Note 11 - Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11. Stock-Based Compensation

On December 19, 1997, the Company’s stockholders approved the Merisel Inc. 1997 Stock Award and Incentive Plan (the “1997 Plan”).  On December 3, 2008, the Company’s stockholders approved the Merisel, Inc. 2008 Stock Award and Incentive Plan (the “2008 Plan”).  Under both the 1997 Plan and the 2008 Plan, incentive stock options and nonqualified stock options as well as other stock-based awards may be granted to employees, directors, and consultants.  The 1997 Plan authorized the issuance of an aggregate of 800,000 shares of Common Stock less the number of shares of Common Stock that remain subject to outstanding option grants under any of the Company’s other stock-based incentive plans for employees after December 19, 1997 and are not either canceled in exchange for options granted under the 1997 Plan or forfeited.  The 2008 Plan authorized the issuance of an aggregate of 500,000 shares of Common Stock, less the same limit for outstanding options.  At June 30, 2011, 51,839 shares were available for grant under the 1997 Plan, and 500,000 shares were available for grant under the 2008 Plan.  The grantees, terms of the grant (including option prices and vesting provisions), dates of grant and number of shares granted under the plans are determined primarily by the Board of Directors or the committee authorized by the Board of Directors to administer such plans, although incentive stock options are granted at prices which are no less than the fair market value of the Company's Common Stock at the date of grant.

Stock Option Grants

As of June 30, 2011, 300,000 options remain outstanding under the 1997 Plan. A summary of the Company’s stock option activity and weighted average exercise price is as follows:

	Options		Weighted Average Exercise Price
Outstanding at  December 31, 2010		300,000	$	8.33
Granted		-		N/A
Exercised		-		N/A
Canceled		-		N/A
Outstanding at  June 30, 2011		300,000	$	8.33
Options exercisable at    June 30, 2011		300,000	$	8.33
Weighted average fair value  at date of grant of options  granted during the quarter		N/A		N/A

The following table summarizes information about stock options outstanding and exercisable at June 30, 2011:

	Options Outstanding						Options Exercisable
			Weighted
			Average		Weighted				Weighted
	Number		Remaining		Average		Number		Average
Range of	Outstanding		Life		Exercise		Exercisable		Exercise
Exercise Prices	At 6/30/11		In Years		Price		At 6/30/11		Price
$5.00		100,000		3.3	$	5.00		100,000	$	5.00
$8.00		100,000		3.3	$	8.00		100,000	$	8.00
$12.00		100,000		3.3	$	12.00		100,000	$	12.00
$5.00 to $12.00		300,000			$	8.33		300,000	$	8.33

As of June 30, 2011, all stock options were fully vested. There is no total intrinsic value of options outstanding or exercisable at June 30, 2011.

As of June 30, 2011, there was no unrecognized compensation cost related to stock options.

Restricted Stock Grants

During 2007, the Company awarded 17,500 shares of restricted stock to key officers and employees under the 1997 Plan. Compensation expense, measured by the fair value at the grant date of the Company’s common stock issuable in respect of the units, was recorded over the related three-year vesting period. Compensation expense was $1 and $3 for the three and six months ended June 30, 2010 respectively. There was no compensation expense for the three and six months ended June 30, 2011.

The Company has not awarded any restricted stock grants since August 2007. As of June 30, 2011, all restricted stock grants were fully vested. As of June 30, 2011, there was no unrecognized compensation cost related to nonvested restricted share-based compensation arrangements.