WeightWatchers 2004 Annual Report Download - page 52

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options granted during the year ended January 1, 2005 to the named executive officers under the
WeightWatchers.com Stock Incentive Plan:
WeightWatchers.com Option Grants
For the Fiscal Year Ended January 1, 2005
Individual Grants
Percent of
Number of Total Options
Securities Granted to Grant
Underlying Employees in Exercise or Date
Options Fiscal Year Ended Base Price Expiration Present
Name Granted(1) January 1, 2005(2) (Per Share) Date Value(3)
Ann M. Sardini ............... 11,385 50.0% $7.14 July 22, 2014 $53,521
(1) Options were granted during the fiscal year ended January 1, 2005 under the terms of the option
plan. None of these options was 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 date 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 option equals the fair market value of
the underlying stock on the date of grant; (b) an expected term of 7 years; (c) dividend yield of
0%; (d) volatility of 64% and (e) a risk free interest rate of 4.1%. The ultimate value, if any, an
optionee will realize upon exercise of an option will depend on the excess of the market value of
the common stock over the exercise price of the option.
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
WeightWatchers.com common stock. Generally, stock options under the plan vest in annual increments
over five years upon our achievement of certain performance targets. These options are not exercisable
until the earlier to occur of (1) six months after the tenth anniversary of the date the option was
granted and (2) a public offering of WeightWatchers.com common stock or a private sale of the stock
in which an employee holding stock is entitled to participate under the terms of the sale participation
agreement entered into with Artal Luxembourg.
The following tables set forth the number and value of securities underlying unexercised options
held by each of our executive officers listed on the Summary Compensation Table above as of
44