FairPoint Communications 2009 Annual Report Download - page 161

Table of Contents
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The following table presents information regarding non-vested stock granted to employees under the 2008 Long Term Incentive Plan:
The weighted average fair value of the 16,873 shares that vested in 2009 was $0.03.
(e) 2009 CEO Compensation Plan
On June 10, 2009, the Company's compensation committee approved the award of certain equity incentives to David L. Hauser, the Company's
new Chairman and Chief Executive Officer, as an inducement to accept employment with the Company (the "Inducement Awards"). As provided in
Mr. Hauser's employment agreement, dated June 11, 2009, the Inducement Awards include: (i) the Inducement Options; (ii) the Inducement Restricted
Stock; and (iii) performance units for two performance periods beginning on July 1, 2009 and ending on December 31, 2010 and December 31, 2011,
respectively (the "Inducement Performance Units"). The Inducement Options, totaling 1,600,000, were granted on July 1, 2009, at an exercise price of
$0.95 per share. The Inducement Options will vest and become exercisable in three equal annual installments commencing on July 1, 2010, provided
that Mr. Hauser remains employed by the Company through each such date. The Inducement Restricted Stock will be awarded in the following three
installments: (i) $500,000 on July 1, 2009; (ii) $1,750,000 on July 1, 2010; and (iii) $1,750,000 on July 1, 2011, and will be valued based on the
average closing prices of the Company's common stock during the thirty calendar days immediately preceding the applicable award date. Accordingly,
on July 1, 2009, 523,810 shares of restricted stock were awarded to Mr. Hauser. The Inducement Restricted Stock will become fully vested on July 1,
2012, provided that Mr. Hauser remains employed by the Company through such date. The Inducement Performance Units will be earned and paid in
shares of the Company's common stock, based on the Company's performance during the performance periods, with a target amount of 200% of
Mr. Hauser's base salary and a maximum of 400% of Mr. Hauser's base salary. The number of shares subject to the Inducement Options and the option
exercise price will be adjusted, and additional shares of Inducement Restricted Stock will be awarded, as necessary, to preserve the value of the
Inducement Options and the Inducement Restricted Stock awarded on July 1, 2009 if, prior to December 31, 2010, the Company completes a
restructuring of its indebtedness.
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 



 
Non-vested at March 31, 2008 — $ —
Granted 50,000 8.45
Vested — —
Forfeited — —
Non-vested at December 31, 2008 50,000 $ 8.45
Granted — —
Vested (16,873) 8.45
Forfeited (8,127) 8.45
Non-vested at December 31, 2009 25,000 $ 8.45