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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

The Compensation Committee of the Company’s Board of Directors is responsible for the administration of the Company’s stock incentive plans, which include the balance of shares remaining under the 2007 Long Term Incentive Plan (the "2007 LTIP) and the 2011 Long Term Incentive Plan (the "2011 LTIP") which was approved by the shareholders in May 2011 and authorized the maximum aggregate number of shares to be issued of 3,000,000. In general, the Company's plans provide for grants of restricted stock and stock options to be issued with a per-share price equal to the fair market value of a share of common stock on the date of grant.  Option terms are specified at each grant date, but are generally are 10 years from the date of issuance.  Options generally vest over a three to five year period.  

Restricted Stock

The following table summarizes the restricted stock activity under the the Company's equity incentive plans :

 
Number
of
Shares
 
Weighted
Average
Fair Value
Per Share
Nonvested at January 1, 2010
89,705

 
$
1.65

Granted
82,248

 
$
13.86

Vested
(43,136
)
 
$
12.31

Forfeited/repurchased shares
(585
)
 
$
0.02

Nonvested at December 31, 2010
128,232

 
$
14.72

Granted
400,417

 
$
6.00

Vested
(63,299
)
 
$
1.99

Forfeited/repurchased shares
(12,783
)
 
$
15.24

Nonvested at December 31, 2011
452,567

 
$
7.09

Granted
36,640

 
$
6.55

Vested
(171,986
)
 
$
8.14

Forfeited/repurchased shares
—

 
$
—

Nonvested at December 31, 2012
317,221

 
$
6.46



Independent directors receive equity compensation each year in the form of grants with a fair value of $60,000, with vesting in six months from the date of grant.  In March 2010, certain named executive officers were granted a total of 3,539 shares with a grant date fair value of $17.68 per share, and in November 2010, the Compensation Committee of the Board of Directors approved grants of restricted stock, totaling 61,177 shares to its named executive officers, with vesting over a three year period.  The shares had a fair value on the date of grant of $13.69. In August, 2011, awards of restricted stock, totaling 360,417 shares, with a fair value of $6.00 per share, were granted to the Company's named executive officers with vesting over a five year period. On the same day, the Company's independent directors each received grants of 10,000 shares with a fair value of $6.00 per share, which vest over six months. In November, 2012, the Company's independent directors received their annual equity compensation grants of 9,160 shares, with a fair value of $6.55, which vest in May, 2013.
  
Stock Options

The following table summarizes the stock option activity under the Company's equity incentive plans:

 
Number
of
Shares
 
Weighted
Average
Exercise
Price
Per Share
 
Weighted
Average
Contractual
Life
(Years)
 
Aggregate
Intrinsic
Value
Outstanding at January 1, 2010
1,186,320

 
$
11.76

 
 
 
 

Granted
217,552

 
$
13.78

 
 
 
 

Exercised
(82,510
)
 
$
8.11

 
 
 
 

Forfeited
(12,364
)
 
$
14.97

 
 
 
 

Outstanding at December 31, 2010
1,308,998

 
$
12.30

 
 
 
 

Granted
953,800

 
$
6.02

 
 
 
 

Exercised
(32,124
)
 
$
5.78

 
 
 
 

Forfeited
(101,768
)
 
$
15.68

 
 
 
 

Outstanding at December 31, 2011
2,128,906

 
$
9.42

 
 
 
 

Granted
262,051

 
$
6.56

 
 
 
 

Exercised
(56,658
)
 
$
5.27

 
 
 
 

Forfeited
(50,457
)
 
$
7.97

 
 
 
 

Outstanding at December 31, 2012
2,283,842

 
$
9.23

 
 
 
 

 
 
 
 
 
 
 
 
Vested at December 31, 2012 and expected to vest
2,231,215

 
$
9.30

 
8.04 years
 
$
947

Exercisable at December 31, 2012
1,303,709

 
$
11.20

 
6.52 years
 
$
373



The Company calculates the fair value of each option on the date of grant using the Black-Scholes pricing model and the following weighted-average assumptions in each year:




 
2012
 
2011
 
2010
Weighted average grant-date fair value of options granted
$
4.08

 
$
4.03

 
$
6.58

Risk-free interest rate
1.42
%
 
1.5
%
 
1.5
%
Expected volatility
68.5
%
 
68.4
%
 
52.3
%
Expected term of options (in years)
6.2

 
7.5

 
5.4

Dividend yield
—
%
 
—
%
 
—
%


The risk-free interest rate is based on interest rates on U.S. Treasury zero-coupon issues that match the contractual terms of the stock option grants.  The expected term represents the period in which the Company’s equity awards are expected to be outstanding, which for the years presented is based on the exercise history.

For years ended December 31, 2012, 2011 and 2010 , compensation expense related to stock based awards outstanding for the periods was $3.1 million, $2.7 million and $2.5 million, respectively.

The Company applies a 5.5% forfeiture rate to its option grants. No options were granted in the quarter ended December 31, 2012.

In the year ended December 31, 2012, the Company received proceeds of approximately $298,000 upon the exercise of 56,658 options. In the year ended December 31, 2011, 32,124 options were exercised, generating proceeds of $185,000, and in the year ended December 31, 2010, proceeds of $669,000 were generated from the exercise of 82,510 options.

As of December 31, 2012, there was $5.4 million of unrecognized compensation cost, net of estimated forfeitures, related to the Company’s non-vested equity awards, which is expected to be recognized over a weighted average period of 3.9 years.

 
2012
 
2011
 
2010
Total intrinsic value of options exercised
$
130

 
$
143

 
$
799

Total fair value of shares vested
$
1,997

 
$
1,383

 
$
2,518