Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-Based Compensation

Share-Based Compensation

3. Share-Based Compensation

The Company granted 79,500 stock options and 78,328 restricted stock units during the six months ended June 30, 2011. The Company granted 258,250 stock options and 257,939 restricted stock units during the six months ended June 30, 2010.

The fair value of each option award is estimated on the date of grant using a Black-Scholes Merton option pricing model with subjective assumptions, including expected stock price volatility, the estimated life of each award and estimated pre-vesting forfeitures noted in the table below.

Expected volatility – Based on the historical prices of common stock over the expected life of each option.

Expected life – Based on the history of option exercise and cancellation activity of the options.

Risk-free interest rate – Based on the U.S. Treasury yield curve in effect at the time of grants for periods corresponding with the expected life of the options.

Dividend yield – As the Company has not paid, nor does it currently plan to pay, dividends in the future, the assumed dividend yield is zero.

The fair value of stock options granted was estimated using the following weighted-average assumptions:

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Expected life (in years)		5.5			5.5			5.5			5.5
Risk-free interest rate		2.4	%		2.8	%		2.3	%		2.8	%
Dividend yield		0	%		0	%		0	%		0	%
Expected volatility		62	%		62	%		62	%		62	%