise Grant
Underlying Fiscal Year Ended or Date
Options January 1, Base Price Expiration Present
Name Granted(1) 2005(2) (per share) Date Value(3)
Linda Huett .............. 40,000 4.7% $38.64 January 4, 2009 $ 543,024
Linda Huett .............. 120,000 14.0% $38.52 March 10, 2009 $1,568,136
Ann M. Sardini ............ 20,000 2.3% $38.64 January 4, 2009 $ 271,512
Thilo Semmelbauer ......... 100,000 11.7% $36.71 May 12, 2014 $1,626,980
Melanie Stubbing ........... 10,000 1.2% $38.64 January 4, 2009 $ 135,756
Maurice Kelly ............. 10,000 1.2% $38.64 January 4, 2009 $ 135,756
(1) Options were granted during the fiscal year ended January 1, 2005 under the terms of our option
plan. None of these options were exercised under the plan during the fiscal year ended January 1,
2005. 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 1, 2005.
(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 expected term of 5 to 7 years; (c) dividend
yield of 0%; (d) volatility of 33.3% to 33.4% and (e) a risk free interest rate of 2.72% to 4.41%.
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 2004 Plan and 1999 Plan, we have the ability to grant stock options, restricted stock,
stock appreciation rights and other stock-based awards. Generally, stock options granted under the
1999 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 and 2004 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. No grants have been made
under the 2004 Plan.
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. The following table sets forth certain information regarding
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