Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation

Stock-Based Compensation

(15)      Stock-Based Compensation

The Company grants restricted stock awards to directors and employees under the Equity Incentive Plan.  Restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the requisite service period.  On May 15, 2011, the Company granted 104,500 restricted stock awards to employees with various vesting periods as follows:  50% or 52,250 awards that vest in three years, 25% or 26,125 awards that vest in four years, and 25% or 26,125 awards that vest in five years.  On November 17, 2011, the Company granted 60,000 restricted stock awards to employees with various vesting periods as follows:  50% or 30,000 awards that vest in three years, 25% or 15,000 awards that vest in four years, and 25% or 15,000 awards that vest in five years.  On November 17, 2011, the Company granted 42,104 restricted stock awards to directors with graded vesting over 3 years.

Non-cash stock compensation expense recognized in the Consolidated Statement of Operations related to the restricted stock awards, net of estimated forfeitures, was $420,000 in 2011 and $507,000 in 2010.  The fair value of restricted stock awards that vested during the year was $319,000 and $533,000 for the years ended December 31, 2011 and 2010, respectively.

The following table reflects the activities related to restricted stock awards outstanding for the years ended December 31, 2011 and 2010, respectively.

	Years Ended December 31,
	2011				2010
Restricted Shares	Number of Shares		Weighted Avg Fair Value at Grant Date		Number of Shares		Weighted Avg Fair Value at Grant Date
Beginning balance	449,768		$	4.40	359,710		$	5.58
Granted	206,604		3.71		228,096		4.00
Vested	(81,392	)	5.16		(136,038	)	6.85
Forfeited and surrendered	(38,247	)	4.25		(2,000	)	4.71
Ending balance	536,733		$	4.03	449,768		$	4.40

The Company recognizes compensation expense for stock options by amortizing the fair value at the grant date over the service, or vesting period.

There have been no options granted, exercised or cancelled under the 2004 Founder Stock Option Plan for the years ended December 31, 2011 or 2010.  The remaining contractual life of the 2004 Founder Stock Options outstanding was 2.15 and 3.15 years at December 31, 2011 and 2010, respectively.  All options under the 2004 Founder Stock Option Plan were exercisable at December 31, 2011 and 2010.  The weighted average exercise price of the 133,700 shares outstanding under the 2004 Founder Stock Option Plan is $5.00.

There have been no options granted, exercised or cancelled under the Director and Employee Stock Option Plan for the years  ended December 31, 2011 or 2010.  The remaining contractual life of the Director and Employee Stock Options outstanding was 2.64 and 3.64 years at December 31, 2011 and 2010, respectively. All options under the Directors and Employee Stock Option Plan were exercisable at December 31, 2011 and 2010.  At December 31, 2011 and 2010, the weighted average exercise price of the 1,045,673 shares outstanding under the Director and Employee Stock Option Plan was $6.05.

The following tables detail the amount of shares authorized and available under all stock plans as of December 31, 2011:

	Shares Reserved	Less Shares Previously Exercised/Vested	Less Shares Outstanding	Total Shares Available for Future Issuance
2004 Founder Stock Option Plan	150,000	8,000	133,700	8,300
Director and Employee Stock Option Plan	1,434,000	216,924	1,045,673	171,403
Equity Incentive Plan	1,200,000	399,763	536,733	263,504