Netgear 2009 Annual Report Download - page 89

Table of Contents
The following table sets forth the total stock-based compensation expense resulting from stock options, restricted stock awards, and the
Employee Stock Purchase Plan included in the Company’s Consolidated Statements of Operations (in thousands):
The Company recognizes these compensation costs net of the estimated forfeitures on a straight-line basis over the requisite service period
of the award, which is generally the option vesting term of four years.
Total stock-based compensation cost capitalized in inventory was less than $250,000 in each of the years ended December 31, 2009, 2008,
and 2007.
As of December 31, 2009, the Company has the following share-based compensation plans:
2000 Stock Option Plan
In April 2000, the Company adopted the 2000 Stock Option Plan (the “2000 Plan”). The 2000 Plan provides for the granting of stock
options to employees and consultants of the Company. Options granted under the 2000 Plan may be either incentive stock options (“ISOs”) or
nonqualified stock options (“NSOs”). ISOs may be granted only to Company employees (including officers and directors who are also
employees). NSOs may be granted to Company employees, directors and consultants. A total of 7,350,000 shares of Common Stock have been
reserved for issuance under the 2000 Plan.
Options under the 2000 Plan may be granted for periods of up to ten years, provided, however, that (i) the exercise price of an ISO and
NSO shall not be less than the estimated fair value of the underlying stock on the date of grant and (ii) the exercise price of an ISO and NSO
granted to a 10% shareholder shall not be less than 110% of the estimated fair value of the underlying stock on the date of grant. To date, options
granted generally vest over four years.
2003 Stock Plan
In April 2003, the Company adopted the 2003 Stock Plan (the “2003 Plan”). The 2003 Plan provides for the granting of stock options to
employees and consultants of the Company. Options granted under the 2003 Plan may be either ISOs or NSOs. ISOs may be granted only to
Company employees (including officers and directors who are also employees). NSOs may be granted to Company employees, directors and
consultants. The Company has reserved 750,000 shares of Common Stock plus any shares which were reserved but not issued under the 2000
Plan as of the date of the approval of the 2003 Plan. The number of shares which were reserved but not issued under the 2000 Plan that were
transferred to the Company’s 2003 Plan were 615,290, which when combined with the shares reserved for the Company’s 2003 Plan total
1,365,290 shares reserved under the Company’s 2003 Plan as of the date of transfer. Any options cancelled under either the 2000 Plan or the
2003 Plan are returned to the pool available for grant. As of December 31, 2009, 249,451 shares were reserved for future grants under the
Company’s 2003 Plan.
Options under the 2003 Plan may be granted for periods of up to ten years, provided, however, that (i) the exercise price of an ISO and
NSO shall not be less than the estimated fair value of the underlying stock on the
87
Year Ended December 31,
2009 2008 2007
Cost of revenue
$
959
$
864
$
633
Research and development
1,973
3,218
2,391
Sales and marketing
4,147
3,406
3,013
General and administrative
3,945
3,835
2,842
$
11,024
$
11,323
$
8,879