Options Granted During the Three Months Ended March 31, 2013

Number of options

33

Option vesting period

5 Years

Grant price

$8.02 - $8.20

Dividend yield

0.00%

Expected volatility (a)

54.8% - 55.2%

Risk-free interest rate

1.25% - 1.40%

Expected life (years) (b)

6.95

Weighted average fair value

$4.46 - $4.51

(a)

Since the Company’s historical volatility was not representative of the ongoing future business, the Company’s historical volatility was based on a combination of the Company’s volatility and the historical volatility of a peer group of companies within similar industries and similar size as the Company. 

(b)

Because the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for these grants, the Company utilized the simplified method in developing an estimate of the expected term of these options.