QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
is no balance related to the forward contracts in other comprehensive income. During the year ended
December 31, 2009, losses of $0.8 million were recorded in income in connection with the settled contracts, and
at December 31, 2009, there was a loss of $0.4 million in other comprehensive income related to the forward
contracts.
Effectiveness testing related to these cash flow hedges was performed at the end of each quarter while they
were outstanding. Any ineffective portion of these contracts was reclassified into earnings if the derivatives were
no longer deemed to be cash flow hedges. For the years ended December 31, 2010 and 2009, a nominal portion
of the forward contracts were considered ineffective.
11. EQUITY-BASED COMPENSATION:
Stock Incentive Plans
On May 19, 2011, Quanta’s stockholders approved the Quanta Services, Inc. 2011 Omnibus Equity
Incentive Plan (the 2011 Plan). The 2011 Plan provides for the award of non-qualified stock options, incentive
(qualified) stock options (ISOs), stock appreciation rights, restricted stock awards, restricted stock units (RSUs),
stock bonus awards, performance compensation awards (including cash bonus awards) or any combination of the
foregoing. The purpose of the 2011 Plan is to provide participants with additional performance incentives by
increasing their proprietary interest in Quanta. Employees, directors, officers, consultants or advisors of Quanta
or its affiliates are eligible to participate in the 2011 Plan, as are prospective employees, directors, officers,
consultants or advisors of Quanta who have agreed to serve Quanta in those capacities. An aggregate of
11,750,000 shares of Quanta common stock may be issued pursuant to awards granted under the 2011 Plan.
Additionally, pursuant to the Quanta Services, Inc. 2007 Stock Incentive Plan (the 2007 Plan), which was
adopted on May 24, 2007, Quanta may award restricted common stock, incentive stock options and non-qualified
stock options to eligible employees, directors, and certain consultants and advisors. An aggregate of 4,000,000
shares of common stock may be issued pursuant to awards granted under the 2007 Plan. Quanta also has a
Restricted Stock Unit Plan (the RSU Plan), pursuant to which RSUs may be awarded to certain employees and
consultants of Quanta’s Canadian operations.
Equity awards also remain outstanding under a prior plan adopted by Quanta, as well as under plans
assumed by Quanta in connection with its acquisition of InfraSource Services, Inc. in 2007. While no further
awards may be made under these plans, the awards outstanding under the plans continue to be governed by their
terms. These plans, together with the 2011 Plan, the 2007 Plan and the RSU Plan, are referred to as the Plans.
The Plans are administered by the Compensation Committee of the Board of Directors of Quanta. The
Compensation Committee has, subject to applicable regulation and the terms of the Plans, the authority to grant
awards under the Plans, to construe and interpret the Plans and to make all other determinations and take any and
all actions necessary or advisable for the administration of the Plans. The Board also delegated to the Equity
Grant Committee, a committee of the Board consisting of one or more directors, the authority to grant limited
awards to eligible persons who are not executive officers or non-employee directors.
Stock Options
Awards in the form of stock options are exercisable during the period specified in each stock option
agreement and generally become exercisable in installments pursuant to a vesting schedule designated by the
Compensation Committee or, if applicable, the Equity Grant Committee. No option will remain exercisable later
than 10 years after the date of award (or five years in the case of ISOs awarded to employees owning more than
10% of Quanta’s voting capital stock). The exercise price for ISOs awarded under the 2011 and 2007 Plans may
be no less than the fair market value of a share of common stock on the date of award (or 110% in the case of
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