STOCK-BASED AWARDS

9 Months Ended

Sep. 30, 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 September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Stock options	$	—	$	13	$	3	$	194
Restricted stock awards	980		688		2,621		2,217
Total stock-based compensation expense	$	980	$	701	$	2,624	$	2,411

Restricted stock awards

During the three and nine months ended September 30, 2012, the Compensation Committee of the Board of Directors approved grants of 1,500 and 795,000 restricted stock awards to our officers, board members and employees, for the respective periods. 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 September 30, 2012, there were 1,037,000 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 nine months ended September 30, 2012 was $7.79 and $6.75, respectively.

The following table summarizes restricted stock award activity during the nine months ended September 30, 2012 (in thousands):

	Nine months ended
	September 30, 2012
			Weighted Average
			Grant Date
	Units		Fair Value
Outstanding—beginning of year	522		$	13.40
Granted at fair value	795		6.75
Vested	(236	)	12.06
Forfeited	(44	)	8.71
Outstanding—end of period	1,037		$	8.80