NOTE 4—EQUITY AWARDS AND OTHER INCENTIVE COMPENSATION

We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. Total stock-based compensation expense recognized during the three and six months ended June 30, 2014 was $0.1 million and $0.6 million, respectively, and for the three and six months ended June 30, 2013 was $0.2 million and $0.6 million, respectively. These amounts are included in general and administrative expenses in our consolidated statements of operations.

Nonqualified stock options ("Stock Options"), restricted stock units ("RSUs") and cash-based performance awards ("Performance Awards") are approved by the Compensation Committee of the Board of Directors ("BOD") and are granted to executive officers, certain key employees and non-employee members of the BOD as permitted under the 2010 Long-Term Incentive Plan ("2010 Plan"). Additionally, effective in January 2014, the Compensation Committee awarded common stock, pursuant to the 2010 Plan, to non-employee directors who have completed a minimum of four years of service and have met the applicable stock ownership guidelines. For those non-employee directors who have not met these criteria, the annual equity award will continue to be in the form of RSUs. Stock Options primarily vest ratably over three years and RSUs granted to employees and executive officers primarily vest and become non-forfeitable upon the third anniversary of the date of grant. RSUs granted to non-employee directors vest immediately and are delivered upon the date that is the earlier of termination of service on the Board of Directors or the consummation of a change of control of the Company. The Performance Awards relate to the achievement of defined levels of performance and are generally measured by the level of the Company's Corporate Free Cash Flow (as defined) over a one or two-year Performance Period depending upon the award agreement. If the Performance Award levels are achieved, the awards earned will vest and become payable at the end of the Vesting Period, defined as either a one or two calendar year period following the Performance Period.

On January 24, 2014, the Compensation Committee of the Board of Directors of the Company approved the grant of 85,100 RSUs with a fair value of $5.26 per unit, the NASDAQ average price per share on that date, to executive officers and certain key employees under the 2010 Plan, and the grant of 68,442 shares of the Company's common stock with a fair value of $5.26 per share, the NASDAQ average price per share on that date, to non-employee members of the BOD under the 2010 Plan.

As of June 30, 2014, we have approximately $0.6 million of unrecognized incentive compensation expense related to Performance Awards that, excluding any acceleration triggered by the Mergers, is expected to be recognized over a weighted-average period of approximately 1.42 years.

A summary of the Stock Option activity for the six months ended June 30, 2014 is as follows:

			Range of Exercise Prices		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life		Aggregate Intrinsic Value

							(in years)		(in millions)
Outstanding—December 31, 2013	852,000		$	2.44–16.27	$	5.14		6.81	$	1.6
Granted	—			—		—
Exercised	(308,134	)		2.32–3.94		2.51
Expired	—			—		—
Forfeited	(104,833	)		2.44–3.94		3.23


Outstanding—June 30, 2014	439,033		$	2.44–16.27	$	7.45		5.33	$	0.5




Exercisable at June 30, 2014	320,522		$	2.44–16.27	$	8.98		4.30	$	0.3

As of June 30, 2014, there was $0.2 million of unrecognized compensation expense related to unvested stock option awards that, excluding any acceleration triggered by the Mergers, is expected to be recognized over a weighted-average period of approximately 1.28 years.

A summary of the RSU activity for the six months ended June 30, 2014 is as follows:

			Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Life		Aggregate Fair Value

					(in years)		(in millions)
Unvested outstanding as of December 31, 2013	223,100		$	2.85		1.65	$	1.2
Granted	85,100			5.26
Vested	(100,100	)		2.57
Forfeited	(36,600	)		3.06


Unvested outstanding as of June 30, 2014	171,500		$	4.16		2.32	$	1.0

As of June 30, 2014, we had approximately $0.5 million of unrecognized compensation expense related to unvested RSUs that, excluding any acceleration triggered by the Mergers, is expected to be recognized over a weighted-average period of approximately 2.32 years.