16. Stock Based Compensation

On May 3, 2011, our shareholders approved the 2011 Incentive Stock Plan (the "Plan"). The Plan's purpose is to enhance the profitability and value of the Company for the benefit of its shareholders by attracting, retaining, and motivating officers and other key employees who make important contributions to the success of the Company. The Plan reserves 750,000 shares of the Company's Common Stock (as such amount may be adjusted in accordance with the terms of the Plan, the "Authorized Plan Amount") to be issued for grants of several different types of incentives including incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock incentives, and performance share incentives. Any shares of Common Stock granted under options or stock appreciation rights shall be counted against the Authorized Plan Amount on a one-for-one basis and any shares of Common Stock granted as awards other than options or stock appreciation rights shall be counted against the Authorized Plan Amount as two (2) shares of Common Stock for every one (1) share of Common Stock subject to such award. Authorized and issued shares of Common Stock or previously issued shares of Common Stock purchased by the Company for purposes of the Plan may be issued under the Plan.

All of our stock-based compensation to employees is recorded as selling, general and administrative expenses in our Consolidated Statements of Operations based on the fair value at the grant date of the award. These non-cash compensation costs were included in the depreciation and amortization amounts in the Consolidated Statements of Cash Flows.

A summary of stock-based compensation expense is as follows:

	Year Ended December 31,

	2013		2012		2011
	(in thousands)
Restricted stock/unit awards ("RSA")	$	363	$	421	$	553
Performance share incentives ("PSI")		258		241		191
Stock options		—		—		32


	$	621	$	662	$	776

Restricted stock/unit awards, performance share incentives and stock options are the only award types currently outstanding. Restricted stock/unit awards and performance share incentives are discussed below. Stock option activity is not significant.

Restricted Stock/Unit Awards

We award restricted stock/units (the "RSA") to employees. RSAs vest at the end of the service period and are subject to forfeiture as well as transfer restrictions. During the vesting period, the RSAs are held by the Company and the recipients are entitled to exercise rights pertaining to such shares, including the right to vote such shares.

The RSAs are valued based on the closing market price of our common stock on the date of the grant. The total deferred compensation associated with the RSAs awarded in 2013, 2012 and 2011 was $0.6 million, $0.6 million and $0.5 million, respectively. The deferred compensation is being amortized on a straight-line basis over four years for all outstanding RSAs.

All outstanding RSAs are unvested. A summary of the RSA activity is as follows:

	Year Ended December 31,

	2013			2012			2011
RSAs outstanding at beginning of period		212,340			264,640			247,840
Awarded		45,375			70,500			63,800
Vested		(91,840	)		(111,300	)		(42,000	)
Cancelled or forfeited		—			(11,500	)		(5,000	)


RSAs outstanding at end of period		165,875			212,340			264,640




Unamortized deferred compensation cost (in millions)	$	1.2		$	0.9		$	0.9

Performance Share Incentives

We award performance share incentives ("PSI") to employees. PSIs are expressed as shares of the Company's common stock. They are earned only if the Company meets specific performance targets over the specified performance period. During this period, PSI recipients have no voting rights. When we declare dividends, such dividends are deemed to be paid to the recipients. We withhold and accumulate the deemed dividends until such point that the PSIs are earned. If the PSIs are not earned, the accrued dividends are forfeited. The payment of PSIs can be in cash, or in the Company's common stock, or a combination of the two, at the discretion of the Company. The PSIs were first awarded to employees in 2011.

All outstanding PSIs are unvested. A summary of the PSI activity is as follows:

	Year Ended December 31,

	2013		2012			2011
PSIs outstanding at beginning of period		102,500		54,000			—
Awarded		3,375		52,500			54,000
Cancelled or forfeited		—		(4,000	)		—


PSIs outstanding at end of period		105,875		102,500			54,000

The PSIs are valued based on the closing market price of our common stock on the date of the grant. The total deferred compensation associated with the PSIs awarded in 2013 and 2012 was $0.1 million and $0.5 million, respectively. The deferred compensation is being recognized into earnings based on the passage of time and achievement of performance targets.