The exercise price of the options is the fair market value of the underlying stock at the date of grant, and the options expire in ten years. The restrictions on transfer will ordinarily lapse ratably over a five-year period.
Options remain outstanding under a predecessor plan subject to similar terms.
The 1994 Stock Option Plan expired at the end of 1998. Shares which had not yet vested as of the end of the final performance period were forfeited and returned as treasury stock. During 1998, Ceridian reserved 1,000,000 common shares for a new stock-based compensation plan for certain employees in its UK operations. The employee plans also provide for the accelerated exercisability of options and the accelerated lapse of transfer restrictions on restricted stock if a participant's employment terminates for specified reasons within two years of a change of control of Ceridian. The following disclosure is provided with respect to the provisions of FAS 123.