17.

Stock Option Plans and Warrants

The Company recognizes the cost of all employee stock awards on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures.

The Company’s 2007 Stock Incentive Plan (“Incentive Plan”) provided for the grant of stock options, stock appreciation rights, restricted stock and restricted stock units to directors, executives, and other employees (“employees”) of the Company and to non-employee service providers of the Company. Following a shareholder resolution in April 2003 and the stock splits of May 2003, May 2004 and June 2006, the Incentive Plan authorized, and the Company reserved for future issuance, up to 1,397,333 shares of Common Stock (subject to an anti-dilution adjustment in the event of a stock split, re-capitalization, or similar transaction). On the Effective Date of the Plan of Reorganization on June 5, 2013, all of the Company’s shares of common stock outstanding prior to the Effective Date of the Plan of Reorganization were cancelled. In addition, the Incentive Plan was terminated and all outstanding awards were cancelled.

A summary of the Company’s stock option and restricted stock units activity, and related information for the twelve month periods ended December 31, 2012, 2011 and 2010 is as follows:


Total Options	Number of Options			Weighted- Average Exercise Price

Outstanding at January 1, 2010		1,481,550		$	27.85
Granted		82,000		$	28.70
Exercised		(194,650	)	$	18.83
Forfeited		(28,500	)	$	38.60
Expired		(40,000	)	$	26.25

Outstanding at December 31, 2010		1,300,400		$	29.06
Exercisable at December 31, 2010		970,450		$	30.78

Outstanding at January 1, 2011		1,300,400		$	29.06
Granted		161,250		$	17.14
Exercised		(18,125	)	$	3.93
Forfeited		(27,833	)	$	28.80
Expired		(93,325	)	$	26.85

Outstanding at December 31, 2011		1,322,367		$	27.81
Exercisable at December 31, 2011		1,044,125		$	29.27

Outstanding at January 1, 2012		1,322,367		$	27.81
Granted		0		$	0.00
Exercised		0		$	0.00
Forfeited		(238,937	)	$	27.66
Expired		(98,750	)	$	32.58

Outstanding at December 31, 2012		984,680		$	27.36
Exercisable at December 31, 2012		956,784		$	27.77


Nonvested restricted stock units	Number of Restricted Stock Units			Weighted- Average Grant Date Fair Value
Nonvested at January 1, 2010		79,074		$	44.63
Granted		49,752		$	27.34
Vested		(22,100	)	$	34.66
Forfeited		(27,576	)	$	46.81

Nonvested at December 31, 2010		79,150		$	35.82

Nonvested at January 1, 2011		79,150		$	35.82
Granted		125,678		$	9.82
Vested		(31,267	)	$	43.20
Forfeited		(10,604	)	$	16.61

Nonvested at December 31, 2011		162,957		$	15.15

Nonvested at January 1, 2012		162,957		$	15.15
Granted		448,152		$	4.45
Vested		(1,458	)	$	46.96
Forfeited		(85,275	)	$	10.87

Nonvested at December 31, 2012		524,376		$	6.96


Nonvested restricted stock	Number of Restricted Stock			Weighted- Average Grant Date Fair Value
Nonvested at January 1, 2010		0		$	0.00
Granted		46,001		$	29.84
Vested		0		$	0.00
Forfeited		0		$	0.00

Nonvested at December 31, 2010		46,001		$	29.84

Nonvested at January 1, 2011		46,001		$	29.84
Granted		47,618		$	21.01
Exercised		(1,000	)	$	35.01
Forfeited		(7,501	)	$	29.73

Nonvested at December 31, 2011		85,118		$	24.85

Nonvested at January 1, 2012		85,118		$	24.85
Granted		405,915		$	4.36
Exercised		(35,815	)	$	25.51
Forfeited		(139,087	)	$	9.75

Nonvested at December 31, 2012		316,131		$	5.11

During the year ended December 31, 2012, the range of exercise prices for outstanding options was $2.00 to $60.92. During 2012, the weighted average remaining contractual life of options outstanding was 4.6 years. Exercise prices for options exercisable as of December 31, 2012 ranged from $2.00 to $60.92.

The Company has previously issued stock awards to employees under stock based compensation plans. Under the Plan of Reorganization all existing company stock awards were cancelled as of the Effective Date on June 5, 2013.

During the year ended December 31, 2012 and the year ended December 2011, the Company recognized compensation cost of $3.0 million and $2.6 million and a related deferred tax asset of $0.1 million and $0.5 million, respectively.

As of December 31, 2012, there was $1.3 million of total unrecognized compensation cost related to non-vested stock options, restricted stock and restricted stock units granted under the Plan.

Total cash received from exercise of stock awards during the year ended December 31, 2012 amounted to $15.

During the year ended December 31, 2012 no options were granted. For the year ended December 31, 2012, the compensation expense related to all options granted prior to 2012 was calculated based on the fair value of each option grant using the binomial distribution model. The Company has never paid cash dividends and does not currently have plans to pay cash dividends, and thus has assumed a 0% dividend yield. Expected volatilities are based on average of implied and historical volatility projected over the remaining term of the options. The expected life of stock options is estimated based on historical data on exercise of stock options, post-vesting forfeitures and other factors to estimate the expected term of the stock options granted. The risk-free interest rates are derived from the U.S. Treasury yield curve in effect on the date of grant for instruments with a remaining term similar to the expected life of the options. In addition, the Company applies an expected forfeiture rate when calculating stock-based compensation expenses. The estimate of the forfeiture rates is based primarily upon historical experience of employee turnover. As individual grant awards become fully vested, stock-based compensation expense is adjusted to recognize actual forfeitures. The following weighted-average assumptions were used in the calculation of fair value:


	2011
Fair Value	$	7.60
Dividend Yield		0	%
Expected Volatility		66.1	%
Weighted Average Volatility		66.1	%
Risk Free Interest Rate		3	%
Expected Life of Options from Grant		3.2