2010 10-K: Part II As of December 31, 2010, the total amount of unrecognized stock- based compensation expense related to restricted stock units was  approximately $27,425,000. We expect to recognize this expense  over an average period of approximately 33 months. As of December 31, 2010, the total amount of unrecognized stock- based compensation expense related to restricted stock was  approximately $8,115,000. We expect to recognize this expense over  52 months, from January 2011 through April 2015. Restricted Stock Stock Option Activity In conjunction with the Realpoint acquisition in May 2010, we issued  199,174 shares of restricted stock to the selling employee sharehold- ers. The restricted stock vests ratably over a five-year period from  the acquisition date and may be subject to forfeiture if the holder  terminates his or her employment during the vesting period. Because  of the terms of the restricted share agreements, in accordance with  ASC 805,  Business Combinations , we account for these grants as  stock-based compensation expense, and not as part of the acquisi- tion consideration. See Note 7 for additional information concern- ing the Realpoint acquisition. We have not made any stock option grants since January 2006. All  options granted under the 2004 Stock Incentive Plan and the Prior  Plans were vested as of January 1, 2010 and there was no unrec- ognized stock-based compensation expense related to stock options.  Because the options expire 10 years after the date of grant, some  options granted under these plans remain outstanding as of  December 31, 2010. Almost all of the options granted under the 2004  Stock Incentive Plan have a premium feature in which the exercise  price increases over the term of the option at a rate equal to the  10-year Treasury bond yield as of the date of grant. We measured the fair value of the restricted stock on the date of  grant based on the closing market price of our common stock on  the day prior to the grant. We amortize this value to stock-based  compensation expense ratably over the vesting period. We have  assumed that all of the restricted stock will ultimately vest, and  therefore we have not incorporated a forfeiture rate for purposes  of determining the stock-based compensation expense. The following tables summarize stock option activity for our various  stock option grants. The first table includes activity for options  granted at an exercise price below the fair value per share of our  common stock on the grant date; the second table includes activity  for all other option grants. Stock Option Activity 2010 2009  2008 Weighted Weighted  Weighted Average Average  Average Underlying Exercise Underlying  Exercise  Underlying  Exercise Shares Price Shares  Price  Shares  Price Options Granted At an Exercise Price Below the Fair Value Per Share on the Grant Date Options outstanding—beginning of year  809,169  $ 17.75 1,110,652  $15.33  2,068,590  $12.84 Canceled  (1,250)   14.21 (175)   15.14  (7,565)   15.92 Exercised  (159,034)   16.62 (301,308)   10.75  (950,373)   10.54 Options outstanding—end of year  648,885   18.91 809,169   17.75  1,110,652   15.33 Options exercisable—end of year  648,885  $ 18.91 809,169  $17.75  1,110,627  $15.33 All Other Option Grants, Excluding Activity Shown Above Options outstanding—beginning of year  1,868,408  $ 16.15 2,942,706  $ 15.14  4,377,089  $ 13.61 Canceled  (15,524)   13.72 (3,127)   21.99  (21,412)   21.36 Exercised  (645,344)   19.73 (1,071,171)   13.95  (1,412,971)   10.81 Options outstanding—end of year  1,207,540   17.09 1,868,408   16.15  2,942,706   15.14 Options exercisable—end of year  1,207,540  $ 17.09 1,858,865  $16.02  2,714,417  $14.39 130