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Form 10-K
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 Company has issued a combination of new shares and treasury shares in fulfillment of
option exercises and restricted share award vests for periods through June 30, 2010.
A summary of the Company’s share option activity and related information for the year ended
June 30, 2010 is as follows:
Options
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
Outstanding at the beginning of the
period . . . . . . . . . . . . . . . . . . . . . 3,521,636 $ 20.41
Granted . . . . . . . . . . . . . . . . . . . . . . 136,004 $ 48.65
Exercised . . . . . . . . . . . . . . . . . . . . (783,085) $ 19.13
Forfeited/cancelled. . . . . . . . . . . . . . (16,055 ) $ 34.13
Outstanding at the end of the
period . . . . . . . . . . . . . . . . . . . . . 2,858,500 $ 22.03 6.09 $ 72,947
Vested or expected to vest at the
end of the period . . . . . . . . . . . . . 2,817,501 $ 21.78 6.05 $ 72,593
Exercisable at the end of the
period . . . . . . . . . . . . . . . . . . . . . 2,239,000 $ 18.09 5.51 $ 65,843
The intrinsic value in the table above represents the total pre-tax amount, net of exercise price,
which would have been received by option holders if all option holders had exercised all options with
an exercise price lower than the market price on June 30, 2010.
A summary of the Company’s unvested restricted share unit activity and related information for
the fiscal year ended June 30, 2010 is as follows:
Restricted
Share Units
Weighted
Average
Grant Date
Fair Value
Unvested at the beginning of the period . . . . . . . . . . . . . . . . . . . . . . . 991,106 $ 30.77
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,507 51.06
Vested and distributed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (388,292) 31.44
Forfeited/cancelled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (73,521) 33.31
Unvested at the end of the period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 848,800 $ 38.96
The Company had an aggregate of 1,965,351 ordinary shares available for future awards
under all of its share-based compensation plans as of June 30, 2010.
The total fair value of shares vested during the fiscal year ended June 30, 2010, 2009 and
2008 was $19,456, $12,589, and $9,813, respectively. The total intrinsic value of options exercised
during the fiscal years ended June 30, 2010, 2009 and 2008 was $26,667, $15,203, and $16,870,
respectively.
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