Equity Incentive Plans

12 Months Ended

Dec. 31, 2013

Equity Incentive Plans

10. 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, 2013, 528,227 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.

At December 31, 2013, the Company did not have any stock options outstanding.  No options have been granted since 2007 and there has not been any related compensation expense since 2010.

Restricted Stock Awards

For the year ended December 31, 2013, the Company issued 264,316 shares of restricted common stock and recognized an expense of $178 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 $2,416 of compensation expense in the current year related to restricted shares issued in prior years.  At December 31, 2013, the Company had unrecorded compensation expense of $10,135 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, 2013.  The following table presents information about the Company’s restricted stock awards for the periods presented:

	2013					2012
				Weighted					Weighted
	Shares of			Average		Shares of			Average
	Restricted			Price on		Restricted			Price on
	Stock			Grant Date		Stock			Grant Date
Shares non-vested at beginning of year		351,192		$	27.75		253,436		$	27.01
Granted		264,316			18.76		160,534			28.47
Cancelled/forfeited		-			-		-			-
Vested		(91,260	)		20.92		(62,778	)		29.37
Shares non-vested at end of year		524,248		$	23.22		351,192		$	27.75

The total fair value of restricted stock awards vested during the year ended December 31, 2013, 2012 and 2011 were $1,871, $1,807 and $829, respectively, based upon the fair market value of the Company’s common stock on the vesting date.