8. EMPLOYEE BENEFIT PLANS

Stock Option Plans

In connection with the Company’s Stock Option Plans, at July 31, 2014, 4,675,582 shares were available for future grant under the 2010 Plan. No shares were available for future grant under any of the other Company Stock Option Plans. The Company’s general practice has been to issue new shares upon the exercise of stock options or vesting of RSUs.

For the fiscal years ended July 31, 2014, 2013 and 2012 the Company’s stock option activity is as follows:


	2014					2013					2012
	Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price		Number of Shares			Weighted Average Exercise Price
Options outstanding, beginning of year		950,554		$	22.88		1,242,471		$	21.87		1,739,275		$	25.04
Exercised		(69,641	)		5.84		(2,449	)		5.55		(20,046	)		5.77
Forfeited		(405,039	)		34.97		(289,468	)		18.71		(476,758	)		34.09

Options outstanding, end of year		475,874		$	15.08		950,554		$	22.88		1,242,471		$	21.87

Options exercisable		475,874		$	15.08		950,554		$	22.88		1,242,471		$	21.87

The intrinsic value of options exercised during the years ended July 31, 2014, 2013 and 2012 was $207,708, $1,307, and, $26,160, respectively.

As of July 31, 2014, the status of the Company’s outstanding and exercisable stock options is as follows:


Options Outstanding							Options Exercisable
Range of Exercise Price ($)	Number Outstanding (#)		Weighted Average Remaining Contractual Life (yrs)		Weighted Average Exercise Price ($)		Number Exercisable (#)		Weighted Average Exercise Price ($)
$ 0.00 – 13.88		181,413		2.39	$	9.03		181,413	$	9.03
13.90 – 26.81		294,461		0.38		18.81		294,461		18.81

		475,874		1.15	$	15.08		475,874	$	15.08

Intrinsic value at July 31, 2014	$	171,042					$	171,042

Restricted Stock Units (“RSUs”)

For the years presented, the Company granted RSU’s to certain executives, directors and employees, with vesting terms ranging from one to four years:


	Year Ended July 31,
	2014		2013		2012
Total awards		1,109,100		895,900		939,600
Executives only		445,000		390,000		465,000

For the fiscal years ended July 31, 2014, 2013, and 2012 the status of the Company’s outstanding RSUs is as follows:


	2014					2013					2012
	Number of Shares			Weighted Average Grant-Date Fair Value		Number of Shares			Weighted Average Grant-Date Fair Value		Number of Shares			Weighted Average Grant-Date Fair Value
RSUs outstanding, beginning of year		1,968,690		$	5.98		1,848,598		$	5.81		1,678,108		$	5.64
Granted		1,109,100			7.31		895,900			5.82		939,600			6.04
Vested		(786,360	)		5.94		(754,556	)		5.39		(702,277	)		5.74
Forfeited		(136,792	)		5.98		(21,252	)		5.54		(66,833	)		5.45

RSUs outstanding, end of year		2,154,638		$	6.68		1,968,690		$	5.98		1,848,598		$	5.81

The fair value of RSUs vested during the fiscal years ended July 31, 2014, 2013, and 2012 was $4.7 million, $4.1 million, and $4.0 million, respectively.

Employee Stock Purchase Plan

In December 2003, the shareholders approved an employee stock purchase plan, which was subsequently amended in September 2005, July 2009 and October 2012 (“2004 ESPP”). Under the 2004 ESPP, as amended, eligible employees may contribute up to 15% of their annual compensation for the purchase of common stock of the Company, subject to an annual limit of $25,000. The price paid for the common stock is equal to 85% of the price of the Company’s common stock on the last business day of a six-month offering period. The 2004 ESPP limited the number of shares that can be issued over the term of the plan to eligible employees to 400,000 shares, and the July 2009 amendment increased the number of shares that may be issued by an additional 400,000 shares. An October 2012 amendment increased the number of shares that may be issued by an additional 800,000 shares. In fiscal years 2014, 2013, and 2012, the total number of shares issued under the 2004 ESPP were 114,346, 165,572, and 146,897, respectively. As of July 31, 2014, there are 598,540 shares available for issuance under the 2004 ESPP.

Other Compensation Plans

The Company has established a Profit Sharing Bonus Plan, whereby a percentage of pretax profits is distributed quarterly to all eligible non-executive employees. Under the Profit Sharing Bonus Plan, the Company recorded profit sharing expense for all eligible employees of approximately $0.3 million, $0.1 million, and $0.1 million for the fiscal years ended July 31, 2014, 2013, and 2012 respectively.

The Company also has other established incentive compensation plans for its ECT, atg-Luther & Maelzer and Multitest employees. Under these plans, individuals are compensated based on company performance as well as individual performance, in addition to other specific criteria for each plan. Under these plans, the Company recorded expense of approximately $1.3 million for fiscal 2014.

The Company has an Executive Profit Sharing Plan pursuant to which the Company’s executives are eligible to receive cash awards based on the Company’s achievement of certain profitability milestones. For fiscal 2014, the plan included milestones for achieving certain synergy savings targets, all of which were met. Executive employees included in this plan are excluded from the Profit Sharing Bonus Plan. Under the Executive Profit Sharing Plan, the Company recognized expense of $3.2 million for fiscal 2014. There was no expense recorded for the fiscal years ended July 31, 2013 or 2012.

The Company maintains a 401(k) Growth and Investment Plan (“401(k) Plan”). Eligible employees may make voluntary contributions to the 401(k) Plan through a salary reduction contract up to the statutory limit or 20% of their annual compensation. The Company matches 50% of employees’ first 6% of voluntary contributions. Company contributions vest at a rate of 20% per year and employees are 100% vested after 5 years of service. The Company funded the match with a contribution of $1.2 million for fiscal 2014, and $1.1 million for each of the fiscal years ended July 31, 2013, and 2012, respectively.