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(c) VARIABLE AWARD PERFORMANCE STOCK OPTION (i) De nition A performance stock option is an employee stock option that entitles the employee to purchase shares of the employer s stock subject to the achievement of speci ed performance criteria There are numerous different types of performance stock options; however, the most common performance stock option only becomes exercisable upon the achievement of the performance criteria For example, a typical performance stock option plan might provide for the grant of stock options that would vest and become exercisable if speci ed performance targets such as return on assets or earnings per share growth are met

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Sildena l is the rst oral treatment for ED and the most extensively evaluated [28] Overall success rates in patients with cardiovascular disease of 80% or greater have been recorded with no evidence of tolerance Patients with diabetes with or without additional risk factors, with their more complex and extensive pathophysiology, have an average success rate of 60% In randomized trials to date, open-label or outpatient monitoring studies, the use of sildena l is not associated with any excess risk of myocardial infarction, stroke, or mortality [29,30] In patients with stable angina pectoris there is no evidence of an ischemic effect due to coronary steal, and in one large, double-blind, placebo-controlled, exercise study sildena l 100 mg increased exercise time and diminished ischemia [31] A study of the hemodynamic effects in men with severe CAD identi ed no adverse cardiovascular effects and a potentially bene cial effect on coronary blood ow reserve [32] Studies in patients with and without diabetes have demonstrated improved endothelial function acutely and after long-term oral dose administration, which may have implications beyond the treatment of ED [25] Sildena l has also been shown to attenuate the activation of platelet IIb/IIIa receptor activity [33] Hypertensive patients on mono- or multiple therapy have experienced no increase in adverse events with the exception of doxazosin, a non-selective -adrenoceptor antagonist Occasional postural effects have occurred with sildena l when taken within four hours of doxazosin 4 mg; an advisory to avoid this time interval is now in place Sildena l has also been proven effective in heart failure patients who were deemed suitable for ED therapy [34] The incidence of ED in heart failure patients is 80%, making this nding of major clinical importance On average, the sildena l dose is 50 mg with 25 mg advised initially in those over 80 years of age because of delayed excretion Sildena l 100 mg is invariably needed in patients with diabetes An empty stomach and avoiding alcohol or cigarette smoking facilitates the effect Sildena l.

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Cardiovascular Issues in Male and Female Sexual Dysfunction 100 mg has no additional adverse cardiac effects above the 50 mg dose and should be routinely prescribed if the 50 mg dose is not effective after four attempts Sildena l s short half-life makes it the drug of choice in patients with the more severe cardiovascular disease, allowing early use of support therapy if an adverse clinical event occurs

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(ii) Accounting by Employer for Compensation Expense A performance stock option is a variable award since the number of shares the employee is entitled to receive or the exercise price the employee is required to pay is not known at the date of grant The measurement date and, thus, the determination of total compensation is not determined until the date at which performance ultimately can be measured Total compensation cost is equal to the number of stock options that become exercisable multiplied by the intrinsic value of each option at the measurement date For purposes of allocating compensation cost to expense of interim periods between the date of grant and the measurement date, compensation cost is estimated at the end of each interim period by multiplying the number of options expected to become exercisable times the intrinsic value of each option as of the end of the period During the service period, this estimate of compensation cost is allocated to interim periods by recognizing expense (or a decrease in expense) in an amount required to adjust accrued compensation at the end of each period to an amount equal to the percentage of the total service period that has elapsed times the estimated compensation cost (iii) Accounting by Employer for Federal Income Taxes Accounting for income taxes for a nonstatutory performance stock option is similar to the accounting for income taxes for a nonstatutory (non performance) stock option addressed above (iv) Accounting by Employer for Earnings per Share Performance-based employee stock options (and performance-based nonvested stock) are treated as contingently issuable shares in diluted earnings per share computations Contingently issuable shares are included in the computation of diluted earnings per share as of the beginning of the period in which the conditions are satis ed (or as of the date of the agreement providing for contingently issuable shares, if later) If all necessary conditions have not been satis ed by the end of the period, the number of contingently issuable shares included in diluted earnings per share is based on the number of shares,.

HYPOTHETICAL VARIABLE AWARD Market Price of Employer s Common Stock $20 $22 No signi cance $34 Average During the Year 21 24 27 25 28

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