FairPoint Communications 2009 Annual Report Download - page 162

Table of Contents
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The grant date fair value of the Inducement Options was determined using the Black-Scholes model. Key assumptions used for determining the fair
value of the Inducement Options were as follows: risk-free rate—3.54%; expected term—10 years; expected volatility—5.70%.
The following table presents information regarding non-vested stock granted to Mr. Hauser under the FairPoint Communications Inc. 2009 CEO
Compensation Plan:
(f) Verizon Northern New England Business Stock-based Compensations Plans
Prior to the Merger, the Verizon Northern New England business participated in the Verizon Communications Long Term Incentive Plan (the
Verizon Plan). The Verizon Plan permitted the granting of nonqualified stock options, incentive stock options, restricted stock, restricted stock units,
performance shares, performance share units and other awards.
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The Verizon Plan provided for grants of restricted stock units ("RSUs") that vested at the end of the third year of the grant. The RSUs are
classified as liability awards in the balance sheets for all periods prior to the Merger, because the RSUs were paid in cash upon vesting. The RSU award
liability is measured at its fair value at the end of each reporting period prior to the Merger and, therefore, fluctuated based on the price of Verizon's
stock.
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The Verizon Plan also provided for grants of performance share units ("PSUs") that vested at the end of the third year after the grant. The target
award was determined at the beginning of the period and could increase (to a maximum 200% of the target) or decrease (to zero) based on Total
Shareholder Return ("TSR"). At the end of the period, the PSU payment was determined by comparing Verizon's TSR to the TSR of a predetermined
peer group and the S&P 500 companies. All payments were subject to approval by the Verizon Board's Human Resources Committee. The PSUs are
classified as liability awards in the balance sheets for all periods prior to the Merger, because the PSU awards were paid in cash upon vesting. The PSU
award liability is measured at its fair value at the end of each reporting period prior to the Merger and, therefore, fluctuated based on the price of
Verizon's stock as well as Verizon's TSR relative to the peer group's TSR and S&P 500 TSR.
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 



 
Non-vested at December 31, 2008 — $ —
Granted 523,810 0.64
Vested — —
Forfeited — —
Non-vested at December 31, 2009 523,810 $ 0.64