Vonage 2009 Annual Report Download - page 84

VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
>a maximum of $5,000 may be paid pursuant to annual
awards granted to any participant in a calendar year;
and
>a maximum of $10,000 may be paid (in the case of
awards denominated in cash) and a maximum of 10,000
shares may be issued (in the case of awards denomi-
nated in shares) pursuant to awards, other than options,
stock appreciation rights or annual awards, granted to
any participant in a calendar year.
The maximum number of shares of our common
stock that are authorized for issuance under our 2006
Incentive Plan will be determined under a formula set forth
in the plan, and will equal approximately 17.65% of the
number of shares that are issued and outstanding from
time to time. Shares issued under the plan may be
authorized and unissued shares or may be issued shares
that we have reacquired. Shares covered by awards that
are forfeited, cancelled or otherwise expire without having
been exercised or settled, or that are settled by cash or
other non-share consideration, will become available for
issuance pursuant to a new award. Shares that are ten-
dered or withheld to pay the exercise price of an award or
to satisfy tax withholding obligations will not be available
for issuance pursuant to new awards. At December 31,
2009, 14,028 shares were available for future grant under
the 2006 Stock Incentive Plan.
The following table summarizes the activity for all awards under both of our Stock Incentive Plans:
(Shares and Intrinsic Value in Thousands)
Number
of Shares
Range of
Exercise
Prices
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term in
Years
Aggregate
Intrinsic
Value
Weighted
Average
Grant Date
Fair Value
Awards outstanding at December 31, 2006 18,916 $0.00 - $35.00 $7.25 7.7 $4.09
Granted 10,999 $0.00 - $6.94 $2.53 $2.01
Exercised (1,034) $0.00 - $1.76 $0.79 $2,442 $2.48
Canceled (7,520) $0.00 - $35.00 $6.15 $4.46
Awards outstanding at December 31, 2007 21,361 $0.00 - $35.00 $5.53 5.6 $10,244 $2.97
Granted 16,875 $0.00 - $2.21 $1.45 $1.05
Exercised (832) $0.00 - $1.76 $0.06 $1,102 $3.11
Canceled (5,072) $0.00 - $35.00 $5.07 $3.22
Awards outstanding at December 31, 2008 32,332 $0.00 - $35.00 $3.61 6.5 $2,050 $1.93
Granted 6,819 $0.00 - $1.65 $0.68 $0.60
Exercised (1,004) $0.00 - $1.92 $0.06 $885 $2.53
Canceled (6,827) $0.00 - $35.00 $6.87 $2.59
Awards outstanding at December 31, 2009 31,320 $0.00 - $35.00 $2.44 6.0 $7,612 $1.48
Shares exercisable at December 31, 2009 12,097 $0.00 - $35.00 $4.02 5.0 $761 $2.02
Unvested shares at December 31, 2008 21,446 $0.00 - $18.00 $2.26 6.9 $1,999 $1.61
Unvested shares at December 31, 2009 19,223 $0.00 - $18.00 $1.44 6.6 $6,677 $1.13
The weighted average grant date fair value of options
granted was $0.62, $0.95 and $1.85 for the years ended
December 31, 2009, 2008 and 2007, respectively.
Total share-based compensation expense recog-
nized for the years ended December 31, 2009, 2008 and
2007 was $8,473, $12,238 and $7,542, respectively,
which were recorded to selling, general and administrative
expense in the consolidated statement of operations. As
of December 31, 2009, total unamortized share-based
compensation was $7,824, which is expected to be amor-
tized over the remaining vesting period of each grant, up
to the next 48 months. Compensation costs for all share-
based awards are recognized using the ratable single-
option approach on an accrual basis and are amortized
using an accelerated amortization schedule.
F-24 VONAGE ANNUAL REPORT 2009