NOTES TO CONSOLIDATED FINANCIAL STATEMENTS determined by the Board of Directors. In addition, a Non-employee Directors Stock Incentive Plan has been established to allow non-employee directors to have a personal financial stake in the Company through an ownership interest. Directors may elect to receive their compensation in common stock, deferred stock or stock options. Options granted under the Non-employee Directors Stock Incentive Plan and the Executive Officer Annual Bonus Equity Election Plan vest and become fully exercisable immediately. All other options outstanding vest over 12 months. All stock options have a ten-year term. The shares reserved under the various stock option plans are as follows: (1) 1992 Stock Option Plan - 299,948, (2) 1998 Long-term Incentive Plan - 2,819,193, (3) Executive Officer Annual Bonus Equity Election Plan - 16,892 and (4) 1998 Non- employee Directors Stock Plan - 10,209. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employ- ee stock options. Year Ended December 31, 2002 2001 2000 Weighted Avg. Weighted Avg. Weighted Avg. Options Exercise Price Options Exercise Price Options Exercise Price  Options outstanding,  beginning of year 2,622,169 $19.61 2,173,034 $ 20.53 1,866,730 $ 17.23 Options granted 614,431 $14.45 603,593 $ 12.92 580,348 $ 25.58 Options forfeited 37,618 $27.91 7,850 $ 22.44  78,800 $ 18.59 Options exercised 52,740 $ 9.88 146,608 $ 5.03 195,244 $ 5.12 Options outstanding,  end of year 3,146,242 $18.54 2,622,169 $ 19.61  2,173,034 $ 20.53 A summary of the Company’s stock option activity and related information for the years ended December 31, 2002, 2001 and 2000 follows: The weighted average fair value of options granted whose exercise price was equal to the market price of the stock on the grant date was $4.96, $5.25 and $10.61 for the years ended December 31, 2002, 2001 and 2000, respectively. The weighted average fair value of options granted whose exercise price exceeded the market price of the stock on the grant date was $7.67, $7.72 and $14.92 for the years ended December 31, 2002, 2001 and 2000, respectively. The following table summarizes information about the stock options outstanding under the Company’s option plans as of December 31, 2002: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range of Number Contractual Exercise Number Exercise Exercise Price Outstanding Life Price Exercisable Price $4.56 - $6.44 261,948 3 years $ 5.17 261,948 $ 5.17 $7.44 - $14.27 593,648 7 years $ 12.57 588,648 $ 12.60 $14.50 - $36.00 2,290,646 7 years $ 21.62 1,688,645 $ 24.16 Total 3,146,242 6 years $ 18.54 2,539,241 $ 19.52 The Company has adopted a Shareholder Protection Rights Agreement and declared a distribution of one right (the “Right”) for each outstanding share of Company common stock, par value $0.20 per share (the “Common Stock”). Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share (a “Unit”) of Series A Participating Preferred Stock, par value $1.00 per share (the “Preferred Stock”), at a pur- chase price of $18.00 per Unit, subject to adjustment. The Rights currently attach to the certificates representing shares of outstanding Company Common Stock, and no separate Rights certificates will be distributed. The Rights will separate from the Common Stock upon the earlier of ten business days (unless otherwise delayed