Under Armour 2005 Annual Report Download - page 62

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Under Armour, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements—(Continued)
(amounts in thousands, except per share and share amounts)
As of December 31, 2005, the Company has available state tax credits of $2,391 that can be carried forward
for thirteen to fourteen year periods.
11. Stock Compensation Plans
2005 Stock Compensation Plan
Approved in November 2005, the 2005 Stock Compensation Plan (the “2005 Plan”) provides for the
issuance of 2,700,000 shares of stock rights to employees and non-employees. The 2005 Plan may be amended,
suspended, or terminated, contingent on approval from our stockholders, as to any shares of stock as to which
awards have not been made.
The stock rights available under the 2005 Plan include incentive stock options, non-qualified stock options,
stock appreciation rights, restricted stock, restricted stock units, unrestricted stock grants, dividend equivalent
rights and performance and annual incentive awards. Generally, grants of these stock rights vest ratably over a
two to five year period. The exercise period for all stock options generally may not exceed five years from the
date of grant. The Company will generally receive a tax deduction for any ordinary income recognized by a
participant in respect of an award under the 2005 Plan. In the case of incentive stock options that meet certain
holding period requirements, the grantee will not recognize ordinary income; therefore, the Company will not
receive a deduction.
The 2005 Plan terminates in 2015, ten years after initiation. The 2005 Plan supersedes the 2000 Stock
Compensation Plan (the “2000 Plan”) and remaining shares available for issuance under the 2000 Plan were
cancelled. As of December 31, 2005, 2,442,900 shares of stock rights are reserved and available to be granted
under the 2005 Plan.
2000 Stock Compensation Plan
Approved in March 2000, the 2000 Stock Compensation Plan (the “2000 Plan”) provided for the issuance of
shares of stock rights to employees and non-employees. The 2000 Plan could be modified or terminated at any
time, contingent on approval from stockholders based on certain requirements, as to any shares of stock as to
which awards have not been made. The 2000 Plan was terminated and superseded by the 2005 Plan upon the
Company’s November 2005 initial public offering.
The stock rights available under the 2000 Plan previously included incentive stock options, non-qualified
stock options, stock appreciation rights and restricted stock awards. Generally, grants of these stock rights vested
ratably over a two to five year period. The exercise period for all stock options generally did not exceed five
years from the date of grant. The Company generally did not receive a tax deduction for any ordinary income
recognized by a participant in respect of an award under the 2000 Plan. In the case of incentive stock options that
meet certain holding period requirements, the grantee did not recognize ordinary income; therefore, the Company
did not receive a deduction.
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