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SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2011
SHARE-BASED COMPENSATION  
SHARE-BASED COMPENSATION

10.   SHARE-BASED COMPENSATION

        The Company accounts for share-based compensation arrangements, including grants of employee stock options, as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. Excess tax benefits are reported as a financing cash inflow rather than as a reduction of taxes paid.

        The total compensation expense recognized for share-based compensation was $646,000 and $735,000 for 2011 and 2010, respectively. There was no tax benefit or expense related thereto. Recognized share-based compensation was reduced for estimated forfeitures prior to vesting based primarily on historical annual forfeiture rates of approximately 3.5% and 4.0%, for 2011 and 2010, respectively. Estimated forfeitures will be reassessed in subsequent periods and may change based on new facts and circumstances.

  • Stock Options

        In May 2006, the Company's shareholders approved the 2006 Equity and Incentive Award Plan (the "2006 Plan") and an increase in the number of shares of common stock authorized under the Articles of Association by 1,000,000 shares, all of which have been reserved for issuance under the 2006 Plan. The 2006 Plan provides that the administrator can grant stock options and other equity instruments. The terms of certain grant types follow general guidelines, but the term and conditions of each award can vary at the discretion of the administrator. With respect to awards granted to non-employee directors, the administrator of the 2006 Plan is the Board of Directors. The Compensation Committee of the Board is the administrator of the 2006 Plan for all other persons, unless the Board assumes authority for administration.

        A summary of stock option award activity as of and for the year ended December 31, 2011 is presented below:

 
   Shares   Weighted
Average
Exercise
Price 		  Weighted
Average
Grant-Date
Fair Value 		  Weighted
Average
Remaining
Contractual
Term (years) 		  Aggregate
Intrinsic
Value
$(000)(1) 		 

Outstanding at December 31, 2010

     144,000   $ 27.95                    

Forfeited or Cancelled

     (57,500 ) $ 33.78   $ 13.45              
                               

Outstanding at December 31, 2011

     86,500   $ 24.08   $ 8.83     4.7   $ —  
                               

Exercisable at December 31, 2011

     68,500   $ 28.06   $ 10.04     4.1   $ —  
                               

Expected to Vest at December 31, 2011(2)

     12,913   $ 8.93   $ 3.94     7.0   $ —  
                               
(1)
For in the money options

(2)
Options expected to vest reflect estimated forfeitures.

        There were no stock option awards granted in 2011 or 2010. The fair value of stock options vested in 2011 and 2010 was $129,000 and $358,000, respectively.

        As of December 31, 2011, there was $64,000 of total unrecognized compensation for awards granted under the stock options plans that is expected to be recognized over a weighted average period of 1.3 years.

Restricted Stock

        In 2011, 120,304 restricted shares that vest as service requirements are met were granted to management employees and the Company's Board of Directors, and 92,289 shares of restricted stock vested as directors' and management service requirements were met. In 2010, 3,000 shares of restricted stock that vest as service requirements were met were granted to certain directors; and 47,972 shares of restricted stock vested as directors' and management service requirements were met. All restricted shares granted in 2011 and 2010 were granted under the 2006 Plan. The weighted average grant-date fair value of restricted stock granted during 2011 and 2010 was $5.37 and $4.98 per share, respectively.

        A summary of the activity for nonvested restricted stock awards as of and for the year ended December 31, 2011 is presented below:

 
   Shares   Weighted
Average
Grant-Date
Fair Value 		 

Nonvested balance at December 31, 2010

     235,550   $ 10.34  

Granted

     120,304   $ 5.37  

Vested

     (92,289 ) $ 6.45  

Forfeited or Cancelled

     (44,636 ) $ 11.44  
             

Nonvested balance at December 31, 2011

     218,929   $ 8.92