Equity Compensation Plan

3 Months Ended

Mar. 31, 2012

(7)

Equity Compensation Plan

In 2004, Holdings established the 2004 Equity Incentive Plan to provide for the award of non-qualified stock options to attract and retain people who are in a position to make a significant contribution to the success of the Company and its subsidiaries. Awards granted under the 2004 Equity Incentive Plan vest over a period of one to four years contingent upon achievement of certain financial performance targets as defined by the 2004 Equity Incentive Plan and expire 10 years after the date of grant.

The Company uses a Black-Scholes option-pricing model to calculate the fair value of options. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, exercise price, fair value of common stock, probability that financial targets will be met, and forfeiture rate. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense.

The following table summarizes information about the 2004 Equity Incentive Plan for the three months ended March 31, 2012:


	Three Months Ended March 31, 2012
	Outstanding				Exercisable
	Stock Options Outstanding		Weighted Average Exercise Price*		Stock Options		Weighted Average Exercise Price*
January 1, 2012		14,178,150	$	0.49		3,008,750	$	0.47
Exercised		—		—		—		—
Cancelled		—		—		—		—
Granted		—		—		—		—

March 31, 2012		14,178,150	$	0.49		3,008,750	$	0.47

*	Represents per share price.

During the first quarter of 2012, there were no stock options issued, cancelled or granted.

For the three months ended March 31, 2012, no compensation expense was recognized as management determined that it is not probable that the financial performance targets associated with the stock option awards will be achieved.

STANADYNE CORPORATION [Member]

Equity Compensation Plan

(7)

Equity Compensation Plan

The following table summarizes information about the 2004 Equity Incentive Plan for the three months ended March 31, 2012:


	Three Months Ended March 31, 2012
	Outstanding				Exercisable
	Stock Options Outstanding		Weighted Average Exercise Price*		Stock Options		Weighted Average Exercise Price*
January 1, 2012		14,178,150	$	0.49		3,008,750	$	0.47
Exercised		—		—		—		—
Cancelled		—		—		—		—
Granted		—		—		—		—

March 31, 2012		14,178,150	$	0.49		3,008,750	$	0.47

*	Represents per share price.

During the first quarter of 2012, there were no stock options issued, cancelled or granted.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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+ Details

STANADYNE CORP 10-Q