Notes to Financial Statements Dollars in thousands, except share and per share amounts and where indicated as in millions or billions Restricted Stock.  The 1998 Plan also provides for shares of restricted common stock of Simon Property to be granted  to certain employees at no cost to those employees, subject to growth targets established by the Compensation Committee  (the “Restricted Stock Program”). Restricted stock is issued on the grant date and vests annually in four installments of 25%  each beginning on January 1 following the year in which the restricted stock is awarded. The cost of restricted stock grants,  which is based upon the stock’s fair market value on the grant date, is charged to shareholders’ equity and subsequently  amortized against our earnings over the vesting period. Through December 31, 2003 a total of 3,057,571 shares of restricted  stock, net of forfeitures, have been awarded under the plan. Information regarding restricted stock awards are summarized  in the following table for each of the years presented: The fair value of the options at the date of grant was estimated using the Black-Scholes option pricing model with the  following assumptions: The weighted average remaining contract life for options outstanding as of December 31, 2003 was 5.89 years. In  2002, we changed our accounting for stock options to the fair value method. The impact on pro forma net income and  earnings per share as a result of applying the fair value method, as prescribed by SFAS No. 123,  Accounting for Stock-Based  Compensation , which requires entities to measure compensation costs measured at the grant date based on the fair value of  the award, was not material. Information relating to Director Options and Employee Options from December 31, 2000 through December 31,  2003 is as follows: 74 simon property group, inc. (1) Represents the weighted average price when multiple prices exist. For the Year Ended December 31,  2003 2002  2001 Restricted stock shares awarded, net of forfeitures  380,835 (21,070 )  454,726 Weighted average grant price  $  33.03 $  0.00 $  25.85 Amortization expense  $ 10,355 $  8,957 $ 11,512 December 31,  2002  2001 Weighted Average Fair Value per Option  $2.78  $1.82 Expected Volatility  18.7%  20.45 – 20.58% Risk-Free Interest Rate  4.85%  4.85 – 5.33% Dividend Yield  6.9%  7.36– 7.83% Expected Life  6 years  10 years Director Options  Employee Options Option Price per  Option Price per Options  Share  (1) Options  Share  (1) Shares under option at December 31, 2000 154,720 $25.67 2,513,066 $24.55 Granted  26,000 26.09 1,085,836 25.40 Exercised  (11,000 )  24.93 (372,226 )  22.99 Forfeited  – N/A (48,925 )  23.94 Shares under option at December 31, 2001 169,720 $25.86 3,177,751 $25.03 Granted  24,000 33.68 – – Exercised  (6,360 )  22.29 (665,476 )  23.44 Forfeited  (9,000 )  27.05 (7,225 )  24.25 Shares under option at December 31, 2002 178,360 $26.97 2,505,050 $25.46 Granted  – N/A – N/A Exercised  (86,000 )  26.43 (647,617 )  23.44 Forfeited  – N/A (5,400 )  25.54 Shares under option at December 31, 2003 92,360 $27.48 1,852,033 $26.16 Exercise price range $22.25-$33.68 $22.25-$30.38 Options exercisable at December 31, 2001  143,720 $25.81 1,753,218 $25.11 Options exercisable at December 31, 2002  154,360 $25.93 1,695,750 $25.67 Options exercisable at December 31, 2003 92,360 $27.48 1,552,983 $26.28