(8)                     Share-based Compensation

Stock option activity for the six months ended June 30, 2011 is as follows:

During the six-month period ended June 30, 2011, the Company issued options to purchase 630 shares of common stock under the 2009 Incentive Plan to the Company’s executive officers, other employees and to new members of its Board of Directors, of which 505 were subject to achieving certain earnings metrics. These options were issued with a weighted-average exercise price of $10.84 per share, and a weighted-average grant date fair value of $5.13 per share. All of the options issued have an option termination date of ten years from the option grant date.

The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the six-month period ended June 30, 2011:

Expected option lives and volatilities are based on historical data of the Company. The risk free interest rate is calculated as the average U.S. Treasury obligation rate that corresponds with the option life.

The Company’s outstanding stock options include both non-qualified stock options, which vest over the expected life of the option grant, and performance-based stock options, which vest upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options.

Share-based compensation expense from non-qualified stock options for the three-month periods ended June 30, 2011 and 2010, was approximately $136 and $149, respectively; the related tax benefit was approximately $54 and $58, respectively. Share-based compensation expense from non-qualified stock options for the six-month periods ended June 30, 2011 and 2010, was approximately $224 and $218, respectively; the related tax benefit was approximately $88 and $85, respectively. As of June 30, 2011 and December 31, 2010, the unrecognized share-based compensation cost related to the grants described above was $1,045 and $451, respectively.

The Company recorded shared-based compensation expense of $920 and a related tax benefit of approximately $370 for the three and six months ended June 30, 2011 for the six and eight percent operating margin performance-based stock options. No share-based compensation costs for performance-based stock options were recorded for the same periods in 2010. Unrecognized share-based compensation related to these options was approximately $1,468. Should the Company attain a 10 percent margin, the Company could recognize up to $1,200 of additional stock compensation expense.

At June 30, 2011, the aggregate intrinsic value of outstanding options to purchase 1,387 shares of common stock, the exercisable options to purchase 316 shares of common stock and options to purchase 288 shares of common stock expected to vest was $13,307, $3,358 and $2,473, respectively. At December 31, 2010, the aggregate intrinsic value of options outstanding to purchase 859 shares of common stock was $855.