Equity Incentive Plans

12 Months Ended

Dec. 31, 2012

Equity Incentive Plans

11. Equity Incentive Plans

The Company’s equity incentive plans provide for the grant of awards to the Company’s employees, the Company’s manager and its employees, the Company’s independent directors, and other significant service providers. Awards may consist of nonqualified stock options, incentive stock options, restricted and unrestricted shares of stock, stock appreciation rights, phantom stock awards or other stock-based awards, and typically vest over periods of three to five years from grant date. The equity incentive plans are administered by the compensation and governance committee or by any other committee appointed by the board of directors or, in the absence of such a committee, by the board of directors. At December 31, 2012, 792,543 awards relating to shares of common stock remained available for grant. Unless previously terminated by the board of directors, awards may be granted under the equity incentive plans until the tenth anniversary of the date that the Company’s shareholders approved such plan.

Stock Option Awards

Each stock option awarded is exercisable after the period or periods specified in the award agreement, which will generally not exceed ten years from the date of grant. Stock options will be exercisable at such times and subject to such terms as determined by the compensation and governance or other administrative committee.

The Company recorded compensation expense of $0, $0, and $23, for each of the years ended December 31, 2012, 2011 and 2010, respectively, for options issued in 2007. The Company records compensation expense related to these options over the vesting period of the options. At December 31, 2012, the Company did not have any stock options outstanding.

Restricted Stock Awards

For the year ended December 31, 2012, the Company issued 160,534 shares of restricted common stock and recognized an expense of $300 related to the vesting of these shares. The shares vest over a three or five year period. The fair market value of the shares granted was determined by the closing stock market price on the date of grant. The Company also recognized $1,620 of compensation expense in the current year related to restricted shares issued in prior years. At December 31, 2012, the Company had unrecorded compensation expense of $8,727 related to the unvested shares of restricted common stock granted. This expense is expected to be recognized over a weighted average remaining period of 3.8 years as of December 31, 2012. The following table presents information about the Company’s restricted stock awards for the periods presented:

	2012					2011
	Shares of Restricted Stock			Weighted Average Price on Grant Date		Shares of Restricted Stock			Weighted Average Price on Grant Date
Shares non-vested at beginning of year		253,436		$	27.01		111,600			27.89
Granted		160,534		$	28.47		170,730			26.72
Cancelled/forfeited		—			—		—			—
Vested		(62,778	)	$	29.37		(28,894	)		28.71
Shares non-vested at end of year		351,192		$	27.75		253,436			27.01

The total fair value of restricted stock awards vested during the year ended December 31, 2012, 2011 and 2010 were $1,807, $829 and $1,848, respectively, based upon the fair market value of the Company’s common stock on the vesting date.