STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2011

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

6. STOCK-BASED COMPENSATION

The Company recognized stock-based compensation expense, related to employee stock option awards, of $1,126 and $3,566 for the three and nine months ended September 30, 2011, respectively.  Stock-based compensation expense, related to employee stock option awards, was $1,230 and $3,445 for the three and nine months ended September 30, 2010, respectively. At September 30, 2011, there was approximately $7,907 of pre-tax stock-based compensation expense, net of estimated forfeitures, related to unvested awards not yet recognized which is expected to be recognized over a weighted average period of 2.43 years.

A summary of option activity for the nine months ended September 30, 2011 is as follows:

	Number of		Weighted Average
	Shares		Exercise Price
Outstanding at December 31, 2010	3,246,079		$	11.28
Granted	809,160		8.14
Exercised	(19,935	)	3.55
Cancelled	(205,152	)	12.87
Outstanding at September 30, 2011	3,830,152		10.57
Options exercisable at September 30, 2011	2,350,436		11.24
Weighted average grant date fair value of options granted during the nine months ended September 30, 2011			$	5.44

For the nine months ended September 30, 2011 and 2010, the Company determined the fair value of stock options using the Black-Scholes option pricing model with the following assumptions for option grants, respectively:

	Nine Months Ended
	September 30,
	2011	2010
Expected dividend yield	—	—
Risk-free rate	0.95% - 2.38%	1.41% - 2.59%
Expected option term (in years)	5.5 – 5.6	5.4 – 5.6
Volatility	77% - 80%	80%