TeleNav 2010 Annual Report Download - page 92

TELENAV, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Undesignated preferred stock
In October and December 2009, we received approval from our board of directors and stockholders,
respectively, to amend our certificate of incorporation upon the closing of our initial public offering to authorize
50,000,000 shares of undesignated preferred stock, par value $0.001 per share. In connection with the closing of
our initial public offering, we filed an amended and restated certificate of incorporation that removed the
previously authorized convertible preferred stock (after conversion of all such shares outstanding to common
stock) and authorized 50,000,000 shares of undesignated preferred stock, par value $0.001 per share. The
undesignated preferred stock may be issued from time to time at the discretion of our board of directors. As of
June 30, 2010, no shares of undesignated preferred stock were issued or outstanding.
Common stock
We are authorized to issue 600,000,000 shares of $0.001 par value stock. The holders of each share of
common stock have the right to one vote.
Common stock warrants
As of June 30, 2009, a warrant to purchase 20,833 shares of common stock remained outstanding at a
weighted-average exercise price of $3.30 per share. In connection with our initial public offering in May 2010,
the warrant was net exercised for 12,239 shares of our common stock. No warrants to purchase common stock
were outstanding as of June 30, 2010.
Stock option plans
Under our 1999 Stock Option Plan, or 1999 Plan, 2002 Executive Stock Option Plan, or 2002 Plan, and
2009 Equity Incentive Plan, or 2009 Plan, eligible employees, directors, and consultants are able to participate in
our future performance through awards of nonqualified stock options, incentive stock options and restricted stock
units through the receipt of such awards as authorized by our board of directors. Incentive stock options may be
granted only to employees to purchase our common stock at prices equal to or greater than the fair market value
on the date of grant. Nonqualified stock options to purchase our common stock may be granted at prices not less
than 85% of the fair market value on the date of grant. Options generally vest monthly over a four-year period
beginning from the date of grant and generally expire 10 years from the date of grant. Prior to our initial public
offering, we granted options outside of our stock option plans with terms substantially similar to the terms of
options granted under our plans.
On the first day of each of our fiscal years, beginning with the 2012 fiscal year, the number of shares
available and reserved for issuance under the 2009 Plan will be annually increased by an amount equal to the
least of 1,666,666 shares of common stock; 4% of the outstanding shares of our common stock as of the last day
of our immediately preceding fiscal year; or an amount determined by our board of directors.
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