Stock Options and Employee Stock Purchase Plan

12 Months Ended

Dec. 31, 2011

Stock Options and Employee Stock Purchase Plan

(5) Stock Options and Employee Stock Purchase Plan

During 1998, the Company established the Stock Option and Restricted Stock Purchase Plan (the “1998 Plan”). Under the 1998 Plan, the Board of Directors could issue incentive stock options or nonqualified stock options to purchase up to 5,850,000 shares of common stock. The 2000 Stock Incentive Plan (the “2000 Plan”) succeeded the 1998 Plan. Under the 2000 Plan, the options which had been outstanding under the 1998 Plan were incorporated in the 2000 Plan increasing the number of shares available for issuance under the plan by approximately 4,150,000, thereby reserving for issuance 10,000,000 shares of common stock in the aggregate.

The Company established the 2009 Stock Incentive Plan (as amended and restated, the “2009 Plan”) as a successor to the 2000 Plan. Under the 2009 Plan, the options which had been outstanding under the 2000 Plan were incorporated into the 2009 Plan and the Company increased the number of shares available for issuance under the plan by 6,000,000, thereby reserving for issuance 19,567,744 shares of common stock in the aggregate. Options to acquire common stock granted thereunder have ten-year terms. As of December 31, 2011, approximately 12,810,000 shares of common stock were reserved for issuance under the 2009 Plan (taking into account all option exercises through December 31, 2011). As of December 31, 2011, there was approximately $26,491 of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of approximately 2.2 years.

In March 2000, the Company adopted the 2000 Employee Stock Purchase Plan with 450,000 shares of common stock initially reserved for issuance (the “2000 ESPP”). The 2000 ESPP expired on its terms on the last day of April 2010.

In June 2010, our stockholders approved the 2010 Employee Stock Purchase Plan with 1,000,000 shares of common stock initially reserved for issuance. As of December 31, 2011, approximately 933,000 shares of common stock were reserved for issuance under the Employee Stock Purchase Plan (taking into account all share purchases through December 31, 2011).

A summary of the Company’s stock option activity and weighted average exercise prices follows:

	Options			Weighted Average Exercise Price
Options outstanding at December 31, 2008		9,939,045		$	3.67
Options granted		1,960,500			2.66
Options exercised		(2,094,888	)		2.06
Options cancelled		(1,092,849	)		3.65
Options outstanding at December 31, 2009		8,711,808			3.82
Options granted		3,809,380			7.13
Options exercised		(2,843,547	)		4.10
Options cancelled		(860,881	)		5.09
Options outstanding at December 31, 2010		8,816,760			5.04
Options granted		3,642,600			12.24
Options exercised		(2,278,451	)		4.28
Options cancelled		(1,337,496	)		7.03
Options outstanding at December 31, 2011		8,843,413		$	7.91
Options exercisable at December 31, 2009		4,463,915		$	4.03
Options exercisable at December 31, 2010		3,097,748		$	3.93
Options exercisable at December 31, 2011		2,805,399		$	4.63

The total value of stock options exercised during the years ended December 31, 2011, 2010 and 2009 was approximately $17,174, $11,050 and $6,204, respectively. The total intrinsic value of options exercisable at December 31, 2011, 2010 and 2009 was approximately $21,890, $22,491 and $12,799, respectively. The total intrinsic value of nonvested options at December 31, 2011, 2010 and 2009 was approximately $19,839, $32,420 and $14,318, respectively. The total intrinsic value of all outstanding options at December 31, 2011, 2010 and 2009 was approximately $41,729, $54,911 and $27,117, respectively.

A summary of the status of the Company’s nonvested options as of December 31, 2009, and changes during the years ended December 31, 2010 and 2011 is as follows:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested Shares at January 1, 2010		4,247,893		$	2.13
Granted		3,809,380			3.89
Vested		(1,521,951	)		2.41
Cancelled		(816,310	)		2.83
Nonvested Shares at December 31, 2010		5,719,012		$	3.13
Nonvested Shares at January 1, 2011		5,719,012		$	3.13
Granted		3,642,600			6.47
Vested		(1,967,639	)		3.00
Cancelled		(1,355,959	)		3.83
Nonvested Shares at December 31, 2011		6,038,014		$	5.04