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STOCK-BASED COMPENSATION
9 Months Ended
Sep. 30, 2011
STOCK-BASED COMPENSATION [Abstract] 
STOCK-BASED COMPENSATION
NOTE 4: STOCK-BASED COMPENSATION

Stock Options

No future grants will be made under the Company's stock option plans.  No grants of stock options have been made by the Company since July 1, 2005.  As of January 1, 2011, no options were outstanding.

Restricted Stock.

Under the restricted stock plan approved by our shareholders in July 2005, (the “Restricted Stock Plan”) directors, consultants and employees may be awarded shares of DXP's common stock.  The shares of restricted stock granted to employees as of September 30, 2011 vest 100% one year after date of grant, 33.3% each year for three years after date of grant,  20% each year for five years after the grant date or 10% each year for ten years after the grant date.  The Restricted Stock Plan provides that on each July 1 during the term of the plan each non-employee director of DXP will be granted the number of whole shares calculated by dividing $75,000 by the closing price of the common stock on such July 1. The shares of restricted stock granted to non-employee directors of DXP vest one year after the grant date.  The fair value of restricted stock awards is measured based upon the closing prices of DXP's common stock on the grant dates and is recognized as compensation expense over the vesting period of the awards.

The following table provides certain information regarding the shares authorized and outstanding under the Restricted Stock Plan at September 30, 2011:

Number of shares authorized for grants
600,000
Number of shares granted
(580,899)
Number of shares forfeited
60,414
Number of shares available for future grants
79,515
Weighted-average grant price of granted shares
$16.39

Changes in restricted stock for the nine months ended September 30, 2011 were as follows:

 
Number of
Shares
 
Weighted Average
Grant Price
Non-vested at December 31, 2010
180,056
 
$ 16.15
Granted
86,237
 
$ 22.12
Forfeited
(363)
 
$ 17.54
Vested
(58,469)
 
$ 13.66
Non-vested at September 30, 2011
207,461
 
$ 19.33

Compensation expense, associated with restricted stock, recognized in the nine months  ended September 30, 2011 and 2010 was $928,000 and $716,000, respectively.  Unrecognized compensation expense under the Restricted Stock Plan was $3,390,000 and $2,423,000 at September 30, 2011 and December 31, 2010, respectively.  As of September 30, 2011, the weighted average period over which the unrecognized compensation expense is expected to be recognized is 30 months.