STOCK-BASED AWARDS

3 Months Ended

Mar. 31, 2012

STOCK-BASED AWARDS

STOCK-BASED AWARDS

7. 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 March 31,
	2012		2011
Stock options	$	3	$	150
Restricted stock awards	810		726
Total stock-based compensation expense	$	813	$	876

Restricted stock awards

During the three months ended March 31, 2012, the Compensation Committee of the Board of Directors approved grants of 688,000 restricted stock awards to our officers, board members and employees. 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 recipient’s continuing service to us. At March 31, 2012, there were 996,000 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 months ended March 31, 2012 was $6.78.

The following table summarizes restricted stock award activity during the three months ended March 31, 2012 (in thousands):

	Three months ended March 31, 2012
			Weighted Average
			Grant Date
	Units		Fair Value
Outstanding—beginning of year	522		$	13.40
Granted at fair value	688		6.78
Vested	(209	)	11.55
Forfeited	(5	)	9.53
Outstanding—end of period	996		$	9.23