P39
Number of Shares
Aggregate Intrinsic Value
Weighted Average Grant-Date Fair Value
Balance at December 31, 2007
50,000
$491,500
$9.83
Granted
-
-
Vested and exercised
25,000
9.83
Expired
-
-
Balance at December 31, 2008
25,000
$ 15,500
$9.83
Granted
-
-
Vested and exercised
25,000
9.83
Expired
-
Balance at December 31, 2009
0
$ 0
$ -
Exercisable at
December 31, 2008
25,000
$ 15,500
The grant date fair value of restricted stock granted from May 23, 2007 to December 31, 2007 was US$0.5 million.
At December 31, 2009, there was US$0 (2008: US$0.2 million) of total unrecognized compensation cost related to non-vested restricted stock granted under the plan. The total fair value of shares vesting during the year to December 31, 2009 was US$0.3 million (2008: US$0.2 million). The compensation recognized in operating expenses for restricted stock granted for the year ended December 31, 2009 was US$0.3 million (2008: US$0.2 million).
The Company used treasury shares to satisfy restricted stock grant exercises.
(11) RESEARCH AND DEVELOPMENT COLLABORATIONS
The Company has the following significant research and development collaborative agreement outstanding at December 31, 2009 and 2008:
Kraft
Agreement Summary
On December 5, 2006, the Company entered into a technology sublicense agreement with Kraft. Pursuant to this agreement, Kraft was granted limited exclusive sublicense to use the Company's know how and related license and patents relating to the production of "functional foods" which treat and prevent parasites in humans through additives to foods, beverages and dietary supplements. Kraft is required to use commercially reasonable efforts to pursue the achievement of milestones set out in the agreement. The project for the development of licensed products is divided into four development stages. Within each stage certain designated milestones are to be accomplished in accordance with the development and implementation priorities agreed by the parties. The Company has the obligation to fund product development with a portion of the product development funded through an upfront payment and milestone payments. The agreement was revised in September 2009, to better address the ongoing development plan. With completion of the second milestone, and under the revised agreement, TyraTech will receive a bi-annual cost reimbursement for agreed upon development costs for what would have been stages three and four. TyraTech will continue to receive an exclusivity fee from Kraft Foods for each stage three and four. The Company and Kraft agreed to negotiate a supply agreement in "good faith" after commercial launch. In addition, Kraft has agreed to pay the Company royalties for any product sales related to the "functional foods" with the Company's technology.
Accounting Summary
The Company considers its arrangement with Kraft to be
a revenue arrangement with multiple deliverables. The Company's deliverables under this collaboration include an exclusive license to its parasitic technologies, research and development services, and participation on a steering committee. The Company determined that the deliverables, specifically, the license, research and development services and steering committee participation, represented a single unit of accounting because the Company believes that the license, although delivered at the inception of the arrangement, does not have stand-alone value to Kraft without the Company's research and development services and steering committee participation and because objective and reliable evidence of the fair value of the Company's research and development services and steering committee participation could not be determined.
(12) 401(K) PLAN
The Company maintains a defined contribution 401(k) plan (the Plan). The Plan is designed in accordance with the applicable sections of the Internal Revenue Code, and is subject to minimum 3% funding requirements as required as a safe harbor plan. The Plan covers all eligible employees of the
