Sunbeam 2004 Annual Report Download - page 70

Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2004
of (i) a change in control; or (ii) the earlier of our common stock achieving a closing price of $28 (up
from $23.33) or the Company achieving annualized revenues of $800 million. However, if such
restrictions were to lapse during a period when these officers were subject to additional contractual
limitations on the sale of securities, the restrictions on such shares would continue until the expiration
or waiver of such additional contractual limitations. As discussed above, during the fourth quarter of
2003, all such restrictions lapsed which resulted in a restricted stock charge.
During 2002, the Company issued an aggregate of 210,000 shares of restricted stock to two of its
executive officers, under its 1998 Long-Term Equity Incentive Plan, as amended and restated. During
2003, the restricted stock issuances were amended to provide that the restrictions would lapse upon the
same terms as the 2003 restricted stock issuances discussed above. Also, as discussed above, during the
fourth quarter of 2003 all such restrictions lapsed and the Company recorded a restricted stock charge.
During 2004, 2003 and 2002, the Company also issued 70,080 (“2004 Shares”), 7,200 and 5,250
shares, respectively, of restricted stock to certain other officers and employees. The restrictions on
26,750 of the 2004 Shares and the restrictions on all of the shares issued in 2003 and 2002 lapse ratably
over five years of employment with the Company. The restrictions on 43,330 of the 2004 Shares will lapse
upon the latter of either the Company’s stock price achieving a volume weighted average of $64 per
share for ten consecutive business days or November 1, 2008.
The Company issued all of the restricted shares discussed above out of its treasury account.
During 2002, common stock in the aggregate amount of 45,009 shares were issued to certain other
officers of the Company under its 1998 Performance Share Plan. In connection with these stock
issuances, the Company recorded a non-cash compensation expense charge of approximately $0.6
million.
In February 2003, the Company adopted the 2003 Employee Stock Purchase Plan whereby stock of
the Company can be acquired at a 15% discount and no compensation charge is recorded by the
Company. Prior to this, the Company maintained another employee stock purchase plan whereby the
Company matched 20% of each participating employee’s monthly payroll deduction, up to $500. The
Company thereby contributed $0.1 million to the plan in 2002. As of December 31, 2004, there were
approximately 0.4 million shares available for grant under the 2003 Employee Stock Purchase Plan.
12. Lease Commitments
The Company has commitments under operating leases, certain of which extend through 2013.
These commitments total $6.7 million in 2005, $4.8 million in 2006, $2.5 million in 2007, $1.2 million in
2008, $1.0 million in 2009 and $3.7 million thereafter. Total lease expense was $7.4 million, $7.4 million
and $5.1 million in 2004, 2003 and 2002, respectively.
13. Contingencies
The Company is involved in various legal disputes and other legal proceedings that arise from time
to time in the ordinary course of business. In addition, the Environmental Protection Agency has
designated the Company as a potentially responsible party, along with numerous other companies, for
the cleanup of several hazardous waste sites. Based on currently available information, the Company
does not believe that the disposition of any of the legal or environmental disputes the Company is
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