Supercuts 2007 Annual Report Download - page 105

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
All options granted relate to stock option plans that have been approved by the shareholders of the Company.
See Note 1 to the Consolidated Financial Statements for discussion of the Company’
s measure of compensation cost for its incentive stock
option plans, as well as pro forma information.
2004 Long Term Incentive Plan:
In May of 2004, the Company’s Board of Directors approved the 2004 Long Term Incentive Plan (2004 Plan). The 2004 Plan received
shareholder approval at the annual shareholders’ meeting held on October 28, 2004. The 2004 Plan provides for the granting of stock options,
equity-based stock appreciation rights (SARs) and restricted stock, as well as cash-based performance grants, to employees and directors of the
Company. On March 8, 2007, the Company’s Board of Directors approved an amendment to the 2004 Plan to permit the granting and issuance
of restricted stock units (RSUs). Following the amendment, the Company’s Chief Executive Officer and Chief Financial Officer were granted
165,000 and 50,000 restricted stock units, respectively, during the twelve months ended June 30, 2007. The 2004 Plan expires on May 26,
2014. A maximum of 2,500,000 shares of the Company’s common stock are available for issuance pursuant to grants and awards made under
the 2004 Plan. Stock options, SARs and restricted stock under the 2004 Plan generally vest pro rata over five years and have a maximum term
of ten years. The cash-based performance grants will be tied to the achievement of certain performance goals during a specified performance
period, not less than one fiscal year in length. The RSUs cliff vest after five years and payment of the RSUs is deferred until January 31 of the
year following vesting. Unvested awards are subject to forfeiture in the event of termination of employment. Unvested awards are subject to
forfeiture in the event of termination of employement. See Note 1 to the Consolidated Financial Statements for discussion of the Company’s
measure of compensation cost for its incentive stock plans, as well as an estimate of future compensation expense related to these awards.
No stock options have been granted under the 2004 Plan. Grants of restricted stock, RSUs and SARs outstanding under the 2004 Plan, as
well as other relevant terms of the awards, were as follows:
Total cash received from the exercise of share-based instruments in fiscal year 2007 was $16.8 million.
104
Nonvested
SARs Outstanding
Restricted
Stock
Outstanding
Weighted
Average
Grant Date
Weighted
Average
Exercise
Shares/Units
Fair Value
Shares
Price
Balance, June 30, 2004
72,500
$
42.79
110,750
$
42.79
Granted
85,250
35.49
97,750
35.49
Cancelled
(2,000
)
42.79
(11,750
)
42.79
Vested/Exercised
(14,100
)
42.79
—
—
Balance, June 30, 2005
141,650
38.40
196,750
39.16
Granted
85,500
35.33
96,500
35.33
Cancelled
(2,850
)
39.59
(3,250
)
39.98
Vested/Exercised
(31,445
)
38.67
(4,600
)
40.31
Balance, June 30, 2006
192,855
36.92
285,400
36.87
Granted
343,200
39.04
139,200
39.04
Cancelled
(21,200
)
37.84
(22,800
)
38.41
Vested/Exercised
(41,155
)
37.33
(1,500
)
37.92
Balance, June 30, 2007
473,700
$
38.36
400,300
$
37.53