Avid 2008 Annual Report Download - page 82

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77
L. STOCK PLANS
Stock Incentive Plan
At the Company’s 2008 Annual Stockholder Meeting held on May 21, 2008, the Company’s stockholders approved
the Company’s Amended and Restated 2005 Stock Incentive Plan (the “Plan”). Under the Plan, the Company is
authorized to issue, subject to adjustment in the event of stock splits and other similar events, up to 8,000,000 shares
of the Company’s common stock plus:
y an aggregate of 168,143 shares that remained available for issuance as of May 21, 2008 under the Company’s
1993 Director Stock Option Plan, as amended; the Company’s 1998 Stock Option Plan; the Company’s
Amended and Restated 1999 Stock Option Plan; and the Company’s Midiman, Inc. 2002 Stock Option/Stock
Issuance Plan (the “Existing Plans”); and
y any shares subject to awards granted under the Existing Plans, which awards expire, terminate or are
otherwise surrendered, canceled, forfeited or repurchased by the Company at their original issuance price
pursuant to a contractual repurchase right.
No further awards will be granted under the Existing Plans from and after May 21, 2008. Under the Plan, the
Company may grant stock awards or options to purchase the Company’s common stock to employees, officers,
directors (subject to certain restrictions) and consultants, generally at the market price on the date of grant. The
options become exercisable over various periods, typically four years for employees and one year for non-employee
directors, and have a maximum term of seven years. Restricted stock and restricted stock unit awards typically vest
over four years. As of December 31, 2008, 5,576,730 shares were available for issuance under the Plan or the Existing
Plans, including 1,075,937 shares that may alternatively be issued as awards of restricted stock or restricted stock
units.
Information with respect to options granted under all stock option plans for the year ended December 31, 2008 is as
follows:
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(in thousands)
Options outstanding at December 31, 2007 3,825,180 $35.83
Granted 1,620,380 $21.28
Exercised (89,193) $13.48
Forfeited or canceled (906,081) $40.53
Options outstanding at December 31, 2008 4,450,286 $30.03 5.93 $148
Options vested at December 31, 2008 or expected to vest 3,935,154 $30.95 5.71 $147
Options exercisable at December 31, 2008 2,022,702 $37.30 3.98 $143
The weighted-average grant-date fair value of options granted during the years ended December 31 2007, and 2006
was $29.39, and $39.59, respectively. The aggregate intrinsic value of stock options exercised during the years ended
December 31, 2008, 2007 and 2006 was approximately $0.8 million, $8.1 million and $10.2 million, respectively.
Cash received from the exercise of stock options for the years ended December 31, 2008, 2007 and 2006 was
approximately $1.2 million, $10.5 million and $6.8 million, respectively. The Company did not realize any actual tax
benefit from the tax deductions for stock option exercises during the years ended December 31, 2008, 2007 or 2006
due to the full valuation allowance on the Company’s U.S. deferred tax assets.