(17)	Stock Compensation Plans

We provide compensation to certain employees using stock based awards. Below is an overview of our stock compensation plans:

2006 Long-Term Incentive Plan (the “2006 Plan”):

Our 2006 Plan permits a total of 1,500,000 shares of AMCOL common stock to be awarded to eligible directors and employees through the use of nonqualified stock options, incentive stock options, restricted stock or restricted stock units, and stock appreciation rights. Different terms and conditions apply to each form of award made under the plan. Awards granted prior to 2009 have a six year life from the date of grant and vest ratably over a three year period from the date of grant. Awards granted in 2009 have a ten year life from the date of grant and vest ratably over a three year period from the date of the grant. No awards could be made pursuant to this plan after May 2010 when the 2010 Long-Term Incentive Plan was adopted as discussed later herein.

2010 Long-Term Incentive Plan (the “2010 Plan”):

On May 6, 2010, our shareholders approved the 2010 Plan. This plan permits a total of 2,000,000 shares of AMCOL common stock to be awarded to eligible directors and employees through the use of nonqualified stock options, incentive stock options, restricted stock or restricted stock units, and stock appreciation rights. Different terms and conditions apply to each form of award under the plan. Awards granted under this plan have a ten year life from the date of grant and vest ratably over a three year period from the date of the grant. At any time, the Board of Directors may amend the plan, which automatically expires on May 7, 2020. The total number of securities remaining available for future awards under this plan at December 31, 2013 was 795,852 shares.

Nonqualified stock options and stock appreciation rights:

For purposes of calculating compensation cost, we estimate the fair value of each award on the date of grant using the Black-Scholes option-pricing model. The assumptions used in calculating the fair value of awards granted and the weighted average grant date fair value per share during the years ended December 31, 2013, 2012, and 2011 are as follows:

	2013	2012	2011
Risk-free interest rate	1.0%	1.0%	2.2%
Expected life in years	5.37	5.39	5.51
Expected dividend yield	2.6%	2.3%	2.5%
Expected volatility	56.0%	56.4%	49.0%
Weighted-average per share fair value of awards granted	$12.25	$12.36	$11.42

The risk-free interest rate is derived using the zero-coupon yield on the grant date. The expected life is calculated using our actual historical exercise behavior in combination with an estimate of when vested and unexercised options will be exercised. Expected volatility is based on the historical volatility of our stock price over the expected life of the award.

We recorded stock compensation expense of $3.8, $4.5 and $3.2 in 2013, 2012 and 2011, respectively. At December 31, 2013, we had approximately $2.0 of unrecognized stock compensation expense, which is expected to be recognized over a weighted-average period of 0.7 years. We expect to satisfy the exercise of these stock compensation awards by issuing new shares of common stock.

Changes in options outstanding are summarized as follows:

	December 31, 2013					December 31, 2012					December 31, 2011
				Weighted					Weighted					Weighted
				Average					Average					Average
2006 Plan				Exercise					Exercise					Exercise
				Price					Price					Price
	Awards			Per Share		Awards			Per Share		Awards			Per Share
Awards outstanding at January 1		883,109		$	22.84		1,189,012		$	22.91		1,389,598		$	23.02
Exercised		(349,551	)		25.25		(297,528	)		23.11		(170,998	)		24.04
Forfeited		-			-		(3,125	)		23.24		(20,087	)		20.48
Expired		(49,224	)		29.84		(5,250	)		23.89		(9,501	)		23.64
Awards outstanding at December 31		484,334			20.39		883,109			22.84		1,189,012			22.91
Awards exercisable at December 31		484,334			20.39		781,574			22.79		885,003			23.67

	December 31, 2013					December 31, 2012					December 31, 2011
				Weighted					Weighted					Weighted
				Average					Average					Average
2010 Plan				Exercise					Exercise					Exercise
				Price					Price					Price
	Awards			Per Share		Awards			Per Share		Awards			Per Share
Awards outstanding at January 1		750,296		$	30.20		356,050		$	30.66				$	-
Granted		268,300			30.47		417,420			29.80		379,425			30.66
Exercised		(26,113	)		30.36		(567	)		30.66		-			-
Forfeited		(18,015	)		30.16		(22,107	)		30.12		(23,375	)		30.66
Expired		-			-		(500	)		30.66		-			-
Awards outstanding at December 31		974,468			30.27		750,296			30.20		356,050			30.66
Awards exercisable at December 31		350,403			30.34		117,219			30.66		-			-

The following table summarizes information about intrinsic value of awards exercised, fair value of awards vested and grant date fair value of awards granted during 2013, 2012 and 2011:

All Plans	2013		2012		2011
Intrinsic value of awards exercised during the year	$	2.6	$	3.6	$	5.1
Fair value of awards vested during the year		4.0		2.9		2.4
Grant date fair value of awards granted during the year		3.3		5.2		4.3

The following table summarizes information about stock compensation awards outstanding and exercisable at December 31, 2013:

Weighted

All Plans

Average

Number

Exercise

Remaining

Price

Intrinsic

Contractual

Awards

Per Share

Value

Life (Yrs.)

Awards outstanding at December 31, 2013

1,458,802

26.99

10.2

7.05

Awards exercisable at December 31, 2013

834,737

24.57

7.9

6.07

The following table summarizes information about our nonvested stock compensation awards outstanding:

	December 31, 2013					December 31, 2012					December 31, 2011
				Weighted					Weighted					Weighted
All Plans -				Average					Average					Average
Nonvested Awards				Grant date					Grant date					Grant date
				Fair value					Fair Value					Fair Value
	Awards			Per Share		Awards			Per Share		Awards			Per Share
Nonvested awards outstanding at January 1		734,612		$	11.55		660,059		$	9.80		635,726		$	7.87
Granted		268,300			12.25		417,420			12.36		379,425			11.42
Vested		(360,832	)		11.00		(317,635	)		8.99		(311,630	)		7.80
Forfeited		(18,015	)		12.09		(25,232	)		11.59		(43,462	)		9.77
Nonvested awards outstanding at December 31		624,065			12.15		734,612			11.55		660,059			9.80

Restricted Stock Awards:

Restricted stock awards are subject to performance conditions established by the Compensation Committee of the Board of Directors. Restricted stock awards do not pay dividends or allow voting rights during the vesting period. The fair value of these awards is equal to the quoted market price of our common stock on the grant date, discounted by the present value of the stream of dividends over the vesting period of the award. The fair value is amortized to compensation expense ratably over the performance period if achievement of the performance conditions is considered probable.

	December 31, 2013					December 31, 2012					December 31, 2011
				Weighted					Weighted					Weighted
				Average					Average					Average
2010 Plan				Grant Date					Grant Date					Grant Date
				Fair Value					Fair Value					Fair Value
	Awards			Per Share		Awards			Per Share		Awards			Per Share
Awards outstanding at January 1		49,997		$	30.66		75,000		$	30.66		-		$	-
Granted		129,700			28.94		-			-		77,000			30.66
Vested		(34,998	)		30.56		(25,003	)		30.66		-			-
Forfeited		(1,700	)		28.95					-		(2,000	)		30.66
Awards outstanding at December 31		142,999			29.15		49,997			30.66		75,000			30.66

In 2009, we granted 40,000 shares of performance based restricted stock with December 2012 vest date to our executive officers pursuant to our 2006 Plan. These restricted awards had a grant date fair value of $28.42 per share. All these shares were cancelled in December 2012 as the performance targets were not met.

We recorded expense of $1.3, $0.0 and $1.7 for our restricted stock awards in 2013, 2012 and 2011, respectively. At December 31, 2013, we had approximately $2.1 of unrecognized stock compensation expense, which is expected to be recognized over a weighted-average period of 1.3 years. We expect to satisfy any future distribution of shares of restricted stock by issuing new shares of common stock.