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SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Total Stock-Based Compensation Expense Recognized in Consolidated Statements of Income (Loss)

The following table summarizes the total stock-based compensation expense recognized in our Consolidated Statements of Income (Loss):


(in US$ thousands)	2010			2011			2012
Cost of online game and service revenues	$	10		$	—		$	—
Product development & engineering expenses		18			—			—
Selling and marketing expenses		64			62			20
General and administrative expenses		2,922			1,103			159

Pre-tax stock-based compensation expense		3,014			1,165			179
Income tax benefit		(90	)		(109	)		(41	)

Total stock-based compensation expense reported in continuing operations	$	2,924		$	1,056		$	138

Total stock-based compensation expense reported in discontinued operations, net of tax	$	—		$	—		$	—

Summary of General Terms of Stock-Based Compensation Plans for Awards Granted

Summarized below are the general terms of our stock-based compensation plans, for which awards have been granted as of December 31, 2012.


Stock-Based compensation plan	Granted awards			Vesting schedule	Options’ exercise price	RSUs’ grant date fair value
2002 Plan		3,000,000		immediately upon granting	$0.79	—
2004 Plan		7,703,185	⁽¹⁾	immediately upon granting to four years	$0.79~$2.55	—
2006 Plan		1,197,333	⁽²⁾	immediately upon granting to four years	$0.8101~$16.6	$2.91~$16.01
2007 Plan		3,205,217	⁽³⁾	immediately upon granting to four years	$1.2~$18.17	$2.47~$15.35
2008 Plan		1,000,000		immediately upon granting to six years	$2.47~$4.24	—
2009 Plan		2,500,000	⁽⁴⁾	immediately upon granting to four years	$0.955~$2.47	—
2010 Plan		1,600,000	⁽⁵⁾	three years	$0.8101~$1.05	—
2011 Plan		—		—	—	—

(1)	The granted awards, net of forfeited or canceled shares, were within reserved shares of seven million common shares.

(2)	The granted awards, net of forfeited or canceled shares, were within reserved shares of one million common shares.

(3)	The granted awards, net of forfeited or canceled shares, were within reserved shares of two million common shares.

(4)	The granted awards, net of forfeited or canceled shares, were within reserved shares of one and a half million common shares.

(5)	The granted awards, net of forfeited or canceled shares, were within reserved shares of one million common shares.

Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted

The following table summarizes the assumptions used in the model for options granted during 2011 and 2012:


	2011	2012
Option term (years)	5.99	5.73
Volatility	58.89%~63.03%	59.76%~67.02%
Weighted-average volatility	59%	62%
Risk-free interest rate	2.14%~2.31%	0.885%~1.152%
Dividend yield	0%	0%
Weighted-average fair value of option granted	$0.60	$0.54

Summary of Option Transactions

Option transactions during the last three years are summarized as follows:


	2010					2011					2012
	Weighted Avg. Exercise Price		No.of Shares (in thousands)			Weighted Avg. Exercise Price		No.of Shares (in thousands)			Weighted Avg. Exercise Price		No.of Shares (in thousands)			Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value (in thousands)
Balance at January 31	$	2.36		7,689		$	2.33		9,780		$	2.13		9,493
Options granted		2.47		2,565			1.06		1,060			0.96		2,070
Options exercised		0.87		(201	)		—		—			—		—
Options Forfeited / canceled / expired		5.66		(273	)		2.72		(1,347	)		1.74		(2,353	)

Balance at December 31	$	2.33		9,780		$	2.13		9,493		$	1.97		9,210		$	3.90		890

Exercisable at December 31	$	2.04		7,190		$	2.19		7,754		$	2.15		7,584		$	2.69		882

Vested and expected to vest at December 31	$	2.33		9,780		$	2.13		9,493		$	1.97		9,210		$	3.90		890

Information about Stock Options Outstanding

The following table sets forth information about stock options outstanding at December 31, 2012:


Options outstanding			Option currently exercisable
Exercise price	No. of Shares (in thousands)	Weighted average remaining contractual life	Exercise price	No. of Shares (in thousands)
Under $1	6,211	2.87 years	Under $1	5,191
$1~$10	2,383	6.40 years	$1~$10	1,777
$10~$20	616	4.65 years	$10~$20	616

	9,210			7,584

Nonvested Restricted Stock Unit

Nonvested RSUs during 2011 and 2012 were as follows:


	2011					2012
	Number of units (in thousands)			Weighted- average grant date fair value		Number of units (in thousands)		Weighted- average grant date fair value
Nonvested at January 1		390		$	10.99		—	$	—
Granted		323			3.01		—		—
Vested		(80	)		2.99		—		—
Forfeited		(633	)		7.92		—		—

Nonvested at December 31		—			—		—		—

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References+ Details