NOTE 15 Equity EQUITY COMPENSATION PLANS: The following table summarizes TSYS’ equity compensation plans by category: (1) Does not include an aggregate of 389,519 shares of nonvested awards which will vest over the remaining years through 2012. (2) Includes 20,162,500shares available for future grants under the Total System Services, Inc. 2002 Long-Term IncentivePlan, 2007 Omnibus Plan and 2008 Omnibus Plan. TSYS has various long-term incentive plans under which the Compensation Committee of the Board of Directors has the authority to grant share-based compensation to TSYS employees. compensation expense is recognized in income based upon the Company’s estimate of the probability of achieving the spec- ified EPS goal. The Company historically issues new shares or uses treasury shares to satisfy share option exercises. Employee stock options granted during or after 2006 (other than performance-based stock options) generally become exercisable at the end of the three-year period and expire ten years from the date of grant. Vesting for stock options granted during or after 2006 (other than performance-based stock options) accelerates upon retirement for plan participants who have reached age 62 and who also have no less than fifteen years of service at the date of their election to retire. For stock options granted in 2006, share- based compensation expense is fully recognized for plan partici- pants upon meeting the retirement eligibility requirements of age and service. TSYS maintains the Total System Services, Inc. 2008 Omnibus Plan, Total System Services, Inc. 2007 Omnibus Plan, Total System Services, Inc. 2002 Long-Term Incentive Plan and Total System Services, Inc. 2000 Long-Term Incentive Plan to advance the interests of TSYS and its shareholders through awards that give employees and directors a personal stake in TSYS’ growth, devel- opment and financial success. Awards under these plans are designed to motivate employees and directors to devote their best interests to the business of TSYS. Awards will also help TSYS attract and retain the services of employees and directors who are in a position to make significant contributions to TSYS’ success. Stock options granted prior to 2006 generally become exercis- able at the end of a two to three-year period and expire ten years from the date of grant. Vesting for stock options granted prior to 2006 accelerates upon retirement for plan participants who have reached age 50 and who also have no less than fifteen years of service at the date of their election to retire. Following adoption of ASC 718, share-based compensation expense is recognized in income over the remaining nominal vesting period with consid- eration for retirement eligibility. The plans are administered by the Compensation Committee of the Company’s Board of Directors and enable the Company to grant nonqualified and incentive stock options, stock apprecia- tion rights, restricted stock and restricted stock units, perfor- mance units or performance shares, cash-based awards, and other stock-based awards. All stock options must have a maximum life of no more than ten years from the date of grant. The exercise price will not be less than 100% of the fair market value of TSYS’ common stock at the time of grant. Any shares related to awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares, are settled in cash in lieu of shares, or are exchanged with the Committee’s permission, prior to the issuance of shares, for The performance-based stock options awarded to TSYS execu- tives effective April 30, 2010 become exercisable only upon sat- isfaction of certain performance conditions. Share-based 46 Long-Term Incentive Plans NOTE 16 Share-Based Compensation General Description of Share-Based Compensation Plans DIVIDENDS: Dividends on common stock of $55.1 million were paid in 2010, compared to $55.2 million and $55.4 million in 2009 and 2008, respectively. (in thousands, except per share data) Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights Weighted-average exercise price of outstanding options, warrants and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (a) (b) (c) Equity compensation plans approved by security holders .............................. 8,810 (1) $23.40 20,163 (2) Equity compensation plans not approved by security holders . . . . . . . . . . . . . . . . . . . . . . . . — — — Total.................................. 8,810 $23.40 20,163