8x8 2010 Annual Report Download - page 65

Significant option groups outstanding at March 31, 2010 and related weighted average exercise price and contractual life
information for 8x8, Inc.'s stock option plans are as follows:
Weighted Weighted Weighted
Average Average Average
Exercise Remaining Aggregate Exercise Aggregate
Price Contractual Intrinsic Price Intrinsic
Shares Per Share Life (Years) Value Shares Per Share Value
$ 0.55 to $ 1.18 2,041,762 $ 0.91 6.8 $ 1,094 2,041,762 $ 0.91 $ 1,094
$ 1.19 to $ 1.32 2,116,500 $ 1.27 6.9 383 2,116,500 $ 1.27 383
$ 1.33 to $ 1.72 1,866,710 $ 1.58 5.1 12 1,866,710 $ 1.58 12
$ 1.73 to $2.31 1,987,431 $ 1.89 2.7 - 1,987,431 $ 1.89 -
$2.32 to $14.94 1,255,000 $ 5.03 2.0 - 1,255,000 $ 5.03 -
9,267,403 $ 1,489 9,267,403 $ 1,489
Options Exercisable Options Outstanding
The Company recognized stock compensation expense in fiscal 2010, 2009 and 2008 of $204,000, $3,295,000 and $1,272,000,
respectively.
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the
closing stock price of the Company’s common stock on March 31, 2010 and the exercise price for in-the-money options) that
would have been received by the option holders if all in-the-money options had been exercised on March 31, 2010.
The total intrinsic value of options exercised in the years ended March 31, 2010, 2009 and 2008 were $70,000, $49,000 and
$9,000, respectively. As of March 31, 2010, there was $249,000 of unamortized stock-based compensation expense related to
unvested stock awards which is expected to be recognized over a weighted average period of 3.26 years.
Cash received from option exercises and purchases of shares under the Purchase Plan for the years ended March 31, 2010,
2009 and 2008 were $0.4 million, $0.3 million and $0.3 million, respectively. The total tax benefit attributable to stock options
exercised in the year ended March 31, 2010 was $0.
The Company did not recognize and does not expect to recognize in the near future any tax benefit related to employee stock-
based compensation cost as a result of the full valuation allowance on its net deferred tax assets and because of its net operating
loss carryforwards.
1996 Employee Stock Purchase Plan
The Company's 1996 Stock Purchase Plan (the Purchase Plan) was adopted in June 1996 and became effective upon the
closing of the Company's initial public offering in July 1997. The Company suspended the Purchase Plan in 2003 and
reactivated the Plan in fiscal 2005. Under the Purchase Plan, 500,000 shares of common stock were initially reserved for
issuance. At the start of each fiscal year, the number of shares of common stock subject to the Purchase Plan increases so that
500,000 shares remain available for issuance. During fiscal 2010, 2009 and 2008, 499,969, 424,470 and 273,229 shares,
respectively, were issued under the Purchase Plan. In May 2006, the Board approved a ten-year extension of the Purchase Plan
so that it would be effective until 2017. Stockholders approved a ten-year extension of the Purchase Plan at the 2006 Annual
Meeting of Stockholders held September 18, 2006. The Purchase Plan is effective until 2017.
The Purchase Plan permits eligible employees to purchase common stock through payroll deductions at a price equal to 85% of
the fair market value of the common stock at the beginning of each two year offering period or the end of a six month purchase
period, whichever is lower. When the Purchase Plan was reinstated in fiscal 2005, the offering period was reduced from two
years to one year. The contribution amount may not exceed ten percent of an employee's base compensation, including
commissions, but not including bonuses and overtime. In the event of a merger of the Company with or into another
corporation or the sale of all or substantially all of the assets of the Company, the Purchase Plan provides that a new exercise
date will be set for each option under the plan which exercise date will occur before the date of the merger or asset sale.
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