Vistaprint 2008 Annual Report Download - page 84

VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2008, 2007 and 2006
(in thousands, except share and per share data)
in full will no longer become available for the grant of new awards under the 2005 Plan; and prohibits
the repricing of any share options or share appreciation rights without shareholder approval. In
addition, the 2005 Plan provides that the number of common shares available for issuance under the
Plan will be reduced by (i) 1.56 common shares for each share subject to any restricted share award,
restricted share unit or other share-based award with a per share or per unit purchase price lower than
100% of the fair market value of the common shares on the date of grant and (ii) one common share
for each share subject to any other award under the 2005 Plan.
As of June 30, 2008, there were awards to purchase or acquire 4,163,921 common shares
outstanding under the 2005 Plan, 439,731 common shares had been issued upon exercise of options
granted under the 2005 Plan, and 2,529,878 common shares remained available for issuance under
the 2005 Plan.
While the Company may grant options to employees, officers, non-employee directors,
consultants and advisors which become exercisable at different times or within different periods, the
Company has generally granted options to employees, officers, consultants and advisors that are
exercisable on a cumulative basis, with 25% exercisable on the first anniversary of the date of grant,
and 6.25% quarterly thereafter. In addition, the Company has generally granted awards to
non-employee directors that are exercisable on a cumulative basis, with 8.33% exercisable each
quarter. Given these vesting rates, the requisite service period to achieve 100% vesting is normally
four years for employees and officers and three years for non-employee directors. The contractual life
of the options is ten years.
The Directors’ Plan provides for non-employee directors of the Company to receive option grants
upon initial appointment as a director and annually thereafter in connection with the Company’s annual
general meeting of shareholders if they are continuing to serve as a director at such time. Under the
Directors’ Plan, the Company reserved 250,000 shares for such awards. As of June 30, 2008, there
were 37,988 options outstanding under the Directors’ Plan and 212,012 shares available for future
grant under the Directors Plan.
A summary of the Company’s share option activity and related information for the year ended
June 30, 2008 is as follows:
Options
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
Outstanding at the beginning of the period ............ 4,424,927 $16.25
Granted ........................................... 576,443 34.77
Exercised ......................................... (628,188) 13.25
Forfeited/cancelled ................................. (69,575) 19.29
Outstanding at the end of the period ................. 4,303,607 $19.12 7.55 $41,940
Vested or expected to vest at the end of the period .... 4,206,922 $18.94 7.53 41,515
Exercisable at the end of the period .................. 2,079,605 $14.52 7.00 $27,133
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