DREAMWORKSANIMATIONSKG,INC. NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued) Stock option activity since the Separation under the Company’s Omnibus Plan is summarized as follows (in thousands, except per share amounts): Weighted Options AverageExercise Outstanding Price per Share Balance at October 27, 2004 (conversions) ................................ 2,262 $25.21 Options granted ..................................................... 2,342 28.00 Options exercised .................................................... (223) 13.75 Options canceled .................................................... (31) 31.30 Balance at December 31, 2004 .......................................... 4,350 $27.26 The following table summarizes information concerning outstanding and exercisable options as of December31,2004(inthousands, except years and per share amounts): Optionsoutstanding Optionsexercisable Weighted Average Weighted Weighted Remaining Average Average Rangeof Contractual Exercise Exercise Exercise Prices Number Life Price Number Price per Share Outstanding (in years) per Share Exercisable per Share $1.00-$3.23 ................................. 60 1.1 $1.20 60 $ 1.20 $6.46-$8.06 ................................. 311 4.2 8.03 307 8.03 $22.43-$26.95 ............................... 447 9.8 24.34 357 24.23 $28.00 ..................................... 2,535 9.8 28.00 0 0.00 $31.41-$32.31 ............................... 563 9.8 31.78 217 31.49 $36.90-$ 37.51 .............................. 434 9.8 37.48 171 37.48 Total ...................................... 4,350 9.8 $27.26 1,112 $21.97 9. Related Party Transactions Pursuant to the Distribution Agreement, the Company incurred distribution fees payable to DreamWorks Studios of $63.6 million for the period from the effective date of the Distribution Agreement through December 31, 2004. As of December 31, 2004, the Company had a receivable from DreamWorks Studios of approximately $372.1 million pursuant to the Distribution Agreement. Pursuant to the Services Agreement, the Company reimbursed DreamWorks Studios $1.3 million and DreamWorksStudios reimbursed the Company $1.0 million for the period from the effective date of the Services Agreement through December 31, 2004. The Company has made loans to certain of its employees pursuant to various notes receivable arrangements. These arrangements require interest to be paid at rates ranging from 0% to 5.88%. Payments are due under terms ranging from 1 to 10 years. Amounts due at December 31, 2003 and 2004 are reflected in Receivables from Employees in the accompanying consolidated balance sheets. Interest income associated with these notes receivable for the years ended December 31, 2002, 2003 and 2004 was not material. As of December 31, 2004 the Company had no loans outstanding to named executive officers. 90