At March 28, 2004, 348,500 common shares were reserved for future stock option grants. The following table summarizes information about stock options and warrants (excluding the 579,040 warrants issued to the Miami Subs shareholders as part of the merger consideration) at March 28, 2004: 3. Common Stock Purchase Rights On June 20, 1995, the Board of Directors declared a dividend distribution of one common stock purchase right (the “Rights”) for each outstanding share of Common Stock of the Company. The dis- tribution was paid on June 20, 1995 to the shareholders of record on June 20, 1995. The terms of the Rights were amended on April 6, 1998 and December 8, 1999. Each Right, as amended, entitles the registered holder thereof to purchase from the Company one share of the Common Stock at a price of $4.00 per share (the “Purchase Price”), subject to adjustment for anti-dilution. New Common Stock certificates issued after June 20, 1995 upon transfer or new issuance of the Common Stock will contain a notation incorporating the Rights Agreement by reference. The Rights are not exercisable until the Distribution Date. The Distribution Date is the earlier to occur of (i) ten days following a public announcement that a person or group of affiliated or associ- ated persons (an “Acquiring Person”) acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of the Common Stock, as amended, or (ii) ten business days (or such later date as may be determined by action of the Board of 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page thirty-one Options and Options and Warrants Outstanding Warrants Exercisable Weighted- Weighted- Weighted- Number Average Average Number Average Range of Outstanding Remaining Exercise Exercisable Exercise exercise prices at 3/28/04 Contractual Life Price at 3/28/04 Price $3.19 to $ 4.00 1,534,558 4.9 $ 3.34 1,353,140 $ 3.37  4.01 to 6.60 382,128 1.7 5.40 357,128 5.47 6.61 to 18.61 30,750 1.3 17.30 30,750 17.30 $3.19 to $18.61 1,947,436 4.2 $ 3.99 1,741,018 $ 4.04 2004 2003 2002 Weighted- Weighted- Weighted- Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Options outstanding—beginning of year 1,754,249 $ 4.01 1,821,146 $4.29 1,514,209 $3.86 Granted 65,000 4.03 40,000 3.96 307,000 3.20 Expired (40,563) 11.67 (106,897) 7.32 (63) 6.20 Options outstanding—end of year 1,778,686 3.92 1,754,249 4.01 1,821,146 4.29 Options exercisable—end of year 1,572,268 1,502,124 1,367,479 Weighted-average fair value of options granted $ 1.60 $2.19 $1.30  Warrants outstanding—beginning of year 318,750 $ 4.62 318,750 $4.62 368,750 $4.53 Expired (150,000) 4.50 — (50,000) 3.94 Warrants outstanding—end of year 168,750 4.73 318,750 4.62 318,750 4.62 Warrants exercisable—end of year 168,750 318,750 318,750 Weighted-average fair value of warrants granted $ — $— $— A summary of the status of the Company’s stock option plans and warrants, excluding the 579,040 warrants issued to former shareholders of Miami Subs, at March 28, 2004, March 30, 2003 and March 31, 2002 and changes during the fiscal years then ended is presented in the tables below: