NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) NOTE 16 EMPLOYEE BENEFIT PLANS continued This number does not include shares remaining available for future issuance under the 1999 Long-term Equity Incentive Plan, which was approved by the Corporation’s shareholders at the 1999 annual meeting. The aggregate number of shares that are available for grants under that Plan in any calendar year is equal to the sum of: (a) 1 percent of the number of common shares of the Corporation outstanding as of the last day of the preceding calendar year; plus (b) the number of shares that were available for grants, but not granted, under the Plan in any previous year; but in no event will the number of shares available for grants in any calendar year exceed 1.5 percent of the number of common shares of the Corporation outstanding as of the last day of the preceding calendar year. The 1999 Long-term Equity Incentive Plan will expire in 2009. In December 2003, the Corporation’s board of directors approved the 2004 Employee Stock Purchase Plan (“2004 Plan”). The 2004 Plan includes terms that are substantially the same as the 1999 Plan. Implementation of the 2004 Plan is subject to approval by stockholders of the Corporation. The table below is a summary of the status of the Corporation's stock option plans and changes in those plans as of and for the years ended December 31, 2003, 2002 and 2001. As of December 31, 2003, other information by exercise price range for options outstanding and exercisable is as follows: Although the Corporation has elected to follow APB No. 25, SFAS No. 123 requires pro forma disclosures of net income and earnings per share as if the Corporation had accounted for its employee stock options under that Statement. 51 OUTSTANDING EXERCISABLE --------------------------------------------------------------------------------- ------------------------------- EXERCISE PRICE NUMBER WEIGHTED-AVERAGE WEIGHTED-AVERAGE NUMBER WEIGHTED-AVERAGE RANGE OF SHARES EXERCISE PRICE REMAINING CONTRACTUAL LIFE OF SHARES EXERCISE PRICE ========================================================================================================================== $ 11.18 - $19.65 384,297 $16.48 3.9 years 384,187 $16.48 19.73 - 23.46 332,948 21.71 8.2 years 167,763 20.01 23.99 - 27.28 231,751 26.28 7.2 years 101,090 25.49 ------- ------- 948,996 $20.71 6.2 years 653,040 $18.79 ======= ======= Year Ended December 31, 2003 2002 2001 ----------------------------------------------------------------------------------------------------------------------------------- WEIGHTED-AVERAGE WEIGHTED-AVERAGE WEIGHTED-AVERAGE OPTIONS SHARES EXERCISE PRICE SHARES EXERCISE PRICE SHARES EXERCISE PRICE =================================================================================================================================== Outstanding, beginning of year ................ 842,583 $ 19.89 770,817 $ 17.91 658,290 $ 17.13 Granted ....................................... 166,629 23.46 166,760 26.85 143,328 19.70 Exercised ..................................... (69,672) 16.93 (71,538) 12.74 (26,721) 9.81 Cancelled ..................................... (12,116) 22.27 (23,456) 22.18 (4,080) 19.85 ------- ------- ------- Outstanding, end of year ...................... 948,996 $ 20.71 842,583 $ 19.89 770,817 $ 17.91 ======= ======= ======= Options exercisable at year end ............... 653,040 569,758 519,710 Weighted-average fair value of options granted during the year ............ $ 5.99 $ 7.47 $ 5.71