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## (13) Executive Benefit Plans 

The Board of Directors of BOK Financial has approved various stock option plans. The number of options awarded and the employees to receive the options are determined by the Chairman of the Board and the President, subject to approval of the Board of Directors or a committee thereof. None of these plans have'béeén or ate required to be approved by BOK Financial’s shareholders. 

Options awarded under these plans are subject to vesting requirements. Generally, one-seventh of the options awarded vest annually and expire three years after vesting: 

The following table presents options outstanding during 1999, 2000 and 2001 under these plans: 

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The following table summarizes information concerning currently outstanding and vested options: 

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Under APB 25 no compensation expense is recognized at the date of grant since the exercise price of BOK Financial’s employee stock option equals the market price of the underlying stock on the date of grant. 

FASB Statement No. 123, “Accounting for Stock- Based Compensation,” requires disclosure of pro forma information regarding net income and earnings per share as if BOK Financial accounted for employee stock options granted subsequent to December 31, 1994 under the fair value method of the Statement. 

The fair value of these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 

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The weighted-average fair value of options granted during 2001, 2000 and 1999 was $6.40, $5.98 and $6.16, respectively. 

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because BOK Financial’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. 

For purposes of pro forma disclosures, the estimated fair value of the options is amortized. to expense over the options’ vesting period. The following table represents the required pro forma disclosures for options granted subsequent to December 31, 1994 (in thousands, except per share data): 

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Because Statement 123 is applicable only to options granted subsequent to December 31, 1994, its pro forma effect will not be fully reflected until 2003. 

