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## Notes to Financial Statements 

## Dollars in thousands, except share and per share amounts and where indicated as in millions or billions 

Restricted Stock.  The 1998 Plan also provides for shares of restricted common stock of Simon Property to be granted to certain employees at no cost to those employees, subject to growth targets established by the Compensation Committee (the “Restricted Stock Program”). Restricted stock is issued on the grant date and vests annually in four installments of 25% each beginning on January 1 following the year in which the restricted stock is awarded. The cost of restricted stock grants, which is based upon the stock’s fair market value on the grant date, is charged to shareholders’ equity and subsequently amortized against our earnings over the vesting period. Through December 31, 2003 a total of 3,057,571 shares of restricted stock, net of forfeitures, have been awarded under the plan. Information regarding restricted stock awards are summarized in the following table for each of the years presented: 

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

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The weighted average remaining contract life for options outstanding as of December 31, 2003 was 5.89 years. In 2002, we changed our accounting for stock options to the fair value method. The impact on pro forma net income and earnings per share as a result of applying the fair value method, as prescribed by SFAS No. 123, Accounting for Stock-Based Compensation , which requires entities to measure compensation costs measured at the grant date based on the fair value of the award, was not material. 

Information relating to Director Options and Employee Options from December 31, 2000 through December 31, 2003 is as follows: 

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(1) Represents the weighted average price when multiple prices exist. 

