Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Restricted Unit Activity with Respect to 2009 Equity Award Plan

Restricted Unit activity with respect to the Company’s 2009 Equity Award Plan was as follows for the year ended December 31, 2012:

RESTRICTED UNITS — SERVICE BASED VESTING


	Number Restricted Units			Weighted Average Grant Date Fair Value
Unvested at January 1, 2012		207,383		$	7.29
Vested		(44,507	)		7.03
Forfeited		(140,007	)		7.25
Cancelled		(22,869	)		8.05

Unvested at December 31, 2012		—		$	—

RESTRICTED UNITS — PERFORMANCE BASED AND SERVICE BASED VESTING


	Number Restricted Units			Weighted Average Grant Date Fair Value
Unvested at January 1, 2012		102,128		$	6.87
Vested		(72,088	)		6.90
Forfeited		(30,040	)		6.80

Unvested at December 31, 2012		—		$	—

Summary of Restricted Common Stock and Restricted Units Pursuant to Equity Incentive Plans

RESTRICTED STOCK AND RESTRICTED UNITS — SERVICE BASED VESTING


	Number of Shares of Restricted Stock			Weighted Average Grant Date Fair Value of Restricted Stock		Number of Restricted Units		Weighted Average Grant Date Fair Value of Restricted Units
Unvested at January 1, 2012		1,574,064		$	4.17		40,135	$	3.26
Granted		396,726			1.43		132,450		1.51
Vested		(543,830	)		4.47		—		—
Forfeited (1)		(883,308	)		3.75		—		—
Surrendered (2)		(116,595	)		5.00		—		—

Unvested at December 31, 2012		427,057		$	1.87		172,585	$	1.92

(1)	Includes the 848,742 shares of restricted stock that the former chief executive officer of PrinceRidge and member of the Board of Managers of PrinceRidge GP and the former chairman of the Board of Managers of PrinceRidge GP forfeited in July 2012.

(2)

In December 2012, Mr. Cohen transferred 116,595 restricted shares of IFMI Common Stock to the Company in order to satisfy his obligation under the Equity Funding Agreement. See the discussion about the 2009 Restricted Units Pursuant to the 2009 Equity Award Plan above. For equity compensation purposes, these grants were treated as vested and compensation expense was fully recognized.

RESTRICTED STOCK AND RESTRICTED UNITS — PERFORMANCE BASED

AND SERVICE BASED VESTING


	Number of Shares of Restricted Stock			Weighted Average Grant Date Fair Value of Restricted Stock		Number of Restricted Units			Weighted Average Grant Date Fair Value of Restricted Units
Unvested at January 1, 2012		1,023,556		$	4.72		50,000		$	3.07
Granted		32,258			1.47		500,000			(1	)
Vested		(100,000	)		4.60		—			—
Forfeited (2)		(625,045	)		4.69		(50,000	)		3.07

Unvested at December 31, 2012		330,769		$	4.34		500,000			(1	)

(1)

During the first quarter of 2012, the Company issued 500,000 restricted units of IFMI common stock to a non-employee. FASB ASC 505-50 requires that an equity instrument issued to a non-employee should be measured by using the stock price and other measurement assumptions as of the earlier of the date at which either: (i) a commitment for performance by the counterparty has been reached; or (2) the counterparty’s performance is complete. In accordance with FASB ASC 505-50, the Company will not accrue any expense until the actual vesting date occurs. As of the grant date, the restricted units were valued at $0.

(2)

During the year ended December 31, 2012, there were 50,000 restricted units that were forfeited due to the fact that the grantee was unable to achieve certain performance thresholds, and therefore, the award would never vest. The remaining forfeitures were due to employees not fulfilling their service requirements.

Summary of Equity-Based Compensation Expense

The awards assume estimated forfeitures during the vesting period, which were updated to reflect the actual forfeitures that occurred during 2010, 2011, and 2012.

DETAIL OF EQUITY-BASED COMPENSATION INCLUDED IN COMPENSATION AND BENEFITS

(Dollars in Thousands)


For the Year Ended December 31,	Equity-Based Compensation Expense		Non Equity- Based Compensation and Benefits Expense		Total Compensation and Benefits
2012	$	1,271	$	61,680	$	62,951
2011	$	7,674	$	70,553	$	78,227
2010	$	2,505	$	74,941	$	77,446