Blackberry 2010 Annual Report Download - page 86

Repriced options in fiscal 2010, which were all done on a voluntary basis between the Company and the option holder ,
include 27 stock option grants to 25 individuals in respect of options to acquire 456,800 common shares (fiscal 2009 — 43
stock option grants to 40 individuals in respect of options to acquire 752,775 common shares). In addition, during fiscal
2008, the Company received $8.7 million in restitution, inclusive of interest, related to incorrectly priced stock options that
were exercised prior to fiscal 2008. As the repricing of stock options reflects an increase in the exercise price of the option,
there is no incremental stock compensation expense related to these repricing events.
As previously disclosed, the Company’s Co-Chief Executive Officers voluntarily offered to assist the Company in defraying
costs incurred in connection with the Review and the Restatement by contributing CAD $10.0 million (CAD $5.0 million by
each Co-CEO) of those costs. As part of a settlement agreement reached with a pension fund, an additional CAD
$5.0 million (CAD $2.5 million by each Co-CEO) was received in the third quarter of fiscal 2008. The Company received these
voluntary payments in the second and third quarters of fiscal 2008 and were recorded net of income taxes as an increase
to additional paid-in capital. Furthermore, as part of a settlement agreement reached with the OSC, on February 5, 2009,
Messrs. Balsillie, Lazaridis and Kavelman also agreed to contribute, in aggregate, a total of approximately CAD
$83.1 million to RIM, consisting of (i) a total of CAD $38.3 million to RIM in respect of the outstanding benefit arising from
incorrectly priced stock options granted to all RIM employees from 1996 to 2006, and (ii) a total of CAD $44.8 million to RIM
(CAD $15.0 million of which had previously been paid) to defray costs incurred by RIM in the investigation and remediation
of stock options, granting practices and related governance practices at RIM. These contributions are being made through
Messrs. Balsillie, Lazaridis and Kavelman undertaking not to exercise certain vested RIM options to acquire an aggregate
of 1,160,129 common shares of RIM. These options have a fair value equal to the aggregate contribution amounts
determined using a BSM calculation based on the last trading day prior to the day the OSC issued a notice of hearing in
respect of the matters giving rise to the settlement. In the first quarter of fiscal 2010, options to acquire an aggregate of
758,837 common shares of RIM expired in satisfaction of the undertakings not to exercise options. These options are
included in the disclosure of forfeitures during the period in the table below. The remaining options subject to the
undertakings are shown as outstanding, vested and exercisable as at February 27, 2010 in the table below and expire at
specified dates between February 28, 2010 and October 2013. Messrs. Balsillie, Lazaridis, Kavelman and Angelo Loberto,
previously Vice-President of Finance (currently with the Company in another role), also paid a total of CAD $9.1 million to
the OSC as an administrative penalty and towards the costs of the OSC’s investigation.
In June 2007, the Board amended the Stock Option Plan to provide that options held by directors of the Company will not
terminate upon a director ceasing to be a director of the Company if such person is appointed as a Director Emeritus of
the Board. This resulted in a modification for accounting purposes of unvested options previously granted to two directors
who where appointed Directors Emeritus during the second quarter of fiscal 2008, which in turn required the Company to
record additional compensation expense in fiscal 2008 in the amount of $3.5 million.
RESEARCH IN MOTION LIMITED
Notes to the Consolidated Financial Statements continued
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
NOTE 11
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