FairPoint Communications 2010 Annual Report Download - page 119
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Table of Contents
table presents information regarding stock units granted to non-employee directors under the 2008 Plan (including stock units granted in lieu of dividends):
Outstanding at March 31, 2008 — $ —
Granted — —
Exercised — —
Forfeited — —
Outstanding at December 31, 2008 — $ —
Granted 175,352 1.79
Exercised — —
Forfeited — —
Outstanding at December 31, 2009 175,352 $ 1.79
Granted — —
Exercised — —
Forfeited — —
Outstanding at December 31, 2010 175,352 $ 1.79
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.
The following table presents information regarding non-vested stock granted to employees under the 2008 Long Term Incentive Plan:
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
Granted — —
Vested — —
Forfeited (25,000) 8.45
Non-vested at December 31, 2010 — $ —
No shares vested in 2010.
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:
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