STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

9.     STOCK-BASED COMPENSATION

• Stock options under the 2009 Stock Incentive Plan

        On February 16, 2011, the Compensation Committee of the Company's Board approved the additional grants of options to purchase up to 580,000 shares of common stock to certain employees of the Company, at an exercise price of $22.32. The exercise price represents the closing price of the Company's common stock on the grant date. These options are divided equally into two tranches: options that vest over four years and are subject only to passage of time (with 25% of options vesting on the first anniversary and the remainder vesting on a quarterly basis over the following three years) (the "Time-based Tranche") and options that are subdivided in four equal sub-tranches that vest upon the achievement of certain performance criteria set by the board of directors for each of 2011, 2012, 2013 and 2014 (the "Performance-based Tranche").

        On February 16, 2011, the Compensation Committee of the Company's Board approved performance criteria for the 2011 Performance-based sub-tranche in respect of options to purchase an aggregate of 512,500, 43,125, 15,000 and 72,500 shares of common stock, under the October 2009, December 2009, April 2010 and February 2011 grants, respectively.

• Equity-based incentive awards

        Pursuant to the Company's 2009 Retention Bonus Program, each recipient of an option granted in October 2009 (including both Time-based and Performance-based tranches) will have the right to receive potential cash payments in respect of any appreciation of the Company's share price above $14.00 per share, capped at $16.80 per share, and tied to both the vesting and exercise of the corresponding stock options. The Company remeasures these awards at each reporting date at their fair value until settlement, to the extent that this value does not exceed the maximum benefit available to option holders. The fair value of unsettled awards is recognized in liabilities.

        The following assumptions were used in the option-pricing model to assess the fair values of the options granted in the six months ended June 30, 2011:

	Options
Risk free interest rate	0.29-2.37%
Expected option life (years)	1.0-5.0
Expected dividend yield	2.87%-3.49%
Volatility factor	73.5-94.3%
Weighted-average grant date fair value (per share)	$13.14

        The following table summarizes common stock options and equity-based incentive awards activity for the Company during the six months ended June 30, 2011:

	Common Stock Options					Equity-based incentive awards
	Quantity			Weighted Average Exercise Price		Quantity			Weighted Average Exercise Price
Outstanding as of December 31, 2010		7,426,499		$	16.78		3,192,483			14.00
Granted		933,125			18.88		512,500			14.00
Exercised		(335,681	)		15.37		(213,406	)		14.00
Forfeited		(118,646	)		16.45		(69,688	)		14.00
Expired		(73,125	)		15.21		—			—
Outstanding as of June 30, 2011		7,832,172			17.04		3,421,889			14.00

        The following table summarizes information about nonvested common stock options:

	Common Stock Options					Equity-based incentive awards
	Quantity			Weighted average grant-date fair value		Quantity			Weighted average grant-date fair value
Nonvested as of December 31, 2010		4,204,468		$	10.97		2,276,667		$	2.80
Granted		933,125			12.30		512,500			2.80
Vested		(1,311,940	)		11.50		(613,958	)		2.80
Forfeited		(118,646	)		9.91		(69,688	)		2.80
Nonvested as of June 30, 2011		3,707,007			11.28		2,105,521			2.80

        As of June 30, 2011, the total compensation cost related to unvested granted awards not yet recognized of $28,876 is to be recognized over a weighted average period of 2.67 years.