Stock Options and Restricted Stock

6 Months Ended

Jun. 30, 2011

Stock Options and Restricted Stock

Stock Options and Restricted Stock

Note 2. Stock Options and Restricted Stock

In connection with the initial public offering of shares of the Company's common stock in November 2005, the Company's shareholders approved the AMERISAFE 2005 Equity Incentive Plan (the "2005 Incentive Plan") and the AMERISAFE 2005 Non-Employee Director Restricted Stock Plan (the "2005 Restricted Stock Plan"). In June 2010, the Company's shareholders approved an amendment to the AMERISAFE 2005 Non-Employee Director Restricted Stock Plan (the "2010 Restated Restricted Stock Plan"). See Note 13 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2010 for additional information regarding the Company's incentive plans.

Pursuant to the 2010 Restated Restricted Stock Plan, 11,830 shares of restricted common stock granted in June 2010 to non-employee directors vested on June 15, 2011, the date of the annual shareholders' meeting. On June 15, 2011, non-employee directors were granted 9,513 shares of restricted common stock in accordance with the 2010 Restated Restricted Stock Plan. The market value of the restricted shares granted was $0.2 million.

During the six months ended June 30, 2011, there were 217,750 stock options exercised. Related to these exercises, the Company received $2.0 million of stock option proceeds. During the six months ended June 30, 2010, there were 95,472 stock options exercised. Related to these exercises, the Company received $0.9 million of stock option proceeds.

The Company recognized share-based compensation expense of $0.1 million in the quarter ended June 30, 2011, compared to $0.2 million for the same period in 2010. The Company recognized share-based compensation expense of $0.3 million in the six months ended June 30, 2011, compared to $0.5 million for the same period in 2010.