Stock-Based Incentive Plan

9 Months Ended

Sep. 30, 2011

Stock-Based Incentive Plan

Stock-Based Incentive Plan

5. Stock-Based Incentive Plan

Mylan's shareholders have approved the 2003 Long-Term Incentive Plan (as amended, the "2003 Plan"). Under the 2003 Plan, 37,500,000 shares of common stock are reserved for issuance to key employees, consultants, independent contractors and non-employee directors of Mylan through a variety of incentive awards, including: stock options, stock appreciation rights, restricted shares and units, performance awards, other stock-based awards and short-term cash awards. Stock option awards are granted at the fair value of the shares underlying the options at the date of the grant, generally become exercisable over periods ranging from three to four years, and generally expire in ten years. Pursuant to the 2003 Plan, no more than 8,000,000 shares may be issued as restricted shares, restricted units, performance shares and other stock-based awards.

Upon approval of the 2003 Plan, no further grants of stock options have been made under any other plan. However, there are stock options outstanding from frozen or expired plans and other plans assumed through acquisitions.

The following table summarizes stock option activity:

	Number of Shares Under Option			Weighted Average Exercise Price per Share
Outstanding at December 31, 2010		23,840,049		$	15.99
Options granted		4,548,178			22.63
Options exercised		(4,325,376	)		15.12
Options forfeited		(472,966	)		18.21
Outstanding at September 30, 2011		23,589,885		$	17.39
Vested and expected to vest at September 30, 2011		22,491,500		$	17.29
Options exercisable at September 30, 2011		15,594,369		$	16.03

As of September 30, 2011, options outstanding, options vested and expected to vest, and options exercisable had average remaining contractual terms of 6.10 years, 5.98 years and 4.71 years, respectively. Also at September 30, 2011, options outstanding, options vested and expected to vest and options exercisable had aggregate intrinsic values of $35.5 million, $34.3 million and $29.2 million, respectively.

A summary of the status of the Company's nonvested restricted stock and restricted stock unit awards, including performance based restricted stock, as of September 30, 2011 and the changes during the nine months ended September 30, 2011 are presented below:

	Number of Restricted Stock Awards			Weighted Average Grant-Date Fair Value per Share
Nonvested at December 31, 2010		2,339,410		$	15.36
Granted		1,147,408			22.70
Released		(1,120,910	)		13.19
Forfeited		(59,584	)		16.64
Nonvested at September 30, 2011		2,306,324		$	20.03

As of September 30, 2011, the Company had $57.3 million of total unrecognized compensation expense, net of estimated forfeitures, related to all of its stock-based awards, which will be recognized over the remaining weighted average period of 1.85 years. The total intrinsic value of stock-based awards exercised and restricted stock units converted during the nine months ended September 30, 2011 and September 30, 2010 was $61.2 million and $32.6 million.