TiVo 2006 Annual Report Download - page 91

Table of Contents
Warrants
During the fiscal years ended January 31, 2007, 2006, and 2005 there were no new common stock warrants issued, and no warrants remain outstanding
as of January 31, 2007.
In February 2004, Global Alliance Partners exercised two of their three-year warrants to purchase 15,000 shares in a cashless exercise that resulted in
the net issuance of 10,886 shares of the Company's common stock. Additionally, NBC, a related party, exercised their five-year warrant to purchase 490,196
shares in a cashless exercise that resulted in the net issuance of 167,373 shares of the Company's common stock. NBC was issued this warrant in conjunction
with the issuance of the convertible notes payable in August 2001. DIRECTV was issued 155,941 two-year warrants in April 2002 in conjunction with the
Warrant and Registration Rights Agreement. These warrants were transferred by DIRECTV to their parent company, Hughes Electronics Corporation. In
March 2004, Hughes Electronics Corporation exercised warrants to purchase 149,291 shares in a cashless exercise that resulted in the net issuance of 63,233
shares of the Company's common stock. The remaining 6,650 warrants expired, unexercised on April 16, 2004.
On August 28, 2001, five-year warrants were issued to convertible noteholders and bankers to purchase 2,192,404 shares of TiVo's common stock at an
exercise price of $7.85. On August 28, 2006, several of these warrant holders exercised their warrants resulting in the issuance of 424,150 shares of TiVo's
common stock, pursuant to the terms of the agreement, and net proceeds of approximately $3.3 million. The balance of the warrants that would have resulted
in the issuance of 1,768,254 shares of TiVo Inc. common stock expired unexercised.
In September 2006, institutional investors exercised warrants to purchase 1,323,120 shares in a cashless exercise, resulting in the issuance of 484,166
shares of the Company's common stock.
During the fiscal year ended January 31, 2006, certain institutional investors exercised three-year warrants to purchase 1,323,120 shares in a cashless
exercise, resulting in the net issuance of 338,190 shares of the Company's common stock.
10. EQUITY INCENTIVE PLANS
1997 Equity Incentive Plan
Under the terms of the Company's 1997 Equity Incentive Plan, adopted in 1997 and amended and restated in 1999 (the "1997 Plan"), options to
purchase shares of the Company's common stock may be granted to employees and other individuals at a price equal to the fair market value of the common
stock at the date of grant. The options granted to new hires typically vest 25% after the first year of service, and the remaining 75% vest ratably over the next
36 months. The vesting periods for options granted to continuing employees vary, but typically vest monthly over a 48 month period. Options expire 10 years
after the grant date, based on continued service. If the optionee's service terminates, options expire 90 days from the date of termination except under certain
circumstances such as death or disability. The terms of the 1997 Plan allowed individuals to exercise options prior to full vesting. The number of shares
authorized for option grants under the 1997 Plan is 4,000,000. As of January 31, 2007, 475,430 shares of the total authorized remain available for future
grants.
1999 Equity Incentive Plan
In April 1999, the Company's stockholders approved the 1999 Equity Incentive Plan (the "1999 Plan"). Amendments to the 1999 Plan were adopted in
July 1999. The 1999 Plan permits the granting of incentive stock options, non-statutory stock options, non-vested stock awards (also known as restricted
stock), stock appreciation rights, performance-based awards, and stock purchase rights. The 1999 Plan allows the grant of options to purchase shares of the
Company's common stock to employees and other individuals at a price equal to the fair market value of the common stock at the date of grant. The options
granted to new employees typically vest 25% after the first year of service, and the remaining 75% vest monthly over the next 36 months. The vesting period
for options granted to continuing employees may vary, but typically vest monthly over a 48 month period. Options expire 10 years after the grant date, based
on continued service. If the optionee's service terminates,
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