Unum 2008 Annual Report Download - page 138

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In computing earnings per share assuming dilution, only potential common shares that are dilutive (those that reduce earnings per
share) are included. Potential common shares not included in the computation of dilutive earnings per share because their impact would
be antidilutive, based on current market prices, approximated 8.3 million, 6.2 million, and 8.2 million shares of common stock for the
years ended December 31, 2008, 2007, and 2006, respectively.
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Description of Stock Plans
Under the stock incentive plan of 2007, up to 35.00 million shares of common stock are available for awards to our employees, officers,
consultants, and directors. Awards may be in the form of stock options, stock appreciation rights, restricted stock, restricted stock units,
performance units, and other stock-based awards. Each full value award, defined as any award other than a stock option or stock appreciation
right, shall be counted as 2.7 shares.
The exercise price for stock options issued cannot be less than the fair market value of the underlying common stock as of the grant
date. Stock options have a maximum term of ten years after the date of grant and generally vest after three years. At December 31, 2008,
approximately 28.72 million shares were available for future grants.
Under the broad-based stock plan of 2002, up to 2.39 million shares of common stock were available for stock option awards to our
employees, officers, consultants, and brokers, excluding certain senior officers and directors. The plan was terminated in February 2004
for purposes of any further grants. The stock options have a maximum term of ten years after the date of grant and generally vest after
three years.
Under the broad-based stock plan of 2001, up to 2.00 million shares of common stock were available for stock option awards to our
employees, officers, consultants, and brokers, excluding certain senior officers and directors. The plan was terminated in December 2007
for purposes of any further grants, other than reload grants, for which 20,000 shares were available at December 31, 2008. The stock options
have a maximum term of ten years after the date of grant and generally vest after three years.
Under the stock plan of 1999, comprised of the Provident Companies, Inc. stock plan of 1999 and the UnumProvident Corporation
stock plan of 1999, an aggregate of up to 17.50 million shares of common stock were available for awards to our employees, officers,
brokers, and directors. Awards could be in the form of stock options, stock appreciation rights, stock awards, dividend equivalent awards,
or any other right or interest relating to stock. The plan was terminated in May 2007 for purposes of any further grants, other than reload
grants, for which 250,000 shares were available at December 31, 2008. Stock options have a maximum term of ten years after the date
of grant and generally vest after three years.
Substantially all of our employees are eligible to participate in an employee stock purchase plan (ESPP). Under the plan, up to 3.46 million
shares of common stock are authorized for issuance, of which approximately 1.46 million remain available for issuance at December 31, 2008.
Stock may be purchased at the end of each financial quarter at a purchase price of 85 percent of the lower of its beginning or end of quarter
market prices.
We issue new shares of common stock for nonvested stock grants, exercise of stock options, and purchase of ESPP shares.