Rosetta Stone 2010 Annual Report Download - page 100

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Table of Contents
ROSETTA STONE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. STOCK-BASED COMPENSATION (Continued)
The weighted average grant-date fair value per share of stock options granted was $13.60, $10.32 and $7.19 for the years ended December 31, 2010,
2009 and 2008, respectively.
The aggregate intrinsic value disclosed above represents the total intrinsic value (the difference between the fair market value of the Company's common
stock as of December 31, 2010, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option
holders had all option holders exercised their options on December 31, 2010. This amount is subject to change based on changes to the fair market value of
the Company's common stock.
Restricted Stock—The following table summarizes the Company's restricted stock activity for the years ended December 31, 2010 and 2009,
respectively:
Nonvested
Outstanding
Weighted
Average
Grant Date
Fair Value
Aggregate
Intrinsic
Value
Nonvested Awards, January 1, 2009 — $ — $ —
Awards granted 191,468 18.72
Awards vested —
Awards cancelled (11,666) 19.55
Nonvested Awards, December 31, 2009 179,802 18.67 3,356,903
Awards granted 211,757 23.33
Awards vested (54,363) 18.34
Awards cancelled (29,672) 19.89
Nonvested Awards, December 31, 2010 307,524 21.69 6,670,196
During 2010 and 2009, 211,757 and 191,468 shares of restricted stock were granted, respectively. The aggregate grant date fair value of the awards in
2010 and 2009 was $4.9 million and $3.6 million, respectively, which will be recognized as expense on a straight-line basis over the requisite service period
of the awards, which is also the vesting period. The Company's restricted stock grants are accounted for as equity awards. The grant date fair value is based on
the market price of the Company's common stock at the date of grant. The Company did not grant any restricted stock prior to April 2009.
Restricted stock awards are considered outstanding at the time of grant as the stock holders are entitled to voting rights and to receive any dividends
declared subject to the loss of the right to receive accumulated dividends if the award is forfeited prior to vesting. Unvested restricted stock awards are not
considered outstanding in the computation of basic earnings per share.
Restricted Stock Units—During 2010 and 2009, 12,096 and 9,858 restricted stock units were granted, respectively. The aggregate grant date fair value of
the awards in 2010 and 2009 was $0.2 million and $0.2 million, respectively, which was recognized as expense on the grant date, as the awards were
immediately vested. The Company's restricted stock units are accounted for as equity awards. The grant date fair value is based on the market price of the
Company's common stock at the date of grant. The Company did not grant any restricted stock units prior to April 2009.
F-26