the 2009 Annual Report (pdf) - PLX Technology

The Black-Scholes weighted average fair values of options granted during the years ended December 31, 2009,
2008 and 2007 were $1.20, $2.27 and $5.34, respectively.
The following table summarizes ranges of outstanding and exercisable options as of December 31, 2009:
Options Outstanding
Options Exercisable
Weighted Average
Remaining Weighted Weighted
Range of Contractual Term Average Average
Exercise Price Number (in years) Exercise Price Number Exercise Price
$1.25-$2.00………………… 878,039 6.10 $ 1.91
4,539 $ 1.44
$2.04-$3.22………………… 646,976 5.23 2.25 262,976 2.51
$3.27-$4.95………………… 592,000 5.77 4.10 172,161 4.03
$5.50-$10.21………………… 579,031 3.37 8.56 518,926 8.63
$10.46-$25.94……………… 129,750 3.11 13.98 118,440 14.24
Total………………………… 2,825,796 5.14 $ 4.36 1,077,042 $ 6.98
The total intrinsic value of options exercised during the year ended December 31, 2009 was approximately
$2,000. In 2008, the intrinsic value of options exercised was approximately $0.2 million. The fair value of options
vested during the year ended December 31, 2009 was approximately $5.6 million. As of December 31, 2009, total
unrecognized compensation costs related to nonvested stock options net of estimated forfeitures was $0.8 million
which is expected to be recognized as expense over a weighted average period of approximately 1.39 years.
Tender Offer
On March 31, 2009, the Company commenced an offer to purchase for cash certain outstanding options held by
its employees (including officers) and directors, and filed associated documents with the SEC under Schedule TO.
Options to purchase 3,262,809 shares of our common stock were eligible for purchase under the offer. Eligible
options must have had an exercise price of at least $5.50 and must have met other conditions set forth in the offer.
The amount of cash offered for eligible options was based on the Black-Scholes valuation of each eligible option,
subject to a minimum of $0.05 per share, and ranged from $0.05 to $1.42 per share.
On May 1, 2009, upon the closing of the offer, options to purchase 2,533,278 shares of the Company’s common
stock were validly tendered and not withdrawn, and the Company accepted the repurchase of these options. Each
eligible optionee who validly tendered eligible options pursuant to the offer to purchase received a cash payment in
the range of $0.05 to $1.42 per optioned share for an aggregate amount of $0.9 million. The Company recognized
$1.6 million in share-based compensation expenses associated with the acceleration of unamortized compensation
expenses on the previously unvested tendered options in the second quarter of 2009. The aggregate amount of the
payments made in exchange for eligible options was charged to stockholders' equity to the extent that the amount did
not exceed the fair value of the eligible options accepted for payment, as determined at the purchase date. The amount
paid in excess of that fair value of $16,000, as determined at the purchase date, was also recorded as compensation
expense.
The Company returned to its 2008 Equity Incentive Plan the first 400,000 shares underlying options purchased
pursuant to the offer that were originally issued under the 2008 plan or our 1999 Stock Incentive Plan. These options
have become available for future grant. The Company retired the remaining 2,133,278 tendered options.
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