Blizzard 2005 Annual Report Download - page 81
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Please find page 81 of the 2005 Blizzard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.OnJune30,2003,weterminatedourStarTrekMerchandisingLicenseAgreementwithViacomConsumerProducts,Inc.andfiledacomplaintintheSuperiorCourtof
theStateofCaliforniaforbreachofcontractandconstructivetrustagainstViacomConsumerProductsandViacomInternational,Inc.(“Viacom”).OnAugust15,2003,
Viacomfileditsresponsetoourcomplaintaswellasacross-complaintalleging,amongothermatters,abreachofcontractbyActivisionandseekingclaimeddamages
inexcessof$50million.OnFebruary23,2005,wereachedanagreementwithViacomthatsettledthelegaldisputes.Asaresultofthesettlement,allpendinglawsuits
filedbyeachpartyintheSuperiorCourtinLosAngelesregardingthismatterhavebeendismissedbycourtorderdatedMarch18,2005.Thesettlementhadnomaterial
impactonthefinancialresultsofActivision’soperations.
Inaddition,wearepartytootherroutineclaimsandsuitsbroughtbyusandagainstusintheordinarycourseofbusiness,includingdisputesarisingovertheownership
ofintellectualpropertyrights,contractualclaimsandcollectionmatters.Intheopinionofmanagement,afterconsultationwithlegalcounsel,theoutcomeofsuchroutine
claimswillnothaveamaterialadverseeffectonourbusiness,financialcondition,resultsofoperationsorliquidity.
14. STOCK COMPENSATION AND EMPLOYEE BENEFIT PLANS
Stock Option Plans
Wesponsorseveralstockoptionplansforthebenefitofofficers,employees,consultantsandothers.
OnFebruary28,1992,theshareholdersofActivisionapprovedtheActivision1991StockOptionandStockAwardPlan,asamended,(the“1991Plan”)whichpermitsthe
grantingof“Awards”intheformofnon-qualifiedstockoptions,incentivestockoptions(“ISOs”),stockappreciationrights(“SARs”),restrictedstockawards,deferred
stockawardsandothercommonstock-basedawardstodirectors,officers,employees,consultantsandothers.Thetotalnumberofsharesofcommonstockavailable
fordistributionunderthe1991Planis34,050,000.The1991Planrequiresavailablesharestoconsistinwholeorinpartofauthorizedandunissuedsharesortreasury
shares.Therewerenosharesremainingavailableforgrantunderthe1991PlanasofMarch31,2005.
OnSeptember23,1998,theshareholdersofActivisionapprovedtheActivision1998IncentivePlan,asamended(the“1998Plan”).The1998Planpermitsthegrantingof
“Awards”intheformofnon-qualifiedstockoptions,ISOs,SARs,restrictedstockawards,deferredstockawardsandothercommonstock-basedawardstodirectors,
officers,employees,consultantsandothers.Thetotalnumberofsharesofcommonstockavailablefordistributionunderthe1998Planis13,500,000.The1998Plan
requiresavailablesharestoconsistinwholeorinpartofauthorizedandunissuedsharesortreasuryshares.Therewereapproximately21,200sharesremainingavailable
forgrantunderthe1998PlanasofMarch31,2005.
OnApril26,1999,theBoardofDirectorsapprovedtheActivision1999IncentivePlan,asamended(the“1999Plan”).The1999Planpermitsthegrantingof“Awards”in
the form of non-qualified stock options, ISOs, SARs, restricted stock awards, deferred share awards and other common stock-based awards to directors, officers,
employees,consultantsandothers.Thetotalnumberofsharesofcommonstockavailablefordistributionunderthe1999Planis22,500,000.The1999Planrequires
availablesharestoconsistinwholeorinpartofauthorizedandunissuedsharesortreasuryshares.Therewereapproximately17,900sharesremainingavailableforgrant
underthe1999PlanasofMarch31,2005.
OnAugust23,2001,theshareholdersofActivisionapprovedtheActivision2001IncentivePlan,asamended(the“2001Plan”).The2001Planpermitsthegrantingof
“Awards”intheformofnon-qualifiedstockoptions,ISOs,SARs,restrictedstockawards,deferredstockawardsandothercommonstock-basedawardstodirectors,
officers, employees, consultants and others.Thetotalnumberofshares of common stock availablefor distributionunder the2001Plan is6,750,000.The2001 Plan
requiresavailablesharestoconsistinwholeorinpartofauthorizedandunissuedsharesortreasuryshares.Therewereapproximately284,500sharesremainingavailable
forgrantunderthe2001PlanasofMarch31,2005.
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Activision, Inc. — 2005 Annual Report
Notes to Consolidated Financial Statements