NOTE L—STOCK-BASED COMPENSATION

On May 13, 2010, the stockholders of the Company approved the 2010 Omnibus Incentive Plan (the "2010 Plan") and terminated the Amended and Restated 2002 Stock Incentive and Bonus Plan (the "2002 Plan") and 2003 Non-Employee Directors' Stock Incentive Plan (the "2003 Plan"). In conjunction with this approval, it was determined that no new awards will be granted under the 2002 Plan or the 2003 Plan; however, awards granted under either the 2002 Plan or the 2003 Plan that were outstanding will remain outstanding and continue to be subject to all of the terms and conditions of the 2002 Plan or the 2003 Plan, as applicable.

The 2010 Plan provides that 2.5 million shares of Common Stock are reserved for issuance, subject to adjustment as set forth in the 2010 Plan; provided, however, that only 1.5 million shares may be issued pursuant to the exercise of incentive stock options and vesting of restricted stock units. Of these 2.5 million shares, 2.0 million are shares that are newly authorized for issuance under the 2010 Plan and 0.5 million are unissued shares not subject to awards that have been carried over from the shares previously authorized for issuance under the terms of the 2002 Plan and the 2003 Plan. Unless earlier terminated by the Board of Directors, the 2010 Plan will remain in effect until the earlier of (i) the date that is ten years from the date the plan is approved by the Company's stockholders, which is the effective date for the plan, namely May 13, 2020, or (ii) the date all shares reserved for issuance have been issued.

As of December 31, 2012, of the 2.5 million shares of common stock authorized for issuance under the Company's 2010 Plan, approximately 1.2 million shares have been issued and 0.2 million have been canceled, leaving 1.5 million shares available for future issuance. Total unrecognized stock-based compensation cost related to unvested restricted stock units was approximately $12.7 million at December 31, 2012, and is expected to be expensed as compensation expense over approximately four years.

Restricted Stock Units

For the year ended December 31, 2012, 2011, and 2010, the Company has included approximately $8.1 million, $8.1 million, and $7.5 million, respectively, of stock-based compensation cost in the accompanying Consolidated Statements of Income and Comprehensive Income for the 2002, 2003, and 2010 Plans. Compensation expense relates to restricted stock unit grants, as the amount of expense related to options is immaterial in all periods presented. The total value of the restricted stock units is expensed ratably over the requisite service period of the employees receiving the awards.

The summary of restricted stock units and weighted average exercise prices are as follows:

	Employee Awards					Director Awards

	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Nonvested at December 31, 2009		986,461		$	12.29		129,123		$	13.21
Granted		454,950			18.45		75,710			18.48
Vested		(585,228	)		11.36		(71,079	)		12.86
Forfeited		(48,112	)		13.99		—			—

Nonvested at December 31, 2010		808,071		$	16.33		133,754		$	16.38
Granted		487,620			25.25		59,698			25.72
Vested		(374,067	)		14.61		(62,533	)		15.46
Forfeited		(28,101	)		19.17		(15,001	)		20.80

Nonvested at December 31, 2011		893,523		$	21.84		115,918		$	21.12
Granted		468,500			20.47		63,497			22.35
Vested		(318,927	)		20.17		(58,059	)		19.34
Forfeited		(231,537	)		21.26		—			—

Nonvested at December 31, 2012		811,559		$	21.76		121,356		$	22.62

During the years ended December 31, 2012 and 2011, 376,986 and 436,600 restricted stock units of common stock with an intrinsic value of $7.6 million and $6.4 million, respectively, became fully vested. As of December 31, 2012, total unrecognized compensation cost related to restricted stock units of common stock was approximately $12.7 million and the related weighted-average period over which it is expected to be recognized is approximately two years. The aggregate granted units have vesting dates through August 2016. The 2012 and 2011 grants totaled $11.0 million and $13.3 million, respectively, at the dates of grant, and are amortized to expense ratably over the vesting period of granted units.

Options

The summary of option activity and weighted average exercise prices are as follows:

	Employee Awards					Director Awards					Non-Qualified Awards

	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at December 31, 2009		764,332		$	13.74		95,464		$	11.46		406,000		$	5.95
Granted		—			—		—			—		—			—
Terminated		(1,500	)		4.63		—			—		—			—
Exercised		(328,332	)		14.16		(15,373	)		13.82		(30,000	)		5.50

Outstanding at December 31, 2010		434,500		$	13.45		80,091		$	11.08		376,000		$	5.98
Granted		—			—		—			—		—			—
Terminated		—			—		(10,373	)		10.79		—			—
Exercised		—			—		(41,459	)		10.38		(376,000	)		5.98

Outstanding at December 31, 2011		434,500		$	13.45		28,259		$	11.99		—		$	—
Granted		—			—		—			—		—			—
Terminated		(1,500	)		15.60		—			—		—			—
Exercised		(230,000	)		14.82		(9,404	)		16.04		—			—

Outstanding at December 31, 2012		203,000		$	11.88		18,855		$	10.02		—		$	—

Aggregate intrinsic value at December 31, 2012	$	2,411,300				$	189,003				$	—
Weighted average remaining contractual term (years)		1.0					1.0					—

The intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $3.6 million and $2.7 million, respectively. Options exercisable under the Company's stock-based compensation plans at December 31, 2012 and 2011 were 0.2 million and 0.5 million shares, respectively, with a weighted average exercise price of $11.72 and $13.36, respectively, an average remaining contractual term of 1.0 and 1.7 years, respectively, and an aggregate intrinsic value of $2.6 million and $6.2 million as of December 31, 2012 and 2011. Cash received by the Company related to the exercise of options during the years ended December 31, 2012 and 2011 amounted to $3.6 million and $2.7 million. As of December 31, 2012 and 2011, there is no unrecognized compensation cost related to stock option awards.

The summary of the options vested and exercisable is as follows for the three years ended at December 31:



2012	203,000	18,855	—
2011	434,500	28,259	—
2010	434,500	80,091	376,000

Information concerning outstanding and exercisable options as of December 31, 2012 is as follows:

	Options Outstanding and Exercisable

			Weighted Average
Range of Exercise Prices	Number of Options or Awards		Remaining Life (Years)		Exercise Price
$ 5.09 to $12.00		113,482		1.1		8.02
12.10 to 17.60		108,373		1.0		15.60

		221,855		1.0	$	11.72