Einstein Bros 2007 Annual Report Download - page 72

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http://www.sec.gov/Archives/edgar/data/949373/000104746908002111/a2183061z10-k.htm[9/11/2014 10:12:02 AM]
James W. Hood Stock Award Agreement
On May 3, 2007, our board of directors adopted the James W. Hood Stock Award Agreement (the "Stock Award Plan"). The Stock Award
Plan provides for the issuance of 22,000 shares of our common stock to Mr. Hood as inducement for accepting employment with us as our Chief
Marketing Officer. The common stock award includes 7,333 shares that have no restrictions, 7,333 shares that become unrestricted on the first
anniversary and 7,334 shares that become unrestricted on the second anniversary of the date of grant, provided that Mr. Hood is continuously
employed by us on those dates. We recognize compensation costs for these awards using a graded vesting attribution method over the requisite
service period. Included in our total stock based compensation expense of $1.7 million for the year to date period ended January 1, 2008 was
$271,000 related to this agreement.
Stock Option Activity
Transactions for the 1994 Plan, Directors' Option Plan, the 2003 Plan, the 2004 Directors' Plan and the Stock Award Plan during fiscal 2005,
2006, and 2007 were as follows:
Number of Options
Weighted Average
Exercise Price
2005
2006
2007
2005
2006
2007
Outstanding, beginning of year 803,341 997,152 993,707 $ 3.95 $ 3.31 $ 3.79
Granted 606,308 202,500 554,314 2.62 5.24 13.24
Exercised — (48,485) (260,392) — 2.88 3.91
Forfeited (412,497) (157,460) (179,268) 3.52 2.98 6.48
Outstanding, ending of year 997,152 993,707 1,108,361 $ 3.31 $ 3.79 $ 8.06
Exercisable and vested, end of year 353,237 623,662 637,993 $ 3.82 $ 3.69 $ 4.57
86
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
15. STOCK OPTION AND WARRANT PLANS (Continued)
The aggregate intrinsic value of options exercised during 2006 and 2007 was $253,000 and $3.4 million. There were no options exercised
during 2005.
Number of
Options
Weighted
Average
Grant Date
Fair Value
Non-vested shares, January 2, 2007 370,045 $ 2.81
Granted 554,314 5.39
Vested (274,723) 4.17
Forfeited (179,268) 3.48
Non-vested shares, January 1, 2008 470,368 $ 4.80
The weighted average fair value of options granted during the years ended January 3, 2006 and January 2, 2007 was $1.85 and $3.72,
respectively.
As of January 1, 2008, the weighted-average remaining life of outstanding and exercisable options was 7.19 years and 6.08 years, respectively,
and the aggregate intrinsic value of outstanding and exercisable options was $11.2 million and $8.7 million, respectively. The following table