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Stock Option Plan and Employee Stock Purchase Plan
12 Months Ended
Jul. 31, 2012
Stock Option Plan and Employee Stock Purchase Plan [Abstract]  
Stock Option Plan and Employee Stock Purchase Plan
(11) Stock Option Plan and Employee Stock Purchase Plan

We issue stock-based awards pursuant to the following plan:

2000 Stock Incentive Plan – The 2000 Stock Incentive Plan, as amended, provides for the granting to all employees and consultants of Comtech (including prospective employees and consultants) non-qualified stock options, SARs, restricted stock, restricted stock units (“RSUs”), stock units, performance shares, performance units and other stock-based awards. In addition, our employees are eligible to be granted incentive stock options. Our non-employee directors are eligible to receive non-discretionary grants of non-qualified stock options, restricted stock, RSUs, stock units and other stock-based awards, subject to certain limitations. The aggregate number of shares of common stock which may be issued may not exceed 8,962,500. Grants of incentive and non-qualified stock awards may not have a term exceeding ten years or, in the case of an incentive stock award granted to a stockholder who owns stock representing more than 10.0% of the voting power, no more than five years.

Stock options and SARs granted to date have exercise prices equal to the fair market value of our common stock on the date of grant. RSUs, stock units and performance shares, which are convertible into shares of our common stock, are initially valued at the closing fair market value of our common stock at the grant date.

As of July 31, 2012, we had granted stock-based awards representing the right to purchase and/or acquire an aggregate of 7,237,694 shares (net of 1,665,865 canceled awards), of which 3,506,484 were outstanding at July 31, 2012. Stock options and SARS were granted at prices ranging between $3.13 - $51.65. As of July 31, 2012, 3,731,210 stock-based awards have been exercised, of which 750 were SARs. No stock units, RSUs or performance shares have been converted as of July 31, 2012.

The following table summarizes certain stock option plan activity during the three years ended July 31, 2012:

 
 
Number of
Shares Underlying
Stock-Based Awards
 
Weighted Average
Exercise Price
 
Weighted Average
Remaining Contractual
Term (Years)
 
Aggregate
Intrinsic Value
Outstanding at July 31, 2009
 
3,065,245

 
$
33.26

 
 
 
 
Granted
 
653,000

 
28.90

 
 
 
 
Expired/canceled
 
(94,100
)
 
40.85

 
 
 
 
Exercised
 
(103,478
)
 
16.15

 
 
 
 
Outstanding at July 31, 2010
 
3,520,667

 
32.75

 
 
 
 
Granted
 
680,750

 
27.64

 
 
 
 
Expired/canceled
 
(481,364
)
 
35.79

 
 
 
 
Exercised
 
(139,885
)
 
20.29

 
 
 
 
Outstanding at July 31, 2011
 
3,580,168

 
31.86

 
 
 
 
Granted
 
471,609

 
26.26

 
 
 
 
Expired/canceled
 
(390,148
)
 
35.71

 
 
 
 
Exercised
 
(155,145
)
 
20.64

 
 
 
 
Outstanding at July 31, 2012
 
3,506,484

 
$
31.17

 
4.33
 
$
4,682,000

 
 
 
 
 
 
 
 
 
Exercisable at July 31, 2012
 
2,237,495

 
$
33.29

 
2.15
 
$
3,365,000

 
 
 
 
 
 
 
 
 
Vested and expected to vest at July 31, 2012
 
3,426,823

 
$
31.25

 
4.24
 
$
4,633,000



RSUs, stock units and performance shares are convertible into shares of our common stock, are subject to certain terms and restrictions, do not require the recipient to pay an exercise price and are not subject to expiration. As such, for these awards, the weighted average exercise price and the weighted average remaining contractual term reflected in the above table assumes a zero dollar exercise price and no expiration, respectively.

Included in the number of shares underlying stock-based awards outstanding at July 31, 2012, in the above table, are 26,000 SARs and, 410 stock units, all of which are vested, and 12,668 RSUs and 35,003 performance shares, all of which are unvested, with a combined aggregate intrinsic value of $1,314,000.

The total intrinsic value of stock-based awards exercised during the years ended July 31, 2012, 2011 and 2010 was $1,654,000, $1,177,000 and $1,671,000, respectively.

2001 Employee Stock Purchase Plan – The ESPP was approved by the shareholders on December 12, 2000, and 675,000 shares of our common stock were reserved for issuance. The ESPP is intended to provide our eligible employees the opportunity to acquire our common stock at 85% of fair market value at the date of issuance through participation in the payroll-deduction based ESPP. Through fiscal 2012, we issued 474,018 shares of our common stock to participating employees in connection with the ESPP.