Cabela's 2005 Annual Report Download - page 102

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CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar Amounts in Thousands Except Share and Per Share Amounts)
increase in the price of the Company’s stock. The charge to expense under the “equity” portion of the plan was
$1,960 for the fiscal year ended 2003. The equity portion of the plan was terminated in 2003 in connection with a
recapitalization transaction. In addition, as required by the recapitalization transaction, the Company paid
$40,060 of the deferred compensation in 2003.
Employee Charge Accounts—The Company allows employees to charge products at its retail stores. The
amounts included in accounts receivable that were related to employee charges were $1,516 and $1,449 at fiscal
year end 2005 and 2004, respectively. The eligibility and charge limits for employee charge accounts vary
depending on length of employment.
15. STOCK OPTION PLANS
In March 2004, the Company adopted the Cabela’s Incorporated 2004 Stock Plan. The 2004 Stock Plan
provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted
stock, restricted stock units and other stock-based awards to employees, directors, and consultants. A maximum
of 2,752,500 shares, subject to adjustment in the event of a stock split, consolidation or stock dividends, of the
Company’s common stock are subject to awards under the 2004 Stock Plan. During any three-year period, no one
person will be able to receive more than 734,000 options and/or stock appreciation rights. For awards subject to
performance requirements no one person will be able to receive more than 734,000 shares during any
performance period of 36 months, with proportionate adjustment for shorter or longer periods not to exceed five
years. The options will have a term of no greater than ten years from the grant date and will become exercisable
in accordance with the vesting schedule determined at the time the awards are granted. If incentive stock options
are granted to a “ten percent holder,” then the options will have a term of no greater than five years from the
grant date. A “ten percent holder” is defined as a person who owns stock possessing more than 10% of the total
combined voting power of all classes of capital stock of the Company. At fiscal year end 2005, there were
2,000,521 shares subject to options under the 2004 plan and 751,979 shares available for grant.
In March 2004, the Company adopted an Employee Stock Purchase Plan, under which shares of common
stock are available to be purchased by the Company’s employees. The maximum number of shares of common
stock available for issuance under the plan is 1,835,000, subject to adjustment in the event of a stock split,
consolidation or stock dividends. Employees are eligible to participate in the plan immediately upon hire.
Employees who own more than 5% of the combined voting power of all classes of our stock or stock of a
subsidiary cannot participate in the plan. The right to purchase stock under this plan became effective upon the
completion of the Company’s initial public offering. At fiscal year end 2005, 129,721 shares had been issued
under the Stock Purchase Plan and 1,705,279 shares were available for issuance.
The Company’s 1997 Stock Option Plan provided for the granting of incentive stock options and
nonqualified stock options to purchase shares of the Company’s common stock to officers, directors and key
employees responsible for the direction and management of the Company. Options granted prior to fiscal 2003
vest and become exercisable at the rate of 10% on the date of grant and an additional 10% on each January 1
thereafter. All options issued expire on the tenth anniversary of the date of the grant. In 2003, only nonqualified
options were granted. Nonqualified options granted vest and are exercisable at various dates through July 2008.
At fiscal year end 2003, there were 7,337,615 shares subject to options under the 1997 plan and there were no
future shares available for grant under the 1997 Plan.
During 2003, the Company allowed employees to exercise options prior to vesting in exchange for a call
option, as provided for in the 1997 Plan. The call option expires at the end of the vesting period and only
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