Graco 2005 Annual Report Download - page 64

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The Company may redeem the Rights at $0.001 per Right prior to the occurrence of an event that
causes the Rights to become exercisable for common stock.
FOOTNOTE 16
Stock Options and Restricted Stock Awards
The Company's Amended and Restated 1993 Stock Option Plan expired on December 31, 2002. For
options previously granted under that plan, the option exercise price equaled the common stock's closing
price on the date of grant; options vest over a Ñve-year period and expire ten years from the date of grant.
In 2003, a new plan was approved by the Company stockholders (""2003 Plan''). The 2003 Plan provides
for grants of up to an aggregate of 15.0 million stock options, stock awards and performance shares
(except that no more than 3.0 million of those grants may be stock awards and performance shares).
Under the 2003 Plan, the option exercise price equals the common stock's closing price on the date of
grant. Options will vest over Ñve years (which may be shortened to no less than three years) and expire
ten years from the date of grant. Also under the 2003 Plan, none of the restrictions on stock awards will
lapse earlier than the third anniversary of the date of grant.
The following summarizes the changes in the number of shares of common stock under option,
including options to acquire common stock resulting from the conversion of options under pre-merger
Rubbermaid option plans (in millions, except exercise prices):
Weighted
Average Fair
Weighted Value of
Weighted Exercisable Average Options
Average at End Exercise Granted During
Shares Exercise Price of Year Price the Year
Outstanding at December 31, 2002 ÏÏÏ 11.4 $30 3.4 $32
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.8 28 $8
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.3) 25
Canceled/expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1.6) 31
Outstanding at December 31, 2003 ÏÏÏ 12.3 30 4.4 $31
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.0 23 $7
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (0.1) 22
Canceled/expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3.7) 30
Outstanding at December 31, 2004 ÏÏÏ 11.5 28 5.0 $30
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.2 23 $6
Exercised ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 23
Canceled/expired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1.5) 29
Outstanding at December 31, 2005 ÏÏÏ 13.2 $27 5.8 $29
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