15. Stock Options

The Corporation’s 1982, 1992, 1997, and 1999 Stock Plans (the “Plans”) provide stock options to certain key employees (and to all full-time employees in the case of the 1999 stock plan) for up to 5,966,556 common shares of the Corporation. In addition, these Plans provide for the granting of non-qualified stock options to certain non-employee directors of the Corporation for which 200,000 common shares of the Corporation have been reserved. Outstanding options under these Plans are generally not exercisable for at least six months from date of grant.

Options under these Plans are granted at 100% of the fair market value. Options granted as incentive stock options must be exercised within ten years and options granted as non-qualified stock options have terms established by the Compensation Committee of the Board and approved by the non-employee directors of the Board. Options are cancelable within defined periods based upon the reason for termination of employment.

As permitted by SFAS 123, “Accounting for Stock Based Compensation,” the Corporation continues to account for its stock option plans in accordance with Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees,” and makes no charges against income with respect to options granted.

However, SFAS 123 does require the disclosure of the pro forma effect on net income and earnings per share that would result if the fair value compensation element were to be recognized as expense. The following table shows the pro forma earnings and earnings per share for 1999,1998, and 1997 along with significant assumptions used in determining the fair value of the compensation amounts.

A summary of stock option activity is as follows:

The ranges of exercise prices and the remaining contractual life of options as of December 31, 1999 were as follows:

The Employee Stock Purchase Plan provides full-time and part-time employees of the Corporation the opportunity to acquire common shares on a payroll deduction basis. Shares available under the Employee Stock Purchase Plan are purchased at 85% of their fair market value on the business day immediately preceding the semi-annual grant date. Of the 240,705 shares available under the Plan, there were 46,291, 45,802 and 26,770 shares issued in 1999, 1998 and 1997, respectively.