STOCK-BASED AWARDS

6 Months Ended

Jun. 30, 2011

STOCK-BASED AWARDS

STOCK-BASED AWARDS

8. STOCK-BASED AWARDS

We have equity incentive plans that provide for the grant to employees of stock-based awards, including stock options and restricted stock.

Stock-based compensation expense was as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
Stock options	$	32	$	408	$	181	$	873
Restricted stock awards	800		862		1,527		1,612
Total stock-based compensation expense	$	832	$	1,270	$	1,708	$	2,485

Restricted stock awards

During the three and six months ended June 30, 2011, the Compensation Committee of the Board of Directors approved grants of 40,000 and 265,000 restricted stock awards to our officers, board members and employees, respectively. The restricted stock awards vest over three years at 25% at the end of the first year, 25% at the end of the second year and 50% at the end of the third year and are subject to the employee’s continuing service to us. At June 30, 2011, there were 588,000 unvested restricted stock awards that remained outstanding.

The cost of restricted stock awards is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized on a straight line basis over the three-year vesting schedule. The weighted average grant date fair value of restricted stock awards granted during the three and six months ended June 30, 2011 was $13.65 and $15.53, respectively.

The following table summarizes restricted stock award activity during the six months ended June 30, 2011 (in thousands):

	Six months ended June, 30 2011
			Weighted Average
	Units		Grant Date  Fair Value
Outstanding—beginning of year	685		$	12.08
Granted at fair value	265		15.53
Vested	(314	)	12.16
Forfeited	(48	)	14.66
Outstanding—end of period	588		$	13.42