Stock Options And Restricted Stock

12 Months Ended

Dec. 31, 2011

Stock Options And Restricted Stock [Abstract]

Stock Options And Restricted Stock

8. STOCK OPTIONS AND RESTRICTED STOCK

The Company has adopted a stock incentive plan (the "2006 Stock Incentive Plan") that provides for the grant of non-qualified common stock options, stock appreciation rights, restricted common stock and other share-based awards. The compensation committee of the Company's board of directors (the "Committee") administers the plan. Awards under the 2006 Stock Incentive Plan may be granted to the Company's directors, executive officers and employees and other service providers.

The exercise price for any stock option granted under the 2006 Stock Incentive Plan may not be less than 100% of the fair value of the shares of common stock at the time the common stock option is granted. Each common stock option must terminate no later than ten years from the date it is granted. The 2006 Stock Incentive Plan authorizes a total of 3,333,333 shares that may be used to satisfy awards under the plan. New shares will be issued on the exercise of any option. As of December 31, 2011 and 2010 the remaining shares to be authorized under the 2006 Stock Incentive Plan were 1,883,963 and 2,064,492, respectively.

Restricted common stock granted to certain directors vests over a one-year period. The following table summarizes restricted common stock transactions for the years ended December 31, 2010, 2009 and 2008:

Years ended December 31, 2009, 2010 and 2011	Officers and Employees(1)			Directors			Total
Unvested Shares as of December 31, 2008		81,307			11,155			92,462
Issued (Weighted average grant date fair value $13.61)		538,000			14,988			552,988
Vested		(81,307	)		(11,155	)		(92,462	)
Unvested Shares as of December 31, 2009		538,000			14,988			552,988
Issued (Weighted average grant date fair value $13.35)		300,000			22,356			322,356
Vested		(83,999	)		(14,988	)		(98,987	)
Unvested Shares as of December 31, 2010		754,001			22,356			776,357
Issued (Weighted average grant date fair value $13.21)		150,000			34,446			184,446
Canceled/Forfeited		(3,917	)		—			(3,917	)
Vested		(355,414	)		(28,356	)		(383,770	)
Unvested Shares as of December 31, 2011		544,670			28,446			573,116

⁽¹⁾  Includes grants to the Company's executive officers and certain officers and employees of the Manager prior to Internalization.

Unrecognized compensation cost related to unvested restricted common stock granted as of December 31, 2011 and 2010 was $7.1 million and $9.7 million, respectively. The total fair value of restricted stock awards vested during the years ended December 31, 2011, 2010 and 2009 were $5.1 million, $1.2 million and $1.4 million, respectively, based upon the fair market value of the Company's common stock on the vesting date.

There were no common stock options granted during the years ended December 31, 2011 and 2010. As of December 31, 2011 and 2010, there were 131,088 options outstanding, all of which were vested and exercisable, with a weighted average exercise price of $30.00 and an expiration date of February 2016. The common stock options were remeasured during the vesting period using the Black-Scholes model based on the following assumptions:

	Year ended December 31, 2009
Expected life		7.0 years
Discount rate		2.832	%
Volatility		86.78	%
Dividend yield		15.69	%

The estimated fair value of the common stock option granted was $3.31 for the year ended December 31, 2009. The components of share based compensation expense for each period were as follows (in thousands):

	Years ended December 31,
	2011		2010		2009
Options granted to CEO	$	—	$	—	$	57
Restricted shares granted to officers and employees(1)		4,848		1,185		747
Restricted shares granted to certain directors		415		274		181
Total shared based compensation expense	$	5,263	$	1,459	$	985

⁽¹⁾  Includes grants to employees of the Company's Manager prior to Internalization.