SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 10. Stock Incentive Plan (Continued) Note 11. Major Customers There were 85,670, 91,658 and 83,114 shares exercisable at December 31, 2003, 2002 and 2001, at weighted average exercise prices per share of, $15.94, $13.70, and $11.71, respectively. During 2002, the Company issued 4,654 shares of Company stock to employees valued at $100 thousand in recognition of the Company’s 100 $^{th}$ year anniversary. The following table summarizes information about stock options outstanding at December 31, 2003: The Company has one major customer and relationship that is a significant source of revenue. In 2003, as during the past number of years, the Company’s relationship with Sprint continued to increase, due to growth in the PCS business segment. Approximately 61.2% of total revenues in 2003 were generated by or through Sprint and its customers using the Company’s portion of Sprint’s nationwide PCS network. This was compared to 57.6% in 2002, and 47.1% of total revenue in 2001. No other customer relationship on a stand-alone basis generates more than 2.5% of the Company’s total revenue for 2003, 2002 and 2001. A summary of the status of the Plan at December 31, 2003, 2002 and 2001 and changes during the years ended on those dates is as follows: 33 ■  2003 ANNUAL REPORT  2003 2002 2001 Dividend rate 1.68% to 2.35% 1.52% 1.78% Risk-free interest rate 3.00% to 3.18% 4.24% 4.31% Expected lives of options 5 to 10 years 5 years 5 years Price volatility 38.83% to 51.02% 30.03% 38.29% Shares Weighted Average Grant Price Per Share Fair Value Per Share Outstanding January 1, 2001 117,122 $ 12.50 Granted 39,938 15.79 $ 5.51 Cancelled (6,580) 14.86 Exercised (12,426) 10.72 Outstanding December 31, 2001 138,054 13.51 Granted 47,646 17.59 4.08 Cancelled (19,758) 13.95 Exercised (16,238) 11.27 Outstanding December 31, 2002 149,704 14.99 Granted 75,396 18.89 4.24 to 11.37 Cancelled (11,892) 16.62 Exercised (40,988) 11.89 Outstanding December 31, 2003 172,220 $ $ Exercise Prices Shares Outstanding Option Life Remaining Shares Exercisable 1999 $ 9.97 9,700 1 year 9,700 2000 17.19 25,900 2 years 25,900 2001 15.79 31,626 3 years 31,626 2002 17.59 36,888 4 years 18,444 2003 17.98-22.01 68,106 5 to 10 years - $