This excerpt taken from the CTAS DEF 14A filed Sep 1, 2005.
The Plan provides that the purchase price of Cintas' Common Stock purchasable under any stock option (incentive stock option or non-qualified stock option) shall be determined by the Committee, provided that the purchase price of any incentive stock option shall not be less than 100% of the fair market value of Cintas' Common Stock on the date that the option is granted. Payment of the purchase price for option shares must be made in cash unless some other form of consideration is approved by the Committee at or after grant.
The period of any option shall be determined by the Committee, but no stock option may be exercised later than ten years after the date of grant. No person may receive options for more than 200,000 shares of Common Stock in any twelve month period. Incentive stock options granted to persons owning more than 10% of the voting power of Cintas must be at 110% of fair market value and may not be for a term of more than five years.
Each nonemployee director is granted a non-qualified option to purchase 1,000 shares of Common Stock at the time of election or re-election to the Board of Directors.
This excerpt taken from the CTAS 10-K filed Aug 15, 2005.
Stock options. Cintas applies the provisions of Accounting Principles Board Opinion No. 25 (APB 25),