FairPoint Communications 2009 Annual Report Download - page 158

Table of Contents




these shares pay current dividends. At December 31, 2009, up to 79,781 additional shares of common stock may be issued in the future pursuant to
awards authorized under the 2005 Stock Incentive Plan.
In March 2006, the Company's board of directors approved the grant of an additional 100,000 shares to the Company's chief executive officer.
These shares were granted under the 2005 Stock Incentive Plan in two installments of 50,000 shares each on January 1, 2007 and January 1, 2008.
These shares are considered to have been granted in March 2006 under SFAS 123(R) at a grant date fair value of $14.02 per share.
In 2005, the Company's board of directors approved an annual award to each of the Company's non-employee directors in the form of non-vested
stock or stock units, at the recipient's option, issued under the 2005 Stock Incentive Plan. The non-vested stock and stock units will vest in four equal
quarterly installments on the first day of each of the first four calendar quarters following the grant date and the holders thereof will be entitled to receive
dividends from the date of grant, whether or not vested. The following table presents information regarding stock units granted to non-employee
directors under the 2005 Stock Incentive Plan (including stock units granted in lieu of dividends):
The fair value of the awards is calculated as the fair value of the shares on the date of grant. Beginning on January 1, 2006, the Company adopted
the provisions of SFAS 123(R) using the modified prospective method for the awards under the 2005 Stock Incentive Plan as all awards were granted
subsequent to the Company becoming public. Under this methodology, the Company is required to estimate expected forfeitures related to these grants
and, for the non-dividend paying shares, the compensation expense is reduced by the present value of the dividends which were not paid on those
shares prior to their vesting.
145
 

 



 
Outstanding at March 31, 2008 29,544 $ 15.04
Granted 43,965 9.86
Exercised — —
Forfeited — —
Outstanding at December 31, 2008 73,509 $ 11.94
Granted 6,272 3.02
Exercised — —
Forfeited — —
Outstanding at December 31, 2009 79,781 $ 11.24