Company: IDCC
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001193125-25-097149
Chunk: 31

Company: InterDigital, Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 31
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 Outstanding options had a weighted average exercise price of $82.24, and the weighted average remaining contractual life of such options was 7.78 years as of March 31, 2025. |

| (3) | As of the effective date of the 2025 Plan, the authorization will be reduced by (a) one Share for every one Share subject to a stock option or stock appreciation right granted under the 2017 Plan after March 31, 2025 and prior to the effective date of the 2025 Plan and (b) two Shares for every one Share subject to an award other than a stock option or stock appreciation right granted under the 2017 Plan after March 31, 2025 and prior to the effective date of the 2025 Plan. |

An additional metric that we use to measure the cumulative dilutive impact of our equity program is total potential fully diluted overhang (the sum of (1) the Total Outstanding Awards and (2) the Total Shares Available for Future Awards, divided by the sum of (a) the Common Shares Outstanding, (b) the Total Outstanding Awards, and (c) the Total Shares Available for Future Awards). Our total potential fully diluted overhang as of March 31, 2025 was 8.28%. If the 2025 Plan had been in place on March 31, 2025, our total potential fully diluted overhang as of that date would increase to 17.8% and then would decline over time. As of the record date, the closing price of the company’s common stock was $196.98. 24

Promotion of Good Corporate Governance Practices The Board believes the use of stock-based incentive awards promotes best practices in corporate governance by maximizing shareholder value. By providing participants in the 2025 Plan with a stake in the company’s success, the interests of the participants are aligned with those of the company’s shareholders. Specific features of the 2025 Plan that are consistent with good corporate governance practices include, but are not limited to:

| • |     | No Annual Evergreen. The 2025 Plan does not contain an annual “evergreen” provision that automatically increases the number of Shares available for issuance each year. As a result, any future increases to the number of Shares reserved for issuance under the 2025 Plan will require shareholder approval. |

| • |     | Administration. The 2025 Plan will be administered by the Human Capital Committee, which consists entirely of independent non-employee directors