is entitled to receive a severance payment equal to two times annual salary 
and the average of the prior two years’ bonuses.
Stock-Based Compensation
Under the Company’s 1995 Stock-Based Compensation Plan, as amended 
and restated effective November 10, 2000, the Company may award 
options to purchase shares of the Company’s common stock and grant 
other stock awards to executives, managers, and key personnel. The Plan 
is administered by the Human Resources and Compensation Committee 
of the Board of Directors. Restricted stock awarded under the plan is 
expensed ratably over the vesting period of the awards. Stock options 
awarded to employees under the Plan must be at exercise prices equal to 
or exceeding the fair market value of the Company’s common stock on 
the date of grant. Stock options are generally subject to four-year cliff 
vesting and must be exercised within 10 years from the date of grant.
The weighted-average fair value of options granted during 
2003, 2002, and 2001, estimated on the date of grant using the 
Black-Scholes option-pricing model, was $10.74, $11.74, and $9.70, 
respectively. The fair value of 2003, 2002, and 2001 options granted 
is estimated on the date of grant using the following assumptions: 
dividend yield of 1.2% to 2.1%, expected volatility of 34.9% to 38.4%, 
risk-free interest rate of 4.2% to 5.4%, and an expected life of 10 to 12 
years, depending on grant date.
The status of the Company’s stock option plans is summa -
rized in the following table: