Under Armour 2007 Annual Report Download - page 75

No further awards may be granted under the 2000 Plan. Stock options and restricted stock awards under the 2000
Plan generally vest ratably over a four to five year period. The exercise period for stock options generally does
not exceed five years from the date of grant. The Company generally receives a tax deduction for any ordinary
income recognized by a participant in respect to an award under the 2000 Plan.
Employee Stock Purchase Plan
The Company’s Board of Directors and stockholders approved the Company’s Employee Stock Purchase Plan
(the “ESPP”) in November 2005 effective as of January 1, 2006. The ESPP allows for the purchase of Class A
Common Stock by all eligible employees at a 15% discount from fair market value subject to certain limits as defined
in the ESPP. The maximum number of shares available under the ESPP is 1.0 million shares. During the year ended
December 31, 2007 and 2006, 22.1 thousand and 16.9 thousand shares were purchased under the ESPP, respectively.
2006 Non-Employee Director Compensation Plan and Deferred Stock Unit Plan
In April 2006, the Board of Directors adopted the Under Armour, Inc. 2006 Non-Employee Director
Compensation Plan (the “2006 Director Compensation Plan”) and the Under Armour, Inc. 2006 Non-Employee
Director Deferred Stock Unit Plan (the “2006 DSU Plan”), which were effective on May 31, 2006. The 2006
Director Compensation Plan provides for cash compensation and awards of stock options and restricted stock
units to non-employee directors of the Company under the 2005 Plan. Non-employee directors have the option to
defer the value of their annual cash retainers as deferred stock units in accordance with the 2006 DSU Plan. Each
new non-employee director receives an award of restricted stock units upon the initial election to the Board of
Directors, with the units covering stock valued at $0.1 million on the grant date and vesting in three equal annual
installments. In addition, each non-employee director receives, following each annual stockholders’ meeting, an
annual grant under the 2005 Plan of stock options to acquire stock with a value of $75.0 thousand as of the grant
date and an award of restricted stock units covering stock valued at $25.0 thousand on the grant date. Each award
vests 100% on the date of the next annual stockholders’ meeting following the grant date.
The receipt of the shares otherwise deliverable upon vesting of the restricted stock units automatically
defers into deferred stock units under the 2006 DSU Plan. Under the 2006 DSU Plan each deferred stock unit
represents the Company’s obligation to issue one share of the Company’s Class A Common Stock with the
shares delivered six months following the termination of the director’s service.
Stock Options
A summary of the Company’s stock options as of December 31, 2007, 2006, and 2005, and changes during
the years then ended is presented below:
Year Ended December 31,
2007 2006 2005
(In thousands, except per share amounts)
Number
of Stock
Options
Weighted
Average
Exercise
Price
Number
of Stock
Options
Weighted
Average
Exercise
Price
Number
of Stock
Options
Weighted
Average
Exercise
Price
Outstanding, beginning of year ............... 2,755 $ 6.19 4,215 $ 3.42 3,528 $ 1.11
Granted, at fair market value ................... 67 45.12 197 36.17 217 13.00
Granted, at below fair market value ............. — — — — 1,099 2.65
Granted, at above fair market value .............. — — — — 513 10.77
Exercised .................................. (660) 3.34 (1,292) 2.29 (1,139) 0.66
Forfeited ................................... (36) 10.42 (365) 4.12 (3) 2.65
Outstanding, end of year ..................... 2,126 $ 8.23 2,755 $ 6.19 4,215 $ 3.42
Options exercisable, end of year ............... 639 $ 5.70 665 $ 2.39 1,243 $ 1.17
65