Incredimail 2010 Annual Report Download - page 109

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INCREDIMAIL LTD AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of the activity in the share options granted to employees and directors for the year ended December 31, 2010
and related information is as follows:
*) During 2010, 128,251 share options were exercised in return for cash received in the amount of $375,000, the
remaining 94,526 share options were exercised under net-share settlement.
The weighted-average grant-
date fair value of options granted during the years 2008, 2009 and 2010 was $1.32, $1.68 and
$1.23, respectively.
As of December 31, 2010, the total compensation cost related to options granted to employees, not yet recognized,
amounted to $1,164,000. The cost is expected to be recognized over a weighted average period of 2.23 years.
Aggregate intrinsic value of options exercised in 2008, 2009 and 2010 amounted to $76,000, $281,000 and $713,000,
respectively.
In February 2008, the Company's Board of Directors resolved to re-
price 516,100 options which were previously granted
to the Company's employees to the fair market value as of that date. The Company accounted for the re-
pricing as a
modification in accordance with ASC 718 and recorded an additional compensation expense, in the amount of $309,000
which is recognized over the vesting period, or immediately for vested options.
NOTE 10:
-
SHAREHOLDERS' EQUITY (Cont.)
Number of
options
Weighted
average
exercise
price
Weighted
average
remaining
contractual
term
Aggregate
intrinsic
value
Years
U.S.
dollars
in
thousands
Outstanding at January 1, 2010
1,322,431
5.30
3.20
$
6,185
Granted
717,000
4.97
Exercised *)
(222,777
3.05
Cancelled
(179,042
5.40
Forfeited
(28,666
6.75
Outstanding at December 31, 2010
1,608,946
5.43
3.24
$
3,858
Exercisable at December 31, 2010
591,796
5.77
1.66
$
1,227
F
-
26