A summary of option activity under the Plan as of January 2, 2011, January 3, 2010 and December 28, 2008 and changes during the years ending on those dates is presented below: Stock options exercisable at January 3, 2010 and December 28, 2008 were 148,349 at an average price of $57.26 and an average life of 5.0 years and 144,962 at an average price of $56.25 and an average life of 5.3 years, respectively. The Company grants restricted share units with a vesting period of three years. The Company settles employee stock issuances with treasury shares. Treasury shares are replenished throughout the year for the number of shares used for employee stock issuances. A summary of share activity under the Plan as of January 2, 2011: The average fair value of the restricted share units granted was $56.69, $52.79 and $56.70 in 2010, 2009 and 2008, respectively, using the fair market value at the date of grant. The fair value of restricted share units was discounted for dividends, which are not paid on the restricted share units during the vesting period. The fair value of restricted share units settled was $375.0 million, $308.4 million and $2.5 million in 2010, 2009 and 2008, respectively. The following table summarizes stock options outstanding and exercisable at January 2, 2011: The total intrinsic value of options exercised was $278 million, $184 million and $506 million in 2010, 2009 and 2008, respectively. (1) Average contractual life remaining in years. JOHNSON & JOHNSON 2010 ANNUAL REPORT 60 (Shares in Thousands) Outstanding Exercisable _______________________________________________________ __________________ Average Average Exercise Average Exercise Exercise Price Range Options Life (1) Price Options Price $25.00-$40.08 50 0.9 $29.53 50 $29.53 $41.26-$49.86 532 0.5 47.43 532 47.43 $50.52-$52.80 20,155 2.1 52.20 20,115 52.20 $53.00-$53.93 24,114 3.0 53.93 24,114 53.93 $54.04-$57.30 24,332 1.1 57.28 24,332 57.28 $57.44-$58.34 39,343 6.5 58.33 20,175 58.33 $58.42-$65.10 33,020 7.8 62.11 1,147 61.21 $65.62-$68.37 52,144 4.8 65.97 50,810 65.98 193,690 4.7 $59.68 141,275 $59.25 Outstanding (Shares in Thousands) Shares Shares at December 30, 2007 13,661 Granted 10,105 Issued (40) Canceled/forfeited (1,468) Shares at December 28, 2008 22,258 Granted 11,172 Issued (5,714) Canceled/forfeited (1,392) Shares at January 3, 2010 26,324 Granted 12,003 Issued (6,297) Canceled/forfeited (2,296) Shares at January 2, 2011 29,734 Weighted Aggregate Outstanding Average Intrinsic Value (Shares in Thousands) Shares Exercise Price (Dollars in Millions) Shares at December 30, 2007 228,629 $56.83 $2,411 Options granted 22,428 61.80 Options exercised (30,033) 50.27 Options canceled/forfeited (5,525) 61.90 Shares at December 28, 2008 215,499 58.14 $ 597 Options granted 21,576 58.32 Options exercised (18,225) 50.97 Options canceled/forfeited (6,131) 61.85 Shares at January 3, 2010 212,719 58.66 $1,310 Options granted 13,996 62.62 Options exercised (25,020) 51.84 Options canceled/forfeited (8,005) 62.36 Shares at January 2, 2011 193,690 $59.68 $ 648 RESTRICTED SHARE UNITS