8x8 2016 Annual Report Download - page 75

2003ContactualPlan
In the second fiscal quarter of 2012, the Company assumed the Amended and Restated Contactual, Inc. 2003 Stock Option Plan (the "2003 Contactual Plan") and
registered an aggregate of 171,974 shares of the Company's common stock that may be issued upon the exercise of stock options previously granted under the 2003
Contactual Plan and assumed by the Company when it acquired Contactual. No new stock options or other awards can be granted under 2003 Contactual Plan.
2012EquityIncentivePlan
In June 2012, the Company's board of directors approved the 2012 Equity Incentive Plan ("2012 Plan"). The Company's stockholders subsequently adopted the
2012 Plan in July 2012, and the 2012 Plan became effective in August 2012. The Company reserved 4,100,000 shares of the Company's common stock for
issuance under this plan. In August 2014, the 2012 Plan was amended to allow for an additional 6,800,000 shares reserved for issuance. As of March 31, 2016,
3,164,029 shares remained available under the 2012 Plan. The 2012 Plan provides for granting incentive stock options to employees and nonstatutory stock
options to employees, directors or consultants, and granting of stock appreciation rights, restricted stock, restricted stock units and performance units, qualified
performance-based awards and stock grants. The stock option price of incentive stock options granted may not be less than the fair market value on the effective
date of the grant. Other types of options and awards under the 2012 Plan may be granted at any price approved by the administrator, which generally will be the
compensation committee of the board of directors. Options, restricted stock and restricted stock units generally vest over four years and expire ten years after grant.
The 2012 Plan expires in June 2022.
2013NewEmployeeInducementIncentivePlan
In September 2013, the Company's board of directors approved the 2013 New Employee Inducement Incentive Plan ("2013 Plan"). The Company reserved
1,000,000 shares of the Company's common stock for issuance under this plan. In November 2014, the 2013 Plan was amended to allow for an additional
1,200,000 shares reserved for issuance. In July 2015, the Plan was amended to allow for an additional 1,200,000 shares reserved for issuance. As of March 31,
2016, 700,021 shares remained available for future grants under the 2013 Plan. The 2013 Plan provides for granting nonstatutory stock options, stock appreciation
rights, restricted stock, restricted stock and performance units and stock grants solely to newly hired employees as a material inducement to accepting employment
with the Company. Options are granted at market value on the grant date under the 2013 Plan, unless determined otherwise at the time of grant by the
administrator, which generally will be the compensation committee of the board of directors. Options, generally expire ten years after grant. The 2013 Plan expires
in September 2023.
Stock-BasedCompensation
The following table summarizes stock-based compensation expense (in thousands):
Years Ended March 31,
2016 2015 2014
Cost of service revenue $ 1,159 $ 692 $ 372
Cost of product revenue - - -
Research and development 2,914 1,495 967
Sales and marketing 6,133 3,748 2,217
General and administrative 6,128 3,412 4,039
Total stock-based compensation expense
related to employee stock options
and employee stock purchases, pre-tax 16,334 9,347 7,595
Tax benefit - - -
Stock based compensation expense related to
employee stock options and employee
stock purchases, net of tax $ 16,334 $ 9,347 $ 7,595
70