STOCK-BASED EMPLOYEE COMPENSATION

6 Months Ended

Jun. 30, 2011

STOCK-BASED EMPLOYEE COMPENSATION [Abstract]

STOCK BASED EMPLOYEE COMPENSATION

4. STOCK-BASED EMPLOYEE COMPENSATION

The Company has stock-based compensation plans for employees and non-employee members of the Board of Directors.  The plans provide for discretionary grants of stock options, shares of restricted stock, and other stock-based awards. The plans are administered by the Compensation Committee of the Board of Directors, consisting of non-employee directors.  The Company's recognition of stock-based compensation expense in the statement of operations over the vesting period is based on the fair value of the award at the grant date.

The following table summarizes activity under our stock option plans for the six months ended June 30, 2011:

	Shares under Options (in thousands)		Weighted Average Exercise Price		Remaining Contractual Life  (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2011	290		$	14.29	0.5	$	-
Granted	-			-
Exercised	-			-
Forfeited	(290	)		14.29
Outstanding at June 30, 2011	-		$	-	-	$	-
Exercisable at June 30, 2011	-		$	-	-	$	-

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing price of our common stock on the date of determination for those awards that have an exercise price currently below the closing price.  As of June 30, 2011, there were no options outstanding to purchase shares with an exercise price below the quoted price of our common stock.  During the six months ended June 30, 2011 and 2010, the aggregate intrinsic value of options exercised under the Company's stock option plans was $0, determined as of the date of exercise.

Restricted Stock Awards

The Company granted restricted stock awards of approximately 378,000 shares on May 22, 2009 under its 2008 long-term incentive compensation plan (“LTICP”), 311,000 shares on May 23, 2008 under its 2007 LTICP, 162,000 shares on May 25, 2007 under its 2006 LTICP and 145,000 and 4,000 shares on May 23, 2006 and June 15, 2006, respectively, under its 2005 LTICP. The restricted stock awards were granted to certain employees, including officers and members of the Board of Directors, at grant prices of $1.46, $7.85, $16.79, $16.52 and $15.78 (in each case, the average of the high and low stock price from the previous day of trading) for the May 22, 2009, May 23, 2008, May 25, 2007, May 23, 2006 and the June 15, 2006 grants, respectively.  The restricted stock awards vest annually over a period of three years from the date of grant for the awards made under the 2008 and 2007 LTICPs and over a period of four years for the awards made under the 2006 and 2005 LTICPs, with accelerated vesting upon a change of control of the Company (as defined in the applicable plan).  During the restriction period, award holders do not have the rights of stockholders and cannot transfer ownership. Additionally, nonvested shares of award holders are subject to forfeiture.  These awards are forfeited and revert to the Company in the event of employment termination, except in the case of death, disability, retirement or other specified events.

A summary of restricted stock award activity under the Company's LTICPs as of June 30, 2011 and changes during the six months then ended is presented as follows:

	Number of Shares (in thousands)			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2011		252		$	4.60
Granted		-			-
Vested		(125	)		5.90
Forfeited		(64	)		5.13
Outstanding at June 30, 2011		63		$	1.46

The Company recognized approximately $99 and $115 of compensation costs related to the LTICPs during the three and six months ended June 30, 2011, respectively and $361and $750 of compensation costs related to the LTICPs during the three and six months ended June 30, 2010, respectively.  Additionally, as of June 30, 2011, there was approximately $82 of unrecognized compensation cost related to restricted stock awards granted under the Company's 2008 LTICPs.  The cost is expected to be recognized over a remaining weighted-average period of 0.9 years under the 2008 LTICPs.  There were 125 shares of restricted stock that vested during the six months ended June 30, 2011 that had been granted under the 2008, 2007 and 2006 LTICPs.

Availability for Future Issuance – As of June 30, 2011, (i) options to purchase approximately 1,823,000 shares of the Company's common stock were available for future issuance under the Company's stock option plans and (ii) options to purchase a maximum of approximately 805,000 shares of the Company's common stock were available for future issuance under the Company's LTICPs, reduced by four shares for each share of restricted stock awarded under the 2006 and 2005 LTICPs, under which an aggregate of approximately 210,000 shares of the 805,000 total shares were available for issuance as options, and reduced by two shares for each share of restricted stock awarded under the 2008 and 2007 LTICPs, under which an aggregate of approximately 595,000 of the 805,000 total shares were available for issuance as options.