15. Share Based Compensation

During 2010, the Company adopted the 2010 Omnibus Incentive Plan (the “Plan”), which permits the Company to grant to officers, employees and non-employee directors of the Company incentive compensation directly linked to the price of the Company’s stock. This plan replaced the 2005 Equity Incentive Plan. The Plan authorizes up to an aggregate of 6,045,511 shares of Company stock for awards of options to purchase shares of the Company’s common stock, restricted stock, restricted stock units (“RSU”) or appreciation rights. Shares used may be either newly issued shares or treasury shares or both. The aggregate number of shares of common stock for which awards may be issued may not exceed 6,045,511 shares, subject to the authority of the Company’s board of directors to adjust this amount in the event of a consolidation, reorganization, stock dividend, stock split, recapitalization or similar transaction affecting the Company’s common stock. All remaining unissued shares related to the Company’s previously existing 2005 and Equity and Incentive Plan were absorbed into the Plan. As of December 31, 2011, approximately 5,500,000 shares of Company common stock remained available for grants under the Plan.

The Company recognizes compensation expense under FASB ASC 718-10-25 for its share-based payments based on the fair value of the awards. The Company grants stock options at prices equal to the closing stock price of the Company’s stock on the dates the options are granted. The options have a term of ten years from the date of grant and vest primarily in equal annual installments over the four-year period following the date of grant for employee options. Employees have three months after the employment relationship ends to exercise all vested options. The fair value of each option grant is separately estimated for each vesting date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The Company has estimated the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense.

A summary of the Company’s stock option activity for the years ended December 31, 2011, 2010 and 2009 is shown below:


	2011					2010					2009
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		4,126,926		$	10.46		4,168,089		$	10.12		3,728,500		$	9.88
Granted		235,000			16.83		276,250			14.24		565,539			10.95
Forfeited		(64,533	)		14.96		(116,500	)		11.16		(92,250	)		9.26
Exercised		(525,605	)		9.20		(200,913	)		8.10		(33,700	)		7.50
Outstanding at end of year		3,771,788		$	10.96		4,126,926		$	10.46		4,168,089		$	10.12

The fair value was estimated at the date of grant with the following weighted average assumptions for the years ended December 31, 2011, 2010 and 2009:


	2011			2010			2009
Volatility		32.75	%		31.43	%		31.04	%
Risk-free interest rate		2.11	%		1.92	%		2.50	%
Weighted average expected lives in years		6.25			6.25			6.25
Dividend rate		1.65	%		1.98	%		1.98	%
Forfeiture rate		0.50	%		0.50	%		1.45	%

The weighted average grant date fair value of options granted was $6.97, $3.94 and $3.04 during 2011, 2010 and 2009, respectively. As of December 31, 2011 and 2010, all option grants outstanding had an approximate weighted average remaining life of 5.8 and 6.7 years, respectively. As of December 31, 2011 and 2010, there were approximately 3,166,000 shares and 3,118,000 shares, respectively, with a weighted average exercise price of $10.26 and $9.62, respectively, which were exercisable.

A summary of the Company’s restricted stock and restricted stock unit activity for the years ended December 31, 2011 and 2010 is shown below:


	2011					2010
	Shares or Units			Weighted Average Grant Date Fair Value		Shares or Units			Weighted Average Grant Date Fair Value
Non-vested at beginning of year		139,388		$	14.04		—		$	—
Granted		204,260			20.39		140,828			14.04
Vested		(44,225	)		14.08		—			—
Forfeited		(8,193	)		19.99		(1,440	)		13.92
Non-vested at end of year		291,230		$	22.24		139,388		$	14.04

Compensation expense for all share-based payments under ASC 718-10-30 was approximately $5,571, $3,386 and $4,241 for the years ended December 31, 2011, 2010 and 2009, respectively. The Company had approximately $5,346, $4,189 and $5,144 of unrecognized compensation cost related to all share based compensation as of December 31, 2011, 2010 and 2009, respectively.

The intrinsic value of stock options exercised during 2011, 2010 and 2009 was $6,957, $1,286 and $152, respectively. The intrinsic value of stock options that were outstanding as December 31, 2011 and 2010 was $48,247 and $29,044, respectively.

Cash received from options exercised was $5,425, $1,700 and $315 during 2011, 2010 and 2009 respectively.