Sunbeam 2003 Annual Report Download - page 58

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Jarden Corporation
Notes to Consolidated Financial Statements (continued)
12. Equity and Stock Plans
On September 30, 2003, the Company completed a public offering (“Offering”) of approximately
4.8 million of its common stock at $24.67 per share. Proceeds from the Offering, net of underwriting
fees and related expenses, totaled approximately $112.3 million. The Company currently intends to use
the net proceeds for working capital and general corporate purposes, including, but not limited to,
potential future acquisitions and debt repayment. The Company’s Amended Credit Agreement does not
require the Company to prepay debt with any of the net proceeds received from the Offering.
The Company maintains the 2003 Stock Incentive Plan, which allows for grants of stock options,
restricted stock and stock bonuses. As of December 31, 2003, there were approximately 1.9 million
shares available for grant under this long-term equity incentive plan.
Effective September 24, 2001, the Company established the 2001 Stock Option Plan, as amended,
primarily for the purpose of granting options for the purchase of common shares to the Company’s
executive officers and independent directors. During September 2001, approximately 1.7 million
options were granted to participants under this new plan. These options vested to, and were exercisable
by, participants on the earlier of 1) the date the Company’s closing stock price equaled or exceeded
$5.67 per share or 2) the seventh anniversary of the grant date. Because the options granted under this
new plan were still subject to stockholder approval at the time of grant, the options resulted in a one-
time charge of $2.4 million, which was recorded in the fourth quarter of 2001. The charge represents
the difference between the exercise price of the options of $3.65 (the fair value at the date of grant) and
the fair value of the Company’s common stock at the time of stockholder approval on December 18,
2001, which was $5.07. This charge is included in Special Charges and Reorganization Expenses on the
Consolidated Statement of Operations. During 2002, the Company also granted stock options to
independent directors under the 2001 Stock Option Plan, as amended. As of December 31, 2003, there
were no shares available for grant under the 2001 Stock Option Plan, as amended.
During 2002 and prior years, the Company also granted stock options to key employees and non-
employee directors under the 1998 Long-Term Equity Incentive Plan, the 1993 Stock Option Plan and
the 1993 and 1996 Stock Option Plans for Non-employee Directors. There are no remaining shares
available for grant under any of these plans.
page 56