Blizzard 2009 Annual Report Download - page 83
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ourBoardofDirectorstoprovideequitybasedcompensationintheformofstockoptions,share
appreciationrights,restrictedstock,restrictedstockunits,performanceshares,performanceunitsandother
performanceorvaluebasedawardsstructuredbytheCompensationCommitteewithinparametersset
forthinthe2008Plan,includingcustomawardsthataredenominatedorpayablein,valuedinwholeorin
partbyreferenceto,orotherwisebasedonorrelatedto,sharesofourcommonstock,orfactorsthatmay
influencethevalueofourcommonstockorthatarevaluedbasedonourperformanceortheperformance
ofanyofoursubsidiariesorbusinessunitsorotherfactorsdesignatedbytheCompensationCommittee,as
wellasincentivebonuses,forthepurposeofprovidingincentivesandrewardsforperformancetothe
directors,officers,andemployeesof,andconsultantsto,ActivisionBlizzardanditssubsidiaries.
WhiletheCompensationCommitteehasbroaddiscretiontocreateequityincentives,ourequity
basedcompensationprogramforthemostpartcurrentlyutilizesacombinationofoptionsandrestricted
stockunits.Suchawardsgenerallyhavetimebasedvestingschedules,vestingannuallyoverperiodsof
threetofiveyears,orvestintheirentiretyonananniversaryofthedateofgrant,subjecttopossibleearlier
vestingifcertainperformancemeasuresaremet,andallsuchawardswhichareoptionsgenerallyexpireten
yearsfromthegrantdate.Inaddition,underthetermsofthe2008Plan,theexercisepricefortheoptions
mustbeequaltoorgreaterthantheclosingpricepershareofourcommonstockonthedatetheawardis
granted,asreportedonNASDAQ.
Upontheeffectivedateofthe2008Plan,weceasedtomakeawardsunderthefollowingequity
incentiveplans(collectively,the“PriorPlans”),althoughsuchplanswillremainineffectandcontinueto
governoutstandingawards:(i)Activision,Inc.1998IncentivePlan,asamended;(ii)Activision,Inc.
1999IncentivePlan,asamended;(iii)Activision,Inc.2001IncentivePlan,asamended;
(iv)Activision,Inc.2002IncentivePlan,asamended;(v)Activision,Inc.2002ExecutiveIncentivePlan,
asamended;(vi)Activision,Inc.2002StudioEmployeeRetentionIncentivePlan,asamended;
(vii)Activision,Inc.2003IncentivePlan,asamended;and(viii)Activision,Inc.2007IncentivePlan.
Pursuanttothe2008Planasadopted,30millionsharesofourcommonstockweremadeavailable
forissuance.The2008planwasamendedwithstockholderapprovalonDecember17,2009toincreasethe
numberofsharesofourcommonstockavailableforissuancethereunderby14million.Thenumberof
sharesofourcommonstockreservedforissuanceunderthe2008Planmaybefurtherincreasedfromtime
totimeby:(i)thenumberofsharesrelatingtoawardsoutstandingunderanyPriorPlanthat:(a)expire,or
areforfeited,terminatedorcancelled,withouttheissuanceofshares;(b)aresettledincashinlieuof
shares;or(c)areexchanged,priortotheissuanceofsharesofourcommonstock,forawardsnotinvolving
ourcommonstock;and(ii)iftheexercisepriceofanyoptionoutstandingunderanyPriorPlanis,orthetax
withholdingrequirementswithrespecttoanyawardoutstandingunderanyPriorPlanare,satisfiedby
withholdingsharesotherwisethendeliverableinrespectoftheawardortheactualorconstructivetransfer
totheCompanyofsharesalreadyowned,thenumberofsharesequaltothewithheldortransferredshares.
AtDecember31,2009,wehadapproximately16millionsharesofourcommonstockreservedforfuture
issuanceunderthe2008Plan.Sharesissuedinconnectionwithawardsmadeunderthe2008Planare
generallyissuedasnewstockissuances.
ModificationofAwardsthroughBusinessCombination
AsaresultofthereverseacquisitionaccountingtreatmentfortheBusinessCombination,
previouslyissuedActivision,Inc.stockoptionsandrestrictedstockawardsgrantedtoemployeesand
directorsthatwereoutstandingandunvestedatthedateoftheBusinessCombination,wereaccountedfor
asanexchangeofawards.Thefairvalueoftheoutstandingvestedandunvestedawardswasmeasuredon
thedateoftheacquisition,andforunvestedawardswhichrequireservicesubsequenttothedateofthe
BusinessCombination,aportionoftheawards’fairvalueshavebeenallocatedtofutureserviceandwillbe
recognizedovertheremainingfuturerequisiteserviceperiod.
EmployeeStockPurchasePlan
TheEmployeeStockPurchasePlanwasterminatedbytheBoardofDirectorsandtherewereno
furtherpurchasesthereunderafterOctober1,2008.EffectiveOctober1,2005,theBoardofDirectorsof
Activision,Inc.approvedtheActivision,Inc.ThirdAmendedandRestated2002EmployeeStockPurchase