During 2012, the Compensation Committee of the Board of Directors approved a grant of approximately 39,000 shares of restricted common
stock to certain employees and members of the Board of Directors. The restricted shares vest one-third on the first, second and third anniversaries of the grant date. Unvested shares may not be sold or transferred. During the vesting period,
dividends accrue on the restricted shares, but are paid in additional shares of common stock upon vesting, subject to the vesting provisions of the underlying restricted shares. The restricted shares are entitled to the same voting rights as other
common shares. Upon vesting, all restrictions are removed.
Stock-based compensation expense is non-cash and is included as a component of
general and administrative expense or operating expense based upon the classification of cash compensation paid to the related employees. The Company recorded total stock-based compensation expense of $164,000 and $201,000 in the three month periods
ended March 31, 2012 and 2011, respectively.