STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2012

Stock Option Activity under EIP (Executive Incentive Plan)

The following table presents the stock option activity under the EIP for the nine months ended September 30, 2012 and 2011, respectively:

				Options Outstanding
	Options Available for Grant			Number of Options			Weighted Average Exercise Price
Balance at January 1, 2011		333,447			2,544,000		$	3.00
Granted		(160,000	)		160,000			10.60
Canceled		79,500			(79,500	)		5.63
Exercised		—			(58,000	)		2.20
Balance at September 30, 2011		252,947			2,566,500		$	3.41
Balance at January 1, 2012		27,434,083			2,524,500		$	3.38
Granted		(20,920,000	)		20,920,000			3.44
Canceled		244,500			(244,500	)		4.86
Exercised		—			(121,700	)		1.81
Balance at September 30, 2012		6,758,583			23,078,300		$	3.43

Summarizes Information on Options Granted under EIP

The following table summarizes the information on the options granted under the EIP at September 30, 2012:

	Outstanding						Exercisable
Range of Exercise Prices	Number of Options		Average Remaining Contractual Life (years)		Weighted Average Exercise Price		Number of Options		Weighted Average Exercise Price
$                1.64		1,587,800		4.19	$	1.64		1,587,800	$	1.64
3.19		15,573,750		9.50		3.19		—		3.19
3.61		197,500		6.25		3.61		118,500		3.61
4.19		5,191,250		9.50		4.19		5,191,250		4.19
6.36		215,000		5.33		6.36		172,000		6.36
9.04		193,000		7.58		9.04		77,200		9.04
10.60		120,000		8.33		10.60		24,000		10.60
$  1.64 - $10.60		23,078,300		9.05	$	3.43		7,170,750	$	3.74

Executive Management Rollover Options

			Options Outstanding
Executive Management Rollover Options	Options Available for Grant		Number of Shares			Weighted Average Exercise Price
Balance at January 1, 2011		17		287,326		$	33.34
Canceled		—		—			—
Exercised		—		—			—
Balance at September 30, 2011		17		287,326		$	33.34
Balance at January 1, 2012		821		12,958,670		$	0.6923
Canceled		—		—			—
Exercised		—		(1,994,667	)		0.7414
Balance at September 30, 2012		821		10,964,003		$	0.6834

Estimated Fair Value of EIP Option Awards on Grant Date Using Black-Scholes Option

The following table summarizes the outstanding and exercisable information on executive management rollover options granted under the EIP at September 30, 2012:

	Outstanding and Exercisable
Range of Exercise Prices	Number of Options		Average Remaining Contractual Life (years)		Weighted Average Exercise Price
0.6834		10,964,003		1.04	$	0.6834

Outstanding and Exercisable Information on Executive Management Rollover Options Granted Under EIP

$3.92. We have estimated the fair value of EIP option awards on the grant date or date of award modification using a Black-Scholes option pricing model that uses the assumptions noted in the following table:

	2012 Grant as modified						Initial grant			For the nine months
	Accelerated Vesting			Reduced Grant Price			In 2012			ended September 30, 2011
Risk-free interest rate		0.63	%		0.86	%		1.35	%		1.87	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Expected volatility		36.9	%		35.1	%		34.7	%		33.2	%
Expected life (years)		4.83			6.15			6.3			6.5