The following summarizes the status of the Stock Option Program and the changes during the three years ending December 31, 2004: The following table summarizes information about stock options outstanding at December 31, 2004: The Continuity Award Program provides for the granting of tandem awards of restricted stock and/or nonqualified stock options to key executives. Grants are restricted and awards conditioned on attainment of specified age and years of service requirements. Awarding of a tandem stock option results in the cancellation of the related restricted shares. The Continuity Award Program also provides for awards of restricted stock to key employees. Under the Restricted Performance Share Program, contingent awards of International Paper common stock are granted by the Committee. Shares are earned on the basis of International Paper’s financial performance over a period of consecutive calendar years as determined by the Committee. Under a Restricted Performance Share Program approved during 2001 and amended in 2004, awards vesting over a three-year period were granted in 2002, 2003 and 2004. Compensation expense for this variable plan is recorded over the applicable vesting period. The following summarizes the activity of all performance-based programs for the three years ending December 31, 2004: Performance - Based Restricted Shares Continuity Award Program Weighted ) Average ) Exercise ) Options (a,b)) Price ) Outstanding at  December 31, 2001 29,110,125) $ 41.28 Granted 11,927,766) 37.36 Exercised (1,345,421) 34.62 Forfeited (1,841,489) 40.51 Expired (696,961) 51.24 Outstanding at  December 31, 2002 37,154,020) 40.11 Granted 11,315,401) 37.08 Exercised (2,778,038) 31.87 Forfeited (1,823,244) 41.19 Expired (1,062,311) 51.71 Outstanding at  December 31, 2003 42,805,828) 39.51 Granted 9,663,303) 39.70 Exercised (4,726,957) 34.60 Forfeited (1,059,215) 40.86 Expired (1,248,052) 51.40 Outstanding at  December 31, 2004 45,434,907) $39.70 Shares) Outstanding at December 31, 2001 1,214,100) Granted (a) 583,690) Issued (330,437) Forfeited (190,013) Outstanding at December 31, 2002 1,277,340) Granted (a) 658,155) Issued (586,237) Forfeited (164,803) Outstanding at December 31, 2003 1,184,455) Granted (a) 1,581,442) Issued (391,691) Forfeited (128,957) Outstanding at December 31, 2004 2,245,249) Options Outstanding Options Exercisable Options Weighted Weighted Options Weighted Range of Outstanding Average Average Outstanding Average Exercise as of Remaining Exercise as of Exercise Prices 12/31/04 Life Price 12/31/04 Price $29.31-$33.80 6,995,810 6.6 $31.80 6,880,025 $31.77  $33.81-$39.77 20,253,440 7.7 $37.16 6,407,275 $36.34  $39.78-$45.74 12,435,641 6.8 $41.38 7,737,871 $41.84  $45.75-$51.71 2,023,345 3.6 $47.37 2,023,345 $47.37  $51.72-$57.68 594,292 0.8 $54.52 594,292 $54.52  $57.69-$63.65 2,954,179 4.5 $59.10 2,954,179 $59.10  $63.66-$66.81 178,200 5.0 $64.70 178,200 $64.70  45,434,907 6.8 $39.70 26,775,187 $40.69 77 (a) The table does not include Continuity Award tandem stock options described below. No fair market value is assigned to these options under SFAS No. 123. The tandem restricted shares accompanying these options are expensed over their vesting period. (b) The table includes options outstanding under an acquired company plan under which options may no longer be granted. (a) The weighted average fair value of performance shares granted was $42.95, $35.34 and $40.09 in 2004, 2003 and 2002, respectively.