(9)	Share-Based Compensation

The following table summarizes share-based compensation expense related to share-based awards recognized in 2011, 2010 and 2009:

	Years Ended December 31,
	2011		2010		2009
Share-based compensation expense included in the statement of operations:
Professional services	$	45	$	69	$	33
Maintenance		186		96		17
Sales and marketing		1,460		442		407
Product research and development		36		231		335
General and administrative		2,181		1,785		894
Total	$	3,908	$	2,623	$	1,686

Share-Based Compensation Plans

We maintain four share-based employee compensation plans, including our employee stock purchase plan (ESPP), and one director option plan under which we grant restricted stock awards and options to acquire shares of our common stock to certain employees, non-employees, non-employee directors and to existing stock option holders in connection with the consolidation of option plans following an acquisition.

Our 2005 Equity Incentive Plan (EIP) provides for awards of common stock, non-statutory stock options, incentive stock options, stock unit and performance unit grants and stock appreciation rights to eligible participants. On June 2, 2011, our shareholders approved an amendment to our 2005 EIP to increase the number of shares of common stock authorized for issuance thereunder by 3,000,000 to 16,500,000 shares of our common stock. Under the terms of the 2005 EIP, incentive stock option grants are limited to 5.0 million shares. Also, under the EIP, new stock option grants have an exercise price equal to the fair market value of our common stock at the date of grant with limited exceptions. The majority of the options issued under the EIP vest over a three or four-year period. As of December 31, 2011, incentive stock options to purchase 92,750 shares of our common stock and non-statutory stock options to purchase 9,067,873 shares of our common stock were outstanding under this plan.

Upon approval of the EIP, we stated that we did not plan to issue any more options under our other stock option plans. Our 1996 Employee Stock Option Plan provided for the grant of options to purchase a maximum of 3,265,826 shares of our common stock. Our 1998 Director Stock Option Plan, for our non-employee directors, provided for the granting of options to purchase a maximum of 300,000 shares of our common stock. In addition, our Board of Directors adopted an equity compensation plan in connection with our acquisition of a company in 2003. As of December 31, 2011, non-statutory stock options to purchase 30,411 shares of our common stock were outstanding under these plans.

Stock Options

We use the Black-Scholes option pricing model to estimate the fair value of stock option awards on the date of grant utilizing the assumptions noted in the following table. We expense the cost of stock option awards on a straight-line basis over the vesting period. Expected volatilities are based on the historical volatility of our stock and other factors. We use historical data to estimate option exercises and employee terminations within the valuation model. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods during the contractual life of the option is based on the U.S. Treasury rates in effect at the grant date.

	Years Ended December 31,
	2011			2010			2009
Dividend yield		0	%		0	%		0	%
Expected volatility		100	%		100	%		100	%
Risk–free interest rate		0.6% - 1.8	%		0.8% - 2.1	%		1.7% - 2.3	%
Expected term (in years)		4.0			4.0			4.0
Weighted–average grant date fair value	$	3.37		$	1.97		$	2.36

The assumptions above are based on multiple factors, including the historical exercise patterns of employees in relatively homogeneous groups with respect to exercise and post-vesting employment termination behaviors, expected future exercise patterns for these same homogeneous groups, and the volatility of our stock price. ASC Topic No. 718, Compensation-Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

At December 31, 2011, there was $9,284 of unrecognized compensation cost related to stock option share-based payments. We expect this compensation cost to be recognized over a weighted-average period of 2.9 years.

Stock option activity for the year ended December 31, 2011, was as follows:

	Number of Options			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (In Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2010		7,959,110		$	2.94		5.5	$	10,720
Options granted		2,134,786			4.96
Options exercised		(295,500	)		2.95
Options forfeited and expired		(607,362	)		6.91
Options outstanding, December 31, 2011		9,191,034		$	3.14		5.2	$	17,860

Options exercisable, December 31, 2011		4,215,920		$	2.78		4.6	$	10,381
Options exercisable, December 31, 2010		2,795,937		$	3.75		4.8	$	4,226
Options exercisable, December 31, 2009		2,076,212		$	5.77		4.7	$	2,044

In 2011, we received cash proceeds of $872 from the exercise of stock options.

Other information pertaining to option activity was as follows:

	Years Ended December 31,
	2011		2010		2009
Total fair value of stock options vested	$	6,719	$	4,585	$	5,419
Total fair value of restricted stock awards vested		-		613		80

The following table summarizes information about stock options outstanding at December 31, 2011:

Options Outstanding						Options Exercisable
	Range of exercise prices	Number of shares	Weighted– average remaining contractual life in years		Weighted– average exercise price		Number of shares		Weighted– average exercise price
$	0.57 - $1.47	2,645,000	4.7	$	1.05		2,113,125	$	1.07
$	1.99 - $3.23	2,085,000	5.7		2.68		550,937		2.69
$	3.24 - $4.50	2,638,352	5.7		3.62		894,384		3.51
$	4.51 - $24.88	1,822,682	4.7		6.01		657,474		7.36
		9,191,034	5.2	$	3.14		4,215,920	$	2.78

Employee Stock Purchase Plan

We maintain an ESPP that allows eligible employees to purchase shares of our common stock through payroll deductions of up to 10% of eligible compensation on an after-tax basis. The eligible employees receive a 5% discount from the market price at the end of each calendar quarter. There is no stock-based compensation expense associated with our ESPP.

Employees contributed $294, $160, and $110 during the years ended December 31, 2011, 2010, and 2009, respectively, to purchase shares of our common stock under the employee stock purchase plan.