Rayovac 2004 Annual Report Download - page 85

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RAYOVAC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Company recognized the forfeiture of approximately 28 restricted shares of stock. The total market value on the
date of grant for the forfeited shares was approximately $347 which was recorded as an adjustment to unearned
compensation. Approximately 101 of these shares vested on September 30, 2004, 243 shares vest on September
30, 2005, and 21 shares vest on September 30, 2006, if the recipient is still employed by the Company. Unearned
compensation is being amortized to expense over the appropriate vesting period.
On August 16, 2002, the Company granted approximately 24 shares of restricted stock to a certain member
of management. These shares vested on September 30, 2003, as the recipient was still employed with the
Company. The total market value of the restricted shares on the date of grant was approximately $313 which was
recorded as unearned compensation as a separate component of shareholders’ equity. Unearned compensation
was amortized over the 13-month vesting period.
On October 1, 2000, the Company granted approximately 277 shares of restricted stock to certain members
of management. The total market value of the restricted shares on date of grant was approximately $4,746 which
was recorded as unearned compensation as a separate component of shareholders’ equity. Approximately 186 of
these shares vested on September 30, 2003 as the recipients were still employed by the Company. Unearned
compensation was amortized to expense over the three-year vesting period. As of September 30, 2003, all share
restrictions for the October 1, 2000 grant were amortized. During 2002, the Company recognized the forfeiture of
approximately 24 restricted shares of stock. The total market value on the date of grant for the forfeited shares
was approximately $413 which was recorded as an adjustment to unearned compensation.
(8) Stock Option Plans
In 1996, the Company’s Board of Directors (“Board”) approved the Rayovac Corporation 1996 Stock Option
Plan (“1996 Plan”). Under the 1996 Plan, stock options to acquire up to 2,318 shares of common stock, in the
aggregate, may be granted to select employees and directors of the Company under either or both a time-vesting
or a performance-vesting formula at an exercise price equal to the market price of the common stock on the date
of grant. The time-vesting options become exercisable primarily in equal 20% increments over a five-year
period. The performance-vesting options become exercisable at the end of ten years with accelerated vesting over
each of the first five years if the Company achieves certain performance goals. Accelerated vesting may occur
upon sale of the Company, as defined in the 1996 Plan. As of September 30, 2004, there were options with
respect to 712 shares of common stock outstanding under the 1996 Plan.
In 1997, the Board adopted the 1997 Rayovac Incentive Plan (“1997 Plan”). The Incentive Plan replaces the
1996 Plan and no further awards will be granted under the 1996 Plan other than awards of options for shares up
to an amount equal to the number of shares covered by options that terminate or expire prior to being exercised.
Under the 1997 Plan, the Company may grant to employees and non-employee directors stock options, stock
appreciation rights (“SARs”), restricted stock, and other stock-based awards, as well as cash-based annual and
long-term incentive awards. Accelerated vesting will occur in the event of a change in control, as defined in the
1997 Plan. Up to 5,000 shares of Common stock may be issued under the 1997 Plan. The 1997 Plan expires in
August 2007. As of September 30, 2004, there were options with respect to 2,588 shares of common stock
outstanding under the 1997 Plan.
In 2004, the Board adopted the 2004 Rayovac Incentive Plan (“2004 Plan”). The 2004 Plan supplements the
1997 Plan. Under the 2004 Plan, the Company may grant to employees and non-employee directors stock
options, stock appreciation rights, restricted stock, and other stock-based awards, as well as cash-based annual
and long-term incentive awards. Accelerated vesting will occur in the event of a change in control, as defined in
the 2004 Plan. Up to 3,500 shares of common stock may be issued under the 2004 Plan, none of which had been
granted as of September 30, 2004. The 2004 Plan expires in July 31, 2014.
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