Quarterly report pursuant to sections 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2012
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
10. STOCK-BASED COMPENSATION

A summary of the status of the Company's stock option awards is presented below:

   
Number of StockOptions
   
Weighted Average Exercise Price per Share
   
Weighted
Average
Remaining
Contractual
Life
 
                   
Outstanding at January 1, 2012
    1,347,750     $ 3.66        
   Granted
    --       --        
   Exercised
    (54,570 )     1.93        
   Expired
    (200,000 )     3.40        
   Cancelled
    --       --        
   Forfeited
    --       --        
Outstanding at June 30, 2012
    1,093,180     $ 3.76       7.8  
Exercisable at June 30, 2012
    280,595     $ 3.21       6.9  

The fair value of the options granted below was calculated using the Black Scholes option valuation model with the assumptions as disclosed in prior quarterly and annual filings.

Directors' compensation of approximately $63,000 and $46,000 during the three months and $126,000 and $65,000 during the six months ended June 30, 2012, and 2011, respectively, were recognized related to options to purchase shares vesting through 2016.

Employee compensation of approximately $122,000 and $148,000 during the three months and $252,000 and $296,000 during the six months ended June 30, 2012, and 2011, respectively, was recognized related to options with a 4 year vesting period which were awarded to officers and key employees.  These options vest through 2014.

Post-retirement compensation of approximately $24,000 was recognized during the three months and $49,000 was recognized during the six months ended June 30, 2012, and 2011, related to options awarded to Mr. Hatem El Khalidi in July 2009.  On May 9, 2010, the Board of Directors determined that Mr. El Khalidi forfeited these options and other retirement benefits when he made various demands against the Company and other AMAK Saudi shareholders which would benefit him personally and were not in the best interests of the Company and its shareholders.  The Company is litigating its right to withdraw the options and benefits and as such, these options and benefits continue to be shown as outstanding.  See further discussion in Note 15.

Post-retirement compensation of approximately $413,000 was reversed during the second quarter of 2012 due to the performance condition associated with 200,000 shares in options awarded Mr. El Khalidi not being met as required by the terms of the award by June 30, 2012.

See the Company's Annual Report on Form 10-K for the year ended December 31, 2011, for additional information.