Vonage 2010 Annual Report Download - page 80

V
O
NA
G
EH
O
LDIN
GS CO
RP
.
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(
In thousands, except per share amounts
)
2001
S
tock Incentive Pla
n
In Februar
y
2001, we adopted the 2001
S
tock
Incentive Plan
,
which is an amendment and restatement of
t
he 2000
S
tock Incentive Plan of MIN-X.
CO
M
,
IN
C
.Th
e
2001
S
tock Incentive Plan provides for the granting o
f
options or restricted stock awards to our officers, directors
,
and emplo
y
ees. The objectives of the 2001
S
tock Incentive
Pl
an
i
nc
l
u
d
e
d
attract
i
ng an
d
reta
i
n
i
ng personne
l
, prov
idi
n
g
for additional performance incentives, and promoting ou
r
s
uccess
b
y prov
idi
ng emp
l
oyees t
h
e opportun
i
ty to acqu
i
re
s
toc
k
.
I
n management
’
sop
i
n
i
on, a
ll
stoc
k
opt
i
ons were
granted with an exercise price at or above the fair marke
t
v
alue of our common stock at the date of grant with th
e
exception of a grant in 2005 for 125 shares. Initially, w
e
r
ecorded deferred compensation in 2005 related to thi
s
option grant.
O
n January 1, 2006, we reversed the remain-
i
ng deferred compensation balance in accordance wit
h
FA
S
BA
SC
718. There have not been an
y
options available
for future grant under the 2001
S
tock Incentive Plan since
our board of directors terminated the
p
lan in 2008
.
2
006
In
ce
ntiv
e
Pl
a
n
In May 2006 we adopted the 2006 Incentive Plan. The
2006 Incentive Plan permits the
g
rant o
f
stock options
,
r
estricted stock, restricted stock units, stock a
pp
reciation
r
i
g
hts, per
f
ormance stock, per
f
ormance units, annual
awards, and other awards based on, or related to, shares o
f
our common stock. O
p
tions awarded under our 2006
Incentive Plan may be nonstatutory stock options or ma
y
qualify as incentive stock options under Section 422 of th
e
Internal Revenue Code of 1986, as amended. Our 200
6
I
ncent
i
ve
Pl
an conta
i
ns var
i
ous
li
m
i
ts w
i
t
h
respect to t
he
ty
pes o
f
awards, as
f
ollows
:
• a maximum o
f
20,000 shares ma
y
be issued unde
r
th
ep
l
an pursuant to
i
ncent
i
ve stoc
k
opt
i
ons;
• a maximum o
f
10,000 shares may be issued pur-
suant to options and stock appreciation ri
g
ht
s
g
ranted to any participant in a calendar year;
• a maximum of $5,000 may be paid pursuant to
annual awards
g
ranted to any participant in
a
calendar year; and
• a maximum of $10,000 may be paid (in the case o
f
awards denominated in cash
)
and a maximum o
f
1
0,000 shares may be issued (in the case of awards
denominated in shares
)p
ursuant to awards, other
t
han options, stock appreciation ri
g
hts or annua
l
awards,
g
ranted to any participant in a calenda
r
y
ear
.
B
ase
d
upon a
J
une 2010 amen
d
ment to t
h
ep
l
an, t
he
maximum number o
f
shares o
f
our common stock that are
authorized
f
or issuance under our 2006 Incentive Plan i
s
6
6,400 shares. Shares issued under the plan ma
y
b
e
aut
h
or
i
ze
d
an
d
un
i
ssue
d
s
h
ares or ma
yb
e
i
ssue
d
s
h
are
s
t
hat we have reacquired. Shares covered b
y
awards that
are
f
or
f
eited, cancelled or otherwise expire without havin
g
b
een exerc
i
se
d
or sett
l
e
d
,ort
h
at are sett
l
e
dby
cas
h
o
r
other non-share consideration
,
will become available for
i
ssuance pursuant to a new award.
S
hares that are ten
-
dered or withheld to pa
y
the exercise price of an award o
r
t
o satisfy tax withholding obligations will not be available fo
r
i
ssuance pursuant to new awar
d
s.
A
t
D
ecem
b
er 31, 2010,
23,947 shares were available for future grant under th
e
2006
S
tock Incentive Plan
.
F
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