(11) Stock Options

Incentive Stock Option Plans (“ISOP”)

Under the terms of the Company’s ISOP, under which options to purchase 4,296,000 shares of common stock can be issued, all key employees are eligible to receive non-assignable and non-transferable options to purchase shares. The exercise price of any option may not be less than the fair market value of the shares on the date of grant; provided, however, that the exercise price of any option granted to an eligible employee owning more than 10% of the outstanding common stock may not be less than 110% of the fair market value of the shares underlying such option on the date of grant. No options granted may be exercisable more than ten years after the date of grant. The options granted generally vest evenly over a three to five year period, beginning on the date of the grant.

In 2010, the Company granted incentive stock options to purchase 729,000 shares of common stock to employees. The options granted in 2010 vest annually over three years. All options granted are non-assignable and non-transferable. In 2011, the Company granted incentive stock options to purchase 20,000 shares of common stock to employees. Of those options, one third of the total option shares vest on each of the first, second, and third anniversaries of the date of grant. All options granted are non-assignable and non-transferable. In 2012, no options were granted.

Nonstatutory Stock Options (“NSSO”)

The Company did not grant any non-statutory stock options during the three years ended December 31, 2012.

Option activity within each plan is as follows:


	Incentive Stock Option Plans			Non-Statutory Stock Options Plans		Weighted Average Price Per Share			Exercisable Weighted Average Price Per Share
Balance outstanding, December 31, 2009		1,145,331			—	$	7.55		$	7.52

Options granted ($7.50)		729,000			—		7.50
Options exercised ($3.94)		(72,000	)		—		3.94
Options expired		(315,000	)		—		(7.80	)

Balance outstanding, December 31, 2010		1,487,331			—	$	7.65		$	7.77

Options granted, range from $11.32- $13.24		20,000			—		12.28
Options exercised, range from $8.10-$11.30		(48,000	)		—		8.63
Options expired		(70,817	)		—		12.38

Balance outstanding, December 31, 2011		1,388,514			—	$	7.44		$	7.26

Options exercised, range from $3.67-$14.99		(659,733	)		—		7.05
Options expired		(23,436	)		—		10.41

Balance outstanding, December 31, 2012		705,345			—	$	7.70		$	7.95

Information relating to stock options at December 31, 2012 summarized by exercise price is as follows:


	Outstanding Weighted Average						Exercisable Weighted Average
Exercise Price Per Share	Shares		Remaining Life (Months)		Exercise Price		Shares		Exercise Price
Incentive Stock Option Plan:
$7.50		678,666		91	$	7.50		166,000	$	7.50
$11.32-$14.75		26,679		92	$	12.90		13,345	$	13.52

		705,345			$	7.70		179,345	$	7.95

The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of December 31, 2011 and 2012 was as follows:


	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Months)		Intrinsic Value (thousands)
As of December 31, 2011:
Incentive Stock Option Plans:
Outstanding		1,388,514	$	7.44		62	$	8,494
Expected to Vest		1,375,499	$	7.44		61	$	8,421
Exercisable		745,514	$	7.26		22	$	4,834

As of December 31, 2012:
Incentive Stock Option Plans:
Outstanding		705,345	$	7.70		91	$	16,481
Expected to Vest		699,537	$	7.70		91	$	16,345
Exercisable		179,345	$	7.95		78	$	4,147

The total intrinsic value of options exercised during 2012, 2011 and 2010 was $15,910, $4, and $260, respectively. Cash received from stock options exercised during 2012, 2011, and 2010 was $2,996, $414, and $284 respectively. Upon exercise in 2012, the Company also received 49,638 shares which were valued on the day of exercise at $1,651.

Stock Grants

During 2012, the Company issued a total of 248,536 shares of common and restricted stock to certain employees and non-executive board members. Vesting ranges from immediate to three years from the date of grant. The fair values of the grants range from $13.34 to $34.04 per share based on the publicly traded share prices. The total fair value of $5,346 will be recognized over the related service periods. During 2012, 1,367 shares of common stock granted to employees were forfeited.

During 2011, the Company issued a total of 35,640 shares of common and restricted stock to certain employees and non-executive board members. Vesting ranges from immediate to three years from the date of grant. The fair values of the grants range from $11.26 to $12.89 per share based on the publicly traded share prices. The total fair value of $411 will be recognized over the related service periods. During 2011, 5,556 shares of common stock granted to employees were forfeited.

During 2010, the Company issued a total of 50,877 shares of common and restricted stock to certain employees and non-executive board members. Vesting ranges from immediate to three years from the date of grant. The fair values of the grants range from $6.86 to $8.32 per share based on the publicly traded share prices. The total fair value of $401 will be recognized over the related service periods. During 2010, 22,558 shares of common stock granted to employees were forfeited.

A status summary of nonvested shares as of and for the year ending December 31, 2012, is presented below:


	Number of Shares			Weighted Average Grant-Date Fair Value
Nonvested shares at January 1, 2012		101,640		$	11.37
Granted		248,536		$	21.51
Vested		(102,992	)	$	14.57
Forfeited		(1,367	)	$	20.47

Nonvested shares at December 31, 2012		245,817		$	20.23