Blizzard 2005 Annual Report Download - page 83

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Employee Stock Purchase Plans
On฀July฀22,฀2002,฀the฀Board฀of฀Directors฀approved฀the฀2002฀Employee฀Stock฀Purchase฀Plan฀for฀eligible฀domestic฀employees.฀The฀shareholders฀of฀Activision฀subsequently฀
approved฀ the฀2002฀ Employee฀ Stock฀Purchase฀Plan฀ on฀ September฀19,฀2002.฀ Then,฀on฀ February฀ 11,฀2003,฀the฀Board฀ of฀Directors฀approved฀ the฀ 2002฀ Employee฀ Stock฀
Purchase฀Plan฀For฀International฀Employees.฀The฀primary฀terms฀of฀the฀2002฀Employee฀Stock฀Purchase฀Plan฀and฀the฀2002฀Employee฀Stock฀Purchase฀Plan฀For฀International฀
Employees฀(collectively฀the฀“2002฀Purchase฀Plans”)฀are฀the฀same.฀Under฀the฀2002฀Purchase฀Plans,฀up฀to฀1,125,000฀shares฀of฀our฀common฀stock฀may฀be฀purchased฀by฀
eligible฀ employees฀ during฀ two฀ overlapping,฀ twelve-month฀ offering฀ periods฀ that฀ commence฀ each฀ April฀ 1฀ and฀ October฀ 1฀ (the฀ “Offering฀ Period”).฀ At฀ any฀ point฀ in฀ time,฀
employees฀may฀participate฀in฀only฀one฀Offering฀Period.฀The฀first฀day฀of฀each฀Offering฀Period฀is฀referred฀to฀as฀the฀“Offering฀Date.”฀Common฀stock฀is฀purchased฀by฀2002฀
Purchase฀Plans฀participants฀at฀85%฀of฀the฀lesser฀of฀fair฀market฀value฀on฀the฀Offering฀Date฀for฀the฀Offering฀Period฀that฀includes฀the฀common฀stock฀purchase฀date฀or฀the฀
fair฀ market฀ value฀ on฀ the฀ common฀ stock฀ purchase฀ date.฀ Employees฀ may฀ purchase฀ shares฀ having฀ a฀ value฀ not฀ exceeding฀ 15%฀ of฀ their฀ gross฀ compensation฀ during฀ an฀
Offering฀ Period,฀ limited฀ to฀ a฀ maximum฀ of฀ 15,000฀ common฀ shares฀ per฀ common฀ stock฀ purchase฀ date.฀ During฀ the฀ year฀ ended฀ March฀ 31,฀ 2005,฀ employees฀ purchased฀
approximately฀147,800,฀50,500฀and฀262,300฀shares฀at฀a฀price฀of฀$8.84,฀$5.29฀and฀$8.61฀per฀share,฀respectively,฀within฀the฀2002฀Purchase฀Plans’฀Offering฀Periods.฀During฀
the฀year฀ended฀March฀31,฀2004,฀employees฀purchased฀approximately฀323,100,฀80,000฀and฀340,400฀shares฀at฀a฀price฀of฀$4.11,฀$5.30฀and฀$4.11฀per฀share,฀respectively,฀
within฀the฀2002฀Purchase฀Plans’฀Offering฀Periods.
Activity of Employee and Director Options and Warrants
Activity฀of฀all฀employee฀and฀director฀options฀and฀warrants฀during฀the฀last฀three฀fiscal฀years฀was฀as฀follows฀(amounts฀in฀thousands,฀except฀weighted฀average฀exercise฀
price฀amounts):
2005 2004 2003
Shares
Wtd. Avg.
Ex. Price Shares
Wtd. Avg.
Ex. Price Shares
Wtd. Avg.
Ex. Price
Outstanding฀at฀beginning฀of฀year 48,851 $ 4.94 48,947 $4.76 38,591 $3.13
Granted 5,626 11.76 9,060 5.42 19,231 7.11
Exercised (16,625) 3.87 (6,113) 3.65 (7,567) 2.42
Forfeited (1,273) 3.79 (3,043) 6.05 (1,308) 4.33
Outstanding฀at฀end฀of฀year 36,579 $ 6.45 48,851 $4.94 48,947 $4.76
Exercisable฀at฀end฀of฀year 18,885 $ 5.22 26,133 $3.95 22,992 $3.22
For฀the฀years฀ended฀March฀31,฀2005,฀2004฀and฀2003,฀all฀options฀were฀granted฀at฀an฀exercise฀price฀equal฀to฀the฀fair฀market฀value฀on฀the฀date฀of฀grant.
page 82
Activision, Inc. — 2005 Annual Report
Notes to Consolidated Financial Statements