Dollar Tree 2008 Annual Report Download - page 46

44 DOLLAR TREE, INC. • 2008 ANNUAL REPORT
Notes to Consolidated Financial Statements continued
participant deferrals were approximately $1.5 million
and $2.5 million, respectively, at January 31, 2009 and
February 2, 2008, and are included in "other liabilities"
on the accompanying consolidated balance sheets. The
related assets are included in "other assets, net" on the
accompanying consolidated balance sheets. The
Company did not make any discretionary contribu-
tions in the years ended January 31, 2009, February 2,
2008, or February 3, 2007.
All of the employee benefit plans noted above
were adopted by Dollar Tree, Inc. on March 2, 2008 as
a part of the holding company reorganization. Refer
to Note 1 for a discussion of the holding company
reorganization.
NOTE 9 - STOCK-BASED COMPENSATION PLANS
At January 31, 2009, the Company has eight stock-
based compensation plans. Each plan and the account-
ing method are described below.
Fixed Stock Option Compensation Plans
Under the Non-Qualified Stock Option Plan (SOP),
the Company granted options to its employees for
1,047,264 shares of Common Stock in 1993 and
1,048,289 shares in 1994. Options granted under the
SOP have an exercise price of $0.86 and are fully
vested at the date of grant.
Under the 1995 Stock Incentive Plan (SIP), the
Company granted options to its employees for the pur-
chase of up to 12.6 million shares of Common Stock.
The exercise price of each option equaled the market
price of the Company's stock at the date of grant,
unless a higher price was established by the Board of
Directors, and an option's maximum term is 10 years.
Options granted under the SIP generally vested over a
three-year period. This plan was terminated on July 1,
2003 and replaced with the Company’s 2003 Equity
Incentive Plan, discussed below.
The Step Ahead Investments, Inc. Long-Term
Incentive Plan (SAI Plan) provided for the issuance of
stock options, stock appreciation rights, phantom stock
and restricted stock awards to officers and key
employees. Effective with the merger with 98 Cent
Clearance Center in December 1998 and in accor-
dance with the terms of the SAI Plan, outstanding 98
Cent Clearance Center options were assumed by the
Company and converted, based on 1.6818 Company
options for each 98 Cent Clearance Center option, to
options to purchase the Company's common stock.
Options issued as a result of this conversion were fully
vested as of the date of the merger.
Under the 1998 Special Stock Option Plan
(Special Plan), options to purchase 247,500 shares
were granted to five former officers of 98 Cent
Clearance Center who were serving as employees or
consultants of the Company following the merger. The
options were granted as consideration for entering into
non-competition agreements and a consulting agree-
ment. The exercise price of each option equaled the
market price of the Company's stock at the date of
grant, and the options' maximum term was 10 years.
Options granted under the Special Plan vested over a
five-year period. As of January 31, 2009, all of these
options have been exercised or have expired.
The EIP replaces the Company's SIP discussed
above. Under the EIP, the Company may grant up to
6.0 million shares of its Common Stock, plus any
shares available for future awards under the SIP, to the
Company’s employees, including executive officers
and independent contractors. The EIP permits the
Company to grant equity awards in the form of stock
options, stock appreciation rights and restricted stock.
The exercise price of each stock option granted equals
the market price of the Company’s stock at the date
of grant. The options generally vest over a three-year
period and have a maximum term of 10 years.
The EOEP is available only to the Chief
Executive Officer and certain other executive officers.
These officers no longer receive awards under the EIP.
The EOEP allows the Company to grant the same
type of equity awards as does the EIP. These awards
generally vest over a three-year period, with a maxi-
mum term of 10 years.
Stock appreciation rights may be awarded alone
or in tandem with stock options. When the stock
appreciation rights are exercisable, the holder may sur-
render all or a portion of the unexercised stock appre-
ciation right and receive in exchange an amount equal
to the excess of the fair market value at the date of
exercise over the fair market value at the date of the
grant. No stock appreciation rights have been granted
to date.
Any restricted stock or RSUs awarded are subject
to certain general restrictions. The restricted stock
shares or units may not be sold, transferred, pledged or
disposed of until the restrictions on the shares or units
have lapsed or have been removed under the provi-
sions of the plan. In addition, if a holder of restricted