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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2011
STOCK-BASED COMPENSATION
5.
STOCK-BASED COMPENSATION
 
The Company reserved 5,625,000 shares of common stock under various Stock Incentive Plans each with a term of  ten years.  These plans provide for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted stock.  As of June 30, 2011, there were approximately 943,000 shares available for grants.
 
 
Stock-based compensation for the three and six months ended June 30, 2011 and 2010 were as follows:
 
(in thousands)
  
Three months ended
June 30,
    
Six months ended
June 30,
  
   
2011
    
2010
    
2011
    
2010
  
Pre – tax cost
   $ 372     $ 419     $ 718     $ 855  
After tax cost
   $ 240     $ 270     $ 463     $ 551  
 
Stock Options
 
Transactions involving Marine Products stock options for the six months ended June 30, 2011 were as follows:
 
   
Shares
    
Weighted Average
Exercise
Price
    
Weighted Average Remaining Contractual
Life
    
Aggregate Intrinsic
Value
  
Outstanding at January 1, 2011
     668,785     $ 3.71    
1.4 years
          
Granted
     -       -       N/A          
Exercised
     (104,050 )     1.72       N/A          
Forfeited
     -       -       N/A          
Expired
     -       -       N/A          
Outstanding and exercisable at June 30, 2011
     564,735     $ 4.08    
1.1 years
     $ 1,491,000  
 
The total intrinsic value of share options exercised was approximately $602,000 during the six months ended June 30, 2011 and approximately $17,000 during the six months ended June 30, 2010.  There were no recognized excess tax benefits associated with the exercise of stock options during the six months ended June 30, 2011 and 2010, since all of the stock options exercised in 2011 were incentive stock options which do not generate tax deductions for the Company.
 
Restricted Stock
 
The following is a summary of the changes in non-vested restricted shares for the six months ended June 30, 2011:
 
   
Shares
    
Weighted Average
Grant-Date
Fair Value
  
Non-vested shares at January 1, 2011
     876,800     $ 6.16  
Granted
     311,000       7.33  
Vested
     (180,000 )     8.21  
Forfeited
     -       -  
Non-vested shares at June 30, 2011
     1,007,800     $ 6.16  
 
The total fair value of shares vested was approximately $1,312,000 during the six months ended June 30, 2011 and $814,000 during the six months ended June 30, 2010.  Tax benefits for compensation tax deductions in excess of compensation expense totaling approximately $77,000 for the six months ended June 30, 2011 were credited to capital in excess of par value and classified as financing cash flows.  There were no tax benefits for compensation tax deductions in excess of compensation expense for the six months ended June 30, 2010.
 
Other Information
 
As of June 30, 2011, total unrecognized compensation cost related to non-vested restricted shares was approximately $5,859,000.  This cost is expected to be recognized over a weighted-average period of 2.4 years.