Blackberry 2011 Annual Report Download - page 83

(b) Stock-based compensation
Stock Option Plan
The Company recorded a charge to income and a credit to paid-in-capital of approximately $31 million in fiscal 2011 (fiscal 2010 —
$37 million; fiscal 2009 — $38 million) in relation to stock-based compensation expense.
The Company has presented excess tax benefits from the exercise of stock-based compensation awards as a financing activity in
the consolidated statement of cash flows.
Stock options granted under the plan generally vest over a period of five years and are generally exercisable over a period of six
years to a maximum of ten years from the grant date. The Company issues new shares to satisfy stock option exercises. There are
14 million stock options available for future grants under the stock option plan as at February 26, 2011.
In fiscal 2010, the Company completed the repricing to a higher exercise price of certain of its outstanding stock options. This
repricing followed a voluntary internal review by the Company of its historical stock option granting practices. Repriced options in fiscal
2010, which were all done on a voluntary basis between the Company and the option holder, included 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). 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 part of a settlement agreement reached with the Ontario Securities Commission (“OSC”), on February 5, 2009, Messrs. Balsillie,
Lazaridis and Kavelman agreed to contribute, in aggregate, a total of approximately CAD $83 million to RIM, consisting of (i) a total of
CAD $38 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 $45 million to RIM (CAD $15 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 Black-Scholes-Merton (“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, and in the fourth quarter of fiscal 2011, options to acquire an aggregate of
391,292 common shares of RIM, expired in satisfaction of the undertakings not to exercise options. The remaining 10,000 options
subject to an undertaking are shown as outstanding, vested and exercisable as at February 26, 2011 in the table below and expire on
March 31, 2011.
70 RESEARCH IN MOTION ANNUAL REPORT 2011
RESEARCH IN MOTION LIMITED
Notes to the Consolidated Financial Statements continued
In millions of United States dollars, except share and per share data, and except as otherwise indicated